Overview

Growth of $10,000

Since Fund inception ended 06/30/2016

  • Investor Class at NAV

Historical Returns (%)as of Jun 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
08/31/2016
Fund at NAV -0.09 2.03 3.66 4.81 4.35 5.51 4.90
MSCI EAFE Index1 0.07 1.61 0.49 -0.12 2.47 5.00 3.94
06/30/2016
Fund at NAV -1.82 -0.51 -0.25 -4.11 4.22 2.75 4.39
MSCI EAFE Index1 -3.36 -1.46 -4.42 -10.16 2.06 1.68 3.21
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. The share class has no sales charge.

Fund Factsas of Aug 31, 2016

Investor Class Inception 04/01/2010
Investment Objective Long-term capital appreciation
Total Net Assets $127.9M
Minimum Investment $1000
Expense Ratio (Gross)2 1.20%
Expense Ratio (Net)2,3 0.90%
CUSIP 277923413

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

Nestle SA
Vodafone Group PLC
National Grid PLC
Deutsche Telekom AG
KDDI Corporation
Compagnie Financiere Richemont SA
Air Liquide SA
GlaxoSmithKline PLC
Total SA
Unilever NV Cert. of Shs
Total 7.83

Morningstar™ Ratingsas of Aug 31, 2016

Time Period Rating Rating (Load Waived) Funds in
Foreign Large Blend
Category
Overall **** 716
3 Years **** 716
5 Years **** 630
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.

Portfolio Management

Timothy W. Atwill, Ph.D., CFA Managed Fund since 2016
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 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 Jun 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
08/31/2016
Fund at NAV -0.09 2.03 3.66 4.81 4.35 5.51 4.90
MSCI EAFE Index1 0.07 1.61 0.49 -0.12 2.47 5.00 3.94
Morningstar™ Foreign Large Blend Category6 0.51 2.11 1.59 0.79 2.35 4.34
06/30/2016
Fund at NAV -1.82 -0.51 -0.25 -4.11 4.22 2.75 4.39
MSCI EAFE Index1 -3.36 -1.46 -4.42 -10.16 2.06 1.68 3.21
Morningstar™ Foreign Large Blend Category6 -2.56 -1.08 -3.03 -9.94 1.68 1.10
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 1.20%
Expense Ratio (Net)2,3 0.90%
Investor Class Inception 04/01/2010
Distribution Frequency Annually

Risk Measures (3 Year)7as of Aug 31, 2016

Alpha (%) 2.09
Beta 0.87
R-Squared (%) 96.28
Standard Deviation (%) 11.72
Sharpe Ratio 0.36

Morningstar™ Ratingsas of Aug 31, 2016

Time Period Rating Rating (Load Waived) Funds in
Foreign Large Blend
Category
Overall **** 716
3 Years **** 716
5 Years **** 630
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
Sep 27, 2016 $11.78 $0.04
Sep 26, 2016 $11.74 -$0.09
Sep 23, 2016 $11.83 -$0.07
Sep 22, 2016 $11.90 $0.11
Sep 21, 2016 $11.79 $0.17
Sep 20, 2016 $11.62 $0.04
Sep 19, 2016 $11.58 $0.08
Sep 16, 2016 $11.50 -$0.14
Sep 15, 2016 $11.64 $0.09
Sep 14, 2016 $11.55 -$0.01
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 Aug 31, 2016

Foreign Common Stocks 99.24
Cash & Other Assets 0.76
Total 100.00

Portfolio Statisticsas of Aug 31, 2016

Median Market Cap $3.5B
Price/Earnings Ratio 17.94
Price/Book Ratio 1.74
Number of Holdings 1,069
Countries Represented 21

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

Sector Fund MSCI EAFE Index1
Consumer Discretionary 10.88 12.33
Consumer Staples 11.01 12.64
Energy 5.85 4.75
Financials 9.78 19.36
Health Care 9.95 11.44
Industrials 12.49 14.01
Information Technology 9.60 5.68
Materials 10.44 7.26
Real Estate 2.75 3.99
Telecom Services 9.34 4.87
Utilities 7.14 3.67
Cash 0.76 0.00

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

United Kingdom 15.72
Japan 15.63
Switzerland 7.99
Germany 7.94
France 7.93
Australia 7.91
Italy 4.06
Netherlands 4.04
Sweden 3.99
Spain 3.97
View All

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

Europe except U.K. 51.87
United Kingdom 15.72
Japan 15.63
Asia/Pacific 14.81
Middle East 1.96

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

Holding % of Net Assets
Nestle SA 1.08%
Vodafone Group PLC 0.94%
National Grid PLC 0.84%
Deutsche Telekom AG 0.80%
KDDI Corp 0.78%
Telstra Corp Ltd 0.78%
GlaxoSmithKline PLC 0.74%
TOTAL SA 0.72%
Air Liquide SA 0.70%
Unilever NV 0.69%
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 Jun 30, 2016

Developed equity markets outside the U.S. fell modestly in the second quarter of 2016, down -1.46% (as measured by the MSCI EAFE Index).1 Political and economic uncertainty weighed on the markets during the quarter. In particular the Index experienced a volatile finish to the period in the wake of the U.K.'s surprise decision to exit the European Union (EU). The fate of the EU will continue to be on investors' minds as the Brexit process unfolds. Adding further to investor uncertainty is a dovish U.S. Federal Reserve (Fed) that continues to ponder raising interest rates, only to take no action.

Thirteen of the 21 countries in the MSCI EAFE Index posted negative returns in the second quarter. Natural resource-sensitive New Zealand posted the highest absolute country return, followed by Norway, which outperformed on the rally in energy prices over the quarter. Italy had the weakest results, as concerns continue to mount around the financial health of Italian banks.

Performance by sector was mixed during the period. With the rebound of commodity prices during the second quarter, the energy sector posted the strongest positive return. Meanwhile, sectors perceived as safe havens, namely health care and consumer staples, also posted positive returns. The weakest return came from the consumer discretionary sector, which can be economically sensitive and vulnerable to cautious spending amid uncertainty.

Performance Summary 

Parametric International Equity Fund (the Fund) outperformed the Index for the quarter ended June 30, 2016, returning -0.51% for Investor Class shares at net asset value versus the Index's -1.46% return.

  • The Fund's emphasis on diversification10 via a system of country target weights detracted from performance relative to the Index. The diversification targets consistently position the Fund to 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 second quarter, this sector diversification process was a strong contributor to relative performance.
  • In addition, the Fund's emphasis on diversification within each country/sector combination, via the inclusion of non-Index names and the exclusion of higher-beta names, was a contributor to the Fund's outperformance versus the Index.

Historical Returns (%)as of Jun 30, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV -1.82 -0.51 -0.25 -4.11 4.22 2.75 4.39
MSCI EAFE Index1 -3.36 -1.46 -4.42 -10.16 2.06 1.68 3.21
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. The share class has no sales charge.

Fund Factsas of Jun 30, 2016

Investor Class Inception 04/01/2010
Expense Ratio (Gross)2 1.20%
Expense Ratio (Net)2,3 0.90%

Contributors 

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

  • In Germany, sector diversification made a strong contribution to the Fund's relative performance. As uncertainty weighed on stock markets across Europe, the Fund's resulting overweights to outperforming defensive sectors in Germany were notable sources of added value relative to the Index.
  • The sector diversification process in Spain also contributed to the Fund's relative performance. The resulting underweight to financials left the Fund less exposed to a sector negatively impacted by the U.K. decision to exit the EU.
  • In Japan, the Fund's sector diversification process, as well as its emphasis on low-beta securities within sectors, also contributed to relative performance.

Detractors 

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

  • In Switzerland, the sector diversification process detracted from the Fund's relative performance. This was primarily due to the resulting underweight to the outperforming, defensive health care sector and an overweight to the economically sensitive consumer discretionary sector.
  • Negative implications surrounding the Brexit vote harmed smaller, peripheral EU countries. Overweights to Ireland and Italy, two of the weakest-performing countries during the period, detracted from the Fund's relative returns.
  • In Sweden, the Fund's emphasis on low-beta securities within sectors detracted from relative performance.

Investment Outlook And Fund Positioning 

Markets around the world face many political and economic uncertainties and concerns. The most recent addition is the decision by the U.K. to exit the EU. Added uncertainties include the U.S. presidential election, the direction of commodity prices and when the Fed will increase interest rates, along with 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 Jun 30, 2016

Nestle SA 1.08
Vodafone Group PLC 0.98
National Grid PLC 0.89
KDDI Corporation 0.80
Telstra Corporation Limited 0.76
Deutsche Telekom AG 0.75
Total SA 0.74
GlaxoSmithKline PLC 0.74
Unilever NV Cert. of SHS 0.71
Air Liquide SA 0.71
Total 8.16

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: Jun 30, 2016

Commentary

Download - Last updated: Jun 30, 2016

Attribution

Download - Last updated: Jun 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

Download

SAI

Download - Last updated: Jun 1, 2016

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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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