Overview

Growth of $10,000

Since Fund Inception as of 12/31/14

  • Investor Class at NAV

Average Annual Returns (%) as of Dec 31, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years Life of Fund
02/28/2015
Fund at NAV 5.43 2.88 6.55 0.06 9.05 6.61
MSCI EAFE Index1 5.98 2.81 6.50 -0.03 9.41 7.78 6.60
12/31/2014
Fund at NAV -3.44 -3.13 -3.98 -3.98 9.80 5.43
MSCI EAFE Index1 -3.46 -3.57 -4.90 -4.90 11.05 5.33 5.42
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 one year is cumulative.

Fund Facts as of Feb 28, 2015

Investor Class Inception 04/01/2010
Investment Objective Long-term capital appreciation
Total Net Assets $98.7M
Minimum Investment $1000
Expense Ratio (Gross)2 1.34%
Expense Ratio (Net)2,3 0.90%
CUSIP 277923413

Top 10 Holdings (%)4,5 as of Feb 28, 2015

Nestle SA
Vodafone Group PLC
Novartis AG
Deutsche Telekom AG
GlaxoSmithKline PLC
National Grid PLC
KDDI Corporation
Telstra Corporation Limited
Royal Dutch Shell PLC Class A
Total SA
Total 8.56


Portfolio Management

David Stein, Ph.D. Managed Fund since inception
Thomas Seto Managed Fund since inception
Paul Bouchey, 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 share values are 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. 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

Average Annual Returns (%) as of Dec 31, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years Life of Fund
02/28/2015
Fund at NAV 5.43 2.88 6.55 0.06 9.05 6.61
MSCI EAFE Index1 5.98 2.81 6.50 -0.03 9.41 7.78 6.60
Morningstar™ Foreign Large Blend Category6 5.46 2.33 6.04 -0.06 8.33 7.29
12/31/2014
Fund at NAV -3.44 -3.13 -3.98 -3.98 9.80 5.43
MSCI EAFE Index1 -3.46 -3.57 -4.90 -4.90 11.05 5.33 5.42
Morningstar™ Foreign Large Blend Category6 -3.46 -3.18 -4.98 -4.98 10.22 5.04
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 one year is cumulative.

Calendar Year Returns (%)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fund at NAV -10.14 16.83 18.05 -3.98
MSCI EAFE Index1 13.54 26.34 11.17 -43.38 31.78 7.75 -12.14 17.32 22.78 -4.90

Fund Facts

Expense Ratio (Gross)2 1.34%
Expense Ratio (Net)2,3 0.90%
Investor Class Inception 04/01/2010
Distribution Frequency Annually


Risk Measures (3 Year)7 as of Feb 28, 2015

Alpha (%) 0.38
Beta 0.92
R-Squared (%) 96.30
Standard Deviation (%) 12.12
Sharpe Ratio 0.74


Morningstar™ Ratings as of Feb 28, 2015

Time Period Rating Rating (Load Waived) Funds in
Foreign Large Blend
Category
Overall *** 638
3 Years *** 638
Based on Risk-Adjusted Returns.

The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

© 2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers is responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on how a fund ranks on a Morningstar Risk-Adjusted Return measure against other funds in the same category. This measure takes into account variations in a fund's monthly performance after adjusting for sales loads (except for load-waived A shares) redemption fees, and the risk-free rate, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Load-waived A share star ratings do not include any front-end sales load and are intended for those investors who have access to such purchase terms (e.g., plan participants of a defined contribution plan). Not all A share mutual funds for which Morningstar calculates a load-waived A share star rating may actually waive their front-end sales load. Therefore, Morningstar strongly encourages investors to contact their investment professional to determine whether they are eligible to purchase the A share without paying the front load. The Morningstar Rating may differ among share classes of a mutual fund as a result of different sales loads and/or expense structure.

NAV History

Date NAV NAV Change
Mar 27, 2015 $12.01 $0.03
Mar 26, 2015 $11.98 $-0.11
Mar 25, 2015 $12.09 $-0.07
Mar 24, 2015 $12.16 $0.00
Mar 23, 2015 $12.16 $0.09
Mar 20, 2015 $12.07 $0.25
Mar 19, 2015 $11.82 $-0.13
Mar 18, 2015 $11.95 $0.24
Mar 17, 2015 $11.71 $-0.04
Mar 16, 2015 $11.75 $0.13

Distribution History8

Ex-Date Distribution Reinvest NAV
Dec 29, 2014 $0.25080 $11.45
Dec 26, 2013 $0.22970 $12.29
Aug 01, 2013 $0.00730 $11.60
Dec 27, 2012 $0.26670 $10.75
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 29, 2014 $0.41210 $11.45
No records in this table indicates that there has not been a capital gain greater than .0001 within the past 3 years.
Fund prospectus

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 as of month-end for the stated time period only; due to market volatility, the Fund's current performance may be lower or higher than quoted. For the Eaton Vance Fund's performance as of the most recent month-end, please refer to eatonvance.com. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. Returns shown at NAV unless noted otherwise. Returns for other classes of shares offered by the Fund are different. It is not possible to invest in an index.

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

About Risk 

Fund share values are 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. 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 (%)4 as of Feb 28, 2015

Foreign Common Stocks 99.19
Cash & Other Assets 0.81
Total 100.00

Portfolio Statistics as of Feb 28, 2015

Median Market Cap $4.2B
Price/Earnings Ratio 18.25
Price/Book Ratio 1.97
Number of Holdings 896
Countries Represented 21


GICS Sector Breakdown (%)4 as of Feb 28, 2015

Sector Fund MSCI EAFE Index1
Consumer Discretionary 11.79 12.96
Consumer Staples 10.77 11.27
Energy 6.13 5.49
Financials 12.64 25.63
Health Care 9.99 11.13
Industrials 11.75 12.65
Information Technology 9.31 4.74
Materials 10.65 7.72
Telecom Services 9.11 4.79
Utilities 7.05 3.62
Cash 0.81 0.00

Assets by Country (%)4 as of Feb 28, 2015

United Kingdom 16.01
Japan 15.87
Germany 8.02
Switzerland 7.90
France 7.85
Australia 7.79
Sweden 4.05
Italy 3.99
Netherlands 3.95
Hong Kong 3.93
View All


Geographic Mix (%)4 as of Feb 28, 2015

Europe except U.K. 51.52
United Kingdom 16.01
Japan 15.87
Asia/Pacific 14.72
Middle East 1.88


Fund Holdings (%)4,9 as of Jan 31, 2015

Holding % of Net Assets
Vodafone Group PLC 1.19%
Nestle SA 1.16%
Novartis AG 1.05%
Deutsche Telekom AG 0.88%
National Grid PLC 0.84%
GlaxoSmithKline PLC 0.80%
KDDI Corp 0.77%
Telstra Corp Ltd 0.76%
Royal Dutch Shell PLC 0.67%
Total SA 0.67%
View All

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

About Risk 

Fund share values are 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. 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

Quarterly Commentary

A Word On The Markets  as of Dec 31, 2014

Developed-equity markets fell in the fourth quarter of 2014, with the MSCI EAFE Index (the Index)1 falling 3.57% for the three-month period.

Performance was broadly negative across the majority of countries in the Index, with pronounced drops in some of the smaller European countries. Europe’s continuing economic slowdown was a primary source of this broad decline. As the quarter ended, fears were heightened by worries that the upcoming Greek elections may reignite the euro crisis. U.K. equities slumped over the quarter, due to the concerns over Europe. In addition, Japan’s market fell as its economy continued to cool. Finally, the continued strengthening of the U.S. dollar versus the euro and Japanese yen created additional headwinds for Index performance.

Performance by sector was also broadly negative, with all sectors but consumer discretionary down for the quarter. Energy was particularly hard hit over the course of the quarter.

Performance Summary 

Parametric International Equity Fund (the Fund) outperformed the Index1 for the quarter ended December 31, 2014, returning -3.13% for Investor Class shares at net asset value versus the Index’s -3.57% return.

  • The Fund’s emphasis on diversification10 via a system of target country weights and systematic rebalancing back to these target weights contributed to performance relative to the Index. The diversification targets consistently have the Fund underweight large countries and overweight smaller countries.
  • During the quarter, many countries with larger Index representations (e.g., U.K., France) underperformed the Index, while many with smaller Index representations outperformed (e.g., Ireland, Hong Kong). Combined, these two sources of relative return contributed to the Fund’s outperformance.
  • However, the Fund’s emphasis on diversification within each country via a system of target sector weights and broad security representation was the primary driver of the Fund’s outperformance versus the Index.

Average Annual Returns (%) as of Dec 31, 2014

1 Month 3 Months YTD 1 Year 3 Years 5 Years Life of Fund
Fund at NAV -3.44 -3.13 -3.98 -3.98 9.80 5.43
MSCI EAFE Index1 -3.46 -3.57 -4.90 -4.90 11.05 5.33 5.42
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 one year is cumulative.

Fund Facts as of Dec 31, 2014

Investor Class Inception 04/01/2010
Expense Ratio (Gross)2 1.34%
Expense Ratio (Net)2,3 0.90%


Contributors 

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

  • An overweight in Ireland contributed to the Fund’s relative performance, as this market rallied on M&A activity, paired with a boost in its industrial sector.
  • An overweight in Hong Kong also helped the Fund’s relative performance.
  • Overweights in the information technology and telecommunication services sectors further added to relative performance.

Detractors 

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

  • An overweight in Norway detracted from performance relative to the Index, as this market suffered due to the decline in crude oil prices and a plunge in the value of the Norwegian krone.
  • The Fund’s overweight in Portugal also detracted from performance relative to the index. This country saw a broad market drop due to continued investor nervousness about the ramifications of the collapse of one of its largest banks in August.
  • An overweight in Italy further detracted from relative performance, as its economy continued to lag, with record unemployment and growing concerns about its banking sector.

Investment Outlook And Fund Positioning 

Markets around the world have increasing concerns surrounding the future of U.S. monetary policy. A stronger economy would presumably bode well for asset prices, but the prospect of less accommodative monetary conditions and rising interest rates may carry negative ramifications for stocks around the globe.

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 developed international equity 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 returns.

Top 10 Holdings (%)4,5 as of Dec 31, 2014

Vodafone Group PLC 1.20
Nestle SA 1.14
Novartis AG 1.03
National Grid PLC 0.88
Deutsche Telekom AG 0.84
GlaxoSmithKline PLC 0.79
Royal Dutch Shell PLC Class A 0.76
Telstra Corporation Limited 0.75
Compagnie Financiere Richemont SA 0.71
KDDI Corporation 0.71
Total 8.80


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. Diversification cannot ensure a profit or eliminate the risk of loss.

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

About Risk 

Fund share values are 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. 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.

About Risk 

Fund share values are 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. 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
David Stein, Ph.D.

David Stein, Ph.D.

Co-Chief Investment Officer
Parametric Seattle Investment Center
Joined Parametric Portfolio Associates 1996

David Stein is co-chief investment officer of Parametric Portfolio Associates LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp., leading the firm's investment, research and technology activities. He maintains a focus on Parametric's intellectual capital, and is dedicated to advancing the art and science of investment management in the presence of taxes.

David's experience in the investment industry dates to 1987. Prior to joining Parametric in 1996, he held senior research, development and portfolio management positions at GTE Investment Management Corp., The Vanguard Group and IBM Retirement Funds. He has additional experience as a research scientist with IBM Research Laboratories, where he designed computer hardware and software systems.

David earned both a B.S. and an M.S. from the University of Witwatersrand, South Africa, and a Ph.D. in applied mathematics from Harvard University.

David holds a number of patents and is published in multiple academic journals, including Mathematics of Operations Research, The Journal of Wealth Management and the Journal of Portfolio Management, among others. He is on the After-Tax Subcommittee of the AIMR-PPS standards committee and on the advisory board of the Journal of Wealth Management.

Education
  • B.S. and M.S., University of Witwatersrand, South Africa
  • Ph.D. Harvard University
Experience
  • Managed Fund since inception
Biography
Thomas Seto

Thomas Seto

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

Tom Seto is head of investment management and a portfolio manager at Parametric Portfolio Associates LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp. He is responsible for all portfolio management activity at Parametric, including tax-managed core, OverlayOne and institutional structured equity strategies.

Prior to joining Parametric in 1998, Tom served as the head of U.S. Equity Index Investments at Barclays Global Investors, where he was responsible for portfolio management of all U.S. equity index strategies.

Tom earned a B.S. in electrical engineering from the University of Washington in 1985 and an M.B.A. in finance from the University of Chicago Booth School of Business in 1991.

Education
  • B.S. University of Washington
  • M.B.A Booth School of Business, University of Chicago
Experience
  • Managed Fund since inception
Biography
Paul Bouchey, CFA

Paul Bouchey, CFA

Co-Chief Investment Officer
Parametric Seattle Investment Center
Joined Parametric Portfolio Associates 2006

Paul Bouchey is co-chief investment officer of Parametric Portfolio Associates LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp. He leads the research team, and is responsible for setting the research agenda and overseeing new product development.

Paul joined Parametric in 2005 as a senior research analyst. Previously, he was a senior quantitative research analyst with Russell Investment Group from 1994 to 2005. During his 10 years with Russell, he focused on the research and development of simulation, optimization and other quantitative decision models for institutional and private clients.

Paul earned a B.A. in mathematics and physics from Whitman College in 1993 and an M.S. in computational finance and risk management from the University of Washington. He is a CFA charterholder (1999). Paul holds a patent on cross-sectional volatility indexing and has authored more than 10 academic and practitioner articles in journals such as The Journal of Wealth Management, Investments and Wealth Monitor and The Journal of Index Investing.

Education
  • B.A. Whitman College
  • M.S. University of Washington
Experience
  • Managed Fund since 2014

Fund Literature

Fund Literature

Annual Report

Commentary

Fact Sheet

Full Prospectus

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

SAI

Semi-Annual Report

Summary Prospectus

XBRL


 

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