Overview

Growth of $10,000

10-year period ended 12/31/2016

  • Class A at NAV

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
01/31/2017
Fund at NAV 2.63 4.07 2.63 -1.75 5.06 14.20 9.46
Fund w/Max Sales Charge -3.31 -1.93 -3.31 -7.44 3.01 12.86 8.81
MSCI World Health Care Index1 2.19 3.88 2.19 3.37 6.00 13.41 7.43
12/31/2016
Fund at NAV 1.59 -7.71 -14.89 -14.89 5.52 14.41 9.50
Fund w/Max Sales Charge -4.27 -13.02 -19.80 -19.80 3.45 13.07 8.85
MSCI World Health Care Index1 1.57 -5.35 -6.81 -6.81 5.46 13.43 7.40
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns for other classes of shares offered by the Fund are different. Performance less than or equal to one year is cumulative. Max Sales Charge: 5.75%.

Fund Factsas of Jan 31, 2017

Class A Inception 07/26/1985
Investment Objective Long-term capital growth
Total Net Assets $1.1B
Minimum Investment $1000
Expense Ratio (Gross)2 1.40%
Expense Ratio (Net)2,3 1.39%
CUSIP 277902813

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

Roche Holding AG
Allergan plc
Eli Lilly & Co
Celgene Corp
Medtronic PLC
UnitedHealth Group Inc
Zoetis Inc
Biogen Inc
AbbVie Inc
Pfizer Inc
Total 45.47

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 Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
01/31/2017
Fund at NAV 2.63 4.07 2.63 -1.75 5.06 14.20 9.46
Fund w/Max Sales Charge -3.31 -1.93 -3.31 -7.44 3.01 12.86 8.81
MSCI World Health Care Index1 2.19 3.88 2.19 3.37 6.00 13.41 7.43
Morningstar™ Health Category6 3.89 7.11 3.89 7.98 6.79 16.21 10.38
12/31/2016
Fund at NAV 1.59 -7.71 -14.89 -14.89 5.52 14.41 9.50
Fund w/Max Sales Charge -4.27 -13.02 -19.80 -19.80 3.45 13.07 8.85
MSCI World Health Care Index1 1.57 -5.35 -6.81 -6.81 5.46 13.43 7.40
Morningstar™ Health Category6 -0.57 -6.37 -10.60 -10.60 7.07 16.84 10.32
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns for other classes of shares offered by the Fund are different. Performance less than or equal to one year is cumulative. Max Sales Charge: 5.75%.

Calendar Year Returns (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fund at NAV 6.49 -7.24 9.89 11.13 4.75 15.49 44.56 27.39 8.39 -14.89
MSCI World Health Care Index1 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)2 1.40%
Expense Ratio (Net)2,3 1.39%
Class A Inception 07/26/1985
Distribution Frequency Annually

Risk Measures (3 Year)7as of Jan 31, 2017

Alpha (%) -1.77
Beta 1.21
R-Squared (%) 87.24
Standard Deviation (%) 16.17
Sharpe Ratio 0.30

Morningstar™ Ratingsas of Jan 31, 2017

Time Period Rating Funds in
Health
Category
Overall *** 125
3 Years *** 125
5 Years ** 118
10 Years *** 95
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
Feb 17, 2017 $9.71 $0.00
Feb 16, 2017 $9.71 -$0.01
Feb 15, 2017 $9.72 $0.10
Feb 14, 2017 $9.62 $0.05
Feb 13, 2017 $9.57
Feb 10, 2017 $9.52 $0.00
Feb 09, 2017 $9.52 $0.06
Feb 08, 2017 $9.46 $0.01
Feb 07, 2017 $9.45 $0.02
Feb 06, 2017 $9.43 $0.00
View All

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 13, 2016 $1.16110 $9.03
Dec 15, 2015 $0.15340 $1.01810 $11.82
Dec 16, 2014 $0.56450 $1.45310 $11.95
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. 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 (%)5,9as of Dec 31, 2016

U.S. Common Stocks 82.60
Foreign Common Stocks 16.84
Cash 0.57
Total 100.00

Portfolio Statisticsas of Dec 31, 2016

Number of Holdings 36

Sector Breakdown (%)5as of Dec 31, 2016

Sector Fund MSCI World Health Care Index1
Biotechnology 31.80 17.37
Health Care Distributors 0.00 2.31
Health Care Equipment 15.14 13.52
Health Care Facilities 1.99 1.17
Health Care Services 0.00 3.76
Health Care Supplies 1.32 1.90
Health Care Technology 0.00 0.48
Life Sciences Tools & Services 2.87 3.51
Managed Health Care 4.97 7.59
Pharmaceuticals 41.34 48.39
Cash 0.57 0.00

Assets by Country (%)5as of Dec 31, 2016

United States 83.83
Switzerland 7.72
Denmark 3.40
Belgium 2.33
Japan 2.16
Cash & Other Assets 0.57
Total 100.00

Geographic Mix (%)5as of Dec 31, 2016

North America 83.83
Europe 13.45
Asia/Pacific 2.16
Cash & Other Assets 0.57
Total 100.00

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

Holding % of Net Assets
Roche Holding AG 6.16%
Allergan plc 5.98%
Eli Lilly & Co 5.16%
Celgene Corp 4.56%
Medtronic PLC 4.20%
UnitedHealth Group Inc 3.98%
Zoetis Inc 3.93%
Biogen Inc 3.88%
AbbVie Inc 3.83%
Pfizer Inc 3.82%
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 Dec 31, 2016

Global stock markets delivered 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.

The MSCI World Index11 finished the quarter up 1.86%, driven by strong returns within financials, energy and telecommunication services. Healthcare, which was down significantly in October leading up to the election, was the second worst performing sector (behind real estate) in the index.

Performance Summary 

For the third quarter of 2016, the Worldwide Health Sciences Fund Class A Shares underperformed the MSCI World Healthcare Index (the Index), returning -7.74% at NAV, vs. -5.35% for the Index.

  • The fourth quarter was difficult for nearly all of the industries within the healthcare sector. Pharmaceuticals, which was hit hard in October as investors predicted a Hillary Clinton presidential victory, pulled down Index returns for the quarter. Equipment and supplies, healthcare technology and biotech were also down significantly during the quarter.
  • Healthcare providers & services was the lone positive-performing industry within healthcare during the quarter, as insurers and providers rallied post-election.
  • For the quarter, both negative stock selection and sector positioning relative to the Index were overall detractors to Fund performance.
  • The Fund's overweight to the United States helped performance, as the U.S. outperformed much of the world during the quarter. Additionally, the Fund's underweight to Japan and avoidance of Australia aided relative returns.

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
Fund at NAV 1.59 -7.71 -14.89 -14.89 5.52 14.41 9.50
Fund w/Max Sales Charge -4.27 -13.02 -19.80 -19.80 3.45 13.07 8.85
MSCI World Health Care Index1 1.57 -5.35 -6.81 -6.81 5.46 13.43 7.40
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns for other classes of shares offered by the Fund are different. Performance less than or equal to one year is cumulative. Max Sales Charge: 5.75%.

Fund Factsas of Dec 31, 2016

Class A Inception 07/26/1985
Expense Ratio (Gross)2 1.40%
Expense Ratio (Net)2,3 1.39%

Contributors 

Positive contributors for the Fund's performance include:

  • The Fund's overweight to biotechnology, as well as strong stock selection within the group, was the largest contributor to performance.
  • The Fund's avoidance of healthcare technology companies had a positive impact on performance in the fourth quarter.
  • The top stock contributor for the quarter was Actelion, a Swiss-based biotechnology company which was up significantly during the quarter as the company is likely an attractive merger opportunity. The Fund is overweight Actelion.
  • Also within biotech, the Fund's overweight to Celgene Inc. was additive during the quarter, as the company posted strong third quarter earnings results, as well as a solid outlook for 2017. Incyte Corporation, a biopharma company which focuses on oncology and autoimmune diseases, also saw strong returns post-election, which boosted relative returns.
  • Additional contributors included Zoetis Inc, an animal healthcare specialty company that announced a dividend increase and share repurchase program at the beginning of December, and non-index name, WellCare Health Plans, a U.S. based small-cap health care provider specializing in government-sponsored managed care services.

Detractors 

Negative contributors for the Fund's performance include:

  • Stock selection was negative overall for the quarter, led by healthcare equipment & supplies. Selection within pharmaceuticals and life science tools was also a detractor to performance.
  • Relative performance was dampened by the Fund's underweight to healthcare providers and services, which was the strongest area within healthcare during the month.
  • Stock detractors for the quarter included an overweight to Illumina, a biomedical device and services company which announced disappointing third quarter earnings. Other detractors included Zimmer Biomet Holdings, a healthcare equipment company that reported mixed third quarter results and lowered future guidance, and Santen Pharmaceuticals company, a Japanese-based pharma and medical device company that weakened during the quarter.

Investment Outlook And Fund Positioning 

After months of hype surrounding the U.S. presidential election and discussions on what either a Hillary Clinton or Donald Trump presidency would mean for healthcare, all eyes now turn to President-elect Trump and his plans to overhaul the Affordable Care Act (ACA). Trump has said he wants to amend or repeal and replace the ACA, but even within the republican party, there is little agreement on exactly how to approach this extremely complex issue.

Our view is that the new administration will make a lot of noise about fulfilling its campaign pledge to repeal Obamacare, but the details for a solution will take time to iron out. We expect much debate surrounding the health insurance exchanges. Although a repeal is imminent, there are elements of the ACA that will likely remain. Our research suggests that a new healthcare plan will take time to be agreed upon.

While it has been a very challenging year for investors in health care, we believe there are great opportunities going forward. Biotechnology stocks were one of the weakest sectors this year and have been volatile in the weeks following the presidential election. Although there is significant uncertainty about the future of the ACA and how the policies of the Trump administration could impact drug pricing, we believe the setup for a biotech recovery rally is looking positive. There are many different factors to weigh as the presidential administration turns over, but one thing is certain: There will always be a market for innovative solutions to the world's health problems.

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

Roche Holding AG 6.16
Allergan plc 5.98
Eli Lilly & Co 5.16
Celgene Corp 4.56
Medtronic PLC 4.20
UnitedHealth Group Inc 3.98
Zoetis Inc 3.93
Biogen Inc 3.88
AbbVie Inc 3.83
Pfizer Inc 3.82
Total 45.47

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 of the firm's health care fund and a senior 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: Dec 31, 2016

Commentary

Download - Last updated: Dec 31, 2016

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 29, 2016

Summary Prospectus

Download - Last updated: Jan 1, 2017

XBRL

Download - Last updated: Jan 11, 2017