<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 1999
PORTFOLIO OF INVESTMENTS
(EXPRESSED IN UNITED STATES DOLLARS)
<TABLE>
<S> <C> <C> <C>
COMMON STOCKS AND WARRANTS -- 89.85%
<CAPTION>
PERCENTAGE OF
SECURITY SHARES VALUE NET ASSETS
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------
Major Capitalization - Europe -- 17.88%
- -----------------------------------------------------------------------------------
Altana 135,000 $ 8,904,516 4.34%
Ares-Serono 4,700 7,098,200 3.46%
Roche Holding AG 800 9,243,553 4.51%
Sanofi-Synthelabo(1) 274,800 11,426,400 5.57%
- -----------------------------------------------------------------------------------
$ 36,672,669 17.88%
- -----------------------------------------------------------------------------------
Major Capitalization - Far East -- 16.78%
- -----------------------------------------------------------------------------------
Banyu Pharmaceutical Co. 450,000 $ 8,610,086 4.20%
Eisai Co., Ltd. 400,000 9,220,537 4.49%
Fujisawa Pharmaceutical 500,000 8,569,086 4.18%
Takeda Chemical Industries, Ltd. 160,000 8,017,858 3.91%
- -----------------------------------------------------------------------------------
$ 34,417,567 16.78%
- -----------------------------------------------------------------------------------
Major Capitalization - North America -- 25.82%
- -----------------------------------------------------------------------------------
Genzyme Corp., Class A(1) 150,000 $ 8,465,625 4.13%
Lilly (Eli) & Co. 150,000 11,193,750 5.46%
Merck & Co., Inc. 110,000 7,390,625 3.60%
Monsanto Co. 250,000 10,265,625 5.01%
Pharmacia & Upjohn, Inc. 120,000 6,270,000 3.06%
Warner-Lambert Co. 141,269 9,359,071 4.56%
- -----------------------------------------------------------------------------------
$ 52,944,696 25.82%
- -----------------------------------------------------------------------------------
Specialty Capitalization - Europe -- 2.61%
- -----------------------------------------------------------------------------------
Cambridge Antibody Technology, Ltd.(1) 396,040 $ 1,432,962 0.70%
Cambridge Antibody Technology, Ltd.
Warrants(1)(2)(3) 15,500 2,124 0.00%
Swiss Serum Institute 328 3,926,136 1.91%
- -----------------------------------------------------------------------------------
$ 5,361,222 2.61%
- -----------------------------------------------------------------------------------
Specialty Capitalization - Far East -- 3.63%
- -----------------------------------------------------------------------------------
Rohto Pharmaceutical 500,000 $ 3,858,594 1.88%
Teikoku Hormone Manufacturing 390,000 3,588,903 1.75%
- -----------------------------------------------------------------------------------
$ 7,447,497 3.63%
- -----------------------------------------------------------------------------------
Specialty Capitalization - North America -- 23.13%
- -----------------------------------------------------------------------------------
Abgenix, Inc.(1) 43,000 $ 1,381,375 0.67%
Alexion Pharmaceuticals, Inc.(1) 270,000 3,611,250 1.76%
<CAPTION>
PERCENTAGE OF
SECURITY SHARES VALUE NET ASSETS
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------
Specialty Capitalization - North America (continued)
- -----------------------------------------------------------------------------------
Aviron(1) 250,000 $ 7,015,625 3.42%
Bio-Technology General Corp.(1) 400,000 4,075,000 1.99%
Gilead Sciences, Inc.(1) 100,000 7,793,750 3.80%
Incyte Pharmaceuticals, Inc.(1) 110,000 3,121,250 1.52%
Orchid Biocomputer Warrants(2)(3) 50,000 0 0.00%
Pharmacopeia, Inc.(1) 302,500 3,705,625 1.81%
Premier Research Worldwide(1) 235,000 1,439,375 0.70%
SangStat Medical Corp.(1) 260,000 5,362,500 2.62%
Triangle Pharmaceuticals, Inc.(1) 200,000 3,675,000 1.79%
Vertex Pharmaceuticals, Inc.(1) 225,000 6,243,750 3.05%
- -----------------------------------------------------------------------------------
$ 47,424,500 23.13%
- -----------------------------------------------------------------------------------
Total Common Stocks and Warrants
(identified cost $149,398,960) $184,268,151
- -----------------------------------------------------------------------------------
PREFERRED STOCKS -- 8.52%
<CAPTION>
PERCENTAGE OF
SECURITY SHARES VALUE NET ASSETS
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------
Specialty Capitalization - North America -- 8.52%
- -----------------------------------------------------------------------------------
Abgenix, Inc.(1)(2)(4) 276,923 $ 8,896,151 4.34%
Arena Pharmaceuticals(1)(2)(3) 354,994 1,238,929 0.60%
Intrabiotics Pharm, Inc.(1)(2)(3) 333,334 1,000,002 0.49%
Net Genics, Inc. Convertible, Series D,
Preferred R(1)(2)(3) 250,000 500,000 0.24%
Ontogeny, Inc.(1)(2)(3) 600,000 1,830,000 0.89%
Orchid Biocomputer, Inc.(1)(2)(3) 180,180 1,999,998 0.98%
Tularik, Inc.(1)(2)(3) 200,000 2,000,000 0.98%
- -----------------------------------------------------------------------------------
$ 17,465,080 8.52%
- -----------------------------------------------------------------------------------
Total Preferred Stocks
(identified cost $10,038,929) $ 17,465,080
- -----------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
(EXPRESSED IN UNITED STATES DOLLARS)
<TABLE>
<S> <C> <C> <C>
BONDS -- 0.49%
<CAPTION>
PRINCIPAL
AMOUNT
(000'S PERCENTAGE OF
SECURITY OMITTED) VALUE NET ASSETS
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------
Specialty Capitalization - North America -- 0.49%
- -----------------------------------------------------------------------------------
Orchid Biocomputer,
9.75%, 5/24/00(2)(3) $ 1,000 $ 1,000,000 0.49%
- -----------------------------------------------------------------------------------
$ 1,000,000 0.49%
- -----------------------------------------------------------------------------------
Total Bonds
(identified cost $1,000,000) $ 1,000,000
- -----------------------------------------------------------------------------------
Total Investments
(identified cost $160,437,889) $202,733,231 98.86%
- -----------------------------------------------------------------------------------
Other Assets, Less Liabilities $ 2,347,410 1.14%
- -----------------------------------------------------------------------------------
Net Assets $205,080,641 100.00%
- -----------------------------------------------------------------------------------
</TABLE>
(1) Non-income producing security.
(2) Security valued at fair value using methods determined in good faith by or
at the direction of the Trustees.
(3) Restricted security.
(4) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF AUGUST 31, 1999
(EXPRESSED IN UNITED STATES DOLLARS)
<S> <C>
Assets
- -------------------------------------------------------
Investments, at value (identified cost,
$160,437,889) $202,733,231
Cash 2,154,390
Receivable for investments sold 94,320
Dividends and interest receivable 108,025
Deferred organization expenses 5,822
- -------------------------------------------------------
TOTAL ASSETS $205,095,788
- -------------------------------------------------------
Liabilities
- -------------------------------------------------------
Accrued expenses $ 15,147
- -------------------------------------------------------
TOTAL LIABILITIES $ 15,147
- -------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $205,080,641
- -------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $162,784,098
Net unrealized appreciation computed on
the basis of identified cost) 42,296,543
- -------------------------------------------------------
TOTAL $205,080,641
- -------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
AUGUST 31, 1999
(EXPRESSED IN UNITED STATES DOLLARS)
<S> <C>
Investment Income
- ------------------------------------------------------
Dividends (net of foreign taxes,
$164,263) $ 873,403
Interest 26,271
- ------------------------------------------------------
TOTAL INVESTMENT INCOME $ 899,674
- ------------------------------------------------------
Expenses
- ------------------------------------------------------
Investment adviser fee $ 1,141,637
Administration fee 466,036
Trustees fees and expenses 6,318
Custodian fee 119,320
Legal and accounting services 29,890
Interest 23,470
Amortization of organization expenses 2,402
Miscellaneous 10,168
- ------------------------------------------------------
TOTAL EXPENSES $ 1,799,241
- ------------------------------------------------------
Deduct --
Reduction of custodian fee $ 115,253
- ------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 115,253
- ------------------------------------------------------
NET EXPENSES $ 1,683,988
- ------------------------------------------------------
NET INVESTMENT LOSS $ (784,314)
- ------------------------------------------------------
Realized and Unrealized
Gain (Loss)
- ------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $19,325,069
Foreign currency transactions (66,203)
- ------------------------------------------------------
NET REALIZED GAIN $19,258,866
- ------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $57,605,005
Foreign currency 1,201
- ------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $57,606,206
- ------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $76,865,072
- ------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $76,080,758
- ------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS (EXPRESSED IN UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
Increase (Decrease) YEAR ENDED YEAR ENDED
in Net Assets AUGUST 31, 1999 AUGUST 31, 1998
<S> <C> <C>
- -----------------------------------------------------------------------------
From operations --
Net investment loss $ (784,314) $ (887,400)
Net realized gain 19,258,866 9,778,649
Net change in unrealized appreciation
(depreciation) 57,606,206 (37,330,872)
- -----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 76,080,758 $(28,439,623)
- -----------------------------------------------------------------------------
Capital transactions --
Contributions $ 58,763,929 $ 79,343,537
Withdrawals (74,426,211) (58,958,737)
- -----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL TRANSACTIONS $(15,662,282) $ 20,384,800
- -----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 60,418,476 $ (8,054,823)
- -----------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------
At beginning of year $144,662,165 $152,716,988
- -----------------------------------------------------------------------------
AT END OF YEAR $205,080,641 $144,662,165
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA (EXPRESSED IN UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,
---------------------------------
1999 1998 1997
<S> <C> <C> <C>
- -----------------------------------------------------------------
Ratios to average daily net assets
- -----------------------------------------------------------------
Operating expenses 0.95% 1.06% 1.25%
Interest expense 0.01% -- --
Expenses after custodian fee
reduction 0.90% 0.92% 1.18%
Net investment loss (0.42)% (0.49)% (0.81)%
Portfolio Turnover 41% 34% 14%
- -----------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $205,081 $144,662 $152,717
- -----------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 1999
NOTES TO FINANCIAL STATEMENTS
(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 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. 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 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 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.
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premium or discount when required for Federal income tax
purposes.
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 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 must satisfy the applicable source of income and
diversification requirements under the Internal Revenue Code in order for its
investors to satisfy them. The Portfolio will allocate at least annually
among its investors each investor's distributive share of the Portfolio's net
investment income, net realized capital gains, and any other items of income,
gain, loss, deduction or credit.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolio. Pursuant to the custodian agreement, IBT receives a fee
reduced by credits which are determined based on the average daily cash
balances the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are reflected as a reduction of
operating expense on the Statement of Operations.
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
results from fluctuations in foreign currency exchange rates is 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 non-hedging purposes. The
forward foreign currency exchange contracts are adjusted by the daily
exchange rate of the underlying currency and any
18
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
(EXPRESSED IN UNITED STATES DOLLARS)
gains and losses are recorded for financial statement purposes as unrealized
until such time as the contracts have been closed.
I 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, 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, 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% 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, 1999, the fee was equivalent
to 0.61% of the Portfolio's average daily net assets and amounted to
$1,141,637.
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 million, and at reduced rates as daily net assets exceed that
level. For the year ended August 31, 1999, the administration fee was 0.25%
of average net assets and amounted to $466,036.
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, 1999, no significant amounts
have been deferred.
3 Investments
- -------------------------------------------
Purchases and sales of investments other than U.S. Government securities and
short-term obligations aggregated $75,978,691 and $94,634,009, respectively,
for the year ended August 31, 1999.
4 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation/(depreciation) in value of the
investments owned at August 31, 1999, as computed on a federal income tax
basis, were as follows:
<TABLE>
<S> <C>
AGGREGATE COST $ 160,589,151
- -------------------------------------------------------
Gross unrealized appreciation $ 47,879,996
Gross unrealized depreciation (5,735,916)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 42,144,080
- -------------------------------------------------------
</TABLE>
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. 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 $130 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
19
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
(EXPRESSED IN UNITED STATES DOLLARS)
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. The Portfolio did not have any significant borrowings or
allocated fees during the year ended August 31, 1999.
7 Restricted Securities
- -------------------------------------------
At August 31, 1999, the Portfolio owned the following securities
(representing 4.67% 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.
<TABLE>
<CAPTION>
Shares/
Principal
Amount
Date of (000's
Description Acquisition Omitted) Cost Fair Value
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
Preferred Stocks
- -------------------------------------------------------------------------------------------
Arena Pharmaceuticals 1/28/99 354,994 $ 1,238,929 $ 1,238,929
Intrabiotics Pharm, Inc. 11/24/98 333,334 1,000,002 1,000,002
Net Genics, Inc. Convertible,
Series D, Preferred R 3/20/98 250,000 500,000 500,000
Ontogeny, Inc. 3/13/97 600,000 1,500,000 1,830,000
Orchid Biocomputer, Inc. 12/19/97 180,180 1,999,998 1,999,998
Tularik, Inc. 10/14/96 200,000 2,000,000 2,000,000
- -------------------------------------------------------------------------------------------
$ 8,238,929 $ 8,568,929
- -------------------------------------------------------------------------------------------
Warrants
- -------------------------------------------------------------------------------------------
Cambridge Antibody
Technology, Ltd. 08/28/96 15,500 $ 31,000 $ 2,124
Orchid Biocomputer Warrants 05/24/99 50,000 0 0
- -------------------------------------------------------------------------------------------
$ 31,000 $ 2,124
- -------------------------------------------------------------------------------------------
Bonds
- -------------------------------------------------------------------------------------------
Orchid Biocomputers,
9.75% 5/24/00 05/24/99 1,000 $ 1,000,000 $ 1,000,000
- -------------------------------------------------------------------------------------------
$ 1,000,000 $ 1,000,000
- -------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 1999
INDEPENDENT ACCOUNTANTS' 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, 1999, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and supplementary data for each of the periods indicated, in
conformity with generally accepted accounting principles. 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 generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at August
31, 1999 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 1, 1999
21
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO
Officers
James B. Hawkes
President and Trustee
Samuel D. Isaly
Vice President and
Portfolio Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking
Emeritus, Harvard University Graduate School of Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
22
