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[LOGO]
Investing for the 21st Century-Registered Trademark-
[GRAPHIC]
ANNUAL REPORT AUGUST 31, 2000
EATON VANCE
WORLDWIDE HEALTH SCIENCES
FUND
[LOGO]
[GRAPHIC]
[GRAPHIC]
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
LETTER TO SHAREHOLDERS
--------------------------------------------------------------------------------
[PHOTO]
James B. Hawkes
President
Eaton Vance Worldwide Health Sciences Fund Class A shares had a total return of
116.52% during the year ended August 31, 2000. That return was the result of an
increase in net asset value per share (NAV) from $18.49 on August 31, 1999 to
$37.00 on August 31, 2000, and the reinvestment of $1.423 per share in capital
gains distributions.(1)
Class B shares had a total return of 114.93% for the same period, the result of
an increase in NAV from $14.12 to $27.33, and the reinvestment of $1.423 per
share in capital gains distributions.(1)
Class C shares had a total return of 114.90% for the same period, the result of
an increase in NAV from $12.13 to $23.05, and the reinvestment of $1.423 per
share in capital gains distributions.(1)
By comparison, the S&P 500 had a return of 16.31% during the same period, while
the Morgan Stanley Capital International Europe, Australasia and Far East Index
had a return of 9.55%.(2)
Due to the Fund's strong performance, the Board of Trustees recently approved a
3-for-1 split for Class A shares of the Fund, and a 2-for-1 split for other
share classes. The record and effective date are November 10, 2000.
The year 2000 has been a truly significant year in the annals of health science.
The deciphering of the human genetic code was a remarkable breakthrough that
bodes very well for the future of drug and biotechnology stocks. In addition to
producing exciting - though controversial - recombinant/cloning therapies,
genetic scientists have also opened up new research frontiers that are
transforming health sciences. Worldwide developments in new drugs and treatments
are accelerating rapidly, and here in the United States, the pace of new
FDA approvals has picked up as well.
Meanwhile, demographics appear favorable for drug company revenues over the long
term. An aging population is creating an unprecedented demand for healthcare and
new drug products, and its healthcare spending is increasing dramatically.
We believe that the prospects are good for Worldwide Health Sciences Portfolio's
continued participation in the exciting, long-term potential offered by global
breakthroughs in science. Investors should bear in mind, though, that highly
specialized funds tend to be more vulnerable to volatility. We would urge you to
be sure that your investment portfolio is well-diversified and that your
investment horizon is long-term, as these are your best weapons against ups and
downs in the markets.
Sincerely,
/s/ James B. Hawkes
James B. Hawkes
President
October 17, 2000
<TABLE>
<CAPTION>
PERFORMANCE(3) CLASS A CLASS B CLASS C
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE)
--------------------------------------------------------------------------------
<S> <C> <C> <C>
One Year 116.52% 114.93% 114.90%
Five Years 33.89 N.A. N.A.
Ten Years 26.91 N.A. N.A.
Life of Fund+ 21.70 34.29 46.60
<CAPTION>
SEC AVERAGE ANNUAL TOTAL RETURNS (INCLUDING SALES CHARGE OR APPLICABLE CDSC)
--------------------------------------------------------------------------------
<S> <C> <C> <C>
One Year 104.06% 109.93% 113.90%
Five Years 32.31 N.A. N.A.
Ten Years 26.16 N.A. N.A.
Life of Fund+ 21.23 33.97 46.60
</TABLE>
+Inception Dates - Class A: 7/26/85; Class B: 9/23/96; Class C:1/05/98
<TABLE>
<CAPTION>
Ten Largest Equity Holdings(4)
--------------------------------------------------------------------------------
<S> <C>
Novartis AG 4.7%
Orchid BioSciences, Inc. 4.2
Arena Pharmaceuticals 4.0
Chiron Corp. 3.9
Sanofi-Synthelabo 3.8
Lilly (Eli) & Co. 3.8
Pfizer, Inc. 3.7
Caliper Technologies Corp. 3.2
Alza Corp. 3.1
Abgenix, Inc. 3.1
</TABLE>
(1) These returns do not include the 5.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC) for
Class B and Class C shares. (2) It is not possible to invest directly in an
Index. (3) Returns are historical and are calculated by determining the
percentage change in net asset value with all distributions reinvested. SEC
returns for Class A reflect the maximum 5.75% sales charge. SEC returns for
Class B 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. SEC
1-Year return for Class C reflects 1% CDSC. (4) Ten largest equity holdings
accounted for 37.5% of the Portfolio's total net assets. Holdings are subject to
change. Past performance is no guarantee of future results. It is unlikely that
the Fund's one-year performance can be sustained. The health sciences industry
is currently experiencing rapid growth in some sectors, including increased IPO
activity from which the Fund benefitted. There is no assurance that this growth
will continue or that it will continue to have the same positive impact on the
Fund's performance. Investment return and principal value will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
--------------------------------------------------------------------------------
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT
TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED.
--------------------------------------------------------------------------------
2
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
MANAGEMENT DISCUSSION
--------------------------------------------------------------------------------
AN INTERVIEW WITH SAMUEL D. ISALY,
PRESIDENT, ORBIMED ADVISORS, INC.,
INVESTMENT ADVISER TO WORLDWIDE HEALTH SCIENCES PORTFOLIO
[PHOTO]
Samuel D. Isaly
Portfolio Manger
Q: SAM, CONGRATULATIONS ON THE FUND'S OUTSTANDING PERFORMANCE THIS YEAR. WHAT
FACTORS ACCOUNTED FOR ITS SUCCESS?
A: The diversification of the Worldwide Health Sciences Portfolio was the key
to performance this year. The Portfolio is invested not just in large U.S.
pharmaceutical companies, as many health funds are, but also maintains
exposure to international stocks and smaller, less well-known biotechnology
companies. A few of these went public in the past year, and because of the
way IPOs trade, they contributed positively to performance. Of course, such
IPO activity is not repeatable every year and is not typical of performance.
As far as international investments are concerned, it is our belief that
advances in drug development and biotechnology are not limited to the United
States. There are many outstanding research and manufacturing companies
abroad. For example, Novartis AG, the Portfolio's largest holding, is a
major Swiss drug company with a compelling new-drug pipeline, which includes
compounds being tested for treatment of Alzheimer's disease, epilepsy,
cancer, and for use in organ transplants. Of course, to the extent that any
of these international companies have access to the U.S. market as well,
that may certainly help boost potential profits. So we see a lot of
potential there. This level of diversification has further helped to offset
the Portfolio's exposure to the dramatic swings that can happen in the U.S.
market, such as we saw in the spring of this year.
Q: TELL US MORE ABOUT THE SPECIALTY BIOTECHNOLOGY HOLDINGS. HOW DID THEY HELP
PERFORMANCE?
A: Smaller, specialty biotech stocks made up approximately 40% of the
Portfolio as of August 31, 2000 (see chart below). While not household
names, they're early-stage, highly-specialized companies that have some
proprietary research or technology. Our team of investment professionals -
several of whom hold PhD's in scientific disciplines - researches these
companies, trying to identify those that have potential blockbuster
products. And the track record for these small companies has been good.
Each year, there are more and more of the Portfolio's holdings of this type
that are turning a profit.
SECTOR DISTRIBUTION+
--------------------------------------------------------------------------------
As a percentage of total net assets
[CHART]
OTHER 6.01%
SPECIALTY/BIOTECH COMPANIES 39.36%
MAJOR/PHARMACEUTICAL COMPANIES 54.63%
REGIONAL DISTRIBUTION+
--------------------------------------------------------------------------------
As a percentage of total net assets+
[CHART]
SPECIALTY/NORTH AMERICA 38.32%
MAJOR/NORTH AMERICA 30.18%
MAJOR/EUROPE 15.38%
MAJOR/FAR EAST 9.07%
SPECIALTY/EUROPE 1.04%
+ Sector and Regional Distributions subject to change due to active management.
3
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
MANAGEMENT DISCUSSION
--------------------------------------------------------------------------------
So far, the balance between the large pharmaceutical companies and the
smaller biotechs has paid off. In March and April of 2000, the biotech
sector was down, along with the broader market, particularly technology
stocks. May saw the beginnings of a rally, and then there was a significant
rebound from there. In fact, healthcare and biotechnology funds were the
best-performing mutual funds in the quarter ended June 30th. The strong
performance of biotechs, alongside the solid, generally predictable earnings
of the major drug companies, turned out to be a very successful combination
for the Portfolio this year.
Q: YOU MENTIONED NOVARTIS AG. WHAT ARE SOME OF THE PORTFOLIO'S OTHER HOLDINGS
THAT YOU'RE OPTIMISTIC ABOUT?
A: Overall, I have confidence in the long-term potential of the big-cap
pharmaceutical companies. I believe that many of these stocks are poised for
significant earnings growth after the election in November, regardless of
who wins. There is perhaps an air of uncertainty about healthcare and
biotech stocks at the moment, as prescription drug benefits and Medicare
policy are debated. But I believe that will be diminished immediately after
the election and we may be looking at serious earnings growth.
Take, for example, Eli Lilly and Co. Although its patent on Prozac is due
to expire in 2001, this company has more than 40 potential products in its
pipeline - if it can bring all of these products to market, it could emerge
as the largest seller of biotech products over this decade. We also like
Pharmacia Corp., a big company with worldwide reach, which resulted from
the merger of drugmaker Pharmacia & Upjohn and Monsanto. This company makes
Celebrex, the breakthrough arthritis treatment, and Xanax, which treats
panic disorders. They also produce popular over-the-counter products like
Rogaine and Nicorette.
Q: SAM, WE'VE HEARD A LOT IN THE PAST YEAR ABOUT THE SEQUENCING OF THE HUMAN
GENOME. HOW MUCH WILL THIS AFFECT THE HEALTHCARE AND BIOTECH INDUSTRIES?
A: We believe that, over the long-term, this will have far-reaching
implications for the process of drug discovery. There's a stock in the
Portfolio called Orchid BioSciences, and what they do is try to identify the
tiny differences in individuals' genes. Then they can determine what those
differences signify, and how to predict diseases based upon those findings.
So, there is a direct correlation between the ability of companies to
develop practical applications based upon the mapping of the human genomics
code and the future success of healthcare. But it will likely be several
years before we see this development translate into new drugs and new
revenues.
Q: CLEARLY, THIS IS A RAPIDLY GROWING AREA THAT IS CONSTANTLY CHANGING. WHAT
WOULD YOU HAVE TO SAY TO SHAREHOLDERS ABOUT WHAT THE FUTURE MIGHT HOLD?
A: I would, first and foremost, emphasize the long-term nature of investments
in the healthcare and biotech industries, as well as the long-term
investment outlook of the Portfolio itself. We have been very successful in
our performance recently, but it is important to understand that the
Portfolio is making its investments based on a long-term approach that we
hope will capture the important trends going forward. By nature, this is a
volatile area, and we can certainly anticipate heightened volatility in the
future.
That said, we believe there are many reasons to be optimistic about the
potential in this area. The research developments and drug breakthroughs of
the biotech industry, combined with the solid records of the major drug
companies, can offer exciting investment opportunities. We believe our
global diversification, and flexibility in market capitalization between
large, established companies, and small, early growth companies, can
provide us with a wide range of potentially profitable areas, as well as
help protect the Portfolio from market volatility.
4
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
FUND PERFORMANCE
--------------------------------------------------------------------------------
{GRAPH]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE WORLDWIDE
HEALTH SCIENCES FUND, CLASS A VS. THE STANDARD & POOR'S 500, AND THE EUROPE,
AUSTRALASIA AND FAR EAST INDEX*
[PLOT POINTS TO COME]
<TABLE>
<CAPTION>
PERFORMANCE** CLASS A CLASS B CLASS C
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE)
--------------------------------------------------------------------------------
<S> <C> <C> <C>
One Year 116.52% 114.93% 114.90%
Five Years 33.89 N.A. N.A.
Ten Years 26.91 N.A. N.A.
Life of Fund+ 21.70 34.29 46.60
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
--------------------------------------------------------------------------------
<S> <C> <C> <C>
One Year 104.06% 109.93% 113.90%
Five Years 32.31 N.A. N.A.
Ten Years 26.16 N.A. N.A.
Life of Fund+ 21.23 33.97 46.60
</TABLE>
+Inception Dates - Class A: 7/26/85; Class B: 9/23/96; Class C:1/05/98
* Source: TowersData, Bethesda, MD. Investment operations commenced 7/26/85.
The performance chart above compares the Fund's total return with that of a
broad-based securities market index. Returns are calculated by determining the
percentage change in net asset value (NAV) with all distributions reinvested.
The lines on the chart represent the total returns of $10,000 hypothetical
investments in the Fund, the S&P 500 Index - a broad-based, widely recognized
index of 500 common stocks traded in the U.S. - and the Morgan Stanley Capital
International Europe, Australasia, and Far East Index (EAFE) - a broad-based
index of common stocks traded in foreign markets. An investment in the Fund's
Class B shares on 9/23/96 at net asset value would have been worth $31,948 on
August 31, 2000; $31,648 including applicable CDSC. An investment in the
Fund's Class C shares on 1/5/98 at net asset value would have been worth
$27,664 on August 31, 2000. The Indices' total returns do not reflect any
commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Indices. It
is not possible to invest directly in an index.
**Returns are historical and are calculated by determining the percentage change
in net asset value with all distributions reinvested. SEC returns for Class A
reflect the maximum 5.75% sales charge. SEC returns for Class B 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. SEC 1-Year return for
Class C reflects 1% CDSC.
Past performance is no guarantee of future results. It is unlikely that the
Fund's one-year performance can be sustained. The health sciences industry
is currently experiencing rapid growth in some sectors. There is no
assurance that this growth will continue or that it will continue to have
the same positive impact on the Fund's performance. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
5
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF AUGUST 31, 2000
<S> <C>
Assets
------------------------------------------------------
Investment in Worldwide Health Sciences
Portfolio, at value
(identified cost, $613,258,166) $942,963,676
Receivable for Fund shares sold 17,428,501
Tax reclaim receivable 225,040
Deferred organization expenses 10,211
------------------------------------------------------
TOTAL ASSETS $960,627,428
------------------------------------------------------
Liabilities
------------------------------------------------------
Payable for Fund shares redeemed $ 1,084,676
Payable to affiliate for service fees 137,228
Accrued expenses 248,270
------------------------------------------------------
TOTAL LIABILITIES $ 1,470,174
------------------------------------------------------
NET ASSETS $959,157,254
------------------------------------------------------
Sources of Net Assets
------------------------------------------------------
Paid-in capital $580,725,268
Accumulated undistributed net realized
gain from Portfolio (computed on the
basis of identified cost) 48,749,507
Net unrealized appreciation from
Portfolio (computed on the basis of
identified cost) 329,705,510
Net unrealized depreciation (23,031)
------------------------------------------------------
TOTAL $959,157,254
------------------------------------------------------
Class A Shares
------------------------------------------------------
NET ASSETS $418,903,836
SHARES OUTSTANDING 11,320,508
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 37.00
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $37.00) $ 39.26
------------------------------------------------------
Class B Shares
------------------------------------------------------
NET ASSETS $411,280,480
SHARES OUTSTANDING 15,050,245
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE (NOTE 6)
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 27.33
------------------------------------------------------
Class C Shares
------------------------------------------------------
NET ASSETS $128,972,938
SHARES OUTSTANDING 5,594,366
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE (NOTE 6)
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 23.05
------------------------------------------------------
</TABLE>
On sales of $50,000 or more, the offering price of Class A shares is reduced.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
AUGUST 31, 2000
<S> <C>
Investment Income
------------------------------------------------------
Dividends allocated from Portfolio
(net of foreign taxes, $143,026) $ 1,851,283
Interest allocated from Portfolio 36,396
Expenses allocated from Portfolio (4,351,782)
------------------------------------------------------
NET INVESTMENT LOSS FROM PORTFOLIO $ (2,464,103)
------------------------------------------------------
Expenses
------------------------------------------------------
Management fee $ 1,028,765
Trustees' fees and expenses 4,451
Distribution and service fees
Class A 445,772
Class B 1,972,710
Class C 398,277
Transfer and dividend disbursing agent
fees 510,203
Registration fees 185,634
Printing and postage 40,154
Legal and accounting services 26,823
Amortization of organization expenses 7,979
Custodian fee 28,267
Miscellaneous 61,455
------------------------------------------------------
TOTAL EXPENSES $ 4,710,490
------------------------------------------------------
Deduct --
Reduction of custodian fee $ 27,678
------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 27,678
------------------------------------------------------
NET EXPENSES $ 4,682,812
------------------------------------------------------
NET INVESTMENT LOSS $ (7,146,915)
------------------------------------------------------
Realized and Unrealized Gain (Loss)
------------------------------------------------------
Net realized gain (loss) --
Investment transactions from
Portfolio (identified cost basis) $ 54,494,961
Foreign currency transactions from
Portfolio (328,103)
Foreign currency transactions (7,195)
------------------------------------------------------
NET REALIZED GAIN $ 54,159,663
------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments from Portfolio
(identified cost basis) $287,486,519
Foreign currency from Portfolio 11,456
Foreign currency (20,152)
------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $287,477,823
------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $341,637,486
------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $334,490,571
------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INCREASE (DECREASE) YEAR ENDED YEAR ENDED
IN NET ASSETS AUGUST 31, 2000 AUGUST 31, 1999
<S> <C> <C>
--------------------------------------------------------------------------
From operations --
Net investment loss $ (7,146,915) $ (2,666,694)
Net realized gain 54,159,663 19,224,127
Net change in unrealized
appreciation (depreciation) 287,477,823 57,462,880
--------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 334,490,571 $ 74,020,313
--------------------------------------------------------------------------
Distributions to shareholders --
From net realized gain
Class A $ (6,966,015) $ (3,621,408)
Class B (11,142,989) (5,013,898)
Class C (948,854) (197,322)
--------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (19,057,858) $ (8,832,628)
--------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 263,151,106 $ 29,816,201
Class B 177,681,277 15,461,673
Class C 98,871,074 5,035,458
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 6,508,152 3,420,168
Class B 8,544,818 4,719,635
Class C 678,079 193,239
Cost of shares redeemed
Class A (79,306,443) (41,587,153)
Class B (28,483,521) (20,458,515)
Class C (8,833,952) (721,473)
--------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS $ 438,810,590 $ (4,120,767)
--------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 754,243,303 $ 61,066,918
--------------------------------------------------------------------------
Net Assets
--------------------------------------------------------------------------
At beginning of year $ 204,913,951 $ 143,847,033
--------------------------------------------------------------------------
AT END OF YEAR $ 959,157,254 $ 204,913,951
--------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000(1) 1999(1) 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 18.490 $12.550 $14.930 $13.540 $11.710
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment loss $ (0.343) $(0.182) $(0.209) $(0.133) $(0.230)
Net realized and unrealized
gain (loss) 20.276 6.794 (2.171) 1.818 3.460
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 19.933 $ 6.612 $(2.380) $ 1.685 $ 3.230
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net realized gain (1.423) (0.672) -- (0.295) (1.400)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (1.423) $(0.672) $ -- $(0.295) $(1.400)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 37.000 $18.490 $12.550 $14.930 $13.540
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 116.52% 53.28% (15.94)% 17.67% 31.04%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $418,904 $89,214 $66,831 $88,349 $55,016
Ratios (As a percentage of
average daily net assets):
Net operating expenses(3) 1.79% 1.69% 1.83% 2.07% 2.21%
Interest expense(3) -- 0.01% -- -- --
Net expenses after
custodian fee
reduction(3) 1.74% 1.63% 1.69% 2.00% --
Net investment loss (1.29)% (1.11)% (1.21)% (1.60)% (1.81)%
Portfolio Turnover of the
Fund(4) -- -- -- -- 66%
Portfolio Turnover of the
Portfolio(4) 31% 41% 34% 14% --
-----------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the
investment adviser fee, an allocation of expenses to the Manager/Administrator, or both. Had
such actions not been taken, the ratios and net investment loss per share would have been as
follows:
Ratios (As a percentage of
average daily net assets):
Expenses(3) 2.29% --
Expenses after custodian
fee reduction(3) 2.22% --
Net investment loss (1.82)% --
Net investment loss per share $(0.151) --
-----------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of the Portfolio's allocated expenses for the
period the Fund was investing in the Portfolio.
(4) Portfolio Turnover of the Fund represents the rate of portfolio activity
for the period while the Fund was making investments directly in
securities. The Fund began investing in the Portfolio on September 1,
1996.
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS B
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000(1) 1999(1) 1998
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 14.120 $ 9.760 $11.680
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment loss $ (0.395) $ (0.214) $(0.204)
Net realized and unrealized
gain (loss) 15.028 5.246 (1.716)
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 14.633 $ 5.032 $(1.920)
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net realized gain (1.423) (0.672) --
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (1.423) $ (0.672) $ --
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 27.330 $ 14.120 $ 9.760
---------------------------------------------------------------------
TOTAL RETURN(2) 114.93% 52.29% (16.44)%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $411,280 $107,923 $75,111
Ratios (As a percentage of
average daily net assets):
Net operating expenses(3) 2.54% 2.29% 2.43%
Interest expense(3) -- 0.01% --
Net expenses after
custodian fee
reduction(3) 2.49% 2.23% 2.29%
Net investment loss (2.03)% (1.70)% (1.80)%
Portfolio Turnover of the
Portfolio 31% 41% 34%
---------------------------------------------------------------------
</TABLE>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS C
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000(1) 1999(1) 1998(2)
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 12.130 $ 8.460 $10.000
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment loss $ (0.365) $(0.199) $(0.076)
Net realized and unrealized
gain (loss) 12.708 4.541 (1.464)
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 12.343 $ 4.342 $(1.540)
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net realized gain (1.423) (0.672) --
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (1.423) $(0.672) $ --
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 23.050 $12.130 $ 8.460
---------------------------------------------------------------------
TOTAL RETURN(3) 114.90% 52.16% (15.40)%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $128,973 $ 7,778 $ 1,905
Ratios (As a percentage of
average daily net assets):
Net operating expenses(4) 2.53% 2.44% 2.67%(5)
Interest expense(4) -- 0.01% --
Net expenses after
custodian fee
reduction(4) 2.48% 2.38% 2.53%(5)
Net investment loss (2.02)% (1.82)% (1.84)%(5)
Portfolio Turnover of the
Portfolio 31% 41% 34%
---------------------------------------------------------------------
</TABLE>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) For the period from the commencement of offering of Class C shares,
January 5, 1998, to August 31, 1998
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
-------------------------------------------
Eaton Vance Worldwide Health Sciences 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 generally sold subject to a sales charge imposed at the time of purchase.
Class B and Class C shares are sold at net asset value and are subject to a
contingent deferred sales charge (see Note 6). Each class represents a pro
rata interest in the Fund, but votes separately on class-specific matters and
(as noted below) is subject to different expenses. Realized and unrealized
gains and losses and net investment income, other than class specific
expenses, are allocated daily to each class of shares based on the relative
net assets of each class to the total net assets of the Fund. Each class of
shares differs in its distribution plan and certain other class specific
expenses. The Fund invests all of its investable assets in interests in
Worldwide Health Sciences Portfolio (the Portfolio), a New York Trust, having
the same investment objective as the Fund. The value of the Fund's investment
in the Portfolio reflects the Fund's proportionate interest in the net assets
of the Portfolio (97.9% at August 31, 2000). 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.
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 capital gains. Accordingly, no provision for federal income or
excise tax is necessary.
Pursuant to section 852 of the Internal Revenue Code, the Fund designates
$18,850,602 as a long-term capital gain distribution for its taxable year
ended August 31, 2000.
D Deferred Organization Expenses -- Costs incurred by the Fund in connection
with its organization are being amortized on the straight-line basis over
five years.
E Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Fund and the Portfolio. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Fund or the Portfolio maintains with
IBT. All significant credit balances used to reduce the Fund's custodian fees
are reported as a reduction of total expenses on the Statement
of Operations.
F Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
G Other -- Investment transactions are accounted for on a trade-date basis.
2 Distributions to Shareholders
-------------------------------------------
It is the present policy of the Fund to make at least one distribution
annually (normally in December) of all or substantially all of the investment
income allocated to the Fund by the Portfolio, less the Fund's direct and
allocated expenses and at least one distribution annually of all or
substantially all of the net realized capital gain (reduced by any available
capital loss carry forwards from prior years) allocated by the Portfolio to
the Fund, if any. Shareholders may reinvest all distributions in shares of
the Fund at the per share net asset value as of the close of business on the
ex-dividend date.
The Fund distinguishes between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in
11
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS 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 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.
These differences primarily relate to net operating losses.
3 Management Fee and Other Transactions with Affiliates
-------------------------------------------
The management fee is earned by Eaton Vance Management (EVM) as compensation
for management and administration of the business affairs of the Fund. The
fee is based on a percentage of average daily net assets. For the year ended
August 31, 2000, the fee was equivalent to 0.25% of the Fund's average daily
net assets and amounted to $1,028,765. Except for 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. The
Fund was informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary of
EVM and the Fund's principal underwriter, received $546,349 from the Fund as
its portion of the sales charge on sales of Class A shares for the year ended
August 31, 2000.
Certain officers and Trustees of the Fund and of the Portfolio are officers
of the above organizations. In addition, administrative fees are paid by the
Portfolio to EVM. See Note 2 of the Portfolio's Notes to Financial Statements
which are included elsewhere in the report.
4 Shares of Beneficial Interest
-------------------------------------------
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such as
the Fund) and classes. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 9,040,158 1,828,443
Issued to shareholders electing to
receive payments of distributions in
Fund shares 370,464 205,562
Redemptions (2,913,823) (2,533,601)
------------------------------------------------------------------
NET INCREASE (DECREASE) 6,496,799 (499,596)
------------------------------------------------------------------
<CAPTION>
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 8,243,458 1,205,173
Issued to shareholders electing to
receive payments of distributions in
Fund shares 650,298 369,828
Redemptions (1,484,254) (1,632,152)
------------------------------------------------------------------
NET INCREASE (DECREASE) 7,409,502 (57,151)
------------------------------------------------------------------
<CAPTION>
YEAR ENDED AUGUST 31,
------------------------
CLASS C 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 5,401,485 464,942
Issued to shareholders electing to
receive payments of distributions in
Fund shares 60,916 17,615
Redemptions (509,297) (66,467)
------------------------------------------------------------------
NET INCREASE 4,953,104 416,090
------------------------------------------------------------------
</TABLE>
5 Distribution Plans
-------------------------------------------
Each Class of the Fund has in effect a distribution plan (the Plans) pursuant
to Rule 12b-1 under the Investment Company Act of 1940. The Plans require
that the Class A shares will pay a monthly distribution fee to EVD in an
amount equal to 0.25% on an annual basis of the average daily net assets
attributable to Class A shares. EVD may pay up to the entire amount of the
Class A distribution fee to investment dealers for providing personal
services to shareholders. For the year ended August 31, 2000, the Class A
shares paid or accrued $445,772 payable to EVD. The Plans require the
Class B and Class C shares to pay EVD amounts equal to 1/365 of 0.75% of the
average daily net assets attributable to Class B and Class C shares for
providing ongoing distribution services and facilities to each class. Each
class will automatically discontinue payments to EVD during any period in
which there are no outstanding Uncovered Distribution Charges, which are
equivalent to the sum of (i) 5% and 6.25% of the aggregate amount received by
the Fund for the Class B and Class C shares sold, respectively, plus (ii)
interest 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 $1,474,085 and $299,458 for
Class B and Class C shares, respectively, payable to EVD for the year ended
August 31, 2000, representing 0.75% of the average daily net assets for
Class B and Class C shares, respectively. At August 31, 2000, the amount of
Uncovered Distribution Charges of
12
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
EVD calculated under the Plans was approximately $9,545,000 and $7,496,000
for Class B and Class C shares, respectively.
The Plans authorize the Class B and Class C shares to make payments of
service fees to EVD, investment dealers and other persons in amounts not
exceeding 0.25% of the average daily net assets attributable to Class B and
Class C shares for each fiscal year. The Trustees initially implemented the
Plans by authorizing Class B shares to make quarterly payments of service
fees to EVD and investment dealers in amounts equal to 0.25% per annum of the
average daily net assets attributable to Class B shares based on the value of
Fund shares sold by such persons and remaining outstanding for at least one
year. On October 4, 1999, the Trustees approved service fee payments equal to
0.25% per annum of the Fund's average daily net assets attributable to
Class B shares for any fiscal year on shares sold on or after October 12,
1999. The Class C Plan permits the Fund to make monthly payments of service
fees in amounts not expected to exceed 0.25% of the Fund's average daily net
assets attributable to Class C shares for any fiscal year. Service fee
payments will be made for personal services and/or the maintenance of
shareholder accounts. Service fees are separate and distinct from the sales
commissions and distribution fees payable by the Fund to EVD, and, as such
are not subject to automatic discontinuance when there are no outstanding
Uncovered Distribution Charges of EVD. Service fee payments for the year
ended August 31, 2000 amounted to $498,625 and $98,819 for Class B and
Class C shares, respectively.
6 Contingent Deferred Sales Charge
-------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B shares made within six years of purchase and on redemptions of
Class C shares made 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 and may be waived under certain
other limited conditions. CDSC charges are paid to EVD to reduce the amount
of Uncovered Distribution Charges calculated under each Class' Distribution
Plan (see Note 5). CDSC charges received when no Uncovered Distribution
Charges exist will be credited to the Fund. For the year ended August 31,
2000, the Fund was informed that EVD received approximately $438,000 and
$44,000 of CDSC paid by shareholders for Class B and Class C
shares, respectively.
7 Investment Transactions
-------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio for the
year ended August 31, 2000 aggregated $521,011,452 and $121,465,639,
respectively.
8 Subsequent Event
-------------------------------------------
On October 16, 2000, the Trustees of the Fund approved a 3-for-1 stock split
for Class A shares and a 2-for-1 stock split for Class B and Class C shares,
effective November 10, 2000.
13
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
INDEPENDENT ACCOUNTANTS' REPORT
TO THE TRUSTEES AND SHAREHOLDERS
OF EATON VANCE WORLDWIDE HEALTH SCIENCES FUND:
---------------------------------------------
In our opinion, the accompanying statement of assets and liabilities, and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Eaton Vance Worldwide Health Sciences Fund (the "Fund") at August 31, 2000, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the four years in the period then ended, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion. The financial highlights for the year ended
August 31, 1996 were audited by other independent accountants whose report dated
September 26, 1996 expressed an unqualified opinion on those financial
highlights.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 27, 2000
14
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
(EXPRESSED IN UNITED STATES DOLLARS)
COMMON STOCKS AND WARRANTS -- 92.85%
<TABLE>
<CAPTION>
PERCENTAGE OF
SECURITY SHARES VALUE NET ASSETS
<S> <C> <C> <C>
---------------------------------------------------------------------------------
Major Capitalization - Europe -- 15.38%
---------------------------------------------------------------------------------
Altana 250,000 $ 23,969,250 2.49%
Novartis AG 30,000 45,348,637 4.71%
Roche Holding AG 1,800 16,114,778 1.67%
Sanofi-Synthelabo(1) 750,000 36,553,106 3.80%
Serono 22,261 26,112,760 2.71%
---------------------------------------------------------------------------------
$148,098,531 15.38%
---------------------------------------------------------------------------------
Major Capitalization - Far East -- 9.07%
---------------------------------------------------------------------------------
Banyu Pharmaceutical Co. 900,000 $ 18,439,683 1.92%
Chugai Pharmaceuticals, Co., Ltd. 900,000 16,034,507 1.67%
Eisai Co., Ltd. 600,000 18,116,180 1.88%
Fujisawa Pharmaceutical 500,000 17,019,082 1.77%
Shionogi & Co., Ltd. 1,000,000 17,628,581 1.83%
---------------------------------------------------------------------------------
$ 87,238,033 9.07%
---------------------------------------------------------------------------------
Major Capitalization - North America -- 30.18%
---------------------------------------------------------------------------------
Abgenix, Inc. 400,000 $ 30,068,760 3.12%
Alza Corp.(1) 400,000 30,250,000 3.14%
American Home Products Corp. 550,000 29,803,125 3.10%
Chiron Corp.(1) 700,000 37,843,750 3.93%
Forest Laboratories, Inc.(1) 140,000 13,702,500 1.42%
Genzyme Corp., Class A(1) 345,000 25,896,562 2.69%
Gilead Sciences, Inc.(1) 200,000 21,600,000 2.24%
Lilly (Eli) & Co. 500,000 36,500,000 3.79%
Pfizer, Inc. 825,000 35,681,250 3.71%
Pharmacia Corp. 500,000 29,281,250 3.04%
---------------------------------------------------------------------------------
$290,627,197 30.18%
---------------------------------------------------------------------------------
Specialty Capitalization - Europe -- 1.04%
---------------------------------------------------------------------------------
Compugen Ltd.(1) 245,000 $ 3,858,750 0.40%
Givaudan-Reg.(1) 1,800 481,377 0.05%
Swiss Serum Institute 328 5,703,529 0.59%
---------------------------------------------------------------------------------
$ 10,043,656 1.04%
---------------------------------------------------------------------------------
<CAPTION>
PERCENTAGE OF
SECURITY SHARES VALUE NET ASSETS
<S> <C> <C> <C>
---------------------------------------------------------------------------------
Specialty Capitalization - North America -- 37.18%
---------------------------------------------------------------------------------
Alexion Pharmaceuticals, Inc.(1) 210,000 $ 22,050,000 2.29%
Arena Pharmaceuticals (1)(2)(3) 832,018 38,480,832 4.00%
Argonaut Technologies, Inc. 80,000 1,390,000 0.15%
Aviron(1) 250,000 11,250,000 1.17%
Bio-Technology General Corp.(1) 1,200,000 16,725,000 1.74%
Caliper Technologies Corp.(2)(3) 500,000 31,062,500 3.23%
Celera Genomics Group 200,000 21,687,500 2.25%
Curis, Inc. 42,140 855,969 0.09%
Enzon, Inc. 300,000 18,262,500 1.90%
GelTex Pharmaceuticals, Inc.(1) 568,000 23,012,861 2.39%
Genaissance Pharmaceuticals 159,900 3,567,769 0.37%
IntraBiotics Pharmaceuticals(2)(3) 166,667 3,500,007 0.36%
Molecular Devices Corp.(1) 103,470 8,568,609 0.89%
Orapharma, Inc. 600,000 6,825,000 0.71%
Orchid BioSciences Warrants(1)(2)(3) 100,000 4,368,750 0.45%
Orchid BioSciences, Inc.(1)(2)(3) 807,749 36,298,221 3.77%
PathoGenesis Corp.(1) 521,300 19,939,725 2.07%
Pharmacopeia, Inc.(1) 405,000 16,984,688 1.77%
Praecis Pharmaceuticals 350,900 15,373,806 1.60%
SangStat Medical Corp.(1) 609,500 12,342,375 1.28%
Telik, Inc. 174,000 1,772,625 0.18%
TransGenomic, Inc.(1) 64,000 1,344,000 0.14%
Tularik, Inc. 525,000 17,521,875 1.82%
Watson Pharmaceuticals, Inc.(1) 400,000 24,675,000 2.56%
---------------------------------------------------------------------------------
$357,859,612 37.18%
---------------------------------------------------------------------------------
Total Common Stocks and Warrants
(identified cost $559,859,675) $893,867,029
---------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
(EXPRESSED IN UNITED STATES DOLLARS)
PREFERRED STOCKS -- 1.14%
<TABLE>
<CAPTION>
PERCENTAGE OF
SECURITY SHARES VALUE NET ASSETS
<S> <C> <C> <C>
---------------------------------------------------------------------------------
Specialty Capitalization - North America -- 1.14%
---------------------------------------------------------------------------------
Acadia Pharmaceuticals, Inc.(2)(3) 400,000 $ 3,000,000 0.31%
Adolor, Inc., Series G(2)(3) 500,000 765,000 0.08%
Adolor, Inc., Series H(2)(3) 1,094,772 1,675,001 0.17%
Memory Pharmaceutical, Series C(2)(3) 400,000 1,000,000 0.10%
NetGenics, Inc. Convertible, Series D,
Preferred R(1)(2)(3) 250,000 575,000 0.06%
NetGenics, Inc., Series E(1)(2)(3) 652,173 1,499,998 0.16%
Physiome Sciences, Inc., Series E(2)(3) 521,920 2,499,997 0.26%
---------------------------------------------------------------------------------
$ 11,014,996 1.14%
---------------------------------------------------------------------------------
Total Preferred Stocks
(identified cost $10,674,999) $ 11,014,996
---------------------------------------------------------------------------------
Total Investments
(identified cost $570,534,674) $904,882,025 93.99%
---------------------------------------------------------------------------------
Other Assets, Less Liabilities $ 57,829,744 6.01%
---------------------------------------------------------------------------------
Net Assets $962,711,769 100.00%
---------------------------------------------------------------------------------
</TABLE>
(1) Non-income producing security.
(2) Restricted security.
(3) Security valued at fair value using methods determined in good faith by
or at the direction of the Trustees.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF AUGUST 31, 2000
(EXPRESSED IN UNITED STATES DOLLARS)
<S> <C>
Assets
------------------------------------------------------
Investments, at value
(identified cost, $570,534,674) $904,882,025
Cash 73,459,136
Foreign currency, at value
(identified cost, $7,741,401) 7,563,028
Receivable for investments sold 2,156,715
Dividends receivable 291,750
Deferred organization expenses 3,414
------------------------------------------------------
TOTAL ASSETS $988,356,068
------------------------------------------------------
Liabilities
------------------------------------------------------
Payable for investments purchased $ 25,614,106
Accrued expenses 30,193
------------------------------------------------------
TOTAL LIABILITIES $ 25,644,299
------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $962,711,769
------------------------------------------------------
Sources of Net Assets
------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $628,351,614
Net unrealized appreciation (computed on
the basis of identified cost) 334,360,155
------------------------------------------------------
TOTAL $962,711,769
------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
AUGUST 31, 2000
(EXPRESSED IN UNITED STATES DOLLARS)
<S> <C>
Investment Income
------------------------------------------------------
Dividends (net of foreign taxes,
$332,202) $ 1,693,331
Interest 36,409
------------------------------------------------------
TOTAL INVESTMENT INCOME $ 1,729,740
------------------------------------------------------
Expenses
------------------------------------------------------
Investment adviser fee $ 3,291,038
Administration fee 1,038,960
Trustees' fees and expenses 20,449
Legal and accounting services 44,949
Custodian fee 156,811
Amortization of organization expenses 2,408
Miscellaneous 18,586
------------------------------------------------------
TOTAL EXPENSES $ 4,573,201
------------------------------------------------------
Deduct --
Reduction of custodian fee $ 153,585
------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 153,585
------------------------------------------------------
NET EXPENSES $ 4,419,616
------------------------------------------------------
NET INVESTMENT LOSS $ (2,689,876)
------------------------------------------------------
Realized and Unrealized Gain (Loss)
------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 54,983,332
Foreign currency transactions (333,710)
------------------------------------------------------
NET REALIZED GAIN $ 54,649,622
------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $292,052,009
Foreign currency 11,603
------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $292,063,612
------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $346,713,234
------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $344,023,358
------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
(EXPRESSED IN UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
INCREASE (DECREASE) YEAR ENDED YEAR ENDED
IN NET ASSETS AUGUST 31, 2000 AUGUST 31, 1999
<S> <C> <C>
--------------------------------------------------------------------------
From operations --
Net investment loss $ (2,689,876) $ (784,314)
Net realized gain 54,649,622 19,258,866
Net change in unrealized
appreciation (depreciation) 292,063,612 57,606,206
--------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 344,023,358 $ 76,080,758
--------------------------------------------------------------------------
Capital transactions --
Contributions $ 536,036,150 $ 58,763,929
Withdrawals (122,428,380) (74,426,211)
--------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ 413,607,770 $ (15,662,282)
--------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 757,631,128 $ 60,418,476
--------------------------------------------------------------------------
Net Assets
--------------------------------------------------------------------------
At beginning of year $ 205,080,641 $ 144,662,165
--------------------------------------------------------------------------
AT END OF YEAR $ 962,711,769 $ 205,080,641
--------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,
------------------------------------------------
2000 1999 1998 1997
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------
Ratios/Supplemental Data
----------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Operating expenses 1.09% 0.95% 1.06% 1.25%
Interest expense -- 0.01% -- --
Expenses after custodian
fee reduction 1.05% 0.90% 0.92% 1.18%
Net investment loss (0.64)% (0.42)% (0.49)% (0.81)%
Portfolio Turnover 31% 41% 34% 14%
----------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $962,712 $205,081 $144,662 $152,717
----------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS
(EXPRESSED IN UNITED STATES DOLLARS)
1 Significant Accounting Policies
-------------------------------------------
Worldwide Health Sciences Portfolio (the Portfolio) is registered under the
Investment Company Act of 1940 as a diversified, open-end management
investment company which was organized as a trust under the laws of the State
of New York on March 26, 1996. The Portfolio seeks long-term capital growth
by investing in a global and diversified portfolio of securities of health
sciences companies. The Declaration of Trust permits the Trustees to issue
interests in the Portfolio. Investment operations began on September 1, 1996,
with the acquisition of securities with a value of $51,528,696, including
unrealized appreciation of $9,053,201, in exchange for interest in the
Portfolio by one of the Portfolio's investors. The following is a summary of
the significant accounting policies of the Portfolio. The policies are in
conformity with accounting principles generally accepted in the United States
of America.
A Investment Valuations -- Securities listed on a recognized stock exchange,
whether U.S. or foreign, are valued at the last reported sale price on that
exchange prior to the time when assets are valued or prior to the close of
trading on the New York Stock Exchange. In the event that there are no sales,
the last available sale price will be used. If a security is traded on more
than one exchange, the security is valued at the last sale price on the
exchange where the stock is primarily traded. Securities for which market
quotations are not readily available and other assets are valued on a
consistent basis at fair value as determined in good faith by or under the
supervision of the Portfolio's officers in a manner specifically authorized
by the Board of Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or accretion of discount when required
for federal income tax purposes. Dividend income is recorded on the ex-
dividend date for dividends received in cash and/or securities. 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.
C Income Taxes -- The Portfolio has elected to be treated as a partnership for
United States federal tax purposes. No provision is made by the Portfolio for
federal or state taxes on any taxable income of the Portfolio because each
investor in the Portfolio is ultimately responsible for the payment of any
taxes. Since one of the Portfolio's investors is a regulated investment
company that invests all or substantially all of its 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 Portfolio's
understanding of the applicable countries' tax rules and rates.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolio. Pursuant to the custodian agreement, IBT receives a fee
reduced by credits which are determined based on the average daily cash
balance the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolios custodian fees are reflected as a reduction of
total operating expenses on the Statement of Operations.
E Deferred Organization Expenses -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
F Use of Estimates -- The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
G Foreign Currency Translation -- Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing on
the respective dates of such transactions. Recognized gains or losses on
investment transactions attributable to changes in foreign currency exchange
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 results from fluctuations in foreign currency exchange rates
is not separately disclosed.
H Forward Foreign Currency Exchange Contracts -- The Portfolio may enter into
forward foreign currency exchange contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date. Risks may arise
upon entering these contracts from the potential inability of counterparties
to meet the terms of their contracts and from movements in the value of a
foreign currency relative to the U.S. dollar. The Portfolio will enter into
forward contracts for hedging purposes as well as nonhedging purposes. The
forward
20
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
(EXPRESSED IN UNITED STATES DOLLARS)
foreign currency exchange contracts are adjusted by the daily exchange rate
of the underlying currency and any gains and losses are recorded for
financial statement purposes as unrealized until such time as the contracts
have been closed.
I Other -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed based on the specific identification
of the securities sold.
2 Investment Advisory Fees, Administrator's Fees and Other Transactions with
Affiliates
-------------------------------------------
Pursuant to the Advisory Agreement, OrbiMed Advisors, Inc. (OrbiMed) serves
as the Investment Adviser of the Portfolio. Under this agreement, OrbiMed
receives a monthly fee at the annual rate of 1% of the Portfolio's first $30
million in average net assets, 0.90% of the next $20 million in average net
assets, 0.75% of the next $450 million in average net assets, and 0.70% of
the next $500 million in average net assets. The fee rate declines for net
assets of $1 billion and greater. In addition, effective September 1, 1997,
OrbiMed's fee is subject to an upward or downward performance fee adjustment
of up to 0.25% of the average daily net assets of the Portfolio based upon
the investment performance of the Portfolio compared to the Standard & Poor's
Index of 500 Common Stocks over specified periods. For the year ended August
31, 2000, the fee was equivalent to 0.78% of the Portfolio's average daily
net assets and amounted to $3,291,038.
Under an Administration Agreement between the Portfolio and its
Administrator, Eaton Vance Management (EVM), EVM manages and administers the
affairs of the Portfolio. EVM earns a monthly fee at the annual rate of 0.25%
of the first $500 million in average daily net assets of the Portfolio, 0.23%
of the next $500 million of average net assets and at reduced rates as daily
net assets exceed $1 billion. For the year ended August 31, 2000, the
administration fee was 0.25% of average net assets and amounted to
$1,038,960.
Except for Trustees of the Portfolio who are not members of the Adviser or
EVM's organization, officers and Trustees receive remuneration for their
services to the Portfolio out of such investment adviser and administrative
fees. Certain officers and Trustees of the Portfolio are officers of the
above organizations. Trustees of the Portfolio that are not affiliated with
the Investment Adviser may elect to defer receipt of all or a portion of
their annual fees in accordance with the terms of the Trustee Deferred
Compensation Plan. For the year ended August 31, 2000, no significant amounts
have been deferred.
3 Investments
-------------------------------------------
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $482,354,898 and $127,241,445,
respectively, for the year ended August 31, 2000.
4 Federal Income Tax Basis of Investments
-------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned at August 31, 2000, as computed on a federal income tax
basis, were as follows:
<TABLE>
<S> <C>
AGGREGATE COST $570,779,850
------------------------------------------------------
Gross unrealized appreciation $346,471,377
Gross unrealized depreciation (12,369,202)
------------------------------------------------------
NET UNREALIZED APPRECIATION $334,102,175
------------------------------------------------------
</TABLE>
5 Risks Associated with Foreign Investments
-------------------------------------------
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less
publicly available information about foreign companies, particularly those
not subject to the disclosure and reporting requirements of the U.S.
securities laws. Foreign issuers are generally not bound by uniform
accounting, auditing, and financial reporting requirements and standards of
practice comparable to those applicable to domestic issuers. Investments in
foreign securities also involve the risk of possible adverse changes in
investment or exchange control regulations, expropriation or confiscatory
taxation, limitation on the removal of funds or other assets of the
Portfolio, political or financial instability or diplomatic and other
developments which could affect such investments. Foreign stock markets,
while growing in volume and sophistication, are generally not as developed as
those in the United States, and securities of some foreign issuers
(particularly those 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 Line of Credit
-------------------------------------------
The Portfolio participates with other portfolios and funds managed by EVM and
its affiliates in a $150 million unsecured line of credit agreement with a
group of banks. Borrowings will be made by the Portfolio solely to facilitate
the handling of unusual and/or unanticipated short-term cash requirements.
Interest is charged to each portfolio or fund based on its borrowings at an
amount above the
21
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
(EXPRESSED IN UNITED STATES DOLLARS)
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 line of credit is
allocated among the participating portfolios and funds at the end of each
quarter. The Portfolio did not have any significant borrowings or allocated
fees during the year ended August 31, 2000.
7 Restricted Securities
-------------------------------------------
At August 31, 2000, the Portfolio owned the following securities
(representing 11.02% of net assets) which were restricted as to public resale
and not registered under the Securities Act of 1933. The Fund has various
registration rights (exercisable under a variety of circumstances) with
respect to these securities. The fair value of these securities is determined
based on valuations provided by brokers when available, or if not available,
they are valued at fair value using methods determined in good faith by or at
the direction of the Trustees. This valuation may differ from the value that
would be realized if the securities were sold and the difference could be
material to the financial statements.
<TABLE>
<CAPTION>
DATE OF
DESCRIPTION ACQUISITION SHARES COST FAIR VALUE
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS
--------------------------------------------------------------------------------------------
Arena Pharmaceuticals 1/28/99 832,018 $ 3,894,066 $38,480,832
Caliper Technologies Corp. 8/28/00 200,000 9,600,000 12,425,000
IntraBiotics Pharmaceuticals 3/28/00 166,667 1,000,002 3,500,007
Orchid BioSciences Warrants 5/24/99 100,000 0 4,368,750
Orchid BioSciences, Inc. 12/20/99 807,749 4,057,411 36,298,221
--------------------------------------------------------------------------------------------
$18,551,479 $95,072,810
--------------------------------------------------------------------------------------------
PREFERRED STOCKS
--------------------------------------------------------------------------------------------
Acadia Pharmaceuticals, Inc. 5/05/00 400,000 $ 3,000,000 $ 3,000,000
Adolor, Inc., Series G 1/10/00 500,000 500,000 765,000
Adolor, Inc., Series H 7/10/00 1,094,772 1,675,001 1,675,001
Memory Pharmaceutical, Series C 6/21/00 400,000 1,000,000 1,000,000
NetGenics, Inc. Convertible, Series D,
Preferred R 3/20/98 250,000 500,000 575,000
NetGenics, Inc., Series E 12/21/99 652,173 1,499,998 1,499,998
Physiome Sciences, Inc., Series E 5/16/00 521,920 2,500,000 2,499,997
--------------------------------------------------------------------------------------------
$10,674,999 $11,014,996
--------------------------------------------------------------------------------------------
</TABLE>
8 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 forward foreign currency exchange contracts and 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. At August 31, 2000 there were no
outstanding obligations under these financial instruments.
22
<PAGE>
WORLDWIDE HEALTH SCIENCES PORTFOLIO AS OF AUGUST 31, 2000
INDEPENDENT ACCOUNTANTS' REPORT
TO THE TRUSTEES AND INVESTORS
OF WORLDWIDE HEALTH SCIENCES PORTFOLIO:
---------------------------------------------
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and supplementary data present fairly, in all material
respects, the financial position of Worldwide Health Sciences Portfolio (the
"Portfolio") at August 31, 2000, and the results of its operations, the changes
in its net assets, and supplementary data for the periods indicated, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and supplementary data (hereafter referred
to as "financial statements") are the responsibility of the Portfolio's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with auditing standards generally accepted in the
United States of America, which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at August 31, 2000 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 27, 2000
23
<PAGE>
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND AS OF AUGUST 31, 2000
INVESTMENT MANAGEMENT
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND
Officers
James B. Hawkes
President and Trustee
Thomas E. Faust, Jr.
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
President, Unicorn
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
WORLDWIDE HEALTH SCIENCES PORTFOLIO
Officers
James B. Hawkes
President and Trustee
Samuel D. Isaly
Vice President and
Portfolio Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
President, Unicorn
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
24
<PAGE>
SPONSOR AND MANAGER OF EATON VANCE
WORLDWIDE HEALTH SCIENCES FUND AND ADMINISTRATOR OF
WORLDWIDE HEALTH SCIENCES PORTFOLIO
EATON VANCE MANAGEMENT
The Eaton Vance Building
255 State Street
Boston, MA 02109
ADVISER OF WORLDWIDE HEALTH SCIENCES PORTFOLIO
OrbiMed Advisors, Inc.
767 3rd Avenue
New York, NY 10017
PRINCIPAL UNDERWRITER
EATON VANCE DISTRIBUTORS, INC.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
PFPC, INC.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02904-9653
(800) 262-1122
INDEPENDENT ACCOUNTANTS
PRICEWATERHOUSECOOPERS LLP
160 Federal Street
Boston, MA 02110
EATON VANCE WORLDWIDE HEALTH SCIENCES FUND
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
426-10/00 HSSRC
