Overview

 

International exposure can be critical for building a diversified portfolio.1

Non-U.S. companies have continued to become a greater presence in the world markets.

  • United States
  • World ex U.S.

Not based on the return of any specific fund.

Average Annual Returns (%) as of Mar 31, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years Life of Fund
Fund at NAV -0.08 2.17 2.17 14.64 6.86 8.15
MSCI EAFE Index2 -0.64 0.66 0.66 17.56 7.21 16.01 8.00
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.

Fund Facts as of Mar 31, 2014

Investor Class Inception 04/01/2010
Investment Objective Long-term capital appreciation
Total Net Assets $88.4M
Minimum Investment $1000
Expense Ratio (Gross)3 1.51%
Expense Ratio (Net)3,4 1.05%
CUSIP 277923413

Top 10 Holdings (%)5,6 as of Mar 31, 2014

Nestle SA
Novo Nordisk A/S Class B
SAP AG
Eni S.p.A.
Linde AG
Anheuser-Busch InBev SA
DBS Group Holdings Ltd.
ASML Holding NV
Novartis AG
Statoil ASA
Total 11.33


Portfolio Management

David Stein, Ph.D Managed Fund since inception
Thomas Seto Managed Fund since inception

 

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. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. 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.


Performance

Average Annual Returns (%) as of Mar 31, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years Life of Fund
Fund at NAV -0.08 2.17 2.17 14.64 6.86 8.15
MSCI EAFE Index2 -0.64 0.66 0.66 17.56 7.21 16.01 8.00
Morningstar™ Foreign Large Blend Category7 -0.61 0.12 0.12 15.39 5.80 15.40
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.

Calendar Year Returns (%)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Fund at NAV -10.14 16.83 18.05
MSCI EAFE Index2 20.25 13.54 26.34 11.17 -43.38 31.78 7.75 -12.14 17.32 22.78

Fund Facts

Expense Ratio (Gross)3 1.51%
Expense Ratio (Net)3,4 1.05%
Investor Class Inception 04/01/2010
Distribution Frequency Annually


Risk Measures (3 Year)8 as of Mar 31, 2014

Alpha 0.32
Beta 0.89
R-Squared 96.53
Standard Deviation 15.27
Sharpe Ratio 0.44


Morningstar™ Ratings as of Mar 31, 2014

Time Period Rating Rating (Load Waived) Funds in
Foreign Large Blend
Category
Overall **** 701
3 Years **** 701
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.

© 2013 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
Apr 22, 2014 $12.80 $0.10
Apr 21, 2014 $12.70 $0.00
Apr 17, 2014 $12.70 $0.01
Apr 16, 2014 $12.69 $0.12
Apr 15, 2014 $12.57 $-0.03
Apr 14, 2014 $12.60 $0.05
Apr 11, 2014 $12.55 $-0.11
Apr 10, 2014 $12.66 $-0.20
Apr 09, 2014 $12.86 $0.17

Distribution History9

Ex-Date Distribution Reinvest NAV
Dec 26, 2013 $0.22970 $12.29
Aug 01, 2013 $0.00730 $11.60
Dec 27, 2012 $0.26670 $10.75
Dec 28, 2011 $0.20860 $9.30
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 History9

Ex-Date Short-Term Long-Term Reinvest NAV
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 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.

 

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. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. 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.


Portfolio

Asset Mix (%)5 as of Mar 31, 2014

Foreign Common Stocks 99.24
Cash & Equivalents 0.76
Total 100.00

Portfolio Statistics as of Mar 31, 2014

Median Market Cap $6.9B
Price/Earnings Ratio 15.01
Number of Holdings 542
Price/Book Ratio 1.84
Countries Represented 22


GICS Sector Breakdown (%)5 as of Mar 31, 2014

Sector Fund MSCI EAFE Index2
Consumer Discretionary 11.15 11.76
Consumer Staples 10.77 10.99
Energy 7.04 6.90
Financials 17.41 25.56
Health Care 9.73 10.44
Industrials 12.41 12.95
Information Technology 6.18 4.53
Materials 10.09 8.14
Telecom Services 7.51 4.96
Utilities 6.95 3.76
Cash 0.76 0.00

Assets by Country (%)5 as of Mar 31, 2014

UK 12.36
Japan 12.32
Germany 7.40
Switzerland 7.31
France 7.00
Australia 6.07
Sweden 5.27
Spain 4.75
Hong Kong 4.68
Italy 4.46
View All


Geographic Mix (%)5 as of Mar 31, 2014

Europe 57.57
Asia/Pacific 15.25
United Kingdom 12.36
Japan 12.32
Middle East 2.42
United States 7.63


Fund Holdings (%)5,10 as of Feb 28, 2014

Holding % of Net Assets
Novo Nordisk A/S 1.33%
Nestle SA 1.28%
SAP AG 1.20%
Linde AG 1.17%
Anheuser-Busch InBev NV 1.11%
DBS Group Holdings Ltd 1.10%
Eni SpA 1.08%
ASML Holding NV 1.00%
Roche Holding AG 0.93%
Novartis AG 0.92%
View All

 

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. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. 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.


Insights & Analysis

Quarterly Commentary

A Word On The Markets  as of Mar 31, 2014

Developed equity markets, as measured by the MSCI EAFE Index2, ended the first quarter of 2014 essentially flat, up only 0.66% for the three-month period. However, the Index remained near historic highs after a sustained two-year rise.

Performance was mixed, with about two-thirds of the countries in the Index up for the quarter. Israel was the strongest-performing country, largely due to buyout speculation in the health care space rather than a broad-based rally. Following Japan’s strong performance in 2013, it was the weakest-performing country for the first quarter of 2014, with worries prompted by weak economic data, a strengthening currency and a pending national sales tax hike. Signs of economic recovery in Europe drove equity returns higher in many countries that had been most impacted by the European debt crisis, including Italy, Ireland and Portugal.

Performance by sector was also split. Defensive sectors, including utilities and health care, were up for the quarter, while telecommunication services and consumer discretionary were down.

Performance Summary 

Parametric International Equity Fund (the Fund) outperformed its benchmark, the MSCI EAFE Index (the Index),2 for the quarter ended March 31, 2014, returning 2.17% for Investor Class shares at net asset value versus the Index’s 0.66% return.

  • The Fund’s emphasis on diversification11 via a system of target country weights and systematic rebalancing back to these target weights drove most of the outperformance relative to the Index. The diversification targets consistently have the Fund underweight large countries and overweight smaller countries.
  • During the quarter, many countries with larger Index representations (e.g., Japan, the United Kingdom and Germany) underperformed the Index, while many with smaller Index representations outperformed. Combined, these two sources of relative return contributed materially to the Fund’s outperformance.
  • In addition, the Fund’s emphasis on diversification within countries via a system of target sector weights and broad security representation helped performance versus the Index.

Average Annual Returns (%) as of Mar 31, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years Life of Fund
Fund at NAV -0.08 2.17 2.17 14.64 6.86 8.15
MSCI EAFE Index2 -0.64 0.66 0.66 17.56 7.21 16.01 8.00
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.

Fund Facts as of Mar 31, 2014

Investor Class Inception 04/01/2010
Expense Ratio (Gross)3 1.51%
Expense Ratio (Net)3,4 1.05%


Contributors 

Factors contributing to the Fund’s relative performance compared to the Index during the quarter:

  • The Fund’s underweight in Japan contributed to performance relative to the Index, as Japan’s market declined on signs of slowing growth and a pending increase in the national sales tax.
  • The Fund’s overweight in Denmark also lifted relative outperformance, as Danish company Novo Nordisk, a major Index constituent, rallied strongly on news of increased dividends and improved sales forecasts.
  • The Fund’s overweight in Israel further aided relative performance, due to a rally in the country’s health care sector.

Detractors 

Factors detracting from the Fund’s relative performance compared to the Index during the quarter:

  • The Fund’s underweight in Australia detracted from relative performance, as the Australian currency and equity markets rose on strong economic data, including higher-than-expected growth in the fourth quarter.
  • The Fund’s overweight in Hong Kong further detracted from relative performance, due to regional concerns based on the recent slowdown in China’s economy.
  • The Fund’s underweight in Switzerland also hurt relative performance.

Investment Outlook And Fund Positioning 

Markets around the world have recently been rocked by questions about future U.S. monetary policy. A stronger economy would presumably bode well for asset prices, but the prospect of less accommodative monetary conditions and rising interest rates may carry negative ramifications for stocks around the globe.

How does one invest in this space with so much short-term uncertainty? We believe that managing risk by broadly diversifying, avoiding concentrations and portfolio rebalancing are all key aspects that help address thoughtful investment decisions. Parametric’s developed international equity investment strategy relies on a rules-based approach, in combination with a systematic rebalancing discipline, to reduce concentrations, while emphasizing broad diversification in seeking its objective of long-term returns.

Top 10 Holdings (%)5,6 as of Mar 31, 2014

Nestle SA 1.30
Novo Nordisk A/S Class B 1.29
SAP AG 1.23
Eni S.p.A. 1.15
Linde AG 1.15
Anheuser-Busch InBev SA 1.13
DBS Group Holdings Ltd. 1.10
ASML Holding NV 1.09
Novartis AG 0.95
Statoil ASA 0.94
Total 11.33


 

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. Diversification cannot assure a profit or eliminate the risk of loss.

 

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. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. 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.


Attribution

 

No attribution information is available.

 

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. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. 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.


Management

Biography
David Stein, Ph.D

David Stein, Ph.D

Chief Investment Officer, Parametric Portfolio Associates
Joined Parametric Portfolio Associates 1996

David Stein is chief investment officer of Parametric Portfolio Associates LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp., leading the firm's investment, research and technology activities. He maintains a focus on Parametric's intellectual capital, and is dedicated to advancing the art and science of investment management in the presence of taxes.

David's experience in the investment industry dates to 1987. Prior to joining Parametric in 1996, he held senior research, development and portfolio management positions at GTE Investment Management Corp., The Vanguard Group and IBM Retirement Funds. He has additional experience as a research scientist with IBM Research Laboratories, where he designed computer hardware and software systems.

David earned both a B.S. and an M.S. from the University of Witwatersrand, South Africa, and a Ph.D. in applied mathematics from Harvard University.

David holds a number of patents and is published in multiple academic journals, including Mathematics of Operations Research, The Journal of Wealth Management and the Journal of Portfolio Management, among others. He is on the After-Tax Subcommittee of the AIMR-PPS standards committee and on the advisory board of the Journal of Wealth Management.

Education
  • B.S. and M.S., University of Witwatersrand, South Africa
  • Ph.D. Harvard University
Experience
  • Managed Fund since inception
Biography
Thomas Seto

Thomas Seto

Director of Portfolio Management, Parametric Portfolio Associates
Joined Parametric Portfolio Associates 1998

Tom Seto is managing director of portfolio management and a portfolio manager at Parametric Portfolio Associates LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp. He is responsible for all portfolio management activity at Parametric, including tax-managed core, OverlayOne and institutional structured equity strategies.

Prior to joining Parametric in 1998, Tom served as the head of U.S. Equity Index Investments at Barclays Global Investors, where he was responsible for portfolio management of all U.S. equity index strategies.

Tom earned a B.S. in electrical engineering from the University of Washington in 1985 and an M.B.A. in finance from the University of Chicago Booth School of Business in 1991.

Education
  • B.S. University of Washington
  • M.B.A Booth School of Business, University of Chicago
Experience
  • Managed Fund since inception

Fund Literature

Fund Literature

Annual Report

Commentary

Fact Sheet

Full Prospectus

Holdings-1st or 3rd fiscal quarters-www.sec.gov

Timothy Atwill on Systematic Alpha Investing

SAI

Think Performance Think Eaton Vance

Semi-Annual Report

Summary Prospectus

XBRL


 

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    Symbol:  

    NAV as of