Overview

The Fund has not paid a capital gain since its inception.1

Tax-managed equity investing can help cushion the effect of future increases in income tax and capital gains rates.

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 3.97 7.42 5.67 22.76 9.64 12.97 6.98
Return After Taxes on Dist 22.44 9.34 12.68 6.72
Return After Taxes on Dist & Sales of Fund Shares 13.13 7.47 10.37 5.63
S&P 500 Index2 3.97 8.04 5.94 24.98 10.62 14.00 7.61
12/31/2016
Fund at NAV 1.66 3.74 8.77 8.77 7.73 13.69 6.34
Return After Taxes on Dist 8.48 7.44 13.40 6.08
Return After Taxes on Dist & Sales of Fund Shares 5.21 5.98 10.99 5.09
S&P 500 Index2 1.98 3.82 11.96 11.96 8.86 14.64 6.94
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. 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. The share class has no sales charge.

Fund Factsas of Feb 28, 2017

Class I Inception 02/28/2001
Performance Inception 03/29/1966
Investment Objective Long-term, after-tax return
Total Net Assets3 $3.0B
Minimum Investment $250000
Expense Ratio4 0.72%
CUSIP 277911459

Top 10 Holdings (%)5,6as of Feb 28, 2017

Apple Inc
Facebook Inc
Wells Fargo & Co
JPMorgan Chase & Co
Amazon.com Inc
Exxon Mobil Corp
Alphabet Inc - CL C
Intel Corp
Johnson & Johnson
Alphabet Inc - CL A
Total 22.82

Portfolio Management

Lewis R. Piantedosi Managed Fund since 2006
Yana S. Barton, CFA Managed Fund since 2008
Michael A. Allison, CFA Managed Fund since 2008

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. 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. 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. 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 3.97 7.42 5.67 22.76 9.64 12.97 6.98
Return After Taxes on Dist 22.44 9.34 12.68 6.72
Return After Taxes on Dist & Sales of Fund Shares 13.13 7.47 10.37 5.63
S&P 500 Index2 3.97 8.04 5.94 24.98 10.62 14.00 7.61
Morningstar™ Large Blend Category7 3.60 7.29 5.49 23.36 8.39 12.33 6.63
12/31/2016
Fund at NAV 1.66 3.74 8.77 8.77 7.73 13.69 6.34
Return After Taxes on Dist 8.48 7.44 13.40 6.08
Return After Taxes on Dist & Sales of Fund Shares 5.21 5.98 10.99 5.09
S&P 500 Index2 1.98 3.82 11.96 11.96 8.86 14.64 6.94
Morningstar™ Large Blend Category7 1.70 3.86 10.37 10.37 6.80 13.18 6.07
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. 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. The share class has no sales charge.

Calendar Year Returns (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fund at NAV 4.48 -32.92 22.96 12.40 0.48 15.12 32.01 12.42 2.28 8.77
S&P 500 Index2 5.49 -37.00 26.46 15.06 2.11 16.00 32.39 13.69 1.38 11.96

Fund Facts

Expense Ratio4 0.72%
Class I Inception 02/28/2001
Performance Inception 03/29/1966
Distribution Frequency Annually

Risk Measures (3 Year)8as of Feb 28, 2017

Alpha (%) -0.96
Beta 1.01
R-Squared (%) 98.26
Standard Deviation (%) 10.57
Sharpe Ratio 0.90

Morningstar™ Ratingsas of Feb 28, 2017

Time Period Rating Funds in
Large Blend
Category
Overall *** 1254
3 Years *** 1254
5 Years *** 1110
10 Years *** 821
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 $20.00 -$0.02
Mar 23, 2017 $20.02 -$0.02
Mar 22, 2017 $20.04 $0.03
Mar 21, 2017 $20.01 -$0.27
Mar 20, 2017 $20.28 -$0.04
Mar 17, 2017 $20.32 -$0.04
Mar 16, 2017 $20.36 $0.01
Mar 15, 2017 $20.35 $0.13
Mar 14, 2017 $20.22 -$0.05
Mar 13, 2017 $20.27 $0.02

Distribution History9

Ex-Date Distribution Reinvest NAV
Dec 15, 2016 $0.21720 $19.30
Dec 17, 2015 $0.20980 $17.74
Dec 19, 2014 $0.19910 $17.63
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
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. 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. 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. 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 (%)6,10as of Feb 28, 2017

U.S. Common Stocks 96.22
Foreign Common Stocks 2.19
Cash 1.59
Total 100.00

Portfolio Statisticsas of Feb 28, 2017

Average Market Cap $182.1B
Price/Earnings Ratio 18.89
Number of Issuers 459
Price/Book Ratio 3.38
Last Capital Gain Date Never

GICS Sector Breakdown (%)6as of Feb 28, 2017

Sector Fund S&P 500 Index2
Consumer Discretionary 13.94 12.09
Consumer Staples 9.48 9.45
Energy 6.57 6.63
Financials 18.77 14.75
Health Care 13.05 14.07
Industrials 10.68 10.20
Information Technology 23.32 21.51
Materials 1.97 2.83
Real Estate 0.05 2.85
Telecom Services 0.35 2.42
Utilities 0.21 3.19
Cash 1.59

Fund Holdings (%)6,11as of Jan 31, 2017

Holding % of Net Assets
Apple Inc 3.26%
Facebook Inc 2.68%
Wells Fargo & Co 2.46%
JPMorgan Chase & Co 2.24%
Exxon Mobil Corp 2.24%
Amazon.com Inc 2.19%
Alphabet Inc - CL C 1.97%
Intel Corp 1.97%
Walt Disney Co 1.88%
Alphabet Inc - CL A 1.84%
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. 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. 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. 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 Index2, rose 3.82%. The technology-laden Nasdaq Index13 added 1.34%. Globally, the MSCI EAFE Index14 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 Tax Managed Growth Fund 1.2 (the Fund) underperformed its benchmark, the S&P 500 Index (the Index)2, for the quarter ended December 31, 2016, returning 3.74% for Class I shares at net asset value versus the Index's 3.82% return.

  • The Fund's underperformance relative to the Index was due primarily to stock selection.
  • Of the 11 economic sectors in the Index, eight posted positive returns for the quarter. The Fund had positive returns in six sectors.
  • The top-performing economic sectors in the Index were more cyclical in nature, with the highest returns coming from the financials, materials, energy and industrials sectors. The worst-performing sectors were the defensive areas of the Index, with consumer staples, health care, utilities and real estate posting the quarter's weakest returns. During the quarter and second half of the year, high beta stocks surged. Also, as the market's perception of the expansion broadened, value stocks outperformed growth stocks.

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
Fund at NAV 1.66 3.74 8.77 8.77 7.73 13.69 6.34
Return After Taxes on Dist 8.48 7.44 13.40 6.08
Return After Taxes on Dist & Sales of Fund Shares 5.21 5.98 10.99 5.09
S&P 500 Index2 1.98 3.82 11.96 11.96 8.86 14.64 6.94
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. 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. The share class has no sales charge.

Fund Factsas of Dec 31, 2016

Class I Inception 02/28/2001
Performance Inception 03/29/1966
Expense Ratio4 0.72%

Contributors 

Financials, real estate and utilities were the Fund's top-performing sectors versus the Index. An overweight to the surging financials sector and large underweights to real estate and utilities accounted for the relative success. Stock selection decisions in financials also boosted Fund performance.

  • At the individual stock level, the top five contributors to relative performance were financial companies. After the election of Donald Trump, the prospect of higher net interest margins and less industry regulation increased. As a result, top contributors JPMorgan, Goldman Sachs, Charles Schwab, Wells Fargo and Morgan Stanley saw their share prices rise following the election.
  • Marriott International was also a strong contributor. During the period, the company reported financial results that were ahead of consensus estimates. Also, their stock price received a boost from the cyclical rally that took place following November's election.
  • An overweight position in Boeing contributed to relative returns. During the period, the aerospace company reported better-than-expected third quarter earnings and raised their future earnings guidance significantly.

Detractors 

Stock selection drove returns in the three worst-performing sectors versus the Index -- information technology, energy and health care. Sector allocations in information technology and energy also had a negative effect on Fund performance.

  • Despite reporting third quarter results that beat expectations, Facebook shares sold off. The trading action was primarily a function of management's cautious 2017 revenue guidance. Also weighing on the stock price was the market's rotation into smaller cyclicals.
  • After the election of Donald Trump, the prospect of higher net interest margins and less financial industry regulation increased. As a result, shares of Bank of America moved sharply higher. The Fund was underweight the stock relative to the Index, therefore detracting from performance.
  • Portfolio overweight Teva Pharmaceutical announced weaker third quarter sales figures. Also, they trimmed their earnings and sales guidance for 2016.

Investment Outlook And Fund Positioning 

Much of investors' attention will be directed at how effective the president-elect is in executing on his agenda. It appears that his first order of business is to repeal the Affordable Care Act. This will likely be followed by targeted cuts in regulation for certain industries as well as a restructuring of corporate taxes.

Third quarter earnings reports (announced in Q4) illustrated that the market emerged from an EPS recession. Investors will be keeping a close eye on cyclical forces such as the U.S. dollar and the price of oil. In recent years, both have been volatile and have produced headwinds for profits.

Another observation worth noting is that the environment for stock pickers is improving. Two cyclical forces that have challenged active equity managers over the past decade have been the high level of stock correlations and their below-average return dispersions. If stocks are moving together in unison, the talent of the manager is muted. However, pairwise correlations have now fallen to some of their lowest levels in a decade and return dispersions have risen to their long-term average.

Top 10 Holdings (%)5,6as of Dec 31, 2016

Apple Inc 3.15
Exxon Mobil Corp 2.44
Wells Fargo & Co 2.44
Facebook Inc 2.40
JPMorgan Chase & Co 2.31
Amazon.com Inc 2.02
Intel Corp 1.96
Alphabet Inc - CL C 1.93
Johnson & Johnson 1.85
Alphabet Inc - CL A 1.80
Total 22.31

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. 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. 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. 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 currently available.

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. 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. 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. 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
Lewis R. Piantedosi

Lewis R. Piantedosi

Vice President, Eaton Vance Management
Joined Eaton Vance 1999

Lewis Piantedosi is a vice president of Eaton Vance Management, director of growth equity and team leader of Eaton Vance's growth team, where he also serves as a portfolio manager. He is responsible for buy and sell decisions, portfolio construction and risk management for the firm's growth equity strategies. He is a member of the firm's Equity Strategy Committee. He joined Eaton Vance in 1993.

Lew began his career in the investment management industry in 1993. Prior to rejoining Eaton Vance in 1999, he served as partner, portfolio manager and equity analyst with Freedom Capital Management. Previously, he was a research analyst with Eaton Vance Management.

Lew earned a B.A. from Framingham State College and an MBA from Bentley University.

Education
  • B.A. Framingham State College
  • M.B.A McCallum Graduate School of Business, Bentley College

Experience
  • Managed Fund since 2006

Biography
Yana S. Barton, CFA

Yana S. Barton, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 1997

Yana Barton is a vice president of Eaton Vance Management and portfolio manager on Eaton Vance’s growth team. She is responsible for buy and sell decisions, portfolio construction and risk management for the firm’s growth equity strategies. She is a member of the firm’s Equity Strategy Committee. She began her career in the investment management industry with Eaton Vance in 1997.

Yana earned a B.S. from the University of Florida. She is a member of the Boston Security Analysts Society and is a CFA charterholder.

Education
  • B.S. University of Florida

Experience
  • Managed Fund since 2008

Biography
Michael A. Allison, CFA

Michael A. Allison, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 2000

Michael Allison is a vice president of Eaton Vance Management, a director of equity strategy implementation and a structured equity portfolio manager on a number of Eaton Vance’s global and domestic equity income and tax-managed equity portfolios. On those funds, he is responsible for portfolio construction, tax oversight and risk management. He is a member of the firm’s Equity Strategy Committee. He joined Eaton Vance in 2000.

Mike began his career in the investment management industry in 1988. Before joining Eaton Vance, Mike was an equity analyst for Schroder Investment Management North America Inc. He was also affiliated with Fleet Investment Advisors and Phoenix Home Life Mutual Fund Insurance Co.

Mike earned a B.S.B.A. from the University of Denver. He is a member of the Boston Security Analysts Society and is a CFA charterholder.

Education
  • B.S.B.A., The University of Denver

Experience
  • Managed Fund since 2008


Literature

Literature

Fact Sheet

Download - Last updated: Dec 31, 2016

Commentary

Download - Last updated: Dec 31, 2016

Annual Report

Download - Last updated: Dec 31, 2016

Full Prospectus

Download - Last updated: May 1, 2016

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

Download

SAI

Download - Last updated: May 1, 2016

Semi-Annual Report

Download - Last updated: Jun 30, 2016

Summary Prospectus

Download - Last updated: May 1, 2016

XBRL

Download - Last updated: May 12, 2016