Atlanta Capital SMID-Cap Fund (A)

Overview


The Fund's downside protection has helped investors returns over the long-term.¹ For the 5-year period ended 12/31/11. Fund at NAV SMID Cap Stocks

Average Annual Returns (%) as of Dec 31, 2011
1/31/2012	as of Jan 31, 2012
	3 Months	YTD	1 Year	3 Years	5 Years	Life of Fund
Fund at NAV	6.77	3.67	8.17	26.09	8.41	8.71
Fund w/Max Sales Charge	0.65	-2.32	1.97	23.62	7.14	8.05
Russell 2500 Index²	6.52	6.65	2.60	24.84	2.01	7.07
12/31/2011	as of Dec 31, 2011
Fund at NAV	17.24	5.44	5.44	21.33	8.05	8.38
Fund w/Max Sales Charge	10.46	-0.61	-0.61	18.95	6.77	7.72
Russell 2500 Index²	14.52	-2.51	-2.51	18.41	1.24	6.43
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns for other classes of shares offered by the Fund are different. Performance less than one year is cumulative. Total return prior to the commencement of the class reflects returns of another Fund class that invests in the same Portfolio. Prior returns are adjusted to reflect applicable sales charge (but were not adjusted for other expenses). If adjusted for other expenses, returns would be lower. Max Sales Charge: 5.75%.

Fund Facts as of Jan 31, 2012
Class A Inception	11/28/2003
Performance Inception	04/30/2002
Investment Objective	Long-term capital growth
Total Net Assets of Fund	$2.0B
Minimum Investment	$1000
Expense Ratio (Gross)³	1.38%
Expense Ratio (Net)^3,4	1.25%
CUSIP	277902656

Top 10 Holdings (%)^5,6 as of Jan 31, 2012
Markel Corp.
Affiliated Managers
Morningstar Inc.
LKQ Corp.
HCC Insurance Holdings Inc.
Dentsply Int'l Inc.
John Wiley & Sons
Henry Schein
O'Reilly Automotive
Ansys Inc.
Total	31.62

Portfolio Management
Charles B. Reed, CFA			Managed Fund since inception
William O. Bell IV, CFA			Managed Fund since 2004
W. Matthew Hereford, CFA			Managed Fund since 2004

Fund invests in an affiliated investment company (Portfolio) with the same objective(s) and policies as the Fund. References to investments are to the Portfolio's holdings. Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding.

About Risk

Fund share values are sensitive to stock market volatility. Smaller companies are generally subject to greater price fluctuations, limited liquidity, higher transaction costs and higher investment risk than larger, established companies. No Fund is a complete investment program and you may lose money investing in a Fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.

1. Source: Zephyr. SMID Cap Stocks are represented by the Russell 2500 Index. Rising and declining markets are determined by the quarterly positive or negative returns for the index. Full market cycle examines the entire period.
2. Russell 2500 Index is an unmanaged index of approximately 2,500 small- and mid-cap U.S. stocks. It is not possible to invest directly in an index. Historical performance of the index illustrates market trends and does not represent the past or future performance of the fund.
3. Source: Fund prospectus.
4. Net expense ratio reflects a contractual expense reimbursement that continues through 1/31/13. Without the reimbursement, performance would have been lower.
5. Percent of total net assets.
6. Top 10 holdings exclude cash and equivalents.

Performance

Average Annual Returns (%) as of Dec 31, 2011
1/31/2012	as of Jan 31, 2012
	3 Months	YTD	1 Year	3 Years	5 Years	Life of Fund
Fund at NAV	6.77	3.67	8.17	26.09	8.41	8.71
Fund w/Max Sales Charge	0.65	-2.32	1.97	23.62	7.14	8.05
Russell 2500 Index²	6.52	6.65	2.60	24.84	2.01	7.07
12/31/2011	as of Dec 31, 2011
Fund at NAV	17.24	5.44	5.44	21.33	8.05	8.38
Fund w/Max Sales Charge	10.46	-0.61	-0.61	18.95	6.77	7.72
Russell 2500 Index²	14.52	-2.51	-2.51	18.41	1.24	6.43
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns for other classes of shares offered by the Fund are different. Performance less than one year is cumulative. Total return prior to the commencement of the class reflects returns of another Fund class that invests in the same Portfolio. Prior returns are adjusted to reflect applicable sales charge (but were not adjusted for other expenses). If adjusted for other expenses, returns would be lower. Max Sales Charge: 5.75%.

Calendar Year Returns (%)
	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Fund at NAV	—	26.78	18.55	4.51	14.43	11.74	-26.20	34.94	25.53	5.44
Russell 2500 Index²	-17.80	45.51	18.29	8.11	16.17	1.38	-36.79	34.39	26.71	-2.51

Fund Facts
Expense Ratio (Gross)³	1.38%
Expense Ratio (Net)^3,4	1.25%
Class A Inception	11/28/2003
Performance Inception	04/30/2002
Distribution Frequency	Annually

Risk Measures (3 Year)⁷ as of Jan 31, 2012
Alpha	3.49
Beta	0.88
R-Squared	94.78
Standard Deviation	20.92
Sharpe Ratio	1.24

Morningstar™ Ratings as of Jan 31, 2012
Time Period	Rating	Rating (Load Waived)	Funds in Mid-Cap Growth Category
Overall			659
3 Years			659
5 Years			595
Based on Risk-Adjusted Returns. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. © 2011 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers is responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on how a fund ranks on a Morningstar Risk-Adjusted Return measure against other funds in the same category. This measure takes into account variations in a fund's monthly performance after adjusting for sales loads (except for load-waived A shares) redemption fees, and the risk-free rate, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Load-waived A share star ratings do not include any front-end sales load and are intended for those investors who have access to such purchase terms (e.g., plan participants of a defined contribution plan). Not all A share mutual funds for which Morningstar calculates a load-waived A share star rating may actually waive their front-end sales load. Therefore, Morningstar strongly encourages investors to contact their investment professional to determine whether they are eligible to purchase the A share without paying the front load. The Morningstar Rating may differ among share classes of a mutual fund as a result of different sales loads and/or expense structure.

NAV History
Date	NAV	NAV Change
Feb 17, 2012	$16.20	$-0.03
Feb 16, 2012	$16.23	$0.24
Feb 15, 2012	$15.99	$-0.09
Feb 14, 2012	$16.08	$-0.02
Feb 13, 2012	$16.10	$0.13
Feb 10, 2012	$15.97	$-0.13
Feb 09, 2012	$16.10	$0.09
Feb 08, 2012	$16.01	$-0.04
Feb 07, 2012	$16.05	$0.01

Distribution History⁸
Ex-Date	Distribution	Reinvest NAV
No records in this table indicates that there has not been a distribution greater than .0001 within the past 3 years. Fund prospectus

Capital Gain History⁸
Ex-Date	Short-Term	Long-Term	Reinvest NAV
Dec 21, 2011	$0.03130	$0.05640	$14.90
Dec 22, 2010	$0.02860	$0.06010	$14.45
No records in this table indicates that there has not been a capital gain greater than .0001 within the past 3 years. Fund prospectus



Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is as of month-end for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. For the Eaton Vance Fund's performance as of the most recent month end, please refer to www.eatonvance.com. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns shown at NAV unless noted otherwise. Returns for other classes of shares offered by the Fund are different. It is not possible to invest in an index.

About Risk

Portfolio

Asset Mix (%)^5,6 as of Jan 31, 2012
U.S. Common Stocks	95.90
Cash & Equivalents	4.10
Total	100.00

Portfolio Statistics as of Jan 31, 2012
Median Market Cap:	$3.5B
Price/Earnings Ratio:	16.90
Number of Holdings:	50
Price/Book Ratio:	2.50

GICS Sector Breakdown (%)^5,6 as of Jan 31, 2012
Sector	Fund	Russell 2500 Index²
Consumer Discretionary	20.15	13.66
Consumer Staples	1.68	3.37
Energy	2.47	6.48
Financials	18.78	21.15
Health Care	12.12	10.34
Industrials	23.43	15.94
Information Technology	14.74	15.84
Materials	2.53	6.91
Telecom Services	0.00	0.99
Utilities	0.00	5.32
Cash	4.10	0.00

Market Cap Breakdown (%)^5,9 as of Jan 31, 2012
Less than $2 Billion	7.51
Between $2 Billion and $12 Billion	92.49
More than $12 Billion	0.00

Fund Holdings (%)^5,10 as of Sep 30, 2011
Holding	% of Net Assets
Markel Corp	4.4424%
O REILLY AUTOMOTIVE INC NEW COM	3.7638%
Morningstar Inc	3.6664%
Affiliated Managers Group Inc	3.4957%
HCC Insurance Holdings Inc	3.3111%
LKQ Corp	3.0987%
DENTSPLY International Inc	2.8968%
Henry Schein Inc	2.8165%
John Wiley & Sons Inc	2.7208%
Kirby Corp	2.6277%
View All

About Risk

Insights & Analysis

Quarterly Commentary

A Word On The Markets as of Dec 31, 2011

Political irresolution characterized most of the developed world during the fourth quarter of 2011, creating an atmosphere of uncertainty that subjected global equity markets to significant volatility. In the U.S., the congressional Super Committee failed to identify $1.2 trillion in federal spending cuts in November. Then, in December, Congress waffled once more and failed to approve until the twelfth hour a two-month extension of unemployment benefits and the payroll-tax holiday. In Europe, EU officials were unable to convince the markets that they had a viable plan to stem the region's sovereign debt crisis.

In spite of this, the U.S. economy displayed signs of economic growth in the fourth quarter, spurred largely by lower energy prices. Looking globally, manufacturing data showed expansion, including in China, where there have been concerns about slowing.

Despite extreme volatility during the fourth quarter, global equity markets generally posted solid positive returns. The MSCI EAFE Index¹¹ rose 3.33%, while the broader-based MSCI All Country World Index¹² rose 7.18% during the quarter. In the U.S., the S&P 500 Index¹³ added 11.82% during the quarter to finish up 2.11% for the calendar year, while the blue chip Dow Jones Industrial Average¹⁴ jumped 12.78%, posting a return of 8.38% for the year. Small-cap stocks outperformed large-caps during the quarter, with the Russell 2000 Index¹⁵ gaining 15.47% compared to 11.84% for the large-cap Russell 1000 Index¹⁶. Across capitalizations, value stocks outperformed growth stocks.

Performance Summary

For the fourth quarter of 2011, the Atlanta Capital SMID-Cap Fund outperformed its benchmark, the Russell 2500 Index², at net asset value.

The Fund's performance for the quarter exceeded the benchmark due primarily to stock selection. Relative to the benchmark, selection was most additive in industrials, information technology and financials. Stock selection detracted from relative performance in the consumer staples, health care and materials sectors
Overall, sector exposure contributed to the Fund's performance for the quarter. Low exposure to the energy, financials and health care sectors negatively impacted sector performance. The Fund's overweight in industrials and underweight of utilities positively impacted sector performance.

Contributors

Stock selection was the driver of performance for the quarter and contributed the most in the industrials sector, as 10 of the Fund's 13 holdings outpaced the benchmark's sector return of 20.5%. Selection within the information technology sector also benefitted performance relative to the benchmark as 5 of 8 names posted higher returns than the benchmark's sector return of 11.2%.

The top five performers for the quarter included two names in industrials (Acuity Brands and Carlisle Corp), two names in technology (Fair Isaac and Wright Express) and one name in financials (Umpqua Holdings).

Detractors

Stock selection within the consumer staples and materials sectors detracted from performance for the quarter. An underweight in energy, the benchmark's best-performing sector, also detracted.

Three of the Fund's worst five performers, Flir Systems, Factset Research and Solera Holdings, were within the information technology sector, while the remaining two, Columbia Sportswear and John Wiley & Sons, were in the consumer discretionary sector.

Investment Outlook And Fund Positioning

The global economy appears increasingly fragile given the weak state of the international banking system. We expect the high debt levels of developed economies will remain a drag on future growth, as governments may implement austerity programs in an attempt to balance budgets and reduce liabilities. However, we are finding what we believe to be opportunities amid the volatility and believe our companies may be well-positioned even in the low-growth environment we expect.

While there is no shortage of bad news in the financial press, we believe there are reasons for optimism. Stocks appear to be discounting a recession and we believe valuations look attractive. Our process remains focused on investing in quality businesses that we believe are capable of sustaining consistent earnings growth while maintaining a strong financial condition. We welcome the opportunity to invest in these businesses at the lower prices a market downturn may provide.

Top 10 Holdings (%)^5,6 as of Dec 31, 2011
Markel Corp.	4.48
O'Reilly Automotive	3.44
Affiliated Managers	3.41
Morningstar Inc.	3.40
LKQ Corp.	3.18
HCC Insurance Holdings Inc.	3.15
Dentsply Int'l Inc.	2.89
John Wiley & Sons	2.72
Henry Schein	2.66
Kirby Corp.	2.50
Total	31.83

The views expressed in this report are those of portfolio manager(s) and are current only through the date stated at the top of this page. These views are subject to change at any time based upon market or other conditions, and Eaton Vance disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. This commentary may contain statements that are not historical facts, referred to as "forward looking statements". The Fund's actual future results may differ significantly from those stated in any forward-looking statement, depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of Fund shares, the continuation of investment advisory, administrative and service contracts, and other risks discussed from time to time in the Fund's filings with the Securities and Exchange Commission.

About Risk

2. Russell 2500 Index is an unmanaged index of approximately 2,500 small- and mid-cap U.S. stocks. It is not possible to invest directly in an index. Historical performance of the index illustrates market trends and does not represent the past or future performance of the fund.
5. Percent of total net assets.
6. Top 10 holdings exclude cash and equivalents.
11. MSCI EAFE Index is an unmanaged index of equities in the developed markets, excluding the U.S. and Canada. It is not possible to invest directly in an index. Historical performance of the index illustrates market trends and does not represent the past or future performance of the fund. Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides no warranties, has not prepared or approved this report, and has no liability hereunder.
12. MSCI All Country World Index is an unmanaged free float-adjusted market-capitalization-weighted index designed to measure the equity market performance of developed and emerging markets. It is not possible to invest directly in an index. Historical performance of the index illustrates market trends and does not represent the past or future performance of the fund. Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides no warranties, has not prepared or approved this report, and has no liability hereunder.
13. S&P 500 Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance. It is not possible to invest directly in an index. Historical performance of the index illustrates market trends and does not represent the past or future performance of the fund.
14. Dow Jones Industrial Average is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry. It is not possible to invest directly in an index. Historical performance of the index illustrates market trends and does not represent the past or future performance of the fund.
15. Russell 2000 Index is an unmanaged index of 2,000 U.S. small-cap stocks. It is not possible to invest directly in an index. Historical performance of the index illustrates market trends and does not represent the past or future performance of the fund.
16. Russell 1000 Index is an unmanaged index of 1,000 U.S. large-cap stocks. It is not possible to invest directly in an index. Historical performance of the index illustrates market trends and does not represent the past or future performance of the fund.

Attribution

Sector Attribution as of Dec 31, 2011
3 Month Attribution	as of Dec 31, 2011
	Fund			Russell 2500 Index²			Attribution
Sectors	Average Weight	Total Return	Contrib. to Return	Average Weight	Total Return	Contrib. to Return	Allocation Effect	Selection Effect	Total Effect
Consumer Discretionary	20.77	15.19	3.28	13.83	14.61	2.07	0.07	0.02	0.09
Consumer Staples	1.75	3.94	0.06	3.47	10.19	0.36	0.10	-0.11	-0.02
Energy	2.44	27.40	0.62	6.80	22.28	1.40	-0.31	0.12	-0.19
Financials	18.59	16.65	3.04	20.68	14.50	2.99	0.02	0.40	0.42
Health Care	11.59	11.05	1.27	10.58	11.07	1.21	0.00	0.03	0.04
Industrials	23.10	27.03	6.05	15.29	20.47	3.00	0.50	1.27	1.77
Information Technology	14.43	19.52	2.76	15.90	11.17	1.83	0.05	1.14	1.19
Materials	3.51	11.69	0.44	6.68	14.73	1.00	0.01	-0.12	-0.11
Telecom Services	0.00	0.00	0.00	1.01	7.45	0.08	0.10	0.00	0.10
Utilities	0.00	0.00	0.00	5.76	10.36	0.58	0.34	0.00	0.34
Cash	3.82	0.00	0.00	0.00	0.00	0.00	-0.64	0.00	-0.64
Total	100.00	17.50	17.50	100.00	14.52	14.52	0.24	2.75	2.98
1 Year Attribution	as of Dec 31, 2011
Consumer Discretionary	20.81	21.42	4.21	13.94	-2.33	-0.27	0.06	4.73	4.79
Consumer Staples	2.67	20.11	0.49	3.35	21.00	0.58	-0.07	-0.21	-0.28
Energy	2.47	8.18	0.20	7.26	-3.48	-0.45	0.06	0.32	0.37
Financials	20.06	-9.70	-2.35	20.29	-4.44	-0.85	-0.07	-1.19	-1.27
Health Care	11.82	-0.28	-0.08	10.67	1.34	0.11	0.09	-0.24	-0.16
Industrials	21.82	12.00	3.10	14.86	-4.41	-0.49	0.08	3.45	3.52
Information Technology	13.41	7.04	1.05	16.10	-8.34	-1.30	0.19	2.33	2.52
Materials	3.00	2.97	0.01	6.87	-7.13	-0.56	0.17	0.40	0.57
Telecom Services	0.00	0.00	0.00	1.18	-15.31	-0.18	0.16	0.00	0.16
Utilities	0.00	0.00	0.00	5.49	17.72	0.90	-0.96	0.00	-0.96
Cash	3.94	0.05	0.00	0.00	0.00	0.00	-0.12	0.00	-0.12
Total	100.00	6.63	6.63	100.00	-2.51	-2.51	-0.43	9.56	9.14

Additional Notes

Source: Factset.

Attribution analysis shows the contribution of indicated factor exposures to a portfolio's relative total return versus a designated benchmark. Results are based on each day's ending holdings, and linked to generate attribution over longer periods. Portfolio returns do not reflect applicable expenses and trading costs, or variations in transaction prices from end of day values.

Allocation Effect

Measures portfolio's excess return due to over or under-weighting a sector.

About Risk

Management

Biography

Charles B. Reed, CFA

Vice President and Managing Director, Atlanta Capital Management
Joined Atlanta Capital 1998

Charles (Chip) Reed is a managing director—core equities and principal of Atlanta Capital Management Co., LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp. He serves as a portfolio manager on the firm's small- and SMID-cap team.

Prior to joining the firm in 1998, Chip was a portfolio manager with the Florida State Board of Administration responsible for managing their internal special situation equity fund.

Chip earned a B.S. in finance from Florida State University and is a CFA charterholder.

Education

B.S. Florida State University

Experience

Managed Fund since inception

Other funds managed

Atlanta Capital Select Equity Fund

Biography

William O. Bell IV, CFA

Vice President and Principal, Atlanta Capital Management
Joined Atlanta Capital 1999

Bill Bell is a vice president and principal of Atlanta Capital Management Co., LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp. He serves as a portfolio manager on the firm's small- and SMID-cap team.

Prior to joining the firm in the fall of 1999, Bill was a portfolio manager with the Florida State Board of Administration. He was responsible for managing their internal special situation equity fund.

Bill earned a B.A. in finance from Florida State University and is a CFA charterholder.

Education

B.A. Florida State University

Experience

Managed Fund since 2004

Other funds managed

Atlanta Capital Select Equity Fund

Biography

W. Matthew Hereford, CFA

Vice President and Principal, Atlanta Capital Management
Joined Atlanta Capital 2002

Matt Hereford is a vice president and principal of Atlanta Capital Management Co., LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp. He serves as a portfolio manager on the firm's small- and SMID-cap team.

Prior to joining the firm in December 2002, Matt was affiliated for five years with INVESCO, where he was responsible for managing their Concentrated Equity portfolio.

Matt earned a B.B.A. in international business from the University of Mississippi. He is a CFA charterholder and is a member of the Atlanta Society of Financial Analysts.