Overview

Growth of $10,000

10-year period ended 06/30/2017

  • Class A at NAV

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 1.39 5.49 16.99 7.69 4.29 14.08 9.85
Fund w/Max Sales Charge -3.61 0.49 11.99 2.91 3.31 13.84 9.85
MSCI World Health Care Index2 0.99 3.80 17.19 10.77 6.39 14.38 8.91
06/30/2017
Fund at NAV 3.47 5.19 14.74 5.63 5.48 13.79 9.60
Fund w/Max Sales Charge -1.53 0.19 9.74 0.93 4.49 13.55 9.60
MSCI World Health Care Index2 2.71 6.93 15.96 9.83 7.08 14.89 8.61
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%.

Fund Factsas of Aug 31, 2017

Class B Inception 09/23/1996
Performance Inception 07/26/1985
Investment Objective Long-term capital growth
Total Net Assets $1.2B
Minimum Investment $1000
Expense Ratio (Gross)3 2.15%
Expense Ratio (Net)3,4 2.14%
CUSIP 277902847

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

Allergan PLC
Roche Holding AG
Celgene Corp
Eli Lilly & Co
UnitedHealth Group Inc
Johnson & Johnson
Pfizer Inc
Zoetis Inc
Shire PLC
Biogen Inc
Total 42.60

Portfolio Management

Jason Kritzer, CFA Managed Fund since 2016
Samantha Pandolfi, CFA Managed Fund since 2016

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. Because the Fund investments may be concentrated in a particular industry, the Fund share value may fluctuate more than that of a less concentrated fund. 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. 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 Jun 30, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
08/31/2017
Fund at NAV 1.39 5.49 16.99 7.69 4.29 14.08 9.85
Fund w/Max Sales Charge -3.61 0.49 11.99 2.91 3.31 13.84 9.85
MSCI World Health Care Index2 0.99 3.80 17.19 10.77 6.39 14.38 8.91
Morningstar Health Category7 2.35 9.23 21.99 16.56 8.53 17.50 11.98
06/30/2017
Fund at NAV 3.47 5.19 14.74 5.63 5.48 13.79 9.60
Fund w/Max Sales Charge -1.53 0.19 9.74 0.93 4.49 13.55 9.60
MSCI World Health Care Index2 2.71 6.93 15.96 9.83 7.08 14.89 8.61
Morningstar Health Category7 5.88 6.94 18.41 17.06 9.07 17.39 11.46
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%.

Calendar Year Returns (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fund at NAV 5.69 -7.94 9.12 10.31 3.98 14.67 43.41 26.54 7.52 -15.55
MSCI World Health Care Index2 3.94 -21.50 18.89 2.41 9.46 17.54 36.27 18.10 6.60 -6.81

Fund Facts

Expense Ratio (Gross)3 2.15%
Expense Ratio (Net)3,4 2.14%
Class B Inception 09/23/1996
Performance Inception 07/26/1985
Distribution Frequency Annually

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

Alpha (%) -2.59
Beta 1.14
R-Squared (%) 87.56
Standard Deviation (%) 14.68
Sharpe Ratio 0.27

Morningstar Rating™as of Aug 31, 2017

Time Period Rating Funds in
Health
Category
Overall ** 126
3 Years ** 126
5 Years ** 119
10 Years ** 98
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 $10.93 -$0.05
Sep 20, 2017 $10.98 $0.00
Sep 19, 2017 $10.98 -$0.08
Sep 18, 2017 $11.06 -$0.01
Sep 15, 2017 $11.07 -$0.03
Sep 14, 2017 $11.10 $0.00
Sep 13, 2017 $11.10 -$0.06
Sep 12, 2017 $11.16 $0.02
Sep 11, 2017 $11.14 $0.02
Sep 08, 2017 $11.12 $0.04

Distribution History9

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 History9

Ex-Date Short-Term Long-Term Reinvest NAV
Dec 13, 2016 $1.16110 $9.28
Dec 15, 2015 $0.15340 $1.01810 $12.21
Dec 16, 2014 $0.56450 $1.45310 $12.39
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. Because the Fund investments may be concentrated in a particular industry, the Fund share value may fluctuate more than that of a less concentrated fund. 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. 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 (%)6,10as of Jun 30, 2017

U.S. Common Stocks 80.33
Foreign Common Stocks 19.29
Cash 0.38
Total 100.00

Portfolio Statisticsas of Jun 30, 2017

Number of Holdings 48

Sector Breakdown (%)6as of Jun 30, 2017

Sector Fund MSCI World Health Care Index2
Biotechnology 26.03 16.73
Health Care Distributors 0.00 2.22
Health Care Equipment 16.72 14.42
Health Care Facilities 1.69 1.32
Health Care Services 0.53 3.44
Health Care Supplies 3.06 2.15
Health Care Technology 0.00 0.69
Life Sciences Tools & Services 2.38 4.02
Managed Health Care 9.83 8.10
Pharmaceuticals 39.37 46.90
Cash 0.38 0.00

Assets by Country (%)6as of Jun 30, 2017

United States 80.33
Switzerland 5.83
Ireland 3.87
Germany 2.32
Belgium 2.06
Japan 1.98
United Kingdom 1.97
Denmark 1.25
Cash & Other Assets 0.38
Total 100.00

Geographic Mix (%)6as of Jun 30, 2017

North America 80.33
Europe 17.31
Asia/Pacific 1.98
Cash & Other Assets 0.38
Total 100.00

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

Holding % of Net Assets
Allergan PLC 5.65%
Roche Holding AG 5.31%
Celgene Corp 4.82%
UnitedHealth Group Inc 4.69%
Eli Lilly & Co 4.64%
Johnson & Johnson 4.01%
Pfizer Inc 3.83%
Zoetis Inc 3.51%
Shire PLC 3.41%
Gilead Sciences Inc 3.08%
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. Because the Fund investments may be concentrated in a particular industry, the Fund share value may fluctuate more than that of a less concentrated fund. 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. 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 Jun 30, 2017

Global stock markets delivered solid results in the second quarter of 2017, as broad economic expansion continued to offset political uncertainties in some regions.

In the U.S., ongoing concerns about prospects for President Trump's economic policies restrained stocks early in the quarter. Equities subsequently shook off these worries amid positive economic data. In particular, manufacturing gains and a further decline in the jobless rate provided encouragement to investors. Consumer spending also rose despite a decline in auto sales from their post-recession peak.

Amid the encouraging economic data, the U.S. Federal Reserve (Fed) raised interest rates in June for the third time since December 2016. The Fed also said it would start gradually selling off the securities it bought during and after the financial crisis to boost the economy.

On a global basis, stronger economic growth aided stocks in Europe and Japan. The election of a new government in France helped to ease political uncertainties, although an election setback for British Prime Minister Theresa May added to confusion about Britain's plans to exit the European Union. In China, the success of the government's stimulus policies led to a rise in interest rates to avoid economic overheating. China's upswing helped boost growth elsewhere, particularly in emerging markets.
The MSCI World12 finished the quarter up 4.03%, driven by solid returns across the majority of sectors. Nine of the 11 index sectors posted positive returns for the quarter, led by healthcare, industrials, and financials, while energy and telecommunications posted negative returns for the period.

Performance Summary 

For the second quarter of 2017, the Worldwide Health Sciences Fund Class A Shares lagged the MSCI World Healthcare Index (the Index)2, returning 5.43% at NAV, vs. 6.94% for the Index.

  • Healthcare is off to a strong start in 2017, with all index sub-industries posting positive returns for the first quarter. The healthcare sector's positive performance was driven by a number of factors, including strong earnings releases from major healthcare companies, new drug approvals, positive clinical trial results coming out of the biotechnology industry and a stall in the President's healthcare agenda in Congress.
  • Life science tools and healthcare technology were once again the leading industries in the second quarter, followed by equipment and suppliers and healthcare providers. Pharmaceuticals and biotechnology, which together make up nearly 65% of the index, were the laggards during the quarter, although both industries returned over 5% within the index.
  • Stock selection within the Fund was negative for the quarter, while industry selection relative to the index had little overall impact.
  • The Fund's underweight to European health care stocks was negative during the quarter. The overweight in the US was moderately negative.

Historical Returns (%)as of Jun 30, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
Fund at NAV 3.47 5.19 14.74 5.63 5.48 13.79 9.60
Fund w/Max Sales Charge -1.53 0.19 9.74 0.93 4.49 13.55 9.60
MSCI World Health Care Index2 2.71 6.93 15.96 9.83 7.08 14.89 8.61
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%.

Fund Factsas of Jun 30, 2017

Class B Inception 09/23/1996
Performance Inception 07/26/1985
Expense Ratio (Gross)3 2.15%
Expense Ratio (Net)3,4 2.14%

Contributors 

Positive contributors for the Fund's performance include:

  • Stock selection within healthcare providers, healthcare equipment, and life science and tools were all positive contributors for the quarter. Additionally, the Fund's overweight to equipment & supplies, and underweight to pharmaceuticals aided relative returns.
  • The top contributors during the second quarter were within healthcare equipment and suppliers. Intuitive Surgical, a robotic surgery manufacturer, was the top contributor for the quarter. Intuitive delivered strong second quarter performance and provided a favorable outlook for both its sales ramp and product pipeline. Elsewhere within the industry an overweight position to Edwards Lifesciences, a leading manufacturer of heart valves, posted strong quarterly results.
  • Within pharmaceuticals, the Fund's overweight in Zoetis, the leading animal health company, contributed to performance. The Fund also benefited from its underweight to Merck & Co, a sizable index constituent.
  • Additional contributors included healthcare equipment company Cooper Companies, European pharmaceutical drug maker Patheon NV which was acquired by Thermo Fisher and health insurer Aetna Inc.

Detractors 

Negative contributors for the Fund's performance include:

  • Biotechnology was the largest detractor to relative performance during the quarter, primarily caused by negative stock selection and an overweight position relative to the Index. Shire PLC and Alexion were the largest stock detractors within biotech.
  • Stock selection within pharmaceuticals negatively impacted performance during the quarter. An overweight in Eli Lilly in the U.S. and UCB in Europe combined with an underweight in Bayer in Europe detracted from performance.
  • Additional detractors during the quarter included an overweight in Wright Medical Group, a maker of joint implants and bone graft substitutes, an overweight in Santen Pharmaceuticals and an underweight in Novartis.

Investment Outlook And Fund Positioning 

The overall healthcare sector has been stuck in a range since mid-2015 after a strong multi-year rally. We think that within the broader sector, specific industries such as pharmaceuticals and biotech are offering value. Both industries are trading on the lower end of their historical valuation ranges.

Efforts to repeal and replace the Affordable Care Act have stalled. The Republican-led Congress has been unable to find a middle ground to satisfy both the conservatives and moderates within the Republican party. As a result, industry-related fees/taxes for medical devices, pharmaceutical and the health insurance industries remain in place. Medicaid expansion, once in jeopardy under the proposed legislation, appears likely to continue. We are watching for the potential of increased funding to stabilize the individual insurance exchanges. However, the congressional agenda starting in September is jam-packed with items such as the FY18 budget, the debt ceiling debate and tax reform.

We seek to invest in innovative companies. We favor companies that can deliver strong returns on capital and have a solid competitive advantage. On the innovation-front, companies like Bristol Myers, Roche, and Merck are using on new approach to solve an old problem: cancer. For the past 30 years, oncology companies have been trying to move away from chemotherapy and target tumors directly. Now, the science is moving toward harnessing the human immune system to target tumors. The next five years should be very promising for cancer research. We continue to believe there will always be a market for innovative solutions to the world's health problems.

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

Allergan PLC 5.41
Roche Holding AG 5.33
Celgene Corp 5.00
Eli Lilly & Co 4.60
UnitedHealth Group Inc 4.51
Johnson & Johnson 3.97
Pfizer Inc 3.86
Zoetis Inc 3.48
Shire PLC 3.34
Biogen Inc 3.12
Total 42.60

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. Because the Fund investments may be concentrated in a particular industry, the Fund share value may fluctuate more than that of a less concentrated fund. 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. Smaller companies are generally subject to greater price fluctuations, limited liquidity, higher transaction costs and higher investment risk than larger, established companies. No fund is a complete investment program and you may lose money investing in a fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.

Attribution

No attribution information is 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. Because the Fund investments may be concentrated in a particular industry, the Fund share value may fluctuate more than that of a less concentrated fund. 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. 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
Jason Kritzer, CFA

Jason Kritzer, CFA

Vice President, Eaton Vance Management
Joined Eaton Vance 2012

Jason Kritzer is a vice president of Eaton Vance Management, portfolio manager and an equity analyst on Eaton Vance's growth and value teams. As a portfolio manager, he is responsible for buy and sell decisions, portfolio construction and risk management for the firm's health care portfolios. As an equity analyst, he is responsible for coverage of the pharmaceutical, health care equipment and biotechnology industries. He joined Eaton Vance in 2012.

Jason began his career in the investment management industry in 1999. He was previously affiliated with BlackRock, Inc. as a director and equity analyst covering the health care sector, and Putnam Investments as an equity research analyst covering health care, technology and business services. Prior to the investment management industry, Jason worked in the computer industry for Digital Equipment Corporation.

Jason earned a B.S.B.A. from Boston University, School of Management and an MBA from Columbia University, School of Business. He is a member of the Columbia Business School Ambassador Program. He is a CFA charterholder.

Education
  • B.S.B.A. Boston University
  • M.B.A. Columbia University

Experience
  • Managed Fund since 2016

 
Biography
Samantha Pandolfi, CFA

Samantha Pandolfi, CFA

Vice President, Eaton Vance Management (International) Limited
Joined Eaton Vance 2015

Samantha Pandolfi is a vice president of Eaton Vance Management (International) Limited and portfolio manager and research analyst on Eaton Vance's global equity team. She is primarily responsible for covering the health care sector for global large-cap portfolios. She joined Eaton Vance in 2015.

Samantha began her career in the investment management industry in 2000. Before joining Eaton Vance, she was an executive director and European and global health care portfolio manager at Goldman Sachs Asset Management (GSAM) for 15 years. She has also covered apparel/luxury goods, support services, leisure and cosmetics.

Samantha earned her J.D. from Universita' degli Studi La Sapienze and holds an MBA from INSEAD. She is a CFA charterholder.

Education
  • M.B.A. INSEAD
  • J.D. Universita' degli Studi La Sapienze

Experience
  • Managed Fund since 2016


Literature

Literature

Fact Sheet

Download - Last updated: Jun 30, 2017

Commentary

Download - Last updated: Jun 30, 2017

Annual Report

Download - Last updated: Aug 31, 2016

Full Prospectus

Download - Last updated: Jan 1, 2017

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

Download

SAI

Download - Last updated: Jan 1, 2017

Semi-Annual Report

Download - Last updated: Feb 28, 2017

Summary Prospectus

Download - Last updated: Apr 10, 2017

XBRL

Download - Last updated: Jan 11, 2017