<PAGE>
[LOGO OF EATON VANCE MUTUAL Investing [PHOTO OF WORLD APPEARS HERE]
FUNDS APPEARS HERE] for the
21st
Century
Semiannual Report February 28, 1997
[PHOTO OF REDWOOD FOREST APPEARS HERE]
EV
WORLDWIDE
DEVELOPING
RESOURCES FUND
Eaton Vance
Global Management--Global Distribution
[PHOTO OF OIL RIGS APPEARS HERE] MARATHON
<PAGE>
EV Marathon Worldwide Developing Resources Fund as of February 28, 1997
INVESTMENT UPDATE
[PHOTO OF WILLIAM BURT CO-PORTFOLIO MANAGER APPEARS HERE]
Investment Environment
- --------------------------------------------------------------------------------
The Economy
. U.S. economic growth, measured by Gross Domestic Product (GDP) and adjusted
for inflation, increased at a moderate 2.5% pace in 1996. The current
expansion is in its sixth consecutive year.
William Burt
Co-Portfolio Manager
. Unemployment, which inched up during the period from 5.1% to 5.3%, remains
low. Wage pressures, which can lead to higher inflation, do not appear
threatening.
. The inflation rate, as measured by the Consumer Price Index (CPI), rose 0.3%
during February, 1997, after rising a mere 0.1% in January. For the 12 months
ended January, 1997, the CPI rose a moderate 3.0%.
[PHOTO OF BARCLAY TITTMANN CO-PORTFOLIO MANAGER APPEARS HERE]
Barclay Tittmann
Co-Portfolio Manager
The Markets
The U.S. stock market continued its remarkable climb, led by a relatively small
group of blue chip stocks. The S&P 500 Index, a broadly based, unmanaged index
of large capitalization stocks, had a total return of 22.6% during the six-month
period.*
Stocks in the base metals sector improved during the period, as low inventory,
steady demand, and an improving European economy led to a rise in prices of
aluminum, copper and nickel. The precious metals sector, strong through 1996,
has corrected in 1997. Gold sales by central banks worldwide have contributed
to a decline from $380/ounce in December to $350/ounce by the end of February.
Fund shares are not guaranteed by the FDIC and are not deposits or other
obligations of, or guarantees any depository institution. Shares are subject to
investment risks including possible loss of principal invested.
The oil and gas sector also performed well through year-end, as demand
strengthened and inventories remained tight. Since December, both oil and
natural gas prices have declined, in part due to a milder-than-expected winter
in many parts of the country.
The Fund
The Past Six Months
During the six months ended February 28, 1997, EV Marathon Worldwide Developing
Resources Fund had a total return of 5.6%./1/
This return was the result of a decrease in net asset value to $19.80 per share
on February 28, 1997 from $21.58 on August 31, 1996, and the reinvestment of
$2.875 per share in capital gains distributions.
By comparison, the average annual total return for mutual funds in the Lipper
Natural Resources Funds Category was 9.3% during this period.*
Base metals should continue to improve through the end of 1997, while the
outlook for gold is uncertain, depending on central bank actions and demand from
jewelry sales.
Natural gas prices, which are seasonal, should rise as winter approaches.
However, poor comparisons with prices in the fall of 1996 could dampen stock
performance. In the oil sector, prices have declined early in 1997, making
stock performance more dependent on the underlying fundamentals of individual
companies.
- --------------------------------------------------------------------------------
/1/ This return does not include the maximum applicable 5% contingent deferred
sales charge (CDSC).
/2/ Returns are calculated by determining the percentage change in net asset
value (NAV) with all distributions reinvested. SEC average annual returns
reflect applicable CDSC on the following schedule: 5% 1st and 2nd years; 4%-
3rd year; 3%-4th year; 2%-5th year, 1%-6th year. Past performance is not
indicative of future results. The value of an Investment in the Fund may
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
/3/ Sector weighting and holdings are as of 2/28/97 only and may not be
representative of the Portfolio's current or future investments. Top ten
holdings account for 25.13% of the Fund's investments, determined by
dividing the total market value of the holdings by the total net assets of
the Portfolio.
* It is not possible to invest directly in an index or Lipper Category.
<TABLE>
<CAPTION>
as of February 28, 1997
Average Annual Total Returns (at not asset value)
- ----------------------------------------------------------------
<S> <C>
One Year 33.5%
Five Years 17.1
Life of Fund (10/21/87) 13.4
<CAPTION>
SEC Average Annual Total Returns (including applicable CDSC)
- -----------------------------------------------------------------
<S> <C>
One Year 28.5%
Five Years 16.9
Life of Fund (10/21/87) 13.4
</TABLE>
Portfolio Sector Weighting /3/
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Chemicals 3%
Cash & Other 3%
Gold 37%
Oil & Gas 37%
Metals 20%
</TABLE>
Ten Largest Holdings /3/
<TABLE>
<CAPTION>
By total net assets
<S> <C>
Corriente Resources 5.10%
Arakis Energy Corp. 2.65
Abacon Resources Corp. 2.55
Getchell Gold Corp. 2.52
Ranger Oil Ltd. 2.21
Cambior Inc. 2.13
American Explanation Co. 2.02
Mercantile International Petroleum 1.99
Tiomin Resources Inc. 1.98
Greenstore Resources Ltd. 1.98
</TABLE>
2
<PAGE>
EV Marathon Worldwide Developing Resources Fund as of February 28, 1997
PORTFOLIO OF INVESTMENTS (Unaudited)
Common Stocks -- 97.08%
Security Shares Value
- ------------------------------------------------------------------
Chemicals - Fertilizer -- 1.29%
- ------------------------------------------------------------------
Potash Corp. of
Saskatchewan, Inc.* 5,000 $ 393,125
- ------------------------------------------------------------------
$ 393,125
- ------------------------------------------------------------------
Chemicals - Specialty -- 1.30%
- ------------------------------------------------------------------
Minerals Technologies, Inc.* 10,500 $ 397,688
- ------------------------------------------------------------------
$ 397,688
Metals - Gold -- 37.31%
- ------------------------------------------------------------------
Argosy Mining Corp. */1/ 100,000 $ 114,120
Ashanti Goldfields Co., Ltd. ADR* 8,889 131,707
Barrick Gold Corp.* 15,000 423,750
Bema Gold Corp 144A*/1/ 20,000 167,500
Black Swan Gold Mines
Ltd. Special Warrants*/1/ 200,000 361,988
Bresea Resources Ltd. */1/ 40,000 302,872
Cambior Inc. 41,000 650,875
Canarc Resource Corp.*/1/ 150,000 218,370
Crystallex International
Corp.*/1/ 150,000 455,400
Crystallex International
Corp. Purchase Warrants*/1/ 75,000 76,872
Dayton Mining Corp.*/1/ 100,000 531,250
Diamondworks, Ltd.*/1/ 150,000 296,172
Eldorado Gold Corp., Ltd.*/1/ 60,000 416,834
Etruscan Enterprises, Ltd.*/1/ 150,000 762,368
Franco-Nevada Mining, Ltd.* 3,000 141,285
Getchell Gold Corp./1/ 15,000 772,500
Global Pacific Minerals, Inc.*/1/ 200,000 219,460
Golden Gram Resources,
Inc. Special Warrants*/1/ 250,000 466,196
Gran Colombia Resources, Inc.*/1/ 100,000 131,632
Greenstone Resources Ltd.*/1/ 50,000 606,250
Intrepid Minerals Corp.*/1/ 300,000 318,110
Intrepid Minerals Corp.
Purchase Warrants*/1/ 150,000 14,260
Kazakhstan Mineral Corp.*/1/ 40,000 156,000
Meridan Gold, Inc./1/ 120,000 333,467
Nevsun Resources Ltd.*/1/ 40,000 248,736
Northgate Exploration, Ltd.*/1/ 12,082 9,062
Quincunx Gold Exploration
Special Warrants*/1/ 300,000 329,080
Repadre Capital Corp.*/1/ 40,000 258,976
Rio Narcea Gold Mines Ltd.* 60,000 252,390
Rio Narcea Gold Mines
Ltd. Special Warrants*/1/ 60,000 236,526
Romarco Minerals, Inc.*/1/ 50,000 162,712
South Pacific Resources Corp.*/1/ 100,000 274,340
Southwestern Gold Corp.* 40,000 468,212
Steppe Gold Resources, Ltd. 200,000 67,300
Tombstone Explorations Co., Ltd.* 150,000 230,445
Triton Mining Corp.* 30,000 87,755
TVI Pacific, Inc.*/1/ 350,000 322,595
TVX Gold, Inc.*/1/ 45,000 399,375
- ------------------------------------------------------------------
$ 11,416,742
- ------------------------------------------------------------------
Metals - Industrial -- 19.77%
- ------------------------------------------------------------------
Agrium Inc.* 18,000 $ 247,500
Aluminum Co. of America* 8,000 570,000
AMT International Mining Corp.* 328,600 322,127
AMT International Mining
Corp. Special Warrants*/1/ 160,000 156,788
AMT International Mining
Corp. Warrants*/1/ 328,600 24,030
Colossal Resources Corp. 60,000 247,500
Corriente Resources, Inc.*/1/ 134,500 1,559,595
Corriente Resources, Inc.
Warrants*/1/ 25,000 216,759
First Quantum Minerals
Common Stock*/1/ 100,000 219,470
Freeport McMoran Copper &
Gold, Inc. 16,300 531,788
Inco Limited* 5,600 196,700
Mississippi Chemical Corp. 10,000 245,000
Nucor Corp. 5,000 240,625
Panorama Resources
Special Warrants*/1/ 400,000 132,653
Republic Engineered Steel, Inc./1/ 35,000 56,875
Special Metals Corp./1/ 10,000 165,625
Steel Dynamics1 15,500 310,000
Tiomin Resources, Inc.*/1/ 200,000 607,200
- ------------------------------------------------------------------
$ 6,050,235
- ------------------------------------------------------------------
Oil and Gas - Equipment and Services -- 4.47%
- -------------------------------------------------------------------
3-D Geophysical, Inc./1/ 10,000 $ 63,750
Dawson Production Services/1/ 26,000 302,250
Edge Petroleum Corp./1/ 6,000 104,250
Tusk Energy, Inc.*/1/ 400,000 418,297
U.S. Energy Systems, Inc./1/ 75,000 384,375
U.S. Energy Systems, Inc.
Warrants /1/ 75,000 93,750
- ------------------------------------------------------------------
$ 1,366,672
- ------------------------------------------------------------------
Oil and Gas - Exploration and
Production -- 32.94%
- ------------------------------------------------------------------
Abacan Resources Corp./1/ 85,000 $ 780,938
American Exploration Co./1/ 50,000 618,750
See notes to financial statements
3
<PAGE>
EV Marathon Worldwide Developing Resources Fund as of February 28, 1997
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Security Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Oil and Gas - Exploration and
Production (continued)
- --------------------------------------------------------------------------------
Anadarko Petroleum Corp. 10,700 $ 601,875
Arakis Energy Corp./*//1/ 220,000 811,250
Beau Canada Exploration Ltd. Class A/*//1/ 170,000 348,228
Belco Oil and Natural Gas Corporation/1/ 10,000 205,000
Cairn Energy USA, Inc./1/ 30,000 292,500
Enserch Exploration, Inc./1/ 35,000 336,875
Evergreen Resources, Inc./1/ 40,000 310,000
Frontier Natural Gas Corp./1/ 110,000 302,500
Frontier Natural Gas Corp. Warrants/1/ 75,000 89,063
FX Energy, Inc./1/ 50,000 525,000
Harken Energy Corp./1/ 100,000 487,500
Mercantile International Petroleum/1/ 300,000 609,000
National Energy Group, Inc./1/ 102,000 344,250
Noble Drilling Inc./1/ 12,000 213,000
Parallel Petroleum Corp./1/ 50,000 221,875
Plains Resources, Inc./1/ 17,000 225,250
Ranger Oil Ltd. 75,000 675,000
Seven Seas Petroleum, Inc./*//1/ 25,000 300,000
Seven Seas Petroleum, Inc.144A
Special Warrants/*//1/ 10,000 120,000
Swift Energy Co./1/ 25,000 537,500
Tesoro Petroleum Corp./1/ 30,000 352,500
TransTexas Gas Corp./1/ 17,000 256,328
Triton Energy Ltd./1/ 8,700 364,313
United Meridian Corp./1/ 5,000 150,620
- --------------------------------------------------------------------------------
$10,079,115
- --------------------------------------------------------------------------------
Total Common Stocks
(identified cost $23,211,674) $29,703,577
- --------------------------------------------------------------------------------
Convertible Bonds -- 0.86%
<CAPTION>
Principal
Amount
Security (000 omitted) Value
- --------------------------------------------------------------------------------
Ashanti Capital, 5.50%, 3/15/03 $ 300 $ 262,500
- --------------------------------------------------------------------------------
Total Convertible Bonds
(identified cost $300,000) $ 262,500
- --------------------------------------------------------------------------------
Short-Term Investments -- 3.44%
CIT Group Holdings, 5.4%, 3/3/97 1,054 $ 1,053,526
- --------------------------------------------------------------------------------
Total Short-Term Investments
(identified cost $1,053,526) $ 1,053,526
- --------------------------------------------------------------------------------
Total Investments -- 101.38%
(identified cost $24,565,200) $31,019,603
- --------------------------------------------------------------------------------
Other Assets, Less Liabilities -- (1.38)% $ (421,769)
- --------------------------------------------------------------------------------
Net Assets -- 100% $30,597,834
- --------------------------------------------------------------------------------
</TABLE>
ADR -- American Depositary Receipt
/1/ Non-income producing security.
/*/ Foreign Security
See notes to financial statements
4
<PAGE>
EV Marathon Worldwide Developing Resources Fund as of February 28, 1997
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
As of February 28, 1997
Assets
- -------------------------------------------------------------------------
<S> <C>
Investments, at value (Note 1A)
(identified cost, $24,565,200) $ 31,019,603
Cash 628
Foreign currency, at value
(identified cost, $367,161) 365,644
Receivable for securities sold 147,470
Receivable for Fund shares sold 99,352
Dividends and interest receivable 8,503
- -------------------------------------------------------------------------
Total assets $ 31,641,200
- -------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------
Payable for investments purchased $ 890,600
Payable for Fund shares redeemed 134,054
Payable to affiliate for Trustees' fees 27
Accrued expenses 18,685
- -------------------------------------------------------------------------
Total liabilities $ 1,043,366
- -------------------------------------------------------------------------
Net Assets for 1,545,394 shares of
beneficial interest outstanding $ 30,597,834
- -------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------
Paid-in capital $ 24,943,744
Accumulated net realized loss on
investments and foreign currency
transactions (computed on basis of
identified cost) (596,087)
Accumulated net investment loss (202,709)
Net unrealized appreciation of
investments and foreign currency
transactions (computed on basis of
identified cost) 6,452,886
- -------------------------------------------------------------------------
Total $ 30,597,834
- -------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price
Per Share (Note 6)
- -------------------------------------------------------------------------
($30,597,834 / 1,545,394 shares of
beneficial interest outstanding) $ 19.80
- -------------------------------------------------------------------------
Statement of Operations
<CAPTION>
For the Six Months Ended
February 28, 1997
Investment Income
- -------------------------------------------------------------------------
<S> <C>
Dividends (net of foreign taxes, $1,218) $ 25,197
Interest 37,920
Miscellaneous income 13,921
- -------------------------------------------------------------------------
Total investment income $ 77,038
- -------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------
Investment adviser fee (Note 4) $ 94,883
Compensation of Trustees not members of
the Administrator's organization 45
Distribution fees (Note 5) 110,196
Custodian fee (Note 1C) 14,202
Transfer and dividend disbursing agent fees 14,413
Printing and postage 14,796
Legal and accounting services 14,400
Registration fees 6,632
Miscellaneous 11,616
- -------------------------------------------------------------------------
Total expenses $ 281,183
- -------------------------------------------------------------------------
Less Allocations --
Less reduction of custodian fee (Note 1C) $ 1,436
- -------------------------------------------------------------------------
Total expense reductions $ 1,436
- -------------------------------------------------------------------------
Net expenses $ 279,747
- -------------------------------------------------------------------------
Net investment loss $ (202,709)
- -------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
- -------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ (127,498)
Foreign currency transactions (2,935)
- -------------------------------------------------------------------------
Net realized loss on investment transactions $ (130,433)
- -------------------------------------------------------------------------
Change in unrealized appreciation (depreciation)
Investments (identified cost basis) $ 1,589,253
Foreign currency (1,517)
- -------------------------------------------------------------------------
Net change in unrealized appreciation of investments $ 1,587,736
- -------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 1,457,303
- -------------------------------------------------------------------------
Net increase in net assets from operations $ 1,254,594
- -------------------------------------------------------------------------
</TABLE>
See notes to financial statements
5
<PAGE>
EV Marathon Worldwide Developing Resources Fund as of February 28, 1997
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
Increase (Decrease) February 28, 1997 Year Ended
in Net Assets (Unaudited) August 31, 1996
- --------------------------------------------------------------------------------
<S> <C> <C>
From operations --
Net investment loss $ (202,709) $ (243,462)
Net realized gain
(loss) on investments and
foreign currency transactions (130,433) 3,284,714
Change in unrealized
appreciation (depreciation) 1,587,736 2,237,334
- --------------------------------------------------------------------------------
Net increase in net assets from operations $ 1,254,594 $ 5,278,586
- --------------------------------------------------------------------------------
Distributions to shareholders --
From net realized gain $(3,500,421) $ (821,177)
- --------------------------------------------------------------------------------
Total distributions to shareholders $(3,500,421) $ (821,177)
- --------------------------------------------------------------------------------
Transactions in shares of beneficial
interest (Note 3) --
Proceeds from sales of shares $15,393,121 $ 7,441,573
Net asset value of shares issued to
shareholders in payment of
distributions declared 2,940,572 639,300
Cost of shares redeemed (5,618,814) (7,668,233)
- --------------------------------------------------------------------------------
Net increase in net assets from
Fund share transactions $12,714,879 $ 412,640
- --------------------------------------------------------------------------------
Net increase in net assets $10,469,052 $ 4,870,049
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of period $20,128,782 $ 15,258,733
- --------------------------------------------------------------------------------
At end of period $30,597,834 $ 20,128,782
- --------------------------------------------------------------------------------
Accumulated
undistributed net
investment income (loss)
included in net assets
- --------------------------------------------------------------------------------
At end of period $ (202,709) $ --
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
6
<PAGE>
EV Marathon Worldwide Developing Resources Fund as of February 28, 1997
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31, Year Ended September 30,
February 28, 1997 ---------------------------------- -------------------------------
(Unaudited) 1996 1995** 1994 1993 1992 1991
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $21.580 $16.420 $14.890 $13.240 $11.850 $11.140 $12.140
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $(0.131) $(0.261) $(0.100)++ $(0.050) $(0.090) $(0.083) $ 0.020
Net realized and unrealized gain
(loss) on investments 1.226 6.371 1.630++ 2.650 1.480 1.103 (0.570)
- -----------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from operations $ 1.095 $ 6.110 $ 1.530 $ 2.600 $ 1.390 $ 1.020 $(0.550)
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net investment income $ -- $ -- $ -- $ -- $ -- $ -- $(0.020)
In excess of net investment income -- -- -- (0.020) -- (0.250) (0.110)
From net realized gain on investments (2.875) (0.950) -- -- -- (0.060) (0.320)
In excess of net realized gain on investments -- -- -- (0.930) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions $(2.875) $(0.950) $ -- $(0.950) $ -- $(0.310) $(0.450)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $19.800 $21.580 $16.420 $14.890 $13.240 $11.850 $11.140
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return 5.62% 39.69% 10.28% 20.47% 11.73% 9.44% (4.36)%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data*
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $30,598 $20,129 $15,259 $13,055 $ 5,792 $ 3,775 $ 4,042
Ratio of net expenses to average net
assets (1) 2.24%+ 2.49% 2.43%+ 2.64% 3.15% 3.26% 3.29%
Ratio of net expenses to average net assets
after custodian fee reduction(1) 2.23%+ 2.47% -- -- -- -- --
Ratio of net investment income (loss) to
average net assets (1.62)%+ (1.60)% (0.74)%+ (0.96)% (0.92)% (0.67)% 0.17%
Portfolio Turnover 23% 86% 49% 17% 57% 32% 27%
- -----------------------------------------------------------------------------------------------------------------------------------
Average commission rate paid (2) $0.0307 $0.0382 $ -- $ -- $ -- $ -- $ --
- -----------------------------------------------------------------------------------------------------------------------------------
* For the three years ended September 30, 1993, the operating expenses of the
fund reflect a reduction of the investment adviser fee. Had such action not
been taken, the ratios would have been as follows:
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Expenses -- -- -- -- 3.90% 4.65% 4.42%
Net investment loss -- -- -- -- (1.67)% (2.06)% (0.96)%
Net investment loss per share -- -- -- -- $(0.210) $(0.240) $(0.110)
</TABLE>
+ Annualized.
++ Computed using average shares outstanding throughout the period.
** For the eleven months ended August 31, 1995 (See Note 10).
(1) The expense ratios for the six months ended February 28, 1997 and the year
ended August 31, 1996 have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require each Fund to increase its
expense ratio by the effect of any expense offset arrangements with its
service providers. The expense ratios for each of the periods ended on or
before August 31, 1995 have not been adjusted to reflect this change.
(2) Average commission rate paid is computed 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. For fiscal years beginning on or after September 1, 1995, a Fund is
required to disclose its average commission rate per share for security
trades on which commissions were charged.
See notes to financial statements
7
<PAGE>
EV Marathon Worldwide Developing Resources Fund as of February 28, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
1 Significant Accounting Policies
------------------------------------------------------------------------------
EV Marathon Worldwide Developing Resources Fund (the Fund) (formerly EV
Marathon Gold and Natural Resources 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 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 -- Investments, other than fixed income securities,
listed on securities exchanges or in the NASDAQ National Market System are
valued at closing sale prices. Unlisted securities or listed securities for
which closing sale prices are not available are valued at the mean between the
latest bid and asked prices. Options are valued at the last quoted sale price
on the exchange or board of trade on which they are primarily traded or, in
the absence of a sale, the mean between the last bid and asked price. Futures
positions on investments or currencies are generally valued at closing
settlement prices. Short-term obligations are valued at amortized cost, which
approximates value. Other fixed income and debt securities, including listed
securities and securities for which price quotations are available, will
normally be valued on the basis of valuations furnished by a pricing service.
All other securities are appraised at fair value as determined in good faith
by or pursuant to procedures established by the Trustees.
B Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code available to regulated investment companies and to
distribute to shareholders each year all of its taxable income, including any
net realized gain on investments. Accordingly, no provision for federal income
or excise tax is necessary.
C Expense Reduction -- The Fund has entered into an arrangement with its
custodian agent whereby interest earned on uninvested cash balances are used
to offset custody fees. All significant reductions are reported as a reduction
of expenses in the Statement of Operations. Investors Bank & Trust (IBT)
serves as custodian to the Fund.
D Other -- Investment security transactions are accounted for on a trade date
basis. Dividend income, distributions to shareholders and shares issued to
shareholders electing to receive distributions in shares are recorded on the
ex-dividend date.
E Use of Estimates -- The preparation of the financial statements in
conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
F Interim Financial Information -- The interim financial statements relating
to February 28, 1997 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 (A) at least one distribution
annually (normally in December) of substantially all of the investment income
earned by the Fund, less its expenses and (B) at least one distribution
annually of substantially all of the capital gains realized by the Fund, if
any. Distributions are paid in the form of additional shares of the Fund or,
at the election of the shareholder, in cash. 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
overdistributions only 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.
8
<PAGE>
EV Marathon Worldwide Developing Resources Fund as of February 28, 1997
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
- --------------------------------------------------------------------------------
3 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:
<TABLE>
<CAPTION>
Six Months Ended
February 28, 1997 Year Ended
(Unaudited) August 31, 1996
------------------------------------------------------------------------------
<S> <C> <C>
Sales 726,869 169,729
Issued to shareholders electing to
receive payment of distribution
in Fund shares 154,604 42,310
Redemptions (268,971) (448,638)
------------------------------------------------------------------------------
Net Increase 612,502 3,573
------------------------------------------------------------------------------
</TABLE>
4 Investment Adviser Fee and Other Transactions with Affiliates
------------------------------------------------------------------------------
The investment adviser fee was paid to Eaton Vance Management (EVM) as
compensation for management and investment advisory services rendered to the
Fund. The fee is computed at the monthly rate of 0.0625% (0.75% per annum) of
the Fund's average daily net assets up to $500 million and at reduced rates as
daily net assets exceed that level. For the period ended February 28, 1997,
the effective annual rate, based on average daily net assets, was 0.75%.
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 investment adviser fee. Certain of the officers and Trustees of the
Fund are officers and directors/ trustees of the above organization (See
Note 5).
Trustees of the Fund that are not affiliated with the Investment Adviser may
elect to defer receipt of all or a percentage of their annual fees in
accordance with the terms of the Trustees Deferred Compensation Plan. For the
period ended February 28, 1997, no significant amounts have been deferred.
5 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) 5% 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 the aggregate amount of contingent deferred sales
charges (see Note 6) and daily 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 accrued
$93,930 as payable to EVD for the period ended February 28, 1997, representing
0.75% of daily average net assets. At February 28, 1997, the amount of
Uncovered Distribution Charges of EVD calculated under the Plan was
approximately $902,000.
In addition, the Plan authorizes the Fund to make payments of service fees to
the Principal Underwriter, Authorized Firms and other persons in amounts not
exceeding 0.25% of the Fund's average daily net assets for each fiscal year.
The Trustees have initially implemented the Plan by authorizing the Fund to
make quarterly payments of service fees to the Principal Underwriter and
Authorized Firms in amounts not expected to exceed 0.25% per annum of the
Fund's average daily net assets based on the value of Fund shares sold by such
persons and remaining outstanding for at least one year. Service fee payments
will be made for personal services and/or the maintenance of shareholder
accounts. Service fees are separate and distinct from the sales commissions
and distribution fees payable by the Fund to EVD, and, as such, are not
subject to automatic discontinuance where there are no outstanding Uncovered
Distribution Charges of EVD.
During the period ended February 28, 1997, the Fund paid or accrued $16,266
under the Plan to the Principal Underwriter and Authorized Firms.
Certain of the officers and Trustees of the Fund are officers or directors of
EVD.
9
<PAGE>
EV Marathon Worldwide Developing Resources Fund as of February 28, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
6 Contingent Deferred Sales Charge
-----------------------------------------------------------------------------
A contingent deferred sales charge (CDSC) is imposed on any redemption of
Fund shares made within six years of purchase. Generally, the CDSC is based
upon the lower of net asset value at date of redemption or date of purchase.
No charge is levied on shares acquired by reinvestment of dividends or
capital gain distributions. The CDSC is imposed at declining rates that begin
at 5% in the case of redemptions in the first and second year after purchase
(6% and 5%, respectively for shares acquired prior to August 1, 1994),
declining one percentage point each year. No CDSC is levied on shares which
have been sold to EVM or its affiliates or to their respective employees or
clients. CDSC charges are paid to EVD to reduce the amount of Uncovered
Distribution Charges calculated under the Fund's Distribution Plan. If no
Uncovered Distribution Charges exist, the CDSC will be credited to
operations. EVD received approximately $43,000 of CDSC paid by shareholders
for the period ended February 28, 1997.
7 Line of Credit
-----------------------------------------------------------------------------
The Fund participates with other funds and portfolios managed by EVM and its
affiliates in a committed $120 million unsecured line of credit agreement
with a group of banks. The Fund may temporarily borrow from the line of
credit to satisfy redemption requests or settle investment transactions.
Interest is charged to each fund or portfolio based on its borrowings at an
amount above the bank's adjusted certificate of deposit rate, eurodollar rate
or federal funds rate. In addition, a fee computed at an annual rate of 0.15%
on the daily unused portion of the $100 million line of credit is allocated
among the participating funds and portfolios at the end of each quarter. The
Fund did not have any significant borrowings or allocated fees during the
period ended February 28, 1997.
8 Purchases and Sales of Investments
-----------------------------------------------------------------------------
Purchases and sales of investments, other than U.S. Government Securities and
short-term obligations, aggregated $14,358,687 and $5,778,874 respectively.
9 Federal Income Tax Basis of Investments
-----------------------------------------------------------------------------
The cost and unrealized appreciation/depreciation in value of the investment
securities owned at February 28, 1997, as computed on a federal income tax
basis, are as follows:
<TABLE>
<S> <C>
Aggregate cost $ 24,565,200
- --------------------------------------------------------------------------------
Gross unrealized appreciation $ 8,542,782
Gross unrealized depreciation (2,088,379)
- --------------------------------------------------------------------------------
Net unrealized appreciation $ 6,454,403
- --------------------------------------------------------------------------------
</TABLE>
10 Name Change
-----------------------------------------------------------------------------
The trustees approved a name change for the Fund on January 10, 1997, and
effective on January 15, 1997. The Fund known formerly as the EV Marathon
Gold & Natural Resources Fund was changed to the current EV Marathon
Worldwide Developing Resources Fund.
10
<PAGE>
EV Marathon Worldwide Developing Resources Fund as of February 28, 1997
INVESTMENT MANAGEMENT
<TABLE>
<CAPTION>
EV Marathon Worldwide Developing Resources Fund
<S> <C>
Officers Independent Trustees
James B. Hawkes Donald R. Dwight
President and Trustee President, Dwight Partners, Inc.
Chairman, Newspapers of New England, Inc.
M. Dozier Gardner
Vice President Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking,
William D. Burt Harvard University Graduate School of Business
Vice President and Administration
Co-Portfolio Manager
Norton H. Reamer
Barclay Tittmann President and Director, United Asset
Vice President and Management Corporation
Co-Portfolio Manager
John L. Thorndike
James L. O'Connor Formerly Director, Fiduciary Company Incorporated
Treasurer
Jack L. Treynor
Thomas Otis Investment Adviser and Consultant
Secretary
</TABLE>
11
<PAGE>
Administrator of EV Marathon
Worldwide Developing Resources Fund
Eaton Vance Management
24 Federal Street
Boston, MA 02110
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.
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
EV Marathon
Worldwide Developing Resources Fund
24 Federal Street
Boston, MA 02110
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
M-NRSRC-4/97
