<PAGE>
TO SHAREHOLDERS
During the 12 months ending January 31, 1995, EV Marathon Investors Fund had a
total return of -5.5 percent. That return reflects a decline in net asset value
to $9.54 per share from $10.39 per share at the beginning of the year and income
dividends of $0.275 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.
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.
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.
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, should produce desirable long-term investment results.
EV MARATHON INVESTORS FUND
The Portfolio's 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
While past performance is no guarantee of future returns, we believe EV Marathon
Investors Fund will continue to demonstrate the consistent productivity of the
balanced approach to investing over extended periods, which are bound to include
both chaotic and tranquil investment conditions.
[Photo of Sincerely,
M. Dozier Gardner]
/s/ M. Dozier Gardner
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 broad 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. It's
the nation's 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 is 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 we'll 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 UNCERTAINTY, 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.
[Page 3 Chart]
This pie chart is entitled
EV MARATHON 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%
Most importantly, I'd say that these are times of uncertainty, and times of
uncertainty argue for conservatism, which is the Fund's investment style.
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 MARATHON INVESTORS
FUND, (INCLUDING SALES CHARGE), THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND
INDEX, THE S&P 500 STOCK INDEX AND 90-DAY U.S. TREASURY BILLS
From November 30, 1993, through January 31, 1995
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC -10.1% -5.3%
Without CDSC -5.5% -1.5%
Marathon Lehman 90-Day
Investors Brothers S&P 500 T-Bills
----------- -------- ------- -------
11/93 10,000 10,000 10,000 10,000.00
12/93 10,183 10,044 10,168 10,026.16
1/94 10,538 10,195 10,498 10,051.88
2/94 10,284 9,972 10,183 10,076.63
3/94 9,875 9,728 9,785 10,106.75
4/94 9,926 9,647 9,989 10,137.82
5/94 9,938 9,630 10,021 10,173.90
6/94 9,722 9,608 9,827 10,208.85
7/94 10,000 9,800 10,137 10,246.91
8/94 10,187 9,804 10,518 10,286.08
9/94 9,948 9,656 10,308 10,325.31
10/94 10,000 9,645 10,523 10,368.80
11/94 9,787 9,628 10,107 10,413.54
12/94 9,870 9,692 10,306 10,463.43
1/95 9,964 9,878 10,556 10,515.06
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 11/2/93.
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. 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 second dollar amount listed for the Fund reflects the Fund's maximum
applicable contingent deferred sales charge (CDSC), deducted at redemption as
follows: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year; 2% - 5th year;
and 1% - 6th year.
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>
EV MARATHON INVESTORS FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
January 31, 1995
- --------------------------------------------------------------------------------
ASSETS:
Investment in Investors Portfolio, (Portfolio)
at value (Note 1A) $14,460,011
Receivable for Fund shares sold 27,927
Deferred organization expenses (Note 1D) 33,357
-----------
Total assets $14,521,295
LIABILITIES:
Payable for Fund shares redeemed $ 2,144
Payable to affiliates --
Trustee fees 83
Custodian fee 42
Accrued expenses 11,056
-------
Total liabilities 13,325
-----------
NET ASSETS for 1,520,279 shares of beneficial
interest outstanding $14,507,970
===========
SOURCES OF NET ASSETS:
Paid-in capital $14,746,282
Accumulated net realized gain (loss) on investment
transactions (computed on the basis of
identified cost) (49,175)
Undistributed net investment income 56,796
Unrealized depreciation of investments
from Portfolio (computed on the basis
of identified cost) (245,933)
-----------
Total net assets $14,507,970
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE ($14,507,970 / 1,520,279 shares of
beneficial interest outstanding) $9.54
=====
The accompanying notes are an integral part of the financial statements
<PAGE>
FINANCIAL STATEMENTS (Continued)
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the year ended January 31, 1995
- --------------------------------------------------------------------------------
INVESTMENT INCOME (NOTE 1B):
Interest income allocated from Portfolio $ 253,355
Dividend income allocated from Portfolio
(net of withholding tax expense of $705) 166,615
Expenses allocated from Portfolio (58,633)
----------
Total investment income 361,337
Expenses --
Custodian fee (Note 6) $ 10,691
Distribution fees (Note 4) 64,624
Compensation of Trustees not members of
Investment Adviser's organization (Note 6) 327
Printing and postage 23,309
Legal and accounting services 17,072
Amortization of organization expenses (Note 1D) 8,030
Registration fees 16,845
Transfer agent fees 7,889
--------
Total expenses 148,787
---------
Net investment income $ 212,550
REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIO:
Net realized loss from Portfolio investment
transactions (identified cost basis) $(66,913)
Change in unrealized appreciation of investments (312,931)
--------
Net realized and unrealized loss on investments (379,844)
---------
Net decrease in net assets resulting from
operations $(167,294)
=========
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
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 $ 212,550 $ 5,988
Net realized gain (loss) on investments (66,913) 649
Unrealized appreciation of investments (312,931) 66,998
----------- ----------
Net increase (decrease) in net assets from
operations $ (167,294) $ 73,635
----------- ----------
Distributions to shareholders --
From net investment income $ (204,818) --
From net realized gain on investment transactions 649 --
----------- ----------
Total distributions to shareholders $ 205,467 --
Net increase in net assets from Fund share transactions
(Note 2) $12,394,066 $2,413,020
----------- ----------
Net increase in net assets $12,021,305 $2,486,655
NET ASSETS:
At beginning of period 2,486,665 10
----------- ----------
At end of period $14,507,970 $2,486,665
=========== ==========
<FN>
<F1> For the period from the start of business, November 2, 1993, to January
31, 1994.
The accompanying notes are an integral part of the financial statements
</TABLE>
<PAGE>
FINANCIAL STATEMENTS (Continued)
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
YEAR ENDED JANUARY 31,
---------------------------
1995 1994**
------- -------
NET ASSET VALUE -- End of period $10.390 $10.000
------- -------
Income (loss) from investment operations:
Net investment income $ 0.286 $ 0.025
Net realized and unrealized gain (loss) on
investments (0.861) 0.365
------- -------
Total income (loss) from investment
operations (0.575) $ 0.390
------- -------
Less distributions:
From net investment income (0.274) --
From realized gain on investments (0.001) --
-------- -------
Total distributions (0.275) --
NET ASSET VALUE -- End of period $ 9.540 $10.390
======= =======
TOTAL RETURN*** (5.44)% 3.9%
RATIOS/SUPPLEMENTAL DATA (to average daily net
assets)*:
Expenses(1) 2.41% 1.04%+
Net investment income 2.47% 2.49%+
NET ASSETS, END OF PERIOD (000'S OMITTED) $14,508 $2,487
* The expenses related to the operation of the Fund reflect an allocation of
expenses to the Administrator. Had such action not been taken, net
investment income per share and the ratios would have been as follows:
Ratios (to average daily net assets)
Expenses(1) 2.29%+
Net investment income 1.24%+
** For the period from the start of business, November 2, 1993, to January 31,
1994.
*** 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.
+ Computed on an annualized basis.
(1) Includes the Fund's share of Investors Portfolio's allocated expenses.
Note: Certain of the per share amounts have been computed using average shares
outstanding.
The accompanying notes are an integral part of the financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
EV Marathon 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 Investment Company
Act of 1940, as amended, as an open-end management investment company. The Fund
invests all of its investable assets in interests in the 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 (6.7% 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. At
January 31, 1995, the Fund, for federal income tax purposes, had a capital loss
carryover of $28,390, which will reduce the Fund's taxable income arising from
future net realized gain on investment transactions, if any, to the extent
permitted by the Internal Revenue Code, and thus will reduce the amount of the
distributions to shareholders which would otherwise be necessary to relieve the
Fund of any liability for federal income or excise tax. Such capital loss
carryover will expire on January 31, 2003. Pursuant to Section 852 of the
Internal Revenue Code, the Fund designates $649 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 beginning on the date the Fund commenced operations.
E. OTHER -- Investment transactions are accounted for on the date the
investments are purchased or sold. Distributions to shareholders are recorded on
the ex-dividend date. Dividend income may include dividends that represent
returns of capital for federal tax purposes.
F. DISTRIBUTION COSTS -- For book purposes, commissions paid on the sale of Fund
shares and other distribution costs are charged to operations. For tax purposes,
commissions paid were charged to paid-in capital prior to November 16, 1994 and
subsequently charged to operations. The change in the tax accounting practice
was prompted by a recent Internal Revenue Service ruling and has no effect on
either the Fund's current yield or total return (Note 5).
G. DISTRIBUTIONS -- Generally accepted accounting principles require that
differences in the recognition or classification of income between the financial
statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or accumulated net realized
gains.
<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<F1>
------------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------------- --------------- ----------- --------------
<S> <C> <C> <C> <C>
Sales 1,591,466 $15,386,579 266,397 $2,686,435
Issued to shareholders electing to
receive payment of
distributions in Fund shares 18,936 180,856 -- --
Redemptions (329,514) (3,173,369) (27,006) (273,415)
--------- ----------- ------- ----------
Net increase 1,280,888 $12,394,066 239,391 $2,413,020
========= =========== ======= ==========
<FN>
<F1> From the start of business November 2, 1993 to January 31, 1994.
</TABLE>
(3) INVESTMENT TRANSACTIONS
Increases and decreases in the Fund's investment in the Portfolio aggregated
$15,609,892 and $3,385,045 respectively.
(4) DISTRIBUTION PLAN
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Plan requires the Fund to pay the
principal underwriter, Eaton Vance Distributors, Inc. (EVD), amounts equal to
1/365th of 0.75% of the Fund's daily net assets, for providing ongoing
distribution services and facilities to the Fund. The Fund will automatically
discontinue payments to EVD during any period in which there are no outstanding
Uncovered Distribution Charges, which are equivalent to the sum of (i) 5% of the
aggregate amount received by the Fund for shares sold plus, (ii) distribution
fees calculated by applying the rate of 1% over the prevailing prime rate to the
outstanding balance of Uncovered Distribution Charges of EVD, reduced by amounts
theretofore paid to EVD. The amount payable to EVD with respect to each day is
accrued on such day as a liability of the Fund and, accordingly, reduces the
Fund's net assets. The Fund paid $64,624 to EVD for the year ended January 31,
1995, representing 0.75% (annualized) of average daily net assets. At January
31, 1995, the amount of Uncovered Distribution Charges of EVD calculated under
the Plan was approximately $603,844.
In addition, the Plan authorizes the Fund to make payments of service fees to
the Principal Underwriter, Authorized Firms and other persons in amounts not
exceeding 0.25% of the Fund's average daily net assets for each fiscal year. The
Trustees have implemented the Plan by authorizing the Fund to make quarterly
payments of service fees to the Principal Underwriter and Authorized Firms in
amounts not expected to exceed 0.25% of the Fund's average daily net assets for
each fiscal year based on the value of Fund shares sold by such persons and
remaining outstanding for at least twelve months, and that payments of these
service fees shall commence with the quarter ending December 31, 1994. 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.
Certain officers and Trustees of the Fund are officers or directors of EVD.
(5) CONTINGENT DEFERRED SALES CHARGE
A contingent deferred sales charge (CDSC) is imposed on any redemption of Fund
shares made within six years of purchase. Generally, the CDSC is based upon the
lower of the net asset value at date of redemption or date of purchase. No
charge is levied on shares acquired by reinvestment of dividends or capital gain
distributions. The CDSC is imposed at declining rates that begin at 5% in the
first and second year of redemption after purchase, declining one percentage
point each subsequent year. No CDSC is levied on shares which have been sold to
EVM or its affiliates or to their respective employees or clients. CDSC charges
are paid to EVD to reduce the amount of Uncovered Distribution Charges
calculated under the Fund's Distribution Plan. CDSC charges received when no
Uncovered Distribution Charges exist will be retained by the Fund. EVD received
approximately $63,911 of CDSC paid by shareholders for the year ended January
31, 1995.
(6) 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 of 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.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of
EV Marathon Investors Fund, a series of Eaton Vance Investors Trust:
We have audited the accompanying statement of assets and liabilities of EV
Marathon Investors Fund, a series of Eaton Vance Investors Trust, as of January
31, 1995, the related statement of operations for the year then ended, the
statement of changes in net assets and the financial highlights for the year
then ended and for the period from November 2, 1993 (start of business) to
January 31, 1994. 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
Marathon Investors Fund, a series of Eaton Vance Investors Trust, as of January
31, 1995, the results of its operations for the year then ended, and the changes
in its net assets and financial highlights for the year then ended and for the
period from November 2, 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>
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. Government 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 MARATHON OFFICERS TRUSTEES
INVESTORS FUND M. DOZIER GARDNER DONALD R. DWIGHT
24 Federal Street President, Trustee President, Dwight
Boston, MA 02110 THOMAS E. FAUST, JR. Partners, Inc.
Vice President Chairman, Newspapers of
PETER F. KIELY New England, Inc.
Vice President, JAMES B. HAWKES
Trustee Executive Vice
MICHAEL B. TERRY President, Eaton
Vice President Vance Management
JAMES L. O'CONNOR SAMUEL L. HAYES, III
Treasurer Jacob H. Schiff
THOMAS OTIS Professor of
Secretary Investment Banking, Harvard
WILLIAM J. AUSTIN, JR. University Graduate
Assistant School of Business Administration
Treasurer NORTON H. REAMER
JANET E. SANDERS President, United Asset
Assistant Management Corporation
Treasurer and JOHN L. THORNDIKE
Assistant Director, Fiduciary
Secretary 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
Boston, MA 02110 THOMAS E. FAUST, JR. Partners, Inc.
Vice President and Chairman, Newspapers of
Portfolio Manager New England, Inc.
JAMES B. HAWKES SAMUEL L. HAYES, III
Vice President, Jacob H. Schiff
Trustee Professor of Investment Banking,
PETER F. KIELY Harvard
Vice President, University Graduate
Trustee School of Business
MICHAEL B. TERRY Administration
Vice President NORTON H. REAMER
JAMES L. O'CONNOR President, United Asset
Treasurer Management Corporation
THOMAS OTIS JOHN L. THORNDIKE
Secretary Director, Fiduciary
WILLIAM J. AUSTIN, JR. Trust Company
Assistant JACK L. TREYNOR
Treasurer Investment Adviser and Consultant
JANET E. SANDERS
Assistant Treasurer and
Assistant Secretary
<PAGE>
INVESTMENT ADVISER OF
INVESTORS PORTFOLIO
Boston Management and Research
24 Federal Street
Boston, MA 02110
ADMINISTRATOR OF
EV MARATHON 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
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 MARATHON INVESTORS FUND
24 FEDERAL STREET
BOSTON, MA 02110
M-IFSRC
EV MARATHON
INVESTORS
FUND
ANNUAL
SHAREHOLDER REPORT
JANUARY 31, 1995
