<PAGE>
Worldwide Health Sciences Portfolio as of February 28, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
(Expressed in United States Dollars)
Common Stocks and Warrants-- 96.80%
Percentage of
Security Shares Value Net Assets
- --------------------------------------------------------------------------------
Major Capitalization - Europe -- 18.79%
- --------------------------------------------------------------------------------
Altana 119,900 $ 9,584,332 4.94%
Ares-Serono 3,350 5,023,002 2.59%
Astra AB Class A 300,000 6,057,386 3.12%
Novartis 4,400 8,020,459 4.13%
Sanofi SA 68,700 7,791,356 4.01%
- --------------------------------------------------------------------------------
$ 36,476,535 18.79%
- --------------------------------------------------------------------------------
Major Capitalization - Far East -- 10.51%
- --------------------------------------------------------------------------------
Banyu Pharmaceutical Co. 307,000 $ 4,017,209 2.07%
Eisai Co., Ltd. 375,000 6,572,426 3.39%
Fujisawa Pharmaceutical 600,000 6,043,063 3.11%
Sankyo Co., Ltd. 140,000 3,763,829 1.94%
- --------------------------------------------------------------------------------
$ 20,396,527 10.51%
- --------------------------------------------------------------------------------
Major Capitalization - North America -- 24.63%
- --------------------------------------------------------------------------------
Biochem Pharma, Inc. 250,000 $ 5,609,375 2.89%
Biogen, Inc.* 150,000 6,618,750 3.41%
Centocor, Inc.* 200,000 7,212,500 3.72%
Genzyme Corp.* 250,000 7,390,625 3.81%
Immunex Corp.* 100,000 5,912,500 3.05%
Merck & Co., Inc. 25,000 3,189,063 1.64%
Pharmacia & Upjohn, Inc.* 200,000 7,912,499 4.08%
Warner-Lambert Co. 27,000 3,948,750 2.03%
- --------------------------------------------------------------------------------
$ 47,794,062 24.63%
- --------------------------------------------------------------------------------
Specialty Capitalization - Europe -- 6.83%
- --------------------------------------------------------------------------------
Cambridge Antibody
Technology, Ltd. 521,040 $ 3,348,625 1.73%
Cambridge Antibody
Technology, Ltd. - Warrants*/(a)/ 15,500 24,112 0.01%
Celltech Group, PLC* 375,000 1,853,888 0.95%
Ethical Holdings ADR* 150,000 150,000 0.08%
Swiss Serum Institute* 420 7,871,869 4.06%
- --------------------------------------------------------------------------------
$ 13,248,494 6.83%
- --------------------------------------------------------------------------------
Specialty Capitalization - Far East -- 6.36%
- --------------------------------------------------------------------------------
Amrad Corp., Ltd.* 1,110,658 $ 1,959,167 1.01%
Biota Holdings, Ltd.* 1,100,000 2,910,551 1.50%
Biota Holdings, Ltd. -
Warrants*/(a)/ 78,738 129,917 0.07%
Rohto Pharmaceutical 500,000 4,044,570 2.08%
Teikoku Hormone Manufacturing 550,000 3,293,152 1.70%
- --------------------------------------------------------------------------------
$ 12,337,357 6.36%
- --------------------------------------------------------------------------------
Specialty Capitalization - North America -- 29.68%
- --------------------------------------------------------------------------------
Agouron Pharmaceuticals, Inc.* 190,000 $ 7,006,250 3.61%
Alexion Pharmaceuticals, Inc.* 270,000 3,611,250 1.86%
Aviron* 125,000 3,140,625 1.62%
Axys Pharmaceuticals, Inc.* 250,000 2,125,000 1.09%
CytoTherapeutics, Inc.* 335,000 1,172,500 0.60%
Gilead Sciences, Inc.* 170,000 6,088,125 3.14%
Human Genome Sciences, Inc.* 100,000 4,250,000 2.19%
Incyte Pharmaceuticals, Inc.* 150,000 6,825,000 3.52%
Lynx Therapeutics, Inc.* 110,300 1,640,713 0.85%
Millennium Pharmaceuticals* 250,000 5,031,250 2.59%
Neurocrine BioScience, Inc. 130,000 1,072,500 0.55%
Pharmacopeia, Inc.* 175,000 3,325,000 1.71%
Premier Research Worldwide* 235,000 1,762,500 0.91%
SangStat Medical Corp.* 125,000 3,828,125 1.97%
Vertex Pharmaceuticals, Inc.* 180,000 6,727,500 3.47%
- --------------------------------------------------------------------------------
$ 57,606,338 29.68%
- --------------------------------------------------------------------------------
Total Common Stocks and Warrants
(identified cost $162,152,999) $187,859,313
- --------------------------------------------------------------------------------
See notes to financial statements
10
<PAGE>
Worldwide Health Sciences Portfolio as of February 28, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
(Expressed in United States Dollars)
Preferred Stocks -- 3.76%
Percentage of
Security Shares Value Net Assets
- --------------------------------------------------------------------------------
Specialty Capitalization - North America -- 3.76%
- --------------------------------------------------------------------------------
Abgenix, Inc./(a)(b)/ 276,923 $ 1,800,000 0.93%
Ontogeny, Inc./(a)(b)/ 600,000 1,500,000 0.77%
Orchid Biocomputer, Inc./(a)(b)/ 180,180 1,999,998 1.03%
Tularik, Inc.*/(a)(b)/ 200,000 2,000,000 1.03%
- --------------------------------------------------------------------------------
$ 7,299,998 3.76%
- --------------------------------------------------------------------------------
Total Preferred Stocks
(identified cost $7,299,998) $ 7,299,998
- --------------------------------------------------------------------------------
Total Investments
(identified cost $169,452,997) $195,159,311 100.56%
- --------------------------------------------------------------------------------
Other Assets, Less Liabilities $ (1,091,255) (0.56)%
- --------------------------------------------------------------------------------
Net Assets $194,068,056 100.00%
- --------------------------------------------------------------------------------
* Non-income producing security.
/(a)/ Restricted Security (Note 7)
/(b)/ Security valued at fair value using methods determined in good faith by or
at the direction of the Trustees.
See notes to financial statements
11
<PAGE>
Worldwide Health Sciences Portfolio as of February 28, 1998
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
As of February 28, 1998
(Expressed in United States Dollars)
Assets
- --------------------------------------------------------------------------------
Investments, at value (Note 1A)
(identified cost, $169,452,997) $195,159,311
Cash 243
Dividends receivable 12,960
Deferred organization expenses (Note 1E) 9,435
- --------------------------------------------------------------------------------
Total assets $195,181,949
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Demand note payable (Note 6) $ 1,094,000
Payable to affiliate for Trustees' fees (Note 2) 1,122
Accrued expenses 18,771
- --------------------------------------------------------------------------------
Total liabilities $ 1,113,893
- --------------------------------------------------------------------------------
Net Assets applicable to investors' interest in
Portfolio $194,068,056
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Net proceeds from capital contributions and
withdrawals $168,361,742
Net unrealized appreciation of investments (computed
on the basis of identified cost) 25,706,314
- --------------------------------------------------------------------------------
Total $194,068,056
- --------------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended
February 28, 1998
(Expressed in United States Dollars)
Investment Income (Note 1B)
- --------------------------------------------------------------------------------
Dividends (net of foreign taxes, $15,694) $ 201,892
- --------------------------------------------------------------------------------
Total income $ 201,892
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Investment adviser fee (Note 2) $ 577,920
Administration fee (Note 2) 219,381
Compensation of Trustees not members of the
Administrator's organization (Note 2) 2,705
Custodian fee (Note 1D) 187,671
Legal and accounting services 4,908
Amortization of organization expenses (Note 1E) 1,206
Miscellaneous 1,995
- --------------------------------------------------------------------------------
Total expenses $ 995,786
- --------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee (Note 1D) $ 185,896
- --------------------------------------------------------------------------------
Total expense reductions $ 185,896
- --------------------------------------------------------------------------------
Net expenses $ 809,890
- --------------------------------------------------------------------------------
Net investment loss $ (607,998)
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- --------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 5,798,459
Foreign currency transactions (90,194)
- --------------------------------------------------------------------------------
Net realized gain on investment transactions $ 5,708,265
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 3,685,105
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation)
of investments $ 3,685,105
- --------------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 9,393,370
- --------------------------------------------------------------------------------
Net increase in net assets from operations $ 8,785,372
- --------------------------------------------------------------------------------
See notes to financial statements
12
<PAGE>
Worldwide Health Sciences Portfolio as of February 28, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets (Expressed in United States Dollars)
Six Months Ended
Increase (Decrease) February 28, 1998 Year Ended
in Net Assets (Unaudited) August 31, 1997
- ------------------------------------------------------------------------
From operations --
Net investment loss $ (607,998) $ (756,950)
Net realized gain on
investment transactions 5,708,265 1,806,693
Net change in unrealized
appreciation (depreciation)
of investments 3,685,105 22,021,209
- ------------------------------------------------------------------------
Net increase in net assets
from operations $ 8,785,372 $ 23,070,952
- ------------------------------------------------------------------------
Capital transactions --
Contributions $ 52,816,274 $160,659,674
Withdrawals (20,250,578) (31,113,638)
- ------------------------------------------------------------------------
Net increase in net assets from
capital transactions $ 32,565,696 $129,546,036
- ------------------------------------------------------------------------
Net increase in net assets $ 41,351,068 $152,616,988
- ------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------
At beginning of period $152,716,988 $ 100,000
- ------------------------------------------------------------------------
At end of period $194,068,056 $152,716,988
- ------------------------------------------------------------------------
See notes to financial statements
13
<PAGE>
Worldwide Health Sciences Portfolio as of February 28, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data (Expressed in United States Dollars)
Six Months Ended
February 28, 1998 Year Ended
(Unaudited) August 31, 1997
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 1.13%+ 1.25%
Expenses after custodian fee reduction 0.92%+ 1.18%
Net investment loss (0.69)%+ (0.81)%
Portfolio Turnover 9% 14%
- --------------------------------------------------------------------------------
Average commission rate (per share)(1) $ 0.0415 $ 0.0438
- --------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $194,068 $152,717
- --------------------------------------------------------------------------------
+ Annualized.
(1) Average commission rate paid is computed by dividing the total dollar amount
of commissions paid during the fiscal year by the total number of shares
purchased and sold during the fiscal year for which commissions were
charged.
See notes to financial statements
14
<PAGE>
Worldwide Health Sciences Portfolio as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Expressed in United States Dollars)
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 Declaration of Trust permits the
Trustees to issue interests in the Portfolio. Investment operations began on
September 1, 1996, with the acquisition of securities with a value of
$51,528,696, including unrealized appreciation of $9,053,201, in exchange
for interest in the Portfolio by one of the Portfolio's investors. The
following is a summary of the significant accounting policies of the
Portfolio. The policies are in conformity with generally accepted accounting
principles.
A Investment Valuations -- 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 last available sale price 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. 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 -- Dividend income is recorded on the ex-dividend date, except that
certain dividends from foreign securities are recorded on the ex-dividend
date or as soon thereafter as the Portfolio is informed of the dividend.
C Federal Taxes -- The Portfolio has elected to be treated as a partnership
for United States Federal tax purposes. No provision is made by the
Portfolio for federal or state taxes on any taxable income of the Portfolio
because each investor in the Portfolio is ultimately responsible for the
payment of any taxes. Since some of the Portfolio's investors are regulated
investment companies that invest all or substantially all of their assets in
the Portfolio, the Portfolio must satisfy the applicable source of income
and diversification requirement, (under the Code) in order for its investors
to satisfy them. The Portfolio will allocate at least annually among its
investors each investors' distributive share of the Portfolio's net
investment income, net realized capital gains, and any other items of
income, gain, loss, deduction or credit.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolio. Pursuant to the custodian agreement, IBT
receives a fee reduced by the credits which are determined based on the
average daily cash balances the Portfolio maintains with IBT. All
significant credit balances used to reduce the Portfolio's custodian fees
are reflected as a reduction of operating expense on the Statement of
Operations.
E Deferred Organization Expenses -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
F 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.
G Foreign Currency Translation -- Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing on
the respective dates of such transactions. Recognized gains or losses on
investment transactions attributable to foreign currency rates are recorded
for financial statement purposes as net realized gains and losses on
investments. That portion of unrealized gains and losses on investments that
result from fluctuations in foreign currency exchange rates are not
separately disclosed.
H Forward Foreign Currency Exchange Contracts -- The Portfolio may enter
into forward foreign currency exchange contracts for the purchase or sale of
a specific foreign currency at a fixed price on a future date. Risks may
arise upon entering these contracts from the potential inability of
counterparties to meet the terms of their contracts and from movements in
the value of a foreign currency relative to the U.S. dollar. The Portfolio
will enter into forward contracts for hedging purposes as well as 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.
15
<PAGE>
Worldwide Health Sciences Portfolio as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
(Expressed in United States Dollars)
I Other -- Investment transactions are accounted for on a trade date
basis.
J Interim Financial Information -- The interim financial statements relating
to February 28, 1998 and for the six-month period then ended have not been
audited by independent certified public accountants, but in the opinion of the
Portfolio's management, reflect all adjustments, consisting only of normal
recurring adjustments necessary for the fair presentation of the financial
statements.
2 Investment Advisory Fees, Administrator's Fees and Other Transactions with
Affiliates
-----------------------------------------------------------------------------
Pursuant to the Advisory Agreement, 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
first $30 million in average net assets, 0.90% of the next $20 million in
average net assets, and 0.75% of average net assets in excess of $50
million. The fee rate declines for net assets of $500 million 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% (annualized) 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 six months ended February 28,
1998, the fee was equivalent to 0.66% (annualized) of the Portfolio's
average daily net assets and amounted to $577,920.
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 in the amount of
1/48th of 1% (equal to 0.25% annually) of the average daily net assets of
the Portfolio up to $500,000,000, and at reduced rates as daily net assets
exceed that level. For the six months ended February 28, 1998, the
administration fee was 0.25% (annualized) of average net assets.
Except as to 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 also officers or
directors/trustees 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 six months ended February 28, 1998, no significant amounts have been
deferred.
3 Investments
-----------------------------------------------------------------------------
Purchases and sales of investments other than U.S. Government securities and
short-term obligations aggregated $57,946,664 and $15,851,514, respectively
for the six months ended February 28, 1998.
4 Federal Income Tax Basis of Investments
-----------------------------------------------------------------------------
The cost and unrealized appreciation/depreciation in value of the
investments owned at February 28, 1998, as computed on a federal income tax
basis, were as follows:
Aggregate cost $169,452,997
---------------------------------------------------------------------------
Gross unrealized appreciation $35,272,488
Gross unrealized depreciation (9,566,174)
---------------------------------------------------------------------------
Net unrealized appreciation $25,706,314
---------------------------------------------------------------------------
5 Risks Associated with Foreign Investments
-----------------------------------------------------------------------------
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less
publicly available information about foreign companies, particularly those
not subject to the disclosure and reporting requirements of the U.S.
securities laws. Foreign issuers are generally not bound by uniform
accounting, auditing, and financial reporting requirements and standards of
practice comparable to those applicable to domestic issuers. Investments in
foreign securities also involve the risk of possible adverse changes in
investment or exchange control regulations, expropriation or confiscatory
taxation, limitation on the removal of funds or other assets of the
Portfolio, political or financial instability or diplomatic and other
developments which could affect such investments. Foreign stock markets,
while growing in volume and sophistication, are generally not as developed
as those in the United States, and securities of some foreign issuers
(particularly those in developing countries) may be less liquid and more
volatile than securities of comparable U.S.
16
<PAGE>
Worldwide Health Sciences Portfolio as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
(Expressed in United States Dollars)
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 committed $100 million unsecured line of credit
agreement with a group of banks. Borrowings will be made by the Portfolios
and funds 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 effective rate. In addition, a fee computed at an annual rate of 0.10%
on the daily unused portion of the facility is allocated among the
participating portfolios and funds at the end of each quarter. At February
28, 1998, the Portfolio had a balance outstanding pursuant to this line of
credit of $1,094,000. The Portfolio did not have any significant borrowings
or allocated fees during the six months ended February 28, 1998.
7 Restricted Securities
-----------------------------------------------------------------------------
At February 28, 1998, the Portfolio owned the following securities
(representing 3.84% 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.
Date of
Description Acquisition Shares Cost Fair Value
----------------------------------------------------------------------------
Preferred Stocks
----------------------------------------------------------------------------
Abgenix 12/18/97 276,923 $1,800,000 $1,800,000
Ontogeny, Inc. 3/13/97 600,000 1,500,000 1,500,000
Orchid Biocomputer 12/19/97 180,180 1,999,998 1,999,998
Tularik, Inc. 10/14/96 200,000 2,000,000 2,000,000
----------------------------------------------------------------------------
$7,299,998 $7,299,998
----------------------------------------------------------------------------
Warrants
----------------------------------------------------------------------------
Cambridge Antibody 08/28/96 15,500 $31,000 $24,112
Technology
Biota Holding 12/18/95 78,738 0 129,917
----------------------------------------------------------------------------
$31,000 $154,029
----------------------------------------------------------------------------
17
<PAGE>
Worldwide Health Sciences Portfolio as of February 28, 1998
INVESTMENT MANAGEMENT
Worldwide Health Sciences Portfolio
Officers
James B. Hawkes
President and Trustee
Samuel D. Isaly
Vice President and
Portfolio Manager
Raymond O'Neill
Vice President
Michel Normandeau
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate School of
Business Administration
Norton H. Reamer
President and Director, United Asset
Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
18
