Overview

Growth of $10,000

10-year period ended 09/30/2016

  • Class A at NAV

Historical Returns (%)as of Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
11/30/2016
Fund at NAV -0.20 -9.16 -16.23 -14.44 5.40 14.46 9.26
Fund w/Max Sales Charge -5.95 -14.38 -21.06 -19.34 3.33 13.11 8.62
MSCI World Health Care Index1 0.09 -6.94 -8.25 -6.86 5.26 13.80 7.31
09/30/2016
Fund at NAV 0.00 0.18 -7.78 1.53 11.51 17.37 10.65
Fund w/Max Sales Charge -5.75 -5.59 -13.10 -4.34 9.34 15.99 10.00
MSCI World Health Care Index1 -0.13 0.07 -1.54 5.33 10.51 16.45 8.17
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 Oct 31, 2016

Class A Inception 07/26/1985
Investment Objective Long-term capital growth
Total Net Assets $1.2B
Minimum Investment $1000
Expense Ratio2 1.34%
CUSIP 277902813

Top 10 Holdings (%)3,4as of Sep 30, 2016

Allergan plc
Roche Holding AG
Eli Lilly & Co
Medtronic PLC
Johnson & Johnson
Biogen Inc
Gilead Sciences Inc
Celgene Corp
Shire PLC
Novo Nordisk A/S
Total 42.28

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 Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
10/31/2016
Fund at NAV -8.98 -13.48 -16.06 -12.38 7.14 14.74 9.18
Fund w/Max Sales Charge -14.21 -18.49 -20.90 -17.45 5.05 13.40 8.54
MSCI World Health Care Index1 -6.90 -10.89 -8.34 -7.56 6.56 13.65 7.30
Morningstar™ Health Category5 -8.92 -10.29 -13.43 -11.09 8.39 16.56 9.85
09/30/2016
Fund at NAV 0.00 0.18 -7.78 1.53 11.51 17.37 10.65
Fund w/Max Sales Charge -5.75 -5.59 -13.10 -4.34 9.34 15.99 10.00
MSCI World Health Care Index1 -0.13 0.07 -1.54 5.33 10.51 16.45 8.17
Morningstar™ Health Category5 2.05 5.23 -5.01 2.87 12.26 20.19 11.21
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 (%)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fund at NAV -0.01 6.49 -7.24 9.89 11.13 4.75 15.49 44.56 27.39 8.39
MSCI World Health Care Index1 10.47 3.94 -21.50 18.89 2.41 9.46 17.54 36.27 18.10 6.60

Fund Facts

Expense Ratio2 1.34%
Class A Inception 07/26/1985
Distribution Frequency Annually

Risk Measures (3 Year)6as of Nov 30, 2016

Alpha (%) -0.59
Beta 1.22
R-Squared (%) 85.92
Standard Deviation (%) 16.24
Sharpe Ratio 0.32

Morningstar™ Ratingsas of Oct 31, 2016

Time Period Rating Rating (Load Waived) Funds in
Health
Category
Overall *** *** 123
3 Years ** *** 123
5 Years ** *** 116
10 Years *** *** 94
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.

© 2016 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
Dec 02, 2016 $10.03 $0.03
Dec 01, 2016 $10.00 -$0.12
Nov 30, 2016 $10.12 -$0.12
Nov 29, 2016 $10.24 $0.08
Nov 28, 2016 $10.16 -$0.09
Nov 25, 2016 $10.25 $0.08
Nov 23, 2016 $10.17 $0.02
Nov 22, 2016 $10.15 -$0.20
Nov 21, 2016 $10.35 $0.02
Nov 18, 2016 $10.33 -$0.14

Distribution History7

Ex-Date Distribution Reinvest NAV
Dec 17, 2013 $0.06940 $10.78
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 History7

Ex-Date Short-Term Long-Term Reinvest NAV
Dec 15, 2015 $0.15340 $1.01810 $11.82
Dec 16, 2014 $0.56450 $1.45310 $11.95
Dec 17, 2013 $0.19790 $1.16690 $10.78
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 (%)4,8as of Sep 30, 2016

U.S. Common Stocks 79.97
Foreign Common Stocks 18.70
Cash 1.33
Total 100.00

Portfolio Statisticsas of Sep 30, 2016

Number of Holdings 39

Sector Breakdown (%)4as of Sep 30, 2016

Sector Fund MSCI World Health Care Index1
Biotechnology 29.44 17.35
Drug Retail 1.48 0.00
Health Care Distributors 2.34 2.44
Health Care Equipment 16.38 13.87
Health Care Facilities 1.67 1.28
Health Care Services 0.00 3.59
Health Care Supplies 1.98 1.74
Health Care Technology 0.00 0.72
Life Sciences Tools & Services 5.04 3.57
Managed Health Care 2.60 6.51
Pharmaceuticals 37.74 48.93
Cash 1.33 0.00

Assets by Country (%)4as of Sep 30, 2016

United States 81.12
Switzerland 9.30
Denmark 3.25
Japan 3.18
Israel 1.81
Cash & Other Assets 1.33
Total 100.00

Geographic Mix (%)4as of Sep 30, 2016

North America 81.12
Europe 12.55
Asia/Pacific 3.18
Middle East 1.81
Cash & Other Assets 1.33
Total 100.00

Fund Holdings (%)4,9as of Oct 31, 2016

Holding % of Net Assets
Roche Holding AG 6.09%
Allergan plc 5.52%
Eli Lilly & Co 5.35%
Medtronic PLC 4.49%
Johnson & Johnson 4.30%
Gilead Sciences Inc 3.85%
Biogen Inc 3.83%
Celgene Corp 3.74%
Zoetis Inc 3.26%
Shire PLC 3.25%
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 Sep 30, 2016

Global markets moved higher in the third quarter of 2016 amid continued low interest rates and diminishing concern about Britain's vote to leave the European Union. Recovering from their sharp pullback following Britain's "Brexit" vote in late June 2016, stocks advanced for much of the summer. An upturn in oil prices also provided a boost to global stocks.

The Bank of England surprised markets in August with a stronger-than-expected policy response to Brexit by cutting rates by 25 basis points to 0.25% and announcing that it would purchase 60 billion pounds of U.K. gilts over the next six months and 10 billion pounds of corporate bonds over the next 18 months. BOE governor Mark Carney said that the central bank could cut rates again, if necessary.

Markets became temporarily unsettled in mid-September when Federal Reserve Bank of Boston President Eric Rosengren said there is a reasonable case for the Fed to gradually raise rates. This quickly reversed when the Fed remained on hold at its late- September meeting.

The Fed's decision at its September meeting to leave rates unchanged coupled with low global interest rates helped drive most stock markets higher during the three-month period. Signs of strength in China's beleaguered economy, including improved business and consumer confidence, also cheered investors.

As global equities advanced during the quarter (MSCI World up 4.87%), driven by strong returns within cyclical sectors such as information technology, financials, and materials, concerns about the healthcare sector were evident, as the MSCI World Healthcare10 sector finished relatively flat for the quarter, up 0.07%.

Performance Summary 

For the third quarter of 2016, the Worldwide Health Sciences Fund Class A Shares outperformed the MSCI World Healthcare Index (the Index), returning 0.18% at NAV, vs. 0.07% for the Index.

  • Within the global healthcare sector, life science tools and services was the strongest performer during the quarter, up 13.8%, followed by biotechnology, which was up 6.7%. Biotech rebounded in the third quarter after trailing for much of the year, after a strong sell off in the first quarter.
  • Pharmaceuticals, the largest Index weight at nearly 50% of the MSCI World Healthcare Index, was down -3.4% during the quarter, as continued worries about health care pricing weigh upon the sector.
  • For the Fund, industry allocation within the health care sector was a strong driver to relative returns, while stock selection was negative overall.
  • The Fund's overweight to the United States was additive to performance, as the U.S. outperformed much of the world during the quarter. Additionally, European health care stocks were generally down during the quarter, and the Fund's underweight to the region was a contributor to returns.

Historical Returns (%)as of Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
Fund at NAV 0.00 0.18 -7.78 1.53 11.51 17.37 10.65
Fund w/Max Sales Charge -5.75 -5.59 -13.10 -4.34 9.34 15.99 10.00
MSCI World Health Care Index1 -0.13 0.07 -1.54 5.33 10.51 16.45 8.17
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 Sep 30, 2016

Class A Inception 07/26/1985
Expense Ratio2 1.34%

Contributors 

Notable positive contribution in the quarter was primarily driven by industry allocation.

  • The Fund's overweight to biotechnology, as well as strong stock selection within the group, was the largest contributor to performance.
  • An underweight to pharmaceuticals was additive for the month, as the sub-sector was the worst performing group within health care for the three month period. Returns were also aided by strong stock selection within health care equipment and supplies.
  • Top stock contributors for the quarter were Biogen, Inc. and BioMarin Pharmaceuticals within the biotechnology sector. Biogen announced better than expected second quarter revenues and EPS. BioMarin rose after the July release of positive data for one of its blood disorder drugs.
  • Illumina Inc., one of the leaders in lifescience tools, was a top contributor to performance during the quarter as the company beat earnings estimates.
  • Additional contributors included Medivation, Inc., which was acquired by Pfizer during the quarter, and Wright Medical Group, an equipment and supplies company that posted solid 2Q16 earnings.

Detractors 

Stock selection was the primary detractor to performance versus the index in the quarter, largely within the pharma space.

  • ONO Pharmaceuticals, a Japanese pharma company, was the largest negative contributor. Ono's partner, Bristol Myers, announced a negative trial result in its lung cancer program. Bristol Myers was also a negative contributor.
  • Novo Nordisk, a pharmaceutical company based in Denmark, was down on concerns about drug pricing concerns, specifically within the U.S.
  • Underweights to Merck & Co, and Amgen, two large index names, as well as an overweight to McKesson Corp., were negative for the quarter.

Investment Outlook And Fund Positioning 

All eyes will be on the Fed in coming months, as investors gauge the likelihood of an interest hike. Investors will also be keeping very close tabs on the U.S. presidential election.

Hillary Clinton's platform on health care is an extension of the current administration's. Donald Trump supports a repeal of the Affordable Care Act and more interstate competition among private health plans. Current aggregated poll data indicate that the House of Representatives will remain under Republican control while the Senate is too close to call. A split Congress would lead to legislative gridlock (i.e., more of the same). It will be important to watch the next president's use of executive order; doing so could enable the president to circumvent Congress with respect to the health care agenda.

We continue to use the current uncertainty in the health care sector to our advantage in managing the Fund. The spread in valuation between biotech and the S&P 500 is at the largest discount since 2000 and we remain focused on strong businesses with innovative pipelines at reasonable prices.

Top 10 Holdings (%)3,4as of Sep 30, 2016

Allergan plc 5.87
Roche Holding AG 5.83
Eli Lilly & Co 5.15
Medtronic PLC 4.18
Johnson & Johnson 3.87
Biogen Inc 3.79
Gilead Sciences Inc 3.65
Celgene Corp 3.38
Shire PLC 3.30
Novo Nordisk A/S 3.26
Total 42.28

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: Sep 30, 2016

Commentary

Download - Last updated: Sep 30, 2016

Annual Report

Download - Last updated: Aug 31, 2016

Full Prospectus

Download - Last updated: Jan 1, 2016

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

Download

SAI

Download - Last updated: Jan 1, 2016

Semi-Annual Report

Download - Last updated: Feb 29, 2016

Summary Prospectus

Download - Last updated: Jul 1, 2016

XBRL

Download - Last updated: Jan 12, 2016