-----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, FkgS1YT6iNcNgmuNU8HzoXQighyjBAVsVlFS6q6OAfkTOHElZmkg4hIFGI2C8zbV f1gEQqdG1kHcSfgH4avb1w== 0001047469-03-020161.txt : 20030530 0001047469-03-020161.hdr.sgml : 20030530 20030530150700 ACCESSION NUMBER: 0001047469-03-020161 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030331 FILED AS OF DATE: 20030530 EFFECTIVENESS DATE: 20030530 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE GROWTH TRUST CENTRAL INDEX KEY: 0000102816 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: 03725690 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 a2111181zn-30d.txt N-30D [EATON VANCE LOGO] [CALCULATOR] SEMIANNUAL REPORT MARCH 31, 2003 EATON VANCE LARGE-CAP [NYSE FLAG] GROWTH FUND [FLOOR OF THE STOCK EXCHANGE] IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER DOCUMENTS The Securities and Exchange Commission (SEC) permits mutual funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called "householding" and it helps eliminate duplicate mailings to shareholders. EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL ADVISER, OTHERWISE. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial adviser. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial adviser. EATON VANCE LARGE-CAP GROWTH FUND as of March 31, 2003 INVESTMENT UPDATE [PHOTO OF MARILYN R. IRVIN, WILLIAM R. HACKNEY, III AND DANIEL W. BOONE, III] The Investment Team Managing Large-Cap Growth Portfolio: Marilyn R. Irvin William R. Hackney, III Daniel W. Boone, III (NOT PICTURED: PAUL J. MARSHALL) MANAGEMENT DISCUSSION - - Eaton Vance Large-Cap Growth Fund encountered a gradually improving market environment over the past six months. Interest rates remain low by historic standards. The US economy, as measured by changes in real Gross Domestic Product (GDP), registered positive growth for the past five quarters. Corporate profits appear to be on the mend, while the major stock market indexes seem to have "bottomed out," following three consecutive years of declines. - - Against this backdrop, the Fund's share price posted a gain slightly less than its benchmark, the S&P 500 Index, over the past six months.(1) Among the 10 economic sectors constituting the S&P 500, the more economically sensitive information technology and telecommunications sectors recorded the strongest price gains, while the less economically sensitive consumer staples and utility sectors recorded modest declines. The disparate performance of the various sectors suggests that investors were beginning to focus on improving prospects for a more robust economic recovery, following the end of the conflict with Iraq. - - The Large-Cap Growth Portfolio continued to emphasize cyclical growth companies in anticipation of a rebound in the capital spending and manufacturing sectors of the economy. Relative to the S&P 500 Index, the Portfolio maintained overweight positions in the information technology, basic materials and health care sectors.(1) Conversely, the Portfolio maintained underweight positions in the consumer staples, consumer discretionary, and finance sectors. Overall, the Portfolio's sector weightings had a favorable impact on performance during the period. - - The Portfolio's technology issues generally posted the strongest price gains, and stock selection within the universe of technology-related stocks was favorable. On the downside, several of the Portfolio's insurance, computer services, beverage, pharmaceutical, and household products stocks declined in price. As a result, stock performance was moderately unfavorable in the finance, consumer staples, and health care sectors, as well as for the Portfolio overall. - - During the period, the Portfolio 's sector weighting in the energy and telecommunications sectors was reduced due to growing concerns about weaker oil prices following the Iraq conflict and a poor regulatory environment for large telecommunications providers. THE FUND The Past Six Months - - During the six months ended March 31, 2003, the Fund's shares had a total return of 4.41%. This return was the result of an increase in net asset value (NAV)to $7.81 on March 31, 2003 from $7.48 on September 30, 2002.(2) - - For comparison, the Fund's benchmark index,the S&P 500 Composite Index, had a total return of 5.01%, during the period.(1) THE VIEWS EXPRESSED IN THIS REPORT ARE THOSE OF THE PORTFOLIO MANAGERS AND ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS, AND ATLANTA CAPITAL MANAGEMENT DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE INVESTMENT DECISIONS FOR A FUND ARE BASED ON MANY FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY FUND. 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. FUND INFORMATION as of March 31, 2003
PERFORMANCE(3) Cumulative Total Returns (at net asset value) - ------------------------------------------------------------------------ Life of Fund+ -21.90% SEC Cumulative Total Returns (including sales charge or applicable CDSC) - ------------------------------------------------------------------------ Life of Fund+ -26.39%
+ Inception Date - 4/30/02
TEN LARGEST HOLDINGS(4) By total net assets - ------------------------------------------- Microsoft Corp. 3.3% General Electric Co. 3.3 Pfizer, Inc. 3.2 Dell Computer Corp. 2.8 Linear Technology Corp. 2.8 Merck & Co., Inc. 2.8 Cisco Systems, Inc. 2.8 Intel Corp. 2.7 Medtronic, Inc. 2.7 Bank of America Corp. 2.6
(1) It is not possible to invest directly in an Index. (2) These returns do not include the 5.75% maximum sales charge for the Fund's shares. (3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. SEC returns reflect the maximum 5.75% sales charge. (4) Ten largest holdings accounted for 29.0% of the Portfolio's total 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. EATON VANCE LARGE-CAP GROWTH FUND AS OF MARCH 31, 2003 FINANCIAL STATEMENTS (UNAUDITED) STATEMENT OF ASSETS AND LIABILITIES
AS OF MARCH 31, 2003 Assets - -------------------------------------------------- Investment in Large-Cap Growth Portfolio, at value (identified cost, $385,909) $349,271 Receivable for Fund shares sold 41 Receivable from the Administrator 36,466 - -------------------------------------------------- TOTAL ASSETS $385,778 - -------------------------------------------------- Liabilities - -------------------------------------------------- Payable for Fund shares redeemed $ 48 Accrued expenses 8,029 - -------------------------------------------------- TOTAL LIABILITIES $ 8,077 - -------------------------------------------------- NET ASSETS $377,701 - -------------------------------------------------- Sources of Net Assets - -------------------------------------------------- Paid-in capital $431,458 Accumulated net realized loss from Portfolio (computed on the basis of identified cost) (16,646) Accumulated net investment loss (473) Net unrealized depreciation from Portfolio (computed on the basis of identified cost) (36,638) - -------------------------------------------------- TOTAL $377,701 - -------------------------------------------------- Net Asset Value and Redemption Price Per Share - -------------------------------------------------- ($377,701 DIVIDED BY 48,371 SHARES OF BENEFICIAL INTEREST OUTSTANDING) $ 7.81 - -------------------------------------------------- Maximum Offering Price Per Share - -------------------------------------------------- (100 DIVIDED BY 94.25 OF NET ASSET VALUE PER SHARE) $ 8.29 - --------------------------------------------------
On sales of $50,000 or more, the offering price is reduced. STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2003 Investment Income - -------------------------------------------------- Dividends allocated from Portfolio $ 3,005 Interest allocated from Portfolio 28 Expenses allocated from Portfolio (1,830) - -------------------------------------------------- NET INVESTMENT INCOME FROM PORTFOLIO $ 1,203 - -------------------------------------------------- Expenses - -------------------------------------------------- Administration fee $ 376 Service fees 626 Registration fees 23,867 Custodian fee 6,593 Legal and accounting services 3,734 Printing and postage 1,917 Transfer and dividend disbursing agent fees 564 Miscellaneous 841 - -------------------------------------------------- TOTAL EXPENSES $ 38,518 - -------------------------------------------------- Deduct -- Preliminary reduction of administration fee $ 376 Preliminary allocation of expenses to the Administrator 36,466 - -------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 36,842 - -------------------------------------------------- NET EXPENSES $ 1,676 - -------------------------------------------------- NET INVESTMENT LOSS $ (473) - -------------------------------------------------- Realized and Unrealized Gain (Loss) from Portfolio - -------------------------------------------------- Net realized gain (loss) -- Investment transactions (identified cost basis) $(15,941) - -------------------------------------------------- NET REALIZED LOSS $(15,941) - -------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $(14,865) - -------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $(14,865) - -------------------------------------------------- NET REALIZED AND UNREALIZED LOSS $(30,806) - -------------------------------------------------- NET DECREASE IN NET ASSETS FROM OPERATIONS $(31,279) - --------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 3 EATON VANCE LARGE-CAP GROWTH FUND AS OF MARCH 31, 2003 FINANCIAL STATEMENTS CONT'D STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED INCREASE (DECREASE) MARCH 31, 2003 YEAR ENDED IN NET ASSETS (UNAUDITED) SEPTEMBER 30, 2002(1) - --------------------------------------------------------------------------------- From operations -- Net investment loss $ (473) $ (41) Net realized loss (15,941) (705) Net change in unrealized appreciation (depreciation) (14,865) (21,773) - --------------------------------------------------------------------------------- NET DECREASE IN NET ASSETS FROM OPERATIONS $ (31,279) $ (22,519) - --------------------------------------------------------------------------------- Transactions in shares of beneficial interest -- Proceeds from sale of shares $ 1,064,754 $ 264,031 Cost of shares redeemed (897,286) -- - --------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS $ 167,468 $ 264,031 - --------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 136,189 $ 241,512 - --------------------------------------------------------------------------------- Net Assets - --------------------------------------------------------------------------------- At beginning of period $ 241,512 $ -- - --------------------------------------------------------------------------------- AT END OF PERIOD $ 377,701 $ 241,512 - --------------------------------------------------------------------------------- Accumulated net investment loss included in net assets - --------------------------------------------------------------------------------- AT END OF PERIOD $ (473) $ -- - ---------------------------------------------------------------------------------
(1) For the period from the start of business, April 30, 2002, to September 30, 2002. SEE NOTES TO FINANCIAL STATEMENTS 4 EATON VANCE LARGE-CAP GROWTH FUND AS OF MARCH 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2003 ------------------------ (UNAUDITED)(1) 2002(1)(2) - ------------------------------------------------------------------------------ Net asset value -- Beginning of period $ 7.480 $ 10.000 - ------------------------------------------------------------------------------ Income (loss) from operations - ------------------------------------------------------------------------------ Net investment loss $(0.008) $ (0.006) Net realized and unrealized gain (loss) 0.338(3) (2.514) - ------------------------------------------------------------------------------ TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.330 $ (2.520) - ------------------------------------------------------------------------------ NET ASSET VALUE -- END OF PERIOD $ 7.810 $ 7.480 - ------------------------------------------------------------------------------ TOTAL RETURN(4) 4.41% (25.20)% - ------------------------------------------------------------------------------ Ratios/Supplemental Data+ - ------------------------------------------------------------------------------ Net assets, end of period (000's omitted) $ 378 $ 242 Ratios (As a percentage of average daily net assets): Net expenses(5) 1.40%(6) 1.40%(6) Net investment loss (0.19)%(6) (0.17)%(6) Portfolio Turnover of the Portfolio 15% 11% - ------------------------------------------------------------------------------ + The operating expenses of the Portfolio reflect a reduction of the investment adviser fee. The operating expenses of the Fund reflect a reduction of the administration fee and an allocation of expenses to the Administrator. Had such actions not been taken, the ratios and net investment loss per share would have been as follows: Ratios (As a percentage of average daily net assets): Expenses(5) 16.19%(6) 122.77%(6) Net investment loss (14.98)%(6) (121.54)%(6) Net investment loss per share $(0.631) $ (4.290) - ------------------------------------------------------------------------------
(1) Net investment loss per share was computed using average shares outstanding. (2) For the period from the start of business, April 30, 2002 to September 30, 2002. (3) The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time. (4) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis. (5) Includes the Fund's share of its corresponding Portfolio's allocated expenses. (6) Annualized. SEE NOTES TO FINANCIAL STATEMENTS 5 EATON VANCE LARGE-CAP GROWTH FUND AS OF MARCH 31, 2003 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1 Significant Accounting Policies - ------------------------------------------- Eaton Vance Large-Cap Growth 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's shares are generally sold subject to a sales charge imposed at time of purchase. The Fund invests all of its investable assets in interests in Large-Cap Growth 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 (1.8% at March 31, 2003). 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 accounting principles generally accepted in the United States of America. 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 accounting principles generally accepted in the United States of America. 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 taxable income, including any net realized gain on investments. Accordingly, no provision for federal income or excise tax is necessary. At September 30, 2002, the Fund, for federal income tax purposes, had a capital loss carryover of $694 which will reduce the taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income or excise tax. Such capital loss carryover will expire on September 30, 2010. D Other -- Investment transactions are accounted for on a trade date basis. Dividends to shareholders are recorded on the ex-dividend date. E Use of Estimates -- The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. F Interim Financial Statements -- The interim financial statements relating to March 31, 2003 and for the six months then ended have not been audited by independent certified public accountants, but in the opinion of the Fund's management reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements. 2 Distributions to Shareholders - ------------------------------------------- It is the present policy of the Fund to make at least one distribution annually (normally in December) of all or substantially all of its net investment income, and at least one distribution annually of all or substantially all of its net realized capital gains, if any. Distributions are paid in the form of additional shares of the Fund or, at the election of the shareholder, in cash. Shareholders may reinvest capital gain distributions in additional shares of the Fund at the net asset value as of the close of business on the ex-dividend date. The Fund distinguishes between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. 6 EATON VANCE LARGE-CAP GROWTH FUND AS OF MARCH 31, 2003 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D 3 Shares of Beneficial Interest - ------------------------------------------- The Fund's Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in Fund shares were as follows:
SIX MONTHS ENDED MARCH 31, 2003 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2002(1) ------------------------------------------------------------------------------------ Sales 130,773 32,298 Redemptions (114,700) -- ------------------------------------------------------------------------------------ NET INCREASE 16,073 32,298 ------------------------------------------------------------------------------------
(1) For the period from the start of business, April 30, 2002 to September 30, 2002. 4 Transactions with Affiliates - ------------------------------------------- The administration fee is earned by Eaton Vance Management (EVM) (the Administrator) as compensation for managing and administering the business affairs of the Fund. Under the administration agreement, EVM earns a fee in the amount of 0.15% per annum of average daily net assets of the Fund. For the six months ended March 31, 2003, the administration fee amounted to $376, all of which was waived. To reduce the net investment loss of the Fund, the Administrator was allocated $36,466 of the Fund's operating expenses for the six months ended March 31, 2003. The Portfolio has engaged Boston Management and Research (BMR), a subsidiary of EVM, to render investment advisory services. See Note 2 of the Portfolio's Notes to Financial Statements which are included elsewhere in this report. Except as to Trustees of the Fund and the Portfolio who are not members of EVM's or BMR's organization, officers and Trustees receive remuneration for their services to the Fund out of the investment adviser fee earned by BMR. Effective August 1, 2002, EVM serves as the sub-transfer agent of the Fund and receives from the transfer agent an aggregate fee based upon the actual expenses incurred by EVM in the performance of those services. For the six months ended March 31, 2003, no significant amounts have been earned. The Fund was informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's principal underwriter, received $606 as its portion of the sales charge on sales of Fund shares for the six months ended March 31, 2003. Certain officers and Trustees of the Fund and of the Portfolio are officers of the above organizations. 5 Service Plan - ------------------------------------------- The Trust has in effect a Service Plan (the Plan) for the fund that is designed to meet the service fee requirements of the sales charge rule of the National Association of Securities Dealers, Inc. The Plan authorizes the Fund to make payments of service fees to EVD, investment dealers and other persons in amounts not exceeding 0.25% (annually) of the Fund's average daily net assets for each fiscal year. Service fee payments are made for personal services and/or the maintenance of shareholder accounts. Service fee payments for the six months ended March 31, 2003 amounted to $626. 6 Contingent Deferred Sales Charge - ------------------------------------------- Fund shares may be subject to a 1% contingent deferred sales charge (CDSC) if redeemed within one year of purchase (depending on the circumstances of purchase). The CDSC is based on the lower of the net asset value at the time of purchase or the time of redemption. No charge is levied on shares acquired by reinvestment of dividends or capital gains distributions. No CDSC is levied on shares which have been sold to EVM or its affiliates or to their respective employees or clients and may be waived under certain other limited conditions. EVD did not receive any CDSC paid by shareholders for the six months ended March 31, 2003. 7 Investment Transactions - ------------------------------------------- Increases and decreases in the Fund's investment in the Portfolio for the six months ended March 31, 2003 aggregated $1,064,712 and $919,761, respectively. 7 LARGE-CAP GROWTH PORTFOLIO AS OF MARCH 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) COMMON STOCKS -- 98.6%
SECURITY SHARES VALUE - --------------------------------------------------------------- Aerospace and Defense -- 2.0% - --------------------------------------------------------------- General Dynamics Corp. 7,000 $ 385,490 - --------------------------------------------------------------- $ 385,490 - --------------------------------------------------------------- Banks -- 2.6% - --------------------------------------------------------------- Bank of America Corp. 7,500 $ 501,300 - --------------------------------------------------------------- $ 501,300 - --------------------------------------------------------------- Beverages - Soft Drink -- 2.5% - --------------------------------------------------------------- Coca-Cola Company (The) 12,100 $ 489,808 - --------------------------------------------------------------- $ 489,808 - --------------------------------------------------------------- Biotechnology -- 1.8% - --------------------------------------------------------------- Amgen, Inc.(1) 6,000 $ 345,300 - --------------------------------------------------------------- $ 345,300 - --------------------------------------------------------------- Computer Hardware -- 2.8% - --------------------------------------------------------------- Dell Computer Corp.(1) 20,300 $ 554,393 - --------------------------------------------------------------- $ 554,393 - --------------------------------------------------------------- Computer Storage and Peripheral -- 1.6% - --------------------------------------------------------------- EMC Corp.(1) 42,400 $ 306,552 - --------------------------------------------------------------- $ 306,552 - --------------------------------------------------------------- Construction - Cement -- 1.1% - --------------------------------------------------------------- Vulcan Materials Co. 6,900 $ 208,587 - --------------------------------------------------------------- $ 208,587 - --------------------------------------------------------------- Diversified Financial Services -- 5.6% - --------------------------------------------------------------- Fannie Mae 3,800 $ 248,330 Franklin Resources, Inc. 15,200 500,232 SEI Investments Co. 13,400 351,080 - --------------------------------------------------------------- $ 1,099,642 - --------------------------------------------------------------- Electrical Equipment -- 1.4% - --------------------------------------------------------------- American Power Conversion Corp.(1) 18,800 $ 267,712 - --------------------------------------------------------------- $ 267,712 - --------------------------------------------------------------- SECURITY SHARES VALUE - --------------------------------------------------------------- Electronic Equipment & Instruments -- 1.5% - --------------------------------------------------------------- Molex Inc. 14,100 $ 302,868 - --------------------------------------------------------------- $ 302,868 - --------------------------------------------------------------- General Merchandise -- 5.6% - --------------------------------------------------------------- Family Dollar Stores, Inc. 13,100 $ 404,528 Target Corp. 12,400 362,824 Wal-Mart Stores, Inc. 6,500 338,195 - --------------------------------------------------------------- $ 1,105,547 - --------------------------------------------------------------- Health and Personal Care -- 1.2% - --------------------------------------------------------------- Estee Lauder Companies, Inc. (The) 8,000 $ 242,880 - --------------------------------------------------------------- $ 242,880 - --------------------------------------------------------------- Health Care - Drugs Major -- 11.9% - --------------------------------------------------------------- Johnson & Johnson Co. 7,000 $ 405,090 Lilly (Eli) & Co. 7,000 400,050 Merck & Co., Inc. 10,000 547,800 Pfizer, Inc. 19,950 621,642 Schering-Plough Corp. 20,000 356,600 - --------------------------------------------------------------- $ 2,331,182 - --------------------------------------------------------------- Health Care - Equipment -- 4.0% - --------------------------------------------------------------- DENTSPLY International, Inc. 7,300 $ 253,967 Medtronic, Inc. 11,600 523,392 - --------------------------------------------------------------- $ 777,359 - --------------------------------------------------------------- Health Care - Facility -- 1.6% - --------------------------------------------------------------- Health Management Associates, Inc., Class A 16,500 $ 313,500 - --------------------------------------------------------------- $ 313,500 - --------------------------------------------------------------- Health Care - Managed Care -- 1.8% - --------------------------------------------------------------- WellPoint Health Networks, Inc.(1) 4,500 $ 345,375 - --------------------------------------------------------------- $ 345,375 - --------------------------------------------------------------- Household Products -- 2.1% - --------------------------------------------------------------- Colgate-Palmolive Co. 7,400 $ 402,856 - --------------------------------------------------------------- $ 402,856 - ---------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 8 LARGE-CAP GROWTH PORTFOLIO AS OF MARCH 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
SECURITY SHARES VALUE - --------------------------------------------------------------- Industrial Conglomerates -- 3.2% - --------------------------------------------------------------- General Electric Co. 25,000 $ 637,500 - --------------------------------------------------------------- $ 637,500 - --------------------------------------------------------------- Industrial Gases -- 1.0% - --------------------------------------------------------------- Praxair, Inc. 3,500 $ 197,225 - --------------------------------------------------------------- $ 197,225 - --------------------------------------------------------------- Insurance - Life and Health -- 2.3% - --------------------------------------------------------------- Aflac Corp. 14,000 $ 448,701 - --------------------------------------------------------------- $ 448,701 - --------------------------------------------------------------- Insurance - Multiline -- 3.9% - --------------------------------------------------------------- American International Group, Inc. 9,250 $ 457,412 Hartford Financial Services Group, Inc. 8,600 303,494 - --------------------------------------------------------------- $ 760,906 - --------------------------------------------------------------- IT Consulting and Services -- 1.6% - --------------------------------------------------------------- Fiserv, Inc.(1) 10,000 $ 314,800 - --------------------------------------------------------------- $ 314,800 - --------------------------------------------------------------- Machinery - Industrial -- 1.7% - --------------------------------------------------------------- Dover Corp. 14,100 $ 341,502 - --------------------------------------------------------------- $ 341,502 - --------------------------------------------------------------- Metals - Industrial -- 1.5% - --------------------------------------------------------------- Nucor Corp. 7,500 $ 286,275 - --------------------------------------------------------------- $ 286,275 - --------------------------------------------------------------- Networking Equipment -- 2.8% - --------------------------------------------------------------- Cisco Systems, Inc.(1) 41,600 $ 539,968 - --------------------------------------------------------------- $ 539,968 - --------------------------------------------------------------- Oil and Gas - Exploration and Production -- 2.4% - --------------------------------------------------------------- EOG Resources, Inc. 12,000 $ 474,720 - --------------------------------------------------------------- $ 474,720 - --------------------------------------------------------------- Oil and Gas - Integrated -- 2.3% - --------------------------------------------------------------- ConocoPhillips 4,000 $ 214,400 SECURITY SHARES VALUE - --------------------------------------------------------------- Oil and Gas - Integrated (continued) - --------------------------------------------------------------- Exxon Mobil Corp. 6,800 237,660 - --------------------------------------------------------------- $ 452,060 - --------------------------------------------------------------- Publishing -- 1.8% - --------------------------------------------------------------- Tribune Co. 7,900 $ 355,579 - --------------------------------------------------------------- $ 355,579 - --------------------------------------------------------------- Restaurants -- 1.7% - --------------------------------------------------------------- Brinker International, Inc.(1) 11,000 $ 335,500 - --------------------------------------------------------------- $ 335,500 - --------------------------------------------------------------- Retail - Food and Drug -- 1.2% - --------------------------------------------------------------- Walgreen Co. 8,000 $ 235,840 - --------------------------------------------------------------- $ 235,840 - --------------------------------------------------------------- Retail - Home Improvement -- 2.0% - --------------------------------------------------------------- Home Depot, Inc. (The) 16,500 $ 401,940 - --------------------------------------------------------------- $ 401,940 - --------------------------------------------------------------- Retail - Specialty and Apparel -- 1.2% - --------------------------------------------------------------- Bed Bath and Beyond, Inc.(1) 7,000 $ 241,780 - --------------------------------------------------------------- $ 241,780 - --------------------------------------------------------------- Semiconductors -- 7.4% - --------------------------------------------------------------- Intel Corp. 32,500 $ 529,100 Linear Technology Corp. 17,900 552,573 QLogic Corp.(1) 10,000 371,400 - --------------------------------------------------------------- $ 1,453,073 - --------------------------------------------------------------- Services - Data Processing -- 0.9% - --------------------------------------------------------------- Concord EFS, Inc.(1) 18,100 $ 170,140 - --------------------------------------------------------------- $ 170,140 - --------------------------------------------------------------- Systems Software -- 5.4% - --------------------------------------------------------------- Adobe Systems, Inc. 13,200 $ 406,956 Microsoft Corp. 27,000 653,670 - --------------------------------------------------------------- $ 1,060,626 - ---------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 9 LARGE-CAP GROWTH PORTFOLIO AS OF MARCH 31, 2003 PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
SECURITY SHARES VALUE - --------------------------------------------------------------- Telephone -- 3.2% - --------------------------------------------------------------- SBC Communications, Inc. 16,000 $ 320,960 Verizon Communications, Inc. 8,500 300,475 - --------------------------------------------------------------- $ 621,435 - --------------------------------------------------------------- Total Common Stocks (identified cost $20,201,618) $ 19,309,921 - --------------------------------------------------------------- Total Investments -- 98.6% (identified cost $20,201,618) $ 19,309,921 - --------------------------------------------------------------- Other Assets, Less Liabilities -- 1.4% $ 274,441 - --------------------------------------------------------------- Net Assets -- 100.0% $ 19,584,362 - ---------------------------------------------------------------
(1) Non-income producing security. SEE NOTES TO FINANCIAL STATEMENTS 10 LARGE-CAP GROWTH PORTFOLIO AS OF MARCH 31, 2003 FINANCIAL STATEMENTS (UNAUDITED) STATEMENT OF ASSETS AND LIABILITIES
AS OF MARCH 31, 2003 Assets - ----------------------------------------------------- Investments, at value (identified cost, $20,201,618) $19,309,921 Cash 204,277 Receivable for investments sold 62,298 Interest and dividends receivable 22,280 Prepaid expenses 33 - ----------------------------------------------------- TOTAL ASSETS $19,598,809 - ----------------------------------------------------- Liabilities - ----------------------------------------------------- Accrued expenses $ 14,447 - ----------------------------------------------------- TOTAL LIABILITIES $ 14,447 - ----------------------------------------------------- NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO $19,584,362 - ----------------------------------------------------- Sources of Net Assets - ----------------------------------------------------- Net proceeds from capital contributions and withdrawals $20,476,059 Net unrealized depreciation (computed on the basis of identified cost) (891,697) - ----------------------------------------------------- TOTAL $19,584,362 - -----------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2003 Investment Income - ----------------------------------------------------- Dividends $ 125,333 Interest 927 - ----------------------------------------------------- TOTAL INVESTMENT INCOME $ 126,260 - ----------------------------------------------------- Expenses - ----------------------------------------------------- Investment adviser fee $ 62,217 Trustees' fees and expenses 93 Custodian fee 10,843 Legal and accounting services 8,695 Miscellaneous 138 - ----------------------------------------------------- TOTAL EXPENSES $ 81,986 - ----------------------------------------------------- Deduct -- Preliminary reduction of investment adviser fee $ 9,510 - ----------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 9,510 - ----------------------------------------------------- NET EXPENSES $ 72,476 - ----------------------------------------------------- NET INVESTMENT INCOME $ 53,784 - ----------------------------------------------------- Realized and Unrealized Gain (Loss) - ----------------------------------------------------- Net realized gain (loss) -- Investment transactions (identified cost basis) $(1,089,810) - ----------------------------------------------------- NET REALIZED LOSS $(1,089,810) - ----------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 1,690,131 - ----------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 1,690,131 - ----------------------------------------------------- NET REALIZED AND UNREALIZED GAIN $ 600,321 - ----------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 654,105 - -----------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 11 LARGE-CAP GROWTH PORTFOLIO AS OF MARCH 31, 2003 FINANCIAL STATEMENTS CONT'D STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED INCREASE (DECREASE) MARCH 31, 2003 YEAR ENDED IN NET ASSETS (UNAUDITED) SEPTEMBER 30, 2002(1) - --------------------------------------------------------------------------------- From operations -- Net investment income $ 53,784 $ 16,480 Net realized loss (1,089,810) (1,455,506) Net change in unrealized appreciation (depreciation) 1,690,131 (2,581,828) - --------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 654,105 $ (4,020,854) - --------------------------------------------------------------------------------- Capital transactions -- Contributions $ 5,023,851 $ 22,385,941 Withdrawals (3,250,679) (1,308,012) - --------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 1,773,172 $ 21,077,929 - --------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 2,427,277 $ 17,057,075 - --------------------------------------------------------------------------------- Net Assets - --------------------------------------------------------------------------------- At beginning of period $ 17,157,085 $ 100,010 - --------------------------------------------------------------------------------- AT END OF PERIOD $ 19,584,362 $ 17,157,085 - ---------------------------------------------------------------------------------
(1) For the period from the start of business, April 30, 2002, to September 30, 2002. SEE NOTES TO FINANCIAL STATEMENTS 12 LARGE-CAP GROWTH PORTFOLIO AS OF MARCH 31, 2003 FINANCIAL STATEMENTS CONT'D SUPPLEMENTARY DATA
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2003 ------------------------ (UNAUDITED) 2002(1) - ------------------------------------------------------------------------------ Ratios/Supplemental Data+ - ------------------------------------------------------------------------------ Ratios (As a percentage of average daily net assets): Net expenses 0.76%(2) 0.92%(2) Net investment income 0.56%(2) 0.20%(2) Portfolio Turnover 15% 11% - ------------------------------------------------------------------------------ TOTAL RETURN 4.71% (25.97)% - ------------------------------------------------------------------------------ NET ASSETS, END OF PERIOD (000'S OMITTED) $19,584 $17,157 - ------------------------------------------------------------------------------ + The operating expenses of the Portfolio reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows: Ratios (As a percentage of average daily net assets): Expenses 0.86%(2) 0.98%(2) Net investment income 0.46%(2) 0.14%(2) - ------------------------------------------------------------------------------
(1) For the period from the start of business, April 30, 2002 to September 30, 2002. (2) Annualized. SEE NOTES TO FINANCIAL STATEMENTS 13 LARGE-CAP GROWTH PORTFOLIO AS OF MARCH 31, 2003 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1 Significant Accounting Policies - ------------------------------------------- Large-Cap Growth Portfolio (the Portfolio) is registered under the Investment Company Act of 1940, as amended, 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 December 10, 2001, seeks to achieve long-term capital growth by investing in a diversified portfolio of equity securities of companies having market capitalizations that rank in the top 1,000 U.S. companies (large company stocks), emphasizing quality growth companies with a demonstrated record of consistent earnings growth. The Declaration of Trust permits the Trustees to issue interests in the Portfolio. At March 31, 2003, the Eaton Vance Large-Cap Growth Fund and the Atlanta Capital Large-Cap Growth Fund held 1.8% and 97.8% interests in the Portfolio, respectively. The following is a summary of the significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America. A Investment Valuations -- Marketable securities, including options, that are listed on foreign or U.S. securities exchanges are valued at closing sale prices on the exchange where such securities are principally traded. Marketable securities listed in the NASDAQ National Market System are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sale prices are not available are generally valued at the mean between the latest bid and asked prices. Futures positions on securities or currencies are generally valued at closing settlement prices. Short-term debt securities with a remaining maturity of 60 days or less are valued at amortized cost, which approximates value. Other fixed income and debt securities, including listed securities and securities for which price quotations are available, will normally be valued on the basis of valuations furnished by a pricing service. Investments for which valuations or market quotations are unavailable are valued at fair value using methods determined in good faith by or at the direction of the Trustees. B Income -- Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. However, if the ex-dividend date has passed, certain dividends from foreign securities are recorded as the Portfolio is informed of the ex-dividend date. Interest income is determined on the basis of interest accrued, adjusted for amortization of premium or accretion of discount. C Income 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. Since at least one of the Portfolio's investors is a regulated investment company that invests all or substantially all of its assets in the Portfolio, the Portfolio normally must satisfy the applicable source of income and diversification requirements (under the Internal Revenue Code) in order for its investors to satisfy them. The Portfolio will allocate at least annually among its investors each investor's distributive share of the Portfolio's net investment income, net realized capital gains, and any other items of income, gain, loss, deduction or credit. D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian to 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 reported as a reduction of total expenses on the Statement of Operations. E Other -- Investment transactions are accounted for on a trade date basis. Realized gains and losses are computed based on the specific identification of the securities sold. F Use of Estimates -- The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. G Interim Financial Statements -- The interim financial statements relating to March 31, 2003 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. 14 LARGE-CAP GROWTH PORTFOLIO AS OF MARCH 31, 2003 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D 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), as compensation for management and investment advisory services rendered to the Portfolio. Under the advisory agreement, BMR receives a monthly advisory fee equal to 0.650% annually of average daily net assets of the Portfolio up to $500 million, and at reduced rates as daily net assets exceed that level. For the six months ended March 31, 2003, the advisory fee amounted to $62,217. In order to enhance the net investment income of the Portfolio, BMR made a reduction of the investment adviser fee of $9,510. Pursuant to a sub-advisory agreement, BMR has delegated the investment management of the Portfolio to Atlanta Capital Management LLC (Atlanta Capital), a majority-owned subsidiary of EVM. BMR pays Atlanta Capital a monthly fee for sub-advisory services provided to the Portfolio in the amount of 0.400% annually of average daily net assets up to $500 million, and at reduced rates as daily net assets exceed that level. Except as to Trustees of the Portfolio who are not members of EVM's or BMR's organization, officers and Trustees receive remuneration for their services to the Portfolio out of such investment adviser fee. Trustees of the Portfolio that are not affiliated with the Investment Adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended March 31, 2003, no significant amounts have been deferred. Certain officers and Trustees of the Portfolio are officers of the above organizations. 3 Investment Transactions - ------------------------------------------- Purchases and sales of investments, other than short-term obligations, aggregated $4,656,336 and $2,869,064 respectively, for the six months ended March 31, 2003. 4 Federal Income Tax Basis of Unrealized Appreciation (Depreciation) - ------------------------------------------- The cost and unrealized appreciation (depreciation) in value of the investments owned at March 31, 2003, as computed on a federal income tax basis, were as follows: AGGREGATE COST $20,201,618 ----------------------------------------------------- Gross unrealized appreciation $ 2,216,755 Gross unrealized depreciation (3,108,452) ----------------------------------------------------- NET UNREALIZED DEPRECIATION $ (891,697) -----------------------------------------------------
5 Line of Credit - ------------------------------------------- The Portfolio participates with other portfolios and funds managed by BMR and EVM and its affiliates in a $150 million unsecured line of credit agreement with a group of banks. 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 participating 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 line of credit is allocated among the participating portfolios and funds at the end of each quarter. The Portfolio did not have any significant borrowings or allocated fees during the six months ended March 31, 2003. 15 EATON VANCE LARGE-CAP GROWTH FUND AS OF MARCH 31, 2003 INVESTMENT MANAGEMENT EATON VANCE LARGE-CAP GROWTH FUND Officers Thomas E. Faust Jr. President Gregory L. Coleman Vice President James A. Womack Vice President James L. O'Connor Treasurer Alan R. Dynner Secretary Trustees Jessica M. Bibliowicz President and Chief Executive Officer, National Financial Partners Donald R. Dwight President, Dwight Partners, Inc. James B. Hawkes Chairman, President and Chief Executive Officer of Eaton Vance Corp. and officer and/or director of its subsidiaries Samuel L. Hayes, III Jacob H. Schiff Professor of Investment Banking Emeritus, Harvard University Graduate School of Business Administration Norton H. Reamer President, Unicorn Corporation Chairman, Hellman, Jordan Management Co., Inc. Advisory Director of Berkshire Capital Corporation Lynn A. Stout Professor of Law, UCLA School of Law Jack L. Treynor Investment Adviser and Consultant LARGE-CAP GROWTH PORTFOLIO Officers James B. Hawkes President and Trustee Daniel W. Boone, III Vice President Thomas E. Faust Jr. Vice President William R. Hackney, III Vice President Paul J. Marshall Vice President Marilyn Robinson Irvin Vice President Kristin S. Anagnost Treasurer Alan R. Dynner Secretary Trustees Jessica M. Bibliowicz President and Chief Executive Officer, National Financial Partners Donald R. Dwight President, Dwight Partners, Inc. Samuel L. Hayes, III Jacob H. Schiff Professor of Banking Emeritus, Harvard University Graduate School of Business Administration Norton H. Reamer President, Unicorn Corporation Chairman, Hellman, Jordan Management Co., Inc. Advisory Director of Berkshire Capital Corporation Lynn A. Stout Professor of Law, UCLA School of Law Jack L. Treynor Investment Adviser and Consultant 16 INVESTMENT ADVISER OF LARGE-CAP GROWTH PORTFOLIO BOSTON MANAGEMENT AND RESEARCH The Eaton Vance Building 255 State Street Boston, MA 02109 SUB-ADVISER OF ATLANTA CAPITAL LARGE-CAP GROWTH PORTFOLIO ATLANTA CAPITAL MANAGEMENT LLC 1349 West Peachtree Street Suite 1600 Atlanta, GA 30309 ADMINISTRATOR OF EATON VANCE LARGE-CAP GROWTH FUND EATON VANCE MANAGEMENT The Eaton Vance Building 255 State Street Boston, MA 02109 PRINCIPAL UNDERWRITER EATON VANCE DISTRIBUTORS, INC. The Eaton Vance Building 255 State Street Boston, MA 02109 (617) 482-8260 CUSTODIAN INVESTORS BANK & TRUST COMPANY 200 Clarendon Street Boston, MA 02116 TRANSFER AGENT PFPC INC. Attn: Eaton Vance Funds P.o. Box 9653 Providence, RI 02940-9653 (800) 262-1122 EATON VANCE FUNDS EATON VANCE MANAGEMENT BOSTON MANAGEMENT AND RESEARCH EATON VANCE DISTRIBUTORS, INC. PRIVACY NOTICE The Eaton Vance organization is committed to ensuring your financial privacy. This notice is being sent to comply with privacy regulations of the Securities and Exchange Commission. Each of the above financial institutions has in effect the following policy with respect to nonpublic personal information about its customers: - - Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. - - None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). - - Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. For more information about Eaton Vance's privacy policies, call: 1-800-262-1122 EATON VANCE LARGE-CAP GROWTH FUND THE EATON VANCE BUILDING 255 STATE STREET BOSTON, MA 02109 This report must be preceded or accompanied by a current prospectus which contains more complete information on the Fund, including its sales charges and expenses. Please read the prospectus carefully before you invest or send money. 1444-5/03 LCGSRC -----END PRIVACY-ENHANCED MESSAGE-----