<PAGE>
Worldwide Developing Resources Portfolio as of August 31, 1998
PORTFOLIO OF INVESTMENTS
(Expressed in United States Dollars)
Common Stocks -- 89.1%
Security Shares Value
- --------------------------------------------------------------------------------
Diamonds -- 5.1%
- --------------------------------------------------------------------------------
Canabrava Diamond Corp./(1)/ 100,000 $ 54,980
Diamondworks, Ltd./(1)(2)/ 150,000 81,510
Diamondworks, Ltd./(1)/ 150,000 81,510
Namibian Minerals Corp./(1)/ 75,000 84,375
Southernera Resources, Ltd./(1)/ 34,700 130,888
- --------------------------------------------------------------------------------
$ 433,263
- --------------------------------------------------------------------------------
Fertilizer -- 4.0%
- --------------------------------------------------------------------------------
Asia Pacific Resources/(1)/ 150,000 $ 340,439
- --------------------------------------------------------------------------------
$ 340,439
- --------------------------------------------------------------------------------
Metals - Gold -- 23.2%
- --------------------------------------------------------------------------------
Argosy Mining Corp./(2)(3)/ 100,000 $ 11,510
Ashanti Goldfields Co., Ltd./(3)/ 8,889 57,781
Barrick Gold Corp./(3)/ 15,000 195,000
Black Hawk Mining, Inc. 50,000 4,155
Black Hawk Mining, Inc./(2)/ 30,000 2,493
Black Swan Gold Mines, Ltd. 200,000 16,620
Canarc Resource Corp./(1)(2)/ 150,000 11,505
Crystallex International Corp./(1)(3)/ 150,000 65,625
Etruscan Enterprises, Ltd./(1)/ 150,000 172,620
Global Pacific Minerals, Inc./(1)/ 400,000 30,680
Golden Gram Resources, Inc./(1)/ 250,000 39,950
Greenstone Resources, Ltd./(1)/ 50,000 62,500
Iamgold International African Mining/(2)/ 25,000 39,638
Intrepid Minerals Corp./(2)/ 300,000 28,770
Kazakhstan Minerals Corp. 40,000 5,600
Meridian Gold/(1)/ 120,000 358,140
Minefinders Corp./(1)/ 100,000 53,700
Minorca Resources, Inc./(1)(2)/ 50,000 14,385
Nevsun Resources, Ltd. 40,000 10,740
Queenstake Resources, Ltd./(2)/ 150,000 19,185
Repadre Capital Corp./(1)/ 70,000 111,881
Rio Narcea Gold Mines, Ltd./(1)(3)/ 60,000 91,440
Rio Narcea Gold Mines, Ltd./(1)(2)(3)/ 60,000 91,440
Romarco Minerals, Inc./(1)(3)/ 125,000 119,063
Southwestern Gold Corp./(1)(3)/ 80,000 162,640
Steppe Gold Resources, Ltd./(1)/ 200,000 30,040
Steppe Gold Resources, Ltd./(1)(2)/ 200,000 30,040
Sutton Resources Ltd./(2)/ 20,000 46,670
Tanganyika Gold NL 300,000 14,829
Tombstone Explorations Co., Ltd./(2)(3)/ 225,000 25,898
TVX Gold, Inc./(1)/ 5,000 5,625
TVX Gold, Inc./(1)(2)/ 45,000 50,625
- --------------------------------------------------------------------------------
$1,980,788
- --------------------------------------------------------------------------------
Metals - Industrial -- 12.1%
- --------------------------------------------------------------------------------
AMT International Mining Corp./(1)(3)/ 817,200 $ 203,728
Billiton PLC/(2)(3)/ 75,000 127,646
Breakwater Resources, Ltd./(1)/ 100,000 51,150
Corriente Resources, Inc./(1)(2)(3)/ 75,000 26,370
Corriente Resources, Inc./(2)(3)/ 84,500 29,710
First Quantum Minerals/(1)/ 159,091 111,873
First Quantum Minerals/(1)(2)/ 100,000 70,320
Formation Capital Corp./(2)/ 400,000 191,800
Freeport McMoran Copper & Gold, Inc. 16,300 185,413
Tiomin Resources, Inc./(2)(3)/ 200,000 38,360
- --------------------------------------------------------------------------------
$1,036,370
- --------------------------------------------------------------------------------
Metals - Silver -- 3.0%
- --------------------------------------------------------------------------------
Apex Silver Mines, Ltd./(1)/ 20,000 $ 135,000
Pan American Silver Corp./(1)/ 10,000 51,250
Silver Standard Resources, Inc./(1)/ 100,000 75,000
- --------------------------------------------------------------------------------
$ 261,250
- --------------------------------------------------------------------------------
Metals - Steel -- 8.1%
- --------------------------------------------------------------------------------
Ispat International 15,000 $ 162,188
Reliance Steel and Aluminum Co. 10,000 305,000
Steel Dynamics Corp./(1)/ 20,000 222,500
- --------------------------------------------------------------------------------
$ 689,688
- --------------------------------------------------------------------------------
Oil and Gas - Equipment and Services -- 1.0%
- --------------------------------------------------------------------------------
Unifab International, Inc. 10,000 $ 85,000
- --------------------------------------------------------------------------------
$ 85,000
- --------------------------------------------------------------------------------
Oil and Gas - Exploration and Production -- 31.9%
- --------------------------------------------------------------------------------
Abacan Resources Corp./(1)/ 70,000 $ 24,066
Anadarko Petroleum Corp. 10,000 287,500
Arakis Energy Corp./(1)/ 170,000 180,625
Beau Canada Exploration, Ltd./(1)(3)/ 100,000 100,370
Bellator Exploration, Inc./(2)/ 300,000 105,480
See notes to financial statements
13
<PAGE>
Worldwide Developing Resources Portfolio as of August 31, 1998
PORTFOLIO OF INVESTMENTS CONT'D
(Expressed in United States Dollars)
Security Shares Value
- --------------------------------------------------------------------------------
Oil and Gas - Exploration and Production (continued)
- --------------------------------------------------------------------------------
EEX Corp./(1)/ 35,000 $ 155,313
FX Energy, Inc./(1)/ 50,000 300,000
Louis Dreyfus Natural Gas/(1)/ 20,000 226,250
Mercantile International Petroleum/(1)(3)/ 342,000 30,780
Meridian Resource Corp./(1)/ 70,000 201,250
Pease Oil and Gas Co./(2)/ 150,000 23,445
Petsec Energy, Ltd., ADR/(1)/ 25,000 139,063
Probe Exploration, Inc./(1)/ 60,000 103,572
Ranger Oil, Ltd. 30,000 159,375
Remington Energy, Ltd./(3)/ 20,000 83,820
Seagull Energy Corp. 20,000 177,500
Seven Seas Petroleum Co./(3)/ 20,000 206,000
Seven Seas Petroleum Co./(2)(3)/ 10,000 103,000
Triton Energy, Ltd./(1)/ 10,000 115,000
- --------------------------------------------------------------------------------
$2,722,409
- --------------------------------------------------------------------------------
Paper and Forest Products -- 0.7%
- --------------------------------------------------------------------------------
Saint Laurent Paperboard, Inc./(2)/ 10,000 $ 63,500
- --------------------------------------------------------------------------------
$ 63,500
- --------------------------------------------------------------------------------
Total Common Stocks
(identified cost $22,986,986) $7,612,707
- --------------------------------------------------------------------------------
Installment Receipts -- 0.0%
Security Shares Value
- --------------------------------------------------------------------------------
Oil and Gas - Equipment and Services -- 0.0%
- --------------------------------------------------------------------------------
Fracmaster, Ltd./(2)/ 11,000 $ --
- --------------------------------------------------------------------------------
$ --
- --------------------------------------------------------------------------------
Total Installment Receipts
(identified cost $77,552) $ --
- --------------------------------------------------------------------------------
Preferred Stocks -- 0.0%
Security Shares Value
- --------------------------------------------------------------------------------
Metals - Gold -- 0.0%
Ashanti Goldfields Co., Ltd., Class B, 3/31/99/(4)/ 8,889 $ --
Ashanti Goldfields Co., Ltd., Class C, 3/31/00/(4)/ 8,889 --
Ashanti Goldfields Co., Ltd., Class D, 3/31/01/(4)/ 8,889 --
Ashanti Goldfields Co., Ltd., Class E, 3/31/02/(4)/ 8,889 --
- --------------------------------------------------------------------------------
$ --
- --------------------------------------------------------------------------------
Total Preferred Stock
(identified cost $--) $ --
- --------------------------------------------------------------------------------
Private Placements and Special
Warrants -- 12.2%
Security Shares Value
- --------------------------------------------------------------------------------
Metals - Gold -- 12.2%
- --------------------------------------------------------------------------------
Nevada Pacific Mining Co./(2)(4)/ 80,000 $ 80,000
Quincunx Gold Exploration/(2)(4)/ 300,000 285,751
Western Exploration and Development, Ltd./(1)(2)(4)/ 600,000 674,999
- --------------------------------------------------------------------------------
$1,040,750
- --------------------------------------------------------------------------------
Total Private Placements and Special Warrants
(identified cost $969,101) $1,040,750
- --------------------------------------------------------------------------------
Warrants -- 0.0%
Security Shares Value
- --------------------------------------------------------------------------------
Diamonds -- 0.0%
- --------------------------------------------------------------------------------
Diamondworks, Ltd./(1)(2)(4)/ 150,000 $ --
- --------------------------------------------------------------------------------
$ --
- --------------------------------------------------------------------------------
Metals - Gold -- 0.0%
- --------------------------------------------------------------------------------
Golden Gram Resources, Inc./(1)(4)/ 250,000 $ --
Iamgold International African Mining/(1)(2)(4)/ 12,500 --
Minorca Resources, Inc./(1)(4)/ 12,500 --
Queenstake Resources, Ltd./(1)(2)(4)/ 75,000 --
- --------------------------------------------------------------------------------
$ --
- --------------------------------------------------------------------------------
Metals - Industrial -- 0.0%
- --------------------------------------------------------------------------------
Formation Capital Corp./(1)(2)(4)/ 400,000 $ --
- --------------------------------------------------------------------------------
$ --
- --------------------------------------------------------------------------------
Total Warrants
(identified cost $--) $ --
- --------------------------------------------------------------------------------
Total Investments -- 101.3%
(identified cost $24,033,639) $8,653,457
- --------------------------------------------------------------------------------
Other Assets, Less Liabilities -- (1.3)% $ (108,076)
- --------------------------------------------------------------------------------
Net Assets -- 100% $8,545,381
- --------------------------------------------------------------------------------
ADR -- American Depositary Receipt
/(1)/Non-income producing security.
/(2)/Restricted security.
/(3)/Foreign security.
/(4)/Security valued at fair value using methods determined in good faith by or
at the direction of the Trustees.
See notes to financial statements
14
<PAGE>
Worldwide Developing Resources Portfolio as of August 31, 1998
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
As of August 31, 1998
(Expressed in United States Dollars)
Assets
- --------------------------------------------------------------------------------
Investments, at value (identified cost, $24,033,639) $ 8,653,457
Cash 17,512
Foreign currency, at value (identified cost, $60) 52
Interest and dividends receivable 1,688
- --------------------------------------------------------------------------------
Total assets $ 8,672,709
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Demand note payable $ 100,000
Payable to affiliate for Trustees' fees 47
Other accrued expenses 27,281
- --------------------------------------------------------------------------------
Total liabilities $ 127,328
- --------------------------------------------------------------------------------
Net Assets applicable to investors' interest in Portfolio $ 8,545,381
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Net proceeds from capital contributions and withdrawals $ 23,925,571
Net unrealized depreciation (computed on the basis of
identified cost) (15,380,190)
- --------------------------------------------------------------------------------
Total $ 8,545,381
- --------------------------------------------------------------------------------
Statement of Operations
For the Year Ended
August 31, 1998
(Expressed in United States Dollars)
Investment Income
- --------------------------------------------------------------------------------
Dividends (net of foreign taxes, $2,013) $ 25,983
Interest 19,039
- --------------------------------------------------------------------------------
Total investment income $ 45,022
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Investment adviser fee $ 158,955
Trustees fees and expenses 1,022
Interest 65,382
Custodian fee 55,748
Legal and accounting services 29,897
Miscellaneous 2,486
- --------------------------------------------------------------------------------
Total expenses $ 313,490
- --------------------------------------------------------------------------------
Net investment loss $ (268,468)
- --------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- --------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ (920,945)
Foreign currency transactions (1,797)
- --------------------------------------------------------------------------------
Net realized loss $ (922,742)
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $(14,899,190)
Foreign currency (8)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $(14,899,198)
- --------------------------------------------------------------------------------
Net realized and unrealized loss $(15,821,940)
- --------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(16,090,408)
- --------------------------------------------------------------------------------
See notes to financial statements
15
<PAGE>
Worldwide Developing Resources Portfolio as of August 31, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets (Expressed in United States Dollars)
Increase (Decrease) Year Ended For the Period Ended
in Net Assets August 31, 1998 August 31, 1997/(1)/
- --------------------------------------------------------------------------------
From operations --
Net investment loss $ (268,468) $ (88,261)
Net realized gain (loss) (922,742) 839,952
Net change in unrealized
appreciation (depreciation) (14,899,198) (480,992)
- --------------------------------------------------------------------------------
Net increase (decrease) in net
assets from operations $(16,090,408) $ 270,699
- --------------------------------------------------------------------------------
Capital transactions --
Contributions $ 5,654,112 $ 38,738,578
Withdrawals (12,527,185) (7,500,415)
- --------------------------------------------------------------------------------
Net increase (decrease) in net
assets from capital transactions $ (6,873,073) $ 31,238,163
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets $(22,963,481) $ 31,508,862
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of year $ 31,508,862 $ --
- --------------------------------------------------------------------------------
At end of year $ 8,545,381 $ 31,508,862
- --------------------------------------------------------------------------------
/(1)/ For the period from the start of business, April 10, 1997, to August 31,
1997.
See notes to financial statements
16
<PAGE>
Worldwide Developing Resources Portfolio as of August 31, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data (Expressed in United States Dollars)
Year Ended For the Period Ended
August 31, 1998 August 31, 1997/(1)/
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 1.48% 1.19%/(2)/
Expenses after custodian fee reduction 1.48% 1.15%/(2)/
Net investment loss (1.27)% (0.81)%/(2)/
Portfolio Turnover 69% 63%
- --------------------------------------------------------------------------------
Net assets, end of year (000's omitted) $8,545 $31,509
- --------------------------------------------------------------------------------
/(1)/ For the period from the start of business, April 10, 1997, to August 31,
1997.
/(2)/ Annualized.
See notes to financial statements
17
<PAGE>
Worldwide Developing Resources Portfolio as of August 31, 1998
NOTES TO FINANCIAL STATEMENTS
(Expressed in United States Dollars)
1 Significant Accounting Policies
---------------------------------------------------------------------------
Worldwide Developing Resources Portfolio (the Portfolio) is registered
under the Investment Company Act of 1940 as a diversified, open-end
investment company which was organized as a trust under the laws of the
State of New York. The Declaration of Trust permits the Trustees to issue
beneficial interests in the Portfolio. Investment operations began on April
10, 1997, with the acquisition of net assets of $26,141,520 in exchange for
an interest in the Portfolio by one of the Portfolio's investors. The
following is a summary of significant accounting policies of the Portfolio.
The policies are in conformity with accounting principles generally
accepted in the United States of America.
A Investment Valuation -- Securities listed on securities exchanges or in
the NASDAQ National Market System are valued at closing sale prices or, if
there has been no sale, at the mean between the closing bid and asked
prices. Unlisted securities are valued at the mean between the latest bid
and asked prices. Options and financial futures contracts are valued at the
last sale price, as quoted on the principal exchange or board of trade on
which such options or contracts are traded or, in the absence of a sale,
the mean between the last bid and asked prices. Short-term obligations,
maturing in 60 days or less, are valued at amortized cost, which
approximates the value. Securities for which market quotations are
unavailable are appraised at their fair value as determined in good faith
by or at the direction of the Trustees.
B Income Taxes -- The Portfolio is treated as a partnership for Federal tax
purposes. No provision is made by the Portfolio for federal or state taxes
on any taxable income of the Portfolio because each investor in the
Portfolio is ultimately responsible for the payment of any taxes on its
share of such income. Since some of the Portfolio's investors are regulated
investment companies that invest all or substantially all of their assets
in the Portfolio, the Portfolio normally must satisfy the applicable source
of income and diversification requirements (under the Internal Revenue
Code) in order for its investors to satisfy them. The Portfolio will
allocate, at least annually among its investors, each investor's
distributive share of the Portfolio's net investment income, net realized
capital gains, and any other items of income, gain, loss, deduction or
credit.
C Financial Futures Contracts -- Upon the entering of a financial futures
contract, the Portfolio is required to deposit an amount ("initial margin")
either of cash or securities equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by the Portfolio (margin maintenance) each day, dependent
on the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by the Portfolio.
When the Portfolio enters into a closing transaction, the Portfolio will
realize for book purposes a gain or loss equal to the difference between
the value of the financial futures contract to sell and the financial
futures contract to buy. The Portfolio's investment in financial futures
contracts is designed only to hedge against anticipated future changes in
interest or currency exchange rates. Should interest or currency exchange
rates move unexpectedly, the Portfolio may not achieve the anticipated
benefits of the financial futures contracts and may realize a loss.
D Foreign Currency Translation -- Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing
on the respective dates of such transactions. Recognized gains or losses on
investment transactions attributable to foreign currency rates are recorded
for financial statement purposes as net realized gains and losses on
investments. That portion of unrealized gains and losses on investments
that result from fluctuation in foreign currency exchange rates are not
separately disclosed.
E Forward Foreign Currency Exchange Contracts -- The Portfolio may enter
into forward foreign currency exchange contracts for the purchase or sale
of a specific foreign currency at a fixed price on a future date. Risk may
arise upon entering these contracts from the potential inability of
counterparties to meet the terms of their contracts and from movements in
the value of a foreign currency relative to the U.S. dollar. The Portfolio
will enter into forward contracts for hedging purposes as well as
non-hedging purposes. The forward foreign currency exchange contracts are
adjusted by the daily exchange rate of the underlying currency and any
gains or losses are recorded for financial statement purposes as unrealized
until such time as the contracts have been closed or offset.
18
<PAGE>
Worldwide Developing Resources Portfolio as of August 31, 1998
NOTES TO FINANCIAL STATEMENTS CONT'D
(Expressed in United States Dollars)
F Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Interest income is determined on the
basis of interest accrued. Dividend income is recorded on the ex-dividend
date. Realized gains and losses on the sale of investments are determined
on the identified cost basis.
G Use of Estimates -- The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during the
reporting period. Actual results could differ from those estimates.
H Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolio. Pursuant to the custodian agreement, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances the Portfolio maintains with IBT. All significant
credit balances used to reduce the Portfolio's custodian fees are reflected
as a reduction of expense in the statement of operations.
2 Investment Adviser Fee and Other Transactions with Affiliates
---------------------------------------------------------------------------
The investment adviser fee is earned by Boston Management and Research
(BMR), a wholly-owned subsidiary of Eaton Vance Management (EVM) as
compensation for management and investment advisory services rendered to
the Portfolio. Under the advisory agreement, the Adviser receives a monthly
fee of 0.0625% (0.75% annually) of the average daily net assets of the
Portfolio up to $500 million, and at reduced rates as daily net assets
exceed that level. For the year ended August 31, 1998, the adviser fee was
0.75% of average net assets.
Except as to Trustees of the Portfolio who are not members of the Adviser
or EVM's organization, officers and Trustees receive remuneration for their
services to the Portfolio out of such investment adviser fee. Trustees of
the Portfolio that are not affiliated with the Adviser may elect to defer
receipt of all or a percentage of their annual fees in accordance with the
terms of the Trustee Deferred Compensation Plan. For the year ended August
31, 1998 no significant amounts have been deferred.
Certain of the officers and Trustees of the Portfolio are officers and
directors/trustees of the above organizations.
3 Line of Credit
---------------------------------------------------------------------------
The Portfolio participates with other portfolios and funds managed by EVM
and its affiliates in a committed $100 million unsecured line of credit
agreement with a group of banks. The Fund may temporarily borrow from the
line of credit to satisfy redemption requests or settle investment
transactions. Interest is charged to each portfolio or fund based on its
borrowings at an amount above either the bank's adjusted certificate of
deposit rate, Eurodollar rate or Federal Funds rate. In addition, a fee
computed at an annual rate of 0.10% on the daily unused portion of the $100
million line of credit is allocated among the participating funds and
portfolios at the end of each quarter. At August 31, 1998, the Portfolio
had a balance outstanding pursuant to this line of credit of $100,000. The
average daily loan balance for the year ended August 31, 1998 was
$1,049,052 and the average interest rate was 6.2%. The maximum borrowing
outstanding at any time during the year ended August 31, 1998 was
$2,795,000.
4 Federal Income Tax Basis of Investments
---------------------------------------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned at August 31, 1998, as computed on a federal income tax
basis, are as follows:
Aggregate cost $ 24,033,639
---------------------------------------------------------------------------
Gross unrealized appreciation $ 653,298
Gross unrealized depreciation (16,033,480)
---------------------------------------------------------------------------
Net unrealized depreciation $(15,380,182)
---------------------------------------------------------------------------
5 Investment Transactions
---------------------------------------------------------------------------
Purchases and sales of investments, other than short term obligations,
aggregated $14,955,517 and $17,357,914, respectively.
19
<PAGE>
Worldwide Developing Resources Portfolio as of August 31, 1998
NOTES TO FINANCIAL STATEMENTS CONT'D
(Expressed in United States Dollars)
6 Restricted Securities
---------------------------------------------------------------------------
At August 31, 1998, the Portfolio owned the following securities
(constituting 26.6% of net assets) which were restricted as to public
resale and not registered under the Securities Act of 1933. The Portfolio
has various registration rights (exercisable under a variety of
circumstances) with respect to certain of these securities. The fair value
of these securities is determined based on valuations provided by brokers
when available, or if not available, they are valued at fair value using
methods determined in good faith by or at the direction of the Trustees.
Date of
Description Acquisition Shares/Face Cost Fair Value
- --------------------------------------------------------------------------------
Common Stocks
- --------------------------------------------------------------------------------
Argosy Mining Corp. 10/29/96 100,000 $ 181,950 $ 11,510
Bellator Exploration, Inc. 3/10/98 300,000 502,800 105,480
Billiton PLC 9/18/97 75,000 276,128 127,646
Black Hawk Mining, Inc. 3/26/97 30,000 183,030 2,493
Canarc Resource Corp. 11/5/96 150,000 247,395 11,505
Corriente Resources, Ltd. 10/19/95 75,000 158,436 26,370
Corriente Resources, Ltd. 10/19/95 84,500 199,685 29,710
Diamondworks, Ltd. 10/23/96 150,000 298,880 81,510
First Quantum Minerals 2/27/97 100,000 256,129 70,320
Formation Capital Corp. 6/9/98 400,000 326,440 191,800
Iamgold International
African Mining 10/8/97 25,000 83,862 39,638
Intrepid Minerals Corp. 11/22/96 300,000 246,660 28,770
Minorca Resources, Inc. 10/16/97 50,000 180,592 14,385
Pease Oil and Gas Co. 6/24/97 150,000 376,766 23,445
Queenstake Resources, Ltd. 7/9/97 150,000 259,564 19,185
Rio Narcea Gold Mines, Ltd. 3/27/97 60,000 167,784 91,440
Saint Laurent
Paperboard, Inc. 5/16/97 10,000 149,547 63,500
Seven Seas Petroleum Co. 3/24/97 10,000 150,000 103,000
Steppe Gold Resources, Ltd. 10/29/96 200,000 327,820 30,040
Sutton Resources, Ltd. 7/8/97 20,000 179,133 46,670
Tiomin Resources, Inc. 6/25/96 200,000 288,760 38,360
Tombstone Explorations
Co., Ltd. 11/6/96 225,000 274,770 25,898
TVX Gold, Inc. 6/28/93 45,000 177,679 50,625
- --------------------------------------------------------------------------------
$5,493,810 $1,233,300
- --------------------------------------------------------------------------------
Installment Receipts
- --------------------------------------------------------------------------------
Fracmaster, Ltd. 9/8/97 11,000 $ 77,552 $ 0
- --------------------------------------------------------------------------------
$ 77,552 $ 0
- --------------------------------------------------------------------------------
Date of
Description Acquisition Shares/Face Cost Fair Value
- --------------------------------------------------------------------------------
Private Placements and Special Warrants
- --------------------------------------------------------------------------------
Nevada Pacific Mining Co. 4/9/97 80,000 $ 341,352 $ 80,800
Quincunx Gold Exploration 8/16/96 300,000 327,749 285,751
Western Exploration and
Development, Ltd. 9/22/97 600,000 300,000 674,999
- --------------------------------------------------------------------------------
$ 969,101 $1,040,750
- --------------------------------------------------------------------------------
Warrants
- --------------------------------------------------------------------------------
Diamondworks, Ltd. 1/27/98 150,000 $ 0 $ 0
Formation Capital Corp. 6/9/98 400,000 0 0
Iamgold International
African Mining 11/4/97 12,500 0 0
Queenstake Resources, Ltd. 7/9/97 75,000 0 0
- --------------------------------------------------------------------------------
$ 0 $ 0
- --------------------------------------------------------------------------------
20
<PAGE>
Worldwide Developing Resources Portfolio as of August 31, 1998
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders
of Worldwide Developing Resources Portfolio:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Worldwide Developing Resources Portfolio (the
Portfolio) as of August 31, 1998, the related statement of operations for the
year then ended, the statements of changes in net assets and the supplementary
data for the year ended August 31, 1998 and the period from April 10, 1997,
(start of business) to August 31, 1997 (all expressed in United States Dollars).
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 auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audits 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 held as of August 31, 1998 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, such financial statements and supplementary data present fairly,
in all material respects, the financial position of the Portfolio at August 31,
1998, and the results of its operations, the changes in its net assets and its
supplementary data for the respective stated periods (all expressed in United
States Dollars), in conformity with accounting principles generally accepted in
the United States of America.
DELOITTE & TOUCHE
Grand Cayman, Cayman Islands
British West Indies
October 2, 1998
21
<PAGE>
Worldwide Developing Resources Portfolio as of August 31, 1998
INVESTMENT MANAGEMENT
Worldwide Developing Resources Portfolio
Officers
James B. Hawkes
President and Trustee
M. Dozier Gardner
Vice President
Michel Normandeau
Vice President
Raymond O'Neill
Vice President
William D. Burt
Vice President and
Co-Portfolio Manager
Barclay Tittmann
Vice President and
Co-Portfolio Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate School
of Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
22
