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Form N-CSR EATON VANCE GROWTH TRUST For: Aug 31

October 26, 2021 11:33 AM EDT

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-01241

 

 

Eaton Vance Growth Trust

(Exact Name of Registrant as Specified in Charter)

 

 

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

 

 

Deidre E. Walsh

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

 

 

(617) 482-8260

(Registrant’s Telephone Number)

August 31

Date of Fiscal Year End

August 31, 2021

Date of Reporting Period

 

 

 


Item 1. Reports to Stockholders

 


LOGO

 

 

Eaton Vance

Greater China Growth Fund

Annual Report

August 31, 2021

 

 

 

LOGO


 

 

Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (“CFTC”) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The investment adviser has claimed an exclusion from the definition of “commodity pool operator” under the Commodity Exchange Act with respect to its management of the Fund. Accordingly, neither the Fund nor the adviser with respect to the operation of the Fund is subject to CFTC regulation. Because of its management of other strategies, the Fund’s adviser is registered with the CFTC as a commodity pool operator. The adviser is also registered as a commodity trading advisor.

Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.

This report must be preceded or accompanied by a current summary prospectus or prospectus. Before investing, investors should consider carefully the investment objective, risks, and charges and expenses of a mutual fund. This and other important information is contained in the summary prospectus and prospectus, which can be obtained from a financial intermediary. Prospective investors should read the prospectus carefully before investing. For further information, please call 1-800-262-1122.


Annual Report August 31, 2021

Eaton Vance

Greater China Growth Fund

 

Table of Contents

  

Management’s Discussion of Fund Performance

     2  

Performance

     3  

Fund Profile

     4  

Endnotes and Additional Disclosures

     5  

Fund Expenses

     6  

Financial Statements

     7  

Report of Independent Registered Public Accounting Firm

     21  

Federal Tax Information

     22  

Board of Trustees’ Contract Approval

     23  

Liquidity Risk Management Program

     26  

Management and Organization

     27  

Privacy Notice

     30  

Important Notices

     32  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Management’s Discussion of Fund Performance1

 

 

Economic and Market Conditions

The Greater China markets posted gains during the 12-month period ended August 31, 2021, with the MSCI Golden Dragon Index (the Index) rising 8.46% in U.S. dollar (USD) terms on a total return basis. Volatility was again high during the period, with initial optimism associated with China’s relative success in handling the COVID-19 pandemic giving way to concerns over the impact of President Xi’s domestic reform agenda as the Chinese Communist Party began to aggressively re-assert control over the high-growth online economy during the period.

Among China’s key markets, Taiwan performed exceptionally well during the period. Taiwan’s gains were principally driven by the strength of the Index’s heavyweights like Taiwan Semiconductor Manufacturing Co., Ltd., which enjoyed buoyant market conditions on the back of a strong “post-COVID-19” recovery in global demand — especially for mobile communications, cloud computing, artificial intelligence, and electric vehicle-related semiconductor applications. The China market was up almost 30% from the beginning of the period to its peak in mid-February 2021, before policy changes took their toll, driving the market down 26% in the second half of the period.

Many factors underpinned recent policy moves in China. Chief among them was the perceived need to re-assert the primacy of the Communist Party in the face of new economy, private-sector, platform monopolies, and to deliver on the social contract by reducing inequality, promoting a more equitable distribution of the rewards of economic growth and stamping out abusive practices. President Xi called this policy shift an “outline for common prosperity,” a concept that dates back to the founding of the Communist Party. This policy drive has been characterized as a push by the state to re-assert its control over all aspects of content, culture, capital, and commerce in China. During the period, China undertook an overhaul of domestic regulation — at least as it pertained to its developing economic model — and a re-calibration of the relationship between the country’s private business sector and the state.

In terms of short-term market impact, many of the high-growth, high-profile internet companies were hardest hit during the period, but there was some broader collateral damage in an environment of high volatility and general investor de-risking. China is far from unique in its attempts to grapple with these “new economy” challenges, including how to regulate the collection and use of personal data and how to tax internet monopolies.

Fund Performance

For the 12-month period ended August 31, 2021, Eaton Vance Greater China Growth Fund (the Fund) returned 8.48% for Class A shares at net asset value, performing approximately in line with its benchmark, the Index, which returned 8.46%.

The regional shipping company, SITC International Holdings Co., Ltd., was among the Fund’s top performers, rising 257% during the period (total return in USD). The company announced exceptional results for 2020, with sales up 9% and net profit up 60% year-over-year, supported by strong shipping volumes, rising freight rates, efficiency-driven cost improvements and continuing fleet expansion. Freight rates remained firm and buoyant export demand may underwrite further growth. Despite the company’s strong share price performance, the valuation was still undemanding, with the stock trading at a single-digit price/earnings growth ratio during the period, while offering an attractive dividend yield of more than 4%.

The Fund’s underweight position in the top-performing Taiwanese market detracted from performance during the period, but this was offset by the Fund’s low exposure to many of the new economy names that were hit hardest by the threat of regulatory changes in China. The Fund has traditionally held no exposure to these names — Alibaba, Meituan, Pinduoduo — because of concerns around valuation and legal structures.

One of the Fund’s poorest performing companies during the period was the Hong Kong-listed Macau gaming stock, Sands China, Ltd. (Sands China). A subsidiary of the U.S.-listed Las Vegas Sands Corp., Sands China runs some of the more high-profile gaming and leisure facilities in Macau, which is the only part of mainland China where gambling is legal. Sands China’s operating performance was hit hard by the movement restrictions imposed by the COVID-19 epidemic, common to all travel and leisure-related names across the region, while recent discussions around the payment of dividends by “foreign entities” like Sands China have created more uncertainty. The stock price fell 27% during the period.

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to eatonvance.com.

 

  2  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Performance2,3

 

Portfolio Managers as of August 31, 2021: June Lui, CFA and Christopher Darling, each of BMO Global Asset Management (Asia) Limited (BMO GAM (Asia))

Portfolio Managers effective October 1, 2021: Amay Hattangadi and Leon Sun, each of Morgan Stanley Investment Management Company (MSIM Company)

 

% Average Annual Total Returns    Class
Inception Date
     Performance
Inception Date
     One Year      Five Years      Ten Years  

Class A at NAV

     10/28/1992        10/28/1992        8.48      13.15      8.73

Class A with 5.75% Maximum Sales Charge

                   2.26        11.83        8.09  

Class C at NAV

     12/28/1993        10/28/1992        7.74        12.36        7.98  

Class C with 1% Maximum Sales Charge

                   6.76        12.36        7.98  

Class I at NAV

     10/01/2009        10/28/1992        8.81        13.48        9.05  

 

MSCI Golden Dragon Index

                   8.46      12.69      8.75
% Total Annual Operating Expense Ratios4                    Class A      Class C      Class I  
           1.50      2.25      1.25

Growth of $10,000

 

This graph shows the change in value of a hypothetical investment of $10,000 in Class A of the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.

 

LOGO

 

Growth of Investment      Amount Invested        Period Beginning        At NAV        With Maximum Sales Charge  

Class C

       $10,000          08/31/2011          $21,553          N.A.  

Class I

       $250,000          08/31/2011          $594,887          N.A.  

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to eatonvance.com.

 

  3  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Fund Profile

 

 

Regional Allocation (% of net assets)5

 

 

LOGO

Sector Allocation (% of net assets)5

 

 

LOGO

Top 10 Holdings (% of net assets)5

 

 

AIA Group, Ltd.

     9.6

Tencent Holdings, Ltd.

     8.7  

Taiwan Semiconductor Manufacturing Co., Ltd.

     8.5  

Haier Smart Home Co., Ltd., Class H

     5.6  

Hong Kong Exchanges & Clearing, Ltd.

     4.2  

Ping An Insurance (Group) Co. of China, Ltd., Class H

     3.7  

China Resources Gas Group, Ltd.

     3.3  

Link REIT

     3.2  

China Mengniu Dairy Co., Ltd.

     3.0  

Inner Mongolia Yili Industrial Group Co., Ltd., Class A

     3.0  

Total

     52.8
 

 

See Endnotes and Additional Disclosures in this report.

 

  4  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Endnotes and Additional Disclosures

 

1 

The views expressed in this report are those of the 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 and the Fund(s) disclaim 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.

 

2 

MSCI Golden Dragon Index is an unmanaged index of common stocks traded in China, Hong Kong and Taiwan. MSCI indexes are net of foreign withholding taxes. Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides no warranties, has not prepared or approved this report, and has no liability hereunder. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index.

 

3 

Total Returns at NAV do not include applicable sales charges. If sales charges were deducted, the returns would be lower. Total Returns shown with maximum sales charge reflect the stated maximum sales charge. Unless otherwise stated, performance does not reflect the deduction of taxes on Fund distributions or redemptions of Fund shares.

 

4 

Source: Fund prospectus. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report.

 

5 

Excludes cash and cash equivalents.

Fund profile subject to change due to active management.

Important Notice to Shareholders

Effective October 1, 2021, the Board of Trustees approved (i) the termination of the investment sub-advisory agreement with BMO GAM (Asia); (ii) the appointment of MSIM Company, a wholly-owned subsidiary of Morgan Stanley, as sub-adviser to manage the Fund’s assets, and a related investment sub-advisory agreement; and (iii) an amendment to the investment advisory agreement between the Fund and BMR to lower the contractual investment advisory fee rate at certain asset levels to coincide with the implementation of the new investment sub-advisory agreement. In connection with these changes, the portfolio managers of the Fund changed.

 

 

  5  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Fund Expenses

 

 

Example:  As a Fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of Fund investing and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2021 – August 31, 2021).

Actual Expenses:  The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes:  The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual Fund return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees (if applicable). Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.

 

     Beginning
Account Value
(3/1/21)
     Ending
Account Value
(8/31/21)
    

Expenses Paid
During Period*

(3/1/21 – 8/31/21)

     Annualized
Expense
Ratio
 

Actual

          

Class A

  $ 1,000.00      $ 904.40      $ 8.26        1.72

Class C

  $ 1,000.00      $ 901.30      $ 11.60        2.42

Class I

  $ 1,000.00      $ 905.70      $ 6.87        1.43
         

Hypothetical

          

(5% return per year before expenses)

          

Class A

  $ 1,000.00      $ 1,016.50      $ 8.74        1.72

Class C

  $ 1,000.00      $ 1,013.00      $ 12.28        2.42

Class I

  $ 1,000.00      $ 1,018.00      $ 7.27        1.43

 

*

Expenses are equal to the Fund’s annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on February 28, 2021.

 

  6  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Portfolio of Investments

 

 

Common Stocks — 95.0%

 

Security   Shares     Value  
China — 59.8%  
Biotechnology — 1.9%  

Hualan Biological Engineering, Inc., Class A

    469,699     $ 2,139,623  
            $ 2,139,623  
Food Products — 10.5%  

China Mengniu Dairy Co., Ltd.

    550,000     $ 3,308,118  

Dali Foods Group Co., Ltd.(1)

    4,284,500       2,399,854  

Foshan Haitian Flavouring & Food Co., Ltd., Class A

    64,896       955,100  

Inner Mongolia Yili Industrial Group Co., Ltd., Class A

    619,318       3,263,309  

Tingyi (Cayman Islands) Holding Corp.

    926,000       1,648,970  
            $ 11,575,351  
Gas Utilities — 3.3%  

China Resources Gas Group, Ltd.

    590,000     $ 3,576,512  
            $ 3,576,512  
Health Care Equipment & Supplies — 0.2%  

AK Medical Holdings, Ltd.(1)

    202,000     $ 207,662  
            $ 207,662  
Health Care Providers & Services — 4.4%  

Dian Diagnostics Group Co., Ltd., Class A

    536,000     $ 2,489,320  

Sinopharm Group Co., Ltd., Class H

    896,400       2,306,890  
            $ 4,796,210  
Hotels, Restaurants & Leisure — 0.8%  

Xiabuxiabu Catering Management China Holdings Co., Ltd.(1)

    1,001,000     $ 884,486  
            $ 884,486  
Household Durables — 7.5%  

Haier Smart Home Co., Ltd., Class H

    1,639,200     $ 6,174,873  

Zhejiang Supor Co., Ltd., Class A

    272,925       2,061,462  
            $ 8,236,335  
Insurance — 5.3%  

China Pacific Insurance (Group) Co., Ltd., Class H

    610,200     $ 1,719,769  

Ping An Insurance (Group) Co. of China, Ltd., Class H

    532,500       4,123,189  
            $ 5,842,958  
Interactive Media & Services — 8.7%  

Tencent Holdings, Ltd.

    156,100     $ 9,641,170  
            $ 9,641,170  
Security   Shares     Value  
IT Services — 4.0%  

Beijing Sinnet Technology Co., Ltd., Class A

    645,494     $ 1,397,593  

TravelSky Technology, Ltd., Class H

    1,630,000       3,053,382  
            $ 4,450,975  
Marine — 2.6%  

SITC International Holdings Co., Ltd.

    665,000     $ 2,896,801  
            $ 2,896,801  
Personal Products — 2.1%  

BYHEALTH Co., Ltd., Class A

    600,297     $ 2,335,389  
            $ 2,335,389  
Professional Services — 2.4%  

Centre Testing International Group Co., Ltd., Class A

    643,372     $ 2,626,540  
            $ 2,626,540  
Software — 1.7%  

Beijing SuperMap Software Co., Ltd., Class A

    458,100     $ 1,906,123  
            $ 1,906,123  
Textiles, Apparel & Luxury Goods — 2.3%  

ANTA Sports Products, Ltd.

    123,000     $ 2,526,526  
            $ 2,526,526  
Transportation Infrastructure — 2.1%  

Shanghai International Airport Co., Ltd., Class A(2)

    339,551     $ 2,272,653  
            $ 2,272,653  

Total China
(identified cost $42,792,944)

 

  $ 65,915,314  
Hong Kong — 19.6%  
Capital Markets — 4.2%  

Hong Kong Exchanges & Clearing, Ltd.

    73,621     $ 4,650,937  
            $ 4,650,937  
Equity Real Estate Investment Trusts (REITs) — 3.2%  

Link REIT

    376,500     $ 3,461,692  
            $ 3,461,692  
Hotels, Restaurants & Leisure — 1.6%  

Sands China, Ltd.(2)

    562,400     $ 1,806,766  
            $ 1,806,766  
 

 

  7   See Notes to Financial Statements.


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Security   Shares     Value  
Insurance — 9.6%  

AIA Group, Ltd.

    885,000     $ 10,567,541  
            $ 10,567,541  
Textiles, Apparel & Luxury Goods — 1.0%  

Samsonite International S.A.(1)(2)

    539,100     $ 1,129,675  
            $ 1,129,675  

Total Hong Kong
(identified cost $10,154,283)

 

  $ 21,616,611  
Taiwan — 15.6%  
Banks — 0.6%  

CTBC Financial Holding Co., Ltd.

    781,881     $ 648,050  
            $ 648,050  
Electronic Equipment, Instruments & Components — 0.6%  

Largan Precision Co., Ltd.

    7,000     $ 674,909  
            $ 674,909  
Food & Staples Retailing — 2.3%  

President Chain Store Corp.

    243,000     $ 2,502,065  
            $ 2,502,065  
Insurance — 0.9%  

Cathay Financial Holding Co., Ltd.

    469,929     $ 1,009,210  
            $ 1,009,210  
Multiline Retail — 1.0%  

Poya International Co., Ltd.

    63,462     $ 1,153,496  
            $ 1,153,496  
Semiconductors & Semiconductor Equipment — 10.2%  

Taiwan Semiconductor Manufacturing Co., Ltd.

    428,839     $ 9,406,678  

Win Semiconductors Corp.

    152,000       1,803,883  
            $ 11,210,561  

Total Taiwan
(identified cost $7,368,121)

          $ 17,198,291  

Total Common Stocks — 95.0%
(identified cost $60,315,348)

 

  $ 104,730,216  

Other Assets, Less Liabilities — 5.0%

 

  $ 5,560,740  

Net Assets — 100.0%

 

  $ 110,290,956  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

 

(1) 

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At August 31, 2021, the aggregate value of these securities is $4,621,677 or 4.2% of the Fund’s net assets.

 

(2) 

Non-income producing security.

 

 

  8   See Notes to Financial Statements.


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Statement of Assets and Liabilities

 

 

Assets    August 31, 2021  

Unaffiliated investments, at value (identified cost, $60,315,348)

   $ 104,730,216  

Cash

     4,379,502  

Foreign currency, at value (identified cost, $398,773)

     399,836  

Dividends receivable

     176,568  

Receivable for investments sold

     698,838  

Receivable for Fund shares sold

     209,759  

Total assets

   $ 110,594,719  
Liabilities         

Payable for Fund shares redeemed

   $ 55,808  

Payable to affiliates:

  

Investment adviser fee

     92,748  

Administration fee

     13,912  

Distribution and service fees

     23,068  

Accrued expenses

     118,227  

Total liabilities

   $ 303,763  

Net Assets

   $ 110,290,956  
Sources of Net Assets         

Paid-in capital

   $ 64,985,874  

Distributable earnings

     45,305,082  

Total

   $ 110,290,956  
Class A Shares

 

Net Assets

   $ 84,358,951  

Shares Outstanding

     3,139,686  

Net Asset Value and Redemption Price Per Share

  

(net assets ÷ shares of beneficial interest outstanding)

   $ 26.87  

Maximum Offering Price Per Share

  

(100 ÷ 94.25 of net asset value per share)

   $ 28.51  
Class C Shares

 

Net Assets

   $ 1,460,137  

Shares Outstanding

     58,576  

Net Asset Value and Offering Price Per Share*

  

(net assets ÷ shares of beneficial interest outstanding)

   $ 24.93  
Class I Shares

 

Net Assets

   $ 24,471,868  

Shares Outstanding

     900,792  

Net Asset Value, Offering Price and Redemption Price Per Share

  

(net assets ÷ shares of beneficial interest outstanding)

   $ 27.17  

On sales of $50,000 or more, the offering price of Class A shares is reduced.

 

*

Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.

 

  9   See Notes to Financial Statements.


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Statement of Operations

 

 

Investment Income   

Year Ended

August 31, 2021

 

Dividends (net of foreign taxes, $146,186)

   $ 1,973,071  

Total investment income

   $ 1,973,071  
Expenses         

Investment adviser fee

   $ 1,168,667  

Administration fee

     175,300  

Distribution and service fees

  

Class A

     277,064  

Class C

     18,265  

Trustees’ fees and expenses

     6,266  

Custodian fee

     57,404  

Transfer and dividend disbursing agent fees

     108,244  

Legal and accounting services

     62,499  

Printing and postage

     21,870  

Registration fees

     49,397  

Miscellaneous

     17,282  

Total expenses

   $ 1,962,258  

Net investment income

   $ 10,813  
Realized and Unrealized Gain (Loss)         

Net realized gain (loss) —

  

Investment transactions

   $ 3,371,262  

Foreign currency transactions

     (21,800

Net realized gain

   $ 3,349,462  

Change in unrealized appreciation (depreciation) —

  

Investments

   $ 5,293,073  

Foreign currency

     1,351  

Net change in unrealized appreciation (depreciation)

   $ 5,294,424  

Net realized and unrealized gain

   $ 8,643,886  

Net increase in net assets from operations

   $ 8,654,699  

 

  10   See Notes to Financial Statements.


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Statements of Changes in Net Assets

 

 

     Year Ended August 31,  
Increase (Decrease) in Net Assets    2021      2020  

From operations —

     

Net investment income

   $ 10,813      $ 371,705  

Net realized gain

     3,349,462        11,258,100  

Net change in unrealized appreciation (depreciation)

     5,294,424        7,960,569  

Net increase in net assets from operations

   $ 8,654,699      $ 19,590,374  

Distributions to shareholders —

     

Class A

   $ (8,497,659    $ (2,635,114

Class C

     (160,991      (114,375

Class I

     (1,872,237      (876,678

Total distributions to shareholders

   $ (10,530,887    $ (3,626,167

Transactions in shares of beneficial interest —

     

Proceeds from sale of shares

     

Class A

   $ 3,181,391      $ 4,202,717  

Class C

     172,348        351,527  

Class I

     12,257,559        18,327,282  

Net asset value of shares issued to shareholders in payment of distributions declared

     

Class A

     7,449,769        2,295,911  

Class C

     160,991        87,260  

Class I

     1,837,752        861,741  

Cost of shares redeemed

     

Class A

     (11,016,250      (13,656,951

Class C

     (429,415      (1,779,339

Class I

     (6,450,688      (25,880,698

Net asset value of shares converted

     

Class A

     731,483        518,422  

Class C

     (731,483      (518,422

Net increase (decrease) in net assets from Fund share transactions

   $ 7,163,457      $ (15,190,550

Net increase in net assets

   $ 5,287,269      $ 773,657  
Net Assets

 

At beginning of year

   $ 105,003,687      $ 104,230,030  

At end of year

   $ 110,290,956      $ 105,003,687  

 

  11   See Notes to Financial Statements.


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Financial Highlights

 

 

    Class A  
    Year Ended August 31,  
     2021     2020     2019     2018     2017  

Net asset value — Beginning of year

  $  27.280     $  23.200     $  24.560     $  25.480     $  20.380  
Income (Loss) From Operations                                        

Net investment income (loss)(1)

  $  (0.015   $ 0.086     $ 0.094     $ 0.094     $ 0.168  

Net realized and unrealized gain

    2.383       4.785       0.604       1.861       5.111  

Total income from operations

  $ 2.368     $ 4.871     $ 0.698     $ 1.955     $ 5.279  
Less Distributions                                        

From net investment income

  $  (0.072   $  (0.074   $  (0.153   $  (0.165   $  (0.179

From net realized gain

    (2.706     (0.717     (1.905     (2.710      

Total distributions

  $  (2.778   $  (0.791   $  (2.058   $  (2.875   $  (0.179

Net asset value — End of year

  $  26.870     $  27.280     $  23.200     $  24.560     $  25.480  

Total Return(2)

    8.48     21.44     3.65     7.69     26.19 %(3) 
Ratios/Supplemental Data                                        

Net assets, end of year (000’s omitted)

  $ 84,359     $ 85,096     $ 78,942     $ 72,953     $ 75,137  

Ratios (as a percentage of average daily net assets):

         

Expenses

    1.73     1.80     1.83     1.82     1.91 %(3) 

Net investment income (loss)

    (0.05 )%      0.36     0.41     0.36     0.78

Portfolio Turnover

    10     9     17     12     14

 

(1) 

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges.

 

(3) 

The investment adviser and sub-adviser reimbursed certain operating expenses (equal to 0.05% of average daily net assets for the year ended August 31, 2017). Absent this reimbursement, total return would be lower.

 

  12   See Notes to Financial Statements.


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Financial Highlights — continued

 

 

    Class C  
    Year Ended August 31,  
     2021     2020     2019     2018     2017  

Net asset value — Beginning of year

  $  25.350     $  21.690     $  23.090     $  24.120     $  19.400  
Income (Loss) From Operations                                        

Net investment loss(1)

  $  (0.206   $  (0.106   $  (0.170   $  (0.090   $  (0.018

Net realized and unrealized gain

    2.227       4.483       0.675       1.770       4.877  

Total income from operations

  $ 2.021     $ 4.377     $ 0.505     $ 1.680     $ 4.859  
Less Distributions                                        

From net investment income

  $     $     $     $     $  (0.139

From net realized gain

    (2.441     (0.717     (1.905     (2.710      

Total distributions

  $  (2.441   $  (0.717   $  (1.905   $  (2.710   $  (0.139

Net asset value — End of year

  $  24.930     $  25.350     $  21.690     $  23.090     $  24.120  

Total Return(2)

    7.74     20.59     2.94     6.93     25.27 %(3) 
Ratios/Supplemental Data                                        

Net assets, end of year (000’s omitted)

  $ 1,460     $ 2,261     $ 3,736     $ 12,163     $ 12,855  

Ratios (as a percentage of average daily net assets):

         

Expenses

    2.43     2.50     2.53     2.52     2.62 %(3) 

Net investment loss

    (0.77 )%      (0.47 )%      (0.80 )%      (0.37 )%      (0.09 )% 

Portfolio Turnover

    10     9     17     12     14

 

(1) 

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges.

 

(3) 

The investment adviser and sub-adviser reimbursed certain operating expenses (equal to 0.05% of average daily net assets for the year ended August 31, 2017). Absent this reimbursement, total return would be lower.

 

  13   See Notes to Financial Statements.


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Financial Highlights — continued

 

 

    Class I  
    Year Ended August 31,  
     2021     2020     2019     2018     2017  

Net asset value — Beginning of year

  $  27.550     $  23.420     $  24.790     $  25.680     $  20.500  
Income (Loss) From Operations                                        

Net investment income(1)

  $ 0.094     $ 0.109     $ 0.302     $ 0.168     $ 0.281  

Net realized and unrealized gain

    2.383       4.883       0.466       1.889       5.096  

Total income from operations

  $ 2.477     $ 4.992     $ 0.768     $ 2.057     $ 5.377  
Less Distributions                                        

From net investment income

  $  (0.151   $  (0.145   $  (0.233   $  (0.237   $  (0.197

From net realized gain

    (2.706     (0.717     (1.905     (2.710      

Total distributions

  $  (2.857   $  (0.862   $  (2.138   $  (2.947   $  (0.197

Net asset value — End of year

  $  27.170     $  27.550     $  23.420     $  24.790     $  25.680  

Total Return(2)

    8.81     21.81     3.94     8.06     26.48 %(3) 
Ratios/Supplemental Data                                        

Net assets, end of year (000’s omitted)

  $ 24,472     $ 17,646     $ 21,552     $ 9,875     $ 11,067  

Ratios (as a percentage of average daily net assets):

         

Expenses

    1.43     1.50     1.53     1.52     1.61 %(3) 

Net investment income

    0.32     0.45     1.29     0.64     1.29

Portfolio Turnover

    10     9     17     12     14

 

(1) 

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested.

 

(3) 

The investment adviser and sub-adviser reimbursed certain operating expenses (equal to 0.05% of average daily net assets for the year ended August 31, 2017). Absent this reimbursement, total return would be lower.

 

  14   See Notes to Financial Statements.


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Notes to Financial Statements

 

 

1  Significant Accounting Policies

Eaton Vance Greater China Growth Fund (the Fund) is a non-diversified series of Eaton Vance Growth Trust (the Trust). The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. The Fund’s investment objective is to seek long-term capital appreciation. The Fund offers three classes of shares. Class A shares are generally sold subject to a sales charge imposed at time of purchase. Class C shares are sold at net asset value and are generally subject to a contingent deferred sales charge (see Note 5). Effective January 25, 2019, Class C shares generally automatically convert to Class A shares ten years after their purchase and, effective November 5, 2020, automatically convert to Class A shares eight years after their purchase as described in the Fund’s prospectus. Class I shares are sold at net asset value and are not subject to a sales charge. Each class represents a pro-rata interest in the Fund, but votes separately on class-specific matters and (as noted below) is subject to different expenses. Realized and unrealized gains and losses and net investment income and losses, other than class-specific expenses, are allocated daily to each class of shares based on the relative net assets of each class to the total net assets of the Fund. Each class of shares differs in its distribution plan and certain other class-specific expenses.

The following is a summary of significant accounting policies of the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946.

A  Investment Valuation — The following methodologies are used to determine the market value or fair value of investments.

Equity Securities. Equity securities listed on a U.S. securities exchange generally are valued at the last sale or closing price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and ask prices on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ National Market System generally are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and ask prices.

Foreign Securities and Currencies. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by a third party pricing service. The pricing service uses a proprietary model to determine the exchange rate. Inputs to the model include reported trades and implied bid/ask spreads. The daily valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. When valuing foreign equity securities that meet certain criteria, the Fund’s Trustees have approved the use of a fair value service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities.

Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Fund in a manner that most fairly reflects the security’s “fair value”, which is the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s or entity’s financial statements, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.

B  Investment Transactions — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.

C  Income — Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Fund’s understanding of the applicable countries’ tax rules and rates.

D  Federal Taxes — The Fund’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary.

As of August 31, 2021, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

E  Expenses — The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds.

F  Foreign Currency Translation — Investment valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net

 

  15  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.

G  Use of Estimates — The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.

H  Indemnifications — Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Trust) could be deemed to have personal liability for the obligations of the Trust. However, the Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Trust shall assume, upon request by the shareholder, the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Fund enters into agreements with service providers that may contain indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.

2  Distributions to Shareholders and Income Tax Information

It is the present policy of the Fund to make at least one distribution annually (normally in December) of all or substantially all of its net investment income and to distribute annually all or substantially all of its net realized capital gains. Distributions to shareholders are recorded on the ex-dividend date. Distributions are declared separately for each class of shares. Shareholders may reinvest income and capital gain distributions in additional shares of the same class of the Fund at the net asset value as of the ex-dividend date or, at the election of the shareholder, receive distributions in cash. Distributions to shareholders are determined in accordance with income tax regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.

The tax character of distributions declared for the years ended August 31, 2021 and August 31, 2020 was as follows:

 

     Year Ended August 31,  
      2021      2020  

Ordinary income

   $ 1,686,934      $ 395,197  

Long-term capital gains

   $ 8,843,953      $ 3,230,970  

During the year ended August 31, 2021, distributable earnings was decreased by $320,984 and paid-in capital was increased by $320,984 due to the Fund’s use of equalization accounting. Tax equalization accounting allows the Fund to treat as a distribution that portion of redemption proceeds representing a redeeming shareholder’s portion of undistributed taxable income and net capital gains. These reclassifications had no effect on the net assets or net asset value per share of the Fund.

As of August 31, 2021, the components of distributable earnings (accumulated loss) on a tax basis were as follows:

 

   

Undistributed ordinary income

   $ 49,718  

Undistributed long-term capital gains

     2,158,456  

Net unrealized appreciation

     43,096,908  

Distributable earnings

   $ 45,305,082  

The cost and unrealized appreciation (depreciation) of investments of the Fund at August 31, 2021, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

   $ 61,634,689  

Gross unrealized appreciation

   $ 49,874,964  

Gross unrealized depreciation

     (6,779,437

Net unrealized appreciation

   $ 43,095,527  

 

  16  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

3  Investment Adviser Fee and Other Transactions with Affiliates

The investment adviser fee is earned by Boston Management and Research (BMR) as compensation for investment advisory services rendered to the Fund. On March 1, 2021, Morgan Stanley acquired Eaton Vance Corp. (the “Transaction”) and BMR became an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, the Fund entered into a new investment advisory agreement (the “New Agreement”) with BMR, which took effect on March 1, 2021. The Fund’s prior fee reduction agreement was incorporated into the New Agreement. Pursuant to the New Agreement (and the Fund’s investment advisory agreement and related fee reduction agreement with BMR in effect prior to March 1, 2021), the fee is computed at an annual rate as a percentage of the Fund’s average daily net assets as follows and is payable monthly:

 

Average Daily Net Assets    Annual Fee Rate  

Up to $500 million

     1.00

$500 million but less than $1 billion

     0.91

$1 billion but less than $1.5 billion

     0.83

$1.5 billion but less than $2 billion

     0.75

$2 billion but less than $3 billion

     0.66

$3 billion and over

     0.58

For the year ended August 31, 2021, the investment adviser fee amounted to $1,168,667 or 1.00% of the Fund’s average daily net assets. Pursuant to an investment sub-advisory agreement, BMR delegated the investment management of the Fund to BMO Global Asset Management (Asia) Limited (BMO GAM (Asia)). In connection with the Transaction, BMR entered into a new investment sub-advisory agreement with BMO GAM (Asia), which took effect on March 1, 2021. For the year ended August 31, 2021, BMR paid BMO GAM (Asia) a portion of its investment adviser fee for sub-advisory services provided to the Fund. Effective October 1, 2021, the Board of Trustees approved an amendment to the New Agreement, the appointment of a new sub-adviser and a new investment sub-advisory agreement (see Note 11). The administration fee is earned by Eaton Vance Management (EVM), an affiliate of BMR and effective March 1, 2021, an indirect, wholly-owned subsidiary of Morgan Stanley, for administering the business affairs of the Fund and is computed at an annual rate of 0.15% of the Fund’s average daily net assets. For the year ended August 31, 2021, the administration fee amounted to $175,300.

EVM provides sub-transfer agency and related services to the Fund pursuant to a Sub-Transfer Agency Support Services Agreement. For the year ended August 31, 2021, EVM earned $1,944 from the Fund pursuant to such agreement, which is included in transfer and dividend disbursing agent fees on the Statement of Operations. The Fund was informed that Eaton Vance Distributors, Inc. (EVD), an affiliate of EVM and the Fund’s principal underwriter, received $2,518 as its portion of the sales charge on sales of Class A shares for the year ended August 31, 2021. EVD also received distribution and service fees from Class A and Class C shares (see Note 4) and contingent deferred sales charges (see Note 5).

Trustees and officers of the Fund who are members of EVM’s or BMR’s organizations receive remuneration for their services to the Fund out of the investment adviser fee. Trustees of the Fund who are not affiliated with the investment adviser and administrator may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended August 31, 2021, no significant amounts have been deferred. Certain officers and Trustees of the Fund are officers of the above organizations.

4  Distribution Plans

The Fund has in effect a distribution plan for Class A shares (Class A Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class A Plan, the Fund pays EVD a distribution and service fee of 0.30% per annum of its average daily net assets attributable to Class A shares for distribution services and facilities provided to the Fund by EVD, as well as for personal services and/or the maintenance of shareholder accounts. Distribution and service fees paid or accrued to EVD for the year ended August 31, 2021 amounted to $277,064 for Class A shares. Effective October 1, 2021, the distribution and service fee is reduced (see Note 11).

The Fund also has in effect a distribution plan for Class C shares (Class C Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class C Plan, the Fund pays EVD amounts equal to 0.75% per annum of its average daily net assets attributable to Class C shares for providing ongoing distribution services and facilities to the Fund. For the year ended August 31, 2021, the Fund paid or accrued to EVD $13,699 for Class C shares.

Pursuant to the Class C Plan, the Fund also makes payments of service fees to EVD, financial intermediaries and other persons in amounts equal to 0.25% per annum of its average daily net assets attributable to that class. Service fees paid or accrued are for personal services and/or the maintenance of shareholder accounts. They are separate and distinct from the sales commissions and distribution fees payable to EVD. Service fees paid or accrued for the year ended August 31, 2021 amounted to $4,566 for Class C shares.

Distribution and service fees are subject to the limitations contained in the Financial Industry Regulatory Authority Rule 2341(d).

 

  17  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

5  Contingent Deferred Sales Charges

A contingent deferred sales charge (CDSC) of 1% generally is imposed on redemptions of Class C shares made within 12 months of purchase. Class A shares may be subject to a 1% CDSC if redeemed within 18 months of purchase (depending on the circumstances of purchase). Generally, the CDSC is based upon the lower of the net asset value at date of redemption or date of purchase. No charge is levied on shares acquired by reinvestment of dividends or capital gain distributions. For the year ended August 31, 2021, the Fund was informed that EVD received less than $100 of CDSCs paid by Class C shareholders and no CDSCs paid by Class A shareholders.

6  Purchases and Sales of Investments

Purchases and sales of investments, other than short-term obligations, aggregated $11,611,781 and $17,988,642, respectively, for the year ended August 31, 2021.

7  Shares of Beneficial Interest

The Fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Such shares may be issued in a number of different series (such as the Fund) and classes. Transactions in Fund shares were as follows:

 

     Year Ended August 31,  
Class A    2021      2020  

Sales

     109,913        172,688  

Issued to shareholders electing to receive payments of distributions in Fund shares

     271,889        95,108  

Redemptions

     (386,517      (573,481

Converted from Class C shares

     24,781        22,133  

Net increase (decrease)

     20,066        (283,552
     Year Ended August 31,  
Class C    2021      2020  

Sales

     6,240        15,470  

Issued to shareholders electing to receive payments of distributions in Fund shares

     6,301        3,871  

Redemptions

     (16,496      (78,661

Converted to Class A shares

     (26,673      (23,728

Net decrease

     (30,628      (83,048
     Year Ended August 31,  
Class I    2021      2020  

Sales

     417,497        754,267  

Issued to shareholders electing to receive payments of distributions in Fund shares

     66,465        35,433  

Redemptions

     (223,753      (1,069,554

Net increase (decrease)

     260,209        (279,854

8  Line of Credit

The Fund participates with other portfolios and funds managed by EVM and its affiliates in an $800 million unsecured line of credit agreement with a group of banks, which is in effect through October 26, 2021. Borrowings are made by the Fund solely for temporary purposes related to redemptions and other short-term cash needs. Interest is charged to the Fund based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.15% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. In connection with the renewal of the agreement in October 2020, an upfront fee and arrangement fee totaling $950,000

 

  18  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

was incurred that was allocated to the participating portfolios and funds. Because the line of credit is not available exclusively to the Fund, it may be unable to borrow some or all of its requested amounts at any particular time. The Fund did not have any significant borrowings or allocated fees during the year ended August 31, 2021.

9  Fair Value Measurements

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

 

Level 1 – quoted prices in active markets for identical investments

 

 

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

 

Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At August 31, 2021, the hierarchy of inputs used in valuing the Fund’s investments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Common Stocks

   $         —      $ 104,730,216    $         —      $ 104,730,216  

Total Investments

   $         —      $ 104,730,216      $         —      $ 104,730,216  

 

*

Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets.

10  Risks and Uncertainties

Risks Associated with Foreign Investments

Foreign investments can be adversely affected by political, economic and market developments abroad, including the imposition of economic and other sanctions by the United States or another country. There may be less publicly available information about foreign issuers because they may not be subject to reporting practices, requirements or regulations comparable to those to which United States companies are subject. Foreign markets may be smaller, less liquid and more volatile than the major markets in the United States. Trading in foreign markets typically involves higher expense than trading in the United States. The Fund may have difficulties enforcing its legal or contractual rights in a foreign country. Securities that trade or are denominated in currencies other than the U.S. dollar may be adversely affected by fluctuations in currency exchange rates.

The securities markets in the China region, which includes Hong Kong, China and Taiwan, are impacted by the economies of countries in the region, which differ from the U. S. economy in various ways, such as rate of growth of gross national product, rate of inflation, capital reinvestment, resource self-sufficiency and balance of payments position. As export-driven economies, the economies of countries in the China region are affected by developments in the economies and governmental actions of their principal trading partners, such as the imposition of trading restrictions and tariffs. China’s governmental actions and the actions of other governments can also have a significant effect on the economic conditions in the China region or a particular issuer or industry, which could adversely affect the value and liquidity of investments. A government may restrict investment in companies or industries considered important to national interests, intervene in the financial markets, maintain strict currency controls, or impose repatriation restrictions. Although larger and/or more established than many emerging markets, markets in the China region carry the high levels of risk associated with emerging markets.

Pandemic Risk

An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so in significant and unforeseen ways, as may other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Fund’s performance, or the performance of the securities in which the Fund invests.

 

  19  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

11  Subsequent Events

Effective October 1, 2021, the Board of Trustees approved (i) the termination of the investment sub-advisory agreement with BMO GAM (Asia); (ii) the appointment of Morgan Stanley Investment Management Company, a wholly-owned subsidiary of Morgan Stanley, as sub-adviser to manage the Fund’s assets, and a related investment sub-advisory agreement; and (iii) an amendment to the investment advisory agreement between the Fund and BMR to lower the contractual investment advisory fee rate at certain asset levels to coincide with the implementation of the new investment sub-advisory agreement. Effective October 1, 2021, the fee is computed at an annual rate as a percentage of the Fund’s average daily net assets as follows and is payable monthly:

 

Average Daily Net Assets    Annual Fee Rate  

Up to $500 million

     0.7500

$500 million but less than $1 billion

     0.7000

$1 billion but less than $1.5 billion

     0.6750

$1.5 billion but less than $2 billion

     0.6750

$2 billion but less than $3 billion

     0.6600

$3 billion and over

     0.5800

Also effective October 1, 2021, the distribution and service fee pursuant to the Fund’s Class A Plan was reduced to 0.25% per annum of its average daily net assets attributable to Class A shares. In addition, EVM has agreed to reimburse the Fund’s expenses to the extent that total annual operating expenses (relating to ordinary operating expenses only) exceed 1.50%, 2.25% and 1.25% of the Fund’s average daily net assets for Class A, Class C and Class I, respectively. This agreement may be changed or terminated after December 31, 2022.

 

  20  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Report of Independent Registered Public Accounting Firm

 

 

To the Trustees of Eaton Vance Growth Trust and Shareholders of Eaton Vance Greater China Growth Fund:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of Eaton Vance Greater China Growth Fund (the “Fund”) (one of the funds constituting Eaton Vance Growth Trust), including the portfolio of investments, as of August 31, 2021, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of August 31, 2021, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

October 19, 2021

We have served as the auditor of one or more Eaton Vance investment companies since 1959.

 

  21  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Federal Tax Information (Unaudited)

 

 

The Form 1099-DIV you receive in February 2022 will show the tax status of all distributions paid to your account in calendar year 2021. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Fund. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding the status of qualified dividend income for individuals, the foreign tax credit and capital gains dividends.

Qualified Dividend Income.  For the fiscal year ended August 31, 2021, the Fund designates approximately $747,338, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend income eligible for the reduced tax rate of 15%.

Foreign Tax Credit.  For the fiscal year ended August 31, 2021, the Fund paid foreign taxes of $146,186 and recognized foreign source income of $2,113,802.

Capital Gains Dividends.  The Fund hereby designates as a capital gain dividend with respect to the taxable year ended August 31, 2021, $3,303,304 or, if subsequently determined to be different, the net capital gain of such year.

 

  22  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Board of Trustees’ Contract Approval

 

 

Overview of the Contract Review Process

The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that for a fund to enter into an investment advisory (including a sub-advisory) agreement with an investment adviser (or sub-adviser), the fund’s board of trustees, including a majority of the trustees who are not “interested persons” of the fund (“independent trustees”), must approve the agreement and its terms at an in-person meeting called for the purpose of considering such approval. In addition, the 1940 Act provides, in substance, that shareholders of the investment company must approve any new advisory or sub-advisory agreement prior to the effectiveness of the agreement, absent applicable exemptions to such shareholder approval requirement.

At a joint meeting of the Boards of Trustees of the registered investment companies advised by either Eaton Vance Management or its affiliate, Boston Management and Research (the “Adviser” and, together with Eaton Vance Management, “Eaton Vance”), (the “Eaton Vance Funds”) held on August 23, 2021 (the “Meeting”), the Board of Trustees (the “Board”), including a majority of the independent trustees (the “Independent Trustees”), of Eaton Vance Growth Trust (the “Trust”), on behalf of Eaton Vance Greater China Growth Fund, a series of the Trust (the “Fund”), voted to approve a new investment sub-advisory agreement between the Adviser and Morgan Stanley Investment Management Company (“MSIM Co.”), an affiliate of Eaton Vance and a wholly-owned subsidiary of Morgan Stanley, which, along with Eaton Vance, is part of the Morgan Stanley Investment Management division (“MSIM”), relating to the Fund (the “MSIM Sub-advisory Agreement”). In voting its approval of the MSIM Sub-advisory Agreement at the Meeting, the Board relied on an order issued by the Securities and Exchange Commission in response to the impacts of the COVID-19 pandemic that provided temporary relief from the in-person meeting requirements under Section 15 of the 1940 Act.

As of the date of the Meeting, BMO Global Asset Management (Asia) Limited (“BMO GAM (Asia)”) served as the investment sub-adviser to the Fund pursuant to an investment sub-advisory agreement between the Adviser and BMO GAM (Asia) (the “BMO Sub-advisory Agreement”). In April 2021, the Board became aware that the parent company of BMO GAM (Asia), BMO Financial Group (“BMO”), had entered into a definitive agreement to sell a portion of BMO’s asset management business, which included the sale of BMO GAM (Asia) (the “BMO Transaction”). Among other things, the closing of the BMO Transaction would result in a change of control of BMO GAM (Asia) and an automatic termination of the BMO Sub-advisory Agreement.

In light of the foregoing, Eaton Vance conducted an evaluation of qualified sub-advisers with specific expertise of investing in the Asia region, and particularly in equity markets in “Greater China” (China, Hong Kong and Taiwan). The Board considered the methodology, which included a specified set of criteria and other relevant factors, and process used by Eaton Vance to narrow its review between MSIM Co. and BMO GAM (Asia), which ultimately led Eaton Vance to its recommendation. In this regard, the action taken by the Board to hire MSIM Co. as the sub-adviser for the Fund was in response to an affirmative recommendation by Eaton Vance, which had concluded that the approval of the MSIM Sub-advisory Agreement would be consistent with the interests of the Fund and its shareholders.

In voting to approve the MSIM Sub-advisory Agreement, the Board relied upon the affirmative recommendation of its Contract Review Committee, which is a committee comprised exclusively of Independent Trustees. The Contract Review Committee established a working group specifically for the purpose of evaluating Eaton Vance’s recommendation for the Board to approve the MSIM Sub-advisory Agreement, which included requesting additional information from Eaton Vance and MSIM Co. relevant to the Contract Review Committee’s consideration of the MSIM Sub-advisory Agreement. Leading up to the Meeting, the Contract Review Committee and/or its working group held a series of meetings to review and evaluate information provided by Eaton Vance and MSIM Co. relating to the MSIM Sub-advisory Agreement, including information regarding the due diligence conducted by Eaton Vance.

Prior to voting its approval of the MSIM Sub-advisory Agreement, the Board reviewed information furnished for the Meeting, as well as information previously furnished throughout the year at the meetings of the Board and its committees. In this connection, the Board considered information previously evaluated by the Board and the Contract Review Committee in determining to approve a new investment advisory agreement between the Fund and the Adviser during a series of meetings held in the fourth quarter of 2020 with respect to a change in control transaction related to the Eaton Vance Funds (the “MS Transaction Meetings”). During the MS Transaction Meetings, the Board was provided information about MSIM, including information about its overall business, related businesses, financial condition, reputation, risk management functions, experience, and worldwide presence, amongst other such in-depth information. The Board also considered information provided in connection with the annual contract review process with respect to the Eaton Vance Funds, noting that the most recent contract review process had culminated at the April 2021 Board meeting (the “2021 Annual Contract Review Process”). In this regard, the Board considered information it had already received regarding MSIM and its affiliates during the MS Transaction Meetings and the Fund and the Adviser and its affiliates during the 2021 Annual Contract Review Process when evaluating and considering the MSIM Sub-advisory Agreement.

The information that the Board considered included, among other things, the following:

Information about Fees and Expenses

 

   

The advisory and related fees payable by the Fund and the anticipated total expense ratio of the Fund;

 

   

Information comparing the advisory and related fees to be payable by the Fund with fees paid by comparable funds, as identified by an independent data provider (“comparable funds”);

 

   

Information concerning the sub-advisory fees to be payable by the Adviser to MSIM Co.;

 

   

Information comparing the expected total expense ratio and its components to comparable funds;

 

  23  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Board of Trustees’ Contract Approval — continued

 

 

Information about Portfolio Management and Trading

 

   

Descriptions of the investment management services provided by the Adviser and MSIM Co., including the investment strategies and processes each employs;

 

   

The procedures and processes used to determine the fair value of fund assets and actions taken to monitor and test the effectiveness of such procedures and processes;

 

   

Information about policies, practices and strategies with respect to trading, including processes for monitoring best execution of portfolio transactions;

Information about MSIM Co.

 

   

Information regarding the financial condition, ownership structure and resources of the Adviser and MSIM Co.;

 

   

Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities will include portfolio management and investment research for the Fund, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts;

 

   

Performance data of the individual investment professionals referenced above;

 

   

The Code of Ethics of MSIM Co., together with information relating to compliance with and the administration of such codes;

 

   

Information concerning the resources devoted to compliance efforts undertaken by MSIM Co. (including descriptions of various compliance programs) and their records of compliance;

 

   

Information concerning the business continuity and disaster recovery plans of MSIM Co.; and

Other Relevant Information

 

   

The terms of the MSIM Sub-advisory Agreement.

Results of the Contract Review Process

Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the approval of the MSIM Sub-advisory Agreement, including its fee structure, is in the interests of the shareholders and, therefore, recommended to the Board approval of the MSIM Sub-advisory Agreement. Based on the recommendation of the Contract Review Committee, the Board, including a majority of the Independent Trustees, voted to approve the MSIM Sub-advisory Agreement.

Nature, Extent and Quality of Services

In considering whether to approve the MSIM Sub-advisory Agreement, the Board evaluated the nature, extent and quality of the services to be provided by MSIM Co. under the MSIM Sub-advisory Agreement.

The Board considered MSIM Co.’s management capabilities and investment processes in light of the investment strategies of the Fund, including the education, experience and number of investment professionals and other personnel who will provide portfolio management, investment research, and similar services under the MSIM Sub-advisory Agreement. The Board considered the international investment capabilities of MSIM Co., which is based in Singapore, and the benefits to the Fund of having portfolio management services involving investments in international equities provided by investment professionals located in Asia. The Board considered the resources available to MSIM Co. in fulfilling its duties under the MSIM Sub-advisory Agreement and the abilities and track record of the investment professionals in implementing investment strategies similar to those of the Fund. The Board also took into account the resources dedicated to portfolio management and other services, the compensation methods of MSIM Co. and other factors, including the reputation and resources of MSIM Co. to recruit and retain highly qualified research, advisory and supervisory investment professionals. In addition, the Board considered the infrastructure, operational capabilities and support staff in place to assist in the portfolio management and operations of the Fund. The Board considered the methodology used by Eaton Vance in evaluating and assessing additional sub-advisers. The Board also considered information provided by BMO GAM (Asia) in response to requests from the Adviser. The Board considered that Eaton Vance’s ability to supervise the activities and performance of an affiliated sub-adviser, such as MSIM Co., due to greater (i) access to the investment professionals, including those responsible for executing Fund trades, who would be involved in the management of the Fund, (ii) knowledge of the risk monitoring performed and (iii) knowledge of the compliance program pursuant to which the investment team operates. The Board considered that MSIM Co. does not anticipate changes to the Fund’s investment strategies, but that there would be costs associated with repositioning the Fund’s portfolio composition to align it with MSIM Co.’s portfolio management style.

The Board considered the compliance program of MSIM Co. and relevant affiliates thereof, and information from the Adviser regarding the adequacy and effectiveness of MSIM Co.’s compliance program.

After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services to be provided by MSIM Co., taken as a whole, will be appropriate and consistent with the terms of the MSIM Sub-advisory Agreement.

 

  24  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Board of Trustees’ Contract Approval — continued

 

 

Fund Performance

In considering the MSIM Sub-advisory Agreement, the Board considered information regarding the performance of MSIM Co. in managing strategies similar to that employed by the Fund. Particularly, the Board considered the performance of MSIM Co. and the individuals proposed to manage the Fund. The Board noted that such performance compared favorably with the performance of the Fund and relevant benchmark indices during all relevant time periods. The Board also considered the expertise of the China Equity team at MSIM Co., including with respect to the proposed portfolio managers for the Fund. In this regard, the Board specifically noted the extensive experience and solid prior performance record of the China Equity team, including with respect to prior performance of certain investment professionals prior to joining MSIM Co.

On the basis of the foregoing and other relevant information provided by Eaton Vance and MSIM Co., the Board concluded that the Adviser and MSIM Co. can be expected to bring appropriate resources to bear in pursuing satisfactory performance for the Fund under the MSIM Sub-advisory Agreement.

Management Fees and Expenses

The Board considered contractual fee rates payable by the Fund for advisory and administrative services (referred to collectively as “management fees”). As part of its review, the Board considered the Fund’s management fees and total expense ratio, as compared to those of comparable funds, before and after giving effect to any undertaking to waive fees or reimburse expenses. The Board also considered that, effective with the implementation of the MSIM Sub-advisory Agreement, the Adviser had contractually agreed to reduce the advisory fee payable to it by 25 basis points at current asset levels and noted that this reduction cannot be terminated without the approval of a majority of the holders of interests in the Fund. The Board also considered that, under the MSIM Sub-advisory Agreement, the Adviser will pay MSIM Co. a fee that is lower than the fee previously paid under the BMO Sub-advisory Agreement at current asset levels. The Board also considered that Eaton Vance Distributors, Inc., the principal underwriter of the Fund and an affiliate of Eaton Vance, had contractually agreed to reduce its Rule 12b-1 fees on Class A shares by 5 basis points and noted that such fee rate could not be increased without the approval of a majority of the holders of interests in Class A shares of the Fund. Furthermore, the Board also considered the fact that the Adviser committed to waive fees or reimburse expenses of the Fund in an agreed upon amount, such arrangements to be effective through at least December 31, 2022. The Board noted that all of the fee reductions had been negotiated with the Adviser as part of the Board’s evaluation of the MSIM Sub-advisory Agreement, taking into account, among other factors, the costs associated with the repositioning of the Fund’s portfolio composition in connection with MSIM Co.’s portfolio management style.

After considering the foregoing information, and in light of the nature, extent and quality of the services to be provided by the Adviser and MSIM Co., the Board concluded that the management fees to be charged for advisory and related services are reasonable.

Profitability and “Fall-Out” Benefits

The Board considered the level of profits expected to be realized by the Adviser and relevant affiliates thereof in providing investment advisory and administrative services to the Fund. The Board considered the level of profits realized without regard to marketing support or other payments by the Adviser and its affiliates to third parties in respect of distribution or other services.

The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services to be rendered, the profits expected to be realized by the Adviser and its affiliates are deemed not to be excessive.

The Board also considered direct or indirect fall-out benefits expected to be received by the Adviser and its affiliates, including MSIM Co., in connection with their respective relationships with the Fund, including the benefits of research services that may be available to the Adviser or MSIM Co. as a result of securities transactions effected for the Fund and other investment advisory clients.

Economies of Scale

The Board also considered the extent to which the Adviser and its affiliates, on the one hand, and the Fund, on the other hand, can expect to realize benefits from economics of scale as the assets of the Fund increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from economies of scale, if any, with respect to the management of any specific fund or group of funds. Based upon the foregoing, the Board concluded that the Fund currently shares in the benefits from economies of scale, if any, when they are realized by the Adviser. The Board also concluded that the structure of the advisory fee, which includes breakpoints at several asset levels, including revised breakpoints based on the aforementioned fee reduction, will allow the Fund to continue to benefit from any economies of scale in the future.

 

  25  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Liquidity Risk Management Program

 

 

The Fund has implemented a written liquidity risk management program (Program) and related procedures to manage its liquidity in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (Liquidity Rule). The Liquidity Rule defines “liquidity risk” as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of the remaining investors’ interests in the fund. The Fund’s Board of Trustees/Directors has designated the investment adviser to serve as the administrator of the Program and the related procedures. The administrator has established a Liquidity Risk Management Oversight Committee (Committee) to perform the functions necessary to administer the Program. As part of the Program, the administrator is responsible for identifying illiquid investments and categorizing the relative liquidity of the Fund’s investments in accordance with the Liquidity Rule. Under the Program, the administrator assesses, manages, and periodically reviews the Fund’s liquidity risk, and is responsible for making certain reports to the Fund’s Board of Trustees/Directors and the Securities and Exchange Commission (SEC) regarding the liquidity of the Fund’s investments, and to notify the Board of Trustees/Directors and the SEC of certain liquidity events specified in the Liquidity Rule. The liquidity of the Fund’s portfolio investments is determined based on a number of factors including, but not limited to, relevant market, trading and investment-specific considerations under the Program.

At a meeting of the Fund’s Board of Trustees/Directors on June 8, 2021, the Committee provided a written report to the Fund’s Board of Trustees/Directors pertaining to the operation, adequacy, and effectiveness of implementation of the Program, as well as the operation of the highly liquid investment minimum (if applicable) for the period January 1, 2020 through December 31, 2020 (Review Period). The Program operated effectively during the Review Period, supporting the administrator’s ability to assess, manage and monitor Fund liquidity risk, including during periods of market volatility and net redemptions. During the Review Period, the Fund met redemption requests on a timely basis.

There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.

 

  26  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Management and Organization

 

 

Fund Management.  The Trustees of Eaton Vance Growth Trust (the Trust) are responsible for the overall management and supervision of the Trust’s affairs. The Trustees and officers of the Trust are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Trustees and officers of the Trust hold indefinite terms of office. The “Noninterested Trustees” consist of those Trustees who are not “interested persons” of the Trust, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, “EVC” refers to Eaton Vance Corp., “EV” refers to EV LLC, “EVM” refers to Eaton Vance Management, “BMR” refers to Boston Management and Research and “EVD” refers to Eaton Vance Distributors, Inc. EV is the trustee of each of EVM and BMR. Effective March 1, 2021, each of EVM, BMR, EVD and EV are indirect, wholly owned subsidiaries of Morgan Stanley. Each officer affiliated with EVM may hold a position with other EVM affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 138 portfolios (with the exception of Messrs. Faust and Wennerholm and Ms. Frost who oversee 137 portfolios) in the Eaton Vance Complex (including all master and feeder funds in a master feeder structure). Each officer serves as an officer of certain other Eaton Vance funds. Each Trustee and officer serves until his or her successor is elected.

 

Name and Year of Birth    Trust
Position(s)
    

Trustee

Since(1)

    

Principal Occupation(s) and Other Directorships

During Past Five Years and Other Relevant Experience

Interested Trustee

Thomas E. Faust Jr.

1958

   Trustee      2007     

Chairman of Morgan Stanley Investment Management, Inc. (MSIM), member of the Board of Managers and President of EV, Chief Executive Officer of EVM and BMR, and Director of EVD. Formerly, Chairman, Chief Executive Officer and President of EVC. Trustee and/or officer of 137 registered investment companies. Mr. Faust is an interested person because of his positions with MSIM, BMR, EVM, EVD, and EV, which are affiliates of the Trust, and his former position with EVC, which was an affiliate of the Trust prior to March 1, 2021.

Other Directorships in the Last Five Years. Formerly, Director of EVC (2007-2021) and Hexavest Inc. (investment management firm) (2012-2021).

Noninterested Trustees

Mark R. Fetting

1954

   Trustee      2016     

Private investor. Formerly held various positions at Legg Mason, Inc. (investment management firm) (2000-2012), including President, Chief Executive Officer, Director and Chairman (2008-2012), Senior Executive Vice President (2004-2008) and Executive Vice President (2001-2004). Formerly, President of Legg Mason family of funds (2001-2008). Formerly, Division President and Senior Officer of Prudential Financial Group, Inc. and related companies (investment management firm) (1991-2000).

Other Directorships in the Last Five Years. None.

Cynthia E. Frost

1961

   Trustee      2014     

Private investor. Formerly, Chief Investment Officer of Brown University (university endowment) (2000-2012). Formerly, Portfolio Strategist for Duke Management Company (university endowment manager) (1995-2000). Formerly, Managing Director, Cambridge Associates (investment consulting company) (1989-1995). Formerly, Consultant, Bain and Company (management consulting firm) (1987-1989). Formerly, Senior Equity Analyst, BA Investment Management Company (1983-1985).

Other Directorships in the Last Five Years. None.

George J. Gorman

1952

   Chairperson of the Board and Trustee      2021 (Chairperson) and 2014 (Trustee)     

Principal at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting firm) (1974-2009).

Other Directorships in the Last Five Years. None.

Valerie A. Mosley

1960

   Trustee      2014     

Chairwoman and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Founder of Upward Wealth, Inc., dba BrightUP, a fintech platform. Formerly, Partner and Senior Vice President, Portfolio Manager and Investment Strategist at Wellington Management Company, LLP (investment management firm) (1992-2012). Formerly, Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990).

Other Directorships in the Last Five Years. Director of DraftKings, Inc. (digital sports entertainment and gaming company) (since September 2020). Director of Groupon, Inc. (e-commerce provider) (since April 2020). Director of Envestnet, Inc. (provider of intelligent systems for wealth management and financial wellness) (since 2018). Formerly, Director of Dynex Capital, Inc. (mortgage REIT) (2013-2020).

 

  27  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Management and Organization — continued

 

 

Name and Year of Birth    Trust
Position(s)
    

Trustee

Since(1)

    

Principal Occupation(s) and Other Directorships

During Past Five Years and Other Relevant Experience

Noninterested Trustees (continued)

William H. Park

1947

   Trustee      2003     

Private investor. Formerly, Consultant (management and transactional) (2012-2014). Formerly, Chief Financial Officer, Aveon Group L.P. (investment management firm) (2010-2011). Formerly, Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005). Formerly, Executive Vice President and Chief Financial Officer, United Asset Management Corporation (investment management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now PricewaterhouseCoopers) (a registered public accounting firm) (1972-1981).

Other Directorships in the Last Five Years. None.

Helen Frame Peters

1948

   Trustee      2008     

Professor of Finance, Carroll School of Management, Boston College. Formerly, Dean, Carroll School of Management, Boston College (2000-2002). Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income, Colonial Management Associates (investment management firm) (1991-1998).

Other Directorships in the Last Five Years. None.

Keith Quinton

1958

   Trustee      2018     

Private investor, researcher and lecturer. Formerly, Independent Investment Committee Member at New Hampshire Retirement System (2017-2021). Formerly, Portfolio Manager and Senior Quantitative Analyst at Fidelity Investments (investment management firm) (2001-2014).

Other Directorships in the Last Five Years. Formerly, Director (2016-2021) and Chairman (2019-2021) of New Hampshire Municipal Bond Bank.

Marcus L. Smith

1966

   Trustee      2018     

Private investor. Formerly, Portfolio Manager at MFS Investment Management (investment management firm) (1994-2017).

Other Directorships in the Last Five Years. Director of First Industrial Realty Trust, Inc. (an industrial REIT) (since 2021). Director of MSCI Inc. (global provider of investment decision support tools) (since 2017). Formerly, Director of DCT Industrial Trust Inc. (logistics real estate company) (2017-2018).

Susan J. Sutherland

1957

   Trustee      2015     

Private investor. Director of Ascot Group Limited and certain of its subsidiaries (insurance and reinsurance) (since 2017). Formerly, Director of Hagerty Holding Corp. (insurance) (2015-2018) and Montpelier Re Holdings Ltd. (insurance and reinsurance) (2013-2015). Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013).

Other Directorships in the Last Five Years. Director of Kairos Acquisition Corp. (insurance/InsurTech acquisition company) (since 2021).

Scott E. Wennerholm

1959

   Trustee      2016     

Private investor. Formerly, Trustee at Wheelock College (postsecondary institution) (2012-2018). Formerly, Consultant at GF Parish Group (executive recruiting firm) (2016-2017). Formerly, Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm) (2005-2011). Formerly, Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm) (1997-2004). Formerly, Vice President at Fidelity Investments Institutional Services (investment management firm) (1994-1997).

Other Directorships in the Last Five Years. None.

 

Name and Year of Birth    Trust
Position(s)
     Officer
Since
(2)
    

Principal Occupation(s)

During Past Five Years

Principal Officers who are not Trustees

Eric A. Stein

1980

   President      2020      Vice President and Chief Investment Officer, Fixed Income of EVM and BMR. Prior to November 1, 2020, Mr. Stein was a co-Director of Eaton Vance’s Global Income Investments. Also Vice President of Calvert Research and Management (“CRM”).

Deidre E. Walsh

1971

   Vice President and Chief Legal Officer      2009      Vice President of EVM and BMR. Also Vice President of CRM.

James F. Kirchner

1967

   Treasurer      2007      Vice President of EVM and BMR. Also Vice President of CRM.

 

  28  


Eaton Vance

Greater China Growth Fund

August 31, 2021

 

Management and Organization — continued

 

 

Name and Year of Birth    Trust
Position(s)
     Officer
Since
(2)
    

Principal Occupation(s)

During Past Five Years

Principal Officers who are not Trustees (continued)

Kimberly M. Roessiger

1985

   Secretary      2021      Vice President of EVM and BMR.

Richard F. Froio

1968

   Chief Compliance Officer      2017      Vice President of EVM and BMR since 2017. Formerly, Deputy Chief Compliance Officer (Adviser/Funds) and Chief Compliance Officer (Distribution) at PIMCO (2012-2017) and Managing Director at BlackRock/Barclays Global Investors (2009-2012).

 

(1) 

Year first appointed to serve as Trustee for a fund in the Eaton Vance family of funds. Each Trustee has served continuously since appointment unless indicated otherwise.

(2) 

Year first elected to serve as officer of a fund in the Eaton Vance family of funds when the officer has served continuously. Otherwise, year of most recent election as an officer of a fund in the Eaton Vance family of funds. Titles may have changed since initial election.

The SAI for the Fund includes additional information about the Trustees and officers of the Fund and can be obtained without charge on Eaton Vance’s website at www.eatonvance.com or by calling 1-800-262-1122.

 

  29  


Eaton Vance Funds

 

Privacy Notice    April 2021

 

 

FACTS    WHAT DOES EATON VANCE DO WITH YOUR
PERSONAL INFORMATION?
      
  
Why?    Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
   
      
What?   

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

 

   Social Security number and income

   investment experience and risk tolerance

   checking account number and wire transfer instructions

   
      
How?    All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing.
   
      

 

Reasons we can share your
personal information
   Does Eaton Vance share?    Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus    Yes    No
For our marketing purposes — to offer our products and services to you    Yes    No
For joint marketing with other financial companies    No    We don’t share
For our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness    Yes    Yes
For our affiliates’ everyday business purposes — information about your transactions and experiences    Yes    No
For our affiliates’ everyday business purposes — information about your creditworthiness    No    We don’t share
For our investment management affiliates to market to you    Yes    Yes
For our affiliates to market to you    No    We don’t share
For nonaffiliates to market to you    No    We don’t share

 

To limit our sharing   

Call toll-free 1-800-262-1122 or email: [email protected]

 

Please note:

 

If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.

   
      
   
Questions?    Call toll-free 1-800-262-1122 or email: [email protected]
   
      

 

  30  


Eaton Vance Funds

 

Privacy Notice — continued    April 2021

 

 

Page 2     

 

Who we are
Who is providing this notice?   Eaton Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below)
What we do
How does Eaton Vance protect my personal information?   To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does Eaton Vance collect my personal information?  

We collect your personal information, for example, when you

 

   open an account or make deposits or withdrawals from your account

   buy securities from us or make a wire transfer

   give us your contact information

 

We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Why can’t I limit all sharing?  

Federal law gives you the right to limit only

 

   sharing for affiliates’ everyday business purposes — information about your creditworthiness

   affiliates from using your information to market to you

   sharing for nonaffiliates to market to you

 

State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Definitions
Investment Management Affiliates   Eaton Vance Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates  

Companies related by common ownership or control. They can be financial and nonfinancial companies.

 

   Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.

Nonaffiliates  

Companies not related by common ownership or control. They can be financial and nonfinancial companies.

 

   Eaton Vance does not share with nonaffiliates so they can market to you.

Joint marketing  

A formal agreement between nonaffiliated financial companies that together market financial products or services to you.

 

   Eaton Vance doesn’t jointly market.

Other important information

Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information.

 

California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

 

  31  


Eaton Vance Funds

 

IMPORTANT NOTICES

 

 

Delivery of Shareholder Documents.  The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial intermediary, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial intermediary. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by Eaton Vance or your financial intermediary.

Portfolio Holdings.  Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) files a schedule of portfolio holdings on Part F to Form N-PORT with the SEC. Certain information filed on Form N-PORT may be viewed on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov.

Proxy Voting.  From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.

 

  32  


Investment Adviser

Boston Management and Research

Two International Place

Boston, MA 02110

Investment Sub-Adviser

BMO Global Asset Management (Asia) Limited

Suite 3808, One Exchange Square

Central, Hong Kong

Administrator

Eaton Vance Management

Two International Place

Boston, MA 02110

Principal Underwriter*

Eaton Vance Distributors, Inc.

Two International Place

Boston, MA 02110

(617) 482-8260

Custodian

State Street Bank and Trust Company

State Street Financial Center, One Lincoln Street

Boston, MA 02111

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Attn: Eaton Vance Funds

P.O. Box 9653

Providence, RI 02940-9653

(800) 262-1122

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

200 Berkeley Street

Boston, MA 02116-5022

Fund Offices

Two International Place

Boston, MA 02110

 
*

FINRA BrokerCheck.  Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to investors at www.FINRA.org.


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406    8.31.21


LOGO

 

 

Eaton Vance

Richard Bernstein All Asset Strategy Fund

Annual Report

August 31, 2021

 

 

 

LOGO


 

 

Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (“CFTC”) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The investment adviser has claimed an exclusion from the definition of “commodity pool operator” under the Commodity Exchange Act with respect to its management of the Fund. Accordingly, neither the Fund nor the adviser with respect to the operation of the Fund is subject to CFTC regulation. Because of its management of other strategies, the Fund’s adviser is registered with the CFTC as a commodity pool operator. The adviser is also registered as a commodity trading advisor.

Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.

This report must be preceded or accompanied by a current summary prospectus or prospectus. Before investing, investors should consider carefully the investment objective, risks, and charges and expenses of a mutual fund. This and other important information is contained in the summary prospectus and prospectus, which can be obtained from a financial intermediary. Prospective investors should read the prospectus carefully before investing. For further information, please call 1-800-262-1122.


Annual Report August 31, 2021

Eaton Vance

Richard Bernstein All Asset Strategy Fund

 

Table of Contents

  

Management’s Discussion of Fund Performance

     2  

Performance

     4  

Fund Profile

     5  

Endnotes and Additional Disclosures

     6  

Fund Expenses

     7  

Financial Statements

     8  

Report of Independent Registered Public Accounting Firm

     29  

Federal Tax Information

     30  

Liquidity Risk Management Program

     31  

Management and Organization

     32  

Privacy Notice

     35  

Important Notices

     37  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Management’s Discussion of Fund Performance1

 

 

Economic and Market Conditions

The 12-month period starting September 1, 2020, was notable for a widespread equity rally that began in November 2020, paused in January 2021, and then continued almost unabated through the end of the period. Broad-market stock indexes posted strong double-digit returns as investors cheered the re-opening of businesses that had been closed or hobbled by COVID-19 the previous spring, along with the rollout of several highly effective vaccines.

The news was not all good, however, as the path of the virus continued to have a firm grip on the global economy. Disease rates advanced and declined as a third and fourth wave of COVID-19 infections coursed through nations across the globe. COVID-19 concerns were largely responsible for equity market downturns in September and October 2020. For the rest of the period, COVID-19 worries sparked several steep, but brief, market retreats.

Worker shortages related to COVID-19 led to global supply chain issues throughout the period. From computer chips to shipping containers, scarcities of key items led to temporary factory shutdowns, empty store shelves, and car dealers short of vehicles to sell. In the U.S. in particular, shortages — combined with high demand from consumers itching to spend the money they had saved by sheltering at home early in the pandemic — led to higher year-over-year inflation than the economy had seen in years. While U.S. Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen expressed the view that inflation in 2021 would likely be transitory, inflation became a key concern for investors during the period.

In China, the world’s second-largest economy, the Communist Party’s efforts to dial back capitalism and take more control of China’s surging technology sector were not applauded by global investors. While global equity indexes generally reported positive returns during the closing months of the period, the MSCI Golden Dragon Index, a measure of Chinese large-cap and mid-cap stocks, declined 8.84% in the final three months of the period.

For the 12-month period, the MSCI World Index, a broad measure of global equities, returned 29.76%; while the S&P 500® Index, a broad measure of U.S. stocks, returned 31.17%; and the technology-laden Nasdaq Composite Index rose 30.49%. The MSCI EAFE Index of developed-market international equities returned 26.12%, while the MSCI Emerging Markets Index returned 21.12% in U.S. dollars.

Unlike earlier in the pandemic, performance of U.S. fixed-income securities during the period did not parallel equity market returns. As investors became more confident in an economic recovery and turned away from safe-haven assets, U.S. Treasurys declined in price and turned in negative performance for the period. Corporate bonds, however, benefited from the recovery as investors’ appetite for risk appeared to increase as the economy re-opened. The strongest beneficiaries of rising investor optimism were corporate high yield bonds: the asset class posted double-digit returns as investors searched for yield in an ongoing low-interest-rate environment.

For the period, fixed-income benchmarks appeared to reflect investors’ increasing willingness to take on risk. The Bloomberg U.S. Aggregate Bond Index, a broad measure of the U.S. bond market, returned -0.08% as its Treasury component weighed on performance. The Bloomberg U.S. Treasury Index returned -2.11% for the period, while the Bloomberg U.S. Corporate Bond Index returned 2.53%, the Bloomberg U.S. Corporate High Yield Index returned 10.14%, and the Bloomberg Municipal Bond Index rose 3.40%.

Fund Performance

For the 12-month period ended August 31, 2021, Eaton Vance Richard Bernstein All Asset Strategy Fund (the Fund) returned 10.23% for Class A shares at net asset value (NAV), underperforming its blended benchmark consisting of 60% of the Bloomberg U.S. Aggregate Bond Index and 40% of the MSCI ACWI Index (the Blended Index), which returned 10.81%.

The Fund uses a macro-driven, top-down asset allocation approach that emphasizes and de-emphasizes various market segments and asset classes in seeking potentially overlooked investment opportunities worldwide.

An underweight exposure, relative to the Blended Index, to emerging market nations other than China during the final four months of 2020 hurt Fund performance versus the Blended Index, as many emerging market economies recovered from the pandemic-induced downturn earlier in the year.

Within the Fund’s U.S. allocation, large-cap stock selections in the financials, information technology, consumer discretionary, industrials, and materials sectors also detracted from Fund performance versus the Blended Index during the period. In the materials sector, stock selections in the chemicals industry weighed on relative performance.

In the Fund’s fixed-income allocation, an overweight position in long-term U.S. Treasurys dragged on relative performance, as Treasurys were one of the weakest-performing asset classes during a period marked by a strong global equity rally. In the fall of 2020, the Fund had shifted much of its interest rate exposure to U.S. Treasurys to provide potential downside protection in the event the global economic recovery faltered.

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to eatonvance.com.

 

  2  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Management’s Discussion of Fund Performance — continued

 

 

In a period when the overall direction of equity and fixed-income markets was up, the Fund’s cash allocation also detracted from returns versus the Index, particularly from September 2020 through January 2021. Management maintained a modest cash position to help mitigate the effect of potential market downturns and to help fund shareholder redemptions.

In contrast, the Fund’s overweight allocation to equities and underweight position in fixed-income securities contributed to performance versus the Blended Index during a period when equity markets generally outperformed fixed-income markets. The Fund’s equity allocation was modestly increased during the period.

The Fund’s fixed-income allocation was repositioned in the fall of 2020 to overweight positions in corporate bonds, to potentially benefit from their higher income levels and possible spread tightening during an economic recovery. The Fund’s out-of-Index holding in the ProShares Investment Grade-Interest Rate Hedged ETF contributed to relative returns as interest rates rose modestly during the period, causing U.S. Treasury prices to fall. An overweight position in short maturity high yield corporate bonds — represented by an out-of-Index holding in the PIMCO 0-5 Year High Yield Corporate Bond Index ETF — also helped relative performance as high yield bonds generally outperformed investment-grade issues during the period.

In the Fund’s equity allocation, an overweight position in U.S. small-cap value stocks, particularly shares of regional banks, contributed to Fund performance versus the Index. During the period, regional banks in general traded at lower and — in Fund management’s view — more attractive prices relative to their earnings than many other industries.

The Fund’s overweight exposure to Chinese equities in the closing months of 2020 — achieved primarily by owning shares of the iShares MSCI China ETF — also contributed to relative returns. Beginning in January 2021, the Fund began shifting some of its China allocation into other emerging markets, primarily Brazil, that management felt offered more opportunity. The resulting underweight position in China and overweight position in Brazil in 2021 helped relative performance as well.

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to eatonvance.com.

 

  3  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Performance2,3

 

Portfolio Managers Richard Bernstein, Matthew Griswold, CFA, Henry Timmons, CFA and Dan Suzuki, CFA, each of Richard Bernstein Advisors LLC

 

% Average Annual Total Returns    Class
Inception Date
    

Performance

Inception Date

     One Year      Five Years      Since
Inception
 

Class A at NAV

     09/30/2011        09/30/2011        10.23      7.01      6.88

Class A with 5.75% Maximum Sales Charge

                   3.91        5.74        6.25  

Class C at NAV

     09/30/2011        09/30/2011        9.34        6.20        6.08  

Class C with 1% Maximum Sales Charge

                   8.34        6.20        6.08  

Class I at NAV

     09/30/2011        09/30/2011        10.47        7.26        7.14  

 

Bloomberg U.S. Aggregate Bond Index

                   –0.08      3.11      3.13

MSCI ACWI Index

                   28.64        14.29        12.48  

Blended Index

                   10.81        7.73        7.02  
% Total Annual Operating Expense Ratios4                    Class A      Class C      Class I  
           1.36      2.11      1.11

Growth of $10,000

 

This graph shows the change in value of a hypothetical investment of $10,000 in Class A of the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.

 

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Growth of Investment      Amount Invested        Period Beginning        At NAV        With Maximum Sales Charge  

Class C

       $10,000          09/30/2011          $17,957          N.A.  

Class I

       $250,000          09/30/2011          $495,875          N.A.  

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to eatonvance.com.

 

  4  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Fund Profile

 

 

Country Allocation (% of net assets)5

 

 

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Asset Allocation (% of net assets)5

 

 

LOGO

Top 10 Holdings (% of net assets)6

 

 

ProShares Investment Grade-Interest Rate Hedged ETF

     14.5

VanEck Vectors Emerging Markets High Yield Bond ETF

     8.9  

First Trust Low Duration Opportunities ETF

     4.8  

PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund

     4.3  

WisdomTree Floating Rate Treasury Fund

     3.7  

iShares MSCI Taiwan ETF

     1.7  

Apple, Inc.

     1.6  

iShares MSCI South Korea ETF

     1.4  

Microsoft Corp.

     1.3  

U.S. Treasury Note, 2.375%, 5/15/29

     1.3  

Total

     43.5
 

 

See Endnotes and Additional Disclosures in this report.

 

  5  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Endnotes and Additional Disclosures

 

1 

The views expressed in this report are those of the 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 and the Fund(s) disclaim 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.

 

2 

Bloomberg U.S. Aggregate Bond Index is an unmanaged index of domestic investment-grade bonds, including corporate, government and mortgage-backed securities. MSCI ACWI Index is an unmanaged free-float-adjusted, market-capitalization-weighted index designed to measure the equity market performance of developed and emerging markets. MSCI indexes are net of foreign withholding taxes. Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides no warranties, has not prepared or approved this report, and has no liability hereunder. The Blended Index consists of 60% Bloomberg U.S. Aggregate Bond Index and 40% MSCI ACWI Index, rebalanced monthly. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index.

 

3 

Total Returns at NAV do not include applicable sales charges. If sales charges were deducted, the returns would be lower. Total Returns shown with maximum sales charge reflect the stated maximum sales charge. Unless otherwise stated, performance does not reflect the deduction of taxes on Fund distributions or redemptions of Fund shares. Performance since inception for an index, if presented, is the performance since the Fund’s or oldest share class’ inception, as applicable.

 

4 

Source: Fund prospectus. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report.

 

5 

The Fund may obtain exposure to certain market segments through investments in exchange-traded funds (ETFs). For purposes of the charts, the Fund’s investments in ETFs are included based on the portfolio composition of each ETF.

 

6 

Excludes cash and cash equivalents.

Fund profile subject to change due to active management.

Additional Information

MSCI Golden Dragon Index is an unmanaged index of common stocks traded in China, Hong Kong and Taiwan. MSCI World Index is an unmanaged index of equity securities in the developed markets. MSCI EAFE Index is an unmanaged index of equities in the developed markets, excluding the U.S. and Canada. MSCI Emerging Markets Index is an unmanaged index of emerging markets common stocks. S&P 500® Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance. S&P Dow Jones Indices are a product of S&P Dow Jones Indices LLC (“S&P DJI”) and have been licensed for use. S&P® and S&P 500® are registered trademarks of S&P DJI; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P DJI, Dow Jones and their respective affiliates do not sponsor, endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices. Nasdaq Composite Index is a market capitalization-weighted index of all domestic and international securities listed on Nasdaq. Source: Nasdaq, Inc. The information is provided by Nasdaq (with its affiliates, are referred to as the “Corporations”) and Nasdaq’s third party licensors on an “as is” basis and the Corporations make no guarantees and bear no liability of any kind with respect to the information or the Fund. Bloomberg U.S. Treasury Index measures the performance of U.S. Treasuries with a maturity of one year or more. Bloomberg U.S. Corporate Bond Index measures the performance of investment-grade U.S. corporate securities with a maturity of one year or more. Bloomberg U.S. Corporate High Yield Index measures USD-denominated, non-investment grade corporate securities. Bloomberg Municipal Bond Index is an unmanaged index of municipal bonds traded in the U.S.

Important Notice to Shareholders

Effective May 1, 2021, the portfolio managers of the Fund are Richard Bernstein, Matthew Griswold, Henry Timmons and Dan Suzuki.

Effective August 24, 2021, the Bloomberg Barclays fixed income indices were rebranded as Bloomberg indices.

 

 

  6  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Fund Expenses

 

 

Example:  As a Fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of Fund investing and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2021 – August 31, 2021).

Actual Expenses:  The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes:  The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual Fund return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees (if applicable). Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.

 

     Beginning
Account Value
(3/1/21)
     Ending
Account Value
(8/31/21)
     Expenses Paid
During Period*
(3/1/21 – 8/31/21)
     Annualized
Expense
Ratio
 

Actual

          

Class A

  $ 1,000.00      $ 1,058.80      $ 6.12        1.18

Class C

  $ 1,000.00      $ 1,054.70      $ 10.00        1.93

Class I

  $ 1,000.00      $ 1,059.80      $ 4.83        0.93
         

Hypothetical

          

(5% return per year before expenses)

          

Class A

  $ 1,000.00      $ 1,019.30      $ 6.01        1.18

Class C

  $ 1,000.00      $ 1,015.50      $ 9.80        1.93

Class I

  $ 1,000.00      $ 1,020.50      $ 4.74        0.93

 

*

Expenses are equal to the Fund’s annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on February 28, 2021.

 

  7  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Portfolio of Investments

 

 

Common Stocks — 48.5%

 

Security   Shares     Value  
Aerospace & Defense — 0.3%  

Boeing Co. (The)(1)

    4,142     $ 909,169  

Northrop Grumman Corp.

    4,065       1,494,700  
            $ 2,403,869  
Air Freight & Logistics — 0.9%  

C.H. Robinson Worldwide, Inc.

    7,524     $ 677,611  

DSV Panalpina A/S

    4,672       1,190,060  

Expeditors International of Washington, Inc.

    10,334       1,288,030  

FedEx Corp.

    3,330       884,748  

Hub Group, Inc., Class A(1)

    16,497       1,158,089  

United Parcel Service, Inc., Class B

    12,230       2,392,555  
            $ 7,591,093  
Airlines — 0.2%  

Alaska Air Group, Inc.(1)

    18,946     $ 1,086,364  

Southwest Airlines Co.(1)

    21,432       1,066,885  
            $ 2,153,249  
Auto Components — 0.1%  

Tupy S.A.(1)

    194,100     $ 836,340  
            $ 836,340  
Automobiles — 0.5%  

Tesla, Inc.(1)

    4,285     $ 3,152,560  

Volkswagen AG, PFC Shares

    4,383       1,042,517  
            $ 4,195,077  
Banks — 6.5%  

BancorpSouth Bank

    26,105     $ 765,660  

Bank of America Corp.

    69,341       2,894,987  

Bank of Nova Scotia (The)

    24,667       1,527,940  

Banner Corp.

    15,318       876,190  

BNP Paribas S.A.

    21,426       1,357,334  

Canadian Western Bank

    43,009       1,260,629  

Cathay General Bancorp

    27,358       1,088,301  

Citigroup, Inc.

    21,814       1,568,645  

Commonwealth Bank of Australia

    24,061       1,753,135  

Community Bank System, Inc.

    11,408       844,192  

CVB Financial Corp.

    36,966       752,628  

First BanCorp/Puerto Rico

    111,299       1,416,836  

First Financial Bancorp

    38,790       911,953  

First Interstate BancSystem, Inc., Class A

    18,470       813,788  

First Merchants Corp.

    36,360       1,496,214  
Security   Shares     Value  
Banks (continued)  

First Midwest Bancorp, Inc.

    43,549     $ 815,673  

Fulton Financial Corp.

    53,873       853,887  

Glacier Bancorp, Inc.

    15,712       836,821  

Grupo Elektra SAB de CV

    20,591       1,642,953  

Hancock Whitney Corp.

    20,340       934,826  

Heartland Financial USA, Inc.

    17,157       806,894  

Home BancShares, Inc.

    36,236       802,627  

Independent Bank Group, Inc.

    11,676       822,341  

International Bancshares Corp.

    36,672       1,535,823  

JPMorgan Chase & Co.

    19,284       3,084,476  

National Australia Bank, Ltd.

    66,204       1,334,748  

NBT Bancorp, Inc.

    23,892       856,767  

Old National Bancorp

    45,817       763,311  

Pacific Premier Bancorp, Inc.

    21,960       877,522  

Park National Corp.

    6,922       811,535  

PNC Financial Services Group, Inc. (The)

    4,805       918,236  

Renasant Corp.

    30,657       1,076,061  

Royal Bank of Canada

    21,216       2,179,363  

Sandy Spring Bancorp, Inc.

    22,124       963,943  

Seacoast Banking Corporation of Florida

    23,638       754,998  

Simmons First National Corp., Class A

    29,675       862,059  

Sumitomo Mitsui Financial Group, Inc.

    19,000       655,798  

Toronto-Dominion Bank (The)

    28,181       1,830,039  

Towne Bank/Portsmouth VA

    32,572       992,469  

Truist Financial Corp.

    22,496       1,283,622  

Trustmark Corp.

    47,374       1,497,966  

U.S. Bancorp

    13,983       802,484  

UMB Financial Corp.

    10,589       969,741  

United Bankshares, Inc.

    22,055       801,258  

Valley National Bancorp

    78,406       1,022,414  

Wells Fargo & Co.

    39,777       1,817,809  

WesBanco, Inc.

    41,795       1,421,030  

Westpac Banking Corp.

    70,202       1,320,748  
            $ 57,278,674  
Beverages — 0.4%  

Coca-Cola Co. (The)

    31,206     $ 1,757,210  

PepsiCo, Inc.

    10,052       1,572,032  
            $ 3,329,242  
Biotechnology — 0.5%  

Amgen, Inc.

    5,732     $ 1,292,738  

Biogen, Inc.(1)

    3,379       1,145,177  

CSL, Ltd.

    6,121       1,392,177  

Gilead Sciences, Inc.

    8,927       649,707  
            $ 4,479,799  
 

 

  8   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Security   Shares     Value  
Building Products — 0.3%  

Daikin Industries, Ltd.

    3,700     $ 923,322  

Kingspan Group PLC

    8,400       959,239  

Simpson Manufacturing Co., Inc.

    7,506       849,304  
            $ 2,731,865  
Capital Markets — 1.3%  

Bank of New York Mellon Corp. (The)

    20,065     $ 1,107,989  

BlackRock, Inc.

    2,251       2,123,346  

Charles Schwab Corp. (The)

    12,627       919,877  

CME Group, Inc.

    2,642       532,944  

FactSet Research Systems, Inc.

    2,663       1,012,526  

Hong Kong Exchanges & Clearing, Ltd.

    22,600       1,427,734  

Intercontinental Exchange, Inc.

    8,735       1,044,095  

Partners Group Holding AG

    553       980,471  

S&P Global, Inc.

    3,909       1,734,892  

Sprott, Inc.

    27,449       923,125  
            $ 11,806,999  
Chemicals — 3.0%  

Air Liquide S.A.

    11,839     $ 2,122,050  

Air Products and Chemicals, Inc.

    1,947       524,736  

Air Water, Inc.(2)

    55,500       894,193  

Akzo Nobel NV

    11,053       1,362,164  

Arkema S.A.

    8,131       1,080,650  

Asahi Kasei Corp.

    94,700       976,364  

BASF SE

    12,457       963,664  

Eastman Chemical Co.

    12,240       1,385,078  

Ecolab, Inc.

    10,654       2,400,986  

Ems-Chemie Holding AG

    1,596       1,729,349  

Givaudan S.A.

    392       1,966,655  

Linde PLC

    10,485       3,298,476  

Novozymes A/S, Class B

    14,356       1,160,497  

PPG Industries, Inc.

    8,831       1,408,986  

Sherwin-Williams Co. (The)

    3,111       944,717  

Shin-Etsu Chemical Co., Ltd.

    8,500       1,403,927  

Sika AG

    4,982       1,795,046  

Symrise AG

    8,408       1,196,542  
            $ 26,614,080  
Commercial Services & Supplies — 0.1%  

Brink’s Co. (The)

    9,542     $ 745,802  

Securitas AB, Class B

    26,897       447,437  
            $ 1,193,239  
Security   Shares     Value  
Communications Equipment — 0.2%  

Cisco Systems, Inc.

    23,755     $ 1,402,020  
            $ 1,402,020  
Construction & Engineering — 0.2%  

Eiffage S.A.

    4,734     $ 492,567  

Kandenko Co., Ltd.

    116,300       999,255  
            $ 1,491,822  
Construction Materials — 0.1%  

CRH PLC

    21,574     $ 1,142,903  
            $ 1,142,903  
Consumer Finance — 0.6%  

Aeon Financial Service Co., Ltd.(2)

    49,200     $ 579,082  

American Express Co.

    8,303       1,377,966  

Navient Corp.

    87,165       2,023,099  

PRA Group, Inc.(1)

    23,062       968,604  
            $ 4,948,751  
Containers & Packaging — 0.7%  

Ball Corp.

    15,656     $ 1,502,350  

Huhtamaki Oyj

    19,077       1,019,178  

SIG Combibloc Group AG

    37,618       1,151,591  

Sonoco Products Co.

    32,942       2,151,112  
            $ 5,824,231  
Diversified Consumer Services — 0.1%  

InvoCare, Ltd.(2)

    103,588     $ 926,810  
            $ 926,810  
Diversified Financial Services — 0.3%  

Berkshire Hathaway, Inc., Class B(1)

    8,462     $ 2,418,186  
            $ 2,418,186  
Diversified Telecommunication Services — 0.4%  

AT&T, Inc.

    42,841     $ 1,174,700  

Elisa Oyj

    8,337       534,324  

Liberty Latin America, Ltd., Class C(1)

    75,595       1,087,812  

Verizon Communications, Inc.

    10,781       592,955  
            $ 3,389,791  
Electric Utilities — 0.9%  

Cia Energetica de Minas Gerais, PFC Shares

    600,000     $ 1,567,649  

CPFL Energia S.A.

    338,000       1,898,260  
 

 

  9   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Security   Shares     Value  
Electric Utilities (continued)  

EDP-Energias do Brasil S.A.

    464,700     $ 1,657,204  

Enel SpA

    103,066       938,976  

Iberdrola S.A.

    80,354       995,704  

Red Electrica Corp. S.A.

    28,050       559,416  
            $ 7,617,209  
Electrical Equipment — 0.3%  

AMETEK, Inc.

    6,028     $ 819,627  

Eaton Corp. PLC

    5,895       992,482  

Emerson Electric Co.

    9,012       950,766  
            $ 2,762,875  
Electronic Equipment, Instruments & Components — 0.4%  

Amphenol Corp., Class A

    12,392     $ 949,599  

Canon Marketing Japan, Inc.

    24,600       560,902  

Hexagon AB, Class B

    57,694       1,000,453  

Sanmina Corp.(1)

    27,934       1,102,834  
            $ 3,613,788  
Energy Equipment & Services — 0.6%  

Halliburton Co.

    76,310     $ 1,524,674  

Schlumberger NV

    36,806       1,032,040  

Technip Energies NV ADR(1)

    25,832       333,749  

TechnipFMC PLC(1)

    129,159       856,324  

Tenaris S.A.

    167,499       1,685,928  
            $ 5,432,715  
Entertainment — 0.1%  

Activision Blizzard, Inc.

    7,889     $ 649,817  
            $ 649,817  
Equity Real Estate Investment Trusts (REITs) — 0.1%  

Fibra Uno Administracion S.A. de CV

    1,096,990     $ 1,236,599  
            $ 1,236,599  
Food & Staples Retailing — 0.6%  

Costco Wholesale Corp.

    2,995     $ 1,364,193  

Loblaw Cos., Ltd.

    18,837       1,327,168  

Performance Food Group Co.(1)

    19,981       1,003,446  

Tsuruha Holdings, Inc.

    4,700       590,115  

Walmart, Inc.

    6,925       1,025,592  
            $ 5,310,514  
Security   Shares     Value  
Food Products — 1.1%  

AAK AB

    65,737     $ 1,572,692  

Darling Ingredients, Inc.(1)

    21,328       1,588,936  

J&J Snack Foods Corp.

    9,092       1,488,906  

Nestle S.A.

    16,445       2,076,818  

Nisshin Seifun Group, Inc.

    42,500       697,889  

Saputo, Inc.

    23,295       655,285  

Simply Good Foods Co. (The)(1)

    36,899       1,314,342  
            $ 9,394,868  
Health Care Equipment & Supplies — 0.8%  

Abbott Laboratories

    14,240     $ 1,799,509  

Becton, Dickinson and Co.

    2,823       710,549  

Danaher Corp.

    3,285       1,064,866  

DENTSPLY SIRONA, Inc.

    7,813       482,062  

Edwards Lifesciences Corp.(1)

    6,975       817,330  

Intuitive Surgical, Inc.(1)

    1,267       1,334,861  

Medtronic PLC

    8,998       1,201,053  
            $ 7,410,230  
Health Care Providers & Services — 0.8%  

Cigna Corp.

    3,969     $ 840,039  

CVS Health Corp.

    10,400       898,456  

Henry Schein, Inc.(1)

    10,993       830,961  

Humana, Inc.

    1,365       553,398  

Quest Diagnostics, Inc.

    5,101       779,586  

Ryman Healthcare, Ltd.(2)

    72,431       790,985  

UnitedHealth Group, Inc.

    4,546       1,892,363  
            $ 6,585,788  
Hotels, Restaurants & Leisure — 0.4%  

Flutter Entertainment PLC(1)

    3,869     $ 752,154  

J D Wetherspoon PLC(1)

    54,501       833,508  

La Francaise des Jeux SAEM(3)

    20,657       1,068,984  

McDonald’s Corp.

    3,770       895,224  
            $ 3,549,870  
Household Durables — 0.7%  

Construtora Tenda S.A.

    202,100     $ 789,514  

Cyrela Brazil Realty S.A. Empreendimentos e Participacoes

    199,400       779,738  

D.R. Horton, Inc.

    12,370       1,182,820  

Direcional Engenharia S.A.

    342,700       841,705  

Even Construtora e Incorporadora S.A.

    372,000       602,158  

JM AB

    38,235       1,481,256  
            $ 5,677,191  
 

 

  10   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Security   Shares     Value  
Household Products — 0.4%  

Henkel AG & Co. KGaA

    15,069     $ 1,356,283  

Kimberly-Clark Corp.

    4,432       610,774  

Procter & Gamble Co. (The)

    7,596       1,081,594  

Reckitt Benckiser Group PLC

    10,759       821,355  
            $ 3,870,006  
Independent Power and Renewable Electricity Producers — 0.3%  

AES Brasil Energia S.A.

    281,100     $ 827,404  

Engie Brasil Energia S.A.

    241,500       1,753,757  
            $ 2,581,161  
Industrial Conglomerates — 0.6%  

3M Co.

    5,247     $ 1,021,801  

General Electric Co.

    8,726       919,807  

Nolato AB, Class B

    119,600       1,383,159  

Siemens AG

    5,562       922,707  

Smiths Group PLC

    32,780       650,584  
            $ 4,898,058  
Insurance — 2.0%  

Aflac, Inc.

    17,242     $ 977,276  

AIA Group, Ltd.

    140,600       1,678,866  

Allianz SE

    9,130       2,143,375  

Aon PLC, Class A

    7,732       2,218,001  

Arthur J. Gallagher & Co.

    6,437       924,482  

AXA S.A.

    19,916       559,510  

Dai-ichi Life Holdings, Inc.

    38,000       751,916  

Markel Corp.(1)

    483       613,531  

Marsh & McLennan Cos., Inc.

    12,079       1,898,819  

Muenchener Rueckversicherungs-Gesellschaft AG

    1,789       522,153  

NN Group NV

    17,829       924,839  

Progressive Corp. (The)

    11,632       1,120,627  

Swiss Life Holding AG

    2,805       1,462,047  

Tokio Marine Holdings, Inc.

    10,300       503,972  

Zurich Insurance Group AG

    3,337       1,464,246  
            $ 17,763,660  
Interactive Media & Services — 1.9%  

Alphabet, Inc., Class A(1)

    1,800     $ 5,209,110  

Alphabet, Inc., Class C(1)

    1,852       5,387,913  

Facebook, Inc., Class A(1)

    14,272       5,414,511  

Tencent Holdings, Ltd.

    14,100       870,855  
            $ 16,882,389  
Security   Shares     Value  
Internet & Direct Marketing Retail — 1.0%  

Amazon.com, Inc.(1)

    2,403     $ 8,340,308  

Americanas S.A.(1)

    40,698       325,534  

Lojas Americanas S.A.

    226,100       254,487  
            $ 8,920,329  
IT Services — 1.6%  

Amdocs, Ltd.

    8,111     $ 624,790  

Atos SE

    5,537       287,877  

Automatic Data Processing, Inc.

    9,732       2,034,377  

Broadridge Financial Solutions, Inc.

    4,673       804,784  

Cognizant Technology Solutions Corp., Class A

    9,586       731,508  

Fidelity National Information Services, Inc.

    6,569       839,321  

Fiserv, Inc.(1)

    4,882       575,051  

Mastercard, Inc., Class A

    2,446       846,879  

Nexi SpA(1)(3)

    39,711       827,753  

Otsuka Corp.

    11,400       590,142  

Shopify, Inc., Class A(1)

    1,247       1,904,219  

Sopra Steria Group SACA

    4,293       874,492  

TIS, Inc.

    27,100       765,022  

Visa, Inc., Class A

    11,259       2,579,437  
            $ 14,285,652  
Life Sciences Tools & Services — 0.5%  

Illumina, Inc.(1)

    1,779     $ 813,288  

Mettler-Toledo International, Inc.(1)

    638       990,705  

PerkinElmer, Inc.

    5,108       943,958  

Thermo Fisher Scientific, Inc.

    3,188       1,769,181  
            $ 4,517,132  
Machinery — 0.8%  

Indutrade AB

    42,915     $ 1,418,390  

Interroll Holding AG

    388       1,724,369  

Mueller Industries, Inc.

    26,569       1,185,243  

Mueller Water Products, Inc., Class A

    75,063       1,247,547  

PACCAR, Inc.

    8,381       686,152  

Traton SE

    20,857       615,750  
            $ 6,877,451  
Media — 0.1%  

Fuji Media Holdings, Inc.

    48,400     $ 504,520  
            $ 504,520  
Metals & Mining — 0.6%  

Acerinox S.A.

    89,695     $ 1,222,451  

Boliden AB

    25,829       901,775  
 

 

  11   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Security   Shares     Value  
Metals & Mining (continued)  

Gerdau S.A., PFC Shares

    186,200     $ 1,019,801  

Metalurgica Gerdau S.A., PFC Shares

    451,500       1,129,012  

Vale S.A.

    61,000       1,164,129  
            $ 5,437,168  
Multi-Utilities — 0.3%  

National Grid PLC

    75,542     $ 977,077  

NorthWestern Corp.

    19,750       1,256,100  
            $ 2,233,177  
Multiline Retail — 0.4%  

Big Lots, Inc.

    18,119     $ 881,671  

Dollar General Corp.

    2,807       625,708  

Dollarama, Inc.

    16,364       746,182  

Magazine Luiza S.A.

    169,000       596,148  

Pan Pacific International Holdings Corp.

    25,800       490,802  
            $ 3,340,511  
Oil, Gas & Consumable Fuels — 2.6%  

Chevron Corp.

    18,107     $ 1,752,214  

ConocoPhillips

    31,867       1,769,575  

Eni SpA

    79,500       980,838  

EOG Resources, Inc.

    13,646       921,378  

Exxon Mobil Corp.

    46,508       2,535,616  

Galp Energia SGPS S.A., Class B

    115,777       1,184,273  

Hess Corp.

    27,154       1,866,838  

ONEOK, Inc.

    17,847       937,324  

Petroleo Brasileiro S.A.

    320,200       1,728,936  

Pioneer Natural Resources Co.

    9,794       1,465,868  

Repsol S.A.

    121,410       1,393,199  

Royal Dutch Shell PLC, Class A

    63,873       1,265,927  

Suncor Energy, Inc.(2)

    67,351       1,257,710  

TC Energy Corp.

    22,945       1,089,372  

TotalEnergies SE

    18,222       806,007  

Valero Energy Corp.

    10,843       718,999  

World Fuel Services Corp.

    39,169       1,267,509  
            $ 22,941,583  
Paper & Forest Products — 0.1%  

Mondi PLC

    40,460     $ 1,116,086  
            $ 1,116,086  
Personal Products — 0.4%  

Beiersdorf AG

    8,756     $ 1,062,664  

Edgewell Personal Care Co.

    24,778       1,048,110  
Security   Shares     Value  
Personal Products (continued)  

Kose Corp.(2)

    5,400     $ 651,691  

Unilever PLC

    17,493       974,008  
            $ 3,736,473  
Pharmaceuticals — 1.7%  

Bayer AG

    6,498     $ 361,489  

Bristol-Myers Squibb Co.

    8,348       558,147  

Eli Lilly & Co.

    5,860       1,513,580  

Johnson & Johnson

    15,548       2,691,825  

Merck & Co., Inc.

    8,604       656,399  

Novo Nordisk A/S, Class B

    29,536       2,956,846  

Organon & Co.

    860       29,145  

Pfizer, Inc.

    52,564       2,421,624  

Roche Holding AG PC

    6,578       2,641,428  

Sanofi

    11,110       1,151,425  
            $ 14,981,908  
Professional Services — 0.4%  

AFRY AB

    19,925     $ 669,302  

Korn Ferry

    23,371       1,652,096  

Teleperformance

    3,190       1,411,210  
            $ 3,732,608  
Real Estate Management & Development — 0.2%  

BR Malls Participacoes S.A.(1)

    488,200     $ 852,566  

Nexity S.A.

    21,705       1,120,877  
            $ 1,973,443  
Road & Rail — 1.6%  

Central Japan Railway Co.

    2,900     $ 424,472  

CSX Corp.

    90,894       2,956,782  

J.B. Hunt Transport Services, Inc.

    14,121       2,505,065  

Norfolk Southern Corp.

    8,340       2,114,524  

Old Dominion Freight Line, Inc.

    4,771       1,377,483  

Rumo S.A.(1)

    290,400       1,051,344  

Union Pacific Corp.

    10,956       2,375,699  

Werner Enterprises, Inc.

    19,166       903,869  
            $ 13,709,238  
Semiconductors & Semiconductor Equipment — 0.9%  

Applied Materials, Inc.

    9,778     $ 1,321,301  

ASML Holding NV

    1,735       1,446,968  

Intel Corp.

    28,347       1,532,439  

NVIDIA Corp.

    13,516       3,025,557  
 

 

  12   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

QUALCOMM, Inc.

    6,460     $ 947,617  
            $ 8,273,882  
Software — 2.1%  

Adobe, Inc.(1)

    1,526     $ 1,012,806  

ANSYS, Inc.(1)

    1,943       709,894  

Constellation Software, Inc.

    516       874,495  

Hilan, Ltd.

    18,349       1,037,250  

Microsoft Corp.

    39,237       11,844,866  

Oracle Corp.

    13,008       1,159,403  

Tyler Technologies, Inc.(1)

    2,255       1,095,253  

VMware, Inc., Class A(1)

    3,756       559,156  
            $ 18,293,123  
Specialty Retail — 0.6%  

Advance Auto Parts, Inc.

    4,683     $ 949,946  

Bilia AB, Class A(2)

    44,656       897,288  

Home Depot, Inc. (The)

    3,993       1,302,437  

Industria de Diseno Textil S.A.

    17,060       582,794  

Petrobras Distribuidora S.A.

    304,100       1,599,071  
            $ 5,331,536  
Technology Hardware, Storage & Peripherals — 1.7%  

Apple, Inc.

    95,036     $ 14,429,316  

Samsung Electronics Co., Ltd. GDR

    394       643,297  
            $ 15,072,613  
Textiles, Apparel & Luxury Goods — 0.3%  

Alpargatas S.A., PFC Shares(1)

    98,600     $ 1,143,545  

NIKE, Inc., Class B

    6,191       1,019,905  

Swatch Group AG (The)

    2,653       748,554  
            $ 2,912,004  
Thrifts & Mortgage Finance — 0.7%  

Capitol Federal Financial, Inc.

    106,044     $ 1,223,748  

Equitable Group, Inc.

    14,329       1,739,832  

Washington Federal, Inc.

    48,486       1,614,584  

WSFS Financial Corp.

    26,287       1,193,693  
            $ 5,771,857  
Tobacco — 0.1%  

Philip Morris International, Inc.

    11,064     $ 1,139,592  
            $ 1,139,592  
Security   Shares     Value  
Trading Companies & Distributors — 0.5%  

Brenntag SE

    10,953     $ 1,105,359  

Bunzl PLC

    17,838       646,330  

Fastenal Co.

    14,534       811,724  

Mitsui & Co., Ltd.

    91,100       2,009,263  
            $ 4,572,676  
Transportation Infrastructure — 0.2%  

EcoRodovias Infraestrutura e Logistica S.A.(1)

    500,100     $ 952,654  

Hamburger Hafen und Logistik AG

    40,880       901,194  
            $ 1,853,848  
Wireless Telecommunication Services — 0.4%  

America Movil SAB de CV, Series L

    2,235,840     $ 2,191,978  

SoftBank Group Corp.

    12,500       704,422  

T-Mobile US, Inc.(1)

    6,064       830,889  
            $ 3,727,289  

Total Common Stocks
(identified cost $291,010,721)

 

  $ 426,650,477  
Exchange-Traded Funds(4) — 41.4%

 

Security   Shares     Value  
Equity Funds — 4.2%  

iShares MSCI China ETF

    123,606     $ 8,750,069  

iShares MSCI South Korea ETF

    144,000       12,483,360  

iShares MSCI Taiwan ETF

    234,000       15,200,640  
            $ 36,434,069  
Fixed Income Funds — 37.2%  

First Trust Low Duration Opportunities ETF

    836,828     $ 42,469,021  

iShares 10+ Year Investment Grade Corporate Bond ETF

    116,000       8,265,000  

PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund(2)

    377,800       37,598,656  

ProShares Investment Grade-Interest Rate Hedged ETF

    1,690,000       127,628,800  

VanEck Vectors Emerging Markets High Yield Bond ETF

    3,295,000       78,190,350  

WisdomTree Floating Rate Treasury Fund

    1,306,000       32,780,600  
            $ 326,932,427  

Total Exchange-Traded Funds
(identified cost $357,635,936)

 

  $ 363,366,496  
 

 

  13   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

U.S. Treasury Obligations — 9.0%

 

Security   Principal
Amount
(000’s omitted)
    Value  
U.S. Treasury Bonds:            

1.125%, 5/15/40

  $ 2,189     $ 1,951,132  

1.125%, 8/15/40

    4,622       4,104,464  

3.875%, 8/15/40

    5,183       6,981,055  

4.375%, 11/15/39

    7,989       11,368,836  
            $ 24,405,487  

U.S. Treasury Notes:

   

0.625%, 5/15/30

  $ 6,786     $ 6,446,265  

1.50%, 2/15/30

    7,493       7,671,237  

2.375%, 5/15/29

    10,529       11,487,715  

2.625%, 2/15/29

    8,964       9,933,361  

2.875%, 5/15/28

    4,006       4,485,893  

2.875%, 8/15/28

    5,210       5,843,860  

3.125%, 11/15/28

    7,534       8,600,105  
            $ 54,468,436  

Total U.S. Treasury Obligations
(identified cost $82,805,819)

 

  $ 78,873,923  
Short-Term Investments — 3.0%

 

Affiliated Fund — 1.1%

 

Description   Units     Value  

Eaton Vance Cash Reserves Fund, LLC, 0.07%(5)

    9,749,850     $ 9,749,850  

Total Affiliated Fund
(identified cost $9,749,850)

 

  $ 9,749,850  
Securities Lending Collateral — 1.9%

 

Security   Shares     Value  

State Street Navigator Securities Lending Government Money Market Portfolio, 0.03%(6)

    16,790,693     $ 16,790,693  

Total Securities Lending Collateral
(identified cost $16,790,693)

 

  $ 16,790,693  

Total Short-Term Investments
(identified cost $26,540,543)

 

  $ 26,540,543  

Total Investments — 101.9%
(identified cost $757,993,019)

 

  $ 895,431,439  

Other Assets, Less Liabilities — (1.9)%

 

  $ (16,464,920

Net Assets — 100.0%

 

  $ 878,966,519  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

 

(1) 

Non-income producing security.

 

(2) 

All or a portion of this security was on loan at August 31, 2021. The aggregate market value of securities on loan at August 31, 2021 was $19,650,145.

 

(3) 

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At August 31, 2021, the aggregate value of these securities is $1,896,737 or 0.2% of the Fund’s net assets.

 

(4) 

The Fund is permitted to invest in certain Exchange-Traded Funds (ETFs) in excess of the limits set forth in the Investment Company Act of 1940, as amended, in reliance upon exemptive relief provided to the ETFs by the Securities and Exchange Commission and meeting certain conditions set forth in the exemptive orders.

 

(5) 

Affiliated investment company, available to Eaton Vance portfolios and funds, which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of August 31, 2021.

 

(6) 

Represents investment of cash collateral received in connection with securities lending.

 

Country Concentration of Portfolio

 

Country   Percentage
of Net Assets
    Value  

United States

    41.8   $ 367,740,196  

Brazil

    2.7       23,370,956  

Switzerland

    2.0       17,740,574  

Canada

    2.0       17,315,359  

Japan

    1.8       15,677,069  

France

    1.4       12,666,732  

Germany

    1.4       12,193,697  

United Kingdom

    1.1       10,173,748  

Sweden

    1.1       9,771,752  

Australia

    0.8       6,727,618  

Denmark

    0.6       5,307,403  

Mexico

    0.6       5,071,530  

Netherlands

    0.6       4,999,898  

Spain

    0.5       4,753,564  

Ireland

    0.4       3,846,778  

Hong Kong

    0.4       3,106,600  

Italy

    0.3       2,747,567  

Luxembourg

    0.2       1,685,928  

Finland

    0.2       1,553,502  

Portugal

    0.1       1,184,273  

Chile

    0.1       1,087,812  

Israel

    0.1       1,037,250  

China

    0.1       870,855  

New Zealand

    0.1       790,985  

South Korea

    0.1       643,297  

Exchange-Traded Funds

    41.4       363,366,496  

Total Investments

    101.9   $ 895,431,439  
 

 

  14   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Abbreviations:

 

ADR     American Depositary Receipt
GDR     Global Depositary Receipt
PC     Participation Certificate
PFC Shares     Preference Shares
 

 

  15   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Statement of Assets and Liabilities

 

 

Assets    August 31, 2021  

Unaffiliated investments, at value including $19,650,145 of securities on loan (identified cost, $748,243,169)

   $ 885,681,589  

Affiliated investment, at value (identified cost, $9,749,850)

     9,749,850  

Cash

     5,496  

Foreign currency, at value (identified cost, $35,779)

     35,715  

Dividends receivable

     572,778  

Interest receivable

     335,971  

Dividends receivable from affiliated investment

     616  

Receivable for Fund shares sold

     1,008,055  

Securities lending income receivable

     4,784  

Tax reclaims receivable

     266,101  

Total assets

   $ 897,660,955  
Liabilities         

Collateral for securities loaned

   $ 16,790,693  

Payable for Fund shares redeemed

     911,498  

Payable to affiliates:

  

Investment adviser and administration fee

     613,935  

Distribution and service fees

     105,950  

Accrued expenses

     272,360  

Total liabilities

   $ 18,694,436  

Net Assets

   $ 878,966,519  
Sources of Net Assets

 

Paid-in capital

   $ 717,898,369  

Distributable earnings

     161,068,150  

Total

   $ 878,966,519  
Class A Shares

 

Net Assets

   $ 118,418,551  

Shares Outstanding

     7,306,045  

Net Asset Value and Redemption Price Per Share

  

(net assets ÷ shares of beneficial interest outstanding)

   $ 16.21  

Maximum Offering Price Per Share

  

(100 ÷ 94.25 of net asset value per share)

   $ 17.20  
Class C Shares

 

Net Assets

   $ 95,492,940  

Shares Outstanding

     6,038,827  

Net Asset Value and Offering Price Per Share*

  

(net assets ÷ shares of beneficial interest outstanding)

   $ 15.81  
Class I Shares

 

Net Assets

   $ 665,055,028  

Shares Outstanding

     40,807,041  

Net Asset Value, Offering Price and Redemption Price Per Share

  

(net assets ÷ shares of beneficial interest outstanding)

   $ 16.30  

On sales of $50,000 or more, the offering price of Class A shares is reduced.

 

*

Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.

 

  16   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Statement of Operations

 

 

Investment Income   

Year Ended

August 31, 2021

 

Dividends (net of foreign taxes, $359,067)

   $ 15,011,042  

Interest

     1,096,503  

Dividends from affiliated investment

     27,122  

Securities lending income, net

     107,425  

Total investment income

   $ 16,242,092  
Expenses         

Investment adviser and administration fee

   $ 6,757,042  

Distribution and service fees

  

Class A

     270,744  

Class C

     972,684  

Trustees’ fees and expenses

     40,487  

Custodian fee

     225,749  

Transfer and dividend disbursing agent fees

     358,347  

Legal and accounting services

     60,090  

Printing and postage

     47,383  

Registration fees

     64,852  

Miscellaneous

     36,401  

Total expenses

   $ 8,833,779  

Net investment income

   $ 7,408,313  
Realized and Unrealized Gain (Loss)         

Net realized gain (loss) —

  

Investment transactions

   $ 22,681,320  

Investment transactions — affiliated investment

     490  

Foreign currency transactions

     (270,025

Net realized gain

   $ 22,411,785  

Change in unrealized appreciation (depreciation) —

  

Investments

   $ 50,413,488  

Investments — affiliated investment

     (485

Foreign currency

     (13,067

Net change in unrealized appreciation (depreciation)

   $ 50,399,936  

Net realized and unrealized gain

   $ 72,811,721  

Net increase in net assets from operations

   $ 80,220,034  

 

  17   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Statements of Changes in Net Assets

 

 

     Year Ended August 31,  
Increase (Decrease) in Net Assets    2021      2020  

From operations —

     

Net investment income

   $ 7,408,313      $ 4,738,314  

Net realized gain

     22,411,785        22,420,859  

Net change in unrealized appreciation (depreciation)

     50,399,936        40,821,808  

Net increase in net assets from operations

   $ 80,220,034      $ 67,980,981  

Distributions to shareholders —

     

Class A

   $ (2,975,278    $ (3,202,531

Class C

     (2,138,196      (4,129,164

Class I

     (17,709,119      (20,042,888

Total distributions to shareholders

   $ (22,822,593    $ (27,374,583

Transactions in shares of beneficial interest —

     

Proceeds from sale of shares

     

Class A

   $ 27,204,715      $ 32,264,614  

Class C

     15,427,834        19,027,947  

Class I

     180,319,034        192,018,296  

Net asset value of shares issued to shareholders in payment of distributions declared

     

Class A

     1,784,346        2,290,521  

Class C

     1,588,915        2,643,861  

Class I

     12,285,864        12,596,767  

Cost of shares redeemed

     

Class A

     (20,944,182      (19,598,825

Class C

     (24,218,772      (45,389,523

Class I

     (117,716,571      (155,773,403

Net asset value of shares converted

     

Class A

     4,971,474        1,800,943  

Class C

     (4,971,474      (1,800,943

Net increase in net assets from Fund share transactions

   $ 75,731,183      $ 40,080,255  

Net increase in net assets

   $ 133,128,624      $ 80,686,653  
Net Assets

 

At beginning of year

   $ 745,837,895      $ 665,151,242  

At end of year

   $ 878,966,519      $ 745,837,895  

 

  18   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Financial Highlights

 

 

     Class A  
     Year Ended August 31,  
      2021      2020      2019      2018     2017  

Net asset value — Beginning of year

   $ 15.140      $ 14.370      $ 15.110      $ 14.330     $ 13.060  
Income (Loss) From Operations                                            

Net investment income(1)

   $ 0.127      $ 0.097      $ 0.161      $ 0.157     $ 0.156  

Net realized and unrealized gain (loss)

     1.390        1.284        (0.542      0.934       1.176  

Total income (loss) from operations

   $ 1.517      $ 1.381      $ (0.381    $ 1.091     $ 1.332  
Less Distributions                                            

From net investment income

   $ (0.084    $ (0.191    $ (0.071    $ (0.154   $ (0.062

From net realized gain

     (0.363      (0.420      (0.288      (0.157      

Total distributions

   $ (0.447    $ (0.611    $ (0.359    $ (0.311   $ (0.062

Net asset value — End of year

   $ 16.210      $ 15.140      $ 14.370      $ 15.110     $ 14.330  

Total Return(2)

     10.23      9.93      (2.43 )%       7.67     10.24
Ratios/Supplemental Data                                            

Net assets, end of year (000’s omitted)

   $ 118,419      $ 97,873      $ 76,453      $ 87,728     $ 84,551  

Ratios (as a percentage of average daily net assets):

             

Expenses

     1.18      1.21      1.22      1.20     1.26

Net investment income

     0.82      0.68      1.14      1.05     1.15

Portfolio Turnover

     63      70      85      44     41

 

(1) 

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges.

 

  19   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Financial Highlights — continued

 

 

     Class C  
     Year Ended August 31,  
      2021      2020      2019      2018     2017  

Net asset value — Beginning of year

   $ 14.780      $ 14.030      $ 14.790      $ 14.030     $ 12.830  
Income (Loss) From Operations                                            

Net investment income (loss)(1)

   $ 0.008      $ (0.010    $ 0.054      $ 0.045     $ 0.053  

Net realized and unrealized gain (loss)

     1.351        1.258        (0.531      0.920       1.147  

Total income (loss) from operations

   $ 1.359      $ 1.248      $ (0.477    $ 0.965     $ 1.200  
Less Distributions                                            

From net investment income

   $      $ (0.078    $      $ (0.048   $  

From net realized gain

     (0.329      (0.420      (0.283      (0.157      

Total distributions

   $ (0.329    $ (0.498    $ (0.283    $ (0.205   $  

Net asset value — End of year

   $ 15.810      $ 14.780      $ 14.030      $ 14.790     $ 14.030  

Total Return(2)

     9.34      9.14      (3.16 )%       6.91     9.35
Ratios/Supplemental Data                                            

Net assets, end of year (000’s omitted)

   $ 95,493      $ 101,075      $ 121,049      $ 141,787     $ 124,228  

Ratios (as a percentage of average daily net assets):

             

Expenses

     1.93      1.96      1.97      1.95     2.01

Net investment income (loss)

     0.05      (0.07 )%       0.39      0.31     0.40

Portfolio Turnover

     63      70      85      44     41

 

(1) 

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges.

 

  20   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Financial Highlights — continued

 

 

     Class I  
     Year Ended August 31,  
      2021      2020      2019      2018     2017  

Net asset value — Beginning of year

   $ 15.220      $ 14.440      $ 15.190      $ 14.390     $ 13.130  
Income (Loss) From Operations                                            

Net investment income(1)

   $ 0.167      $ 0.133      $ 0.199      $ 0.196     $ 0.192  

Net realized and unrealized gain (loss)

     1.392        1.294        (0.552      0.952       1.164  

Total income (loss) from operations

   $ 1.559      $ 1.427      $ (0.353    $ 1.148     $ 1.356  
Less Distributions                                            

From net investment income

   $ (0.116    $ (0.227    $ (0.109    $ (0.191   $ (0.096

From net realized gain

     (0.363      (0.420      (0.288      (0.157      

Total distributions

   $ (0.479    $ (0.647    $ (0.397    $ (0.348   $ (0.096

Net asset value — End of year

   $ 16.300      $ 15.220      $ 14.440      $ 15.190     $ 14.390  

Total Return(2)

     10.47      10.24      (2.22 )%       8.04     10.40
Ratios/Supplemental Data                                            

Net assets, end of year (000’s omitted)

   $ 665,055      $ 546,890      $ 467,649      $ 563,130     $ 415,089  

Ratios (as a percentage of average daily net assets):

             

Expenses

     0.93      0.96      0.97      0.95     1.01

Net investment income

     1.06      0.92      1.40      1.32     1.40

Portfolio Turnover

     63      70      85      44     41

 

(1) 

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested.

 

  21   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Notes to Financial Statements

 

 

1  Significant Accounting Policies

Eaton Vance Richard Bernstein All Asset Strategy Fund (the Fund) is a diversified series of Eaton Vance Growth Trust (the Trust). The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. The Fund’s investment objective is total return. The Fund offers three classes of shares. Class A shares are generally sold subject to a sales charge imposed at time of purchase. Class C shares are sold at net asset value and are generally subject to a contingent deferred sales charge (see Note 5). Effective January 25, 2019, Class C shares generally automatically convert to Class A shares ten years after their purchase and, effective November 5, 2020, automatically convert to Class A shares eight years after their purchase as described in the Fund’s prospectus. Class I shares are sold at net asset value and are not subject to a sales charge. Each class represents a pro-rata interest in the Fund, but votes separately on class-specific matters and (as noted below) is subject to different expenses. Realized and unrealized gains and losses and net investment income and losses, other than class-specific expenses, are allocated daily to each class of shares based on the relative net assets of each class to the total net assets of the Fund. Each class of shares differs in its distribution plan and certain other class-specific expenses.

The following is a summary of significant accounting policies of the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946.

A  Investment Valuation — The following methodologies are used to determine the market value or fair value of investments.

Equity Securities. Equity securities (common stocks and exchange-traded funds) listed on a U.S. securities exchange generally are valued at the last sale or closing price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and ask prices on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ National Market System generally are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and ask prices.

Debt Obligations. Debt obligations are generally valued on the basis of valuations provided by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, interest rates, anticipated prepayments, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Short-term debt obligations purchased with a remaining maturity of sixty days or less for which a valuation from a third party pricing service is not readily available may be valued at amortized cost, which approximates fair value.

Foreign Securities and Currencies. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by a third party pricing service. The pricing service uses a proprietary model to determine the exchange rate. Inputs to the model include reported trades and implied bid/ask spreads. The daily valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. When valuing foreign equity securities that meet certain criteria, the Fund’s Trustees have approved the use of a fair value service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities.

Affiliated Fund. The Fund may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Eaton Vance Management (EVM). While Cash Reserves Fund is not a registered money market mutual fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the valuation day. Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service.

Other. Investments in registered investment companies (including money market funds) that do not trade on an exchange are valued at the net asset value per share on the valuation day.

Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Fund in a manner that most fairly reflects the security’s “fair value”, which is the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s or entity’s financial statements, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.

B  Investment Transactions — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.

C  Income — Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. Distributions from investment companies are

 

  22  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

recorded as dividend income, capital gains or return of capital based on the nature of the distribution. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Fund’s understanding of the applicable countries’ tax rules and rates. In consideration of recent decisions rendered by European courts, the Fund has filed additional tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Due to the uncertainty as to the ultimate resolution of these proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment, no amounts are reflected in the financial statements for such outstanding reclaims. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.

D  Federal Taxes — The Fund’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary.

As of August 31, 2021, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

E  Expenses — The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds. Expenses do not include the Fund’s pro rata share of the indirect expenses borne by the Fund from its investments in exchange-traded funds.

F  Foreign Currency Translation — Investment valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.

G  Use of Estimates — The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.

H  Indemnifications — Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Trust) could be deemed to have personal liability for the obligations of the Trust. However, the Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Trust shall assume, upon request by the shareholder, the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Fund enters into agreements with service providers that may contain indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.

2  Distributions to Shareholders and Income Tax Information

It is the present policy of the Fund to make at least one distribution annually (normally in December) of all or substantially all of its net investment income and to distribute annually all or substantially all of its net realized capital gains. Distributions to shareholders are recorded on the ex-dividend date. Distributions are declared separately for each class of shares. Shareholders may reinvest income and capital gain distributions in additional shares of the same class of the Fund at the net asset value as of the ex-dividend date or, at the election of the shareholder, receive distributions in cash. Distributions to shareholders are determined in accordance with income tax regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.

The tax character of distributions declared for the years ended August 31, 2021 and August 31, 2020 was as follows:

 

     Year Ended August 31,  
      2021      2020  

Ordinary income

   $ 6,319,926      $ 10,915,317  

Long-term capital gains

   $ 16,502,667      $ 16,459,266  

 

  23  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

During the year ended August 31, 2021, distributable earnings was decreased by $1,899,686 and paid-in capital was increased by $1,899,686 due to the Fund’s use of equalization accounting. Tax equalization accounting allows the Fund to treat as a distribution that portion of redemption proceeds representing a redeeming shareholder’s portion of undistributed taxable income and net capital gains. These reclassifications had no effect on the net assets or net asset value per share of the Fund.

As of August 31, 2021, the components of distributable earnings (accumulated loss) on a tax basis were as follows:

 

   

Undistributed ordinary income

   $ 4,852,982  

Undistributed long-term capital gains

     19,248,095  

Net unrealized appreciation

     136,967,073  

Distributable earnings

   $ 161,068,150  

The cost and unrealized appreciation (depreciation) of investments of the Fund at August 31, 2021, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

   $ 758,474,254  

Gross unrealized appreciation

   $ 147,667,613  

Gross unrealized depreciation

     (10,710,428

Net unrealized appreciation

   $ 136,957,185  

3  Investment Adviser and Administration Fee and Other Transactions with Affiliates

The investment adviser and administration fee is earned by EVM as compensation for investment advisory and administrative services rendered to the Fund. On March 1, 2021, Morgan Stanley acquired Eaton Vance Corp. (the “Transaction”) and EVM became an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, the Fund entered into a new investment advisory and administrative agreement (the “New Agreement”) with EVM, which took effect on March 1, 2021. The Fund’s prior fee reduction agreement was incorporated into the New Agreement. Pursuant to the New Agreement (and the Fund’s investment advisory and administrative agreement and related fee reduction agreement with EVM in effect prior to March 1, 2021), the fee is computed at an annual rate as a percentage of the Fund’s average daily net assets as follows and is payable monthly:

 

Average Daily Net Assets    Annual Fee Rate  

Up to $500 million

     0.850

$500 million but less than $1 billion

     0.800

$1 billion but less than $2.5 billion

     0.775

$2.5 billion but less than $5 billion

     0.750

$5 billion and over

     0.730

For the year ended August 31, 2021, the investment adviser and administration fee amounted to $6,757,042 or 0.83% of the Fund’s average daily net assets. Pursuant to an investment sub-advisory agreement, EVM has delegated the investment management of the Fund to Richard Bernstein Advisors LLC (RBA). In connection with the Transaction, EVM entered into a new investment sub-advisory agreement with RBA, which took effect on March 1, 2021. EVM pays RBA a portion of its investment adviser and administration fee for sub-advisory services provided to the Fund. The Fund may invest its cash in Cash Reserves Fund. EVM does not currently receive a fee for advisory services provided to Cash Reserves Fund.

EVM provides sub-transfer agency and related services to the Fund pursuant to a Sub-Transfer Agency Support Services Agreement. For the year ended August 31, 2021, EVM earned $6,909 from the Fund pursuant to such agreement, which is included in transfer and dividend disbursing agent fees on the Statement of Operations. The Fund was informed that Eaton Vance Distributors, Inc. (EVD), an affiliate of EVM and the Fund’s principal underwriter, received $13,770 as its portion of the sales charge on sales of Class A shares for the year ended August 31, 2021. EVD also received distribution and service fees from Class A and Class C shares (see Note 4) and contingent deferred sales charges (see Note 5).

 

  24  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

Trustees and officers of the Fund who are members of EVM’s organization receive remuneration for their services to the Fund out of the investment adviser and administration fee. Trustees of the Fund who are not affiliated with EVM may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended August 31, 2021, no significant amounts have been deferred. Certain officers and Trustees of the Fund are officers of EVM.

4  Distribution Plans

The Fund has in effect a distribution plan for Class A shares (Class A Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class A Plan, the Fund pays EVD a distribution and service fee of 0.25% per annum of its average daily net assets attributable to Class A shares for distribution services and facilities provided to the Fund by EVD, as well as for personal services and/or the maintenance of shareholder accounts. Distribution and service fees paid or accrued to EVD for the year ended August 31, 2021 amounted to $270,744 for Class A shares.

The Fund also has in effect a distribution plan for Class C shares (Class C Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class C Plan, the Fund pays EVD amounts equal to 0.75% per annum of its average daily net assets attributable to Class C shares for providing ongoing distribution services and facilities to the Fund. For the year ended August 31, 2021, the Fund paid or accrued to EVD $729,513 for Class C shares.

Pursuant to the Class C Plan, the Fund also makes payments of service fees to EVD, financial intermediaries and other persons in amounts equal to 0.25% per annum of its average daily net assets attributable to that class. Service fees paid or accrued are for personal services and/or the maintenance of shareholder accounts. They are separate and distinct from the sales commissions and distribution fees payable to EVD. Service fees paid or accrued for the year ended August 31, 2021 amounted to $243,171 for Class C shares.

Distribution and service fees are subject to the limitations contained in the Financial Industry Regulatory Authority Rule 2341(d).

5  Contingent Deferred Sales Charges

A contingent deferred sales charge (CDSC) of 1% generally is imposed on redemptions of Class C shares made within 12 months of purchase. Class A shares may be subject to a 1% CDSC if redeemed within 18 months of purchase (depending on the circumstances of purchase). Generally, the CDSC is based upon the lower of the net asset value at date of redemption or date of purchase. No charge is levied on shares acquired by reinvestment of dividends or capital gain distributions. For the year ended August 31, 2021, the Fund was informed that EVD received approximately $5,000 of CDSCs paid by Class C shareholders and no CDSCs paid by Class A shareholders.

6  Purchases and Sales of Investments

Purchases and sales of investments, other than short-term obligations, for the year ended August 31, 2021 were as follows:

 

      Purchases      Sales  

Investments (non-U.S. Government)

   $ 466,896,519      $ 348,487,329  

U.S. Government and Agency Securities

     121,448,020        145,070,497  
     $ 588,344,539      $ 493,557,826  

7  Shares of Beneficial Interest

The Fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Such shares may be issued in a number of different series (such as the Fund) and classes. Transactions in Fund shares were as follows:

 

     Year Ended August 31,  
Class A    2021      2020  

Sales

     1,757,239        2,224,775  

Issued to shareholders electing to receive payments of distributions in Fund shares

     117,856        162,795  

Redemptions

     (1,354,951      (1,369,666

Converted from Class C shares

     321,417        126,134  

Net increase

     841,561        1,144,038  

 

  25  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

     Year Ended August 31,  
Class C    2021      2020  

Sales

     1,017,811        1,369,490  

Issued to shareholders electing to receive payments of distributions in Fund shares

     106,998        191,584  

Redemptions

     (1,597,341      (3,220,026

Converted to Class A shares

     (329,144      (128,967

Net decrease

     (801,676      (1,787,919
     Year Ended August 31,  
Class I    2021      2020  

Sales

     11,618,284        13,591,031  

Issued to shareholders electing to receive payments of distributions in Fund shares

     808,813        892,755  

Redemptions

     (7,563,984      (10,928,776

Net increase

     4,863,113        3,555,010  

8  Line of Credit

The Fund participates with other portfolios and funds managed by EVM and its affiliates in an $800 million unsecured line of credit agreement with a group of banks, which is in effect through October 26, 2021. Borrowings are made by the Fund solely for temporary purposes related to redemptions and other short-term cash needs. Interest is charged to the Fund based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.15% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. In connection with the renewal of the agreement in October 2020, an upfront fee and arrangement fee totaling $950,000 was incurred that was allocated to the participating portfolios and funds. Because the line of credit is not available exclusively to the Fund, it may be unable to borrow some or all of its requested amounts at any particular time. The Fund did not have any significant borrowings or allocated fees during the year ended August 31, 2021.

9  Securities Lending Agreement

The Fund has established a securities lending agreement with State Street Bank and Trust Company (SSBT) as securities lending agent in which the Fund lends portfolio securities to qualified borrowers in exchange for collateral consisting of either cash or securities issued or guaranteed by the U.S. government or its agencies or instrumentalities in an amount at least equal to the market value of the securities on loan. The market value of securities loaned is determined daily and any additional required collateral is delivered to the Fund on the next business day. Cash collateral is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market fund registered under the 1940 Act. The Fund earns interest on the amount invested but it must pay (and at times receive from) the broker a loan rebate fee computed as a varying percentage of the collateral received. For security loans secured by non-cash collateral, the Fund earns a negotiated lending fee from the borrower. A portion of the income earned by the Fund from its investment of cash collateral, net of rebate fees, and lending fees received is allocated to SSBT for its services as lending agent and the portion allocated to the Fund is presented as securities lending income, net on the Statement of Operations. Non-cash collateral is held by the lending agent on behalf of the Fund and cannot be sold or re-pledged by the Fund; accordingly, such collateral is not reflected in the Statement of Assets and Liabilities.

The Fund is subject to possible delay in the recovery of loaned securities. Pursuant to the securities lending agreement, SSBT has provided indemnification to the Fund in the event of default by a borrower with respect to a loan. The Fund bears the risk of loss with respect to the investment of cash collateral.

At August 31, 2021, the value of the securities loaned and the value of the collateral received, which exceeded the value of the securities loaned, amounted to $19,650,145 and $20,295,663, respectively. Collateral received was comprised of cash of $16,790,693 and U.S. government and/or agencies securities of $3,504,970. The securities lending transactions have no contractual maturity date and each of the Fund and borrower has the option to terminate a loan at any time.

 

  26  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

The following table provides a breakdown of securities lending transactions accounted for as secured borrowings, the obligations by class of collateral pledged, and the remaining contractual maturity of those transactions as of August 31, 2021.

 

     Remaining Contractual Maturity of the Transactions  
      Overnight and
Continuous
     <30 days      30 to 90 days      >90 days      Total  

Common Stocks

   $ 1,904,668      $         —      $         —      $         —      $ 1,904,668  

Exchange-Traded Funds

     14,886,025                                   14,886,025  

Total

   $ 16,790,693      $         —      $         —      $         —      $ 16,790,693  

The carrying amount of the liability for collateral for securities loaned at August 31, 2021 approximated its fair value. If measured at fair value, such liability would have been considered as Level 2 in the fair value hierarchy (see Note 11) at August 31, 2021.

10  Investments in Affiliated Funds

At August 31, 2021, the value of the Fund’s investment in affiliated funds was $9,749,850, which represents 1.1% of the Fund’s net assets. Transactions in affiliated funds by the Fund for the year ended August 31, 2021 were as follows:

 

Name of affiliated fund   Value,
beginning
of period
    Purchases    

Sales

proceeds

    Net
realized
gain (loss)
    Change in
unrealized
appreciation
(depreciation)
    Value, end
of period
    Dividend
income
    Units, end
of period
 

Short-Term Investments

 

Eaton Vance Cash Reserves Fund, LLC

  $ 43,481,868     $ 138,149,931     $ (171,881,954   $ 490     $ (485   $ 9,749,850     $ 27,122       9,749,850  

11  Fair Value Measurements

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

 

Level 1 – quoted prices in active markets for identical investments

 

 

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

 

Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

  27  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

At August 31, 2021, the hierarchy of inputs used in valuing the Fund’s investments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Common Stocks

           

Communication Services

   $ 22,539,685      $ 2,614,121      $         —      $ 25,153,806  

Consumer Discretionary

     26,865,001        8,824,667               35,689,668  

Consumer Staples

     16,977,180        9,803,515               26,780,695  

Energy

     21,058,126        7,316,172               28,374,298  

Financials

     80,568,153        19,419,974               99,988,127  

Health Care

     28,680,507        9,294,350               37,974,857  

Industrials

     37,077,922        18,893,969               55,971,891  

Information Technology

     52,906,922        8,034,156               60,941,078  

Materials

     16,929,383        23,205,085               40,134,468  

Real Estate

     2,089,165        1,120,877               3,210,042  

Utilities

     8,960,374        3,471,173               12,431,547  

Total Common Stocks

   $ 314,652,418      $ 111,998,059    $      $ 426,650,477  

Exchange-Traded Funds

   $ 363,366,496      $      $      $ 363,366,496  

U.S. Treasury Obligations

            78,873,923               78,873,923  

Short-Term Investments —

           

Affiliated Fund

            9,749,850               9,749,850  

Securities Lending Collateral

     16,790,693                      16,790,693  

Total Investments

   $ 694,809,607      $ 200,621,832      $      $ 895,431,439  

 

*

Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets.

12  Risks and Uncertainties

Risks Associated with Foreign Investments

Foreign investments can be adversely affected by political, economic and market developments abroad, including the imposition of economic and other sanctions by the United States or another country. There may be less publicly available information about foreign issuers because they may not be subject to reporting practices, requirements or regulations comparable to those to which United States companies are subject. Foreign markets may be smaller,

less liquid and more volatile than the major markets in the United States. Trading in foreign markets typically involves higher expense than trading in the United States. The Fund may have difficulties enforcing its legal or contractual rights in a foreign country. Securities that trade or are denominated in currencies other than the U.S. dollar may be adversely affected by fluctuations in currency exchange rates.

Pandemic Risk

An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so in significant and unforeseen ways, as may other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Fund’s performance, or the performance of the securities in which the Fund invests.

 

  28  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Report of Independent Registered Public Accounting Firm

 

 

To the Trustees of Eaton Vance Growth Trust and Shareholders of Eaton Vance Richard Bernstein All Asset Strategy Fund:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of Eaton Vance Richard Bernstein All Asset Strategy Fund (the “Fund”) (one of the funds constituting Eaton Vance Growth Trust), including the portfolio of investments, as of August 31, 2021, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of August 31, 2021, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

October 19, 2021

We have served as the auditor of one or more Eaton Vance investment companies since 1959.

 

  29  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Federal Tax Information (Unaudited)

 

 

The Form 1099-DIV you receive in February 2022 will show the tax status of all distributions paid to your account in calendar year 2021. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Fund. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding the status of qualified dividend income for individuals, the dividends received deduction for corporations, capital gains dividends and 163(j) interest dividends.

Qualified Dividend Income.  For the fiscal year ended August 31, 2021, the Fund designates approximately $9,713,224, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend income eligible for the reduced tax rate of 15%.

Dividends Received Deduction.  Corporate shareholders are generally entitled to take the dividends received deduction on the portion of the Fund’s dividend distribution that qualifies under tax law. For the Fund’s fiscal 2021 ordinary income dividends, 38.97% qualifies for the corporate dividends received deduction.

Capital Gains Dividends.  The Fund hereby designates as a capital gain dividend with respect to the taxable year ended August 31, 2021, $21,982,248 or, if subsequently determined to be different, the net capital gain of such year.

163(j) Interest Dividends.  For the fiscal year ended August 31, 2021, the Fund designates 9.20% of distributions from net investment income as a 163(j) interest dividend.

 

  30  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Liquidity Risk Management Program

 

 

The Fund has implemented a written liquidity risk management program (Program) and related procedures to manage its liquidity in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (Liquidity Rule). The Liquidity Rule defines “liquidity risk” as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of the remaining investors’ interests in the fund. The Fund’s Board of Trustees/Directors has designated the investment adviser to serve as the administrator of the Program and the related procedures. The administrator has established a Liquidity Risk Management Oversight Committee (Committee) to perform the functions necessary to administer the Program. As part of the Program, the administrator is responsible for identifying illiquid investments and categorizing the relative liquidity of the Fund’s investments in accordance with the Liquidity Rule. Under the Program, the administrator assesses, manages, and periodically reviews the Fund’s liquidity risk, and is responsible for making certain reports to the Fund’s Board of Trustees/Directors and the Securities and Exchange Commission (SEC) regarding the liquidity of the Fund’s investments, and to notify the Board of Trustees/Directors and the SEC of certain liquidity events specified in the Liquidity Rule. The liquidity of the Fund’s portfolio investments is determined based on a number of factors including, but not limited to, relevant market, trading and investment-specific considerations under the Program.

At a meeting of the Fund’s Board of Trustees/Directors on June 8, 2021, the Committee provided a written report to the Fund’s Board of Trustees/Directors pertaining to the operation, adequacy, and effectiveness of implementation of the Program, as well as the operation of the highly liquid investment minimum (if applicable) for the period January 1, 2020 through December 31, 2020 (Review Period). The Program operated effectively during the Review Period, supporting the administrator’s ability to assess, manage and monitor Fund liquidity risk, including during periods of market volatility and net redemptions. During the Review Period, the Fund met redemption requests on a timely basis.

There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.

 

  31  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Management and Organization

 

 

Fund Management.  The Trustees of Eaton Vance Growth Trust (the Trust) are responsible for the overall management and supervision of the Trust’s affairs. The Trustees and officers of the Trust are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Trustees and officers of the Trust hold indefinite terms of office. The “Noninterested Trustees” consist of those Trustees who are not “interested persons” of the Trust, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, “EVC” refers to Eaton Vance Corp., “EV” refers to EV LLC, “EVM” refers to Eaton Vance Management, “BMR” refers to Boston Management and Research and “EVD” refers to Eaton Vance Distributors, Inc. EV is the trustee of each of EVM and BMR. Effective March 1, 2021, each of EVM, BMR, EVD and EV are indirect, wholly owned subsidiaries of Morgan Stanley. Each officer affiliated with EVM may hold a position with other EVM affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 138 portfolios (with the exception of Messrs. Faust and Wennerholm and Ms. Frost who oversee 137 portfolios) in the Eaton Vance Complex (including all master and feeder funds in a master feeder structure). Each officer serves as an officer of certain other Eaton Vance funds. Each Trustee and officer serves until his or her successor is elected.

 

Name and Year of Birth    Trust
Position(s)
    

Trustee

Since(1)

    

Principal Occupation(s) and Other Directorships

During Past Five Years and Other Relevant Experience

Interested Trustee

Thomas E. Faust Jr.

1958

   Trustee      2007     

Chairman of Morgan Stanley Investment Management, Inc. (MSIM), member of the Board of Managers and President of EV, Chief Executive Officer of EVM and BMR, and Director of EVD. Formerly, Chairman, Chief Executive Officer and President of EVC. Trustee and/or officer of 137 registered investment companies. Mr. Faust is an interested person because of his positions with MSIM, BMR, EVM, EVD, and EV, which are affiliates of the Trust, and his former position with EVC, which was an affiliate of the Trust prior to March 1, 2021.

Other Directorships in the Last Five Years. Formerly, Director of EVC (2007-2021) and Hexavest Inc. (investment management firm) (2012-2021).

Noninterested Trustees

Mark R. Fetting

1954

   Trustee      2016     

Private investor. Formerly held various positions at Legg Mason, Inc. (investment management firm) (2000-2012), including President, Chief Executive Officer, Director and Chairman (2008-2012), Senior Executive Vice President (2004-2008) and Executive Vice President (2001-2004). Formerly, President of Legg Mason family of funds (2001-2008). Formerly, Division President and Senior Officer of Prudential Financial Group, Inc. and related companies (investment management firm) (1991-2000).

Other Directorships in the Last Five Years. None.

Cynthia E. Frost

1961

   Trustee      2014     

Private investor. Formerly, Chief Investment Officer of Brown University (university endowment) (2000-2012). Formerly, Portfolio Strategist for Duke Management Company (university endowment manager) (1995-2000). Formerly, Managing Director, Cambridge Associates (investment consulting company) (1989-1995). Formerly, Consultant, Bain and Company (management consulting firm) (1987-1989). Formerly, Senior Equity Analyst, BA Investment Management Company (1983-1985).

Other Directorships in the Last Five Years. None.

George J. Gorman

1952

   Chairperson of the Board and Trustee      2021 (Chairperson) and 2014 (Trustee)     

Principal at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting firm) (1974-2009).

Other Directorships in the Last Five Years. None.

Valerie A. Mosley

1960

   Trustee      2014     

Chairwoman and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Founder of Upward Wealth, Inc., dba BrightUP, a fintech platform. Formerly, Partner and Senior Vice President, Portfolio Manager and Investment Strategist at Wellington Management Company, LLP (investment management firm) (1992-2012). Formerly, Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990).

Other Directorships in the Last Five Years. Director of DraftKings, Inc. (digital sports entertainment and gaming company) (since September 2020). Director of Groupon, Inc. (e-commerce provider) (since April 2020). Director of Envestnet, Inc. (provider of intelligent systems for wealth management and financial wellness) (since 2018). Formerly, Director of Dynex Capital, Inc. (mortgage REIT) (2013-2020).

 

  32  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Management and Organization — continued

 

 

Name and Year of Birth    Trust
Position(s)
    

Trustee

Since(1)

    

Principal Occupation(s) and Other Directorships

During Past Five Years and Other Relevant Experience

Noninterested Trustees (continued)

William H. Park

1947

   Trustee      2003     

Private investor. Formerly, Consultant (management and transactional) (2012-2014). Formerly, Chief Financial Officer, Aveon Group L.P. (investment management firm) (2010-2011). Formerly, Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005). Formerly, Executive Vice President and Chief Financial Officer, United Asset Management Corporation (investment management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now PricewaterhouseCoopers) (a registered public accounting firm) (1972-1981).

Other Directorships in the Last Five Years. None.

Helen Frame Peters

1948

   Trustee      2008     

Professor of Finance, Carroll School of Management, Boston College. Formerly, Dean, Carroll School of Management, Boston College (2000-2002). Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income, Colonial Management Associates (investment management firm) (1991-1998).

Other Directorships in the Last Five Years. None.

Keith Quinton

1958

   Trustee      2018     

Private investor, researcher and lecturer. Formerly, Independent Investment Committee Member at New Hampshire Retirement System (2017-2021). Formerly, Portfolio Manager and Senior Quantitative Analyst at Fidelity Investments (investment management firm) (2001-2014).

Other Directorships in the Last Five Years. Formerly, Director (2016-2021) and Chairman (2019-2021) of New Hampshire Municipal Bond Bank.

Marcus L. Smith

1966

   Trustee      2018     

Private investor. Formerly, Portfolio Manager at MFS Investment Management (investment management firm) (1994-2017).

Other Directorships in the Last Five Years. Director of First Industrial

Realty Trust, Inc. (an industrial REIT) (since 2021). Director of MSCI Inc. (global provider of investment decision support tools) (since 2017). Formerly, Director of DCT Industrial Trust Inc. (logistics real estate company) (2017-2018).

Susan J. Sutherland

1957

   Trustee      2015     

Private investor. Director of Ascot Group Limited and certain of its subsidiaries (insurance and reinsurance) (since 2017). Formerly, Director of Hagerty Holding Corp. (insurance) (2015-2018) and Montpelier Re Holdings Ltd. (insurance and reinsurance) (2013-2015). Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013).

Other Directorships in the Last Five Years. Director of Kairos Acquisition Corp. (insurance/InsurTech acquisition company) (since 2021).

Scott E. Wennerholm

1959

   Trustee      2016     

Private investor. Formerly, Trustee at Wheelock College (postsecondary institution) (2012-2018). Formerly, Consultant at GF Parish Group (executive recruiting firm) (2016-2017). Formerly, Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm) (2005-2011). Formerly, Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm) (1997-2004). Formerly, Vice President at Fidelity Investments Institutional Services (investment management firm) (1994-1997).

Other Directorships in the Last Five Years. None.

 

Name and Year of Birth    Trust
Position(s)
     Officer
Since
(2)
    

Principal Occupation(s)

During Past Five Years

Principal Officers who are not Trustees

Eric A. Stein

1980

   President      2020      Vice President and Chief Investment Officer, Fixed Income of EVM and BMR. Prior to November 1, 2020, Mr. Stein was a co-Director of Eaton Vance’s Global Income Investments. Also Vice President of Calvert Research and Management (“CRM”).

Deidre E. Walsh

1971

   Vice President and Chief Legal Officer      2009      Vice President of EVM and BMR. Also Vice President of CRM.

James F. Kirchner

1967

   Treasurer      2007      Vice President of EVM and BMR. Also Vice President of CRM.

 

  33  


Eaton Vance

Richard Bernstein All Asset Strategy Fund

August 31, 2021

 

Management and Organization — continued

 

 

Name and Year of Birth    Trust
Position(s)
     Officer
Since
(2)
    

Principal Occupation(s)

During Past Five Years

Principal Officers who are not Trustees (continued)

Kimberly M. Roessiger

1985

   Secretary      2021      Vice President of EVM and BMR.

Richard F. Froio

1968

   Chief Compliance Officer      2017      Vice President of EVM and BMR since 2017. Formerly, Deputy Chief Compliance Officer (Adviser/Funds) and Chief Compliance Officer (Distribution) at PIMCO (2012-2017) and Managing Director at BlackRock/Barclays Global Investors (2009-2012).

 

(1) 

Year first appointed to serve as Trustee for a fund in the Eaton Vance family of funds. Each Trustee has served continuously since appointment unless indicated otherwise.

(2) 

Year first elected to serve as officer of a fund in the Eaton Vance family of funds when the officer has served continuously. Otherwise, year of most recent election as an officer of a fund in the Eaton Vance family of funds. Titles may have changed since initial election.

The SAI for the Fund includes additional information about the Trustees and officers of the Fund and can be obtained without charge on Eaton Vance’s website at www.eatonvance.com or by calling 1-800-262-1122.

 

  34  


Eaton Vance Funds

 

Privacy Notice    April 2021

 

 

FACTS    WHAT DOES EATON VANCE DO WITH YOUR
PERSONAL INFORMATION?
      
  
Why?    Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
   
      
What?   

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

 

   Social Security number and income

   investment experience and risk tolerance

   checking account number and wire transfer instructions

   
      
How?    All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing.
   
      

 

Reasons we can share your
personal information
   Does Eaton Vance share?    Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus    Yes    No
For our marketing purposes — to offer our products and services to you    Yes    No
For joint marketing with other financial companies    No    We don’t share
For our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness    Yes    Yes
For our affiliates’ everyday business purposes — information about your transactions and experiences    Yes    No
For our affiliates’ everyday business purposes — information about your creditworthiness    No    We don’t share
For our investment management affiliates to market to you    Yes    Yes
For our affiliates to market to you    No    We don’t share
For nonaffiliates to market to you    No    We don’t share

 

To limit our sharing   

Call toll-free 1-800-262-1122 or email: [email protected]

 

Please note:

 

If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.

   
      
   
Questions?    Call toll-free 1-800-262-1122 or email: [email protected]
   
      

 

  35  


Eaton Vance Funds

 

Privacy Notice — continued    April 2021

 

 

Page 2     

 

Who we are
Who is providing this notice?   Eaton Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below)
What we do
How does Eaton Vance protect my personal information?   To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does Eaton Vance collect my personal information?  

We collect your personal information, for example, when you

 

   open an account or make deposits or withdrawals from your account

   buy securities from us or make a wire transfer

   give us your contact information

 

We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Why can’t I limit all sharing?  

Federal law gives you the right to limit only

 

   sharing for affiliates’ everyday business purposes — information about your creditworthiness

   affiliates from using your information to market to you

   sharing for nonaffiliates to market to you

 

State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Definitions
Investment Management Affiliates   Eaton Vance Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates  

Companies related by common ownership or control. They can be financial and nonfinancial companies.

 

   Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.

Nonaffiliates  

Companies not related by common ownership or control. They can be financial and nonfinancial companies.

 

   Eaton Vance does not share with nonaffiliates so they can market to you.

Joint marketing  

A formal agreement between nonaffiliated financial companies that together market financial products or services to you.

 

   Eaton Vance doesn’t jointly market.

Other important information

Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information.

 

California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

 

  36  


Eaton Vance Funds

 

IMPORTANT NOTICES

 

 

Delivery of Shareholder Documents.  The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial intermediary, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial intermediary. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by Eaton Vance or your financial intermediary.

Portfolio Holdings.  Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) files a schedule of portfolio holdings on Part F to Form N-PORT with the SEC. Certain information filed on Form N-PORT may be viewed on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov.

Proxy Voting.  From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.

 

  37  


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Investment Adviser and Administrator

Eaton Vance Management

Two International Place

Boston, MA 02110

Investment Sub-Adviser

Richard Bernstein Advisors LLC

1251 Avenue of the Americas

Suite 4102

New York, NY 10020

Principal Underwriter*

Eaton Vance Distributors, Inc.

Two International Place

Boston, MA 02110

(617) 482-8260

Custodian

State Street Bank and Trust Company

State Street Financial Center, One Lincoln Street

Boston, MA 02111

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Attn: Eaton Vance Funds

P.O. Box 9653

Providence, RI 02940-9653

(800) 262-1122

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

200 Berkeley Street

Boston, MA 02116-5022

Fund Offices

Two International Place

Boston, MA 02110

 
*

FINRA BrokerCheck.  Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to investors at www.FINRA.org.


LOGO

 

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5669    8.31.21


LOGO

 

 

Eaton Vance

Richard Bernstein Equity Strategy Fund

Annual Report

August 31, 2021

 

 

 

LOGO


 

 

Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (“CFTC”) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The investment adviser has claimed an exclusion from the definition of “commodity pool operator” under the Commodity Exchange Act with respect to its management of the Fund. Accordingly, neither the Fund nor the adviser with respect to the operation of the Fund is subject to CFTC regulation. Because of its management of other strategies, the Fund’s adviser is registered with the CFTC as a commodity pool operator. The adviser is also registered as a commodity trading advisor.

Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.

This report must be preceded or accompanied by a current summary prospectus or prospectus. Before investing, investors should consider carefully the investment objective, risks, and charges and expenses of a mutual fund. This and other important information is contained in the summary prospectus and prospectus, which can be obtained from a financial intermediary. Prospective investors should read the prospectus carefully before investing. For further information, please call 1-800-262-1122.


Annual Report August 31, 2021

Eaton Vance

Richard Bernstein Equity Strategy Fund

 

Table of Contents

  

Management’s Discussion of Fund Performance

     2  

Performance

     3  

Fund Profile

     4  

Endnotes and Additional Disclosures

     5  

Fund Expenses

     6  

Financial Statements

     7  

Report of Independent Registered Public Accounting Firm

     27  

Federal Tax Information

     28  

Liquidity Risk Management Program

     29  

Management and Organization

     30  

Privacy Notice

     33  

Important Notices

     35  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Management’s Discussion of Fund Performance1

 

 

Economic and Market Conditions

The 12-month period starting September 1, 2020, was notable for a widespread equity rally that began in November 2020, paused in January 2021, and then continued almost unabated through the end of the period. Broad-market stock indexes posted strong double-digit returns as investors cheered the re-opening of businesses that had been closed or hobbled by COVID-19 the previous spring, along with the rollout of several highly effective vaccines.

The news was not all good, however, as the path of the virus continued to have a firm grip on the global economy. Disease rates advanced and declined as a third and fourth wave of COVID-19 infections coursed through nations across the globe. COVID-19 concerns were largely responsible for equity market downturns in September and October 2020. For the rest of the period, COVID-19 worries sparked several steep, but brief, market retreats.

Worker shortages related to COVID-19 led to global supply chain issues throughout the period. From computer chips to shipping containers, scarcities of key items led to temporary factory shutdowns, empty store shelves, and car dealers short of vehicles to sell. In the U.S. in particular, shortages — combined with high demand from consumers itching to spend the money they had saved by sheltering at home early in the pandemic — led to higher year-over-year inflation than the economy had seen in years. While U.S. Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen expressed the view that inflation in 2021 would likely be transitory, inflation became a key concern for investors during the period.

In China, the world’s second-largest economy, the Communist Party’s efforts to dial back capitalism and take more control of China’s surging technology sector were not applauded by global investors. While global equity indexes generally reported positive returns during the closing months of the period, the MSCI Golden Dragon Index, a measure of Chinese large-cap and mid-cap stocks, declined 8.84% in the final three months of the period.

For the 12-month period, the MSCI World Index, a broad measure of global equities, returned 29.76%; while the S&P 500® Index, a broad measure of U.S. stocks, returned 31.17%; and the technology-laden Nasdaq Composite Index rose 30.49%. The MSCI EAFE Index of developed-market international equities returned 26.12%, while the MSCI Emerging Markets Index returned 21.12% in U.S. dollars.

Fund Performance

For the 12-month period ended August 31, 2021, Eaton Vance Richard Bernstein Equity Strategy Fund (the Fund) returned 22.71% for Class A shares at net asset value (NAV), underperforming its benchmark, the MSCI ACWI Index (the Index), which returned 28.64%.

The Fund uses a macro-driven, top-down approach that emphasizes and de-emphasizes various market segments in seeking potentially overlooked investment opportunities worldwide.

An underweight exposure, relative to the Index, to emerging market nations other than China during the final four months of 2020 hurt Fund performance versus the Index as many emerging market economies recovered from the pandemic-induced downturn earlier in 2020.

Within the Fund’s U.S. allocation, large-cap stock selections in the financials, consumer discretionary, industrials, and materials sectors also detracted from Fund performance versus the Index. In the materials sector, stock selections in the chemicals industry weighed on relative performance.

Stock selections in the Fund’s European allocation also detracted from performance versus the Index. In the information technology (IT) sector, stock selections in the IT services industry dragged on Fund performance, as did stock selections in the machinery industry within the industrials sector. In the European financials sector, the Fund’s underweight position in the banking industry — where share prices in general rallied during the period — and an overweight position in the insurance industry, which experienced increased claims during the pandemic, detracted from relative performance as well.

In a period when the overall direction of equity markets was up, the Fund’s cash allocation also detracted from returns versus the Index, particularly from September through December 2020. Management maintained a modest cash position to help mitigate the effect of potential market downturns and to help fund shareholder redemptions.

In contrast, the Fund’s overweight position in U.S. small-cap value stocks, particularly shares of regional banks, contributed to Fund performance versus the Index. During the period, regional banks in general traded at lower and — in Fund management’s view — more attractive prices relative to their earnings than many other industries.

The Fund’s overweight exposure to Chinese equities in the closing months of 2020 — achieved primarily by owning shares of the iShares MSCI China ETF — also contributed to relative returns. Beginning in January 2021, the Fund began shifting some of its China allocations into other emerging markets, primarily Brazil, that management felt offered more opportunity. The resulting underweight position in China and overweight position in Brazil helped relative performance as well. In Brazil, strong stock selections in two sectors — industrials and consumer discretionary — were beneficial to performance versus the Index during the period.

The Fund’s underweight position in Japanese equities also contributed to performance relative to the Index due, in large part, to a weakening Japanese yen versus the U.S. dollar during the period.

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to eatonvance.com.

 

  2  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Performance2,3

 

Portfolio Managers Richard Bernstein, Matthew Griswold, CFA, Henry Timmons, CFA and Dan Suzuki, CFA, each of Richard Bernstein Advisors LLC

 

% Average Annual Total Returns   

Class

Inception Date

    

Performance

Inception Date

     One Year      Five Years      Ten Years  

Class A at NAV

     10/12/2010        10/12/2010        22.71      13.07      11.20

Class A with 5.75% Maximum Sales Charge

                   15.64        11.75        10.54  

Class C at NAV

     10/12/2010        10/12/2010        21.88        12.23        10.37  

Class C with 1% Maximum Sales Charge

                   20.88        12.23        10.37  

Class I at NAV

     10/12/2010        10/12/2010        23.09        13.36        11.47  

 

MSCI ACWI Index

                   28.64      14.29      11.26
% Total Annual Operating Expense Ratios4                    Class A      Class C      Class I  
           1.27      2.02      1.02

Growth of $10,000

 

This graph shows the change in value of a hypothetical investment of $10,000 in Class A of the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.

 

LOGO

 

Growth of Investment      Amount Invested        Period Beginning        At NAV        With Maximum Sales Charge  

Class C

       $10,000          08/31/2011          $26,855          N.A.  

Class I

       $250,000          08/31/2011          $741,162          N.A.  

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to eatonvance.com.

 

  3  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Fund Profile

 

 

Country Allocation (% of net assets)5

 

 

LOGO

Equity Sector Allocation (% of net assets)5

 

 

LOGO

Top 10 Holdings (% of net assets)6

 

 

Apple, Inc.

     3.9

Microsoft Corp.

     3.1  

iShares MSCI Taiwan ETF

     2.5  

Amazon.com, Inc.

     2.2  

iShares MSCI South Korea ETF

     2.1  

iShares MSCI China ETF

     1.8  

Alphabet, Inc., Class A

     1.4  

Facebook, Inc., Class A

     1.2  

Alphabet, Inc., Class C

     1.1  

NVIDIA Corp.

     0.9  

Total

     20.2
 

 

See Endnotes and Additional Disclosures in this report.

 

  4  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Endnotes and Additional Disclosures

 

1 

The views expressed in this report are those of the 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 and the Fund(s) disclaim 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.

 

2 

MSCI ACWI Index is an unmanaged free-float-adjusted, market-capitalization-weighted index designed to measure the equity market performance of developed and emerging markets. MSCI indexes are net of foreign withholding taxes. Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides no warranties, has not prepared or approved this report, and has no liability hereunder. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index.

 

3 

Total Returns at NAV do not include applicable sales charges. If sales charges were deducted, the returns would be lower. Total Returns shown with maximum sales charge reflect the stated maximum sales charge. Unless otherwise stated, performance does not reflect the deduction of taxes on Fund distributions or redemptions of Fund shares.

 

4 

Source: Fund prospectus. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report.

 

5 

The Fund may obtain exposure to certain market segments through investments in exchange-traded funds (ETFs). For purposes of the charts, the Fund’s investments in ETFs are included based on the portfolio composition of each ETF.

 

6 

Excludes cash and cash equivalents.

Fund profile subject to change due to active management.

Additional Information

MSCI Golden Dragon Index is an unmanaged index of common stocks traded in China, Hong Kong and Taiwan. MSCI World Index is an unmanaged index of equity securities in the developed markets. MSCI EAFE Index is an unmanaged index of equities in the developed markets, excluding the U.S. and Canada. MSCI Emerging Markets Index is an unmanaged index of emerging markets common stocks. S&P 500® Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance. S&P Dow Jones Indices are a product of S&P Dow Jones Indices LLC (“S&P DJI”) and have been licensed for use. S&P® and S&P 500® are registered trademarks of S&P DJI; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P

DJI, Dow Jones and their respective affiliates do not sponsor, endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices. Nasdaq Composite Index is a market capitalization-weighted index of all domestic and international securities listed on Nasdaq. Source: Nasdaq, Inc. The information is provided by Nasdaq (with its affiliates, are referred to as the “Corporations”) and Nasdaq’s third party licensors on an “as is” basis and the Corporations make no guarantees and bear no liability of any kind with respect to the information or the Fund.

Important Notice to Shareholders

Effective May 1, 2021, the portfolio managers of the Fund are Richard Bernstein, Matthew Griswold, Henry Timmons and Dan Suzuki.

 

 

  5  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Fund Expenses

 

 

Example:  As a Fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of Fund investing and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2021 – August 31, 2021).

Actual Expenses:  The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes:  The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual Fund return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees (if applicable). Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.

 

     Beginning
Account Value
(3/1/21)
     Ending
Account Value
(8/31/21)
     Expenses Paid
During Period*
(3/1/21 – 8/31/21)
     Annualized
Expense
Ratio
 

Actual

          

Class A

  $ 1,000.00      $ 1,114.30      $ 6.34        1.19

Class C

  $ 1,000.00      $ 1,110.50      $ 10.32        1.94

Class I

  $ 1,000.00      $ 1,115.80      $ 5.01        0.94
         

Hypothetical

          

(5% return per year before expenses)

          

Class A

  $ 1,000.00      $ 1,019.20      $ 6.06        1.19

Class C

  $ 1,000.00      $ 1,015.40      $ 9.86        1.94

Class I

  $ 1,000.00      $ 1,020.50      $ 4.79        0.94

 

*

Expenses are equal to the Fund’s annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on February 28, 2021.

 

  6  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Portfolio of Investments

 

 

Common Stocks — 92.8%

 

Security   Shares     Value  
Aerospace & Defense — 1.1%  

Boeing Co. (The)(1)

    7,826     $ 1,717,807  

Embraer S.A.(1)

    1,014,200       4,593,596  

Northrop Grumman Corp.

    6,372       2,342,984  

Thales S.A.

    12,529       1,272,540  
            $ 9,926,927  
Air Freight & Logistics — 1.4%  

C.H. Robinson Worldwide, Inc.

    17,404     $ 1,567,404  

Expeditors International of Washington, Inc.

    19,904       2,480,835  

FedEx Corp.

    8,076       2,145,712  

Hub Group, Inc., Class A(1)

    47,895       3,362,229  

United Parcel Service, Inc., Class B

    17,938       3,509,211  
            $ 13,065,391  
Airlines — 1.0%  

Alaska Air Group, Inc.(1)

    34,123     $ 1,956,613  

Gol Linhas Aereas Inteligentes S.A., PFC Shares(1)

    391,600       1,511,630  

SkyWest, Inc.(1)

    76,480       3,567,792  

Southwest Airlines Co.(1)

    40,514       2,016,787  
            $ 9,052,822  
Auto Components — 0.2%  

Cie Generale des Etablissements Michelin SCA

    13,654     $ 2,210,527  
            $ 2,210,527  
Automobiles — 0.8%  

Tesla, Inc.(1)

    9,885     $ 7,272,592  
            $ 7,272,592  
Banks — 12.4%  

Ameris Bancorp

    37,992     $ 1,870,726  

Atlantic Union Bankshares Corp.

    46,133       1,706,921  

BancorpSouth Bank

    56,300       1,651,279  

Bank of America Corp.

    133,794       5,585,900  

Bank of Nova Scotia (The)

    48,154       2,982,789  

BankUnited, Inc.

    43,563       1,830,953  

Banner Corp.

    32,830       1,877,876  

BNP Paribas S.A.

    42,794       2,710,994  

Cadence Bancorp, Class A

    257,428       5,537,276  

Cathay General Bancorp

    71,898       2,860,102  

Citigroup, Inc.

    42,863       3,082,278  

Columbia Banking System, Inc.

    40,398       1,468,871  
Security   Shares     Value  
Banks (continued)  

Commonwealth Bank of Australia

    46,906     $ 3,417,671  

Community Bank System, Inc.

    30,086       2,226,364  

CVB Financial Corp.

    78,936       1,607,137  

First BanCorp/Puerto Rico

    276,632       3,521,525  

First Financial Bancorp

    82,708       1,944,465  

First Horizon Corp.

    112,713       1,847,366  

First Midwest Bancorp, Inc.

    102,659       1,922,803  

Fulton Financial Corp.

    114,617       1,816,679  

Glacier Bancorp, Inc.

    40,247       2,143,555  

Hancock Whitney Corp.

    42,345       1,946,176  

Hilltop Holdings, Inc.

    51,451       1,722,065  

Home BancShares, Inc.

    83,567       1,851,009  

Independent Bank Corp.

    21,394       1,640,920  

Independent Bank Group, Inc.

    25,489       1,795,190  

JPMorgan Chase & Co.

    48,155       7,702,392  

National Australia Bank, Ltd.

    128,757       2,595,888  

Old National Bancorp

    124,003       2,065,890  

Pacific Premier Bancorp, Inc.

    51,132       2,043,235  

Renasant Corp.

    89,127       3,128,358  

Royal Bank of Canada

    41,292       4,241,623  

Seacoast Banking Corporation of Florida

    50,727       1,620,220  

Simmons First National Corp., Class A

    64,012       1,859,549  

South State Corp.

    21,077       1,445,461  

Sumitomo Mitsui Financial Group, Inc.

    56,300       1,943,234  

Toronto-Dominion Bank (The)

    55,779       3,622,220  

Truist Financial Corp.

    43,795       2,498,943  

U.S. Bancorp

    37,916       2,175,999  

UMB Financial Corp.

    24,611       2,253,875  

United Bankshares, Inc.

    49,983       1,815,882  

United Community Banks, Inc.

    53,563       1,615,996  

Valley National Bancorp

    232,858       3,036,468  

Wells Fargo & Co.

    76,667       3,503,682  

Westpac Banking Corp.

    136,470       2,567,483  
            $ 114,305,288  
Beverages — 1.2%  

Asahi Group Holdings, Ltd.

    35,500     $ 1,650,204  

Britvic PLC

    136,160       1,826,925  

Coca-Cola Co. (The)

    65,853       3,708,182  

PepsiCo, Inc.

    26,321       4,116,341  
            $ 11,301,652  
Biotechnology — 0.7%  

Amgen, Inc.

    13,030     $ 2,938,656  

CSL, Ltd.

    9,551       2,172,305  
 

 

  7   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Security   Shares     Value  
Biotechnology (continued)  

Gilead Sciences, Inc.

    14,614     $ 1,063,607  
            $ 6,174,568  
Building Products — 0.5%  

Daikin Industries, Ltd.

    8,000     $ 1,996,372  

Kingspan Group PLC

    25,698       2,934,586  
            $ 4,930,958  
Capital Markets — 1.4%  

BlackRock, Inc.

    3,429     $ 3,234,541  

Hong Kong Exchanges & Clearing, Ltd.

    44,100       2,785,975  

Moody’s Corp.

    6,984       2,659,298  

Morgan Stanley(2)

    18,369       1,918,275  

Partners Group Holding AG

    1,400       2,482,205  
            $ 13,080,294  
Chemicals — 5.4%  

Air Liquide S.A.

    24,986     $ 4,478,549  

Air Products and Chemicals, Inc.

    8,502       2,291,374  

Air Water, Inc.(3)

    100,100       1,612,769  

Akzo Nobel NV

    14,153       1,744,206  

Arkema S.A.

    14,645       1,946,393  

Asahi Kasei Corp.

    170,600       1,758,899  

BASF SE

    22,436       1,735,631  

Ecolab, Inc.

    11,393       2,567,526  

Ems-Chemie Holding AG

    3,263       3,535,630  

Givaudan S.A.

    1,172       5,879,897  

Linde PLC

    14,715       4,629,192  

Nippon Shokubai Co., Ltd.

    26,400       1,399,293  

NOF Corp.

    41,700       2,306,341  

Novozymes A/S, Class B

    25,857       2,090,205  

PPG Industries, Inc.

    12,793       2,041,123  

Shin-Etsu Chemical Co., Ltd.

    13,700       2,262,799  

Sika AG

    14,489       5,220,478  

Symrise AG

    15,299       2,177,200  
            $ 49,677,505  
Commercial Services & Supplies — 0.2%  

Securitas AB, Class B

    123,582     $ 2,055,810  
            $ 2,055,810  
Communications Equipment — 0.3%  

Cisco Systems, Inc.

    51,887     $ 3,062,371  
            $ 3,062,371  
Security   Shares     Value  
Construction & Engineering — 0.3%  

Eiffage S.A.

    21,746     $ 2,262,644  
            $ 2,262,644  
Construction Materials — 0.5%  

Cemex SAB de CV, Series CPO(1)

    2,542,919     $ 2,099,263  

CRH PLC

    38,857       2,058,486  
            $ 4,157,749  
Consumer Finance — 1.5%  

Aeon Financial Service Co., Ltd.(3)

    101,800     $ 1,198,182  

American Express Co.

    12,901       2,141,050  

Navient Corp.

    353,362       8,201,532  

PRA Group, Inc.(1)

    62,911       2,642,262  
            $ 14,183,026  
Containers & Packaging — 1.1%  

AptarGroup, Inc.

    9,421     $ 1,269,951  

Ball Corp.

    31,934       3,064,387  

Huhtamaki Oyj

    34,360       1,835,664  

Klabin S.A.(1)

    308,700       1,570,723  

Sonoco Products Co.

    29,777       1,944,438  
            $ 9,685,163  
Diversified Financial Services — 0.4%  

Berkshire Hathaway, Inc., Class B(1)

    11,101     $ 3,172,333  
            $ 3,172,333  
Diversified Telecommunication Services — 0.7%  

AT&T, Inc.

    59,453     $ 1,630,201  

Liberty Latin America, Ltd., Class C(1)

    186,956       2,690,297  

Swisscom AG

    1,746       1,024,792  

Verizon Communications, Inc.

    22,653       1,245,915  
            $ 6,591,205  
Electric Utilities — 0.4%  

Enel SpA

    193,905     $ 1,766,560  

Iberdrola S.A.

    150,409       1,863,788  
            $ 3,630,348  
Electrical Equipment — 0.7%  

AMETEK, Inc.

    13,315     $ 1,810,441  

Eaton Corp. PLC

    13,323       2,243,060  

Emerson Electric Co.

    20,763       2,190,496  
            $ 6,243,997  
 

 

  8   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Security   Shares     Value  
Electronic Equipment, Instruments & Components — 1.2%  

Amphenol Corp., Class A

    27,748     $ 2,126,329  

Canon Marketing Japan, Inc.

    52,000       1,185,646  

Hexagon AB, Class B

    213,003       3,693,617  

Kyocera Corp.

    17,600       1,094,139  

Sanmina Corp.(1)

    77,527       3,060,766  
            $ 11,160,497  
Energy Equipment & Services — 1.1%  

Halliburton Co.

    166,136     $ 3,319,397  

NOV, Inc.(1)

    96,990       1,277,358  

Schlumberger NV

    66,292       1,858,828  

Technip Energies NV ADR(1)

    85,677       1,106,947  

TechnipFMC PLC(1)

    428,385       2,840,193  
            $ 10,402,723  
Entertainment — 0.6%  

Activision Blizzard, Inc.

    15,826     $ 1,303,588  

Netflix, Inc.(1)

    3,633       2,067,867  

Walt Disney Co. (The)(1)

    13,142       2,382,644  
            $ 5,754,099  
Equity Real Estate Investment Trusts (REITs) — 1.4%  

Fibra Uno Administracion S.A. de CV

    2,056,693     $ 2,318,439  

Goodman Group

    111,916       1,890,275  

Lexington Realty Trust

    161,002       2,178,357  

Piedmont Office Realty Trust, Inc., Class A

    120,708       2,151,016  

Primary Health Properties PLC(3)

    879,192       2,037,821  

Segro PLC

    112,470       1,987,804  
            $ 12,563,712  
Food & Staples Retailing — 0.7%  

Loblaw Cos., Ltd.

    42,809     $ 3,016,123  

Walmart, Inc.

    22,939       3,397,266  
            $ 6,413,389  
Food Products — 1.9%  

AAK AB

    74,534     $ 1,783,152  

Associated British Foods PLC

    51,739       1,410,714  

Cranswick PLC

    32,176       1,757,027  

Kerry Group PLC, Class A

    12,198       1,789,212  

MEIJI Holdings Co., Ltd.

    19,800       1,217,741  

Nestle S.A.

    48,581       6,135,233  

Saputo, Inc.

    88,320       2,484,427  

Yakult Honsha Co., Ltd.

    21,600       1,245,501  
            $ 17,823,007  
Security   Shares     Value  
Health Care Equipment & Supplies — 1.6%  

Abbott Laboratories

    16,464     $ 2,080,556  

Becton, Dickinson and Co.

    10,916       2,747,557  

Edwards Lifesciences Corp.(1)

    23,112       2,708,264  

Intuitive Surgical, Inc.(1)

    3,682       3,879,208  

Medtronic PLC

    25,618       3,419,491  
            $ 14,835,076  
Health Care Providers & Services — 1.1%  

Anthem, Inc.

    7,993     $ 2,998,414  

Humana, Inc.

    6,036       2,447,115  

Quest Diagnostics, Inc.

    8,630       1,318,923  

UnitedHealth Group, Inc.

    7,796       3,245,241  
            $ 10,009,693  
Hotels, Restaurants & Leisure — 1.2%  

Booking Holdings, Inc.(1)

    645     $ 1,483,287  

Evolution AB(4)

    16,519       2,667,031  

McDonald’s Corp.

    11,541       2,740,526  

Resorttrust, Inc.

    135,600       2,345,820  

Starbucks Corp.

    18,191       2,137,261  
            $ 11,373,925  
Household Durables — 0.5%  

Cyrela Brazil Realty S.A. Empreendimentos e Participacoes

    318,300     $ 1,244,687  

JM AB

    81,118       3,142,578  
            $ 4,387,265  
Household Products — 1.0%  

Henkel AG & Co. KGaA

    25,073     $ 2,256,692  

Kimberly-Clark Corp.

    9,787       1,348,746  

Procter & Gamble Co. (The)

    30,044       4,277,965  

Reckitt Benckiser Group PLC

    18,809       1,435,902  
            $ 9,319,305  
Independent Power and Renewable Electricity Producers — 0.2%  

AES Brasil Energia S.A.

    527,900     $ 1,553,848  
            $ 1,553,848  
Industrial Conglomerates — 0.8%  

3M Co.

    10,984     $ 2,139,024  

General Electric Co.

    16,480       1,737,157  

Siemens AG

    14,387       2,386,728  

Smiths Group PLC

    73,039       1,449,604  
            $ 7,712,513  
 

 

  9   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Security   Shares     Value  
Insurance — 5.0%  

Aflac, Inc.

    39,535     $ 2,240,844  

AIA Group, Ltd.

    262,400       3,133,246  

Allianz SE

    15,355       3,604,767  

Allstate Corp. (The)

    9,993       1,351,853  

Aon PLC, Class A

    7,862       2,255,293  

Arthur J. Gallagher & Co.

    16,854       2,420,571  

ASR Nederland NV

    78,080       3,567,849  

AXA S.A.

    103,320       2,902,620  

Dai-ichi Life Holdings, Inc.

    79,700       1,577,045  

Marsh & McLennan Cos., Inc.

    18,563       2,918,104  

Muenchener Rueckversicherungs-Gesellschaft AG

    9,951       2,904,383  

Porto Seguro S.A.

    180,900       2,000,088  

Progressive Corp. (The)

    30,987       2,985,287  

Sampo Oyj, Class A

    30,319       1,566,744  

Swiss Life Holding AG

    10,703       5,578,713  

Travelers Cos., Inc. (The)

    13,951       2,228,114  

Zurich Insurance Group AG

    6,932       3,041,701  
            $ 46,277,222  
Interactive Media & Services — 3.7%  

Alphabet, Inc., Class A(1)

    4,293     $ 12,423,727  

Alphabet, Inc., Class C(1)

    3,545       10,313,256  

Facebook, Inc., Class A(1)

    28,989       10,997,847  
            $ 33,734,830  
Internet & Direct Marketing Retail — 2.6%  

Alibaba Group Holding, Ltd. ADR(1)

    13,001     $ 2,171,037  

Amazon.com, Inc.(1)

    5,946       20,637,317  

Americanas S.A.(1)

    66,456       531,566  

Lojas Americanas S.A., PFC Shares

    369,200       425,550  
            $ 23,765,470  
IT Services — 3.1%  

Amdocs, Ltd.

    17,485     $ 1,346,869  

Atos SE

    17,015       884,634  

Automatic Data Processing, Inc.

    12,580       2,629,723  

Bechtle AG

    23,268       1,682,381  

Cognizant Technology Solutions Corp., Class A

    21,873       1,669,129  

Fidelity National Information Services, Inc.

    11,831       1,511,647  

Mastercard, Inc., Class A

    2,700       934,821  

Nexi SpA(1)(4)

    101,631       2,118,440  

Otsuka Corp.

    23,700       1,226,875  

Shopify, Inc., Class A(1)

    2,661       4,063,453  

Sopra Steria Group SACA

    9,501       1,935,371  

TIS, Inc.

    58,900       1,662,724  
Security   Shares     Value  
IT Services (continued)  

Visa, Inc., Class A

    21,878     $ 5,012,250  

Worldline S.A.(1)(4)

    18,709       1,665,905  
            $ 28,344,222  
Life Sciences Tools & Services — 0.6%  

Illumina, Inc.(1)

    5,736     $ 2,622,270  

Thermo Fisher Scientific, Inc.

    4,656       2,583,847  
            $ 5,206,117  
Machinery — 1.2%  

Knorr-Bremse AG

    18,315     $ 2,199,189  

Mueller Water Products, Inc., Class A

    210,573       3,499,723  

PACCAR, Inc.

    20,379       1,668,429  

Randon S.A. Implementos e Participacoes, PFC Shares

    677,200       1,517,898  

Stadler Rail AG(3)

    49,361       2,139,137  
            $ 11,024,376  
Marine — 0.1%  

Kirby Corp.(1)

    23,917     $ 1,281,712  
            $ 1,281,712  
Media — 0.4%  

Comcast Corp., Class A

    43,528     $ 2,641,279  

Fuji Media Holdings, Inc.

    104,200       1,086,178  
            $ 3,727,457  
Metals & Mining — 1.1%  

Acerinox S.A.

    161,549     $ 2,201,747  

Bradespar S.A., PFC Shares

    126,900       1,549,806  

Gerdau S.A., PFC Shares

    378,900       2,075,201  

Metalurgica Gerdau S.A., PFC Shares

    917,700       2,294,782  

Rio Tinto, Ltd.

    21,173       1,722,743  
            $ 9,844,279  
Multi-Utilities — 0.2%  

National Grid PLC

    141,590     $ 1,831,356  
            $ 1,831,356  
Multiline Retail — 0.5%  

Big Lots, Inc.

    42,783     $ 2,081,821  

Dollar General Corp.

    5,595       1,247,181  

Dollarama, Inc.

    34,863       1,589,719  
            $ 4,918,721  
 

 

  10   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Security   Shares     Value  
Oil, Gas & Consumable Fuels — 4.9%  

Chevron Corp.

    38,314     $ 3,707,646  

CNX Resources Corp.(1)

    209,332       2,378,012  

ConocoPhillips

    30,001       1,665,956  

Cosan S.A.

    436,800       1,862,660  

EOG Resources, Inc.

    24,578       1,659,507  

Exxon Mobil Corp.

    103,330       5,633,552  

Hess Corp.

    56,250       3,867,187  

Idemitsu Kosan Co., Ltd.

    102,800       2,462,118  

Kinder Morgan, Inc.

    87,187       1,418,532  

ONEOK, Inc.

    32,144       1,688,203  

Pioneer Natural Resources Co.

    13,146       1,967,562  

Repsol S.A.

    382,582       4,390,188  

Royal Dutch Shell PLC, Class A

    120,614       2,390,502  

Royal Dutch Shell PLC, Class B ADR

    40,504       1,594,642  

Suncor Energy, Inc.(3)

    214,683       4,008,981  

Valero Energy Corp.

    19,530       1,295,034  

World Fuel Services Corp.

    106,963       3,461,323  
            $ 45,451,605  
Paper & Forest Products — 0.4%  

Dexco S.A.

    427,900     $ 1,705,542  

Mondi PLC

    76,463       2,109,227  
            $ 3,814,769  
Personal Products — 0.7%  

Beiersdorf AG

    27,236     $ 3,305,472  

Edgewell Personal Care Co.

    44,873       1,898,128  

Unilever PLC

    23,093       1,285,816  
            $ 6,489,416  
Pharmaceuticals — 3.4%  

Bayer AG

    28,385     $ 1,579,082  

Bristol-Myers Squibb Co.

    36,600       2,447,076  

Eli Lilly & Co.

    13,203       3,410,203  

Johnson & Johnson

    24,255       4,199,268  

Merck & Co., Inc.

    25,096       1,914,574  

Novartis AG

    16,795       1,553,384  

Novo Nordisk A/S, Class B

    38,198       3,823,997  

Organon & Co.

    2,509       85,030  

Pfizer, Inc.

    92,426       4,258,066  

Roche Holding AG PC

    11,052       4,437,985  

Sanofi

    33,055       3,425,774  
            $ 31,134,439  
Security   Shares     Value  
Professional Services — 0.8%  

Korn Ferry

    59,677     $ 4,218,567  

Teleperformance

    7,220       3,194,024  
            $ 7,412,591  
Real Estate Management & Development — 1.4%  

BR Malls Participacoes S.A.(1)

    965,600     $ 1,686,271  

Iguatemi Empresa de Shopping Centers S.A.

    259,900       1,718,493  

Kennedy Wilson Holdings, Inc.

    95,928       2,109,457  

Mitsubishi Estate Co., Ltd.

    112,800       1,766,038  

Multiplan Empreendimentos Imobiliarios S.A.

    424,500       1,732,217  

Sun Hung Kai Properties, Ltd.

    157,500       2,221,376  

Vonovia SE

    26,648       1,799,029  
            $ 13,032,881  
Road & Rail — 2.6%  

CSX Corp.

    137,022     $ 4,457,326  

Knight-Swift Transportation Holdings, Inc.

    35,817       1,859,977  

Norfolk Southern Corp.

    17,028       4,317,279  

Old Dominion Freight Line, Inc.

    9,839       2,840,716  

Rumo S.A.(1)

    676,700       2,449,877  

Seino Holdings Co., Ltd.

    87,400       1,076,479  

Union Pacific Corp.

    23,478       5,090,970  

Werner Enterprises, Inc.

    34,519       1,627,916  
            $ 23,720,540  
Semiconductors & Semiconductor Equipment — 2.0%  

Applied Materials, Inc.

    22,452     $ 3,033,939  

ASML Holding NV

    3,858       3,217,523  

Intel Corp.

    34,478       1,863,881  

Micron Technology, Inc.(1)

    23,030       1,697,311  

NVIDIA Corp.

    37,716       8,442,726  
            $ 18,255,380  
Software — 4.6%  

Adobe, Inc.(1)

    3,233     $ 2,145,742  

Constellation Software, Inc.

    1,075       1,821,864  

Microsoft Corp.

    95,286       28,764,938  

Oracle Corp.

    33,833       3,015,535  

SAP SE

    10,289       1,545,510  

TOTVS S.A.

    304,700       2,333,511  

Tyler Technologies, Inc.(1)

    3,324       1,614,467  

VMware, Inc., Class A(1)

    8,115       1,208,080  
            $ 42,449,647  
 

 

  11   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Security   Shares     Value  
Specialty Retail — 1.5%  

Home Depot, Inc. (The)

    16,642     $ 5,428,288  

Industria de Diseno Textil S.A.

    70,800       2,418,627  

Petrobras Distribuidora S.A.

    419,700       2,206,940  

TJX Cos., Inc. (The)

    18,374       1,336,157  

WH Smith PLC(1)

    87,180       1,959,478  
            $ 13,349,490  
Technology Hardware, Storage & Peripherals — 4.0%  

Apple, Inc.

    234,631     $ 35,624,025  

Samsung Electronics Co., Ltd. GDR

    859       1,402,517  
            $ 37,026,542  
Textiles, Apparel & Luxury Goods — 0.5%  

Alpargatas S.A., PFC Shares(1)

    216,700     $ 2,513,247  

NIKE, Inc., Class B

    14,363       2,366,161  
            $ 4,879,408  
Thrifts & Mortgage Finance — 0.5%  

Capitol Federal Financial, Inc.

    190,804     $ 2,201,878  

WSFS Financial Corp.

    58,380       2,651,036  
            $ 4,852,914  
Tobacco — 0.4%  

British American Tobacco PLC

    45,038     $ 1,689,527  

Philip Morris International, Inc.

    18,363       1,891,389  
            $ 3,580,916  
Trading Companies & Distributors — 0.7%  

Brenntag SE

    49,143     $ 4,959,429  

Mitsui & Co., Ltd.

    85,500       1,885,752  
            $ 6,845,181  
Transportation Infrastructure — 0.2%  

CCR S.A.

    899,300     $ 2,130,507  
            $ 2,130,507  
Wireless Telecommunication Services — 0.2%  

SoftBank Group Corp.

    27,700     $ 1,560,999  
            $ 1,560,999  

Total Common Stocks
(identified cost $556,011,207)

 

  $ 855,295,209  
Exchange-Traded Funds(5) — 6.4%

 

Security   Shares     Value  
Equity Funds — 6.4%  

iShares MSCI China ETF

    231,252     $ 16,370,329  

iShares MSCI South Korea ETF

    220,000       19,071,800  

iShares MSCI Taiwan ETF

    360,000       23,385,600  

Total Exchange-Traded Funds
(identified cost $56,504,881)

 

  $ 58,827,729  
Short-Term Investments — 1.1%

 

Affiliated Fund — 0.8%

 

Description   Units     Value  

Eaton Vance Cash Reserves Fund, LLC, 0.07%(6)

    7,013,549     $ 7,013,549  

Total Affiliated Fund
(identified cost $7,013,549)

 

  $ 7,013,549  
Securities Lending Collateral — 0.3%

 

Security   Shares     Value  

State Street Navigator Securities Lending Government Money Market Portfolio, 0.03%(7)

    3,228,408     $ 3,228,408  

Total Securities Lending Collateral
(identified cost $3,228,408)

 

  $ 3,228,408  

Total Short-Term Investments
(identified cost $10,241,957)

 

  $ 10,241,957  

Total Investments — 100.3%
(identified cost $622,758,045)

 

  $ 924,364,895  

Other Assets, Less Liabilities — (0.3)%

 

  $ (2,703,211

Net Assets — 100.0%

 

  $ 921,661,684  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

 

(1) 

Non-income producing security.

 

(2) 

Represents an investment in an issuer that is deemed to be an affiliate effective March 1, 2021 (see Note 10).

 

(3) 

All or a portion of this security was on loan at August 31, 2021. The aggregate market value of securities on loan at August 31, 2021 was $7,560,586.

 

(4) 

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At August 31, 2021, the aggregate value of these securities is $6,451,376 or 0.7% of the Fund’s net assets.

 

 

  12   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

(5) 

The Fund is permitted to invest in certain Exchange-Traded Funds (ETFs) in excess of the limits set forth in the Investment Company Act of 1940, as amended, in reliance upon exemptive relief provided to the ETFs by the Securities and Exchange Commission and meeting certain conditions set forth in the exemptive orders.

 

(6) 

Affiliated investment company, available to Eaton Vance portfolios and funds, which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of August 31, 2021.

 

(7) 

Represents investment of cash collateral received in connection with securities lending.

 

Country Concentration of Portfolio

 

Country   Percentage
of Net Assets
    Value  

United States

    58.1   $ 535,417,294  

Brazil

    4.5       41,208,640  

Switzerland

    4.4       41,029,155  

Japan

    4.1       37,521,148  

Germany

    3.5       32,135,493  

France

    3.3       29,996,922  

United Kingdom

    3.1       28,250,586  

Canada

    3.0       27,831,199  

Australia

    1.6       14,366,365  

Sweden

    1.4       13,342,188  

Netherlands

    1.3       12,514,722  

Spain

    1.2       10,874,350  

Ireland

    1.0       9,025,344  

Hong Kong

    0.9       8,140,597  

Denmark

    0.6       5,914,202  

Mexico

    0.5       4,417,702  

Italy

    0.4       3,885,000  

Finland

    0.4       3,402,408  

Chile

    0.3       2,690,297  

China

    0.2       2,171,037  

South Korea

    0.1       1,402,517  

Exchange-Traded Funds

    6.4       58,827,729  

Total Investments

    100.3   $ 924,364,895  

Abbreviations:

 

ADR     American Depositary Receipt
GDR     Global Depositary Receipt
PC     Participation Certificate
PFC Shares     Preference Shares
 

 

  13   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Statement of Assets and Liabilities

 

 

Assets    August 31, 2021  

Unaffiliated investments, at value including $7,560,586 of securities on loan (identified cost, $615,273,820)

   $ 915,433,071  

Affiliated investments, at value (identified cost, $7,484,225)

     8,931,824  

Cash

     5,144  

Foreign currency, at value (identified cost, $32,254)

     32,182  

Dividends receivable

     1,221,272  

Dividends receivable from affiliated investments

     398  

Receivable for Fund shares sold

     516,254  

Securities lending income receivable

     2,472  

Tax reclaims receivable

     508,644  

Total assets

   $ 926,651,261  
Liabilities

 

Collateral for securities loaned

   $ 3,228,408  

Payable for Fund shares redeemed

     756,151  

Payable to affiliates:

  

Investment adviser and administration fee

     639,420  

Distribution and service fees

     88,396  

Accrued expenses

     277,202  

Total liabilities

   $ 4,989,577  

Net Assets

   $ 921,661,684  
Sources of Net Assets

 

Paid-in capital

   $ 542,423,051  

Distributable earnings

     379,238,633  

Total

   $ 921,661,684  
Class A Shares         

Net Assets

   $ 198,721,200  

Shares Outstanding

     9,307,234  

Net Asset Value and Redemption Price Per Share

  

(net assets ÷ shares of beneficial interest outstanding)

   $ 21.35  

Maximum Offering Price Per Share

  

(100 ÷ 94.25 of net asset value per share)

   $ 22.65  
Class C Shares

 

Net Assets

   $ 54,977,151  

Shares Outstanding

     2,631,090  

Net Asset Value and Offering Price Per Share*

  

(net assets ÷ shares of beneficial interest outstanding)

   $ 20.90  
Class I Shares

 

Net Assets

   $ 667,963,333  

Shares Outstanding

     31,215,725  

Net Asset Value, Offering Price and Redemption Price Per Share

  

(net assets ÷ shares of beneficial interest outstanding)

   $ 21.40  

On sales of $50,000 or more, the offering price of Class A shares is reduced.

 

*

Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.

 

  14   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Statement of Operations

 

 

Investment Income   

Year Ended

August 31, 2021

 

Dividends (net of foreign taxes, $726,354)

   $ 15,163,429  

Dividends from affiliated investments

     36,133  

Securities lending income, net

     160,363  

Other income

     154,996  

Total investment income

   $ 15,514,921  
Expenses

 

Investment adviser and administration fee

   $ 7,283,290  

Distribution and service fees

  

Class A

     446,799  

Class C

     590,495  

Trustees’ fees and expenses

     42,447  

Custodian fee

     236,486  

Transfer and dividend disbursing agent fees

     361,387  

Legal and accounting services

     65,303  

Printing and postage

     38,842  

Registration fees

     55,149  

Miscellaneous

     43,045  

Total expenses

   $ 9,163,243  

Net investment income

   $ 6,351,678  
Realized and Unrealized Gain (Loss)

 

Net realized gain (loss) —

  

Investment transactions

   $ 77,293,995  

Investment transactions — affiliated investments

     86  

Foreign currency transactions

     (812,539

Net realized gain

   $ 76,481,542  

Change in unrealized appreciation (depreciation) —

  

Investments

   $ 90,770,388  

Investments — affiliated investments

     506,177  

Foreign currency

     (18,241

Net change in unrealized appreciation (depreciation)

   $ 91,258,324  

Net realized and unrealized gain

   $ 167,739,866  

Net increase in net assets from operations

   $ 174,091,544  

 

  15   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Statements of Changes in Net Assets

 

 

     Year Ended August 31,  
Increase (Decrease) in Net Assets    2021      2020  

From operations —

     

Net investment income

   $ 6,351,678      $ 4,703,519  

Net realized gain

     76,481,542        25,220,961  

Net change in unrealized appreciation (depreciation)

     91,258,324        92,984,743  

Net increase in net assets from operations

   $ 174,091,544      $ 122,909,223  

Distributions to shareholders —

     

Class A

   $ (4,144,424    $ (9,807,505

Class C

     (1,207,416      (9,544,225

Class I

     (15,176,052      (45,268,987

Total distributions to shareholders

   $ (20,527,892    $ (64,620,717

Transactions in shares of beneficial interest —

     

Proceeds from sale of shares

     

Class A

   $ 24,453,555      $ 56,080,878  

Class C

     5,678,601        7,985,404  

Class I

     120,270,519        131,892,239  

Net asset value of shares issued to shareholders in payment of distributions declared

     

Class A

     2,069,861        6,332,662  

Class C

     941,717        4,912,453  

Class I

     7,225,360        22,002,483  

Cost of shares redeemed

     

Class A

     (28,691,189      (35,046,924

Class C

     (17,608,415      (73,303,177

Class I

     (119,155,717      (189,061,756

Net asset value of shares converted

     

Class A

     11,879,759        1,647,017  

Class C

     (11,879,759      (1,647,017

Net decrease in net assets from Fund share transactions

   $ (4,815,708    $ (68,205,738

Net increase (decrease) in net assets

   $ 148,747,944      $ (9,917,232
Net Assets

 

At beginning of year

   $ 772,913,740      $ 782,830,972  

At end of year

   $ 921,661,684      $ 772,913,740  

 

  16   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Financial Highlights

 

 

     Class A  
     Year Ended August 31,  
      2021      2020      2019      2018     2017  

Net asset value — Beginning of year

   $ 17.830      $ 16.500      $ 17.590      $ 16.720     $ 14.810  
Income (Loss) From Operations                                            

Net investment income(1)

   $ 0.123      $ 0.093      $ 0.100      $ 0.082     $ 0.115  

Net realized and unrealized gain (loss)

     3.853        2.675        (0.386      1.731       2.290  

Total income (loss) from operations

   $ 3.976      $ 2.768      $ (0.286    $ 1.813     $ 2.405  
Less Distributions                                            

From net investment income

   $ (0.084    $ (0.155    $ (0.003    $ (0.045   $ (0.120

From net realized gain

     (0.372      (1.283      (0.801      (0.898     (0.375

Total distributions

   $ (0.456    $ (1.438    $ (0.804    $ (0.943   $ (0.495

Net asset value — End of year

   $ 21.350      $ 17.830      $ 16.500      $ 17.590     $ 16.720  

Total Return(2)

     22.71      17.89      (1.29 )%       11.01     16.63
Ratios/Supplemental Data                                            

Net assets, end of year (000’s omitted)

   $ 198,721      $ 156,477      $ 117,095      $ 138,250     $ 144,164  

Ratios (as a percentage of average daily net assets):

             

Expenses

     1.21      1.26      1.26      1.23     1.25

Net investment income

     0.63      0.57      0.62      0.47     0.74

Portfolio Turnover

     31      29      69      43     24

 

(1) 

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges.

 

  17   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Financial Highlights — continued

 

 

     Class C  
     Year Ended August 31,  
      2021      2020      2019      2018     2017  

Net asset value — Beginning of year

   $ 17.500      $ 16.210      $ 17.350      $ 16.500     $ 14.610  
Income (Loss) From Operations                                            

Net investment loss(1)

   $ (0.029    $ (0.025    $ (0.020    $ (0.047   $ (0.001

Net realized and unrealized gain (loss)

     3.801        2.617        (0.386      1.703       2.267  

Total income (loss) from operations

   $ 3.772      $ 2.592      $ (0.406    $ 1.656     $ 2.266  
Less Distributions                                            

From net investment income

   $      $ (0.019    $      $     $ (0.001

From net realized gain

     (0.372      (1.283      (0.734      (0.806     (0.375

Total distributions

   $ (0.372    $ (1.302    $ (0.734    $ (0.806   $ (0.376

Net asset value — End of year

   $ 20.900      $ 17.500      $ 16.210      $ 17.350     $ 16.500  

Total Return(2)

     21.88      16.96      (2.05 )%       10.15     15.80
Ratios/Supplemental Data                                            

Net assets, end of year (000’s omitted)

   $ 54,977      $ 67,549      $ 124,789      $ 163,931     $ 164,218  

Ratios (as a percentage of average daily net assets):

             

Expenses

     1.96      2.01      2.01      1.98     2.00

Net investment loss

     (0.15 )%       (0.16 )%       (0.13 )%       (0.27 )%      (0.01 )% 

Portfolio Turnover

     31      29      69      43     24

 

(1) 

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges.

 

  18   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Financial Highlights — continued

 

 

     Class I  
     Year Ended August 31,  
      2021      2020      2019      2018     2017  

Net asset value — Beginning of year

   $ 17.850      $ 16.530      $ 17.630      $ 16.760     $ 14.840  
Income (Loss) From Operations                                            

Net investment income(1)

   $ 0.171      $ 0.134      $ 0.141      $ 0.128     $ 0.156  

Net realized and unrealized gain (loss)

     3.870        2.667        (0.393      1.730       2.300  

Total income (loss) from operations

   $ 4.041      $ 2.801      $ (0.252    $ 1.858     $ 2.456  
Less Distributions                                            

From net investment income

   $ (0.119    $ (0.198    $ (0.047    $ (0.090   $ (0.161

From net realized gain

     (0.372      (1.283      (0.801      (0.898     (0.375

Total distributions

   $ (0.491    $ (1.481    $ (0.848    $ (0.988   $ (0.536

Net asset value — End of year

   $ 21.400      $ 17.850      $ 16.530      $ 17.630     $ 16.760  

Total Return(2)

     23.09      18.11      (1.06 )%       11.27     16.99
Ratios/Supplemental Data                                            

Net assets, end of year (000’s omitted)

   $ 667,963      $ 548,888      $ 540,946      $ 722,505     $ 597,452  

Ratios (as a percentage of average daily net assets):

             

Expenses

     0.96      1.01      1.01      0.98     1.00

Net investment income

     0.87      0.83      0.87      0.74     1.00

Portfolio Turnover

     31      29      69      43     24

 

(1) 

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested.

 

  19   See Notes to Financial Statements.


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Notes to Financial Statements

 

 

1  Significant Accounting Policies

Eaton Vance Richard Bernstein Equity Strategy Fund (the Fund) is a diversified series of Eaton Vance Growth Trust (the Trust). The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. The Fund’s investment objective is to seek total return. The Fund offers three classes of shares. Class A shares are generally sold subject to a sales charge imposed at time of purchase. Class C shares are sold at net asset value and are generally subject to a contingent deferred sales charge (see Note 5). Effective January 25, 2019, Class C shares generally automatically convert to Class A shares ten years after their purchase and, effective November 5, 2020, automatically convert to Class A shares eight years after their purchase as described in the Fund’s prospectus. Class I shares are sold at net asset value and are not subject to a sales charge. Each class represents a pro-rata interest in the Fund, but votes separately on class-specific matters and (as noted below) is subject to different expenses. Realized and unrealized gains and losses and net investment income and losses, other than class-specific expenses, are allocated daily to each class of shares based on the relative net assets of each class to the total net assets of the Fund. Each class of shares differs in its distribution plan and certain other class-specific expenses.

The following is a summary of significant accounting policies of the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946.

A  Investment Valuation — The following methodologies are used to determine the market value or fair value of investments.

Equity Securities. Equity securities (common stocks and exchange-traded funds) listed on a U.S. securities exchange generally are valued at the last sale or closing price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and ask prices on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ National Market System generally are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and ask prices.

Foreign Securities and Currencies. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by a third party pricing service. The pricing service uses a proprietary model to determine the exchange rate. Inputs to the model include reported trades and implied bid/ask spreads. The daily valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. When valuing foreign equity securities that meet certain criteria, the Fund’s Trustees have approved the use of a fair value service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities.

Affiliated Fund. The Fund may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Eaton Vance Management (EVM). While Cash Reserves Fund is not a registered money market mutual fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the valuation day. Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service.

Other. Investments in registered investment companies (including money market funds) that do not trade on an exchange are valued at the net asset value per share on the valuation day.

Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Fund in a manner that most fairly reflects the security’s “fair value”, which is the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s or entity’s financial statements, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.

B  Investment Transactions — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.

C  Income — Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. Distributions from investment companies are recorded as dividend income, capital gains or return of capital based on the nature of the distribution. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Fund’s understanding of the applicable countries’ tax rules and rates. In consideration of recent decisions rendered by European courts, the Fund has filed additional tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. During the year ended August 31, 2021, the Fund received approximately $155,000 from Finland for previously withheld foreign taxes and interest thereon. Such amount is included in other income on the Statement of Operations. No other amounts for additional tax reclaims are reflected in the financial statements due to the uncertainty as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment.

 

  20  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

D  Federal Taxes — The Fund’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary.

As of August 31, 2021, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

E  Expenses — The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds. Expenses do not include the Fund’s pro rata share of the indirect expenses borne by the Fund from its investments in exchange-traded funds.

F  Foreign Currency Translation — Investment valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.

G  Use of Estimates — The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.

H  Indemnifications — Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Trust) could be deemed to have personal liability for the obligations of the Trust. However, the Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Trust shall assume, upon request by the shareholder, the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Fund enters into agreements with service providers that may contain indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.

2  Distributions to Shareholders and Income Tax Information

It is the present policy of the Fund to make at least one distribution annually (normally in December) of all or substantially all of its net investment income and to distribute annually all or substantially all of its net realized capital gains. Distributions to shareholders are recorded on the ex-dividend date. Distributions are declared separately for each class of shares. Shareholders may reinvest income and capital gain distributions in additional shares of the same class of the Fund at the net asset value as of the ex-dividend date or, at the election of the shareholder, receive distributions in cash. Distributions to shareholders are determined in accordance with income tax regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.

The tax character of distributions declared for the years ended August 31, 2021 and August 31, 2020 was as follows:

 

     Year Ended August 31,  
      2021      2020  

Ordinary income

   $ 4,430,468      $ 7,248,664  

Long-term capital gains

   $ 16,097,424      $ 57,372,053  

During the year ended August 31, 2021, distributable earnings was decreased by $3,917,228 and paid-in capital was increased by $3,917,228 due to differences between book and tax accounting for certain corporate actions and the Fund’s use of equalization accounting. Tax equalization accounting allows the Fund to treat as a distribution that portion of redemption proceeds representing a redeeming shareholder’s portion of undistributed taxable income and net capital gains. These reclassifications had no effect on the net assets or net asset value per share of the Fund.

 

  21  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

As of August 31, 2021, the components of distributable earnings (accumulated loss) on a tax basis were as follows:

 

   

Undistributed ordinary income

   $ 15,068,890  

Undistributed long-term capital gains

     63,937,756  

Net unrealized appreciation

     300,231,987  

Distributable earnings

   $ 379,238,633  

The cost and unrealized appreciation (depreciation) of investments of the Fund at August 31, 2021, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

   $ 624,152,902  

Gross unrealized appreciation

   $ 310,059,560  

Gross unrealized depreciation

     (9,847,567

Net unrealized appreciation

   $ 300,211,993  

3  Investment Adviser and Administration Fee and Other Transactions with Affiliates

The investment adviser and administration fee is earned by EVM as compensation for investment advisory and administrative services rendered to the Fund. The fee is computed as a percentage of the Fund’s average daily net assets and is payable monthly. On March 1, 2021, Morgan Stanley acquired Eaton Vance Corp. (the “Transaction”) and EVM became an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, the Fund entered into a new investment advisory and administrative agreement (the “New Agreement”) with EVM, which took effect on March 1, 2021. Pursuant to the New Agreement, the fee was computed at the same annual rates as the Fund’s investment advisory and administrative agreement with EVM in effect prior to March 1, 2021. Pursuant to an amendment to the New Agreement, which took effect on May 1, 2021, EVM contractually agreed to reduce its investment advisory and administrative fee. The annual fee rates pursuant to the New Agreement and amendment to the New Agreement are as follows:

 

Average Daily Net Assets   

Annual Fee Rate

(Prior to May 1, 2021)

    

Annual Fee Rate

(Effective May 1, 2021)

 

Up to $500 million

     0.900      0.850

$500 million but less than $1 billion

     0.850      0.800

$1 billion but less than $2.5 billion

     0.825      0.775

$2.5 billion but less than $5 billion

     0.800      0.750

$5 billion and over

     0.780      0.730

For the year ended August 31, 2021, the investment adviser and administration fee amounted to $7,283,290 or 0.86% of the Fund’s average daily net assets. Pursuant to an investment sub-advisory agreement, EVM has delegated the investment management of the Fund to Richard Bernstein Advisors LLC (RBA). In connection with the Transaction, EVM entered into a new investment sub-advisory agreement with RBA, which took effect on March 1, 2021. Subsequently, EVM entered into an amended sub-advisory agreement, which took effect on May 1, 2021. EVM pays RBA a portion of its investment adviser and administration fee for sub-advisory services provided to the Fund. The Fund may invest its cash in Cash Reserves Fund. EVM does not currently receive a fee for advisory services provided to Cash Reserves Fund.

EVM provides sub-transfer agency and related services to the Fund pursuant to a Sub-Transfer Agency Support Services Agreement. For the year ended August 31, 2021, EVM earned $385 from the Fund pursuant to such agreement, which is included in transfer and dividend disbursing agent fees on the Statement of Operations. The Fund was informed that Eaton Vance Distributors, Inc. (EVD), an affiliate of EVM and the Fund’s principal underwriter, received $7,608 as its portion of the sales charge on sales of Class A shares for the year ended August 31, 2021. Morgan Stanley affiliated broker-dealers, which may be deemed to be affiliates of EVM and EVD, also received a portion of the sales charge on sales of Class A shares from March 1, 2021 through August 31, 2021 in the amount of less than $100. EVD also received distribution and service fees from Class A and Class C shares (see Note 4) and contingent deferred sales charges (see Note 5).

 

  22  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

Trustees and officers of the Fund who are members of EVM’s organization receive remuneration for their services to the Fund out of the investment adviser and administration fee. Trustees of the Fund who are not affiliated with EVM may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended August 31, 2021, no significant amounts have been deferred. Certain officers and Trustees of the Fund are officers of EVM.

4  Distribution Plans

The Fund has in effect a distribution plan for Class A shares (Class A Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class A Plan, the Fund pays EVD a distribution and service fee of 0.25% per annum of its average daily net assets attributable to Class A shares for distribution services and facilities provided to the Fund by EVD, as well as for personal services and/or the maintenance of shareholder accounts. Distribution and service fees paid or accrued to EVD for the year ended August 31, 2021 amounted to $446,799 for Class A shares.

The Fund also has in effect a distribution plan for Class C shares (Class C Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class C Plan, the Fund pays EVD amounts equal to 0.75% per annum of its average daily net assets attributable to Class C shares for providing ongoing distribution services and facilities to the Fund. For the year ended August 31, 2021, the Fund paid or accrued to EVD $442,871 for Class C shares.

Pursuant to the Class C Plan, the Fund also makes payments of service fees to EVD, financial intermediaries and other persons in amounts equal to 0.25% per annum of its average daily net assets attributable to that class. Service fees paid or accrued are for personal services and/or the maintenance of shareholder accounts. They are separate and distinct from the sales commissions and distribution fees payable to EVD. Service fees paid or accrued for the year ended August 31, 2021 amounted to $147,624 for Class C shares.

Distribution and service fees are subject to the limitations contained in the Financial Industry Regulatory Authority Rule 2341(d).

5  Contingent Deferred Sales Charges

A contingent deferred sales charge (CDSC) of 1% generally is imposed on redemptions of Class C shares made within 12 months of purchase. Class A shares may be subject to a 1% CDSC if redeemed within 18 months of purchase (depending on the circumstances of purchase). Generally, the CDSC is based upon the lower of the net asset value at date of redemption or date of purchase. No charge is levied on shares acquired by reinvestment of dividends or capital gain distributions. For the year ended August 31, 2021, the Fund was informed that EVD received approximately $400 and $2,000 of CDSCs paid by Class A and Class C shareholders, respectively.

6  Purchases and Sales of Investments

Purchases and sales of investments, other than short-term obligations, aggregated $263,456,577 and $256,026,383, respectively, for the year ended August 31, 2021.

7  Shares of Beneficial Interest

The Fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Such shares may be issued in a number of different series (such as the Fund) and classes. Transactions in Fund shares were as follows:

 

     Year Ended August 31,  
Class A    2021      2020  

Sales

     1,259,226        3,390,625  

Issued to shareholders electing to receive payments of distributions in Fund shares

     112,554        400,801  

Redemptions

     (1,469,157      (2,212,581

Converted from Class C shares

     626,600        101,728  

Net increase

     529,223        1,680,573  

 

  23  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

     Year Ended August 31,  
Class C    2021      2020  

Sales

     294,735        507,083  

Issued to shareholders electing to receive payments of distributions in Fund shares

     52,029        314,901  

Redemptions

     (935,799      (4,558,084

Converted to Class A shares

     (638,877      (103,424

Net decrease

     (1,227,912      (3,839,524
     Year Ended August 31,  
Class I    2021      2020  

Sales

     6,200,703        8,674,234  

Issued to shareholders electing to receive payments of distributions in Fund shares

     392,683        1,393,444  

Redemptions

     (6,121,586      (12,056,796

Net increase (decrease)

     471,800        (1,989,118

8  Line of Credit

The Fund participates with other portfolios and funds managed by EVM and its affiliates in an $800 million unsecured line of credit agreement with a group of banks, which is in effect through October 26, 2021. Borrowings are made by the Fund solely for temporary purposes related to redemptions and other short-term cash needs. Interest is charged to the Fund based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.15% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. In connection with the renewal of the agreement in October 2020, an upfront fee and arrangement fee totaling $950,000 was incurred that was allocated to the participating portfolios and funds. Because the line of credit is not available exclusively to the Fund, it may be unable to borrow some or all of its requested amounts at any particular time. The Fund did not have any significant borrowings or allocated fees during the year ended August 31, 2021.

9  Securities Lending Agreement

The Fund has established a securities lending agreement with State Street Bank and Trust Company (SSBT) as securities lending agent in which the Fund lends portfolio securities to qualified borrowers in exchange for collateral consisting of either cash or securities issued or guaranteed by the U.S. government or its agencies or instrumentalities in an amount at least equal to the market value of the securities on loan. The market value of securities loaned is determined daily and any additional required collateral is delivered to the Fund on the next business day. Cash collateral is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market fund registered under the 1940 Act. The Fund earns interest on the amount invested but it must pay (and at times receive from) the broker a loan rebate fee computed as a varying percentage of the collateral received. For security loans secured by non-cash collateral, the Fund earns a negotiated lending fee from the borrower. A portion of the income earned by the Fund from its investment of cash collateral, net of rebate fees, and lending fees received is allocated to SSBT for its services as lending agent and the portion allocated to the Fund is presented as securities lending income, net on the Statement of Operations. Non-cash collateral is held by the lending agent on behalf of the Fund and cannot be sold or re-pledged by the Fund; accordingly, such collateral is not reflected in the Statement of Assets and Liabilities.

The Fund is subject to possible delay in the recovery of loaned securities. Pursuant to the securities lending agreement, SSBT has provided indemnification to the Fund in the event of default by a borrower with respect to a loan. The Fund bears the risk of loss with respect to the investment of cash collateral.

At August 31, 2021, the value of the securities loaned and the value of the collateral received, which exceeded the value of the securities loaned, amounted to $7,560,586 and $8,041,607, respectively. Collateral received was comprised of cash of $3,228,408 and U.S. government and/or agencies securities of $4,813,199. The securities lending transactions have no contractual maturity date and each of the Fund and borrower has the option to terminate a loan at any time.

 

  24  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

The following table provides a breakdown of securities lending transactions accounted for as secured borrowings, the obligations by class of collateral pledged, and the remaining contractual maturity of those transactions as of August 31, 2021.

 

     Remaining Contractual Maturity of the Transactions  
      Overnight and
Continuous
     <30 days      30 to 90 days      >90 days      Total  

Common Stocks

   $ 3,228,408      $         —      $         —      $         —      $ 3,228,408  

The carrying amount of the liability for collateral for securities loaned at August 31, 2021 approximated its fair value. If measured at fair value, such liability would have been considered as Level 2 in the fair value hierarchy (see Note 11) at August 31, 2021.

10  Investments in Affiliated Issuers and Funds

At August 31, 2021, the value of the Fund’s investment in affiliated issuers and funds was $8,931,824, which represents 1.0% of the Fund’s net assets. Transactions in affiliated issuers and funds by the Fund for the year ended August 31, 2021 were as follows:

 

Name   Value,
beginning
of period
    Purchases    

Sales

proceeds

    Net
realized
gain (loss)
    Change in
unrealized
appreciation
(depreciation)
    Value, end
of period
    Dividend
income
   

Shares/

Units, end

of period

 

Common Stocks

               

Morgan Stanley(1)

  $     $     $     $     $ 506,250     $ 1,918,275     $ 19,288       18,369  

Short-Term Investments

               

Eaton Vance Cash Reserves Fund, LLC

    34,771,375       135,894,063       (163,651,902     86       (73     7,013,549       16,845       7,013,549  

Totals

                          $ 86     $ 506,177     $ 8,931,824     $ 36,133          

 

(1)  

Affiliated issuer as of March 1, 2021 (see Note 3).

11  Fair Value Measurements

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

 

Level 1 – quoted prices in active markets for identical investments

 

 

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

 

Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

  25  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

At August 31, 2021, the hierarchy of inputs used in valuing the Fund’s investments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Common Stocks

           

Communication Services

   $ 47,696,621      $ 3,671,969      $         —      $ 51,368,590  

Consumer Discretionary

     57,413,337        14,744,061               72,157,398  

Consumer Staples

     26,138,567        28,789,118               54,927,685  

Energy

     46,611,520        9,242,808               55,854,328  

Financials

     148,292,377        47,578,700               195,871,077  

Health Care

     50,367,366        16,992,527               67,359,893  

Industrials

     77,853,675        29,812,294               107,665,969  

Information Technology

     116,983,377        23,315,282               140,298,659  

Materials

     29,103,308        48,076,157               77,179,465  

Real Estate

     13,894,250        11,702,343               25,596,593  

Utilities

     1,553,848        5,461,704               7,015,552  

Total Common Stocks

   $ 615,908,246      $ 239,386,963    $      $ 855,295,209  

Exchange-Traded Funds

   $ 58,827,729      $      $      $ 58,827,729  

Short-Term Investments —

           

Affiliated Fund

            7,013,549               7,013,549  

Securities Lending Collateral

     3,228,408                      3,228,408  

Total Investments

   $ 677,964,383      $ 246,400,512      $      $ 924,364,895  

 

*

Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets.

12  Risks and Uncertainties

Risks Associated with Foreign Investments

Foreign investments can be adversely affected by political, economic and market developments abroad, including the imposition of economic and other sanctions by the United States or another country. There may be less publicly available information about foreign issuers because they may not be subject to reporting practices, requirements or regulations comparable to those to which United States companies are subject. Foreign markets may be smaller, less liquid and more volatile than the major markets in the United States. Trading in foreign markets typically involves higher expense than trading in the United States. The Fund may have difficulties enforcing its legal or contractual rights in a foreign country. Securities that trade or are denominated in currencies other than the U.S. dollar may be adversely affected by fluctuations in currency exchange rates.

Pandemic Risk

An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so in significant and unforeseen ways, as may other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Fund’s performance, or the performance of the securities in which the Fund invests.

 

  26  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Report of Independent Registered Public Accounting Firm

 

 

To the Trustees of Eaton Vance Growth Trust and Shareholders of Eaton Vance Richard Bernstein Equity Strategy Fund:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of Eaton Vance Richard Bernstein Equity Strategy Fund (the “Fund”) (one of the funds constituting Eaton Vance Growth Trust), including the portfolio of investments, as of August 31, 2021, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of August 31, 2021, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

October 19, 2021

We have served as the auditor of one or more Eaton Vance investment companies since 1959.

 

  27  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Federal Tax Information (Unaudited)

 

 

The Form 1099-DIV you receive in February 2022 will show the tax status of all distributions paid to your account in calendar year 2021. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Fund. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding the status of qualified dividend income for individuals, the dividends received deduction for corporations and capital gains dividends.

Qualified Dividend Income.  For the fiscal year ended August 31, 2021, the Fund designates approximately $14,516,548, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend income eligible for the reduced tax rate of 15%.

Dividends Received Deduction.  Corporate shareholders are generally entitled to take the dividends received deduction on the portion of the Fund’s dividend distribution that qualifies under tax law. For the Fund’s fiscal 2021 ordinary income dividends, 87.14% qualifies for the corporate dividends received deduction.

Capital Gains Dividends.  The Fund hereby designates as a capital gain dividend with respect to the taxable year ended August 31, 2021, $68,118,893 or, if subsequently determined to be different, the net capital gain of such year.

 

  28  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Liquidity Risk Management Program

 

 

The Fund has implemented a written liquidity risk management program (Program) and related procedures to manage its liquidity in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (Liquidity Rule). The Liquidity Rule defines “liquidity risk” as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of the remaining investors’ interests in the fund. The Fund’s Board of Trustees/Directors has designated the investment adviser to serve as the administrator of the Program and the related procedures. The administrator has established a Liquidity Risk Management Oversight Committee (Committee) to perform the functions necessary to administer the Program. As part of the Program, the administrator is responsible for identifying illiquid investments and categorizing the relative liquidity of the Fund’s investments in accordance with the Liquidity Rule. Under the Program, the administrator assesses, manages, and periodically reviews the Fund’s liquidity risk, and is responsible for making certain reports to the Fund’s Board of Trustees/Directors and the Securities and Exchange Commission (SEC) regarding the liquidity of the Fund’s investments, and to notify the Board of Trustees/Directors and the SEC of certain liquidity events specified in the Liquidity Rule. The liquidity of the Fund’s portfolio investments is determined based on a number of factors including, but not limited to, relevant market, trading and investment-specific considerations under the Program.

At a meeting of the Fund’s Board of Trustees/Directors on June 8, 2021, the Committee provided a written report to the Fund’s Board of Trustees/Directors pertaining to the operation, adequacy, and effectiveness of implementation of the Program, as well as the operation of the highly liquid investment minimum (if applicable) for the period January 1, 2020 through December 31, 2020 (Review Period). The Program operated effectively during the Review Period, supporting the administrator’s ability to assess, manage and monitor Fund liquidity risk, including during periods of market volatility and net redemptions. During the Review Period, the Fund met redemption requests on a timely basis.

There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.

 

  29  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Management and Organization

 

 

Fund Management.  The Trustees of Eaton Vance Growth Trust (the Trust) are responsible for the overall management and supervision of the Trust’s affairs. The Trustees and officers of the Trust are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Trustees and officers of the Trust hold indefinite terms of office. The “Noninterested Trustees” consist of those Trustees who are not “interested persons” of the Trust, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, “EVC” refers to Eaton Vance Corp., “EV” refers to EV LLC, “EVM” refers to Eaton Vance Management, “BMR” refers to Boston Management and Research and “EVD” refers to Eaton Vance Distributors, Inc. EV is the trustee of each of EVM and BMR. Effective March 1, 2021, each of EVM, BMR, EVD and EV are indirect, wholly owned subsidiaries of Morgan Stanley. Each officer affiliated with EVM may hold a position with other EVM affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 138 portfolios (with the exception of Messrs. Faust and Wennerholm and Ms. Frost who oversee 137 portfolios) in the Eaton Vance Complex (including all master and feeder funds in a master feeder structure). Each officer serves as an officer of certain other Eaton Vance funds. Each Trustee and officer serves until his or her successor is elected.

 

Name and Year of Birth    Trust
Position(s)
    

Trustee

Since(1)

    

Principal Occupation(s) and Other Directorships

During Past Five Years and Other Relevant Experience

Interested Trustee

Thomas E. Faust Jr.

1958

   Trustee      2007     

Chairman of Morgan Stanley Investment Management, Inc. (MSIM), member of the Board of Managers and President of EV, Chief Executive Officer of EVM and BMR, and Director of EVD. Formerly, Chairman, Chief Executive Officer and President of EVC. Trustee and/or officer of 137 registered investment companies. Mr. Faust is an interested person because of his positions with MSIM, BMR, EVM, EVD, and EV, which are affiliates of the Trust, and his former position with EVC, which was an affiliate of the Trust prior to March 1, 2021.

Other Directorships in the Last Five Years. Formerly, Director of EVC (2007-2021) and Hexavest Inc. (investment management firm) (2012-2021).

Noninterested Trustees

Mark R. Fetting

1954

   Trustee      2016     

Private investor. Formerly held various positions at Legg Mason, Inc. (investment management firm) (2000-2012), including President, Chief Executive Officer, Director and Chairman (2008-2012), Senior Executive Vice President (2004-2008) and Executive Vice President (2001-2004). Formerly, President of Legg Mason family of funds (2001-2008). Formerly, Division President and Senior Officer of Prudential Financial Group, Inc. and related companies (investment management firm) (1991-2000).

Other Directorships in the Last Five Years. None.

Cynthia E. Frost

1961

   Trustee      2014     

Private investor. Formerly, Chief Investment Officer of Brown University (university endowment) (2000-2012). Formerly, Portfolio Strategist for Duke Management Company (university endowment manager) (1995-2000). Formerly, Managing Director, Cambridge Associates (investment consulting company) (1989-1995). Formerly, Consultant, Bain and Company (management consulting firm) (1987-1989). Formerly, Senior Equity Analyst, BA Investment Management Company (1983-1985).

Other Directorships in the Last Five Years. None.

George J. Gorman

1952

   Chairperson of the Board and Trustee      2021 (Chairperson) and 2014 (Trustee)     

Principal at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting firm) (1974-2009).

Other Directorships in the Last Five Years. None.

Valerie A. Mosley

1960

   Trustee      2014     

Chairwoman and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Founder of Upward Wealth, Inc., dba BrightUP, a fintech platform. Formerly, Partner and Senior Vice President, Portfolio Manager and Investment Strategist at Wellington Management Company, LLP (investment management firm) (1992-2012). Formerly, Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990).

Other Directorships in the Last Five Years. Director of DraftKings, Inc. (digital sports entertainment and gaming company) (since September 2020). Director of Groupon, Inc. (e-commerce provider) (since April 2020). Director of Envestnet, Inc. (provider of intelligent systems for wealth management and financial wellness) (since 2018). Formerly, Director of Dynex Capital, Inc. (mortgage REIT) (2013-2020).

 

  30  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Management and Organization — continued

 

 

Name and Year of Birth    Trust
Position(s)
    

Trustee

Since(1)

    

Principal Occupation(s) and Other Directorships

During Past Five Years and Other Relevant Experience

Noninterested Trustees (continued)

William H. Park

1947

   Trustee      2003     

Private investor. Formerly, Consultant (management and transactional) (2012-2014). Formerly, Chief Financial Officer, Aveon Group L.P. (investment management firm) (2010-2011). Formerly, Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005). Formerly, Executive Vice President and Chief Financial Officer, United Asset Management Corporation (investment management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now PricewaterhouseCoopers) (a registered public accounting firm) (1972-1981).

Other Directorships in the Last Five Years. None.

Helen Frame Peters

1948

   Trustee      2008     

Professor of Finance, Carroll School of Management, Boston College. Formerly, Dean, Carroll School of Management, Boston College (2000-2002). Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income, Colonial Management Associates (investment management firm) (1991-1998).

Other Directorships in the Last Five Years. None.

Keith Quinton

1958

   Trustee      2018     

Private investor, researcher and lecturer. Formerly, Independent Investment Committee Member at New Hampshire Retirement System (2017-2021). Formerly, Portfolio Manager and Senior Quantitative Analyst at Fidelity Investments (investment management firm) (2001-2014).

Other Directorships in the Last Five Years. Formerly, Director (2016-2021) and Chairman (2019-2021) of New Hampshire Municipal Bond Bank.

Marcus L. Smith

1966

   Trustee      2018     

Private investor. Formerly, Portfolio Manager at MFS Investment Management (investment management firm) (1994-2017).

Other Directorships in the Last Five Years. Director of First Industrial Realty Trust, Inc. (an industrial REIT) (since 2021). Director of MSCI Inc. (global provider of investment decision support tools) (since 2017). Formerly, Director of DCT Industrial Trust Inc. (logistics real estate company) (2017-2018).

Susan J. Sutherland

1957

   Trustee      2015     

Private investor. Director of Ascot Group Limited and certain of its subsidiaries (insurance and reinsurance) (since 2017). Formerly, Director of Hagerty Holding Corp. (insurance) (2015-2018) and Montpelier Re Holdings Ltd. (insurance and reinsurance) (2013-2015). Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013).

Other Directorships in the Last Five Years. Director of Kairos Acquisition Corp. (insurance/InsurTech acquisition company) (since 2021).

Scott E. Wennerholm

1959

   Trustee      2016     

Private investor. Formerly, Trustee at Wheelock College (postsecondary institution) (2012-2018). Formerly, Consultant at GF Parish Group (executive recruiting firm) (2016-2017). Formerly, Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm) (2005-2011). Formerly, Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm) (1997-2004). Formerly, Vice President at Fidelity Investments Institutional Services (investment management firm) (1994-1997).

Other Directorships in the Last Five Years. None.

 

Name and Year of Birth    Trust
Position(s)
     Officer
Since
(2)
    

Principal Occupation(s)

During Past Five Years

Principal Officers who are not Trustees

Eric A. Stein

1980

   President      2020      Vice President and Chief Investment Officer, Fixed Income of EVM and BMR. Prior to November 1, 2020, Mr. Stein was a co-Director of Eaton Vance’s Global Income Investments. Also Vice President of Calvert Research and Management (“CRM”).

Deidre E. Walsh

1971

   Vice President and Chief Legal Officer      2009      Vice President of EVM and BMR. Also Vice President of CRM.

James F. Kirchner

1967

   Treasurer      2007      Vice President of EVM and BMR. Also Vice President of CRM.

 

  31  


Eaton Vance

Richard Bernstein Equity Strategy Fund

August 31, 2021

 

Management and Organization — continued

 

 

Name and Year of Birth    Trust
Position(s)
     Officer
Since
(2)
    

Principal Occupation(s)

During Past Five Years

Principal Officers who are not Trustees (continued)

Kimberly M. Roessiger

1985

   Secretary      2021      Vice President of EVM and BMR.

Richard F. Froio

1968

   Chief Compliance Officer      2017      Vice President of EVM and BMR since 2017. Formerly, Deputy Chief Compliance Officer (Adviser/Funds) and Chief Compliance Officer (Distribution) at PIMCO (2012-2017) and Managing Director at BlackRock/Barclays Global Investors (2009-2012).

 

(1) 

Year first appointed to serve as Trustee for a fund in the Eaton Vance family of funds. Each Trustee has served continuously since appointment unless indicated otherwise.

(2) 

Year first elected to serve as officer of a fund in the Eaton Vance family of funds when the officer has served continuously. Otherwise, year of most recent election as an officer of a fund in the Eaton Vance family of funds. Titles may have changed since initial election.

The SAI for the Fund includes additional information about the Trustees and officers of the Fund and can be obtained without charge on Eaton Vance’s website at www.eatonvance.com or by calling 1-800-262-1122.

 

  32  


Eaton Vance Funds

 

Privacy Notice    April 2021

 

 

FACTS    WHAT DOES EATON VANCE DO WITH YOUR
PERSONAL INFORMATION?
      
  
Why?    Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
   
      
What?   

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

 

   Social Security number and income

   investment experience and risk tolerance

   checking account number and wire transfer instructions

   
      
How?    All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing.
   
      

 

Reasons we can share your
personal information
   Does Eaton Vance share?    Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus    Yes    No
For our marketing purposes — to offer our products and services to you    Yes    No
For joint marketing with other financial companies    No    We don’t share
For our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness    Yes    Yes
For our affiliates’ everyday business purposes — information about your transactions and experiences    Yes    No
For our affiliates’ everyday business purposes — information about your creditworthiness    No    We don’t share
For our investment management affiliates to market to you    Yes    Yes
For our affiliates to market to you    No    We don’t share
For nonaffiliates to market to you    No    We don’t share

 

To limit our sharing   

Call toll-free 1-800-262-1122 or email: [email protected]

 

Please note:

 

If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.

   
      
   
Questions?    Call toll-free 1-800-262-1122 or email: [email protected]
   
      

 

  33  


Eaton Vance Funds

 

Privacy Notice — continued    April 2021

 

 

Page 2     

 

Who we are
Who is providing this notice?   Eaton Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below)
What we do
How does Eaton Vance protect my personal information?   To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does Eaton Vance collect my personal information?  

We collect your personal information, for example, when you

 

   open an account or make deposits or withdrawals from your account

   buy securities from us or make a wire transfer

   give us your contact information

 

We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Why can’t I limit all sharing?  

Federal law gives you the right to limit only

 

   sharing for affiliates’ everyday business purposes — information about your creditworthiness

   affiliates from using your information to market to you

   sharing for nonaffiliates to market to you

 

State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Definitions
Investment Management Affiliates   Eaton Vance Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates  

Companies related by common ownership or control. They can be financial and nonfinancial companies.

 

   Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.

Nonaffiliates  

Companies not related by common ownership or control. They can be financial and nonfinancial companies.

 

   Eaton Vance does not share with nonaffiliates so they can market to you.

Joint marketing  

A formal agreement between nonaffiliated financial companies that together market financial products or services to you.

 

   Eaton Vance doesn’t jointly market.

Other important information

Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information.

 

California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

 

  34  


Eaton Vance Funds

 

IMPORTANT NOTICES

 

 

Delivery of Shareholder Documents.  The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial intermediary, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial intermediary. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by Eaton Vance or your financial intermediary.

Portfolio Holdings.  Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) files a schedule of portfolio holdings on Part F to Form N-PORT with the SEC. Certain information filed on Form N-PORT may be viewed on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov.

Proxy Voting.  From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.

 

  35  


This Page Intentionally Left Blank


Investment Adviser and Administrator

Eaton Vance Management

Two International Place

Boston, MA 02110

Investment Sub-Adviser

Richard Bernstein Advisors LLC

1251 Avenue of the Americas

Suite 4102

New York, NY 10020

Principal Underwriter*

Eaton Vance Distributors, Inc.

Two International Place

Boston, MA 02110

(617) 482-8260

Custodian

State Street Bank and Trust Company

State Street Financial Center, One Lincoln Street

Boston, MA 02111

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Attn: Eaton Vance Funds

P.O. Box 9653

Providence, RI 02940-9653

(800) 262-1122

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

200 Berkeley Street

Boston, MA 02116-5022

Fund Offices

Two International Place

Boston, MA 02110

 
*

FINRA BrokerCheck.  Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to investors at www.FINRA.org.


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4887    8.31.21


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Eaton Vance

Worldwide Health Sciences Fund

Annual Report

August 31, 2021

 

 

 

LOGO


 

 

Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (“CFTC”) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The investment adviser has claimed an exclusion from the definition of “commodity pool operator” under the Commodity Exchange Act with respect to its management of the Fund. Accordingly, neither the Fund nor the adviser with respect to the operation of the Fund is subject to CFTC regulation. Because of its management of other strategies, the Fund’s adviser is registered with the CFTC as a commodity pool operator. The adviser is also registered as a commodity trading advisor.

Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.

This report must be preceded or accompanied by a current summary prospectus or prospectus. Before investing, investors should consider carefully the investment objective, risks, and charges and expenses of a mutual fund. This and other important information is contained in the summary prospectus and prospectus, which can be obtained from a financial intermediary. Prospective investors should read the prospectus carefully before investing. For further information, please call 1-800-262-1122.


Annual Report August 31, 2021

Eaton Vance

Worldwide Health Sciences Fund

 

Table of Contents

  

Management’s Discussion of Fund Performance

     2  

Performance

     3  

Fund Profile

     4  

Endnotes and Additional Disclosures

     5  

Fund Expenses

     6  

Financial Statements

     7  

Report of Independent Registered Public Accounting Firm

     23  

Federal Tax Information

     24  

Liquidity Risk Management Program

     25  

Management and Organization

     26  

Privacy Notice

     29  

Important Notices

     31  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Management’s Discussion of Fund Performance1

 

 

Economic and Market Conditions

The 12-month period starting September 1, 2020, was notable for a widespread global equity rally that began in November 2020, paused in January 2021, and then continued almost unabated through the end of the period. Broad-market stock indexes posted strong double-digit returns as investors cheered the re-opening of businesses that had been closed or hobbled by COVID-19 the previous spring, along with the rollout of several effective vaccines.

The news was not all good, however, as the path of the virus continued to have a firm grip on the global economy, as a third and fourth wave of COVID infections coursed through nations across the globe. COVID concerns were largely responsible for equity market downturns in September and October 2020. For the rest of the period, COVID worries sparked several steep, but brief, market retreats.

Worker shortages due to illness, as well as reluctance to return to work for fear of contracting the virus, led to global supply chain issues throughout the period. From computer chips to shipping containers, scarcities of key items led to temporary factory shutdowns, empty store shelves, and car dealers short of vehicles to sell. In the U.S. in particular, shortages — combined with high demand from consumers — led to higher year-over-year inflation than the economy had seen in years. While U.S. Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen expressed the view that inflation in 2021 would likely be transitory, inflation became a key concern for investors during the period.

The health care sector lagged the broader global equity market during the period, as investor optimism around COVID-19 vaccine rollouts and economic re-openings favored more cyclical sectors such as financials, energy, and industrials. Meanwhile, sectors traditionally viewed as more defensive in potential down markets — including consumer staples, utilities, and health care — trailed the overall equity market. Within health care, the pharmaceuticals industry lagged the broader market and dampened sector returns. The life sciences tools and services industry fared the best within health care, as many companies in that industry saw increased business from COVID-19 testing and vaccine development.

For the 12-month period as a whole, the MSCI World Index, a broad measure of global equities, returned 29.76%; while the S&P 500® Index, a broad measure of U.S. stocks, returned 31.17%; and the technology-laden Nasdaq Composite Index rose 30.49%. The MSCI EAFE Index of developed-market international equities returned 26.12%, while the MSCI Emerging Markets Index returned 21.12%.

Fund Performance

For the 12-month period ended August 31, 2021, Eaton Vance Worldwide Health Sciences Fund (the Fund) returned 22.58% for Class A shares at net asset value (NAV), underperforming its primary benchmark, the MSCI World Health Care Index (the Index), which returned 23.46%.

On an industry basis, the main detractors from Fund performance versus the Index were stock selections in biotechnology, health care equipment and health care supplies. Within biotechnology, underweighting drug developer Moderna, Inc. (Moderna), relative to the Index, detracted from performance versus the Index. Moderna’s stock price advanced during the period after it developed one of two authorized COVID-19 vaccines based on groundbreaking mRNA — messenger ribonucleic acid — technology. The Fund’s overweight position in biotechnology firm Vertex Pharmaceuticals, Inc. (Vertex), which focuses on developing small molecule drugs for patients with serious diseases like cystic fibrosis and cancer, hurt relative returns as well. The stock declined in price after Vertex reported a disappointing clinical trial for a liver treatment drug. By period-end, Vertex was sold from the Fund. In health care supplies, the Fund’s overweight position in Haemonetics Corp. (Haemonetics), which develops products related to blood diseases, also hurt relative returns versus the Index. Haemonetics’ share price dropped sharply in April 2021 after a key customer failed to renew its plasma collection contract. By period-end, Haemonetics was sold from the Fund.

Elsewhere in the sector, not owning Index component and aesthetic dental products maker Align Technology, Inc. (Align) detracted from performance versus the Index as well. As dentists and orthodontists reopened their offices after pandemic-induced shutdowns, Align’s stock price rose on strong sales of its products.

In contrast, stock selections in the pharmaceuticals, health care technology, and health care services industries contributed to Fund performance versus the Index. In pharmaceuticals, the Fund’s overweight position in Eli Lilly & Co., a global drug maker specializing in diabetes, oncology, and immunology therapies, rose in price on positive test data for its next-generation diabetes drug. Also in pharmaceuticals, the Fund benefited from not owning Bayer AG (Bayer), a Germany-headquartered producer of pharmaceutical, consumer, animal, and crop health products. Bayer’s stock price declined during the period after the company lowered its earnings outlook for its crop sciences business as a result of the COVID-19 pandemic.

In the health care technology sector, the Fund’s overweight position in software firm Phreesia, Inc. (Phreesia) rose in value during the period. COVID vaccinations and the resumption of in-person medical appointments increased demand for the company’s health care appointment, registration, and clinical information programs for medical offices. By period-end, Phreesia was sold from the Fund. An overweight position in R1 RCM, Inc. (R1), which helps health care providers manage revenue cycles, contributed to performance versus the Index in the health care services industry. R1’s stock price rose as the company won several large new contracts during the period.

 

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to eatonvance.com.

 

  2  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Performance2,3

 

Portfolio Managers Jason Kritzer, CFA, of Eaton Vance Management and Samantha Pandolfi, CFA, of Eaton Vance Advisers International Ltd.

 

% Average Annual Total Returns    Class
Inception Date
     Performance
Inception Date
    One Year      Five Years      Ten Years  

Class A at NAV

     07/26/1985        07/26/1985       22.58      13.66      15.09

Class A with 5.75% Maximum Sales Charge

                  15.50        12.32        14.41  

Class C at NAV

     01/05/1998        07/26/1985       21.68        12.79        14.22  

Class C with 1% Maximum Sales Charge

                  20.68        12.79        14.22  

Class I at NAV

     10/01/2009        07/26/1985       22.89        13.95        15.38  

Class R at NAV

     09/08/2003        07/26/1985       22.24        13.38        14.81  

 

MSCI World Health Care Index

                  23.46      13.72      14.52

S&P 500® Index

                  31.17        18.01        16.33  
% Total Annual Operating Expense Ratios4            Class A     Class C      Class I      Class R  

Gross

        1.27     2.02      1.02      1.52

Net

        1.23       1.98        0.98        1.48  

Growth of $10,000

 

This graph shows the change in value of a hypothetical investment of $10,000 in Class A of the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.

 

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Growth of Investment      Amount Invested        Period Beginning        At NAV        With Maximum Sales Charge  

Class C

       $10,000          08/31/2011          $37,822          N.A.  

Class I

       $250,000          08/31/2011          $1,046,501          N.A.  

Class R

       $10,000          08/31/2011          $39,826          N.A.  

See Endnotes and Additional Disclosures in this report.

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance for periods less than or equal to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to eatonvance.com.

 

  3  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Fund Profile

 

 

Sector Allocation (% of net assets)5

 

 

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Country Allocation (% of net assets)

 

 

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Top 10 Holdings (% of net assets)5

 

 

Johnson & Johnson

     7.6

UnitedHealth Group, Inc.

     6.9  

AbbVie, Inc.

     4.4  

Roche Holding AG PC

     4.3  

Eli Lilly & Co.

     4.2  

Thermo Fisher Scientific, Inc.

     4.1  

Danaher Corp.

     4.0  

Medtronic PLC

     3.7  

Intuitive Surgical, Inc.

     3.4  

Sanofi

     3.4  

Total

     46.0
 

 

See Endnotes and Additional Disclosures in this report.

 

  4  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Endnotes and Additional Disclosures

 

1 

The views expressed in this report are those of the 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 and the Fund(s) disclaim 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.

 

2 

MSCI World Health Care Index is an unmanaged index of health care sector equities within the MSCI World Index. MSCI indexes are net of foreign withholding taxes. Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides no warranties, has not prepared or approved this report, and has no liability hereunder. S&P 500® Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance. S&P Dow Jones Indices are a product of S&P Dow Jones Indices LLC (“S&P DJI”) and have been licensed for use. S&P® and S&P 500® are registered trademarks of S&P DJI; Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P DJI, Dow Jones and their respective affiliates do not sponsor, endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest directly in an index.

 

3 

Total Returns at NAV do not include applicable sales charges. If sales charges were deducted, the returns would be lower. Total Returns shown with maximum sales charge reflect the stated maximum sales charge. Unless otherwise stated, performance does not reflect the deduction of taxes on Fund distributions or redemptions of Fund shares.

 

4 

Source: Fund prospectus. Net expense ratios reflect a contractual expense reimbursement that continues through 12/31/21. Without the reimbursement, performance would have been lower. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report.

 

5 

Excludes cash and cash equivalents.

Fund profile subject to change due to active management.

Additional Information

MSCI World Index is an unmanaged index of equity securities in the developed markets. MSCI EAFE Index is an unmanaged index of equities in the developed markets, excluding the U.S. and Canada. MSCI Emerging Markets Index is an unmanaged index of emerging markets common stocks. Nasdaq Composite Index is a market capitalization-weighted index of all domestic and international

securities listed on Nasdaq. Source: Nasdaq, Inc. The information is provided by Nasdaq (with its affiliates, are referred to as the “Corporations”) and Nasdaq’s third party licensors on an “as is” basis and the Corporations make no guarantees and bear no liability of any kind with respect to the information or the Fund.

 

 

  5  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Fund Expenses

 

 

Example:  As a Fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of Fund investing and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2021 – August 31, 2021).

Actual Expenses:  The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes:  The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual Fund return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees (if applicable). Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.

 

     Beginning
Account Value
(3/1/21)
     Ending
Account Value
(8/31/21)
     Expenses Paid
During Period*
(3/1/21 – 8/31/21)
     Annualized
Expense
Ratio
 

Actual

 

Class A

  $ 1,000.00      $ 1,193.10      $ 6.03        1.09

Class C

  $ 1,000.00      $ 1,188.60      $ 10.15        1.84

Class I

  $ 1,000.00      $ 1,194.20      $ 4.65        0.84

Class R

  $ 1,000.00      $ 1,191.20      $ 7.40        1.34
 

Hypothetical

 

(5% return per year before expenses)

 

Class A

  $ 1,000.00      $ 1,019.70      $ 5.55        1.09

Class C

  $ 1,000.00      $ 1,015.90      $ 9.35        1.84

Class I

  $ 1,000.00      $ 1,021.00      $ 4.28        0.84

Class R

  $ 1,000.00      $ 1,018.50      $ 6.82        1.34

 

*

Expenses are equal to the Fund’s annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on February 28, 2021.

 

  6  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Portfolio of Investments

 

 

Common Stocks — 98.8%

 

Security   Shares     Value  
Biotechnology — 10.8%  

AbbVie, Inc.

    441,411     $ 53,313,620  

Abcam PLC(1)

    237,947       5,052,216  

Argenx SE ADR(1)

    14,886       4,927,564  

Blueprint Medicines Corp.(1)

    51,234       4,778,595  

CSL, Ltd.

    119,726       27,230,804  

Incyte Corp.(1)

    90,483       6,921,045  

Moderna, Inc.(1)

    16,712       6,295,243  

Neurocrine Biosciences, Inc.(1)

    175,619       16,718,929  

Travere Therapeutics, Inc.(1)

    177,721       3,879,649  
      $ 129,117,665  
Health Care Equipment — 23.4%  

Abbott Laboratories

    189,583     $ 23,957,604  

Boston Scientific Corp.(1)

    417,769       18,862,270  

Danaher Corp.

    148,874       48,258,996  

Edwards Lifesciences Corp.(1)

    216,859       25,411,538  

Envista Holdings Corp.(1)

    143,265       6,130,309  

Fisher & Paykel Healthcare Corp., Ltd.

    306,830       7,160,772  

Inari Medical, Inc.(1)

    151,170       12,374,776  

Intuitive Surgical, Inc.(1)

    39,143       41,239,499  

Medtronic PLC

    336,513       44,917,755  

Ortho Clinical Diagnostics Holdings PLC(1)

    547,641       11,193,782  

Straumann Holding AG

    4,413       8,526,979  

Tandem Diabetes Care, Inc.(1)

    130,014       14,583,671  

Teleflex, Inc.

    46,446       18,367,535  
      $ 280,985,486  
Health Care Services — 2.9%  

Accolade, Inc.(1)

    112,297     $ 5,320,632  

Agiliti, Inc.(1)

    702,673       14,988,015  

LHC Group, Inc.(1)

    49,928       9,324,553  

R1 RCM, Inc.(1)

    275,354       5,429,981  
      $ 35,063,181  
Health Care Supplies — 3.7%  

Alcon, Inc.

    192,179     $ 15,827,650  

Asahi Intecc Co., Ltd.

    255,800       7,739,533  

Cooper Cos., Inc. (The)

    29,764       13,414,933  

Pulmonx Corp.(1)

    186,189       7,482,936  
      $ 44,465,052  
Health Care Technology — 2.0%  

JMDC, Inc.(1)

    150,000     $ 10,268,450  

Veeva Systems, Inc., Class A(1)

    39,610       13,149,728  
      $ 23,418,178  
Security   Shares     Value  
Life Sciences Tools & Services — 10.0%  

10X Genomics, Inc., Class A(1)

    49,707     $ 8,744,455  

Agilent Technologies, Inc.

    94,159       16,522,080  

Lonza Group AG

    24,002       20,299,120  

PolyPeptide Group AG(1)(2)

    66,637       9,655,063  

Thermo Fisher Scientific, Inc.

    89,387       49,605,316  

Waters Corp.(1)

    37,059       15,343,167  
      $ 120,169,201  
Managed Health Care — 8.7%  

Anthem, Inc.

    59,266     $ 22,232,455  

UnitedHealth Group, Inc.

    198,542       82,647,078  
      $ 104,879,533  
Pharmaceuticals — 37.3%  

AstraZeneca PLC

    348,077     $ 40,705,315  

Bristol-Myers Squibb Co.

    174,196       11,646,745  

Dechra Pharmaceuticals PLC

    91,935       6,620,598  

Eli Lilly & Co.

    194,113       50,137,447  

Ipsen S.A.

    56,401       5,641,529  

Johnson & Johnson

    530,197       91,793,007  

Merck & Co., Inc.

    315,297       24,054,008  

Novartis AG

    226,611       20,959,448  

Novo Nordisk A/S, Class B

    389,197       38,962,468  

Pfizer, Inc.

    359,209       16,548,759  

Roche Holding AG PC

    127,478       51,189,414  

Royalty Pharma PLC, Class A

    320,270       12,378,435  

Sanofi

    393,094       40,739,717  

Zoetis, Inc.

    180,802       36,984,857  
      $ 448,361,747  

Total Common Stocks
(identified cost $693,300,044)

 

  $ 1,186,460,043  
Convertible Preferred Stocks — 0.2%

 

Security   Shares     Value  
Biotechnology — 0.2%              

Caris Life Sciences, Inc., Series D(1)(3)(4)

    370,300     $ 2,699,487  

Total Convertible Preferred Stocks
(identified cost $3,000,000)

 

  $ 2,699,487  
 

 

  7   See Notes to Financial Statements.


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Portfolio of Investments — continued

 

 

Exchange-Traded Funds — 0.7%

 

Security   Shares     Value  
Equity Funds — 0.7%              

iShares Global Healthcare ETF

    94,912     $ 8,386,425  

Total Exchange-Traded Funds
(identified cost $8,127,769)

 

  $ 8,386,425  
Short-Term Investments — 0.5%

 

Description   Units     Value  

Eaton Vance Cash Reserves Fund, LLC, 0.07%(5)

    6,140,576     $ 6,140,576  

Total Short-Term Investments
(identified cost $6,140,576)

 

  $ 6,140,576  

Total Investments — 100.2%
(identified cost $710,568,389)

 

  $ 1,203,686,531  

Other Assets, Less Liabilities — (0.2)%

 

  $ (2,070,004

Net Assets — 100.0%

 

  $ 1,201,616,527  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

 

(1) 

Non-income producing security.

 

(2) 

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At August 31, 2021, the aggregate value of these securities is $9,655,063 or 0.8% of the Fund’s net assets.

 

(3) 

For fair value measurement disclosure purposes, security is categorized as Level 3 (see Note 11).

 

(4) 

Restricted security (see Note 8).

 

(5) 

Affiliated investment company, available to Eaton Vance portfolios and funds, which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of August 31, 2021.

Country Concentration of Portfolio

 

Country   Percentage
of Net Assets
    Value  

United States

    72.5   $ 871,070,094  

Switzerland

    9.7       116,802,611  

United Kingdom

    5.4       64,756,564  

France

    3.9       46,381,246  

Denmark

    3.2       38,962,468  

Australia

    2.3       27,230,804  

Japan

    1.5       18,007,983  

New Zealand

    0.6       7,160,772  

Netherlands

    0.4       4,927,564  

Exchange-Traded Funds

    0.7       8,386,425  

Total Investments

    100.2   $ 1,203,686,531  

Abbreviations:

 

ADR     American Depositary Receipt
PC     Participation Certificate
 

 

  8   See Notes to Financial Statements.


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Statement of Assets and Liabilities

 

 

Assets    August 31, 2021  

Unaffiliated investments, at value (identified cost, $704,427,813)

   $ 1,197,545,955  

Affiliated investment, at value (identified cost, $6,140,576)

     6,140,576  

Dividends receivable

     1,304,517  

Dividends receivable from affiliated investment

     135  

Receivable for investments sold

     13,329,187  

Receivable for Fund shares sold

     701,805  

Tax reclaims receivable

     2,349,779  

Total assets

   $ 1,221,371,954  
Liabilities

 

Payable for investments purchased

   $ 17,607,553  

Payable for Fund shares redeemed

     767,694  

Payable to affiliates:

  

Investment adviser fee

     551,041  

Administration fee

     150,817  

Distribution and service fees

     255,426  

Other

     35,462  

Accrued expenses

     387,434  

Total liabilities

   $ 19,755,427  

Net Assets

   $ 1,201,616,527  
Sources of Net Assets

 

Paid-in capital

   $ 633,696,159  

Distributable earnings

     567,920,368  

Total

   $ 1,201,616,527  
Class A Shares

 

Net Assets

   $ 853,050,555  

Shares Outstanding

     55,899,203  

Net Asset Value and Redemption Price Per Share

 

(net assets ÷ shares of beneficial interest outstanding)

   $ 15.26  

Maximum Offering Price Per Share

 

(100 ÷ 94.25 of net asset value per share)

   $ 16.19  
Class C Shares

 

Net Assets

   $ 56,172,230  

Shares Outstanding

     3,637,161  

Net Asset Value and Offering Price Per Share*

 

(net assets ÷ shares of beneficial interest outstanding)

   $ 15.44  
Class I Shares

 

Net Assets

   $ 221,891,752  

Shares Outstanding

     14,095,071  

Net Asset Value, Offering Price and Redemption Price Per Share

 

(net assets ÷ shares of beneficial interest outstanding)

   $ 15.74  
Class R Shares

 

Net Assets

   $ 70,501,990  

Shares Outstanding

     4,284,715  

Net Asset Value, Offering Price and Redemption Price Per Share

 

(net assets ÷ shares of beneficial interest outstanding)

   $ 16.45  

On sales of $50,000 or more, the offering price of Class A shares is reduced.

 

*

Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.

 

  9   See Notes to Financial Statements.


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Statement of Operations

 

 

Investment Income   

Year Ended

August 31, 2021

 

Dividends (net of foreign taxes, $882,541)

   $ 15,955,688  

Dividends from affiliated investment

     1,626  

Total investment income

   $ 15,957,314  
Expenses

 

Investment adviser fee

   $ 6,936,904  

Administration fee

     1,639,930  

Distribution and service fees

 

Class A

     1,941,897  

Class C

     556,688  

Class R

     314,986  

Trustees’ fees and expenses

     54,686  

Custodian fee

     279,576  

Transfer and dividend disbursing agent fees

     913,852  

Legal and accounting services

     80,783  

Printing and postage

     70,864  

Registration fees

     69,323  

Miscellaneous

     72,589  

Total expenses

   $ 12,932,078  

Deduct —

 

Allocation of expenses to affiliates

   $ 147,965  

Total expense reductions

   $ 147,965  

Net expenses

   $ 12,784,113  

Net investment income

   $ 3,173,201  
Realized and Unrealized Gain (Loss)

 

Net realized gain (loss) —

 

Investment transactions

   $ 96,961,997  

Investment transactions — affiliated investment

     (11

Foreign currency transactions

     22,251  

Net realized gain

   $ 96,984,237  

Change in unrealized appreciation (depreciation) —

 

Investments

   $ 126,977,452  

Foreign currency

     (131,409

Net change in unrealized appreciation (depreciation)

   $ 126,846,043  

Net realized and unrealized gain

   $ 223,830,280  

Net increase in net assets from operations

   $ 227,003,481  

 

  10   See Notes to Financial Statements.


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Statements of Changes in Net Assets

 

 

     Year Ended August 31,  
Increase (Decrease) in Net Assets    2021      2020  

From operations —

 

Net investment income

   $ 3,173,201      $ 4,854,684  

Net realized gain

     96,984,237        95,072,092  

Net change in unrealized appreciation (depreciation)

     126,846,043        98,739,316  

Net increase in net assets from operations

   $ 227,003,481      $ 198,666,092  

Distributions to shareholders —

 

Class A

   $ (53,425,016    $ (38,895,122

Class C

     (3,333,250      (2,794,600

Class I

     (13,675,899      (9,345,359

Class R

     (3,772,416      (2,794,464

Total distributions to shareholders

   $ (74,206,581    $ (53,829,545

Transactions in shares of beneficial interest —

 

Proceeds from sale of shares

 

Class A

   $ 21,927,586      $ 26,437,948  

Class C

     4,752,650        5,891,481  

Class I

     29,559,582        33,452,685  

Class R

     8,342,378        8,293,986  

Net asset value of shares issued to shareholders in payment of distributions declared

 

Class A

     47,731,596        34,921,270  

Class C

     3,252,290        2,583,400  

Class I

     11,048,703        7,484,138  

Class R

     3,764,588        2,753,988  

Cost of shares redeemed

 

Class A

     (96,475,782      (105,304,532

Class C

     (11,814,546      (14,069,258

Class I

     (39,479,719      (42,685,076

Class R

     (11,369,409      (16,454,661

Net asset value of shares converted

 

Class A

     10,031,368        4,708,730  

Class C

     (10,031,368      (4,708,730

Net decrease in net assets from Fund share transactions

   $ (28,760,083    $ (56,694,631

Net increase in net assets

   $ 124,036,817      $ 88,141,916  
Net Assets                  

At beginning of year

   $ 1,077,579,710      $ 989,437,794  

At end of year

   $ 1,201,616,527      $ 1,077,579,710  

 

  11   See Notes to Financial Statements.


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Financial Highlights

 

 

     Class A  
     Year Ended August 31,  
      2021      2020      2019     2018      2017  

Net asset value — Beginning of year

   $ 13.380      $ 11.610      $ 11.700     $ 10.710      $ 11.140  
Income (Loss) From Operations

 

Net investment income (loss)(1)

   $ 0.040      $ 0.061      $ 0.069     $ 0.033      $ (0.002

Net realized and unrealized gain

     2.795        2.377        0.413       1.248        0.733  

Total income from operations

   $ 2.835      $ 2.438      $ 0.482     $ 1.281      $ 0.731  
Less Distributions

 

From net investment income

   $ (0.066    $ (0.072    $ (0.035   $      $  

From net realized gain

     (0.889      (0.596      (0.537     (0.291      (1.161

Total distributions

   $ (0.955    $ (0.668    $ (0.572   $ (0.291    $ (1.161

Net asset value — End of year

   $ 15.260      $ 13.380      $ 11.610     $ 11.700      $ 10.710  

Total Return(2)(3)

     22.58      21.74      4.35     12.31      8.50
Ratios/Supplemental Data

 

Net assets, end of year (000’s omitted)

   $ 853,051      $ 761,814      $ 698,865     $ 654,296      $ 707,485  

Ratios (as a percentage of average daily net assets):(4)

             

Expenses(3)

     1.16      1.22      1.09     1.06      1.30

Net investment income (loss)

     0.30      0.50      0.61     0.31      (0.02 )% 

Portfolio Turnover of the Portfolio(5)

                   32     37      36

Portfolio Turnover of the Fund

     32      38      3 %(6)              

 

(1)  

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges.

 

(3) 

The investment adviser, sub-adviser(s) and administrator reimbursed certain operating expenses (equal to 0.01%, 0.04%, 0.07%, 0.06% and 0.05% of average daily net assets for the years ended August 31, 2021, 2020, 2019, 2018 and 2017, respectively). Absent this reimbursement, total return would be lower.

 

(4) 

Includes the Fund’s share of the Portfolio’s allocated expenses for the period while the Fund was investing in the Portfolio.

 

(5) 

Portfolio turnover represents the rate of portfolio activity for the period while the Fund was investing in the Portfolio.

 

(6) 

For the period from August 12, 2019 through August 31, 2019 when the Fund was making investments directly in securities.

References to Portfolio herein are to Worldwide Health Sciences Portfolio, a Massachusetts business trust in which the Fund invested all of its investable assets prior to the close of business on August 9, 2019 and which had the same investment objective and policies as the Fund during such period.

 

  12   See Notes to Financial Statements.


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Financial Highlights — continued

 

 

     Class C  
     Year Ended August 31,  
      2021      2020      2019     2018      2017  

Net asset value — Beginning of year

   $ 13.500      $ 11.690      $ 11.770     $ 10.850      $ 11.350  
Income (Loss) From Operations

 

Net investment loss(1)

   $ (0.065    $ (0.032    $ (0.040   $ (0.048    $ (0.079

Net realized and unrealized gain

     2.836        2.384        0.437       1.259        0.740  

Total income from operations

   $ 2.771      $ 2.352      $ 0.397     $ 1.211      $ 0.661  
Less Distributions

 

From net realized gain

   $ (0.831    $ (0.542    $ (0.477   $ (0.291    $ (1.161

Total distributions

   $ (0.831    $ (0.542    $ (0.477   $ (0.291    $ (1.161

Net asset value — End of year

   $ 15.440      $ 13.500      $ 11.690     $ 11.770      $ 10.850  

Total Return(2)(3)

     21.68      20.70      3.54     11.49      7.67
Ratios/Supplemental Data                                            

Net assets, end of year (000’s omitted)

   $ 56,172      $ 62,657      $ 63,886     $ 177,727      $ 204,069  

Ratios (as a percentage of average daily net assets):(4)

             

Expenses(3)

     1.91      1.97      1.84     1.81      2.05

Net investment loss

     (0.47 )%       (0.26 )%       (0.35 )%      (0.45 )%       (0.76 )% 

Portfolio Turnover of the Portfolio(5)

                   32     37      36

Portfolio Turnover of the Fund

     32      38      3 %(6)              

 

(1)  

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges.

 

(3) 

The investment adviser, sub-adviser(s) and administrator reimbursed certain operating expenses (equal to 0.01%, 0.04%, 0.07%, 0.06% and 0.05% of average daily net assets for the years ended August 31, 2021, 2020, 2019, 2018 and 2017, respectively). Absent this reimbursement, total return would be lower.

 

(4) 

Includes the Fund’s share of the Portfolio’s allocated expenses for the period while the Fund was investing in the Portfolio.

 

(5) 

Portfolio turnover represents the rate of portfolio activity for the period while the Fund was investing in the Portfolio.

 

(6) 

For the period from August 12, 2019 through August 31, 2019 when the Fund was making investments directly in securities.

References to Portfolio herein are to Worldwide Health Sciences Portfolio, a Massachusetts business trust in which the Fund invested all of its investable assets prior to the close of business on August 9, 2019 and which had the same investment objective and policies as the Fund during such period.

 

  13   See Notes to Financial Statements.


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Financial Highlights — continued

 

 

     Class I  
     Year Ended August 31,  
      2021      2020      2019     2018      2017  

Net asset value — Beginning of year

   $ 13.770      $ 11.930      $ 12.010     $ 10.960      $ 11.340  
Income (Loss) From Operations

 

Net investment income(1)

   $ 0.077      $ 0.094      $ 0.098     $ 0.061      $ 0.025  

Net realized and unrealized gain

     2.881        2.443        0.424       1.280        0.756  

Total income from operations

   $ 2.958      $ 2.537      $ 0.522     $ 1.341      $ 0.781  
Less Distributions

 

From net investment income

   $ (0.099    $ (0.101    $ (0.065   $      $  

From net realized gain

     (0.889      (0.596      (0.537     (0.291      (1.161

Total distributions

   $ (0.988    $ (0.697    $ (0.602   $ (0.291    $ (1.161

Net asset value — End of year

   $ 15.740      $ 13.770      $ 11.930     $ 12.010      $ 10.960  

Total Return(2)(3)

     22.89      22.04      4.60     12.59      8.82
Ratios/Supplemental Data

 

Net assets, end of year (000’s omitted)

   $ 221,892      $ 192,629      $ 169,013     $ 173,054      $ 173,116  

Ratios (as a percentage of average daily net assets):(4)

             

Expenses(3)

     0.91      0.97      0.84     0.81      1.05

Net investment income

     0.55      0.75      0.84     0.56      0.24

Portfolio Turnover of the Portfolio(5)

                   32     37      36

Portfolio Turnover of the Fund

     32      38      3 %(6)              

 

(1)  

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested.

 

(3) 

The investment adviser, sub-adviser(s) and administrator reimbursed certain operating expenses (equal to 0.01%, 0.04%, 0.07%, 0.06% and 0.05% of average daily net assets for the years ended August 31, 2021, 2020, 2019, 2018 and 2017, respectively). Absent this reimbursement, total return would be lower.

 

(4) 

Includes the Fund’s share of the Portfolio’s allocated expenses for the period while the Fund was investing in the Portfolio.

 

(5) 

Portfolio turnover represents the rate of portfolio activity for the period while the Fund was investing in the Portfolio.

 

(6) 

For the period from August 12, 2019 through August 31, 2019 when the Fund was making investments directly in securities.

References to Portfolio herein are to Worldwide Health Sciences Portfolio, a Massachusetts business trust in which the Fund invested all of its investable assets prior to the close of business on August 9, 2019 and which had the same investment objective and policies as the Fund during such period.

 

  14   See Notes to Financial Statements.


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Financial Highlights — continued

 

 

     Class R  
     Year Ended August 31,  
      2021      2020      2019     2018      2017  

Net asset value — Beginning of year

   $ 14.350      $ 12.400      $ 12.460     $ 11.410      $ 11.810  
Income (Loss) From Operations

 

Net investment income (loss)(1)

   $ 0.008      $ 0.033      $ 0.042     $ 0.008      $ (0.029

Net realized and unrealized gain

     3.008        2.547        0.440       1.333        0.790  

Total income from operations

   $ 3.016      $ 2.580      $ 0.482     $ 1.341      $ 0.761  
Less Distributions

 

From net investment income

   $ (0.027    $ (0.034    $ (0.005   $      $  

From net realized gain

     (0.889      (0.596      (0.537     (0.291      (1.161

Total distributions

   $ (0.916    $ (0.630    $ (0.542   $ (0.291    $ (1.161

Net asset value — End of year

   $ 16.450      $ 14.350      $ 12.400     $ 12.460      $ 11.410  

Total Return(2)(3)

     22.24      21.46      4.07     12.08      8.25
Ratios/Supplemental Data

 

Net assets, end of year (000’s omitted)

   $ 70,502      $ 60,480      $ 57,674     $ 60,883      $ 61,724  

Ratios (as a percentage of average daily net assets):(4)

             

Expenses(3)

     1.41      1.47      1.34     1.31      1.55

Net investment income (loss)

     0.05      0.25      0.35     0.07      (0.27 )% 

Portfolio Turnover of the Portfolio(5)

                   32     37      36

Portfolio Turnover of the Fund

     32      38      3 %(6)              

 

(1)  

Computed using average shares outstanding.

 

(2) 

Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested.

 

(3) 

The investment adviser, sub-adviser(s) and administrator reimbursed certain operating expenses (equal to 0.01%, 0.04%, 0.07%, 0.06% and 0.05% of average daily net assets for the years ended August 31, 2021, 2020, 2019, 2018 and 2017, respectively). Absent this reimbursement, total return would be lower.

 

(4) 

Includes the Fund’s share of the Portfolio’s allocated expenses for the period while the Fund was investing in the Portfolio.

 

(5) 

Portfolio turnover represents the rate of portfolio activity for the period while the Fund was investing in the Portfolio.

 

(6) 

For the period from August 12, 2019 through August 31, 2019 when the Fund was making investments directly in securities.

References to Portfolio herein are to Worldwide Health Sciences Portfolio, a Massachusetts business trust in which the Fund invested all of its investable assets prior to the close of business on August 9, 2019 and which had the same investment objective and policies as the Fund during such period.

 

  15   See Notes to Financial Statements.


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Notes to Financial Statements

 

 

1  Significant Accounting Policies

Eaton Vance Worldwide Health Sciences Fund (the Fund) is a diversified series of Eaton Vance Growth Trust (the Trust). The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. The Fund’s investment objective is to seek long-term capital growth by investing in a worldwide and diversified portfolio of health sciences companies. The Fund offers four classes of shares. Class A shares are generally sold subject to a sales charge imposed at time of purchase. Class C shares are sold at net asset value and are generally subject to a contingent deferred sales charge (see Note 5). Effective January 25, 2019, Class C shares generally automatically convert to Class A shares ten years after their purchase and, effective November 5, 2020, automatically convert to Class A shares eight years after their purchase as described in the Fund’s prospectus. Class I and Class R shares are sold at net asset value and are not subject to a sales charge. Each class represents a pro-rata interest in the Fund, but votes separately on class-specific matters and (as noted below) is subject to different expenses. Realized and unrealized gains and losses and net investment income and losses, other than class-specific expenses, are allocated daily to each class of shares based on the relative net assets of each class to the total net assets of the Fund. Each class of shares differs in its distribution plan and certain other class-specific expenses.

The following is a summary of significant accounting policies of the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946.

A  Investment Valuation — The following methodologies are used to determine the market value or fair value of investments.

Equity Securities. Equity securities listed on a U.S. securities exchange generally are valued at the last sale or closing price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and ask prices on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ National Market System generally are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and ask prices.

Foreign Securities and Currencies. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by a third party pricing service. The pricing service uses a proprietary model to determine the exchange rate. Inputs to the model include reported trades and implied bid/ask spreads. The daily valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. When valuing foreign equity securities that meet certain criteria, the Fund’s Trustees have approved the use of a fair value service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities.

Affiliated Fund. The Fund may invest in Eaton Vance Cash Reserves Fund, LLC (Cash Reserves Fund), an affiliated investment company managed by Eaton Vance Management (EVM). While Cash Reserves Fund is not a registered money market mutual fund, it conducts all of its investment activities in accordance with the requirements of Rule 2a-7 under the 1940 Act. Investments in Cash Reserves Fund are valued at the closing net asset value per unit on the valuation day. Cash Reserves Fund generally values its investment securities based on available market quotations provided by a third party pricing service.

Fair Valuation. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of the Fund in a manner that most fairly reflects the security’s “fair value”, which is the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s or entity’s financial statements, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.

B  Investment Transactions — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost.

C  Income — Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Fund is informed of the ex-dividend date. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Fund’s understanding of the applicable countries’ tax rules and rates. In consideration of recent decisions rendered by European courts, the Fund has filed additional tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Due to the uncertainty as to the ultimate resolution of these proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment, no amounts are reflected in the financial statements for such outstanding reclaims. Distributions from investment companies are recorded as dividend income, capital gains or return of capital based on the nature of the distribution.

D  Federal Taxes — The Fund’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary.

 

  16  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

As of August 31, 2021, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

E  Expenses — The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds.

F  Foreign Currency Translation — Investment valuations, other assets, and liabilities initially expressed in foreign currencies are translated each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses denominated in foreign currencies are translated into U.S. dollars based upon currency exchange rates in effect on the respective dates of such transactions. Recognized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.

G  Use of Estimates — The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.

H  Indemnifications — Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Fund. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Trust) could be deemed to have personal liability for the obligations of the Trust. However, the Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Trust shall assume, upon request by the shareholder, the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Additionally, in the normal course of business, the Fund enters into agreements with service providers that may contain indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.

2  Distributions to Shareholders and Income Tax Information

It is the present policy of the Fund to make one distribution annually (normally in December) of all or substantially all of its net investment income and to distribute annually all or substantially all of its net realized capital gains. Distributions to shareholders are recorded on the ex-dividend date. Distributions are declared separately for each class of shares. Shareholders may reinvest income and capital gain distributions in additional shares of the same class of the Fund at the net asset value as of the ex-dividend date or, at the election of the shareholder, receive distributions in cash. Distributions to shareholders are determined in accordance with income tax regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and profits are reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.

The tax character of distributions declared for the years ended August 31, 2021 and August 31, 2020 was as follows:

 

     Year Ended August 31,  
      2021      2020  

Ordinary income

   $ 10,860,155      $ 9,774,096  

Long-term capital gains

   $ 63,346,426      $ 44,055,449  

During the year ended August 31, 2021, distributable earnings was decreased by $5,426,623 and paid-in capital was increased by $5,426,623 primarily due to the Fund’s use of equalization accounting. Tax equalization accounting allows the Fund to treat as a distribution that portion of redemption proceeds representing a redeeming shareholder’s portion of undistributed taxable income and net capital gains. These reclassifications had no effect on the net assets or net asset value per share of the Fund.

As of August 31, 2021, the components of distributable earnings (accumulated loss) on a tax basis were as follows:

 

   

Undistributed ordinary income

   $ 20,349,860  

Undistributed long-term capital gains

     65,826,155  

Net unrealized appreciation

     481,744,353  

Distributable earnings

   $ 567,920,368  

 

  17  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

The cost and unrealized appreciation (depreciation) of investments of the Fund at August 31, 2021, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

   $ 722,036,153  

Gross unrealized appreciation

   $ 484,106,715  

Gross unrealized depreciation

     (2,456,337

Net unrealized appreciation

   $ 481,650,378  

3  Investment Adviser Fee and Other Transactions with Affiliates

The investment adviser fee is earned by EVM as compensation for investment advisory services rendered to the Fund. On March 1, 2021, Morgan Stanley acquired Eaton Vance Corp. (the “Transaction”) and EVM became an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, the Fund entered into a new investment advisory agreement (the “New Agreement”) with EVM, which took effect on March 1, 2021. Pursuant to the New Agreement (and the Fund’s investment advisory agreement with EVM in effect prior to March 1, 2021), the fee is computed at an annual rate as a percentage of the Fund’s average daily net assets as follows and is payable monthly:

 

Average Daily Net Assets    Annual Fee Rate  

Up to $500 million

     0.675

$500 million but less than $1 billion

     0.590

$1 billion but less than $1.5 billion

     0.520

$1.5 billion but less than $2 billion

     0.490

$2 billion but less than $2.5 billion

     0.470

$2.5 billion and over

     0.450

In addition, EVM’s fee is subject to an upward or downward performance adjustment of up to 0.15% (annually) of the average daily net assets of the Fund depending on whether, and to what extent, the investment performance of the Fund differs by at least one percentage point from the record of the MSCI World Health Care Index over a 36-month performance period. For the year ended August 31, 2021, the investment adviser fee, including an upward performance adjustment of $126,822, amounted to $6,936,904 or 0.63% of the Fund’s average daily net assets. Pursuant to an investment sub-advisory agreement, EVM has delegated a portion of the investment management of the Fund to Eaton Vance Advisers International Ltd. (EVAIL), an affiliate of EVM and, effective March 1, 2021, an indirect, wholly-owned subsidiary of Morgan Stanley. In connection with the Transaction, EVM entered into a new investment sub-advisory agreement with EVAIL, which took effect on March 1, 2021. EVM pays EVAIL a portion of its investment adviser fee for sub-advisory services provided to the Fund. The Fund may invest its cash in Cash Reserves Fund. EVM does not currently receive a fee for advisory services provided to Cash Reserves Fund.

The administration fee is earned by EVM for administering the business affairs of the Fund and is computed at an annual rate of 0.15% of the Fund’s average daily net assets. For the year ended August 31, 2021, the administration fee amounted to $1,639,930.

EVM and EVAIL have agreed to reimburse the Fund’s expenses to the extent that total annual operating expenses (relating to ordinary operating expenses only and excluding such expenses as borrowing costs, taxes or litigation expenses and any performance-based adjustment to an asset-based investment advisory fee) exceed 1.15%, 1.90%, 0.90% and 1.40% of the Fund’s average daily net assets for Class A, Class C, Class I and Class R, respectively. This agreement may be changed or terminated after December 31, 2021. Pursuant to this agreement, EVM and EVAIL were allocated $147,965 in total of the Fund’s operating expenses for the year ended August 31, 2021.

EVM provides sub-transfer agency and related services to the Fund pursuant to a Sub-Transfer Agency Support Services Agreement. For the year ended August 31, 2021, EVM earned $106,546 from the Fund pursuant to such agreement, which is included in transfer and dividend disbursing agent fees on the Statement of Operations. The Fund was informed that Eaton Vance Distributors, Inc. (EVD), an affiliate of EVM and the Fund’s principal underwriter, received $18,535 as its portion of the sales charge on sales of Class A shares for the year ended August 31, 2021. EVD also received distribution and service fees from Class A, Class C and Class R shares (see Note 4) and contingent deferred sales charges (see Note 5).

Trustees and officers of the Fund who are members of EVM’s organization receive remuneration for their services to the Fund out of the investment adviser fee. Trustees of the Fund who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended August 31, 2021, no significant amounts have been deferred. Certain officers and Trustees of the Fund are officers of EVM.

 

  18  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

4  Distribution Plans

The Fund has in effect a distribution plan for Class A shares (Class A Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class A Plan, the Fund pays EVD a distribution and service fee of 0.25% per annum of its average daily net assets attributable to Class A shares for distribution services and facilities provided to the Fund by EVD, as well as for personal services and/or the maintenance of shareholder accounts. Distribution and service fees paid or accrued to EVD for the year ended August 31, 2021 amounted to $1,941,897 for Class A shares.

The Fund also has in effect distribution plans for Class C shares (Class C Plan) and Class R shares (Class R Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class C Plan, the Fund pays EVD amounts equal to 0.75% per annum of its average daily net assets attributable to Class C shares for providing ongoing distribution services and facilities to the Fund. For the year ended August 31, 2021, the Fund paid or accrued to EVD $417,516 for Class C shares.

The Class R Plan requires the Fund to pay EVD an amount up to 0.50% per annum of its average daily net assets attributable to Class R shares for providing ongoing distribution services and facilities to the Fund. The Trustees of the Trust have currently limited Class R distribution payments to 0.25% per annum of the average daily net assets attributable to Class R shares. For the year ended August 31, 2021, the Fund paid or accrued to EVD $157,493 for Class R shares.

Pursuant to the Class C and Class R Plans, the Fund also makes payments of service fees to EVD, financial intermediaries and other persons in amounts equal to 0.25% per annum of its average daily net assets attributable to that class. Service fees paid or accrued are for personal services and/or the maintenance of shareholder accounts. They are separate and distinct from the sales commissions and distribution fees payable to EVD. Service fees paid or accrued for the year ended August 31, 2021 amounted to $139,172 and $157,493 for Class C and Class R shares, respectively.

Distribution and service fees are subject to the limitations contained in the Financial Industry Regulatory Authority Rule 2341(d).

5  Contingent Deferred Sales Charges

A contingent deferred sales charge (CDSC) of 1% generally is imposed on redemptions of Class C shares made within 12 months of purchase. Class A shares may be subject to a 1% CDSC if redeemed within 18 months of purchase (depending on the circumstances of purchase). Generally, the CDSC is based upon the lower of the net asset value at date of redemption or date of purchase. No charge is levied on shares acquired by reinvestment of dividends or capital gain distributions. For the year ended August 31, 2021, the Fund was informed that EVD received approximately $3,000 of CDSCs paid by Class C shareholders and no CDSCs paid by Class A shareholders.

6  Purchases and Sales of Investments

Purchases and sales of investments, other than short-term obligations, aggregated $349,676,041 and $445,350,984, respectively, for the year ended August 31, 2021.

7  Shares of Beneficial Interest

The Fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Such shares may be issued in a number of different series (such as the Fund) and classes. Transactions in Fund shares were as follows:

 

     Year Ended August 31,  
Class A    2021      2020  

Sales

     1,640,981        2,171,756  

Issued to shareholders electing to receive payments of distributions in Fund shares

     3,737,791        2,951,925  

Redemptions

     (7,164,403      (8,757,424

Converted from Class C shares

     743,573        385,971  

Net decrease

     (1,042,058      (3,247,772

 

  19  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

     Year Ended August 31,  
Class C    2021      2020  

Sales

     349,289        483,587  

Issued to shareholders electing to receive payments of distributions in Fund shares

     250,176        215,283  

Redemptions

     (866,480      (1,140,722

Converted to Class A shares

     (735,613      (381,942

Net decrease

     (1,002,628      (823,794
     Year Ended August 31,  
Class I    2021      2020  

Sales

     2,122,499        2,671,727  

Issued to shareholders electing to receive payments of distributions in Fund shares

     840,206        615,978  

Redemptions

     (2,854,920      (3,464,442

Net increase (decrease)

     107,785        (176,737
     Year Ended August 31,  
Class R    2021      2020  

Sales

     574,171        632,882  

Issued to shareholders electing to receive payments of distributions in Fund shares

     272,796        216,679  

Redemptions

     (777,383      (1,284,803

Net increase (decrease)

     69,584        (435,242

8  Restricted Securities

At August 31, 2021, the Fund owned the following security (representing 0.3% of net assets) which was restricted as to public resale and not registered under the Securities Act of 1933 (excluding Rule 144A securities). The Fund has limited registration rights with respect to this security. The value of restricted securities is determined based on valuations provided by brokers when available, or if not available, they are valued at fair value using methods determined in good faith by or at the direction of the Trustees.

 

Description   

Date of

Acquisition

     Shares      Cost      Value  

Convertible Preferred Stocks

           

Caris Life Sciences, Inc., Series D

     5/12/21        370,300      $ 3,000,000      $ 2,699,487  

Total Convertible Preferred Stocks

                     $ 3,000,000      $ 2,699,487  

Total Restricted Securities

                     $ 3,000,000      $ 2,699,487  

9  Line of Credit

The Fund participates with other portfolios and funds managed by EVM and its affiliates in an $800 million unsecured line of credit agreement with a group of banks, which is in effect through October 26, 2021. Borrowings are made by the Fund solely for temporary purposes related to redemptions and other short-term cash needs. Interest is charged to the Fund based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.15% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. In connection with the renewal of the agreement in October 2020, an upfront fee and arrangement fee totaling $950,000

 

  20  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

was incurred that was allocated to the participating portfolios and funds. Because the line of credit is not available exclusively to the Fund, it may be unable to borrow some or all of its requested amounts at any particular time. The Fund did not have any significant borrowings or allocated fees during the year ended August 31, 2021.

10  Investments in Affiliated Funds

At August 31, 2021, the value of the Fund’s investment in affiliated funds was $6,140,576, which represents 0.5% of the Fund’s net assets. Transactions in affiliated funds by the Fund for the year ended August 31, 2021 were as follows:

 

Name of affiliated fund   Value,
beginning
of period
    Purchases     Sales
proceeds
   

Net

realized

gain (loss)

    Change in
unrealized
appreciation
(depreciation)
    Value, end
of period
    Dividend
income
    Units, end
of period
 

Short-Term Investments

 

           

Eaton Vance Cash Reserves Fund, LLC

  $ 2,567,649     $ 96,671,736     $ (93,098,798   $ (11   $         —     $ 6,140,576     $ 1,626       6,140,576  

11  Fair Value Measurements

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

 

Level 1 – quoted prices in active markets for identical investments

 

 

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

 

Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At August 31, 2021, the hierarchy of inputs used in valuing the Fund’s investments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3*      Total  

Common Stocks

           

Biotechnology

   $ 96,834,645      $ 32,283,020      $      $ 129,117,665  

Health Care Equipment

     265,297,735        15,687,751               280,985,486  

Health Care Services

     35,063,181                      35,063,181  

Health Care Supplies

     20,897,869        23,567,183               44,465,052  

Health Care Technology

     13,149,728        10,268,450               23,418,178  

Life Sciences Tools & Services

     90,215,018        29,954,183               120,169,201  

Managed Health Care

     104,879,533                      104,879,533  

Pharmaceuticals

     243,543,258        204,818,489               448,361,747  

Total Common Stocks

   $ 869,880,967      $ 316,579,076 **     $      $ 1,186,460,043  

Convertible Preferred Stocks

   $      $      $ 2,699,487      $ 2,699,487  

Exchange-Traded Funds

     8,386,425                      8,386,425  

Short-Term Investments

            6,140,576               6,140,576  

Total Investments

   $ 878,267,392      $ 322,719,652      $ 2,699,487      $ 1,203,686,531  

 

*

None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Fund.

 

**

Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets.

 

  21  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Notes to Financial Statements — continued

 

 

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended August 31, 2021 is not presented.

12  Risks and Uncertainties

Risks Associated with Foreign Investments

Foreign investments can be adversely affected by political, economic and market developments abroad, including the imposition of economic and other sanctions by the United States or another country. There may be less publicly available information about foreign issuers because they may not be subject to reporting practices, requirements or regulations comparable to those to which United States companies are subject. Foreign markets may be smaller, less liquid and more volatile than the major markets in the United States. Trading in foreign markets typically involves higher expense than trading in the United States. The Fund may have difficulties enforcing its legal or contractual rights in a foreign country. Securities that trade or are denominated in currencies other than the U.S. dollar may be adversely affected by fluctuations in currency exchange rates.

Concentration of Risk

As the Fund invests a significant portion of its assets in pharmaceutical, biotechnology, life sciences, and health care equipment and services companies, it may be affected by developments that adversely affect such companies. These developments include product obsolescence, the failure of a company to develop new products and the expiration of patent rights. The value of the Fund’s interests can also be impacted by regulatory activities that affect health sciences companies. The Fund has historically held approximately 60 stocks or less at any one time; therefore, it is more sensitive to developments affecting particular stocks than would be a more broadly diversified fund.

Pandemic Risk

An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in late 2019 and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, changes to healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. Health crises caused by outbreaks, such as the coronavirus outbreak, may exacerbate other pre-existing political, social and economic risks and disrupt normal market conditions and operations. The impact of this outbreak has negatively affected the worldwide economy, the economies of individual countries, individual companies, and the market in general, and may continue to do so in significant and unforeseen ways, as may other epidemics and pandemics that may arise in the future. Any such impact could adversely affect the Fund’s performance, or the performance of the securities in which the Fund invests.

 

  22  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Report of Independent Registered Public Accounting Firm

 

 

To the Trustees of Eaton Vance Growth Trust and Shareholders of Eaton Vance Worldwide Health Sciences Fund:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of Eaton Vance Worldwide Health Sciences Fund (the “Fund”) (one of the funds constituting Eaton Vance Growth Trust), including the portfolio of investments, as of August 31, 2021, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of August 31, 2021, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

October 19, 2021

We have served as the auditor of one or more Eaton Vance investment companies since 1959.

 

  23  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Federal Tax Information (Unaudited)

 

 

The Form 1099-DIV you receive in February 2022 will show the tax status of all distributions paid to your account in calendar year 2021. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Fund. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding the status of qualified dividend income for individuals, the dividends received deduction for corporations and capital gains dividends.

Qualified Dividend Income.  For the fiscal year ended August 31, 2021, the Fund designates approximately $16,803,086, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend income eligible for the reduced tax rate of 15%.

Dividends Received Deduction.  Corporate shareholders are generally entitled to take the dividends received deduction on the portion of the Fund’s dividend distribution that qualifies under tax law. For the Fund’s fiscal 2021 ordinary income dividends, 72.19% qualifies for the corporate dividends received deduction.

Capital Gains Dividends.  The Fund hereby designates as a capital gain dividend with respect to the taxable year ended August 31, 2021, $75,309,825 or, if subsequently determined to be different, the net capital gain of such year.

 

  24  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Liquidity Risk Management Program

 

 

The Fund has implemented a written liquidity risk management program (Program) and related procedures to manage its liquidity in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (Liquidity Rule). The Liquidity Rule defines “liquidity risk” as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of the remaining investors’ interests in the fund. The Fund’s Board of Trustees/Directors has designated the investment adviser to serve as the administrator of the Program and the related procedures. The administrator has established a Liquidity Risk Management Oversight Committee (Committee) to perform the functions necessary to administer the Program. As part of the Program, the administrator is responsible for identifying illiquid investments and categorizing the relative liquidity of the Fund’s investments in accordance with the Liquidity Rule. Under the Program, the administrator assesses, manages, and periodically reviews the Fund’s liquidity risk, and is responsible for making certain reports to the Fund’s Board of Trustees/Directors and the Securities and Exchange Commission (SEC) regarding the liquidity of the Fund’s investments, and to notify the Board of Trustees/Directors and the SEC of certain liquidity events specified in the Liquidity Rule. The liquidity of the Fund’s portfolio investments is determined based on a number of factors including, but not limited to, relevant market, trading and investment-specific considerations under the Program.

At a meeting of the Fund’s Board of Trustees/Directors on June 8, 2021, the Committee provided a written report to the Fund’s Board of Trustees/Directors pertaining to the operation, adequacy, and effectiveness of implementation of the Program, as well as the operation of the highly liquid investment minimum (if applicable) for the period January 1, 2020 through December 31, 2020 (Review Period). The Program operated effectively during the Review Period, supporting the administrator’s ability to assess, manage and monitor Fund liquidity risk, including during periods of market volatility and net redemptions. During the Review Period, the Fund met redemption requests on a timely basis.

There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.

 

  25  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Management and Organization

 

 

Fund Management.  The Trustees of Eaton Vance Growth Trust (the Trust) are responsible for the overall management and supervision of the Trust’s affairs. The Trustees and officers of the Trust are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Trustees and officers of the Trust hold indefinite terms of office. The “Noninterested Trustees” consist of those Trustees who are not “interested persons” of the Trust, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, “EVC” refers to Eaton Vance Corp., “EV” refers to EV LLC, “EVM” refers to Eaton Vance Management, “BMR” refers to Boston Management and Research and “EVD” refers to Eaton Vance Distributors, Inc. EV is the trustee of each of EVM and BMR. Effective March 1, 2021, each of EVM, BMR, EVD and EV are indirect, wholly owned subsidiaries of Morgan Stanley. Each officer affiliated with EVM may hold a position with other EVM affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 138 portfolios (with the exception of Messrs. Faust and Wennerholm and Ms. Frost who oversee 137 portfolios) in the Eaton Vance Complex (including all master and feeder funds in a master feeder structure). Each officer serves as an officer of certain other Eaton Vance funds. Each Trustee and officer serves until his or her successor is elected.

 

Name and Year of Birth    Trust
Position(s)
    

Trustee

Since(1)

    

Principal Occupation(s) and Other Directorships

During Past Five Years and Other Relevant Experience

Interested Trustee

Thomas E. Faust Jr.

1958

   Trustee      2007     

Chairman of Morgan Stanley Investment Management, Inc. (MSIM), member of the Board of Managers and President of EV, Chief Executive Officer of EVM and BMR, and Director of EVD. Formerly, Chairman, Chief Executive Officer and President of EVC. Trustee and/or officer of 137 registered investment companies. Mr. Faust is an interested person because of his positions with MSIM, BMR, EVM, EVD, and EV, which are affiliates of the Trust, and his former position with EVC, which was an affiliate of the Trust prior to March 1, 2021.

Other Directorships in the Last Five Years. Formerly, Director of EVC (2007-2021) and Hexavest Inc. (investment management firm) (2012-2021).

Noninterested Trustees

Mark R. Fetting

1954

   Trustee      2016     

Private investor. Formerly held various positions at Legg Mason, Inc. (investment management firm) (2000-2012), including President, Chief Executive Officer, Director and Chairman (2008-2012), Senior Executive Vice President (2004-2008) and Executive Vice President (2001-2004). Formerly, President of Legg Mason family of funds (2001-2008). Formerly, Division President and Senior Officer of Prudential Financial Group, Inc. and related companies (investment management firm) (1991-2000).

Other Directorships in the Last Five Years. None.

Cynthia E. Frost

1961

   Trustee      2014     

Private investor. Formerly, Chief Investment Officer of Brown University (university endowment) (2000-2012). Formerly, Portfolio Strategist for Duke Management Company (university endowment manager) (1995-2000). Formerly, Managing Director, Cambridge Associates (investment consulting company) (1989-1995). Formerly, Consultant, Bain and Company (management consulting firm) (1987-1989). Formerly, Senior Equity Analyst, BA Investment Management Company (1983-1985).

Other Directorships in the Last Five Years. None.

George J. Gorman

1952

   Chairperson of the Board and Trustee      2021 (Chairperson) and 2014 (Trustee)     

Principal at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting firm) (1974-2009).

Other Directorships in the Last Five Years. None.

Valerie A. Mosley

1960

   Trustee      2014     

Chairwoman and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Founder of Upward Wealth, Inc., dba BrightUP, a fintech platform. Formerly, Partner and Senior Vice President, Portfolio Manager and Investment Strategist at Wellington Management Company, LLP (investment management firm) (1992-2012). Formerly, Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990).

Other Directorships in the Last Five Years. Director of DraftKings, Inc. (digital sports entertainment and gaming company) (since September 2020). Director of Groupon, Inc. (e-commerce provider) (since April 2020). Director of Envestnet, Inc. (provider of intelligent systems for wealth management and financial wellness) (since 2018). Formerly, Director of Dynex Capital, Inc. (mortgage REIT) (2013-2020).

 

  26  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Management and Organization — continued

 

 

Name and Year of Birth    Trust
Position(s)
    

Trustee

Since(1)

    

Principal Occupation(s) and Other Directorships

During Past Five Years and Other Relevant Experience

Noninterested Trustees (continued)

William H. Park

1947

   Trustee      2003     

Private investor. Formerly, Consultant (management and transactional) (2012-2014). Formerly, Chief Financial Officer, Aveon Group L.P. (investment management firm) (2010-2011). Formerly, Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (2006-2010). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005). Formerly, Executive Vice President and Chief Financial Officer, United Asset Management Corporation (investment management firm) (1982-2001). Formerly, Senior Manager, Price Waterhouse (now PricewaterhouseCoopers) (a registered public accounting firm) (1972-1981).

Other Directorships in the Last Five Years. None.

Helen Frame Peters

1948

   Trustee      2008     

Professor of Finance, Carroll School of Management, Boston College. Formerly, Dean, Carroll School of Management, Boston College (2000-2002). Formerly, Chief Investment Officer, Fixed Income, Scudder Kemper Investments (investment management firm) (1998-1999). Formerly, Chief Investment Officer, Equity and Fixed Income, Colonial Management Associates (investment management firm) (1991-1998).

Other Directorships in the Last Five Years. None.

Keith Quinton

1958

   Trustee      2018     

Private investor, researcher and lecturer. Formerly, Independent Investment Committee Member at New Hampshire Retirement System (2017-2021). Formerly, Portfolio Manager and Senior Quantitative Analyst at Fidelity Investments (investment management firm) (2001-2014).

Other Directorships in the Last Five Years. Formerly, Director (2016-2021) and Chairman (2019-2021) of New Hampshire Municipal Bond Bank.

Marcus L. Smith

1966

   Trustee      2018     

Private investor. Formerly, Portfolio Manager at MFS Investment Management (investment management firm) (1994-2017).

Other Directorships in the Last Five Years. Director of First Industrial Realty Trust, Inc. (an industrial REIT) (since 2021). Director of MSCI Inc. (global provider of investment decision support tools) (since 2017). Formerly, Director of DCT Industrial Trust Inc. (logistics real estate company) (2017-2018).

Susan J. Sutherland

1957

   Trustee      2015     

Private investor. Director of Ascot Group Limited and certain of its subsidiaries (insurance and reinsurance) (since 2017). Formerly, Director of Hagerty Holding Corp. (insurance) (2015-2018) and Montpelier Re Holdings Ltd. (insurance and reinsurance) (2013-2015). Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013).

Other Directorships in the Last Five Years. Director of Kairos Acquisition Corp. (insurance/InsurTech acquisition company) (since 2021).

Scott E. Wennerholm

1959

   Trustee      2016     

Private investor. Formerly, Trustee at Wheelock College (postsecondary institution) (2012-2018). Formerly, Consultant at GF Parish Group (executive recruiting firm) (2016-2017). Formerly, Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm) (2005-2011). Formerly, Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm) (1997-2004). Formerly, Vice President at Fidelity Investments Institutional Services (investment management firm) (1994-1997).

Other Directorships in the Last Five Years. None.

 

Name and Year of Birth   

Trust

Position(s)

     Officer
Since
(2)
    

Principal Occupation(s)

During Past Five Years

Principal Officers who are not Trustees

Eric A. Stein

1980

   President      2020      Vice President and Chief Investment Officer, Fixed Income of EVM and BMR. Prior to November 1, 2020, Mr. Stein was a co-Director of Eaton Vance’s Global Income Investments. Also Vice President of Calvert Research and Management (“CRM”).

Deidre E. Walsh

1971

   Vice President and Chief Legal Officer      2009      Vice President of EVM and BMR. Also Vice President of CRM.

James F. Kirchner

1967

   Treasurer      2007      Vice President of EVM and BMR. Also Vice President of CRM.

 

  27  


Eaton Vance

Worldwide Health Sciences Fund

August 31, 2021

 

Management and Organization — continued

 

 

Name and Year of Birth   

Trust

Position(s)

     Officer
Since
(2)
    

Principal Occupation(s)

During Past Five Years

Principal Officers who are not Trustees (continued)

Kimberly M. Roessiger

1985

   Secretary      2021      Vice President of EVM and BMR.

Richard F. Froio

1968

   Chief Compliance Officer      2017      Vice President of EVM and BMR since 2017. Formerly, Deputy Chief Compliance Officer (Adviser/Funds) and Chief Compliance Officer (Distribution) at PIMCO (2012-2017) and Managing Director at BlackRock/Barclays Global Investors (2009-2012).

 

(1) 

Year first appointed to serve as Trustee for a fund in the Eaton Vance family of funds. Each Trustee has served continuously since appointment unless indicated otherwise.

(2) 

Year first elected to serve as officer of a fund in the Eaton Vance family of funds when the officer has served continuously. Otherwise, year of most recent election as an officer of a fund in the Eaton Vance family of funds. Titles may have changed since initial election.

The SAI for the Fund includes additional information about the Trustees and officers of the Fund and can be obtained without charge on Eaton Vance’s website at www.eatonvance.com or by calling 1-800-262-1122.

 

  28  


Eaton Vance Funds

 

Privacy Notice    April 2021

 

 

FACTS    WHAT DOES EATON VANCE DO WITH YOUR
PERSONAL INFORMATION?
      
  
Why?    Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
   
      
What?   

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

 

   Social Security number and income

   investment experience and risk tolerance

   checking account number and wire transfer instructions

   
      
How?    All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance chooses to share; and whether you can limit this sharing.
   
      

 

Reasons we can share your
personal information
   Does Eaton Vance share?    Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus    Yes    No
For our marketing purposes — to offer our products and services to you    Yes    No
For joint marketing with other financial companies    No    We don’t share
For our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness    Yes    Yes
For our affiliates’ everyday business purposes — information about your transactions and experiences    Yes    No
For our affiliates’ everyday business purposes — information about your creditworthiness    No    We don’t share
For our investment management affiliates to market to you    Yes    Yes
For our affiliates to market to you    No    We don’t share
For nonaffiliates to market to you    No    We don’t share

 

To limit our sharing   

Call toll-free 1-800-262-1122 or email: [email protected]

 

Please note:

 

If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.

   
      
   
Questions?    Call toll-free 1-800-262-1122 or email: [email protected]
   
      

 

  29  


Eaton Vance Funds

 

Privacy Notice — continued    April 2021

 

 

Page 2     

 

Who we are
Who is providing this notice?   Eaton Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below)
What we do
How does Eaton Vance protect my personal information?   To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does Eaton Vance collect my personal information?  

We collect your personal information, for example, when you

 

   open an account or make deposits or withdrawals from your account

   buy securities from us or make a wire transfer

   give us your contact information

 

We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Why can’t I limit all sharing?  

Federal law gives you the right to limit only

 

   sharing for affiliates’ everyday business purposes — information about your creditworthiness

   affiliates from using your information to market to you

   sharing for nonaffiliates to market to you

 

State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Definitions
Investment Management Affiliates   Eaton Vance Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates  

Companies related by common ownership or control. They can be financial and nonfinancial companies.

 

   Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.

Nonaffiliates  

Companies not related by common ownership or control. They can be financial and nonfinancial companies.

 

   Eaton Vance does not share with nonaffiliates so they can market to you.

Joint marketing  

A formal agreement between nonaffiliated financial companies that together market financial products or services to you.

 

   Eaton Vance doesn’t jointly market.

Other important information

Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such information.

 

California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

 

  30  


Eaton Vance Funds

 

IMPORTANT NOTICES

 

 

Delivery of Shareholder Documents.  The Securities and Exchange Commission (SEC) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders. Eaton Vance, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial intermediary, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial intermediary. Your instructions that householding not apply to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by Eaton Vance or your financial intermediary.

Portfolio Holdings.  Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) files a schedule of portfolio holdings on Part F to Form N-PORT with the SEC. Certain information filed on Form N-PORT may be viewed on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov.

Proxy Voting.  From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-262-1122 and by accessing the SEC’s website at www.sec.gov.

 

  31  


This Page Intentionally Left Blank


Investment Adviser and Administrator

Eaton Vance Management

Two International Place

Boston, MA 02110

Investment Sub-Adviser

Eaton Vance Advisers International Ltd.

125 Old Broad Street

London, EC2N 1AR

United Kingdom

Principal Underwriter*

Eaton Vance Distributors, Inc.

Two International Place

Boston, MA 02110

(617) 482-8260

Custodian

State Street Bank and Trust Company

State Street Financial Center, One Lincoln Street

Boston, MA 02111

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Attn: Eaton Vance Funds

P.O. Box 9653

Providence, RI 02940-9653

(800) 262-1122

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

200 Berkeley Street

Boston, MA 02116-5022

Fund Offices

Two International Place

Boston, MA 02110

 
*

FINRA BrokerCheck.  Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to investors at www.FINRA.org.


LOGO

 

LOGO

426    8.31.21


Item 2. Code of Ethics

The registrant (sometimes referred to as the “Fund”) has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. The registrant has not amended the code of ethics as described in Form N-CSR during the period covered by this report. The registrant has not granted any waiver, including an implicit waiver, from a provision of the code of ethics as described in Form N-CSR during the period covered by this report.

Item 3. Audit Committee Financial Expert

The registrant’s Board of Trustees (the “Board”) has designated George J. Gorman, William H. Park and Scott E. Wennerholm, each an independent trustee, as audit committee financial experts. Mr. Gorman is a certified public accountant who is the Principal at George J. Gorman LLC (a consulting firm). Previously, Mr. Gorman served in various capacities at Ernst & Young LLP (a registered public accounting firm), including as Senior


Partner. Mr. Gorman also has experience serving as an independent trustee and audit committee financial expert of other mutual fund complexes. Mr. Park is a certified public accountant who is a private investor. Previously, he served as a consultant, as the Chief Financial Officer of Aveon Group, L.P. (an investment management firm), as the Vice Chairman of Commercial Industrial Finance Corp. (specialty finance company), as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm), as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (an institutional investment management firm) and as a Senior Manager at Price Waterhouse (now PricewaterhouseCoopers) (a registered public accounting firm). Mr. Wennerholm is a private investor. Previously, Mr. Wennerholm served as a Trustee at Wheelock College (postsecondary institution), as a Consultant at GF Parish Group (executive recruiting firm), Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm) Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm), and Vice President at Fidelity Investments Institutional Services (investment management firm).

Item 4. Principal Accountant Fees and Services

Eaton Vance Greater China Growth Fund, Eaton Vance Richard Bernstein All Asset Strategy Fund, Eaton Vance Richard Bernstein Equity Strategy Fund and Eaton Vance Worldwide Health Sciences Fund (the “Fund(s)”) are series of Eaton Vance Growth Trust (the “Trust”), a Massachusetts business trust, which, including the Funds, contains a total of 11 series (the “Series”). The Trust is registered under the Investment Company Act of 1940 as an open-end management investment company. This Form N-CSR relates to the Funds’ annual reports.

(a)-(d)

The following tables present the aggregate fees billed to each Fund for the Fund’s fiscal years ended August 31, 2020 and August 31, 2021 by the registrant’s principal accountant, Deloitte & Touche LLP (“D&T”), for professional services rendered for the audit of the Funds’ annual financial statements and fees billed for other services rendered by D&T during those periods.

Eaton Vance Greater China Growth Fund

 

Fiscal Years Ended

   8/31/20      8/31/21  

Audit Fees

   $ 47,950      $ 47,950  

Audit-Related Fees(1)

   $ 0      $ 0  

Tax Fees(2)

   $ 14,285      $ 12,635  

All Other Fees(3)

   $ 0      $ 0  
  

 

 

    

 

 

 

Total

   $ 62,235      $ 60,585  
  

 

 

    

 

 

 


Eaton Vance Richard Bernstein All Asset Strategy Fund

 

Fiscal Years Ended

   8/31/20      8/31/21  

Audit Fees

   $ 44,950      $ 34,950  

Audit-Related Fees(1)

   $ 0      $ 0  

Tax Fees(2)

   $ 12,485      $ 12,335  

All Other Fees(3)

   $ 0      $ 0  
  

 

 

    

 

 

 

Total

   $ 57,435      $ 47,285  
  

 

 

    

 

 

 

Eaton Vance Richard Bernstein Equity Strategy Fund

 

Fiscal Years Ended

   8/31/20      8/31/21  

Audit Fees

   $ 43,650      $ 33,650  

Audit-Related Fees(1)

   $ 0      $ 0  

Tax Fees(2)

   $ 12,591      $ 12,266  

All Other Fees(3)

   $ 0      $ 0  
  

 

 

    

 

 

 

Total

   $ 56,241      $ 45,916  
  

 

 

    

 

 

 

Eaton Vance Worldwide Health Sciences Fund

 

Fiscal Years Ended

   8/31/20      8/31/21  

Audit Fees

   $ 50,650      $ 47,050  

Audit-Related Fees(1)

   $ 0      $ 0  

Tax Fees(2)

   $ 20,950      $ 16,800  

All Other Fees(3)

   $ 0      $ 0  
  

 

 

    

 

 

 

Total

   $ 71,600      $ 63,850  
  

 

 

    

 

 

 

 

(1) 

Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under the category of audit fees.

(2) 

Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other related tax compliance/planning matters.

(3) 

All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services.

The various Series comprising the Trust have varying fiscal year ends (February 28, August 31, September 30 or November 30). The following table presents the aggregate audit, audit-related, tax, and other fees billed to all of the Series in the Trust by D&T for the last two fiscal years of each Series.


Fiscal Years Ended

   9/30/19      11/30/19      2/29/20      7/31/20      8/31/20      9/30/20      11/30/20      2/28/21      8/31/21  

Audit Fees

   $ 111,750      $ 56,900      $ 56,100      $ 108,550      $ 187,200      $ 111,750      $ 56,900      $ 56,100      $ 163,600  

Audit-Related Fees(1)

   $ 0      $ 0      $ 0      $ 0      $ 0      $ 0      $ 0      $ 0      $ 0  

Tax Fees(2)

   $ 40,881      $ 25,796      $ 21,460      $ 44,911      $ 60,311      $ 38,476      $ 21,701      $ 18,840      $ 54,036  

All Other Fees(3)

   $ 0      $ 0      $ 0      $ 0      $ 0      $ 0      $ 0      $ 0      $ 0  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 152,631      $ 82,696      $ 77,560      $ 153,461      $ 247,511      $ 150,226      $ 78,601      $ 74,940      $ 217,636  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under the category of audit fees. Includes consent fee for N-14 registration statements related to fund mergers.

(2) 

Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation and other related tax compliance/planning matters.

(3) 

All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services.

(e)(1) The registrant’s audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant’s principal accountant (the “Pre-Approval Policies”). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee.

The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant’s audit committee at least annually. The registrant’s audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant’s principal accountant.

(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant’s audit committee pursuant to the “de minimis exception” set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X.

(f) Not applicable.


(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to all of the Series in the Trust by D&T for the last two fiscal years of each Series; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization by D&T for the last 2 fiscal years of each Series.

 

Fiscal Years Ended

   9/30/19      11/30/19      2/29/20      7/31/20      8/31/20      9/30/20      11/30/20      2/28/21      8/31/21  

Registrant(1)

   $ 40,881      $ 25,796      $ 21,460      $ 44,911      $ 60,311      $ 38,476      $ 21,701      $ 18,840      $ 54,036  

Eaton Vance(2)

   $ 59,903      $ 59,903      $ 59,903      $ 51,800      $ 51,800      $ 51,800      $ 51,800      $ 150,300      $ 150,300  

 

(1)

Includes all of the Series of the Trust. During the fiscal years reported above, certain of the Funds were “feeder” funds in a “master-feeder” fund structure or funds of funds.

(2)

Various subsidiaries of Morgan Stanley act in either an investment advisory and/or service provider capacity with respect to the Series and/or their respective “master” funds (if applicable).

(h) The registrant’s audit committee has considered whether the provision by the registrant’s principal accountant of non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants

Not applicable.    

Item 6. Schedule of Investments

Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

No material changes.


Item 11. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

Not applicable.

Item 13. Exhibits

 

(a)(1)   Registrant’s Code of Ethics – Not applicable (please see Item 2).
(a)(2)(i)   Treasurer’s Section 302 certification.
(a)(2)(ii)   President’s Section 302 certification.
(b)   Combined Section 906 certification.


Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Eaton Vance Growth Trust
By:   /s/ Eric A. Stein
  Eric A. Stein
  President
Date:   October 25, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:   /s/ James F. Kirchner
 

James F. Kirchner

 

Treasurer

Date:

 

October 25, 2021

By:   /s/ Eric A. Stein
 

Eric A. Stein

 

President

Date:

 

October 25, 2021

EATON VANCE GROWTH TRUST

FORM N-CSR

Exhibit 13(a)(2)(i)

CERTIFICATION

I, James F. Kirchner, certify that:

1. I have reviewed this report on Form N-CSR of Eaton Vance Growth Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: October 25, 2021     /s/ James F. Kirchner
    James F. Kirchner
    Treasurer

 


EATON VANCE GROWTH TRUST

FORM N-CSR

Exhibit 13(a)(2)(ii)

CERTIFICATION

I, Eric A. Stein, certify that:

1. I have reviewed this report on Form N-CSR of Eaton Vance Growth Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: October 25, 2021     /s/ Eric A. Stein
    Eric A. Stein
    President

 

Form N-CSR Item 13(b) Exhibit

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certify in their capacity as Treasurer and President, respectively, of Eaton Vance Growth Trust (the “Trust”) that:

 

(a)

The Annual Report of the Trust on Form N-CSR for the period ended August 31, 2021 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

(b)

The information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Trust for such period.

A signed original of this written statement required by section 906 has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request.

 

Eaton Vance Growth Trust

Date: October 25, 2021

/s/ James F. Kirchner

James F. Kirchner

Treasurer

Date: October 25, 2021

/s/ Eric A. Stein

Eric A. Stein

President



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