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: 811-22049

International Income Portfolio

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrant’s Telephone Number)

October 31

Date of Fiscal Year End

October 31, 2017

Date of Reporting Period

Item 1. Reports to Stockholders

International Income Portfolio

October 31, 2017

Portfolio of Investments

Foreign Government Bonds — 12.5%
Security		Principal Amount (000’s omitted)		Value
Argentina — 0.7%
Argentina POM Politica Monetaria, 27.146%, (ARPP7DRR), 6/21/20(1)	ARS		11,100	$	676,221
Total Argentina				$	676,221
Bosnia and Herzegovina — 1.5%
Republic of Srpska, 1.50%, 6/30/23	BAM		1,092	$	595,016
Republic of Srpska, 1.50%, 10/30/23	BAM		591		325,852
Republic of Srpska, 1.50%, 5/31/25	BAM		368		199,456
Republic of Srpska, 1.50%, 12/24/25	BAM		481		256,869
Republic of Srpska, 1.50%, 9/25/26	BAM		422		220,885
Total Bosnia and Herzegovina				$	1,598,078
Dominican Republic — 4.6%
Dominican Republic, 14.00%, 6/8/18(2)	DOP		218,600	$	4,703,029
Total Dominican Republic				$	4,703,029
Georgia — 1.3%
Georgia Treasury Bond, 6.75%, 10/6/18	GEL		190	$	72,477
Georgia Treasury Bond, 8.00%, 6/9/18	GEL		159		61,209
Georgia Treasury Bond, 13.375%, 3/10/18	GEL		1,570		614,405
Georgia Treasury Bond, 13.75%, 1/14/18	GEL		1,400		543,237
Total Georgia				$	1,291,328
Iceland — 2.9%
Republic of Iceland, 6.25%, 2/5/20	ISK		302,979	$	2,974,634
Total Iceland				$	2,974,634
Serbia — 1.5%
Serbia Treasury Bond, 10.00%, 4/27/18	RSD		156,300	$	1,577,734
Total Serbia				$	1,577,734
Total Foreign Government Bonds (identified cost $12,675,541)				$	12,821,024

Foreign Corporate Bonds — 1.3%
Security		Principal Amount (000’s omitted)		Value
Argentina — 1.3%
Banco Hipotecario SA, 23.708%, (Badlar + 2.50%), 1/12/20(1)(2)	ARS		24,372	$	1,384,846
Total Argentina				$	1,384,846
Total Foreign Corporate Bonds (identified cost $1,606,984)				$	1,384,846
Collateralized Mortgage Obligations — 0.5%
Security		Principal Amount		Value
Federal Home Loan Mortgage Corp.:
Series 2127, Class PG, 6.25%, 2/15/29		$	115,114	$	126,410
Federal National Mortgage Association:
Series 2009-62, Class WA, 5.57%, 8/25/39			378,674		414,675
Total Collateralized Mortgage Obligations (identified cost $508,409)				$	541,085
Mortgage Pass-Throughs — 2.6%
Security		Principal Amount		Value
Federal National Mortgage Association:
1.91%, (COF + 1.25%), with maturity at 2035(3)		$	625,435	$	631,816
3.83%, (COF + 1.78%), with maturity at 2035(3)			467,920		499,862
7.00% with maturity at 2033			300,203		344,926
7.50% with maturity at 2035			192,044		225,252
8.50% with maturity at 2032			161,872		194,904
				$	1,896,760
Government National Mortgage Association:
7.00% with maturity at 2035		$	523,231	$	606,932
9.00% with various maturities to 2024			150,659		162,393
				$	769,325
Total Mortgage Pass-Throughs (identified cost $2,523,886)				$	2,666,085

19 See Notes to Financial Statements.

International Income Portfolio

October 31, 2017

Portfolio of Investments — continued

Short-Term Investments — 76.5%
Foreign Government Securities — 34.4%
Security		Principal Amount (000’s omitted)		Value
Armenia — 0.8%
Armenian Treasury Bill, 0.00%, 11/20/17	AMD		400,000	$	826,413
Total Armenia				$	826,413
Czech Republic — 4.8%
Czech Republic Ministry of Finance Bill, 0.00%, 11/3/17	CZK		109,000	$	4,948,012
Total Czech Republic				$	4,948,012
Egypt — 4.7%
Egypt Treasury Bill, 0.00%, 11/7/17	EGP		28,675	$	1,624,125
Egypt Treasury Bill, 0.00%, 1/2/18	EGP		4,950		272,999
Egypt Treasury Bill, 0.00%, 4/3/18	EGP		10,225		541,104
Egypt Treasury Bill, 0.00%, 5/1/18	EGP		47,300		2,458,766
Total Egypt				$	4,896,994
Georgia — 2.4%
Georgia Treasury Bill, 0.00%, 2/1/18	GEL		1,600	$	602,237
Georgia Treasury Bill, 0.00%, 2/8/18	GEL		4,860		1,826,876
Total Georgia				$	2,429,113
Kazakhstan — 4.4%
National Bank of Kazakhstan Note, 0.00%, 11/1/17	KZT		813,121	$	2,426,907
National Bank of Kazakhstan Note, 0.00%, 11/24/17	KZT		275,610		817,828
National Bank of Kazakhstan Note, 0.00%, 1/5/18	KZT		103,000		302,475
National Bank of Kazakhstan Note, 0.00%, 1/19/18	KZT		345,570		1,011,375
Total Kazakhstan				$	4,558,585
Nigeria — 3.0%
Nigeria Treasury Bill, 0.00%, 3/15/18	NGN		42,300	$	109,833
Nigeria Treasury Bill, 0.00%, 4/5/18	NGN		125,560		322,380
Nigeria Treasury Bill, 0.00%, 4/12/18	NGN		270,925		693,255
Nigeria Treasury Bill, 0.00%, 4/19/18	NGN		211,520		539,419
Nigeria Treasury Bill, 0.00%, 5/3/18	NGN		255,860		647,983
Nigeria Treasury Bill, 0.00%, 7/5/18	NGN		103,290		253,666
Nigeria Treasury Bill, 0.00%, 7/12/18	NGN		37,560		91,940
Nigeria Treasury Bill, 0.00%, 7/19/18	NGN		50,950		124,310
Nigeria Treasury Bill, 0.00%, 8/16/18	NGN		12,190		29,358
Nigeria Treasury Bill, 0.00%, 9/13/18	NGN		64,020		152,364
Nigeria Treasury Bill, 0.00%, 9/20/18	NGN		60,950		144,597
Total Nigeria				$	3,109,105

Security		Principal Amount (000’s omitted)		Value
Sri Lanka — 4.9%
Sri Lanka Treasury Bill, 0.00%, 4/6/18	LKR		505,000	$	3,166,819
Sri Lanka Treasury Bill, 0.00%, 4/13/18	LKR		295,000		1,847,513
Total Sri Lanka				$	5,014,332
Sweden — 4.6%
Sweden Treasury Bill, 0.00%, 11/15/17	SEK		39,820	$	4,758,099
Total Sweden				$	4,758,099
Uruguay — 4.8%
Banco Central Del Uruguay, 0.00%, 4/27/18	UYU		18,597	$	612,023
Uruguay Treasury Bill, 0.00%, 12/14/17	UYU		5,674		192,475
Uruguay Treasury Bill, 0.00%, 12/22/17	UYU		23,829		806,536
Uruguay Treasury Bill, 0.00%, 2/8/18	UYU		24,569		822,405
Uruguay Treasury Bill, 0.00%, 4/5/18	UYU		52,482		1,737,494
Uruguay Treasury Bill, 0.00%, 5/4/18	UYU		2,269		73,864
Uruguay Treasury Bill, 0.00%, 6/1/18	UYU		10,293		335,616
Uruguay Treasury Bill, 0.00%, 6/29/18	UYU		1,490		48,274
Uruguay Treasury Bill, 0.00%, 9/21/18	UYU		761		24,175
Uruguay Treasury Bill, 0.00%, 10/19/18	UYU		7,972		251,454
Total Uruguay				$	4,904,316
Total Foreign Government Securities (identified cost $35,941,861)				$	35,444,969
U.S. Treasury Obligations — 37.9%
Security		Principal Amount (000’s omitted)		Value
U.S. Treasury Bill, 0.00%, 11/9/17(4)		$	13,000	$	12,997,238
U.S. Treasury Bill, 0.00%, 12/21/17(4)			11,000		10,985,257
U.S. Treasury Bill, 0.00%, 1/11/18(4)			15,000		14,968,673
Total U.S. Treasury Obligations (identified cost $38,949,917)				$	38,951,168

20 See Notes to Financial Statements.

International Income Portfolio

October 31, 2017

Portfolio of Investments — continued

Other — 4.2%
Description	Units		Value
Eaton Vance Cash Reserves Fund, LLC, 1.35%(5)		4,279,715	$	4,280,143
Total Other (identified cost $4,280,170)			$	4,280,143
Total Short-Term Investments (identified cost $79,171,948)			$	78,676,280
Total Purchased Options — 0.0%(6) (identified cost $69,540)			$	43,912
Total Investments — 93.4% (identified cost $96,556,308)			$	96,133,232
Total Written Options — (0.0)%(6) (premiums received $96,090)			$	(43,912	)
Other Assets, Less Liabilities — 6.6%			$	6,822,317
Net Assets — 100.0%			$	102,911,637

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

⁽¹⁾  Variable rate security. The stated interest rate represents the rate in effect at October 31, 2017.

⁽²⁾  Security exempt from registration under Regulation S of the Securities Act of 1933, which exempts from registration securities offered and sold outside the United States. Security may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. At October 31, 2017, the aggregate value of these securities is $6,087,875 or 5.9% of the Portfolio’s net assets.

⁽³⁾  Adjustable rate mortgage security whose interest rate generally adjusts monthly based on a weighted average of interest rates on the underlying mortgages. The coupon rate may not reflect the applicable index value as interest rates on the underlying mortgages may adjust on various dates and at various intervals and may be subject to lifetime ceilings and lifetime floors and lookback periods. Rate shown is the coupon rate at October 31, 2017.

⁽⁴⁾  Security (or a portion thereof) has been pledged to cover collateral requirements on open derivative contracts.

⁽⁵⁾  Affiliated investment company, available to Eaton Vance portfolios and funds, which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of October 31, 2017.

⁽⁶⁾  Amount is less than 0.05% or (0.05)%, as applicable.

Currency Options Purchased — 0.0%(6)
Description	Counterparty		Notional Amount		Exercise Price		Expiration Date		Value
Call CAD/ Put USD		Citibank, N.A.		USD 2,000,000		CAD 1.31		12/8/17	$	43,912
Total									$	43,912
Currency Options Written — (0.0)%(6)
Description	Counterparty		Notional Amount		Exercise Price		Expiration Date		Value
Call CAD/ Put USD		Citibank, N.A.		USD 2,000,000		CAD 1.31		12/8/17	$	(43,912	)
Total									$	(43,912	)

Forward Foreign Currency Exchange Contracts
Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation		Unrealized (Depreciation)
PHP	85,855,000	USD	1,672,120	Citibank, N.A.		11/2/17	$	—	$	(9,069	)
PHP	106,000,000	USD	2,051,322	Nomura International PLC		11/2/17		1,947		—
PHP	24,855,000	USD	480,996	UBS AG		11/2/17		456		—
PHP	45,000,000	USD	883,913	UBS AG		11/2/17		—		(12,242	)
USD	1,661,474	PHP	85,855,000	Citibank, N.A.		11/2/17		—		(1,577	)
USD	2,046,332	PHP	106,000,000	Nomura International PLC		11/2/17		—		(6,937	)
USD	870,844	PHP	45,000,000	UBS AG		11/2/17		—		(827	)
USD	478,902	PHP	24,855,000	UBS AG		11/2/17		—		(2,551	)
AUD	4,500,000	USD	3,555,833	Goldman Sachs International		11/9/17		—		(111,983	)
USD	481,952	AUD	608,000	Australia and New Zealand Banking Group Limited		11/9/17		16,650		—
THB	85,400,000	USD	2,560,336	Deutsche Bank AG		11/10/17		10,374		—
UGX	8,471,500,000	USD	2,284,655	Citibank, N.A.		11/13/17		25,760		—
ARS	10,660,000	USD	604,994	BNP Paribas		11/15/17		—		(5,971	)

21 See Notes to Financial Statements.

International Income Portfolio

October 31, 2017

Portfolio of Investments — continued

Forward Foreign Currency Exchange Contracts (continued)
Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation		Unrealized (Depreciation)
ARS	7,487,500	USD	398,589	Citibank, N.A.		11/16/17	$	21,909	$	—
IDR	67,819,537,000	USD	5,043,095	Standard Chartered Bank		11/16/17		—		(48,778	)
USD	410,380	IDR	5,543,000,000	Standard Chartered Bank		11/16/17		2,186		—
USD	4,562,384	IDR	62,276,537,000	Standard Chartered Bank		11/16/17		—		(23,739	)
COP	6,810,300,000	USD	2,301,244	Standard Chartered Bank		11/17/17		—		(65,679	)
COP	7,889,700,000	USD	2,665,980	The Bank of Nova Scotia		11/17/17		—		(76,089	)
AUD	438,000	USD	343,429	JPMorgan Chase Bank, N.A.		11/22/17		—		(8,273	)
CHF	2,150,000	USD	2,241,330	State Street Bank and Trust Company		11/22/17		—		(83,547	)
ILS	11,040,000	USD	3,151,664	Bank of America, N.A.		11/22/17		—		(14,521	)
JPY	25,520,000	USD	227,190	State Street Bank and Trust Company		11/22/17		—		(2,566	)
MXN	5,700,000	USD	300,659	Societe Generale		11/22/17		—		(4,347	)
PLN	820,000	USD	228,240	State Street Bank and Trust Company		11/22/17		—		(2,971	)
TRY	1,130,000	USD	304,499	Goldman Sachs International		11/22/17		—		(8,458	)
USD	229,171	CAD	286,000	JPMorgan Chase Bank, N.A.		11/22/17		7,444		—
USD	2,230,773	EUR	1,900,000	Barclays Bank PLC		11/22/17		15,270		—
USD	314,025	ILS	1,100,000	Bank of America, N.A.		11/22/17		1,447		—
ZAR	3,100,000	USD	227,330	Goldman Sachs International		11/22/17		—		(8,838	)
BRL	1,000,000	USD	314,189	State Street Bank and Trust Company		11/24/17		—		(9,384	)
COP	950,000,000	USD	323,102	State Street Bank and Trust Company		11/24/17		—		(11,450	)
INR	277,200,000	USD	4,248,921	Citibank, N.A.		11/24/17		24,236		—
INR	14,000,000	USD	216,631	Citibank, N.A.		11/24/17		—		(815	)
INR	5,300,000	USD	81,990	Goldman Sachs International		11/24/17		—		(288	)
INR	8,200,000	USD	126,813	Goldman Sachs International		11/24/17		—		(407	)
INR	3,400,000	USD	52,546	Standard Chartered Bank		11/24/17		—		(134	)
INR	9,800,000	USD	151,501	UBS AG		11/24/17		—		(430	)
RUB	19,000,000	USD	329,147	State Street Bank and Trust Company		11/24/17		—		(4,829	)
USD	4,991,312	EUR	4,220,108	Standard Chartered Bank		11/30/17		68,397		—
USD	904,031	EUR	754,000	Standard Chartered Bank		11/30/17		24,462		—
USD	1,551,761	EUR	1,312,000	Standard Chartered Bank		11/30/17		21,264		—
TRY	10,900,000	USD	3,072,032	Standard Chartered Bank		12/5/17		—		(227,257	)
USD	2,988,757	TRY	10,900,000	Standard Chartered Bank		12/5/17		143,982		—
PEN	6,000,000	USD	1,800,720	State Street Bank and Trust Company		12/6/17		42,390		—
PEN	10,060,000	USD	3,071,756	State Street Bank and Trust Company		12/6/17		18,526		—
CAD	1,290,000	USD	1,023,209	Citibank, N.A.		12/11/17		—		(22,910	)
ARS	29,079,800	USD	1,613,304	BNP Paribas		12/13/17		—		(6,128	)
SGD	3,485,000	USD	2,566,128	Bank of America, N.A.		12/15/17		—		(8,554	)
USD	4,959,516	EUR	4,176,452	Deutsche Bank AG		12/15/17		82,862		—
USD	1,946,195	EUR	1,618,000	JPMorgan Chase Bank, N.A.		12/21/17		56,157		—
USD	3,562,582	EUR	2,962,104	Standard Chartered Bank		12/21/17		102,452		—
PLN	12,100,000	EUR	2,845,111	Standard Chartered Bank		12/27/17		509		—
USD	1,634,675	EUR	1,372,212	Standard Chartered Bank		1/11/18		29,593		—
RSD	238,648,825	EUR	1,987,912	Deutsche Bank AG		1/18/18		—		(63	)
EUR	460,000	USD	543,679	Standard Chartered Bank		1/19/18		—		(5,363	)
USD	3,057,409	EUR	2,586,728	Standard Chartered Bank		1/19/18		30,288		—
NOK	16,363,000	EUR	1,738,309	Deutsche Bank AG		1/22/18		—		(27,024	)
PHP	106,000,000	USD	2,026,091	Nomura International PLC		2/2/18		6,738		—
PHP	24,855,000	USD	474,219	UBS AG		2/2/18		2,441		—

22 See Notes to Financial Statements.

International Income Portfolio

October 31, 2017

Portfolio of Investments — continued

Forward Foreign Currency Exchange Contracts (continued)
Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation		Unrealized (Depreciation)
RUB	202,152,669	USD	3,295,609	Bank of America, N.A.		2/9/18	$	116,012	$	—
USD	326,052	RUB	20,000,000	Bank of America, N.A.		2/9/18		—		(11,478	)
USD	1,344,007	RUB	79,955,000	HSBC Bank USA, N.A.		2/9/18		—		(5,350	)
RUB	168,000,000	USD	2,804,042	BNP Paribas		3/29/18		10,961		—
RSD	406,323,188	EUR	3,149,792	Deutsche Bank AG		4/3/18		247,944		—
							$	1,132,657	$	(840,827	)

Futures Contracts
Description	Number of Contracts		Position		Expiration Month/Year	Notional Amount			Value/Net Unrealized Appreciation
Interest Rate Futures
U.S. 5-Year Treasury Note		11		Short	Dec-17	$	(1,289,063	)	$	13,522
U.S. 10-Year Treasury Note		4		Short	Dec-17		(499,750	)		7,566
									$	21,088

Abbreviations:

ARPP7DRR	–	Argentina Central Bank 7-day Repo Reference Rate
COF	–	Cost of Funds 11th District

Currency Abbreviations:

AMD	–	Armenian Dram
ARS	–	Argentine Peso
AUD	–	Australian Dollar
BAM	–	Bosnia-Herzegovina Convertible Mark
BRL	–	Brazilian Real
CAD	–	Canadian Dollar
CHF	–	Swiss Franc
COP	–	Colombian Peso
CZK	–	Czech Koruna
DOP	–	Dominican Peso
EGP	–	Egyptian Pound
EUR	–	Euro
GEL	–	Georgian Lari
IDR	–	Indonesian Rupiah
ILS	–	Israeli Shekel
INR	–	Indian Rupee
ISK	–	Icelandic Krona
JPY	–	Japanese Yen

KZT	–	Kazakhstani Tenge
LKR	–	Sri Lankan Rupee
MXN	–	Mexican Peso
NGN	–	Nigerian Naira
NOK	–	Norwegian Krone
PEN	–	Peruvian Sol
PHP	–	Philippine Peso
PLN	–	Polish Zloty
RSD	–	Serbian Dinar
RUB	–	Russian Ruble
SEK	–	Swedish Krona
SGD	–	Singapore Dollar
THB	–	Thai Baht
TRY	–	New Turkish Lira
UGX	–	Ugandan Shilling
USD	–	United States Dollar
UYU	–	Uruguayan Peso
ZAR	–	South African Rand

23 See Notes to Financial Statements.

International Income Portfolio

October 31, 2017

Statement of Assets and Liabilities

Assets	October 31, 2017
Unaffiliated investments, at value (identified cost, $92,276,138)	$	91,853,089
Affiliated investment, at value (identified cost, $4,280,170)		4,280,143
Cash		4,432,892
Deposits for derivatives collateral — forward foreign currency exchange contracts		489,501
Foreign currency, at value (identified cost, $147,347)		165,399
Interest receivable		563,037
Dividends receivable from affiliated investment		4,744
Receivable for investments sold		2,446,596
Receivable for variation margin on open financial futures contracts		1,083
Receivable for open forward foreign currency exchange contracts		1,132,657
Tax reclaims receivable		2,486
Receivable from affiliate		17,777
Total assets	$	105,389,404
Liabilities
Cash collateral due to brokers	$	489,501
Written options outstanding, at value (premiums received, $96,090)		43,912
Payable for investments purchased		883,716
Payable for open forward foreign currency exchange contracts		840,827
Payable to affiliates:
Investment adviser fee		54,578
Trustees’ fees		559
Accrued expenses		164,674
Total liabilities	$	2,477,767
Net Assets applicable to investors’ interest in Portfolio	$	102,911,637
Sources of Net Assets
Investors’ capital	$	102,955,195
Net unrealized depreciation		(43,558	)
Total	$	102,911,637

24 See Notes to Financial Statements.

International Income Portfolio

October 31, 2017

Statement of Operations

Investment Income	Year Ended October 31, 2017
Interest (net of foreign taxes, $61,230)	$	4,293,034
Dividends from affiliated investment		67,774
Total investment income	$	4,360,808
Expenses
Investment adviser fee	$	714,395
Trustees’ fees and expenses		7,125
Custodian fee		132,536
Legal and accounting services		183,975
Miscellaneous		24,405
Total expenses	$	1,062,436
Deduct —
Allocation of expenses to affiliate	$	150,675
Total expense reductions	$	150,675
Net expenses	$	911,761
Net investment income	$	3,449,047
Realized and Unrealized Gain (Loss)
Net realized gain (loss) —
Investment transactions (net of foreign capital gains taxes of $32,414)	$	62,316
Investment transactions — affiliated investment		(105	)
Written options		128,500
Financial futures contracts		26,424
Foreign currency transactions		282,395
Forward foreign currency exchange contracts		2,185,776
Net realized gain	$	2,685,306
Change in unrealized appreciation (depreciation) —
Investments	$	3,006,743
Investments — affiliated investment		(314	)
Written options		(9,195	)
Financial futures contracts		6,940
Foreign currency		85,288
Forward foreign currency exchange contracts		420,015
Net change in unrealized appreciation (depreciation)	$	3,509,477
Net realized and unrealized gain	$	6,194,783
Net increase in net assets from operations	$	9,643,830

25 See Notes to Financial Statements.

International Income Portfolio

October 31, 2017

Statements of Changes in Net Assets

	Year Ended October 31,
Increase (Decrease) in Net Assets	2017			2016
From operations —
Net investment income	$	3,449,047		$	5,517,184
Net realized gain (loss)		2,685,306			(15,408,564	)
Net change in unrealized appreciation (depreciation)		3,509,477			15,080,767
Net increase in net assets from operations	$	9,643,830		$	5,189,387
Capital transactions —
Contributions	$	10,334,842		$	17,940,662
Withdrawals		(55,782,953	)		(121,664,915	)
Net decrease in net assets from capital transactions	$	(45,448,111	)	$	(103,724,253	)
Net decrease in net assets	$	(35,804,281	)	$	(98,534,866	)
Net Assets
At beginning of year	$	138,715,918		$	237,250,784
At end of year	$	102,911,637		$	138,715,918

26 See Notes to Financial Statements.

International Income Portfolio

October 31, 2017

Financial Highlights

	Year Ended October 31,
Ratios/Supplemental Data	2017			2016			2015			2014			2013
Ratios (as a percentage of average daily net assets):
Expenses(1)		0.80	%(2)		0.81	%(2)(3)		0.81	%(2)(3)		0.83	%		0.83	%
Net investment income		3.02	%		3.17	%		3.56	%		3.49	%		3.20	%
Portfolio Turnover		29	%		38	%		23	%		42	%		21	%
Total Return		9.09	%(2)		3.25	%(2)		(5.84	)%(2)		0.90	%		(0.35	)%
Net assets, end of year (000’s omitted)	$	102,912		$	138,716		$	237,251		$	607,664		$	1,002,404

⁽¹⁾  Excludes the effect of custody fee credits, if any, of less than 0.005%. Effective September 1, 2015, custody fee credits, which were earned on cash deposit balances, were discontinued by the custodian.

⁽²⁾  The investment adviser reimbursed certain operating expenses (equal to 0.13%, 0.08% and 0.04% of average daily net assets for the years ended October 31, 2017, 2016 and 2015, respectively). Absent this reimbursement, total return would be lower.

⁽³⁾  Includes interest expense of 0.01% for each of the years ended October 31, 2016 and 2015.

27 See Notes to Financial Statements.

International Income Portfolio

October 31, 2017

Notes to Financial Statements

1  Significant Accounting Policies

International Income Portfolio (the Portfolio) is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a diversified, open-end management investment company. The Portfolio’s investment objective is total return. The Declaration of Trust permits the Trustees to issue interests in the Portfolio. At October 31, 2017, Eaton Vance Diversified Currency Income Fund held a 99.9% interest in the Portfolio.

The following is a summary of significant accounting policies of the Portfolio. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Portfolio is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946.

A  Investment Valuation — The following methodologies are used to determine the market value or fair value of investments.

Debt Obligations. Debt obligations are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, interest rates, anticipated prepayments, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term obligations purchased with a remaining maturity of sixty days or less for which a valuation from a third party pricing service is not readily available may be valued at amortized cost, which approximates fair value.

Derivatives. U.S. exchange-traded options are valued at the mean between the bid and asked prices at valuation time as reported by the Options Price Reporting Authority. Non U.S. exchange-traded options and over-the-counter options (including options on securities, indices and foreign currencies) are valued by a third party pricing service using techniques that consider factors including the value of the underlying instrument, the volatility of the underlying instrument and the period of time until option expiration. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded. Forward foreign currency exchange contracts are generally valued at the mean of the average bid and average asked prices that are reported by currency dealers to a third party pricing service at the valuation time. Such third party pricing service valuations are supplied for specific settlement periods and the Portfolio’s forward foreign currency exchange contracts are valued at an interpolated rate between the closest preceding and subsequent settlement period reported by the third party pricing service.

Foreign Securities and Currencies. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by a third party pricing service. The pricing service uses a proprietary model to determine the exchange rate. Inputs to the model include reported trades and implied bid/ask spreads.

Affiliated Fund. The Portfolio may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Eaton Vance Management (EVM). While Cash Reserves Fund is not a registered money market mutual fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the valuation day. Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service.

Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Portfolio in a manner that fairly reflects the security’s value, or the amount that the Portfolio might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s or entity’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.

B  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.

C  Income — Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount. Withholding taxes on foreign interest have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities.

D  Federal and Other Taxes — The Portfolio has elected to be treated as a partnership for federal tax purposes. No provision is made by the Portfolio for federal or state taxes on any taxable income of the Portfolio because each investor in the Portfolio is ultimately responsible for the payment of any taxes on its share of taxable income. Since at least one of the Portfolio’s investors is a regulated investment company that invests all or substantially all of its assets in the Portfolio, the Portfolio normally must satisfy the applicable source of income and diversification requirements (under the Internal Revenue Code) in order for its investors to satisfy them. The Portfolio will allocate, at least annually among its investors, each investor’s distributive share of the Portfolio’s net investment income, net realized capital gains and losses and any other items of income, gain, loss, deduction or credit.

28

International Income Portfolio

October 31, 2017

Notes to Financial Statements — continued

In addition to the requirements of the Internal Revenue Code, the Portfolio may also be subject to local taxes on the recognition of capital gains in certain countries. In determining the daily net asset value, the Portfolio estimates the accrual for such taxes, if any, based on the unrealized appreciation on certain portfolio securities and the related tax rates. Taxes attributable to unrealized appreciation are included in the change in unrealized appreciation (depreciation) on investments. Capital gains taxes on securities sold are included in net realized gain (loss) on investments.

As of October 31, 2017, the Portfolio had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Portfolio files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

E  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.

F  Use of Estimates — The preparation of the financial statements in conformity with U.S. GAAP 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.

G  Indemnifications — Under the Portfolio’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 Portfolio. Under Massachusetts law, if certain conditions prevail, interestholders in the Portfolio could be deemed to have personal liability for the obligations of the Portfolio. However, the Portfolio’s Declaration of Trust contains an express disclaimer of liability on the part of Portfolio interestholders and the By-laws provide that the Portfolio shall assume the defense on behalf of any Portfolio interestholder. Moreover, the By-laws also provide for indemnification out of Portfolio property of any interestholder held personally liable solely by reason of being or having been an interestholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Portfolio enters into agreements with service providers that may contain indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred.

H  Financial Futures Contracts — Upon entering into a financial futures contract, the Portfolio is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the contract amount (initial margin). Subsequent payments, known as variation margin, are made or received by the Portfolio 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 Portfolio. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Portfolio may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.

I  Forward Foreign Currency Exchange Contracts — The Portfolio 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 forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded as unrealized until such time as the contracts have been closed. 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 currency relative to the U.S. dollar.

J  Written Options — Upon the writing of a call or a put option, the premium received by the Portfolio is included in the Statement of Assets and Liabilities as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written, in accordance with the Portfolio’s policies on investment valuations discussed above. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the realized gain or loss. When an index option is exercised, the Portfolio is required to deliver an amount of cash determined by the excess of the strike price of the option over the value of the index (in the case of a put) or the excess of the value of the index over the strike price of the option (in the case of a call) at contract termination. If a put option on a security is exercised, the premium reduces the cost basis of the securities purchased by the Portfolio. The Portfolio, as a writer of an option, may have no control over whether the underlying securities or other assets may be sold (call) or purchased (put) and, as a result, bears the market risk of an unfavorable change in the price of the securities or other assets underlying the written option. The Portfolio may also bear the risk of not being able to enter into a closing transaction if a liquid secondary market does not exist.

K  Purchased Options — Upon the purchase of a call or put option, the premium paid by the Portfolio is included in the Statement of Assets and Liabilities as an investment. The amount of the investment is subsequently marked-to-market to reflect the current market value of the option purchased, in accordance with the Portfolio’s policies on investment valuations discussed above. As the purchaser of an index option, the Portfolio has the right to receive a cash payment equal to any depreciation in the value of the index below the strike price of the option (in the case of a put) or equal to any appreciation in the value of the index over the strike price of the option (in the case of a call) as of the valuation date of the option. If an option which the Portfolio had purchased expires on the stipulated expiration date, the Portfolio will realize a loss in the amount of the cost of the option. If the Portfolio enters into a

29

International Income Portfolio

October 31, 2017

Notes to Financial Statements — continued

closing sale transaction, the Portfolio will realize a gain or loss, depending on whether the sales proceeds from the closing sale transaction are greater or less than the cost of the option. If the Portfolio exercises a put option on a security, it will realize a gain or loss from the sale of the underlying security, and the proceeds from such sale will be decreased by the premium originally paid. If the Portfolio exercises a call option on a security, the cost of the security which the Portfolio purchases upon exercise will be increased by the premium originally paid. The risk associated with purchasing options is limited to the premium originally paid. Purchased options traded over-the-counter involve risk that the issuer or counterparty will fail to perform its contractual obligations.

2  Investment Adviser Fee and Other Transactions with Affiliates

The investment adviser fee is earned by Boston Management and Research (BMR), a subsidiary of EVM, as compensation for investment advisory services rendered to the Portfolio. Pursuant to the investment advisory agreement between the Portfolio and BMR, the fee is computed at an annual rate of 0.625% of the Portfolio’s average daily net assets up to $1 billion, 0.600% from $1 billion but less than $2 billion, and at reduced rates on daily net assets of $2 billion or more, and is payable monthly. For the year ended October 31, 2017, the Portfolio’s investment adviser fee amounted to $714,395 or 0.625% of the Portfolio’s average daily net assets. Pursuant to a voluntary expense reimbursement, BMR was allocated $150,675 of the Portfolio’s operating expenses for the year ended October 31, 2017. The Portfolio invests its cash in Cash Reserves Fund. EVM does not currently receive a fee for advisory services provided to Cash Reserves Fund.

Trustees and officers of the Portfolio who are members of EVM’s or BMR’s organizations receive remuneration for their services to the Portfolio out of the investment adviser fee. Trustees of the Portfolio who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended October 31, 2017, no significant amounts have been deferred. Certain officers and Trustees of the Portfolio are officers of the above organizations.

3  Purchases and Sales of Investments

Purchases and sales of investments, other than short-term obligations, and including maturities and paydowns, for the year ended October 31, 2017 were as follows:

	Purchases		Sales
Investments (non-U.S. Government)	$	9,543,955	$	53,610,588
U.S. Government and Agency Securities		—		663,096
	$	9,543,955	$	54,273,684

Included in purchases are the cost of securities purchased by the Portfolio from investment companies or accounts advised by EVM or its affiliates of $641,209. Such transactions were executed in accordance with affiliated transaction procedures approved by the Portfolio’s Trustees.

4  Federal Income Tax Basis of Investments

The cost and unrealized appreciation (depreciation) of investments, including open derivative contracts, of the Portfolio at October 31, 2017, as determined on a federal income tax basis, were as follows:

Aggregate cost	$	97,250,388
Gross unrealized appreciation	$	960,040
Gross unrealized depreciation		(1,866,872	)
Net unrealized depreciation	$	(906,832	)

5  Financial Instruments

The Portfolio may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities. These financial instruments may include written options, forward foreign currency exchange contracts and futures 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 Portfolio has in particular classes of financial instruments and do not necessarily represent the amounts potentially subject to risk. The measurement of the

30

International Income Portfolio

October 31, 2017

Notes to Financial Statements — continued

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, 2017 is included in the Portfolio of Investments. At October 31, 2017, the Portfolio had sufficient cash and/or securities to cover commitments under these contracts.

In the normal course of pursuing its investment objective, the Portfolio is subject to the following risks:

Foreign Exchange Risk:  The Portfolio engages in forward foreign currency exchange contracts and currency options to enhance total return, to seek to hedge against fluctuations in currency exchange rates and/or as a substitute for the purchase or sale of securities or currencies.

Interest Rate Risk:  The Portfolio utilizes futures contracts to enhance total return, to seek to hedge against fluctuations in interest rates, and/or to change the effective duration of its portfolio.

The Portfolio enters into over-the-counter (OTC) derivatives that may contain provisions whereby the counterparty may terminate the contract under certain conditions, including but not limited to a decline in the Portfolio’s net assets below a certain level over a certain period of time, which would trigger a payment by the Portfolio for those derivatives in a liability position. At October 31, 2017, the fair value of derivatives with credit-related contingent features in a net liability position was $884,739. The aggregate fair value of assets pledged as collateral by the Portfolio for such liability was $51,900 at October 31, 2017.

The OTC derivatives in which the Portfolio invests (except for written options as the Portfolio, not the counterparty, is obligated to perform) are subject to the risk that the counterparty to the contract fails to perform its obligations under the contract. To mitigate this risk, the Portfolio has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with substantially all its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Portfolio and a counterparty that governs certain OTC derivatives and typically contains, among other things, set-off provisions in the event of a default and/or termination event as defined under the relevant ISDA Master Agreement. Under an ISDA Master Agreement, the Portfolio may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency. Certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event the Portfolio’s net assets decline by a stated percentage or the Portfolio fails to meet the terms of its ISDA Master Agreements, which would cause the counterparty to accelerate payment by the Portfolio of any net liability owed to it.

The collateral requirements for derivatives traded under an ISDA Master Agreement are governed by a Credit Support Annex to the ISDA Master Agreement. Collateral requirements are determined at the close of business each day and are typically based on changes in market values for each transaction under an ISDA Master Agreement and netted into one amount for such agreement. Generally, the amount of collateral due from or to a counterparty is subject to a minimum transfer threshold amount before a transfer is required, which may vary by counterparty. Collateral pledged for the benefit of the Portfolio and/or counterparty is held in segregated accounts by the Portfolio’s custodian and cannot be sold, re-pledged, assigned or otherwise used while pledged. The portion of such collateral representing cash, if any, is reflected as deposits for derivatives collateral and, in the case of cash pledged by a counterparty for the benefit of the Portfolio, a corresponding liability on the Statement of Assets and Liabilities. Securities pledged by the Portfolio as collateral, if any, are identified as such in the Portfolio of Investments. The carrying amount of the liability for cash collateral due to brokers at October 31, 2017 approximated its fair value. If measured at fair value, such liability would have been considered as Level 2 in the fair value hierarchy (see Note 8) at October 31, 2017.

The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) by risk exposure at October 31, 2017 was as follows:

	Fair Value
Statement of Assets and Liabilities Caption	Foreign Exchange		Interest Rate		Total
Unaffiliated investments, at value	$	43,912	$	—	$	43,912
Net unrealized depreciation*		—		21,088		21,088
Receivable for open forward foreign currency exchange contracts		1,132,657		—		1,132,657
Total Asset Derivatives	$	1,176,569	$	21,088	$	1,197,657
Derivatives not subject to master netting or similar agreements	$	—	$	21,088	$	21,088
Total Asset Derivatives subject to master netting or similar agreements	$	1,176,569	$	—	$	1,176,569

31

International Income Portfolio

October 31, 2017

Notes to Financial Statements — continued

	Foreign Exchange			Interest Rate		Total
Written options outstanding, at value	$	(43,912	)	$	—	$	(43,912	)
Payable for open forward foreign currency exchange contracts		(840,827	)		—		(840,827	)
Total Liability Derivatives	$	(884,739	)	$	—	$	(884,739	)
Total Liability Derivatives subject to master netting or similar agreements	$	(884,739	)	$	—	$	(884,739	)

* Amount represents cumulative unrealized appreciation or (depreciation) on futures contracts. Only the current day’s variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin on open financial futures contracts, as applicable.

The Portfolio’s derivative assets and liabilities at fair value by risk, which are reported gross in the Statement of Assets and Liabilities, are presented in the table above. The following tables present the Portfolio’s derivative assets and liabilities by counterparty, net of amounts available for offset under a master netting agreement and net of the related collateral received by the Portfolio for such assets and pledged by the Portfolio for such liabilities as of October 31, 2017.

Counterparty	Derivative Assets Subject to Master Netting Agreement		Derivatives Available for Offset			Non-cash Collateral Received(a)			Cash Collateral Received(a)			Net Amount of Derivative Assets(b)
Australia and New Zealand Banking Group Limited	$	16,650	$	—		$	—		$	—		$	16,650
Bank of America, N.A.		117,459		(34,553	)		(19,645	)		—			63,261
Barclays Bank PLC		15,270		—			—			—			15,270
BNP Paribas		10,961		(10,961	)		—			—			—
Citibank, N.A.		115,817		(78,283	)		—			(37,534	)		—
Deutsche Bank AG		341,180		(27,087	)		—			(280,000	)		34,093
JPMorgan Chase Bank, N.A.		63,601		(8,273	)		—			(55,328	)		—
Nomura International PLC		8,685		(6,937	)		—			—			1,748
Standard Chartered Bank		423,133		(370,950	)		—			(52,183	)		—
State Street Bank and Trust Company		60,916		(60,916	)		—			—			—
UBS AG		2,897		(2,897	)		—			—			—
	$	1,176,569	$	(600,857	)	$	(19,645	)	$	(425,045	)	$	131,022

32

International Income Portfolio

October 31, 2017

Notes to Financial Statements — continued

Counterparty	Derivative Liabilities Subject to Master Netting Agreement			Derivatives Available for Offset		Non-cash Collateral Pledged(a)		Cash Collateral Pledged(a)		Net Amount of Derivative Liabilities(c)
Bank of America, N.A.	$	(34,553	)	$	34,553	$	—	$	—	$	—
BNP Paribas		(12,099	)		10,961		1,138		—		—
Citibank, N.A.		(78,283	)		78,283		—		—		—
Deutsche Bank AG		(27,087	)		27,087		—		—		—
Goldman Sachs International		(129,974	)		—		39,916		—		(90,058	)
HSBC Bank USA, N.A.		(5,350	)		—		—		—		(5,350	)
JPMorgan Chase Bank, N.A.		(8,273	)		8,273		—		—		—
Nomura International PLC		(6,937	)		6,937		—		—		—
Societe Generale		(4,347	)		—		—		—		(4,347	)
Standard Chartered Bank		(370,950	)		370,950		—		—		—
State Street Bank and Trust Company		(114,747	)		60,916		—		—		(53,831	)
The Bank of Nova Scotia		(76,089	)		—		—		—		(76,089	)
UBS AG		(16,050	)		2,897		—		—		(13,153	)
	$	(884,739	)	$	600,857	$	41,054	$	—	$	(242,828	)

^(a)  In some instances, the total collateral received and/or pledged may be more than the amount shown due to overcollateralization.

^(b)  Net amount represents the net amount due from the counterparty in the event of default.

^(c)  Net amount represents the net amount payable to the counterparty in the event of default.

The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations by risk exposure for the year ended October 31, 2017 was as follows:

Statement of Operations Caption	Foreign Exchange			Interest Rate
Net realized gain (loss) —
Investment transactions	$	(8,678	)	$	—
Written options		128,500			—
Financial futures contracts		—			26,424
Forward foreign currency exchange contracts		2,185,776			—
Total	$	2,305,598		$	26,424
Change in unrealized appreciation (depreciation) —
Investments	$	35,324		$	—
Written options		(9,195	)		—
Financial futures contracts		—			6,940
Forward foreign currency exchange contracts		420,015			—
Total	$	446,144		$	6,940

33

International Income Portfolio

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Notes to Financial Statements — continued

The average notional cost of futures contracts and average notional amounts of other derivative contracts outstanding during the year ended October 31, 2017, which are indicative of the volume of these derivative types, were approximately as follows:

Futures Contracts — Short		Forward Foreign Currency Exchange Contracts*
	$1,804,000	$	125,815,000

* The average notional amount for forward foreign currency exchange contracts is based on the absolute value of notional amounts of currency purchased and currency sold.

The average principal amount of purchased currency options contracts and written currency options contracts outstanding during the year ended October 31, 2017, which are indicative of the volume of these derivative types, were approximately $8,284,000 and $5,426,000, respectively.

6  Line of Credit

The Portfolio participates with other portfolios and funds managed by EVM and its affiliates in a $625 million unsecured line of credit agreement with a group of banks, which is in effect through October 30, 2018. Borrowings are made by the Portfolio solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to the Portfolio 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 0.15% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. Because the line of credit is not available exclusively to the Portfolio, it may be unable to borrow some or all of its requested amounts at any particular time. The Portfolio did not have any significant borrowings or allocated fees during the year ended October 31, 2017.

7  Risks Associated with Foreign Investments

The Portfolio’s investments in foreign instruments can be adversely affected by changes in currency exchange rates and political, economic and market developments abroad. In emerging or less developed countries, these risks can be more significant. Investment markets in emerging market countries are typically substantially smaller, less liquid and more volatile than the major markets in developed countries. Emerging market countries may have relatively unstable governments and economies. Emerging market investments often are subject to speculative trading, which typically contributes to volatility.

The Portfolio may have difficulties enforcing its legal or contractual rights in a foreign country. Economic data as reported by foreign governments and other issuers may be delayed, inaccurate or fraudulent. In the event of a default by a sovereign entity, there are typically no assets to be seized or cash flows to be attached. Furthermore, the willingness or ability of a foreign government to renegotiate defaulted debt may be limited.

8  Fair Value Measurements

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

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

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

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

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

34

International Income Portfolio

October 31, 2017

Notes to Financial Statements — continued

At October 31, 2017, the hierarchy of inputs used in valuing the Portfolio’s investments and open derivative instruments, which are carried at value, were as follows:

Asset Description	Level 1		Level 2			Level 3		Total
Foreign Government Bonds	$	—	$	12,821,024		$	—	$	12,821,024
Foreign Corporate Bonds		—		1,384,846			—		1,384,846
Collateralized Mortgage Obligations		—		541,085			—		541,085
Mortgage Pass-Throughs		—		2,666,085			—		2,666,085
Short-Term Investments —
Foreign Government Securities		—		35,444,969			—		35,444,969
U.S. Treasury Obligations		—		38,951,168			—		38,951,168
Other		—		4,280,143			—		4,280,143
Currency Options Purchased		—		43,912			—		43,912
Total Investments	$	—	$	96,133,232		$	—	$	96,133,232
Forward Foreign Currency Exchange Contracts	$	—	$	1,132,657		$	—	$	1,132,657
Futures Contracts		21,088		—			—		21,088
Total	$	21,088	$	97,265,889		$	—	$	97,286,977
Liability Description
Currency Options Written	$	—	$	(43,912	)	$	—	$	(43,912	)
Forward Foreign Currency Exchange Contracts		—		(840,827	)		—		(840,827	)
Total	$	—	$	(884,739	)	$	—	$	(884,739	)

The Portfolio held no investments or other financial instruments as of October 31, 2016 whose fair value was determined using Level 3 inputs. At October 31, 2017, there were no investments transferred between Level 1 and Level 2 during the year then ended.

35

International Income Portfolio

October 31, 2017

Report of Independent Registered Public Accounting Firm

To the Trustees and Investors of International Income Portfolio:

We have audited the accompanying statement of assets and liabilities of International Income Portfolio (the “Portfolio”), including the portfolio of investments, as of October 31, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Portfolio is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Portfolio’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2017, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of International Income Portfolio as of October 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

December 21, 2017

36

Eaton Vance

Diversified Currency Income Fund

October 31, 2017

Management and Organization

Fund Management.  The Trustees of Eaton Vance Mutual Funds Trust (the Trust) and International Income Portfolio (the Portfolio) are responsible for the overall management and supervision of the Trust’s and Portfolio’s affairs. The Trustees and officers of the Trust and the Portfolio are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Trustees and officers of the Trust and the Portfolio hold indefinite terms of office. The “Noninterested Trustees” consist of those Trustees who are not “interested persons” of the Trust and the Portfolio, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, “EVC” refers to Eaton Vance Corp., “EV” refers to Eaton Vance, Inc., “EVM” refers to Eaton Vance Management, “BMR” refers to Boston Management and Research and “EVD” refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is the Fund’s principal underwriter, the Portfolio’s placement agent and a wholly-owned subsidiary of EVC. Each officer affiliated with Eaton Vance may hold a position with other Eaton Vance affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 176 portfolios in the Eaton Vance Complex (including all master and feeder funds in a master feeder structure). Each officer serves as an officer of certain other Eaton Vance funds. Each Trustee and officer serves until his or her successor is elected.

Name and Year of Birth	Position(s) with the Trust and the Portfolio	Trustee Since(1)	Principal Occupation(s) and Directorships During Past Five Years and Other Relevant Experience
Interested Trustee
Thomas E. Faust Jr. 1958	Trustee	2007	Chairman, Chief Executive Officer and President of EVC, Director and President of EV, Chief Executive Officer and President of EVM and BMR, and Director of EVD. Trustee and/or officer of 176 registered investment companies. Mr. Faust is an interested person because of his positions with EVM, BMR, EVD, EVC and EV, which are affiliates of the Trust and the Portfolio. Directorships in the Last Five Years.(2) Director of EVC and Hexavest Inc. (investment management firm).
Noninterested Trustees
Mark R. Fetting 1954	Trustee	2016	Private investor. Formerly held various positions at Legg Mason, Inc. (investment management firm) (2000-2012), including President, Chief Executive Officer, Director and Chairman (2008-2012), Senior Executive Vice President (2004-2008) and Executive Vice President (2001-2004). Formerly, President of Legg Mason family of funds (2001-2008). Formerly, Division President and Senior Officer of Prudential Financial Group, Inc. and related companies (investment management firm) (1991-2000). Directorships in the Last Five Years. Formerly, Director and Chairman of Legg Mason, Inc. (2008-2012); Director/Trustee and Chairman of Legg Mason family of funds (14 funds) (2008-2012); and Director/Trustee of the Royce family of funds (35 funds) (2001-2012).
Cynthia E. Frost 1961	Trustee	2014	Private investor. Formerly, Chief Investment Officer of Brown University (university endowment) (2000-2012); Formerly, Portfolio Strategist for Duke Management Company (university endowment manager) (1995-2000); Formerly, Managing Director, Cambridge Associates (investment consulting company) (1989-1995); Formerly, Consultant, Bain and Company (management consulting firm) (1987-1989); Formerly, Senior Equity Analyst, BA Investment Management Company (1983-1985). Directorships in the Last Five Years. None.
George J. Gorman 1952	Trustee	2014	Principal at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting firm) (1974-2009). Directorships in the Last Five Years. Formerly, Trustee of the BofA Funds Series Trust (11 funds) (2011-2014) and of the Ashmore Funds (9 funds) (2010-2014).
Valerie A. Mosley 1960	Trustee	2014	Chairwoman and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Former Partner and Senior Vice President, Portfolio Manager and Investment Strategist at Wellington Management Company, LLP (investment management firm) (1992-2012). Former Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990). Directorships in the Last Five Years.(2) Director of Dynex Capital, Inc. (mortgage REIT) (since 2013).

37

Eaton Vance

Diversified Currency Income Fund

October 31, 2017

Management and Organization — continued

Name and Year of Birth	Position(s) with the Trust and the Portfolio	Trustee Since(1)	Principal Occupation(s) and Directorships During Past Five Years and Other Relevant Experience
Noninterested Trustees (continued)
William H. Park 1947	Chairperson of the Board and Trustee	2016 (Chairperson); 2003 (Trustee)	Private investor. Formerly, Consultant (management and transactional) (2012-2014). Formerly, Chief Financial Officer, Aveon Group L.P. (investment management firm) (2010-2011). Formerly, Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005). Formerly, Executive Vice President and Chief Financial Officer, United Asset Management Corporation (investment management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now PricewaterhouseCoopers) (a registered public accounting firm) (1972-1981). Directorships in the Last Five Years.(2) None.
Helen Frame Peters 1948	Trustee	2008	Professor of Finance, Carroll School of Management, Boston College. Formerly, Dean, Carroll School of Management, Boston College (2000-2002). Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income, Colonial Management Associates (investment management firm) (1991-1998). Directorships in the Last Five Years.(2) Formerly, Director of BJ’s Wholesale Club, Inc. (wholesale club retailer) (2004-2011). Formerly, Trustee of SPDR Index Shares Funds and SPDR Series Trust (exchange traded funds) (2000-2009). Formerly, Director of Federal Home Loan Bank of Boston (a bank for banks) (2007-2009).
Susan J. Sutherland 1957	Trustee	2015	Private investor. Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013). Directorships in the Last Five Years. Formerly, Director of Montpelier Re Holdings Ltd. (global provider of customized insurance and reinsurance products) (2013-2015).
Harriett Tee Taggart 1948	Trustee	2011	Managing Director, Taggart Associates (a professional practice firm). Formerly, Partner and Senior Vice President, Wellington Management Company, LLP (investment management firm) (1983-2006). Directorships in the Last Five Years.(2) Director of Albemarle Corporation (chemicals manufacturer) (since 2007) and The Hanover Group (specialty property and casualty insurance company) (since 2009). Formerly, Director of Lubrizol Corporation (specialty chemicals) (2007-2011).
Scott E. Wennerholm 1959	Trustee	2016	Trustee at Wheelock College (postsecondary institution) (since 2012). Formerly, Consultant at GF Parish Group (executive recruiting firm) (2016-2017). Formerly, Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm) (2005-2011). Formerly, Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm) (1997-2004). Formerly, Vice President at Fidelity Investments Institutional Services (investment management firm) (1994-1997). Directorships in the Last Five Years. None.
Principal Officers who are not Trustees
Name and Year of Birth	Position(s) with the Trust and the Portfolio	Officer Since(3)	Principal Occupation(s) During Past Five Years
Payson F. Swaffield 1956	President	2003	Vice President and Chief Income Investment Officer of EVM and BMR. Also Vice President of Calvert Research and Management (“CRM”).
Maureen A. Gemma 1960	Vice President, Secretary and Chief Legal Officer	2005	Vice President of EVM and BMR. Also Vice President of CRM.

38

Eaton Vance

Diversified Currency Income Fund

October 31, 2017

Management and Organization — continued

Name and Year of Birth	Position(s) with the Trust and the Portfolio	Officer Since(3)	Principal Occupation(s) During Past Five Years
Principal Officers who are not Trustees (continued)
James F. Kirchner 1967	Treasurer	2007	Vice President of EVM and BMR. Also Vice President of CRM.
Richard F. Froio 1968	Chief Compliance Officer	2017	Vice President of EVM and BMR since 2017. Formerly Deputy Chief Compliance Officer (Adviser/Funds) and Chief Compliance Officer (Distribution) at PIMCO (2012-2017) and Managing Director at BlackRock/Barclays Global Investors (2009-2012).

⁽¹⁾  Year first appointed to serve as Trustee for a fund in the Eaton Vance family of funds. Each Trustee has served continuously since appointment unless indicated otherwise.

⁽²⁾  During their respective tenures, the Trustees (except for Mmes. Frost and Sutherland and Messrs. Fetting, Gorman and Wennerholm) also served as Board members of one or more of the following funds (which operated in the years noted): eUnits^TM 2 Year U.S. Market Participation Trust: Upside to Cap / Buffered Downside (launched in 2012 and terminated in 2014); eUnits^TM 2 Year U.S. Market Participation Trust II: Upside to Cap / Buffered Downside (launched in 2012 and terminated in 2014); and Eaton Vance National Municipal Income Trust (launched in 1998 and terminated in 2009). However, Ms. Mosley did not serve as a Board member of eUnits^TM 2 Year U.S. Market Participation Trust: Upside to Cap / Buffered Downside (launched in 2012 and terminated in 2014).

⁽³⁾  Year first elected to serve as officer of a fund in the Eaton Vance family of funds when the officer has served continuously. Otherwise, year of most recent election as an officer of a fund in the Eaton Vance family of funds. Titles may have changed since initial election.

The SAI for the Fund includes additional information about the Trustees and officers of the Fund and the Portfolio and can be obtained without charge on Eaton Vance’s website at www.eatonvance.com or by calling 1-800-262-1122.

39

Eaton Vance Funds

IMPORTANT NOTICES

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 Privacy 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, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Management’s Real Estate Investment Group and Boston Management and Research. In addition, our Privacy Policy applies only 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 advisor/broker-dealer, it is likely that only such advisor’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 (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 advisor, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial advisor, 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 advisor. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by Eaton Vance or your financial advisor. Separate statements will be generated for each separate account and will be householded as described above.

Portfolio Holdings.  Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of 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 at 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 and by accessing the SEC’s website at www.sec.gov.

40

Investment Adviser of International Income Portfolio

Boston Management and Research

Two International Place

Boston, MA 02110

Investment Adviser and Administrator of Eaton Vance Diversified Currency Income Fund

Eaton Vance Management

Two International Place

Boston, MA 02110

Principal Underwriter*

Eaton Vance Distributors, Inc.

Two International Place

Boston, MA 02110

(617) 482-8260

Custodian

State Street Bank and Trust Company

State Street Financial Center, One Lincoln Street

Boston, MA 02111

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Attn: Eaton Vance Funds

P.O. Box 9653

Providence, RI 02940-9653

(800) 262-1122

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

200 Berkeley Street

Boston, MA 02116-5022

Fund Offices

Two International Place

Boston, MA 02110

* FINRA BrokerCheck.  Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to investors at www.FINRA.org.

3042    10.31.17

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. The registrant has amended the code of ethics as described in Form N-CSR during the period covered by this report to make clarifying changes consistent with Rule 21F-17 of the Securities Exchange Act of 1934, as amended. The registrant has not granted any waiver, including an implicit waiver, from a provision of the code of ethics as described in Form N-CSR during the period covered by this report.

Item 3. Audit Committee Financial Expert

The registrant’s Board has designated William H. Park, an independent trustee, as its audit committee financial expert. Mr. Park is a certified public accountant who is a private investor. Previously, he served as a consultant, as the Chief Financial Officer of Aveon Group, L.P. (an investment management firm), as the Vice Chairman of Commercial Industrial Finance Corp. (specialty finance company), as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm), as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an institutional investment management firm) and as a Senior Manager at Price Waterhouse (now PricewaterhouseCoopers) (an independent registered public accounting firm).

Item 4. Principal Accountant Fees and Services

Rule 2-01(c)(1)(ii)(A) of Regulation S-X (the “Loan Rule”) prohibits an accounting firm, such as the Portfolio’s principal accountant, Deloitte & Touche LLP (“D&T”), from having certain financial relationships with their audit clients and affiliated entities. Specifically, the Loan Rule provides, in relevant part, that an accounting firm generally would not be independent if it or a “covered person” of the accounting firm (within the meaning of applicable SEC rules relating to auditor independence) receives a loan from a lender that is a “record or beneficial owner of more than ten percent of the audit client’s equity securities.” Based on information provided to the Audit Committee of the Board of Trustees (the “Audit Committee”) of the Eaton Vance family of funds by D&T, certain relationships between D&T and its affiliates (“Deloitte Entities”) and one or more lenders who are record owners of shares of one or more funds within the Eaton Vance family of funds (the “Funds”) implicate the Loan Rule, calling into question D&T’s independence with respect to the Funds. The Funds are providing this disclosure to explain the facts and circumstances as well as D&T’s conclusions concerning D&T’s objectivity and impartiality with respect to the audits of the Funds notwithstanding the existence of one or more breaches of the Loan Rule.

On June 20, 2016, the U.S. Securities and Exchange Commission (the “SEC”) issued no-action relief to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter (June 20, 2016) (the “No-Action Letter”)) related to an auditor independence issue arising under the Loan Rule. In the No-Action Letter, the SEC indicated that it would not recommend enforcement action against the fund group if the auditor is not in compliance with the Loan Rule provided that: (1) the auditor has complied with PCAOB Rule 3526(b)(1) and 3526(b)(2); (2) the auditor’s non-compliance under the Loan Rule is with respect to certain lending relationships; and (3) notwithstanding such non-compliance, the auditor has concluded that it is objective and impartial with respect to the issues encompassed within its engagement as auditor of the funds. The SEC has indicated that the no-action relief will expire 18 months from its issuance.

Based on information provided by D&T to the Audit Committee, the requirements of the No-Action Letter appear to be met with respect to D&T’s lending relationships described above. Among other things, D&T has advised the Audit Committee of its conclusion that the consequences of the breach of the Loan Rule have been satisfactorily addressed, that D&T’s objectivity and impartiality in the planning and conduct of the audits of the

Fund’s financial statements has not been compromised and that, notwithstanding the breach, D&T is in a position to continue as the auditor for the Funds and D&T does not believe any actions need to be taken with respect to previously issued reports by D&T. D&T has advised the Audit Committee that these conclusions were based in part on its consideration of the No-Action Letter and other relevant information communicated to the Audit Committee.

(a)-(d)

The following table presents the aggregate fees billed to the registrant for the registrant’s fiscal years ended October 31, 2016 and October 31, 2017 by D&T for professional services rendered for the audit of the registrant’s annual financial statements and fees billed for other services rendered by D&T during such periods.

Fiscal Years Ended	10/31/16		10/31/17
Audit Fees	$	58,697	$	58,848
Audit-Related Fees(1)	$	0	$	0
Tax Fees(2)	$	25,160	$	18,859
All Other Fees(3)	$	0	$	0
Total	$	83,857	$	77,707

⁽¹⁾  Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under the category of audit fees.

⁽²⁾  Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other tax related compliance/planning matters.

⁽³⁾  All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services.

(e)(1) The registrant’s audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant’s principal accountant (the “Pre-Approval Policies”). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee.

The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant’s audit committee at least annually. The registrant’s audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant’s principal accountant.

(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant’s audit committee pursuant to the “de minimis exception” set forth in Rule 2-01 (c)(7)(i)(C) of Regulation S-X.

(f) Not applicable.

(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the registrant by D&T for the registrant’s fiscal years ended October 31, 2016 and October 31, 2017; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to the Eaton Vance organization by D&T for the same time periods.

Fiscal Years Ended	10/31/16		10/31/17
Registrant	$	25,160	$	18,859
Eaton Vance(1)	$	56,434	$	148,018

⁽¹⁾  Certain subsidiaries of Eaton Vance Corp. provide ongoing services to the registrant.

(h) The registrant’s audit committee has considered whether the provision by the registrant’s principal accountant of non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants

Not applicable.

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 applicable.

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

Not applicable.

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

Not applicable.

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.

International Income Portfolio

By:	/s/ Payson F. Swaffield
	Payson F. Swaffield
	President
Date:	December 22, 2017

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/ James F. Kirchner
	James F. Kirchner
	Treasurer
Date:	December 22, 2017
By:	/s/ Payson F. Swaffield
	Payson F. Swaffield
	President
Date:	December 22, 2017

EX-99.CERT

International Income Portfolio

FORM N-CSR

Exhibit 12(a)(2)(i)

CERTIFICATION

I, James F. Kirchner, certify that:

1. I have reviewed this report on Form N-CSR of International Income Portfolio;

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 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 22, 2017	/s/ James F. Kirchner
	James F. Kirchner
	Treasurer

International Income Portfolio

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 International Income Portfolio;

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 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 22, 2017	/s/ Payson F. Swaffield
	Payson F. Swaffield
	President

EX-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 International Income Portfolio (the “Portfolio”), that:

(a) The Annual Report of the Portfolio on Form N-CSR for the period ended October 31, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(b) The information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Portfolio for such period.

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

International Income Portfolio

Date: December 22, 2017

/s/ James F. Kirchner

James F. Kirchner

Treasurer

Date: December 22, 2017

/s/ Payson F. Swaffield

Payson F. Swaffield

President