EV Classic
Greater China
Growth Fund
[LOGO]
[PHOTO OF CHINESE CITY WITH HARBOR OMITTED]
Semi-Annual Shareholder Report
February 29, 1996
To Shareholders
EV Classic Greater China Growth Fund had a total return of 8.5% for the
six months ended February 29, 1996. That performance was the result of a
rise in net asset value per share from $8.12 on August 31, 1995, to
$8.81 on February 29, 1996, and does not include the effect of the
Fund's 1 percent contingent deferred sales charge on shareholders
redeeming within the first year. By comparison, the Peregrine Asia 100 -
an unmanaged index of common stocks in the Greater China region - rose
6.2% during the same period.
China remains a favorite target for foreign investment...
China continued to attract foreign investors in the past year. Foreign
investment in China rose to $40 billion last year, a 30% increase from
the previous year, according to China's State Planning Commission. That
increase was all the more remarkable in light of China's efforts to
moderate the rate of economic growth and make inroads on inflation.
Hong Kong, Singapore rank high in competitiveness...
In December, a survey conducted by the Heritage Foundation named Hong
Kong the freest economy in the world. The survey of 142 nations studied
government policies on trade, taxation, foreign investment, and money
supply, as well as the extent to which businesses engage in black market
activity. Singapore, Hong Kong's China-region neighbor ranked second in
the survey. Another survey, conducted in September by
the Switzerland-based World Economic Forum, ranked Hong Kong the third
most competitive economy in the world, behind the U.S.
and Singapore.
Greater China increasingly viewed as a model for emerging nations....
These surveys are important because they formally recognize the extent
to which the governments of these Greater China nations are committed to
the further development of market economies. Unlike some other emerging
nations which are hampered by government interference, anti-growth
bureaucracy, and burdensome tariffs, these nations are promoting free
enterprise. Naturally, past trends cannot guarantee future developments.
But, with the active encouragement of these Greater China nations,
companies should continue to post impressive growth. We expect that
Greater China Growth Portfolio will share in that growth.
[PHOTO OF JAMES B. HAWKES OMMITTED]
Sincerely,
/S/James B. Hawkes
James B. Hawkes,
President
April 20, 1996
Management Discussion: Adaline M. Ko
An interview with Adaline M. Ko, Director of Lloyd George Investment
Management, and Investment Adviser to the Greater China
Growth Portfolio.
Q: Adaline, how have the China region markets fared during the
past six months?
A: The China region markets have generated an impressive turnaround in
recent months, although the six-month period got off to a rather
difficult start. November was especially turbulent for the China region,
with a renewal of the "tequila effect" in many emerging markets, first
evidenced a year ago when Mexico threatened to default. In addition, the
markets were disappointed by the ongoing U.S. budget stalemate, which
dampened hopes for lower interest rates. Finally, markets such as Korea
and Taiwan suffered from internal and external political pressures,
which dampened investors' enthusiasm.
[PHOTO OF ADALINE M. KO OMMITTED, CAPTION BELOW PHOTO READS:]
Adaline M. Ko
Fortunately, market sentiment turned significantly more positive in
December as the Federal Reserve lowered U.S. interest rates. And in the
first two months of 1996, several markets logged handsome gains: The
Philippines rose 13.6%; Hong Kong, 11.1%; Malaysia, 9.9%; and Singapore,
6.8%. Clearly, the region's markets have bounced back nicely between the
end of 1995 and February 29, especially considering the psychological
barriers the region has faced.
Q: Where have you been focusing the Portfolio's investments?
A: The country weightings within the Portfolio are little changed in the
past six months. The Portfolio's largest country weighting remains Hong
Kong, at 43% of total equity investments, as of February 29. Thailand
was second, at 15%, followed by Singapore, at 14%, Malaysia, at 8%, and
the Republic of Korea, at 7%. Banking and financial services stocks
constitute the largest industry weighting. Rising demand for loans and
financial services make the financial sector attractive, especially with
interest rates falling in many markets. Manufacturing is the second
largest industry sector. China region manufacturers maintain their
significant cost advantage and have benefited further from a
strengthening dollar.
The third largest industry weighting is property companies. The property
sector composes an unusually large portion of Hong Kong's Hang Seng
Index. Property prices have firmed significantly since November and
should provide a strong underpinning for the equity market.
[GRAPHIC OMITTED -- MAP OF CHINA]
HEADLINE READS: Driven by rising economic and consumer needs,
China is emphasizing new airport construction in major
economic zones.
[BULLET] BEIJING Airport...$700 million terminal due in 1999.
[BULLET] SHANGHAI Airport...handles 15 million passengers annually.
[BULLET] GUANGZHOU Airport...soon to be rebuilt in Pudong economic zone.
Source: Civil Aviation Administration of China
[TEXT BOX]
CHINA'S AIRPORTS IN PROFILE:
Total airports: 132
New construction costs: $9 billion
Aircraft in service by year 2000: 640
Annual passenger growth rate: 20%
Q: What were some of the Portfolio's top performers during the period?
A: A number of the Portfolio's large blue chip holdings were especially
strong performers. For example, Hutchison Whampoa rose over 30% in the
six months. Hutchison has business interests in property development,
utilities, telecommunications, and retailing. But the company's
container terminal business is generating the fastest revenue growth.
Container terminals are a high-margin business, especially in China
where the government continues to emphasize building infrastructure and
increasing exports. Hutchison has spent $1 billion in the past five
years to develop its port interests in China. That investment has paid
off handsomely, as the company now maintains facilities in such key
ports as Shanghai, Yantian in southern China, and several small feeder
ports in the Pearl River delta.
Another strong performer during the period was HSBC Holdings, which rose
over 20%. HSBC is the holding company for Hong Kong and Shanghai Bank,
the colony's largest bank, with assets over $270 billion. One-third of
the company's assets are employed in Hong Kong or elsewhere in Greater
China. HSBC's long reach and powerful asset base have proved beneficial
in establishing it as the most active foreign bank in mainland China.
Q: You mentioned the strong correlation between the Hong Kong property
market and the equity market. Could you describe some of the Portfolio's
property company holdings?
A: Yes. We have focused on a mix of property companies that provide a
wide exposure in terms of geography and property types. That
diversification helps limit risk while giving the Portfolio access to
growth in many different markets. In the residential sector, one of the
Portfolio's largest investments is Cheung Kong Holdings, Hong Kong's
largest residential property developer. The company is also active in
mainland China, building residential developments and container
terminals. In the commercial sector, New World Development is a widely
diversified developer with interests in commercial office buildings and
hotels in Hong Kong, China and Thailand. The company also is involved in
the construction of power plants on the mainland. Finally, in the rental
segment of the property market, the Portfolio has an investment in Sun
Hung Kai Properties, Hong Kong's largest integrated property developer.
The company is careful to balance its rental income with trading
profits. Sun Hung Kai is widely regarded as one of the colony's best
managed companies.
[PIE CHART OMITTED. OVERLYING TEXT READS:]
Greater China Growth Portfolio: Asset Allocation
Based on market value as of February 29, 1996
China - 1.2%
Indonesia - 1.8%
Other - 2.4%
Taiwan - 4.1%
Philippines - 4.7%
So. Korea - 7.3%
Malaysia - 8.0%
Singapore - 13.9%
Thailand - 14.6%
Hong Kong - 42.0%
Q: Thailand and Singapore are the Portfolio's next largest
concentrations. Where have you invested in those countries?
A: The Portfolio's largest investment in Singapore is Overseas Union
Bank (OUB). Singapore is well-regarded throughout Greater China for its
banking expertise. As the region continues to build its infrastructure
in coming years, the need for financing and for the financial acumen
of the Singapore banking community will become increasingly important.
Singapore has four major banks, of which OUB is the smallest. The
company has a major advantage over many competitors through its
long-standing business relationships with China's entrepreneurs and
trading community. Having significantly increased its capital in the
past year, the bank should be able to expand its asset base through-out
China. In addition to its Singapore offices, OUB has branches in Hong
Kong and offices on the mainland in Beijing and Shenzhen.
[GRAPHIC -- MAP OF CHINA WITH 3 BAR CHARTS OMITTED]
CHINA'S PROGRESS IN 1995 -- MANAGEABLE GROWTH, LOWER INFLATION AND
EXPANDED TRADE.
Source: China State Statistical Bureau
REAL GDP GROWTH
Annual % Change
1990 - 3.9%
1991 - 8.2%
1992 - 12.8%
1993 - 13.5%
1994 - 11.8%
1995 - 20.2%
INFLATION
Annual % Change
1990 - 2.5%
1991 - 4.5%
1992 - 6.0%
1993 - 15.0%
1994 - 21.7%
1995 - 14.8%
TRADE BALANCE
$ Billions
1990 - 8 Billion
1991 - 7 Billion
1992 - 4.5 Billion
1993 - (12) Billion
1994 - 5.3 Billion
1995 - 20 Billion
In Thailand, the Portfolio's largest investment was Siam Commercial
Bank. Like OUB in Singapore, Siam Commercial does not possess the
largest banking franchise in its market. Nevertheless, the bank has done
a good job of increasing its assets and is therefore poised to expand
its activities to mainland China. The company plans to open branches
soon in Shanghai and Canton.
Q: Some markets - Korea and Taiwan - didn't fare especially well during
the six- month period. How would you assess those markets?
A: Korea and Taiwan were among the region's laggards in this period, as
politics weighed heavily on both markets. In Korea, the political
intrigues are internal, tied to slush fund scandals and the trials of
two former presidents. In Taiwan, the political pressures have been
external, as the tensions continue between mainland China and Taipei.
Interestingly, while these political tensions have restrained
performance, there are positive developments to report in both
countries.
[GRAPHIC OF SIMPLIFIED HOUSES OMITTED. OVERLAY TEXT READS:]
The Hong Kong property market rebounded in 1995, helping to rally the
stock market.
[BULLET] Low interest rates provide strong support for real estate
prices.
[BULLET] Urban population is expected to rise 88% in next 15 years.
[BULLET] Hong Kong prices demand high premiums, as high as HK$4000. per
sq./ft.
Source: The Wall Street Journal
Each country has taken steps in recent months to open their markets to
foreign investors. Taiwan has raised the level of ownership in Taiwanese
companies allowed foreign investors, and importantly, will now permit
ownership by foreign individuals. Separately, the Taiwan market is soon
to be included in the Dow Jones World Stock Index, - an unmanaged index
of common stocks in many global markets - which should draw an increasing
interest from institutional investors. Fundamentally, while the recent
saber-rattling has provided a temporary distraction, economic growth should
still be around 6% in 1996, according to the Ministry of Finance. Meanwhile,
corporate profits are expected to rise around 25%, suggesting that Taiwan
remains one of the region's great values. As the tensions abate and interest
rates move lower, Taiwan could be poised for a strong recovery.
Korea has raised to 18% the percentage that foreign investors may own of
most listed stocks. That move, which took effect on
April 1, is expected to encourage a further wave of investment into the
Korean market. Still, according to government estimates, the Korean
economy is expected to grow in the 7.5% range in 1996, one of the
fastest-growing economies in Greater China. While that is a slower
growth rate than last year, it should nevertheless encourage interest
rates to fall somewhat. Earnings growth remains strong for Korean
companies, around 20% annually, well above the market PE ratio of 12.
Thus, valuations in Korea remain very attractive.
Q: What were some of the Portfolio's investments in smaller companies?
A: We've made a number of purchases of smaller, consumer-related
companies in Hong Kong that have good exposure to China's increasing
consumer spending. The consumer sector is not as negatively impacted by
austerity measures as other sectors. In addition, the sector has proved
a prime beneficiary of rising per capita income in China. One such company
was Tinyi Noodles, the leading maker of instant noodles in China. Tinyi,
which started in 1992, boasts sales of $300 million, especially
impressive given the complexities of managing the logistics of China.
With proven leadership and a strong distribution network, the company
forecasts 25% volume growth in the coming year.
Another small company purchase was Guangnan, a food distribution and
processing business. The company has gradually transformed itself from
a purely local distributor to a diversified food manufacturer. Enjoying
an extensive distribution network, Guangnan is well-positioned to tap
the growth potential of Greater China and envisions 18% earnings growth
over the next three years.
Recent U.S. Investments* in China:
(bullet) Coca-Cola Co. - the global beverage giant announced plans to
open seven additional bottling plants in China by early 1997. The
company saw sales climb 38% in 1995 to 188 million cases, and predicts a
doubling in its China sales every three years.
(bullet) Pratt & Whitney - the aircraft engine maker has launched a
joint venture with one of China's state-run aircraft makers. The $22
million deal with Chengda Engine Co., of Sichuan Province, represents
the first foreign equity stake in a Chinese aircraft company.
(bullet) American International Group - the insurance company's Hong
Kong-based subsidiary has announced a $1 billion infrastructure fund.
The company, whose parent AIG long historical roots in China, reaped $50
million in premiums in China alone in 1995.
* These U.S. companies are
not investments of the Portfolio.
Q: What are the latest economic developments in China?
A: China made notable economic progress on several fronts in 1995. GDP
grew an estimated 10.2%. While that is a bit higher than the
government's target of 8-to-9%, it still represents a slowing of the
economy, a major government goal. Inflation, which has been a perenniel
problem, fell to 14.8% at year end from 21.7% a year earlier. These
figures show that China has succeeded in engineering its own version of
a "soft landing" by bringing down inflation while maintaining a healthy
growth rate.
One of the most interesting developments in China's economic planning is
a shift in the allocation of fixed asset investment. Increasingly,
investment is focusing away from the coastal cities, which have suffered
the greatest inflation, to the agricultural areas and central regions.
This should spread wealth to the vast interior of the country,
discourage large population shifts, and encourage enterprises in the
interior regions, while helping to cool the inflationary pressures in
the coastal economies.
Q: In closing, Adaline, what is your current outlook for the Greater
China markets?
A: The market will likely remain volatile in the short-term, which is a
risk investors should be prepared for in these markets. Actually,
considering the significant rally since November, a consolidation is a
fairly healthy development. The fundamentals of the China region markets
remain encouraging, with a strong corporate profit outlook. Lower
interest rates are likely to provide an additional boost. Of course,
past performance does not necessarily indicate future trends, but I
believe the markets will, in the long run, ignore political posturing
and focus on the region's impressive economic accomplishments. That is
still the heart of the Greater China story and should continue to
provide patient investors with attractive long-term opportunities.
EV Classic Greater China Growth Fund
Financial Statements
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
February 29, 1996 (Unaudited)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Investment in Greater China Growth Portfolio, at value (Note 1A)
(identified cost, $19,544,392) $21,686,712
Receivable for Fund shares sold 63,990
Deferred organization expenses (Note 1D) 28,402
-----------
Total assets $21,779,104
Liabilities:
Payable for Fund shares redeemed $176,303
Payable to affiliate --
Trustees' fees 43
Accrued expenses 22,165
-----------
Total liabilities 198,511
-----------
Net Assets for 2,450,521 shares of beneficial interest outstanding $21,580,593
===========
Sources of Net Assets:
Paid-in capital $23,127,348
Accumulated net realized loss on investment transactions from Portfolio (3,408,816)
Accumulated distributions in excess of net investment income (280,259)
Unrealized appreciation of investments from Portfolio
(computed on the basis of identified cost) 2,142,320
-----------
Total $21,580,593
===========
Net Asset Value, Offering Price, and Redemption Price Per Share
($21,580,593 (divided by) 2,450,521 shares of beneficial interest) $8.81
=====
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the Six Months Ended February 29, 1996 (Unaudited)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income (Note 1B):
Investment income allocated from Portfolio (net of foreign taxes of $20,405) $174,909
Expenses allocated from Portfolio (110,052)
----------
Net investment income from Portfolio $64,857
Expenses --
Management fee (Note 3) $25,548
Compensation of Trustees not members of the
Administrator's organization (Note 3) 63
Custodian fee (Note 3) 1,354
Distribution fees (Note 6) 102,192
Transfer and dividend disbursing agent fees 14,382
Printing and postage 22,617
Legal and accounting services 9,810
Registration fees 22,155
Amortization of organization expenses (Note 1D) 4,986
Miscellaneous 2,628
----------
Total expenses 205,735
----------
Net investment loss ($140,878)
----------
Realized and Unrealized Gain (Loss) from Portfolio:
Net realized gain (loss) from Portfolio (identified cost basis) --
Investment transactions (net of foreign capital gains taxes of $20,854) $68,273
Foreign currency (28,806)
----------
Net realized gain $39,467
Change in unrealized appreciation of investments 1,774,070
----------
Net realized and unrealized gain $1,813,537
----------
Net increase in net assets from operations $1,672,659
==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
- -------------------------------------------------------------------------------------------------------------
Six Months Ended
February 29, 1996 Year Ended
(Unaudited) August 31, 1995
--------------- ---------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment loss ($140,878) ($135,671)
Net realized gain (loss) from Portfolio 39,467 (2,187,569)
Change in unrealized appreciation (depreciation)
from Portfolio 1,774,070 (194,248)
----------- -----------
Net increase (decrease) in net assets from operations $1,672,659 ($2,517,488)
----------- -----------
Distributions to shareholders --
In excess of net investment income $ -- ($59,285)
----------- -----------
Transactions in shares of beneficial interest (Note 4) --
Proceeds from sale of shares $6,745,522 $15,194,416
Net asset value of shares issued to shareholders
in payment of distributions declared -- 54,632
Cost of shares redeemed (8,045,234) (17,894,214)
----------- -----------
Decrease in net assets from Fund share transactions ($1,299,712) ($2,645,166)
----------- -----------
Net increase (decrease) in net assets $372,947 ($5,221,939)
Net Assets:
At beginning of period 21,207,646 26,429,585
----------- -----------
At end of period (including distributions in excess of net
investment income of $280,259 and
$139,381, respectively) $21,580,593 $21,207,646
=========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
- ---------------------------------------------------------------------------------------------------------
Six months ended For the Year Ended August 31,
February 29, 1996 -----------------------------
(Unaudited) 1995 1994*
---------- ---------- ----------
<S> <C> <C> <C>
Net Asset Value, beginning of period $8.120 $9.030 $10.000
------ ------ ------
Income (Loss) from Investment Operations:
Net investment loss ($0.061) ($0.037) ($0.033)
Net realized and unrealized
loss on investments $0.751 ($0.853) ($0.937)
------ ------ ------
Total income (loss) from investment operations $0.690 ($0.890) ($0.970)
------ ------ ------
Less distributions:
In excess of net investment income $ -- ($0.020) $ --
------ ------ ------
Net Asset Value, end of period $8.810 $8.120 $9.030
====== ====== ======
Total Return (2) 8.50% (9.85%) (9.70%)
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $21,581 $21,208 $26,430
Ratio of net expenses to average daily net assets (1) 3.20%+ 3.04% 2.75%+
Ratio of net investment loss to average daily net assets (1.38%)+ (0.59%) (0.74%)+
+ Computed an annualized basis.
(1) Includes the Fund's share of Greater China Growth Portfolio's allocated expenses.
(2) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the
net asset value on the last day of each period reported. Dividends and distributions, if any, are
assumed to be reinvested at the net asset value on the record date. Total return is computed on a non-
annualized basis.
* For the period from December 28, 1993 (start of business) to August 31, 1994.
See notes to financial statements
</TABLE>
Notes to Financial Statements (Unaudited)
(1) Significant Accounting Policies
EV Classic Greater China Growth Fund (the Fund) is a diversified series
of Eaton Vance Growth Trust (the Trust). The Trust is an entity of the
type commonly known as a Massachusetts business trust and is registered
under the Investment Company Act of 1940, as amended, as an open-end,
management investment company. The Fund invests all of its investable
assets in interests in Greater China Growth Portfolio (the Portfolio), a
New York Trust, having the same investment objective as the Fund. The
value of the Fund's investment in the Portfolio reflects the Fund's
proportionate interest in the net assets of the Portfolio (3.7% at
February 29, 1996). The performance of the Fund is directly affected by
the performance of the Portfolio. The financial statements of the
Portfolio, including the portfolio of investments, are included
elsewhere in this report and should be read in conjunction with the
Fund's financial statements. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation
of its financial statements. The policies are in conformity with
generally accepted accounting principles.
A. Investment Valuations - Valuation of securities by the Portfolio is
discussed in Note 1 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
generally accepted accounting principles.
C. Federal Taxes - The Fund's policy is to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies
and to distribute to shareholders each year all of its net investment
income, and any net realized capital gains. Accordingly, no provision
for federal income or excise tax is necessary. At August 31, 1995, the
Fund, for federal income tax purposes, had a capital loss carryover of
$1,171,961 which will reduce the taxable income arising from future net
realized gain on investments, 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 or excise tax. Such capital loss
carryover will expire on August 31, 2002. Additionally, net capital
losses of $1,405,545 attributable to security and currency transactions
included after October 31, 1994, are treated as arising on the first day
of the Fund's next taxable year.
D. Deferred Organization Expenses - Costs incurred by the Fund in
connection with its organization, including registration costs, are
being amortized on the straight-line basis over five years.
E. Distribution Costs - For book purposes, commissions paid on the sale
of Fund shares and other distribution costs are charged to operations.
For tax purposes, commissions paid were charged to paid-in capital prior
to November 23, 1994 and subsequently charged to operations. The change
in the tax accounting practice was prompted by a recent Internal Revenue
Service ruling and has no effect on either the Fund's current yield or
total return (Note 6).
F. Interim Financial Information - The interim financial statements
relating to February 29, 1996 and for the six month period then ended
have not been audited by independent certified public accountants, but
in the opinion of the Fund's management, reflect all adjustments,
consisting only of normal recurring adjustments necessary for the fair
presentation of the financial statements.
(2) Distributions to Shareholders
It is the present policy of the Fund to make at least one distribution
annually (normally in December) of all or substantially all of the
investment income allocated to the Fund by the Portfolio, less the
Fund's direct and allocated expenses and at least one distribution
annually of all or substantially all of the net realized capital gains
(reduced by any available capital loss carryforwards from prior years)
allocated by the Portfolio to the Fund, if any.
Shareholders may reinvest all distributions in shares of the Fund at the
per share net asset value as of the close of business on the record
date. The Fund distinguishes between distributions on a tax basis and a
financial reporting basis. Generally accepted accounting principles
require that only distributions in excess of tax basis earnings and
profits be reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in
temporary over distributions for financial statement purposes are
classified as distributions in excess of net investment income or
accumulated net realized gains. Permanent differences between book and
tax accounting relating to distributions are reclassified to paid-in
capital.
(3) Management Fee and Other Transactions with Affiliates
The management fee is earned by Eaton Vance Management (EVM) as
compensation for management and administration of the business affairs
of the Fund. The fee is based on a percentage of average daily net
assets. For the six months ended February 29, 1996 the fee was
equivalent to .25% of the Fund's average daily net assets for such
period and amounted to $25,548. Except as to Trustees of the Fund who
are not members of EVM's organization, officers and Trustees receive
remuneration for their services to the Fund out of such management fee.
Investors Bank & Trust Company (IBT) serves as custodian of the Fund.
Prior to November 10, 1995 IBT was an affiliate of EVM. Pursuant to the
custodian agreement, IBT receives a fee reduced by credits which are
determined based on the average daily cash balances the Fund maintains
with IBT. Certain officers and Trustees of the Fund and the Portfolio
are officers and directors/trustees of the above organizations. In
addition, investment adviser, administrative fees, and custody fees are
paid by the Portfolio to EVM and its affiliates. See Note 2 of the
Portfolio's Notes to Financial Statements which are included elsewhere
in this report.
(4) Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Transactions in Fund shares were as follows:
Six Months Ended
February 29, 1996 For the Year Ended
(Unaudited) August 31, 1995
-------------- --------------
Sales 809,751 1,851,528
Issued to shareholders
electing to receive
payments of distributions
in Fund shares -- 6,929
Redemptions (971,238) (2,173,165)
------- ---------
Net decrease (161,487) (314,708)
======= =========
(5) Investment Transactions
Increases and decreases in the Fund's investment in the Portfolio
aggregated $6,696,241 and $8,211,262, respectively.
(6) Distribution Plan
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule
12b-1 under the Investment Company Act of 1940. The Plan requires the
Fund to pay the Principal Underwriter, Eaton Vance Distributors, Inc.
(EVD) amounts equal to 1/365 of 0.75% of the Fund's daily net assets,
for providing ongoing distribution services and facilities to the Fund.
The Fund will automatically discontinue payments to EVD during any
period in which there are no outstanding Uncovered Distribution Charges,
which are equivalent to the sum of (i) 6.25% of the aggregate amount
received by the Fund for shares sold plus, (ii) distribution fees
calculated by applying the rate of 1% over the prevailing prime rate to
the outstanding balance of Uncovered Distribution Charges of EVD reduced
by amounts theretofore paid to EVD. The amount payable to EVD with
respect to each day is accrued on such day as a liability of the Fund
and, accordingly, reduces the Fund's net assets. The Fund paid or
accrued $76,644 to or payable to EVD for the six months ended February
29, 1996, representing 0.75% of average daily net assets. At February
29, 1996 the amount of Uncovered Distribution Charges of EVD calculated
under the Plan was approximately $2,791,465.
In addition, the Plan permits the Fund to make monthly payments of
service fees to the Principal Underwriter in amounts not expected to
exceed 0.25% of the Fund's average daily net assets for any fiscal year.
The Fund paid or accrued service fees to or payable to EVD for the six
months ended February 29, 1996 in the amount of $25,548. EVD makes
monthly service fee payments to Authorized Firms in amounts anticipated
to be equivalent to 0.25%, annualized, of the assets maintained in the
Fund by their customers. Service fee payments are made for personal
services and/or the maintenance of shareholder accounts.
Certain officers and Trustees of the Fund are officers or directors of
EVD.
(7) Contingent Deferred Sales Charge
Shares purchased on or after January 30, 1995 and redeemed during the
first year after purchase (except shares acquired through the
reinvestment of distributions) generally will be subject to a contingent
deferred sales charge at a rate of one percent of redemption proceeds,
exclusive of all reinvestments and capital appreciation in the account.
No contingent deferred sales charge is imposed on exchanges for shares
of other funds in the Eaton Vance Classic Group of Funds or Eaton Vance
Money Market Fund which are distributed with a contingent deferred sales
charge. EVD received approximately $610 of CDSC for the six months ended
February 29, 1996.
<TABLE>
<CAPTION>
Greater China Growth Portfolio
Portfolio of Investments
February 29, 1996
(Unaudited)
- ----------------------------------------------------------------------------------
STOCKS - 98.1%
- ----------------------------------------------------------------------------------
Name of Company Shares Value
- ----------------------------------------------------------------------------------
<S> <C> <C>
China -- 1.2%
Shanghai New Asia Group Ltd. 400,000 $243,200
Shanghai Tyre and Rubber 2,602,170 629,725
Shanghai Yaohua Pilkington 4,770,500 4,770,500
Shenzhen China Bicycle Co. 8,394,860 1,411,603
------------
$7,055,028
------------
Hong Kong -- 42.0%
Chen Hsong Holdings 10,820,000 $6,157,945
Cheung Kong Holdings Ltd. 3,950,000 27,461,956
China-HK Photo Products Hld. 5,758,000 3,370,126
China Merchants Hai Hong Holdings 8,000,000 2,716,284
China Resources Enterprises 4,966,000 2,842,339
China Travel International 10,322,000 2,283,052
CIM Company Ltd. 1,800,000 3,026,717
Cosco Pacific Ltd. 6,610,000 5,258,144
Founder Hong Kong Ltd. 1,000,000 468,882
Giordano Holdings Ltd. 3,204,000 3,166,494
Guangnan Holdings Ltd. 8,780,000 4,485,879
Hang Seng Bank 760,000 7,471,075
Hong Kong Electric Co. 1,429,500 4,844,415
Hong Kong Land Holdings Ltd. 3,020,000 6,553,400
Hong Kong Telecommunications Ltd. 2,773,000 5,433,985
HSBC Holdings PLC 1,720,000 27,587,099
Hutchison Whampoa 4,400,000 27,887,184
Jardine Matheson Holdings 590,800 4,726,400
Li & Fung Ltd. 7,184,000 6,783,363
National Mutual Ltd. 14,694,000 14,254,671
New World Development 4,000,000 19,505,507
New World Infrastructure 7,497 16,146
Ng Fung Hung Ltd. 9,000,000 4,569,178
CP Pokphand Co. Ltd. 22,586,000 12,431,909
San Miguel Brewery Ltd. 3,170,000 1,568,363
Shanghai Petrochemical 17,218,000 5,734,768
Siu Fung Ceramics Holdings 28,284,000 4,536,474
Sun Hung Kai Properties Ltd. 1,427,000 12,735,880
Tingyi (Cayman Island) Holding Co. 12,800,000 3,518,235
Varitronix International Ltd. 3,782,000 7,288,929
VTECH Holdings Ltd. 2,496,000 4,197,047
Wharf Holdings 941,200 3,646,150
Yizheng Chemical Fibre Co. 3,716,000 1,033,404
Zhenhai Refining & Chemical Co. 3,158,000 898,650
------------
$248,460,050
------------
Indonesia -- 1.8%
PT HM Sampoerna (Foreign) 521,000 $6,235,554
PT Indah Kiat Pulp & Paper 6 5
PT Telecomunikasion 2,752,500 4,395,597
------------
$10,631,156
------------
Republic of Korea -- 7.3%
Hansol Paperboard Co. Ltd. 8 $ 128
Korea Electric Power Corp. 301,200 12,706,327
Korea Exchange Bank 999,499 15,005,319
Pohang Iron & Steel Co. Ltd. 52,630 4,033,464
Samsung Electronics (New) 8,363 1,378,657
Samsung Electronics (Ord) 29,138 4,803,389
Samsung Electronics 620 102,322
Samsung Fire & Marine Insurance 4,030 2,792,718
Samsung Fire & Marine Insurance Pfd. 3,920 2,107,348
------------
$42,929,672
------------
Malaysia -- 8.0%
Berjaya Sports Toto Bhd 1,200,000 $ 3,317,387
DCB Holdings Bhd 1,316,000 3,999,294
Land & General Bhd 3,780,500 8,449,867
Genting Bhd 704,000 6,294,095
Hong Leong Industries Bhd 737,000 3,756,960
Malayan Banking Bhd 400,000 3,654,615
Malaysian Airline System Bhd 300,000 999,922
RJ Reynolds Bhd 1,000,000 2,529,213
Sime Darby Bhd 3,800,000 10,207,043
Tan Chong Motor Holdings Bhd 2,854,000 3,984,095
------------
$47,192,491
------------
The Philippines -- 4.7%
Bacnotan Consolidated Industries 544,290 $2,247,500
Belle Corp. 40,391,000 5,636,672
Philippine Long Distance Telephone 166,700 9,856,137
Pilipino Telephone 7,200,000 8,396,100
San Miguel Corp. Class B 21,090 77,006
SM Prime Holdings 5,831,900 1,716,904
------------
$27,930,319
------------
Singapore -- 13.9%
Cerebos Pacific Ltd. 1,129,000 $9,831,292
City Developments 877,000 7,140,177
Clipsal Industries Holdings Ltd. 2,400,000 5,112,000
Clipsal Industries Warrants 234,000 140,400
DBS Land 980,000 3,850,619
Development Bank of Singapore 470,000 6,688,142
Far East Levingston 500,000 2,973,451
Fraser & Neave Ltd. 150,000 2,007,080
Hotel Properties 1,400,000 2,537,345
Jurong Shipyards 500,000 3,168,142
Overseas Union Bank 1,916,000 13,971,540
Sembawang Maritime 2,199,000 6,849,982
Singapore Airlines Ltd. 925,000 9,299,115
Straits Steamship Land 2,452,500 8,403,611
Straits Steamship Land Warrants 613,125 347,257
------------
$82,320,153
------------
Taiwan -- 4.1%
China Steel 7,935,000 $5,829,042
China Trust Commercial Bank 1,216,000 1,804,233
CIS Technology Inc. 1,640,000 2,576,478
Formosa Chemical 1,477,538 1,241,222
Formosa Plastics 876,900 1,278,773
Grand Pacific Petrochemical 740,000 874,609
Nan Ya Plastic 3,419,799 5,036,798
Taiwan Glass Industrial Corp. 919,000 1,838,134
Taiwan Semiconductor 723,600 2,039,385
Yang Ming Marine Transport 1,500,000 1,532,839
------------
$24,051,513
------------
Thailand -- 14.6%
Bangkok Bank Co. Ltd. 291,200 $3,787,967
Dhana Siam Finance 185,000 1,049,177
Dhana Siam Finance (Foreign) 611,300 3,951,691
Electricity Generating (Foreign) 4,465,870 17,711,164
Finance One Ltd. 581,600 4,267,143
Krung Thai Bank Ltd. (Foreign) 1,298,000 6,125,798
Nava Finance & Securities 1,552,000 4,708,626
Saha Union Corp. Ltd. (Local) 1,555,300 2,158,854
Siam Cement (Local) 201,410 9,856,829
Siam Cement (Foreign) 91,820 4,777,626
Siam Commercial Bank 1,426,600 23,309,903
Thailand Military Bank (Foreign) 967,000 4,985,524
------------
$86,690,302
------------
United States -- 0.5%
AES China Generating Co. Ltd. 210,000 $1,837,500
Pacific Basin Bulk Shipping 84,500 1,003,438
Pacific Basin Bulk Shipping (Warrants) 84,500 68,657
------------
$2,909,595
------------
Total Common Stocks (Identified cost, $474,087,738) $580,170,279
Other Assets - 1.9% 11,529,739
------------
Net Assets - 100.0% $591,700,018
============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Statements
Statement of Assets and Liabilities
February 29, 1996 (Unaudited)
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Investments, at value (Note 1A) (Identified cost, $474,087,738) $580,170,279
Cash 6,129,775
Cash denominated in foreign currencies (cost, $5,647,604) 5,450,971
Dividends and interest receivable 730,229
Deferred organization expenses (Note 1C) 48,951
------------
Total assets $592,530,205
Liabilities:
Payable for investments purchased $797,855
Payable to affiliate --
Trustees' fees 1,250
Accrued expenses 31,082
------------
Total liabilities 830,187
------------
Net Assets applicable to investors' interest in Portfolio $591,700,018
============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals $485,817,888
Net unrealized appreciation of investments
(computed on the basis of identified cost) 106,082,541
Net unrealized depreciation of foreign currencies (200,411)
------------
Total $591,700,018
============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Statements (continued)
Statement of Operations
For the Six Months Ended February 29, 1996 (Unaudited)
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Income --
Dividends (net of foreign taxes of $570,674) $4,814,767
Interest 71,088
-----------
Total income $4,885,855
Expenses --
Investment adviser fee (Note 2) $2,128,304
Administration fee (Note 2) 709,434
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 8,750
Custodian fee (Note 2) 457,991
Legal & audit fees 41,647
Amortization of organization expenses (Note 1C) 14,280
Miscellaneous 4,063
-----------
Total expenses $3,364,469
Deduct --
Reduction of custodian fee (Note 2) 284,288
-----------
Net expenses 3,080,181
-----------
Net investment income $1,805,674
-----------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) --
Investment transactions (net of foreign
capital gains taxes of $584,679) $1,945,533
Foreign currency (798,360)
-----------
Net realized gain $1,147,173
Change in unrealized appreciation --
Investments (identified cost basis) $48,377,417
Foreign currency 555,988
-----------
Increase in unrealized appreciation 48,933,405
-----------
Net realized and unrealized gain on investments $50,080,578
-----------
Net increase in net assets from operations $51,886,252
===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Statements (continued)
Statements of Changes in Net Assets
- ---------------------------------------------------------------------------------------------
Six Months Ended
February 29, 1996 Year Ended
Unaudited) August 31, 1995
--------------- ---------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $1,805,674 $8,672,881
Net realized gain (loss) on investment transactions 1,147,173 (29,095,245)
Change in unrealized appreciation
of investments and foreign currency 48,933,405 (40,394,548)
------------ ------------
Increase (decrease) in net assets from operations $ 51,886,252 $(60,816,912)
------------ ------------
Capital transactions --
Contributions $61,061,582 $129,870,307
Withdrawals (111,664,874) (211,249,014)
------------ ------------
Decrease in net assets resulting from capital transactions ($50,603,292) $(81,378,707)
------------ ------------
Total increase (decrease) in net assets $1,282,960 $(142,195,619)
Net Assets:
At beginning of period 590,417,058 732,612,677
------------ ------------
At end of period $591,700,018 $590,417,058
============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Statements (continued)
Supplementary Data
- --------------------------------------------------------------------------------------------------------
Six months ended Year Ended August 31,
February 29, 1996 -------------------------------
(Unaudited) 1995 1994 1993*
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Ratios (As a percentage of average net assets):
Expenses 1.18%+ 1.10% 1.15% 1.38%+
Net investment income 0.63%+ 1.35% 0.73% 0.38%+
Portfolio Turnover 22% 32% 36% 18%
Average Commission Rate Paid ** 0.59%
Net Assets, end of period (000 omitted) $591,700 $590,417 $732,613 $208,043
+ Computed on an annualized basis.
* For the period from the start of business, October 28, 1992, to August 31, 1993.
** 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. Amount is computed on a non-annualized basis.
See notes to financial statements
</TABLE>
Notes to Financial Statements (Unaudited)
1) Significant Accounting Policies
Greater China Growth Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940 as a diversified, open-end investment
company which was organized as a trust under the laws of the State of
New York on September 1, 1992. The Declaration of Trust permits the
Trustees to issue interests in the Portfolio. The following is a summary
of the significant accounting policies of the Portfolio. The policies
are in conformity with generally accepted accounting principles.
A. Investment Valuations - Marketable securities, including options,
that are listed on foreign or U.S. securities exchanges or in the NASDAQ
National Market System are valued at closing sale prices, on the
exchange where such securities are principally traded. Futures positions
on securities or currencies are generally valued at closing settlement
prices. Unlisted or listed securities for which closing sale prices are
not available are valued at the mean between the latest bid and asked
prices. Short-term debt securities with a remaining maturity of 60 days
or less are valued at amortized cost. Other fixed income and debt
securities, including listed securities and securities for which price
quotations are available, will normally be valued on the basis of
valuations furnished by a pricing service. Investments for which
valuations or market quotations are unavailable are valued at fair value
using methods determined in good faith by or at the direction of the
Trustees.
B. Federal Taxes - The Portfolio 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 individually
responsible for the payment of any taxes on its share of such income.
Since some of the Portfolio's investors are regulated investment
companies that invest all or substantially all of their assets in the
Portfolio, the Portfolio normally must satisfy the applicable source of
income and diversification requirements, (under the Internal Revenue
Code), in order for its investors to satisfy them. The Portfolio will
allocate, at least annually among its investors, each investor's
distributive share of the Portfolio's net investment income, net
realized capital gains, and any other items of income, gain, loss,
deduction or credit. Withholding taxes on foreign dividends and capital
gains have been provided for in accordance with the Trust's
understanding of the applicable countries' tax rules and rates.
C. Deferred Organization Expenses - Costs incurred by the Portfolio in
connection with its organization, including registration costs, are
being amortized on the straight-line basis over five years.
D. Futures Contracts - Upon the entering of a financial futures
contract, the Portfolio is required to deposit ("initial margin") either
in cash or securities an amount equal to a certain percentage of the
purchase price indicated in the financial futures contract. Subsequent
payments are made or received by the Portfolio ("margin maintenance")
each day, dependent on daily fluctuations in the value of the underlying
security, and are recorded for book purposes as unrealized gains or
losses by the Portfolio. The Portfolio's investment in financial futures
contracts is designed only to hedge against anticipated future changes
in interest or currency exchange rates. Should interest or currency
exchange rates move unexpectedly, the Portfolio may not achieve the
anticipated benefits of the financial futures contracts and may realize
a loss. If the Portfolio enters into a closing transaction, the
Portfolio will realize, for book purposes, a gain or loss equal to the
difference between the value of the financial futures contract to sell
and financial futures contract to buy.
E. 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.
F. Forward Foreign Currency Exchange Contracts - The Portfolio may enter
into forward foreign currency exchange contracts for the purchase or
sale of a specific foreign currency at a fixed price on a future date.
Risks may arise upon entering these contracts from the potential
inability of counterparties to meet the terms of their contracts and
from movements in the value of a foreign currency relative to the U.S.
dollar. The Portfolio will enter into forward contracts for hedging
purposes as well as non-hedging purposes. The forward foreign currency
exchange contracts are adjusted by the daily exchange rate of the
underlying currency and any gains or losses are recorded for financial
statement purposes as unrealized until such time as the contracts have
been closed or offset.
G. Other - Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income is recorded on the
ex-dividend date. However, if the ex-dividend date has passed, certain
dividends from foreign securities are recorded as the Portfolio is
informed of the ex-dividend date. Interest income is recorded on the
accrual basis.
H. Interim Financial Information - The interim financial statements
relating to February 29, 1996 and for the six month period then ended
have not been audited by independent certified public accountants, but
in the opinion of the Fund's management, reflect all adjustments,
consisting only of normal recurring adjustments, necessary for the fair
presentation of the financial statements.
(2) Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Lloyd George Management (Hong
Kong) Limited (the Adviser), an affiliate of Eaton Vance, as
compensation for management and investment advisory services rendered to
the Portfolio. Under the advisory agreement, the Adviser receives a
monthly fee of 0.0625% (0.75% annually) of the average daily net assets
of the Portfolio up to $500,000,000, and at reduced rates as daily net
assets exceed that level. For the six months ended February 29, 1996 the
adviser fee was .74% of average net assets. In addition, an
administrative fee is earned by Eaton Vance Management (EVM) for
managing and administering the business affairs of the Portfolio. Under
the administration agreement, EVM earns a monthly fee in the amount of
1/48th of 1% (equal to 0.25% annually) of the average daily net assets
of the Portfolio up to $500,000,000, and at reduced rates as daily net
assets exceed that level. For the six months ended February 29, 1996,
the administration fee was .24% 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. Investors Bank & Trust Company (IBT), serves as
custodian of the Portfolio. Prior to November 10, 1995 IBT was an
affiliate of EVM. 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 credits
are reported as a reduction of expenses in the Statement of Operations.
Certain of the officers and Trustees of the Portfolio are officers or
directors/trustees of the above organizations.
(3) Investment Transactions
Purchases and sales of investments, other than short-term obligations,
aggregated $121,938,578 and $157,909,687, respectively.
(4) Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) in value of the
investments owned at February 29, 1996, as computed on a federal income
tax basis, are as follows:
Aggregate cost $474,087,738
============
Gross unrealized appreciation $136,308,232
Gross unrealized depreciation 30,225,691
------------
Net unrealized appreciation $106,082,541
============
(5) Risks Associated with Foreign Investments
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks
not present in domestic investments. For example, there is generally
less publicly available information about foreign companies,
particularly those not subject to the disclosure and reporting
requirements of the U.S. securities laws. Foreign issuers are generally
not bound by uniform accounting, auditing, and financial reporting
requirements and standards of practice comparable to those applicable to
domestic issuers. Investments in foreign securities also involve the
risk of possible adverse changes in investment or exchange control
regulations, expropriation or confiscatory taxation, limitation on the
removal of funds or other assets of the Portfolio, political or
financial instability or diplomatic and other developments which could
affect such investments. Foreign stock markets, while growing in volume
and sophistication, are generally not as developed as those in the
United States, and securities of some foreign issuers (particularly
those located in developing countries) may be less liquid and more
volatile than securities of comparable U.S. companies. In general, there
is less overall governmental supervision and regulation of foreign
securities markets, broker-dealers, and issuers than in the United
States.
(6) Financial Instruments
The Portfolio regularly trades in financial instruments with off-balance
sheet risk in the normal course of its investing activities to assist in
managing exposure to various market risks. These financial instruments
include written options, forward foreign currency exchange contracts and
financial futures contracts and may involve, to a varying degree,
elements of risk in excess of the amounts recognized for financial
statement purposes.
The notional or contractual amounts of these instruments represent the
investment the Portfolio has in particular classes of financial
instruments and does not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these
instruments is meaningful only when all related and offsetting
transactions are considered.
(7) Line of Credit
The Portfolio participates with other portfolios and funds managed by
EVM and its affiliates in a $120 million unsecured line of credit
agreement with a bank. The line of credit consists of a $20 million
committed facility and a $100 million discretionary facility. 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 based on its borrowings at an amount above
either the bank's adjusted certificate of deposit rate, a variable
adjusted certificate of deposit rate, or a federal funds effective rate.
In addition, a fee computed at an annual rate of 1/4 of 1% on the $20
million committed facility and on the daily unused portion of the $100
million discretionary facility is allocated among the participating
funds and portfolios at the end of each quarter. The Portfolio did not
have any significant borrowings or allocated fees during the period.
EV Classic
Greater China
Growth Fund
Officers
James B. Hawkes
President, Trustee
M. Dozier Gardner
Vice President
William D. Burt
Vice President
Barclay Tittmann
Vice President
James L. O'Connor
Treasurer
Thomas Otis
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Chairman, Newspapers of New England, 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
Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
Greater China
Growth Portfolio
Officers
Hon. Robert Lloyd George
President, Trustee and Co-Portfolio Manager
James B. Hawkes
Vice President and Trustee
Scobie Dickinson Ward
Vice President, Assistant Secretary,
Assistant Treasurer and Co-Portfolio Manager
William Walter Raleigh Kerr
Vice President, Secretary and
Assistant Treasurer
James L. O'Connor
Vice President and Treasurer
Thomas Otis
Vice President and Assistant Secretary
Independent Trustees
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking,
Harvard University Graduate School of Business Administration
Stuart Hamilton Leckie
Managing Director and Actuary, Wyatt Company,
Hong Kong
Hon. Edward K.Y. Chen
Professor and Director, Center for Asian Studies,
University of Hong Kong
Sponsor and Manager of
EV Classic Greater China
Growth Fund & Administrator of
Greater China Growth Portfolio
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Adviser of Greater China
Growth Portfolio
Lloyd George Investment Management
(Bermuda) Limited
3808 One Exchange Square
Central, Hong Kong
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
89 South Street
P.O. Box 1537
Boston, MA 02205-1537
Transfer Agent
First Data Investor Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
(800) 262-1122
This report must be preceded or accompanied by
a current prospectus which contains more complete information on the
Fund, including its distribution plan, sales charges and expenses.
Please read the prospectus carefully before you invest or send money.
EV Classic
Greater China Growth Fund
24 Federal Street
Boston, MA 02110
C-CGSRC-4/96
