Overview

Growth of $10,000

10-year period ended 09/30/2016

  • Class A at NAV

Historical Returns (%)as of Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
11/30/2016
Fund at NAV 5.32 0.04 9.30 6.69 9.07 14.40 11.31
Russell 2500™ Index2 8.51 4.60 15.35 10.65 7.13 14.13 7.52
09/30/2016
Fund at NAV -0.71 1.59 8.49 16.56 10.98 17.92 11.85
Russell 2500™ Index2 0.48 6.56 10.80 14.44 7.76 16.28 7.94
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. The share class has no sales charge.

Fund Factsas of Oct 31, 2016

Class I Inception 04/30/2002
Investment Objective Long-term capital growth
Total Net Assets $7.8B
Minimum Investment $250000
Expense Ratio3 0.97%
CUSIP 277902698

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

Markel Corp
ANSYS Inc
SEI Investments Co
Sally Beauty Holdings Inc
DENTSPLY SIRONA Inc
Teleflex Inc
IDEX Corp
Fair Isaac Corp
Carlisle Cos Inc
JB Hunt Transport Services Inc
Total 30.38

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 Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
10/31/2016
Fund at NAV -4.34 -4.34 3.78 4.07 8.04 13.89 10.98
Russell 2500™ Index2 -4.06 -2.83 6.31 3.98 5.17 12.21 6.99
Morningstar™ Mid-Cap Growth Category6 -3.89 -3.66 0.97 -0.86 4.13 10.20 6.59
09/30/2016
Fund at NAV -0.71 1.59 8.49 16.56 10.98 17.92 11.85
Russell 2500™ Index2 0.48 6.56 10.80 14.44 7.76 16.28 7.94
Morningstar™ Mid-Cap Growth Category6 0.09 4.81 4.93 8.41 6.40 13.89 7.39
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. The share class has no sales charge.

Calendar Year Returns (%)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fund at NAV 14.79 12.00 -25.99 35.26 25.80 5.62 14.26 36.06 5.17 9.75
Russell 2500™ Index2 16.17 1.38 -36.79 34.39 26.71 -2.51 17.88 36.80 7.07 -2.90

Fund Facts

Expense Ratio3 0.97%
Class I Inception 04/30/2002
Distribution Frequency Annually

Risk Measures (3 Year)7as of Nov 30, 2016

Alpha (%) 3.22
Beta 0.80
R-Squared (%) 84.51
Standard Deviation (%) 12.02
Sharpe Ratio 0.74

Morningstar™ Ratingsas of Oct 31, 2016

Time Period Rating Rating (Load Waived) Funds in
Mid-Cap Growth
Category
Overall ***** 655
3 Years ***** 655
5 Years ***** 572
10 Years ***** 427
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.

© 2016 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
Dec 02, 2016 $28.48 $0.02
Dec 01, 2016 $28.46 $0.13
Nov 30, 2016 $28.33 -$0.20
Nov 29, 2016 $28.53 $0.01
Nov 28, 2016 $28.52 -$0.26
Nov 25, 2016 $28.78 $0.14
Nov 23, 2016 $28.64 $0.09
Nov 22, 2016 $28.55 $0.08
Nov 21, 2016 $28.47 $0.21
Nov 18, 2016 $28.26 -$0.06

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 10, 2015 $1.73540 $25.92
Dec 11, 2014 $0.76110 $25.04
Dec 12, 2013 $0.14780 $23.73
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 Oct 31, 2016

U.S. Common Stocks 94.58
Cash 5.42
Total 100.00

Portfolio Statisticsas of Oct 31, 2016

Average Market Cap $6.6B
Price/Earnings Ratio 21.66
Number of Holdings 50
Price/Book Ratio 3.33

GICS Sector Breakdown (%)5as of Oct 31, 2016

Sector Fund Russell 2500™ Index2
Consumer Discretionary 8.60 12.80
Consumer Staples 1.57 3.73
Energy 0.84 4.41
Financials 17.71 16.22
Health Care 15.73 11.14
Industrials 22.32 15.12
Information Technology 23.34 15.53
Materials 3.19 5.96
Real Estate 1.29 10.51
Telecom Services 0.00 0.68
Utilities 0.00 3.91
Cash 5.42 0.00

Market Cap Breakdown (%)5,10as of Oct 31, 2016

> $150 Billion 0.00
$50-150 Billion 0.00
$15-50 Billion 0.00
$5-15 Billion 60.05
$1.5-5 Billion 38.50
< $1.5Billion 1.44

Fund Holdings (%)5,11as of Oct 31, 2016

Holding % of Net Assets
EV Cash Reserves Fund LLC 5.40%
Markel Corp 4.33%
ANSYS Inc 3.72%
SEI Investments Co 3.23%
Sally Beauty Holdings Inc 3.12%
DENTSPLY SIRONA Inc 2.92%
Teleflex Inc 2.86%
IDEX Corp 2.60%
Fair Isaac Corp 2.59%
Carlisle Cos Inc 2.51%
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 Sep 30, 2016

Global stock markets moved higher in the third quarter of 2016 amid continued low interest rates and diminishing concern about Britain's vote to leave the European Union.

Recovering from their sharp pullback following Britain's "Brexit" vote in late June 2016, stocks advanced for much of the summer. Major U.S. stock indexes reached multiple record highs during August 2016, as an upturn in oil prices also boosted stocks.

In the final month of the period, U.S. equity markets turned choppy, as investors worried about the likelihood of an interest-rate hike by the U.S. Federal Reserve (the Fed). Declining corporate profits and overall U.S. economic health also weighed on markets. Retail sales dipped in August after a slight gain in July. Home sales also fell in August, while durable goods orders were flat.

The Fed's decision at its September meeting to leave rates unchanged sent stocks higher. U.S stocks also got a brief boost late in the period after OPEC nations reached an initial agreement to cut oil production. Stocks along with oil prices reacted with solid gains.

Globally, low interest rates helped drive most stock markets higher during the three-month period. Signs of strength in China's beleaguered economy, including improved business and consumer confidence, also cheered investors.

The prospect of continued low interest rates helped global equity markets deliver solid gains for the three-month period. The Dow Jones Industrial Average12 recorded a 2.78% gain, while the broader S&P 500 Index13 rose 3.85%. The technology-laden NASDAQ Composite Index14 added 9.69%. Globally, the MSCI EAFE Index15 gained 6.43% in the quarter. Small-cap stocks outperformed their large-cap counterparts during the quarter. In terms of investing style, growth stocks topped value 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 September 30, 2016, returning 1.59% for Class I shares at net asset value versus the Index's 6.56% return.

  • U.S. small and mid cap markets saw a "risk on" rally during the third quarter with the Russell 2500™ Index rising 6.6%. Nine of the 11 economic sectors within the benchmark saw positive absolute returns during the quarter. Performance was driven by strong returns in technology (+12.5%), health care (+10.5%), financials (+8.8%), materials (+7.6%), energy (+7.6%), and industrials (+7.3%). Yield-oriented sectors like telecom services (-5.9%), utilities (-4.9%), and real estate (+0.4%) lagged for the quarter, but continued to have strong performance year-to-date.
  • The Fund underperformed the Index during the quarter, driven largely by stock selection. Overall, sector allocation had a net positive impact during the quarter.
  • Notable detractors at the sector level were financials, information technology and health care. On the positive side, relative gains were greatest in real estate and utilities.

Historical Returns (%)as of Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
Fund at NAV -0.71 1.59 8.49 16.56 10.98 17.92 11.85
Russell 2500™ Index2 0.48 6.56 10.80 14.44 7.76 16.28 7.94
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. The share class has no sales charge.

Fund Factsas of Sep 30, 2016

Class I Inception 04/30/2002
Expense Ratio3 0.97%

Contributors 

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

  • Sector allocation was the primary contributor to relative performance during the quarter. The strongest contributions came from underweights to real estate and utilities, and overweights to information technology and health care.
  • Stock selection was positive in the real estate sector. This was predominantly a function of selection decisions in the real estate management & development industry.
  • The Fund's top five individual performance contributors included three health care companies (IDEXX Laboratories, Varian Medical Systems and Bio-Rad Laboratories, Inc.), an information technology firm (WEX Inc.) and an industrial stock (IDEX Corporation).

Detractors 

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

  • Stock selection detracted from relative performance during the quarter, most notably in financials, information technology and health care. Selection was also a meaningful detractor in consumer discretionary and industrials.
  • In financials, stock selection in the insurance and capital markets industries held back performance. In information technology, selection proved difficult in the software industry during the quarter. In health care, underperformance of the Fund's health care equipment holdings coupled with lack of exposure to a strong performing biotechnology industry dampened results.
  • The Fund's five primary individual detractors included three health care stocks (Dentsply Sirona, Teleflex Incorporated and Henry Schein, Inc.), two financial firms ( Markel Corporation and SEI Investments Company) and a consumer discretionary holding (Sally Beauty).

Investment Outlook And Fund Positioning 

Lower quality stocks in the Russell 2500™ meaningfully outperformed high quality stocks in the index in the third quarter. For example, the biotech industry had a 20% return, even though numerous biotech companies had negative earnings. While our focus on quality was out of favor for the quarter, we continue to believe, based on our research, that investing in high quality equities should produce attractive risk-adjusted returns over the long term.

As of quarter-end, the Fund contained 51 stocks representing nine of the 11 economic sectors comprising the Index. Relative to the sector weightings in the Index, the Fund was overweight industrials, information technology and health care. The Fund was underweight Real estate, consumer discretionary, financials, energy, consumer staples, and materials and had no exposure to utilities or telecommunication services.

Top 10 Holdings (%)4,5as of Sep 30, 2016

Markel Corp 4.05
ANSYS Inc 3.69
SEI Investments Co 3.25
Teleflex Inc 3.12
Sally Beauty Holdings Inc 3.03
DENTSPLY SIRONA Inc 2.95
Acuity Brands Inc 2.77
IDEX Corp 2.75
Fair Isaac Corp 2.62
IDEXX Laboratories Inc 2.55
Total 30.79

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 Sep 30, 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 8.44 -4.87 -0.42 13.13 3.93 0.55 0.10 -0.76 -0.66
Consumer Staples 1.37 -6.52 -0.09 3.48 0.36 0.02 0.13 -0.12 0.01
Energy 0.97 -6.11 -0.06 4.39 7.58 0.32 -0.06 -0.14 -0.20
Financials 17.83 -1.46 -0.27 15.39 8.77 1.30 0.04 -1.77 -1.73
Health Care 16.91 4.47 0.76 11.67 10.52 1.22 0.22 -1.00 -0.78
Industrials 22.50 4.15 0.96 14.87 7.28 1.08 0.07 -0.70 -0.63
Information Technology 21.59 3.01 0.64 15.23 12.47 1.83 0.34 -1.92 -1.58
Materials 3.19 1.91 0.06 5.93 7.62 0.46 -0.03 -0.19 -0.22
Real Estate 1.45 16.77 0.22 10.92 0.37 0.05 0.56 0.21 0.78
Telecommunication Services 0.00 0.00 0.00 0.69 -5.94 -0.04 0.08 0.00 0.08
Utilities 0.00 0.00 0.00 4.29 -4.94 -0.22 0.50 0.00 0.50
Cash 5.74 0.07 0.00 0.00 0.00 0.00 -0.32 0.00 -0.32
Total 100.00 1.81 1.81 100.00 6.56 6.56 1.63 -6.39 -4.75
1 Year Attribution
Consumer Discretionary 7.83 6.22 0.65 13.97 2.72 0.53 0.74 0.28 1.02
Consumer Staples 1.40 16.13 0.27 3.25 16.27 0.58 -0.03 -0.02 -0.05
Energy 0.98 -17.67 -0.21 3.50 6.10 0.34 0.08 -0.27 -0.19
Financials 18.38 0.92 0.29 15.67 10.28 1.41 -0.10 -1.58 -1.69
Health Care 16.92 31.88 5.13 11.80 8.05 0.55 -0.26 3.72 3.46
Industrials 22.24 29.26 6.41 14.65 17.44 2.69 0.30 2.31 2.61
Information Technology 21.17 17.91 3.68 15.15 19.76 2.82 0.29 -0.30 -0.01
Materials 4.13 39.25 1.66 6.09 29.61 1.78 -0.32 0.73 0.40
Real Estate 1.58 -10.95 -0.26 10.17 20.98 2.17 -0.43 -0.49 -0.92
Telecommunication Services 0.00 0.00 0.00 0.68 10.53 0.09 0.00 0.00 0.00
Utilities 0.00 0.00 0.00 4.89 24.71 1.39 -0.60 0.00 -0.60
Cash 5.37 0.23 0.01 0.00 0.00 0.00 -0.73 0.00 -0.73
Unassigned 0.00 -2.91 0.00 0.17 31.54 0.09 -0.08 -0.02 -0.09
Total 100.00 17.63 17.63 100.00 14.43 14.43 -1.16 4.36 3.21

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 small- and SMID-cap 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 small- and SMID-cap 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 small- and SMID-cap 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: Sep 30, 2016

Atlanta Capital Market Commentary

Download - Last updated: Sep 30, 2016

Commentary

Download - Last updated: Sep 30, 2016

Attribution

Download - Last updated: Sep 30, 2016

Annual Report

Download - Last updated: Sep 30, 2016

Full Prospectus

Download - Last updated: Feb 1, 2016

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, 2016

Think Performance Think Eaton Vance

Download - Last updated: Sep 30, 2016

Semi-Annual Report

Download - Last updated: Mar 31, 2016

Summary Prospectus

Download - Last updated: Feb 1, 2016