Edgar Filing: Eaton Vance Short Duration Diversified Income Fund

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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number		811-21563

Eaton Vance Short Duration Diversified Income Fund
(Exact name of registrant as specified in charter)

The Eaton Vance Building, 255 State Street, Boston, Massachusetts			02109
(Address of principal executive offices)			(Zip code)

Alan R. Dynner, Esq. Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109
(Name and address of agent for service)

Registrant’s telephone number, including area code:		(617) 482-8260

Date of fiscal year end:	October 31

Date of reporting period:	July 31, 2007

Item 1. Schedule of Investments

Eaton Vance Short Duration Diversified Income Fund	as of July 31, 2007
PORTFOLIO OF INVESTMENTS (Unaudited)

Senior, Floating Rate Interests — 68.3% (1)

Principal
Amount			Borrower/Tranche Description	Value
Aerospace and Defense — 1.4%
			Dresser Rand Group, Inc.
347,110		EUR	Term Loan, 11.11%, Maturing October 29, 2011	475,142
			Evergreen International Aviation
279,736			Term Loan, 8.86%, Maturing October 31, 2011	278,338
			Hawker Beechcraft Acquisition
28,085			Term Loan, 5.26%, Maturing March 26, 2014	26,786
331,085			Term Loan, 7.36%, Maturing March 26, 2014	315,772
			Hexcel Corp.
655,163			Term Loan, 7.11%, Maturing March 1, 2012	646,974
			Spirit AeroSystems, Inc.
1,561,709			Term Loan, 7.11%, Maturing December 31, 2011	1,569,517
			TransDigm, Inc.
475,000			Term Loan, 7.36%, Maturing June 23, 2013	471,141
			Vought Aircraft Industries, Inc.
181,818			Term Loan, 7.82%, Maturing December 17, 2011	180,455
798,930			Term Loan, 7.83%, Maturing December 17, 2011	792,939
				$	4,757,064

Air Transport — 0.4%
			Delta Air Lines, Inc.
$	350,000		Term Loan, 8.61%, Maturing April 30, 2014	$	345,363
			Northwest Airlines, Inc.
600,000			DIP Loan, 7.34%, Maturing August 21, 2008	586,875
			Orbitz Worldwide, Inc.
315,000			Term Loan, 8.34%, Maturing July 25, 2014	314,606
				$	1,246,844

Automotive — 3.5%
			AA Acquisitions Co., Ltd.
500,000		GBP	Term Loan, 8.18%, Maturing June 25, 2012	1,011,453
			Accuride Corp.
535,682			Term Loan, 7.38%, Maturing January 31, 2012	520,616
			Adesa, Inc.
925,000			Term Loan, 7.61%, Maturing October 18, 2013	853,891
			Affina Group, Inc.
845,732			Term Loan, 8.36%, Maturing November 30, 2011	835,689
			AxleTech International Holding, Inc.
425,000			Term Loan, 11.86%, Maturing April 21, 2013	423,938
			CSA Acquisition Corp.
224,556			Term Loan, 7.88%, Maturing December 23, 2011	218,999
561,353			Term Loan, 7.88%, Maturing December 23, 2011	547,460
			Dayco Europe S.R.I.
468,517		EUR	Term Loan, 6.62%, Maturing June 21, 2010	628,503
			Dayco Products, LLC
554,013			Term Loan, 7.85%, Maturing June 21, 2011	538,316
			Delphi Corp.
500,000			Term Loan, 7.63%, Maturing October 8, 2007	492,500

			Federal-Mogul Corp.
$	500,000		DIP Loan, 6.82%, Maturing December 31, 2007	$	495,000
361,345			Term Loan, 7.57%, Maturing December 31, 2007	347,117
420,728			Term Loan, 7.59%, Maturing December 31, 2007	404,688
			Ford Motor Co.
497,500			Term Loan, 8.36%, Maturing December 15, 2013	470,172
			General Motors Corp.
422,875			Term Loan, 7.74%, Maturing November 29, 2013	407,678
			Goodyear Tire & Rubber Co.
675,000			Term Loan, 6.85%, Maturing April 30, 2010	648,844
500,000			Term Loan, 8.82%, Maturing March 1, 2011	485,000
			HLI Operating Co., Inc.
27,272		EUR	Term Loan, 6.86%, Maturing May 30, 2014	36,897
1,323,636		EUR	Term Loan, 6.87%, Maturing May 30, 2014	1,790,721
			Keystone Automotive Operations, Inc.
248,750			Term Loan, 8.84%, Maturing January 12, 2012	233,825
			TriMas Corp.
70,313			Term Loan, 7.57%, Maturing August 2, 2011	69,961
302,402			Term Loan, 7.61%, Maturing August 2, 2013	300,890
			United Components, Inc.
375,000			Term Loan, 7.36%, Maturing June 30, 2010	363,750
				$	12,125,908

Beverage and Tobacco — 0.5%
			Culligan International Co.
300,000		EUR	Term Loan, 8.85%, Maturing May 31, 2013	411,682
			Liberator Midco, Ltd.
250,000		EUR	Term Loan, 6.54%, Maturing October 27, 2013	337,165
250,000		EUR	Term Loan, 6.92%, Maturing October 27, 2014	338,876
			National Dairy Holdings, L.P.
454,464			Term Loan, 7.32%, Maturing March 15, 2012	454,464
				$	1,542,187

Building and Development — 3.1%
			BioMed Realty, L.P.
$	660,000		Term Loan, 7.57%, Maturing May 31, 2010	$	660,825
			Building Materials Corp. of America
398,003			Term Loan, 8.13%, Maturing February 22, 2014	370,142
			Capital Automotive REIT
395,362			Term Loan, 7.07%, Maturing December 16, 2010	387,784
			Epco / Fantome, LLC
480,000			Term Loan, 7.98%, Maturing November 23, 2010	481,200
			Hovstone Holdings, LLC
211,121			Term Loan, 6.84%, Maturing February 28, 2009	207,954
			Lanoga Corp.
371,264			Term Loan, 9.00%, Maturing June 29, 2013	367,551
			LNR Property Corp.
800,000			Term Loan, 8.11%, Maturing July 3, 2011	770,143
			Mueller Water Products, Inc.
306,818			Term Loan, 7.10%, Maturing May 24, 2014	294,929
			Nortek, Inc.
977,387			Term Loan, 7.61%, Maturing August 27, 2011	941,957
			Panolam Industries Holdings, Inc.
169,690			Term Loan, 8.11%, Maturing September 30, 2012	162,902
			Ply Gem Industries, Inc.
528,864			Term Loan, 8.11%, Maturing August 15, 2011	500,658
19,761			Term Loan, 8.11%, Maturing August 15, 2011	18,707
			Realogy Corp.
259,848			Term Loan, Maturing September 1, 2014 (10)	245,185
965,152			Term Loan, Maturing September 1, 2014 (10)	910,689
			Ristretto Investissements SAS
308,150		EUR	Term Loan, 6.62%, Maturing September 30, 2013	412,321

130,995		GBP	Term Loan, 8.35%, Maturing September 30, 2013	261,530
308,150		EUR	Term Loan, 7.00%, Maturing September 30, 2014	414,430
130,995		GBP	Term Loan, 8.73%, Maturing September 30, 2014	262,861
			Stile Acquisition Corp.
302,923			Term Loan, 7.36%, Maturing April 6, 2013	282,534
			Stile U.S. Acquisition Corp.
303,439			Term Loan, 7.36%, Maturing April 6, 2013	283,015
			TRU 2005 RE Holding Co.
1,325,000			Term Loan, 8.32%, Maturing December 9, 2008	1,311,750
			United Subcontractors, Inc.
250,000			Term Loan, 12.61%, Maturing June 27, 2013	239,375
			Wintergames Acquisition ULC
815,060			Term Loan, 7.32%, Maturing October 26, 2007	817,098
				$	10,605,540

Business Equipment and Services — 5.1%
			ACCO Brands Corp.
$	1,187,970		Term Loan, 7.11%, Maturing August 17, 2012	$	1,155,301
			Affiliated Computer Services
246,250			Term Loan, 7.32%, Maturing March 20, 2013	239,820
618,750			Term Loan, 7.32%, Maturing March 20, 2013	602,594
			Affinion Group, Inc.
459,070			Term Loan, 7.86%, Maturing October 17, 2012	456,272
			Allied Security Holdings, LLC
364,773			Term Loan, 8.36%, Maturing June 30, 2010	355,653
			Buhrmann US, Inc.
1,964,556		EUR	Term Loan, 5.88%, Maturing December 23, 2010	2,692,545
			Bushnell Performance Optics
491,460			Term Loan, 8.32%, Maturing August 19, 2011	489,003
			DynCorp International, LLC
438,665			Term Loan, 7.63%, Maturing February 11, 2011	428,247
			Info USA, Inc.
197,010			Term Loan, 7.36%, Maturing February 14, 2012	194,055
			N.E.W. Holdings I, LLC
270,038			Term Loan, 7.86%, Maturing May 22, 2014	251,135
			Nielsen Finance, LLC
1,985,000			Term Loan, 7.36%, Maturing August 9, 2013	1,936,538
			Protection One, Inc.
193,467			Term Loan, 7.59%, Maturing March 31, 2012	186,696
			Quintiles Transnational Corp.
500,000			Term Loan, 9.36%, Maturing March 31, 2014	487,500
			Sabare, Inc.
1,364,593			Term Loan, 7.61%, Maturing September 30, 2014	1,251,527
			Sitel (Client Logic)
292,041			Term Loan, 7.85%, Maturing January 29, 2014	285,470
			SunGard Data Systems, Inc.
2,945,138			Term Loan, 7.36%, Maturing February 11, 2013	2,835,001
			TDS Investor Corp.
525,796		EUR	Term Loan, 6.66%, Maturing August 23, 2013	709,240
			Valassis Communications, Inc.
182,551			Term Loan, 7.11%, Maturing March 2, 2014	175,021
			VWR International, Inc.
450,000			Term Loan, 7.86%, Maturing June 28, 2013	437,625
			WAM Acquisition, S.A.
153,716		EUR	Term Loan, 6.57%, Maturing May 4, 2014	201,939
96,283		EUR	Term Loan, 6.57%, Maturing May 4, 2014	126,490
153,716		EUR	Term Loan, 6.82%, Maturing May 4, 2015	203,079
96,283		EUR	Term Loan, 6.82%, Maturing May 4, 2015	127,203
			West Corp.
696,504			Term Loan, 7.75%, Maturing October 24, 2013	671,353

			Williams Scotsman, Inc.
$	930,000		Term Loan, 6.82%, Maturing June 27, 2010	$	906,750
			Worldspan, L.P.
398,000			Term Loan, 8.61%, Maturing December 7, 2013	394,020
				$	17,800,077

Cable and Satellite Television — 5.3%
			Cequel Communications, LLC
$	475,000		Term Loan, 9.86%, Maturing May 5, 2014	$	462,175
935,008			Term Loan, 11.36%, Maturing May 5, 2014	919,424
			Charter Communications Operating, Inc
2,991,833			Term Loan, 7.36%, Maturing April 28, 2013	2,851,217
			CSC Holdings, Inc.
1,886,225			Term Loan, 7.07%, Maturing March 29, 2013	1,816,502
			Insight Midwest Holdings, LLC
1,525,000			Term Loan, 7.36%, Maturing April 6, 2014	1,480,944
			Kabel Deutschland GmbH
1,000,000		EUR	Term Loan, 5.88%, Maturing March 31, 2012	1,345,002
			NTL Investment Holdings, Ltd.
538,924		GBP	Term Loan, 8.28%, Maturing March 30, 2012	1,075,272
461,075		GBP	Term Loan, 8.28%, Maturing March 30, 2012	919,947
			Orion Cable GmbH
375,000		EUR	Term Loan, 6.97%, Maturing October 31, 2014	502,732
375,000		EUR	Term Loan, 7.22%, Maturing October 31, 2015	505,298
			Persona Communications Corp.
250,000			Term Loan, 11.32%, Maturing April 12, 2014	251,875
			PKS Media (Netherlands) B.V.
500,000		EUR	Term Loan, 7.70%, Maturing October 5, 2013	684,425
500,000		EUR	Term Loan, 7.70%, Maturing October 5, 2014	684,425
			ProSiebenSat.1 Media AG
79,391		EUR	Term Loan, 6.60%, Maturing March 2, 2015	102,765
9,414		EUR	Term Loan, Maturing June 26, 2015 (10)	12,162
231,985		EUR	Term Loan, Maturing June 26, 2015 (10)	299,691
79,391		EUR	Term Loan, 6.98%, Maturing March 2, 2016	103,309
			UPC Broadband Holding B.V.
1,150,000		EUR	Term Loan, 6.30%, Maturing June 30, 2009	1,534,541
1,550,000			Term Loan, 7.13%, Maturing October 16, 2011	1,501,563
			YPSO Holding SA
496,137		EUR	Term Loan, 6.61%, Maturing July 28, 2014	659,490
191,468		EUR	Term Loan, 6.61%, Maturing July 28, 2014	254,509
312,395		EUR	Term Loan, 6.61%, Maturing July 28, 2014	415,251
				$	18,382,519

Chemicals and Plastics — 5.3%
			Brenntag Holding GmbH and Co.
1,061,751		EUR	Term Loan, 11.37%, Maturing December 23, 2013	1,493,346
			Cognis GmbH
400,000			Term Loan, 7.36%, Maturing September 15, 2013	388,500
			Foamex L.P.
258,824			Term Loan, 7.60%, Maturing February 12, 2013	251,922
			Georgia Gulf Corp.
264,098			Term Loan, 7.82%, Maturing October 3, 2013	258,023
			Hercules Offshore, Inc.
200,000			Term Loan, 7.11%, Maturing July 6, 2013	195,000
			Hexion Specialty Chemicals, Inc.
1,057,320			Term Loan, 7.63%, Maturing May 5, 2013	1,019,984
229,680			Term Loan, 7.63%, Maturing May 5, 2013	221,570
			INEOS Group
495,000			Term Loan, 7.58%, Maturing December 14, 2013	481,140
495,000			Term Loan, 8.08%, Maturing December 14, 2014	481,140
			Innophos, Inc.
479,948			Term Loan, 7.57%, Maturing August 10, 2010	470,349

			ISP ChemCo, Inc.
$	1,200,000		Term Loan, 7.13%, Maturing June 4, 2014	$	1,152,600
			Kleopatra
200,000		EUR	Term Loan, 6.60%, Maturing January 3, 2016	273,770
225,000			Term Loan, 7.83%, Maturing January 3, 2016	225,000
			Kranton Polymers, LLC
733,125			Term Loan, 7.38%, Maturing May 12, 2013	707,466
			Lucite International Group Holdings
183,263			Term Loan, 7.61%, Maturing July 7, 2013	175,933
64,886			Term Loan, 7.61%, Maturing July 7, 2013	62,290
			Lyondell Chemical Co.
1,091,750			Term Loan, 6.86%, Maturing August 16, 2013	1,073,668
			MacDermid, Inc.
498,750		EUR	Term Loan, 6.41%, Maturing April 12, 2014	672,473
			Millenium Inorganic Chemicals
300,000			Term Loan, 11.11%, Maturing October 31, 2014	291,000
			Momentive Performance Material
348,250			Term Loan, 7.63%, Maturing December 4, 2013	328,516
			Nalco Co.
1,641,055			Term Loan, 7.10%, Maturing November 4, 2010	1,603,219
			Professional Paint, Inc.
198,000			Term Loan, 7.88%, Maturing May 31, 2012	188,100
			Propex Fabrics, Inc.
246,333			Term Loan, 8.36%, Maturing July 31, 2012	242,638
			Rockwood Specialties Group
1,462,500		EUR	Term Loan, 6.00%, Maturing July 30, 2012	2,011,953
			Sigmakalon (BC) Holdco B.V.
8,870		EUR	Term Loan, 6.66%, Maturing September 9, 2013	12,074
173,631		EUR	Term Loan, 6.66%, Maturing September 9, 2013	236,339
317,497		EUR	Term Loan, 6.66%, Maturing September 9, 2013	432,163
107,856		EUR	Term Loan, 7.41%, Maturing September 9, 2014	147,286
26,408		EUR	Term Loan, 7.41%, Maturing September 9, 2014	36,063
335,512		EUR	Term Loan, 7.41%, Maturing September 9, 2014	458,167
1,000,000		EUR	Term Loan, 9.66%, Maturing September 9, 2015	1,375,694
			Solo Cup Co.
925,681			Term Loan, 8.84%, Maturing February 27, 2011	904,853
			Solutia, Inc.
472,569			DIP Loan, 8.36%, Maturing March 31, 2008	470,206
				$	18,342,445

Clothing/Textiles — 0.2%
			Hanesbrands, Inc.
$	486,188		Term Loan, 7.10%, Maturing September 5, 2013	$	471,450
250,000			Term Loan, 9.11%, Maturing March 5, 2014	244,875
			St. John Knits International, Inc.
126,366			Term Loan, 8.36%, Maturing March 23, 2012	126,998
				$	843,323

Conglomerates — 2.3%
			Amsted Industries, Inc.
$	514,711		Term Loan, 7.36%, Maturing October 15, 2010	$	495,409
			Doncasters (Dunde HoldCo 4 Ltd.)
124,984			Term Loan, Maturing July 13, 2015 (10)	124,984
124,984			Term Loan, Maturing July 13, 2015 (10)	124,984
250,000		GBP	Term Loan, Maturing January 13, 2016 (10)	508,013
			Education Management, LLC
445,500			Term Loan, 7.13%, Maturing June 1, 2013	423,844
			GenTek, Inc.
651,396			Term Loan, 7.36%, Maturing February 25, 2011	637,961
			Goodman Global Holdings, Inc.
368,063			Term Loan, 7.13%, Maturing December 23, 2011	359,782

			ISS Holding A/S
122,807		EUR	Term Loan, 6.16%, Maturing December 31, 2013	164,364
877,192		EUR	Term Loan, 6.16%, Maturing December 31, 2013	1,174,029
			Johnson Diversey, Inc.
722,179			Term Loan, 7.86%, Maturing December 16, 2011	696,902
			Polymer Group, Inc.
1,329,750			Term Loan, 7.61%, Maturing November 22, 2012	1,303,155
			Rexnord Corp.
373,770			Term Loan, 7.86%, Maturing July 19, 2013	356,016
			RGIS Holdings, LLC
42,857			Term Loan, 0.00%, Maturing April 30, 2014 (2)	42,000
857,143			Term Loan, 7.86%, Maturing April 30, 2014	840,000
			US Investigations Services, Inc.
663,188			Term Loan, 8.07%, Maturing October 14, 2012	664,845
				$	7,916,288

Containers and Glass Products — 3.6%
			Berry Plastics Corp.
$	1,047,375		Term Loan, 7.36%, Maturing April 3, 2015	$	985,654
			Bluegrass Container Co.
108,300			Term Loan, 7.60%, Maturing June 30, 2013	106,179
361,950			Term Loan, 7.60%, Maturing June 30, 2013	354,862
84,848			Term Loan, 10.32%, Maturing December 30, 2013	83,735
265,152			Term Loan, 10.32%, Maturing December 30, 2013	261,671
			Consolidated Container Holdings
324,188			Term Loan, 7.61%, Maturing March 28, 2014	310,139
			Crown Americas, Inc.
990,000		EUR	Term Loan, 5.81%, Maturing November 15, 2012	1,355,162
			Graham Packaging Holdings Co.
1,197,000			Term Loan, 7.63%, Maturing October 7, 2011	1,142,138
			Graphic Packaging International, Inc.
1,542,250			Term Loan, 7.34%, Maturing May 16, 2014	1,513,718
			JSG Acquisitions
1,250,000		EUR	Term Loan, 6.08%, Maturing December 31, 2014	1,679,194
1,250,000		EUR	Term Loan, 6.42%, Maturing December 31, 2014	1,687,749
			Pregis Corp.
982,500			Term Loan, 7.61%, Maturing October 12, 2011	989,255
			Smurfit-Stone Container Corp.
428,496			Term Loan, 5.22%, Maturing November 1, 2011	419,093
862,091			Term Loan, 7.38%, Maturing November 1, 2011	843,174
742,764			Term Loan, 7.38%, Maturing November 1, 2011	726,464
				$	12,458,187

Cosmetics/Toiletries — 0.3%
			American Safety Razor Co.
$	300,000		Term Loan, 11.63%, Maturing July 31, 2014	$	297,000
			Prestige Brands, Inc.
652,742			Term Loan, 7.63%, Maturing April 7, 2011	638,056
				$	935,056

Drugs — 0.4%
			Pharmaceutical Holdings Corp.
$	197,500		Term Loan, 8.57%, Maturing January 30, 2012	$	199,105
			Stiefel Laboratories, Inc.
161,707			Term Loan, 7.61%, Maturing December 28, 2013	159,282
211,418			Term Loan, 7.61%, Maturing December 28, 2013	208,246
			Warner Chilcott Corp.
675,515			Term Loan, 7.36%, Maturing January 18, 2012	655,588
186,098			Term Loan, 7.36%, Maturing January 18, 2012	180,609
				$	1,402,830

Ecological Services and Equipment — 0.7%
			Blue Waste B.V. (AVR Acquisition)
500,000		EUR	Term Loan, 6.16%, Maturing April 1, 2015	672,020
			EnergySolutions, LLC
212,288			Term Loan, 7.66%, Maturing June 7, 2013	209,634
			Kemble Water Structure Ltd.
500,000		GBP	Term Loan, 9.77%, Maturing October 13, 2013	1,007,453
			Sensus Metering Systems, Inc.
381,544			Term Loan, 7.37%, Maturing December 17, 2010	379,636
35,881			Term Loan, 7.37%, Maturing December 17, 2010	35,701
				$	2,304,444

Electronics/Electrical — 2.2%
			Advanced Micro Devices, Inc.
$	525,002		Term Loan, 7.36%, Maturing December 31, 2013	$	494,122
			Aspect Software, Inc.
570,688			Term Loan, 8.36%, Maturing July 11, 2011	552,854
500,000			Term Loan, 12.44%, Maturing July 11, 2013	475,000
			Freescale Semiconductor, Inc.
1,218,875			Term Loan, 7.11%, Maturing December 1, 2013	1,124,273
			Infor Enterprise Solutions Holdings
750,046			Term Loan, 9.11%, Maturing July 28, 2012	736,921
391,329			Term Loan, 9.11%, Maturing July 28, 2012	384,480
250,000			Term Loan, 11.11%, Maturing March 2, 2014	239,375
91,667			Term Loan, 11.61%, Maturing March 2, 2014	87,771
158,333			Term Loan, 11.61%, Maturing March 2, 2014	151,604
			Invensys International Holding
650,000		EUR	Term Loan, 6.16%, Maturing December 15, 2010	889,753
			Network Solutions, Inc.
219,118			Term Loan, 7.86%, Maturing March 7, 2014	214,051
			Open Solutions, Inc.
324,245			Term Loan, 7.45%, Maturing January 23, 2014	308,843
			Sensata Technologies Finance Co.
997,481			Term Loan, 7.11%, Maturing April 27, 2013	967,453
			Spectrum Brands, Inc.
16,486			Term Loan, 5.17%, Maturing March 30, 2013	15,992
333,514			Term Loan, 9.35%, Maturing March 30, 2013	323,508
			SS&C Technologies, Inc.
453,917			Term Loan, 7.36%, Maturing November 23, 2012	447,108
9,781			Term Loan, 7.83%, Maturing November 23, 2012	9,635
			VertaFore, Inc.
275,000			Term Loan, 11.36%, Maturing January 31, 2013	262,625
				$	7,685,368

Equipment Leasing — 0.3%
			AWAS Capital, Inc.
$	644,168		Term Loan, 11.38%, Maturing March 22, 2013	$	631,285
			Maxim Crane Works, L.P.
250,000			Term Loan, 7.36%, Maturing June 29, 2014	244,375
			United Rentals, Inc.
84,034			Term Loan, 5.32%, Maturing February 14, 2011	82,616
184,147			Term Loan, 7.32%, Maturing February 14, 2011	181,039
				$	1,139,315

Farming/Agriculture — 0.1%
			BF Bolthouse HoldCo, LLC
$	375,000		Term Loan, 10.86%, Maturing December 16, 2013	$	371,562
				$	371,562

Financial Intermediaries — 0.2%
			Citco III, Ltd.
$	250,000		Term Loan, 7.63%, Maturing June 30, 2014	$	250,000
			Jupiter Asset Management Group
250,000		GBP	Term Loan, 8.05%, Maturing June 30, 2015	487,692
				$	737,692

Food Products — 3.0%
			Acosta, Inc.
$	618,750		Term Loan, 7.57%, Maturing July 28, 2013	$	598,641
			American Seafoods Group, LLC
778,372			Term Loan, 6.86%, Maturing September 30, 2011	777,399
			BL Marketing, Ltd.
300,000		GBP	Term Loan, 8.23%, Maturing December 20, 2013	601,233
300,000		GBP	Term Loan, 8.73%, Maturing December 20, 2014	604,281
			Black Lion Beverages III B.V.
1,000,000		EUR	Term Loan, 8.36%, Maturing January 24, 2016	1,346,606
			Charden International B.V.
250,000		EUR	Term Loan, 6.54%, Maturing March 14, 2014	338,505
250,000		EUR	Term Loan, 7.04%, Maturing March 14, 2015	340,216
			Chiquita Brands, LLC
898,542			Term Loan, 8.38%, Maturing June 28, 2012	883,379
			Dean Foods Co.
972,563			Term Loan, 6.86%, Maturing April 2, 2014	940,468
			Michael Foods, Inc.
220,972			Term Loan, 7.36%, Maturing November 21, 2010	216,921
			Nash-Finch Co.
353,429			Term Loan, 7.88%, Maturing November 12, 2010	342,826
			Pinnacle Foods Finance, LLC
1,075,000			Term Loan, 8.11%, Maturing April 2, 2014	1,018,563
			QCE Finance, LLC
275,000			Term Loan, 11.11%, Maturing November 5, 2013	266,979
			Reddy Ice Group, Inc.
925,000			Term Loan, 7.11%, Maturing August 9, 2012	926,734
			Ruby Acquisitions, Ltd.
500,000		GBP	Term Loan, 8.78%, Maturing January 5, 2015	1,004,595
				$	10,207,346

Food Service — 0.9%
			Aramark Corp.
547,250		GBP	Term Loan, 8.08%, Maturing January 27, 2014	1,045,317
			Buffets, Inc.
52,500			Term Loan, 5.25%, Maturing May 1, 2013	52,106
395,513			Term Loan, 8.11%, Maturing November 1, 2013	392,546
			Denny’s, Inc.
40,000			Term Loan, 7.32%, Maturing March 31, 2012	39,475
215,555			Term Loan, 7.36%, Maturing March 31, 2012	212,726
			JRD Holdings, Inc.
200,000			Term Loan, 7.87%, Maturing June 26, 2014	188,000
			OSI Restaurant Partners, LLC
18,797			Term Loan, 7.88%, Maturing May 9, 2013	17,970
231,203			Term Loan, 7.63%, Maturing May 9, 2014	221,030
			Selecta
741,245		EUR	Term Loan, Maturing June 28, 2015 (10)	1,014,654
				$	3,183,824

Food/Drug Retailers — 0.9%
			General Nutrition Centers, Inc.
$	299,250		Term Loan, 7.61%, Maturing September 16, 2013	$	290,647
			Iceland Foods Group, Ltd.
250,000		GBP	Term Loan, 8.02%, Maturing May 2, 2014	502,932
250,000		GBP	Term Loan, 8.52%, Maturing May 2, 2015	505,472

			Rite Aid Corp.
$	1,000,000		Term Loan, 7.07%, Maturing June 1, 2014	$	999,375
			Roundy’s Supermarkets, Inc.
812,666			Term Loan, 8.11%, Maturing November 3, 2011	793,365
				$	3,091,791

Forest Products — 1.6%
			Georgia-Pacific Corp.
$	2,721,218		Term Loan, 7.11%, Maturing December 20, 2012	$	2,577,867
			NewPage Corp.
662,830			Term Loan, 7.63%, Maturing May 2, 2011	653,992
			Xerium Technologies, Inc.
1,558,673		EUR	Term Loan, 6.91%, Maturing May 18, 2012	2,113,321
				$	5,345,180

Healthcare — 4.1%
			Accellent, Inc.
$	591,000		Term Loan, 7.86%, Maturing November 22, 2012	$	561,450
			Alliance Imaging, Inc.
470,000			Term Loan, 7.88%, Maturing December 29, 2011	464,909
			American Achievement Corp.
353,695			Term Loan, 7.57%, Maturing March 25, 2011	345,737
			American Medical Systems
460,225			Term Loan, 7.68%, Maturing July 20, 2012	457,924
			AMR HoldCo, Inc.
321,885			Term Loan, 7.36%, Maturing February 10, 2012	312,832
			Biomet, Inc.
775,000			Term Loan, Maturing December 26, 2014 (10)	734,313
350,000		EUR	Term Loan, Maturing December 26, 2014 (10)	478,499
			Cardinal Health 409, Inc.
425,000			Term Loan, 7.61%, Maturing April 10, 2014	399,500
			Carestream Health, Inc.
500,000			Term Loan, 7.34%, Maturing April 30, 2013	473,750
			Carl Zeiss Vision Holding GmbH
400,000			Term Loan, 7.84%, Maturing March 23, 2015	394,000
			Dako EQT Project Delphi
250,000			Term Loan, 9.84%, Maturing December 12, 2016	252,500
			Davita, Inc.
1,201,075			Term Loan, 6.86%, Maturing October 5, 2012	1,139,866
			Emdeon Business Services, LLC
487,566			Term Loan, 7.61%, Maturing November 16, 2013	471,720
			Encore Medical Finance, LLC
297,750			Term Loan, 7.88%, Maturing November 3, 2013	291,051
			FHC Health Systems, Inc.
116,285			Term Loan, 12.07%, Maturing December 18, 2009	117,447
81,399			Term Loan, 14.07%, Maturing December 18, 2009	82,213
			HCA, Inc.
1,940,250			Term Loan, 7.61%, Maturing November 18, 2013	1,876,546
			Health Management Association, Inc.
883,225			Term Loan, 7.11%, Maturing February 28, 2014	861,144
			IM U.S. Holdings, LLC
325,000			Term Loan, 7.34%, Maturing June 26, 2014	310,375
			Invacare Corp.
298,500			Term Loan, 7.59%, Maturing February 12, 2013	286,933
			Kinetic Concepts, Inc.
1			Term Loan, 4.85%, Maturing October 3, 2009	1
			LifeCare Holdings, Inc.
221,063			Term Loan, 8.36%, Maturing August 11, 2012	205,957
			National Mentor Holdings, Inc.
16,800			Term Loan, 5.32%, Maturing June 29, 2013	16,711
280,368			Term Loan, 7.35%, Maturing June 29, 2013	278,879

			Nyco Holdings
312,500		EUR	Term Loan, 6.66%, Maturing December 29, 2014	415,009
312,500		EUR	Term Loan, 7.16%, Maturing December 29, 2015	417,148
			P&F Capital S.A.R.L.
209,223		EUR	Term Loan, 6.79%, Maturing February 21, 2014	281,294
65,048		EUR	Term Loan, 7.29%, Maturing February 21, 2014	87,456
125,234		EUR	Term Loan, 7.29%, Maturing February 21, 2014	168,374
100,493		EUR	Term Loan, 7.29%, Maturing February 21, 2014	135,110
94,594		EUR	Term Loan, 7.29%, Maturing February 21, 2015	127,665
35,135		EUR	Term Loan, 7.29%, Maturing February 21, 2015	47,418
72,972		EUR	Term Loan, 7.29%, Maturing February 21, 2015	98,484
297,297		EUR	Term Loan, 7.29%, Maturing February 21, 2015	401,233
			Select Medical Holding Corp.
488,534			Term Loan, 7.36%, Maturing February 24, 2012	477,949
			Vanguard Health Holding Co., LLC
733,279			Term Loan, 7.61%, Maturing September 23, 2011	707,614
				$	14,179,011

Home Furnishings — 0.6%
			Interline Brands, Inc.
$	279,783		Term Loan, 7.07%, Maturing June 23, 2013	$	271,389
193,478			Term Loan, 7.07%, Maturing June 23, 2013	187,674
			Jarden Corp.
364,997			Term Loan, 7.11%, Maturing January 24, 2012	357,925
205,445			Term Loan, 7.11%, Maturing January 24, 2012	201,507
			Oreck Corp.
450,652			Term Loan, 10.00%, Maturing February 2, 2012 (3)	367,281
			Simmons Co.
832,620			Term Loan, 7.41%, Maturing December 19, 2011	807,642
				$	2,193,418

Industrial Equipment — 0.9%
			Alliance Laundry Holdings, LLC
$	294,563		Term Loan, 7.61%, Maturing January 27, 2012	$	290,881
			EPD Holdings (Goodyear Engineering Production)
25,000			Term Loan, Maturing July 13, 2014 (10)	24,125
175,000			Term Loan, Maturing July 13, 2014 (10)	168,875
200,000			Term Loan, Maturing July 13, 2015 (10)	193,167
			Generac Acquisition Corp.
371,250			Term Loan, 7.86%, Maturing November 7, 2013	342,014
			Gleason Corp.
20,606			Term Loan, Maturing June 30, 2013 (10)	20,271
179,394			Term Loan, 7.38%, Maturing June 30, 2013	176,479
			John Maneely Co.
575,988			Term Loan, 8.61%, Maturing December 8, 2013	517,670
			Polypore, Inc.
850,000			Term Loan, 7.56%, Maturing July 3, 2014	807,500
			TFS Acquisition Corp.
223,313			Term Loan, 8.86%, Maturing August 11, 2013	222,196
			TNT Logistics Holdings
118,321			Term Loan, 6.98%, Maturing January 4, 2014	118,986
381,679			Term Loan, 7.42%, Maturing January 4, 2014	384,184
				$	3,266,348

Insurance — 0.6%
			ARG Holding, Inc.
$	400,000		Term Loan, 12.63%, Maturing November 30, 2012	$	398,000
			CCC Information Services Group
194,417			Term Loan, 7.86%, Maturing February 10, 2013	189,556
			Conseco, Inc.
794,000			Term Loan, 7.32%, Maturing October 10, 2013	764,225

			Crawford and Company
$	358,905		Term Loan, 7.61%, Maturing October 31, 2013	$	359,353
			Hub International Holdings, Inc.
41,176			Term Loan, 0.00%, Maturing June 13, 2014 (2)	39,015
183,824			Term Loan, 7.86%, Maturing June 13, 2014	174,173
			U.S.I. Holdings Corp.
225,000			Term Loan, 8.11%, Maturing May 4, 2014	213,750
				$	2,138,072

Leisure Goods/Activities/Movies — 3.4%
			24 Hour Fitness Worldwide, Inc.
$	399,938		Term Loan, 7.87%, Maturing June 8, 2012	$	395,938
			AMC Entertainment, Inc.
566,375			Term Loan, 7.07%, Maturing January 26, 2013	547,496
			Bombardier Recreational Product
524,051			Term Loan, 7.86%, Maturing June 28, 2013	513,242
			Cedar Fair, L.P.
866,250			Term Loan, 7.32%, Maturing August 30, 2012	837,856
			Cinemark, Inc.
1,042,125			Term Loan, 7.13%, Maturing October 5, 2013	1,008,256
			Metro-Goldwyn-Mayer Holdings, Inc.
2,137,938			Term Loan, 8.61%, Maturing April 8, 2012	2,025,210
			National Cinemedia, LLC
1,225,000			Term Loan, 7.11%, Maturing February 13, 2015	1,190,438
			Red Football, Ltd.
500,000		GBP	Term Loan, 8.16%, Maturing August 16, 2014	1,008,913
500,000		GBP	Term Loan, 8.41%, Maturing August 16, 2015	1,013,993
			Revolution Studios
406,333			Term Loan, 9.07%, Maturing December 21, 2014	390,080
			Revolution Studios Distribution Co., LLC
225,000			Term Loan, 12.32%, Maturing June 21, 2015	218,250
			Six Flags Theme Parks, Inc.
850,000			Term Loan, 7.61%, Maturing April 30, 2015	800,417
			Universal City Development Partners, Ltd.
925,455			Term Loan, 7.36%, Maturing June 9, 2011	902,318
			WMG Acquisition Corp.
976,461			Term Loan, 7.36%, Maturing February 28, 2011	955,886
				$	11,808,293

Lodging and Casinos — 2.5%
			Bally Technologies, Inc.
$	932,724		Term Loan, 8.64%, Maturing September 5, 2009	$	908,629
			Fairmont Hotels and Resorts, Inc.
150,065			Term Loan, 8.57%, Maturing May 12, 2011	151,378
			Gala Electric Casinos, Ltd.
832,842		GBP	Term Loan, 8.52%, Maturing December 12, 2013	1,670,619
832,901		GBP	Term Loan, 9.02%, Maturing December 12, 2014	1,678,444
			Isle of Capri Casinos, Inc.
573,529			Term Loan, Maturing November 30, 2013 (10)	573,529
172,059			Term Loan, Maturing November 30, 2013 (10)	172,059
229,412			Term Loan, Maturing November 30, 2013 (10)	229,412
			Las Vegas Sands, LLC
920,000			Term Loan, 7.11%, Maturing May 23, 2014	881,922
			New World Gaming Partners, Ltd.
291,667			Term Loan, Maturing June 30, 2014 (10)	283,646
58,333			Term Loan, Maturing June 30, 2014 (10)	56,729
			Penn National Gaming, Inc.
1,390,237			Term Loan, 7.11%, Maturing October 3, 2012	1,369,210
			Venetian Casino Resort, LLC
230,000			Term Loan, 0.00%, Maturing May 14, 2014 (2)	220,481
			VML US Finance, LLC
133,333			Term Loan, 7.61%, Maturing May 25, 2012	129,048

$	266,667	Term Loan, 7.61%, Maturing May 25, 2013	$	258,095
			$	8,583,201

Nonferrous Metals/Minerals — 0.5%
		Euramax International, Inc.
$	167,105	Term Loan, 13.36%, Maturing June 28, 2013	$	156,452
82,895		Term Loan, 13.36%, Maturing June 28, 2013	77,610
		Murray Energy Corp.
733,125		Term Loan, 8.36%, Maturing January 28, 2010	736,791
		Novelis, Inc.
179,688		Term Loan, Maturing June 28, 2014 (10)	171,602
395,313		Term Loan, Maturing June 28, 2014 (10)	377,523
		Thompson Creek Metals Co.
257,610		Term Loan, 10.09%, Maturing October 26, 2012	257,610
			$	1,777,588

Oil and Gas — 1.4%
		Atlas Pipeline Partners, L.P.
$	415,000	Term Loan, Maturing July 20, 2014 (10)	$	411,888
		Concho Resources, Inc.
573,563		Term Loan, 9.07%, Maturing March 27, 2012	566,393
		Dresser, Inc.
300,000		Term Loan, 11.11%, Maturing May 4, 2015	285,000
		El Paso Corp.
375,000		Term Loan, 5.22%, Maturing July 31, 2011	361,875
		Key Energy Services, Inc.
492,500		Term Loan, 7.84%, Maturing June 30, 2012	482,650
		Kinder Morgan, Inc.
1,018,182		Term Loan, 6.82%, Maturing May 21, 2014	971,091
		Mach General, LLC
18,750		Term Loan, 7.36%, Maturing February 22, 2013	18,197
180,344		Term Loan, 7.36%, Maturing February 22, 2014	175,024
		Niska Gas Storage
72,727		Term Loan, 7.07%, Maturing May 13, 2011	73,000
42,013		Term Loan, 7.11%, Maturing May 13, 2011	41,435
62,022		Term Loan, 7.11%, Maturing May 13, 2011	61,169
380,677		Term Loan, 7.11%, Maturing May 12, 2013	375,443
		Primary Natural Resources, Inc.
493,750		Term Loan, 9.32%, Maturing July 28, 2010 (3)	493,207
		Targa Resources, Inc.
87,903		Term Loan, 5.24%, Maturing October 31, 2012	87,189
537,523		Term Loan, 7.33%, Maturing October 31, 2012	533,155
		Western Refining, LLC
140,625		Term Loan, Maturing June 2, 2014 (10)	135,176
			$	5,071,892

Publishing — 5.0%
		American Media Operations, Inc.
$	1,000,000	Term Loan, 8.59%, Maturing January 31, 2013	$	940,000
		CBD Media, LLC
692,810		Term Loan, 7.82%, Maturing December 31, 2009	684,150
		Gatehouse Media Operating, Inc.
175,000		Term Loan, 7.36%, Maturing August 28, 2014	166,396
375,000		Term Loan, 7.36%, Maturing August 28, 2014	356,562
		Idearc, Inc.
1,840,750		Term Loan, 7.36%, Maturing November 17, 2014	1,762,518
		Josten’s Corp.
375,045		Term Loan, 7.33%, Maturing October 4, 2011	377,233
		Medianews Group, Inc.
272,250		Term Loan, 7.09%, Maturing August 2, 2013	265,444

			Mediannuaire Holding
250,000		EUR	Term Loan, 6.39%, Maturing October 10, 2014	332,716
250,000		EUR	Term Loan, 6.89%, Maturing October 10, 2015	334,427
			Nebraska Book Co., Inc.
727,539			Term Loan, 7.83%, Maturing March 4, 2011	731,176
			Philadelphia Newspapers, LLC
214,591			Term Loan, 8.11%, Maturing June 29, 2013	208,153
			Reader’s Digest Association
922,688			Term Loan, 7.35%, Maturing March 2, 2014	858,099
			Riverdeep Interactive Learning USA, Inc.
846,991			Term Loan, 8.11%, Maturing December 20, 2013	821,581
			Seat Pagine Gialle Spa
1,574,724		EUR	Term Loan, 6.22%, Maturing May 25, 2012	2,129,831
			SP Newsprint Co.
652,602			Term Loan, 5.32%, Maturing January 9, 2010	633,024
			TL Acquisitions, Inc.
725,000			Term Loan, 8.07%, Maturing July 5, 2014	682,950
			Trader Media Corp.
450,000		GBP	Term Loan, 8.08%, Maturing March 23, 2015	895,372
			Tribune Co.
490,000			Term Loan, 7.86%, Maturing May 17, 2009	481,250
800,000			Term Loan, 8.36%, Maturing May 17, 2014	729,143
			World Directories Acquisition
1,000,000		EUR	Term Loan, 6.10%, Maturing May 31, 2014	1,338,336
			Xsys, Inc.
1,000,000		EUR	Term Loan, 6.28%, Maturing September 27, 2014	1,342,757
			YBR Acquisition BV
450,000		EUR	Term Loan, 6.63%, Maturing June 30, 2013	617,155
450,000		EUR	Term Loan, 7.13%, Maturing June 30, 2014	619,427
				$	17,307,700

Radio and Television — 2.4%
			ALM Media Holdings, Inc.
$	485,095		Term Loan, 7.82%, Maturing March 4, 2010	$	483,882
			Block Communications, Inc.
270,875			Term Loan, 7.36%, Maturing December 22, 2011	263,426
			CanWest MediaWorks, Ltd.
225,000			Term Loan, 7.34%, Maturing July 10, 2014	220,500
			CMP KC, LLC
489,344			Term Loan, 9.38%, Maturing May 5, 2013	491,791
			HEI Acquisition, LLC
550,000			Term Loan, 9.36%, Maturing April 13, 2014	500,500
			NEP II, Inc.
174,562			Term Loan, 7.61%, Maturing February 16, 2014	169,325
			Nexstar Broadcasting, Inc.
387,152			Term Loan, 7.11%, Maturing October 1, 2012	378,925
366,721			Term Loan, 7.11%, Maturing October 1, 2012	358,928
			PanAmSat Corp.
694,750			Term Loan, 7.36%, Maturing January 3, 2014	675,934
			Paxson Communications Corp.
850,000			Term Loan, 8.61%, Maturing January 15, 2012	833,000
			SFX Entertainment
369,865			Term Loan, 8.10%, Maturing June 21, 2013	358,769
			Tyrol Acquisition 2 SAS
250,000		EUR	Term Loan, 6.37%, Maturing January 19, 2015	333,570
250,000		EUR	Term Loan, 6.62%, Maturing January 19, 2016	335,164
			Univision Communications, Inc.
200,000			Term Loan, 7.82%, Maturing March 29, 2009	195,400
122,315			Term Loan, 0.00%, Maturing September 29, 2014 (2)	113,318
1,902,685			Term Loan, 7.61%, Maturing September 29, 2014	1,762,719
			Young Broadcasting, Inc.
245,000			Term Loan, 7.88%, Maturing November 3, 2012	234,128

$	493,750		Term Loan, 7.88%, Maturing November 3, 2012	$	471,840
				$	8,181,119

Rail Industries — 0.1%
			RailAmerica, Inc.
$	450,000		Term Loan, 7.61%, Maturing August 14, 2008	$	445,500
				$	445,500

Retailers (Except Food and Drug) — 1.2%
			Coinmach Laundry Corp.
$	1,118,191		Term Loan, 7.88%, Maturing December 19, 2012	$	1,104,213
			Harbor Freight Tools USA, Inc.
479,009			Term Loan, 7.61%, Maturing July 15, 2010	465,437
			Mapco Express, Inc.
444,010			Term Loan, 8.11%, Maturing April 28, 2011	442,345
			Neiman Marcus Group, Inc.
205,696			Term Loan, 7.11%, Maturing April 5, 2013	197,429
			Oriental Trading Co., Inc.
300,000			Term Loan, 11.36%, Maturing January 31, 2013	288,000
470,250			Term Loan, 7.59%, Maturing July 31, 2013	446,738
			Rent-A-Center, Inc.
315,832			Term Loan, 7.12%, Maturing November 15, 2012	309,812
			Rover Acquisition Corp.
422,875			Term Loan, 7.61%, Maturing October 26, 2013	405,079
			Savers, Inc.
102,021			Term Loan, 8.11%, Maturing August 11, 2012	100,491
116,192			Term Loan, 8.11%, Maturing August 11, 2012	114,449
			The Yankee Candle Company, Inc.
199,500			Term Loan, 7.36%, Maturing February 6, 2014	189,525
				$	4,063,518

Steel — 0.1%
			Niagara Corp.
$	300,000		Term Loan, 10.36%, Maturing June 29, 2014	$	300,750
				$	300,750

Surface Transport — 0.5%
			Oshkosh Truck Corp.
$	547,250		Term Loan, 7.11%, Maturing December 6, 2013	$	529,934
			Sirva Worldwide, Inc.
322,082			Term Loan, 12.61%, Maturing December 1, 2010	261,960
			Swift Transportation Co., Inc.
751,163			Term Loan, 8.38%, Maturing May 10, 2014	670,413
			Vanguard Car Rental USA
333,688			Term Loan, 8.34%, Maturing June 14, 2013	331,081
				$	1,793,388

Telecommunications — 2.4%
			American Cellular Corp.
$	299,250		Term Loan, 7.36%, Maturing March 15, 2014	$	296,320
			BCM Luxembourg, Ltd.
375,000		EUR	Term Loan, 5.90%, Maturing September 30, 2014	499,684
375,000		EUR	Term Loan, 6.15%, Maturing September 30, 2015	503,236
			Centennial Cellular Operating Co., LLC
692,695			Term Loan, 7.36%, Maturing February 9, 2011	674,945
			Consolidated Communications, Inc.
1,000,000			Term Loan, 7.11%, Maturing July 27, 2015	985,000
			FairPoint Communications, Inc.
1,000,000			Term Loan, 7.13%, Maturing February 8, 2012	967,500
			Intelsat Bermuda, Ltd.
300,000			Term Loan, 7.86%, Maturing February 1, 2014	293,116

			Intelsat Subsuduary Holding Co.
$	297,750		Term Loan, 7.36%, Maturing July 3, 2013	$	289,934
			IPC Systems, Inc.
300,000		GBP	Term Loan, 8.27%, Maturing May 31, 2014	563,894
			Macquarie UK Broadcast Ventures, Ltd.
225,000		GBP	Term Loan, 7.92%, Maturing December 26, 2014	457,211
			NTelos, Inc.
482,712			Term Loan, 7.57%, Maturing August 24, 2011	470,644
			Stratos Global Corp.
321,750			Term Loan, 8.11%, Maturing February 13, 2012	315,717
			Syniverse Holdings, Inc.
283,053			Term Loan, 7.11%, Maturing February 15, 2012	283,229
			Triton PCS, Inc.
733,083			Term Loan, 8.57%, Maturing November 18, 2009	731,250
			Windstream Corp.
877,607			Term Loan, 6.86%, Maturing July 17, 2013	858,227
				$	8,189,907

Utilities — 1.3%
			AEI Finance Holding, LLC
$	75,414		Term Loan, 5.26%, Maturing March 30, 2012	$	73,906
574,586			Term Loan, 8.36%, Maturing March 30, 2014	563,094
			Astoria Generating Co.
375,000			Term Loan, 9.11%, Maturing August 23, 2013	369,580
			BRSP, LLC
528,756			Term Loan, 8.38%, Maturing July 13, 2009	531,400
			Calpine Corp.
249,375			DIP Loan, 7.61%, Maturing March 30, 2009	242,257
			Covanta Energy Corp.
164,948			Term Loan, 5.26%, Maturing February 9, 2014	161,546
334,214			Term Loan, 6.88%, Maturing February 9, 2014	327,321
			NRG Energy, Inc.
556,432			Term Loan, 7.11%, Maturing June 1, 2014	538,811
1,340,209			Term Loan, 7.11%, Maturing June 1, 2014	1,297,769
			NRG Holdings, Inc.
450,000			Term Loan, 0.00%, Maturing June 1, 2014 (2)	439,425
				$	4,545,109

Total Senior, Floating Rate Interests (identified cost $238,005,750)				$	236,269,604

Mortgage Pass-Throughs — 60.5%

Principal
Amount
(000’s omitted)		Security	Value
		Federal Home Loan Mortgage Corp.:
$	3,002	6.15%, with maturity at 2027	$	3,042,650
8,893		6.50%, with maturity at 2019	9,099,725
21,579		7.00%, with various maturities to 2024	22,461,098
5,681		7.50%, with maturity at 2024	6,074,146
14,690		8.00%, with various maturities to 2031 (4)	15,578,189
8,770		8.50%, with various maturities to 2031 (4)	9,612,152
911		9.00%, with maturity at 2031	998,051
918		9.50%, with various maturities to 2022	1,007,796
2,136		11.50%, with maturity at 2019 (5)	2,373,862
			$	70,247,669
		Federal National Mortgage Association:
$	3,272	5.50%, with maturity at 2029	$	3,242,202
4,423		6.332%, with maturity at 2032 (6)	4,503,444

$	15,323	6.50%, with various maturities to 2028 (4)	$	15,648,526
10,652		7.00%, with various maturities to 2032 (4)	11,028,597
17,013		7.50%, with various maturities to 2030 (4)	17,928,112
6,252		8.00%, with various maturities to 2029	6,737,436
1,329		8.50%, with maturity at 2027	1,423,151
1,376		9.00%, with various maturities to 2028	1,524,225
8,142		9.50%, with various maturities to 2031 (4)	9,099,008
3,324		10.00%, with various maturities to 2031	3,732,878
			$	74,867,579
		Government National Mortgage Association:
$	16,068	7.50%, with various maturities to 2025	$	17,080,516
8,817		8.00%, with various maturities to 2027 (4)	9,575,763
4,592		9.00%, with maturity at 2026	5,161,223
854		9.50%, with maturity at 2025	959,380
1,268		11.00%, with maturity at 2018	1,417,697
			$	34,194,579
		Collateralized Mortgage Obligations:
$	3,640	Federal Home Loan Mortgage Corp., Series 2137, Class Z, 6.00%, 3/15/29	$	3,675,004
4,416		Federal Home Loan Mortgage Corp., Series 2167, Class BZ, 7.00%, 6/15/29	4,600,252
5,636		Federal Home Loan Mortgage Corp., Series 2182, Class ZB, 8.00%, 9/15/29	5,980,991
833		Federal Home Loan Mortgage Corp., Series 2214, Class NC, 11.05009%, 8/15/21 (7)	917,606
307		Federal National Mortgage Association, Series 1989-89, Class H, 9.00%, 11/25/19	334,823
741		Federal National Mortgage Association, Series 1991-122, Class N, 7.50%, 9/25/21	778,485
6,260		Federal National Mortgage Association, Series 1993-84, Class M, 7.50%, 6/25/23	6,690,719
1,912		Federal National Mortgage Association, Series 1997-28, Class ZA, 7.50%, 4/20/27	2,024,711
1,676		Federal National Mortgage Association, Series 1997-38, Class N, 8.00%, 5/20/27	1,810,284
3,054		Federal National Mortgage Association, Series G-33, Class PT, 7.00%, 10/25/21	3,156,801
			$	29,969,676

Total Mortgage Pass-Throughs (identified cost $209,992,810)			$	209,279,503

Corporate Bonds & Notes — 2.1%

Principal
Amount
(000’s omitted)			Security	Value

Building and Construction — 0.2%
			Grohe Holding, Variable Rate
500		EUR	7.084%, 1/15/14 (6)	659,927
				$	659,927

Cable and Satellite Television — 0.8%
			Iesy Hessen & ISH NRW, Variable Rate
2,000		EUR	7.121%, 4/15/13 (6)	2,628,192
				$	2,628,192

Financial Intermediaries — 0.4%
			Centurion CDO 9 Ltd., Series 2005-9A
$	500		9.35%, 7/17/19 (3)	$	497,022
			ING Bank NV
1,000			10.80%, 6/12/08	1,000,000
				$	1,497,022

Index Linked Notes — 0.6%
		JP Morgan Chilean Inflation Linked Note
$	2,000	7.433%, 11/17/15 (8)	$	2,158,319
			$	2,158,319

Telecommunications — 0.1%
		Qwest Corp., Sr. Notes, Variable Rate
$	200	8.61%, 6/15/13 (6)	$	208,000
			$	208,000

Total Corporate Bonds & Notes (identified cost $6,798,912)			$	7,151,460

Sovereign Issues — 6.2%

Principal
Amount
(000’s omitted)		Security	Value

		Egyptian Treasury Bill
11,425	EGP	0.00%, 8/7/07	2,016,779
4,175	EGP	0.00%, 8/14/07	735,996
8,450	EGP	0.00%, 10/2/07	1,475,368
7,625	EGP	0.00%, 11/13/07	1,320,242
20,925	EGP	0.00%, 1/1/08	3,586,392
6,975	EGP	0.00%, 1/8/08	1,193,713
		Federal Republic of Brazil
4,481	BRL	10.00%, 1/1/14	2,282,933
		Ghanaian Treasury Bond
320	GHC	13.50%, 3/29/10 (3)	354,542
1,300	GHC	13.67%, 6/15/12 (3)	1,396,174
		Indonesia Government
30,000,000	IDR	11.00%, 12/15/12 (3)	3,573,171
		Kazakhstan Treasury Note
144,000	KZT	0.00%, 8/31/07 (3)	1,160,312
251,700	KZT	0.00%, 10/12/07 (3)	2,015,845
		Kenyan Treasury Bond
4,050	KES	9.50%, 3/23/09 (3)	61,748
		Mauritian Treasury Bill
5,800	MUR	0.00%, 9/28/07 (3)	184,323
5,900	MUR	0.00%, 9/28/07 (3)	187,506

Total Sovereign Issues (identified cost $20,757,029)			$	21,545,044

Call Options Purchased — 0.1%

Security	Contracts (000’s omitted)	Value
Euro Call Option, Expires 1/8/2009, Strike Price 1.3270 (3)	300	$	20,356
Euro Call Option, Expires 10/10/2008, Strike Price 1.2950 (3)	300	26,229
Euro Call Option, Expires 10/16/2008, Strike Price 1.2990 (3)	300	25,374
Euro Call Option, Expires 10/2/2008, Strike Price 1.2738 (3)	300	31,189
Euro Call Option, Expires 10/30/2008, Strike Price 1.3155 (3)	300	21,949
Euro Call Option, Expires 11/13/2008, Strike Price 1.3195 (3)	300	21,272
Euro Call Option, Expires 11/26/2008, Strike Price 1.3540 (3)	300	15,112
Euro Call Option, Expires 12/11/2008, Strike Price 1.3506 (3)	300	15,831
Euro Call Option, Expires 2/12/2009, Strike Price 1.3375 (3)	300	18,767

Euro Call Option, Expires 4/8/2009, Strike Price 1.3705 (3)	300	$	14,036
Euro Call Option, Expires 5/13/2009, Strike Price 1.3745 (3)	300	13,827
South Korean Won Call Option, Expires 3/3/2009, Strike Price 932.4 (3)	1,864,800	66,928
South Korean Won Call Option, Expires 6/2/2009, Strike Price 915.5 (3)	1,831,000	47,899

Total Call Options Purchased (identified cost, $253,428)		$	338,769

Put Options Purchased — 0.0%

Security	Contracts (000’s omitted)	Value

Euro Put Option, Expires 1/8/2009, Strike Price 1.3270 (3)	300	$	5,568
Euro Put Option, Expires 10/10/2008, Strike Price 1.2950 (3)	300	2,583
Euro Put Option, Expires 10/16/2008, Strike Price 1.2990 (3)	300	2,850
Euro Put Option, Expires 10/2/2008, Strike Price 1.2738 (3)	300	1,573
Euro Put Option, Expires 10/30/2008, Strike Price 1.3155 (3)	300	4,049
Euro Put Option, Expires 11/13/2008, Strike Price 1.3195 (3)	300	4,472
Euro Put Option, Expires 11/26/2008, Strike Price 1.3540 (3)	300	7,950
Euro Put Option, Expires 12/11/2008, Strike Price 1.3506 (3)	300	7,679
Euro Put Option, Expires 2/12/2009, Strike Price 1.3375 (3)	300	6,846
Euro Put Option, Expires 4/8/2009, Strike Price 1.3705 (3)	300	11,133
Euro Put Option, Expires 5/13/2009, Strike Price 1.3745 (3)	300	11,954
South Korean Won Put Option, Expires 3/3/2009, Strike Price 932.4 (3)	1,864,800	16,280
South Korean Won Put Option, Expires 6/2/2009, Strike Price 915.5 (3)	1,831,000	29,168

Total Put Options Purchased (identified cost, $249,778)		$	112,105

Short-Term Investments — 6.4%

	Interest/Principal
Description	(000’s omitted)			Value
State Street Bank and Trust Time Deposit, 5.28%, 8/1/07	$	1,550,000		$	1,550,000
Euro Time Deposit, 3.85%, 8/1/07	2,060,441		EUR	2,820,434
British Pound Sterling Overnight Deposit, 5.60%, 8/1/07	326,074		GBP	662,599
Investment in Cash Management Portfolio, 4.86% (9)	15,052,718			17,191,255

Total Short-Term Investments (identified cost, $22,224,288)	$	22,224,288

Gross Investments — 143.6% (identified cost $498,281,995)	$	496,920,773

Less Unfunded Loan Commitments — (0.3%)	$	(1,112,247	)

Net Investments — 143.3% (identified cost $497,169,748)	$	495,808,526

Other Assets, Less Liabilities — (43.3)%	$	(149,698,453	)

Net Assets — 100.0%	$	346,110,073

BRL	-	Brazilian Real
EGP	-	Egyptian Pound
EUR	-	Euro
GBP	-	British Pound Sterling

GHC	-	Ghanaian Cedi
IDR	-	Indonesian Rupiah
KES	-	Kenyan Shilling
KZT	-	Kazakhstan Tenge
MUR	-	Mauritian Rupee

(1)		Senior floating-rate interests often require prepayments from excess cash flows or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the senior floating-rate interests will have an expected average life of approximately two to three years. The stated interest rate represents the weighted average interest rate of all contracts within the senior loan facility. Senior Loans typically have rates of interest which are redetermined either daily, monthly, quarterly or semi-annually by reference to a base lending rate, plus a premium. These base lending rates are primarily the London-Interbank Offered Rate (LIBOR), and secondarily the prime rate offered by one or more major United States banks (the Prime Rate) and the certificate of deposit (CD) rate or other base lending rates used by commercial lenders.
(2)		Unfunded or partially unfunded loan commitments. The Fund may enter into certain credit agreements whereby all or a portion of which may be unfunded. The Fund is obligated to fund these commitments at the borrower’s discretion.
(3)		Security valued at fair value using methods determined in good faith by or at the direction of the Trustees.
(4)		All or a portion of these securities were on loan at July 31, 2007.
(5)		Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.
(6)		Adjustable rate securities. Rates shown are the rates at period end.
(7)		Rate shown is a weighted average fixed-rate coupon that changes/updates monthly.
(8)		Security pays 3.8% coupon and accrues principal based on annual increases in the Chilean UF Rate, for an effective yield of 7.433%.
(9)		Affiliated investment company available to Eaton Vance portfolios and funds which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of July 31, 2007. Net income allocated from this investment for the three months ended July 31, 2007 was $120,226.
(10)		This Senior Loan will settle after July 31, 2007, at which time the interest rate will be determined.

A summary of financial instruments at July 31, 2007 is as follows:

Futures Contracts

Expiration Date	Contracts	Position	Aggregate Cost			Value			Net Unrealized Depreciation
09/07	21 Japan 10 Year Bond	Short	$	(2,793,084,210	)	$	(2,793,210,000	)	$	(125,790	)

Description of the underlying instruments to futures contracts: Japanese Government Bonds (JGB) having a maturity of 7 years or more but less than 11 years.

Forward Foreign Currency Exchange Contracts

Sales

			Net Unrealized
Settlement			Appreciation
Date(s)	Deliver	In exchange for	(Depreciation)
8/02/07	Brazilian Real	United States Dollar
	19,483,600	10,300,452	$	(117,193	)
8/02/07	Canadian Dollar	United States Dollar
	4,000,000	3,834,429	88,147
8/07/07	Canadian Dollar	United States Dollar
	4,020,000	3,842,544	77,095
8/31/07	Euro	United States Dollar
	37,683,712	51,548,416	(85,935		)
8/31/07	British Pound Sterling	United States Dollar
	8,561,973	17,373,442	(18,219		)
8/02/07	New Zealand Dollar	United States Dollar
	5,038,110	3,981,644	107,841
8/16/07	New Zealand Dollar	United States Dollar
	5,038,110	3,872,039	2,917
			$	54,653

Purchases

			Net Unrealized
Settlement			Appreciation
Date(s)	Acquire	In exchange for	(Depreciation)
8/02/07	Brazilian Real	United States Dollar
	19,483,600	10,065,006	$	352,639
9/05/07	Brazilian Real	United States Dollar
	19,483,600	10,252,651	105,505
8/31/07	Botswana Pula	United States Dollar
	2,160,000	348,408	(2,040		)
8/06/07	Hungarian Forint	Euro
	329,000,000	1,337,643	(39,805		)
8/13/07	Indonesian Rupiah	United States Dollar
	15,000,000,000	1,660,027	(34,421		)
8/21/07	Indonesian Rupiah	United States Dollar
	36,929,375,000	4,067,112	(65,676		)

8/06/07	Indian Rupee	United States Dollar
	137,250,000	3,382,625	15,742
8/07/07	Icelandic Kroner	Euro
	329,144,000	3,888,638	54,374
8/20/07	Icelandic Kroner	Euro
	376,674,800	4,512,967	(45,798	)
9/17/07	Kenya Shilling	United States Dollar
	8,665,000	123,257	5,530
10/05/07	Kenya Shilling	United States Dollar
	11,200,000	167,702	(1,239	)
8/03/07	Kazakhstan Tenge	United States Dollar
	66,000,000	557,432	(23,322	)
8/16/07	Mexican Peso	United States Dollar
	19,200,000	1,780,003	(26,650	)
8/27/07	Mexican Peso	United States Dollar
	18,600,000	1,725,001	(27,532	)
8/06/07	Malaysian Ringgit	United States Dollar
	13,500,000	3,943,102	(34,436	)
8/13/07	Malaysian Ringgit	United States Dollar
	6,000,000	1,743,071	(5,326	)
8/14/07	Malaysian Ringgit	United States Dollar
	23,298,135	6,767,009	(18,994	)
8/20/07	Malaysian Ringgit	United States Dollar
	17,250,000	5,021,688	(24,058	)
8/02/07	New Zealand Dollar	United States Dollar
	5,038,110	3,876,826	(3,023	)
8/03/07	Philippines Peso	United States Dollar
	129,250,000	2,797,437	53,100
8/08/07	Philippines Peso	United States Dollar
	129,250,000	2,860,589	(10,785	)
8/13/07	Philippines Peso	United States Dollar
	129,250,000	2,810,149	38,922
8/17/07	Philippines Peso	United States Dollar
	129,250,000	2,861,856	(13,371	)
8/06/07	Polish Zloty	Euro
	49,735,000	13,132,075	(8,570	)
8/06/07	Romanian Leu	Euro
	27,145,000	8,414,445	235,751
8/24/07	Serbian Dinar	Euro
	216,000,000	2,649,332	66,494
8/06/07	Turkish Lira	United States Dollar
	5,338,861	4,195,755	(24,031	)
8/20/07	Turkish Lira	United States Dollar
	3,539,861	2,737,923	14,691
10/04/07	Ugandan Shilling	United States Dollar
	217,450,000	122,721	7,294
10/15/07	Ugandan Shilling	United States Dollar
	384,796,000	216,909	12,894
8/07/07	Zambia Kwacha	United States Dollar
	712,500,000	174,705	8,377

11/07/07	Zambia Kwacha	United States Dollar
	712,500,000	171,472	9,859
			$	572,095

At July 31, 2007, the Fund had sufficient cash and/or securities to cover potential obligations arising from open futures and forward foreign currency exchange contracts, as well as margin requirements on open futures contracts.

Credit Default Swaps

The Fund has entered into credit default swaps whereby the Fund is buying or selling protection against default exposing the Fund to risks associated with changes in credit spreads of the underlying instrument.

Counterparty	Reference Entity	Buy/Sell	Notional Amount (000s)		Pay/Receive Annual Fixed Rate		Termination Date	Net Unrealized Appreciation (Depreciation)
Credit Suisse First Boston, Inc.:	Turkey (Republic of)	Buy	$	10,000	2.01	%	3/20/10	$	(185,645	)

	Philippines (Republic of the)	Buy	5,000		2.15		9/20/11	(13,680		)

	Italy	Buy	6,800		0.20		12/20/16	(19,219		)

JPMorgan Chase Bank:	Indonesia	Buy	10,000		2.09		9/20/11	88

	Philippines (Republic of the)	Buy	5,000		2.17		9/20/11	(17,278		)

	Turkey (Republic of)	Buy	10,000		2.00		3/20/10	(183,216		)

Lehman Brothers, Inc.:	Venezuela (Republic of)	Buy	2,500		2.22		12/20/16	270,929
								$	(148,021	)

Interest Rate Swaps

Counterparty	Notional Amount		Fund Pay/Receive Floating Rate	Floating Rate Index	Annual Fixed Rate		Termination Date	Net Unrealized Appreciation (Depreciation)
JP Morgan Chase Bank	3,693,637	BRL	Pay	Brazil Interbank Deposit Rate	12.73	%	January 2, 2012	$	146,467
JP Morgan Chase Bank	4,309,749	BRL	Pay	Brazil Interbank Deposit Rate	10.35	%	January 2, 2012	(69,508		)
Barclays Bank PLC	12,000,000	MYR	Pay	KLIBOR	3.85	%	March 27, 2012	(35,659		)
Merrill Lynch Capital Services	80,500,000	INR	Receive	MIBOR	7.85	%	March 30, 2012	(34,832		)
								$	6,468

BRL		Brazilian Real
INR		Indian Rupee
MYR		Malaysian Ringgit
KLIBOR		Kuala Lumpur Interbank Offered Rate
MIBOR		Mumbai Interbank Offered Rate

The cost and unrealized appreciation (depreciation) in value of the investments owned by the Fund at July 31, 2007, as computed on a federal income tax basis, were as follows:

Aggregate cost	$	498,449,267
Gross unrealized appreciation	$	5,799,658
Gross unrealized depreciation	(8,440,399		)
Net unrealized depreciation	$	(2,640,741	)

The unrealized appreciation on foreign currency, swap contracts, financial futures contracts and forward contracts at July 31, 2007 on a federal income tax basis was $441,642.

Item 2. Controls and Procedures

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

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

Signatures

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

Eaton Vance Short Duration Diversified Income Fund

By:	/s/ Thomas E. Faust Jr.
	Thomas E. Faust Jr.
	President

Date:	September 24, 2007

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

By:	/s/ Thomas E. Faust Jr.
	Thomas E. Faust Jr.
	President

Date:	September 24, 2007

By:	/s/ Barbara E. Campbell
	Barbara E. Campbell
	Treasurer

Date:	September 24, 2007