-----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, NJlx7nxm4oql3R5TKws/LqG+tuuGQLG7vqN+FnnRiPXLEen8EzJ1FCsIIq1VBklc gx/SubvpP+tCPwSLeU/IgA== 0000950109-98-004867.txt : 19981104 0000950109-98-004867.hdr.sgml : 19981104 ACCESSION NUMBER: 0000950109-98-004867 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980831 FILED AS OF DATE: 19981103 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: 98736804 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 EV INFO AGE FUND ANNUAL REPORT [LOGO OF Investing EATON VANCE APPEARS HERE] for the [PHOTO OF GLOBE APPEARS HERE] 21st Century Annual Report August 31, 1998 EATON VANCE [PHOTO OF CELLULAR DISH ANTENNAE APPEARS HERE] INFORMATION AGE FUND Global Management-Global Distribution [PHOTO OF BABY AT COMPUTER APPEARS HERE] Eaton Vance Information Age Fund as of August 31, 1998 LETTER TO SHAREHOLDERS [PHOTO OF JAMES B. HAWKES APPEARS HERE] James B. Hawkes, President Eaton Vance Information Age Fund Class A shares had a total return of 2.3% for the year ended August 31, 1998. That return was the result of a decline in net asset value per share (NAV) to $11.71 on August 31, 1998 from $11.97 on August 31, 1997, and the reinvestment of $0.535 in capital gains distributions./1/ Class B shares had a total return of 2.1% for the year, the result of a decline in NAV to $12.03 from $12.31, and the reinvestment of $0.535 in capital gains distributions./1/ Class C shares had a total return of 2.0% for the year, the result of a decline in NAV to $11.72 from $12.02, and the reinvestment of $0.535 in capital gains distributions./1/ By comparison, the Morgan Stanley Capital International (MSCI) World Index - a broadly-based index composed of global common stocks - had a return of 0.0%. The average return of Global Equity Funds was -3.0%, according to Lipper Analytical Services, a nationally recognized monitor of mutual fund performance./2/ This Index replaces the Fund's former benchmarks, the S&P 500 Index and the MSCI Europe, Australasia, and Far East Index, because we believe that it provides a more representative barometer of global market performance. Information age stocks participate in global stock market volatility ... The world's stock markets have encountered extraordinary volatility in recent months, as weakness in Asian economies, currency instability, and political uncertainties have combined to create a difficult climate for global investors. The stocks of information companies did not escape the market decline, although many fast-growth companies have reached very attractive valuations, once again presenting unusually good opportunities for investors. Europe's telecom industry follows the U.S. on the road to deregulation... While the markets have been unsteady, change continues within the information industries. Legislation went into effect within the European Community in January, 1998, ending Europe's telecom monopolies, but ensuring a more competitive global marketplace. On a similar note, the World Trade Organization reached an agreement in 1997 aimed at opening all telecom markets by the year 2000. While telecoms are but one segment of the information age tapestry, these changes are improving people's lifestyles while providing opportunities for investors. In the following pages, portfolio managers Duncan Richardson and Jacob Rees-Mogg review the past year and look to opportunities in the year ahead. Sincerely, /s/ James B. Hawkes James B. Hawkes President October 9, 1998 - -------------------------------------------------------------------------------- Fund Information as of August 31, 1998 Performance/3/ Class A Class B Class C - ------------------------------------------------------------------------------- Average Annual Total Returns (at net asset value) - ------------------------------------------------------------------------------- One Year 2.3% 2.1% 2.0% Life of Fund+ 11.3 11.0 10.0 SEC Average Annual Total Returns (including sales charge or applicable CDSC) - ------------------------------------------------------------------------------- One Year -3.6% -2.8% 1.0% Life of Fund+ 9.0 9.9 10.0 + Inception Dates - Class A: 9/18/95; Class B: 9/18/95; Class C:11/22/95 Ten Largest Holdings/4/ - -------------------------------------------------------------------------------- Pearson PLC 3.3% Telecom Italia Spa 3.2 British Telecommunications PLC 3.2 Securicor PLC 2.0 Energis 2.0 Sungard Data Systems, Inc. 2.0 Equant NV 2.0 Philips Electronics 1.8 GTE Corp. 1.8 Misys PLC 1.8 /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/It is not possible to invest directly in an Index or Lipper average. /3/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. /4/As of 8/31/98. Ten largest holdings accounted for 23.1% 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. - -------------------------------------------------------------------------------- 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. - -------------------------------------------------------------------------------- 2 Eaton Vance Information Age Fund as of August 31, 1998 MANAGEMENT DISCUSSION [PHOTO OF DUNCAN RICHARDSON APPEARS HERE] Duncan Richardson, Co-Portfolio Manager [PHOTO OF THE HON. JACOB REES-MOGG APPEARS HERE] Hon. Jacob Rees-Mogg, Co-Portfolio Manager An interview with Duncan Richardson and Hon. Jacob Rees-Mogg, co-portfolio managers of Information Age Portfolio. Q: Duncan, the broad market has seen some rough sledding in recent months. Have the information age industries reflected that pattern? A: Mr. Richardson: They certainly have. The market peaked in mid-July and by the end of August had given back nearly all of its advance for the year. Even stocks with strong earnings momentum had seen valuations get well ahead of themselves. That was especially true of the technology sector, where earnings estimates have recently been scaled back in response to the economic weakness in Asia. For small- and mid-cap stocks, the correction has been especially severe, with the average stock down 30% since April. However, while the decline has been unnerving to some investors, it has clearly created some opportunities, as valuations in information sectors have become much more reasonable for many quality companies. And, while market leadership has been dominated by large-cap stocks for several years running, we are now seeing unusually good values appear in smaller- and mid-cap information stocks. Q: How has your strategy shifted in recent months? A: Mr. Richardson: In the belief that the longer-term effects of the Asian weakness are likely to be felt for quite some time, we have generally emphasized companies whose businesses have relatively little exposure to that part of the world. Moreover, as the markets surged higher in the first half of 1998, we took some profits in companies we viewed as fully-valued. As a result, the Portfolio had a larger-than-usual cash position at fiscal year-end. That should enable the Portfolio to take advantage of improved valuations caused by the recent market correction. It's especially worth noting that, while the Portfolio has declined with the market, its broad industry and country diversification have made it significantly less volatile than individual information sectors such as technology or Internet-related stocks. Q: Jacob, has volatility characterized the European markets as well? A: Mr. Rees-Mogg: It has indeed. European markets have declined significantly from the peaks reached earlier in the year. For example, Germany's DAX Index declined nearly 25% from its high, due, in part, to the outright exposure of some companies to Russia and - -------------------------------------------------------------------------------- Five Largest Industry Positions/1/ - -------------------------------------------------------------------------------- By total net assets [BAR CHART APPEARS HERE] Communications Services 14.7% Information Services 12.8% Publishing 12.5% Broadcasting & Cable 10.9% Computer Software 7.2% Regional Distribution/1/ - -------------------------------------------------------------------------------- By total net assets [PIE CHART APPEARS HERE] Japan 2.7% U.S. 54.8% U.K. 17.9% Europe 16.1% Other 8.5% /1/Because the Fund is actively managed, industry weightings and regional distributions are subject to change. Five largest industries accounted for 58.1% of the Portfolio's investments. Holdings are subject to change. 3 Eaton Vance Information Age Fund as of August 31, 1998 MANAGEMENT DISCUSSION CONT'D [PHOTO APPEARS HERE] - ------------------------------------------------------------------------------- China: Dialing Up Telecom Growth China, with a population of 1.2 billion - has a phone penetration rate of just 7.5%. The Ministry of Post and Telecommunications has targeted a 10% penetration rate by the year 2000. Cellular subscribers are expected to reach 35 million. Source: Financial Times - ------------------------------------------------------------------------------- concerns over the potential fallout. Those companies with exposure to Asia's problems were also hard-pressed. However, the industries in which the Portfolio is concentrated, such as telecommunications and broadcasting, are generally insulated from both the Asian and Russian difficulties. That has helped limit the Fund's volatility. Q: How have you allocated the non-U.S. portion of the Portfolio? A: Mr. Rees-Mogg: At August 31, 17.9% of the Portfolio was invested in the U.K., while 16.1% was invested in continental Europe, 2.7% in Japan, and 8.5% elsewhere in the world. As Duncan has noted, the Portfolio's cash position at August 31 was fairly high, which should permit us to take advantage of the recent corrections in some global markets. I expect that in coming months, we will add to the Portfolio's weightings in Japan and Europe, where the downturn has created compelling values. Q: Duncan, what sectors have you emphasized among the Portfolio's U.S. stocks? A: Mr. Richardson: We've maintained a fairly eclectic mix of stocks, with a continuing emphasis on growth at a reasonable price. We've also focused on companies that are insulated from the Asian economic uncertainties. Broadcasting and media stocks have played a major role. Comcast Corp. and Cox Communications, for example, are among the nation's largest cable television providers. Cox has cable interests both in the U.S. and in Europe. The company has expanded its subscriber base through the acquisition of local cable companies and last year enjoyed 6% pricing growth. Cox is also involved in cable programming and has a growing telecom business. Q: The technology industry was also a major commitment. Where have you focused your technology investments? A: Mr. Richardson: As I've indicated in previous reports, technology stocks tend to march to their own beat, based on changes in product cycles and fluctuations in demand. The stocks corrected sharply in October, 1997 amid the first wave of concern over the Asian difficulties. The stocks rebounded in the first half of 1998, but have since undergone another sharp correction. We have focused our investments on companies that are less sensitive to Asian demand and that should be able to sustain revenue and earnings growth through this uncertain period. Xerox Corp., for example, is a major manufacturer of copiers and business equipment. The company has significantly expanded its product line while implementing highly successful cost controls. Another stock in the Portfolio, Lexmark International Group, Inc., makes printers and printer servers and has produced consistent earnings growth since it was spun off by IBM in 1991. Finally, SunGard Data Systems, Inc. produces software as well as disaster recovery services for business systems. The company has seen rising demand for its products, boosted, in part, by increased business spending to address the "Year 2000" problem. Q: Jacob, technology stocks were no less troublesome abroad. What steps did you take to manage the volatility? A: Mr. Rees-Mogg: We've followed a dual strategy in managing volatility. First, when companies reach what we believe are excessive valuations, we will take some profits. The old maxim of "selling half and owning the other half for free" has proven a sound, time-tested approach. 4 Eaton Vance Information Age Fund as of August 31, 1998 ================================================================================ The second approach is to search other global markets for undervalued stocks. This is another way in which the Fund's flexibility plays to our advantage. This approach has uncovered some interesting opportunities in Israel, where valuations for quality technology companies are about one-half those in the U.S. and European markets. Formula Systems Ltd. ADR, for example, is a software manufacturer and typical of fast-growth, Israel-based technology companies. These companies possess excellent talent and products and are achieving good profit growth. Q: You mentioned that global telecom stocks were prominent among your investments. What has made those stocks attractive? A: Mr. Rees-Mogg: There have been several factors. In the European market, deregulation took effect on January 1, 1998, in compliance with new European Community regulations. Initially, there were concerns about how the well-established companies such as British Telecommunications and Telecom Italia Spa would perform under the new regime. As it turned out, those fears were unfounded, as the companies' earnings and revenue growth have remained quite strong. In addition, the telecoms continue to forge global alliances that should position them for continued growth in coming years. On a separate path, the new EC regulatory environment has resulted in the formation of some new telecom entities. Companies such as U.K.-based Energis have been able to grow very rapidly by selling a specialized array of services to a niche customer base. We are very enthusiastic about their prospects in the new environment. Q: Duncan, the U.S. telecom industry has seen a lot of merger activity in the past year. How have you approached the group? A: Mr. Richardson: The U.S. telecom service sector remains very competitive and dynamic as local and long-distance service providers continue their turf wars over access and market share. As a result, we have stepped carefully in that area, with only a few holdings. In May, one of the Portfolio's holdings, SBC Communications, Inc., announced a merger with Ameritech Corp. that will create an enormous service area for the combined company. SBC has realized strong line growth while enjoying increasing demand for higher-margin services. Another communications service holding, General Motors Corp. Class H, provides satellite construction and launch services. Their business is booming as they provide satellites for new telecom competitors. Q: Jacob, media stocks remain among your largest investments. What do you find compelling about that group? A: Mr. Rees-Mogg: Broadcast and media stocks have been stalwart performers for the Portfolio. Large companies such as Pearson PLC, News Corp. Ltd., and Granada Group PLC have added market share through acquisitions and are well-positioned to offer excellent advertising outlets to companies in the increasingly integrated European economy. If global economic growth slows somewhat from the pace we've witnessed in recent years, it could have a dampening effect on advertising revenues in the very late stages of the economic cycle. However, these companies have done an excellent job of diversifying their media properties. The Portfolio also owns important "content" companies such as Philips Electronics and Sony Corp. With an improving standard of living around the world and increasing leisure time, the demand for entertainment, music and film content continues to rise. Q: Duncan, Internet-related companies have been much in the news lately. Has the Portfolio participated in Internet stocks? A: Mr. Richardson: It's true that there has been Internet mania of late, both on the upside and the downside. However, we've been very selective with respect to Internet-related stocks, steering clear of the "mania" stocks in favor of companies whose prospects will be enhanced or costs reduced by Internet exposure. E*Trade Group, Inc., an Internet-based brokerage business, is a good example. The company has been able to attract new customers with new 5 Eaton Vance Information Age Fund as of August 31, 1998 - -------------------------------------------------------------------------------- MANAGEMENT DISCUSSION CONT'D - -------------------------------------------------------------------------------- features and user-friendly services and has seen the volume of its business rise sharply. Another area in which we have participated is companies that are helping to build the Web, including Computer Associates International, a software developer with a growing exposure to the client/server business, and Oracle Corp., which produces database software for companies using the Internet. Meanwhile, we have avoided the pure Internet plays, whose valuations we feel are not supported by underlying fundamentals. Unattractive valuations and increasing competition give those companies a level of risk that we, as fundamental investors, prefer not to assume. There are fairly low barriers to entry in some of these Internet businesses, and as a result, the competitive risks are very high. Q: What is your outlook for the coming year for information-based companies? A: Mr. Richardson: We continue to search for growth at a reasonable price; opportunities in sound companies with real products and promising growth prospects. Historically, this has proven to be a sound investment strategy. In recent months, the Asian difficulties have been the equivalent of a cyclone through many markets. Without question, that has altered the outlook for some companies while creating better valuations for others. We continue to see opportunities emerging, but expect that there will be ongoing volatility in many markets and sectors. Because the Portfolio is so well diversified among the information industries, we have been able to somewhat temper this volatility. As Jacob has pointed out, our global reach also gives us the ability to take advantage of improving fundamentals in other markets. In its first three years of operation, the Portfolio was tested by volatility of technology stocks and by the collapse of markets around the world. The structure of the Portfolio, our fundamental approach, and our valuation discipline have allowed us to accomplish what we set out to do: deliver growth while limiting volatility. Jacob and I believe that the Portfolio continues to be well-positioned to pursue information-driven growth opportunities for our fellow shareholders in the year ahead. Eaton Vance Information Age Fund, Class A vs. S&P 500, Europe, Australasia and Far East Index, and Morgan Stanley Capital Int. World Index [LINE GRAPH APPEARS HERE] Date Fund/NAV Fund/Off Price S&P 500 EAFE MSCIWI ---- -------- -------------- ------- ---- ------ 9/30/95 $10,000 $9,424 $10,000 $10,000 $10,000 10/31/95 $10,138 $9,554 $9,970 $9,734 $9,844 11/30/95 $10,236 $9,647 $10,400 $10,007 $10,188 12/31/95 $10,296 $9,703 $10,602 $10,413 $10,488 1/31/96 $10,335 $9,740 $10,967 $10,458 $10,679 2/28/96 $10,562 $9,954 $11,063 $10,496 $10,746 3/31/96 $10,581 $9,972 $11,171 $10,722 $10,927 4/30/96 $11,143 $10,501 $11,342 $11,036 $11,186 5/31/96 $11,360 $10,706 $11,623 $10,836 $11,198 6/30/96 $11,192 $10,548 $11,672 $10,899 $11,256 7/31/96 $10,502 $9,898 $11,160 $10,583 $10,861 8/31/96 $10,897 $10,269 $11,393 $10,609 $10,988 9/30/96 $11,547 $10,882 $12,033 $10,894 $11,420 10/31/96 $11,320 $10,669 $12,369 $10,785 $11,502 11/30/96 $11,842 $11,161 $13,299 $11,217 $12,148 12/31/96 $11,715 $11,041 $13,035 $11,075 $11,956 1/31/97 $11,923 $11,236 $13,855 $10,690 $12,102 2/28/97 $11,932 $11,246 $13,959 $10,868 $12,243 3/31/97 $11,518 $10,855 $13,385 $10,910 $12,003 4/30/97 $11,617 $10,948 $14,190 $10,970 $12,398 5/31/97 $12,564 $11,840 $15,044 $11,687 $13,165 6/30/97 $13,027 $12,277 $15,720 $12,334 $13,824 7/31/97 $13,648 $12,863 $16,972 $12,536 $14,462 8/31/97 $13,186 $12,427 $16,022 $11,602 $13,497 9/30/97 $13,869 $13,071 $16,897 $12,255 $14,233 10/31/97 $13,142 $12,386 $16,338 $11,316 $13,486 11/30/97 $13,484 $12,708 $17,090 $11,203 $13,726 12/31/97 $13,734 $12,943 $17,383 $11,303 $13,896 1/31/98 $13,895 $13,095 $17,581 $11,823 $14,285 2/28/98 $15,070 $14,203 $18,843 $12,584 $15,254 3/31/98 $15,923 $15,006 $19,806 $12,974 $15,900 4/30/98 $15,969 $15,050 $20,011 $13,080 $16,058 5/31/98 $15,716 $14,811 $19,659 $13,020 $15,859 6/30/98 $16,015 $15,093 $20,460 $13,121 $16,238 7/31/98 $15,865 $14,952 $20,247 $13,257 $16,214 8/31/98 $13,492 $12,715 $17,320 $11,617 $14,054 Eaton Vance Information Age Fund, Class B vs. S&P 500, Europe, Australasia and Far East Index, and Morgan Stanley Capital Int. World Index Date Fund/NAV Fund/CDSC S&P 500 EAFE MSCIWI ---- -------- --------- ------- ---- ------ 9/30/95 $10,000 - $10,000 $10,000 $10,000 10/31/95 $10,128 - $9,970 $9,734 $9,844 11/30/95 $10,226 - $10,400 $10,007 $10,188 12/31/95 $10,285 - $10,602 $10,413 $10,488 1/31/96 $10,315 - $10,967 $10,458 $10,679 2/28/96 $10,541 - $11,063 $10,496 $10,746 3/31/96 $10,571 - $11,171 $10,722 $10,927 4/30/96 $11,112 - $11,342 $11,036 $11,186 5/31/96 $11,329 - $11,623 $10,836 $11,198 6/30/96 $11,161 - $11,672 $10,899 $11,256 7/31/96 $10,482 - $11,160 $10,583 $10,861 8/31/96 $10,866 - $11,393 $10,609 $10,988 9/30/96 $11,516 - $12,033 $10,894 $11,420 10/31/96 $11,289 - $12,369 $10,785 $11,502 11/30/96 $11,811 - $13,299 $11,217 $12,148 12/31/96 $11,685 - $13,035 $11,075 $11,956 1/31/97 $11,892 - $13,855 $10,690 $12,102 2/28/97 $11,902 - $13,959 $10,868 $12,243 3/31/97 $11,478 - $13,385 $10,910 $12,003 4/30/97 $11,567 - $14,190 $10,970 $12,398 5/31/97 $12,513 - $15,044 $11,687 $13,165 6/30/97 $12,966 - $15,720 $12,334 $13,824 7/31/97 $13,587 - $16,972 $12,536 $14,462 8/31/97 $13,126 - $16,022 $11,602 $13,497 9/30/97 $13,808 - $16,897 $12,255 $14,233 10/31/97 $13,083 - $16,338 $11,316 $13,486 11/30/97 $13,414 - $17,090 $11,203 $13,726 12/31/97 $13,655 - $17,383 $11,303 $13,896 1/31/98 $13,811 - $17,581 $11,823 $14,285 2/28/98 $14,992 - $18,843 $12,584 $15,254 3/31/98 $15,827 - $19,806 $12,974 $15,900 4/30/98 $15,872 - $20,011 $13,080 $16,058 5/31/98 $15,627 - $19,659 $13,020 $15,859 6/30/98 $15,916 - $20,460 $13,121 $16,238 7/31/98 $15,760 - $20,247 $13,257 $16,214 8/31/98 $13,399 $12,999 $17,320 $11,617 $14,054 Performance Class A Class B Class C - -------------------------------------------------------------------------------- Average Annual Total Returns (at net asset value) - -------------------------------------------------------------------------------- One Year 2.3% 2.1% 2.0% Life of Fund+ 11.3 11.0 10.0 SEC Average Annual Total Returns (including sales charge or applicable CDSC) - -------------------------------------------------------------------------------- One Year -3.6% -2.8% 1.0% Life of Fund+ 9.0 9.9 10.0 +Inception Dates - Class A: 9/18/95; Class B: 9/18/95; Class C: 11/22/95 *Source: Towers Data Systems, Bethesda, MD. Investment operations commenced 9/18/95. Index information is available only at month-end; therefore, the line comparison begins at the next month-end following the commencement of the Fund's investment operations. Past performance is no guarantee of future results. Investment return and principal fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The performance chart above compares the total return of the Fund's Class A and B shares with that of three broad-based securities market indices. Returns are calculated by determining the percentage change in net asset value (NAV) with all distributions reinvested. The lines on the chart represent the total returns of $10,000 hypothetical investments in the Fund, the S&P 500 Index - a broad-based, widely recognized index of 500 common stocks traded in the U.S. - the Morgan Stanley Capital International (MSCI) Europe, Australasia, and Far East Index (EAFE) - a broad-based index of common stocks traded in foreign markets, and the Morgan Stanley Capital International World Index - a broad- based index of global common stocks. With this report, we are establishing the MSCI World Index as the Fund's comparative benchmark. We believe that the new Index provides a more representative benchmark of global market performance than the Fund's former benchmarks. In accordance with Security and Exchange Commission regulations, we are including the former benchmarks as well in this report. An investment in the Fund's Class C shares on 11/30/95 at net asset value would have been worth $12,945 on August 31, 1998. The Indices' total returns do not reflect any commissions or expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. It is not possible to invest directly in the Indices. 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. . **This figure represents the performance of the Fund's Class B shares, including the applicable CDSC. 6 Eaton Vance Information Age Fund as of August 31, 1998 FINANCIAL STATEMENTS Statement of Assets and Liabilities
As of August 31, 1998 Assets - -------------------------------------------------------------------------------------- Investment in Information Age Portfolio, at value (identified cost, $43,109,820) $45,168,209 Receivable for Fund shares sold 72,877 Tax reclaim receivable 22,184 Deferred organization expenses 54,171 - -------------------------------------------------------------------------------------- Total assets $45,317,441 - -------------------------------------------------------------------------------------- Liabilities - -------------------------------------------------------------------------------------- Payable for Fund shares redeemed $ 118,051 Other accrued expenses 75,374 - -------------------------------------------------------------------------------------- Total liabilities $ 193,425 - -------------------------------------------------------------------------------------- Net Assets $45,124,016 - -------------------------------------------------------------------------------------- Sources of Net Assets - -------------------------------------------------------------------------------------- Paid-in capital $40,723,291 Accumulated undistributed net realized gain on investments from Porfolio (computed on the basis of identified cost) 2,342,336 Net unrealized appreciation of investments from Portfolio (computed on the basis of identified cost) 2,058,389 - -------------------------------------------------------------------------------------- Total $45,124,016 - -------------------------------------------------------------------------------------- Class A Shares - -------------------------------------------------------------------------------------- Net Assets $12,262,736 Shares Outstanding 1,047,023 Net Asset Value and Redemption Price Per Share (Net assets / shares of beneficial interest outstanding) $ 11.71 Maximum Offering Price Per Share (100 / 94.25 of $11.71) $ 12.42 - -------------------------------------------------------------------------------------- Class B Shares - -------------------------------------------------------------------------------------- Net Assets $30,330,669 Shares Outstanding 2,520,737 Net Asset Value, Offering Price and Redemption Price Per Share (Net assets / shares of beneficial interest outstanding) $ 12.03 - -------------------------------------------------------------------------------------- Class C Shares - -------------------------------------------------------------------------------------- Net Assets $ 2,530,611 Shares Outstanding 215,871 Net Asset Value and Redemption Price Per Share (Net assets / shares of beneficial interest outstanding) $ 11.72 - -------------------------------------------------------------------------------------- On sales of $50,000 or more, the offering price of Class A shares is reduced. Statement of Operations For the Year Ended August 31, 1998 Investment Income - -------------------------------------------------------------------------------------- Dividends allocated from Portfolio (net of foreign taxes, $58,523) $ 577,255 Interest allocated from Portfolio 140,448 Expenses allocated from Portfolio (694,773) - -------------------------------------------------------------------------------------- Net investment income from Portfolio $ 22,930 - -------------------------------------------------------------------------------------- Expenses - -------------------------------------------------------------------------------------- Management fee $ 121,096 Trustees fees and expenses 1,015 Distribution and service fees Class A 67,985 Class B 300,083 Class C 25,467 Transfer and dividend disbursing agent fees 105,641 Registration fees 43,397 Legal and accounting services 28,167 Amortization of organization expenses 25,889 Printing and postage 19,891 Custodian fee 8,487 - -------------------------------------------------------------------------------------- Miscellaneous 11,490 - -------------------------------------------------------------------------------------- Total expenses $ 758,608 - -------------------------------------------------------------------------------------- Net investment loss $ (735,678) - -------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) from Portfolio - -------------------------------------------------------------------------------------- Net realized gain (loss) -- Investment transactions (identified cost basis) $ 4,899,387 Foreign currency transactions and forward foreign currency exchange contracts (82,864) - -------------------------------------------------------------------------------------- Net realized gain $ 4,816,523 - -------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments $(3,470,191) Foreign currency and forward foreign currency exchange contracts (5,484) - -------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) $(3,475,675) - -------------------------------------------------------------------------------------- Net realized and unrealized gain $ 1,340,848 - -------------------------------------------------------------------------------------- Net increase in net assets from operations $ 605,170 - --------------------------------------------------------------------------------------
See notes to financial statements 7 Eaton Vance Information Age Fund as of August 31, 1998 FINANCIAL STATEMENTS CONT'D Statements of Changes in Net Assets
Increase (Decrease) Year Ended Year Ended in Net Assets August 31, 1998 August 31, 1997 - ---------------------------------------------------------------------------------- From operations -- Net investment loss $ (735,678) $ (427,774) Net realized gain 4,816,523 2,892,020 Net change in unrealized appreciation (depreciation) (3,475,675) 2,299,858 - ---------------------------------------------------------------------------------- Net increase in net assets from operations $ 605,170 $ 4,764,104 - ---------------------------------------------------------------------------------- Distributions to shareholders -- From net realized gain Class A $ (552,894) $ -- Class B (1,244,963) (2,278,431) Class C (102,337) -- - ---------------------------------------------------------------------------------- Total distributions to shareholders $ (1,900,194) $ (2,278,431) - ---------------------------------------------------------------------------------- Transactions in shares of beneficial interest -- Proceeds from sale of shares Class A $ 8,682,876 $ -- Class B 7,304,479 8,573,846 Class C 1,093,920 -- Issued in reorganization of EV Traditional and Classic Information Age Funds Class A 12,492,459 -- Class C 2,147,859 -- Net asset value of shares issued to shareholders in payment of distributions declared Class A 528,077 -- Class B 1,150,455 2,073,164 Class C 95,882 -- Cost of shares redeemed Class A (9,182,708) -- Class B (6,235,093) (5,896,343) Class C (695,984) -- - ---------------------------------------------------------------------------------- Net increase in net assets from Fund share transactions $ 17,382,222 $ 4,750,667 - ---------------------------------------------------------------------------------- Net increase in net assets $ 16,087,198 $ 7,236,340 - ---------------------------------------------------------------------------------- Net Assets - ---------------------------------------------------------------------------------- At beginning of year $ 29,036,818 $ 21,800,478 - ---------------------------------------------------------------------------------- At end of year $ 45,124,016 $ 29,036,818 - ----------------------------------------------------------------------------------
See notes to financial statements 8 Eaton Vance Information Age Fund as of August 31, 1998 FINANCIAL STATEMENTS CONT'D Financial Highlights
Year Ended August 31, --------------------------------------------------------------------- 1998 1997 1996/(1)(2)/ --------------------------------------- ------------------------- Class A Class B Class C Class B Class B - --------------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year $11.970 $ 12.310 $12.020 $11.040 $10.000 - --------------------------------------------------------------------------------------------------------------------------------- Income (loss) from operations - --------------------------------------------------------------------------------------------------------------------------------- Net investment loss $(0.156) $ (0.210) $(0.205) $(0.178) $(0.134) Net realized and unrealized gain 0.431 0.465 0.440 2.490 1.174 - --------------------------------------------------------------------------------------------------------------------------------- Total income from operations $ 0.275 $ 0.255 $ 0.235 $ 2.312 $ 1.040 - --------------------------------------------------------------------------------------------------------------------------------- Less distributions - --------------------------------------------------------------------------------------------------------------------------------- From net realized gain $(0.535) $ (0.535) $(0.535) $(1.042) $ -- - --------------------------------------------------------------------------------------------------------------------------------- Total distributions $(0.535) $ (0.535) $(0.535) $(1.042) $ -- - --------------------------------------------------------------------------------------------------------------------------------- Net asset value -- End of year $11.710 $ 12.030 $11.720 $12.310 $11.040 - --------------------------------------------------------------------------------------------------------------------------------- Total Return/(4)/ 2.32% 2.08% 1.96% 20.79% 10.40% - --------------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data - --------------------------------------------------------------------------------------------------------------------------------- Net assets, end of year (000's omitted) $12,263 $ 30,331 $ 2,531 $29,037 $21,800 Ratios (As a percentage of average daily net assets): Expenses/(5)/ 2.68% 3.12% 3.20% 3.19% 2.96%/(3)/ Net investment loss (1.20)% (1.64)% (1.72)% (1.67)% (1.34)%/(3)/ - ---------------------------------------------------------------------------------------------------------------------------------
/(1)/For the period from the start of business, September 18, 1995, to August 31, 1996. /(2)/Net investment income per share was computed using average shares outstanding. /(3)/Annualized. /(4)/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. /(5)/Includes the Fund's share of its Portfolio's allocated expenses. See notes to financial statements 9 Eaton Vance Information Age Fund as of August 31, 1998 NOTES TO FINANCIAL STATEMENTS 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 sold subject to a sales charge imposed at the 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). All classes of shares have equal rights to assets and voting privileges. 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 (84.3% at August 31, 1998). 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 the 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 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. 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 10 Eaton Vance Information Age Fund as of August 31, 1998 NOTES TO FINANCIAL STATEMENTS CONT'D is based on a percentage of average daily net assets. For the year ended August 31, 1998, the fee was equivalent to 0.25% of the Fund's average net assets for such period and amounted to $121,096. 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. Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Funds' principal underwriter, received $7,960 from the Fund as its portion of the sales charge on sales of Class A shares for the year ended August 31, 1998. 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 classes. Transactions in Fund shares were as follows: Year Ended Class A August 31, 1998 -------------------------------------------------------------------------- Sales 639,018 Issued to shareholders electing to receive payment of distribution in Fund shares 45,288 Redemptions (681,009) Issued to EV Traditional Information Age Shareholders 1,043,726 -------------------------------------------------------------------------- Net increase 1,047,023 -------------------------------------------------------------------------- Year Ended Year Ended Class B August 31, 1998 August 31, 1997 -------------------------------------------------------------------------- Sales 534,973 703,921 Issued to shareholders electing to receive payment of distribution in Fund shares 95,519 165,596 Redemptions (467,788) (485,972) -------------------------------------------------------------------------- Net increase 162,704 383,545 -------------------------------------------------------------------------- Year Ended Class C August 31, 1998 -------------------------------------------------------------------------- Sales 82,330 Issued to shareholders electing to receive payment of distribution in Fund shares 8,195 Redemptions (53,285) Issued to EV Classic Information Age Shareholders 178,631 -------------------------------------------------------------------------- Net increase 215,871 -------------------------------------------------------------------------- 5 Distribution Plan -------------------------------------------------------------------------- The Fund has adopted distribution plans (Class A Plan, Class B Plan, Class C Plan, the Plans) 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) distribution fees 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 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 $43,329, $242,002, and $19,100 for Class A, Class B, and Class C shares, respectively, to or payable to EVD for the year ended August 31, 1998, 11 Eaton Vance Information Age Fund as of August 31, 1998 NOTES TO FINANCIAL STATEMENTS CONT'D representing 0.32%, 0.75%, and 0.75% of the average daily net assets for Class A, Class B, and Class C shares, respectively. At August 31, 1998, the amount of Uncovered Distribution Charges EVD calculated under the Plans was approximately $947,000 and $161,000 for Class B and Class C shares, respectively. In addition, the Plans authorize the Fund to make payments of service fees to EVD, Authorized Firms 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 have initially implemented the Plans 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 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. 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 year ended August 31, 1998 amounted to $24,656, $58,081, and $6,367 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) is imposed on any redemption of Class B shares made within six years of purchase. A CDSC is imposed on certain Class C shares redeemed 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. 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 $117,000 and $2,000 of CDSC paid by shareholders for Class B shares and Class C shares, respectively, for the year ended August 31, 1998. 7 Investment Transactions -------------------------------------------------------------------------- Increases and decreases in the Fund's investment in the Portfolio aggregated $19,165,878 and $18,142,784, for the year ended August 31, 1998. 8 Transfer of Net Assets -------------------------------------------------------------------------- On September 1, 1997, EV Marathon Information Age Fund acquired the net assets of the EV Traditional Information Age Fund and EV Classic Information Age Fund pursuant to an Agreement and Plan of Reorganization dated June 23, 1997. In accordance with the agreement, EV Marathon Information Age Fund, at the closing, issued 1,043,726 Class A shares and 178,631 Class C shares of the Fund having an aggregate value of $12,492,459 and $2,147,859, respectively. As a result, the Fund issued one Class A share and one Class C share for each share of EV Traditional Information Age Fund and EV Classic Information Age Fund, respectively. The transaction was structured for tax purposes to qualify as a tax free reorganization under the Internal Revenue Code. The EV Traditional Information Age Fund's and EV Classic Information Age Fund's net assets at the date of the transaction were $12,492,459 and $2,147,859, respectively, including $1,702,572 and $241,938 of unrealized appreciation. Directly after the merger, the combined net assets of the Eaton Vance Information Age Fund (formerly "EV Marathon Information Age Fund") were $43,677,136 with a net asset value of $11.97, $12.31 and $12.02 for Class A, Class B, and Class C, respectively. 9 Name Change -------------------------------------------------------------------------- Effective September 1, 1997, EV Marathon Information Age Fund changed its name to Eaton Vance Information Age Fund. 12 Eaton Vance Information Age Fund as of August 31, 1998 INDEPENDENT ACCOUNTANTS' REPORT To the Trustees and Shareholders of Eaton Vance Information Age Fund: - -------------------------------------------------------------------------------- In our opinion, the accompanying statement of assets and liabilities, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Eaton Vance Information Age Fund (the "Fund") at August 31, 1998, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of three periods then ended, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. PricewaterhouseCoopers LLP Boston, Massachusetts October 2, 1998 13 Information Age Portfolio as of August 31, 1998 PORTFOLIO OF INVESTMENTS (Expressed in United States Dollars) Common Stocks -- 88.6% Security Shares Value - -------------------------------------------------------------------------------- Advertising -- 3.3% - -------------------------------------------------------------------------------- Catalina Marketing Corp./(1)/ 10,000 $ 420,625 Omnicom Group, Inc. 18,000 857,250 Young and Rubicam, Inc./(1)/ 15,000 458,438 - -------------------------------------------------------------------------------- $1,736,313 - -------------------------------------------------------------------------------- Aerospace and Defense -- 1.6% - -------------------------------------------------------------------------------- General Motors Corp., Class H 24,000 $ 867,000 - -------------------------------------------------------------------------------- $ 867,000 - -------------------------------------------------------------------------------- Broadcasting and Cable -- 10.9% - -------------------------------------------------------------------------------- Cable and Wireless Communications/(1)(2)/ 100,000 $ 881,158 Comcast Corp., Class A 18,000 672,750 Cox Communications, Inc., Class A/(1)/ 20,000 840,000 Granada Group PLC/(2)/ 70,000 930,792 Liberty Media Group, Class A/(1)/ 10,000 326,875 MediaOne Group, Inc./(1)/ 8,000 328,000 Mediaset Spa/(2)/ 140,000 794,329 Tele-Communications, Inc., Ser. A/(1)/ 5,000 165,000 TV Francaise/(2)/ 6,100 904,240 - -------------------------------------------------------------------------------- $5,843,144 - -------------------------------------------------------------------------------- Business Services - Miscellaneous -- 3.2% - -------------------------------------------------------------------------------- Galileo International, Inc. 20,000 $ 653,750 Half (Robert) International, Inc./(1)/ 6,000 288,000 Pittston Brink's Group 25,000 784,375 - -------------------------------------------------------------------------------- $1,726,125 - -------------------------------------------------------------------------------- Communications Services -- 14.7% - -------------------------------------------------------------------------------- Ameritech Corp. 8,000 $ 377,000 Bezek/(2)/ 250,000 748,889 British Telecommunications PLC/(2)/ 125,000 1,705,619 City Telecom (HK) Ltd./(2)/ 2,000,000 64,523 Energis/(1)(2)/ 75,000 1,047,581 GTE Corp. 19,000 950,000 SBC Communications, Inc. 20,000 760,000 Telecom Italia Spa/(2)/ 350,000 1,738,827 Videsh Sanchar Nigam Ltd., GDR/(1)(2)/ 50,000 487,500 - -------------------------------------------------------------------------------- $7,879,939 - -------------------------------------------------------------------------------- Computer Software -- 7.2% - -------------------------------------------------------------------------------- Computer Associates International, Inc. 15,000 $ 405,000 Documentum, Inc./(1)/ 24,000 858,000 Emultek, Ltd./(1)/ 46,700 99,238 J.D. Edwards, Inc./(1)/ 20,000 810,000 Misys PLC/(2)/ 21,000 945,464 Oracle Corp./(1)/ 20,000 398,750 Platinum Technology, Inc./(1)/ 15,000 281,250 Sendit AB/(1)(2)/ 3,600 69,201 - -------------------------------------------------------------------------------- $3,866,903 - -------------------------------------------------------------------------------- Computers and Business Equipment -- 3.8% - -------------------------------------------------------------------------------- EMC Corp./(1)/ 5,000 $ 225,938 Lexmark International Group, Inc./(1)/ 15,000 908,438 Xerox Corp. 10,000 878,125 - -------------------------------------------------------------------------------- $2,012,501 - -------------------------------------------------------------------------------- Drugs -- 1.5% - -------------------------------------------------------------------------------- Genzyme Corp., Class A/(1)/ 10,000 $ 270,000 Quintiles Transnational Corp./(1)/ 15,000 536,250 - -------------------------------------------------------------------------------- $ 806,250 - -------------------------------------------------------------------------------- Electrical Equipment -- 1.8% - -------------------------------------------------------------------------------- Matsushita Communication Industrial Co./(2)/ 28,000 $ 944,066 - -------------------------------------------------------------------------------- $ 944,066 - -------------------------------------------------------------------------------- Electronics - Instruments -- 3.3% - -------------------------------------------------------------------------------- Avimo Group Ltd./(2)/ 400,000 $ 428,652 Dae Duck Electronics, Co./(2)/ 3,300 167,964 Philips Electronics/(2)/ 15,000 981,227 Sam Young Electronics Co./(2)/ 33,400 184,500 - -------------------------------------------------------------------------------- $1,762,343 - -------------------------------------------------------------------------------- Electronics - Semiconductors -- 3.7% - -------------------------------------------------------------------------------- Alcatel Alsthom/(2)/ 5,000 $ 809,871 Analog Devices, Inc./(1)/ 50,000 703,125 Micron Technology, Inc. 20,000 455,000 - -------------------------------------------------------------------------------- $1,967,996 - -------------------------------------------------------------------------------- Entertainment -- 1.7% - -------------------------------------------------------------------------------- Sony Corp./(2)/ 5,000 $ 365,914 See notes to financial statements 14 Information Age Portfolio as of August 31, 1998 PORTFOLIO OF INVESTMENTS CONT'D (Expressed in United States Dollars) Security Shares Value - -------------------------------------------------------------------------------- Entertainment (continued) - -------------------------------------------------------------------------------- Time Warner, Inc. 7,000 $ 562,625 - -------------------------------------------------------------------------------- $ 928,539 - -------------------------------------------------------------------------------- Information Services -- 12.8% - -------------------------------------------------------------------------------- Acxiom Corp. 40,000 $ 802,500 Automatic Data Processing, Inc. 13,000 828,750 Azlan Group PLC/(1)(2)/ 800,000 643,891 Equant NV/(2)/ 25,000 1,043,080 Formula Systems (1985), Ltd. ADR/(1)/ 20,000 490,000 Forsoft Ltd./(1)/ 23,000 345,000 Gartner Group, Inc., Class A/(1)/ 32,000 740,000 HBO and Co. 10,000 212,500 Micro Focus Group PLC/(1)(2)/ 75,000 446,448 Reynolds & Reynolds, Inc., Class A 20,000 252,500 SunGard Data Systems, Inc./(1)/ 33,000 1,045,688 - -------------------------------------------------------------------------------- $ 6,850,357 - -------------------------------------------------------------------------------- Investment Services -- 3.1% - -------------------------------------------------------------------------------- E*Trade Group, Inc./(1)/ 24,000 $ 399,000 Raymond James Financial Corp. 30,000 515,625 Schwab (Charles) and Co., Inc. 25,000 746,875 - -------------------------------------------------------------------------------- $ 1,661,500 - -------------------------------------------------------------------------------- Medical Products -- 0.3% - -------------------------------------------------------------------------------- Cytyc Corp./(1)/ 20,000 $ 160,000 - -------------------------------------------------------------------------------- $ 160,000 - -------------------------------------------------------------------------------- Printing and Business Products -- 1.2% - -------------------------------------------------------------------------------- Valassis Communications, Inc./(1)/ 22,000 $ 655,875 - -------------------------------------------------------------------------------- $ 655,875 - -------------------------------------------------------------------------------- Publishing -- 12.5% - -------------------------------------------------------------------------------- Central Newspapers, Inc., Class A 5,000 $ 310,000 Dow Jones & Co., Inc. 8,000 398,500 E.W. Scripps Co. 10,000 471,875 McGraw-Hill Companies, Inc. (The) 4,000 305,000 New York Times Co. 23,000 667,000 News Corp. Ltd./(2)/ 150,394 918,727 Pearson PLC/(2)/ 105,000 1,748,315 Poligrafici Editoriale Spa/(2)/ 325,000 801,892 Springer Alex Verlag AG/(2)/ 800 491,440 Times Mirror Co., Class A 10,000 571,875 - -------------------------------------------------------------------------------- $ 6,684,624 - -------------------------------------------------------------------------------- Telephone Utilities -- 2.0% - -------------------------------------------------------------------------------- Securicor PLC/(2)/ 125,000 $ 1,085,727 - -------------------------------------------------------------------------------- $ 1,085,727 - -------------------------------------------------------------------------------- Total Common Stocks (identified cost $44,937,604) $47,439,202 - -------------------------------------------------------------------------------- Rights -- 0.0% Security Shares Value - -------------------------------------------------------------------------------- Samsung Electronics/(1)(2)/, 0.00%, 1/1/80 1,384 $ 16,159 - -------------------------------------------------------------------------------- Total Rights (identified cost $0) $ 16,159 - -------------------------------------------------------------------------------- Mortgage Pass-Throughs -- 5.5% Principal Amount Security (000's omitted) Value - -------------------------------------------------------------------------------- Federal National Mortgage Assn., 5.70%, 9/1/98 $ 2,946 $ 2,946,000 - -------------------------------------------------------------------------------- Total Mortgage Pass-Throughs (identified cost $2,946,000) $ 2,946,000 - -------------------------------------------------------------------------------- Total Investments -- 94.1% (identified cost $47,883,604) $50,401,361 - -------------------------------------------------------------------------------- Other Assets, Less Liabilities -- 5.9% $ 3,154,986 - -------------------------------------------------------------------------------- Net Assets -- 100% $53,556,347 - -------------------------------------------------------------------------------- ADR -- American Depositary Receipt GDR -- Global Depositary Receipt /(1)/Non-income producing security. /(2)/Foreign security. See notes to financial statements 15 Information Age Portfolio as of August 31, 1998 FINANCIAL STATEMENTS Statement of Assets and Liabilities
As of August 31, 1998 (Expressed in United States Dollars) Assets - ---------------------------------------------------------------------------------------- Investments, at value (identified cost, $47,883,604) $ 50,401,361 Cash 683 Foreign currency, at value (identified cost, $2,729) 2,729 Receivable for investments sold 3,680,843 Dividends and interest receivable 79,857 Deferred organization expenses 2,715 - ---------------------------------------------------------------------------------------- Total assets $ 54,168,188 - ---------------------------------------------------------------------------------------- Liabilities - ---------------------------------------------------------------------------------------- Payable for investments purchased $ 539,224 Payable for open forward foreign exchange currency contracts 21,264 Other accrued expenses 51,353 - ---------------------------------------------------------------------------------------- Total liabilities $ 611,841 - ---------------------------------------------------------------------------------------- Net Assets applicable to investors' interest in Portfolio $ 53,556,347 - ---------------------------------------------------------------------------------------- Sources of Net Assets - ---------------------------------------------------------------------------------------- Net proceeds from capital contributions and withdrawals $ 51,043,294 Net unrealized appreciation (computed on the basis of identified cost) 2,513,053 - ---------------------------------------------------------------------------------------- Total $ 53,556,347 - ---------------------------------------------------------------------------------------- Statement of Operations For the Year Ended August 31, 1998 (Expressed in United States Dollars) Investment Income - ---------------------------------------------------------------------------------------- Dividends (net of foreign taxes, $69,824) $ 665,794 Interest 167,605 - ---------------------------------------------------------------------------------------- Total investment income $ 833,399 - ---------------------------------------------------------------------------------------- Expenses - ---------------------------------------------------------------------------------------- Investment adviser fee $ 432,808 Administration fee 144,501 Trustees fees and expenses 13,176 Custodian fee 208,872 Legal and accounting services 24,794 Amortization of organization expenses 1,248 Miscellaneous 3,393 - ---------------------------------------------------------------------------------------- Total expenses $ 828,792 - ---------------------------------------------------------------------------------------- Net investment income $ 4,607 - ---------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) on Investments - ---------------------------------------------------------------------------------------- Net realized gain (loss) -- Investment transactions (identified cost basis) $ 5,969,260 Foreign currency transactions and forward foreign currency exchange contracts (99,004) - ---------------------------------------------------------------------------------------- Net realized gain $ 5,870,256 - ---------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ (4,212,723) Foreign currency and forward foreign currency exchange contracts (6,807) - ---------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) $ (4,219,530) - ---------------------------------------------------------------------------------------- Net realized and unrealized gain $ 1,650,726 - ---------------------------------------------------------------------------------------- Net increase in net assets from operations $ 1,655,333 - ----------------------------------------------------------------------------------------
See notes to financial statements 16 Information Age Portfolio as of August 31, 1998 FINANCIAL STATEMENTS CONT'D Statements of Changes in Net Assets (Expressed in United States Dollars)
Increase (Decrease) Year Ended Year Ended in Net Assets August 31, 1998 August 31, 1997 - -------------------------------------------------------------------------------- From operations -- Net investment income (loss) $ 4,607 $ (19,786) Net realized gain 5,870,256 5,605,068 Net change in unrealized appreciation (depreciation) (4,219,530) 4,259,017 - -------------------------------------------------------------------------------- Net increase in net assets from operations $ 1,655,333 $ 9,844,299 - -------------------------------------------------------------------------------- Capital transactions -- Contributions $ 23,294,915 $ 19,061,455 Withdrawals (22,767,845) (20,235,195) - -------------------------------------------------------------------------------- Net increase (decrease) in net assets from capital transactions $ 527,070 $ (1,173,740) - -------------------------------------------------------------------------------- Net increase in net assets $ 2,182,403 $ 8,670,559 - -------------------------------------------------------------------------------- Net Assets - -------------------------------------------------------------------------------- At beginning of year $ 51,373,944 $ 42,703,385 - -------------------------------------------------------------------------------- At end of year $ 53,556,347 $ 51,373,944 - --------------------------------------------------------------------------------
See notes to financial statements 17 Information Age Portfolio as of August 31, 1998 FINANCIAL STATEMENTS CONT'D Supplementary Data (Expressed in United States Dollars)
Year Ended August 31, ------------------------------------------------ 1998 1997 1996/(1)/ - ----------------------------------------------------------------------------------------------------- Ratios to average daily net assets - ----------------------------------------------------------------------------------------------------- Expenses 1.44% 1.48% 1.52%/(2)/ Net investment income (loss) 0.01% (0.04)% 0.07%/(2)/ Portfolio Turnover 157% 160% 115% - ----------------------------------------------------------------------------------------------------- Net assets, end of year (000's omitted) $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 18 Information Age Portfolio as of August 31, 1998 NOTES TO FINANCIAL STATEMENTS (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 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 19 Information Age Portfolio as of August 31, 1998 NOTES TO FINANCIAL STATEMENTS CONT'D (Expressed in United States Dollars) 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. 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. 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 year ended August 31, 1998, the adviser fee was 0.75% of average net assets for such period and amounted to $432,808. 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 year ended August 31, 1998, the administration fee was 0.25% of average net assets for such period and amounted to $144,501. 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 year ended August 31, 1998, 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 and purchased option transactions, aggregated $85,568,457 and $89,085,389, respectively. 4 Federal Income Tax Basis of Investments ------------------------------------------------------------------------------ The cost and unrealized appreciation/depreciation in value of the investments owned at August 31, 1998, are as follows: Aggregate cost $ 47,959,810 ------------------------------------------------------------------------------ Gross unrealized appreciation $ 7,053,723 Gross unrealized depreciation (4,612,172) ------------------------------------------------------------------------------ Net unrealized appreciation $ 2,441,551 ------------------------------------------------------------------------------ 20 Information Age Portfolio as of August 31, 1998 NOTES TO FINANCIAL STATEMENTS 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 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. A summary of obligations under these financial instruments at August 31, 1998 is as follows: Forward Foreign Currency Exchange Contracts Sales - -------------------------------------------------------------------------------- Net Unrealized Settlement In Exchange For Appreciation Date Deliver (in U.S. dollars) (Depreciation) - -------------------------------------------------------------------------------- 9/1/98 Australian Dollar 849,977 $ 478,622 $ (7,104) - -------------------------------------------------------------------------------- 9/3/98 Great British Pound 483,494 796,411 (14,180) - -------------------------------------------------------------------------------- 9/1/98 Hong Kong Dollar 920,943 118,817 20 - -------------------------------------------------------------------------------- $1,393,850 $(21,264) - -------------------------------------------------------------------------------- 7 Line of Credit ------------------------------------------------------------------------------ The Portfolio participates with other portfolios and funds managed by BMR and EVM and its affiliates in a $100 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 year ended August 31, 1998. 21 Information Age Portfolio as of August 31, 1998 INDEPENDENT ACCOUNTANTS' REPORT To the Trustees and Shareholders of Information Age Portfolio: - -------------------------------------------------------------------------------- We have audited the accompanying statement of assets and liabilities, including the portfolio of investments of Information Age Portfolio, as of August 31, 1998, and the related statement of operations for the year then ended, and the statements of changes in net assets and the supplementary data for each of the periods indicated therein. These financial statements and supplementary data are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and supplementary data based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and supplementary data are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at August 31, 1998 by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and supplementary data present fairly, in all material respects, the financial position of Information Age Portfolio at August 31, 1998, and the results of its operations for the year then ended, and changes in its net assets and supplementary data for each of the periods indicated therein, in conformity with United States generally accepted accounting principles. PricewaterhouseCoopers LLP Chartered Accountants Toronto, Canada October 2, 1998 22 Eaton Vance Information Age Fund as of August 31, 1998 INVESTMENT MANAGEMENT Eaton Vance Information Age Fund Officers Independent Trustees James B. Hawkes Donald R. Dwight President and Trustee President, Dwight Partners, Inc. M. Dozier Gardner Samuel L. Hayes, III Vice President Jacob H. Schiff Professor of Investment Banking, Harvard University Graduate School of William D. Burt Business Administration Vice President Norton H. Reamer Barclay Tittmann Chairman and Chief Executive Officer, Vice President United Asset Management Corporation James L. O'Connor John L. Thorndike Treasurer Formerly Director, Fiduciary Company Incorporated Alan R. Dynner Jack L. Treynor Secretary 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 Michel Normandeau Vice President Donald R. Dwight President, Dwight Partners, Inc. Raymond O'Neill Vice President Samuel L. Hayes, III Jacob H. Schiff Professor of Investment Banking, Duncan W. Richardson Harvard University Graduate School of Vice President and Business Administration Co-Portfolio Manager Norton H. Reamer Hon. Robert Lloyd George Chairman and Chief Executive Officer, Vice President, Trustee and United Asset Management Corporation Co-Portfolio Manager John L. Thorndike James L. O'Connor Formerly Director, Fiduciary Company Incorporated Treasurer Jack L. Treynor Alan R. Dynner Investment Adviser and Consultant Secretary
23 Sponsor and Manager of Eaton Vance Information Age Fund and Administrator of Information Age Portfolio Eaton Vance Management 24 Federal Street Boston, MA 02110 Co-Advisor 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 200 Clarendon Street, 16th Floor Boston, MA 02116 Transfer Agent First Data Investor Services Group, Inc. Attn: Eaton Vance Funds P.O. Box 5123 Westborough, MA 01581-5123 (800) 262-1122 Independent Auditors PricewaterhouseCoopers LLP One Post Office Square Boston, MA 02109 Eaton Vance 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 sales charges and expenses. Please read the prospectus carefully before you invest or send money. - -------------------------------------------------------------------------------- IASRC-10/98 -----END PRIVACY-ENHANCED MESSAGE-----