Overview

Growth of $10,000

Since Fund inception ended 09/30/2016

  • Investor Class at NAV

Historical Returns (%)as of Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
11/30/2016
Fund at NAV -2.97 -4.80 -1.31 -1.95 -0.52 5.44 3.94
MSCI EAFE Index1 -1.99 -2.82 -2.34 -3.66 -2.21 5.61 3.34
09/30/2016
Fund at NAV 1.46 5.44 5.18 10.30 2.59 8.00 5.07
MSCI EAFE Index1 1.23 6.43 1.73 6.52 0.48 7.38 4.08
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. The share class has no sales charge.

Fund Factsas of Nov 30, 2016

Investor Class Inception 04/01/2010
Investment Objective Long-term capital appreciation
Total Net Assets $145.0M
Minimum Investment $1000
Expense Ratio (Gross)2 0.95%
Expense Ratio (Net)2,3 0.75%
CUSIP 277923413

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

Nestle SA
Vodafone Group PLC
National Grid PLC
Deutsche Telekom AG
Compagnie Financiere Richemont SA
Air Liquide SA
Total SA
KDDI Corporation
BP PLC
GlaxoSmithKline PLC
Total 7.72

Morningstar™ Ratingsas of Nov 30, 2016

Time Period Rating Funds in
Foreign Large Blend
Category
Overall **** 621
3 Years **** 621
5 Years **** 551
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) 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.

©2016 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. Past performance is no guarantee of future results.

Portfolio Management

Paul Bouchey, CFA Managed Fund since 2014
Timothy W. Atwill, Ph.D., CFA Managed Fund since 2016
Thomas Seto Managed Fund since inception

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

About Risk 

Fund performance is 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

Historical Returns (%)as of Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
11/30/2016
Fund at NAV -2.97 -4.80 -1.31 -1.95 -0.52 5.44 3.94
MSCI EAFE Index1 -1.99 -2.82 -2.34 -3.66 -2.21 5.61 3.34
Morningstar™ Foreign Large Blend Category6 -2.18 -3.06 -1.42 -3.31 -2.24 4.81
09/30/2016
Fund at NAV 1.46 5.44 5.18 10.30 2.59 8.00 5.07
MSCI EAFE Index1 1.23 6.43 1.73 6.52 0.48 7.38 4.08
Morningstar™ Foreign Large Blend Category6 1.32 6.19 2.93 6.53 0.53 7.13
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. The share class has no sales charge.

Calendar Year Returns (%)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Fund at NAV -10.14 16.83 18.05 -3.98 2.00
MSCI EAFE Index1 26.34 11.17 -43.38 31.78 7.75 -12.14 17.32 22.78 -4.90 -0.81

Fund Facts

Expense Ratio (Gross)2 0.95%
Expense Ratio (Net)2,3 0.75%
Investor Class Inception 04/01/2010
Distribution Frequency Annually

Risk Measures (3 Year)7as of Nov 30, 2016

Alpha (%) 1.43
Beta 0.89
R-Squared (%) 94.98
Standard Deviation (%) 11.36
Sharpe Ratio -0.06

Morningstar™ Ratingsas of Nov 30, 2016

Time Period Rating Funds in
Foreign Large Blend
Category
Overall **** 621
3 Years **** 621
5 Years **** 551
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) 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.

©2016 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. Past performance is no guarantee of future results.

NAV History

Date NAV NAV Change
Dec 09, 2016 $11.35 $0.04
Dec 08, 2016 $11.31 -$0.04
Dec 07, 2016 $11.35 $0.14
Dec 06, 2016 $11.21 $0.05
Dec 05, 2016 $11.16 $0.09
Dec 02, 2016 $11.07 $0.00
Dec 01, 2016 $11.07 -$0.03
Nov 30, 2016 $11.10 -$0.03
Nov 29, 2016 $11.13 $0.06
Nov 28, 2016 $11.07 -$0.03
View All

Distribution History8

Ex-Date Distribution Reinvest NAV
Jun 15, 2016 $0.00240 $11.02
Dec 29, 2015 $0.26570 $11.43
Dec 29, 2014 $0.25080 $11.45
Dec 26, 2013 $0.22970 $12.29
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
Jun 15, 2016 $0.00950 $11.02
Dec 29, 2015 $0.00410 $11.43
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

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

About Risk 

Fund performance is 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 (%)5as of Oct 31, 2016

Foreign Common Stocks 99.31
Cash & Other Assets 0.69
Total 100.00

Portfolio Statisticsas of Oct 31, 2016

Median Market Cap $3.5B
Price/Earnings Ratio 18.02
Price/Book Ratio 1.76
Number of Holdings 1,030
Countries Represented 21

GICS Sector Breakdown (%)5as of Oct 31, 2016

Sector Fund MSCI EAFE Index1
Consumer Discretionary 10.09 12.55
Consumer Staples 10.22 11.81
Energy 5.72 4.96
Financials 10.97 20.16
Health Care 9.15 10.82
Industrials 10.79 14.12
Information Technology 8.95 5.51
Materials 9.38 7.72
Real Estate 8.34 3.92
Telecom Services 8.60 4.76
Utilities 7.10 3.67
Cash 0.69 0.00

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

United Kingdom 15.58
Japan 15.50
France 8.10
Australia 8.03
Germany 8.02
Switzerland 7.77
Italy 4.03
Hong Kong 4.02
Spain 4.01
Netherlands 4.00
View All

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

Europe except U.K. 51.87
United Kingdom 15.58
Japan 15.50
Asia/Pacific 15.06
Middle East 2.00

Fund Holdings (%)5,9as of Oct 31, 2016

Holding % of Net Assets
EV Cash Reserves Fund LLC 2.41%
Nestle SA 1.00%
Vodafone Group PLC 0.89%
National Grid PLC 0.86%
Deutsche Telekom AG 0.76%
Air Liquide SA 0.73%
Cie Financiere Richemont SA 0.73%
TOTAL SA 0.71%
KDDI Corp 0.68%
BP PLC 0.67%
View All

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

About Risk 

Fund performance is 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

Commentary

A Word On The Markets as of Sep 30, 2016

Developed equity markets outside the U.S. rose in the third quarter of 2016, up 6.43%, as measured by the MSCI EAFE Index.1 The quarter's gains were primarily booked in July, as Europe bounced back from losses suffered post-Brexit, while Japan benefitted from increased political stability and hopes of further central bank stimulus. The rest of the quarter was followed by incremental gains, partially based on improving economic data in the U.K. and the announcement of a government stimulus package in Japan. The quarter ended on a negative note, with fears around European banks and worries about the effectiveness of continued central bank activity in Europe and Japan.

Eighteen of the twenty-one countries in the Index posted positive returns in the third quarter. Austria posted the highest country return, due to a rally in its financial sector, closely followed by New Zealand which saw unexpectedly strong economic growth over the quarter. Denmark had the weakest results, as its health care sector dropped in the face of layoffs and slower growth in its pharmaceutical sector.

Performance by sector was broadly positive for the quarter. A rise in global construction activity helped the materials sector lead the pack, while information technology stocks benefited from a flurry of mergers and acquisitions announcements. The weakest returns came from the health care sector as turbulence in pharmaceutical and biotechnology stocks impacted sector returns.

Performance Summary 

Parametric International Equity Fund (the Fund) underperformed the Index for the quarter ended September 30, 2016, returning 5.44% for the Investor shares at net asset value versus the Index's 6.43% return.

  • The Fund's emphasis on diversification10 via a system of country target weights detracted mildly from performance relative to the Index. The diversification targets consistently position the Fund underweight large countries and overweight smaller countries.
  • Within each country, diversification among sectors is also maintained via a set of sector target weights. During the third quarter, this sector diversification process was a mild contributor to relative performance.
  • In addition, the Fund's emphasis on diversification via a system of broad security representation, with an emphasis on minimizing portfolio risk, was a moderate detractor to the Fund's outperformance versus the Index.

Historical Returns (%)as of Sep 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV 1.46 5.44 5.18 10.30 2.59 8.00 5.07
MSCI EAFE Index1 1.23 6.43 1.73 6.52 0.48 7.38 4.08
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. The share class has no sales charge.

Fund Factsas of Sep 30, 2016

Investor Class Inception 04/01/2010
Expense Ratio (Gross)2 0.95%
Expense Ratio (Net)2,3 0.75%

Contributors 

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

  • In Switzerland and Denmark, the sector diversification process made strong contributions to the Fund's relative performance. The resulting underweight to healthcare left the Fund less exposed to a broad decline in many notable pharmaceutical companies in both countries.
  • In Italy, the Fund's sector diversification process, as well as its emphasis on low-beta securities within sectors, also contributed to relative performance.
  • An overweight to Austria also benefited relative performance, as Austrian banks experienced a strong rebound over the quarter.

Detractors 

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

  • An underweight to Japan detracted from performance relative to the Index. Japanese stocks benefited from positive election results for its ruling party, which immediately announced plans for a large fiscal stimulus package.
  • In Germany, the sector diversification process further detracted from the Fund's relative performance. The resulting overweight to utilities left the Fund over-exposed to the defensive sector which lagged the strong rebound in European stocks.
  • The sector diversification process within Sweden also detracted from the Fund's relative performance. The resulting underweight to financials resulted in the Fund underexposed to the broad rally in this sector.

Investment Outlook And Fund Positioning 

Markets around the world have many political and economic uncertainties and concerns. The most recent addition is decision by the UK to exit from the European Union. Plus added uncertainties such as the US presidential election, the direction of commodity prices, when the Federal Reserve will increase interest rates. Plus ongoing turmoil in many parts of the world.

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 (%)4,5as of Sep 30, 2016

Nestle SA 1.03
Vodafone Group PLC 0.94
National Grid PLC 0.82
Deutsche Telekom AG 0.82
Total SA 0.74
Compagnie Financiere Richemont SA 0.74
KDDI Corporation 0.73
Unilever NV Cert. of SHS 0.66
Telstra Corporation Limited 0.66
GlaxoSmithKline PLC 0.66
Total 7.80

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 performance is 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 performance is 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
Paul Bouchey, CFA

Paul Bouchey, CFA

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

Paul Bouchey is chief investment officer of Parametric Portfolio Associates LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp. Paul Bouchey leads Parametric's Investment, Research and Strategy activities. He is responsible for setting the overall research agenda and new product development. He joined Parametric in 2006.

Paul began his career in the investment management industry in 1994. Before joining Parametric, Paul was a senior researcher at Russell Investment Group, where he focused on simulation, optimization and quantitative decision models for institutional and private clients.

Paul earned a B.A. in mathematics and physics from Whitman College and an M.S. in computational finance and risk management from the University of Washington. He 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 Portfolio Management, The Journal of Wealth Management and The Journal of Index Investing. He is a CFA charterholder.

Education
  • B.A. Whitman College
  • M.S. University of Washington

Experience
  • Managed Fund since 2014

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.

Before joining Parametric, Tim was affiliated with Russell Investments in its manager research unit, performing due diligence duties for the firm's consulting clients, and in its 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 holds the FCAS designation from the Casualty Actuarial Society and is a CFA charterholder.

Education
  • B.A. Reed College
  • Ph.D. Dartmouth College

Experience
  • Managed Fund since 2016

Biography
Thomas Seto

Thomas Seto

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

Thomas Seto is head of investment management for Parametric Portfolio Associates LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp. He is responsible for all portfolio management and trading activity at Parametric's Seattle Investment Center, including tax-managed core, CPM and institutional equity strategies. He joined Parametric in 1998.

Tom began his career in the investment management industry in 1991. Before joining Parametric, he was the head of U.S. equity index investments at Barclays Global Investors.

Tom earned a B.S. in electrical engineering from the University of Washington and an MBA from the University of Chicago's Booth School of Business.

Education
  • B.S. University of Washington
  • M.B.A Booth School of Business, University of Chicago

Experience
  • Managed Fund since inception


Literature

Literature

Fact Sheet

Download - Last updated: Sep 30, 2016

Commentary

Download - Last updated: Sep 30, 2016

Attribution

Download - Last updated: Sep 30, 2016

Annual Report

Download - Last updated: Jan 31, 2016

Full Prospectus

Download - Last updated: Jun 1, 2016

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

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SAI

Download - Last updated: Jun 1, 2016

EXCLUSIVE CONTENT

Sales Idea

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Think Performance Think Eaton Vance

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Semi-Annual Report

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Summary Prospectus

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XBRL

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