-----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, KLzE3DeDlMTyW9RroyxHf70tbRUKv0jAzlky+iaxUDHlFzyw58vi9tcvbXTQyUT2 yUy/ypD1mwgZN/nBCbi0/Q== 0000950109-97-003558.txt : 19970505 0000950109-97-003558.hdr.sgml : 19970505 ACCESSION NUMBER: 0000950109-97-003558 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970228 FILED AS OF DATE: 19970502 SROS: NONE 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: 1940 Act SEC FILE NUMBER: 811-01241 FILM NUMBER: 97594299 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 MARATHON INFORMATION AGE FUND Marathon [originally appears bottom right vertically] Investing [EARTH PHOTO APPEARS HERE] for the 21st [LOGO OF EATON VANCE Century MUTUAL FUNDS APPEARS HERE] Semiannual Report February 28, 1997 EATON VANCE MARATHON [SATELLITE APPEARS HERE] INFORMATION AGE FUND Global Management-Global Distribution [BABY AT COMPUTER APPEARS HERE] EV Marathon Information Age Fund as of February 28, 1997 INVESTMENT UPDATE Investment Environment - -------------------------------------------------------------------------------- The Climate for the Information Sectors . Information age stocks were unusually volatile in the past year. Broadcasting stocks rose as mergers spread throughout the industry. Technology stocks plunged in the first half of 1996, but rallied sharply in the second half. Telecom stocks lagged the market as investors focused on an increasingly competitive environment. . The period witnessed major legislation affecting the telecom industry. In the U.S., Congress passed legislation deregulating the telecom sector. Meanwhile, the World Trade Organization passed the Geneva Agreement, which opens global markets to competition and facilitates foreign investment in telecom companies. . Intel Corp. estimated that PC sales will reach 90 million in 1997 and that, by the year 1999, PC sales will outstrip television sales as the computer becomes the dominant consumer appliance. The Fund - -------------------------------------------------------------------------------- Performance for the Past Six Months . The Fund had a total return of 9.5% during the six months ended February 28, 1997./1/ That return was the result of a rise in net asset value per share from $11.04 on August 31, 1996 to $12.08 on February 28, 1997, and the reinvestment of $0.012 per share in capital gain distributions. . In comparison, the S&P 500 - an unmanaged index of U.S. common stocks - and the Morgan Stanley Capital International Europe, Australasia, and Far East Index had total returns of 22.6% and 2.4%, respectively, during the same period.* - -------------------------------------------------------------------------------- Fund shares are not guaranteed 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. - -------------------------------------------------------------------------------- /1/ This return does not include contingent deferred sales charge incurred by certain redeeming shareholders. /2/ Returns are calculated by determining the percentage change in net asset value with all distributions reinvested. SEC average annual returns reflect applicable CDSC on the following schedule: 5% - 1st year; 5% - 2nd year; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. Past performance is no guarantee of future results. The value of an investment in the Fund may fluctuate so that shares, when redeemed, may be worth more or less than their original cost. /3/ By market value as of 2/28/97. Sector weighting subject to change due to active management. /4/ Positions and holdings are as of 2/28/97 only and may not be representative of the Portfolio's current or future investments. Portfolio holdings account for 23.16% of the Fund's investments, determined by dividing the total market value of the holdings by the total net assets of the Portfolio. U.S.-based Portfolio activity . Broadcasting stocks were among the Fund's best performers during the period. Companies like LIN Television and Westinghouse Electric have been part of a recent wave of consolidation among broadcasting companies. . Advertising stocks also fared relatively well. Companies like Omnicom Group, which has exposure to both U.S. and global ad markets, had robust earnings in 1996 due to ad spending tied to the U.S. Presidential election and Atlanta Summer Olympic Games. . Among the Fund's business services stocks, the strongest performer was E*Trade Group Inc., which has risen more than 73% in 1997 alone. The company has seen revenues surge from its PC-based investment information and discount stock trading services. International Portfolio activity . The U.K. was the Portfolio's largest foreign country weighting, represented by large international media stocks like Pearson and Reuters Holdings. Reuters continues to enjoy double-digit earnings growth from its sale of information and transaction products. . The landmark legislative accords in the U.S. and overseas improved the prospects for the Portfolio's global telecom holdings. STET, an Italian telecom company, enjoyed strong mobile phone subscriber growth in the past year. Meanwhile, Cable and Wireless, a U.K.-based communications group, formed a new venture with NYNEX and Videotron that will provide access to six million homes in the U.K. . In the technology sector, Sony was a large holding. The company remains a world-wide leader in consumer electronics. Its global reach has insulated it from the continuing weak Japanese economy. - -------------------------------------------------------------------------------- *It is not possible to invest directly in the Index. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Fund Information as of February 28, 1997
Performance/2/ - periods ended 2/28/97 - --------------------------------------------------------------- Average Annual Total Returns (at net asset value) - --------------------------------------------------------------- One year 12.9% Life of Fund (9/18/95) 14.0 SEC Average Annual Total Returns (including applicable CDSC) - --------------------------------------------------------------- One year 7.9% Life of Fund (9/18/95) 10.7 5 Largest Industry Positions/3/ - --------------------------------------------------------------- By total net assets Information services 14.8% Electronics 13.9% Communications services 13.7 Publishing 12.2% Computer services 9.4% Ten Largest Holdings/4/ - --------------------------------------------------------------- By total net assets Sony Corp. 2.86% Pearson PLC 2.72 STET 2.63 Cable & Wireless PLC 2.44 Philips Electronics NV 2.24 Reuters Holding PLC 2.21 Tandberg Television ASA 2.15 Television Broadcasts, Ltd. 2.03 Automatic Data Processing, Inc. 1.94 Yorkshire - Tyne Tees TV Holdings 1.94
EV Marathon Information Age Fund as of February 28, 1997 FINANCIAL STATEMENTS (Unaudited) Statement of Assets and Liabilities As of February 28, 1997 Assets - --------------------------------------------------------------- Investment in Information Age Portfolio, at value (Note 1A) $25,789,991 (identified cost, $23,526,347) Receivable for Fund shares sold 167,266 Deferred organization expenses (Note 1D) 31,888 Tax reclaim receivable 5,403 - --------------------------------------------------------------- Total assets $25,994,548 - --------------------------------------------------------------- Liabilities - --------------------------------------------------------------- Payable for Fund shares redeemed $ 63,344 Payable to affiliate for Trustees' fees 27 Accrued expenses 16,228 - --------------------------------------------------------------- Total liabilities $ 79,599 - --------------------------------------------------------------- Net Assets for 2,146,089 shares of beneficial interest outstanding $25,914,949 - --------------------------------------------------------------- Sources of Net Assets - --------------------------------------------------------------- Paid-in capital $22,683,570 Accumulated net realized gain on investments and foreign currency transactions 1,220,727 (computed on the basis of identified cost) Accumulated net investment loss (252,992) Net unrealized appreciation of investments and foreign currency transactions 2,263,644 (computed on the basis of identified cost) - --------------------------------------------------------------- Total $25,914,949 - --------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share (Note 6) - --------------------------------------------------------------- ($25,914,949 / 2,146,089 shares of beneficial interest outstanding) $ 12.08 - --------------------------------------------------------------- Statement of Operations - --------------------------------------------------------------- For the Six Months Ended February 28, 1997 Investment Income (Note 1B) - --------------------------------------------------------------- Dividend income allocated from Portfolio (net of foreign taxes, $9,675) $ 87,980 Interest income allocated from Portfolio 20,734 Expenses allocated from Portfolio (173,869) - -------------------------------------------------------------- Total investment loss $ (65,155) - -------------------------------------------------------------- Expenses - -------------------------------------------------------------- Management fee (Note 3) $ 29,790 Compensation of Trustees not members of the Administrator's organization (Note 3) 174 Distribution fees (Note 5) 105,561 Transfer and dividend disbursing agent fees 16,341 Printing and postage 15,254 Amortization of organization expenses (Note 1D) 4,644 Registration fees 4,418 Legal and accounting services 4,013 Custodian fee 1,172 Miscellaneous 362 - -------------------------------------------------------------- Total expenses $ 181,729 - -------------------------------------------------------------- Net investment loss $ (246,884) - -------------------------------------------------------------- Realized and Unrealized Gain (Loss) from Portfolio - -------------------------------------------------------------- Net realized gain (loss) -- Investment transactions (identified cost $1,364,911 basis) Foreign currency transactions (13,158) - -------------------------------------------------------------- Net realized gain on investment transactions $1,351,753 - -------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investment transactions $ 976,094 Foreign currency transactions (2,146) - -------------------------------------------------------------- Net change in unrealized appreciation of $ 973,948 investments - -------------------------------------------------------------- Net realized and unrealized gain on $2,325,701 investments - -------------------------------------------------------------- Net increase in net assets resulting from $2,078,817 operations - --------------------------------------------------------------
See notes to financial statements 3 EV Marathon Information Age Fund as of February 28, 1997 FINANCIAL STATEMENTS CONT'D Statements of Changes in Net Assets
Six Months Ended Increase (Decrease) February 28, 1997 Year Ended in Net Assets (Unaudited) August 31, 1996* - -------------------------------------------------------------------------------- From operations -- Net investment loss $ (246,884) $ (186,468) Net realized gain (loss) on investment transactions 1,351,753 (113,052) Net change in unrealized appreciation (depreciation) of investments 973,948 1,289,696 - -------------------------------------------------------------------------------- Net increase in net assets resulting from operations $ 2,078,817 $ 990,176 - -------------------------------------------------------------------------------- Distributions to shareholders -- From net realized gain on investments $ (24,425) $ -- - -------------------------------------------------------------------------------- Total distributions to shareholders $ (24,425) $ -- - -------------------------------------------------------------------------------- Transactions in shares of beneficial interest (Note 4) -- Proceeds from sale of shares $ 5,065,441 $24,825,891 Net asset value of shares issued to shareholders in payment of distributions declared 22,530 -- Cost of shares redeemed (3,027,892) (4,015,589) - -------------------------------------------------------------------------------- Net increase in net assets from $ 2,060,079 $20,810,302 Fund share transactions - -------------------------------------------------------------------------------- Net increase in net assets $ 4,114,471 $21,800,478 - -------------------------------------------------------------------------------- Net Assets - -------------------------------------------------------------------------------- At beginning of period $21,800,478 $ -- - -------------------------------------------------------------------------------- At end of period $25,914,949 $21,800,478 - -------------------------------------------------------------------------------- Accumulated undistributed net investment income included in net assets - -------------------------------------------------------------------------------- At end of period $ (252,992) $ (6,108) - --------------------------------------------------------------------------------
* For the period from the start of business, September 18, 1995, to August 31, 1996. See notes to financial statements 4 EV Marathon Information Age Fund as of February 28, 1997 FINANCIAL STATEMENTS CONT'D Financial Highlights
Six Months Ended February 28, 1997 Year Ended (Unaudited) August 31, 1996 * - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value -- Beginning of period $11.040 $10.000 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from operations - ------------------------------------------------------------------------------------------------------------------------------------ Net investment loss $(0.115) $(0.134) Net realized and unrealized gain on investments 1.167 1.174 - ------------------------------------------------------------------------------------------------------------------------------------ Total income from operations $ 1.052 $ 1.040 - ------------------------------------------------------------------------------------------------------------------------------------ Less distributions - ------------------------------------------------------------------------------------------------------------------------------------ From net realized gain on investments $(0.012) $ -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions $(0.012) $ -- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value -- End of period $12.080 $11.040 - ------------------------------------------------------------------------------------------------------------------------------------ Total Return /(1)/ 9.53% 10.40% - ------------------------------------------------------------------------------------------------------------------------------------ Ratios/Supplemental Data - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (000 omitted) $25,914 $21,800 Ratio of net expenses to average net assets /(2)/ 2.98%+ 2.96%+ Ratio of net investment loss to average net assets (2.07)%+ (1.34)%+
* For the period from the start of business, September 18, 1995, to August 31, 1996. + Annualized. /(1)/ 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 to be reinvested at the net asset value on the payable date. Total return is not computed on an annualized basis. /(2)/ Includes the Fund's share of the Portfolio's allocated expenses. See notes to financial statements 5 EV Marathon Information Age Fund as of February 28, 1997 NOTES TO FINANCIAL STATEMENTS (Unaudited) 1 Significant Accounting Policies ---------------------------------------------------------------------------- EV Marathon 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 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 (53.3% at February 28, 1997). 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 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. At August 31, 1996, net capital losses of $91,588 attributable to security transactions incurred after October 31, 1995, are treated as arising on the first day of the Fund's next taxable year. D Deferred Organization Expenses -- Costs incurred by the Fund in connection with its organization, including registration costs, are being amortized on the straight-line basis over five years. E Interim Financial Information -- The interim financial statements relating to February 28, 1997 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. F Use of Estimates -- The preparation of 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 revenue and expense during the reporting period. Actual results could differ from those estimates. G Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian to the Fund and the Portfolio. Pursuant to the respective custodian agreements, IBT receives a fee reduced by credits which are determined based on the average daily cash balances the Fund or the Portfolio maintains with IBT. All significant credit balances used to reduce the Fund's custodian fees are reported as a reduction of expenses on the statement of operations. 6 EV Marathon Information Age Fund as of February 28, 1997 NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D 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 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 28, 1997 the fee was equivalent to 0.25% (annualized) of the Fund's average net assets for such period and amounted to $29,790. 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 the Portfolio are directors/trustees of the above organizations. 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. 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). Transactions in Fund shares were as follows:
Six Months Ended February 28, 1997 Year Ended (Unaudited) August 31, 1996* ---------------------------------------------------------------------------- Sales 427,022 2,344,257 Issued to shareholders electing to receive payment of distribution in Fund shares 1,937 -- Redemptions (257,358) (369,769) ---------------------------------------------------------------------------- Net Increase 171,601 1,974,488 ----------------------------------------------------------------------------
* For the period from the start of business, September 18, 1995 to August 31, 1996. 5 Distribution Plan ---------------------------------------------------------------------------- The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 under the Investment Company Act of 1940. The Plan requires the Fund to pay the Principal Underwriter, Eaton Vance Distributors, Inc. (EVD) amounts equal to 1/365 of 0.75% of the Fund's average daily net assets, 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% of the aggregate amount received by the Fund for shares sold plus, (ii) distribution fees calculated by applying the rate of 1% over the prevailing prime rate to the outstanding balance of Uncovered Distribution Charges of EVD reduced by the aggregate amount of contingent deferred sales charges (see Note 6) and daily amounts theretofore paid to EVD. The amount payable to EVD with respect to each day is accrued on such day as a liability of the Fund and, accordingly, reduces the Fund's net assets. During the six months ended February 28, 1997 the Fund paid distribution fees to EVD aggregating $89,371 representing 0.75% (annualized) of average daily net assets. At February 28, 1997 the amount of Uncovered Distribution Charges of EVD calculated under the Plan was approximately $989,000. 7 EV Marathon Information Age Fund as of February 28, 1997 NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D In addition, the Plan authorizes the Fund to make payments of service fees to the Principal Underwriter, Authorized Firms and other persons in amounts not exceeding 0.25% of the Fund's average daily net assets for each fiscal year. The Trustees have initially implemented the Plan by authorizing the Fund to make quarterly payments of service fees to the Principal Underwriter and Authorized Firms in amounts not expected to exceed 0.25% per annum of the Fund's average daily net assets based on the value of Fund shares sold by such persons and remaining outstanding for at least one year. Service fee payments are 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 where there are no outstanding Uncovered Distribution Charges of EVD. The Fund paid or accrued an aggregate of $16,190 for the six months ended February 28, 1997 as service fees under the Plan. EVD may pay up to the entire amount of the service fees to authorized firms through which the Fund's shares are distributed. Certain officers and Trustees of the Fund are officers or directors of EVD. 6 Contingent Deferred Sales Charge ---------------------------------------------------------------------------- A contingent deferred sales charge (CDSC) is imposed on any redemption of Fund shares made within six years 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. The CDSC is imposed at declining rates that begin at 5% in the first and second year of redemption after purchase, declining one percentage point each year thereafter. No CDSC is levied on shares which have been sold to EVM or its affiliates or to their respective employees or clients. CDSC charges are paid to EVD to reduce the amount of Uncovered Distribution Charges calculated under the Fund's Distribution Plan. CDSC charges received when no Uncovered Distribution Charges exist will be retained by the Fund. EVD received approximately $45,000 of CDSC paid by shareholders for the six months ended February 28, 1997. 7 Investment Transactions ---------------------------------------------------------------------------- Increases and decreases in the Fund's investment in the Portfolio aggregated $4,945,821 and $3,167,511, respectively. 8 Information Age Portfolio as of February 28, 1997 PORTFOLIO OF INVESTMENTS (Unaudited) Common Stocks -- 93.08%
Security Shares Value - ---------------------------------------------------------------- Advertising -- 3.15% - ---------------------------------------------------------------- Catalina Marketing Corp. 5,000 $ 251,250 Omnicom Group, Inc. 16,000 794,000 True North Communications, Inc. 24,000 480,000 - ---------------------------------------------------------------- $1,525,250 - ---------------------------------------------------------------- Broadcasting and Cable -- 8.57% - ---------------------------------------------------------------- Benpres Holdings GDR* 32,000 $ 280,000 Lin Television Corp. 17,000 705,500 Providence Journal Co. Class A 5,000 160,000 TCA Cable TV, Inc. 15,000 480,000 Television Broadcasts, Ltd.* 230,000 980,152 Westinghouse Electric, Corp. 35,000 603,750 Yorkshire-Tyne Tees TV Holdings* 45,000 937,010 - ---------------------------------------------------------------- $4,146,412 - ---------------------------------------------------------------- Business Services - Miscellaneous -- 3.65% - ---------------------------------------------------------------- ADT Ltd. 30,000 $ 652,500 Corporate Express, Inc. 10,000 187,500 E*Trade Group, Inc. 15,000 360,000 Interim Services, Inc. 15,000 566,250 - ---------------------------------------------------------------- $1,766,250 - ---------------------------------------------------------------- Communications Services -- 13.70% - ---------------------------------------------------------------- British Telecommunications PLC* 125,000 $ 866,584 Cable and Wireless PLC* 145,000 1,177,699 Itochu Corp.* 50,000 246,832 Korea Mobile Telecom Corp.* 299 302,045 Nippon Telegraph and Telephone Corp.* 70 499,730 Orbital Sciences Corp. 35,000 603,750 Pathe SA* 2,100 526,429 PT Telekomunikasi* 160,000 278,624 STET* 300,000 1,272,791 Telco Communications Group 25,000 453,125 Worldcom, Inc. 15,000 399,375 - ---------------------------------------------------------------- $6,626,984 - ---------------------------------------------------------------- Computer Software -- 9.37% - ---------------------------------------------------------------- Computer Associates International, Inc. 16,000 $ 696,000 Informix Corp. 33,000 573,375 Misys PLC* 33,000 661,333 Oracle Corp. 18,000 706,500 Computer Software (continued) - ---------------------------------------------------------------- Oxford Molecular Group PLC* 50,000 $ 366,593 Primark Corp. 20,000 497,500 USCS International, Inc. 22,000 456,500 VTECH Holdings Ltd.* 330,000 571,414 - ---------------------------------------------------------------- $4,529,215 - ---------------------------------------------------------------- Computers and Business Equipment -- 3.44% - ---------------------------------------------------------------- Auspex Systems, Inc. 35,000 $ 406,875 DSC Communications 15,000 315,000 Informatics Ltd.* 547,000 262,852 Jacor Communications, Inc. 10,000 294,375 Shiva Corp. 23,000 382,375 - ---------------------------------------------------------------- $1,661,477 - ---------------------------------------------------------------- Consumer Services -- 1.23% - ---------------------------------------------------------------- CUC International, Inc. 25,000 $ 596,875 - ---------------------------------------------------------------- $ 596,875 - ---------------------------------------------------------------- Electronics - Instruments -- 13.05% - ---------------------------------------------------------------- Avimo Group Ltd.* 200,000 $ 251,140 Electric and Eltek International* 2,200,000 562,522 Hitachi Ltd.* 65,000 561,812 Mitsumi Electric Co., Ltd.* 31,000 579,680 Philips Electronics NV* 24,000 1,083,724 Roland* 3,000 52,358 Samsung Electronics* 3,300 270,634 Samsung Electronics GDR*/2/ 1,205 53,924 Sumitomo Electric Industries* 45,000 632,038 Tandberg Television ASA* 92,000 1,042,104 Thermo Electron Corp. 20,000 682,500 Venture Manufacturing* 200,000 538,758 - ---------------------------------------------------------------- $6,311,194 - ---------------------------------------------------------------- Electronics - Semiconductors -- 0.88% - ---------------------------------------------------------------- Intel Corp. 3,000 $ 425,625 - ---------------------------------------------------------------- $ 425,625 - ---------------------------------------------------------------- Entertainment -- 6.22% - ---------------------------------------------------------------- Carmike Cinemas, Inc. 20,000 $ 512,500 EMI Group PLC* 35,000 658,074 Sony Corp.* 19,100 1,382,596 Yoshimoto Kogyo* 42,000 453,771 - ---------------------------------------------------------------- $3,006,941 - ----------------------------------------------------------------
See notes to financial statements 9 Information Age Portfolio as of February 28, 1997 PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security Shares Value - ---------------------------------------------------------------- Information Services -- 14.75% - ---------------------------------------------------------------- Affiliated Computer Services 30,000 $ 618,750 Automatic Data Processing, Inc. 22,000 937,750 Bisys Group, Inc. 20,000 625,000 Ceridian Corp./1/ 16,000 626,000 Computer Sciences Corp. 11,000 742,500 DST Systems, Inc. 25,000 821,875 Fiserv Inc. 17,000 556,750 IDX Systems Corp. 15,000 472,500 Reuters Holdings PLC* 100,000 1,070,450 Sungard Data Systems, Inc. 13,000 659,750 - ---------------------------------------------------------------- $7,131,325 - ---------------------------------------------------------------- Miscellaneous -- 2.84% - ---------------------------------------------------------------- Boston Scientific Corp./1/ 5,000 $ 331,250 Eastman Kodak Co. 7,000 627,375 Healthdyne Technologies 30,000 416,250 - ---------------------------------------------------------------- $1,374,875 - ---------------------------------------------------------------- Publishing -- 12.23% - ---------------------------------------------------------------- Dow Jones & Co., Inc. 20,000 $ 802,500 EMAP* 25,000 314,048 Flammarion SA* 15,000 724,129 John Fairfax Holdings* 250,000 600,117 McGraw-Hill, Inc. 15,000 778,125 Oriental Press Group*/1/ 158,000 8,366 Pearson PLC* 105,000 1,315,577 Springer Alex Verlag AG* 800 557,698 Star Publications (Malaysia)* 185,000 812,122 - ---------------------------------------------------------------- $5,912,682 - ---------------------------------------------------------------- Total Common Stocks (identified cost $40,768,644) $45,015,105 - ---------------------------------------------------------------- Preferred Stocks -- 1.86% Publishing -- 1.85% - ---------------------------------------------------------------- News Corp., Ltd.* 199,500 $ 901,993 - ---------------------------------------------------------------- $ 901,993 - ---------------------------------------------------------------- Total Preferred Stocks (identified cost $749,858) $ 901,993 - ---------------------------------------------------------------- Short-Term Investments -- 8.24% Principle Amount Security (000 omitted) Value - ---------------------------------------------------------------- American General Finance Corp., 5.32%, 3/10/97 $ 861,000 $ 859,855 CIT Group Holdings, 5.40%, 3/3/97 2,000,000 1,999,400 GE Capital Co., 5.27%, 3/5/97 1,126,000 1,125,341 - ---------------------------------------------------------------- Total Short-Term Investments (identified cost $3,984,596) $3,984,596 - ---------------------------------------------------------------- Total Investments -- 103.18% (identified cost $45,503,098) $49,901,694 - ---------------------------------------------------------------- Other Assets, Less Liabilities -- (3.18)% $(1,537,764) - ---------------------------------------------------------------- Net Assets -- 100% $48,363,930 - ----------------------------------------------------------------
ADR -- American Depositary Receipt GDR -- Global Depositary Receipt * Foreign Security /1/ Non-income producing security. /2/ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At February 28, 1997, the value of these securities amounted to $53,924 or 0.1% of net assets. See notes to financial statements 10 Information Age Portfolio as of February 28, 1997 FINANCIAL STATEMENTS (Unaudited) Statement of Assets and Liabilities As of February 28, 1997 Assets - ----------------------------------------------------------------------------- Investments, at value (Note 1A) (identified cost, $45,503,098) $49,901,694 Cash 3,172 Receivable for investments sold 694,051 Dividends and interest receivable 23,832 Deferred organization expenses (Note 1C) 4,592 - ----------------------------------------------------------------------------- Total assets $50,627,341 - ----------------------------------------------------------------------------- Liabilities - ----------------------------------------------------------------------------- Payable for investments purchased $ 2,056,634 Payable for open forward foreign currency contracts 168,019 Payable to affiliate for Trustees' fees (Note 2) 1,097 Accrued expenses 37,661 - ----------------------------------------------------------------------------- Total liabilities $ 2,263,411 - ----------------------------------------------------------------------------- Net Assets applicable to investors' interest in Portfolio $48,363,930 - ----------------------------------------------------------------------------- Sources of Net Assets - ----------------------------------------------------------------------------- Net proceeds from capital contributions and withdrawals $43,969,041 Net unrealized appreciation of investments and foreign currency transactions (computed on the basis of identified cost) 4,394,889 - ----------------------------------------------------------------------------- Total $48,363,930 - -----------------------------------------------------------------------------
Statement of Operations For the Six Months Ended February 28, 1997 Investment Income - ----------------------------------------------------------------------------- Dividends (net of foreign taxes, $18,787) $ 167,894 Interest income 40,037 - ----------------------------------------------------------------------------- Total income $ 207,931 - ----------------------------------------------------------------------------- Expenses - ----------------------------------------------------------------------------- Investment adviser fee (Note 2) $ 174,311 Administration fee (Note 2) 57,605 Compensation of Trustees not members of the Investment Adviser's organization (Note 2) 4,136 Custodian fee 84,480 Legal and accounting services 13,152 Amortization of organization expenses (Note 1C) 619 Miscellaneous 2,814 - ----------------------------------------------------------------------------- Total expenses $ 337,117 - ----------------------------------------------------------------------------- Net investment loss $ (129,186) - ----------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments - ----------------------------------------------------------------------------- Net realized gain (loss) -- Investment transactions (identified cost basis) $ 2,664,808 Foreign currency transactions (25,377) - ----------------------------------------------------------------------------- Net realized gain on investment transactions $ 2,639,431 - ----------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investment (identified cost basis) $ 1,925,219 Foreign currency transactions (3,896) - ----------------------------------------------------------------------------- Net change in unrealized appreciation $ 1,921,323 - ----------------------------------------------------------------------------- Net realized and unrealized gain on investments $ 4,560,754 - ----------------------------------------------------------------------------- Net increase in net assets from operations $ 4,431,568 - -----------------------------------------------------------------------------
See notes to financial statements 11 Information Age Portfolio as of February 28, 1997 FINANCIAL STATEMENTS CONT'D Statements of Changes in Net Assets
Six Months Ended Increase (Decrease) February 28, 1997 Year Ended in Net Assets (Unaudited) August 31, 1996* - ----------------------------------------------------------------------------- From operations -- Net investment income (loss) $(129,186) $ 19,131 Net realized gain (loss) on investment transactions 2,639,431 (269,074) Net change in unrealized appreciation 1,921,323 2,473,566 - ----------------------------------------------------------------------------- Net increase in net assets from operations $4,431,568 $ 2,223,623 - ----------------------------------------------------------------------------- Capital transactions -- Contributions $9,685,489 $47,226,307 Withdrawals (8,456,51) (6,846,545) - ----------------------------------------------------------------------------- Net increase in net assets from capital transactions $1,228,977 $40,379,762 - ----------------------------------------------------------------------------- Net increase in net assets $5,660,545 $42,603,385 - ----------------------------------------------------------------------------- Net Assets - ----------------------------------------------------------------------------- At beginning of period $42,703,385 $ 100,000 - ----------------------------------------------------------------------------- At end of period $48,363,930 $42,703,385 - -----------------------------------------------------------------------------
* For the period from the start of business, September 18, 1995, to August 31, 1996. See notes to financial statements 12 Information Age Portfolio as of February 28, 1997 FINANCIAL STATEMENTS CONT'D Supplementary Data
Six Months Ended February 28, 1997 Year Ended (Unaudited) August 31, 1996* - ------------------------------------------------------------------------------- Ratios to average daily net assets - ------------------------------------------------------------------------------- Expenses 1.46%+ 1.52%+ Net investment income (loss) (0.56)%+ 0.07%+ Portfolio Turnover 95% 115% - ------------------------------------------------------------------------------- Average commission rate paid per share (1) $0.0137 $0.0303 - ------------------------------------------------------------------------------- Net assets, end of period (000s omitted) $48,364 $42,703 - -------------------------------------------------------------------------------
* For the period from the start of business, September 18, 1995, to August 31, 1996. + Annualized. (1) Average commission rate paid per share is computed by dividing the total dollar amount of commissions paid during the fiscal year by the total number of shares purchased and sold during the fiscal year for which commissions were charged. See notes to financial statements 13 Information Age Portfolio as of February 28, 1997 NOTES TO FINANCIAL STATEMENTS (Unaudited) 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 September 1, 1992 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 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 Federal Taxes -- The Portfolio is treated as a partnership for 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 on its share of such income. Since some of the Portfolio's investors are regulated investment companies that invest all or substantially all of their 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 Trust'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 foreign currency 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 result from fluctuations in foreign currency exchange rates are not separately disclosed. 14 Information Age Portfolio as of February 28, 1997 NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D 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 revenue 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 Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian of the Portfolio. Pursuant to the custodian agreement, IBT receives a fee reduced by credits which are determined based on the average daily cash balances the Portfolio maintains with IBT. All significant credit balances used to reduce the Portfolio's custodian fees are reflected as a reduction of operating expense on the statement of operations. K Interim Financial Information -- The interim financial statements relating to February 28, 1997 and for the period 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 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 28, 1997 the adviser fee was 0.75% (annualized) of average net assets for such period and amounted to $174,311. 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 28, 1997 the administration fee was 0.25% (annualized) of average net assets for such period and amounted to $57,605. 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 28, 1997, no significant amounts have been deferred. Certain of the officers and Trustees of the Portfolio are officers and directors/trustees of the above organizations. 3 Investment Transactions --------------------------------------------------------------------------- Purchase and sales of investments, other than short-term obligations, aggregated $42,906,185 and $44,452,932, respectively. 15 Information Age Portfolio as of February 28, 1997 NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D 4 Federal Income Tax Basis of Investments --------------------------------------------------------------------------- The cost and unrealized appreciation/depreciation in value of the investments owned at February 28, 1997, are as follows: Aggregate cost $ 45,503,098 --------------------------------------------------------------------------- Gross unrealized appreciation $ 5,641,287 Gross unrealized depreciation (1,242,691) --------------------------------------------------------------------------- Net unrealized appreciation $4,398,596 --------------------------------------------------------------------------- 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 located 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 28,1997. 7 Line of Credit --------------------------------------------------------------------------- The Portfolio participates with other portfolios and funds managed by BMR and EVM and its affiliates in a $120 million unsecured line of credit agreement with a group of banks. Borrowings will be made by the Portfolio solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to each portfolio or fund based on its borrowings at the bank's base rate or at an amount above either the bank's adjusted certificate of deposit rate, a Eurodollar rate, or a federal funds effective rate. In addition, a fee computed at an annual rate of 0.15% 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 period. 16 EV Marathon Information Age Fund as of February 28, 1997 INVESTMENT MANAGEMENT EV Marathon Information Age Fund Officers Independent Trustees James B. Hawkes Donald R. Dwight President and Trustee President, Dwight Partners, Inc. Chairman, Newspapers of New England, Inc. M. Dozier Gardner Vice President Samuel L. Hayes, III Jacob H. Schiff Professor of Investment Banking, William D. Burt Harvard University Graduate School of Vice President Business Administration Barclay Tittmann Norton H. Reamer Vice President President and Director, United Asset Management Corporation James L. O'Connor Treasurer John L. Thorndike Formerly Director, Fiduciary Company Incorporated Thomas Otis Secretary Jack L. Treynor Investment Adviser and Consultant
Information Age Portfolio Officers Independent Trustees James B. Hawkes Hon. Edward K.Y. Chen President and Trustee Professor and Director, Center for Asian Studies, University of Hong Kong William Chisholm Vice President Donald R. Dwight President, Dwight Partners, Inc. Michel Normandeau Chairman, Newspapers of New England, Inc. Vice President Samuel L. Hayes, III Raymond O'Neill Jacob H. Schiff Professor of Investment Banking, Vice President Harvard University Graduate School of Business Administration Duncan W. Richardson Vice President and Norton H. Reamer Co-Portfolio Manager President and Director, United Asset Management Corporation Hon. Robert Lloyd George Vice President, Trustee and John L. Thorndike Co-Portfolio Manager Formerly Director, Fiduciary Company Incorporated James L. O'Connor Jack L. Treynor Treasurer Investment Adviser and Consultant Thomas Otis Secretary
17 Sponsor and Manager of EV Marathon Information Age Fund and Administrator of Information Age Portfolio Eaton Vance Management 24 Federal Street Boston, MA 02110 Co-Adviser of Information Age Portfolio Boston Management and Research 24 Federal Street Boston , MA 02110 Lloyd George Investment Management (Bermuda) Limited 3808 One Exchange Square Central, Hong Kong Principal Underwriter Eaton Vance Distributors, Inc. 24 Federal Street Boston, MA 02110 (617) 482-8260 Custodian Investors Bank & Trust Company 89 South Street P.O. Box 1537 Boston, MA 02205-1537 Transfer Agent First Data Investor Services Group Attn: Eaton Vance Funds P.O. Box 5123 Westborough, MA 01581-5123 (800) 262-1122 EV Marathon Information Age Fund 24 Federal Street Boston, MA 02110 - ------------------------------------------------------------------------------- This report must be preceded or accompanied by a current prospectus which contains more complete information on the Fund, including its distribution plan, sales charges and expenses. Please read the prospectus carefully before you invest or send money M-IASRC-4/97 -----END PRIVACY-ENHANCED MESSAGE-----