<PAGE>
[LOGO OF EATON Investing [PHOTO OF THE EARTH
VANCE APPEARS HERE] APPEARS HERE]
for the
21st
Century
Annual Report August 31, 1998
[PHOTO OF
SURGEONS
PERFORMING
SURGERY EATON VANCE
APPEARS HERE]
Worldwide
Health
Sciences Fund
Global Management-Global Distribution
[PHOTO OF PRODUCTION WORKERS
ON ASSEMBLY LINE
APPEARS HERE]
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
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LETTER TO SHAREHOLDERS
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[PHOTO OF JAMES B. HAWKES, PRESIDENT APPEARS HERE]
Eaton Vance Worldwide Health Sciences Fund Class A shares had a total return of
- -15.9% for the year ended August 31, 1998. That return was the result of a
decline in net asset value per share (NAV) from $14.93 on August 31, 1997 to
$12.55 on August 31, 1998./1/
Class B shares had a total return of -16.4% for the year, the result of a
decline in NAV from $11.68 to $9.76./1/
Class C shares had a total return of -15.4% for the period since inception on
January 5, 1998, the result of a decline in NAV from $10.00 to $8.46./1/
Global stock markets encountered extraordinary volatility that sent most markets
- - and drug stocks - sharply lower at fiscal year-end. Asian markets were caught
in the turmoil of a continuing currency crisis, emerging economies experienced
slower growth, and several established economies suffered a lack of leadership.
Japan, home to some of the world's largest drug companies, remained mired in a
deep recession.
Despite a slower global economy, more biotech breakthroughs...
The prospect of slower economic activity has not slowed the pace of major
advances by the world's pharmaceutical and biotech companies. One exciting
development was in the battle against cancer. A new class of drugs has
successfully treated cancers in laboratory mice. The drugs - known as
angiogenesis inhibitors - block the chemical signals that tumors emit in order
to attract new blood vessels. By blocking the growth of new vessels, the drugs
essentially starve the tumors. While the transition from mice to humans is, of
course, a lengthy and uncertain process, the progress of molecular biologists in
isolating this cell mechanism bodes well for the ongoing battle against cancer.
With many battles won, so many more lie ahead...
In March, the World Health Organization warned that tuberculosis could infect 1
billion people in the next 20 years. That sobering testimony suggests a critical
role for drug and biotech companies in improving the quality of life for people
around the globe. Happily, drug companies are achieving major successes in their
efforts to target infectious disease.
We believe that the coming years will bring exciting breakthroughs for the drug
sector - and unusually good opportunities for investors. In the following pages,
Samuel D. Isaly reviews the past year and looks at some of those opportunities
in the year ahead.
Sincerely,
/s/ James B. Hawkes
James B. Hawkes
President
October 9, 1998
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Fund Information
as of August 31, 1998
Performance/2/ Class A Class B Class C
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year -15.9% -16.4% N.A.%
Five Years 13.0 N.A. N.A.
Ten Years 16.9 N.A. N.A.
Life of Fund+ 14.4 -1.2 -15.4
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -20.8% -20.6% N.A.%
Five Years 11.6 N.A. N.A.
Ten Years 16.2 N.A. N.A.
Life of Fund+ 13.9 -3.8 -16.3
+ Inception Dates - Class A: 7/26/85; Class B: 9/23/96; Class C: 1/5/98
Ten Largest Equity Holdings/3/
- --------------------------------------------------------------------------------
By total net assets
Sanofi SA 5.3%
Warner-Lambert Co. 5.0
Genzyme Corp. 4.7
Altana 4.4
Pharmacia & Upjohn, Inc. 4.3
Amgen, Inc. 4.2
Merck & Co., Inc. 4.0
Novartis AG 3.9
Lilly (Eli) & Co. 3.6
Fujisawa Pharmaceutical 3.6
/1/ These returns do not include the 5.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC)
for Class B and Class C shares.
/2/ Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. SEC returns for
Class A shares reflect the maximum 5.75% sales charge. SEC returns for Class
B shares reflect applicable CDSC based on the following schedule: 5% - 1st
and 2nd years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Life-of-Fund SEC return for Class C shares reflects 1% CDSC.
/3/ Ten largest holdings accounted for 43.0% of the Portfolio's investments.
Holdings are subject to change.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
- --------------------------------------------------------------------------------
Mutual fund shares are not insured 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.
- --------------------------------------------------------------------------------
2
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
MANAGEMENT DISCUSSION
[PHOTO OF SAMUEL D. ISALY, PORTFOLIO MANAGER APPEARS HERE]
An interview with Samuel D. Isaly, Director, OrbiMed Advisors, Inc., investment
adviser to Worldwide Health Sciences Portfolio.
Q: Sam, the global markets were extraordinarily volatile in the past fiscal
year. How did drug and biotech stocks fare in that environment?
A: It has clearly been a very difficult investment climate for global
investors, with the economic weakness in Asia and political uncertainties
elsewhere contributing to increasing volatility. Pharmaceutical stocks and
biotech stocks were not spared during the global downturn, although the
decline was less severe than sectors like technology.
What sets the pharmaceutical companies apart in an uncertain economic
scenario is their reliable earnings growth. Drug companies have benefited
from improved pricing and better penetration into global markets. In
addition, the large pharma companies have products in the pipeline that
should contribute to future earnings growth. On the biotech side, more
companies are moving toward profitability while continuing to make progress
in research and to establish marketing agreements with drug companies. In
an uncertain economic environment, investors are understandably attracted
to the upbeat drug and biotech sectors.
Q: Did you make any adjustments to the Portfolio?
A: From a regional allocation standpoint, the Portfolio remains about half
(57.5%) invested in North America. Our European exposure (26.6%) has risen
somewhat in the past year, while our Far Eastern weightings (15.8%) have
declined. The relative exposures to Europe and the Far East are nearly the
reverse of what they were a year ago.
The biggest change is an increased focus on large U.S. pharmaceutical
companies. Leading drug manufacturers have enjoyed strong earnings growth,
thanks to successful new product offerings. In addition, the rise of
managed care in the U.S., originally viewed as a threat to drug companies,
has, in fact, boosted drug company revenues. Finally, the industry has been
gradually consolidating, as companies realize the lower-cost benefits of
merging their marketing and research efforts.
Q: What companies have you found attractive among the large drug
manufacturers?
A: Warner-Lambert Co. is among our largest holdings. The company has
transformed itself from a marketer of over-the-counter consumer products to
a major presence in ethical drugs. Currently, Warner is enjoying two major
success stories. Its blockbuster Lipitor has been found to have higher
efficacy rates than its competitors in the fast-growing cholesterol-
- --------------------------------------------------------------------------------
Sector Distribution /1/
- --------------------------------------------------------------------------------
By total net assets
Major Pharmaceutical Companies 65.6%
Specialty/Biotec Companies 34.3%
Regional Distribution /1/
- --------------------------------------------------------------------------------
By total net assets
[PIE CHART APPEARS HERE]
North American Majors 33.6%
North American Specialty 23.9%
Europe Majors 22.5%
Far East Majors 9.5%
Far East Specialty 6.3%
Europe Specialty 4.1%
/1/ As of 8/31/98. Because the Fund is actively managed, sector distributions
and regional distributions are subject to change.
3
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
MANAGEMENT DISCUSSION CONT'D
[PHOTO APPEARS HERE]
Biotechnology: Building more weapons in the war against disease. Biotech
companies have sharply increased their research and development efforts in
recent years. About 350 products are in late stage development, with more than
30 new products expected to reach FDA review in 1998.
Source: Standard & Poor's
lowering field. Lipitor represents the most successful launch in the
history of the drug industry. Another Warner offering, Rezulin, has been
very effective in fighting type-II diabetes.
Another large holding, Eli Lilly & Co., is the maker of Prozac, the most
widely prescribed antidepressant. The company also has some very promising
new products, including Zyprexa, an anti-psychotic treatment, and Evista,
which is prescribed for osteoporosis. We believe that Lilly's strong
product range should contribute to double-digit earnings growth in coming
years.
Q: What is your current assessment of the biotech sector?
A: Biotech stocks have fared well in 1998, following a very disappointing year
in 1997. The companies have added new products, while taking steps to
reduce costs and improve their marketing efforts. Increasingly, biotech
companies are forging strategic alliances with drug companies that help
finance research and development.
Moreover, there are now about 350 biotechnology products currently in late
development, with around 30 new products likely to receive Food and Drug
Administration (FDA) review in 1998. Naturally, the lion's share of these
projects are related to health care, but other projects are targeting safer
pesticides and more abundant crop yields for the agricultural segment of
the economy. As research technologies improve, we can expect the number of
new products to mushroom.
Q: Could you discuss some of your investments in the biotech sector?
A: Certainly. Genzyme Corp. is the Portfolio's largest biotech holding. The
company is one of the largest participants in the industry and has focused
on niche medical markets through its development of innovative
technologies. Genzyme has had major successes in Ceradase and Cerezyme,
used to treat Gaucher disease, which is accompanied by anemia, fatigue, and
possible bone erosion. The company also has a broad range of surgical
products, which have benefited from the success of its Seprafilm
anti-adhesion product.
Amgen, Inc. is another biotech holding. The company's Epogen drug is a red
blood cell stimulant for kidney dialysis patients. The drug's sales have
risen with the relaxation of some Medicare reimbursement rules, resulting
in both an expansion of the dialysis population and increased dosages.
Amgen also has some promising drugs in the pipeline for treating obesity,
diabetes, and Parkinson's disease.
BioChem Pharma, Inc. is a Canada-based leader in viral, cancer and pain
research. The company`s 3TC drug is considered the bedrock drug in
combination therapies for long-term treatment of AIDs patients. BioChem
Pharma's Zeffrix drug, for treatment of hepatitis B, is another potential
best-seller.
4
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
MANAGEMENT DISCUSSION CONT'D
Q: You mentioned the impact of mergers on the drug industry in recent years.
Are we likely to see more consolidation?
A: Yes. I think it's very likely that global consolidation will continue in
coming years. The impetus to merge is coming from several sources. First,
by combining their resources, drug companies can achieve manufacturing
synergies and significantly reduce costs.
Second, mergers help companies pool their research capabilities. With
today's enhanced technologies and advances in genomics, there are vastly
more potential drug applications and increasing pressure to take those
drugs through the approval process and to market.
Finally, there are likely to be more cross-border mergers, as foreign
companies seek entry into the U.S. market. Despite reimbursement policies,
the U.S. drug market is largely free of cost controls. That makes entry
into the U.S. market highly desirable for large European or Japanese
companies, which are subject to price restraints in their own markets.
Q: You mentioned improvements in drug research technology. Can you give an
example?
A: Yes. Increasingly researchers are using the bullet-and-target method. The
use of robotics and high-speed lab technology permits the testing of many
different compounds against a single disease target. This significantly
increases the odds of ultimate success.
Elsewhere, major efforts are under way in the area of genome decoding, gene
sequencing, and gene mapping. These projects are crucial to creating a
genetic database and then to identifying genetic sequences that are common
to certain types of diseases.
Genetic coding is printed as a sequence of four letters - A, G, C, T - with
several billion letters contained in a single human genome. By using
advanced computer technology, researchers will be able, over time, to
create a complete genetic sequence. Then, after identifying sequences
common to certain diseases, researchers will be able to determine the best
treatment for individuals based on their specific genetic variations. It's
enormously complex, but very exciting for the future of the industry and,
indeed, for the future treatment of patients.
Q: We hear about encouraging advances in heart and cancer research. But what
about infectious disease? Are any of your investments focused in those
areas?
A: Yes. There's a renewed emphasis against infectious diseases among health
care officials and drug companies alike. As the world's populations have
become more mobile, it has become fairly easy to introduce infections from
formerly remote locations to new populations. In recent years, we've seen
fresh U.S. outbreaks of E. coli, strep, hepatitis and tuberculosis, as well
as more exotic and potentially lethal ailments abroad such as hantaviruses,
malaria, and dengue fever.
What complicates the war on bacteria and viruses is their ability to create
defenses against current treatments. The rise of resistant strains is,
therefore, an increasing threat. For example, streptococcus is a leading
cause of illness among children and the elderly. Some strains have grown
resistant to penicillin, the principal weapon against the bacteria.
Another bacterium, staphylococcus, causes staph infections, commonly
acquired by patients in hospitals. Recent cases have shown strains that are
resistant to Vancomycin, the powerful antibiotic normally used to treat the
infection. Drug companies, however, are on the warpath.
One Portfolio holding, Pharmacia & Upjohn, is developing Linezolid, a
treatment for just such an infection. Currently in Phase III clinical tri-
5
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
MANAGEMENT DISCUSSION CONT'D
als, the drug has been shown very effective in sabotaging the bacteria's
ability to produce the proteins necessary to reproduce. Following the
completion of the current clinical trials, the company plans to present the
drug for FDA approval.
Q: Sam, what is your outlook for the drug and biotech sector in the coming
year?
A: With a slowing global economy and increasing evidence that the slowdown is
at last reaching the U.S., the drug and biotech sectors have become
increasingly attractive to investors. While technology companies, auto
makers, and even makers of consumer staples have reported slower earnings,
drug companies have enjoyed strong profit growth.
There is strong historical precedent to support that trend. In uncertain
economic times, drug companies have stood out for their reliable earnings
growth and their ability to introduce new products. For example, during the
last recession in 1990-1991, drug and biotech stocks were clearly the
standout performers.
Regardless of the direction of the economy, drug companies continue to add
to their earnings momentum and supplement their product lines. Meanwhile,
biotech companies are more efficiently targeting diseases, with more
companies nearing profitability. These trends should help fuel industry
growth in coming years. This promises to be an exciting period for drug
companies and for long-term, growth-oriented investors.
[CHART APPEARS HERE]
Comparasion of Changes in Values of a $10,000 Investment in Eaton
Vance Worldwide Health Services Fund, Class A vs. the Standard
& Poor's 500, and the Europe, Australasia and Far East Index*
August 31, 1988 - August 31, 1998
Eaton Vance
Worldwide Health Fund, including
Science Fund maximum sales S&P 500 EAFE
Date Class A Charge Index Index
---- ------- ------ ------- -----
8/31/88 $10,000 $9,422 $10,000 $10,000
9/30/88 $10,340 $9,742 $10,491 $10,439
10/31/88 $10,340 $9,742 $10,764 $11,335
11/30/88 $9,849 $9,280 $10,560 $12,012
12/31/88 $10,057 $9,476 $10,811 $12,081
1/31/89 $10,774 $10,151 $11,580 $12,296
2/28/89 $10,642 $10,027 $11,245 $12,362
3/31/89 $11,198 $10,551 $11,576 $12,122
4/30/89 $11,811 $11,129 $12,156 $12,236
5/31/89 $12,132 $11,431 $12,583 $11,573
6/30/89 $11,538 $10,871 $12,596 $11,381
7/31/89 $12,849 $12,107 $13,709 $12,812
8/31/89 $13,132 $12,373 $13,922 $12,238
9/30/89 $13,934 $13,129 $13,943 $12,798
10/31/89 $13,604 $12,818 $13,592 $12,286
11/30/89 $14,266 $13,442 $13,816 $12,906
12/31/89 $14,633 $13,788 $14,226 $13,386
1/31/90 $14,216 $13,395 $13,247 $12,890
2/28/90 $13,988 $13,180 $13,361 $11,993
3/31/90 $14,296 $13,470 $13,796 $10,746
4/30/90 $14,226 $13,404 $13,425 $10,664
5/31/90 $15,745 $14,835 $14,660 $11,884
6/30/90 $16,053 $15,125 $14,660 $11,782
7/31/90 $16,043 $15,116 $14,584 $11,951
8/31/90 $14,594 $13,750 $13,208 $10,794
9/30/90 $13,363 $12,590 $12,655 $9,293
10/31/90 $15,318 $14,433 $12,570 $10,744
11/30/90 $15,203 $14,325 $13,324 $10,113
12/31/90 $15,426 $14,534 $13,783 $10,281
1/31/91 $16,193 $15,257 $14,356 $10,616
2/28/91 $18,115 $17,069 $15,321 $11,757
3/31/91 $18,704 $17,624 $15,778 $11,054
4/30/91 $18,304 $17,247 $15,784 $11,166
5/31/91 $18,282 $17,226 $16,392 $11,286
6/30/91 $17,282 $16,283 $15,744 $10,460
7/31/91 $18,393 $17,330 $16,450 $10,976
8/31/91 $19,060 $17,959 $16,773 $10,756
9/30/91 $19,727 $18,587 $16,585 $11,366
10/31/91 $20,971 $19,760 $16,781 $11,530
11/30/91 $20,403 $19,224 $16,044 $10,994
12/31/91 $21,939 $20,671 $17,965 $11,566
1/31/92 $23,284 $21,939 $17,607 $11,322
2/28/92 $22,344 $21,053 $17,775 $10,920
3/31/92 $21,594 $20,346 $17,513 $10,202
4/30/92 $20,284 $19,112 $18,001 $10,253
5/31/92 $21,510 $20,267 $18,019 $10,942
6/30/92 $20,832 $19,628 $17,846 $10,427
7/31/92 $20,939 $19,729 $18,549 $10,164
8/31/92 $21,356 $20,122 $18,104 $10,805
9/30/92 $21,117 $19,897 $18,409 $10,595
10/31/92 $21,534 $20,290 $18,447 $10,042
11/30/92 $22,314 $21,025 $19,006 $10,140
12/31/92 $22,435 $21,139 $19,331 $10,195
1/31/92 $21,762 $20,505 $19,468 $10,197
2/28/93 $21,211 $19,985 $19,672 $10,508
3/31/93 $22,435 $21,139 $20,173 $11,427
4/30/93 $23,941 $22,558 $19,660 $12,515
5/31/93 $25,623 $24,142 $20,107 $12,782
6/30/93 $24,641 $23,217 $20,269 $12,585
7/31/93 $24,385 $22,976 $20,161 $13,029
8/31/93 $25,919 $24,421 $20,855 $13,735
9/30/93 $26,335 $24,814 $20,790 $13,429
10/31/93 $27,277 $25,701 $21,194 $13,846
11/30/93 $27,196 $25,625 $20,920 $12,638
12/31/93 $28,360 $26,721 $21,271 $13,554
1/31/94 $29,479 $27,776 $21,962 $14,703
2/28/94 $28,214 $26,584 $21,303 $14,665
3/31/94 $26,513 $24,981 $20,471 $14,037
4/30/94 $26,251 $24,734 $20,707 $14,635
5/31/94 $26,033 $24,529 $20,964 $14,554
6/30/94 $24,884 $23,446 $20,559 $14,763
7/31/94 $24,956 $23,515 $21,206 $14,909
8/31/94 $26,614 $25,077 $22,004 $15,265
9/30/94 $27,007 $25,447 $21,564 $14,787
10/31/94 $26,629 $25,090 $22,014 $15,283
11/30/94 $26,916 $25,361 $21,144 $14,552
12/31/94 $26,539 $25,006 $21,560 $14,647
1/31/95 $27,811 $26,205 $22,083 $14,087
2/28/95 $28,455 $26,811 $22,880 $14,051
3/31/95 $28,722 $27,063 $23,653 $14,931
4/30/95 $29,288 $27,595 $24,314 $15,496
5/31/95 $30,544 $28,779 $25,197 $15,316
6/30/95 $32,366 $30,495 $25,903 $15,051
7/31/95 $35,004 $32,981 $26,726 $15,992
8/31/95 $36,763 $34,638 $26,718 $15,386
9/30/95 $37,265 $35,112 $27,955 $15,691
10/31/95 $36,621 $34,505 $27,816 $15,273
11/30/95 $38,177 $35,971 $28,958 $15,702
12/31/95 $42,784 $40,312 $29,633 $16,338
1/31/96 $44,937 $42,340 $30,599 $16,409
2/28/96 $45,008 $42,407 $30,812 $16,469
3/31/96 $45,399 $42,776 $31,221 $16,823
4/30/96 $47,481 $44,737 $31,641 $17,316
5/31/96 $49,651 $46,782 $32,364 $17,002
6/30/96 $49,402 $46,548 $32,619 $17,101
7/31/96 $45,453 $42,826 $31,127 $16,606
8/31/96 $48,174 $45,391 $31,713 $16,647
9/30/96 $49,571 $46,707 $33,620 $17,093
10/31/96 $48,342 $45,549 $34,498 $16,922
11/30/96 $48,454 $45,655 $37,030 $17,600
12/31/96 $50,651 $47,725 $36,419 $17,378
1/31/97 $52,849 $49,795 $38,652 $16,774
2/28/97 $53,966 $50,848 $38,881 $17,052
3/31/97 $52,216 $49,199 $37,402 $17,118
4/30/97 $50,167 $47,269 $39,586 $17,213
5/31/97 $55,642 $52,427 $41,905 $18,337
6/30/97 $56,648 $53,375 $43,917 $19,353
7/31/97 $58,920 $55,515 $47,348 $19,670
8/31/97 $56,688 $53,413 $44,628 $18,205
9/30/97 $62,991 $59,352 $47,201 $19,229
10/31/97 $59,270 $55,846 $45,574 $17,755
11/30/97 $57,220 $53,914 $47,606 $17,578
12/31/97 $55,967 $52,733 $48,552 $17,735
1/31/98 $57,827 $54,486 $49,045 $18,551
2/28/98 $59,764 $56,311 $52,500 $19,745
3/31/98 $59,726 $56,275 $55,310 $20,358
4/30/98 $59,080 $55,667 $55,812 $20,523
5/31/98 $56,802 $53,520 $54,761 $20,428
6/30/98 $56,005 $52,769 $57,131 $20,588
7/31/98 $55,473 $52,268 $56,467 $20,801
8/31/98 $47,652 $44,898 $48,235 $18,228
Performance1 Class A Class B Class C
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year -15.9% -16.4% N.A.%
Five Years 13.0 N.A. N.A.
Ten Years 16.9 N.A. N.A.
Life of Fund+ 14.4 -1.2 -15.4
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -20.8% -20.6% N.A.%
Five Years 11.6 N.A. N.A.
Ten Years 16.2 N.A. N.A.
Life of Fund+ 13.9 -3.8-16.3
+Inception Dates - Class A: 7/26/85; Class B: 9/23/96; Class C:1/5/98
* Source: Towers Data Systems, Bethesda, MD. Investment operations commenced
7/26/85. Index information is available only at month-end; therefore, the line
comparison begins at the next month-end following the commencement of the
Fund's investment operations. Past performance is no guarantee of future
results. Investment return and principal fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
The performance chart above compares the Fund's total return with that of a
broad-based securities market index. Returns are calculated by determining the
percentage change in net asset value (NAV) with all distributions reinvested.
The lines on the chart represent the total returns of $10,000 hypothetical
investments in the Fund, the S&P 500 Index - a broad-based, widely recognized
index of 500 common stocks traded in the U.S. - and the Morgan Stanley Capital
International Europe, Australasia, and Far East Index (EAFE) - a broad-based
index of common stocks traded in foreign markets. An investment in the Fund's
Class B shares on 9/30/96 at net asset value would have been worth $9,532 on
August 31, 1998; $9,055 including applicable CDSC. An investment in the Fund's
Class C shares on 1/31/98 at net asset value would have been worth $8,214 on
August 31, 1998; $8,132 including applicable CDSC. The Indices' total returns
do not reflect any commissions or expenses that would have been incurred if an
investor individually purchased or sold the securities represented in the
Indices. It is not possible to invest directly in an index.
1 Returns are calculated by determining the percentage change in net asset value
(NAV) with all distributions reinvested. SEC average annual returns reflect
applicable contingent deferred sales charge (CDSC).
6
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
As of August 31, 1998
Assets
- --------------------------------------------------------------------------------
Investment in Worldwide Health Sciences Portfolio,
at value (identified cost, $159,667,787) $144,409,563
Receivable for Fund shares sold 255,949
Other receivables 123,082
Deferred organization expenses 26,081
- --------------------------------------------------------------------------------
Total assets $144,814,675
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 838,241
Payable to affiliate for Trustees' fees 170
Other accrued expenses 129,231
- --------------------------------------------------------------------------------
Total liabilities $ 967,642
- --------------------------------------------------------------------------------
Net Assets $143,847,033
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Paid-in capital $152,040,330
Accumulated net realized gain on investments from
Portfolio (computed on basis of identified cost) 7,064,927
Net unrealized depreciation of investments from
Portfolio (computed on basis of identified cost) (15,258,224)
- --------------------------------------------------------------------------------
Total $143,847,033
- --------------------------------------------------------------------------------
Class A Shares
- --------------------------------------------------------------------------------
Net Assets $ 66,830,631
Shares Outstanding 5,323,305
Net Asset Value and Redemption Price Per Share
(Net assets/shares of beneficial interest outstanding) $ 12.55
Maximum Offering Price Per Share
(100/94.25 of $12.55) $ 13.32
- --------------------------------------------------------------------------------
Class B Shares
- --------------------------------------------------------------------------------
Net Assets $ 75,111,386
Shares Outstanding 7,697,894
Net Asset Value, Offering Price and Redemption Price
Per Share
(Net assets/shares of beneficial interest $ 9.76
outstanding)
- --------------------------------------------------------------------------------
Class C Shares
- --------------------------------------------------------------------------------
Net Assets $ 1,905,016
Shares Outstanding 225,172
Net Asset Value, Offering Price and Redemption Price
Per Share
(Net assets/shares of beneficial interest outstanding) $ 8.46
- --------------------------------------------------------------------------------
On sales of $50,000 or more, the offering price of Class A shares is reduced.
Statement of Operations
For the Year Ended
August 31, 1998
Investment Income
- --------------------------------------------------------------------------------
Dividends allocated from Portfolio
(net of foreign taxes, $142,305) $ 874,057
Expenses allocated from Portfolio (1,663,000)
- --------------------------------------------------------------------------------
Net investment loss from Portfolio $ (788,943)
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Management fee $ 448,888
Trustees fees and expenses 3,581
Distribution and service fees
Class A 228,635
Class B 738,226
Class C 9,223
Transfer and dividend disbursing agent fees 341,106
Registration fees 51,610
Printing and postage 43,659
Legal and accounting services 19,991
Amortization of organization expenses 8,001
Custodian fee 105
Miscellaneous 18,778
- --------------------------------------------------------------------------------
Total expenses $ 1,911,803
- --------------------------------------------------------------------------------
Net investment loss $ (2,700,746)
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
- --------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 9,916,277
Foreign currency transactions (148,260)
- --------------------------------------------------------------------------------
Net realized gain $ 9,768,017
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments $(37,264,198)
Foreign currency 2,364
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $(37,261,834)
- --------------------------------------------------------------------------------
Net realized and unrealized loss $(27,493,817)
- --------------------------------------------------------------------------------
Net decrease in net assets from operations $(30,194,563)
- --------------------------------------------------------------------------------
See notes to financial statements
7
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
Increase (Decrease) Year Ended Year Ended
in Net Assets August 31, 1998 August 31, 1997
- ---------------------------------------------------------------------------
From operations --
Net investment loss $ (2,700,746) $ (1,087,131)
Net realized gain 9,768,017 1,797,036
Net change in unrealized
appreciation (depreciation) (37,261,834) 9,599,183
- ---------------------------------------------------------------------------
Net increase (decrease) in net
assets from operations $ (30,194,563) $ 10,309,088
- ---------------------------------------------------------------------------
Distributions to shareholders --
From net realized gain
Class A $ -- $ (4,230,217)
- ---------------------------------------------------------------------------
Total distributions to shareholders $ -- $ (4,230,217)
- ---------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 30,859,412 $ 50,014,627
Class B 45,190,521 --
Class C 2,603,075 --
Issued in reorganization
of EV Marathon
Worldwide Health
Sciences Fund
Class B 64,663,847 --
Net asset value of shares
issued to shareholders
in payment of
distributions declared
Class A -- 3,802,439
Cost of shares redeemed
Class A (39,199,899) (26,562,560)
Class B (18,157,011) --
Class C (267,568) --
- ---------------------------------------------------------------------------
Net increase in net assets from
Fund share transactions $ 85,692,377 $ 27,254,506
- ---------------------------------------------------------------------------
Net increase in net assets $ 55,497,814 $ 33,333,377
- ---------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------
At beginning of year $ 88,349,219 $ 55,015,842
- ---------------------------------------------------------------------------
At end of year $ 143,847,033 $ 88,349,219
- ---------------------------------------------------------------------------
Accumulated net
investment loss
included in net assets
- ---------------------------------------------------------------------------
At end of year $ -- $ --
- ---------------------------------------------------------------------------
See notes to financial statements
8
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Year Ended August 31,
-------------------------------------------------------------------------------
1998 1997 1996 1995 1994
--------------------------------- --------------------------------------------
Class A Class B Class C/(1)/ Class A Class A Class A Class A
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value -- Beginning of year $ 14.930 $ 11.680 $ 10.000 $ 13.540 $ 11.710 $ 9.150 $ 9.640
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss $ (0.209) $ (0.204) $ (0.076) $ (0.133) $ (0.230) $ (0.170) $ (0.160)
Net realized and unrealized gain (loss) (2.171) (1.716) (1.464) 1.818 3.460 3.410 0.430
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from operations $ (2.380) $ (1.920) $ (1.540) $ 1.685 $ 3.230 $ 3.240 $ 0.270
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain $ -- $ -- $ -- $ (0.295) $ (1.400) $ (0.680) $ (0.760)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ -- $ -- $ -- $ (0.295) $ (1.400) $ (0.680) $ (0.760)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of year $ 12.550 $ 9.760 $ 8.460 $ 14.930 $ 13.540 $ 11.710 $ 9.150
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return/(3)/ (15.94)% (16.44)% (15.40)% 17.67% 31.04% 38.13% 2.69%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data +
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000's omitted) $ 66,831 $ 75,111 $ 1,905 $ 88,349 $ 55,016 $ 17,690 $ 13,231
Ratios (As a percentage of average daily net assets)
Net expenses/(4)/ 1.83% 2.43% 2.67%/(2)/ 2.07% 2.21% 2.44% 2.50%
Net expenses after custodian fee reduction/(4)(5)/ 1.69% 2.29% 2.53%/(2)/ 2.00% -- -- --
Net investment loss (1.21)% (1.80)% (1.84)%/(2)/ (1.60)% (1.81)% (1.80)% (1.65)%
Portfolio Turnover/(6)/ -- -- -- -- 66% 45% 49%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ The operating expenses of the Fund and the Portfolio may reflect a reduction
of the investment adviser fee, an allocation of expenses to the Manager/
Administrator, or both. Had such actions not been taken, the ratios and net
investment loss per share would have been as follows:
Ratios (As a percentage of average daily net assets):
<TABLE>
<S> <C> <C> <C> <C>
Expenses/(4)/ 2.29% -- -- 2.67%
Expenses after custodian fee reduction/(4)(5)/ 2.22% -- -- --
Net investment loss (1.82)% -- -- (1.82)%
Net investment loss per share $ (0.151) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/ For the period from the start of business, January 5, 1998, to August 31,
1998.
/(2)/ Annualized.
/(3)/ 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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(4)/ Includes the Fund's share of its Portfolio's allocated expenses for the
period the Fund was investing in the Portfolio.
/(5)/ The expense ratios for the year ended August 31, 1996, and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The expense
ratios for prior periods ended August 31, 1995, have not been adjusted to
reflect this change.
/(6)/ Portfolio Turnover represents the rate of portfolio activity for the
period while the Fund was making investments directly in securities. The
portfolio turnover rate for the period since the Fund transferred all of
its investable assets to the Portfolio is shown in the Portfolio's
financial statements which are included elsewhere in this report.
See notes to financial statements
9
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
------------------------------------------------------------------------------
Eaton Vance Worldwide Health Sciences Fund (the Fund) is a diversified,
open-end management investment company. The Fund offers three classes of
shares. Class A shares are sold subject to a sales charge imposed at the time
of purchase. Class B and Class C shares are sold at net asset value and are
subject to a contingent deferred sales charge (see Note 6). All classes of
shares have equal rights to assets and voting privileges. Realized and
unrealized gains and losses and net investment income, other than class
specific expenses, are allocated daily to each class of shares based on the
relative net assets of each class to the total net assets of the Fund. Each
class of shares differs in its distribution plan and certain other class
specific expenses. The Fund invests all of its investable assets in interests
in Worldwide Health Sciences 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 (99.8% at August 31, 1998). 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 the significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuations -- Valuation of securities by the Portfolio is
discussed in Note 1A of the Portfolio's Notes to Financial Statements which
are included elsewhere in this report.
B Income -- The Fund's net investment income consists of the Fund's pro rata
share of the net investment income of the Portfolio, less all actual and
accrued expenses of the Fund determined in accordance with generally accepted
accounting principles.
C Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its net investment income, if any,
and any net realized capital gains. Accordingly, no provision for federal
income or excise tax is necessary.
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 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.
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 Other -- Investment transactions are accounted for on a trade date basis.
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 gain (reduced by any available
capital loss carry forwards 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
ex-dividend 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 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.
10
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
NOTES TO FINANCIAL STATEMENTS 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 year ended
August 31, 1998, the fee was equivalent to 0.25% of the Fund's average daily
net assets for the year and amounted to $448,888. EVM has agreed that through
August 31, 1999, if the annual aggregate expenses of the Class A shares
(excluding extraordinary expenses) exceed 2.00% of average daily net assets,
then EVM will reduce its fees and take other actions to the extent required to
reduce the expenses. 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. Certain officers and Trustees
of the Fund and the Portfolio are officers and Trustees of the above
organizations. In addition, administrative fees are paid by the Portfolio to
EVM. See Note 2 of the Portfolio's Notes to Financial Statements which are
included elsewhere in the report.
4 Shares of Beneficial Interest
------------------------------------------------------------------------------
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different classes.
Transactions in shares of beneficial interest were as follows:
Year Ended Year Ended
Class A August 31, 1998 August 31, 1997
------------------------------------------------------------------------------
Sales 1,974,814 3,479,728
Issued to shareholders
electing to receive
payment of distributions
in Fund shares -- 274,867
Redemptions (2,569,073) (1,900,964)
------------------------------------------------------------------------------
Net increase (decrease) (594,259) 1,853,631
------------------------------------------------------------------------------
Year Ended
Class B August 31, 1998
------------------------------------------------------------------------------
Sales 3,723,160
Issued to shareholders electing to receive
payment of distribution in Fund shares --
Redemptions (1,561,658)
Issued to EV Marathon Worldwide Health Sciences
Fund Shareholders 5,536,392
------------------------------------------------------------------------------
Net increase 7,697,894
------------------------------------------------------------------------------
For the Period from
January 5, 1998, to
Class C August 31, 1998
------------------------------------------------------------------------------
Sales 251,792
Issued to shareholders electing to receive
payment of distribution in Fund shares --
Redemptions (26,620)
------------------------------------------------------------------------------
Net increase 225,172
------------------------------------------------------------------------------
5 Distribution Plans
------------------------------------------------------------------------------
Each Class of the Fund has adopted a distribution plan (the Plans) pursuant to
Rule 12b-1 under the Investment Company Act of 1940. The Plans require that
the Class A shares will pay a monthly distribution fee to the Principal
Underwriter, Eaton Vance Distributors, Inc. (EVD), in an amount equal to 0.25%
on an annual basis of the average daily net assets attributable to Class A
shares. EVD may pay up to the entire amount of the Class A distribution fee to
Authorized Firms for providing personal services to shareholders. For the year
ended August 31, 1998, the Class A shares paid or accrued $228,635 payable to
EVD. The Plans require the Class B and Class C shares to pay EVD amounts equal
to 1/365 of 0.75% of the average daily net assets attributable to Class B and
Class C shares for providing ongoing distribution services and facilities to
each class. Each class 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% and 6.25% of the aggregate amount
received by the Fund for the Class B and Class C shares sold, respectively,
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 of each respective class
11
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
NOTES TO FINANCIAL STATEMENTS CONT'D
reduced by the aggregate amount of contingent deferred sales charges (see Note
6) and daily amounts theretofore paid to EVD by each respective class. The
Classes paid or accrued $651,376 and $6,919 for Class B and Class C shares
respectively payable to EVD for the period ended August 31, 1998, representing
0.75% (annualized) of the average daily net assets for Class B and Class C
shares, respectively. At August 31, 1998, the amount of Uncovered Distribution
Charges of EVD calculated under the Plans was approximately $3,971,000 and
$152,000 for Class B and Class C shares respectively.
In addition, the Plans authorize the Class B and Class C shares to make
payments of service fees to EVD, Authorized Firms and other persons in amounts
not exceeding 0.25% of the average daily net assets attributable to Class B
and Class C shares for each fiscal year. The Trustees have initially
implemented the Plans by authorizing Class B shares to make quarterly payments
of service fees to EVD and Authorized Firms in amounts not expected to exceed
0.25% per annum of the average daily net assets attributable to Class B shares
based on the value of Fund shares sold by such persons and remaining
outstanding for at least one year. The Class C Plan permits the Fund to make
monthly payments of service fees in amounts not expected to exceed 0.25% of
the Fund's average daily net assets attributable to Class C shares for any
fiscal 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 when there
are no outstanding Uncovered Distribution Charges of EVD. Service fee payments
for the period ended August 31, 1998, amounted to $86,850 and $2,304 for Class
B and Class C shares respectively.
6 Contingent Deferred Sales Charge
------------------------------------------------------------------------------
A contingent deferred sales charge (CDSC) is imposed on any redemption of
Class B shares made within six years of purchase. A CDSC is imposed on certain
Class C shares redeemed within one year of purchase. Generally, the CDSC is
based upon the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on shares acquired by reinvestment of dividends
or capital gains distributions. Class B CDSC is imposed at declining rates
that begin at 5% in the case of redemptions in the first and second year after
purchase, declining one percentage point each subsequent year. Class C shares
will be subject to a 1% CDSC if redeemed within one year of purchase. 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 each Class's
Distribution Plan (see Note 5). CDSC charges received when no Uncovered
Distribution Charges exist will be credited to the Fund. For the period ended
August 31, 1998, EVD received approximately $414,000 and $2,000 of CDSC paid
by shareholders for Class B and Class C shares respectively.
7 Investment Transactions
------------------------------------------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio for the year
ended August 31, 1998, aggregated $79,130,158 and $58,938,815.
8 Transfer of Net Assets
------------------------------------------------------------------------------
On September 1, 1997, EV Traditional Worldwide Health Sciences Fund, Inc.
acquired the net assets of EV Marathon Worldwide Health Sciences Fund pursuant
to an Agreement and Plan of Reorganization dated June 23, 1997. In accordance
with the agreement, the Fund at the closing, issued 5,536,392 Class B shares
with an aggregate value of $64,663,847 (including unrealized appreciation of
$3,351,226) and a net asset value per share of $11.68. The transaction was
structured for tax purposes to qualify as a tax-free reorganization under the
Internal Revenue Code. Directly after the merger, the combined net assets of
the Fund were $153,013,066, with net asset values of $14.93 and $11.68 for
Class A shares and Class B shares respectively.
9 Name Change
------------------------------------------------------------------------------
Effective September 1, 1997, EV Traditional Worldwide Health Sciences Fund,
Inc. changed its name to Eaton Vance Worldwide Health Sciences Fund.
12
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
INDEPENDENT ACCOUNTANTS' REPORT
To the Trustees and Shareholders of Eaton
Vance Worldwide Health Sciences Fund:
- --------------------------------------------------------------------------------
In our opinion, the accompanying statement of assets and liabilities, and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Eaton Vance Worldwide Health Sciences Fund, Inc. at August 31, 1998, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and financial highlights for
each of the two years in the period then ended, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. The financial
highlights for each of the three years in the period ended August 31, 1996, were
audited by other auditors whose report dated September 26, 1996, expressed an
unqualified opinion on such financial statements and financial highlights. We
conducted our audits in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 2, 1998
13
<PAGE>
Worldwide Health Sciences Portfolio as of August 31, 1998
PORTFOLIO OF INVESTMENTS
(Expressed in United States Dollars)
Common Stocks and Warrants -- 94.32%
Percentage of
Security Shares Value Net Assets
- -------------------------------------------------------------------------------
Major Capitalization - Europe -- 22.58%
- -------------------------------------------------------------------------------
Altana 100,000 $ 6,370,514 4.40%
Ares-Serono 3,350 4,088,766 2.83%
Astra AB, Class A 300,000 5,041,235 3.49%
Novartis AG 3,500 5,595,000 3.87%
Roche Holding AG 370 3,839,841 2.65%
Sanofi SA 68,700 7,725,253 5.34%
- -------------------------------------------------------------------------------
$ 32,660,609 22.58%
- -------------------------------------------------------------------------------
Major Capitalization - Far East -- 9.45%
- -------------------------------------------------------------------------------
Banyu Pharmaceutical Co. 307,000 $ 4,007,474 2.77%
Eisai Co., Ltd. 375,000 4,471,891 3.09%
Fujisawa Pharmaceutical 600,000 5,187,394 3.59%
- -------------------------------------------------------------------------------
$ 13,666,759 9.45%
- -------------------------------------------------------------------------------
Major Capitalization - North America -- 33.61%
- -------------------------------------------------------------------------------
Amgen, Inc./(1)/ 100,000 $ 6,087,500 4.21%
Biochem Pharma, Inc./(1)/ 211,000 3,230,938 2.23%
Biogen, Inc./(1)/ 70,000 3,237,500 2.24%
Centocor, Inc./(1)/ 150,000 4,875,000 3.37%
Genzyme Corp./(1)/ 250,000 6,750,000 4.66%
Lilly (Eli) & Co. 80,000 5,240,000 3.62%
Merck & Co., Inc. 50,000 5,796,875 4.01%
Pharmacia & Upjohn, Inc. 150,000 6,234,375 4.31%
Warner-Lambert Co. 110,000 7,177,499 4.96%
- -------------------------------------------------------------------------------
$ 48,629,687 33.61%
- -------------------------------------------------------------------------------
Specialty Capitalization - Europe -- 4.05%
- -------------------------------------------------------------------------------
Cambridge Antibody
Technology, Ltd./(1)/ 521,040 $ 1,310,520 0.91%
Cambridge Antibody
Technology, Ltd.,
Warrants/(1)(2)(3)/ 15,500 266 0.00%
Ethical Holdings ADR/(1)/ 150,000 42,195 0.03%
Swiss Serum Institute 342 4,500,312 3.11%
- -------------------------------------------------------------------------------
$ 5,853,293 4.05%
- -------------------------------------------------------------------------------
Specialty Capitalization - Far East -- 6.15%
- -------------------------------------------------------------------------------
Biota Holdings, Ltd./(1)/ 1,100,000 $ 2,954,397 2.04%
Rohto Pharmaceutical 500,000 3,176,462 2.20%
Teikoku Hormone
Manufacturing 550,000 2,767,959 1.91%
- -------------------------------------------------------------------------------
$ 8,898,818 6.15%
- -------------------------------------------------------------------------------
Specialty Capitalization - North America -- 18.48%
- -------------------------------------------------------------------------------
Abgenix, Inc./(1)/ 50,000 $ 337,500 0.23%
Agouron Pharmaceuticals,
Inc./(1)/ 150,000 2,887,500 1.99%
Alexion Pharmaceuticals,
Inc./(1)/ 270,000 1,991,250 1.38%
Aviron/(1)/ 125,000 2,710,938 1.87%
Gilead Sciences, Inc./(1)/ 153,500 2,801,375 1.94%
Human Genome Sciences,
Inc./(1)/ 100,000 2,475,000 1.71%
Idec Pharmaceuticals
Corp./(1)/ 55,000 990,000 0.68%
Incyte Pharmaceuticals,
Inc./(1)/ 150,000 2,906,250 2.01%
Lynx Therapeutics,
Inc./(1)/ 150,000 1,387,500 0.96%
Pharmacopeia, Inc./(1)/ 225,000 2,337,885 1.62%
Premier Research
Worldwide/(1)/ 235,000 1,086,875 0.75%
SangStat Medical Corp./(1)/ 125,000 2,078,125 1.44%
Vertex Pharmaceuticals,
Inc./(1)/ 180,000 2,745,000 1.90%
- -------------------------------------------------------------------------------
$ 26,735,198 18.48%
- -------------------------------------------------------------------------------
Total Common Stocks and Warrants
(identified cost $151,937,140) $136,444,364
- -------------------------------------------------------------------------------
Preferred Stocks -- 5.44%
- -------------------------------------------------------------------------------
Specialty Capitalization - North America -- 5.44%
- -------------------------------------------------------------------------------
Abgenix, Inc./(1)(3)/ 276,923 $ 1,869,230 1.29%
Net Genics, Inc.
Convertible, Series D,
Preferred R/(1)(2)(3)/ 250,000 500,000 0.35%
Ontogeny, Inc./(1)(2)(3)/ 600,000 1,500,000 1.04%
Orchid Biocomputer,
Inc./(1)(2)(3)/ 180,180 1,999,998 1.38%
Tularik, Inc./(1)(2)(3)/ 200,000 2,000,000 1.38%
- -------------------------------------------------------------------------------
$ 7,869,228 5.44%
- -------------------------------------------------------------------------------
Total Preferred Stocks
(identified cost $7,799,998) $ 7,869,228
- -------------------------------------------------------------------------------
See notes to financial statements
14
<PAGE>
Worldwide Health Sciences Portfolio as of August 31, 1998
PORTFOLIO OF INVESTMENTS CONT'D
(Expressed in United States Dollars)
Call Options Purchased -- 0.10%
Percentage of
Security Shares Value Net Assets
- --------------------------------------------------------------------------------
Specialty Capitalization - Far East -- 0.10%
- --------------------------------------------------------------------------------
Biota Holdings, Ltd.,
Expires 12/15/99,
Strike Price
AUD1.80/(1)(2)(3)(4)/ 78,738 $ 144,883 0.10%
- --------------------------------------------------------------------------------
$ 144,883 0.10%
- --------------------------------------------------------------------------------
Total Call Options Purchased
(identified cost $31,000) $ 144,883
- --------------------------------------------------------------------------------
Total Investments
(identified cost $159,768,138) $144,458,475 99.86%
- --------------------------------------------------------------------------------
Other Assets, Less Liabilities $ 203,690 0.14%
- --------------------------------------------------------------------------------
Net Assets $144,662,165 100.00%
- --------------------------------------------------------------------------------
/(1)/ Non-income producing security.
/(2)/ Security valued at fair value using methods determined in good faith by or
at the direction of the Trustees.
/(3)/ Restricted security.
/(4)/ AUD = Australian dollars
See notes to financial statements
15
<PAGE>
Worldwide Health Sciences Portfolio as of August 31, 1998
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
As of August 31, 1998
(Expressed in United States Dollars)
Assets
- --------------------------------------------------------------------------------
Investments, at value (identified cost, $144,458,475
$159,768,138)
Cash 15,746
Receivable for investments sold 1,827,205
Dividends receivable 33,600
Deferred organization expenses 8,224
- --------------------------------------------------------------------------------
Total assets $146,343,250
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Demand note payable $ 1,670,000
Payable to affiliate for Trustees' fees 587
Other accrued expenses 10,498
- --------------------------------------------------------------------------------
Total liabilities $ 1,681,085
- --------------------------------------------------------------------------------
Net Assets applicable to investors' interest in $144,662,165
Portfolio
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Net proceeds from capital contributions and $159,971,828
withdrawals
Net unrealized depreciation (computed on the basis (15,309,663)
of identified cost)
- --------------------------------------------------------------------------------
Total $144,662,165
Statement of Operations
For the Year Ended
August 31, 1998
(Expressed in United States Dollars)
Investment Income
- --------------------------------------------------------------------------------
Dividends (net of foreign taxes, $142,488) $ 777,659
- --------------------------------------------------------------------------------
Total investment income $ 777,659
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Investment adviser fee $ 1,162,878
Administration fee 450,794
Trustees fees and expenses 10,039
Custodian fee 250,801
Legal and accounting services 13,123
Amortization of organization expenses 2,417
Miscellaneous 23,290
- --------------------------------------------------------------------------------
Total expenses $ 1,913,342
- --------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 248,283
- --------------------------------------------------------------------------------
Total expense reductions $ 248,283
- --------------------------------------------------------------------------------
Net expenses $ 1,665,059
- --------------------------------------------------------------------------------
Net investment loss $ (887,400)
- --------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- --------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 9,926,335
Foreign currency transactions (147,686)
- --------------------------------------------------------------------------------
Net realized gain $ 9,778,649
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $(37,330,872)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $(37,330,872)
- --------------------------------------------------------------------------------
Net realized and unrealized loss $(27,552,223)
- --------------------------------------------------------------------------------
Net decrease in net assets from operations $(28,439,623)
- --------------------------------------------------------------------------------
See notes to financial statements
16
<PAGE>
Worldwide Health Sciences Portfolio as of August 31, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets (Expressed in United States Dollars)
Increase (Decrease) Year Ended Year Ended
in Net Assets August 31, 1998 August 31, 1997
- --------------------------------------------------------------------------------
From operations --
Net investment loss $ (887,400) $ (756,950)
Net realized gain 9,778,649 1,806,693
Net change in unrealized (37,330,872) 22,021,209
appreciation (depreciation)
- --------------------------------------------------------------------------------
Net increase (decrease) in
net assets $(28,439,623) $ 23,070,952
from operations
- --------------------------------------------------------------------------------
Capital transactions --
Contributions $ 79,343,537 $160,659,674
Withdrawals (58,958,737) (31,113,638)
- --------------------------------------------------------------------------------
Net increase in net assets
from capital $ 20,384,800 $129,546,036
transactions
- --------------------------------------------------------------------------------
Net increase (decrease) in $ (8,054,823) $152,616,988
net assets
Net Assets
- --------------------------------------------------------------------------------
At beginning of year $152,716,988 $ 100,000
- --------------------------------------------------------------------------------
At end of year $144,662,165 $152,716,988
- --------------------------------------------------------------------------------
See notes to financial statements
17
<PAGE>
Worldwide Health Sciences Portfolio as of August 31, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data (Expressed in United States Dollars)
Year Ended August 31,
----------------------------------
1998 1997
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 1.06% 1.25%
Expenses after custodian fee reduction 0.92% 1.18%
Net investment loss (0.49)% (0.81)%
Portfolio Turnover 34% 14%
- --------------------------------------------------------------------------------
Net assets, end of year (000's omitted) $ 144,662 $ 152,717
- --------------------------------------------------------------------------------
See notes to financial statements
18
<PAGE>
Worldwide Health Sciences Portfolio as of August 31, 1998
NOTES TO FINANCIAL STATEMENTS
(Expressed in United States Dollars)
1 Significant Accounting Policies
------------------------------------------------------------------------------
Worldwide Health Sciences Portfolio (the Portfolio) is registered under the
Investment Company Act of 1940 as a diversified, open-end management
investment company which was organized as a trust under the laws of the State
of New York on March 26, 1996. The Declaration of Trust permits the Trustees
to issue interests in the Portfolio. Investment operations began on September
1, 1996, with the acquisition of securities with a value of $51,528,696,
including unrealized appreciation of $9,053,201, in exchange for interest in
the Portfolio by one of the Portfolio's investors. The following is a summary
of the significant accounting policies of the Portfolio. The policies are in
conformity with generally accepted accounting principles.
A Investment Valuations -- Securities listed on a recognized stock exchange,
whether U.S. or foreign, are valued at the last reported sale price on that
exchange prior to the time when assets are valued or prior to the close of
trading on the New York Stock Exchange. In the event that there are no sales,
the last available sale price will be used. If a security is traded on more
than one exchange, the security is valued at the last sale price on the
exchange where the stock is primarily traded. Securities for which market
quotations are not readily available and other assets are valued on a
consistent basis at fair value as determined in good faith by or under the
supervision of the Portfolio's officers in a manner specifically authorized by
the Board of Trustees.
B Income -- Dividend income is recorded on the ex-dividend date, except that
certain dividends from foreign securities are recorded on the ex-dividend date
or as soon thereafter as the Portfolio is informed of the dividend.
C Federal Taxes -- The Portfolio has elected to be treated as a partnership
for United States Federal tax purposes. No provision is made by the Portfolio
for federal or state taxes on any taxable income of the Portfolio because each
investor in the Portfolio is ultimately responsible for the payment of any
taxes. Since some of the Portfolio's investors are regulated investment
companies that invest all or substantially all of their assets in the
Portfolio, the Portfolio must satisfy the applicable source of income and
diversification requirement, (under the Code) in order for its investors to
satisfy them. The Portfolio will allocate at least annually among its
investors each investors' distributive share of the Portfolio's net investment
income, net realized capital gains, and any other items of income, gain, loss,
deduction or credit.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolio. Pursuant to the custodian agreement, IBT receives
a fee reduced by the credits which are determined based on the average daily
cash balances the Portfolio maintains with IBT. All significant credit
balances used to reduce the Portfolio's custodian fees are reflected as a
reduction of operating expense on the Statement of Operations.
E Deferred Organization Expenses -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
F Use of Estimates -- The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expense during the reporting period.
Actual results could differ from those estimates.
G Foreign Currency Translation -- Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing on
the respective dates of such transactions. Recognized gains or losses on
investment transactions attributable to foreign currency rates are recorded
for financial statement purposes as net realized gains and losses on
investments. That portion of unrealized gains and losses on investments that
result from fluctuations in foreign currency exchange rates are not separately
disclosed.
H Forward Foreign Currency Exchange Contracts -- The Portfolio may enter into
forward foreign currency exchange contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date. Risks may arise
upon entering these contracts from the potential inability of counterparties
to meet the terms of their contracts and from movements in the value of a
foreign currency relative to the U.S. dollar. The Portfolio will enter into
forward contracts for hedging purposes as well as nonhedging purposes. The
forward foreign currency exchange contracts are adjusted by the daily exchange
rate
19
<PAGE>
Worldwide Health Sciences Portfolio as of August 31, 1998
NOTES TO FINANCIAL STATEMENTS CONT'D
(Expressed in United States Dollars)
of the underlying currency and any gains and losses are recorded for financial
statement purposes as unrealized until such time as the contracts have been
closed.
I Other -- Investment transactions are accounted for on a trade date basis.
2 Investment Advisory Fees, Administrator's Fees and Other Transactions with
Affiliates
------------------------------------------------------------------------------
Pursuant to the Advisory Agreement, OrbiMed Advisors, Inc. ("OrbiMed") serves
as the Investment Adviser of the Portfolio. Under this agreement OrbiMed
receives a monthly fee at the annual rate of 1% of the Portfolio first $30
million in average net assets, 0.90% of the next $20 million in average net
assets, and 0.75% of average net assets in excess of $50 million. The fee rate
declines for net assets of $500 million and greater. In addition, effective
September 1, 1997, OrbiMed's fee is subject to an upward or downward
performance fee adjustment of up to 0.25% of the average daily net assets of
the Portfolio based upon the investment performance of the Portfolio compared
to the Standard & Poor's Index of 500 Common Stocks over specified periods.
For the year ended August 31, 1998, the fee was equivalent to 0.64% of the
Portfolio's average daily net assets and amounted to $1,162,878.
Under an Administration Agreement between the Portfolio and its Administrator,
Eaton Vance Management (EVM) , EVM manages and administers the affairs of the
Portfolio. EVM earns a monthly fee in the amount of 1/48th of 1% (equal to
0.25% annually) of the average daily net assets of the Portfolio up to
$500,000,000, and at reduced rates as daily net assets exceed that level. For
the year ended August 31, 1998, the administration fee was 0.25% of average
net assets.
Except as to Trustees of the Portfolio who are not members of the Adviser or
EVM's organization, officers and Trustees receive remuneration for their
services to the Portfolio out of such investment adviser and administrative
fees. Certain officers and Trustees of the Portfolio are also officers or
directors/trustees of the above organizations. Trustees of the Portfolio that
are not affiliated with the Investment Adviser may elect to defer receipt of
all or a portion of their annual fees in accordance with the terms of the
Trustee Deferred Compensation Plan. For the year ended August 31, 1998, no
significant amounts have been deferred.
3 Investments
------------------------------------------------------------------------------
Purchases and sales of investments other than U.S. Government securities and
short-term obligations aggregated $87,345,755 and $59,067,914 respectively for
the year ended August 31, 1998.
4 Federal Income Tax Basis of Investments
------------------------------------------------------------------------------
The cost and unrealized appreciation/depreciation in value of the investments
owned at August 31, 1998, as computed on a federal income tax basis, were as
follows:
Aggregate cost $159,768,138
------------------------------------------------------------------------------
Gross unrealized appreciation $ 13,315,964
Gross unrealized depreciation (28,625,627)
------------------------------------------------------------------------------
Net unrealized depreciation $(15,309,663)
------------------------------------------------------------------------------
5 Risks Associated with Foreign Investments
------------------------------------------------------------------------------
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less publicly
available information about foreign companies, particularly those not subject
to the disclosure and reporting requirements of the U.S. securities laws.
Foreign issuers are generally not bound by uniform accounting, auditing, and
financial reporting requirements and standards of practice comparable to those
applicable to domestic issuers. Investments in foreign securities also involve
the risk of possible adverse changes in investment or exchange control
regulations, expropriation or confiscatory taxation, limitation on the removal
of funds or other assets of the Portfolio, political or financial instability
or diplomatic and other developments which could affect such investments.
Foreign stock markets, while growing in volume and sophistication, are
generally not as developed as those in the United States, and securities of
some foreign issuers (particularly those in developing countries) may be less
liquid and more volatile than securities of comparable U.S. companies. In
general, there is less overall governmental supervision and regulation of
foreign securities markets, broker-dealers, and issuers than in the United
States.
20
<PAGE>
Worldwide Health Sciences Portfolio as of August 31, 1998
NOTES TO FINANCIAL STATEMENTS CONT'D
(Expressed in United States Dollars)
6 Line of Credit
------------------------------------------------------------------------------
The Portfolio participates with other portfolios and funds managed by EVM and
its affiliates in a committed $100 million unsecured line of credit agreement
with a group of banks. Borrowings will be made by the Portfolios and funds
solely to facilitate the handling of unusual and/or unanticipated short-term
cash requirements. Interest is charged to each portfolio or fund based on its
borrowings at an amount above the Eurodollar rate or federal funds effective
rate. In addition, a fee computed at an annual rate of 0.10% on the daily
unused portion of the facility is allocated among the participating portfolios
and funds at the end of each quarter. At August 31, 1998, the Portfolio had a
balance outstanding pursuant to this line of credit of $1,670,000. The
Portfolio did not have any significant borrowings or allocated fees during the
year ended August 31, 1998.
7 Restricted Securities
------------------------------------------------------------------------------
At August 31, 1998, the Portfolio owned the following securities (representing
5.54% of net assets) which were restricted as to public resale and not
registered under the Securities Act of 1933. The Fund has various registration
rights (exercisable under a variety of circumstances) with respect to these
securities. The fair value of these securities is determined based on
valuations provided by brokers when available, or, if not available, they are
valued at fair value using methods determined in good faith by or at the
direction of the Trustees.
Date of
Description Acquisition Shares Cost Fair Value
------------------------------------------------------------------------------
Call Options Purchased
------------------------------------------------------------------------------
Biota Holding, Ltd.
Expires 12/15/99,
Strike Price AUD1.80 12/18/95 78,738 $ 0 $144,883
------------------------------------------------------------------------------
$ 0 $144,883
------------------------------------------------------------------------------
Preferred Stocks
------------------------------------------------------------------------------
Abgenix, Inc. 12/18/97 276,923 $1,800,000 $1,869,230
Net Genics, Inc.
Convertible, Series
D, Preferred R 3/20/98 250,000 500,000 500,000
Ontogeny, Inc. 3/13/97 600,000 1,500,000 1,500,000
Orchid Biocomputer,
Inc. 12/19/97 180,180 1,999,998 1,999,998
Tularik, Inc. 10/14/96 200,000 2,000,000 2,000,000
------------------------------------------------------------------------------
$7,799,998 $7,869,228
------------------------------------------------------------------------------
Warrants
------------------------------------------------------------------------------
Cambridge Antibody
Technology, Ltd. 08/28/96 15,500 $31,000 $266
------------------------------------------------------------------------------
$31,000 $266
------------------------------------------------------------------------------
21
<PAGE>
Worldwide Health Sciences Portfolio as of August 31, 1998
INDEPENDENT ACCOUNTANTS' REPORT
To the Trustees and Investors
of Worldwide Health Sciences Portfolio:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Worldwide Health Sciences Portfolio as of
August 31, 1998, and the related statement of operations for the year then
ended, and the statement of changes in net assets and the supplementary data for
the years ended August 31, 1998, and 1997. These financial statements and
supplementary data are the responsibility of the Portfolio's management. Our
responsibility is to express an opinion on these financial statements and
supplementary data based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and supplementary
data are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned at
August 31, 1998, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and supplementary data present fairly,
in all material respects, the financial position of Worldwide Health Sciences
Portfolio at August 31, 1998, the results of its operations for the year then
ended, and the changes in its net assets and supplementary data for the years
ended August 31, 1998, and 1997 in conformity with United States generally
accepted accounting principles.
PricewaterhouseCoopers
Chartered Accountants
Toronto, Ontario
October 2, 1998
See notes to financial statements
22
<PAGE>
Eaton Vance Worldwide Health Sciences Fund as of August 31, 1998
INVESTMENT MANAGEMENT
Eaton Vance Worldwide Health Sciences Fund
Officers
James B. Hawkes
President and Trustee
M. Dozier Gardner
Vice President
William D. Burt
Vice-President
Barclay Tittman
Vice-President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate School of
Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer
United Asset Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
Worldwide Health Sciences Portfolio
Officers
James B. Hawkes
President and Trustee
Samuel D. Isaly
Vice President and
Portfolio Manager
Raymond O'Neill
Vice President
Michel Normandeau
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate School of
Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer
United Asset Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
23
<PAGE>
Sponsor and Manager of Eaton Vance Worldwide
Health Sciences Fund & Administrator of
Worldwide Health Sciences Portfolio
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Advisor of Worldwide Health Sciences Portfolio
OrbiMed Advisors, Inc.
41 Madison Avenue
New York, NY 10010-2202
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
200 Clarendon Street, 16th Floor
Boston, MA 02116
Transfer Agent
First Data Invesor Services Group
Attn: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
(800) 262-1122
Independent Accountants
PricewaterhouseCoopers LLP
One Post Office Square
Boston, MA 02109
Eaton Vance Worldwide Health Sciences 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 sales charges and
expenses. Please read the prospectus carefully before you invest or send money.
- --------------------------------------------------------------------------------
HSSRC-10/98
