Overview

A hedge against inflation, and diversification for a portfolio.2

Commodities have shown a high correlation to inflation, but negative correlation to stocks and bonds. (January 1973-December 2015)

  • Commodities
  • Stocks
  • Bonds

Not based on the return of any specific fund.

Historic Returns (%)as of Mar 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV 4.22 2.98 2.98 -14.92 -14.41 -11.90
Bloomberg Commodity Index Total Return3 3.82 0.42 0.42 -19.56 -16.85 -14.13 -13.93
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.

Fund Factsas of Mar 31, 2016

Institutional Class Inception 05/25/2011
Investment Objective Total return
Total Net Assets $118.6M
Minimum Investment $50000
Expense Ratio (Gross)4 0.99%
Expense Ratio (Net)4,5 0.70%
CUSIP 277923223

Portfolio Management

Thomas Seto Managed Fund since inception
Timothy W. Atwill, Ph.D., CFA Managed Fund since 2014

About Risk 

The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. As interest rates rise, the value of certain income investments is likely to decline. Because the Fund may invest significantly in a particular sector, the Fund share value may fluctuate more than a fund with less exposure to such sector. 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

Historic Returns (%)as of Mar 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV 4.22 2.98 2.98 -14.92 -14.41 -11.90
Bloomberg Commodity Index Total Return3 3.82 0.42 0.42 -19.56 -16.85 -14.13 -13.93
Morningstar™ Commodities Broad Basket Category6 4.23 0.84 0.84 -18.69 -16.66 -13.91
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.

Calendar Year Returns (%)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fund at NAV 2.30 -10.39 -14.62 -22.22
Bloomberg Commodity Index Total Return3 2.07 16.23 -35.65 18.91 16.83 -13.32 -1.06 -9.52 -17.01 -24.66

Fund Facts

Expense Ratio (Gross)4 0.99%
Expense Ratio (Net)4,5 0.70%
Institutional Class Inception 05/25/2011
Distribution Frequency Annually

Morningstar™ Ratingsas of Mar 31, 2016

Time Period Rating Rating (Load Waived) Funds in
Commodities Broad Basket
Category
Overall **** 131
3 Years **** 131
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.

© 2015 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
Apr 29, 2016 $5.56 $0.04
Apr 28, 2016 $5.52 $0.04
Apr 27, 2016 $5.48 $0.01
Apr 26, 2016 $5.47 $0.04
Apr 25, 2016 $5.43 $0.01
Apr 22, 2016 $5.42 -$0.03
Apr 21, 2016 $5.45 -$0.01
Apr 20, 2016 $5.46 $0.07
Apr 19, 2016 $5.39 $0.11
Apr 18, 2016 $5.28 $0.03
View All

Distribution History7

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 History7

Ex-Date Short-Term Long-Term Reinvest NAV
No records in this table indicates that there has not been a capital gain greater than .0001 within the past 3 years.
Fund prospectus

About Risk 

The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. As interest rates rise, the value of certain income investments is likely to decline. Because the Fund may invest significantly in a particular sector, the Fund share value may fluctuate more than a fund with less exposure to such sector. 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

Portfolio Statisticsas of Mar 31, 2016

Average Duration 0.53 yrs.

Commodity Exposure (%)8as of Mar 31, 2016

Agriculture 25.34
Cocoa 1.75
Coffee 3.60
Corn 3.43
Cotton 1.82
Kansas Wheat
Soybean Meal
Soybean Oil 3.85
Soybeans 3.64
Sugar 3.65
Wheat 3.61
Energy 25.40
Crude Oil-Brent 1.82
Crude Oil-WTI 1.78
Gas Oil 7.23
Heating Oil
Natural Gas 7.23
Unleaded Gas 7.35
Industrial Metals 23.59
Aluminum 6.93
Copper 6.95
Lead 1.69
New York Copper
Nickel 3.43
Tin 0.92
Zinc 3.67
Livestock 7.77
Feeder Cattle 0.85
Lean Hogs 3.49
Live Cattle 3.43
Precious Metals 17.91
Gold 7.19
Palladium 1.85
Platinum 1.81
Silver 7.06

About Risk 

The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. As interest rates rise, the value of certain income investments is likely to decline. Because the Fund may invest significantly in a particular sector, the Fund share value may fluctuate more than a fund with less exposure to such sector. 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, 2015

The commodity markets, as measured by the Bloomberg Commodity Index Total Return (the Index)3, were down -10.52% during the fourth quarter of 2015. This significant drop in prices was represented broadly across the commodity universe, with the vast majority of commodities down for the quarter.

Energy prices continued their drop over the quarter. Natural gas struggled amidst oversupply concerns and lower demand resulting from a warmer winter. Strong oil production out of Russia, Iran and Saudi Arabia took crude prices even lower, with both WTI and Brent Crude Oil dropping more than 20%.

Agriculture was also down moderately for the quarter, primarily on the back of price declines in grains and lean hogs. Wheat, corn, and soybeans had their third consecutive year of strong harvests this Fall, resulting in ample supplies and lower prices. Similarly, lean hogs saw prices drop on record production by U.S. pork producers over the past three quarters.

Both industrial and precious metals fell during the quarter. Most market participants attribute the pull back in industrial metals to a continued slowing of growth in China and worries about Europe's economic trajectory. Gold and silver prices were also down, despite increased political and economic worries.

Performance Summary 

Parametric Commodity Strategy Fund (the Fund) outperformed the Index at net asset value during the quarter.

  • The Fund primarily relies on three actions in pursuing its investment objectives: reweighting versus the Index, rebalancing and commodity curve positioning.9
  • The Fund's reweighting decision positively impacted relative returns during the quarter. The Fund's underweight to crude oil was the dominate contributor to performance, while overweights to coffee, silver, and non-Index commodities also added to relative returns.
  • The Fund's emphasis on rebalancing back to target weights moderately detracted from performance, due to the absence of reversion among commodities in the Index. Reversion describes the situation where recent relative outperformers become relative underperformers and vice versa. Rebalancing requires one to sell a portion of the outperforming assets, and is beneficial during times of reversion.
  • Curve positioning moderately contributed to Fund performance during the quarter.

Historic Returns (%)as of Dec 31, 2015

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV -1.56 -8.20 -22.22 -22.22 -15.89 -13.06
Bloomberg Commodity Index Total Return3 -3.09 -10.52 -24.66 -24.66 -17.29 -13.46 -14.70
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.

Fund Factsas of Dec 31, 2015

Institutional Class Inception 05/25/2011
Expense Ratio (Gross)4 0.99%
Expense Ratio (Net)4,5 0.70%

Contributors 

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

  • An underweight to crude oil contributed to the Fund's relative performance versus the Index. Oil prices continued to plunge over the quarter due to continued overproduction by Saudi Arabia, Russia and Iran, despite signs of declining demand.
  • An overweight to coffee benefited the Fund's relative performance for the quarter, as prices experienced a relief rally, with many investors believing prices had fallen further than fundamentals warranted.
  • Non-Index positions as a group were additive to performance, with platinum, lead, and cocoa being especially strong contributors.

Detractors 

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

  • The Fund's overweight to gas oil was a detractor from performance versus the Index, as prices plunged in sympathy with falling crude oil prices.
  • The Fund's underweight to sugar was also a detractor to performance as prices spiked on supply concerns, due to adverse weather conditions in India's sugar growing regions.
  • The Fund's underweight to gold also detracted from performance, primarily in response to the Fed's interest rate hike in December.

Investment Outlook And Fund Positioning 

Commentators demonstrate a wide range of opinions regarding the commodity asset class. Regardless of the near term forecast, the secular trend of increasing demand for raw materials from emerging economies is believed by many to be a permanent feature in the global economy. While commodities may continue to demonstrate remarkable volatility, they may do so against a background of increasing prices.

How does one invest in this space with so much short-term uncertainty? We seek to manage risk through broad diversification10, avoiding concentrations and by rebalancing all key factors to consider when making investment decisions. Parametric's commodity investment strategy relies on a rules based approach, in combination with a rebalancing discipline to avoid concentration, and is aimed to seek total return.

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.

About Risk 

The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. As interest rates rise, the value of certain income investments is likely to decline. Because the Fund may invest significantly in a particular sector, the Fund share value may fluctuate more than a fund with less exposure to such sector. 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.

About Risk 

The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, including weather, embargoes, tariffs, or health, political, international and regulatory developments. Derivative instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. As interest rates rise, the value of certain income investments is likely to decline. Because the Fund may invest significantly in a particular sector, the Fund share value may fluctuate more than a fund with less exposure to such sector. 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
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
Timothy W. Atwill, Ph.D., CFA

Timothy W. Atwill, Ph.D., CFA

Head of Investment Strategy
Parametric Seattle Investment Center
Joined Parametric Portfolio Associates 2010

Tim Atwill is head of investment strategy with Parametric Portfolio Associates, LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp. He leads Parametric's investment strategy team and is responsible for managing the continued evolution of Parametric’s investment strategies and communicating these strategies to external audiences.

Prior to his current role, Tim was affiliated with Russell Investments in their manager research unit, performing due diligence duties for the firm’s consulting clients, and in their trading group, implementing derivative strategies for institutional clients. Previously, he was a non-life actuary and portfolio manager at Safeco Insurance Company.

Tim earned a B.A. in mathematics from Reed College and a Ph.D. in mathematics from Dartmouth College. He is a CFA charterholder and holds the FCAS designation from the Casualty Actuarial Society.

Education
  • B.A. Reed College
  • Ph.D. Dartmouth College
Experience
  • Managed Fund since 2014

Literature

Literature

Fact Sheet

Commentary

Report of Organizational Actions Affecting Basis of Securities

Annual Report

Full Prospectus

Parametric Commodity Strategy Holdings

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

Timothy Atwill on Systematic Alpha Investing

SAI

Think Performance Think Eaton Vance

Semi-Annual Report

Summary Prospectus


 

loading

We apologize for the inconvenience but we are experiencing a technical issue.

We are working on a solution. Please try again later.

If you require further assistance, please call:
1-800-836-2414.

You have already upgraded your account. Please login using the link at the top of the page.

    Your download will begin when this window is closed.

    You have successfully un-subscribed from .

    As a subscriber, you are one step away from getting more access and control. Register now by simply creating a password below.

    Passwords must be 8 to 20 alphanumeric characters, including a special character:
    ! @ # $ % ^ & * ( ) - _ = + , < . > ?.

    Cancel

    Trouble registering? Call 1-800-836-2414.

    Congratulations! You are registered.

    We have sent a verification email to . Please check your e-mail and click on the secured link to verify your account and complete the registration process.

    Trouble receiving the verification email? Call 1-800-836-2414.

    Congratulations!

    We are pleased to grant you access to this Eaton Vance website.

    Please click here to be logged in with your username .

    A verification email has been sent.

    You have requested a change to your password. In order to process this request, a verification email has been sent to . When you receive this email, please click the link contained within the email to start the password reset process.

    Trouble signing in? Call 1-800-836-2414.

    This account is restricted.

    Your account has limited access. You currently have access to content for:

    Firm restriction.

    This document has not been approved at your firm. We can not complete your subscription request at this time. Please try again later.


    If you need further assistance, please call 1-800-836-2414.

    This account has been updated.

    Your account has been updated to use your new email address .

    We have sent a verification email to with a verification link to confirm the change.

    Trouble receiving the verification email? Call 1-800-836-2414.

    This email account has not been verified.

    Your account has not yet been activated. We have sent a verification email to . If you'd like us to resend this, please click the Resend Email button below.

    Trouble receiving the verification email? Call 1-800-836-2414.

    Cancel

    Thank you.

    An e-mail verification has been re-sent to . Please check your e-mail and follow the instructions to complete the registration process.

    Trouble receiving the verification email? Call 1-800-836-2414.

    An email has been sent to the email address containing a link to verify your credentials. Please check your e-mail and click on the secured link to complete your request.

    Trouble receiving the verification email? Call 1-800-836-2414.

    Re-verification Required

    For security purposes we could not complete your request. Please click here to receive a new link to access the requested content.

    A new email has been sent to the email address containing a link to re-verify your credentials. Please check your e-mail and click on the secured link to complete your request.

    Trouble receiving the verification email? Call 1-800-836-2414.

    Verification Accepted

    You have been granted access to the requested content.

    Remember Me

    Click here to remain recognized on this device for future visits to EatonVance.com

    Do Not Remember Me

    Click here if you are using a Public Computer or Shared Device.

    Trouble receiving the verification email? Call 1-800-836-2414.

    Cancel

    Subscribe to new content: Register

    Please check the Fund Literature that you would like to subscribe to. Your subscriptions can be managed on your profile page.

    Subscribe All

    Thank you for downloading

    If your download did not start automatically, please click here.

    Stay on top of your game.

    Receive email notifications when the  is updated by clicking the subscribe button.

    Close

    Thank you for subscribing

    We have sent a verification email to . Please check your e-mail and click on the secured link to verify your subscription.

    Un-subscription request

    We have sent a verification email to . Please check your e-mail and click on the secured link to verify your request.

    Stay on top of your game.

    You have selected to receive email notifications for:

    Cancel

    Subscribe to new content: Register

    Stay on top of your game.

    You are currently "Opted Out" of all Eaton Vance email communications. If you would like to be alerted of updates to your new subscription, please Opt In:

    Close

    Enter your e-mail address to reset your password.

    Already have an account?
    Subscribe to new content: Register

    Trouble registering? Call 1-800-836-2414.

    Simply enter your e-mail address to register.

    Cancel

    Already have an account?

    Register for more access and control.
    • Elevate your business practice with materials from the Advisor Institute.
    • Learn more with exclusive videos, conference calls, and the latest insights.
    • Follow products, get product notifications, and manage your Eaton Vance communications.
    Please wait while the data is being prepared for download.
    loading
    This message will automatically close when your file is ready.
    Please enter a new email.

    Trouble signing in? Call 1-800-836-2414.

    Investment Professionals

    Register Now

    Already have an account? .

     

    Symbol:  

    NAV as of