Overview

Emerging markets have become a larger percentage of the world's GDP.2

The International Monetary Fund expects emerging markets to account for a higher percentage of GDP in the coming years.

  • Emerging Markets
  • Advanced Economies

Not based on the return of any specific fund.

Historical Returns (%)as of Jun 30, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
08/31/2017
Fund at NAV 2.26 7.14 21.23 18.85 -1.05 3.21 0.98
Fund w/Max Sales Charge 1.26 6.14 20.23 17.85 -1.05 3.21 0.98
MSCI Emerging Markets Index3 2.23 9.41 28.29 24.53 2.38 5.29 2.42
06/30/2017
Fund at NAV 0.14 3.21 13.31 16.10 -2.37 2.07 0.31
Fund w/Max Sales Charge -0.86 2.21 12.31 15.10 -2.37 2.07 0.31
MSCI Emerging Markets Index3 1.01 6.27 18.43 23.75 1.07 3.95 1.91
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: 1%.

Fund Factsas of Aug 31, 2017

Class C Inception 06/30/2006
Investment Objective Long-term capital appreciation
Total Net Assets $3.0B
Minimum Investment $1000
Expense Ratio4 2.13%
CUSIP 277923769

Top 10 Holdings (%)5,6as of Aug 31, 2017

America Movil SA
Sberbank
China Mobile Limited
Grupo Televisa SAB
MTN Group Ltd.
Magnit
Naspers Ltd. N-Shares
Credicorp Ltd.
Cielo SA
Gazprom
Total 6.11

Portfolio Management

Thomas Seto Managed Fund since 2007
Timothy W. Atwill, Ph.D., CFA Managed Fund since 2014

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

About Risk: 

Fund performance is 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. In emerging countries, these risks may be more significant. 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 Jun 30, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
08/31/2017
Fund at NAV 2.26 7.14 21.23 18.85 -1.05 3.21 0.98
Fund w/Max Sales Charge 1.26 6.14 20.23 17.85 -1.05 3.21 0.98
MSCI Emerging Markets Index3 2.23 9.41 28.29 24.53 2.38 5.29 2.42
Morningstar Diversified Emerging Mkts Category7 2.22 8.39 26.28 21.69 1.68 5.12 2.20
06/30/2017
Fund at NAV 0.14 3.21 13.31 16.10 -2.37 2.07 0.31
Fund w/Max Sales Charge -0.86 2.21 12.31 15.10 -2.37 2.07 0.31
MSCI Emerging Markets Index3 1.01 6.27 18.43 23.75 1.07 3.95 1.91
Morningstar Diversified Emerging Mkts Category7 1.02 5.87 18.14 20.48 0.48 4.07 1.48
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: 1%.

Calendar Year Returns (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fund at NAV 34.87 -52.13 66.08 20.97 -19.91 18.45 -0.05 -4.82 -17.26 11.20
MSCI Emerging Markets Index3 39.39 -53.33 78.51 18.88 -18.42 18.22 -2.60 -2.19 -14.92 11.19

Fund Facts

Expense Ratio4 2.13%
Class C Inception 06/30/2006
Distribution Frequency Annually

Risk Measures (3 Year)8as of Aug 31, 2017

Alpha (%) -3.11
Beta 0.84
R-Squared (%) 94.31
Standard Deviation (%) 14.23
Sharpe Ratio -0.09

Morningstar Rating™as of Aug 31, 2017

Time Period Rating Funds in
Diversified Emerging Mkts
Category
Overall *** 631
3 Years ** 631
5 Years ** 439
10 Years *** 178
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
Sep 21, 2017 $15.07 -$0.03
Sep 20, 2017 $15.10 $0.00
Sep 19, 2017 $15.10 -$0.01
Sep 18, 2017 $15.11 $0.00
Sep 15, 2017 $15.11 $0.03
Sep 14, 2017 $15.08 $0.02
Sep 13, 2017 $15.06 -$0.06
Sep 12, 2017 $15.12 $0.00
Sep 11, 2017 $15.12 $0.08
Sep 08, 2017 $15.04 -$0.03

Distribution History9

Ex-Date Distribution Reinvest NAV
Jul 26, 2017 $0.15470 $14.66
Jun 15, 2016 $0.14310 $11.83
May 21, 2015 $0.00350 $14.43
Dec 29, 2014 $0.05340 $13.95
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
May 21, 2015 $0.00830 $0.16980 $14.43
Dec 29, 2014 $0.02960 $0.04800 $13.95
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.

About Risk: 

Fund performance is 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. In emerging countries, these risks may be more significant. 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 (%)6as of Aug 31, 2017

Foreign Common Stocks 99.13
Cash & Other Assets 0.87
Total 100.00

Portfolio Statisticsas of Aug 31, 2017

Median Market Cap $2.6B
Price/Earnings Ratio 14.42
Number of Holdings 1,695
Price/Book Ratio 1.54
Countries Represented 49

GICS Sector Breakdown (%)6as of Aug 31, 2017

Sector Fund MSCI Emerging Markets Index3
Consumer Discretionary 9.07 10.22
Consumer Staples 10.72 6.56
Energy 8.69 6.63
Financials 18.32 23.91
Health Care 5.06 2.22
Industrials 9.99 5.45
Information Technology 5.98 26.88
Materials 11.99 7.46
Real Estate 3.48 2.82
Telecom Services 9.55 5.24
Utilities 6.28 2.59
Cash 0.87 0.00

Assets by Country (%)6as of Aug 31, 2017

China 10.82
Russia 6.36
Brazil 6.19
South Africa 5.95
Taiwan 5.95
India 5.90
Mexico 5.82
Korea 5.76
Thailand 3.10
Turkey 3.05
View All

Geographic Mix (%)6as of Aug 31, 2017

Asia/Pacific 45.55
Latin America 19.02
Eastern Europe 16.51
Africa 9.21
Middle East 8.26
Europe except U.K. 1.45

Fund Holdings (%)6,10as of Jul 31, 2017

Holding % of Net Assets
America Movil SAB de CV 0.76%
Naspers Ltd 0.73%
China Mobile Ltd 0.70%
Sberbank of Russia PJSC 0.66%
Cielo SA 0.58%
MTN Group Ltd 0.55%
Samsung Electronics Co Ltd 0.54%
Credicorp Ltd 0.51%
Tencent Holdings Ltd 0.45%
Yandex NV 0.43%
View All

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

About Risk: 

Fund performance is 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. In emerging countries, these risks may be more significant. 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 Jun 30, 2017

Emerging markets equities continued their climb over the second quarter of 2017, with the MSCI Emerging Markets Index3 up 6.27% over the three-month period. This rally was broad-based, with the vast majority of emerging market countries posting positive returns for the quarter.

Emerging market equities benefited from a number of general and country-specific drivers. Broadly speaking, investors were drawn to the asset class based on its attractive valuation versus U.S. equities. Also, a growing consensus was building that global growth was back on track and should allow for a prolonged period of expansion in emerging market economies. At the country level, China rose on data showing continued growth across its economy, while the tech-heavy markets of Korea and Taiwan benefited from the global rally in information technology stocks. Mexico increased in response to positive economic growth figures, a softening in anti-NAFTA rhetoric by the U.S., and a rally in the peso. In addition, the eastern European economies of Hungary and the Czech Republic benefited from increased optimism regarding the Eurozone.

On average, frontier-market countries mildly underperformed emerging-market countries during the quarter, with the MSCI Frontier Markets Index up 6.13%. Index returns were assisted by rallies in Nigeria, Kenya and Sri Lanka, all of which experienced returns in excess of 20% for the quarter.

Performance Summary 

Parametric Emerging Markets Fund (the Fund) strongly underperformed its benchmark, the MSCI Emerging Markets Index3 (the Index), for the quarter ended June 30, 2017 returning 3.44% for Investor Class shares at net asset value versus the Index's 6.27% return.

  • The Fund's emphasis on diversification11 via a system of target country weights and systematic rebalancing back to these target weights strongly detracted from returns relative to the Index. The diversification targets consistently have the Fund underweight larger countries and overweight smaller countries.
  • In addition, the Fund's emphasis on diversification at the sector level within each country also had a strongly negative impact on relative returns.
  • Finally, frontier countries included in the Fund, but not in the Index, mildly contributed to relative performance, as our portfolio held larger positions to those frontier market countries which outperformed the Index.

Historical Returns (%)as of Jun 30, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
Fund at NAV 0.14 3.21 13.31 16.10 -2.37 2.07 0.31
Fund w/Max Sales Charge -0.86 2.21 12.31 15.10 -2.37 2.07 0.31
MSCI Emerging Markets Index3 1.01 6.27 18.43 23.75 1.07 3.95 1.91
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: 1%.

Fund Factsas of Jun 30, 2017

Class C Inception 06/30/2006
Expense Ratio4 2.13%

Contributors 

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

  • An underweight to Brazil contributed to performance versus the Index, as markets declined on growing evidence of massive corruption among senior government members.
  • An overweight to Turkey also benefited relative performance, as Turkish equities rallied on the passage of a referendum giving more power to President Erdogan. Many hope this will stabilize the volatile political situation which has existed since last July's coup attempt.
  • The overweight to Greece also lifted performance relative to the Index. Greek stocks soared as investors cheered a debt deal between the Greek government and Eurozone authorities.

Detractors 

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

  • An underweight to China detracted from performance versus the Index, as economic data showed accelerating growth in its manufacturing and non-manufacturing sectors, despite a crackdown by the central government on shadow-banking.
  • An underweight to Korea also detracted from performance, as Korean equities rallied over the quarter. This rally was supported by the cheapness of the Korean equity market, improved earnings in its technology sector, and the successful presidential election.
  • An underweight to Taiwan further hurt relative performance, as Taiwanese stocks increased on the back of higher prices for technology stocks. Two-thirds of Taiwan's market capitalization is in the information technology sector.

Investment Outlook And Fund Positioning 

Commentators have expressed a wide range of opinions regarding the emerging-market asset class. Regardless of the near term forecast, many observers believe that persistent demographic and economic trends give emerging-market economies a long-term advantage. While emerging-market equities may continue to demonstrate heightened volatility, they may do so against a backdrop of generally rising prices.

How does one invest in this space with so much short-term uncertainty? We believe that managing risk by broadly diversifying, avoiding concentrations and portfolio rebalancing are all key aspects that help address thoughtful investment decisions. Parametric's emerging market investment strategy relies on a rules based approach, in combination with a systematic rebalancing discipline, to reduce concentrations, while emphasizing broad diversification in seeking its objective of long-term capital appreciation.

Top 10 Holdings (%)5,6as of Jun 30, 2017

America Movil SA 0.90
China Mobile Limited 0.72
Naspers Ltd. N-Shares 0.66
Grupo Televisa SAB 0.62
Sberbank 0.61
MTN Group Ltd. 0.55
Samsung Electronic 0.53
Cielo SA 0.53
Credicorp Ltd. 0.53
Gazprom 0.48
Total 6.12

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: 

Fund performance is 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. In emerging countries, these risks may be more significant. 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

Attribution available in Fund Literature tab.

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

About Risk: 

Fund performance is 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. In emerging countries, these risks may be more significant. 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
Thomas Seto

Thomas Seto

Head of Investment Management
Parametric Seattle Investment Center
Joined Parametric Portfolio Associates 1998

Thomas Seto is head of investment management with Parametric Portfolio Associates LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp. Tom is responsible for all portfolio management and trading at the Seattle Investment Center, and is a member of the executive committee. He joined Parametric in 1998.

Tom began his career in the investment management industry in 1991. Before joining Parametric, he served as the head of U.S. equity index investments at Barclays Global Investors.

Tom earned a B.S. in electrical engineering from the University of Washington and an MBA from the University of Chicago Booth School of Business.

Education
  • B.S. University of Washington
  • M.B.A Booth School of Business, University of Chicago

Experience
  • Managed Fund since 2007

Biography
Timothy W. Atwill, Ph.D., CFA

Timothy W. Atwill, Ph.D., CFA

Head of Investment Strategy
Parametric Seattle Investment Center
Joined Parametric Portfolio Associates 2010

Tim Atwill is head of investment strategy with Parametric Portfolio Associates LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp. He leads Parametric's investment strategy team and is responsible for managing the continued evolution of Parametric's investment strategies and communicating these strategies to external audiences.

Before joining Parametric, Tim was affiliated with Russell Investments in its manager research unit, performing due diligence duties for the firm's consulting clients, and in its trading group, implementing derivative strategies for institutional clients. Previously, he was a non-life actuary and portfolio manager at Safeco Insurance Company.

Tim earned a B.A. in Mathematics from Reed College and a Ph.D. in mathematics from Dartmouth College. He holds the FCAS designation from the Casualty Actuarial Society and is a CFA charterholder.

Education
  • B.A. Reed College
  • Ph.D. Dartmouth College

Experience
  • Managed Fund since 2014


Literature

Literature

Fact Sheet

Download - Last updated: Jun 30, 2017

Commentary

Download - Last updated: Jun 30, 2017

Attribution

Download - Last updated: Aug 31, 2017

Annual Report

Download - Last updated: Jan 31, 2017

Full Prospectus

Download - Last updated: Jun 1, 2017

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

Download

SAI

Download - Last updated: Jun 1, 2017

Semi-Annual Report

Download - Last updated: Jul 31, 2017

Summary Prospectus

Download - Last updated: Jun 1, 2017

Currency hedging in the emerging markets: All pain, no gain

Download - Last updated: May 23, 2017

MSCI: China A-shares still not ready for prime time

Download - Last updated: Jul 1, 2016

XBRL

Download - Last updated: Jun 9, 2017