<PAGE>
Investing
for the
[LOGO OF EATON VANCE APPEARS HERE] 21st
Century
[PHOTO OF PLANET APPEARS HERE]
Semiannual Report February 28, 1997
[PHOTO OF DISH APPEARS HERE]
EATON VANCE
TRADITIONAL
INFORMATION
AGE FUND
Global Management-Global Distribution
Traditional
[PHOTO OF CHILD APPEARS HERE]
<PAGE>
EV Traditional Information Age Fund as of February 28, 1997
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
Investment Environment
- --------------------------------------------------------------------------------
The Climate for the Information Sectors
. Information age stocks were unusually volatile in the past year. Broadcasting
stocks rose as mergers spread throughout the industry. Technology stocks
plunged in the first half of 1996, but rallied sharply in the second half.
Telecom stocks lagged the market as investors focused on an increasingly
competitive environment.
. The period witnessed major legislation affecting the telecom industry. In the
U.S., Congress passed legislation deregulating the telecom sector. Meanwhile,
the World Trade Organization passed the Geneva Agreement, which opens global
markets to competition and facilitates foreign investment in telecom
companies.
. Intel Corp. estimated that PC sales will reach 90 million in 1997 and that,
by the year 1999, PC sales will outstrip television sales as the computer
becomes the dominant consumer appliance.
The Fund
- --------------------------------------------------------------------------------
Performance for the Past Six Months
. The Fund had a total return of 9.5% during the six months ended February 28,
1997./1/ That return was the result of a rise in net asset value per share
from $11.06 on August 31, 1996 to $12.10 on February 28, 1997, and the
reinvestment of $0.011 per share in capital gain distributions.
. In comparison, the S&P 500 - an unmanaged index of U.S. common stocks - and
the Morgan Stanley Capital International Europe, Australasia, and Far East
Index had total returns of 22.6% and 2.4%, respectively, during the same
period.*
U.S.-based Portfolio activity
. Broadcasting stocks were among the Fund's best performers during the period.
Companies like LIN Television and Westinghouse Electric have been part of the
recent wave of consolidation among broadcasting companies.
. Advertising stocks also fared relatively well. Companies like Omnicom Group,
which has exposure to both U.S. and global ad markets, had robust earnings in
1996 due to ad spending tied to the U.S. Presidential election and Atlanta
Summer Olympic Games.
. Among the Fund's business services stocks, the strongest performer was
E*Trade Group Inc., which has risen more than 73% in 1997 alone. The company
has seen revenues surge from its PC-based investment information and discount
stock trading services.
International Portfolio activity
. The U.K. was the Portfolio's largest foreign country weighting, represented
by large international media stocks like Pearson and Reuters Holdings.
Reuters continues to enjoy double-digit earnings growth from its sale of
information and transaction products.
. The landmark legislative accords in the U.S. and overseas improved the
prospects for the Portfolio's global telecom holdings. STET, an Italian
telecom company, enjoyed strong mobile phone subscriber growth in the past
year. Meanwhile, Cable and Wireless, a U.K.-based communications group,
formed a new venture with NYNEX and Videotron that will provide access to six
million homes in the U.K.
. In the technology sector, Sony was a large holding. The company remains a
world-wide leader in consumer electronics. Its global reach has insulated it
from the continuing weak Japanese economy.
- --------------------------------------------------------------------------------
Fund shares are not guaranteed by the FDIC and are not deposits or other
obligations of, or guaranteed by, any depository institution. Shares are subject
to investment risks, including possible loss of principal invested.
- --------------------------------------------------------------------------------
/1/This return does not include the maximum 4.75% initial sales charge.
/2/Returns are calculated by determining the percentage change in net asset
value with all distributions reinvested. SEC average annual returns reflect a
maximum 4.75% sales charge. Past performance is no guarantee 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 orginal cost.
/3/By market value as of 2/28/97. Sector weighting subject to change due to
active management.
/4/Positions and holdings are as of 2/28/97 only and may not be representative
of the Portfolio's current or future investments. Portfolio holdings account for
23.16% 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 the Index.
- --------------------------------------------------------------------------------
Fund Information
as of February 28, 1997
<TABLE>
<CAPTION>
Performance/2/ - periods ended 2/28/97
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C>
One year 13.0%
Life of Fund (9/18/95) 14.1
SEC Average Annual Total Returns (including maximum 4.75%
sales charge)
- --------------------------------------------------------------------------------
One year 7.7%
Life of Fund (9/18/95) 10.4
</TABLE>
5 Largest Industry Positions/3/
- --------------------------------------------------------------------------------
By total net assets
Information Services 14.8%
Electronics 13.9%
Communications services 13.7%
Publishing 17.2%
Computer services 9.4%
<TABLE>
<CAPTION>
Ten Largest Holdings/4/
- --------------------------------------------------------------------------------
By total net assets
<S> <C>
Sony Corp. 2.86%
Pearson PLC 2.72
STET 2.63
Cable & Wireless PLC 2.44
Philips Electronics NV 2.24
Reuters Holding PLC 2.21
Tandberg Television ASA 2.15
Television Broadcasts, Ltd. 2.03
Automatic Data Processing, Inc. 1.94
Yorkshire - Tyne Tees TV Holdings 1.94
</TABLE>
2
<PAGE>
EV Traditional Information Age Fund as of February 28, 1997
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
<TABLE>
<S> <C>
As of February 28, 1997
Assets
- --------------------------------------------------------
Investment in Information Age
Portfolio, at value (Note 1A) $12,336,339
(identified cost, $11,024,414)
Receivable for Fund shares sold 35,120
Deferred organization expenses (Note 1D) 37,515
Tax reclaim receivable 3,064
- --------------------------------------------------------
Total assets $12,412,038
- --------------------------------------------------------
Liabilities
- --------------------------------------------------------
Payable for Fund shares redeemed $156,441
Payable to affiliate for Trustees' fees 27
Accrued expenses 6,006
- --------------------------------------------------------
Total liabilities $162,474
- --------------------------------------------------------
Net Assets for 1,012,357 shares of
beneficial interest outstanding $12,249,564
- --------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------
Paid-in capital $10,361,358
Accumulated net realized gain on
investments and foreign currency 698,869
transactions (computed on the basis
of identified cost)
Accumulated net investment loss (122,588)
Net unrealized appreciation of
investments and foreign currency 1,311,925
transactions (computed on the basis
of identified cost)
- --------------------------------------------------------
Total $12,249,564
- --------------------------------------------------------
Net Asset Value and Redemption Price Per Share
- --------------------------------------------------------
($12,249,564/1,012,357 shares of
beneficial interest outstanding) $ 12.10
- --------------------------------------------------------
Computation of Offering Price
- --------------------------------------------------------
Offering price per share (100/95.25 $ 12.70
of $12.10)
- --------------------------------------------------------
On sales of $100,000 or more, the offering
price is reduced.
- --------------------------------------------------------
Statement of Operations
For the Six Months Ended
February 28, 1997
Investment Income (Note 1B)
- --------------------------------------------------------
Dividend income allocated from Portfolio
(net of foreign taxes, $5,133) $46,959
Interest income allocated from 10,790
Portfolio
Expenses allocated from Portfolio (91,474)
- --------------------------------------------------------
Total investment loss $(33,725)
- --------------------------------------------------------
Expenses
- --------------------------------------------------------
Management fee (Note 3) $15,654
Compensation of Trustees not members of the
Administrator's organization (Note 3) 81
Distribution and service fees (Note 5) 31,308
Printing and postage 14,236
Transfer and dividend disbursing agent 7,422
fees
Amortization of organization expenses 4,954
(Note 1D)
Registration fees 4,388
Legal and accounting services 4,013
Custodian fee 992
Miscellaneous 3,395
- --------------------------------------------------------
Total expenses $86,443
- --------------------------------------------------------
Net investment loss $(120,168)
- --------------------------------------------------------
Realized and Unrealized Gain (Loss) from
Portfolio
- --------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified $729,256
cost basis)
Foreign currency transactions (6,859)
- --------------------------------------------------------
Net realized gain on investment $722,397
transactions
- --------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investment transactions $545,148
Foreign currency transactions (1,032)
- --------------------------------------------------------
Change in unrealized appreciation of
investments $544,116
- --------------------------------------------------------
Net realized and unrealized gain on
investments $1,266,513
- --------------------------------------------------------
Net increase in net assets resulting
from operations $1,146,345
- --------------------------------------------------------
</TABLE>
See notes to financial statements
3
<PAGE>
EV Traditional Information Age 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 $ (120,168) $ (102,150)
Net realized gain (loss)
on investment transactions 722,397 (9,716)
Change in unrealized appreciation
(depreciation) of investments 544,116 767,809
- --------------------------------------------------------------------------------
Net increase in net assets
from operations $ 1,146,345 $ 655,943
- --------------------------------------------------------------------------------
Distributions to shareholders --
From net realized gain $ (11,831) $ --
- --------------------------------------------------------------------------------
Total distributions to shareholders $ (11,831) $ --
- --------------------------------------------------------------------------------
Transactions in shares of
beneficial interest (Note 4) --
Proceeds from sale of shares $ 1,315,346 $12,848,572
Net asset value of shares issued
to shareholders in payment of
distributions declared 11,339 --
Cost of shares redeemed (2,214,202) (1,501,948)
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions $ (887,517) $11,346,624
- --------------------------------------------------------------------------------
Net increase in net assets $ 246,997 $12,002,567
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of period $ 12,002,567 $ --
- --------------------------------------------------------------------------------
At end of period $ 12,249,564 $12,002,567
- --------------------------------------------------------------------------------
Accumulated net
investment loss
- --------------------------------------------------------------------------------
At end of period $ (122,588) $ (2,420)
- --------------------------------------------------------------------------------
</TABLE>
* For the period from the start of business, September 18, 1995, to August 31,
1996.
See notes to financial statements
4
<PAGE>
EV Traditional Information Age Fund as of February 28, 1997
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Six Months Ended
February 28, 1997 Year Ended
(Unaudited) August 31, 1996*
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value-- Beginning of period $11.060 $10.000
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment loss $(0.119) $(0.127)
Net realized and unrealized gain on investments 1.170 1.187
- -----------------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 1.051 $1.060
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net realized gain on investments $(0.011) $ --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.011) $ --
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value-- End of period $12.100 $11.060
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return /(1)/ 9.51% 10.60%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $12,250 $12,003
Ratio of net expenses to average net assets /(2)/ 2.84%+ 2.87%+
Ratio of net investment loss to average net assets (1.92)%+ (1.22)%+
</TABLE>
* For the period from the start of business, September 18, 1995, to
August 31, 1996.
+ Annualized.
(1) 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 payable date. Total return is not computed on
an annualized basis.
(2) Includes the Fund's share of the Portfolio's allocated expenses.
See notes to financial statements
5
<PAGE>
EV Traditional Information Age Fund as of February 28, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
-----------------------------------------------------------------------------
EV Traditional Information Age 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 Information Age 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 (25.5% at February 28, 1997). 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 Valuation -- 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 or loss 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, if
any, and any net realized capital gains. Accordingly, no provision for
federal income or excise tax is necessary. At August 31, 1996, net capital
losses of $2,420 attributable to security transactions incurred after
October 31, 1995 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 are being amortized on the straight-line basis over
five years.
E Interim Financial Information -- The interim financial statements relating
to February 28, 1997 and for the six months 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.
F Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenue and expense during the reporting period. Actual results could
differ from those estimates.
G Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian to the Fund and the Portfolio. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Fund or the Portfolio maintains with
IBT. All significant credit balances used to reduce the Fund's custodian fees
are reported as a reduction of expenses on the statement of operations.
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.
6
<PAGE>
EV Traditional Information Age Fund as of February 28, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
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 28, 1997 the fee was equivalent to 0.25% (annualized) of the
Fund's average net assets for such period and amounted to $15,654. 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. Eaton Vance Distributors, Inc., (EVD), a subsidiary of EVM
and the Fund's principal underwriter, received approximately $4,800 as its
portion of the sales charge on sales of Fund shares for the six months ended
February 28, 1997. Certain officers and Trustees of the Fund and the
Portfolio are directors/trustees of the above organizations. In addition,
investment adviser and administrative 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:
<TABLE>
<CAPTION>
Six Months Ended
February 28, 1997 Year Ended
(Unaudited) August 31, 1996*
-----------------------------------------------------------------------------
<S> <C> <C>
Sales 112,117 1,224,615
Issued to shareholders electing to
receive payment of distribution in
Fund shares 973 --
Redemptions (186,168) (281,036)
-----------------------------------------------------------------------------
Net increase (decrease) (73,078) 1,085,435
-----------------------------------------------------------------------------
</TABLE>
* For the period from the start of business, September 18, 1995 to
August 31, 1996.
5 Distribution and Service 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) a monthly
distribution fee equal, on an annual basis, to the aggregate of (a) 0.50% of
that portion of the Fund's average daily net assets for any fiscal year which
is attributable to shares of the Fund which have remained outstanding for
less than one year and (b) 0.25% of that portion of the Fund's daily average
net assets for any fiscal year which is attributable to shares of the Fund
which have remained outstanding for more than one year. During the six months
ended February 28, 1997 the Fund paid distribution fees to EVD aggregating
$25,811 representing 0.41% (annualized) of average daily net assets. The Plan
also provides that the Fund will pay a quarterly service fee to EVD in an
amount equal, on an annual basis, to 0.25% of that portion of the Fund's
average daily net assets for any fiscal year which is attributable to shares
of the Fund which have remained outstanding for more than one year. Such
payments are made for personal services and/or the maintenance of shareholder
accounts. The Fund paid or accrued an aggregate of $5,497 for the six months
ended February 28, 1997 as service fees under the Plan. EVD may pay up to the
entire amount of the service fees to authorized firms through which the
Fund's shares are distributed. Certain officers and Trustees of the Fund are
officers or directors of EVD.
6 Investment Transactions
-----------------------------------------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio aggregated
$1,286,324 and $2,134,862, respectively.
7
<PAGE>
Information Age Portfolio as of February 28, 1997
PORTFOLIO OF INVESTMENTS (Unaudited)
Common Stocks -- 93.08%
<TABLE>
<CAPTION>
Security Shares Value
- -------------------------------------------------------
<S> <C> <C>
Advertising -- 3.15%
- -------------------------------------------------------
Catalina Marketing Corp. 5,000 $ 251,250
Omnicom Group, Inc. 16,000 794,000
True North
Communications, Inc. 24,000 480,000
- -------------------------------------------------------
$1,525,250
- -------------------------------------------------------
Broadcasting and Cable -- 8.57%
- -------------------------------------------------------
Benpres Holdings GDR* 32,000 $ 280,000
Lin Television Corp. 17,000 705,500
Providence Journal Co.
Class A 5,000 160,000
TCA Cable TV, Inc. 15,000 480,000
Television Broadcasts,
Ltd.* 230,000 980,152
Westinghouse Electric,
Corp. 35,000 603,750
Yorkshire-Tyne Tees TV
Holdings* 45,000 937,010
- -------------------------------------------------------
$4,146,412
- -------------------------------------------------------
Business Services - Miscellaneous -- 3.65%
- -------------------------------------------------------
ADT Ltd. 30,000 $ 652,500
Corporate Express, Inc. 10,000 187,500
E*Trade Group, Inc. 15,000 360,000
Interim Services, Inc. 15,000 566,250
- -------------------------------------------------------
$1,766,250
- -------------------------------------------------------
Communications Services -- 13.70%
- -------------------------------------------------------
British
Telecommunications PLC* 125,000 $ 866,584
Cable and Wireless PLC* 145,000 1,177,699
Itochu Corp.* 50,000 246,832
Korea Mobile Telecom
Corp.* 299 302,045
Nippon Telegraph and
Telephone Corp.* 70 499,730
Orbital Sciences Corp. 35,000 603,750
Pathe SA* 2,100 526,429
PT Telekomunikasi* 160,000 278,624
STET* 300,000 1,272,791
Telco Communications Group 25,000 453,125
Worldcom, Inc. 15,000 399,375
- -------------------------------------------------------
$6,626,984
- -------------------------------------------------------
Computer Software -- 9.37%
- -------------------------------------------------------
Computer Associates
International, Inc. 16,000 $ 696,000
Informix Corp. 33,000 573,375
Misys PLC* 33,000 661,333
Oracle Corp. 18,000 706,500
Oxford Molecular Group
PLC* 50,000 $ 366,593
Primark Corp. 20,000 497,500
USCS International, Inc. 22,000 456,500
VTECH Holdings Ltd.* 330,000 571,414
- -------------------------------------------------------
$4,529,215
- -------------------------------------------------------
Computers and Business Equipment -- 3.44%
- -------------------------------------------------------
Auspex Systems, Inc. 35,000 $ 406,875
DSC Communications 15,000 315,000
Informatics Ltd.* 547,000 262,852
Jacor Communications, Inc. 10,000 294,375
Shiva Corp. 23,000 382,375
- -------------------------------------------------------
$1,661,477
- -------------------------------------------------------
Consumer Services -- 1.23%
- -------------------------------------------------------
CUC International, Inc. 25,000 $ 596,875
- -------------------------------------------------------
$ 596,875
- -------------------------------------------------------
Electronics - Instruments -- 13.05%
- -------------------------------------------------------
Avimo Group Ltd.* 200,000 $ 251,140
Electric and Eltek
International* 2,200,000 562,522
Hitachi Ltd.* 65,000 561,812
Mitsumi Electric Co.,
Ltd.* 31,000 579,680
Philips Electronics NV* 24,000 1,083,724
Roland* 3,000 52,358
Samsung Electronics* 3,300 270,634
Samsung Electronics GDR*2 1,205 53,924
Sumitomo Electric
Industries* 45,000 632,038
Tandberg Television ASA* 92,000 1,042,104
Thermo Electron Corp. 20,000 682,500
Venture Manufacturing* 200,000 538,758
- -------------------------------------------------------
$6,311,194
- -------------------------------------------------------
Electronics - Semiconductors -- 0.88%
- -------------------------------------------------------
Intel Corp. 3,000 $ 425,625
- -------------------------------------------------------
$ 425,625
- -------------------------------------------------------
Entertainment -- 6.22%
- -------------------------------------------------------
Carmike Cinemas, Inc. 20,000 $ 512,500
EMI Group PLC* 35,000 658,074
Sony Corp.* 19,100 1,382,596
Yoshimoto Kogyo* 42,000 453,771
- -------------------------------------------------------
$3,006,941
- -------------------------------------------------------
</TABLE>
See notes to financial statements
8
<PAGE>
Information Age Portfolio as of February 28, 1997
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Security Shares Value
- -------------------------------------------------------
<S> <C> <C>
Information Services -- 14.75%
- -------------------------------------------------------
Affiliated Computer
Services 30,000 $ 618,750
Automatic Data
Processing, Inc. 22,000 937,750
Bisys Group, Inc. 20,000 625,000
Ceridian Corp./1/ 16,000 626,000
Computer Sciences Corp. 11,000 742,500
DST Systems, Inc. 25,000 821,875
Fiserv Inc. 17,000 556,750
IDX Systems Corp. 15,000 472,500
Reuters Holdings PLC* 100,000 1,070,450
Sungard Data Systems,
Inc. 13,000 659,750
- -------------------------------------------------------
$ 7,131,325
- -------------------------------------------------------
Miscellaneous -- 2.84%
- -------------------------------------------------------
Boston Scientific Corp./1/ 5,000 $ 331,250
Eastman Kodak Co. 7,000 627,375
Healthdyne Technologies 30,000 416,250
- -------------------------------------------------------
$ 1,374,875
- -------------------------------------------------------
Publishing -- 12.23%
- -------------------------------------------------------
Dow Jones & Co., Inc. 20,000 $ 802,500
EMAP* 25,000 314,048
Flammarion SA* 15,000 724,129
John Fairfax Holdings* 250,000 600,117
McGraw-Hill, Inc. 15,000 778,125
Oriental Press Group*/1/ 158,000 8,366
Pearson PLC* 105,000 1,315,577
Springer Alex Verlag AG* 800 557,698
Star Publications
(Malaysia)* 185,000 812,122
- -------------------------------------------------------
$ 5,912,682
- -------------------------------------------------------
Total Common Stocks
(identified cost $40,768,644) $45,015,105
- -------------------------------------------------------
Preferred Stocks -- 1.86%
Publishing -- 1.85%
- -------------------------------------------------------
News Corp., Ltd.* 199,500 $ 901,993
- -------------------------------------------------------
$901,993
- -------------------------------------------------------
Total Preferred Stocks
(identified cost $749,858) $901,993
- -------------------------------------------------------
Short-Term Investments -- 8.24%
Principle
Amount
Security (000 omitted) Value
- -------------------------------------------------------
American General
Finance Corp., 5.32%,
3/10/97 $ 861,000 $ 859,855
CIT Group Holdings,
5.40%, 3/3/97 2,000,000 1,999,400
GE Capital Co., 5.27%,
3/5/97 1,126,000 1,125,341
- -------------------------------------------------------
Total Short-Term Investments
(identified cost $3,984,596) $ 3,984,596
- -------------------------------------------------------
Total Investments -- 103.18%
(identified cost $45,503,098) $49,901,694
- -------------------------------------------------------
Other Assets, Less Liabilities --
(3.18)% $(1,537,764)
- -------------------------------------------------------
Net Assets -- 100% $48,363,930
- -------------------------------------------------------
</TABLE>
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
* Foreign Security
1 Non-income producing security.
2 Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At February 28,
1997, the value of these securities amounted to $53,924 or 0.1% of net
assets.
See notes to financial statements
9
<PAGE>
Information Age Portfolio 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, $45,503,098) $49,901,694
Cash 3,172
Receivable for investments sold 694,051
Dividends and interest receivable 23,832
Deferred organization expenses (Note 1C) 4,592
- -------------------------------------------------------------
Total assets $50,627,341
- -------------------------------------------------------------
Liabilities
- -------------------------------------------------------------
Payable for investments purchased $2,056,634
Payable for open forward foreign
currency contracts 168,019
Payable to affiliate for Trustees'
fees (Note 2) 1,097
Accrued expenses 37,661
- -------------------------------------------------------------
Total liabilities $2,263,411
- -------------------------------------------------------------
Net Assets applicable to investors'
interest in Portfolio $48,363,930
- -------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $43,969,041
Net unrealized appreciation of
investments and foreign currency
transactions (computed on the basis
of identified cost) 4,394,889
- -------------------------------------------------------------
Total $48,363,930
- -------------------------------------------------------------
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
For the Six Months Ended
February 28, 1997
Investment Income
- ------------------------------------------------------------
<S> <C>
Dividends (net of foreign taxes, $18,787) $167,894
Interest income 40,037
- ------------------------------------------------------------
Total income $207,931
- ------------------------------------------------------------
Expenses
- ------------------------------------------------------------
Investment adviser fee (Note 2) $174,311
Administration fee (Note 2) 57,605
Compensation of Trustees not
members of the Investment Adviser's
organization (Note 2) 4,136
Custodian fee 84,480
Legal and accounting services 13,152
Amortization of organization expenses
(Note 1C) 619
Miscellaneous 2,814
- ------------------------------------------------------------
Total expenses $337,117
- ------------------------------------------------------------
Net investment loss $(129,186)
- ------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- ------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $2,664,808
Foreign currency transactions (25,377)
- ------------------------------------------------------------
Net realized gain on investment
transactions $2,639,431
- ------------------------------------------------------------
Change in unrealized appreciation
(depreciation) -- Investment
(identified cost basis) $1,925,219
Foreign currency transactions (3,896)
- ------------------------------------------------------------
Net change in unrealized appreciation $1,921,323
- ------------------------------------------------------------
Net realized and unrealized gain on
investments $4,560,754
- ------------------------------------------------------------
Net increase in net assets from
operations $4,431,568
- ------------------------------------------------------------
</TABLE>
See notes to financial statements
10
<PAGE>
Information Age Portfolio 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
income (loss) $(129,186) $ 19,131
Net realized gain
(loss) on
investment
transactions 2,639,431 (269,074)
Net change in
unrealized
appreciation 1,921,323 2,473,566
- ---------------------------------------------------------------
Net increase in net
assets from
operations $4,431,568 $2,223,623
- ---------------------------------------------------------------
Capital transactions --
Contributions $9,685,489 $47,226,307
Withdrawals (8,456,512) (6,846,545)
- ---------------------------------------------------------------
Net increase in net
assets from capital
transactions $1,228,977 $40,379,762
- ---------------------------------------------------------------
Net increase in net
assets $5,660,545 $42,603,385
- ---------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------
At beginning of period $42,703,385 $ 100,000
- ---------------------------------------------------------------
At end of period $48,363,930 $42,703,385
- ---------------------------------------------------------------
</TABLE>
* For the period from the start of business, September 18, 1995, to August 31,
1996.
See notes to financial statements
11
<PAGE>
Information Age Portfolio as of February 28, 1997
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Six Months Ended
February 28, 1997 Year Ended
(Unaudited) August 31, 1996*
- ----------------------------------------------------------------------------
<S> <C> <C>
Ratios to average daily net assets
- ----------------------------------------------------------------------------
Expenses 1.46%+ 1.52%+
Net investment income (loss) (0.56)%+ 0.07%+
Portfolio Turnover 95% 115%
- ----------------------------------------------------------------------------
Average commission rate paid
per share /(1)/ $0.0137 $0.0303
- ----------------------------------------------------------------------------
Net assets, end of period
(000s omitted) $48,364 $42,703
- ----------------------------------------------------------------------------
</TABLE>
* For the period from the start of business, September 18, 1995, to August
31, 1996.
+ Annualized.
/(1)/ Average commission rate paid per share is computed by dividing the total
dollar amount of commissions paid during the fiscal year by the total
number of shares purchased and sold during the fiscal year for which
commissions were charged.
See notes to financial statements
12
<PAGE>
Information Age Portfolio as of February 28, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
------------------------------------------------------------------------------
Information Age Portfolio (the "Portfolio") is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company.
The Portfolio which was organized as a trust under the laws of the State of
New York on September 1, 1992 seeks to provide long-term capital growth by
investing in a global and diversified portfolio of securities of information
age companies. 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 is treated as a partnership for Federal tax
purposes. No provision is made by the Portfolio for Federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes 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 are being amortized on the straight-line
basis over five years.
D Financial 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 the 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.
E Options on Financial Futures -- Upon the purchase of a put option on foreign
currency by the Portfolio, the premium paid is recorded as an investment, the
value of which is marked-to-market daily. When a purchased option expires, the
Portfolio will realize a loss in the amount of the cost of the option. When a
Portfolio enters into a closing sales transaction, the Portfolio will realize
a gain or loss depending upon whether the sales proceeds from the closing
sales transaction are greater or less than the cost of the option. When a
Portfolio exercises a put option, settlement is made in cash. The risk
associated with purchasing options is limited to the premium originally paid.
F Foreign Currency Translation -- Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing on
the respective dates of such transactions. 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.
13
<PAGE>
Information Age Portfolio as of February 28, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
G 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.
H 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.
I Other -- Investment transactions are accounted for on a trade date basis.
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.
J Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolio. Pursuant to the custodian agreement, IBT receives
a fee reduced by credits which are determined based on the average daily cash
balances the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are reflected as a reduction of
operating expense on the statement of operations.
K Interim Financial Information -- The interim financial statements relating
to February 28, 1997 and for the 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 Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), and Lloyd George
Investment Management (Bermuda) Limited, an affiliate of EVM, (the Advisers)
as compensation for management and investment advisory services rendered to
the Portfolio. Under the advisory agreement, the Advisers receive a monthly
fee, divided equally between them, 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 28, 1997
the adviser fee was 0.75% (annualized) of average net assets for such period
and amounted to $174,311. In addition, an administrative fee is earned by 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 28, 1997 the administration fee
was 0.25% (annualized) of average net assets for such period and amounted to
$57,605. Except as to the Trustees of the Portfolio who are not members of the
Advisers or EVM's organization, officers and Trustees receive remuneration for
their services to the Portfolio out of such investment adviser and
administrative fees.
Trustees of the Portfolio that are not affiliated with the Advisers 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 six months
ended February 28, 1997, no significant amounts have been deferred.
Certain of the officers and Trustees of the Portfolio are officers and
directors/trustees of the above organizations.
3 Investment Transactions
-----------------------------------------------------------------------------
Purchase and sales of investments, other than short-term obligations,
aggregated $42,906,185 and $44,452,932, respectively.
14
<PAGE>
Information Age Portfolio as of February 28, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
4 Federal Income Tax Basis of Investments
-----------------------------------------------------------------------------
The cost and unrealized appreciation/depreciation in value of the investments
owned at February 28, 1997, are as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate cost $ 45,503,098
--------------------------------------------------------------
Gross unrealized appreciation $ 5,641,287
Gross unrealized depreciation (1,242,691)
--------------------------------------------------------------
Net unrealized appreciation $ 4,398,596
--------------------------------------------------------------
</TABLE>
5 Risks Associated with Foreign Investments
-----------------------------------------------------------------------------
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less publicly
available information about foreign companies, particularly those not subject
to the disclosure and reporting requirements of the U.S. securities laws.
Foreign issuers are generally not bound by uniform accounting, auditing, and
financial reporting requirements and standards of practice comparable to those
applicable to domestic issuers. Investments in foreign securities also involve
the risk of possible adverse changes in investment or exchange control
regulations, expropriation or confiscatory taxation, limitation on the removal
of funds or other assets of the Portfolio, political or financial instability
or diplomatic and other developments which could affect such investments.
Foreign stock markets, while growing in volume and sophistication, are
generally not as developed as those in the United States, and securities of
some foreign issuers (particularly those 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. The Portfolio did not have
any open obligations under these financial instruments at February 28, 1997.
7 Line of Credit
-----------------------------------------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $120 million unsecured line of credit agreement
with a group of banks. Borrowings will be made by the Portfolio solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each portfolio or fund based on its
borrowings at the bank's base rate or at an amount above either the bank's
adjusted certificate of deposit rate, a Eurodollar rate, or a federal funds
effective rate. In addition, a fee computed at an annual rate of 0.15% on the
daily unused portion of the 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.
15
<PAGE>
EV Traditional Information Age Fund as of February 28, 1997
INVESTMENT MANAGEMENT
EV Traditional Information Age Fund
<TABLE>
<CAPTION>
Officers Independent Trustees
<S> <C>
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
Vice President Business Administration
Barclay Tittmann Norton H. Reamer
Vice President President and Director, United Asset
Management Corporation
James L. O'Connor
Treasurer John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Thomas Otis
Secretary Jack L. Treynor
Investment Adviser and Consultant
</TABLE>
Information Age Portfolio
<TABLE>
<CAPTION>
Officers Independent Trustees
<S> <C>
James B. Hawkes Hon. Edward K.Y. Chen
President and Trustee Professor and Director, Center for Asian Studies,
University of Hong Kong
William Chisholm
Vice President Donald R. Dwight
President, Dwight Partners, Inc.
Michel Normandeau Chairman, Newspapers of New England, Inc.
Vice President
Samuel L. Hayes, III
Raymond O'Neill Jacob H. Schiff Professor of Investment Banking,
Vice President Harvard University Graduate School of
Business Administration
Duncan W. Richardson
Vice President and Norton H. Reamer
Co-Portfolio Manager President and Director, United Asset
Management Corporation
Hon. Robert Lloyd George
Vice President, Trustee and John L. Thorndike
Co-Portfolio Manager Formerly Director, Fiduciary Company Incorporated
James L. O'Connor Jack L. Treynor
Treasurer Investment Adviser and Consultant
Thomas Otis
Secretary
</TABLE>
16
<PAGE>
Sponsor and Manager of EV Traditional Information Age Fund
and Administrator of Information Age Portfolio
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Co-Adviser of Information Age Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
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
Attn: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
(800) 262-1122
EV Traditional Information Age 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.
T-IASRC-4/97
