<PAGE>
[LOGO OF EATON VANCE
APPEARS HERE] [PICTURE OF GLOBE APPEARS HERE]
Semiannual Report February 28, 1998
EATON VANCE
WORLDWIDE
[PICTURE OF FOREST
APPEARS HERE] DEVELOPING
RESOURCES FUND
Global Management-Global Distribution
[PICTURE OF OIL RIGS ON OCEAN APPEARS HERE]
<PAGE>
Eaton Vance Worldwide Developing Resources Fund as of February 28, 1998
INVESTMENT UPDATE
[PHOTO OF WILLIAM BURT APPEARS HERE]
William Burt,
Co-Portfolio Manager
[PHOTO OF BARCLAY TITTMANN APPEARS HERE]
Barclay Tittmann,
Co-Portfolio Manager
Investment Environment
- --------------------------------------------------------------------------------
The Economy
. The U.S. economy continued to produce extraordinary performance in the
latter part of 1997 and early 1998. Gross Domestic Product increased 3.8% in
1997, and inflation remained low, with the Consumer Price Index increasing
only 1.7% for the year. The unemployment rate reached a 24-year low of 4.6% in
February, 1998, down from 5.3% in July, 1997.
. In the global economy, the Asian currency and economic crisis was a
dominant event. Devaluations occurred in several countries most notably
Thailand, Malaysia, Indonesia, and South Korea -- as a result of high current
account deficits and U.S. dollar debt levels. Latin America and Europe, whose
economies performed well in the first nine months of 1997, felt the tremors of
the Asian crisis in the final quarter. Thus far in 1998, the Asian economic
decline appears to be contained, and the other major global economies are
continuing to show growth.
The Markets
. U.S. stock prices have reflected the healthy economic climate, with strong
performance in the major equity indices led primarily by a select group of
large capitalization stocks. Globally, the Asian economic crisis has resulted
in sharp declines in stock prices on the major Asian exchanges, while the
Latin American and European markets have been less severely affected.
. Stocks in the base metals sector were particularly hard hit, along with
most natural resource stocks, as reduced Asian demand brought commodity prices
down sharply.
. The precious metals sector also experienced a significant correction. Gold
was affected by the Asian crisis, as normal buying from Asian countries dried
up, while Korea was a net seller. This, together with continued central bank
selling, caused the price of gold to fall below $300 in December, 1997, the
lowest it has been in 18 years. On the other hand, the price of silver rose
over $7.00 an ounce in January on news of accumulation by Warren Buffet, but
has fallen back some since.
. In the petroleum sector, natural gas has declined to just above $2/mcf
(million cubic feet), while oil has been crushed by weak Asian demand, OPEC
oversupply, and a mild winter. By mid-March, 1998, oil prices touched
$13/barrel, a multi-year low.
The Fund
- --------------------------------------------------------------------------------
The Past Six Months
. During the six months ended February 28, 1998, the Fund's Class A shares had a
total return of -20.7%. This return resulted from a decrease in net asset
value per share to $7.48 on February 28, 1998 from $9.43 on August 31,
1997./1/
. The Fund's Class B shares had a total return of -21.3% during the period, the
result of a decrease in net asset value per share to $12.26 from $15.57./1/
. By comparison, the average annual total return for mutual funds in the Lipper
Natural Resources Funds Category was -10.3% during this period.*
Current Outlook
. Base metal prices should remain depressed in 1998, barring an unexpected
recovery in Asia. The outlook for gold is improving, as it appears that the
new European Central Bank will require a gold reserve, putting a limit on
central bank selling generally.
. Natural gas prices have stabilized nicely and are expected to hold at current
levels before moving higher later in the year. For oil, the ongoing efforts of
OPEC to reduce supply by one or more million daily barrels should stabilize
prices in the mid-teens. The prospect of a normal 1998-99 winter and possible
Asian recovery later in the year should allow further price gains as the year
progresses.
- --------------------------------------------------------------------------------
Fund Information
as of February 28, 1998
Performance/2/ Class A Class B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year N.A. -36.3%
Five Years N.A. 5.8
Ten Years N.A. 6.6
Life of Fund+ -24.4% 7.3
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year N.A. -39.4%
Five Years N.A. 5.5
Ten Years N.A. 6.6
Life of Fund+ -28.8% 7.3
+ Inception Dates -Class A: 4/17/97; Class B: 10/21/87
Ten Largest Holdings/3/
- --------------------------------------------------------------------------------
By total net assets
Crystallex International 5.8%
Seven Seas Petroleum Co. 5.8
Meridian Resources 4.7
Encal Energy Ltd. 4.6
Louis Dreyfus Natural Gas Corp. 3.8
First Quantum Minerals 3.6
Anadarko 3.4
Coho Energy Inc. 2.9
FX Energy Inc. 2.9
Swift Energy Co. 2.4
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
/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 charge (CDSC) for the
Fund's Class B shares. /2/ Returns are calculated by determining the percentage
change in net asset value with all distributions reinvested. SEC returns for
Class A reflect maximum sales charge as noted; for Class B, SEC returns 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. /3/ As of 2/28/98; holdings
subject to change due to active management. Holdings accounted for 39.9% of the
Portfolio's investments, determined by dividing the total market value of the
holdings by the total net assets.* It is not possible to invest directly in a
Lipper Category.
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.
2
<PAGE>
Eaton Vance Worldwide Developing Resources Fund as of February 28, 1998
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
As of February 28, 1998
Assets
- --------------------------------------------------------------------------------
Investment in Worldwide Developing Resources Portfolio at value
(Note 1A) (identified cost, $20,105,436) $ 14,424,699
Receivable for Fund shares sold 16,622
Deferred organization expenses (Note 1E) 28,936
- --------------------------------------------------------------------------------
Total assets $ 14,470,257
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 28,713
Accrued expenses 54,937
- --------------------------------------------------------------------------------
Total liabilities $ 83,650
- --------------------------------------------------------------------------------
Net Assets for 1,187,120 shares of beneficial interest $ 14,386,607
outstanding
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Paid-in capital $ 20,350,486
Accumulated net realized loss on investments from Portfolio
(computed on the basis of identified cost) (25,748)
Accumulated net investment loss (257,394)
Net unrealized depreciation of investments from Portfolio
(computed on the basis of identified cost) (5,680,737)
- --------------------------------------------------------------------------------
Total $ 14,386,607
- --------------------------------------------------------------------------------
Class A Shares
- --------------------------------------------------------------------------------
Net Assets $ 264,491
Shares Outstanding 35,380
Net Asset Value and Redemption Price Per Share
(Net assets / shares of beneficial interest outstanding) $ 7.48
Offering Price Per Share
(100 / 94.25 of net assets value per share) $ 7.94
- --------------------------------------------------------------------------------
Class B Shares
- --------------------------------------------------------------------------------
Net Assets $ 14,122,116
Shares Outstanding 1,151,740
Net Asset Value, Offering Price and Redemption Price
Per Share (Note 6)
(Net assets / shares of beneficial interest outstanding) $ 12.26
- --------------------------------------------------------------------------------
On sales of $50,000 or more, the offering price of Class A shares is reduced.
Statement of Operations
For the Six Months Ended
February 28, 1998
Investment Income (Note 1B)
- --------------------------------------------------------------------------------
Dividend income allocated from Portfolio
(net of foreign taxes, $594) $ 10,172
Interest income allocated from Portfolio 14,098
Expenses allocated from Portfolio (131,494)
- --------------------------------------------------------------------------------
Net investment loss from Portfolio $ (107,224)
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Compensation of Trustees not members of the
Administrator's organization (Note 4) $ 83
Transfer and dividend disbursing agent fees 21,600
Distribution and service fees (Note 5)
Class A 14
Class B 77,931
Registration fees 14,892
Printing and postage 11,690
Custodian fee 6,868
Amortization of organization expenses (Note 1E) 4,326
Legal and accounting services 3,962
Miscellaneous 7,089
- --------------------------------------------------------------------------------
Total expenses $ 148,455
- --------------------------------------------------------------------------------
Net investment loss $ (255,679)
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
- -------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 466,844
Foreign currency transactions (41)
- --------------------------------------------------------------------------------
Net realized gain on investment transactions $ 466,803
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments $(5,130,872)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of $(5,130,872)
investments
- --------------------------------------------------------------------------------
Net realized and unrealized loss on investments $(4,664,069)
- --------------------------------------------------------------------------------
Net decrease in net assets from operations $(4,919,748)
- --------------------------------------------------------------------------------
See notes to financial statements
3
<PAGE>
Eaton Vance Worldwide Developing Resources Fund as of February 28, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
Increase (Decrease) February 28, 1998 Year Ended
in Net Assets (Unaudited) August 31, 1997
- ---------------------------------------------------------------------------------
<S> <C> <C>
From operations --
Net investment loss $ (255,679) $ (497,332)
Net realized gain on
investment transactions 466,803 1,029,394
Net change in unrealized
appreciation (depreciation)
of investments (5,130,872) (5,411,345)
- ---------------------------------------------------------------------------------
Net decrease in net assets
from operations $ (4,919,748) $ (4,879,283)
- ---------------------------------------------------------------------------------
Distributions to shareholders (Note 2) --
From net realized gain on investments
Class B $ -- $ (4,169,529)
- ---------------------------------------------------------------------------------
Total distributions to shareholders $ -- $ (4,169,529)
- ---------------------------------------------------------------------------------
Transactions in shares of beneficial
interest (Note 3) --
Proceeds from sale of shares
Class A $ 194,975 $ --
Class B 2,273,206 22,007,503
Net asset value of shares issued
to shareholders in payment of
distributions declared
Class B -- 2,940,572
Cost of shares redeemed
Class A (200,694) --
Class B (5,981,349) (13,363,551)
- ---------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions $ (3,713,862) $ 11,584,524
- ---------------------------------------------------------------------------------
Contribution from EV Traditional
Worldwide Developing Resources
Fund (Note 8) $ 355,723 $ --
- ---------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (8,277,887) $ 2,535,712
- ---------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------
At beginning of period $ 22,664,494 $ 20,128,782
- ---------------------------------------------------------------------------------
At end of period $ 14,386,607 $ 22,664,494
- ---------------------------------------------------------------------------------
Accumulated net investment loss
included in net assets
- ---------------------------------------------------------------------------------
At end of period $ (257,394) $ (1,708)
- ---------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
4
<PAGE>
Eaton Vance Worldwide Developing Resources Fund as of February 28, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Year Ended
---------------------------------------------------------------------------
Six Months Ended August 31, September 30,
February 28, 1998 ------------------------------------ ------------------------------------
(Unaudited) 1997 1996 1995* 1994 1993 1992
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Class B Class B Class B Class B Class B Class B Class B
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value --
beginning of period $ 9.430 $ 15.570 $ 21.580 $ 16.420 $ 14.890 $ 13.240 $ 11.850 $ 11.140
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss $(0.091) $ (0.220) $ (0.248) $ (0.261) $ (0.100)++ $ (0.050) $ (0.090) $ (0.083)
Net realized and unrealized
gain (loss)
on investments (1.859) (3.090) (2.427) 6.371 1.630++ 2.650 1.480 1.103
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
operations $(1.950) $ (3.310) $ (2.675) $ 6.110 $ 1.530 $ 2.600 $ 1.390 $ 1.020
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
In excess of net investment
income $ -- $ -- $ -- $ -- $ -- $ (0.020) $ -- $ (0.250)
From net realized gain on
investments -- -- (3.335) (0.950) -- -- -- (0.060)
In excess of net realized
gain on investments -- -- -- -- -- (0.930) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ -- $ -- $ (3.335) $ (0.950) $ -- $ (0.950) $ -- $ (0.310)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- end of
period $ 7.480 $ 12.260 $ 15.570 $ 21.580 $ 16.420 $ 14.890 $ 13.240 $ 11.850
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return /(1)/ (20.68%) (21.26%) (14.49)% 39.69% 10.28% 20.47% 11.73% 9.44%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+++
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 264 $ 14,122 $ 22,664 $ 20,129 $ 15,259 $ 13,055 $ 5,792 $ 3,775
Ratio of expenses to
average daily net
assets/(2)/ 2.21%+ 3.02%+ 2.44% 2.49% 2.43%+ 2.64% 3.15% 3.26%
Ratio of expenses to average
daily net assets after
custodian fee reduction/(2)/ 2.21% + 3.02% + 2.40% 2.47% -- -- -- --
Ratio of net investment loss
to average daily net
assets (1.95%)+ (2.76%)+ (1.92)% (1.60)% (0.74)%+ (0.96)% (0.92)% (0.67)%
Portfolio Turnover/(3)/ -- -- -- 86% 49% 17% 57% 32%
- ------------------------------------------------------------------------------------------------------------------------------------
Average commission rate per
share/(4)/ -- -- -- $ 0.0382 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
</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
Administrator, or both. Had such actions not been taken, the ratios and net
investment loss per share would have been as follows:
<TABLE>
<CAPTION>
Ratios (As a percentage of average daily net assets)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Expenses -- -- -- -- -- -- 3.90% 4.65%
Net investment loss -- -- -- -- -- -- (1.67)% (2.06)%
Net investment loss per share -- -- -- -- -- -- $ (0.210) $ (0.240)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
++ Computed using average shares outstanding throughout the period.
* For the eleven months ended August 31, 1995.
/(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 ex-dividend date. Total return is
not computed on an annualized basis.
See notes to financial statements
5
<PAGE>
Eaton Vance Worldwide Developing Resources Fund as of February 28, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
/(2)/Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
/(3)/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.
/(4)/Average commission rate paid is computed by dividing the total dollar
amount of commissions paid during the fiscal year by the total number of
shares purchased and sold during the fiscal year for which commissions were
charged. For fiscal years beginning on or after September 1, 1995, a fund
is required to disclose its average commission rate per share for security
trades on which commissions were charged. The average commission rate for
the period since the Fund transferred substantially 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
6
<PAGE>
Eaton Vance Worldwide Developing Resources Fund as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
------------------------------------------------------------------------------
Eaton Vance Worldwide Developing Resources Fund (the Fund) is a non-
diversified series of Eaton Vance Growth Trust (the Trust). The Fund 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 investment management company. On April 10, 1997, the Fund transferred
substantially all of its investable assets to the Worldwide Developing
Resources Portfolio (the Portfolio). The Fund offers two classes of shares.
Class A shares are sold subject to a sales charge imposed at the time of
purchase. Class B shares are sold at net asset value and are subject to a
declining 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 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 (70.7% at February
28, 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 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 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. Prior to the Fund's investment in the Portfolio, the
Fund held its investments directly.
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 taxable income, including any
net realized gain on investments. Accordingly, no provision for federal income
or excise tax is necessary.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of 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 or Portfolio's
custodian fees are reported as a reduction of expenses on the Statement of
Operations.
E Deferred Organization Expenses -- Costs incurred by the Fund in connection
with its organization, including registration costs, are being amortized on
the straight-line basis over five years.
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.
Gain or loss on the sale of investments is determined on the identified cost
basis.
H Interim Financial Statements -- The interim financial statements relating to
February 28, 1998 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.
2 Distributions to Shareholders
------------------------------------------------------------------------------
It is the present policy of the Fund to make (a) at least one distribution
annually (normally in December) of all or substantially all of the investment
income allocated to the Fund by the Portfolio, if any, less the Fund's direct
and allocated expenses and (b) at least one distribution
7
<PAGE>
Eaton Vance Worldwide Developing Resources Fund as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
annually of all or substantially all of the net realized capital gains
allocated by the Portfolio to the Fund, if any (reduced by any available
capital loss carryforwards from prior years). Shareholders may reinvest all
distributions in shares of the Fund without a sales charge 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 statement 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 losses. Permanent differences between book and tax
accounting are reclassified to paid-in capital.
3 Shares of Beneficial Interest
------------------------------------------------------------------------------
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). Such
shares may be issued in a number of different classes. Transactions in Fund
shares were as follows:
Six Months Ended
February 28, 1998 Year Ended
(Unaudited) August 31, 1997
-------------------------------------------------
Class A Class B Class B
- --------------------------------------------------------------------------------
Shares sold 21,332 152,284 1,108,712
Shares issued to
shareholders
in reinvestment of
distributions -- -- 154,604
Shares redeemed (23,681) (456,424) (740,328)
Issued to EV Traditional
Worldwide Developing
Resources Fund
shareholders 37,729 -- --
- --------------------------------------------------------------------------------
Net increase (decrease) 35,380 (304,140) 522,988
- --------------------------------------------------------------------------------
4 Transactions with Affiliates
------------------------------------------------------------------------------
Eaton Vance Management (EVM) serves as the Administrator of the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 2 of the Portfolio's Notes to Financial Statements which are included
elsewhere in this report.
Except as to Trustees of the Fund who are not members of EVM's organization,
officers and Trustees receive remuneration for their services to the Fund out
of such investment adviser fee.
Eaton Vance Distributors, Inc., (EVD), a subsidiary of EVM and the Fund's
principal underwriter, received approximately $1,114 as its portion of the
sales charge on sales of Fund shares for the six months ended February 28,
1998.
Certain officers and Trustees of the Fund and the Portfolio are
directors/trustees of the above organizations.
5 Distribution Plans
------------------------------------------------------------------------------
The Fund has adopted distribution plans (Class A Plan, Class B Plan, the
Plans) pursuant to Rule 12b-1 under the Investment Company Act of 1940. The
Plans require the Fund to pay the Principal Underwriter, Eaton Vance
Distributors, Inc. (EVD) amounts equal to 1/365 of 0.75% of the Fund's Class B
daily net assets, for providing ongoing distribution services and facilities
to the Fund. The Fund will automatically discontinue payments to EVD during
any period in which there are no outstanding Uncovered Distribution Charges,
which are equivalent to the sum of (i) 5% of the aggregate amount received by
the Fund for Class B shares sold plus (ii) distribution fees calculated by
applying the rate of 1% over the prevailing prime rate to the outstanding
balance of Uncovered Distribution Charges of EVD, reduced by the aggregate
amount of contingent deferred sales charges (see Note 6) and daily amounts
theretofore paid to EVD. The amount payable to EVD with respect to each day is
accrued on such day as a liability of the Fund and, accordingly, reduces the
Fund's net assets. The Fund paid or accrued $68,762 for Class B shares, to or
payable to EVD for the six months ended February 28, 1998, representing 0.75%
(annualized) of average daily net assets. At February 28, 1998, the amount of
Uncovered Distribution Charges EVD calculated under the Plan was approximately
$725,000.
8
<PAGE>
Eaton Vance Worldwide Developing Resources Fund as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
In addition, the Plans authorize the Fund to make monthly payments of service
fees to the Principal Underwriter, Authorized Firms and other persons in
amounts not exceeding 0.25% of the Fund's average daily net assets for any
fiscal year. The Trustees have initially implemented the Plan by authorizing
the Fund to make quarterly payments of service fees to the Principal
Underwriter and Authorized Firms in amounts not expected to exceed 0.25% per
annum, of the Fund's average daily net assets attributable to both Class A and
Class B shares based on the value of Fund shares sold by such persons and
remaining outstanding for at least one year. Service fee payments will be made
for personal services and/or the maintenance of shareholder accounts. Service
fees are separate and distinct from the sales commissions and distribution
fees payable by the Fund to EVD, and, as such are not subject to automatic
discontinuance where there are no outstanding Uncovered Distribution Charges
of EVD. Service fee payments for the six months ended February 28, 1998
amounted to $14 and $9,169 for Class A and Class B 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. 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 Class B shares acquired by reinvestment of
dividends or capital gains distributions. The CDSC is imposed at declining
rates that begin at 5% in the case of redemptions in the first and second year
after purchase, declining one percentage point each subsequent year. No CDSC
is levied on Class B shares which have been sold to EVM or its affiliates or
to their respective employees or clients. CDSC charges are paid to EVD to
reduce the amount of Uncovered Distribution Charges calculated under the
Fund's Distribution Plan. CDSC charges received when no Uncovered Distribution
Charges exist will be credited to the Fund. For the six months ended February
28, 1998, EVD received approximately $82,000 of CDSC paid by shareholders.
7 Investment Transactions
------------------------------------------------------------------------------
For the six months ended February 28, 1998, increases and decreases of the
Fund's investment in the Portfolio aggregated $2,305,085 and $6,709,968,
respectively.
8 Transfer of Net Assets
------------------------------------------------------------------------------
On September 1, 1997, EV Marathon Worldwide Developing Resources Fund acquired
the net assets of EV Traditional Worldwide Developing Resources Fund pursuant
to an Agreement and Plan of Reorganization dated June 23, 1997. In accordance
with the agreement, the Fund at the closing, issued 37,729 Class A shares with
an aggregate value of $355,723 (including unrealized depreciation of $3,670)
and a net asset value per share of $9.43. 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 $23,020,217, with net asset values of $9.43 and $15.57 for Class A shares
and Class B shares, respectively.
9 Name Change
------------------------------------------------------------------------------
Effective September 1, 1997, EV Marathon Worldwide Developing Resources Fund
changed its name to Eaton Vance Worldwide Developing Resources Fund.
9
<PAGE>
Worldwide Developing Resources Portfolio as of February 28, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Common Stocks -- 103.5%
Security Shares Value
- --------------------------------------------------------------------------------
Diamonds -- 4.3%
- --------------------------------------------------------------------------------
Canabrava Diamond Corp.* 100,000 $ 101,880
Diamondworks, Ltd.*+ 150,000 158,100
Diamondworks, Ltd. 150,000 158,100
Namibian Minerals Corp.* 75,000 173,438
Southernera Resources, Ltd.* 34,700 288,933
- --------------------------------------------------------------------------------
$ 880,451
- --------------------------------------------------------------------------------
Fertilizer -- 2.1%
- --------------------------------------------------------------------------------
Asia Pacific Resources* 100,000 $ 203,070
Potash Corp. of Saskatchewan 2,500 223,438
- --------------------------------------------------------------------------------
$ 426,508
- --------------------------------------------------------------------------------
Metals - Gold -- 27.0%
- --------------------------------------------------------------------------------
Argosy Mining Corp./1/+ 100,000 $ 30,210
Ashanti Goldfields Co., Ltd./1/ 8,889 74,178
Barrick Gold Corp./1/ 15,000 288,750
Bema Gold Corp.+ 20,000 47,500
Black Swan Gold Mines, Ltd. 200,000 40,740
Canarc Resource Corp.+ 150,000 57,960
Crystallex International Corp.*/1/ 150,000 1,181,249
Eldorado Gold Corp., Ltd.*/1/ 19,000 13,212
Eldorado Gold Corp., Ltd./1/+ 41,000 28,520
Etruscan Enterprises, Ltd.* 150,000 415,275
Getchell Gold Corp.* 20,000 372,500
Global Pacific Minerals, Inc.* 400,000 123,640
Golden Gram Resources, Inc.* 250,000 79,050
Gran Colombia Resources, Inc./1/+ 100,000 14,047
Greenstone Resources, Ltd.* 50,000 287,500
Iamgold International African Mining+ 25,000 86,075
Intrepid Minerals Corp. 300,000 84,300
Kazakhstan Minerals Corp. 40,000 20,000
Meridian Gold* 120,000 366,792
Minefinders Corp.* 100,000 140,530
Minorca Resources Inc.* 50,000 28,105
Nevsun Resources, Ltd.* 40,000 103,992
Queenstake Resources, Ltd. 150,000 54,795
Repadre Capital Corp.* 70,000 282,821
Rio Narcea Gold Mines, Ltd.*/1/ 60,000 143,340
Rio Narcea Gold Mines, Ltd./1/ 60,000 143,340
Romarco Minerals, Inc.*/1/ 125,000 241,440
South Pacific Resources Corp.*/1/ 100,000 12,990
Southwestern Gold Corp.*/1/ 80,000 258,016
Steppe Gold Resources, Ltd.* 200,000 46,360
Steppe Gold Resources, Ltd.*+ 200,000 46,360
Sutton Resources Ltd. 20,000 164,424
Tombstone Explorations Co., Ltd./1/+ 225,000 75,870
Triton Mining Corp.*+ 30,000 7,377
Triton Mining Corp.* 50,000 12,295
TVX Gold, Inc.* 5,000 14,688
TVX Gold, Inc.+ 45,000 132,188
- --------------------------------------------------------------------------------
$5,520,429
- --------------------------------------------------------------------------------
Metals - Industrial -- 10.1%
- --------------------------------------------------------------------------------
AMT International Mining Corp.*/1/ 817,200 $ 401,899
Billiton PLC+ 75,000 184,153
Breakwater Resources, Ltd.* 100,000 212,900
Colossal Resources Corp.* 120,000 18,744
Corriente Resources, Inc.*+/1/ 159,500 138,972
First Quantum Minerals* 159,091 447,141
First Quantum Minerals+ 100,000 281,060
Freeport McMoran Copper & Gold, Inc. 16,300 234,313
Panorama Resources 400,000 39,350
Tiomin Resources, Inc./1/+ 200,000 101,180
- --------------------------------------------------------------------------------
$2,059,712
- --------------------------------------------------------------------------------
Metals - Silver -- 2.6%
- --------------------------------------------------------------------------------
Apex Silver Mines, Ltd.* 20,000 $ 231,250
Pan American Silver Corp.* 10,000 98,437
Silver Standard Resources, Inc.* 50,000 212,500
- --------------------------------------------------------------------------------
$ 542,187
- --------------------------------------------------------------------------------
Metals - Steel -- 5.4%
- --------------------------------------------------------------------------------
Ispat International* 15,000 $ 369,375
Reliance Steel and Aluminum Co. 10,000 352,500
Steel Dynamics Corp.* 20,000 380,000
- --------------------------------------------------------------------------------
$1,101,875
- --------------------------------------------------------------------------------
Oil and Gas - Equipment and Services -- 3.2%
- --------------------------------------------------------------------------------
Canadian Fracmaster, Ltd.*+ 11,000 $ 73,428
Noble Drilling Corp. 12,000 340,500
Tidewater, Inc. 5,500 244,750
- --------------------------------------------------------------------------------
$ 658,678
- --------------------------------------------------------------------------------
See notes to financial statements
10
<PAGE>
Worldwide Developing Resources Portfolio as of February 28, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security Shares Value
- --------------------------------------------------------------------------------
Oil and Gas - Exploration
and Production -- 48.2%
- --------------------------------------------------------------------------------
Abacan Resources Corp.* 70,000 $ 137,809
Anadarko Petroleum Corp. 10,700 690,150
Arakis Energy Corp.* 200,000 456,240
Beau Canada Exploration, Ltd./1/ 170,000 308,176
Coho Energy Inc.* 75,000 595,313
EEX Corporation* 35,000 299,688
Encal Energy, Ltd.* 250,000 937,499
FX Energy, Inc. * 50,000 415,625
FX Energy, Inc.+ 20,000 166,250
Harcor Energy Inc.* 40,000 55,000
Louis Dreyfus Natural Gas* 43,200 780,300
Mercantile International Petroleum*/1/ 400,000 104,000
Meridian Resource Corp.* 114,800 954,274
Pease Oil and Gas Co.+ 150,000 215,625
Petsec Energy Ltd., ADR* 28,000 414,750
Probe Exploration Inc.* 100,000 375,920
Ranger Oil Ltd. 75,000 482,813
Seven Seas Petroleum Co./1/ 30,000 884,999
Seven Seas Petroleum Co./1/+ 10,000 295,000
Swift Energy Co. 27,500 493,281
Triton Energy Ltd.* 12,000 379,500
Tusk Energy, Inc.*/1/ 257,600 253,401
United Meridian Corp.* 5,000 136,875
- --------------------------------------------------------------------------------
$ 9,832,488
- --------------------------------------------------------------------------------
Paper and Forest Products -- 0.6%
- --------------------------------------------------------------------------------
Saint Laurent Paperboard, Inc.+ 10,000 $ 113,481
- --------------------------------------------------------------------------------
$ 113,481
- --------------------------------------------------------------------------------
Total Common Stocks
(identified cost $28,502,835) $21,135,809
- --------------------------------------------------------------------------------
Preferred Stocks -- 0.0%
Metals - Gold
- --------------------------------------------------------------------------------
Ashanti Goldfields Co., Ltd., Class A, 3/31/98 8,889 $ --
Ashanti Goldfields Co., Ltd., Class B, 3/31/99 8,889 --
Ashanti Goldfields Co., Ltd., Class C, 3/31/00 8,889 --
Ashanti Goldfields Co., Ltd., Class D, 3/31/01 8,889 --
Ashanti Goldfields Co., Ltd., Class E, 3/31/02 8,889 --
- --------------------------------------------------------------------------------
$ --
- --------------------------------------------------------------------------------
Total Preferred Stocks
(identified cost --) $ --
- --------------------------------------------------------------------------------
Private Placements and Special
Warrants -- 7.0%
Metals - Gold -- 4.5%
- --------------------------------------------------------------------------------
Nevada Pacific Mining Co.+ 40,000 $ 300,000
Quincunx Gold Exploration 300,000 316,067
Western Exploration and Development, Ltd.*+ 600,000 300,000
- --------------------------------------------------------------------------------
$ 916,067
- --------------------------------------------------------------------------------
Metals - Industrial -- 1.3%
- --------------------------------------------------------------------------------
Formation Capital Corp. 400,000 $ 252,960
- --------------------------------------------------------------------------------
$ 252,960
- --------------------------------------------------------------------------------
Oil and Gas - Exploration
and Production -- 1.2%
- --------------------------------------------------------------------------------
Bellator Exploration, Inc.*+ 300,000 $ 252,960
- --------------------------------------------------------------------------------
$ 252,960
- --------------------------------------------------------------------------------
Total Private Placements and Special Warrants
(identified cost $1,758,341) $ 1,421,987
- --------------------------------------------------------------------------------
Warrants -- 0.0%
Diamonds
- --------------------------------------------------------------------------------
Diamondworks, Ltd.+ 150,000 $ --
- --------------------------------------------------------------------------------
$ --
- --------------------------------------------------------------------------------
Metals - Gold
- --------------------------------------------------------------------------------
Argosy Mining Corp.+ 50,000 $ --
Black Swan Gold Mines, Ltd.+ 100,000 --
Canarc Resource Corp.+ 75,000 --
Golden Gram Resources, Inc.* 250,000 --
Iamgold International African Mining+ 12,500 --
Intrepid Minerals Corp. 150,000 --
Minorca Resources, Inc. 12,500 --
Queenstake Resources, Ltd.+ 75,000 --
Steppe Gold Resources, Ltd.+ 100,000 --
- --------------------------------------------------------------------------------
$ --
- --------------------------------------------------------------------------------
Metals - Industrial
- --------------------------------------------------------------------------------
First Quantum Minerals 50,000 $ --
- --------------------------------------------------------------------------------
$ --
- --------------------------------------------------------------------------------
See notes to financial statements
11
<PAGE>
Worldwide Developing Resources Portfolio as of February 28, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security Shares Value
- --------------------------------------------------------------------------------
Total Warrants
(identified cost --) $ --
- --------------------------------------------------------------------------------
Total Investments -- 110.5%
(identified cost $30,261,176) $ 22,557,796
- --------------------------------------------------------------------------------
Other Assets, Less Liabilities -- (10.5)% $ (2,143,000)
- --------------------------------------------------------------------------------
Net Assets -- 100% $ 20,414,796
- --------------------------------------------------------------------------------
ADR -- American Depositary Receipt
* Non-income producing security.
+ Restricted Security.
1 Foreign Security.
See notes to financial statements
12
<PAGE>
Worldwide Developing Resources Portfolio as of February 28, 1998
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
As of February 28, 1998
(Expressed in United States Dollars)
Assets
- --------------------------------------------------------------------------------
Investments, at value (Note 1A)
(identified cost, $30,261,176) $22,557,796
Cash 527
Receivable for investments sold 1,463
Deferred organization expenses (Note 1F) 12,319
- --------------------------------------------------------------------------------
Total assets $22,572,105
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Demand note payable (Note 3) $ 2,116,000
Payable to affiliate for Trustees' fees (Note 2) 291
Accrued expenses 41,018
- --------------------------------------------------------------------------------
Total liabilities $ 2,157,309
- --------------------------------------------------------------------------------
Net Assets applicable to investors' interest in Portfolio $20,414,796
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Net proceeds from capital contributions and withdrawals $28,118,176
Net unrealized depreciation of investments (computed on the
basis of identified cost) (7,703,380)
- --------------------------------------------------------------------------------
Total $20,414,796
- --------------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended
February 28, 1998
(Expressed in United States Dollars)
Investment Income (Note 1G)
- --------------------------------------------------------------------------------
Dividends (net of foreign taxes, $821) $ 13,991
Interest income 19,039
- --------------------------------------------------------------------------------
Total income $ 33,030
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Investment adviser fee (Note 2) $ 97,444
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 1,124
Interest expense 33,431
Custodian fee 31,535
Legal and accounting services 15,634
Amortization of organization expenses (Note 1F) 1,493
Miscellaneous 2,246
- --------------------------------------------------------------------------------
Total expenses $ 182,907
- --------------------------------------------------------------------------------
Net investment loss $ (149,877)
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- --------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 657,566
Foreign currency transactions (56)
- --------------------------------------------------------------------------------
Net realized gain on investment transactions $ 657,510
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $(7,222,388)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of
investments $(7,222,388)
- --------------------------------------------------------------------------------
Net realized and unrealized loss on investments $(6,564,878)
- --------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(6,714,755)
- --------------------------------------------------------------------------------
See notes to financial statements
13
<PAGE>
Worldwide Developing Resources Portfolio as of February 28, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets (Expressed in United States Dollars)
<TABLE>
<CAPTION>
Six Months Ended
Increase (Decrease) February 28, 1998 For the Period Ended
in Net Assets (Unaudited) August 31, 1997 *
- -------------------------------------------------------------------------------------
<S> <C> <C>
From operations --
Net investment loss $ (149,877) $ (88,261)
Net realized gain on
investment transactions 657,510 839,952
Net change in unrealized
appreciation (depreciation)
of investments (7,222,388) (480,992)
- -------------------------------------------------------------------------------------
Net increase (decrease) in net
assets from operations $ (6,714,755) $ 270,699
- -------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 3,689,052 $ 38,738,578
Withdrawals (8,068,363) (7,500,415)
- -------------------------------------------------------------------------------------
Net increase (decrease) in net
assets from
capital transactions $ (4,379,311) $ 31,238,163
- -------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(11,094,066) $ 31,508,862
- -------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------
At beginning of period $ 31,508,862 $ --
- -------------------------------------------------------------------------------------
At end of period $ 20,414,796 $ 31,508,862
- -------------------------------------------------------------------------------------
</TABLE>
* For the period from the start of business, April 10, 1997, to August 31, 1997.
See notes to financial statements
14
<PAGE>
Worldwide Developing Resources Portfolio as of February 28, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data (Expressed in United States Dollars)
<TABLE>
<CAPTION>
Six Months Ended
February 28, 1998 For the Period Ended
(Unaudited) August 31, 1997*
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
Ratios to average daily net assets
- ---------------------------------------------------------------------------------------------------
Expenses 1.42% + 1.19%+
Expenses after custodian fee reduction 1.42% + 1.15%+
Net investment loss (1.16)+ (0.81)%+
Portfolio Turnover 33% 63%
- ---------------------------------------------------------------------------------------------------
Average commission rate (per share) /(1)/ $ 0.0307 $ 0.0325
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $ 20,415 $ 31,509
- ---------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the period from the start of business, April 10, 1997, to August 31,
1997.
/(1)/ Average commission rate paid is computed by dividing the total dollar
amount of commissions paid during the fiscal year by the total number of
shares purchased and sold during the fiscal year for which commissions
were charged.
See notes to financial statements
15
<PAGE>
Worldwide Developing Resources Portfolio as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(Expressed in United States Dollars)
1 Significant Accounting Policies
-----------------------------------------------------------------------------
Worldwide Developing Resources Portfolio (the Portfolio) is registered under
the Investment Company Act of 1940 as a diversified, open-end investment
company which was organized as a trust under the laws of the State of New
York. The Declaration of Trust permits the Trustees to issue beneficial
interests in the Portfolio. Investment operations began on April 10, 1997,
with the acquisition of net assets of $26,141,520 in exchange for an interest
in the Portfolio by one of the Portfolio's investors. The following is a
summary of significant accounting policies of the Portfolio. The policies are
in conformity with accounting principles generally accepted in the United
States of America.
A Investment Valuation -- Securities listed on securities exchanges or in the
NASDAQ National Market System are valued at closing sale prices or, if there
has been no sale, at the mean between the closing bid and asked prices.
Unlisted securities are valued at the mean between the latest bid and asked
prices. Options and financial futures contracts are valued at the last sale
price, as quoted on the principal exchange or board of trade on which such
options or contracts are traded or, in the absence of a sale, the mean
between the last bid and asked prices. Short term obligations, maturing in 60
days or less, are valued at amortized cost, which approximate the value.
Securities for which market quotations are unavailable are appraised at their
fair value as determined in good faith by or at the direction of the
Trustees.
B Income 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.
C Financial Futures Contracts -- Upon the entering of a financial futures
contract, the Portfolio is required to deposit an amount ("initial margin")
either of cash or securities 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.
When the Portfolio enters into a closing transaction, the Portfolio will
realize for book purposes a gain or loss equal to the difference between the
value of the financial futures contract to sell and the financial futures
contract to buy. 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.
D 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 fluctuation in foreign currency exchange rates are not separately
disclosed.
E 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. Risk 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
16
<PAGE>
Worldwide Developing Resources Portfolio as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
(Expressed in United States Dollars)
unrealized until such time as the contracts have been closed or offset.
F Deferred Organization Expenses -- Costs incurred by the Portfolio in
connection with its organization, including registration costs, are being
amortized on the straight-line basis over five years.
G Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Interest income is determined on the basis
of interest accrued. Dividend income is recorded on the ex-dividend date.
Realized gains and losses on the sale of investments are determined on the
identified cost basis.
H 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 income and expense during the
reporting period. Actual results could differ from those estimates.
I 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
expense in the statement of operations.
J Interim Financial Statements -- The interim financial statements relating
to February 28, 1998 and for the six-month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Portfolio'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) as compensation for
management and investment advisory services rendered to the Portfolio. Under
the advisory agreement, the Adviser receives a monthly fee of 0.0625% (0.75%
annually) of the average daily net assets of the Portfolio up to $500
million, and at reduced rates as daily net assets exceed that level. For the
six months ended February 28, 1998, the adviser fee was 0.75% (annualized) 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 fee. Trustees of the
Portfolio that are not affiliated with the Adviser may elect to defer receipt
of all or a percentage of their annual fees in accordance with the terms of
the Trustee Deferred Compensation Plan. For the period ended February 28,
1998 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 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. The Fund may temporarily borrow from the line of
credit to satisfy redemption requests or settle investment transactions.
Interest is charged to each portfolio or fund based on its borrowings at an
amount above either the bank's adjusted certificate of deposit rate,
Eurodollar rate or federal funds rate. In addition, a fee computed at an
annual rate of 0.10% on the daily unused portion of the $100 million line of
credit is allocated among the participating funds and portfolios at the end
of each quarter. At February 28, 1998, the Portfolio had a balance
outstanding pursuant to this line of credit of $2,116,000. The average daily
loan balance for the period ended February 28, 1998 was $1,078,448 and the
average interest rate was 3.1%. The maximum borrowing outstanding at any time
during the period ended February 28, 1998 was $2,795,000.
4 Federal Income Tax Basis of Investments
-----------------------------------------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned at February 28, 1998, as computed on a federal income tax
basis, are as follows:
Aggregate cost $ 30,261,176
-----------------------------------------------------------------------------
Gross unrealized appreciation $ 3,463,109
Gross unrealized depreciation (11,166,489)
-----------------------------------------------------------------------------
Net unrealized depreciation $ (7,703,380)
-----------------------------------------------------------------------------
17
<PAGE>
Worldwide Developing Resources Portfolio as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
(Expressed in United States Dollars)
5 Investment Transactions
-----------------------------------------------------------------------------
Purchases and sales of investments, other than short-term obligations,
aggregated $10,924,919 and $8,678,285, respectively.
18
<PAGE>
Eaton Vance Worldwide Developing Resources Fund as of February 28, 1998
INVESTMENT MANAGEMENT (Unaudited)
Eaton Vance Worldwide Developing Resources Fund
Officers
James B. Hawkes
President and Director
M. Dozier Gardner
Vice President
William D. Burt
Vice President and
Co-Portfolio Manager
Barclay Tittmann
Vice President and
Co-Portfolio Manager
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
President and Director, United Asset
Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
Worldwide Developing Resources Portfolio
Officers
James B. Hawkes
President and Trustee
M. Dozier Gardner
Vice President
Michel Normandeau
Vice President
Raymond O'Neill
Vice President
William D. Burt
Vice President and
Co-Portfolio Manager
Barclay Tittmann
Vice President and
Co-Portfolio Manager
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
President and Director, United Asset
Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
19
<PAGE>
Investment Adviser of
Worldwide Developing Resources Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Administrator of
Eaton Vance Worldwide
Developing Resources Fund
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
200 Clarendon Street
Boston, MA 02116
Transfer Agent
First Data Investor Services Group
Attn: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
(800) 262-1122
Eaton Vance
Worldwide Developing Resources Fund
24 Federal Street
Boston, MA 02110
- --------------------------------------------------------------------------------
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its sales charges and
expenses. Please read the prospectus carefully before you invest or send money.
- --------------------------------------------------------------------------------
