Parametric Structured International Equity Fund (I)

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, 2012
4/30/2012	as of Apr 30, 2012
	3 Months	YTD	1 Year	3 Years	5 Years	Life of Fund
Fund at NAV	3.85	8.57	-11.40	—	—	2.78
MSCI EAFE Index²	3.19	8.69	-12.82	11.77	-4.72	0.96
3/31/2012	as of Mar 31, 2012
Fund at NAV	9.74	9.74	-4.75	—	—	3.44
MSCI EAFE Index²	10.86	10.86	-5.77	17.11	-3.51	2.00
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 Apr 30, 2012
Class I Inception	04/01/2010
Investment Objective	Long-term capital appreciation
Total Net Assets of Fund	$55.5M
Minimum Investment	$250000
Expense Ratio (Gross)³	1.97%
Expense Ratio (Net)^3,4	1.25%
CUSIP	277923389

Top 10 Holdings (%)^5,6 as of Apr 30, 2012
Nestle SA
SAP AG
ENI S.p.A.
Novo Nordisk A/S
Royal Dutch Shell PLC (CL A)
Statoil ASA
Commonwealth Bank of Australia
Roche Holding AG
Novartis AG
Anheuser-Busch InBev
Total	12.98

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.

1. Source: World Bank using most recently available data. Listed companies are the domestically incorporated companies listed on the country's stock exchange at the end of the year. Market capitalization is the total dollar market value of all of a company's outstanding shares.
2. 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.
3. Source: Fund prospectus.
4. Net expense ratio reflects a contractual expense reimbursement that continues through 5/31/12. 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 Mar 31, 2012
4/30/2012	as of Apr 30, 2012
	3 Months	YTD	1 Year	3 Years	5 Years	Life of Fund
Fund at NAV	3.85	8.57	-11.40	—	—	2.78
MSCI EAFE Index²	3.19	8.69	-12.82	11.77	-4.72	0.96
3/31/2012	as of Mar 31, 2012
Fund at NAV	9.74	9.74	-4.75	—	—	3.44
MSCI EAFE Index²	10.86	10.86	-5.77	17.11	-3.51	2.00
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.

Calendar Year Returns (%)
	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Fund at NAV	—	—	—	—	—	—	—	—	—	-9.97
MSCI EAFE Index²	-15.94	38.59	20.25	13.54	26.34	11.17	-43.38	31.78	7.75	-12.14

Fund Facts
Expense Ratio (Gross)³	1.97%
Expense Ratio (Net)^3,4	1.25%
Class I Inception	04/01/2010
Distribution Frequency	Annually

NAV History
Date	NAV	NAV Change
May 15, 2012	$9.59	$-0.12
May 14, 2012	$9.71	$-0.18
May 11, 2012	$9.89	$-0.01
May 10, 2012	$9.90	$0.01
May 09, 2012	$9.89	$-0.10
May 08, 2012	$9.99	$-0.09
May 07, 2012	$10.08	$0.04
May 04, 2012	$10.04	$-0.15
May 03, 2012	$10.19	$-0.04
May 02, 2012	$10.23	$-0.06

Distribution History⁷
Ex-Date	Distribution	Reinvest NAV
Dec 28, 2011	$0.22470	$9.32
Dec 29, 2010	$0.08240	$10.76
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 History⁷
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 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.

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding.

About Risk

2. 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.
3. Source: Fund prospectus.
4. Net expense ratio reflects a contractual expense reimbursement that continues through 5/31/12. Without the reimbursement, performance would have been lower.
7. A portion of the Fund's returns may be comprised of return of capital or short term capital gains. The Fund will determine the tax characteristics of all Fund distributions after the end of the calendar year and will provide shareholders such information at that time. Please consult your tax advisor for further information.

Portfolio

Asset Mix (%)⁵ as of Apr 30, 2012
Foreign Common Stocks and ADR's	99.12
Cash & Equivalents	0.88
Total	100.00

Portfolio Statistics as of Apr 30, 2012
Median Market Cap	$5.3B
Price/Earnings Ratio	12.87
Number of Holdings	346
Price/Book Ratio	1.67
Countries Represented:	22

GICS Sector Breakdown (%)⁵ as of Apr 30, 2012
Sector	Fund	MSCI EAFE Index²
Consumer Discretionary	10.94	10.78
Consumer Staples	11.78	11.48
Energy	8.48	8.62
Financials	14.11	22.21
Health Care	11.09	9.65
Industrials	12.61	12.61
Information Technology	6.16	4.69
Materials	9.33	10.32
Telecom Services	7.88	5.40
Utilities	6.74	4.24
Cash	0.88	0.00

Assets by Country (%)⁵ as of Apr 30, 2012
UK	13.27
Japan	13.00
France	6.75
Australia	6.75
Switzerland	6.58
Germany	6.50
Hong Kong	4.88
Singapore	4.66
Netherlands	4.38
Sweden	4.36
View All

Geographic Mix (%)⁵ as of Apr 30, 2012
Europe	46.82
Asia/Pacific	17.23
United Kingdom	13.27
Japan	13.00
Eastern Europe	6.59
Middle East	3.12

Fund Holdings (%)^5,8 as of Mar 31, 2012
Holding	% of Net Assets
Nestle SA	1.5874%
SAP AG	1.5409%
ENI SpA	1.3748%
Statoil ASA	1.3100%
Novo Nordisk A/S	1.2867%
Royal Dutch Shell PLC	1.2378%
Roche Holding AG	1.2337%
Commonwealth Bank of Australia	1.1806%
L'Oreal SA	1.1230%
Anheuser-Busch InBev NV	1.1180%
View All

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding.

About Risk

2. 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.
5. Percent of total net assets.
8. Includes unaudited securities holdings (which exclude any derivatives positions.) Portfolio characteristic information (such as sector weightings, top ten holdings, etc.) presented for the Fund or Portfolio (if applicable) may differ slightly from the information listed if presented as of trade date. Due to rounding, holdings of less than 0.00005% may show as 0.0000%. Portfolio profile subject to change due to active management.

Insights & Analysis

Quarterly Commentary

A Word On The Markets as of Mar 31, 2012

Developed international markets, as measured by the MSCI EAFE Index (the Index),² posted a strong gain of 10.86% in the first quarter of 2012. Within the index, stocks rallied 5.33% in January, 5.74% in February and slightly pulled back -0.46% in March, as investors appeared to show renewed optimism on progress with the resolution of the European debt crisis.

At the regional level, the MSCI Europe Index was up 10.66%, led by Germany (+20.9%), Belgium (+19.0%) and Denmark (+17.8%)—a countries that benefited most from the debt crisis slowdown. Spain ( 3.3%) was the worst performer, followed by Portugal (+1.6%). Reflecting positive global outlook, the MSCI Pacific Index was also up and returned 11.27% with strong positive returns by Singapore (+19.3%), New Zealand (+16.3%), Hong Kong (+13.4%), Japan (+11.3%) and lagging Australia (+9.0%).

The markets appeared to show some sign of reversals from the previous periods. Within the MSCI EAFE Index, the best-performing economic sectors were the consumer discretionary and financials sectors, which were up 20% and 17%, respectively. The telecommunication services sector was the worst-performing sector at -0.47%.

Performance Summary

During strong upward trending market periods, the Fund's class A shares underperformed the Index at net asset value for the quarter. The Fund underperformed its MSCI EAFE benchmark by -1.21% and returned 9.65% at net asset value for the quarter ending March 31, 2012.

Contributors

The top country contributors to Fund performance for the quarter to the Index were the Fund's overweights to Finland and Singapore. With the aim to reduce sector concentration relative to the benchmark, an overweight to the consumer staples and information technology sectors were the top contributors to performance.

Detractors

The top detractor to the Fund's performance relative to the Index was an underweight to Japanese stocks. Additional detractors from the Fund's relative performance were an underweight to the financials sector and an overweight to the utilities sector as compared to the Index.

Investment Outlook And Fund Positioning

Parametric's international equity investment strategy relies on a rules-based approach, in combination with a rebalancing discipline to avoid concentration, and is aimed to capture long-term capital appreciation.

Top 10 Holdings (%)^5,6 as of Mar 31, 2012
Nestle SA	1.60
SAP AG	1.55
ENI S.p.A.	1.39
Statoil ASA	1.32
Novo Nordisk A/S	1.29
Royal Dutch Shell PLC	1.25
Roche Holding AG	1.24
Commonwealth Bank of Australia	1.19
Anheuser-Busch InBev	1.13
L'Oreal SA	1.13
Total	13.09

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.

Portfolio profile subject to change due to active management. Percentages may not total 100% due to rounding.

About Risk

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

Management

Biography

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

Other funds managed

Biography

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.