-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UYK04qUxQ9jAbX1NQDFvUVmZD5BgOp5BKHIPaOkbgESjHSLmnmLWIzj90/PVztOs nVvKZzYf1Y8dQcbL3jtasw== 0001104659-07-091091.txt : 20071227 0001104659-07-091091.hdr.sgml : 20071227 20071227164419 ACCESSION NUMBER: 0001104659-07-091091 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20071031 FILED AS OF DATE: 20071227 DATE AS OF CHANGE: 20071227 EFFECTIVENESS DATE: 20071227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Eaton Vance Credit Opportunities Fund CENTRAL INDEX KEY: 0001340735 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21820 FILM NUMBER: 071329536 BUSINESS ADDRESS: STREET 1: THE EATON VANCE BUILDING STREET 2: 255 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 617-482-8260 MAIL ADDRESS: STREET 1: THE EATON VANCE BUILDING STREET 2: 255 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 N-CSRS 1 a07-29574_1ncsrs.htm N-CSR

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-21820

 

Eaton Vance Credit Opportunities Fund

(Exact name of registrant as specified in charter)

 

The Eaton Vance Building, 255 State Street, Boston, Massachusetts

 

02109

(Address of principal executive offices)

 

(Zip code)

 

Maureen A. Gemma
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(617) 482-8260

 

 

Date of fiscal year end:

April 30

 

 

Date of reporting period:

October 31, 2007

 

 




Item 1. Reports to Stockholders




Semiannual Report October 31, 2007

EATON VANCE
CREDIT
OPPORTUNITIES
FUND



IMPORTANT NOTICES REGARDING PRIVACY,
DELIVERY OF SHAREHOLDER DOCUMENTS,
PORTFOLIO HOLDINGS AND PROXY VOTING

Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy ("Privacy Policy") with respect to nonpublic personal information about its customers:

•  Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions.

•  None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer's account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker/dealers.

•  Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information.

•  We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com.

Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Boston Management and Research, and Eaton Vance Distributors, Inc.

In addition, our Privacy Policy only applies to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer's account (i.e., fund shares) is held in the name of a third-party financial adviser/broker-dealer, it is likely that only such adviser's privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures.

For more information about Eaton Vance's Privacy Policy, please call 1-800-262-1122.

Delivery of Shareholder Documents. The Securities and Exchange Commission (the "SEC") permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called "householding" and it helps eliminate duplicate mailings to shareholders.

Eaton Vance, or your financial adviser, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial adviser, otherwise.

If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial adviser.

Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial adviser.

Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio (if applicable) will file a schedule of its portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC's website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC's public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).

Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds' and Portfolios' Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, without charge, upon request, by calling 1-800-262-1122. This description is also available on the SEC's website at www.sec.gov.




Eaton Vance Credit Opportunities Fund as of October 31, 2007

INVESTMENT UPDATE

Performance for the Past Six Months

·

Based on share price, Eaton Vance Credit Opportunities Fund (the “Fund”), a closed-end fund traded on the New York Stock Exchange, had a total return of -11.29% for the six months ended October 31, 2007. That return was the result of a decrease in share price to $17.57 on October 31, 2007, from $20.92 on April 30, 2007, and the reinvestment of $1.01 in dividend distributions.(1)

 

 

·

Based on net asset value (NAV), the Fund had a total return of -0.81% for the six months ended October 31, 2007. That return was the result of a decrease in NAV to $18.20 on October 31, 2007, from $19.38 on April 30, 2007, and the reinvestment of $1.01 in dividend distributions.(1)

 

 

·

Based on the Fund’s most recent dividend and a closing share price of $17.57 on October 31, 2007, the Fund had a market yield of 11.61%.(2)

 

 

·

For performance comparison, the S&P/LSTA Leveraged Loan Index, an unmanaged index of U.S. dollar-denominated leveraged loans, had a total return of 0.54% for the same period.(3)

 

 

 

Investment environment

 

 

·

The loan market underwent an unprecedented correction in the third quarter of 2007 that resulted from a decline in loan demand, combined with an increase in the supply of new loan issuance. Average loan market prices fell 4%-5% in July and August. The risk aversion that began in the subprime mortgage area spread to the leveraged loan market through increased credit spreads and loan price volatility, which in turn further reduced demand from key market participants, including hedge funds, collateralized loan participation funds and mutual funds. With investor demand falling and loan supply rising to record levels, prices fell to levels not seen since 2002.

 

 

·

Interestingly, this market decline was distinguished from previous corrections by the fact that corporate loan default rates remained at historic lows, just 0.5%, according to Standard & Poor’s. Thus, while there were increasing signs of a weakening economy, the market decline was primarily based on technical factors. The silver lining in the correction is that effective loan credit spreads widened from roughly 200 basis points (2.00%) over LIBOR – the London-Interbank Offered Rate, used by banks as a base for loans to large commercial and industrial companies – to around 300 basis points (3.00%) by the Fund’s period-end. That was closer to average historical levels and created a more favorable investment environment.

 

 

 

The Fund’s Investments

 

 

·

The Fund’s investment objective is to provide a high level of current income, with a secondary objective of capital appreciation. While price declines on issues in the bank loan and high-yield bond markets have presented a handful of opportunities, the Fund did not significantly alter its allocations among its sectors during the period. We constantly monitor relative value among credit markets, and will shift allocations among bank loans, bonds and other sectors when we view it to be advantageous.

 

 

·

The Fund’s investments included senior loans to 356 borrowers spanning 38 industries at October 31, 2007, with an average loan size of just 0.38% of total investments, and no industry constituting more than 9% of total investments. Health care, publishing, leisure goods/activities/movies, cable and satellite television and building and development (including manufacturers of building products and companies that manage/own apartments, shopping malls and commercial office buildings, among others) were the largest industry weightings.(4)

 

 

·

The Fund is very well diversified in terms of industry, market and geography – a strategy management believes should help the Fund weather an economic downturn. The Fund had a 19.0% exposure to European loans, which provided further diversification and the opportunity for yield enhancement. Loans denominated in foreign currencies were hedged to protect against foreign currency risk.(4)

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.

The views expressed throughout this report are those of the portfolio managers and are current only through the end of the period of the report as stated on the cover. These views are subject to change at any time based upon market or other conditions, and the investment adviser disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund are based on many factors, may not be relied on as an indication of trading intent on behalf of any Eaton Vance fund.


(1)

Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares and its participation in a line of credit. Absent an expense waiver by the investment adviser, the returns would be lower.

(2)

The Fund’s market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result.

(3)

It is not possible to invest directly in an Index. The Index’s total return reflects changes in value of the loans comprising the Index and accrual of interest and does not reflect the commissions or expenses that would have been incurred if an investor individually purchased or sold the loans represented in the Index. Unlike the Fund, the Index’s return does not reflect the effect of leverage, such as the issuance of Auction Preferred Shares.

(4)

Holdings and industry weightings are subject to change due to active management.

 

1




Eaton Vance Credit Opportunities Fund as of October 31, 2007

PERFORMANCE

·

The Fund’s exposure to builders and developers of housing was less than 1%. Homebuilders have struggled in the recent economic climate; however, management believes that these loans should benefit from the security and collateral that back these exposures. The Fund did not have any direct exposure to subprime or prime mortgage lenders during the six months ended October 31, 2007.(1)

 

 

·

The Fund’s net asset value per share reflected the market correction, declining in July and August, before temporarily rebounding somewhat in September and October.

 

 

·

At October 31, 2007, the Fund had leverage in the amount of approximately 39.6% of the Fund’s total assets. The Fund employs leverage though the issuance of Auction Preferred Shares (“APS”) and participation in a line of credit.* Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). The cost of the Fund’s APS and borrowings rises and falls with changes in short-term interest rates. Such increases/decreases in cost of the Fund’s APS and borrowings may be offset by increased/decreased income from the Fund’s senior loan investments.

 


(1) Holdings and industry weightings are subject to change due to active management.

Performance(2)

NYSE Symbol

 

EOE

 

 

 

 

 

Average Annual Total Return (by share price, NYSE)

 

 

 

Six Months

 

-11.29

%

One Year

 

-1.51

 

Life of Fund (5/31/06)

 

3.89

 

 

 

 

 

Average Annual Total Return (at net asset value)

 

 

 

Six Months

 

-0.81

%

One Year

 

6.09

 

Life of Fund (5/31/06)

 

6 .50

 

 


(2)

Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares and its participation in a line of credit. Absent an expense waiver by the investment adviser, the returns would be lower.

 

 

*

In the event of a rise in long-term interest rates, the value of the Fund’s investment portfolio could decline, which would reduce the asset coverage for its Auction Preferred Shares.

 

Top Ten Holdings(3)

By total investments

 

Red Football Ltd.

 

1.4

%

INEOS Group

 

1.3

 

Black Lion Beverages III B.V.

 

1.3

 

ProSiebenSat.1 Media AG

 

1.2

 

Univision Communications, Inc.

 

1.1

 

SSP Financing Ltd.

 

1.0

 

Infor Enterprise Solutions Holdings

 

1.0

 

Aster Zweite Beteiligungs GMSG

 

0.9

 

Virgin Media Investment Holdings, Ltd.

 

0.9

 

RadNet Management, Inc.

 

0.9

 

 


(3)

Reflects the Fund’s investments as of October 31, 2007. Top Ten Holdings are shown as a percentage of the Fund’s total investments. Portfolio information may not be representative of current or future investments and may change due to active management.

 

Top Five Industries(4)

By total investments

 

Health Care

 

8.8

%

Publishing

 

6.6

 

Lesiure Goods/Activities/Movies

 

6.5

 

Cable & Satellite Television

 

5.5

 

Building & Development

 

5.0

 

 


(4)

Reflects the Fund’s investments as of October 31, 2007. Industries are shown as a percentage of the Fund’s total investments. Fund information may not be representative of the Fund’s current or future investments and are subject to change due to active management.

 

Credit Quality Ratings for

Total Loan Investments(5)

By total loan investments

 

Baa

 

0.5

%

Ba

 

16.4

 

B

 

38.5

 

Caa

 

17.2

 

Non-Rated(6)

 

27.4

 

 


(5)

Credit Quality ratings are those provided by Moody’s, a nationally recognized bond rating service. As a percentage of the Fund’s total loan investments as of October 31, 2007. Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

 

(6)

Certain loans in which the Fund invests are not rated by a rating agency. In management’s opinion, such securities are comparable to securities rated by a rating agency in the categories listed above.

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return. For performance as of the most recent month end, please refer to www.eatonvance.com.

2




Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited)

Senior Floating-Rate Interests — 140.1%(1)      
Principal
Amount*
  Borrower/Tranche Description   Value  
Aerospace and Defense — 3.0%      
Avio Holding Spa      
EUR 700,000     Term Loan, 8.55%, Maturing June 13, 2015   $ 1,000,910    
DAE Aviation Holdings, Inc.      
  117,085     Term Loan, 7.80%, Maturing July 31, 2009     117,012    
  132,557     Term Loan, 8.93%, Maturing July 31, 2014     132,640    
  100,358     Term Loan, 8.93%, Maturing July 31, 2014     100,421    
Evergreen International Aviation      
  697,510     Term Loan, 8.30%, Maturing October 31, 2011     680,073    
Forgins International Holdings      
  951,950     Term Loan, 9.72%, Maturing February 11, 2015     930,531    
Wesco Aircraft Hardware Corp.      
  1,000,000     Term Loan, 10.95%, Maturing September 29, 2014     1,007,500    
            $ 3,969,087    
Air Transport — 2.4%      
Airport Development and Investment, Ltd.      
GBP 986,070     Term Loan, 10.28%, Maturing April 7, 2011   $ 1,995,389    
Delta Air Lines, Inc.      
  274,313     Term Loan, 8.08%, Maturing April 30, 2014     272,304    
Northwest Airlines, Inc.      
  990,000     DIP Loan, 7.03%, Maturing August 21, 2008     954,937    
            $ 3,222,630    
Automotive — 5.6%      
Adesa, Inc.      
  997,500     Term Loan, 7.45%, Maturing October 18, 2013   $ 966,773    
Allison Transmission, Inc.      
  700,000     Term Loan, 8.17%, Maturing September 30, 2014     683,958    
AxleTech International Holding, Inc.      
  909,091     Term Loan, 11.73%, Maturing April 21, 2013     894,318    
Dana Corp.      
  1,000,000     Term Loan, 7.98%, Maturing March 30, 2008     995,714    
Dayco Products, LLC      
  1,000,000     Term Loan, 10.98%, Maturing December 31, 2011     965,833    
Ford Motor Co.      
  397,000     Term Loan, 8.70%, Maturing December 15, 2013     382,924    
HLI Operating Co., Inc.      
EUR 378,182     Term Loan, 6.87%, Maturing May 30, 2014     530,037    
EUR 21,818     Term Loan, 7.16%, Maturing May 30, 2014     30,934    
Keystone Automotive Operations, Inc.      
  198,500     Term Loan, 8.65%, Maturing January 12, 2012     185,763    

 

Principal
Amount*
  Borrower/Tranche Description   Value  
Automotive (continued)      
LKQ Corp.      
  225,000     Term Loan, 7.36%, Maturing October 12, 2014   $ 224,437    
TriMas Corp.      
  281,250     Term Loan, 6.79%, Maturing August 2, 2011     276,680    
  1,206,563     Term Loan, 7.23%, Maturing August 2, 2013     1,186,956    
            $ 7,324,327    
Beverage and Tobacco — 1.9%      
Culligan International Co.      
EUR 1,000,000     Term Loan, 9.33%, Maturing May 31, 2013   $ 1,287,607    
  498,750     Term Loan, 7.28%, Maturing November 24, 2014     467,578    
Liberator Midco Ltd.      
GBP 350,878     Term Loan, 14.14%, Maturing October 27, 2016     733,757    
            $ 2,488,942    
Building and Development — 7.9%      
Building Materials Corp. of America      
  1,842,897     Term Loan, 7.94%, Maturing February 22, 2014   $ 1,682,959    
Hovstone Holdings, LLC      
  658,477     Term Loan, 7.63%, Maturing February 28, 2009     599,214    
LNR Property Corp.      
  1,000,000     Term Loan, 8.11%, Maturing July 3, 2011     977,500    
Metroflag BP, LLC      
  1,000,000     Term Loan, 14.09%, Maturing July 1, 2008     990,000    
Panolam Industries Holdings, Inc.      
  1,447,414     Term Loan, 7.95%, Maturing September 30, 2012     1,389,517    
Ply Gem Industries, Inc.      
  431,622     Term Loan, 7.95%, Maturing August 15, 2011     406,372    
  16,127     Term Loan, 7.95%, Maturing August 15, 2011     15,184    
Re/Max International, Inc.      
  483,333     Term Loan, Maturing January 23, 2008(2)     478,500    
  516,667     Term Loan, Maturing January 23, 2008(2)     511,500    
Realogy Corp.      
  589,432     Term Loan, 8.24%, Maturing September 1, 2014     549,350    
  159,091     Term Loan, 8.24%, Maturing September 1, 2014     148,273    
Shea Capital I, LLC      
  1,000,000     Term Loan, 7.20%, Maturing October 27, 2011     857,500    
TRU 2005 RE Holding Co.      
  1,000,000     Term Loan, 8.13%, Maturing December 9, 2008     990,833    
United Subcontractors, Inc.      
  1,000,000     Term Loan, 12.36%, Maturing June 27, 2013     830,000    
            $ 10,426,702    

 

See notes to financial statements
3



Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal
Amount*
  Borrower/Tranche Description   Value  
Business Equipment and Services — 6.3%      
Affinion Group, Inc.      
  871,795     Term Loan, 7.98%, Maturing October 17, 2012   $ 865,620    
Allied Security Holdings, LLC      
  293,489     Term Loan, Maturing June 30, 2010(2)     278,814    
  963,636     Term Loan, 8.20%, Maturing June 30, 2010     973,597    
Intergroph Corp.      
  1,000,000     Term Loan, 11.51%, Maturing November 29, 2014     1,000,000    
Language Line, Inc.      
  514,294     Term Loan, 8.42%, Maturing June 11, 2011     502,508    
Mitchell International, Inc.      
  1,000,000     Term Loan, 10.50%, Maturing March 28, 2015     920,000    
N.E.W. Holdings I, LLC      
  981,955     Term Loan, 7.77%, Maturing May 22, 2014     930,096    
Quantum Corp.      
  475,000     Term Loan, 8.70%, Maturing July 12, 2014     471,437    
Quintiles Transnational Corp.      
  1,000,000     Term Loan, 9.20%, Maturing March 31, 2014     995,000    
Sitel (Client Logic)      
  243,365     Term Loan, 7.30%, Maturing January 29, 2014     231,805    
TDS Investor Corp.      
  444,663     Term Loan, 7.45%, Maturing August 23, 2013     436,604    
  89,222     Term Loan, 7.45%, Maturing August 23, 2013     87,605    
West Corp.      
  569,261     Term Loan, 7.27%, Maturing October 24, 2013     559,180    
            $ 8,252,266    
Cable and Satellite Television — 8.4%      
Atlantic Broadband Finance, LLC      
  744,376     Term Loan, 7.45%, Maturing February 10, 2011   $ 735,382    
Bragg Communications, Inc.      
  750,000     Term Loan, 8.06%, Maturing August 31, 2014     751,406    
Casema      
EUR 1,000,000     Term Loan, 8.41%, Maturing May 14, 2016     1,444,218    
Cequel Communications, LLC      
  1,175,202     Term Loan, 11.36%, Maturing May 5, 2014     1,157,281    
Charter Communications Operating, Inc.      
  1,006,209     Term Loan, 6.99%, Maturing April 28, 2013     968,644    
CW Media Holdings, Inc.      
  200,000     Term Loan, 8.50%, Maturing February 15, 2015     200,000    
Orion Cable GmbH      
EUR 375,000     Term Loan, 7.03%, Maturing October 31, 2014     535,523    
EUR 375,000     Term Loan, 7.98%, Maturing October 31, 2015     538,236    

 

Principal
Amount*
  Borrower/Tranche Description   Value  
Cable and Satellite Television (continued)      
ProSiebenSat.1 Media AG      
EUR 500,000     Term Loan, 6.19%, Maturing March 2, 2015(3)   $ 680,425    
EUR 500,000     Term Loan, 6.40%, Maturing March 2, 2016(3)     682,595    
EUR 500,000     Term Loan, 6.93%, Maturing September 2, 2016(3)     669,122    
EUR 500,758     Term Loan, 7.78%, Maturing March 2, 2017(3)     678,588    
Virgin Media Investment Holdings, Ltd.      
GBP 1,000,000     Term Loan, 8.90%, Maturing March 30, 2013     2,028,013    
            $ 11,069,433    
Chemicals and Plastics — 8.0%      
AZ Chem US, Inc.      
  500,000     Term Loan, 11.01%, Maturing February 28, 2014   $ 456,666    
Brenntag Holding GmbH and Co. KG      
  2,000,000     Term Loan, 9.39%, Maturing December 23, 2015     1,923,750    
First Chemical Holding      
EUR 500,000     Term Loan, 6.75%, Maturing December 18, 2014(3)     707,451    
EUR 500,000     Term Loan, 7.23%, Maturing December 18, 2015(3)     710,666    
Foamex International, Inc.      
  750,000     Term Loan, 10.11%, Maturing February 12, 2014     688,750    
INEOS Group      
EUR 2,000,000     Term Loan, 8.49%, Maturing December 14, 2012     2,854,117    
Lucite International Group Holdings      
  258,893     Term Loan, 7.45%, Maturing July 7, 2013     254,362    
  731,202     Term Loan, 7.45%, Maturing July 7, 2013     718,406    
Millenium Inorganic Chemicals      
  1,000,000     Term Loan, 10.95%, Maturing October 31, 2014     940,000    
Momentive Performance Material      
  297,750     Term Loan, 7.81%, Maturing December 4, 2013     292,593    
Solutia, Inc.      
  945,138     DIP Loan, 8.06%, Maturing March 31, 2008     944,252    
            $ 10,491,013    
Clothing / Textiles — 0.8%      
Hanesbrands, Inc.      
  1,000,000     Term Loan, 8.82%, Maturing March 5, 2014   $ 1,006,875    
            $ 1,006,875    
Conglomerates — 2.2%      
Doncasters (Dunde HoldCo 4 Ltd.)      
GBP 500,000     Term Loan, 10.60%, Maturing January 13, 2016   $ 1,004,918    
Polymer Group, Inc.      
  984,962     Term Loan, 7.29%, Maturing November 22, 2012     977,575    

 

See notes to financial statements
4



Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal
Amount*
  Borrower/Tranche Description   Value  
Conglomerates (continued)      
RGIS Holdings, LLC      
GBP 16,625     Term Loan, 7.25%, Maturing April 30, 2014   $ 16,002    
  332,500     Term Loan, 7.25%, Maturing April 30, 2014     320,031    
US Investigations Services, Inc.      
  450,000     Term Loan, Maturing February 21, 2015(2)     437,625    
Vertrue, Inc.      
  200,000     Term Loan, 8.20%, Maturing August 16, 2014     194,500    
            $ 2,950,651    
Containers and Glass Products — 2.3%      
Bluegrass Container Co.      
  242,424     Term Loan, 9.75%, Maturing December 30, 2013   $ 244,091    
  757,576     Term Loan, 9.75%, Maturing December 30, 2013     762,784    
Consolidated Container Co.      
  1,000,000     Term Loan, 10.66%, Maturing September 28, 2014     882,500    
Kranson Industries, Inc.      
  693,652     Term Loan, 7.45%, Maturing July 31, 2013     683,247    
Tegrant Holding Corp.      
  500,000     Term Loan, 10.63%, Maturing March 8, 2015     475,000    
            $ 3,047,622    
Cosmetics / Toiletries — 1.1%      
American Safety Razor Co.      
  1,000,000     Term Loan, 11.69%, Maturing July 31, 2014   $ 1,000,000    
KIK Custom Products, Inc.      
  500,000     Term Loan, 10.20%, Maturing November 30, 2014     417,500    
            $ 1,417,500    
Drugs — 1.5%      
Graceway Pharmaceuticals, LLC      
  1,000,000     Term Loan, 11.70%, Maturing May 3, 2013   $ 915,000    
  1,000,000     Term Loan, 13.45%, Maturing November 3, 2013     850,000    
Pharmaceutical Holdings Corp.      
  195,000     Term Loan, 8.07%, Maturing January 30, 2012     190,125    
            $ 1,955,125    
Ecological Services and Equipment — 1.9%      
Cory Environmental Holdings      
GBP 500,000     Term Loan, 10.05%, Maturing September 30, 2014   $ 1,030,236    
Kemble Water Structure Ltd.      
GBP 500,000     Term Loan, 10.05%, Maturing October 13, 2013     1,021,147    
Synagro Technologies, Inc.      
  500,000     Term Loan, 10.25%, Maturing October 2, 2014     485,000    
            $ 2,536,383    

 

Principal
Amount*
  Borrower/Tranche Description   Value  
Electronics / Electrical — 5.0%      
Aspect Software, Inc.      
  1,000,000     Term Loan, 12.31%, Maturing July 11, 2013   $ 960,000    
Freescale Semiconductor, Inc.      
  997,487     Term Loan, 7.33%, Maturing December 1, 2013     959,650    
Infor Enterprise Solutions Holdings      
  268,826     Term Loan, 7.95%, Maturing July 28, 2012     258,073    
  655,488     Term Loan, 8.95%, Maturing July 28, 2012     639,100    
  341,994     Term Loan, 8.95%, Maturing July 28, 2012     333,444    
  366,667     Term Loan, 11.45%, Maturing March 2, 2014     345,583    
  633,333     Term Loan, 11.45%, Maturing March 2, 2014     596,917    
Spectrum Brands, Inc.      
  500,000     Term Loan, Maturing March 30, 2013(2)     491,250    
  950,515     Term Loan, 9.37%, Maturing March 30, 2013     939,683    
  47,103     Term Loan, 9.37%, Maturing March 30, 2013     46,467    
Vertafore, Inc.      
  1,000,000     Term Loan, 11.26%, Maturing January 31, 2012     972,500    
            $ 6,542,667    
Equipment Leasing — 0.6%      
AWAS Capital, Inc.      
  816,359     Term Loan, 11.25%, Maturing March 22, 2013   $ 804,114    
            $ 804,114    
Farming / Agriculture — 1.5%      
BF Bolthouse HoldCo, LLC      
  1,000,000     Term Loan, 10.70%, Maturing December 16, 2013   $ 997,813    
Central Garden & Pet Co.      
  1,000,000     Term Loan, 6.56%, Maturing February 28, 2014     920,000    
            $ 1,917,813    
Financial Intermediaries — 1.8%      
Citco III, Ltd.      
  500,000     Term Loan, 7.63%, Maturing June 30, 2014   $ 486,250    
E.A. Viner International Co.      
  1,002,450     Term Loan, 7.70%, Maturing July 31, 2013     994,932    
RiskMetrics Group Holdings, LLC      
  500,000     Term Loan, 10.70%, Maturing July 11, 2014     492,500    
RJO Holdings Corp. (RJ O'Brien)      
  500,000     Term Loan, 7.76%, Maturing July 31, 2014     460,625    
            $ 2,434,307    

 

See notes to financial statements
5



Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal
Amount*
  Borrower/Tranche Description   Value  
Food Products — 5.5%      
Acosta, Inc.      
  987,500     Term Loan, 7.01%, Maturing July 28, 2013   $ 967,750    
Black Lion Beverages III B.V.      
EUR 2,000,000     Term Loan, 8.97%, Maturing January 24, 2016     2,813,327    
Foodvest Ltd.      
GBP 499,957     Term Loan, 10.33%, Maturing September 16, 2015     998,341    
Pinnacle Foods Finance, LLC      
  997,500     Term Loan, 7.95%, Maturing April 2, 2014     966,684    
Provimi Group SA      
EUR 46,773     Term Loan, 6.51%, Maturing June 28, 2015(3)     63,779    
EUR 697,446     Term Loan, 8.60%, Maturing December 28, 2016(3)     951,010    
  282,126     Term Loan, 9.37%, Maturing December 28, 2016(3)     265,903    
Ruby Acquisitions Ltd.      
EUR 214,286     Term Loan, 9.83%, Maturing July 5, 2015     279,016    
            $ 7,305,810    
Food Service — 3.2%      
QCE Finance, LLC      
  1,000,000     Term Loan, 10.10%, Maturing November 5, 2013   $ 962,000    
Selecta      
EUR 741,246     Term Loan, 8.37%, Maturing December 28, 2015     991,968    
SSP Financing, Ltd.      
EUR 145,182     Term Loan, 6.62%, Maturing June 15, 2014     203,899    
EUR 660,290     Term Loan, 6.95%, Maturing June 15, 2014     927,333    
EUR 145,182     Term Loan, 7.12%, Maturing June 15, 2015     204,949    
EUR 660,290     Term Loan, 7.45%, Maturing June 15, 2015     932,109    
            $ 4,222,258    
Food / Drug Retailers — 1.7%      
General Nutrition Centers, Inc.      
  248,750     Term Loan, 7.48%, Maturing September 16, 2013   $ 237,323    
Iceland Foods Group, Ltd.      
GBP 500,000     Term Loan, 11.05%, Maturing May 2, 2016     1,038,675    
Roundy's Supermarkets, Inc.      
  985,037     Term Loan, 8.46%, Maturing November 3, 2011     981,754    
            $ 2,257,752    
Forest Products — 0.6%      
NewPage Corp.      
  776,766     Term Loan, 7.47%, Maturing May 2, 2011   $ 770,940    
            $ 770,940    

 

Principal
Amount*
  Borrower/Tranche Description   Value  
Healthcare — 12.8%      
Biomet, Inc.      
  625,000     Term Loan, 8.20%, Maturing December 26, 2014   $ 622,834    
Capio AB      
EUR 248,184     Term Loan, 8.60%, Maturing October 24, 2016     353,394    
EUR 751,816     Term Loan, 8.60%, Maturing October 24, 2016     1,070,525    
Carestream Health, Inc.      
  1,000,000     Term Loan, 10.30%, Maturing October 30, 2013     978,333    
CB Diagnostics AB      
EUR 518,519     Term Loan, 8.25%, Maturing September 9, 2015     722,504    
EUR 481,481     Term Loan, 8.25%, Maturing September 9, 2016     670,897    
Concentra, Inc.      
  1,000,000     Term Loan, 10.70%, Maturing June 25, 2015     941,250    
Dako EQT Project Delphi      
  750,000     Term Loan, 8.98%, Maturing December 12, 2016     697,500    
Emdeon Business Services, LLC      
  389,053     Term Loan, 7.45%, Maturing November 16, 2013     383,217    
  1,000,000     Term Loan, 10.20%, Maturing May 16, 2014     992,500    
Fenwal, Inc.      
  750,000     Term Loan, 10.79%, Maturing August 28, 2014     716,250    
FHC Health Systems, Inc.      
  888,889     Term Loan, 12.11%, Maturing June 27, 2008     902,222    
HCA, Inc.      
  1,563,188     Term Loan, 7.45%, Maturing November 18, 2013     1,529,854    
HealthSouth Corp.      
  427,108     Term Loan, 7.63%, Maturing March 10, 2013     419,002    
IM US Holdings, LLC      
  500,000     Term Loan, 9.45%, Maturing June 26, 2015     499,062    
Leiner Health Products, Inc.      
  1,000,000     Term Loan, Maturing May 27, 2011(2)     945,000    
  997,423     Term Loan, 9.65%, Maturing May 27, 2011     949,222    
Physiotherapy Associates, Inc.      
  500,000     Term Loan, 13.00%, Maturing June 27, 2014     497,500    
RadNet Management, Inc.      
  2,000,000     Term Loan, 13.22%, Maturing November 15, 2013     2,010,000    
Viant Holdings, Inc.      
  500,000     Term Loan, Maturing June 25, 2014(2)     470,000    
  498,750     Term Loan, 7.45%, Maturing June 25, 2014     466,328    
            $ 16,837,394    
Home Furnishings — 3.4%      
Hunter Fan Co.      
  500,000     Term Loan, 12.28%, Maturing April 16, 2014   $ 415,000    
Jarden Corp.      
  997,500     Term Loan, 7.70%, Maturing January 24, 2012     989,499    

 

See notes to financial statements
6



Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal
Amount*
  Borrower/Tranche Description   Value  
Home Furnishings (continued)      
National Bedding Co., LLC      
  1,500,000     Term Loan, 9.75%, Maturing August 31, 2012   $ 1,391,250    
Oreck Corp.      
  992,347     Term Loan, 9.25%, Maturing February 2, 2012     749,222    
Simmons Co.      
  1,000,000     Term Loan, 10.65%, Maturing February 15, 2012     935,000    
            $ 4,479,971    
Industrial Equipment — 4.2%      
Aearo Technologies, Inc.      
  1,000,000     Term Loan, 10.70%, Maturing September 24, 2013   $ 965,000    
CEVA Group PLC U.S.      
  892,500     Term Loan, 8.13%, Maturing January 4, 2014     879,113    
  105,263     Term Loan, 8.20%, Maturing January 4, 2014     103,684    
EPD Holdings (Goodyear Engineering Production)      
  1,000,000     Term Loan, 10.71%, Maturing July 13, 2015     968,333    
Generac Acquisition Corp.      
  1,000,000     Term Loan, 11.23%, Maturing April 7, 2014     727,917    
John Maneely Co.      
  920,516     Term Loan, 8.52%, Maturing December 8, 2013     860,682    
TFS Acquisition Corp.      
  990,000     Term Loan, 8.70%, Maturing August 11, 2013     975,150    
            $ 5,479,879    
Insurance — 1.7%      
Alliant Holdings I, Inc.      
  225,000     Term Loan, Maturing August 21, 2014(2)   $ 222,750    
AmWINS Group, Inc.      
  500,000     Term Loan, 11.07%, Maturing June 8, 2014     457,500    
CCC Information Services Group, Inc.      
  864,074     Term Loan, 7.71%, Maturing February 10, 2013     856,513    
U.S.I. Holdings Corp.      
  500,000     Term Loan, Maturing May 4, 2014(2)     490,000    
  199,500     Term Loan, 7.95%, Maturing May 4, 2014     199,008    
            $ 2,225,771    
Leisure Goods / Activities / Movies — 9.4%      
AMF Bowling Worldwide, Inc.      
  1,000,000     Term Loan, 11.81%, Maturing December 8, 2013   $ 970,000    
Bombardier Recreational Product      
  911,392     Term Loan, 7.70%, Maturing June 28, 2013     887,468    
Butterfly Wendel US, Inc.      
  250,000     Term Loan, 8.14%, Maturing June 22, 2013     234,792    
  250,000     Term Loan, 7.89%, Maturing June 22, 2014     233,542    

 

Principal
Amount*
  Borrower/Tranche Description   Value  
Leisure Goods / Activities / Movies (continued)      
Carmike Cinemas, Inc.      
  1,969,774     Term Loan, 9.00%, Maturing May 19, 2012   $ 1,966,490    
Deluxe Entertainment Services      
  500,000     Term Loan, 11.20%, Maturing November 11, 2013     486,250    
HEI Acquisition, LLC      
  1,050,000     Term Loan, Maturing April 13, 2014(2)     958,125    
  1,000,000     Term Loan, 9.02%, Maturing April 13, 2014     1,050,875    
Red Football Ltd.      
GBP 1,500,000     Term Loan, 11.40%, Maturing August 16, 2016     3,116,025    
Revolution Studios Distribution Co., LLC      
  457,915     Term Loan, 8.51%, Maturing December 21, 2014     455,626    
  1,000,000     Term Loan, 11.76%, Maturing June 21, 2015     985,000    
Southwest Sports Group, LLC      
  1,000,000     Term Loan, 7.75%, Maturing December 22, 2010     982,500    
            $ 12,326,693    
Lodging and Casinos — 3.6%      
Bally Technologies, Inc.      
  1,870,572     Term Loan, 8.64%, Maturing September 5, 2009   $ 1,865,116    
Gala Electric Casinos, Ltd.      
GBP 951,888     Term Loan, 9.30%, Maturing December 12, 2014     1,918,907    
Herbst Gaming, Inc.      
  997,487     Term Loan, 8.16%, Maturing December 2, 2011     992,968    
            $ 4,776,991    
Nonferrous Metals / Minerals — 2.6%      
Euramax International, Inc.      
  1,000,000     Term Loan, 13.24%, Maturing June 28, 2013   $ 878,333    
Magnum Coal Co.      
  90,909     Term Loan, 8.01%, Maturing March 15, 2013     82,955    
  895,455     Term Loan, 8.42%, Maturing March 15, 2013     817,102    
Murray Energy Corp.      
  1,043,687     Term Loan, 18.01%, Maturing August 9, 2011     1,069,779    
Thompson Creek Metals Co.      
  595,101     Term Loan, 9.56%, Maturing October 26, 2012     596,588    
            $ 3,444,757    
Oil and Gas — 2.6%      
Concho Resources, Inc.      
  562,000     Term Loan, 9.76%, Maturing March 27, 2012   $ 560,595    
Dresser, Inc.      
  1,000,000     Term Loan, 11.13%, Maturing May 4, 2015     976,875    
Primary Natural Resources, Inc.      
  1,970,000     Term Loan, 7.50%, Maturing July 28, 2010(4)     1,945,375    
            $ 3,482,845    

 

See notes to financial statements
7



Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal
Amount*
  Borrower/Tranche Description   Value  
Publishing — 10.5%      
American Media Operations, Inc.      
  1,500,000     Term Loan, 8.80%, Maturing January 31, 2013   $ 1,483,125    
Aster Zweite Beteiligungs GMSG      
EUR 1,500,000     Term Loan, 8.55%, Maturing September 27, 2015     2,078,800    
Hanley-Wood, LLC      
  1,000,000     Term Loan, Maturing March 8, 2014(2)     831,250    
Laureate Education, Inc.      
  51,114     Term Loan, 0.00%, Maturing August 17, 2014(3)     50,296    
  345,017     Term Loan, 8.73%, Maturing August 17, 2014     339,497    
Mediannuaire Holding      
EUR 500,000     Term Loan, 9.00%, Maturing April 10, 2016     707,778    
Merrill Communications, LLC      
  1,000,000     Term Loan, 11.25%, Maturing November 15, 2013     985,000    
Nielsen Finance, LLC      
  990,001     Term Loan, 7.36%, Maturing August 9, 2013     965,389    
Philadelphia Newspapers, LLC      
  951,327     Term Loan, 8.75%, Maturing June 29, 2013     875,221    
Reader's Digest Association      
  746,255     Term Loan, 7.54%, Maturing March 2, 2014     709,688    
Riverdeep Interactive Learning USA, Inc.      
  992,483     Term Loan, 7.95%, Maturing December 20, 2013     988,347    
Springer Science+Business Media      
EUR 520,887     Term Loan, 6.79%, Maturing May 5, 2011     743,703    
EUR 225,242     Term Loan, 7.16%, Maturing May 5, 2012     323,085    
EUR 225,242     Term Loan, 7.16%, Maturing May 5, 2012     323,085    
Star Tribune Co. (The)      
  248,750     Term Loan, 7.45%, Maturing March 5, 2014     207,499    
  750,000     Term Loan, 11.20%, Maturing March 5, 2014     435,938    
TL Acquisitions, Inc.      
  450,000     Term Loan, 7.95%, Maturing July 5, 2014     436,250    
Tribune Co.      
  420,000     Term Loan, 7.74%, Maturing May 17, 2009     415,767    
  1,047,375     Term Loan, 8.24%, Maturing May 17, 2014     975,106    
            $ 13,874,824    
Radio and Television — 4.2%      
CMP Susquehanna Corp.      
  1,000,000     Term Loan, 0.00%, Maturing May 5, 2011(3)   $ 975,000    
Live Nation Worldwide, Inc.      
  828,479     Term Loan, 7.95%, Maturing December 21, 2013     816,052    
NEP II, Inc.      
  149,250     Term Loan, 7.45%, Maturing February 16, 2014     142,813    
Tyrol Acquisition 2 SAS      
EUR 750,000     Term Loan, 7.62%, Maturing July 19, 2016     1,045,277    

 

Principal
Amount*
  Borrower/Tranche Description   Value  
Radio and Television (continued)      
Univision Communications, Inc.      
  1,000,000     Term Loan, 7.25%, Maturing March 29, 2009   $ 993,750    
  55,369     Term Loan, 0.00%, Maturing September 29, 2014(3)     52,566    
  1,594,631     Term Loan, 7.20%, Maturing September 29, 2014     1,513,903    
            $ 5,539,361    
Retailers (Except Food and Drug) — 1.8%      
Educate, Inc.      
  500,000     Term Loan, 10.45%, Maturing June 14, 2014   $ 493,750    
Orbitz Worldwide, Inc.      
  270,000     Term Loan, 8.20%, Maturing July 25, 2014     266,456    
Oriental Trading Co., Inc.      
  750,000     Term Loan, 10.76%, Maturing January 31, 2013     725,625    
Savers, Inc.      
  452,284     Term Loan, 7.99%, Maturing August 11, 2012     440,977    
  491,028     Term Loan, 7.99%, Maturing August 11, 2012     478,752    
            $ 2,405,560    
Steel — 0.4%      
Niagara Corp.      
  498,750     Term Loan, 9.82%, Maturing June 29, 2014   $ 478,800    
            $ 478,800    
Surface Transport — 2.8%      
Gainey Corp.      
  936,912     Term Loan, 10.44%, Maturing April 20, 2012   $ 829,167    
Ozburn-Hessey Holding Co., LLC      
  981,374     Term Loan, 8.53%, Maturing August 9, 2012     942,119    
Swift Transportation Co., Inc.      
  500,000     Term Loan, 8.12%, Maturing May 10, 2012     428,750    
  1,640,698     Term Loan, 8.38%, Maturing May 10, 2014     1,449,967    
            $ 3,650,003    
Telecommunications — 2.9%      
Asurion Corp.      
  750,000     Term Loan, 11.72%, Maturing January 13, 2013   $ 730,547    
BCM Luxembourg, Ltd.      
EUR 1,000,000     Term Loan, 9.00%, Maturing March 31, 2016     1,434,769    
Intelsat Bermuda, Ltd.      
  250,000     Term Loan, 7.86%, Maturing February 1, 2014     247,813    
IPC Systems, Inc.      
  1,000,000     Term Loan, 10.45%, Maturing May 31, 2015     894,375    

 

See notes to financial statements
8



Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal
Amount*
  Borrower/Tranche Description   Value  
Telecommunications (continued)      
Trilogy International Partners      
  500,000     Term Loan, 8.70%, Maturing June 29, 2012   $ 495,000    
            $ 3,802,504    
Utilities — 4.0%      
AEI Finance Holding, LLC      
  116,022     Revolving Loan, 7.70%, Maturing March 30, 2012   $ 113,702    
  874,519     Term Loan, 8.20%, Maturing March 30, 2014     857,029    
Astoria Generating Co.      
  1,000,000     Term Loan, 8.96%, Maturing August 23, 2013     992,883    
BRSP, LLC      
  961,374     Term Loan, 8.38%, Maturing July 13, 2009     949,357    
Electricinvest Holding Co.      
EUR 297,885     Term Loan, 8.18%, Maturing October 24, 2012     415,881    
GBP 300,000     Term Loan, 10.07%, Maturing October 24, 2012     605,093    
LS Power Acquisition Co.      
  500,000     Term Loan, 8.94%, Maturing November 1, 2014     488,750    
NRG Energy, Inc.      
  400,000     Term Loan, 0.00%, Maturing June 1, 2014(3)     392,214    
TXU Texas Competitive Electric Holdings Co., LLC      
  200,000     Term Loan, Maturing October 10, 2014(2)     200,062    
  200,000     Term Loan, Maturing October 10, 2014(2)     200,000    
            $ 5,214,971    
Total Senior Floating-Rate Interests
(identified cost $185,959,590)
      $ 184,434,541    
Corporate Bonds & Notes — 27.3%      
Principal
Amount
(000's omitted)
 
Security
 

Value
 
Aerospace and Defense — 0.1%      
Alion Science and Technologies, Corp.      
$ 60     10.25%, 2/1/15   $ 56,400    
Bombardier, Inc.      
  65     8.00%, 11/15/14(5)     67,926    
            $ 124,326    

 

Principal
Amount
(000's omitted)
 
Security
 

Value
 
Automotive — 1.7%      
Altra Industrial Motion, Inc.      
$ 1,050     9.00%, 12/1/11   $ 1,060,500    
American Axle & Manufacturing, Inc.      
  60     7.875%, 3/1/17     58,800    
Goodyear Tire & Rubber Co., Sr. Notes, Variable Rate      
  80     9.135%, 12/1/09     81,400    
Tenneco Automotive, Inc., Series B      
  1,000     10.25%, 7/15/13     1,083,750    
            $ 2,284,450    
Broadcast-Radio and Television — 0.0%      
Warner Music Group, Sr. Sub. Notes      
$ 40     7.375%, 4/15/14   $ 35,700    
            $ 35,700    
Brokers / Dealers / Investment Houses — 0.2%      
Nuveen Investments, Inc.      
$ 20     5.00%, 9/15/10   $ 17,571    
Nuveen Investments, Inc., Sr. Notes      
  135     10.50%, 11/15/15(5)     136,856    
Residential Capital LLC, Sub. Notes, Variable Rate      
  125     8.044%, 4/17/09(5)     77,656    
            $ 232,083    
Building and Development — 0.5%      
Goodman Global Holdings, Inc., Sr. Notes, Variable Rate      
$ 155     8.36%, 6/15/12   $ 156,162    
Interline Brands, Inc., Sr. Sub. Notes      
  50     8.125%, 6/15/14     50,125    
Nortek, Inc., Sr. Sub. Notes      
  160     8.50%, 9/1/14     142,400    
NTK Holdings, Inc., Sr. Disc. Notes (0% until 2009)      
  155     10.75%, 3/1/14     102,300    
Panolam Industries International, Sr. Sub. Notes      
  175     10.75%, 10/1/13(5)     167,125    
Realogy Corp., Sr. Notes      
  25     10.50%, 4/15/14(5)     20,844    
            $ 638,956    

 

See notes to financial statements
9



Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal
Amount
(000's omitted)
 
Security
 

Value
 
Business Equipment and Services — 1.8%      
Aramark Corp., Sr. Notes      
$ 34     8.50%, 2/1/15   $ 34,595    
Ceridian Corp., Sr. Notes      
  225     11.25%, 11/15/15(5)     223,312    
Education Management, LLC      
  1,190     10.25%, 6/1/16     1,255,450    
KAR Holdings, Inc., Sr. Notes      
  55     9.356%, 5/1/14(5)     52,525    
MediMedia USA, Inc., Sr. Sub Notes      
  100     11.375%, 11/15/14(5)     105,000    
Neff Corp., Sr. Notes      
  30     10.00%, 6/1/15     21,750    
SunGard Data Systems, Inc.      
  20     9.125%, 8/15/13     20,500    
Travelport, LLC      
  220     9.875%, 9/1/14     227,700    
  45     11.875%, 9/1/16     48,825    
West Corp.      
  340     9.50%, 10/15/14     351,050    
            $ 2,340,707    
Cable and Satellite Television — 0.9%      
CCH I Holdings, LLC      
$ 50     11.75%, 5/15/14   $ 43,875    
CCH I, LLC/CCH I Capital Co.      
  155     11.00%, 10/1/15     151,125    
CCH II, LLC/CCH II Capital Co.      
  115     10.25%, 9/15/10     117,587    
CCO Holdings, LLC/CCO Capital Corp., Sr. Notes      
  700     8.75%, 11/15/13     703,500    
CSC Holdings, Inc., Sr. Notes      
  50     6.75%, 4/15/12     48,625    
Mediacom Broadband Group Corp., LLC, Sr. Notes      
  60     8.50%, 10/15/15     59,400    
Quebecor Media, Inc., Sr. Notes      
  55     7.75%, 3/15/16(5)     53,350    
            $ 1,177,462    
Chemicals and Plastics — 0.3%      
Equistar Chemical, Sr. Notes      
$ 13     10.625%, 5/1/11   $ 13,650    
INEOS Group Holdings PLC      
  175     8.50%, 2/15/16(5)     167,125    

 

Principal
Amount
(000's omitted)
 
Security
 

Value
 
Chemicals and Plastics (continued)      
Reichhold Industries, Inc., Sr. Notes      
$ 225     9.00%, 8/15/14(5)   $ 229,500    
            $ 410,275    
Clothing / Textiles — 1.0%      
Levi Strauss & Co., Sr. Notes      
$ 70     9.75%, 1/15/15   $ 73,412    
  170     8.875%, 4/1/16     175,100    
Oxford Industries, Inc., Sr. Notes      
  1,000     8.875%, 6/1/11     1,005,000    
Perry Ellis International, Inc., Sr. Sub. Notes      
  85     8.875%, 9/15/13     85,425    
            $ 1,338,937    
Conglomerates — 0.2%      
ESCO Corp., Sr. Notes      
$ 65     8.625%, 12/15/13(5)   $ 66,462    
ESCO Corp., Sr. Notes, Variable Rate      
  65     9.569%, 12/15/13(5)     65,325    
RBS Global & Rexnord Corp.      
  75     9.50%, 8/1/14     77,812    
  70     11.75%, 8/1/16     74,550    
            $ 284,149    
Containers and Glass Products — 1.0%      
Intertape Polymer US, Inc., Sr. Sub. Notes      
$ 20     8.50%, 8/1/14   $ 18,700    
Pliant Corp. (PIK)      
  1,234     11.85%, 6/15/09     1,258,934    
            $ 1,277,634    
Cosmetics / Toiletries — 0.3%      
Amscan Holdings, Inc., Sr. Sub. Notes      
$ 225     8.75%, 5/1/14   $ 213,750    
Revlon Consumer Products Corp., Sr. Sub. Notes      
  135     8.625%, 2/1/08     131,962    
            $ 345,712    
Ecological Services and Equipment — 0.0%      
Waste Services, Inc., Sr. Sub. Notes      
$ 25     9.50%, 4/15/14   $ 25,125    
            $ 25,125    

 

See notes to financial statements
10



Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal
Amount
(000's omitted)
 
Security
 

Value
 
Electronics / Electrical — 0.4%      
Advanced Micro Devices, Inc., Sr. Notes      
$ 275     7.75%, 11/1/12   $ 255,062    
Amkor Technologies, Inc., Sr. Notes      
  90     7.75%, 5/15/13     87,412    
Avago Technologies Finance      
  65     10.125%, 12/1/13     70,525    
  45     11.875%, 12/1/15     50,625    
NXP B.V./NXP Funding, LLC      
  7     7.875%, 10/15/14     6,869    
            $ 470,493    
Financial Intermediaries — 1.2%      
E*Trade Financial Corp.      
  155     7.875%, 12/1/15     148,025    
Ford Motor Credit Co., Sr. Notes      
  30     5.80%, 1/12/09     28,951    
  10     9.875%, 8/10/11     9,993    
General Motors Acceptance Corp.      
  1,000     6.125%, 1/22/08     997,343    
  60     6.375%, 5/1/08     59,700    
  112     7.75%, 1/19/10     108,465    
  210     7.25%, 3/2/11     198,716    
General Motors Acceptance Corp., Variable Rate      
  75     6.808%, 5/15/09     70,591    
            $ 1,621,784    
Food Products — 0.1%      
Dole Foods Co.      
$ 125     7.25%, 6/15/10   $ 119,375    
Dole Foods Co., Sr. Notes      
  30     8.625%, 5/1/09     30,300    
            $ 149,675    
Food Service — 0.7%      
El Pollo Loco, Inc.      
$ 55     11.75%, 11/15/13   $ 55,550    
NPC International, Inc.      
  935     9.50%, 5/1/14     878,900    
            $ 934,450    

 

Principal
Amount
(000's omitted)
 
Security
 

Value
 
Food / Drug Retailers — 0.7%      
General Nutrition Center, Sr. Notes, Variable Rate (PIK)      
$ 155     10.009%, 3/15/14   $ 149,962    
General Nutrition Center, Sr. Sub. Notes      
  155     10.75%, 3/15/15     151,512    
Rite Aid Corp.      
  200     6.125%, 12/15/08(5)     198,500    
  65     9.375%, 12/15/15(5)     60,287    
  340     9.50%, 6/15/17(5)     316,200    
Rite Aid Corp., Sr. Notes      
  55     8.625%, 3/1/15     49,087    
            $ 925,548    
Forest Products — 0.3%      
Abitibi-Consolidated, Inc.      
$ 115     7.875%, 8/1/09   $ 110,975    
Jefferson Smurfit Corp.      
  30     7.50%, 6/1/13     29,400    
NewPage Corp.      
  90     10.00%, 5/1/12     95,625    
  45     12.00%, 5/1/13     48,825    
Smurfit-Stone Container Enterprises, Inc., Sr. Notes      
  105     8.00%, 3/15/17     104,869    
            $ 389,694    
Healthcare — 2.0%      
Advanced Medical Optics, Inc., Sr. Sub. Notes      
$ 35     7.50%, 5/1/17   $ 33,162    
AMR HoldCo, Inc./EmCare HoldCo, Inc., Sr. Sub. Notes      
  15     10.00%, 2/15/15     16,012    
Bausch & Lomb, Inc., Sr. Notes      
  130     9.875%, 11/1/15(5)     134,225    
HCA, Inc.      
  445     8.75%, 9/1/10     455,012    
  70     7.875%, 2/1/11     69,475    
  90     9.125%, 11/15/14     93,375    
  180     9.25%, 11/15/16     189,900    
MultiPlan, Inc., Sr. Sub. Notes      
  1,035     10.375%, 4/15/16(5)     1,063,462    
National Mentor Holdings, Inc.      
  145     11.25%, 7/1/14     154,425    

 

See notes to financial statements
11



Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal
Amount
(000's omitted)
 
Security
 

Value
 
Healthcare (continued)      
Universal Hospital Service, Inc.      
$ 25     8.50%, 6/1/15(5)   $ 25,562    
Universal Hospital Services, Inc., Variable Rate      
  25     8.759%, 6/1/15(5)     25,188    
US Oncology, Inc.      
  30     9.00%, 8/15/12     30,225    
  335     10.75%, 8/15/14     350,075    
Varietal Distribution Merger, Inc., Sr. Sub. Notes      
  30     10.25%, 7/15/15(5)     29,550    
            $ 2,669,648    
Insurance — 0.1%      
Alliant Holdings I, Inc.      
$ 70     11.00%, 5/1/15(5)   $ 67,550    
            $ 67,550    
Leisure Goods / Activities / Movies — 1.5%      
AMC Entertainment, Inc.      
$ 95     11.00%, 2/1/16   $ 103,313    
Marquee Holdings, Inc., Sr. Disc. Notes      
  2,085     9.505%, 8/15/14     1,777,463    
Universal City Florida Holdings, Sr. Notes, Variable Rate      
  100     10.106%, 5/1/10     102,750    
            $ 1,983,526    
Lodging and Casinos — 2.6%      
Buffalo Thunder Development Authority      
$ 165     9.375%, 12/15/14(5)   $ 155,100    
CCM Merger, Inc.      
  45     8.00%, 8/1/13(5)     43,425    
Fontainebleau Las Vegas Casinos      
  310     10.25%, 6/15/15(5)     291,400    
Indianapolis Downs, LLC & Capital Corp., Sr. Notes      
  75     11.00%, 11/1/12(5)     75,750    
Inn of the Mountain Gods, Sr. Notes      
  45     12.00%, 11/15/10     47,700    
Majestic Star Casino, LLC      
  35     9.50%, 10/15/10     34,650    
MGM Mirage, Inc.      
  105     7.50%, 6/1/16     104,869    
Pinnacle Entertainment Inc., Sr. Sub. Notes      
  95     7.50%, 6/15/15(5)     92,150    

 

Principal
Amount
(000's omitted)
 
Security
 

Value
 
Lodging and Casinos (continued)      
Pokagon Gaming Authority, Sr. Notes      
$ 60     10.375%, 6/15/14(5)   $ 66,600    
Seminole Hard Rock Entertainment, Variable Rate      
  80     8.194%, 3/15/14(5)     78,600    
Station Casinos, Inc.      
  30     7.75%, 8/15/16     29,513    
Station Casinos, Inc., Sr. Notes      
  50     6.00%, 4/1/12     46,625    
Trump Entertainment Resorts, Inc.      
  2,190     8.50%, 6/1/15     1,866,975    
Tunica-Biloxi Gaming Authority, Sr. Notes      
  160     9.00%, 11/15/15(5)     167,200    
Turning Stone Resort Casinos, Sr. Notes      
  40     9.125%, 9/15/14(5)     41,600    
Venetian Casino Resort/Las Vegas Sands Inc.      
  15     6.375%, 2/15/15     14,644    
Waterford Gaming, LLC, Sr. Notes      
  230     8.625%, 9/15/14(5)     231,150    
            $ 3,387,951    
Nonferrous Metals / Minerals — 0.4%      
Aleris International, Inc., Sr. Notes      
$ 30     9.00%, 12/15/14   $ 27,225    
Aleris International, Inc., Sr. Sub. Notes      
  210     10.00%, 12/15/16     185,850    
FMG Finance PTY, Ltd.      
  225     10.625%, 9/1/16(5)     267,750    
FMG Finance PTY, Ltd., Variable Rate      
  90     9.621%, 9/1/11(5)     93,825    
            $ 574,650    
Oil and Gas — 3.6%      
Allis-Chalmers Energy, Inc.      
$ 40     8.50%, 3/1/17   $ 39,300    
Allis-Chalmers Energy, Inc., Sr. Notes      
  1,045     9.00%, 1/15/14     1,063,288    
Cimarex Energy Co., Sr. Notes      
  55     7.125%, 5/1/17     55,206    
Clayton Williams Energy, Inc.      
  30     7.75%, 8/1/13     28,275    
Compton Pet Finance Corp.      
  90     7.625%, 12/1/13     86,625    
Denbury Resources, Inc., Sr. Sub. Notes      
  25     7.50%, 12/15/15     25,500    

 

See notes to financial statements
12



Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal
Amount
(000's omitted)
 
Security
 

Value
 
Oil and Gas (continued)      
Ocean Rig Norway AS, Sr. Notes      
$ 70     8.375%, 7/1/13(5)   $ 71,925    
OPTI Canada, Inc.      
  65     7.875%, 12/15/14(5)     64,838    
  75     8.25%, 12/15/14(5)     75,563    
Petrohawk Energy Corp., Sr. Notes      
  1,320     9.125%, 7/15/13     1,407,450    
Plains Exploration & Production Co.      
  115     7.00%, 3/15/17     109,825    
Quicksilver Resources, Inc.      
  115     7.125%, 4/1/16     113,850    
SemGroup L.P., Sr. Notes      
  145     8.75%, 11/15/15(5)     139,925    
SESI, LLC      
  30     6.875%, 6/1/14     29,250    
Stewart & Stevenson, LLC, Sr. Notes      
  170     10.00%, 7/15/14     175,525    
United Refining Co., Sr. Notes      
  1,185     10.50%, 8/15/12     1,230,919    
            $ 4,717,264    
Publishing — 0.6%      
Dex Media West/ Finance, Series B      
$ 55     9.875%, 8/15/13   $ 58,919    
Harland Clarke Holdings      
  45     9.50%, 5/15/15     41,175    
Idearc, Inc., Sr. Notes      
  115     8.00%, 11/15/16     115,863    
Nielsen Finance, LLC      
  110     10.00%, 8/1/14     116,325    
R.H. Donnelley Corp.      
  195     8.875%, 10/15/17(5)     195,975    
Reader's Digest Association, Inc., (The), Sr. Sub. Notes      
  270     9.00%, 2/15/17(5)     241,988    
            $ 770,245    
Rail Industries — 0.1%      
American Railcar Industry, Sr. Notes      
$ 80     7.50%, 3/1/14   $ 79,400    
Kansas City Southern Railway Co.      
  35     9.50%, 10/1/08     35,963    
            $ 115,363    

 

Principal
Amount
(000's omitted)
 
Security
 

Value
 
Retailers (Except Food and Drug) — 2.0%      
Bon-Ton Department Stores, Inc.      
$ 75     10.25%, 3/15/14   $ 66,000    
GameStop Corp.      
  160     8.00%, 10/1/12     167,800    
Michaels Stores, Inc., Sr. Notes      
  132     10.00%, 11/1/14     133,650    
Michaels Stores, Inc., Sr. Sub. Notes      
  140     11.375%, 11/1/16     140,350    
Neiman Marcus Group, Inc.      
  635     9.00%, 10/15/15     673,100    
  940     10.375%, 10/15/15     1,026,950    
Sally Holdings, LLC, Sr. Notes      
  60     9.25%, 11/15/14     60,600    
Toys "R" Us      
  100     7.375%, 10/15/18     78,500    
Yankee Acquisition Corp., Series B      
  157     8.50%, 2/15/15     147,973    
  195     9.75%, 2/15/17     181,350    
            $ 2,676,273    
Steel — 0.1%      
RathGibson, Inc.      
$ 10     11.25%, 2/15/14   $ 10,375    
Ryerson, Inc., Sr. Notes      
  20     12.00%, 11/1/15(5)     20,650    
Ryerson, Inc., Sr. Notes, Variable Rate      
  15     12.574%, 11/1/14(5)     15,375    
Steel Dynamics, Inc., Sr. Notes      
  140     7.375%, 11/1/12(5)     140,700    
            $ 187,100    
Surface Transport — 0.1%      
CEVA Group PLC      
$ 120     10.00%, 9/1/14(5)   $ 125,550    
            $ 125,550    
Telecommunications — 0.6%      
Digicel Group, Ltd., Sr. Notes      
$ 40     9.25%, 9/1/12(5)   $ 41,200    
Intelsat Bermuda, Ltd.      
  120     9.25%, 6/15/16     125,100    
Intelsat Ltd., Sr. Notes      
  85     5.25%, 11/1/08     84,256    

 

See notes to financial statements
13



Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal
Amount
(000's omitted)
 
Security
 

Value
 
Telecommunications (continued)      
Level 3 Financing, Inc. Sr. Notes      
$ 100     9.25%, 11/1/14   $ 94,750    
  165     8.75%, 2/15/17     151,388    
Qwest Capital Funding, Inc.      
  40     7.00%, 8/3/09     40,300    
  30     7.90%, 8/15/10     30,900    
Qwest Communications International, Inc., Sr. Notes      
  25     7.50%, 11/1/08     25,000    
Windstream Corp.      
  95     8.125%, 8/1/13     100,938    
  30     8.625%, 8/1/16     32,250    
            $ 726,082    
Utilities — 0.7%      
AES Corp., Sr. Notes      
$ 105     8.00%, 10/15/17(5)   $ 106,444    
Dynegy Holdings, Inc., Sr. Notes      
  20     7.75%, 6/1/19(5)     18,875    
Edison Mission Energy, Sr. Notes      
  65     7.50%, 6/15/13     66,219    
  75     7.00%, 5/15/17(5)     73,688    
Energy Future Holdings, Sr. Notes      
  245     10.875%, 11/1/17(5)     248,981    
NRG Energy, Inc.      
  50     7.25%, 2/1/14     50,125    
  165     7.375%, 1/15/17     164,588    
NRG Energy, Inc., Sr. Notes      
  15     7.375%, 2/1/16     15,000    
Reliant Energy, Inc. Sr. Notes      
  10     7.625%, 6/15/14     10,138    
  34     7.875%, 6/15/17     34,468    
Texas Competitive Electric Holdings Co. LLC, Sr. Notes      
  165     10.25%, 11/1/15(5)     166,650    
            $ 955,176    
Total Corporate Bonds & Notes
(identified cost $34,323,520)
  $ 33,963,538    
Asset-Backed Securities — 1.5%      
Principal
Amount
(000's omitted)
  Security   Value  
Comstock Funding, Ltd., Series 2006-1A, Class D      
$ 2,000     9.76%, 5/30/20(4)(5)(8)   $ 1,602,842    

 

Principal
Amount
(000's omitted)
 
Security
  Value  
Sonata Securities S.A., Series 2006-6      
$ 326     8.85%, 12/28/07   $ 325,904    
            $ 1,928,746    
Total Asset-Backed Securities
(identified cost $1,765,904)
  $ 1,928,746    
Common Stocks — 0.1%      
Shares   Security   Value  
  5,780     Time Warner Cable, Inc., Class A(6)   $ 165,250    
Total Common Stocks
(identified cost $299,250)
  $ 165,250    
Preferred Stocks — 0.1%      
Units   Security   Value  
  175     Fontainebleau Resorts LLC (PIK)(4)(7)   $ 167,283    
Total Preferred Stocks
(identified cost $175,313)
  $ 167,283    
Miscellaneous — 0.1%      
Shares   Security   Value  
  290,298     Adelphia Recovery Trust(6)   $ 25,221    
  300,000     Adelphia, Inc. Escrow Certificate(6)     50,250    
Total Miscellaneous
(identified cost $0)
  $ 75,471    
Closed-End Investment Companies — 0.5%      
Shares   Security   Value  
  5,877     BlackRock Floating Rate Income Strategies Fund II   $ 97,617    
  6,582     BlackRock Floating Rate Income Strategies Fund, Inc.     111,236    
  11,127     BlackRock Global Floating Rate Income Trust     186,822    
  1,560     First Trust/Four Corners Senior Floating Rate
Income Fund
    24,820    
  794     First Trust/Four Corners Senior Floating Rate
Income Fund II
    12,791    
  8,391     ING Prime Rate Trust     55,716    
  1,511     LMP Corporate Loan Fund, Inc.     18,752    
  4,401     Nuveen Floating Rate Income Fund     54,396    
  4,535     Nuveen Floating Rate Income Opportunity Fund     56,506    
  1,835     Nuveen Senior Income Fund     13,983    

 

See notes to financial statements
14



Eaton Vance Credit Opportunities Fund as of October 31, 2007

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Shares   Security   Value  
  73     PIMCO Floating Rate Income Fund   $ 1,266    
  863     PIMCO Floating Rate Strategy Fund     14,516    
  156     Pioneer Floating Rate Trust     2,767    
  1,673     Van Kampen Senior Income Trust     12,162    
Total Closed-End Investment Companies
(identified cost $624,252)
  $ 663,350    
Total Investments — 168.2%
(identified cost $223,147,829)
  $ 221,398,179    
Less Unfunded Loan
Commitments — (2.2)%
  $ (2,842,263 )  
Net Investments — 166.0%
(identified cost $220,305,566)
  $ 218,555,916    
Other Assets, Less Liabilities — (4.2)%   $ (5,582,656 )  
Auction Preferred Shares Plus
Cumulative Unpaid
Dividends — (61.8)%
  $ (81,323,125 )  
Net Assets Applicable
to Common Shares — 100.0%
  $ 131,650,135    

 

DIP - Debtor In Possession

PIK - Payment In Kind

EUR - Euro

GBP - British Pound

* In U.S. dollars unless otherwise indicated.

(1)  Senior floating-rate interests 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, it is anticipated that the senior floating-rate interests will have an expected average life of approximately two to three years. The stated interest rate represents the weighted average interest rate of all contracts within the senior loan facility. 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 lending rates are primarily the Lon don-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)  This Senior Loan will settle after October 31, 2007, at which time the interest rate will be determined.

(3)  Unfunded or partially unfunded loan commitments. See Note 1H for description.

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

(5)  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 October 31, 2007, the aggregate value of the securities is $8,309,249 or 6.3% of the Fund's net assets applicable to common shares.

(6)  Non-income producing security.

(7)  Restricted security.

(8)  Adjustable rate security. The rate shown is the rate at October 31, 2007.

See notes to financial statements
15




Eaton Vance Credit Opportunities Fund as of October 31, 2007

FINANCIAL STATEMENTS (Unaudited)

Statement of Assets and Liabilities

As of October 31, 2007

Assets  
Investments, at value
(identified cost, $220,305,566)
  $ 218,555,916    
Cash     946,897    
Foreign currency, at value (identified cost, $1,510,694)     1,514,069    
Receivable for investments sold     7,515,297    
Dividends and interest receivable     3,253,806    
Interest rate floors, at value     323,289    
Prepaid expenses     55,185    
Total assets   $ 232,164,459    
Liabilities  
Demand note payable   $ 10,700,000    
Payable for investments purchased     7,951,238    
Payable to affiliate for investment advisory fee     105,332    
Payable to affiliate for Trustees' fees     835    
Payable for open forward foreign currency contracts, net     248,440    
Accrued expenses     185,354    
Total liabilities   $ 19,191,199    
Auction preferred shares (3,250 shares outstanding) at
liquidation value plus cumulative unpaid dividends
  $ 81,323,125    
Net assets applicable to common shares   $ 131,650,135    
Sources of Net Assets  
Common Shares, $0.01 par value, unlimited number of shares
authorized, 7,233,754 shares issued and outstanding
  $ 72,338    
Additional paid-in capital     133,912,586    
Accumulated net realized loss (computed on the basis of identified cost)     (1,351,838 )  
Accumulated undistributed net investment income     948,289    
Net unrealized depreciation (computed on the basis of identified cost)     (1,931,240 )  
Net assets applicable to common shares   $ 131,650,135    
Net Asset Value Per Common Share  
($131,650,135 ÷ 7,233,754 common shares issued and outstanding)   $ 18.20    

 

Statement of Operations

For the Six Months Ended
October 31, 2007

Investment Income  
Interest   $ 10,272,430    
Dividends     40,310    
Interest income allocated from affiliated investment     35,887    
Expenses allocated from affliated investment     (3,318 )  
Total investment income   $ 10,345,309    
Expenses  
Investment adviser fee   $ 815,161    
Trustees' fees and expenses     5,117    
Legal and accounting services     108,326    
Preferred shares remarketing agent fee     102,398    
Custodian fee     38,094    
Transfer and dividend disbursing agent fees     29,781    
Printing and postage     341    
Interest expense     42,074    
Miscellaneous     47,303    
Total expenses   $ 1,188,595    
Deduct —
Reduction of custodian fee
  $ 1,495    
Reduction of investment adviser fee     214,809    
Total expense reductions   $ 216,304    
Net expenses   $ 972,291    
Net investment income   $ 9,373,018    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) —
Investment transactions (identified cost basis)
  $ 1,167,884    
Foreign currency and forward foreign currency exchange contract transactions     (2,070,386 )  
Net realized loss   $ (902,502 )  
Change in unrealized appreciation (depreciation) —
Investments (identified cost basis)
  $ (7,402,748 )  
Interest rate floors     125,490    
Foreign currency and forward foreign currency exchange contracts     (130,671 )  
Net change in unrealized appreciation (depreciation)   $ (7,407,929 )  
Net realized and unrealized loss   $ (8,310,431 )  
Distributions to preferred shareholders          
From net investment income     (2,296,905 )  
Net decrease in net assets from operations   $ (1,234,318 )  

 

See notes to financial statements
16



Eaton Vance Credit Opportunities Fund as of October 31, 2007

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

Increase (Decrease)
in Net Assets
  Six Months Ended
October 31, 2007
(Unaudited)
  Period Ended
April 30, 2007(1) 
 
From operations —
Net investment income
  $ 9,373,018     $ 14,558,171    
Net realized loss from investment,
foreign currency and  
forward foreign currency exchange  
contract transactions
    (902,502 )     (2,261,044 )  
Net change in unrealized appreciation
(depreciation) from investments,  
interest rate floors and foreign currency  
and forward foreign currency  
exchange contracts
    (7,407,929 )     5,476,689    
Distributions to preferred shareholders —
From net investment income
    (2,296,905 )     (3,077,133 )  
Net increase (decrease) in net assets
from operations
  $ (1,234,318 )   $ 14,696,683    
Distributions to common shareholders —
From net investment income
  $ (7,274,678 )   $ (11,324,204 )  
Total distributions to common shareholders   $ (7,274,678 )   $ (11,324,204 )  
Capital share transactions —
Proceeds from sale of common shares
  $     $ 133,700,000 (2)   
Reinvestment of distributions to
common shareholders
    1,153,732       3,195,840    
Offering costs and preferred shares
underwriting discounts
          (1,362,920 )  
Total increase in net assets from capital
share transactions
  $ 1,153,732     $ 135,532,920    
Net increase (decrease) in net assets   $ (7,355,264 )   $ 138,905,399    
Net Assets Applicable to Common Shares  
At beginning of period   $ 139,005,399     $ 100,000    
At end of period   $ 131,650,135     $ 139,005,399    
Accumulated undistributed
net investment income
included in net assets
applicable to common shares
 
At end of period   $ 948,289     $ 1,146,854    

 

(1)  For the period from the start of business, May 30, 2006, to April 30, 2007.

(2)  Proceeds from sales of shares net of sales load paid of $6,300,000.

See notes to financial statements
17




Eaton Vance Credit Opportunities Fund as of October 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Six Months Ended
October 31, 2007
(Unaudited)(1) 
  Period Ended
April 30, 2007(1)(2) 
 
Net asset value — Beginning of period   $ 19.380     $ 19.100 (3)   
Income (loss) from operations  
Net investment income   $ 1.302     $ 2.057    
Net realized and unrealized gain (loss)     (1.153 )     0.449    
Distributions to preferred shareholders from net investment income     (0.319 )     (0.435 )  
Total income from operations   $ (0.170 )   $ 2.071    
Less distributions to common shareholders  
From net investment income   $ (1.010 )   $ (1.598 )  
Total distributions to common shareholders   $ (1.010 )   $ (1.598 )  
Preferred and Common shares offering costs charged to paid-in capital   $     $ (0.078 )  
Preferred shares underwriting discounts   $     $ (0.115 )  
Net asset value — End of period (Common shares)   $ 18.200     $ 19.380    
Market value — End of period (Common shares)   $ 17.570     $ 20.920    
Total Investment Return on Net Asset Value(10)      (0.81 )%     10.23 %(4)(9)   
Total Investment Return on Market Value(10)      (11.29 )%(9)      18.99 %(4)(9)   

 

See notes to financial statements
18



Eaton Vance Credit Opportunities Fund as of October 31, 2007

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Six Months Ended
October 31, 2007
(Unaudited)(1) 
  Period Ended
April 30, 2007(1)(2) 
 
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 131,650     $ 139,005    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses before custodian fee reduction(5)(6)     1.44 %     1.40 %  
Net expenses after custodian fee reduction(5)(6)     1.44 %     1.40 %  
Net investment income(5)(6)     13.87 %     11.72 %  
Portfolio Turnover     38 %     68 %  

 

The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets applicable to common and preferred shares):  
Net expenses before custodian fee reduction(5)(6)     0.90 %     0.88 %  
Net expenses after custodian fee reduction(5)(6)     0.90 %     0.88 %  
Net investment income(5)(6)     8.64 %     7.32 %  
Senior Securities:  
Total preferred shares outstanding     3,250       3,250    
Asset coverage per preferred share(7)   $ 65,530     $ 67,786    
Involuntary liquidation preference per preferred share(8)   $ 25,000     $ 25,000    
Approximate market value per preferred share(8)   $ 25,000     $ 25,000    

 

(1)  Net investment income per share was computed using average common shares outstanding.

(2)  For the period from the start of business, May 30, 2006, to April 30, 2007.

(3)  Net asset value at beginning of period reflects the deduction of the sales load of $0.900 per share paid by the shareholder from the $20.000 offering price.

(4)  Total investment return on net asset value is calculated assuming a purchase at the offering price of $20.00 less the sales load of $0.90 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported with all distributions reinvested. Total investment return on market value is calculated assuming a purchase at the offering price of $20.00 less the sales load of $0.90 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported with all distributions reinvested.

(5)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(6)  Annualized.

(7)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding.

(8)  Plus accumulated and unpaid dividends.

(9)  Not annualized.

(10)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.

See notes to financial statements
19




Eaton Vance Credit Opportunities Fund as of October 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1  Significant Accounting Policies

Eaton Vance Credit Opportunities Fund (the Fund) is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, closed-end management investment company. The Fund's primary investment objective is to provide a high level of current income. The Fund, as a secondary objective, also seeks capital appreciation. The Fund pursues its objectives primarily by investing opportunistically in various credit-related investments.

The following is a summary of significant accounting policies of the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America.

A  Investment Valuation — The Fund's investments are primarily in interests in senior floating rate loans (Senior Loans). Interests in Senior Loans for which reliable market quotations are readily available are valued on the basis of prices furnished by an independent pricing service. Other Senior Loans are valued at fair value by the investment adviser under procedures approved by the Trustees. In fair valuing a Senior Loan, the investment adviser utilizes one or more of the following valuation techniques: (i) a matrix pricing approach that considers the yield on the Senior Loan relative to yields on other loan interests issued by companies of comparable credit quality; (ii) a comparison of the value of the borrower's outstanding equity and debt to that of comparable publ ic companies; (iii) a discounted cash flow analysis; or (iv) when the investment adviser believes it is likely that a borrower will be liquidated or sold, an analysis of the terms of such liquidation or sale. In certain cases, the investment adviser will use a combination of analytical methods to determine fair value, such as when only a portion of a borrower's assets are likely to be sold. In conducting its assessment and analyses for purposes of determining fair value of a Senior Loan, the investment adviser will use its discretion and judgment in considering and appraising relevant factors. Junior loans are valued in the same manner as Senior Loans. Fair value determinations are made by the portfolio managers of a Fund based on information available to such managers. The portfolio managers of other funds managed by Eaton Vance that invest in Senior Loans may not possess the same information about a Senior Loan borrower as the portfolio managers of the Fund. At times, the fair value of a Senior Loan determ ined by the portfolio managers of other funds managed by Eaton Vance that invest in Senior Loans may vary from the fair value of the same Senior Loan determined by the portfolio managers of the Fund. The fair value of each Senior Loan is periodically reviewed and approved by the investment adviser's Valuation Committee and by the Fund's Trustees based upon procedures approved by the Trustees.

Other portfolio securities (other than short-term obligations, but including listed issues) may be valued on the basis of prices furnished by one or more pricing services which determine prices for normal, institutional-size trading units of such securities which may use market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Short-term obligations which mature in sixty days or less are valued at amortized cost, which approximates market value. If short-term debt securities are acquired with a remaining maturity of more than sixty days, they will be valued by a pricing service. Over-the-counter options are valued at the mean between the bid and the asked price provided by dealers. Securities listed on foreign or U.S. securities exchanges generally are valued at closing sale prices or, if there were no sales, at the mean betwe en the closing bid and asked prices on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ Global or Global Select Market are valued at the NASDAQ official closing price. Financial futures contracts listed on commodity exchanges and options thereon are valued at closing settlement prices. Interest rate swaps and floors are generally valued by the broker-dealer (usually the counterparty to the agreement). Other portfolio securities for which there are no quotations or valuations and investments for which the price of the security is not believed to represent its fair market value, are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Fund. Occasionally, events affecting the value of foreign securities may occur between the time trading is completed abroad and the close of the New York Stock Exchange which will not be reflected in the computation of the Fund's net asset value (unless the Fund deems that such e vent would materially affect its net asset value in which case an adjustment would be made and reflected in such computation). The Fund may rely on an independent fair valuation service in making any such adjustment as to the value of a foreign equity security.

The Fund may invest in Cash Management Portfolio (Cash Management), an affiliated investment company managed by Boston Management and Research (BMR), a subsidiary of EVM. Cash Management values its investment securities utilizing the amortized cost valuation technique


20



Eaton Vance Credit Opportunities Fund as of October 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

permitted by Rule 2a-7 of the 1940 Act. This technique involves initially valuing a portfolio security at its cost and thereafter assuming a constant amortization to maturity of any discount or premium.

B  Income — Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount. Fees associated with loan amendments are recognized immediately. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities.

C  Investment Transactions — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.

D  Federal Taxes — The Fund's policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. At April 30, 2007, the Fund had a net capital loss of $164,791 attributable to security transactions incurred after October 31, 2006. This net capital loss is treated as arising on the first day of the Fund's taxable year ending April 30, 2008.

In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109". FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, "Accounting for Income Taxes". This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective on the last business day of the first required financial reporting period for fiscal years beginning after December 15, 2006. Management has concluded that as of October 31, 2007, there are no uncertain tax positions that wou ld require financial statement recognition, de-recognition, or disclosure.

E  Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Fund. Pursuant to the custodian agreement, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance the Fund maintains with SSBT. All credit balances, if any, used to reduce the Fund's custodian fees are reported as a reduction of expenses in the Statement of Operations.

F  Offering Costs — Costs incurred by the Fund in connection with the offering of its common and preferred shares are recorded as a reduction of additional paid-in capital applicable to common shares.

G  Foreign Currency Translation — Investment valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.

H  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. These commitments are disclosed in the accompanying Portfolio of Investments.

I  Use of Estimates — The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.

J  Indemnifications — Under the Fund's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Fund, and shareholders are indemnified against personal liability for obligations of the Fund. Additionally, in the normal course of business, the Fund enters into


21



Eaton Vance Credit Opportunities Fund as of October 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

agreements with service providers that may contain indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.

K  Financial Futures Contracts — The Fund may enter into financial futures contracts. The Fund's investment in financial futures contracts is designed for hedging against changes in interest rates or as a substitute for the purchase of securities. Upon entering into a financial futures contract, the Fund is required to deposit with the broker, either in cash or securities an amount equal to a certain percentage of the purchase price (initial margin). Subsequent payments, known as variation margin, are made or received by the Fund each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Fund. Gains (losses) are realized upon the expiration or closing of the financial futures contrac ts. Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. In entering such contracts, the Fund bears the risk if the counterparties do not perform under the contracts' terms.

L  Forward Foreign Currency Exchange Contracts — The Fund may enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. The Fund may enter into forward contracts for hedging purposes as well as non-hedging purposes. The forward foreign currency exchange contract is adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded as unrealized until such time as the contract has been closed or offset by another contract with the same broker for the same settlement and currency. Risks may arise upon entering these contracts from the potential inability of counterparties to meet the terms of their contracts and from movements in the value of a foreign cur rency relative to the U.S. dollar.

M  Interest Rate Swaps — The Fund may enter into interest rate swap agreements to enhance return, to hedge against fluctuations in securities prices or interest rates, or as substitution for the purchase or sale of securities. Pursuant to these agreements, the Fund makes periodic payments at a fixed interest rate and, in exchange, receives payments based on the interest rate of a benchmark industry index. Payments received or made are recorded as realized gains or losses. During the term of the outstanding swap agreement, changes in the underlying value of the swap are recorded as unrealized gains or losses. The value of the swap is determined by changes in the relationship between two rates of interes t. The Fund is exposed to credit loss in the event of non-performance by the swap counterparty. Risk may also arise from movements in interest rates.

N  Interest Rate Floors — The Fund may enter into interest rate floors to enhance return or to hedge against fluctuations in interest rates. Interest rate floors are similar to interest rate swaps, except that one party agrees to pay a fee, while the other party agrees to make payments to the extent that interest rates fall below a specified rate or "floor". Upfront payments made by the Fund are amortized over the life of the interest rate floor. Changes in the value of the interest rate floor are recognized as unrealized gains and losses.

O  When Issued and Delayed Delivery Transactions — The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Fund maintains security positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

P  Interim Financial Statements — The interim financial statements relating to October 31, 2007 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Fund's management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.

2  Auction Preferred Shares

The Fund issued 3,250 shares of Series A Auction Preferred Shares (APS) on August 11, 2006 in a public offering. The underwriting discounts and other offering costs incurred in connection with the offering were recorded as a reduction of the paid-in capital of the common shares. Dividends on the APS, which accrue daily, are cumulative at rates which are reset every seven days by an auction, unless a special dividend period has been set.


22



Eaton Vance Credit Opportunities Fund as of October 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

The APS are redeemable at the option of the Fund at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if the Fund is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS remain unpaid in an amount equal to two full years' dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the common shares have equal voting rights of one vote per share, except that the holders of the APS, as a separate class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. The Fu nd is required to maintain certain asset coverage with respect to the APS as defined in the Fund's By-Laws and the 1940 Act. The Fund pays an annual fee equivalent to 0.25% of the liquidation value for the remarketing efforts associated with APS auctions.

3  Distributions to Shareholders

The Fund intends to make monthly distributions of net investment income to common shareholders, after payment of any dividends on any outstanding APS. In addition, at least annually, the Fund intends to distribute all or substantially all of its net realized capital gains, if any. Distributions to common shareholders are recorded on the ex-dividend date. Distributions to preferred shareholders are recorded daily and are payable at the end of each dividend period. The dividend rate for the APS at October 31, 2007 was 5.10%. For the six months ended October 31, 2007, the Fund paid dividends to APS shareholders amounting to $2,296,905, representing an average APS dividend rate (annualized) for such period of 5.61% and dividend rate ranges of 5.00% to 6.75%.

The Fund distinguishes between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital.

4  Investment Adviser Fee and Other Transactions with Affiliates

The investment adviser fee is earned by EVM as compensation for management and investment advisory services rendered to the Fund. The fee is computed at an annual rate of 0.75% of the Fund's average daily gross assets and is payable monthly. The portion of the advisory fee payable by Cash Management on the Fund's investment of cash therein is credited against the Fund's advisory fee. For the six months ended October 31, 2007, the Fund's advisory fee totaled $818,341 of which $3,180 was allocated from Cash Management and $815,161 was paid or accrued directly by the Fund.

In addition, EVM has contractually agreed to reimburse the Fund for fees and other expenses at an annual rate of 0.20% of the average daily gross assets of the Fund for the first five full years of its operations, 0.15% of the Fund's average daily gross assets in year six, 0.10% in year seven and 0.05% in year eight. Pursuant to this agreement, EVM waived $214,809 of its advisory fee for the six months ended October 31, 2007. EVM also serves as the administrator of the Fund, but receives no compensation.

Except for Trustees of the Fund who are not members of EVM's organization, officers and Trustees receive remuneration for their services to the Fund and of the investment adviser fee. Certain officers and Trustees of the Fund are officers of EVM.

5  Purchases and Sales of Investments

Purchases and sales of investments, other than short-term obligations and including principal repayments, aggregated $92,631,467 and $82,343,280, respectively, for the six months ended October 31, 2007.

6  Federal Income Tax Basis of Unrealized Appreciation (Depreciation)

The cost and unrealized appreciation (depreciation) of investments of the Fund at October 31, 2007, as determined on a federal income tax basis, were as follows:

Aggregate cost   $ 220,485,449    
Gross unrealized appreciation   $ 4,080,760    
Gross unrealized depreciation     (6,010,293 )  
Net unrealized appreciation   $ (1,929,533 )  

 


23



Eaton Vance Credit Opportunities Fund as of October 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

The net unrealized depreciation on interest rate floors, foreign currency and forward foreign currency exchange contracts at October 31, 2007 on a federal income tax basis was $181,590.

7  Common Shares of Beneficial Interest

The Fund may issue shares pursuant to its dividend reinvestment plan. Transactions in common shares were as follows:

    Six Months Ended
October 31, 2007
  Period Ended
April 30, 2007(1) 
 
Sales           7,005,000    
Issued to shareholders electing to
receive payments of distributions
in Fund shares
    62,095       166,659    
Net increase     62,095       7,171,659    

 

(1)  For the period from the start of business, May 30, 2006, to April 30, 2007.

8  Line of Credit

The Fund participates with other portfolios and funds managed by EVM and its affiliates in a $200 million unsecured line of credit agreement with a group of banks. Borrowings are made by the Fund solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to the Fund based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.07% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. At October 31, 2007, the Fund had a balance outstanding pursuant to this line of credit of $10,700,000. Average borrowings by the Fund and the average interest rate (annualized) for the six months ended October 31, 2007 were $1,590,380 and 5.25%, respectively.

9  Risk Associated with Foreign Investments

Investing in securities issued by companies whose principal business activities are outside the United States may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Certain foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of the Fund, political or financial instability or diplomatic and other devel opments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers and issuers than in the United States.

10  Financial Instruments

The Fund may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments may include written options, forward foreign currency exchange contracts, financial futures contracts, and swap contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Fund has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.

A summary of obligations under these financial instruments at October 31, 2007 is as follows:

Forward Foreign Currency Exchange Contracts

Sales

Settlement Date(s)   Deliver   In Exchange For   Net Unrealized
Appreciation
(Depreciation)
 
11/30/07
  British
Pound Sterling
7,457,858
  United States Dollar
15,352,374
  $(126,803)  
11/01/07
  Euro
7,937
  United States Dollar
11,508
  26  
11/30/07   Euro
21,718,180
  United States Dollar
31,314,357
  (120,741)  
            $ (247,518 )  

 


24



Eaton Vance Credit Opportunities Fund as of October 31, 2007

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

Purchases

Settlement Date(s)   In Exchange For   Deliver   Net Unrealized
Depreciation
 
11/30/07   Euro   United States Dollar  
 
    273,625   396,970   $ (922 )  
            $ (922 )  

 

At October 31, 2007, the Fund held the following interest rate floors whereby the Fund will receive the excess, if any, of the fixed rate over the floating rate on the notional amount.

Interest Rate Floors





Counterparty
 

Notional
Amount
(in 000's)
  Fund
Pay/
Receive
Floating
Rate
 
Floating
Rate
 
Annual
Fixed
Rate
 

Expiration
Date
 

Market
Value
  Net
Unrealized
Appreciation
(Depreciation)
 
 
Lehman 
Brothers, Inc.
  $ 10,000    

Receive
  3-month
USD-LIBOR-
BBA
    4.75 %  

March 21, 2008
  $ 2,776     $ (174 )  
 

    10,000    

Receive
  3-month
USD-LIBOR-
BBA
    4.75    

March 21, 2009
    53,201       19,553    


    10,000    

Receive
  3-month
USD-LIBOR-
BBA
    4.25    

March 21, 2010
    61,246       17,995    


    10,000    

Receive
  3-month
USD-LIBOR-
BBA
    4.25    

March 21, 2011
    98,092       23,471    
 
 
    10,000    

Receive
  3-month
USD-LIBOR-
BBA
    4.00    

March 21, 2012
    107,974       21,751    
          $323,289   $82,596  

 

At October 31, 2007, the Fund had sufficient cash and/or securities to cover commitments under these contracts.

11  Restricted Securities

At October 31, 2007, the Fund owned the following securities (representing 0.1% of net assets applicable to common shares) which were restricted as to public resale and not registered under the Securities Act of 1933 (excluding Rule 144A securities). The Fund has various registration rights (exercisable under a variety of circumstances) with respect to these securities. The value of these securities is determined based on valuations provided by brokers when available, or if not available, they are valued at fair value using methods determined in good faith by or at the direction of the Trustees.

Description   Date of
Acquisition
  Units   Cost   Value  
Fontainebleau Resorts
Preferred Stock (PIK)
    6/04/07       175     $ 175,313     $ 167,283    
Total Restricted Securities                   $ 175,313     $ 167,283    

 

12  Recently Issued Accounting Pronouncement

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157 (FAS 157), "Fair Value Measurements". FAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. Management is currently evaluating the impact the adoption of FAS 157 will have on the Fund's financial statement disclosures.


25




Eaton Vance Credit Opportunities Fund

DIVIDEND REINVESTMENT PLAN

The Fund offers a dividend reinvestment plan (the Plan) pursuant to which shareholders automatically have dividends and capital gains distributions reinvested in common shares (the Shares) of the Fund unless they elect otherwise through their investment dealer. On the distribution payment date, if the net asset value per Share is equal to or less than the market price per Share plus estimated brokerage commissions then new Shares will be issued. The number of Shares shall be determined by the greater of the net asset value per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by the Plan Agent. Distributions subject to income tax (if any) are taxable whether or not shares are reinvested.

If your shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that your shares be re-registered in your name with the Fund's transfer agent, PFPC, Inc., or you will not be able to participate.

The Plan Agent's service fee for handling distributions will be paid by the Fund. Each participant will be charged their pro rata share of brokerage commissions on all open-market purchases.

Plan participants may withdraw from the Plan at any time by writing to the Plan Agent at the address noted on the following page. If you withdraw, you will receive shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Plan Agent to have the Plan Agent sell part or all of his or her Shares and remit the proceeds, the Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds.

If you wish to participate in the Plan and your shares are held in your own name, you may complete the form on the following page and deliver it to the Plan Agent.

Any inquiries regarding the Plan can be directed to the Plan Agent, PFPC, Inc., at 1-800-331-1710.


26



Eaton Vance Credit Opportunities Fund

APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN

This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan.

The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan.

  Please print exact name on account:

  Shareholder signature  Date

  Shareholder signature  Date

  Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign.

YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.

This authorization form, when signed, should be mailed to the following address:

Eaton Vance Credit Opportunities Fund
c/o PFPC, Inc.
P.O. Box 43027
Providence, RI 02940-3027
800-331-1710

Number of Employees

The Fund is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a diversified closed-end management investment company and has no employees.

Number of Shareholders

As of October 31, 2007, our records indicate that there are 8 registered shareholders and approximately 6,632 shareholders owning the Fund shares in street name, such as through brokers, banks, and financial intermediaries.

If you are a street name shareholder and wish to receive our reports directly, which contain important information about the Fund, please write or call:

Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
1-800-225-6265

New York Stock Exchange symbol

The New York Stock Exchange symbol is EOE.


27




Eaton Vance Credit Opportunities Fund

BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT

Overview of the Contract Review Process

The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund's board of trustees, including by a vote of a majority of the trustees who are not "interested persons" of the fund ("Independent Trustees"), cast in person at a meeting called for the purpose of considering such approval.

At a meeting of the Boards of Trustees (each a "Board") of the Eaton Vance group of mutual funds (the "Eaton Vance Funds") held on April 23, 2007, the Board, including a majority of the Independent Trustees, voted to approve continuation of existing advisory and sub-advisory agreements for the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of the Special Committee of the Board, which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Special Committee reviewed information furnished for a series of meetings of the Special Committee held in February, March and April 2007. Such information included, among other things, the following:

Information about Fees, Performance and Expenses

•  An independent report comparing the advisory and related fees paid by each fund with fees paid by comparable funds;

•  An independent report comparing each fund's total expense ratio and its components to comparable funds;

•  An independent report comparing the investment performance of each fund to the investment performance of comparable funds over various time periods;

•  Data regarding investment performance in comparison to relevant peer groups of funds and appropriate indices;

•  Comparative information concerning fees charged by each adviser for managing other mutual funds and institutional accounts using investment strategies and techniques similar to those used in managing the fund;

•  Profitability analyses for each adviser with respect to each fund;

Information about Portfolio Management

•  Descriptions of the investment management services provided to each fund, including the investment strategies and processes employed;

•  Information concerning the allocation of brokerage and the benefits received by each adviser as a result of brokerage allocation, including information concerning the acquisition of research through "soft dollar" benefits received in connection with the funds' brokerage, and the implementation of a soft dollar reimbursement program established with respect to the funds;

•  Data relating to portfolio turnover rates of each fund;

•  The procedures and processes used to determine the fair value of fund assets and actions taken to monitor and test the effectiveness of such procedures and processes;

Information about each Adviser

•  Reports detailing the financial results and condition of each adviser;

•  Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts;

•  Copies of the Codes of Ethics of each adviser and its affiliates, together with information relating to compliance with and the administration of such codes;

•  Copies of or descriptions of each adviser's proxy voting policies and procedures;

•  Information concerning the resources devoted to compliance efforts undertaken by each adviser and its affiliates on behalf of the funds (including descriptions of various compliance programs) and their record of compliance with investment policies and restrictions, including policies with respect to market-timing, late trading and selective portfolio disclosure, and with policies on personal securities transactions;

•  Descriptions of the business continuity and disaster recovery plans of each adviser and its affiliates;

Other Relevant Information

•  Information concerning the nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance Management and its affiliates;

•  Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds' administrator; and

•  The terms of each advisory agreement.


28



Eaton Vance Credit Opportunities Fund

BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT CONT'D

In addition to the information identified above, the Special Committee considered information provided from time to time by each adviser throughout the year at meetings of the Board and its committees. Over the course of the twelve-month period ended April 30, 2007, the Board met ten times and the Special Committee, the Audit Committee and the Governance Committee, each of which is a Committee comprised solely of Independent Trustees, met twelve, fourteen and eight times, respectively. At such meetings, the Trustees received, among other things, presentations by the portfolio managers and other investment professionals of each adviser relating to the investment performance of each fund and the investment strategies used in pursuing the fund's investment objective.

For funds that invest through one or more underlying portfolios, the Board considered similar information about the portfolio(s) when considering the approval of advisory agreements. In addition, in cases where the fund's investment adviser has engaged a sub-adviser, the Board considered similar information about the sub-adviser when considering the approval of any sub-advisory agreement.

The Special Committee was assisted throughout the contract review process by Goodwin Procter LLP, legal counsel for the Independent Trustees. The members of the Special Committee relied upon the advice of such counsel and their own business judgment in determining the material factors to be considered in evaluating each advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each advisory and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Special Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each advisory and sub-advisory agreement.

Results of the Process

Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Special Committee concluded that the continuance of the investment advisory agreement between the Eaton Vance Credit Opportunities Fund (the "Fund") and Eaton Vance Management (the "Adviser"), including its fee structure, is in the interests of shareholders and, therefore, the Special Committee recommended to the Board approval of the agreement. The Board accepted the recommendation of the Special Committee as well as the factors considered and conclusions reached by the Special Committee with respect to the agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the advisory agreement for the Fund.

Nature, Extent and Quality of Services

In considering whether to approve the investment advisory agreement of the Fund, the Board evaluated the nature, extent and quality of services provided to the Fund by the Adviser.

The Board considered the Adviser's management capabilities and investment process with respect to the types of investments held by the Fund, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Fund. In particular, the Board evaluated the abilities and experience of such investment personnel in analyzing special considerations relevant to investing in senior secured floating-rate loans. Specifically, the Board noted the experience of the Adviser's 30 bank loan investment professionals and other personnel who provide services to the Fund, including five portfolio managers and 17 analysts. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation paid to recruit and retain investment personnel, and the time and attention devoted to the Fund by senior management.

The Board also reviewed the compliance programs of the Adviser and relevant affiliates thereof. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment personnel, selective disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also evaluated the responses of the Adviser and its affiliates to requests from regulatory authorities such as the Securities and Exchange Commission and the National Association of Securities Dealers.

The Board considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large family of funds.

After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the investment advisory agreement.

Fund Performance

The Board compared the Fund's investment performance to a relevant universe of similarly managed funds identified by an independent data provider and appropriate benchmark indices. The Board reviewed comparative performance data for the period from


29



Eaton Vance Credit Opportunities Fund

BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT CONT'D

inception (May 2006) through September 30, 2006 for the Fund. On the basis of the foregoing and other relevant information, the Board concluded that the performance of the Fund was satisfactory.

Management Fees and Expenses

The Board reviewed contractual investment advisory fee rates, including any administrative fee rates, payable by the Fund (referred to as "management fees"). As part of its review, the Board considered the management fees and the Fund's total expense ratio for the period from inception through September 30, 2006, as compared to a group of similarly managed funds selected by an independent data provider.

After reviewing the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded that the management fees charged for advisory and related services and the Fund's total expense ratio are reasonable.

Profitability

The Board reviewed the level of profits realized by the Adviser and relevant affiliates thereof in providing investment advisory and administrative services to the Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser and its affiliates in connection with its relationship with the Fund.

The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are reasonable.

Economies of Scale

In reviewing management fees and profitability, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and the Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from the economies of scale with respect to the management of any specific fund or group of funds. The Board also considered the fact that the Fund is not continuously offered and concluded that, in light of the level of the adviser's profits with respect to the Fund, the implementation of breakpoints in the advisory fee schedule is not appropriate. Based upon the foregoing, the Board concluded that the benefits from economies of scale are currently being shared equitably by the Adviser and its affiliates and the Fund.


30




Eaton Vance Credit Opportunities Fund

INVESTMENT MANAGEMENT

Eaton Vance Credit Opportunities Fund

Officers
Payson F. Swaffield
President
Thomas E. Faust Jr.
Vice President and Trustee
Scott H. Page
Vice President
Andrew Sveen
Vice President
Michael W. Weilheimer
Vice President
Barbara E. Campbell
Treasurer
Maureen A. Gemma
Secretary
Paul M. O'Neil
Chief Compliance Officer
  Trustees
Ralph F. Verni
Chairman
Benjamin C. Esty
Allen R. Freedman
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Heidi L. Steiger
Lynn A. Stout
 

 


31



This Page Intentionally Left Blank




Investment Adviser and Administrator of Eaton Vance Credit Opportunities Fund
Eaton Vance Management

The Eaton Vance Building
255 State Street
Boston, MA 02109

Custodian
State Street Bank and Trust Company

200 Clarendon Street
Boston, MA 02116

Transfer Agent
PFPC Inc.

Attn: Eaton Vance Funds
P.O. Box 43027
Providence, RI 02940-3027
(800) 262-1122

Eaton Vance Credit Opportunities Fund
The Eaton Vance Building
255 State Street
Boston, MA 02109

This report must be preceded or accompanied by a current prospectus. Before investing, investors should consider carefully the Fund's investment objective(s), risks, and charges and expenses. The Fund's current prospectus contains this and other information about the Fund and is available through your financial advisor. Please read the prospectus carefully before you invest or send money. For further information please call 800-225-6265.



2613-12/07  CE-COFSRC




Item 2. Code of Ethics

The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer.  The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122.

Item 3. Audit Committee Financial Expert

The registrant’s Board has designated William H. Park and Norton H. Reamer, each an independent trustee, as its audit committee financial experts.  Mr. Park is a certified public accountant who is the Vice Chairman of Commercial Industrial Finance Corp (specialty finance company). Previously, he served as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm) and as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (“UAM”) (a holding company owning institutional investment management firms). Mr. Reamer is the President, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company).  Formerly, Mr. Reamer was Chairman and Chief Operating Officer of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds).

Item 4. Principal Accountant Fees and Services

Not required in this filing

Item 5.  Audit Committee of Listed registrants

Not required in this filing.

Item 6. Schedule of Investments

Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not required in this filing.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not required in this filing.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

No such purchases this period.

Item 10. Submission of Matters to a Vote of Security Holders.

No Material Changes.




Item 11. 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 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 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

(a)(1)

Registrant’s Code of Ethics – Not applicable (please see Item 2).

(a)(2)(i)

Treasurer’s Section 302 certification.

(a)(2)(ii)

President’s Section 302 certification.

(b)

Combined Section 906 certification.

 




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 Credit Opportunities Fund

 

 

By:

/s/Payson F. Swaffield

 

 

Payson F. Swaffield

 

President

 

 

 

 

Date:

December 11, 2007

 

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/Barbara E. Campbell

 

 

Barbara E. Campbell

 

Treasurer

 

 

 

 

Date:

December 11, 2007

 

By:

/s/Payson F. Swaffield

 

 

Payson F. Swaffield

 

President

 

 

 

 

Date:

December 11, 2007

 



EX-99.CERT 2 a07-29574_1ex99dcert.htm EX-99.CERT

Exhibit 99.CERT

Eaton Vance Credit Opportunities Fund

FORM N-CSR

Exhibit 12(a)(2)(i)

CERTIFICATION

I, Barbara E. Campbell, certify that:

1.             I have reviewed this report on Form N-CSR of Eaton Vance Credit Opportunities Fund;

2.             Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.             Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.             The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)          Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)         Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)          Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d)         Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.             The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):




(a)          All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b)         Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: December 11, 2007

 

 

 

 

 

 

/s/Barbara E. Campbell

 

 

Barbara E. Campbell

 

 

Treasurer

 

 




Eaton Vance Credit Opportunities Fund

FORM N-CSR

Exhibit 12(a)(2)(ii)

CERTIFICATION

I, Payson F. Swaffield certify that:

1.             I have reviewed this report on Form N-CSR of Eaton Vance Credit Opportunities Fund;

2.             Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.             Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.             The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)          Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)         Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)          Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d)         Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.             The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):




(a)          All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b)         Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 11, 2007

 

 

 

 

 

 

/s/Payson F. Swaffield

 

 

Payson F. Swaffield

 

 

President

 

 



EX-99.906CERT 3 a07-29574_1ex99d906cert.htm EX-99.906CERT

Exhibit 99.906CERT

Form N-CSR Item 12(b) Exhibit

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certify in their capacity as Treasurer and President, respectively, of Eaton Vance Credit Opportunities Fund (the Fund”), that:

(a)                      the Semi-Annual Report of the Fund on Form N-CSR for the period ended October 31, 2007 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended

(b)                     the information contained in the Report fairly presents, in al l material respects, the financial condition and the results of operations of the Fund for such period.

A signed original of this written statement required by section 906 has been provided to the Fund  and will be retained by the Fund  and furnished to the Securities and Exchange Commission or its staff upon request.

Eaton Vance Credit Opportunities Fund

 

Date: December 11, 2007

 

 

/s/Barbara E. Campbell

 

Barbara E. Campbell

Treasurer

 

Date: December 11, 2007

 

 

/s/Payson F. Swaffield

 

Payson F. Swaffield

President

 



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-----END PRIVACY-ENHANCED MESSAGE-----