<PAGE>
To Shareholders
During the 12 months ending January 31, 1995, EV Traditional Investors Fund had
a total return of -4.5 percent. That return reflects a decline in net asset
value to $6.84 per share from $7.60 per share and dividends of $0.205 per share
distributed during the year.
By comparison, the S&P 500 and the Lehman Brothers Government/Corporate Bond
Index, unmanaged indices of common stocks and bonds, respectively, had total
returns of 0.6 percent and 3.12 percent for the same period. If held to
maturity, government and corporate bonds both offer a fixed rate of return and
principal value, whereas the principal value and return of an investment in the
Fund will fluctuate with changes in market conditions.
EV Traditional Investors Fund, after payment of the Fund's current maximum
current sales charge of 4.75 percent, has produced an average annual total
return for the 10-year period ending January 31, 1995 of 9.7 percent. Average
annual returns for 20-and 30-year periods of 12.3 and 8.2 percent, respectively,
demonstrate the consistent productivity of the balanced approach to investing
over extended periods which included both chaotic and tranquil investment
conditions.
During the year, the stock market watched nervously for signs of rising
inflation as the economy grew vigorously. The Federal Reserve (Fed) increased
short-term rates a total of six times and once again in January 1995.
Nevertheless, inflation remained modest by most measures, rising only 2.7
percent for the year.
EV TRADITIONAL INVESTORS FUND
The Portfolios 10 largest stock holdings*
Astra AB .............................................. Pharmaceuticals
Reuters Holdings PLC .................................. Information services
Ford Motor Co. ........................................ Automotive
Loctite Corp. ......................................... Specialty chemicals
General Re Corp. ...................................... Reinsurance
Phillips Petroleum .................................... Oil, natural gas
Exxon Corp. ........................................... Petroleum products
MGIC Investment ....................................... Mortgage insurance
Ameritech Corp. ....................................... Telecommunications
Scott Paper Co. ....................................... Paper products
* As of 1/31/95
Most economists believe interest rates will peak in the first half of 1995, with
economic growth moderating thereafter. If a "soft landing" is indeed achieved,
corporate profitability should be well maintained, and both stock and bond
markets should treat investors better than they did in 1994.
While past performance is no guarantee of future returns, we maintain our
conviction that a balanced approach to investing, blending with discretion the
growth potential of common stocks with the secure income of bonds, will produce
desirable long-term investment results.
[Photo of Sincerely,
M. Dozier Gardner] /s/ M. Dozier Gardner
President
March 20, 1995
<PAGE>
MANAGEMENT REPORT
An interview with Thomas E. Faust, Jr., Vice President and Manager of Investors
Portfolio.
Q. TOM, SOME PEOPLE HAVE DESCRIBED THE LAST 12 MONTHS AS A VERY DIFFICULT PERIOD
FOR INVESTING. WOULD YOU AGREE?
A. It'd be hard not to. On the bond side, rising interest rates made it very
difficult to make money. In stocks, it was an ugly year, more so than the
performance of the market averages reflects. A very large number of stocks
declined dramatically during the period. In short, it was the sort of year
where investors could find few places to hide.
Q. DID YOU CHANGE THE MIX OF STOCKS AND BONDS IN THE PORTFOLIO TO ACCOMMODATE
THESE CONDITIONS?
A. We changed the mix only slightly during the year. We went from nearly 60
percent in stocks to 62 percent, and our bonds went from 34 to 36 percent. As
I said, they were minor changes.
Q. WHAT WERE SOME OF THE PORTFOLIO'S LARGER STOCK POSITIONS?
A. Loctite is one. It's a strong company that manufactures chemical adhesives
and lubricants. The company has a large exposure to the economic recovery in
Europe. Another stock in which we have a large position is General Re. Its
the nations largest reinsurer and a very profitable company. I think of
General Re as a classic growth stock.
[Photo of
Thomas E. Faust]
Q. ARE THERE ANY STOCKS IN THE PORTFOLIO ABOUT WHICH YOU'RE PARTICULARLY
OPTIMISTIC?
A. Three come to mind. Because it's our largest position as of January 31 Astra
AB, is worth highlighting. This Swedish pharmaceutical company is still
fairly early in its product cycle and last year entered into a joint venture
with Merck, the U.S. pharmaceutical giant. This should result in an increase
in profits coming out of this company in the next several years.
A second company is Monsanto, which has a profitable franchise in
agricultural chemicals. The company has new management and an attractive mix
of businesses and products that could lead the market to revalue the stock
upward. The third stock is Corning, which is a key player in the optical
fiber business. The so-called information superhighway is creating a
tremendous demand for optical fiber.
Q. WHAT'S LIKELY TO HAPPEN TO THE ECONOMY DURING THE COMING 12 MONTHS?
A. If economic indicators remain strong, I think well see continued action by
the Fed. We could well have one or even two more short-term interest rate
increases. But overall, we seem to be pretty near the end of the current boom
in economic conditions. It's clear that the economy will be slowing down, but
the big question -- and it's one that no one can answer -- is whether the Fed
will succeed in cooling the economy from a growth rate of more than 4 percent
to 2-3 percent, as it wants to, or whether the economy will be brought to a
halt, with little or no growth. A lot of what happens in investments hinges
on the answer to that question.
Q. GIVEN THAT FACT, WHAT DO YOU EXPECT THE INVESTMENT CLIMATE IN 1995 TO BE
LIKE?
A. I'm fairly optimistic. In terms of bonds, as we see a moderation in economic
growth, there could be a significant rally in the bond market. With the stock
market there are more uncertainties, but I'd have to say I'm relatively
optimistic there, too. I believe the strong economic growth that we saw
throughout 1994 will continue into at least a portion of 1995. That momentum
could combine with a stronger bond market to cause a stronger stock market
during the year. Most importantly, I'd say that these are times of
uncertainty, and times of uncertainty argue for conservatism, which is the
Funds investment style.
[Page 3 Chart]
This pie chart is entitled
EV TRADITIONAL INVESTORS FUND PORTFOLIO ALLOCATION AS OF 1/31/95
The pie is divided into the following segments:
Common Stock ........................ 61.45%
Preferred Stock ..................... 2.40%
Corporate Bonds ..................... 16.07%
U.S. Treasuries/Agencies ........... 18.47%
Short-Term Obligations .............. 2.22%
Convertible Bonds ................... 0.44%
Q. WILL YOU MAKE ANY CHANGES IN THE PORTFOLIO'S STRATEGY IN 1995?
A. Not major changes. Over the next 6 to 12 months, we'll likely reduce our
exposure to the stocks of cyclical companies, which we expect will perform at
lower levels in this portion of the economic cycle. In their place, we'll
accumulate more non-cyclical stocks, including those of utilities, financial
institutions and growth companies. There are people who believe that now is a
good time to invest in growth stocks, and I agree, as long as those
investments are in stocks of fundamentally strong companies that are truly
demonstrating growth.
Q. HAVE YOU CHANGED YOUR INVESTMENT GOALS IN ANY WAY?
A. Absolutely not. The goal of Investors Fund is to provide growth of capital
and current income, both of which are achieved through conservative
investment strategies. As a balanced fund, the Fund remains a sensible way
for the conservative investor to participate in the stock and bond markets.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV TRADITIONAL
INVESTORS FUND (INCLUDING SALES CHARGE), THE LEHMAN BROTHERS
GOVERNMENT/CORPORATE BOND INDEX, THE S&P 500 STOCK INDEX AND 90-DAY TREASURY
BILLS
From January 31, 1985, through January 31, 1995
AVERAGE ANNUAL RETURNS 1 Year 5 Year 10 Year
- ----------------------- ------ ------ -------
Incl. Max. Sales Charge -9.0% 7.5% 9.7%
Excl. Max. Sales Charge -4.5% 8.5% 10.2%
Traditional Lehman 90-Day
Investors Brothers S&P 500 T-Bills
----------- -------- ------- -------
1/85 9,524 10,000 10,000 10,000.00
2/85 9,561 9,808 10,086 10,063.06
3/85 9,646 9,995 10,165 10,136.30
4/85 9,720 10,201 10,118 10,202.95
5/85 10,190 10,714 10,665 10,268.46
6/85 10,351 10,819 10,907 10,327.63
7/85 10,376 10,784 10,854 10,389.47
8/85 10,388 10,979 10,724 10,452.82
9/85 10,175 11,034 10,463 10,513.65
10/85 10,526 11,256 10,908 10,577.67
11/85 10,947 11,514 11,617 10,640.27
12/85 11,330 11,870 12,256 10,704.16
1/86 11,342 11,940 12,285 10,768.16
2/86 11,829 12,441 13,164 10,826.23
3/86 12,237 12,881 13,977 10,886.83
4/86 12,193 12,940 13,780 10,941.05
5/86 12,533 12,684 14,472 10,997.92
6/86 12,681 13,052 14,798 11,054.06
7/86 12,237 13,137 13,929 11,108.89
8/86 12,911 13,483 14,921 11,161.44
9/86 12,103 13,315 13,770 11,209.05
10/86 12,387 13,508 14,523 11,258.36
11/86 12,493 13,673 14,835 11,307.87
12/86 12,383 13,723 14,538 11,360.59
1/87 13,402 13,911 16,454 11,413.18
2/87 13,752 14,002 17,061 11,462.12
3/87 13,936 13,926 17,638 11,516.25
4/87 13,603 13,555 17,436 11,570.77
5/87 13,687 13,495 17,541 11,627.28
6/87 14,176 13,663 18,518 11,681.65
7/87 14,596 13,633 19,411 11,739.00
8/87 15,159 13,557 20,090 11,798.82
9/87 14,920 13,265 19,740 11,860.11
10/87 13,117 13,762 15,444 11,924.58
11/87 12,565 13,849 14,126 11,981.52
12/87 13,083 14,039 15,291 12,040.54
1/88 13,352 14,520 15,909 12,100.88
2/88 13,820 14,687 16,574 12,153.70
3/88 13,508 14,542 16,161 12,214.32
4/88 13,606 14,457 16,313 12,273.76
5/88 13,724 14,361 16,365 12,339.12
6/88 14,119 14,685 17,232 12,405.04
7/88 14,099 14,601 17,138 12,475.94
8/88 13,919 14,639 16,477 12,550.33
9/88 14,199 14,959 17,286 12,624.91
10/88 14,419 15,224 17,735 12,703.61
11/88 14,277 15,052 17,400 12,783.80
12/88 14,480 15,103 17,814 12,871.64
1/89 15,141 15,304 19,080 12,962.26
2/89 14,911 15,188 18,528 13,046.59
3/89 15,079 15,269 19,074 13,144.43
4/89 15,624 15,592 20,029 13,238.42
5/89 15,932 15,976 20,733 13,332.87
6/89 16,041 16,497 20,754 13,422.95
7/89 16,848 16,840 22,588 13,513.24
8/89 16,980 16,579 22,938 13,604.02
9/89 17,025 16,651 22,973 13,690.34
10/89 16,914 17,073 22,395 13,778.59
11/89 17,138 17,227 22,765 13,865.45
12/89 17,486 17,252 23,441 13,955.42
1/90 16,696 17,016 21,828 14,045.98
2/90 16,955 17,054 22,014 14,129.59
3/90 17,026 17,055 22,732 14,224.03
4/90 16,672 16,898 22,120 14,314.99
5/90 17,679 17,389 24,155 14,409.58
6/90 17,704 17,670 24,155 15,501.25
7/90 17,999 17,889 24,029 14,595.59
8/90 17,000 17,630 21,763 14,687.82
9/90 16,725 17,777 20,851 14,776.91
10/90 16,625 18,013 20,712 14,867.15
11/90 17,283 18,406 21,953 14,953.54
12/90 17,664 18,684 22,711 15,040.03
1/91 17,995 18,893 23,654 15,120.50
2/91 18,537 19,056 25,245 15,189.52
3/91 18,743 19,187 25,997 15,265.76
4/91 18,821 19,408 26,006 15,336.90
5/91 19,162 19,499 27,010 15,408.68
6/91 18,765 19,478 25,941 15,479.60
7/91 19,401 19,723 27,104 15,552.96
8/91 19,830 20,177 27,637 15,624.16
9/91 20,018 20,599 27,326 15,691.58
10/91 20,393 20,782 27,651 15,758.61
11/91 20,122 20,990 26,436 15,818.19
12/91 21,423 21,697 29,600 15,873.54
1/92 20,921 21,376 29,011 15,925.31
2/92 21,062 21,489 29,288 15,973.90
3/92 20,752 21,371 28,856 16,028.84
4/92 20,978 21,499 29,660 16,079.04
5/92 21,359 21,917 29,689 16,129.02
6/92 21,535 22,239 29,405 16,172.50
7/92 22,090 22,808 30,563 16,217.56
8/92 22,177 23,011 29,830 16,260.81
9/92 22,296 23,324 30,332 16,300.50
10/92 22,059 22,967 30,396 16,339.82
11/92 22,418 22,946 31,315 16,381.99
12/92 22,805 23,341 31,852 16,427.21
1/93 22,867 23,850 32,076 16,469.90
2/93 23,304 24,346 32,413 16,507.17
3/93 23,586 24,429 33,239 16,548.81
4/93 23,429 24,617 32,394 16,588.12
5/93 23,507 24,605 33,130 16,629.82
6/93 23,896 25,163 33,396 16,672.19
7/93 24,025 25,324 33,218 16,715.38
8/93 25,002 25,907 34,362 16,758.68
9/93 25,296 25,997 34,256 16,799.45
10/93 25,427 26,104 34,920 16,842.83
11/93 22,784 26,074 34,470 16,886.02
12/93 25,356 26,189 35,048 16,930.19
1/94 26,326 26,582 36,187 16,973.61
2/94 25,663 26,002 35,100 17,015.41
3/94 24,649 25,365 33,730 17,066.28
4/94 24,789 25,155 34,119 17,118.74
5/94 24,843 25,110 34,542 17,179.66
6/94 24,302 25,052 33,875 17,238.68
7/94 25,095 25,553 34,941 17,302.96
8/94 25,570 25,563 36,255 17,369.09
9/94 24,987 25,177 35,530 17,435.33
10/94 25,206 25,149 36,272 17,508.78
11/94 24,676 25,104 34,839 17,548.33
12/94 24,896 25,270 35,524 17,668.56
1/95 25,154 25,755 36,386 17,755.75
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD.
*Investment operations commenced on 4/1/32.
FUND PERFORMANCE
The chart above compares the Fund's return with that of a broad-based market
index. The lines on the chart represent the total returns of $10,000
hypothetical investments in the Fund, the S&P 500 and the Lehman Brothers
Government/Corporate Bond Index.
TOTAL RETURN FIGURES
The solid colored line represents the Fund's performance and includes the Fund's
maximum current sales charge of 4.75%. The Fund's total return figure reflects
Fund expenses, fees and portfolio transaction costs, and assumes the
reinvestment of income dividends and capital gain distributions.
The dotted line represents the performance of the S&P 500, a broad-based, widely
recognized unmanaged index of 500 common stocks.
The black solid line represents the performance of the Lehman Brothers
Government/Corporate Bond Index, a diversified, unmanaged index of corporate and
U.S. government bonds. The Indices' total return figures do not reflect any
commissions or expenses that would be incurred if an investor individually
purchased or sold the securities in the Indices.
The dashed line represents the performance of 90-Day U.S. Treasury Bills. It is
included to indicate how the Fund has performed relative to a portfolio of cash
equivalents. Principal and interest payments of Treasury Bills are guaranteed by
the U.S. Government.
<PAGE>
<TABLE>
<CAPTION>
EV TRADITIONAL INVESTORS FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
-----------------------------------------------------------------------------------------------
January 31, 1995
-----------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investments in Investors Portfolio, (Portfolio) at value (Note 1A) $200,708,153
Receivable for Fund shares sold 14,571
Deferred organization expenses (Note 1D) 16,089
------------
Total assets $200,738,813
LIABILITIES:
Payable for Fund shares redeemed $259,637
Payable to affiliates --
Trustee fees 828
Custodian fee 730
Accrued expenses and other liabilities 58,664
--------
Total liabilities 319,859
------------
NET ASSETS for 29,291,350 shares of beneficial interest outstanding $200,418,954
============
SOURCES OF NET ASSETS:
Paid-in capital $174,660,208
Accumulated net realized gain on investment transactions
(computed on the basis of identified cost) 1,491,551
Undistributed net investment income 263,835
Unrealized appreciation of investments from
Portfolio (computed on the basis of identified cost) 24,003,360
------------
Total net assets $200,418,954
============
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($200,418,954 / 29,291,350 shares of beneficial interest outstanding) $6.84
=====
COMPUTATION OF OFFERING PRICE
Offering price per share (100/95.25 of $6.84) $7.18
=====
On sales of $100,000 or more, the offering price is reduced.
The accompanying notes are an integral part of the financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS (Continued)
STATEMENT OF OPERATIONS
-----------------------------------------------------------------------------------------------
For the Year Ended January 31, 1995
----------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME (NOTE 1B):
Interest income allocated from Portfolio $ 6,199,563
Dividend income allocated from Portfolio (net of
withholding tax expense of $22,305) 4,181,063
Expenses allocated from Portfolio (1,472,705)
------------
Total investment income 8,907,921
Expenses --
Compensation of Trustees not members of the
Investment adviser's organization (Note 4) $ 4,125
Custodian fees (Note 4) 15,287
Service fees (Note 5) 127,233
Transfer agent fees 163,423
Printing and postage 89,404
Registration fees 20,134
Amortization of organization expenses (Note 1D) 3,103
Legal and accounting services 806
Miscellaneous 13,908
------------
Total expenses 437,423
------------
Net investment income $ 8,470,498
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain from Portfolio on investment
transactions (identified cost basis) $ 1,556,290
Change in unrealized appreciation of investments (20,258,131)
------------
Net realized and unrealized loss on investments (18,701,841)
------------
Net decrease in net assets resulting from operations $(10,231,343)
=============
The accompanying notes are an integral part of the financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
-----------------------------------------------------------------------------------------------
YEAR ENDED JANUARY 31,
--------------------------------
1995 1994
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 8,470,498 $ 8,792,766
Net realized gain on investments 1,556,290 14,753,334
Change in unrealized appreciation on investments (20,258,131) 7,187,013
------------- ------------
Net increase (decrease) in net assets
from operations $ (10,231,343) $ 30,733,113
------------- ------------
Undistributed net investment income included in price
of shares redeemed and sold (Note 1E) -- (56,231)
------------- ------------
Distributions to shareholders --
From net investment income $ (8,249,107) $ (8,792,766)
In excess of net investment income -- (233,579)
From net realized gain on investment transactions (4,372,413) (15,055,322)
------------- ------------
Total distributions to shareholders $ (12,621,520) $(24,081,667)
Net increase (decrease) in net assets from Fund share
transactions (exclusive of amounts allocated to net
investment income) (Note 2) (4,130,436) 8,262,238
------------- ------------
Net increase (decrease) in net assets $ (26,983,299) $ 14,857,453
NET ASSETS:
At beginning of year 227,402,253 212,544,800
------------- ------------
At end of year $ 200,418,954 $227,402,253
============= ============
The accompanying notes are an integral part of the financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS (Continued)
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------------------------------
YEAR ENDED JANUARY 31,
- -------------------------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991
---------- --------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE -- Beginning of year $ 7.600 $ 7.390 $ 7.500 $ 7.060 $ 7.180
---------- --------- ---------- --------- ---------
Income (loss) from investment
operations:
Net investment income $ 0.283 $ 0.217 $ 0.342 $ 0.364 $ 0.417
Net realized and unrealized
gain (loss) on investments (0.623) 0.833 0.318 0.736 0.103
---------- --------- ---------- --------- ---------
Total income (loss) from
investment operations $ (0.340) $ 1.050 $ 0.660 $ 1.100 $ 0.520
---------- --------- ---------- --------- ---------
Less distributions:
From net investment income $ (0.275) $ (0.307) $ (0.360) $ (0.360) $ (0.430)
In excess of net investment income -- (0.008) -- -- --
From realized gain on investments (0.145) (0.525) (0.410) (0.300) (0.198)
From paid in capital -- -- -- (0.012)
---------- --------- ---------- --------- ---------
Total distributions $ (0.420) $ (0.840) $ (0.770) $ (0.660) $ (0.640)
---------- --------- ---------- --------- ---------
NET ASSET VALUE -- End of year $ 6.840 $ 7.600 $ 7.390 $ 7.500 $ 7.060)
========== ========= ========== ========= =========
TOTAL RETURN<F3> (4.45)% 15.13% 9.30% 16.26% 7.78%
RATIOS/SUPPLEMENTAL DATA (to
average daily net assets):
Expenses<F1> 0.91%<F4> 0.90% 0.89% 0.86% 0.89%
Net investment income 4.05%<F4> 4.07% 4.62% 4.96% 5.99%
PORTFOLIO TURNOVER<F2> 44% 32% 51% 66%
NET ASSETS AT END OF YEAR (000'S OMITTED) $ 200,419 $227,402 $ 212,545 $210,197 $198,066
<FN>
<F1>Includes the Fund's share of Investors Portfolio's allocated expenses for the six months ended July 31, 1994
and for the period from October 28, 1993, to January 31, 1994.
<F2>Portfolio Turnover represents the rate of portfolio activity for the period while the Fund was making
investments directly in securities. The portfolio turnover for the period since the Fund transferred
substantially all of its investable assets to the Portfolio is shown in the Portfolio's financial statements
which are included elsewhere in this report.
<F3>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 record date.
As of February 1, 1994, the Fund discontinued the use of equalization accounting (see Note 1E).
The accompanying notes are an integral part of the financial statements
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
EV Traditional Investors Fund (the Fund) is a diversified series of Eaton Vance
Investors Trust (the Trust). The Trust is an entity of the type commonly known
as a Massachusetts business trust and is registered under the Invesment Company
Act of 1940, as amended, as an open-end management investment company. On
October 28, 1993, the Fund transferred substantially all of its investable
assets to the Investors Portfolio (the Portfolio). The Fund invests all of its
investable assets in interests in the Portfolio, a New York Trust, having the
same investment objective as the Fund. The value of the Fund's investment in the
Portfolio reflects the Fund's proportionate interest in the net assets of the
Portfolio (92.4% at January 31, 1995). 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 VALUATIONS -- Valuations of securities by the Portfolio is
discussed in Note 1 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.
B. INCOME -- The Fund's net investment income 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 gain on investments, options and financial futures transactions.
Accordingly, no provision for federal income or excise tax is necessary.
Pursuant to Section 852 of the Internal Revenue Code, the Fund designates
$4,372,413 as capital gain dividends for its taxable year ended January 31,
1995.
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. EQUALIZATION -- Prior to February 1, 1994, the Fund followed the accounting
practice known as equalization by which a portion of the proceeds from the sales
and costs of reacquisitions of Fund shares was allocated to undistributed net
investment income. As a result, undistributed net investment income per share
was unaffected by sales or reacquisitions of Fund shares. As of February 1,
1994, the Fund discontinued the use of equalization. This change had no effect
on the Fund's net assets, net asset value per share, or its net increase or
(decrease) in net assets from operations. Discontinuing the use of equalization
will result in a simpler and more meaningful financial statement presentation.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
(2) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JANUARY 31,
--------------------------------------------------------
1995 1994
------------------------- -------------------------
<S> <C> <C> <C> <C>
SHARES AMOUNT SHARES AMOUNT
--------- ----------- ---------- -----------
Sales 1,384,961 $ 9,717,293 1,816,533 $13,478,305
Issued to shareholders electing to receive
payment of distributions in Fund shares 1,050,557 7,289,379 2,029,328 14,792,216
Redemptions (3,061,441) (21,137,108) (2,708,671) (20,008,283)
--------- ----------- ---------- -----------
Net increase (decrease) (625,923) $ (4,130,436) 1,137,190 $ 8,262,238
========= ============ ========== ===========
</TABLE>
- --------------------------------------------------------------------------------
(3) INVESTMENT TRANSACTIONS
Increases and decreases in the Fund's investment in the Portfolio for the year
ended January 31, 1995 aggregated $9,951,348 and $26,931,546, respectively.
<PAGE>
- --------------------------------------------------------------------------------
(4) TRANSACTIONS WITH AFFILIATES
Eaton Vance Management (EVM) serves only as the administrator of the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services. See
Note 3 of the Portfolio's Notes to Financial Statements which are included
elsewhere in this report. Except as to Trustees of the Fund and the Portfolio
who are not members of EVM's or BMR's organizations, officers and Trustees
receive remuneration for their services to the Fund out of such investment
adviser fee. Investors Bank & Trust Company (IBT), an affiliate of EVM, serves
as custodian of the Fund and the Portfolio. Pursuant to their respective
custodian agreements, IBT receives a fee reduced by credits which are determined
based on the average cash balances the Fund or the Portfolio maintains with IBT.
Certain of the officers and Trustees of the Fund and Portfolio are officers and
directors/trustees of the above organizations.
- -------------------------------------------------------------------------------
(5) SERVICE PLAN
The Fund adopted a Service Plan on July 7, 1993 designed to meet the
requirements of Rule 12b-1 under the Investment Company Act of 1940 and the
service fee requirements of the revised sales charge rule of The National
Association of Securities Dealers Inc. The Service Plan replaced the Fund's
distribution plan which became effective on July 1, 1989. The Service Plan
provides that the Fund may make service fee payments to the Principal
Underwriter, Eaton Vance Distributors, Inc., a subsidiary of Eaton Vance
Management, .25% of the Fund's average daily net assets for any fiscal year. The
Trustees have implemented the Service Plan by authorizing the Fund to make
quarterly service fee payments to the Principal Underwriter and Authorized Firms
in amounts not expected to exceed .25% of that portion of the Fund's average
daily net assets for any fiscal year which is attributable to shares of the Fund
sold by such persons and remaining outstanding for at least twelve months. Such
payments are made for personal services and/or maintenance of shareholder
accounts. During the year ended January 31, 1995 the Fund paid or accrued
$127,233 under the Plan to the Principal Underwriter and Authorized Firms.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of EV Traditional Investors Fund, a
series of Eaton Vance Investors Trust:
We have audited the accompanying statement of assets and liabilities of EV
Traditional Investors Fund (formerly Eaton Vance Investors Trust), a series of
Eaton Vance Investors Trust, as of January 31, 1995, and the related statement
of operations for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended and the financial highlights
for each of the five years in the period then ended. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
January 31, 1995 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of EV
Traditional Investors Fund, a series of Eaton Vance Investors Trust, as of
January 31, 1995, 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 five years in the period then ended, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 24, 1995
<PAGE>
INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1995
- --------------------------------------------------------------------------------
COMMON STOCKS -- 60.3%
- --------------------------------------------------------------------------------
NAME OF COMPANY SHARES VALUE
- --------------------------------------------------------------------------------
AUTOMOTIVE -- 1.9%
Ford Motor Co. 160,000 $ 4,040,000
------------
BANKS -- 4.1%
Chase Manhattan Corp. 100,000 $ 3,312,500
Chemical Banking Corp. 81,200 3,156,650
Great Western Financial 140,000 2,450,000
------------
$ 8,919,150
------------
BUILDING MATERIALS -- 0.4%
National Gypsum Co.* 20,000 $ 802,500
------------
BUSINESS PRODUCTS & SERVICES -- 2.8%
Dun & Bradstreet Corp. 40,000 $ 2,000,000
Reuters Holdings, PLC ADR 100,000 4,187,500
------------
$ 6,187,500
------------
CAPITAL GOODS -- 1.0%
LaFarge Corp. 120,500 $ 2,169,000
------------
Chemicals -- 4.1%
Loctite Corp. 90,000 $ 4,027,500
Monsanto Corp. 40,000 2,940,000
Nalco Chemical Co. 55,000 1,883,750
------------
$ 8,851,250
------------
COMPUTER SOFTWARE -- 1.2%
Novell Inc.* 150,000 $ 2,662,500
------------
DRUGS & MEDICAL -- 2.7%
Astra AB A Free Shares 230,000 $ 5,826,245
------------
ELECTRIC UTILITIES -- 3.1%
Entergy Corp. 30,000 $ 731,250
New England Electric System 90,000 2,992,500
The Southern Co. 140,000 2,922,500
------------
$ 6,646,250
------------
FINANCIAL -- 3.0%
Federal National Mortgage Association 40,000 $ 2,860,000
MGIC Investment Corp. 100,000 3,625,000
------------
$ 6,485,000
------------
The accompanying notes are an integral part of the financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS (Continued)
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
- --------------------------------------------------------------------------------
NAME OF COMPANY SHARES VALUE
- --------------------------------------------------------------------------------
FOOD & BEVERAGES -- 3.0%
Coca-Cola Co. 40,000 $ 2,100,000
Nestle SA 1,620 1,497,570
PepsiCo Inc. 80,000 2,950,000
------------
$ 6,547,570
------------
HEALTH CARE -- 1.2%
Sofamor Danek Group, Inc.* 160,000 $ 2,580,000
------------
INSURANCE -- 1.8%
General Re Corp. 30,000 $ 3,873,750
------------
MACHINERY -- 1.4%
Caterpillar Inc. 60,000 $ 3,090,000
------------
METALS & MINING -- 1.6%
J & L Specialty Steel, Inc. 175,000 $ 3,412,500
------------
NATURAL GAS -- 1.2%
National Fuel Gas Co. 100,000 $ 2,650,000
------------
OIL & OIL SERVICES -- 5.6%
Anadarko Petroleum Corp. 30,000 $ 1,147,500
Exxon Corp. 58,640 3,665,000
Mobil Corp. 40,000 3,455,000
Phillips Petroleum Co. 120,000 3,825,000
------------
$ 12,092,500
------------
PAPER & FOREST PRODUCTS -- 4.4%
Plum Creek Timber Co., L.P. 120,000 $ 2,745,000
Scott Paper Co. 50,000 3,468,750
Williamette Industries, Inc. 70,000 3,430,000
------------
$ 9,643,750
------------
PRINTING AND PUBLISHING -- 3.2%
R.R. Donnelley & Sons Co. 50,000 $ 1,512,500
Harcourt General, Inc. 85,000 2,836,875
McGraw-Hill, Inc. 40,000 2,600,000
------------
$ 6,949,375
------------
REAL ESTATE -- 3.6%
Chateau Properties, Inc. 75,000 $ 1,565,625
Colonial Properties Trust 80,000 1,790,000
Equity Residential Properties Trust 101,400 2,699,775
The accompanying notes are an integral part of the financial statements
<PAGE>
- --------------------------------------------------------------------------------
COMMON STOCKS (Continued)
- --------------------------------------------------------------------------------
NAME OF COMPANY SHARES VALUE
- --------------------------------------------------------------------------------
REAL ESTATE (continued)
ROC Communities, Inc. 66,250 1,258,750
Security Capital Industrial Trust 37,000 605,875
------------
$ 7,920,025
------------
RETAILING -- 0.9%
Family Dollar Stores, Inc. 150,000 $ 2,025,000
------------
SEMICONDUCTORS -- 1.9%
Advanced Micro Devices, Inc.* 70,000 $ 2,056,250
Intel Corp. 30,000 2,081,250
------------
$ 4,137,500
------------
TELECOMMUNICATIONS -- 0.8%
MCI Communications Corp. 100,000 $ 1,837,500
------------
TELEPHONE UTILITIES -- 1.6%
Ameritech Corp. 80,448 $ 3,529,656
------------
TRANSPORTATION -- 2.5%
Federal Express Corp.* 31,000 $ 1,883,250
Ryder Systems, Inc. 160,000 3,440,000
------------
$ 5,323,250
------------
MISCELLANEOUS -- 1.3%
Corning Inc. 90,000 $ 2,812,500
------------
TOTAL COMMON STOCK
(IDENTIFIED COST, $106,551,194) $131,014,271
------------
- --------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 1.2%
- --------------------------------------------------------------------------------
NAME OF COMPANY SHARES VALUE
- --------------------------------------------------------------------------------
Freeport McMoRan Copper & Gold, 5s 125,000 $ 2,562,500
------------
TOTAL CONVERTIBLE PREFERRED STOCK
(IDENTIFIED COST, $2,872,500) $ 2,562,500
------------
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 1.3%
- --------------------------------------------------------------------------------
NAME OF COMPANY SHARES VALUE
- --------------------------------------------------------------------------------
Bank of Boston Ser. C Adj. Rt. 37,600 $ 2,857,600
------------
TOTAL PREFERRED STOCK
(IDENTIFIED COST, $1,815,525) $ 2,857,600
------------
The accompanying notes are an integral part of the financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS (Continued)
- --------------------------------------------------------------------------------
CONVERTIBLE BOND -- 0.5%
- --------------------------------------------------------------------------------
FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
- --------------------------------------------------------------------------------
Browning Ferris Inds., cv.,
6.25s, 8/15/12 $ 1,000 $ 965,000
------------
TOTAL CONVERTIBLE BOND
(IDENTIFIED COST, $895,000) $ 965,000
------------
- --------------------------------------------------------------------------------
U.S. TREASURY/AGENCY OBLIGATIONS -- 18.5%
- --------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
8.10s, 12/15/04 $ 1,184 $ 1,194,821
Federal Home Loan Mortgage Corp.,
9s, 11/15/19 840 857,028
Federal Home Loan Mortgage Corp.,
10s, 5/15/20 2,325 2,495,004
Federal National Mortgage Association,
8.50s, 7/25/19 4,573 4,604,712
Federal National Mortgage Association,
9s, 3/25/20 2,000 2,053,120
Student Loan Marketing Association,
7.875s, 9/12/95 1,000 1,005,500
U.S. Treasury Bonds, 7.5s, 11/15/16 4,500 4,360,770
U.S. Treasury Bonds, 8.125s, 8/15/19 3,500 3,620,312
U.S. Treasury Notes, 8.125s, 2/15/98 3,000 3,055,770
U.S. Treasury Notes, 7.875s, 4/15/98 1,000 1,011,875
U.S. Treasury Notes, 8.875s, 5/15/00 7,000 7,406,840
U.S. Treasury Notes, 8.75s, 8/15/00 8,000 8,432,480
------------
TOTAL U.S. TREASURY/AGENCY OBLIGATIONS
(IDENTIFIED COST, $40,091,048) $ 40,098,232
------------
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 16.2%
- --------------------------------------------------------------------------------
American General Finance Corp.,
8.125s, 8/15/09 $ 2,460 $ 2,486,150
Associates Corp. of North America,
8.15s, 8/1/09 1,515 1,530,620
Chesapeake Potomac Telephone MD,
8s, 10/15/29 1,500 1,573,815
Chesapeake Potomac Telephone VA,
8.375s, 10/1/29 1,500 1,594,155
Dayton Hudson Medium Term Note, 9.35s, 6/16/20 1,190 1,415,124
Eaton Corp., 8s, 8/15/06 1,000 1,023,380
Eaton Corp., 8.875s, 6/15/19 3,000 3,118,290
The accompanying notes are an integral part of the financial statements
<PAGE>
- --------------------------------------------------------------------------------
CORPORATE BONDS (Continued)
- --------------------------------------------------------------------------------
FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
- --------------------------------------------------------------------------------
General Motors Acceptance Corp.,
8.875s, 6/1/10 3,000 3,183,570
General Motors Corp., 8.80s, 3/1/21 2,000 2,085,800
Inter American Development Bank,
8.875s, 6/1/09 3,000 3,242,790
Inter American Development Bank,
8.40s, 9/1/09 500 525,270
ITT Corp., 8.875s, 2/1/08 2,850 3,044,313
New England Telephone & Telegraph Co.,
7.875s, 11/15/29 3,360 3,432,543
Pitney Bowes Credit Corp.,
9.25s, 6/15/08 1,650 1,786,884
Pitney Bowes Credit Corp.,
8.55s, 9/15/09 500 524,700
Seagrams (Joseph) & Sons, 9.65s, 8/15/18 250 280,917
Sears Roebuck Medium Term Note,
10s, 2/3/12 1,000 1,123,800
Torchmark Corp., 8.25s, 8/15/09 1,000 1,006,290
TRW Inc., Medium Term Notes,
9.35s, 6/4/20 2,100 2,226,336
-----------
TOTAL CORPORATE BONDS
(IDENTIFIED COST, $36,806,539) $ 35,204,747
------------
- --------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS -- 0.2%
- --------------------------------------------------------------------------------
McDonald's Corp., 5.85, 2/1/95 $491,000 $ 491,000
------------
TOTAL SHORT-TERM OBLIGATIONS,
AT AMORTIZED COST $ 491,000
------------
TOTAL INVESTMENTS -- 98.2%
(IDENTIFIED COST, $189,522,806) $213,193,350
OTHER ASSETS, LESS LIABILITIES -- 1.8% 3,964,145
------------
NET ASSETS -- 100% $217,157,495
============
*Non-income producing security.
The accompanying notes are an integral part of the financial statements
<PAGE>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
January 31, 1995
- --------------------------------------------------------------------------------
ASSETS:
Investments, at value (Note 1A)
(identified cost, $189,522,806) $213,193,350
Cash 343
Receivable for investments sold 3,262,631
Dividends receivable 457,147
Interest receivable 1,815,488
Deferred organization expenses (Note 1D) 11,899
------------
Total assets $218,740,858
LIABILITIES:
Payable for investments purchased $ 1,575,205
Payable to affiliates --
Trustees' fees 3,185
Custodian fees 4,495
Accrued expenses 478
------------
Total liabilities 1,583,363
------------
NET ASSETS applicable to investors' interest in Portfolio $217,157,495
============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions
and withdrawals $193,486,951
Unrealized appreciation of investments
(computed on the basis of identified
cost) 23,670,544
------------
Total net assets $217,157,495
============
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the year ended January 31, 1995
- --------------------------------------------------------------------------------
INVESTMENT INCOME (Note 1B):
Interest income $ 6,511,359
Dividend income (net of withholding
tax expense of $23,221) 4,385,712
------------
Total income $ 10,897,071
Expenses --
Investment adviser fee (Note 3) $ 1,375,751
Custodian fee (Note 3) 114,290
Legal and accounting fees 31,953
Compensation of Trustees not
members of the investment
adviser's organization
(Note 3) 15,858
Amortization of organization expenses
(Note 1D) 3,194
Printing 1,811
Registration fee 273
Miscellaneous 1,995
----------
Total expenses 1,545,125
------------
Net investment income $ 9,351,946
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investment transactions
(identified cost basis) $ 1,467,119
Change in unrealized appreciation on investments (20,681,070)
------------
Net realized and unrealized loss
on investments $(19,213,951)
------------
Net decrease in net assets resulting from
operations $ (9,862,005)
============
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS (Continued)
STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------
YEAR ENDED JANUARY 31,
-------------------------------
1995 1994<F1>
---- -----
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 9,351,946 $ 2,135,513
Net realized gain on investment transactions 1,467,119 3,127,776
Change in unrealized appreciation (depreciation) of
investments (20,681,070) 3,139,232
------------ ------------
Net increase (decrease) in net assets from
operations $ (9,862,005) $ 8,402,521
------------ ------------
Capital transactions --
Contributions $ 29,380,822 $230,439,927
Withdrawals (32,695,351) (8,608,439)
------------ ------------
Increase (decrease) in net assets resulting from
capital transactions (3,314,529) 221,831,488
------------ ------------
Total increase (decrease) in net assets $(13,176,534) $230,234,009
NET ASSETS:
At beginning of period 230,334,029 100,020
------------ ------------
At end of period $217,157,495 $230,334,029
============ ============
<FN>
<F1> For the period from the start of business, October 28, 1993, to January 31, 1994.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
YEAR ENDED JANUARY 31,
-----------------------------
1995 1994*
---- -----
RATIOS (As a percentage of average
net assets):
Expenses 0.70% 0.69%+
Net investment income 4.25% 3.69%+
PORTFOLIO TURNOVER 28% 15%
+ Computed on an annualized basis.
* For the period from the start of business, October 28, 1993, to January 31,
1994.
The accompanying notes are an integral part of the financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1995
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Investors 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 in 1992. The Declaration of Trust
permits the Trustees to issue interests in the Portfolio. Investment operations
began on October 28, 1993, with the acquisition of Securities and other assets
of $221,294,780 in exchange for an interest in the Portfolio by one of the
Portfolio's investors. The following is a summary of significant accounting
policies of the Portfolio. The policies are in conformity with generally
accepted accounting principles.
A. INVESTMENT VALUATIONS -- Securities listed on securities exchanges or in the
NASDAQ National Market are valued at closing sales prices. Listed or unlisted
investments for which closing sale prices are not available are valued at the
mean between latest bid and asked prices. Debt investments (other than
mortgage-backed "pass-through" securities) are valued at prices furnished by a
pricing service. Mortgage-backed "pass through" securities are valued using a
matrix pricing system which takes into account closing bond valuations, yield
differentials, anticipated prepayments and interest rates. Short-term
obligations maturing in 60 days or less, are valued at amortized cost, which
approximates value. All other investments are valued at fair value using methods
determined in good faith by or at the direction of the Trustees.
B. INCOME -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount on debt investments when
required for federal income tax purposes. Dividend income is recorded on the
ex-dividend date. Dividend income may include dividends that represent returns
of capital for federal income tax purposes.
C. 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. Since some of the
Portfolio's investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolio, the Portfolio must satisfy
the applicable source of income and diversification requirements (under the
Code) in order for its investors to satisfy them. The Portfolio will allocate at
least annually among its investors each investors' distributive share of the
Portfolio's net taxable income, net realized capital gains, and any other items
of income, gain, loss, deduction or credit.
D. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line basis
over five years.
E. SECURITY TRANSACTIONS -- Investment transactions are accounted for on the
date the investments are purchased or sold. Realized gains and losses on the
sale of investments are determined on the identified cost basis.
<PAGE>
- --------------------------------------------------------------------------------
(2) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Govern- ment securities and
short-term obligations, aggregated $50,400,624 and $37,810,367, respectively.
Purchases and sales of U.S. Government securities aggregated $29,817,656 and
$21,530,625, respectively.
- --------------------------------------------------------------------------------
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR), a
wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation for
management and investment advisory services rendered to the Portfolio. The fee
is computed at the monthly rate of 5/96 of 1% (0.625% annually) of the
Portfolio's average daily net assets up to $300 million and at reduced rates as
daily net assets exceed that level. For the year ended January 31, 1995, the fee
was equivalent to 0.625% (annualized) of the Portfolio's average net assets for
such period and amounted to $1,375,751. Except as to Trustees of the Portfolio
who are not members of EVM's or BMR's organization, officers and Trustees
receive remuneration for their service to the Portfolio out of such investment
adviser fee. Investors Bank & Trust Company (IBT), an affiliate of EVM and BMR,
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. Certain of the officers
and Trustees of the Portfolio are officers and directors/trustees of the above
organizations.
- --------------------------------------------------------------------------------
(4) LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $120 million unsecured line of credit agreement with
a bank. The line of credit consists of a $20 million committed facility and a
$100 million discretionary facility. 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 either the bank's adjusted certificate of deposit
rate, a variable adjusted certificate of deposit rate, or a federal funds
effective rate. In addition, a fee computed at an annual rate of 1/4 of 1% on
the $20 million committed facility and on the daily unused portion of the $100
million discretionary 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.
- --------------------------------------------------------------------------------
(5) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/(depreciation) in the value of investments
owned at January 31, 1995, as computed on a federal income tax basis, are as
follows:
Aggregate cost $189,491,037
============
Gross unrealized appreciation $ 32,727,049
Gross unrealized depreciation 9,024,736
------------
Net unrealized appreciation $ 23,670,544
============
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Trustees and Investors of
Investors Portfolio:
We have audited the accompanying statement of assets and liabilities of
Investors Portfolio, including the portfolio of investments, as of January 31,
1995, the related statement of operations for the year then ended and the
statement of changes in net assets and supplementary data for the year ended
January 31, 1995, and for the period from October 28, 1993 (start of business)
to January 31, 1994. These financial statements and supplementary data are the
responsibility of the Portfolio's management. Our responsibility is to express
an opinion on these financial statements and supplementary data based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and supplementary
data are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
January 31, 1995 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and supplementary data referred to
above present fairly, in all material respects, the financial position of
Investors Portfolio as of January 31, 1995, the results of its operations for
the year then ended, and the changes in its net assets and the supplementary
data for the year ended January 31, 1995, and for the period from October 28,
1993 (start of business) to January 31, 1994, in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 24, 1995
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT MANAGEMENT
EV TRADITIONAL OFFICERS TRUSTEES
INVESTORS M. DOZIER GARDNER DONALD R. DWIGHT
FUND President, Trustee President, Dwight Partners, Inc.
24 Federal Street THOMAS E. FAUST, JR. Chairman, Newspapers of
Boston, MA 02110 Vice President New England, Inc.
PETER F. KIELY JAMES B. HAWKES
Vice President, Executive Vice President,
Trustee Eaton Vance Management
MICHAEL B. TERRY SAMUEL L. HAYES, III
Vice President Jacob H. Schiff Professor of
JAMES L. O'CONNOR Investment Banking,
Treasurer Harvard University
THOMAS OTIS Graduate School of
Secretary Business Administration
WILLIAM J. AUSTIN, JR. NORTON H. REAMER
Assistant Treasurer President and Director, United
JANET E. SANDERS Asset Management Corporation
Assistant Treasurer and JOHN L. THORNDIKE
Assistant Secretary Director, Fiduciary
Trust Company
JACK L. TREYNOR
Investment Adviser and
Consultant
------------------------------------------------------------
INVESTORS OFFICERS TRUSTEES
PORTFOLIO M. DOZIER GARDNER DONALD R. DWIGHT
24 Federal Street President, Trustee President, Dwight Partners, Inc.
Boston, MA 02110 THOMAS E. FAUST, JR. Chairman, Newspapers of
Vice President and New England, Inc.
Portfolio Manager SAMUEL L. HAYES, III
JAMES B. HAWKES Jacob H. Schiff Professor of
Vice President, Trustee Investment Banking,
PETER F. KIELY Harvard University
Vice President, Trustee Graduate School of Business
MICHAEL B. TERRY Administration
Vice President NORTON H. REAMER
JAMES L. O'CONNOR President, United Asset
Treasurer JOHN L. THORNDIKE
THOMAS OTIS Director, Fiduciary
Secretary Trust Company
WILLIAM J. AUSTIN, JR. JACK L. TREYNOR
Assistant Treasurer Investment Adviser and
JANET E. SANDERS Consultant
Assistant Treasurer and
Assistant Secretary
<PAGE>
INVESTMENT ADVISER OF
INVESTORS PORTFOLIO
Eaton Vance Management
24 Federal Street
Boston, MA 02110
ADMINISTRATOR OF
EV TRADITIONAL INVESTORS FUND
Eaton Vance Management
24 Federal Street
Boston, MA 02110
UNDERWRITER
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
CUSTODIAN
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
TRANSFER AND DIVIDEND
DISBURSING AGENT
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
(800) 262-1122
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
This report must be preceded or accompanied by a current
prospectus which contains more complete information on the Fund,
including its distribution plan, sales charges and expenses.
Please read the prospectus carefully before you invest or send
money.
EV TRADITIONAL INVESTORS FUND
24 FEDERAL STREET
BOSTON, MA 02110
T-IFSRC
EV
TRADITIONAL
INVESTORS
FUND
ANNUAL
SHAREHOLDER REPORT
JANUARY 31, 1995
