Eaton Vance Global Small-Cap Strategy - offering exposure to 'compounders' and 'improvers'

The Eaton Vance Global Small-Cap Strategy offers exposure to a broadly diversified portfolio of global, high quality, small cap companies.

The investment philosophy is based on a belief that superior returns can be generated by identifying, valuing and investing primarily in two types of companies - those which exhibit the characteristics of defendable structural growth ('compounders') and those which are benefiting from structural change ('improvers'). The breadth and relative inefficiency of the small cap universe provides fertile territory in which to pursue this philosophy and, in doing so, the aim is to achieve long term capital appreciation and market-beating returns.

Characteristics of Compounders (Structural Growers)
* Strong barriers to entry
* Clear competitive advantage(s)
* Scalability of business
* Differentiation of products and services
* Industry or niche benefiting from structural growth

Characteristics of Improvers (Structural Change)
* Positive agents of change identified
* New senior management
* Product development
* Regulation
* Corporate structure