<PAGE>
[LOGO OF EATON VANCE Investing
APPEARS HERE] for the
21st
Century
[PICTURE OF EARTH
APPEARS HERE]
Semiannual Report February 28, 1998
[PICTURE OF SATELLITE
DISH APPEARS HERE]
EATON VANCE
INFORMATION
AGE FUND
Global Management-Global Distribution
[PICTURE OF BABY WITH
COMPUTER APPEARS HERE]
<PAGE>
Eaton Vance Information Age Fund as of February 28, 1998
[PHOTO OF DUNCAN W. RICHARDSON APPEARS HERE]
Duncan W. Richardson
Portfolio Manager
Investment Environment
- --------------------------------------------------------------------------------
The Markets
. The Portfolio's high degree of flexibility benefited shareholders once
again in the fall of 1997. The Fund was able to sidestep the sharp reversals
in the Asian markets. Foreign investments focused predominantly on European
companies in the U.K., France, and Italy. We also reduced technology
holdings prior to that sector's steep fourth-quarter decline.
. Among information sectors, media companies saw rising revenues from
advertising and filmed entertainment. Meanwhile, telecommunication and
Internet-related companies continued to enjoy robust sales growth. Technology
stocks remained volatile due to changing product cycles and weaker Asian
demand.
The Fund
- --------------------------------------------------------------------------------
Performance for the Past Six Months
. The Fund's Class A shares had a total return of 14.3% during the six months
ended February 28, 1998./1/ This return resulted from an increase in net
asset value per share (NAV) to $13.08 on February 28, 1998 from $11.97 on
August 31, 1997, and the reinvestment of $0.535 in capital gains
distributions.
. The Fund's Class B shares had a total return of 14.2% during the six months
ended February 28, 1998./1/ This return resulted from an increase in NAV to
$13.46 on February 28, 1998 from $12.31 on August 31, 1997, and the
reinvestment of $0.535 in capital gains.
. The Fund's Class C shares had a total return of 14.1% during the six months
ended February 28, 1998./1/ This return resulted from an increase in NAV to
$13.12 on February 28, 1998 from $12.02 on August 31, 1997, and the
reinvestment of $0.535 in capital gains.
Management Discussion of Portfolio Holdings
. Xerox Corp. was among the Fund's largest U.S. holdings at February 28, 1998.
The company recently announced the introduction of new printer products and
expanded production capacity for some existing lines. Xerox is uniquely
positioned to take advantage of the growing workplace integration between the
network and copy and print functions.
. Pearson, PLC was among the Portfolio's largest foreign investments. The
British-based media conglomerate posted double-digit earnings growth in 1997,
with its newspaper and television divisions enjoying especially strong
advertising-related revenue growth.
. Documentum, Inc. was a strong U.S. small-cap performer for the Portfolio. The
company produces software that helps businesses integrate the vast volumes of
information they input daily. Documentum has a strong customer base among
manufacturing companies and financial services and has recently made a
successful foray into the government sector.
. Also among the Portfolio's foreign holdings, Alcatel Alsthom is a leading
supplier of equipment, systems, and services to the telecom industry.
Alcatel, which registered $14 billion in telecom-related sales last year,
recently signed an agreement to provide equipment for the AT&T phone network.
. Satellite communication was an important theme for the Portfolio, including
General Motors Corp., Class H. GM's Hughes Electronics subsidiary markets
satellite-based systems and services, including DIRECTV. Another holding,
Orbital Sciences Corp., provides launch services for satellite systems.
. Following a period of underperformance, cable television stocks, including
Comcast Corp. and Telecommunications, Inc., recovered significantly in the
past year. Cable companies have continued to enjoy good subscriber growth and
some pricing flexibility, even amid rising competition from rival
technologies.
- --------------------------------------------------------------------------------
Fund Information
as of February 28, 1998
Performance/2/ Class A Class B Class C
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year 26.3% 26.0% 25.0%
Life of Fund+ 18.9 18.7 18.2
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year 19.0% 21.0% 24.0%
Life of Fund+ 16.1 17.5 18.2
+Inception Dates - Class A: 9/18/95; Class B: 9/18/95; Class C:11/22/95
Ten Largest Holdings/3/ By total net assets
- --------------------------------------------------------------------------------
Misys, PLC 3.2%
Telecom Italia Spa 2.9
Pearson, PLC 2.7
British Telecommunications, PLC 2.2
Energis 2.1
Philips Electronics 2.0
Granada Group, PLC 1.9
Central Newspapers, Inc., Class A 1.8
Lexmark International Group, Inc. 1.8
Xerox Corp. 1.8
/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
the Fund's Class B and Class C shares. /2/ Returns are calculated by determining
the percentage change in net asset value (NAV) with all distributions
reinvested. SEC average annual returns for Class A reflect a sales charge as
noted; for Class B, 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; for Class C, returns reflect 1% CDSC. /3/ Based on market value as of
2/28/98. Ten largest holdings represent 22.4% 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.
- --------------------------------------------------------------------------------
<PAGE>
Eaton Vance Information Age Fund as of February 28, 1998
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
As of February 28, 1998
Assets
- ------------------------------------------------------------------------------------------
<S> <C>
Investment in Information Age Portfolio, at value
(Note 1A) (identified cost, $40,079,014) $ 48,697,482
Receivable for Fund shares sold 62,726
Tax reclaim receivable 15,994
Deferred organization expenses (Note 1D) 67,222
- ------------------------------------------------------------------------------------------
Total assets $ 48,843,424
- ------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 22,175
Payable to affiliate for Trustees' fees 30
Accrued expenses 40,048
- ------------------------------------------------------------------------------------------
Total liabilities $ 62,253
- ------------------------------------------------------------------------------------------
Net Assets for 3,659,756 shares of
beneficial interest outstanding $ 48,781,171
- ------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------
Paid-in capital $ 39,023,683
Accumulated undistributed net realized gain on investments
from Porfolio (computed on the basis of identified cost) 1,464,162
Accumulated net investment loss (325,142)
Net unrealized appreciation of investments from Portfolio
(computed on the basis of identified cost) 8,618,468
- ------------------------------------------------------------------------------------------
Total $ 48,781,171
- ------------------------------------------------------------------------------------------
Class A Shares
- ------------------------------------------------------------------------------------------
Net Assets $ 13,867,277
Shares Outstanding 1,060,139
Net Asset Value and Redemption Price Per Share
(Net assets / shares of beneficial interest outstanding) $ 13.08
Offering Price Per Share
(100/94.25 of net asset value per share) $ 13.88
- ------------------------------------------------------------------------------------------
Class B Shares
- ------------------------------------------------------------------------------------------
Net Assets $ 32,411,236
Shares Outstanding 2,408,845
Net Asset Value, Offering Price and Redemption Price Per Share (Note 6)
(Net assets / shares of beneficial interest outstanding) $ 13.46
- ------------------------------------------------------------------------------------------
Class C Shares
- ------------------------------------------------------------------------------------------
Net Assets $ 2,502,658
Shares Outstanding 190,772
Net Asset Value and Redemption Price Per Share
(Net assets / shares of beneficial interest outstanding) $ 13.12
- ------------------------------------------------------------------------------------------
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, $4,644) $ 241,095
Interest income allocated from Portfolio 73,609
Expenses allocated from Portfolio (318,921)
- ------------------------------------------------------------------------------------------
Net investment loss from Porfolio $ (4,217)
- ------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------
Management fee (Note 3) $ 56,321
Compensation of Trustees not members of the
Administrator's organization (Note 3) 48
Distribution and service fees (Note 5)
Class A 31,693
Class B 137,421
Class C 11,710
Transfer and dividend disbursing agent fees 42,982
Registration fees 13,712
Amortization of organization expenses (Note 1D) 12,838
Printing and postage 7,087
Custodian fee 3,061
Legal and accounting services 754
Miscellaneous 3,298
- ------------------------------------------------------------------------------------------
Total expenses $ 320,925
- ------------------------------------------------------------------------------------------
Net investment loss $ (325,142)
- ------------------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
- ------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 3,370,759
Foreign currency transactions (45,067)
- ------------------------------------------------------------------------------------------
Net realized gain on investment transactions $ 3,325,692
- ------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments $ 3,085,721
Foreign currency (1,317)
- ------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments $ 3,084,404
- ------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 6,410,096
- ------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 6,084,954
- ------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
3
<PAGE>
Eaton Vance Information Age 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 $ (325,142) $ (427,774)
Net realized gain on
investment transactions 3,325,692 2,892,020
Net change in unrealized
appreciation (depreciation)
of investments 3,084,404 2,299,858
- --------------------------------------------------------------------------------------------
Net increase in net assets
from operations $ 6,084,954 $ 4,764,104
- --------------------------------------------------------------------------------------------
Distributions to shareholders (Note 2) --
From net realized gain on investments
Class A $ (552,895) $ --
Class B (1,244,962) (2,278,431)
Class C (102,337) --
- --------------------------------------------------------------------------------------------
Total distributions to shareholders $ (1,900,194) $ (2,278,431)
- --------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest (Note 4) --
Proceeds from sale of shares
Class A $ 1,233,102 $ --
Class B 2,212,534 8,573,846
Class C 307,031 --
Net asset value of shares issued
to shareholders in payment of
distributions declared
Class A 528,078 --
Class B 1,150,455 2,073,164
Class C 95,882 --
Cost of shares redeemed
Class A (1,590,549) --
Class B (2,759,609) (5,896,343)
Class C (257,649) --
- --------------------------------------------------------------------------------------------
Net increase in net assets from Fund
share transactions $ 919,275 $ 4,750,667
- --------------------------------------------------------------------------------------------
Contribution from EV Traditional and
Classic Information Age Funds $ 14,640,318 $ --
- --------------------------------------------------------------------------------------------
Net increase in net assets $ 19,744,353 $ 7,236,340
- --------------------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------------------
At beginning of period $ 29,036,818 $ 21,800,478
- --------------------------------------------------------------------------------------------
At end of period $ 48,781,171 $ 29,036,818
- --------------------------------------------------------------------------------------------
Accumulated
net investment loss
included in net assets
- --------------------------------------------------------------------------------------------
At end of period $ (325,142) $ --
- --------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
4
<PAGE>
Eaton Vance Information Age Fund as of February 28, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1998 --------------------------------
(Unaudited) 1997 1996*
-------------------------------------------- --------------------------------
Class A Class B Class C Class B Class B
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value -- Beginning of period $ 11.970 $ 12.310 $ 12.020 $ 11.040 $ 10.000
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss $ (0.068) $ (0.097) $ (0.102) $ (0.178) $ (0.134)++
Net realized and unrealized gain on investments 1.713 1.782 1.737 2.490 1.174
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 1.645 $ 1.685 $ 1.635 $ 2.312 $ 1.040
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net realized gain on investments $ (0.535) $ (0.535) $ (0.535) $ (1.042) $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.535) $ (0.535) $ (0.535) $ (1.042) $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period $ 13.080 $ 13.460 $ 13.120 $ 12.310 $ 11.040
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return/(1)/ 14.29% 14.22% 14.14% 20.79% 10.40%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $ 13,867 $ 32,411 $ 2,503 $ 29,037 $ 21,800
Ratio of net expenses to average net assets/(2)/ 2.56%+ 2.99%+ 3.06%+ 3.19% 2.96%+
Ratio of net investment loss to average net assets (1.14)%+ (1.58)%+ (1.66)%+ (1.67)% (1.34)%+
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
++ Computed using average shares outstanding.
* For the period from the start of business, September 18, 1995, to August
31, 1996.
/(1)/ Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the payable date. Total return is not
computed on an annualized basis.
/(2)/ Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
See notes to financial statements
5
<PAGE>
Eaton Vance Information Age Fund as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
-----------------------------------------------------------------------------
Eaton Vance Information Age Fund (the Fund) is a diversified series of Eaton
Vance Growth Trust (the "Trust"). The Trust is an entity of the type commonly
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Fund 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 the 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 Information Age
Portfolio (the Portfolio), a New York Trust, having the same investment
objective as the Fund. The value of the Fund's investment in the Portfolio
reflects the Fund's proportionate interest in the net assets of the Portfolio
(83.4% 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 or loss consists of the Fund's
pro rata share of the net investment income of the Portfolio, less all actual
and accrued expenses of the Fund determined in accordance with generally
accepted accounting principles.
C Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its net investment income, if
any, and any net realized capital gains. Accordingly, no provision for
federal income or excise tax is necessary.
D Deferred Organization Expenses -- Costs incurred by the Fund in connection
with its organization, including registration costs, are being amortized on
the straight-line basis over five years.
E 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 operating expenses in 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 Interim Financial Information -- 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 Fund's management, reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Distributions to Shareholders
-----------------------------------------------------------------------------
It is the present policy of the Fund to make at least one distribution
annually (normally in December) of all or substantially all of the investment
income allocated to the Fund by the Portfolio, less the Fund's direct and
allocated expenses and at least one distribution annually of all or
substantially all of the net realized capital gains (reduced by any available
capital loss carryforwards from prior years) allocated by the Portfolio to
the Fund, if any.
Shareholders may reinvest all distributions in shares of the Fund at the per
share net asset value as of the close of business on the record date.
The Fund distinguishes between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in
6
<PAGE>
Eaton Vance Information Age Fund as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONT'D)
excess of tax basis earnings and profits be reported in the financial
statements as a return of capital. Differences in the recognition or
classification of income between the financial statements and tax earnings
and profits which result in temporary over distributions for financial
statement purposes are classified as distributions in excess of net
investment income or accumulated net realized gains. Permanent differences
between book and tax accounting relating to distributions are reclassified to
paid-in capital.
3 Management Fee and Other Transactions with Affiliates
-----------------------------------------------------------------------------
The management fee is earned by Eaton Vance Management (EVM) as compensation
for management and administration of the business affairs of the Fund. The
fee is based on a percentage of average daily net assets. For the six month
period ended February 28, 1998, the fee was equivalent to 0.25% (annualized)
of the Fund's average net assets for such period and amounted to $56,321.
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 directors/trustees of the above organizations. In addition,
investment adviser and administrative fees are paid by the Portfolio to EVM
and its affiliates. See Note 2 of the Portfolio's Notes to Financial
Statements which are included elsewhere in this report.
Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Funds'
principal underwriter, received $163 from the Fund as its portion of the
sales charge on sales of Class A shares for the six months ended February 28,
1998.
4 Shares of Beneficial Interest
-----------------------------------------------------------------------------
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). Such
shares may be issued in a number of different classes. Transactions in Fund
shares were as follows:
Six Months Ended
February 28, 1998
Class A (Unaudited)
-----------------------------------------------------------------------------
Sales 100,801
Issued to shareholders electing to receive payment
of distribution in Fund shares 45,289
Redemptions (129,677)
Issued to EV Traditional Information
Age Shareholders 1,043,726
-----------------------------------------------------------------------------
Net increase 1,060,139
-----------------------------------------------------------------------------
Six Months Ended
February 28, 1998 Year Ended
Class B (Unaudited) August 31, 1997
-----------------------------------------------------------------------------
Sales 175,008 703,921
Issued to shareholders
electing to receive
payment of distribution
in Fund shares 95,520 165,596
Redemptions (219,716) (485,972)
-----------------------------------------------------------------------------
Net increase 50,812 383,545
-----------------------------------------------------------------------------
Six Months Ended
February 28, 1998
Class C (Unaudited)
-----------------------------------------------------------------------------
Sales 25,207
Issued to shareholders electing to receive payment
of distribution in Fund shares 8,195
Redemptions (21,261)
Issued to EV Classic Information
Age Shareholders 178,631
-----------------------------------------------------------------------------
Net increase 190,722
-----------------------------------------------------------------------------
5 Distribution Plan
-----------------------------------------------------------------------------
The Fund has adopted distribution plans (Class A Plan, Class B Plan, Class C
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
average daily net assets
7
<PAGE>
Eaton Vance Information Age Fund as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONT'D)
attributable to Class B and Class C shares 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% 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 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 Fund paid or
accrued $110,165 and $8,782 for Class B and Class C shares, respectively, to
or payable to EVD for the six months ended February 28, 1998, representing
0.75%, and 0.75% (annualized) of the average daily net assets for Class B and
Class C shares, respectively. At February 28, 1998, the amount of Uncovered
Distribution Charges EVD calculated under the Plans was approximately
$913,000 and $130,000 for Class B and Class C shares respectively.
In addition, the Plans authorize the Fund to make payments of service fees to
the Principal Underwriter, Authorized Firms and other persons in amounts not
exceeding 0.25% of the Fund's average daily net assets attributable to Class
A, Class B, and Class C shares for each fiscal year. The Trustees have
initially implemented the Plans 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 Class A, Class B, and Class C 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 when there
are no outstanding Uncovered Distribution Charges of EVD. Service fee
payments for the six months ended February 28, 1998 amounted to $31,693,
$27,256, and $2,928 for Class A, 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 Fund's Distribution Plan (See Note 5). CDSC charges received when
no Uncovered Distribution Charges exist will be credited to the Fund. EVD
received approximately $71,000 and $1,000 of CDSC paid by shareholders for
Class B shares and Class C shares, respectively, for the six months ended
February 28, 1998.
7 Investment Transactions
-----------------------------------------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio aggregated
$5,834,567 and $6,343,081, for the six months ended February 28, 1998.
8 Transfer of Net Assets
-----------------------------------------------------------------------------
On September 1, 1997, EV Marathon Information Age Fund acquired the net
assets of the EV Traditional Information Age Fund and EV Classic Information
Age Fund pursuant to an Agreement and Plan of Reorganization dated June 23,
1997. In accordance with the agreement, EV Marathon Information Age Fund, at
the closing, issued 1,043,726 Class A shares and 178,631 Class C shares of
the Fund having an aggregate value of $12,492,459 and $2,147,859,
respectively. As a result, the Fund issued one Class A share and one Class C
share for each share of EV Traditional Information Age Fund and EV Classic
Information Age Fund, respectively. The transaction was structured for tax
purposes to qualify as a tax free reorganization under the Internal Revenue
Code. The EV Traditional Information Age Fund's and EV Classic Information
Age Fund's net assets at the date of the transaction were $12,492,459 and
$2,147,859, respectively, including $1,702,572 and $241,938 of unrealized
appreciation. Directly after the merger, the combined net assets of the Eaton
Vance Information Age Fund (formerly "EV Marathon Information Age Fund") were
$43,677,136 with a net asset value of $11.97, $12.31 and $12.02 for Class A,
Class B and Class C, respectively.
9 Name Change
-----------------------------------------------------------------------------
Effective September 1, 1997, EV Marathon Information Age Fund changed its
name to Eaton Vance Information Age Fund.
8
<PAGE>
Information Age Portfolio as of February 28, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
(Expressed in United States Dollars)
<TABLE>
<CAPTION>
Common Stocks -- 94.8%
Security Shares Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
Advertising -- 2.2%
- -----------------------------------------------------------------------------------
Omnicom Group, Inc. 12,000 $ 549,004
WPP Group PLC 14,000 750,754
- -----------------------------------------------------------------------------------
$ 1,299,758
- -----------------------------------------------------------------------------------
Aerospace and Defense -- 2.8%
- -----------------------------------------------------------------------------------
General Motors Corp., Class H 25,000 $ 1,035,942
Vickers PLC* 175,000 611,375
- -----------------------------------------------------------------------------------
$ 1,647,317
- -----------------------------------------------------------------------------------
Broadcasting and Cable -- 7.2%
- -----------------------------------------------------------------------------------
CBS Corp. 8,000 $ 247,504
Comcast Corp., Class A 15,000 525,004
Cox Communications, Inc., Class A/(1)/ 22,000 848,379
Granada Group, PLC 70,000 1,099,641
Liberty Media Group, Class A 15,000 411,567
Mediaset SpA 140,000 788,575
Tele-Communications, Inc./(1)/ 10,000 290,629
- -----------------------------------------------------------------------------------
$ 4,211,299
- -----------------------------------------------------------------------------------
Business Services - Miscellaneous -- 2.7%
- -----------------------------------------------------------------------------------
Pittston Brink's Group 23,000 $ 888,379
Robert Half International, Inc. 15,000 678,754
- -----------------------------------------------------------------------------------
$ 1,567,133
- -----------------------------------------------------------------------------------
Communications Equipment -- 1.6%
- -----------------------------------------------------------------------------------
General Instrument Corp./(1)/ 15,000 $ 250,317
L.M. Ericsson Telephone Co., ADR 15,000 679,692
- -----------------------------------------------------------------------------------
$ 930,009
- -----------------------------------------------------------------------------------
Communications Services -- 20.0%
- -----------------------------------------------------------------------------------
Ameritech Corp. 10,000 $ 416,879
BCE, Inc.* 25,000 889,067
Bellsouth Corp. 9,000 549,004
Bezek 250,000 597,653
British Telecommunications, PLC* 125,000 1,263,738
City Telecom Ltd.* 1,218,000 165,183
Energis/(1)/* 150,000 1,211,211
France Telecom SA* 20,000 970,082
GTE Corp. 10,000 541,254
Korea Mobile Telecom Corp.* 307 145,436
Nippon Telegraph and Telephone Corp.* 100 919,945
Orbital Sciences Corp./(1)/ 10,000 381,254
SBC Communications, Inc. 7,000 529,379
Sprint Corp. 9,000 594,004
Telecom Italia Spa/(1)/ 350,000 1,695,339
Telstra Corp.* 50,000 132,641
Videsh Sanchar Nigam Ltd., GDR* 50,000 650,004
- -----------------------------------------------------------------------------------
$11,652,073
- -----------------------------------------------------------------------------------
Computer Software -- 8.8%
- -----------------------------------------------------------------------------------
Documentum, Inc./(1)/ 22,000 $ 1,020,254
Intuit, Inc./(1)/ 9,000 418,504
J.D. Edwards, Inc./(1)/ 15,000 495,004
Micro Focus Group, PLC* 15,000 737,851
Misys, PLC* 42,428 1,870,287
Reynolds & Reynolds Inc., Class A 15,000 318,754
System Software Associates, Inc./(1)/ 40,000 297,504
- -----------------------------------------------------------------------------------
$ 5,158,158
- -----------------------------------------------------------------------------------
Computers and Business Equipment -- 5.7%
- -----------------------------------------------------------------------------------
Cabletron Systems, Inc./(1)/ 25,000 $ 387,504
EMC Corp. 10,000 382,504
Flextech Holdings Ltd.* 507,000 431,760
Lexmark International Group, Inc./(1)/ 25,000 1,068,754
Xerox Corp.* 12,000 1,064,254
- -----------------------------------------------------------------------------------
$ 3,334,776
- -----------------------------------------------------------------------------------
Consumer Services -- 1.0%
- -----------------------------------------------------------------------------------
Cendant Corp./(1)/ 15,000 $ 562,504
- -----------------------------------------------------------------------------------
$ 562,504
- -----------------------------------------------------------------------------------
Drugs -- 0.5%
- -----------------------------------------------------------------------------------
Genzyme Corp., Class A/(1)/ 10,000 $ 295,629
- -----------------------------------------------------------------------------------
$ 295,629
- -----------------------------------------------------------------------------------
Electronics - Instruments -- 11.9%
- -----------------------------------------------------------------------------------
Amano Corp.* 85,000 $ 862,846
Avimo Group Ltd.* 400,000 594,882
Carlton Communications PLC* 90,000 649,740
Dae Duck Electronics, Co./(1)/* 300 23,703
Flextech Holdings Ltd./(1)/* 126,750 42,632
Flextech Holdings Ltd. Warrants/(1)/* 152,100 36,140
</TABLE>
See notes to financial statements
9
<PAGE>
Information Age Portfolio as of February 28, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
(Expressed in United States Dollars)
<TABLE>
<CAPTION>
Security Shares Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
Electronics - Instruments (continued)
- -----------------------------------------------------------------------------------
Martin Gruppen 7,500 $ 310,276
Mitsubishi Electric Corp.* 175,000 532,936
Omron Corp. 40,000 647,135
Philips Electronics* 15,000 1,166,520
Philips Electronics N.V. ADR 5,000 389,379
Roland* 40,000 672,513
Sam Young Electronics Co./(1)/* 3,340 274,076
Toshiba Corp.* 160,000 718,193
- -----------------------------------------------------------------------------------
$ 6,920,971
- -----------------------------------------------------------------------------------
Electronics - Semiconductors -- 2.4%
- -----------------------------------------------------------------------------------
Alcatel Alsthom 5,000 $ 650,886
Samsung Electronics* 13,260 767,346
- -----------------------------------------------------------------------------------
$ 1,418,232
- -----------------------------------------------------------------------------------
Entertainment -- 1.7%
- -----------------------------------------------------------------------------------
Sony Corp.* 5,000 $ 452,044
Time Warner Inc. 8,000 540,004
- -----------------------------------------------------------------------------------
$ 992,048
- -----------------------------------------------------------------------------------
Information Services -- 11.4%
- -----------------------------------------------------------------------------------
Affiliated Computer Services, Inc., Class A/(1)/ 20,000 $ 643,754
Automatic Data Processing, Inc. 12,000 732,754
BISYS Group, Inc./(1)/ 25,000 928,129
Computer Sciences Corp./(1)/ 3,000 314,067
First Consulting Group, Inc./(1)/ 5,000 93,754
Forsoft Ltd.* 23,000 288,942
Gartner Group, Inc., Class A/(1)/ 22,000 877,254
HBO and Co. 5,000 270,629
Paychex, Inc. 15,000 774,379
Reuters Group PLC/(1)/ 86,666 873,329
SunGard Data Systems, Inc. 25,000 854,692
- -----------------------------------------------------------------------------------
$ 6,651,683
- -----------------------------------------------------------------------------------
Investment Services -- 3.3%
- -----------------------------------------------------------------------------------
Charles Schwab and Co., Inc. 18,000 $ 679,504
E*Trade Group, Inc./(1)/ 27,000 722,254
Raymond James Financial Corp. 13,000 518,379
- -----------------------------------------------------------------------------------
$ 1,920,137
- -----------------------------------------------------------------------------------
Lodging and Gaming -- 0.6%
- -----------------------------------------------------------------------------------
Silicon Gaming, Inc./(1)/ 37,500 $ 360,942
- -----------------------------------------------------------------------------------
$ 360,942
- -----------------------------------------------------------------------------------
Medical Products -- 0.6%
- -----------------------------------------------------------------------------------
Respironics, Inc./(1)/ 13,830 $ 375,143
- -----------------------------------------------------------------------------------
$ 375,143
- -----------------------------------------------------------------------------------
Publishing -- 10.4%
- -----------------------------------------------------------------------------------
Central Newspapers, Inc., Class A 15,000 $ 1,071,567
Dow Jones & Co., Inc. 15,000 770,629
McGraw-Hill Companies, Inc. 5,000 378,129
News Corp. Ltd. 150,394 954,029
Pearson, PLC* 105,000 1,565,922
PMP Communications Ltd./(1)/ 325,000 676,927
Springer Alex Verlag AG* 800 668,159
- -----------------------------------------------------------------------------------
$ 6,085,362
- -----------------------------------------------------------------------------------
Total Common Stocks
(identified cost $44,917,596) $55,383,174
- -----------------------------------------------------------------------------------
Commercial Paper -- 3.9%
Principal
Amount
Security (000's omitted) Value
- -----------------------------------------------------------------------------------
General Electric Capital Corp.,
5.68%, 3/2/98 $ 2,255 $ 2,254,288
- -----------------------------------------------------------------------------------
Total Commercial Paper
(identified cost $2,254,288) $ 2,254,288
- -----------------------------------------------------------------------------------
Total Investments -- 98.7%
(identified cost $47,171,884) $57,637,462
- -----------------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.3% $ 764,748
- -----------------------------------------------------------------------------------
Net Assets -- 100% $58,402,210
- -----------------------------------------------------------------------------------
</TABLE>
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
* Foreign security.
/(1)/ Non-income producing security.
See notes to financial statements
10
<PAGE>
Information Age Portfolio as of February 28, 1998
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
As of February 28, 1998
Assets
- --------------------------------------------------------------------------------
Investments, at value (Note 1A)
(identified cost, $47,171,884) $57,637,462
Cash 1,940
Receivable for investments sold 1,428,179
Dividends and interest receivable 179,287
Deferred organization expenses (Note 1C) 3,344
- --------------------------------------------------------------------------------
Total assets $59,250,212
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Payable for investments purchased $ 795,691
Payable for open forward foreign currency contracts (Note 6) 6,087
Payable to affiliate for Trustees' fees (Note 2) 1,958
Accrued expenses 44,266
- --------------------------------------------------------------------------------
Total liabilities $ 848,002
- --------------------------------------------------------------------------------
Net Assets applicable to investors' interest in Portfolio $58,402,210
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Net proceeds from capital contributions and withdrawals $47,935,346
Net unrealized appreciation of investments and foreign currency
(computed on the basis of identified cost) 10,466,864
- --------------------------------------------------------------------------------
Total $58,402,210
- --------------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended
February 28, 1998
Investment Income
- --------------------------------------------------------------------------------
Dividends (net of foreign taxes, $5,619) $ 286,278
Interest income 88,174
- --------------------------------------------------------------------------------
Total income $ 374,452
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Investment adviser fee (Note 2) $ 202,062
Administration fee (Note 2) 67,585
Compensation of Trustees not members of the Investment
Advisers'/Administrator's organization (Note 2) 6,176
Custodian fee 100,804
Legal and accounting services 4,782
Amortization of organization expenses (Note 1C) 619
Miscellaneous 73
- --------------------------------------------------------------------------------
Total expenses $ 382,101
- --------------------------------------------------------------------------------
Net investment loss $ (7,649)
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- --------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 4,012,613
Foreign currency transactions (53,904)
- --------------------------------------------------------------------------------
Net realized gain on investment transactions $ 3,958,709
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 3,735,098
Foreign currency (817)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $ 3,734,281
- --------------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 7,692,990
- --------------------------------------------------------------------------------
Net increase in net assets from operations $ 7,685,341
- --------------------------------------------------------------------------------
See notes to financial statements
11
<PAGE>
Information Age Portfolio as of February 28, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
Six Months Ended
Increase (Decrease) February 28, 1998 Year Ended
in Net Assets (Unaudited) August 31, 1997
- --------------------------------------------------------------------------------
From operations --
Net investment loss $ (7,649) $ (19,786)
Net realized gain on
investment transactions 3,958,709 5,605,068
Net change in unrealized
appreciation (depreciation) 3,734,281 4,259,017
- --------------------------------------------------------------------------------
Net increase in net assets
from operations $ 7,685,341 $ 9,844,299
- --------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,314,271 $ 19,061,455
Withdrawals (7,971,346) (20,235,195)
- --------------------------------------------------------------------------------
Net decrease in net assets from
capital transactions $ (657,075) $ (1,173,740)
- --------------------------------------------------------------------------------
Net increase in net assets $ 7,028,266 $ 8,670,559
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of period $ 51,373,944 $ 42,703,385
- --------------------------------------------------------------------------------
At end of period $ 58,402,210 $ 51,373,944
- --------------------------------------------------------------------------------
See notes to financial statements
12
<PAGE>
Information Age Portfolio as of February 28, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1998 --------------------------------
(Unaudited) 1997 1996*
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Ratios to average daily net assets
- ---------------------------------------------------------------------------------------------------------
Expenses 1.43%+ 1.48% 1.52%+
Net investment income (loss) (0.03)%+ (0.04)% 0.07%+
Portfolio Turnover 88.94% 160% 115%
- ---------------------------------------------------------------------------------------------------------
Average commission rate paid per share/(1)/ $ 0.0172 $ 0.0160 $ 0.0303
- ---------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $ 58,402 $ 51,374 $ 42,703
- ---------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the period from the start of business, September 18, 1995, to August
31, 1996.
/(1)/ Average commission rate paid per share is computed by dividing the total
dollar amount of commissions paid during the fiscal year by the total
number of shares purchased and sold during the fiscal year for which
commissions were charged.
See notes to financial statements
13
<PAGE>
Information Age Portfolio as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
------------------------------------------------------------------------------
Information Age Portfolio (the "Portfolio") is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company.
The Portfolio which was organized as a trust under the laws of the State of
New York on September 1, 1992 seeks to provide long-term capital growth by
investing in a global and diversified portfolio of securities of information
age companies. The Declaration of Trust permits the Trustees to issue
interests in the Portfolio. The following is a summary of the significant
accounting policies of the Portfolio. The policies are in conformity with
generally accepted accounting principles.
A Investment Valuations -- Marketable securities, including options, that are
listed on foreign or U.S. securities exchanges or in the NASDAQ National
Market System are valued at closing sale prices, on the exchange where such
securities are principally traded. Futures positions on securities or
currencies are generally valued at closing settlement prices. Unlisted or
listed securities for which closing sale prices are not available are valued
at the mean between the latest bid and asked prices. Short-term debt
securities with a remaining maturity of 60 days or less are valued at
amortized cost. Other fixed income and debt securities, including listed
securities and securities for which price quotations are available, will
normally be valued on the basis of valuations furnished by a pricing service.
Investments for which valuations or market quotations are unavailable are
valued at fair value using methods determined in good faith by or at the
direction of the Trustees.
B Federal Taxes -- The Portfolio is treated as a partnership for Federal tax
purposes. No provision is made by the Portfolio for Federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes on its share of such
income. Since some of the Portfolio's investors are regulated investment
companies that invest all or substantially all of their assets in the
Portfolio, the Portfolio normally must satisfy the applicable source of income
and diversification requirements (under the Internal Revenue Code), in order
for its investors to satisfy them. The Portfolio will allocate, at least
annually among its investors, each investor's distributive share of the
Portfolio's net investment income, net realized capital gains, and any other
items of income, gain, loss, deduction or credit. Withholding taxes on foreign
dividends and capital gains have been provided for in accordance with the
Trust's understanding of the applicable countries' tax rules and rates.
C Deferred Organization Expenses -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
D Financial Futures Contracts -- Upon the entering of a financial futures
contract, the Portfolio is required to deposit ("initial margin") either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by the Portfolio ("margin maintenance") each day, dependent
on the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by the Portfolio. The
Portfolio's investment in financial futures contracts is designed only to
hedge against anticipated future changes in interest or currency exchange
rates. Should interest or currency exchange rates move unexpectedly, the
Portfolio may not achieve the anticipated benefits of the financial futures
contracts and may realize a loss.
E Options on Financial Futures -- Upon the purchase of a put option on foreign
currency by the Portfolio, the premium paid is recorded as an investment, the
value of which is marked-to-market daily. When a purchased option expires, the
Portfolio will realize a loss in the amount of the cost of the option. When a
Portfolio enters into a closing sales transaction, the Portfolio will realize
a gain or loss depending upon whether the sales proceeds from the closing
sales transaction are greater or less than the cost of the option. When a
Portfolio exercises a put option, settlement is made in cash. The risk
associated with purchasing options is limited to the premium originally paid.
F Foreign Currency Translation -- Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing on
the respective dates of such transactions. Recognized gains or losses on
investment transactions attributable to foreign currency rates are recorded
for financial statement purposes as net realized gains and losses on
investments. That portion of unrealized gains and losses on investments that
result from
14
<PAGE>
Information Age Portfolio as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
fluctuations in foreign currency exchange rates are not separately disclosed.
G Forward Foreign Currency Exchange Contracts -- The Portfolio may enter into
forward foreign currency exchange contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date. Risks may arise
upon entering these contracts from the potential inability of counterparties
to meet the terms of their contracts and from movements in the value of a
foreign currency relative to the U.S. dollar. The Portfolio will enter into
forward contracts for hedging purposes as well as non-hedging purposes. The
forward foreign currency exchange contracts are adjusted by the daily exchange
rate of the underlying currency and any gains or losses are recorded for
financial statement purposes as unrealized until such time as the contracts
have been closed or offset.
H Use of Estimates -- The preparation of the financial statements in
conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
I Other -- Investment transactions are accounted for on a trade date basis.
Dividend income is recorded on the ex-dividend date. However, if the ex-
dividend date has passed, certain dividends from foreign securities are
recorded as the Portfolio is informed of the ex-dividend date. Interest income
is recorded on the accrual basis.
J Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolio. Pursuant to the custodian agreement, IBT receives
a fee reduced by credits which are determined based on the average daily cash
balances the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are reflected as a reduction of
operating expense on the statement of operations.
K Interim Financial Information -- The interim financial statements relating
to February 28, 1998 and for the period then ended have not been audited by
independent certified public accountants, but in the opinion of the Funds
manangement, reflect all adjustments, consisting only of normal recurring
adjustments necessary for the fair presentation of the financial statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
------------------------------------------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), and Lloyd George
Investment Management (Bermuda) Limited, an affiliate of EVM, (the Advisers)
as compensation for management and investment advisory services rendered to
the Portfolio. Under the advisory agreement, the Advisers receive a monthly
fee, divided equally between them, of 0.0625% (0.75% annually) of the average
daily net assets of the Portfolio up to $500,000,000, and at reduced rates as
daily net assets exceed that level. For the six months ended February 28, 1998
the adviser fee was 0.75% (annualized) of average net assets for such period
and amounted to $202,062. In addition, an administrative fee is earned by EVM
for managing and administering the business affairs of the Portfolio. Under
the administration agreement, EVM earns a monthly fee in the amount of 1/48th
of 1% (equal to 0.25% annually) of the average daily net assets of the
Portfolio up to $500,000,000, and at reduced rates as daily net assets exceed
that level. For the six months ended February 28, 1998 the administration fee
was 0.25% (annualized) of average net assets for such period and amounted to
$67,585. Except as to the Trustees of the Portfolio who are not members of the
Advisers, or EVM's organization, officers and Trustees receive remuneration
for their services to the Portfolio out of such investment adviser and
administrative fees.
Trustees of the Portfolio that are not affiliated with the Advisers may elect
to defer receipt of all or a percentage of their annual fees in accordance
with the terms of the Trustees Deferred Compensation Plan. For the six months
ended February 28, 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 Investment Transactions
------------------------------------------------------------------------------
Purchase and sales of investments, other than short-term obligations and
purchased option transactions, aggregated $46,656,814 and $47,237,658,
respectively.
15
<PAGE>
Information Age Portfolio as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
4 Federal Income Tax Basis of Investments
------------------------------------------------------------------------------
The cost and unrealized appreciation/depreciation in value of the investments
owned at February 28, 1998, are as follows:
Aggregate cost $ 47,171,884
------------------------------------------------------------------------------
Gross unrealized appreciation $ 12,113,954
Gross unrealized depreciation (1,648,376)
------------------------------------------------------------------------------
Net unrealized appreciation $ 10,465,578
------------------------------------------------------------------------------
5 Risks Associated with Foreign Investments
------------------------------------------------------------------------------
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less publicly
available information about foreign companies, particularly those not subject
to the disclosure and reporting requirements of the U.S. securities laws.
Foreign issuers are generally not bound by uniform accounting, auditing, and
financial reporting requirements and standards of practice comparable to those
applicable to domestic issuers. Investments in foreign securities also involve
the risk of possible adverse changes in investment or exchange control
regulations, expropriation or confiscatory taxation, limitation on the removal
of funds or other assets of the Portfolio, political or financial instability
or diplomatic and other developments which could affect such investments.
Foreign stock markets, while growing in volume and sophistication, are
generally not as developed as those in the United States, and securities of
some foreign issuers (particularly those located in developing countries) may
be less liquid and more volatile than securities of comparable U.S. companies.
In general, there is less overall governmental supervision and regulation of
foreign securities markets, broker-dealers, and issuers than in the United
States.
6 Financial Instruments
------------------------------------------------------------------------------
The Portfolio regularly trades in financial instruments with off-balance sheet
risk in the normal course of its investing activities to assist in managing
exposure to various market risks. These financial instruments include written
options, forward foreign currency exchange contracts and financial futures
contracts and may involve, to a varying degree, elements of risk in excess of
the amounts recognized for financial statement purposes. The notional or
contractual amounts of these instruments represent the investment the
Portfolio has in particular classes of financial instruments and does not
necessarily represent the amounts potentially subject to risk. The measurement
of the risks associated with these instruments is meaningful only when all
related and offsetting transactions are considered.
The Portfolio did not have any open obligations under these financial
instruments at February 28, 1998.
7 Line of Credit
------------------------------------------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $100 million unsecured line of credit agreement
with a group of banks. The Portfolio 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 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
facility is allocated among the participating funds and portfolios at the end
of each quarter. The Portfolio did not have any significant borrowings or
allocated fees during the period ended February 28, 1998.
16
<PAGE>
Eaton Vance Information Age Fund as of February 28, 1998
INVESTMENT MANAGEMENT
Eaton Vance Information Age Fund
Officers
James B. Hawkes
President and Trustee
M. Dozier Gardner
Vice President
William D. Burt
Vice President
Barclay Tittmann
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
President and Director, United Asset
Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
Information Age Portfolio
Officers
James B. Hawkes
President and Trustee
Michel Normandeau
Vice President
Raymond O'Neill
Vice President
Duncan W. Richardson
Vice President and
Co-Portfolio Manager
Hon. Robert Lloyd George
Vice President, Trustee and
Co-Portfolio Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Hon. Edward K.Y. Chen
Professor and Director, Center for Asian Studies,
University of Hong Kong
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
17
<PAGE>
This Page Intentionally Left Blank
<PAGE>
This Page Intentionally Left Blank
<PAGE>
Sponsor and Manager of Eaton Vance Information Age
Fund and Administrator of Information Age Portfolio
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Co-Advisor of Information Age Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Lloyd George Investment Management (Bermuda) Limited
3808 One Exchange Square
Central, Hong Kong
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
200 Clarendon Street, 16th Floor
Boston, MA 02116
Transfer Agent
First Data Investor Services Group, Inc.
Attn: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
(800) 262-1122
Eaton Vance Information Age Fund
24 Federal Street
Boston, MA 02110
- --------------------------------------------------------------------------------
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its sales charges and
expenses. Please read the prospectus carefully before you invest or send money.
- --------------------------------------------------------------------------------
