Overview

Growth of $10,000

10-year period ended 12/31/2016

  • Class A at NAV

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
02/28/2017
Fund at NAV 5.04 6.85 5.04 20.65 10.64 13.99 11.53
Fund w/Max Sales Charge -1.00 0.71 -1.00 13.72 8.48 12.65 10.88
Russell 2500™ Index2 2.41 5.85 3.83 31.75 7.32 13.09 7.81
12/31/2016
Fund at NAV 1.72 2.43 10.96 10.96 8.40 14.50 11.23
Fund w/Max Sales Charge -4.12 -3.45 4.58 4.58 6.28 13.15 10.57
Russell 2500™ Index2 1.94 6.12 17.59 17.59 6.92 14.52 7.68
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 or equal to one year is cumulative. Max Sales Charge: 5.75%.

Fund Factsas of Feb 28, 2017

Class A Inception 11/28/2003
Performance Inception 04/30/2002
Investment Objective Long-term capital growth
Total Net Assets $9.0B
Minimum Investment $1000
Expense Ratio3 1.21%
CUSIP 277902656

Top 10 Holdings (%)4,5as of Feb 28, 2017

Markel Corp
Teleflex Inc
ANSYS Inc
SEI Investments Co
DENTSPLY SIRONA Inc
Bio-Rad Laboratories Inc
JB Hunt Transport Services Inc
Affiliated Managers Group Inc
Manhattan Associates Inc
Fair Isaac Corp
Total 31.54

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

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

About Risk 

Fund performance is 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.


Performance

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
02/28/2017
Fund at NAV 5.04 6.85 5.04 20.65 10.64 13.99 11.53
Fund w/Max Sales Charge -1.00 0.71 -1.00 13.72 8.48 12.65 10.88
Russell 2500™ Index2 2.41 5.85 3.83 31.75 7.32 13.09 7.81
Morningstar™ Mid-Cap Growth Category6 2.90 6.60 6.48 23.08 5.03 10.60 7.15
12/31/2016
Fund at NAV 1.72 2.43 10.96 10.96 8.40 14.50 11.23
Fund w/Max Sales Charge -4.12 -3.45 4.58 4.58 6.28 13.15 10.57
Russell 2500™ Index2 1.94 6.12 17.59 17.59 6.92 14.52 7.68
Morningstar™ Mid-Cap Growth Category6 0.28 0.75 6.03 6.03 4.03 11.79 6.79
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 or equal to one year is cumulative. Max Sales Charge: 5.75%.

Calendar Year Returns (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fund at NAV 11.74 -26.20 34.94 25.53 5.44 13.91 35.72 4.90 9.46 10.96
Russell 2500™ Index2 1.38 -36.79 34.39 26.71 -2.51 17.88 36.80 7.07 -2.90 17.59

Fund Facts

Expense Ratio3 1.21%
Class A Inception 11/28/2003
Performance Inception 04/30/2002
Distribution Frequency Annually

Risk Measures (3 Year)7as of Feb 28, 2017

Alpha (%) 4.61
Beta 0.79
R-Squared (%) 83.64
Standard Deviation (%) 11.72
Sharpe Ratio 0.89

Morningstar™ Ratingsas of Feb 28, 2017

Time Period Rating Funds in
Mid-Cap Growth
Category
Overall ***** 583
3 Years ***** 583
5 Years ***** 507
10 Years ***** 370
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds and exchange-traded funds) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product 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.

The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Star ratings do not reflect the effect of any applicable sales load.

©2017 Morningstar. 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 are responsible for any damages or losses arising from any use of this information.

NAV History

Date NAV NAV Change
Mar 24, 2017 $26.50 -$0.05
Mar 23, 2017 $26.55 $0.00
Mar 22, 2017 $26.55 $0.07
Mar 21, 2017 $26.48 -$0.39
Mar 20, 2017 $26.87 -$0.14
Mar 17, 2017 $27.01 -$0.02
Mar 16, 2017 $27.03 -$0.04
Mar 15, 2017 $27.07 $0.26
Mar 14, 2017 $26.81 -$0.07
Mar 13, 2017 $26.88 $0.09

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 08, 2016 $0.99780 $25.97
Dec 10, 2015 $1.73540 $23.80
Dec 11, 2014 $0.76110 $23.18
No records in this table indicates that there has not been a capital gain greater than .0001 within the past 3 years.
Fund prospectus

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

About Risk 

Fund performance is 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.


Portfolio

Asset Mix (%)5,9as of Feb 28, 2017

U.S. Common Stocks 94.40
Cash 5.60
Total 100.00

Portfolio Statisticsas of Feb 28, 2017

Average Market Cap $7.5B
Price/Earnings Ratio 23.07
Number of Holdings 50
Price/Book Ratio 3.72

GICS Sector Breakdown (%)5as of Feb 28, 2017

Sector Fund Russell 2500™ Index2
Consumer Discretionary 7.33 12.36
Consumer Staples 1.63 3.28
Energy 0.90 4.37
Financials 18.51 17.58
Health Care 16.84 11.26
Industrials 20.89 15.60
Information Technology 23.94 14.96
Materials 3.02 6.18
Real Estate 1.33 10.11
Telecom Services 0.59
Utilities 3.71
Cash 5.60

Market Cap Breakdown (%)5,10as of Feb 28, 2017

> $150 Billion 0.00
$50-150 Billion 0.00
$15-50 Billion 0.00
$5-15 Billion 73.32
$1.5-5 Billion 25.23
< $1.5Billion 1.45

Fund Holdings (%)5,11as of Jan 31, 2017

Holding % of Net Assets
EV Cash Reserves Fund LLC 5.01%
Markel Corp 4.61%
Teleflex Inc 3.72%
ANSYS Inc 3.48%
SEI Investments Co 3.24%
JB Hunt Transport Services Inc 2.79%
Bio-Rad Laboratories Inc 2.76%
Manhattan Associates Inc 2.68%
DENTSPLY SIRONA Inc 2.63%
Sally Beauty Holdings Inc 2.63%
View All

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

About Risk 

Fund performance is 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.


Insights & Analysis

Commentary

A Word On The Markets as of Dec 31, 2016

Global stock markets delivered a mixed performance in the fourth quarter of 2016. While U.S stocks rose sharply following the U.S. presidential election to finish the period with solid gains, major international markets recorded more subdued or negative returns.

Stocks opened the period on the downside amid retreating oil prices, uncertainty about the U.S. presidential election and fears of a possible interest-rate increase by the U.S. Federal Reserve (the Fed). Donald Trump's victory in the U.S. presidential election marked a turning point for U.S. stocks, which soared following the November 8 election. The rally continued into December before stalling in the final weeks of the period.

The broad-based "Trump Bump" particularly favored financial stocks, which received another boost in mid-December when the Fed raised its benchmark interest rate. The Fed move came in response to continued improvement in the nation's economy, which helped boost stocks in the three-month period. Positive reports during the period included higher consumer spending, declining unemployment and stronger U.S. exports.

While U.S. stocks surged following the presidential election, global markets lagged amid uncertainty about U.S. trade policy under President-elect Trump. China's sluggish economy and geopolitical issues in Europe, especially Britain's planned exit from the European Union, also weighed on global stocks during the period.

For the three-month period, the Dow Jones Industrial Average12 recorded an 8.66% gain, while the broader S&P 500 Index,13 rose 3.82%. The technology-laden Nasdaq Index14 added 1.34%. Globally, the MSCI EAFE Index15 fell 0.71% in the quarter. Small-cap stocks outperformed their large-cap counterparts during the quarter. In terms of investing style, value stocks topped growth stocks in both the large-cap and small-cap categories.

Performance Summary 

Eaton Vance Atlanta Capital SMID-Cap Fund (the Fund) underperformed its benchmark, the Russell 2500™ Index (the Index),2 for the quarter ended December 31, 2016, returning 2.51% for Class I shares at net asset value versus the Index's 6.12% return.

  • U.S. SMID cap equity markets continued their ascent during the fourth quarter. Eight of the 11 economic sectors within the benchmark saw positive returns during the quarter. Performance was driven by cyclical sectors like financials, industrials, materials and energy. Naturally, the worst performing sectors were the defensive areas of the index. Consumer staples, health care and real estate were the quarter's three worst performers. The "risk on" sentiment translated into factors such as higher beta, smaller capitalization and value stocks leading the market higher.
  • The Fund underperformed the Index during the quarter, driven largely by stock selection. Sector allocation had a positive impact during the quarter.
  • Notable detractors at the sector level were financials, information technology and industrials. On the positive side, relative gains were greatest in real estate and healthcare.

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
Fund at NAV 1.72 2.43 10.96 10.96 8.40 14.50 11.23
Fund w/Max Sales Charge -4.12 -3.45 4.58 4.58 6.28 13.15 10.57
Russell 2500™ Index2 1.94 6.12 17.59 17.59 6.92 14.52 7.68
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 or equal to one year is cumulative. Max Sales Charge: 5.75%.

Fund Factsas of Dec 31, 2016

Class A Inception 11/28/2003
Performance Inception 04/30/2002
Expense Ratio3 1.21%

Contributors 

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

  • Sector allocation helped relative performance during the quarter. The Fund's underweights in real estate, utilities and consumer staples had a positive effect on relative performance. The Fund's overweights in industrials and financials also helped relative performance.
  • Stock selection in the health care sector, particularly in the life sciences tools & services industry boosted the Fund's performance relative to the Index.
  • The Fund's top five individual performance contributors included three industrials companies (CLARCOR Inc, J.B. Hunt Transport Services, and Landstar System) a financials firm (Umpqua Holdings Corporation) and a health care stock (Bio-Rad Laboratories).

Detractors 

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

  • Stock selection detracted from relative performance in eight of the 11 sectors the Fund invests in. The most notable selection underperformance was in financials, information technology and industrials.
  • In financials, stock selection in the insurance and capital markets industries held back performance. In information technology, stock selection proved difficult in the software industry during the quarter. In industrials, underperformance of the Fund's electrical equipment and professional services holdings dampened results.
  • The Fund's five primary individual detractors included two financial stocks (Markel Corporation and Morningstar Inc.), an industrial company (Acuity Brands Inc.), an information technology company (Manhattan Associates) and a health care company (Varian Medical Systems).

Investment Outlook And Fund Positioning 

With equity markets near record highs, investors have a lot to consider as they look at the current landscape. Much of their attention will be directed at how effective the president-elect is in executing on his agenda. Naturally, the progress and perception of these items will have a direct effect on asset prices. We continue to believe that the best solution is to focus on high quality equities as they should perform well in rising markets while providing protection in more volatile periods.

As of quarter-end, the Fund contained 50 stocks representing nine of the 11 economic sectors comprising the Index. Relative to the sector weightings in the Index, the Fund was overweight financials, industrials, information technology and health care. The Fund was underweight real estate, consumer discretionary, energy, consumer staples, and materials and had no exposure to utilities or telecommunication services.

Top 10 Holdings (%)4,5as of Dec 31, 2016

Markel Corp 4.53
Teleflex Inc 3.59
ANSYS Inc 3.47
SEI Investments Co 3.31
Sally Beauty Holdings Inc 2.93
Manhattan Associates Inc 2.79
JB Hunt Transport Services Inc 2.75
DENTSPLY SIRONA Inc 2.69
Bio-Rad Laboratories Inc 2.66
IDEX Corp 2.49
Total 31.21

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. 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.

About Risk 

Fund performance is 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.

Attribution

Sector Attributionas of Dec 31, 2016

Fund Russell 2500 Index Attribution
Sectors Average Weight Total Return Contrib. to Return Average Weight Total Return Contrib. to Return Allocation Effect Selection Effect Total Effect
3 Month Attribution
Consumer Discretionary 14.29 2.69 0.38 12.82 5.32 0.71 -0.02 -0.37 -0.39
Consumer Staples 0.99 -7.41 -0.08 3.54 -0.67 -0.06 0.18 -0.07 0.11
Energy 0.88 5.57 0.04 4.78 9.13 0.41 -0.11 -0.04 -0.15
Financials 17.84 2.25 0.35 16.71 19.70 3.19 0.16 -2.91 -2.75
Health Care 14.74 -0.73 -0.09 11.22 -5.87 -0.75 -0.36 0.72 0.36
Industrials 27.36 1.01 0.38 15.43 11.23 1.79 0.62 -2.73 -2.12
Information Technology 15.82 1.32 0.19 15.08 3.43 0.48 -0.01 -0.34 -0.36
Materials 2.00 -4.69 -0.10 6.00 5.63 0.37 0.02 -0.22 -0.21
Telecom Services 0.00 0.00 0.00 0.65 4.57 0.03 0.01 0.00 0.01
Utilities 0.00 0.00 0.00 3.75 3.90 0.13 0.09 0.00 0.09
[Cash] 4.81 0.10 0.01 0.00 0.00 0.00 -0.29 0.00 -0.29
Total 100.00 0.90 0.90 100.00 6.10 6.10 0.91 -6.11 -5.20
1 Year Attribution
Consumer Discretionary 14.20 13.01 2.00 13.60 10.03 1.53 -0.13 0.47 0.32
Consumer Staples 1.04 5.73 0.09 3.38 12.37 0.46 0.09 -0.11 -0.04
Energy 0.96 -11.15 -0.18 3.86 27.54 1.05 -0.32 -0.43 -0.77
Financials 18.36 1.36 0.04 15.77 28.30 4.17 -0.00 -4.34 -4.37
Health Care 14.40 12.79 1.87 11.53 -5.76 -1.26 -0.54 2.74 2.18
Industrials 26.46 19.48 5.06 14.91 26.69 4.13 0.95 -1.77 -0.85
Information Technology 15.72 13.33 1.93 15.11 17.17 2.51 -0.03 -0.52 -0.57
Materials 2.55 2.77 0.15 6.11 32.07 1.99 -0.41 -0.72 -1.15
Telecom Services 0.00 0.00 0.00 0.68 11.72 0.10 -0.01 0.00 -0.01
Utilities 0.00 0.00 0.00 4.67 23.33 1.32 -0.47 0.00 -0.47
[Cash] 4.94 0.31 0.02 0.00 0.00 0.00 -0.85 0.00 -0.85
Total 100.00 10.86 10.86 100.00 17.53 17.53 -1.45 -5.00 -6.66

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.

Selection Effect 

Measures portfolio's excess return from selecting individual stocks within each sector.

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

About Risk 

Fund performance is 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.


Management

Biography
Charles B. Reed, CFA

Charles B. Reed, CFA

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

Charles 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 core equity team.

Chip began his career in the investment management industry in 1989. 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

 
Biography
William O. Bell IV, CFA

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 core equity team.

Bill began his career in the investment management industry in 1995. 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.S. in finance from Florida State University and is a CFA charterholder.

Education
  • B.S. Florida State University

Experience
  • Managed Fund since 2004

 
Biography
W. Matthew Hereford, CFA

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 core equity team.

Matt began his career in the investment management industry in 1995. 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.

Education
  • B.B.A. University of Mississippi

Experience
  • Managed Fund since 2004

 

Literature

Literature

Fact Sheet

Download - Last updated: Dec 31, 2016

Atlanta Capital Market Commentary

Download - Last updated: Dec 31, 2016

Commentary

Download - Last updated: Dec 31, 2016

Attribution

Download - Last updated: Dec 31, 2016

Annual Report

Download - Last updated: Sep 30, 2016

Full Prospectus

Download - Last updated: Feb 1, 2017

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

Download

Eaton Vance Atlanta Capital SMID-Cap Fund Closing to New Investors

Download - Last updated: Dec 17, 2012

SAI

Download - Last updated: Feb 1, 2017

Performance Always Matters

Download - Last updated: Dec 31, 2016

Semi-Annual Report

Download - Last updated: Mar 31, 2016

Summary Prospectus

Download - Last updated: Feb 1, 2017

XBRL

Download - Last updated: Feb 13, 2017