-----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, AcLWZMuzwp5oNe0LHA7mvRrQaL7NZfp0dEf0iW8HckqIHZDYuSC/isS8ytYjIc1P cFgkFURTwy5va8QVDRYtzA== 0001047469-03-035842.txt : 20031103 0001047469-03-035842.hdr.sgml : 20031103 20031103171507 ACCESSION NUMBER: 0001047469-03-035842 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030831 FILED AS OF DATE: 20031103 EFFECTIVENESS DATE: 20031103 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-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-01241 FILM NUMBER: 03973681 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-CSR 1 a2120080zn-csr.txt N-CSR FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-01241 --------- Eaton Vance Growth Trust ------------------------ (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) August 31 st ------------ Date of Fiscal Year End August 31, 2003 --------------- Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS [EATON VANCE (R) MANAGED INVESTMENTS LOGO] ANNUAL REPORT AUGUST 31, 2003 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND "GRAPHIC IMAGE" [PHOTO] 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. 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. From time to time, mutual funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios vote proxies according to a set of policies and procedures approved by the Funds' and Portfolios' Boards. You may obtain a description of these policies and procedures without charge, upon request, by calling 1-800-262-1122. This description is also available on the Securities and Exchange Commission's website at http://www.sec.gov. EATON VANCE WORLDWIDE HEALTH SCIENCES FUND as of August 31, 2003 LETTER TO SHAREHOLDERS [PHOTO OF THOMAS E. FAUST JR.] THOMAS E. FAUST JR. PRESIDENT Eaton Vance Worldwide Health Sciences Fund outperformed its benchmarks and its peer group for the year ended August 31, 2003. Class A shares had a total return of 22.51% during that period. That return was the result of an increase in net asset value (NAV) per share from $7.64 on August 31, 2002, to $9.36 on August 31, 2003.(1) Class B shares had a total return of 21.55% for the same period, the result of an increase in NAV per share from $8.26 to $10.04.(1) Class C shares had a total return of 21.52% for the same period, the result of an increase in NAV per share from $6.83 to $8.30.(1) Class D shares had a total return of 21.35% for the same period, the result of an increase in NAV per share from $7.26 to $8.81.(1) By comparison, the S&P 500 Composite Index had a return of 12.06% during the year ended August 31, 2003, while the Morgan Stanley Capital International Europe, Australasia and Far East Index had a return of 9.11% for the same period.(2) For the same one-year period, the average return of funds in the Lipper Health/Biotechnology Classification was 19.34%.(2) AFTER A FALSE START, A CAUTIOUS BUT SUSTAINED RECOVERY IN THE STOCK MARKETS ... The Fund has rebounded convincingly since health and biotechnology stocks bottomed late in the last fiscal year. Last fall, there appeared to be stirrings of economic improvement, both in the U.S. and abroad, and stocks rebounded strongly. However, the lead-up to the Iraq War created great anxiety, more accounting scandals surfaced, the SARS epidemic curtailed activity in Asia, and many businesses refrained from making investment commitments. Thus, the markets declined again amid all the uncertainty. However, since the onset of the war in Iraq, we believe the market has found its legs again and there have been hints of economic improvement over the summer. Accordingly, both the U.S. and international markets have rebounded significantly. AMID UNCERTAINTY, OPPORTUNITIES FOR GROWTH ... While the past year brought with it many challenges, we are pleased that the Fund once again delivered positive returns for Shareholders after a down year. We remain excited about the advancements in worldwide health sciences, and about the global investment opportunities those advancements can continue to represent. Please turn to the interview with portfolio manager Samuel D. Isaly for his take on the health and biotechnology sector and the Fund's performance over the past year. Sincerely, /s/ Thomas E. Faust Jr. Thomas E. Faust Jr. President October 3, 2003 FUND INFORMATION as of August 31, 2003
PERFORMANCE(1) CLASS A CLASS B CLASS C CLASS D - ------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) One Year 22.51% 21.55% 21.52% 21.35% Five Years 22.53 21.63 21.60 N.A. Ten Years 17.64 N.A. N.A. N.A. Life of Fund+ 16.61 14.75 15.43 -2.94 SEC AVERAGE ANNUAL TOTAL RETURNS (INCLUDING SALES CHARGE OR APPLICABLE CDSC) One Year 15.41% 16.55% 20.52% 16.35% Five Years 21.07 21.44 21.60 N.A. Ten Years 16.94 N.A. N.A. N.A. Life of Fund+ 16.23 14.75 15.43 -4.43
+ Inception Dates - Class A: 7/26/85; Class B: 9/23/96; Class C: 1/05/98; Class D: 3/02/01 TEN LARGEST HOLDINGS(3) Genentech, Inc. 7.5% Amgen,Inc. 7.3 Genzyme Corp. 6.5 Wyeth Corp. 5.4 Gilead Sciences, Inc. 5.2 Pfizer, Inc. 4.6 Novartis AG 4.4 Serono SA 4.2 Schering-Plough Corp. 4.0 IDEC Pharmaceuticals Corp. 3.9
(1) 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 and Class D 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. Class A shares redeemed within 3 months of purchase (including exchanges) are subject to a 1% redemption fee. (2) It is not possible to invest directly in an Index or a Lipper Classification. (3) Ten largest holdings accounted for 53.0% 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. 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 WORLDWIDE HEALTH SCIENCES FUND as of August 31, 2003 MANAGEMENT DISCUSSION AN INTERVIEW WITH SAMUEL D. ISALY, PRESIDENT, ORBIMED ADVISORS LLC, INVESTMENT ADVISER TO WORLDWIDE HEALTH SCIENCES PORTFOLIO [PHOTO OF SAMUEL D. ISALY] SAMUEL D. ISALY PORTFOLIO MANAGER Q: SAM, WOULD YOU GIVE SHAREHOLDERS AN OVERVIEW OF THE FUND'S PERFORMANCE THIS YEAR? A: Worldwide Health Sciences Fund benefited from a reversal in several of the negative factors that had caused last year to be a down year: earnings improved; the FDA was active rather than moribund; and there was evidence of scientific progress after a bit of a lull during the prior period. Q: WAS THE EARNINGS IMPROVEMENT SEEN IN BOTH PHARMACEUTICAL COMPANIES, WHICH HAD BEEN SLUMPING, AND IN BIOTECH? A: Yes. In calendar year 2002, large pharmaceutical companies had an earnings-per-share (EPS) growth rate in the very low single digits and established biotechnology companies had an EPS increase of about 10%. For calendar year 2003, we expect those growth rates to rise. While we can't say for sure what will happen by the end of 2003, there has been an earnings acceleration so far in 2003, which has contributed to better stock prices and better returns for the Fund. Q: WHAT ABOUT THE FDA? YOU MENTIONED THAT THE AGENCY HAD BEEN MORE ACTIVE - HOW SO? A: As we had anticipated, the appointment of an FDA commissioner, Mark B. McClellan, M.D., Ph.D., has made a major difference in the health/biotech sector. We characterize McClellan as "innovation-friendly," and he's working very hard to speed up the decision-making process for new drug candidates. We believe that the new commissioner is attentive to making timely regulatory decisions, both positive and negative, and thus is expediting the review process. According to the FDA, the average review time for an innovative new drug is now only 6 months, with some drugs and products being approved even faster. SECTOR DISTRIBUTION+ As a percentage of total net assets Specialty Capitalization/Biotechnology 24% Other 3% Major Capitalization/Pharmaceuticals 72%
REGIONAL DISTRIBUTION+ As a percentage of total net assets North America 68.30% Europe 18.23% Far East 9.76% Other 3.71%
+ As of August 31, 2003. Sector and Regional Distributions are subject to change due to active management. 3 Indeed, overall, the political climate was more favorable to the sector in the year ended August 31, 2003. We have a Republican administration (generally considered to be better for business) that we believe will have an impact on the coverage of prescription drugs under Medicare. It's not certain at this writing, in these remaining weeks of the Congress, that a Medicare reform bill will be passed in calendar year 2003. But we believe the version of the bill most likely to survive until the next session is one that fragments the decision-making process regarding pharmaceuticals among private benefit providers, which in our opinion will reduce the power of any one single decision-maker to control prices and utilization. We believe this is a positive development for the industry. Q: SAM, YOU INDICATED THAT THERE HAD BEEN NOTABLE SCIENTIFIC PROGRESS OVER THE PAST YEAR. CAN YOU GIVE US AN EXAMPLE? A: Sure. Evidence of technological advance has accelerated. That was most dramatic in the case of Genentech, which is developing a drug for the treatment of colon cancer. The drug, Avastin, showed great promise in its reported trial results. Genentech had been a large holding for the Portfolio and the stock price has reacted positively since the announcement of the drug's successful late-stage trials. Genentech was a successful investment for us, and Avastin has been a model for the promise of dramatic scientific advance. There were a number of compelling stories in the cancer drug area, as well as in other areas, along with an increase in the number of FDA approvals in the past year. These types of advances really added to performance. Q: WERE THERE ANY SIGNIFICANT SHIFTS IN HOW YOU POSITIONED THE PORTFOLIO? A: Geographically, we increased our weighing in U.S. stocks from 59% to 68% since August 31, 2002; European holdings went from 20% to 18%; and Far East stocks held by the Portfolio were pared down from about 16% to 10%. We also sold a few Far East stocks that did not contribute good relative performance. Around August of last year, we had repositioned the Portfolio to favor larger, profitable biotech companies. That turned out to be an appropriate and successful move, and we continued to build on that and invest in companies that are somewhat new and not yet profitable. These are companies that we think can be important, valuable holdings for the Portfolio going forward. We like to call such companies "discovery companies" - they are pushing the boundaries of what we think of as "biotechnology," discovering new products, and offering promising opportunities for long-term growth as they move to profitability. Q: DO YOU ANTICIPATE MAINTAINING THIS FOCUS WITHIN THE PORTFOLIO? A: Yes, we do anticipate maintaining this focus. When we look forward, we believe that discovery companies will stimulate investor interest in the sector as they move toward profitability. We continue to believe that innovations in science will contribute to a large number of new products later in the decade that will present us with exciting investment opportunities. THE VIEWS EXPRESSED IN THIS REPORT ARE THOSE OF THE PORTFOLIO MANAGER 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 EATON VANCE 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. 4 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND as of August 31, 2003 FUND PERFORMANCE [CHART] COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE WORLDWIDE HEALTH SCIENCES FUND, CLASS A vs. THE STANDARD & POOR'S 500 AND THE MSCI EUROPE, AUSTRALASIA AND FAR EAST INDEX* August 31, 1993 - August 31, 2003
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND CLASS A AT S&P EAFE DATE NAV 500 INDEX - ----------------------------------------------------- 8/31/1993 10000 10000 10000 9/30/1993 10160.9 9923.31 9774.91 10/31/1993 10524.1 10128.44 10076.13 11/30/1993 10492.9 10031.91 9195.38 12/31/1993 10941.8 10153.19 9859.36 1/31/1994 11373.9 10498.05 10692.94 2/28/1994 10885.7 10213.36 10663.34 3/31/1994 10229.2 9768.94 10204.03 4/30/1994 10128.2 9894.09 10636.99 5/31/1994 10044 10055.83 10575.92 6/30/1994 9600.76 9809.76 10725.34 7/31/1994 9628.81 10131.64 10828.51 8/31/1994 10268.5 10546.08 11084.88 9/30/1994 10420 10288.4 10735.75 10/31/1994 10274.1 10519.21 11093.25 11/30/1994 10385 10136.64 10560.11 12/31/1994 10239.6 10286.71 10626.23 1/31/1995 10730.3 10553.29 10218.02 2/28/1995 10978.7 10964.16 10188.7 3/31/1995 11081.7 11287.17 10824.18 4/30/1995 11299.9 11619.28 11231.26 5/31/1995 11784.6 12082.76 11097.38 6/30/1995 12487.4 12363.15 10902.76 7/31/1995 13505.3 12772.95 11581.53 8/31/1995 14183.9 12804.83 11139.73 9/30/1995 14377.8 13344.92 11357.3 10/31/1995 14129.4 13297.24 11052.01 11/30/1995 14729.5 13880.3 11359.52 12/31/1995 16507.2 14147.67 11817.2 1/31/1996 17337.7 14628.63 11865.71 2/29/1996 17365.1 14764.72 11905.82 3/31/1996 17516.1 14906.88 12158.65 4/30/1996 18319.2 15126.45 12512.15 5/31/1996 19156.6 15515.89 12281.9 6/30/1996 19060.5 15575.04 12351.03 7/31/1996 17536.7 14887.32 11990.04 8/31/1996 18586.9 15201.82 12016.31 9/30/1996 19125.9 16056.65 12335.53 10/31/1996 18651.7 16499.19 12209.3 11/30/1996 18694.8 17745.24 12695.09 12/31/1996 19542.6 17393.72 12531.78 1/31/1997 20390.4 18479.81 12093.2 2/28/1997 20821.5 18624.89 12291 3/31/1997 20146.1 17861.05 12335.5 4/30/1997 19355.8 18926.39 12400.96 5/31/1997 21468.1 20077.83 13207.94 6/30/1997 21856.1 20976.83 13936.32 7/31/1997 22732.6 22645 14161.78 8/31/1997 21871.7 21377.34 13104.12 9/30/1997 24303.6 22547.44 13838.19 10/31/1997 22867.9 21795.26 12774.52 11/30/1997 22076.8 22803.38 12644.3 12/31/1997 21593.4 23194.72 12754.58 1/31/1998 22311.2 23451.02 13337.9 2/28/1998 23058.4 25141.43 14193.73 3/31/1998 23043.7 26427.85 14630.78 4/30/1998 22794.7 26693.6 14746.59 5/31/1998 21915.7 26235.41 14675.01 6/30/1998 21608.1 27300.3 14786.11 7/31/1998 21403 27010.34 14936.02 8/31/1998 18385.2 23109.22 13085.6 9/30/1998 20963.5 24589.68 12684.42 10/31/1998 23131.6 26588.05 14006.65 11/30/1998 24347.5 28198.84 14724.24 12/31/1998 26656.8 29822.72 15305.1 1/31/1999 26961.6 31069.35 15259.91 2/28/1999 25620.4 30103.89 14896.23 3/31/1999 25147.9 31308 15518.02 4/30/1999 24538.2 32520.39 16146.81 5/31/1999 24294.4 31753.55 15315.25 6/30/1999 25300.3 33514.38 15912.35 7/31/1999 27068.3 32468.91 16385.32 8/31/1999 28180.9 32308.17 16445.16 9/30/1999 27799.8 31423.56 16610.69 10/31/1999 28985.1 33411.22 17232.85 11/30/1999 29895 34090.36 17831.6 12/31/1999 33032.7 36096.96 19432.02 1/31/2000 35968.2 34283.58 18197.33 2/29/2000 46473.3 33635.28 18687.2 3/31/2000 45121 36923.66 19411.59 4/30/2000 44296.4 35813.17 18390.09 5/31/2000 43917.1 35078.01 17940.94 6/30/2000 54125.4 35942.93 18642.58 7/31/2000 54207.9 35381.5 17860.99 8/31/2000 61018.9 37577.96 18016.02 9/30/2000 61563.1 35594.6 17138.79 10/31/2000 58753.9 35443.62 16733.94 11/30/2000 57503.4 32651.3 16106.41 12/31/2000 60005.3 32811.49 16678.89 1/31/2001 57270.7 33974.91 16670.29 2/28/2001 54175 30879.01 15420.56 3/31/2001 48447.9 28923.9 14392.61 4/30/2001 52472.4 31169.8 15392.78 5/31/2001 56238.8 31378.91 14849.51 6/30/2001 54948.9 30615.46 14242.23 7/31/2001 52575.5 30313.96 13983.1 8/31/2001 53039.9 28418.16 13628.74 9/30/2001 50497.1 26123.51 12248.33 10/31/2001 53154.9 26621.94 12562.04 11/30/2001 55704.1 28663.51 13025.11 12/31/2001 56029.6 28914.76 13102.49 1/31/2002 52124.3 28493.04 12406.3 2/28/2002 51256.5 27943.43 12493.32 3/31/2002 51907.3 28994.48 13169.11 4/30/2002 48327.5 27237.38 13256.38 5/31/2002 47188.5 27037.43 13424.35 6/30/2002 43771.4 25112.22 12889.99 7/31/2002 42144.2 23155.19 11617.48 8/31/2002 41439.1 23306.78 11591.11 9/30/2002 38455.9 20776.08 10346.3 10/31/2002 41601.8 22602.97 10902.37 11/30/2002 42957.8 23932.06 11397.18 12/31/2002 41493.3 22526.82 11013.95 1/31/2003 41330.6 21937.83 10554.15 2/28/2003 39594.9 21608.19 10311.93 3/31/2003 41547.6 21817.4 10109.32 4/30/2003 44096.8 23613.66 11100.16 5/31/2003 49575 24856.61 11772.74 6/30/2003 49412.3 25174.16 12057.24 7/31/2003 52232.8 25618.22 12349.11 8/31/2003 50768.3 26116.84 12647.33
$47,839** ** Fund, including maximum sales charge
PERFORMANCE** CLASS A CLASS B CLASS C CLASS D - ------------------------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE) One Year 22.51% 21.55% 21.52% 21.35% Five Years 22.53 21.63 21.60 N.A. Ten Years 17.64 N.A. N.A. N.A. Life of Fund+ 16.61 14.75 15.43 -2.94 SEC AVERAGE ANNUAL TOTAL RETURNS (INCLUDING SALES CHARGE OR APPLICABLE CDSC) One Year 15.41% 16.55% 20.52% 16.35% Five Years 21.07 21.44 21.60 N.A. Ten Years 16.94 N.A. N.A. N.A. Life of Fund+ 16.23 14.75 15.43 -4.43
+ Inception Dates - Class A: 7/26/85; Class B: 9/23/96; Class C: 1/05/98; Class D: 3/02/01 * Source: Thomson Financial. Investment operations commenced 7/26/85. The performance chart above compares the Fund's total return with that of 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 widely recognized index of 500 common stocks traded in the U.S. - and the Morgan Stanley Capital International Europe, Australasia, and Far East Index (EAFE) - an index of common stocks traded in foreign markets. An investment in the Fund's Class B shares on 9/23/96 at net asset value would have been worth $25,980 on August 31, 2003. An investment in the Fund's Class C shares on 1/5/98 at net asset value would have been worth $22,495 on August 31, 2003. An investment in the Fund's Class D shares on 3/2/01 at net asset value would have been worth $9,281 on August 31, 2003; $8,929 including applicable CDSC. Past performance does not predict future performance. The graph and performance table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 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 an Index. ** 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 and Class D 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. Class A shares redeemed within 3 months of purchase (including exchanges) are subject to a 1% redemption fee. 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. 5 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2003 Assets - -------------------------------------------------------- Investment in Worldwide Health Sciences Portfolio, at value (identified cost, $1,944,266,125) $2,108,247,106 Receivable for Fund shares sold 6,770,076 Tax reclaims receivable 709,997 - -------------------------------------------------------- TOTAL ASSETS $2,115,727,179 - -------------------------------------------------------- Liabilities - -------------------------------------------------------- Payable for Fund shares redeemed $ 4,342,701 Payable to affiliate for distribution and service fees 361,646 Accrued expenses 728,244 - -------------------------------------------------------- TOTAL LIABILITIES $ 5,432,591 - -------------------------------------------------------- NET ASSETS $2,110,294,588 - -------------------------------------------------------- Sources of Net Assets - -------------------------------------------------------- Paid-in capital $2,105,904,418 Accumulated net realized loss from Portfolio (computed on the basis of identified cost) (158,598,479) Accumulated net investment loss (1,091,918) Net unrealized appreciation 99,586 Net unrealized appreciation from Portfolio (computed on the basis of identified cost) 163,980,981 - -------------------------------------------------------- TOTAL $2,110,294,588 - -------------------------------------------------------- Class A Shares - -------------------------------------------------------- NET ASSETS $ 985,768,649 SHARES OUTSTANDING 105,335,692 NET ASSET VALUE AND REDEMPTION PRICE PER SHARE (net assets DIVIDED BY shares of beneficial interest outstanding) $ 9.36 MAXIMUM OFFERING PRICE PER SHARE (100 DIVIDED BY 94.25 of $9.36) $ 9.93 - -------------------------------------------------------- Class B Shares - -------------------------------------------------------- NET ASSETS $ 712,385,236 SHARES OUTSTANDING 70,967,101 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE (NOTE 6) (net assets DIVIDED BY shares of beneficial interest outstanding) $ 10.04 - -------------------------------------------------------- Class C Shares - -------------------------------------------------------- NET ASSETS $ 396,329,594 SHARES OUTSTANDING 47,725,813 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE (NOTE 6) (net assets DIVIDED BY shares of beneficial interest outstanding) $ 8.30 - -------------------------------------------------------- Class D Shares - -------------------------------------------------------- NET ASSETS $ 15,811,109 SHARES OUTSTANDING 1,793,806 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE (NOTE 6) (net assets DIVIDED BY shares of beneficial interest outstanding) $ 8.81 - --------------------------------------------------------
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, 2003 Investment Income - ------------------------------------------------------ Dividends allocated from Portfolio (net of foreign taxes, $1,196,519) $ 13,110,316 Interest allocated from Portfolio 799,179 Expenses allocated from Portfolio (20,174,642) - ------------------------------------------------------ NET INVESTMENT LOSS FROM PORTFOLIO $ (6,265,147) - ------------------------------------------------------ Expenses - ------------------------------------------------------ Management fee $ 4,012,935 Trustees' fees and expenses 3,579 Distribution and service fees Class A 2,021,437 Class B 6,103,363 Class C 3,264,637 Class D 123,965 Transfer and dividend disbursing agent fees 5,109,474 Printing and postage 671,326 Registration fees 115,123 Legal and accounting services 44,992 Miscellaneous 170,559 - ------------------------------------------------------ TOTAL EXPENSES $ 21,641,390 - ------------------------------------------------------ NET INVESTMENT LOSS $(27,906,537) - ------------------------------------------------------ Realized and Unrealized Gain (Loss) from Portfolio - ------------------------------------------------------ Net realized gain (loss) -- Investment transactions (identified cost basis) $(91,001,340) Foreign currency transactions (1,189,105) - ------------------------------------------------------ NET REALIZED LOSS $(92,190,445) - ------------------------------------------------------ Change in unrealized appreciation (depreciation) -- Investments from Portfolio (identified cost basis) $473,193,601 Foreign currency (3,404) Foreign currency from Portfolio (41,646) - ------------------------------------------------------ NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $473,148,551 - ------------------------------------------------------ NET REALIZED AND UNREALIZED GAIN $380,958,106 - ------------------------------------------------------ NET INCREASE IN NET ASSETS FROM OPERATIONS $353,051,569 - ------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 6 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 FINANCIAL STATEMENTS CONT'D STATEMENTS OF CHANGES IN NET ASSETS
INCREASE (DECREASE) YEAR ENDED YEAR ENDED IN NET ASSETS AUGUST 31, 2003 AUGUST 31, 2002 - -------------------------------------------------------------------------- From operations -- Net investment loss $ (27,906,537) $ (24,558,576) Net realized loss (92,190,445) (97,119,140) Net change in unrealized appreciation (depreciation) 473,148,551 (385,568,965) - -------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 353,051,569 $ (507,246,681) - -------------------------------------------------------------------------- Distributions to shareholders -- From net realized gain Class A $ -- $ (34,749,701) Class B -- (25,206,326) Class C -- (12,959,977) Class D -- (181,155) - -------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ -- $ (73,097,159) - -------------------------------------------------------------------------- Transactions in shares of beneficial interest -- Proceeds from sale of shares Class A $ 273,635,116 $ 560,623,027 Class B 95,975,947 274,574,887 Class C 90,493,237 212,228,577 Class D 4,375,026 12,467,525 Net asset value of shares issued to shareholders in payment of distributions declared Class A -- 32,353,445 Class B -- 23,411,034 Class C -- 12,224,978 Class D -- 172,963 Cost of shares redeemed Class A (225,674,191) (335,312,560) Class B (98,015,108) (121,726,962) Class C (69,481,924) (75,863,961) Class D (1,961,723) (2,522,156) - -------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS $ 69,346,380 $ 592,630,797 - -------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 422,397,949 $ 12,286,957 - -------------------------------------------------------------------------- Net Assets - -------------------------------------------------------------------------- At beginning of year $ 1,687,896,639 $ 1,675,609,682 - -------------------------------------------------------------------------- AT END OF YEAR $ 2,110,294,588 $ 1,687,896,639 - -------------------------------------------------------------------------- Accumulated net investment loss included in net assets - -------------------------------------------------------------------------- AT END OF YEAR $ (1,091,918) $ -- - --------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 7 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS
CLASS A ----------------------------------------------------------------------- YEAR ENDED AUGUST 31, ----------------------------------------------------------------------- 2003(1) 2002(1) 2001(1) 2000(1) 1999(1) - --------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year $ 7.640 $ 10.280 $ 12.330 $ 6.160 $ 4.180 - --------------------------------------------------------------------------------------------------------- Income (loss) from operations - --------------------------------------------------------------------------------------------------------- Net investment loss $ (0.096) $ (0.082) $ (0.094) $ (0.114) $(0.061) Net realized and unrealized gain (loss) 1.816 (2.108) (1.447) 6.758 2.265 - --------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.720 $ (2.190) $ (1.541) $ 6.644 $ 2.204 - --------------------------------------------------------------------------------------------------------- Less distributions - --------------------------------------------------------------------------------------------------------- From net realized gain $ -- $ (0.450) $ (0.509) $ (0.474) $(0.224) - --------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ -- $ (0.450) $ (0.509) $ (0.474) $(0.224) - --------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR $ 9.360 $ 7.640 $ 10.280 $ 12.330 $ 6.160 - --------------------------------------------------------------------------------------------------------- TOTAL RETURN(2) 22.51% (21.87)% (13.08)% 116.52% 53.28% - --------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data - --------------------------------------------------------------------------------------------------------- Net assets, end of year (000's omitted) $985,769 $772,283 $783,176 $418,904 $89,214 Ratios (As a percentage of average daily net assets): Operating expenses(3) 1.99% 1.69% 1.71% 1.79% 1.69% Interest expense(3) -- -- -- -- 0.01% Net expenses after custodian fee reduction(3) 1.97% 1.67% 1.69% 1.74% 1.63% Net investment loss (1.18)% (0.90)% (0.89)% (1.29)% (1.11)% Portfolio Turnover of the Portfolio 27% 38% 24% 31% 41% - ---------------------------------------------------------------------------------------------------------
(1) Net investment loss per share was computed using average shares outstanding. (2) 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. (3) Includes the Fund's share of the Portfolio's allocated expenses. SEE NOTES TO FINANCIAL STATEMENTS 8 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS
CLASS B ----------------------------------------------------------------------- YEAR ENDED AUGUST 31, ----------------------------------------------------------------------- 2003(1) 2002(1) 2001(1) 2000(1) 1999(1) - --------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year $ 8.260 $ 11.150 $ 13.670 $ 7.060 $ 4.880 - --------------------------------------------------------------------------------------------------------- Income (loss) from operations - --------------------------------------------------------------------------------------------------------- Net investment loss $ (0.169) $ (0.164) $ (0.190) $ (0.198) $ (0.107) Net realized and unrealized gain (loss) 1.949 (2.276) (1.589) 7.520 2.623 - --------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.780 $ (2.440) $ (1.779) $ 7.322 $ 2.516 - --------------------------------------------------------------------------------------------------------- Less distributions - --------------------------------------------------------------------------------------------------------- From net realized gain $ -- $ (0.450) $ (0.741) $ (0.712) $ (0.336) - --------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ -- $ (0.450) $ (0.741) $ (0.712) $ (0.336) - --------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR $ 10.040 $ 8.260 $ 11.150 $ 13.670 $ 7.060 - --------------------------------------------------------------------------------------------------------- TOTAL RETURN(2) 21.55% (22.43)% (13.75)% 114.93% 52.29% - --------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data - --------------------------------------------------------------------------------------------------------- Net assets, end of year (000's omitted) $712,385 $593,993 $621,963 $411,280 $107,923 Ratios (As a percentage of average daily net assets): Operating expenses(3) 2.74% 2.44% 2.45% 2.54% 2.29% Interest expense(3) -- -- -- -- 0.01% Net expenses after custodian fee reduction(3) 2.72% 2.42% 2.43% 2.49% 2.23% Net investment loss (1.93)% (1.66)% (1.64)% (2.03)% (1.70)% Portfolio Turnover of the Portfolio 27% 38% 24% 31% 41% - ---------------------------------------------------------------------------------------------------------
(1) Net investment loss per share was computed using average shares outstanding. (2) 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. (3) Includes the Fund's share of the Portfolio's allocated expenses. SEE NOTES TO FINANCIAL STATEMENTS 9 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS
CLASS C ----------------------------------------------------------------------- YEAR ENDED AUGUST 31, ----------------------------------------------------------------------- 2003(1) 2002(1) 2001(1) 2000(1) 1999(1) - --------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year $ 6.830 $ 9.310 $ 11.530 $ 6.070 $ 4.230 - --------------------------------------------------------------------------------------------------------- Income (loss) from operations - --------------------------------------------------------------------------------------------------------- Net investment loss $ (0.140) $ (0.134) $ (0.158) $ (0.182) $(0.100) Net realized and unrealized gain (loss) 1.610 (1.896) (1.321) 6.354 2.276 - --------------------------------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.470 $ (2.030) $ (1.479) $ 6.172 $ 2.176 - --------------------------------------------------------------------------------------------------------- Less distributions - --------------------------------------------------------------------------------------------------------- From net realized gain $ -- $ (0.450) $ (0.741) $ (0.712) $(0.336) - --------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ -- $ (0.450) $ (0.741) $ (0.712) $(0.336) - --------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR $ 8.300 $ 6.830 $ 9.310 $ 11.530 $ 6.070 - --------------------------------------------------------------------------------------------------------- TOTAL RETURN(2) 21.52% (22.46)% (13.70)% 114.90% 52.16% - --------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data - --------------------------------------------------------------------------------------------------------- Net assets, end of year (000's omitted) $396,330 $310,766 $266,628 $128,973 $ 7,778 Ratios (As a percentage of average daily net assets): Operating expenses(3) 2.74% 2.44% 2.46% 2.53% 2.44% Interest expense(3) -- -- -- -- 0.01% Net expenses after custodian fee reduction(3) 2.72% 2.42% 2.44% 2.48% 2.38% Net investment loss (1.93)% (1.65)% (1.64)% (2.02)% (1.82)% Portfolio Turnover of the Portfolio 27% 38% 24% 31% 41% - ---------------------------------------------------------------------------------------------------------
(1) Net investment loss per share was computed using average shares outstanding. (2) 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. (3) Includes the Fund's share of the Portfolio's allocated expenses. SEE NOTES TO FINANCIAL STATEMENTS 10 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 FINANCIAL STATEMENTS CONT'D FINANCIAL HIGHLIGHTS
CLASS D ------------------------------------------------ YEAR ENDED AUGUST 31, ------------------------------------------------ 2003(1) 2002(1) 2001(1)(2) - ---------------------------------------------------------------------------------- Net asset value -- Beginning of year $ 7.260 $ 9.860 $10.000 - ---------------------------------------------------------------------------------- Income (loss) from operations - ---------------------------------------------------------------------------------- Net investment loss $(0.149) $(0.135) $(0.088) Net realized and unrealized gain (loss) 1.699 (2.015) (0.052) - ---------------------------------------------------------------------------------- TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.550 $(2.150) $(0.140) - ---------------------------------------------------------------------------------- Less distributions - ---------------------------------------------------------------------------------- From net realized gain $ -- $(0.450) $ -- - ---------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS $ -- $(0.450) $ -- - ---------------------------------------------------------------------------------- NET ASSET VALUE -- END OF YEAR $ 8.810 $ 7.260 $ 9.860 - ---------------------------------------------------------------------------------- TOTAL RETURN(3) 21.35% (22.43)% (1.40)% - ---------------------------------------------------------------------------------- Ratios/Supplemental Data - ---------------------------------------------------------------------------------- Net assets, end of year (000's omitted) $15,811 $10,854 $ 3,842 Ratios (As a percentage of average daily net assets): Operating expenses(4) 2.74% 2.44% 2.48%(5) Net expenses after custodian fee reduction(4) 2.72% 2.42% 2.46%(5) Net investment loss (1.93)% (1.59)% (1.77)%(5) Portfolio Turnover of the Portfolio 27% 38% 24% - ----------------------------------------------------------------------------------
(1) Net investment loss per share was computed using average shares outstanding. (2) For the period from the commencement of offering of Class D shares, March 2, 2001, to August 31, 2001. (3) 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. (4) Includes the Fund's share of the Portfolio's allocated expenses. (5) Annualized. SEE NOTES TO FINANCIAL STATEMENTS 11 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 NOTES TO FINANCIAL STATEMENTS 1 Significant Accounting Policies - ------------------------------------------- Eaton Vance Worldwide Health Sciences 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 four classes of shares. Class A shares are generally sold subject to a sales charge imposed at the time of purchase. Class B, Class C and Class D shares are sold at net asset value and are subject to a contingent deferred sales charge (see Note 6). Effective August 1, 2003, the Fund began offering Class R shares although none were issued as of August 31, 2003. Each class represents a pro rata interest in the Fund, but votes separately on class-specific matters and (as noted below) is subject to different expenses. Realized and unrealized gains and losses and net investment income, other than class-specific expenses, are allocated daily to each class of shares based on the relative net assets of each class to the total net assets of the Fund. Each class of shares differs in its distribution plan and certain other class-specific expenses. The Fund invests all of its investable assets in interests in Worldwide Health Sciences 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 (99.9% at August 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 capital gains. Accordingly, no provision for federal income or excise tax is necessary. At August 31, 2003, the Fund, for federal income tax purposes, had a capital loss carryover of $63,699,371 which will reduce the Fund's taxable income arising from future net realized gain on investment transactions, if any, to the extent permitted by the Internal Revenue Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. The capital loss carryover will expire as follows: $16,987,050 on August 31, 2010 and $46,712,321 on August 31, 2011. At August 31, 2003, net capital losses of $94,027,110 attributable to security transactions incurred after October 31, 2002 and net currency losses of $1,137,887 attributable to foreign currency transactions incurred after October 31, 2002 are treated as arising on the first day of the Fund's next taxable year. D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian to the Fund and the Portfolio. Pursuant to the respective custodian agreements, IBT receives a fee reduced by credits which are determined based on the average daily cash balances the Fund or the Portfolio maintains with IBT. For the year ended August 31, 2003, $35,665 credit balances were used to reduce the Fund's custodian fee. E Expenses -- The majority of expenses of the Trust are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds. F Use of Estimates -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. G Other -- Investment transactions are accounted for on a trade-date basis. 12 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 NOTES TO FINANCIAL STATEMENTS CONT'D 2 Distributions to Shareholders - ------------------------------------------- It is the present policy of the Fund to make at least one distribution annually (normally in December) of all or substantially all of the investment income allocated to the Fund by the Portfolio, less the Fund's direct and allocated expenses and at least one distribution annually of all or substantially all of the net realized capital gain (reduced by any available capital loss carryover 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 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. These differences primarily relate to net operating losses. 3 Management Fee and Other Transactions with Affiliates - ------------------------------------------- The management fee is earned by Eaton Vance Management (EVM) as compensation for management and administration of the business affairs of the Fund. The fee is calculated at a monthly rate of 1/48th of 1% (0.25% annually) of the first $500 million in average daily net assets of the Fund, 0.23% of the next $500 million of average net assets, 0.217% of average net assets of $1 billion but less than $1.5 billion, 0.20% of average net assets of $1.5 billion but less than $2 billion, 0.183% of average net asset of $2 billion but less than $3 billion, and 0.167% of average net assets of $3 billion or more. For the year ended August 31, 2003, the fee was equivalent to 0.23% of the Fund's average daily net assets and amounted to $4,012,935. Except for 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. 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 year ended August 31, 2003, EVM earned $391,952 in sub-transfer agent fees. The Fund was informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's principal underwriter, received $438,397 from the Fund as its portion of the sales charge on sales of Class A shares for the year ended August 31, 2003. EVD also received from the Fund approximately $134,000 in fees for share repurchase transactions for the year ended August 31, 2003. Certain officers and Trustees of the Fund and of the Portfolio are officers of the above organizations. In addition, administrative fees are paid by the Portfolio to EVM. See Note 2 of the Portfolio's Notes to Financial Statements which are included elsewhere in the report. 4 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). Such shares may be issued in a number of different series (such as the Fund) and classes. Transactions in Fund shares were as follows:
YEAR ENDED AUGUST 31, -------------------------- CLASS A 2003 2002 -------------------------------------------------------------------- Sales 32,697,645 59,857,405 Issued to shareholders electing to receive payments of distributions in Fund shares -- 3,684,903 Redemptions (28,447,600) (38,643,242) -------------------------------------------------------------------- NET INCREASE 4,250,045 24,899,066 -------------------------------------------------------------------- YEAR ENDED AUGUST 31, -------------------------- CLASS B 2003 2002 -------------------------------------------------------------------- Sales 10,600,648 26,822,768 Issued to shareholders electing to receive payments of distributions in Fund shares -- 2,448,854 Redemptions (11,566,481) (13,111,303) -------------------------------------------------------------------- NET INCREASE (DECREASE) (965,833) 16,160,319 -------------------------------------------------------------------- YEAR ENDED AUGUST 31, -------------------------- CLASS C 2003 2002 -------------------------------------------------------------------- Sales 12,008,224 25,176,518 Issued to shareholders electing to receive payments of distributions in Fund shares -- 1,545,509 Redemptions (9,774,048) (9,868,630) -------------------------------------------------------------------- NET INCREASE 2,234,176 16,853,397 --------------------------------------------------------------------
13 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 NOTES TO FINANCIAL STATEMENTS CONT'D
YEAR ENDED AUGUST 31, -------------------------- CLASS D 2003 2002 -------------------------------------------------------------------- Sales 561,705 1,405,305 Issued to shareholders electing to receive payments of distributions in Fund shares -- 20,566 Redemptions (263,798) (319,700) -------------------------------------------------------------------- NET INCREASE 297,907 1,106,171 --------------------------------------------------------------------
Redemptions or exchanges of Class A shares made within three months of purchase are subject to a redemption fee equal to 1% of the amount redeemed. For the years ended August 31, 2003 and August 31, 2002, the Fund received $56,963 and $62,034, respectively, in redemption fees on Class A shares, which were less than $0.001 per share. 5 Distribution Plans - ------------------------------------------- Each Class of the Fund has in effect a distribution plan (the Plans) pursuant to Rule 12b-1 under the Investment Company Act of 1940. The Plans require that the Class A shares will pay a monthly distribution fee to EVD in an amount equal to 0.25% on an annual basis of the average daily net assets attributable to Class A shares. EVD may pay up to the entire amount of the Class A distribution fee to investment dealers for providing personal services to shareholders. For the year ended August 31, 2003, the Class A shares paid or accrued $2,021,437 payable to EVD. The Plans require the Class B, Class C and Class D shares to pay EVD amounts equal to 1/365 of 0.75% of the average daily net assets attributable to Class B, Class C and Class D shares for providing ongoing distribution services and facilities to each class. With respect to Class B, Class C and Class D, each class 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%, 6.25% and 5% of the aggregate amount received by the Fund for the Class B, Class C and Class D shares sold, respectively, plus (ii) interest calculated by applying the rate of 1% over the prevailing prime rate to the outstanding balance of Uncovered Distribution Charges of EVD of each respective class 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 $4,577,522, $2,448,478 and $92,974 for Class B, Class C and Class D shares, respectively, payable to EVD for the year ended August 31, 2003, representing 0.75% of the average daily net assets for Class B, Class C and Class D shares, respectively. At August 31, 2003, the amount of Uncovered Distribution Charges of EVD calculated under the Plans was approximately $28,197,000, $34,688,000 and $747,000 for Class B, Class C and Class D shares, respectively. The Plans authorize the Class B, Class C, and Class D shares to make payments of service fees to EVD, investment dealers and other persons in amounts not exceeding 0.25% of the average daily net assets attributable to Class B, Class C and Class D shares for each fiscal year. Service fee payments are made for personal services and/or the maintenance of shareholder accounts. Service fees are separate and distinct from the sales commissions and distribution fees payable by the Fund to EVD, and, as such are not subject to automatic discontinuance when there are no outstanding Uncovered Distribution Charges of EVD. Service fee payments for the year ended August 31, 2003 amounted to $1,525,841, $816,159 and $30,991 for Class B, Class C and Class D shares, respectively. 6 Contingent Deferred Sales Charge - ------------------------------------------- A contingent deferred sales charge (CDSC) generally is imposed on redemptions of Class B and Class D shares made within six years of purchase and on redemptions of Class C shares made within one year of purchase. Generally, the CDSC is based upon the lower of the net asset value at date of redemption or date of purchase. No charge is levied on shares acquired by reinvestment of dividends or capital gains distributions. Class A shares purchased at net asset value in amounts of $1 million or more (other than shares purchased in a single transaction of $5 million or more) are subject to a 1.00% CDSC if redeemed within one year of purchase. Class B and Class D CDSC is imposed at declining rates that begin at 5% in the case of redemptions in the first and second year after purchase, declining one percentage point each subsequent year. Class C shares will be subject to a 1% CDSC if redeemed within one year of purchase. No CDSC is levied on shares which have been sold to EVM or its affiliates or to their respective employees or clients and may be waived under certain other limited conditions. CDSC charges are paid to EVD to reduce the amount of Uncovered Distribution Charges calculated under each Class' Distribution Plan (see Note 5). CDSC charges received when no Uncovered Distribution Charges exist will be credited to the Fund. For the year ended August 31, 2003, the Fund was informed that EVD received approximately $2,349,000, $98,000 and $82,000 of CDSC paid by shareholders for Class B, Class C and Class D shares, respectively. 14 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 NOTES TO FINANCIAL STATEMENTS CONT'D 7 Investment Transactions - ------------------------------------------- Increases and decreases in the Fund's investment in the Portfolio for the year ended August 31, 2003 aggregated $461,854,115 and $415,610,437, respectively. 8 Shareholder Meeting (Unaudited) - ------------------------------------------- The Fund held a Special Meeting of Shareholders on June 6, 2003 to elect Trustees. The results of the vote were as follows:
NUMBER OF SHARES ------------------------ NOMINEE FOR TRUSTEE AFFIRMATIVE WITHHOLD ------------------------------------------------------------------ Jessica M. Bibliowicz 162,498,875 2,135,576 Donald R. Dwight 162,551,344 2,083,106 James B. Hawkes 162,602,201 2,032,250 Samuel L. Hayes, III 162,562,139 2,072,312 William H. Park 162,586,749 2,047,701 Norton H. Reamer 162,548,326 2,086,125 Lynn A. Stout 162,565,941 2,068,509
Each nominee was also elected a Trustee of the Portfolio. Donald R. Dwight retired as a Trustee effective July 1, 2003 pursuant to the mandatory retirement policy of the Trust. 15 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES AND SHAREHOLDERS OF EATON VANCE WORLDWIDE HEALTH SCIENCES 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 Worldwide Health Sciences Fund (the "Fund") at August 31, 2003, and the results of its operations, the changes in its net assets, and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. 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 auditing standards generally accepted in the United States of America, 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 our opinion. PricewaterhouseCoopers LLP Boston, Massachusetts October 14, 2003 16 WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2003 PORTFOLIO OF INVESTMENTS COMMON STOCKS -- 96.04%
PERCENTAGE OF SECURITY SHARES VALUE NET ASSETS - ----------------------------------------------------------------------------------- Major Capitalization - Europe -- 15.27%(1) - ----------------------------------------------------------------------------------- Altana AG 1,520,000 $ 78,024,571 3.70% Novartis AG 2,500,000 91,941,300 4.36% Sanofi-Synthelabo SA 1,125,000 63,299,520 3.00% Serono SA 140,000 88,677,831 4.21% - ----------------------------------------------------------------------------------- $ 321,943,222 15.27% - ----------------------------------------------------------------------------------- Major Capitalization - Far East -- 7.04%(1) - ----------------------------------------------------------------------------------- Chugai Pharmaceuticals Co., Ltd. 4,249,700 $ 44,992,327 2.13% Fujisawa Pharmaceutical Co., Ltd. 2,000,000 38,374,234 1.82% Takeda Chemical Industries, Ltd. 1,800,000 65,064,885 3.09% - ----------------------------------------------------------------------------------- $ 148,431,446 7.04% - ----------------------------------------------------------------------------------- Major Capitalization - North America -- 50.01%(1) - ----------------------------------------------------------------------------------- Amgen, Inc.(2) 2,341,000 $ 154,271,900 7.32% Genentech, Inc.(2) 1,999,300 158,744,420 7.53% Genzyme Corp.(2) 2,916,000 137,489,400 6.52% Gilead Sciences, Inc.(2) 1,640,000 109,388,000 5.19% IDEC Pharmaceuticals Corp.(2) 2,351,600 81,718,100 3.88% Lilly (Eli) & Co. 1,166,000 77,573,980 3.68% MedImmune, Inc.(2) 1,150,000 40,100,500 1.90% Pfizer, Inc. 3,241,200 96,976,704 4.60% Schering-Plough Corp. 5,500,000 83,545,000 3.96% Wyeth Corp. 2,673,000 114,538,050 5.43% - ----------------------------------------------------------------------------------- $1,054,346,054 50.01% - ----------------------------------------------------------------------------------- Specialty Capitalization - Europe -- 2.96% - ----------------------------------------------------------------------------------- Actelion Ltd.(2) 648,100 $ 46,281,287 2.20% Berna Biotech AG(2) 1,393,210 15,918,420 0.76% - ----------------------------------------------------------------------------------- $ 62,199,707 2.96% - ----------------------------------------------------------------------------------- Specialty Capitalization - Far East -- 2.72% - ----------------------------------------------------------------------------------- Kyorin Pharmaceutical Co., Ltd. 2,300,000 $ 27,975,502 1.33% Tanabe Seiyaku Co., Ltd. 4,155,000 29,326,481 1.39% - ----------------------------------------------------------------------------------- $ 57,301,983 2.72% - ----------------------------------------------------------------------------------- Specialty Capitalization - North America -- 18.04% - ----------------------------------------------------------------------------------- Abgenix, Inc.(2) 1,555,000 $ 20,215,000 0.96% Affymetrix, Inc.(2) 2,236,000 51,472,720 2.44% ArQule, Inc.(2) 127,500 522,750 0.02% Atrix Laboratories, Inc.(2) 964,000 29,112,800 1.38% PERCENTAGE OF SECURITY SHARES VALUE NET ASSETS - ----------------------------------------------------------------------------------- Specialty Capitalization - North America (continued) - ----------------------------------------------------------------------------------- Caliper Technologies Corp.(2) 778,000 $ 4,084,500 0.19% Cardiomedics, Inc.(2)(3)(4) 5,319 0 0.00% Enzon Pharmaceuticals, Inc.(2) 2,699,000 30,687,630 1.46% Gen-Probe, Inc.(2) 755,000 47,746,200 2.26% Given Imaging Ltd.(2)(3)(4) 485,000 5,548,400 0.26% Human Genome Sciences, Inc.(2) 3,250,000 46,280,000 2.20% ICOS Corp.(2) 1,200,000 46,728,000 2.22% Immunomedics, Inc.(2) 1,125,600 9,927,792 0.47% Incyte Corp.(2) 1,296,600 5,134,536 0.24% Ligand Pharmaceuticals, Inc., Class B(2) 3,100,000 43,059,000 2.04% Molecular Devices Corp.(2) 934,400 18,127,360 0.86% Pharmacopeia, Inc.(2) 1,166,000 14,283,500 0.68% Savient Pharmaceuticals, Inc.(2) 1,701,000 7,484,400 0.36% - ----------------------------------------------------------------------------------- $ 380,414,588 18.04% - ----------------------------------------------------------------------------------- Total Common Stocks (identified cost $1,856,926,804) $2,024,637,000 - -----------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.25%
PERCENTAGE OF SECURITY SHARES VALUE NET ASSETS - ----------------------------------------------------------------------------------- Specialty Capitalization - North America -- 0.25% - ----------------------------------------------------------------------------------- Acadia Pharmaceuticals, Inc.(2)(3)(4) 1,063,212 $ 2,870,673 0.14% Memory Pharmaceutical Corp., Series C(2)(3)(4) 400,000 860,000 0.04% Memory Pharmaceutical Corp., Series D(2)(3)(4) 441,861 950,001 0.04% Predix Pharmaceuticals Holdings, Inc., Series B(2)(3)(4) 64,600 626,304 0.03% - ----------------------------------------------------------------------------------- $ 5,306,978 0.25% - ----------------------------------------------------------------------------------- Total Preferred Stocks (identified cost $8,950,002) $ 5,306,978 - -----------------------------------------------------------------------------------
WARRANTS AND OPTIONS -- 0.00%
PERCENTAGE OF SECURITY SHARES VALUE NET ASSETS - ----------------------------------------------------------------------------------- Specialty Capitalization - North America -- 0.00% - ----------------------------------------------------------------------------------- Given Imaging Warrants, Exp. 9/15/2011(2)(3)(4) 1,283 $ 10,187 0.00% Orchid BioSciences, Inc. Options, Exp. 7/24/11, 12/21/11(2)(3)(4) 2,898 0 0.00%
SEE NOTES TO FINANCIAL STATEMENTS 17 WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2003 PORTFOLIO OF INVESTMENTS CONT'D
PERCENTAGE OF SECURITY SHARES VALUE NET ASSETS - ----------------------------------------------------------------------------------- Specialty Capitalization - North America (continued) - ----------------------------------------------------------------------------------- Orchid BioSciences, Inc. Warrants, Exp. 5/24/2004(2)(3)(4) 100,000 $ 8,000 0.00% - ----------------------------------------------------------------------------------- $ 18,187 0.00% - ----------------------------------------------------------------------------------- Total Warrants and Options (identified cost $0) $ 18,187 - -----------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 2.95%
PRINCIPAL AMOUNT (000'S PERCENTAGE OF SECURITY OMITTED) VALUE NET ASSETS - ----------------------------------------------------------------------------------- American Express Credit Corp., 1.03%, 9/3/03 $ 31,500 $ 31,498,197 1.49% Investors Bank and Trust Time Deposit, 1.12%, 9/2/03 30,775 30,775,000 1.46% - ----------------------------------------------------------------------------------- Total Short-Term Investments (at amortized cost, $62,273,197) $ 62,273,197 - ----------------------------------------------------------------------------------- Total Investments (identified cost $1,928,150,003) $2,092,235,362 99.24% - ----------------------------------------------------------------------------------- Other Assets, Less Liabilities $ 16,011,960 0.76% - ----------------------------------------------------------------------------------- Net Assets $2,108,247,322 100.00% - -----------------------------------------------------------------------------------
(1) Major capitalization is defined as market value of $5 billion or more. (2) Non-income producing security. (3) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees. (4) Restricted security. SEE NOTES TO FINANCIAL STATEMENTS 18 WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2003 FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2003 Assets - -------------------------------------------------------- Investments, at value (identified cost, $1,928,150,003) $2,092,235,362 Cash 42,936 Receivable for investments sold 13,969,119 Interest and dividends receivable 1,492,657 Tax reclaims receivable 566,193 - -------------------------------------------------------- TOTAL ASSETS $2,108,306,267 - -------------------------------------------------------- Liabilities - -------------------------------------------------------- Accrued expenses $ 58,945 - -------------------------------------------------------- TOTAL LIABILITIES $ 58,945 - -------------------------------------------------------- NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO $2,108,247,322 - -------------------------------------------------------- Sources of Net Assets - -------------------------------------------------------- Net proceeds from capital contributions and withdrawals $1,944,199,287 Net unrealized appreciation (computed on the basis of identified cost) 164,048,035 - -------------------------------------------------------- TOTAL $2,108,247,322 - --------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2003 Investment Income - ------------------------------------------------------ Dividends (net of foreign taxes, $1,196,546) $ 13,110,747 Interest 799,256 - ------------------------------------------------------ TOTAL INVESTMENT INCOME $ 13,910,003 - ------------------------------------------------------ Expenses - ------------------------------------------------------ Investment adviser fee $ 15,719,349 Administration fee 4,011,629 Trustees' fees and expenses 28,207 Custodian fee 645,904 Legal and accounting services 42,699 Miscellaneous 20,864 - ------------------------------------------------------ TOTAL EXPENSES $ 20,468,652 - ------------------------------------------------------ Deduct -- Reduction of custodian fee $ 292,935 - ------------------------------------------------------ TOTAL EXPENSE REDUCTIONS $ 292,935 - ------------------------------------------------------ NET EXPENSES $ 20,175,717 - ------------------------------------------------------ NET INVESTMENT LOSS $ (6,265,714) - ------------------------------------------------------ Realized and Unrealized Gain (Loss) - ------------------------------------------------------ Net realized gain (loss) -- Investment transactions (identified cost basis) $(91,011,072) Foreign currency transactions (1,189,132) - ------------------------------------------------------ NET REALIZED LOSS $(92,200,204) - ------------------------------------------------------ Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $473,196,606 Foreign currency (37,324) - ------------------------------------------------------ NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $473,159,282 - ------------------------------------------------------ NET REALIZED AND UNREALIZED GAIN $380,959,078 - ------------------------------------------------------ NET INCREASE IN NET ASSETS FROM OPERATIONS $374,693,364 - ------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 19 WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2003 FINANCIAL STATEMENTS CONT'D STATEMENTS OF CHANGES IN NET ASSETS
INCREASE (DECREASE) YEAR ENDED YEAR ENDED IN NET ASSETS AUGUST 31, 2003 AUGUST 31, 2002 - ---------------------------------------------------------------------------- From operations -- Net investment loss $ (6,265,714) $ (4,971,542) Net realized loss (92,200,204) (100,316,370) Net change in unrealized appreciation (depreciation) 473,159,282 (395,693,662) - ---------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 374,693,364 $ (500,981,574) - ---------------------------------------------------------------------------- Capital transactions -- Contributions $ 461,854,115 $ 1,104,949,066 Withdrawals (415,838,181) (622,079,554) - ---------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 46,015,934 $ 482,869,512 - ---------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS $ 420,709,298 $ (18,112,062) - ---------------------------------------------------------------------------- Net Assets - ---------------------------------------------------------------------------- At beginning of year $ 1,687,538,024 $ 1,705,650,086 - ---------------------------------------------------------------------------- AT END OF YEAR $ 2,108,247,322 $ 1,687,538,024 - ----------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 20 WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2003 FINANCIAL STATEMENTS CONT'D SUPPLEMENTARY DATA
YEAR ENDED AUGUST 31, ------------------------------------------------------------------- 2003 2002 2001 2000 1999 - ----------------------------------------------------------------------------------------------------- Ratios/Supplemental Data - ----------------------------------------------------------------------------------------------------- Ratios (As a percentage of average daily net assets): Operating expenses 1.16% 1.05% 1.05% 1.09% 0.95% Interest expense -- -- -- -- 0.01% Net expenses after custodian fee reduction 1.15% 1.03% 1.03% 1.05% 0.90% Net investment loss (0.36)% (0.26)% (0.27)% (0.64)% (0.42)% Portfolio Turnover 27% 38% 24% 31% 41% - ----------------------------------------------------------------------------------------------------- TOTAL RETURN(1) 23.51% (21.37)% -- -- -- - ----------------------------------------------------------------------------------------------------- NET ASSETS, END OF YEAR (000'S OMITTED) $2,108,247 $1,687,538 $1,705,650 $962,712 $205,081 - -----------------------------------------------------------------------------------------------------
(1) Total return is required to be disclosed for fiscal years beginning after December 15, 2000. SEE NOTES TO FINANCIAL STATEMENTS 21 WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2003 NOTES TO FINANCIAL STATEMENTS 1 Significant Accounting Policies - ------------------------------------------- Worldwide Health Sciences Portfolio (the Portfolio) is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company which was organized as a trust under the laws of the State of New York on March 26, 1996. The Portfolio seeks long-term capital growth by investing in a global and diversified portfolio of securities of health sciences companies. The Declaration of Trust permits the Trustees to issue interests in the Portfolio. At August 31, 2003, Eaton Vance Worldwide Health Sciences Fund had an approximate 99.9% interest in the Portfolio. The following is a summary of the significant accounting policies of the Portfolio. The policies are in conformity with accounting principles generally accepted in the United States of America. A Investment Valuations -- Securities listed on a recognized stock exchange, whether U.S. or foreign, are valued at the last reported sale price on that exchange prior to the time when assets are valued or prior to the close of trading on the New York Stock Exchange. In the event that there are no sales, the mean of the last available bid and asked prices will be used. If a security is traded on more than one exchange, the security is valued at the last sale price on the exchange where the stock is primarily traded. Marketable securities listed in the NASDAQ National Market System are valued at the NASDAQ official closing price. For foreign investments, if trading or events occurring in other markets after the close of the principal exchange in which the securities are traded are expected to materially affect the value of the investments, then those investments are valued, taking into consideration these events, at their fair value following procedures approved by the Trustees. Short-term debt securities with a remaining maturity of 60 days or less are valued at amortized cost. Securities for which market quotations are not readily available and other assets are valued on a consistent basis at fair value as determined in good faith by or under the supervision of the Portfolio's officers in a manner specifically authorized by the Board of Trustees. B Income -- Interest income is determined on the basis of interest accrued, adjusted for amortization of premium or accretion of discount. 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. C Income Taxes -- The Portfolio has elected to be 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 one of the Portfolio's investors is a regulated investment company that invests all or substantially all of its assets in the Portfolio, the Portfolio normally must satisfy the applicable source of income and diversification requirements (under the Internal Revenue Code) in order for its investors to satisfy them. The Portfolio will allocate at least annually among its investors each investor's distributive share of the Portfolio's net investment income, net realized capital gains, and any other items of income, gain, loss, deduction or credit. Withholding taxes on foreign dividends and capital gains have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates. D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian of the Portfolio. Pursuant to the custodian agreement, IBT receives a fee reduced by credits which are determined based on the average daily cash balance the Portfolio maintains with IBT. All significant credit balances used to reduce the Portfolio's custodian fees are reflected as a reduction of total operating expenses on the Statement of Operations. E Use of Estimates -- The preparation of 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 revenue and expense during the reporting period. Actual results could differ from those estimates. 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. Realized gains or losses on investment transactions attributable to changes in foreign currency exchange rates are recorded for financial statement purposes as net realized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed. G Forward Foreign Currency Exchange Contracts -- The Portfolio may enter into forward 22 WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2003 NOTES TO FINANCIAL STATEMENTS CONT'D 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 nonhedging purposes. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains and losses are recorded for financial statement purposes as unrealized until such time as the contracts have been closed. H 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. 2 Investment Advisory Fees, Administrator's Fees and Other Transactions with Affiliates - ------------------------------------------- Pursuant to the Advisory Agreement, OrbiMed Advisors LLC (formerly OrbiMed Advisors, Inc.) (OrbiMed) serves as the Investment Adviser of the Portfolio. Under this agreement, OrbiMed receives a monthly fee at the annual rate of 1% of the Portfolio's first $30 million in average net assets, 0.90% of the next $20 million in average net assets, 0.75% of the next $450 million in average net assets, 0.70% of average net assets of $500 million but less than $1 billion, 0.65% of average net assets of $1 billion but less than $1.5 billion, 0.60% of average net assets of $1.5 billion but less than $2 billion, 0.55% of average net assets of $2 billion but less than $3 billion and 0.50% of average net assets of $3 billion and greater. In addition, effective September 1, 1997, OrbiMed's fee is subject to an upward or downward performance fee adjustment of up to 0.25% of the average daily net assets of the Portfolio based upon the investment performance of the Portfolio compared to the Standard & Poor's Index of 500 Common Stocks over specified periods. For the year ended August 31, 2003, the fee was equivalent to 0.89% of the Portfolio's average daily net assets and amounted to $15,719,349. Under an Administration Agreement between the Portfolio and its Administrator, Eaton Vance Management (EVM), EVM manages and administers the affairs of the Portfolio. EVM earns a monthly fee at the annual rate of 0.25% of the first $500 million in average daily net assets of the Portfolio, 0.23% of the next $500 million of average net assets, 0.217% of average net assets of $1 billion but less than $1.5 billion, 0.20% of average net assets of $1.5 billion but less than $2 billion, 0.183% of average net assets of $2 billion but less than $3 billion and 0.167% of average net assets of $3 billion or more. For the year ended August 31, 2003, the administration fee was 0.23% of average net assets and amounted to $4,011,629. Except for Trustees of the Portfolio who are not members of the Adviser or EVM's organization, officers and Trustees receive remuneration for their services to the Portfolio out of such investment adviser and administrative fees. Certain officers and Trustees of the Portfolio are officers of the above organizations. Trustees of the Portfolio that are not affiliated with the Investment Adviser may elect to defer receipt of all or a portion of their annual fees in accordance with the terms of the Trustee Deferred Compensation Plan. For the year ended August 31, 2003, no significant amounts have been deferred. 3 Investments - ------------------------------------------- Purchases and sales of investments, other than U.S. Government securities and short-term obligations, aggregated $502,623,316 and $457,308,228, respectively, for the year ended August 31, 2003. 4 Federal Income Tax Basis of Unrealized Appreciation (Depreciation) - ------------------------------------------- The cost and unrealized appreciation (depreciation) in value of the investments owned at August 31, 2003, as computed on a federal income tax basis, were as follows: AGGREGATE COST $1,929,036,537 -------------------------------------------------------- Gross unrealized appreciation $ 425,596,255 Gross unrealized depreciation (262,397,430) -------------------------------------------------------- NET UNREALIZED APPRECIATION $ 163,198,825 --------------------------------------------------------
The unrealized appreciation on foreign currency is $8,645. 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 23 WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2003 NOTES TO FINANCIAL STATEMENTS CONT'D possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of funds or other assets of the Portfolio, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the United States. 6 Line of Credit - ------------------------------------------- The Portfolio participates with other portfolios and funds managed by 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 portfolio or fund based on its borrowings at an amount above 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 year ended August 31, 2003. 7 Restricted Securities - ------------------------------------------- At August 31, 2003, the Portfolio owned the following securities (representing 0.52% of net assets) which were restricted as to public resale and not registered under the Securities Act of 1933. The Fund has various registration rights (exercisable under a variety of circumstances) with respect to these securities. The fair value of these securities is determined based on valuations provided by brokers when available, or if not available, they are valued at fair value using methods determined in good faith by or at the direction of the Trustees. This valuation may differ from the value that would be realized if the securities were sold and the difference could be material to the financial statements.
DATE OF DESCRIPTION ACQUISITION SHARES/FACE COST FAIR VALUE -------------------------------------------------------------------------------------------- COMMON STOCKS -------------------------------------------------------------------------------------------- Cardiomedics, Inc. 12/31/02 5,319 $ 0 $ 0 Given Imaging Ltd. 9/15/00 485,000 1,699,929 5,548,400 -------------------------------------------------------------------------------------------- $ 1,699,929 $ 5,548,400 -------------------------------------------------------------------------------------------- PREFERRED STOCKS -------------------------------------------------------------------------------------------- Acadia Pharmaceuticals, Inc. 5/05/00 - 3/20/03 1,063,212 $ 4,500,001 $ 2,870,673 Memory Pharmaceutical Corp., Series C 6/21/00 400,000 1,000,000 860,000 Memory Pharmaceutical Corp., Series D 3/04/02 441,861 950,001 950,001 Predix Pharmaceuticals Holdings, Inc., Series B 8/12/03 64,600 2,500,000 626,304 -------------------------------------------------------------------------------------------- $ 8,950,002 $ 5,306,978 -------------------------------------------------------------------------------------------- WARRANTS AND OPTIONS -------------------------------------------------------------------------------------------- Given Imaging Warrants, Exp. 9/15/2011 8/30/01 1,283 $ 0 $ 10,187 Orchid BioSciences, Inc. Options, Exp. 7/24/11, 12/21/11 7/24/01 - 12/21/01 2,898 0 0 Orchid BioSciences, Inc. Warrants, Exp. 5/24/2004 5/24/99 - 12/22/99 100,000 0 8,000 -------------------------------------------------------------------------------------------- $ -- $ 18,187 -------------------------------------------------------------------------------------------- $10,649,931 $10,873,565 --------------------------------------------------------------------------------------------
8 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 forward foreign currency exchange contracts and 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 24 WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2003 NOTES TO FINANCIAL STATEMENTS CONT'D instruments is meaningful only when all related and offsetting transactions are considered. At August 31, 2003, there were no outstanding obligations under these financial instruments. 9 Interestholder Meeting (Unaudited) - ------------------------------------------- The Portfolio held a Special Meeting of Interestholders on June 6, 2003 to elect Trustees. The results of the vote were as follows:
INTEREST IN THE PORTFOLIO ------------------------- NOMINEE FOR TRUSTEE AFFIRMATIVE WITHHOLD ------------------------------------------------------------------- Jessica M. Bibliowicz 99% 1% Donald R. Dwight 99% 1% James B. Hawkes 99% 1% Samuel L. Hayes, III 99% 1% William H. Park 99% 1% Norton H. Reamer 99% 1% Lynn A. Stout 99% 1%
Results are rounded to the nearest whole number. Donald R. Dwight retired as a Trustee effective July 1, 2003 pursuant to the mandatory retirement policy of the Portfolio. 25 WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2003 INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES AND INVESTORS OF WORLDWIDE HEALTH SCIENCES PORTFOLIO: - --------------------------------------------- In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the supplementary data present fairly, in all material respects, the financial position of Worldwide Health Sciences Portfolio (the "Portfolio") at August 31, 2003, and the results of its operations, the changes in its net assets, and the supplementary data for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and supplementary data (hereafter referred to as "financial statements") are the responsibility of the Portfolio'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 auditing standards generally accepted in the United States of America, 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, which included confirmation of securities at August 31, 2003 by correspondence with the custodian, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Boston, Massachusetts October 14, 2003 26 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 MANAGEMENT AND ORGANIZATION FUND MANAGEMENT. The Trustees of Eaton Vance Growth Trust (the Trust) and Worldwide Health Sciences Portfolio (the Portfolio) are responsible for the overall management and supervision of the Trust's and Portfolio's affairs. The Trustees and officers of the Trust and the Portfolio are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Trustees and officers of the Trust and the Portfolio hold indefinite terms of office. The business address of each Trustee and officer, with the exception of Mr. Isaly, is The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109. As used below, "EVC" refers to Eaton Vance Corp., "EV" refers to Eaton Vance, Inc., "EVM" refers to Eaton Vance Management, "BMR" refers to Boston Management and Research, "EVD" refers to Eaton Vance Distributors, Inc. and "Atlanta Capital" refers to Atlanta Capital Management Company, LLC. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is the Trust's principal underwriter, the Portfolio's placement agent and a wholly-owned subsidiary of EVM.
POSITION(S) TERM OF NUMBER OF PORTFOLIOS WITH THE OFFICE AND IN FUND COMPLEX NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH THE PORTFOLIO SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD ----------------------------------------------------------------------------------------------------------------------------------- INTERESTED TRUSTEE(S) Jessica M. Trustee Since 1998 President and Chief 191 None Bibliowicz Executive Officer of 11/28/59 National Financial Partners (financial services company) (since April 1999). President and Chief Operating Officer of John A. Levin & Co. (registered investment adviser) (July 1997 to April 1999) and a Director of Baker, Fentress & Company which owns John A. Levin & Co. (July 1997 to April 1999). Ms. Bibliowicz is an interested person because of her affiliation with a brokerage firm. James B. Hawkes Trustee Trustee of the Chairman, President and 193 Director of EVC 11/9/41 Trust since 1989; Chief Executive Officer of the Portfolio of BMR, EVC, EVM and since 1996 EV; Director of EV; Vice President and Director of EVD. Trustee and/or officer of 193 registered investment companies in the Eaton Vance Fund Complex. Mr. Hawkes is an interested person because of his positions with BMR, EVM, EVC and EV which are affiliates of the Trust and the Portfolio. NONINTERESTED TRUSTEE(S) Samuel L. Hayes, Trustee Trustee of the Jacob H. Schiff 193 Director of Tiffany & III Trust since 1989; Professor of Investment Co. (specialty retailer) 2/23/35 of the Portfolio Banking Emeritus, and Telect, Inc. since 1996 Harvard University (telecommunication Graduate School of services company) Business Administration. William H. Park Trustee Since 2003 President and Chief 190 None 9/19/47 Executive Officer, Prizm Capital Management, LLC (investment management firm) (since 2002). Executive Vice President and Chief Financial Officer, United Asset Management Corporation (a holding company owning institutional investment management firms) (1982-2001). Ronald A. Pearlman Trustee Since 2003 Professor of Law, 190 None 7/10/40 Georgetown University Law Center (since 1999). Tax Partner, Covington & Burling, Washington, DC (1991-2000).
27 EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2003 MANAGEMENT AND ORGANIZATION CONT'D
POSITION(S) TERM OF NUMBER OF PORTFOLIOS WITH THE OFFICE AND IN FUND COMPLEX NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH THE PORTFOLIO SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD ----------------------------------------------------------------------------------------------------------------------------------- NONINTERESTED TRUSTEE(S) (CONTINUED) Norton H. Reamer Trustee Trustee of the President, Unicorn 193 None 9/21/35 Trust since 1989; Corporation (an of the Portfolio investment and since 1996 financial advisory services company) (since September 2000). Chairman, Hellman, Jordan Management Co., Inc. (an investment management company) (since November 2000). Advisory Director of Berkshire Capital Corporation (investment banking firm) (since June 2002). Formerly Chairman of the Board, United Asset Management Corporation (a holding company owning institutional investment management firms) and Chairman, President and Director, UAM Funds (mutual funds). Lynn A. Stout Trustee Since 1998 Professor of Law, 193 None 9/14/57 University of California at Los Angeles School of Law (since July 2001). Formerly, Professor of Law, Georgetown University Law Center.
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEE(S)
POSITION(S) TERM OF WITH THE OFFICE AND NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) DATE OF BIRTH THE PORTFOLIO SERVICE DURING PAST FIVE YEARS -------------------------------------------------------------------------------------------------- Thomas E. Faust President of the Trust Since 2002(3) Executive Vice President of Jr. EVM, BMR, EVC and EV; Chief 5/31/58 Investment Officer of EVM and BMR and Director of EVC. Chief Executive Officer of Belair Capital Fund LLC, Belcrest Capital Fund LLC, Belmar Capital Fund LLC, Belport Capital Fund LLC and Belrose Capital Fund LLC (private investment companies sponsored by EVM). Officer of 53 registered investment companies managed by EVM or BMR. Gregory L. Coleman Vice President Since 2001 Partner of Atlanta Capital. 10/28/49 of the Trust Officer of 10 registered investment companies managed by EVM or BMR. Samuel D. Isaly(2) President of Since 2002(3) Managing Partner of OrbiMed 3/12/45 the Portfolio Advisors LLC. Officer of 5 registered investment companies managed by EVM or BMR. Duncan W. Vice President Since 2002 Senior Vice President and Richardson of the Portfolio Chief Equity Investment 10/26/57 Officer of EVM and BMR. Officer of 42 registered investment companies managed by EVM or BMR. James A. Womack Vice President Since 2001 Vice President of Atlanta 11/20/68 of the Trust Capital. Officer of 10 registered investment companies managed by EVM or BMR. Alan R. Dynner Secretary Since 1997 Vice President, Secretary and 10/10/40 Chief Legal Officer of BMR, EVM, EVD, EV and EVC. Officer of 193 registered investment companies managed by EVM or BMR. Barbara E. Treasurer of the Portfolio Since 2002(3) Vice President of EVM and BMR. Campbell Officer of 193 registered 6/19/57 investment companies managed by EVM or BMR. James L. O'Connor Treasurer of the Trust Since 1989 Vice President of BMR, EVM and 4/1/45 EVD. Officer of 115 registered investment companies managed by EVM or BMR.
(1) Includes both master and feeder funds in a master-feeder structure. (2) The business address for Mr. Isaly is 767 Third Avenue, New York, NY 10017. (3) Prior to 2002, Mr. Isaly served as Vice President of the Portfolio since 1996, Mr. Faust served as Vice President of the Trust since 1999 and Ms. Campbell served as Assistant Treasurer of the Portfolio since 1996. The SAI for the Fund includes additional information about the Trustees and officers of the Fund and Portfolio and can be obtained without charge by calling 1-800-225-6265. 28 SPONSOR AND MANAGER OF EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AND ADMINISTRATOR OF WORLDWIDE HEALTH SCIENCES PORTFOLIO EATON VANCE MANAGEMENT The Eaton Vance Building 255 State Street Boston, MA 02109 ADVISER OF WORLDWIDE HEALTH SCIENCES PORTFOLIO ORBIMED ADVISORS LLC 767 3rd Avenue New York, NY 10017 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 INDEPENDENT ACCOUNTANTS PRICEWATERHOUSECOOPERS LLP 160 Federal Street Boston, MA 02110 EATON VANCE WORLDWIDE HEALTH SCIENCES 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. HSSRC 426-10/03 ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not Required in Filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not Required in Filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. EATON VANCE GROWTH TRUST (ON BEHALF OF EATON VANCE WORLDWIDE HEALTH SCIENCES FUND) By: /S/ Thomas E. Faust Jr. ---------------------------------------------- Thomas E. Faust Jr. President Date: October 15, 2003 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ James L. O'Connor ---------------------------------------------- James L. O'Connor Treasurer Date: October 15, 2003 ---------------- By: /S/ Thomas E. Faust Jr. ---------------------------------------------- Thomas E. Faust Jr. President Date: October 15, 2003 ---------------- EX-99.CERT 3 a2120080zex-99_cert.txt EXHIBIT 99.CERT Exhibit 99.Cert FORM N-CSR ITEMS 10(a)(2)(i) & 10(a)(2)(ii) EXHIBIT I, James L. O'Connor; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Growth Trust (on behalf of Eaton Vance Worldwide Health Sciences Fund); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: October 15, 2003 ---------------- /S/ James L. O'Connor - -------------------------------------- James L. O'Connor Treasurer I, Thomas E. Faust Jr.; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Growth Trust (on behalf of Eaton Vance Worldwide Health Sciences Fund); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: October 15, 2003 ---------------- /S/ Thomas E. Faust Jr. - -------------------------------------- Thomas E. Faust Jr. President EX-99.906CERT 4 a2120080zex-99_906cert.txt EXHIBIT 99.906CERT Exhibit 99.906.Cert FORM N-CSR ITEM 10(b) EXHIBIT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned hereby certify in their capacity as Treasurer and President, respectively, of EATON VANCE GROWTH TRUST (the "Trust") (on behalf of Eaton Vance Worldwide Health Sciences Fund), that: (a) the Annual Report of the Trust (on behalf of Eaton Vance Worldwide Health Sciences Fund) on Form N-CSR for the period ended August 31, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Trust (on behalf of Eaton Vance Worldwide Health Sciences Fund) for such period. A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN PROVIDED TO THE TRUST AND WILL BE RETAINED BY THE TRUST AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. Eaton Vance Growth Trust (On behalf of Eaton Vance Worldwide Health Sciences Fund) Date: October 15, 2003 ---------------- /S/ James L. O'Connor - -------------------------------------- James L. O'Connor Treasurer Date: October 15, 2003 ---------------- /S/ Thomas E. Faust Jr. - -------------------------------------- Thomas E. Faust Jr. President -----END PRIVACY-ENHANCED MESSAGE-----