-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GlBXjwEHZwP7mwjkKkonibHf2+stIznfz41vwkj6u+zcyVFd2YQEImTglqw+Ipku Y0/b9X0iWoMlbY97iC+rZA== 0000912057-00-021660.txt : 20000505 0000912057-00-021660.hdr.sgml : 20000505 ACCESSION NUMBER: 0000912057-00-021660 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000229 FILED AS OF DATE: 20000504 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE GROWTH TRUST CENTRAL INDEX KEY: 0000102816 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 042325690 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-01241 FILM NUMBER: 618825 BUSINESS ADDRESS: STREET 1: 24 FEDERAL ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174828260 MAIL ADDRESS: STREET 1: 24 FEDERAL ST STREET 2: 11TH FLOOR CITY: BOSTON STATE: MA ZIP: 02210 FORMER COMPANY: FORMER CONFORMED NAME: EATON VANCE GROWTH FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: VANCE SANDERS COMMON STOCK FUND INC DATE OF NAME CHANGE: 19820915 FORMER COMPANY: FORMER CONFORMED NAME: BOSTON STOCK FUND INC DATE OF NAME CHANGE: 19730619 N-30D 1 N-30D [LOGO] [PHOTO] Semiannual Report February 29, 2000 [PHOTO] EATON VANCE INFORMATION AGE FUND [LOGO] [PHOTO] EATON VANCE INFORMATION AGE FUND AS OF FEBRUARY 29, 2000 - -------------------------------------------------------------------------------- INVESTMENT UPDATE - -------------------------------------------------------------------------------- [PHOTO] Duncan W. Richardson Co-Portfolio Manager [PHOTO] Hon. Jacob Rees-Mogg Co-Portfolio Manager INVESTMENT ENVIRONMENT - -------------------------------------------------------------------------------- - - U.S. equity markets continued to break new ground in 1999, with all major indices reaching record highs. The majority of the markets' returns were from a very narrow group of stocks, primarily in the volatile technology sector. In the early months of 2000, tech stocks continued to dominate the battle between the "old" and "new" economies. - - Information Age companies - those that create, process, and disseminate information - are transforming the global economy. In the U.S. and abroad, surging demand for information has been accompanied by unprecedented advancements in technology. Info Age companies of all types stand to benefit from these unfolding opportunities. THE FUND - -------------------------------------------------------------------------------- The Past Six Months - - During the six months ended February 29, 2000, the Fund's Class A shares had a total return of 60.02%. This return was the result of an increase in net asset value (NAV)to $24.42 on February 29, 2000 from $17.34 on August 31, 1999, and the reinvestment of $2.226 in capital gains distributions.(1) - - Class B shares had a total return of 60.03% during the period; the result of an increase in NAV to $25.12 from $17.77, and the reinvestment of $2.226 per share in capital gains distributions.(1) - - Class C shares had a total return of 59.82% during the period, the result of an increase in NAV to $24.25 from $17.28, and the reinvestment of $2.226 per share in capital gains distributions.(1) Management Discussion - - The Fund posted outstanding returns over the six months ended February 29, 2000, due in large part to the tremendous showing of Information Age companies across the board, particularly those in the telecommunications sector. At the end of March 2000, the Information Age Fund, Class A shares, was ranked by Lipper, Inc. among the top 10 global growth funds over the 1- and 3-year period, out of 259 and 171 global funds, respectively. - - Technology stocks have seen historic levels of volatility over the past six months. We have designed a strategy of diversifying investments by three criteria-country, industry, and market capitalization - in an effort to give the Portfolio the flexibility to respond to market turbulence, seize more investment opportunities, and avoid overvalued markets or sectors. - - European markets have also been robust, with technology, media, and telecom companies all strong over the last 6 months. With the European economy projected by analysts to grow by a healthy 3% in 2000, we believe Europe-based Info Age companies should have a favorable economic backdrop. - - The main trends that the Information Age Fund was designed to capture - growing demand for information driven by technological advances and global deregulation - should continue for years going forward. We believe that ongoing consolidation and competition in numerous industries could create exciting investment opportunities, which our research teams around the world will work to uncover. - - For risk-adjusted performance through February 29, 2000, the Fund's A, B, and C shares earned Five-Star Overall Morningstar -TM- Ratings - a nationally recognized monitor of mutual fund performance - placing the Fund in the top 10% among 1120 international equity funds.* *Morningstar ratings reflect historical risk-adjusted performance through 2/29/00 and are subject to change every month. Past performance is no guarantee of future results. Funds are assigned ratings from 1 star (lowest) to 5 stars (highest). Ratings are calculated from the funds' 3-year average annual return (with fee adjustment) in excess of 90-day Treasury bill returns, and a risk factor that reflects fund performance below 90-day Treasury bill returns. The top 10% of the funds in a category receive 5 stars. For the 3-year period, the Fund's Class A, B,and C shares were rated 5 stars (1120 funds). Morningstar ratings for Class B and C shares have been lower over selected periods. - -------------------------------------------------------------------------------- FUND INFORMATION AS OF FEBRUARY 29, 2000
PERFORMANCE(2) Class A Class B Class C - ------------------------------------------------------------------------------------------------------ Average Annual Total Returns (at net asset value) - ------------------------------------------------------------------------------------------------------ One Year 95.00% 94.64% 94.21% Life of Fund+ 31.61 31.33 31.48 SEC Average Annual Total Returns (including sales charge or applicable CDSC) - ------------------------------------------------------------------------------------------------------ One Year 83.76% 89.64% 93.21% Life of Fund+ 29.88 31.16 31.48 +Inception Dates - Class A: 9/18/95; Class B: 9/18/95; Class C: 11/22/95
- -------------------------------------------------------------------------------- MUTUAL 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. - --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS(3) By total net assets - -------------------------------------------------------------------------------- Nippon Broadcasting System 2.2% Yline Internet Business 2.1 NTT Mobile Communication Network, Inc. 2.0 Tecnomatix Technologies Ltd. 1.9 Pearson PLC 1.9 TV Francaise 1.9 Sony Corp. 1.7 Cable and Wireless PLC 1.6 Toyoda Gosei Co. Ltd. 1.6 Endemol Entertainment 1.5
(1) These returns do not include the 5.75% maximum sales charge for the Fund's Class A shares or the applicable contingent deferred sales charges (CDSC) for Class B and Class C shares. (2) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. SEC returns for Class A reflect the maximum 5.75% sales charge. SEC returns for Class B reflect applicable CDSC based on the following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. SEC 1-Year return for Class C reflects 1% CDSC. (3) Ten largest equity holdings accounted for 18.4% of the Portfolio's net assets. Holdings are subject to change. Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. 2 EATON VANCE INFORMATION AGE FUND AS OF FEBRUARY 29, 2000 FINANCIAL STATEMENTS (UNAUDITED) STATEMENT OF ASSETS AND LIABILITIES
AS OF FEBRUARY 29, 2000 Assets - ------------------------------------------------------ Investment in Information Age Portfolio, at value (identified cost, $167,371,764) $224,335,637 Receivable for Fund shares sold 2,857,843 Tax reclaim receivable 17,661 Deferred organization expenses 15,940 - ------------------------------------------------------ TOTAL ASSETS $227,227,081 - ------------------------------------------------------ Liabilities - ------------------------------------------------------ Payable for Fund shares redeemed $ 664,109 Payable to affiliate for service fees 28,811 Payable to affiliate for Trustees' fees 287 Accrued expenses 41,128 - ------------------------------------------------------ TOTAL LIABILITIES $ 734,335 - ------------------------------------------------------ NET ASSETS $226,492,746 - ------------------------------------------------------ Sources of Net Assets - ------------------------------------------------------ Paid-in capital $150,059,903 Accumulated undistributed net realized gain from Portfolio (computed on the basis of identified cost) 20,560,300 Accumulated net investment loss (1,091,330) Net unrealized appreciation from Portfolio (computed on the basis of identified cost) 56,963,873 - ------------------------------------------------------ TOTAL $226,492,746 - ------------------------------------------------------ Class A Shares - ------------------------------------------------------ NET ASSETS $ 56,021,775 SHARES OUTSTANDING 2,294,079 NET ASSET VALUE AND REDEMPTION PRICE PER SHARE (net assets DIVIDED BY shares of beneficial interest outstanding) $ 24.42 MAXIMUM OFFERING PRICE PER SHARE (100 DIVIDED BY 94.25 of $24.42) $ 25.91 - ------------------------------------------------------ Class B Shares - ------------------------------------------------------ NET ASSETS $139,120,163 SHARES OUTSTANDING 5,538,774 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE (NOTE 6) (net assets DIVIDED BY shares of beneficial interest outstanding) $ 25.12 - ------------------------------------------------------ Class C Shares - ------------------------------------------------------ NET ASSETS $ 31,350,808 SHARES OUTSTANDING 1,292,997 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE (NOTE 6) (net assets DIVIDED BY shares of beneficial interest outstanding) $ 24.25 - ------------------------------------------------------
On sales of $50,000 or more, the offering price of Class A shares is reduced. STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000 Investment Income - ----------------------------------------------------- Interest allocated from Portfolio $ 285,404 Dividends allocated from Portfolio (net of foreign taxes, $12,816) 224,392 Expenses allocated from Portfolio (738,455) - ----------------------------------------------------- NET INVESTMENT LOSS FROM PORTFOLIO $ (228,659) - ----------------------------------------------------- Expenses - ----------------------------------------------------- Management fee $ 161,298 Trustees fees and expenses 947 Distribution and service fees Class A 83,951 Class B 378,941 Class C 71,751 Transfer and dividend disbursing agent fees 81,670 Registration fees 17,828 Printing and postage 17,156 Legal and accounting services 13,445 Amortization of organization expenses 12,696 Custodian fee 6,481 Miscellaneous 16,507 - ----------------------------------------------------- TOTAL EXPENSES $ 862,671 - ----------------------------------------------------- NET INVESTMENT LOSS $(1,091,330) - ----------------------------------------------------- Realized and Unrealized Gain (Loss) from Portfolio - ----------------------------------------------------- Net realized gain (loss) -- Investment transactions (identified cost basis) $22,934,223 Foreign currency and forward foreign currency exchange contract transactions (88,387) - ----------------------------------------------------- NET REALIZED GAIN $22,845,836 - ----------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $39,495,514 Foreign currency 8,596 - ----------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $39,504,110 - ----------------------------------------------------- NET REALIZED AND UNREALIZED GAIN $62,349,946 - ----------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $61,258,616 - -----------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 3 EATON VANCE INFORMATION AGE FUND AS OF FEBRUARY 29, 2000 FINANCIAL STATEMENTS CONT'D STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED INCREASE (DECREASE) FEBRUARY 29, 2000 YEAR ENDED IN NET ASSETS (UNAUDITED) AUGUST 31, 1999 - ---------------------------------------------------------------------------- From operations -- Net investment loss $ (1,091,330) $ (1,036,898) Net realized gain 22,845,836 9,797,399 Net change in unrealized appreciation (depreciation) 39,504,110 15,401,374 - ---------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 61,258,616 $ 24,161,875 - ---------------------------------------------------------------------------- Distributions to shareholders -- From net realized gain Class A $ (2,969,386) $ (623,957) Class B (6,970,791) (1,503,429) Class C (1,014,682) (131,635) - ---------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (10,954,859) $ (2,259,021) - ---------------------------------------------------------------------------- Transactions in shares of beneficial interest -- Proceeds from sale of shares Class A $ 24,191,451 $ 8,076,961 Class B 55,850,165 10,983,681 Class C 19,253,587 3,329,088 Net asset value of shares issued to shareholders in payment of distributions declared Class A 2,797,840 585,157 Class B 6,441,541 1,385,737 Class C 979,586 126,075 Cost of shares redeemed Class A (4,911,126) (5,987,469) Class B (4,659,765) (7,349,983) Class C (742,761) (1,187,646) - ---------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS $ 99,200,518 $ 9,961,601 - ---------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 149,504,275 $ 31,864,455 - ---------------------------------------------------------------------------- Net Assets - ---------------------------------------------------------------------------- At beginning of period $ 76,988,471 $ 45,124,016 - ---------------------------------------------------------------------------- AT END OF PERIOD $ 226,492,746 $ 76,988,471 - ---------------------------------------------------------------------------- Accumulated net investment loss included in net assets - ---------------------------------------------------------------------------- AT END OF PERIOD $ (1,091,330) $ -- - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 4 EATON VANCE INFORMATION AGE FUND AS OF FEBRUARY 29, 2000 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS
CLASS A ------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31, FEBRUARY 29, 2000 ---------------------- (UNAUDITED)(1) 1999(1) 1998 - ----------------------------------------------------------------------------- Net asset value -- Beginning of period $17.340 $11.710 $11.970 - ----------------------------------------------------------------------------- Income (loss) from operations - ----------------------------------------------------------------------------- Net investment loss $(0.137) $(0.217) $(0.156) Net realized and unrealized gain 9.443 6.469 0.431 - ----------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 9.306 $ 6.252 $ 0.275 - ----------------------------------------------------------------------------- Less distributions - ----------------------------------------------------------------------------- From net realized gain $(2.226) $(0.622) $(0.535) - ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $(2.226) $(0.622) $(0.535) - ----------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD $24.420 $17.340 $11.710 - ----------------------------------------------------------------------------- TOTAL RETURN(2) 60.02% 54.95% 2.32% - ----------------------------------------------------------------------------- Ratios/Supplemental Data - ----------------------------------------------------------------------------- Net assets, end of period (000's omitted) $56,022 $20,908 $12,263 Ratios (As a percentage of average daily net assets): Expenses(3) 2.14%(4) 2.46% 2.68% Net investment loss (1.35)%(4) (1.47)% (1.20)% Portfolio Turnover of the Portfolio 67% 131% 157% - -----------------------------------------------------------------------------
(1) Net investment loss per share was computed using average shares outstanding. (2) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed reinvested at the net asset value on the reinvestment date. Total return is not computed on an annualized basis. (3) Includes the Fund's share of the Portfolio's allocated expenses. (4) Annualized. SEE NOTES TO FINANCIAL STATEMENTS 5 EATON VANCE INFORMATION AGE FUND AS OF FEBRUARY 29, 2000 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS
CLASS B ---------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31, FEBRUARY 29, 2000 ------------------------------------------------- (UNAUDITED)(1) 1999(1) 1998 1997 1996(1)(2) - -------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period $ 17.770 $12.030 $12.310 $11.040 $10.000 - -------------------------------------------------------------------------------------------------------- Income (loss) from operations - -------------------------------------------------------------------------------------------------------- Net investment loss $ (0.186) $(0.284) $(0.210) $(0.178) $(0.134) Net realized and unrealized gain 9.762 6.646 0.465 2.490 1.174 - -------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 9.576 $ 6.362 $ 0.255 $ 2.312 $ 1.040 - -------------------------------------------------------------------------------------------------------- Less distributions - -------------------------------------------------------------------------------------------------------- From net realized gain $ (2.226) $(0.622) $(0.535) $(1.042) $ -- - -------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ (2.226) $(0.622) $(0.535) $(1.042) $ -- - -------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD $ 25.120 $17.770 $12.030 $12.310 $11.040 - -------------------------------------------------------------------------------------------------------- TOTAL RETURN(3) 60.03% 54.39% 2.08% 20.79% 10.40% - -------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data - -------------------------------------------------------------------------------------------------------- Net assets, end of period (000's omitted) $139,120 $49,963 $30,331 $29,037 $21,800 Ratios (As a percentage of average daily net assets): Expenses(4) 2.57%(5) 2.87% 3.12% 3.19% 2.96%(5) Net investment loss (1.79)%(5) (1.88)% (1.64)% (1.67)% (1.34)%(5) Portfolio Turnover of the Portfolio 67% 131% 157% 160% 115% - --------------------------------------------------------------------------------------------------------
(1) Net investment loss per share was computed using average shares outstanding. (2) For the period from the start of business, September 18, 1995, to August 31, 1996. (3) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed reinvested at the net asset value on the reinvestment date. Total return is not computed on an annualized basis. (4) Includes the Fund's share of the Portfolio's allocated expenses. (5) Annualized. SEE NOTES TO FINANCIAL STATEMENTS 6 EATON VANCE INFORMATION AGE FUND AS OF FEBRUARY 29, 2000 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS
CLASS C ------------------------------------------- SIX MONTHS ENDED YEAR ENDED AUGUST 31, FEBRUARY 29, 2000 ---------------------- (UNAUDITED) 1999(1) 1998 - ----------------------------------------------------------------------------- Net asset value -- Beginning of period $17.280 $11.720 $12.020 - ----------------------------------------------------------------------------- Income (loss) from operations - ----------------------------------------------------------------------------- Net investment loss $(0.188) $(0.290) $(0.205) Net realized and unrealized gain 9.384 6.472 0.440 - ----------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 9.196 $ 6.182 $ 0.235 - ----------------------------------------------------------------------------- Less distributions - ----------------------------------------------------------------------------- From net realized gain $(2.226) $(0.622) $(0.535) - ----------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $(2.226) $(0.622) $(0.535) - ----------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD $24.250 $17.280 $11.720 - ----------------------------------------------------------------------------- TOTAL RETURN(2) 59.82% 54.29% 1.96% - ----------------------------------------------------------------------------- Ratios/Supplemental Data - ----------------------------------------------------------------------------- Net assets, end of period (000's omitted) $31,351 $ 6,118 $ 2,531 Ratios (As a percentage of average daily net assets): Expenses(3) 2.63%(4) 2.93% 3.20% Net investment loss (1.85)%(4) (1.94)% (1.72)% Portfolio Turnover of the Portfolio 67% 131% 157% - -----------------------------------------------------------------------------
(1) Net investment loss per share was computed using average shares outstanding. (2) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed reinvested at the net asset value on the reinvestment date. Total return is not computed on an annualized basis. (3) Includes the Fund's share of the Portfolio's allocated expenses. (4) Annualized. SEE NOTES TO FINANCIAL STATEMENTS 7 EATON VANCE INFORMATION AGE FUND AS OF FEBRUARY 29, 2000 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1 Significant Accounting Policies - ------------------------------------------- Eaton Vance Information Age Fund (the Fund) is a diversified series of Eaton Vance Growth Trust (the Trust). The Trust is an entity of the type commonly known as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund offers three classes of shares. Class A shares are generally sold subject to a sales charge imposed at time of purchase. Class B and Class C shares are sold at the net asset value and are subject to a contingent deferred sales charge (see Note 6). 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, 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 Fund invests all of its investable assets in interests in Information Age Portfolio (the Portfolio), a New York Trust, having the same investment objective as the Fund. The value of the Fund's investment in the Portfolio reflects the Fund's proportionate interest in the net assets of the Portfolio (74.6% at February 29, 2000). The performance of the Fund is directly affected by the performance of the Portfolio. The financial statements of the Portfolio, including the portfolio of investments, are included elsewhere in this report and should be read in conjunction with the Fund's financial statements. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A Investment Valuation -- Valuation of securities by the Portfolio is discussed in Note 1A of the Portfolio's Notes to Financial Statements which are included elsewhere in this report. B Income -- The Fund's net investment income or loss consists of the Fund's pro rata share of the net investment income of the Portfolio, less all actual and accrued expenses of the Fund determined in accordance with generally accepted accounting principles. C 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 all of its net investment income, if any, and any net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. D Deferred Organization Expenses -- Costs incurred by each Fund in connection with its organization, including registration costs, are being amortized on the straight-line basis over five years. E Use of Estimates -- The preparation of the financial statements in conformity with generally accepted accounting principles 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. F Interim Financial Statements -- The interim financial statements relating to February 29, 2000 and for the six months then ended have not been audited by independent certified public accountants, but in the opinion of the Fund's management reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements. 2 Distributions to Shareholders - ------------------------------------------- It is the present policy of the Fund to make at least one distribution annually (normally in December) of all or substantially all of the investment income allocated to the Fund by the Portfolio, less the Fund's direct and allocated expenses and at least one distribution annually of all or substantially all of the net realized capital gains (reduced by any available capital loss carryforwards from prior years) allocated by the Portfolio to the Fund, if any. Shareholders may reinvest all distributions in shares of the Fund at the per share net asset value as of the close of business on the record date. The Fund distinguishes between distributions on a tax basis and a financial reporting basis. Generally accepted accounting principles require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Differences in the recognition or classification of income between the financial statements and tax earnings and profits which result in temporary over distributions for financial statement purposes are classified as distributions in excess of net investment income or accumulated net realized 8 EATON VANCE INFORMATION AGE FUND AS OF FEBRUARY 29, 2000 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D gains. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. 3 Management Fee and Other Transactions with Affiliates - ------------------------------------------- The management fee is earned by Eaton Vance Management (EVM) as compensation for management and administration of the business affairs of the Fund. The fee is based on a percentage of average daily net assets. For the six months ended February 29, 2000, the fee was equivalent to 0.25% (annualized) of the Fund's average net assets for such period and amounted to $161,298. Except as to Trustees of the Fund who are not members of EVM's organization, officers and Trustees receive remuneration for their services to the Fund out of such management fee. Certain officers and Trustees of the Fund and of the Portfolio are officers of the above organization. In addition, investment adviser and administrative fees are paid by the Portfolio to EVM and its affiliates. See Note 2 of the Portfolio's Notes to Financial Statements which are included elsewhere in this report. The Fund was informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's principal underwriter, received $56,332 from the Fund as its portion of the sales charge on sales of Class A shares for the six months ended February 29, 2000. 4 Shares of Beneficial Interest - ------------------------------------------- The 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:
SIX MONTHS ENDED FEBRUARY 29, 2000 YEAR ENDED CLASS A (UNAUDITED) AUGUST 31, 1999 ---------------------------------------------------------------------------- Sales 1,147,896 517,627 Issued to shareholders electing to receive payment of distribution in Fund shares 166,950 43,636 Redemptions (226,670) (402,383) ---------------------------------------------------------------------------- NET INCREASE 1,088,176 158,880 ---------------------------------------------------------------------------- SIX MONTHS ENDED FEBRUARY 29, 2000 YEAR ENDED CLASS B (UNAUDITED) AUGUST 31, 1999 ---------------------------------------------------------------------------- Sales 2,573,233 687,038 Issued to shareholders electing to receive payment of distribution in Fund shares 372,835 100,635 Redemptions (219,440) (496,264) ---------------------------------------------------------------------------- NET INCREASE 2,726,628 291,409 ---------------------------------------------------------------------------- SIX MONTHS ENDED FEBRUARY 29, 2000 YEAR ENDED CLASS C (UNAUDITED) AUGUST 31, 1999 ---------------------------------------------------------------------------- Sales 916,889 210,580 Issued to shareholders electing to receive payment of distribution in Fund shares 58,947 9,416 Redemptions (36,932) (81,774) ---------------------------------------------------------------------------- NET INCREASE 938,904 138,222 ----------------------------------------------------------------------------
5 Distribution and Service Plans - ------------------------------------------- The Fund has in effect distribution plans for Class A shares (Class A Plan), Class B shares (Class B Plan), and Class C shares (Class C Plan) pursuant to Rule 12b-1 under the Investment Company Act of 1940. The Class A Plan provides for the payment of a monthly distribution fee to the Principal Underwriter, Eaton Vance Distributors, Inc. (EVD), in an amount equal to the aggregate of (a) 0.50% of that portion of the Fund's average daily net assets attributable to Class A shares which have remained outstanding for less than one year and (b) 0.25% of that portion of the Fund's average daily net assets attributable to Class A shares which have remained outstanding for more than one year. The Class B and Class C Plans provides for the payment of a monthly distribution fee to EVD at an annual rate not to exceed 0.75% of the Fund's average daily net assets attributable to Class B and Class C shares for providing ongoing distribution services and facilities to the Fund. The Fund will automatically discontinue payments to EVD during any period in which there are no outstanding Uncovered Distribution Charges, which are equivalent to the sum of (i) 5% and 6.25% of the aggregate amount received by the Fund for the Class B and Class C shares sold, respectively, plus (ii) interest calculated by applying the rate of 1% over the prevailing prime rate to the outstanding balance of Uncovered Distribution Charges of EVD of each respective class 9 EATON VANCE INFORMATION AGE FUND AS OF FEBRUARY 29, 2000 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D reduced by the aggregate amount of contingent deferred sales charges (see Note 6) and daily amounts theretofore paid to EVD by each respective class. The Fund paid or accrued $62,213, $304,270, and $53,813 for Class A, Class B, and Class C shares, respectively, to or payable to EVD for the six months ended February 29, 2000, representing 0.37%, 0.75%, and 0.75% (annualized) of the average daily net assets for Class A, Class B, and Class C shares, respectively. At February 29, 2000, the amount of Uncovered Distribution Charges EVD calculated under the Plans was approximately $2,991,000 and $979,000 for Class B and Class C shares, respectively. The Plans authorize the Fund to make payments of service fees to EVD, investment dealers and other persons in amounts not exceeding 0.25% of the Fund's average daily net assets attributable to Class A, Class B, and Class C shares for each fiscal year. The Trustees initially implemented the Plans by authorizing the Fund to make quarterly payments of service fees to the Principal Underwriter and investment dealers in amounts equal to 0.25% per annum of the Fund's average daily net assets attributable to Class A, Class B, and Class C shares based on the value of Fund shares sold by such persons and remaining outstanding for at least one year. On October 4, 1999, the Trustees approved service fee payments equal to 0.25% per annum of the Funds average daily net assets attributable to Class B shares for any fiscal year on shares of the Fund sold on or after October 12, 1999. The Class C Plan permits the Fund to make monthly payments of service fees in amounts not expected to exceed 0.25% of the Funds average daily net assets attributable to Class C shares for any fiscal year. Service fee payments will be made for personal services and/or the maintenance of shareholder accounts. Service fees are separate and distinct from the sales commissions and distribution fees payable by the Fund to EVD, and, as such are not subject to automatic discontinuance when there are no outstanding Uncovered Distribution Charges of EVD. Service fee payments for the six months ended February 29, 2000 amounted to $21,738, $74,671, and $17,938 for Class A, Class B, and Class C shares, respectively. Certain officers and Trustees of the Fund are officers or directors of EVD. 6 Contingent Deferred Sales Charge - ------------------------------------------- A contingent deferred sales charge (CDSC) generally is imposed on redemptions of Class B shares made within six years of purchase and on redemptions of Class C shares made within one year 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 gains distributions. Class B CDSC is imposed at declining rates that begin at 5% in the case of redemptions in the first and second year after purchase, declining one percentage point each subsequent year. Class C shares will be subject to a 1% CDSC if redeemed within one year of purchase. No CDSC is levied on shares which have been sold to EVM or its affiliates or to their respective employees or clients and may be waived under certain other limited conditions. CDSC charges are paid to EVD to reduce the amount of Uncovered Distribution Charges calculated under each Fund's Distribution Plan (see Note 5). CDSC charges received when no Uncovered Distribution Charges exist will be credited to the Fund. EVD received approximately $39,000 and $1,000 of CDSC paid by shareholders for Class B shares and Class C shares, respectively, for the six months ended February 29, 2000. 7 Investment Transactions - ------------------------------------------- Increases and decreases in the Fund's investment in the Portfolio aggregated $96,797,772 and $11,299,055, respectively, for the six months ended February 29, 2000. 10 INFORMATION AGE PORTFOLIO AS OF FEBRUARY 29, 2000 PORTFOLIO OF INVESTMENTS (UNAUDITED) (EXPRESSED IN UNITED STATES DOLLARS) COMMON STOCKS -- 90.7%
SECURITY SHARES VALUE - ----------------------------------------------------------------------- Advertising -- 2.1% - ----------------------------------------------------------------------- Harte-Hanks Communications, Inc. 60,000 $ 1,308,750 Interpublic Group of Companies, Inc. 65,000 2,612,188 Omnicom Group, Inc. 25,000 2,354,688 - ----------------------------------------------------------------------- $ 6,275,626 - ----------------------------------------------------------------------- Aerospace and Defense -- 0.8% - ----------------------------------------------------------------------- Lockheed Martin Corp. 130,000 $ 2,266,875 - ----------------------------------------------------------------------- $ 2,266,875 - ----------------------------------------------------------------------- Auto and Parts -- 1.6% - ----------------------------------------------------------------------- Toyoda Gosei Co. Ltd.(1) 70,000 $ 4,856,818 - ----------------------------------------------------------------------- $ 4,856,818 - ----------------------------------------------------------------------- Banks - Regional -- 1.3% - ----------------------------------------------------------------------- Mellon Financial Corp. 30,000 $ 903,750 Northern Trust Corp. 20,000 1,130,000 State Street Corp. 24,000 1,749,000 - ----------------------------------------------------------------------- $ 3,782,750 - ----------------------------------------------------------------------- Banks and Money Services -- 0.2% - ----------------------------------------------------------------------- Sadot Research/Development Fund Ltd.(1) 269,500 $ 716,463 - ----------------------------------------------------------------------- $ 716,463 - ----------------------------------------------------------------------- Basic Materials -- 0.2% - ----------------------------------------------------------------------- Diversa Corp. 5,000 $ 667,500 - ----------------------------------------------------------------------- $ 667,500 - ----------------------------------------------------------------------- Biotechnology -- 0.3% - ----------------------------------------------------------------------- Transkaryotic Therapies, Inc.(1)(2) 18,000 $ 902,250 - ----------------------------------------------------------------------- $ 902,250 - ----------------------------------------------------------------------- Broadcasting and Cable -- 8.5% - ----------------------------------------------------------------------- Ackerly Communications Inc. 40,000 $ 512,500 Adelphia Communications Class A 15,000 824,062 AT&T Corp. - Liberty Media Group(2) 25,000 1,306,250 Cable and Wireless Communications(1) 100,000 1,699,398 Infinity Broadcasting Corp.(2) 50,000 1,568,750 SECURITY SHARES VALUE - ----------------------------------------------------------------------- Broadcasting and Cable (continued) - ----------------------------------------------------------------------- Mediacom Communications Corp. 50,000 $ 853,125 Mediaset Spa(1)(2) 140,000 3,417,609 Nippon Broadcasting System(1) 50,000 6,687,913 Sinclair Broadcast Group, Inc., Class A(2) 90,000 855,000 Sirus Satelite Radio Inc. 20,000 1,220,000 Television Broadcasts Ltd.(1) 129,000 1,060,801 TV Francaise(1)(2) 8,600 5,598,922 - ----------------------------------------------------------------------- $ 25,604,330 - ----------------------------------------------------------------------- Business Services - Miscellaneous -- 2.3% - ----------------------------------------------------------------------- Concord EFS, Inc.(2) 100,000 $ 1,956,250 e-New Media Co., Ltd.(1)(2) 4,750,000 1,678,381 Interim Services, Inc.(2) 100,000 2,493,750 Organic Inc. 2,850 97,256 Thermo Cardiosystems Inc. 40,000 585,000 - ----------------------------------------------------------------------- $ 6,810,637 - ----------------------------------------------------------------------- Communications Equipment -- 1.5% - ----------------------------------------------------------------------- Advanced Fibre Communication, Inc. 45,000 $ 3,065,625 Andrew Corp. 40,000 990,000 Loral Space and Communications Ltd. 40,000 602,500 - ----------------------------------------------------------------------- $ 4,658,125 - ----------------------------------------------------------------------- Communications Services -- 20.4% - ----------------------------------------------------------------------- Adelphia Business Solutions, Inc.(2) 35,000 $ 1,798,125 Alltel Corp. 40,000 2,320,000 British Sky Broadcasting PLC(1) 110,000 2,827,905 British Telecommunications PLC(1) 216,569 3,784,739 Broadwing, Inc. 60,000 1,781,250 Cable and Wireless PLC(1) 235,000 4,868,051 CenturyTel, Inc. 55,000 1,849,375 China Telecom(1)(2) 400,000 3,674,770 Deltacom Ltd. 1,000,000 1,000,000 eCtel, Ltd.(1)(2) 109,200 3,712,800 Energis (1)(2) 40,000 2,025,688 GTE Corp. 30,000 1,770,000 Hansol PCS 65,000 2,261,284 Hellenic Telecommunications Organization SA ADR 112,000 1,680,000 ITC DeltaCom, Inc.(2) 60,000 2,276,250 Korea Telecom Corp. ADR(1)(2) 54,427 2,367,574
SEE NOTES TO FINANCIAL STATEMENTS 11 INFORMATION AGE PORTFOLIO AS OF FEBRUARY 29, 2000 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D (EXPRESSED IN UNITED STATES DOLLARS)
SECURITY SHARES VALUE - ----------------------------------------------------------------------- Communications Services (continued) - ----------------------------------------------------------------------- Nippon Telegraph and Telephone Corp.(1) 2,500 $ 3,460,050 NTT Mobile Communication Network, Inc.(1) 1,500 6,050,535 PanAmSat Corp. 40,000 1,952,500 Powertel Ltd.(1) 1,250,000 2,423,334 Primus Telecommunications Group, Inc.(2) 45,000 1,974,375 Rogers Communications Foreign(1) 40,000 1,362,500 RSL Communications, Ltd.(1)(2) 100,000 2,006,250 SBC Communications, Inc. 55,580 2,112,040 - ----------------------------------------------------------------------- $ 61,339,395 - ----------------------------------------------------------------------- Computer Services -- 0.4% - ----------------------------------------------------------------------- Radware Ltd. 20,000 $ 1,302,500 - ----------------------------------------------------------------------- $ 1,302,500 - ----------------------------------------------------------------------- Computer Software - Services -- 13.1% - ----------------------------------------------------------------------- BMC Software, Inc.(2) 50,000 $ 2,300,000 CCC Information Services Group 70,000 1,618,750 Computer Sciences Corp.(2) 30,000 2,364,374 Comtelco Intel Inc. 150,000 3,725,381 Fabasoft AG 20,000 2,565,570 Go.Com 50,000 1,103,125 Lifeminders.Com Inc. 45,000 2,390,625 Meta4 NV(2) 70,000 1,687,875 Misys PLC(1) 255,000 3,839,880 Perot Systems Corp., Class A(2) 100,000 2,543,750 Solution 6 Holdings 250,000 1,259,057 Symantec 10,000 714,375 Tecnomatix Technologies Ltd.(2) 127,496 5,848,879 Wind River Systems, Inc.(2) 20,000 1,161,250 Yline Internet Business(1) 30,000 6,365,700 - ----------------------------------------------------------------------- $ 39,488,591 - ----------------------------------------------------------------------- Computers and Business Equipment -- 4.4% - ----------------------------------------------------------------------- BTC Korea Co.(1) 500,000 $ 1,235,000 Daiwabo Information System(1) 200,000 3,514,682 JC Hyun System(1) 1,000,000 2,320,000 Lexmark International Group, Inc.(2) 25,000 2,981,250 National Instruments Corp. 65,000 2,918,909 ST Assembly Test Ltd.(2) 48,000 217,232 - ----------------------------------------------------------------------- $ 13,187,073 - ----------------------------------------------------------------------- SECURITY SHARES VALUE - ----------------------------------------------------------------------- Consumer Services -- 1.5% - ----------------------------------------------------------------------- Cendant Corp.(2) 110,000 $ 1,959,375 H&R Block, Inc. 60,000 2,632,500 - ----------------------------------------------------------------------- $ 4,591,875 - ----------------------------------------------------------------------- Electrical and Electronics -- 7.4% - ----------------------------------------------------------------------- Avimo Group Ltd.(1)(2) 400,000 $ 710,183 Intersil Holding Corp. 4,000 237,500 Memory Corp. PLC - GDR(2) 60,000 1,320,000 Nikon Corp.(1) 75,000 2,533,576 Sato Corp.(1) 100,000 3,733,212 Sony Corp.(1) 17,000 5,030,731 Tektronix Inc. 55,000 3,190,000 Toshiba Corp.(1) 320,000 2,613,613 Waters Corp.(2) 30,000 2,941,875 - ----------------------------------------------------------------------- $ 22,310,690 - ----------------------------------------------------------------------- Electronics - Semiconductors -- 1.5% - ----------------------------------------------------------------------- Chartered Semiconductor Manufacturing, Ltd.(1)(2) 218,000 $ 1,859,356 Samsung Electronics(1)(2) 1,577 356,918 Tokyo Electron Ltd.(1) 16,000 2,440,246 - ----------------------------------------------------------------------- $ 4,656,520 - ----------------------------------------------------------------------- Entertainment -- 3.5% - ----------------------------------------------------------------------- Disney (Walt) Co. 70,000 $ 2,345,000 Endemol Entertainment(1) 50,000 4,542,795 Imax Corp.(2) 60,000 1,515,000 Musiclegal.Com(3) 750 750,000 Shochiku(1) 215,000 1,241,156 - ----------------------------------------------------------------------- $ 10,393,951 - ----------------------------------------------------------------------- Financial Services -- 1.7% - ----------------------------------------------------------------------- First Data Corp. 45,000 $ 2,025,000 Franklin Resources, Inc. 35,000 951,562 Reuters Group PLC(1)(2) 100,000 2,234,261 - ----------------------------------------------------------------------- $ 5,210,823 - ----------------------------------------------------------------------- Information Services -- 3.3% - ----------------------------------------------------------------------- Acxiom Corp.(2) 80,000 $ 2,310,000 Automatic Data Processing, Inc. 65,000 2,831,562
SEE NOTES TO FINANCIAL STATEMENTS 12 INFORMATION AGE PORTFOLIO AS OF FEBRUARY 29, 2000 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D (EXPRESSED IN UNITED STATES DOLLARS)
SECURITY SHARES VALUE - ----------------------------------------------------------------------- Information Services (continued) - ----------------------------------------------------------------------- Azlan Group PLC(1)(2) 800,000 $ 1,813,955 Getronics NV Andeel(1)(2) 34,000 2,852,991 - ----------------------------------------------------------------------- $ 9,808,508 - ----------------------------------------------------------------------- Oil and Gas - Equipment and Services -- 0.8% - ----------------------------------------------------------------------- Williams Companies, Inc. 55,000 $ 2,299,688 - ----------------------------------------------------------------------- $ 2,299,688 - ----------------------------------------------------------------------- Oil and Gas - Exploration and Production -- 0.2% - ----------------------------------------------------------------------- Enron Corp. 10,000 $ 690,000 - ----------------------------------------------------------------------- $ 690,000 - ----------------------------------------------------------------------- Pharmaceutical -- 0.2% - ----------------------------------------------------------------------- Dong Sung Corp.(1) 500,000 $ 615,000 - ----------------------------------------------------------------------- $ 615,000 - ----------------------------------------------------------------------- Printing and Business Products -- 0.6% - ----------------------------------------------------------------------- Valassis Communications, Inc.(2) 65,000 $ 1,799,688 - ----------------------------------------------------------------------- $ 1,799,688 - ----------------------------------------------------------------------- Publishing -- 7.5% - ----------------------------------------------------------------------- E.W. Scripps Co. 20,000 $ 862,500 Gannett Co., Inc. 30,000 1,955,625 Houghton Mifflin Co. 40,000 1,592,500 Knight Ridder 25,000 1,171,875 McGraw-Hill Companies, Inc. (The) 50,000 2,543,750 Meredith Corp. 30,000 858,750 New York Times Co., Class A (The) 35,000 1,478,750 News Corp. Ltd.(1) 150,636 2,200,354 Pearson PLC(1) 170,000 5,718,856 Springer Alex Verlag AG(1) 1,768 2,344,700 Tribune Co. 45,000 1,752,188 - ----------------------------------------------------------------------- $ 22,479,848 - ----------------------------------------------------------------------- Retail -- 2.5% - ----------------------------------------------------------------------- Best Buy Company Inc. 40,000 $ 2,175,000 Circuit City Stores, Inc. 50,000 2,018,750 Hikari Tsushin, Inc.(1) 1,800 3,425,450 - ----------------------------------------------------------------------- $ 7,619,200 - ----------------------------------------------------------------------- SECURITY SHARES VALUE - ----------------------------------------------------------------------- Specialty Chemicals and Materials -- 1.0% - ----------------------------------------------------------------------- Millipore Corp. 55,000 $ 2,939,063 - ----------------------------------------------------------------------- $ 2,939,063 - ----------------------------------------------------------------------- Transportation -- 1.1% - ----------------------------------------------------------------------- CNF Transportation, Inc. 40,000 $ 1,282,500 Fedex Corp. 55,000 1,921,563 - ----------------------------------------------------------------------- $ 3,204,063 - ----------------------------------------------------------------------- Utilities -- 0.8% - ----------------------------------------------------------------------- AES Corp.(2) 30,000 $ 2,514,375 - ----------------------------------------------------------------------- $ 2,514,375 - ----------------------------------------------------------------------- Total Common Stocks (identified cost $199,336,189) $272,992,225 - -----------------------------------------------------------------------
COMMERCIAL PAPER -- 11.2%
PRINCIPAL AMOUNT SECURITY (000'S OMITTED) VALUE - ----------------------------------------------------------------------- Corp. Asset Funding, 5.78%, 3/13/00 $ 10,000 $ 9,980,733 Ford Motor Credit Corp., 5.75%, 3/2/00 10,000 9,998,403 GE Capital Corp., 5.83%, 3/1/00 13,541 13,541,000 - ----------------------------------------------------------------------- Total Commercial Paper (at amortized cost, $33,520,136) $ 33,520,136 - ----------------------------------------------------------------------- Total Investments -- 101.9% (identified cost $232,856,325) $306,512,361 - ----------------------------------------------------------------------- Other Assets, Less Liabilities -- (1.9)% $ (5,640,570) - ----------------------------------------------------------------------- Net Assets -- 100.0% $300,871,791 - -----------------------------------------------------------------------
ADR - American Depositary Receipt GDR - Global Depository Receipt (1) Foreign security. (2) Non-income producing security. (3) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees. SEE NOTES TO FINANCIAL STATEMENTS 13 INFORMATION AGE PORTFOLIO AS OF FEBRUARY 29, 2000 FINANCIAL STATEMENTS (UNAUDITED) STATEMENT OF ASSETS AND LIABILITIES
AS OF FEBRUARY 29, 2000 (EXPRESSED IN UNITED STATES DOLLARS) Assets - ------------------------------------------------------ Investments, at value (identified cost, $232,856,325) $306,512,361 Cash 2,831 Foreign currency, at value (identified cost, $371,176) 373,227 Receivable for investments sold 2,374,235 Interest and dividends receivable 98,101 Tax reclaim receivable 195 Deferred organization expenses 868 - ------------------------------------------------------ TOTAL ASSETS $309,361,818 - ------------------------------------------------------ Liabilities - ------------------------------------------------------ Payable for investments purchased $ 8,449,645 Payable to affiliate for Trustees' fees 2,232 Accrued expenses 38,150 - ------------------------------------------------------ TOTAL LIABILITIES $ 8,490,027 - ------------------------------------------------------ NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO $300,871,791 - ------------------------------------------------------ Sources of Net Assets - ------------------------------------------------------ Net proceeds from capital contributions and withdrawals $227,204,303 Net unrealized appreciation (computed on the basis of identified cost) 73,667,488 - ------------------------------------------------------ TOTAL $300,871,791 - ------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000 (EXPRESSED IN UNITED STATES DOLLARS) Investment Income - ----------------------------------------------------- Interest $ 380,366 Dividends (net of foreign taxes, $16,456) 295,016 - ----------------------------------------------------- TOTAL INVESTMENT INCOME $ 675,382 - ----------------------------------------------------- Expenses - ----------------------------------------------------- Investment adviser fee $ 645,711 Administration fee 215,237 Custodian fee 98,207 Legal and accounting services 13,337 Trustees fees and expenses 7,985 Amortization of organization expenses 615 Miscellaneous 207 - ----------------------------------------------------- TOTAL EXPENSES $ 981,299 - ----------------------------------------------------- NET INVESTMENT LOSS $ (305,917) - ----------------------------------------------------- Realized and Unrealized Gain (Loss) - ----------------------------------------------------- Net realized gain (loss) -- Investment transactions (identified cost basis) $30,690,847 Foreign currency and forward foreign currency exchange contract transactions (116,338) - ----------------------------------------------------- NET REALIZED GAIN $30,574,509 - ----------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $52,525,991 Foreign currency 11,093 - ----------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $52,537,084 - ----------------------------------------------------- NET REALIZED AND UNREALIZED GAIN $83,111,593 - ----------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $82,805,676 - -----------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 14 INFORMATION AGE PORTFOLIO AS OF FEBRUARY 29, 2000 FINANCIAL STATEMENTS CONT'D STATEMENTS OF CHANGES IN NET ASSETS (EXPRESSED IN UNITED STATES DOLLARS)
SIX MONTHS ENDED INCREASE (DECREASE) FEBRUARY 29, 2000 YEAR ENDED IN NET ASSETS (UNAUDITED) AUGUST 31, 1999 - ---------------------------------------------------------------------------- From operations -- Net investment loss $ (305,917) $ (269,466) Net realized gain 30,574,509 11,701,774 Net change in unrealized appreciation (depreciation) 52,537,084 18,617,351 - ---------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 82,805,676 $ 30,049,659 - ---------------------------------------------------------------------------- Capital transactions -- Contributions $ 141,930,873 $ 32,069,062 Withdrawals (21,126,629) (18,413,197) - ---------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 120,804,244 $ 13,655,865 - ---------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 203,609,920 $ 43,705,524 - ---------------------------------------------------------------------------- Net Assets - ---------------------------------------------------------------------------- At beginning of period $ 97,261,871 $ 53,556,347 - ---------------------------------------------------------------------------- AT END OF PERIOD $ 300,871,791 $ 97,261,871 - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 15 INFORMATION AGE PORTFOLIO AS OF FEBRUARY 29, 2000 FINANCIAL STATEMENTS CONT'D SUPPLEMENTARY DATA
SIX MONTHS ENDED YEAR ENDED AUGUST 31, FEBRUARY 29, 2000 ------------------------------------------------ (UNAUDITED) 1999 1998 1997 1996(1) - ------------------------------------------------------------------------------------------------------- Ratios to average daily net assets - ------------------------------------------------------------------------------------------------------- Expenses 1.14%(2) 1.36% 1.44% 1.48% 1.52%(2) Net investment income (loss) (0.36)%(2) (0.38)% 0.01% (0.04)% 0.07%(2) Portfolio Turnover 67% 131% 157% 160% 115% - ------------------------------------------------------------------------------------------------------- NET ASSETS, END OF PERIOD (000'S OMITTED) $300,872 $97,262 $53,556 $51,374 $42,703 - -------------------------------------------------------------------------------------------------------
(1) For the period from the start of business, September 18, 1995, to August 31, 1996. (2) Annualized. SEE NOTES TO FINANCIAL STATEMENTS 16 INFORMATION AGE PORTFOLIO AS OF FEBRUARY 29, 2000 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (EXPRESSED IN UNITED STATES DOLLARS) 1 Significant Accounting Policies - ------------------------------------------- Information Age Portfolio (the Portfolio) is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Portfolio, which was organized as a trust under the laws of the State of New York on June 1, 1995, seeks to provide long-term capital growth by investing in a global and diversified portfolio of securities of information age companies. The Declaration of Trust (Trust) permits the Trustees to issue interests in the Portfolio. The following is a summary of the significant accounting policies of the Portfolio. The policies are in conformity with generally accepted accounting principles. A Investment Valuations -- Marketable securities, including options, that are listed on foreign or U.S. securities exchanges or in the NASDAQ National Market System are valued at closing sale prices, on the exchange where such securities are principally traded. Futures positions on securities or currencies are generally valued at closing settlement prices. Unlisted or listed securities for which closing sale prices are not available are valued at the mean between the latest bid and asked prices. Short-term debt securities with a remaining maturity of 60 days or less are valued at amortized cost. Other fixed income and debt securities, including listed securities and securities for which price quotations are available, will normally be valued on the basis of valuations furnished by a pricing service. Investments for which valuations or market quotations are unavailable are valued at fair value using methods determined in good faith by or at the direction of the Trustees. B Income Taxes -- The Portfolio has elected to be treated as a partnership for United States Federal tax purposes. No provision is made by the Portfolio for federal or state taxes on any taxable income of the Portfolio because each investor in the Portfolio is ultimately responsible for the payment of any taxes. Since one of the Portfolio's investors is a regulated investment company that invests all or substantially all of its assets in the Portfolio, the Portfolio normally must satisfy the applicable source of income and diversification requirements (under the Internal Revenue Code) in order for its investors to satisfy them. The Portfolio will allocate at least annually among its investors each investor's distributive share of the Portfolio's net investment income, net realized capital gains, and any other items of income, gain, loss, deduction or credit. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates. C Deferred Organization Expenses -- Costs incurred by the Portfolio in connection with its organization are being amortized on the straight-line basis over five years. D Financial Futures Contracts -- Upon the entering of a financial futures contract, the Portfolio is required to deposit (initial margin) either in cash or securities an amount equal to a certain percentage of the purchase price indicated in the financial futures contract. Subsequent payments are made or received by the Portfolio (margin maintenance) each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for book purposes as unrealized gains or losses by the Portfolio. The Portfolio's investment in financial futures contracts is designed only to hedge against anticipated future changes in interest or currency exchange rates. Should interest or currency exchange rates move unexpectedly, the Portfolio may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. E Options on Financial Futures -- Upon the purchase of a put option on foreign currency by the Portfolio, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, the Portfolio will realize a loss in the amount of the cost of the option. When a Portfolio enters into a closing sales transaction, the Portfolio will realize a gain or loss depending upon whether the sales proceeds from the closing sales transaction are greater or less than the cost of the option. When a Portfolio exercises a put option, settlement is made in cash. The risk associated with purchasing options is limited to the premium originally paid. F Foreign Currency Translation -- Investment valuations, other assets, and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and income and expenses are converted into U.S. dollars based upon currency exchange rates prevailing 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 17 INFORMATION AGE PORTFOLIO AS OF FEBRUARY 29, 2000 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D (EXPRESSED IN UNITED STATES DOLLARS) investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed. G Forward Foreign Currency Exchange Contracts -- The Portfolio may enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. Risks may arise upon entering these contracts from the potential inability of counterparties to meet the terms of their contracts and from movements in the value of a foreign currency relative to the U.S. dollar. The Portfolio will enter into forward contracts for hedging purposes as well as non-hedging purposes. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until such time as the contracts have been closed or offset. H Use of Estimates -- The preparation of the financial statements in conformity with generally accepted accounting principles 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. I Other -- Investment transactions are accounted for on a trade date basis. Dividend income is recorded on the ex-dividend date. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Portfolio is informed of the ex-dividend date. Interest income is recorded on the accrual basis. J Interim Financial Statements -- The interim financial statements relating to February 29, 2000 and for the six months then ended have not been audited by independent certified public accountants, but in the opinion of the Portfolio's management reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements. 2 Investment Adviser Fee and Other Transactions with Affiliates - ------------------------------------------- The investment adviser fee is earned by Boston Management and Research (BMR), a wholly-owned subsidiary of Eaton Vance Management (EVM), and Lloyd George Investment Management (Bermuda) Limited, an affiliate of EVM (the Advisers), as compensation for management and investment advisory services rendered to the Portfolio. Under the advisory agreement, the Advisers receive a monthly fee, divided equally between them, of 0.0625% (0.75% annually) of the average daily net assets of the Portfolio up to $500,000,000, and at reduced rates as daily net assets exceed that level. For the six months ended February 29, 2000, the adviser fee was 0.75% (annualized) of average net assets for such period and amounted to $645,711. In addition, an administrative fee is earned by EVM for managing and administering the business affairs of the Portfolio. Under the administration agreement, EVM earns a monthly fee in the amount of 1/48th of 1% (equal to 0.25% annually) of the average daily net assets of the Portfolio up to $500,000,000, and at reduced rates as daily net assets exceed that level. For the six months ended February 29, 2000, the administration fee was 0.25% (annualized) of average net assets for such period and amounted to $215,237. Except as to the Trustees of the Portfolio who are not members of the Advisers, or EVM's organization, officers and Trustees receive remuneration for their services to the Portfolio out of such investment adviser and administrative fees. Trustees of the Portfolio that are not affiliated with the Advisers 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 six months ended February 29, 2000, no significant amounts have been deferred. Certain officers and Trustees of the Portfolio are officers of the above organizations. 3 Investment Transactions - ------------------------------------------- Purchases and sales of investments, other than short-term obligations aggregated $212,923,366 and $109,849,951 respectively, for the six months ended February 29, 2000. 4 Federal Income Tax Basis of Investments - ------------------------------------------- The cost and unrealized appreciation (depreciation) in value of the investments owned at February 29, 2000, are as follows: AGGREGATE COST $232,856,325 ------------------------------------------------------ Gross unrealized appreciation $ 81,309,183 Gross unrealized depreciation (7,653,147) ------------------------------------------------------ NET UNREALIZED APPRECIATION $ 73,656,036 ------------------------------------------------------
18 INFORMATION AGE PORTFOLIO AS OF FEBRUARY 29, 2000 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D (EXPRESSED IN UNITED STATES DOLLARS) 5 Risks Associated with Foreign Investments - ------------------------------------------- Investing in securities issued by companies whose principal business activities are outside the United States may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of the Portfolio, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the United States. 6 Financial Instruments - ------------------------------------------- The Portfolio regularly trades in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include written options, forward foreign currency exchange contracts and financial futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Portfolio has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. The portfolio did not have any open obligations under these financial instruments at February 29, 2000. 7 Line of Credit - ------------------------------------------- The Portfolio participates with other portfolios and funds managed by BMR and EVM and its affiliates in a $150 million unsecured line of credit agreement with a group of banks. The Portfolio may temporarily borrow from the line of credit to satisfy redemption requests or settle investment transactions. Interest is charged to each portfolio or 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 0.10% on the daily unused portion of the facility is allocated among the participating funds and portfolios at the end of each quarter. The Portfolio did not have any significant borrowings or allocated fees during the six months ended February 29, 2000. 19 EATON VANCE INFORMATION AGE FUND AS OF FEBRUARY 29, 2000 INVESTMENT MANAGEMENT EATON VANCE INFORMATION AGE FUND Officers James B. Hawkes President and Trustee Thomas E. Faust, Jr. Vice President James L. O'Connor Treasurer Alan R. Dynner Secretary Trustees Jessica M. Bibliowicz President and Chief Executive Officer, National Financial Partners Donald R. Dwight President, Dwight Partners, Inc. Samuel L. Hayes, III Jacob H. Schiff Professor of Investment Banking Emeritus, Harvard University Graduate School of Business Administration Norton H. Reamer Chairman and Chief Executive Officer, United Asset Management Corporation Lynn A. Stout Professor of Law, Georgetown University Law Center Jack L. Treynor Investment Adviser and Consultant INFORMATION AGE PORTFOLIO Officers James B. Hawkes President and Trustee Duncan W. Richardson Vice President and Co-Portfolio Manager Hon. Robert Lloyd George Vice President and Trustee James L. O'Connor Treasurer Alan R. Dynner Secretary Independent Trustees Hon. Edward K.Y. Chen President of Lingnan College, University of Hong Kong Donald R. Dwight President, Dwight Partners, Inc. Samuel L. Hayes, III Jacob H. Schiff Professor of Investment Banking Emeritus, Harvard University Graduate School of Business Administration Norton H. Reamer Chairman and Chief Executive Officer, United Asset Management Corporation Lynn A. Stout Professor of Law, Georgetown University Law Center Jack L. Treynor Investment Adviser and Consultant 20 SPONSOR AND MANAGER OF EATON VANCE INFORMATION AGE FUND AND ADMINISTRATOR OF INFORMATION AGE PORTFOLIO EATON VANCE MANAGEMENT The Eaton Vance Building 255 State Street Boston, MA 02109 CO-ADVISERS OF INFORMATION AGE PORTFOLIO BOSTON MANAGEMENT AND RESEARCH The Eaton Vance Building 255 State Street Boston, MA 02109 LLOYD GEORGE INVESTMENT MANAGEMENT (BERMUDA) LIMITED 3808 One Exchange Square Central, Hong Kong PRINCIPAL UNDERWRITER EATON VANCE DISTRIBUTORS, INC. The Eaton Vance Building 255 State Street Boston, MA 02109 (617) 482-8260 CUSTODIAN INVESTORS BANK & TRUST COMPANY 200 Clarendon Street Boston, MA 02116 TRANSFER AGENT PFPC, INC. Attn: Eaton Vance Funds P.O. Box 9653 Providence, RI 02904-9653 (800) 262-1122 EATON VANCE INFORMATION AGE FUND THE EATON VANCE BUILDING 255 STATE STREET BOSTON, MA 02109 - -------------------------------------------------------------------------------- This report must be preceded or accompanied by a current prospectus which contains more complete information on the Fund, including its sales charges and expenses. Please read the prospectus carefully before you invest or send money. - -------------------------------------------------------------------------------- 424-4/00 IASRC-4/00 -----END PRIVACY-ENHANCED MESSAGE-----