Small-Cap Value Fund (A)

Overview


Historically, small-cap stocks have outperformed large-cap stocks.² (January 2002- December 2011) Small-Cap Stocks Large-Cap Stocks Not based on the return of any specific fund.

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	5.34	3.83	1.66	18.82	1.85	6.92
Fund w/Max Sales Charge	-0.74	-2.14	-4.20	16.49	0.65	6.27
Russell 2000 Value Index³	8.10	6.65	0.73	20.85	-0.90	6.61
12/31/2011	as of Dec 31, 2011
Fund at NAV	16.27	-1.68	-1.68	12.91	1.57	6.57
Fund w/Max Sales Charge	9.57	-7.37	-7.37	10.72	0.38	5.90
Russell 2000 Value Index³	15.97	-5.50	-5.50	12.36	-1.87	5.96
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. Max Sales Charge: 5.75%.

Fund Facts as of Jan 31, 2012
Class A Inception	06/28/2002
Investment Objective	Long-term total return
Total Net Assets of Fund	$35.0M
Minimum Investment	$1000
Expense Ratio (Gross)⁴	2.04%
Expense Ratio (Net)^4,5	1.45%
CUSIP	277905717

Top 10 Holdings (%)^6,7 as of Dec 31, 2011
Cleco Corp
JDA Software
Netgear, Inc.
AptarGroup
Westar Energy
Teleflex
Barnes Group
Portland Gen Elect Co
Old Dominion Freight Line
J&J Snack Foods
Total	25.25

Portfolio Management
Gregory R. Greene, CFA			Managed Fund since 2006
J. Bradley Ohlmuller, CFA			Managed Fund since 2005
Robert J. Milmore, CFA			Managed Fund since 2006

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. Diversification cannot assure a profit or eliminate the risk of loss.
2. Source: Zephyr. Small-cap stocks are represented by the Russell 2000 Index and large-cap stocks are represented by the S&P 500 Index, an unmanaged index of large-cap stocks.
3. Russell 2000 Value Index is an unmanaged index of U.S. small-cap value 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.
4. Source: Fund prospectus.
5. Net expense ratio reflects a contractual expense reimbursement that continues through 4/30/13. Without the reimbursement, performance would have been lower.
6. Percent of total net assets.
7. 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	5.34	3.83	1.66	18.82	1.85	6.92
Fund w/Max Sales Charge	-0.74	-2.14	-4.20	16.49	0.65	6.27
Russell 2000 Value Index³	8.10	6.65	0.73	20.85	-0.90	6.61
12/31/2011	as of Dec 31, 2011
Fund at NAV	16.27	-1.68	-1.68	12.91	1.57	6.57
Fund w/Max Sales Charge	9.57	-7.37	-7.37	10.72	0.38	5.90
Russell 2000 Value Index³	15.97	-5.50	-5.50	12.36	-1.87	5.96
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. Max Sales Charge: 5.75%.

Calendar Year Returns (%)
	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Fund at NAV	—	32.71	18.33	4.28	13.92	2.31	-26.59	24.32	17.78	-1.68
Russell 2000 Value Index³	-11.43	46.03	22.25	4.71	23.48	-9.78	-28.92	20.58	24.50	-5.50

Fund Facts
Expense Ratio (Gross)⁴	2.04%
Expense Ratio (Net)^4,5	1.45%
Class A Inception	06/28/2002
Distribution Frequency	Annually

Risk Measures (3 Year)⁸ as of Jan 31, 2012
Alpha	1.16
Beta	0.83
R-Squared	95.38
Standard Deviation	21.25
Sharpe Ratio	0.88

Morningstar™ Ratings as of Jan 31, 2012
Time Period	Rating	Rating (Load Waived)	Funds in Small Blend Category
Overall			580
3 Years			580
5 Years			486
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	$15.19	$0.05
Feb 16, 2012	$15.14	$0.28
Feb 15, 2012	$14.86	$-0.09
Feb 14, 2012	$14.95	$-0.09
Feb 13, 2012	$15.04	$0.18
Feb 10, 2012	$14.86	$-0.16
Feb 09, 2012	$15.02	$-0.03
Feb 08, 2012	$15.05	$-0.05
Feb 07, 2012	$15.10	$0.00

Distribution History⁹
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 History⁹
Ex-Date	Short-Term	Long-Term	Reinvest NAV
Dec 28, 2011		$0.13400	$14.03
Mar 15, 2011		$0.01110	$14.64
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

3. Russell 2000 Value Index is an unmanaged index of U.S. small-cap value 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.
4. Source: Fund prospectus.
5. Net expense ratio reflects a contractual expense reimbursement that continues through 4/30/13. Without the reimbursement, performance would have been lower.
8. Alpha measures risk-adjusted performance, showing excess return delivered at the same risk level as the benchmark. Beta measures the volatility of a fund relative to the overall market. R—Squared represents the percentage of the portfolio's movement that can be explained by the general movement of the market. Standard deviation measures the historic volatility of a fund. Sharpe Ratio uses standard deviation and excess return to determine reward per unit of risk.
9. 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 (%)^6,7 as of Dec 31, 2011
U.S. Common Stocks	97.10
Cash & Equivalents	2.90
Total	100.00

Portfolio Statistics as of Dec 31, 2011
Median Market Cap:	$1.8B
Price/Earnings Ratio:	15.41
Number of Holdings:	60
Price/Book Ratio:	1.51

GICS Sector Breakdown (%)^6,7 as of Dec 31, 2011
Sector	Fund	Russell 2000 Value Index³
Consumer Discretionary	11.21	11.74
Consumer Staples	4.47	3.07
Energy	5.94	4.65
Financials	25.19	36.84
Health Care	7.50	5.31
Industrials	19.60	14.75
Information Technology	7.62	10.94
Materials	7.85	4.86
Telecom Services	0.00	0.59
Utilities	7.76	7.25
Cash	2.90	0.00

Fund Holdings (%)^6,10 as of Sep 30, 2011
Holding	% of Net Assets
EURO TIME DEPOSIT (USD)	4.2541%
Cleco Corp	3.1002%
Westar Energy Inc	2.6804%
Portland General Electric Co	2.5452%
Aptargroup Inc	2.5260%
JDA Software Group Inc	2.4872%
Teleflex Inc	2.4861%
J&J Snack Foods Corp	2.3974%
Netgear Inc	2.3941%
Senior Housing Properties Trust	2.3357%
View All

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

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 dramatic 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.

Performance Summary

Eaton Vance Small-Cap Value Fund (the Fund) outperformed its benchmark, the Russell 2000 Value Index³, for the quarter ended December 31, 2011 with a return of 16.27% at NAV.

Stock selection was the main contributor to Fund performance relative to the benchmark, while sector allocation also had a negative impact.

Contributors

The Fund's performance relative to the benchmark was largely the result of stock selection.

Specifically, stock selection in the information technology, energy and financials sectors contributed to performance.
The Fund's overweight position in the industrials sector aided relative performance.
While we saw some material changes in stock prices, no individual holding stands out in terms of positive or negative performance.

Detractors

Sector allocation generally detracted from relative performance to the benchmark.

While stock selection contributed to returns overall, selections in the health care and consumer discretionary sectors detracted from relative performance.

Investment Outlook And Fund Positioning

We see no reason to materially change our outlook for the U.S. economy for 2012. We anticipate a slower-than-normal economic recovery, with intermittent zero or negative growth in gross domestic product (GDP) a possibility. With consumption likely to be impeded by high unemployment, investment by a depressed housing market and government spending by austerity measures, an economic slowdown would not appear difficult to provoke.

Until the elections in November, we believe that congressional gridlock is likely, with pre-election posturing virtually guaranteeing continued volatility. We are hopeful that the 2012 elections will provide clarity and a mandate to address the obstacles to economic growth, for example, the growing regulatory burden, ballooning fiscal deficit and entitlement reform. We believe leadership on these issues would increase confidence and put economic recovery on a more sustainable path. If the crises are successfully averted, we believe fundamentals may take center stage again and that the quiet strength of U.S. equities could be rewarded. With the difficulties of the world so apparent, we believe opportunities for investors in 2012 may be plentiful.

Top 10 Holdings (%)^6,7 as of Dec 31, 2011
Cleco Corp	2.95
JDA Software	2.93
Netgear, Inc.	2.65
AptarGroup	2.52
Westar Energy	2.49
Teleflex	2.42
Barnes Group	2.40
Portland Gen Elect Co	2.32
Old Dominion Freight Line	2.30
J&J Snack Foods	2.27
Total	25.25

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

Gregory R. Greene, CFA

Co-Director, Fox Asset Management
Joined Fox Asset Management 1998

Greg Greene is a vice president of Fox Asset Management, a wholly-owned subsidiary of Eaton Vance Corp. He is co-director of Eaton Vance Red Bank, participating in directing overall business strategy and operating guidelines.

Prior to joining Fox in 1998, Greg was a research analyst responsible for the financial services and retail/consumer products industries in addition to being head of trading at Chris Blair Asset Management. Previously, he was a vice president and senior position trader in the equity trading department at Merrill Lynch. Before entering the financial industry, Greg was a first lieutenant in the U.S. Marine Corps.

Greg earned a B.S. in finance from Boston College and an M.B.A. in finance and accounting from New York University. He is a CFA charterholder and is a member of the CFA Institute and the New York Society of Security Analysts.

Education

B.S. Boston College
M.B.A. Stern School of Business, New York University

Experience

Managed Fund since 2006

Other funds managed

Tax-Managed Small-Cap Value Fund

Biography

J. Bradley Ohlmuller, CFA

Vice President, Fox Asset Management
Joined Fox Asset Management 2004

Brad Ohlmuller is a vice president and equity portfolio manager of Fox Asset Management, a wholly-owned subsidiary of Eaton Vance Corp.

Prior to joining Fox in 2004, Brad was a vice president and research analyst at Goldman Sachs & Co., where he covered the health care facilities sector. Previously, he followed the retail sector at Morgan Stanley. Brad began his career at Standard & Poor's as an analyst following the regional banking, insurance and REIT industries in its equity research department.

Brad earned a B.A. in political science and an M.B.A. in finance from Loyola College in Maryland. He is a CFA charterholder and is a member of the CFA Institute and the New York Society of Security Analysts.

Education

B.A. Loyola College
M.B.A. Loyola College

Experience

Managed Fund since 2005

Other funds managed

Tax-Managed Small-Cap Value Fund

Biography

Robert J. Milmore, CFA

Vice President, Fox Asset Management
Joined Fox Asset Management 2005

Rob Milmore is a vice president and equity portfolio manager of Fox Asset Management, a wholly-owned subsidiary of Eaton Vance Corp.

Prior to joining Fox in 2005, Rob was a manager of international treasury at Cendant Corporation. Previously, he was a vice president and senior equity research analyst at Arnhold & S. Bleichroeder covering the airline and Internet travel sectors. Prior to this, Rob followed the retail, textile, apparel and footwear sectors at Morgan Stanley Dean Witter. He began his career in international securities lending at Bankers Trust Company.

Rob earned a B.S. in finance with distinction from The Pennsylvania State University and an M.B.A. from the University of Notre Dame. He is a CFA charterholder and is a member of the CFA Institute.