Tax-Managed Small-Cap Value Fund (I)

Overview


Historically, small-cap stocks have outperformed large-cap stocks.¹ (January 2002 - December 2011) Small-Cap Stocks Large-Cap Stocks 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	10 Years
Fund at NAV	3.12	6.44	-1.74	18.18	3.31	6.93
Return After Taxes on Dist w/Max Sales Charge	—	—	-2.26	17.70	2.76	6.45
Return After Taxes on Dist & Sales of Fund Shares w/Max Sales Charge	—	—	-0.51	15.76	2.78	6.05
Russell 2000 Value Index²	3.12	9.98	-4.06	18.75	-0.49	6.07
3/31/2012	as of Mar 31, 2012
Fund at NAV	6.64	6.64	2.32	23.64	3.89	7.16
Return After Taxes on Dist w/Max Sales Charge	—	—	1.78	23.14	3.34	6.68
Return After Taxes on Dist & Sales of Fund Shares w/Max Sales Charge	—	—	2.16	20.61	3.28	6.25
Russell 2000 Value Index²	11.59	11.59	-1.07	25.33	0.01	6.59
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. After-tax returns are calculated using certain assumptions, including using the highest historical individual federal income tax rates and do not reflect the impact of state/local taxes. Actual after-tax returns depend on a shareholder's tax situation and the actual characterization of distributions and may differ from those shown. After-tax returns are not relevant to shareholders who hold shares in tax-deferred accounts or shares held by nontaxable entities. Return After Taxes on Distributions may be the same as Return Before Taxes for the same period because no taxable distributions were made during that period. Return After Taxes on Distributions and Sale of Fund Shares may be greater than or equal to Return After Taxes on Distributions for the same period because of losses realized on the sale of Fund shares. Before-tax and after-tax returns for other classes of shares offered by the Fund are different. 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.

Fund Facts as of Apr 30, 2012
Class I Inception	10/01/2009
Performance Inception	03/04/2002
Investment Objective	Long-term, after-tax returns
Total Net Assets of Fund	$37.8M
Total Net Assets of Portfolio³	$75.0M
Minimum Investment	$250000
Expense Ratio (Gross)⁴	1.80%
Expense Ratio (Net)^4,5	1.20%
CUSIP	277923512

Top 10 Holdings (%)^6,7 as of Mar 31, 2012
Cleco Corp.
A.O. Smith Corp.
NETGEAR Inc.
Carter's Inc.
Umpqua Holdings Corp.
AptarGroup Inc.
Barnes Group Inc.
National Penn Bancshares Inc.
Portland General Electric Co.
Old Dominion Freight Line Inc.
Total	28.11

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

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. Market conditions may limit the ability to generate tax losses or to generate dividend income taxed at favorable tax rates. The Fund's ability to utilize various tax-managed techniques may be curtailed or eliminated in the future by tax legislation or regulation. 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. 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.
2. 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.
3. Fund total net assets equals the sum of the net assets of each of the Fund's share classes. Portfolio total net assets includes fund total net assets plus any additional assets invested in the Portfolio.
4. Source: Fund prospectus.
5. Net expense ratio reflects a contractual expense reimbursement that continues through 2/28/13. 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 Mar 31, 2012
4/30/2012	as of Apr 30, 2012
	3 Months	YTD	1 Year	3 Years	5 Years	10 Years
Fund at NAV	3.12	6.44	-1.74	18.18	3.31	6.93
Return After Taxes on Dist w/Max Sales Charge	—	—	-2.26	17.70	2.76	6.45
Return After Taxes on Dist & Sales of Fund Shares w/Max Sales Charge	—	—	-0.51	15.76	2.78	6.05
Russell 2000 Value Index²	3.12	9.98	-4.06	18.75	-0.49	6.07
3/31/2012	as of Mar 31, 2012
Fund at NAV	6.64	6.64	2.32	23.64	3.89	7.16
Return After Taxes on Dist w/Max Sales Charge	—	—	1.78	23.14	3.34	6.68
Return After Taxes on Dist & Sales of Fund Shares w/Max Sales Charge	—	—	2.16	20.61	3.28	6.25
Russell 2000 Value Index²	11.59	11.59	-1.07	25.33	0.01	6.59
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. After-tax returns are calculated using certain assumptions, including using the highest historical individual federal income tax rates and do not reflect the impact of state/local taxes. Actual after-tax returns depend on a shareholder's tax situation and the actual characterization of distributions and may differ from those shown. After-tax returns are not relevant to shareholders who hold shares in tax-deferred accounts or shares held by nontaxable entities. Return After Taxes on Distributions may be the same as Return Before Taxes for the same period because no taxable distributions were made during that period. Return After Taxes on Distributions and Sale of Fund Shares may be greater than or equal to Return After Taxes on Distributions for the same period because of losses realized on the sale of Fund shares. Before-tax and after-tax returns for other classes of shares offered by the Fund are different. 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.

Calendar Year Returns (%)
	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Fund at NAV	—	32.89	19.08	4.41	13.33	3.53	-24.59	24.69	18.57	2.23
Russell 2000 Value Index²	-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	1.80%
Expense Ratio (Net)^4,5	1.20%
Class I Inception	10/01/2009
Performance Inception	03/04/2002
Distribution Frequency	Annually

Risk Measures (3 Year)⁸ as of Apr 30, 2012
Alpha	2.60
Beta	0.81
R-Squared	91.98
Standard Deviation	18.02
Sharpe Ratio	1.00

Morningstar™ Ratings as of Apr 30, 2012
Time Period	Rating	Rating (Load Waived)	Funds in Small Blend Category
Overall		—	584
3 Years		—	584
5 Years		—	495
10 Years		—	304
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
May 15, 2012	$14.90	$-0.02
May 14, 2012	$14.92	$-0.20
May 11, 2012	$15.12	$-0.06
May 10, 2012	$15.18	$0.08
May 09, 2012	$15.10	$-0.12
May 08, 2012	$15.22	$-0.02
May 07, 2012	$15.24	$0.03
May 04, 2012	$15.21	$-0.25
May 03, 2012	$15.46	$-0.20
May 02, 2012	$15.66	$0.07

Distribution History⁹
Ex-Date	Distribution	Reinvest NAV
Fund prospectus
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 21, 2011		$0.52920	$14.57
Dec 22, 2010		$0.71530	$14.93
Fund prospectus
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.

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. Market conditions may limit the ability to generate tax losses or to generate dividend income taxed at favorable tax rates. The Fund's ability to utilize various tax-managed techniques may be curtailed or eliminated in the future by tax legislation or regulation. 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.

2. 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 2/28/13. 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 as of Mar 31, 2012
U.S. Common Stocks	97.97
Cash & Equivalents	2.03
Total	100.00

Portfolio Statistics as of Mar 31, 2012
Median Market Cap	$1.6B
Price/Earnings Ratio	14.10
Number of Holdings	55
Price/Book Ratio	1.62

GICS Sector Breakdown (%)⁶ as of Mar 31, 2012
Sector	Fund	Russell 2000 Value Index²
Consumer Discretionary	11.69	12.22
Consumer Staples	4.00	2.91
Energy	6.47	4.61
Financials	22.52	37.52
Health Care	6.86	4.93
Industrials	22.50	14.93
Information Technology	9.28	10.83
Materials	8.42	5.07
Telecom Services	0.00	0.62
Utilities	6.23	6.36
Cash	2.03	0.00

Fund Holdings (%)^6,10 as of Dec 31, 2011
Holding	% of Net Assets
Old Dominion Freight Line Inc	4.5296%
Cleco Corp	3.7681%
Genesee & Wyoming Inc	3.5053%
Portland General Electric Co	2.8610%
Westar Energy Inc	2.8464%
AO Smith Corp	2.8236%
Aptargroup Inc	2.8117%
National Penn Bancshares Inc	2.7789%
Lancaster Colony Corp	2.7602%
JDA Software Group Inc	2.7249%
View All

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. Market conditions may limit the ability to generate tax losses or to generate dividend income taxed at favorable tax rates. The Fund's ability to utilize various tax-managed techniques may be curtailed or eliminated in the future by tax legislation or regulation. 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.

2. 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.
6. Percent of total net assets.
10. 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

No commentary information is available.

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. Market conditions may limit the ability to generate tax losses or to generate dividend income taxed at favorable tax rates. The Fund's ability to utilize various tax-managed techniques may be curtailed or eliminated in the future by tax legislation or regulation. 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.

Attribution

No attribution information is available.

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. Market conditions may limit the ability to generate tax losses or to generate dividend income taxed at favorable tax rates. The Fund's ability to utilize various tax-managed techniques may be curtailed or eliminated in the future by tax legislation or regulation. 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.

Management

Biography

Gregory R. Greene, CFA

Vice President, Eaton Vance Management
Co-Director, Fox Asset Management LLC
Joined Fox Asset Management LLC 1998

Greg Greene is a vice president of Eaton Vance Management and co-director of Fox Asset Management LLC, a wholly-owned subsidiary of Eaton Vance Corp.

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

Small-Cap Value Fund

Biography

J. Bradley Ohlmuller, CFA

Vice President, Eaton Vance Management
Equity Portfolio Manager, Fox Asset Management LLC
Joined Fox Asset Management LLC 2004

Brad Ohlmuller is a vice president of Eaton Vance Management and equity portfolio manager of Fox Asset Management LLC, 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

Small-Cap Value Fund

Biography

Robert J. Milmore, CFA

Vice President, Eaton Vance Management
Equity Portfolio Manager, Fox Asset Management LLC
Joined Fox Asset Management LLC 2005

Rob Milmore is a vice president of Eaton Vance Management and equity portfolio manager of Fox Asset Management LLC, 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.