Overview

Growth of $10,000

Since Fund inception ended 03/31/2017

  • Investor Class at NAV

Historical Returns (%)as of Mar 31, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV 3.32 7.92 7.92 9.17 1.61 6.16 5.30
MSCI EAFE Index1 2.75 7.25 7.25 11.67 0.50 5.83 4.72
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 Mar 31, 2017

Investor Class Inception 04/01/2010
Investment Objective Long-term capital appreciation
Total Net Assets $204.5M
Minimum Investment $1000
Expense Ratio (Gross)2 0.95%
Expense Ratio (Net)2,3 0.75%
CUSIP 277923413

Top 10 Holdings (%)4,5as of Mar 31, 2017

Nestle SA
Vodafone Group PLC
National Grid PLC
Air Liquide SA
Compagnie Financiere Richemont SA
Deutsche Telekom AG
Total SA
Royal Dutch Shell PLC Class A
GlaxoSmithKline PLC
BP PLC
Total 7.33

Morningstar™ Ratingsas of Mar 31, 2017

Time Period Rating Funds in
Foreign Large Blend
Category
Overall **** 586
3 Years **** 586
5 Years **** 525
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds and exchange-traded funds) 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. Star ratings do not reflect the effect of any applicable sales load.

©2017 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.

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 Mar 31, 2017

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV 3.32 7.92 7.92 9.17 1.61 6.16 5.30
MSCI EAFE Index1 2.75 7.25 7.25 11.67 0.50 5.83 4.72
Morningstar™ Foreign Large Blend Category6 2.98 7.74 7.74 10.88 0.40 5.02
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 (%)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Fund at NAV -10.14 16.83 18.05 -3.98 2.00 1.42
MSCI EAFE Index1 11.17 -43.38 31.78 7.75 -12.14 17.32 22.78 -4.90 -0.81 1.00

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 Mar 31, 2017

Alpha (%) 1.12
Beta 0.87
R-Squared (%) 95.05
Standard Deviation (%) 10.87
Sharpe Ratio 0.13

Morningstar™ Ratingsas of Mar 31, 2017

Time Period Rating Funds in
Foreign Large Blend
Category
Overall **** 586
3 Years **** 586
5 Years **** 525
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds and exchange-traded funds) 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. Star ratings do not reflect the effect of any applicable sales load.

©2017 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.

NAV History

Date NAV NAV Change
Apr 25, 2017 $12.49 $0.08
Apr 24, 2017 $12.41 $0.28
Apr 21, 2017 $12.13 -$0.03
Apr 20, 2017 $12.16 $0.05
Apr 19, 2017 $12.11 -$0.05
Apr 18, 2017 $12.16 -$0.03
Apr 17, 2017 $12.19 $0.08
Apr 13, 2017 $12.11 -$0.07
Apr 12, 2017 $12.18 $0.04
Apr 11, 2017 $12.14 $0.05

Distribution History8

Ex-Date Distribution Reinvest NAV
Dec 28, 2016 $0.17600 $11.12
Jun 15, 2016 $0.00240 $11.02
Dec 29, 2015 $0.26570 $11.43
Dec 29, 2014 $0.25080 $11.45
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 Mar 31, 2017

Foreign Common Stocks 89.99
Cash & Other Assets 10.01
Total 100.00

Portfolio Statisticsas of Mar 31, 2017

Median Market Cap $3.6B
Price/Earnings Ratio 18.67
Number of Holdings 1,061
Price/Book Ratio 1.85
Countries Represented 21

GICS Sector Breakdown (%)5as of Mar 31, 2017

Sector Fund MSCI EAFE Index1
Consumer Discretionary 9.26 12.24
Consumer Staples 9.26 11.38
Energy 5.14 5.00
Financials 9.88 21.27
Health Care 8.34 10.70
Industrials 9.81 14.31
Information Technology 8.16 5.71
Materials 8.49 7.92
Real Estate 7.56 3.70
Telecom Services 7.62 4.36
Utilities 6.47 3.40
Cash 10.01 0.00

Assets by Country (%)5as of Mar 31, 2017

United Kingdom 15.87
Japan 15.75
France 7.97
Germany 7.96
Switzerland 7.88
Australia 7.86
Sweden 3.98
Italy 3.97
Netherlands 3.97
Spain 3.97
View All

Geographic Mix (%)5as of Mar 31, 2017

Europe except U.K. 51.61
United Kingdom 15.87
Japan 15.75
Asia/Pacific 14.79
Middle East 1.98

Fund Holdings (%)5,9as of Feb 28, 2017

Holding % of Net Assets
Nestle SA 1.03%
Vodafone Group PLC 0.95%
National Grid PLC 0.82%
GlaxoSmithKline PLC 0.73%
TOTAL SA 0.73%
Deutsche Telekom AG 0.72%
Air Liquide SA 0.71%
Cie Financiere Richemont SA 0.70%
BP PLC 0.64%
Royal Dutch Shell PLC 0.63%
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 Dec 31, 2016

Developed equity markets outside the U.S. were nearly flat in the fourth quarter of 2016, down -0.71%, as measured by the MSCI EAFE Index.1 The near-flat return belied market turbulence during the quarter. Back-to-back monthly declines at the beginning of the quarter were nearly erased by a rebound in December against a backdrop of broadly supportive economic news and higher bond yields.

Of the 21 countries in the index, 13 countries had negative returns over the quarter. The best-performing countries were Austria and Italy. Austrian gains were primarily due to a rebound in energy stocks and the election of a pro-euro president. Italian stocks rallied on news of positive economic data and plans to stabilize the Italian banking system. The worst-performing countries were Belgium, Israel and New Zealand. The common driver of weakness was the health care sector, which fell on continued worries around the pharmaceutical industry.

A majority of sectors were negative; with seven of eleven sectors (as defined by GICS) down for the quarter. The top-performing sector was energy, supported by higher commodity prices and a modestly better economic outlook. The second-best performing sector was financials, which rallied on the outlook for rising rates and the December rate hike by the Federal Reserve. The consumer staples sector produced the weakest returns as investors expressed concerns that the incoming U.S. administration may seek to restrict international trade. The health care sector posted the second-weakest returns amid ongoing drug pricing pressures and disappointing earnings reports.

Performance Summary 

Parametric International Equity Fund (the Fund) underperformed the Index for the quarter ended December 31, 2016, returning -3.57% for the investor shares at net asset value versus the Index's -0.71% return.

  • The Fund's emphasis on diversification10 via a system of country target weights had very little impact on 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 fourth quarter, this sector diversification process was a moderate detractor to relative performance.
  • In addition, the Fund's emphasis on diversification via a system of broad security representation, with an emphasis on reducing portfolio risk, was a moderate detractor to the Fund's performance versus the Index.

Historical Returns (%)as of Dec 31, 2016

Annualized
1 Mo. 3 Mos. YTD 1 Yr. 3 Yrs. 5 Yrs. Life of Fund
Fund at NAV 2.77 -3.57 1.42 1.42 -0.22 6.49 4.31
MSCI EAFE Index1 3.42 -0.71 1.00 1.00 -1.60 6.53 3.81
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 Dec 31, 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:

  • The sector diversification process in Switzerland contributed to the Fund's relative performance, partially due to the resulting overweight to the consumer discretionary sector, which rose on a rally in Swiss watchmakers.
  • In Israel, the sector diversification process, as well as the application of the beta-filter within each country/sector combination, contributed to relative returns. In part, the outperformance was due to the resulting underweight to the health care sector, which fell on continued worries around the pharmaceutical industry.
  • An overweight to Italy also benefited relative performance, as Italian stocks rallied on the back of a government support program for its troubled banking system.

Detractors 

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

  • The sector diversification process in the U.K. detracted moderately from relative returns, due to the resulting underweight to the financial sector. U.K. banks are benefitting from their global business model, paired with a weakening currency base.
  • In Japan, the sector diversification process, as well as the beta-filter in each country/sector combination, detracted from relative returns. In part, the underperformance was due to the removal of high-beta stocks, which fared better during the stock rally in Japan early in the quarter.
  • The sector diversification process in France moderately detracted from relative returns.

Investment Outlook And Fund Positioning 

Markets around the world have many political and economic uncertainties and concerns, in addition to ongoing turmoil in many regions. Political uncertainty is set to continue in 2017, with the start of Brexit negotiations, elections in France, Germany and the Netherlands, and the potential for early elections in Italy. Investors will also be waiting to see how U.S. economic and foreign policy are influenced by President Trump.

How does one invest in this space with so much short-term uncertainty? We seek to manage risk through broad diversification, avoiding concentrations and by rebalancing all key factors to consider when making investment decisions. Parametric's developed international equity investment strategy utilizes 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 Dec 31, 2016

Nestle SA 1.01
Vodafone Group PLC 0.84
National Grid PLC 0.78
Deutsche Telekom AG 0.75
Air Liquide SA 0.71
Total SA 0.71
Compagnie Financiere Richemont SA 0.71
Royal Dutch Shell PLC Class A 0.68
BP PLC 0.68
GlaxoSmithKline PLC 0.66
Total 7.55

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 with Parametric Portfolio Associates LLC, an investment adviser and majority-owned subsidiary of Eaton Vance Corp. Tom is responsible for all portfolio management and trading at the Seattle Investment Center, and is a member of the executive committee. He joined Parametric in 1998.

Tom began his career in the investment management industry in 1991. Before joining Parametric, he served as 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 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: Mar 31, 2017

Commentary

Download - Last updated: Dec 31, 2016

Attribution

Download - Last updated: Mar 31, 2017

Annual Report

Download - Last updated: Jan 31, 2017

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

Performance Always Matters

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EXCLUSIVE CONTENT

Sales Idea

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Semi-Annual Report

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Summary Prospectus

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XBRL

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