<PAGE>
To Shareholders
This six-month period ending July 31, 1995 was one of exceptional strength for
the stock market and a good period for the bond market as well. We are pleased
to report that during these six months, EV Classic Investors Fund had a total
return of 15.5 percent. That return includes an increase in net asset value to
$11.01 per share from $9.61 per share at the beginning of the year and assumes
the reinvestment of income dividends of $0.085 per share 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 21.0 percent and 9.3 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, like an investment in common stocks, will fluctuate with changes in market
conditions.
The strength of the stock market over the past six months reflects a number of
fundamentally positive developments. Prominent among these are strong corporate
earnings, declining interest rates and demand for shares from corporations
through mergers and acquisitions and share repurchase programs.
Corporations across a wide range of industries have reported excellent earnings
progress, even in a period of relatively weak economic growth and limited
pricing power. In many cases, this is a result of the investments in
productivity and cost reduction that have been made over the past several years.
U.S. companies that compete internationally also have benefited from a weakening
of the U.S. dollar.
--------------------------------------------------------------------------
EV CLASSIC INVESTORS FUND
The Portfolio's 10 largest stock holdings*
Astra AB........................... Drugs and medical
Chase Manhattan.................... Banking
Reuters Holdings PLC............... Business products and services
Rayonier........................... Paper, forest products
Exxon Corp......................... Oil & oil services
Frontier Corp. .................... Telephone utilities
Triton Energy Corp................. Oil & oil services
General Re Corp. .................. Insurance
Intel Corp......................... Semiconductors
Ameritech Corp..................... Telephone utilities
* Holdings by market value as of 7/31/95
--------------------------------------------------------------------------
Looking forward, the outlook for both stocks and bonds is fundamentally
attractive, supported by low inflation, moderate economic growth and strong
corporate profits. The stock market is perhaps more vulnerable than normal to a
correction following the strong recent performance that has taken valuations on
a dividend basis to high levels.
We believe the Fund's risk-averse style and diversification between stocks and
bonds may produce desirable long-term results with less variation in
year-to-year performance than experienced by most equity-only investments.
---------------------------
[Photo of M.Dozier Gardner]
---------------------------
Sincerely,
/s/ M.Dozier Gardner
M.Dozier Gardner
President
September 4, 1995
<PAGE>
Management Report
An interview with Thomas E. Faust Jr., Vice President and Manager of Investors
Portfolio.
Q. TOM, AS AN INVESTMENT MANAGER, HOW WOULD YOU CHARACTERIZE THIS STRONG STOCK
MARKET?
A. It's been a period of strong performance for a wide range of stocks. Large
capitalization stocks have led the market surge, but participation in the
rally has been widespread.
Q. WHAT FACTORS ARE RESPONSIBLE FOR THE STRENGTH OF THE MARKET?
A. There are many. Certainly the market's behavior was a positive response to
the improving interest rate environment and the prospects for continuing
economic growth with limited inflation. In addition, many major corporations
have seen sharply escalating profits, reflecting not only a favorable
economy but also the substantial cost reduction and productivity initiatives
they have undertaken in recent years.
Q. WHAT HAVE BEEN THE STRONGEST SECTORS OF THE MARKET?
A. Those that have been particularly strong over the past several months
include technology, financial services and basic industries.
------------------------------
[Photo of Thomas E. Faust Jr.]
------------------------------
Q. WHAT'S THE PORTFOLIO'S TOP HOLDING IN THE TECHNOLOGY SECTOR?
A. The largest holding is Intel, the dominant producer of microprocessors for
use in personal computers. With robust demand for personal computers and
excellent acceptance of the new Pentium microprocessor, Intel has been a
standout performer both as a company and as a stock. Over the six-month
period, Intel stock increased in price by 87 percent, making it one of the
best performing large capitalization stocks in the U.S. market.
Q. HOW ABOUT THE PORTFOLIO'S FINANCIAL SERVICES HOLDINGS?
A. In this sector, the Portfolio has been well represented by its holdings of
two New York money center banks, Chase Manhattan and Chemical Bank, which
increased in price by 62 and 33 percent, respectively. Both of these
companies are benefiting from an improved banking environment and internal
cost reduction programs. MGIC Investment, a mortgage insurer, was another
strong performer for the Portfolio in the area of financial services. Its
stock was up 40 percent for the period.
<PAGE>
Q. WHAT ARE THE PORTFOLIO'S LARGEST HOLDINGS IN THE BASIC INDUSTRIES SECTOR?
A. Among basic industries stocks, the Portfolio's largest positions include
newly-acquired Rayonier. This is a forest products company whose stock has
increased in price 12 percent since the Portfolio acquired it in May. The
Portfolio's holdings in J&L Specialty Steel, a major producer of stainless
and specialty steels, had a stock price increase of 13 percent over the
period.
Q. HAVE ANY OF THE PORTFOLIO'S HOLDINGS BEEN INVOLVED IN THE MANY BIG MERGERS
THAT HAVE BEEN IN THE NEWS RECENTLY?
A. Yes. Three of the Portfolio's stock holdings, National Gypsum, Scott Paper
and Capital Cities/ABC, were the subject of acquisition offers during the
period. Other holdings of the Portfolio have also been the subject of
speculation about possible acquisitions.
--------------------------------------------------------------------------------
Pie chart entitled:
"Investors Portfolio" and subtitled "Investment Allocation* as of 7/31/95"
This is a three-dimensional pie chart divided into seven pieces, representing
the investment allocation of the Portfolio. The seven pieces are labeled along
with the percentage of the total Portfolio that each represents. The pieces are
as follows:
-- Common Stock 62.5%
-- Corporate Bonds 16.3%
-- Government Agency 14.5%
-- Liquid Assets 3.8%
-- Preferred Stock 1.2%
-- Convertible Preferred Stock 1.3%
-- Convertible Bonds 0.4%
The chart contains a footnote relating to the asterisk in the subtitle after the
word "allocation." The footnote reads "By market value."
--------------------------------------------------------------------------------
Q. WHAT DO YOU SEE AS THE OUTLOOK FOR STOCKS AND BONDS?
A. Looking forward, the outlook for both stocks and bonds is fundamentally
attractive. This point of view is supported by low inflation, moderate
economic growth and strong corporate profits. But the stock market may be a
bit more vulnerable than usual to a correction after the recent runup.
Q. GIVEN CURRENT ECONOMIC AND MARKET CONDITIONS, HOW IS THE PORTFOLIO
POSITIONED IN ITS STOCK HOLDINGS?
A. Consistent with the conservative style of the Fund, the Portfolio currently
is underweighted, when compared with the S&P 500, in technology and other
sectors of the market that have been very strong performers and are most at
risk in a declining market.
While past trends cannot guarantee future performance, our balanced approach
to investing seeks to provide a way for the conservative investor to achieve
desirable long-term investment results with less year-to-year variation in
results than most equity-only investments.
<PAGE>
EV CLASSIC INVESTORS FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
------------------------------------------------------------------------------
July 31, 1995 (Unaudited)
------------------------------------------------------------------------------
ASSETS:
Investments in Investors Portfolio (Portfolio) at
value (Note 1A) $5,259,065
Receivable for Fund shares sold 25,014
Receivable from administrator (Note 5) 10,999
Deferred organization expenses (Note 1D) 27,879
----------
Total assets $5,322,957
LIABILITIES:
Payable for Fund shares redeemed $20,979
Payable to affiliates -
Trustee fees 63
Custodian fee 83
Accrued expenses 23,474
-------
Total liabilities 44,599
----------
NET ASSETS for 479,414 shares of beneficial interest
outstanding $5,278,358
==========
SOURCES OF NET ASSETS:
Paid-in capital $4,815,134
Accumulated net realized gain on investments (computed
on the basis of identified cost) 106,816
Distributions in excess of net investment income (8,775)
Unrealized appreciation of investments (computed on
the basis of identified cost) 365,183
----------
Total net assets $5,278,358
==========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($5,278,358 / 479,414 shares of beneficial interest
outstanding) $11.01
======
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF OPERATIONS
------------------------------------------------------------------------------
For the Six Months Ended July 31, 1995 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME (NOTE 1B):
Interest income allocated from Portfolio $ 57,140
Dividend income allocated from Portfolio (net of
withholding tax expense of $856) 37,782
Expenses allocated from Portfolio (14,978)
--------
Total investment income $ 79,944
Expenses -
Compensation of Trustees not members of the
Investment Adviser's organization $ 77
Custodian fees 1,500
Distribution and service fees (Note 4) 20,912
Transfer agent fees 1,749
Printing and postage 20,659
Legal and accounting services 9,404
Registration fees 9,928
Amortization of organization expenses (Note 1D) 3,982
Miscellaneous 1,425
--------
Total expenses $ 69,636
Deduct-Preliminary allocation of expenses by
administrator (Note 6) 10,999
--------
Net expenses 58,637
--------
Net investment income $ 21,307
REALIZED AND UNREALIZED GAIN FROM PORTFOLIO:
Net realized gain from Portfolio investment
transactions (identified cost basis) $123,086
Change in unrealized appreciation of investments 452,065
--------
Net realized and unrealized gain on investments 575,151
--------
Net increase in net assets resulting from
operations $596,458
========
The accompanying notes are an integral part of the financial statements.
<PAGE>
FINANCIAL STATEMENTS (Continued)
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 21,307 $ 30,501
Net realized gain (loss) from
Portfolio 123,086 (22,258)
Change in unrealized appreciation
(depreciation) from Portfolio 452,065 (110,008)
---------- ----------
Net increase (decrease) in net
assets from operations $ 596,458 $ (101,765)
---------- ----------
Distributions to shareholders -
From net investment income $ (21,307) $ (30,501)
In excess of net investment income (8,809) (13,660)
From net realized gains on
investment transactions -- (420)
Tax return of capital -- (2,374)
---------- ----------
Total distributions to
shareholders $ (30,116) $ (46,955)
---------- ----------
Net increase in net assets from Fund
share transactions (Note 2) $2,638,800 $1,557,973
---------- ----------
Net increase in net assets $3,205,142 $1,409,253
NET ASSETS:
At beginning of period 2,073,216 663,963
---------- ----------
At end of period $5,278,358 $2,073,216
========== ==========
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
-------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED JANUARY 31,
JULY 31, 1995 -----------------------
(UNAUDITED) 1995 1994<F3>
------------- ------- -------
<S> <C> <C> <C>
NET ASSET VALUE - Beginning of period $ 9.610 $10.460 $10.000
-------- ------- -------
Income (loss) from investment operations:
Net investment income $ 0.067 $ 0.215 $ 0.025
Net realized and unrealized gain (loss) on investments 1.418 (0.810) 0.435
-------- ------- -------
Total income (loss) from investment operations $ 1.485 $(0.595) $ 0.460
-------- ------- -------
Less distributions:
From net investment income $ (0.067) $(0.166) $ --
In excess of net investment income (0.018) (0.074) --
From realized gain on investments -- (0.002) --
From paid in capital -- (0.013) --
-------- ------- -------
Total distributions $ (0.085) $(0.255) $ --
-------- ------- -------
NET ASSET VALUE - End of period $ 11.010 $ 9.610 $10.460
======== ======= =======
TOTAL RETURN<F4> 15.54% (5.71%) 4.60%
RATIOS/SUPPLEMENTAL DATA (to average daily net assets):<F1>
Expenses<F2> 3.51%<F5> 3.23% 1.68%<F5>
Net investment income 1.01%<F5> 1.49% 1.81%<F5>
NET ASSETS, AT END OF PERIOD (000'S OMITTED) $ 5,278 $ 2,073 $ 664
<FN>
<F1> 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 (loss) per share and the
ratios would have been as follows:
Ratios (to average daily net assets)
Expenses<F2> 4.03%<F5> 5.55% 4.97% <F5>
Net investment income (loss) 0.49%<F5> (0.83%) (1.46%)<F5>
<F2> Includes the Fund's share of Investors Portfolio's allocated expenses.
<F3> For the period from the start of business, November 2, 1993, to January 31, 1994.
<F4> Total return is calulated 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.
<F5> Computed on an annualized basis.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
--------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
EV Classic Investors Fund (the Fund) is a diversified series of Eaton Vance
Special Investment Trust (the Trust). Prior to a reorganization of the Fund
effective July 31, 1995, the Fund was a series of Eaton Vance Investors 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 Investors 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 (2.1% at July 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, option 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 $14,748, 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.
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. 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.
G. INTERIM FINANCIAL INFORMATION -- The financial statements relating to July
31, 1995 and for the period then ended have not been audited by independent
certified public accountants, but in the opinion of the Fund's management
reflect all adjustments, consisting only of normal recurring adjustments,
necessary for the fair presentation of the financial statements.
<PAGE>
--------------------------------------------------------------------------------
(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:
FOR THE SIX MONTHS
ENDED JULY 31, 1995 YEAR ENDED JANUARY 31,
(UNAUDITED) 1995
---------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
-------- ---------- -------- ----------
Sales 416,759 $4,232,380 377,194 $3,749,789
Issued to shareholders
electing to receive
payment of distributions
in Fund shares 2,938 29,761 4,769 45,716
Redemptions (155,931) (1,623,341) (229,784) (2,237,532)
------- ---------- ------- ----------
Net increase 263,766 $2,638,800 152,179 $1,557,973
======= ========== ======= ==========
--------------------------------------------------------------------------------
(3) INVESTMENT TRANSACTIONS
Increases and decreases in the Fund's investment in the Portfolio aggregated
$4,268,914 and $1,654,275, 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) 6.25% 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. EVD earned $15,684 for the six
months ended July 31, 1995, representing 0.75% (annualized) of daily average net
assets. At July 31, 1995, the amount of Uncovered Distribution Charges of EVD
calculated under the Plan was approximately $590,000.
In addition, the Plan provides that the Fund may 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 of the Fund have initially implemented this provision of the Plan
by authorizing the Fund to make payments of service fees to the Principal
Underwriter, Authorized Firms and other persons in each fiscal year of the Fund
in amounts not exceeding 0.25% (per annum) of the Fund's average daily net
assets. Provision for service fee payments for the six months ended July 31,
1995 amounted to $5,228. Such payments were made for personal services and/or
maintenance of shareholder accounts. Service fees are separate and distinct from
the sales commissions and distribution fees payable by the Fund to EVD, and, as
such, are not subject to automatic discontinuance when there are no outstanding
uncovered distribution charges of EVD.
Certain officers and Trustees of the Fund are officers or directors of EVD.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
--------------------------------------------------------------------------------
(5) CONTINGENT DEFERRED SALES CHARGE (CDSC)
Shares purchased on or after January 30, 1995 and redeemed during the first year
after purchase (except shares acquired through the reinvestment of
distributions) generally will be subject to a contingent deferred sales charge
at a rate of one percent of redemption proceeds, exclusive of all reinvestments
and capital appreciation in the account. No contingent deferred sales charge is
imposed on exchanges for shares of other funds in the Eaton Vance Classic Group
of Funds or Eaton Vance Money Market which are distributed with a contingent
deferred sales charge. EVD received approximately $33 of CDSC paid by
shareholders for the six months ended July 31, 1995.
--------------------------------------------------------------------------------
(6) ADMINISTRATOR
The administrator was allocated $10,999 of the Funds expenses on a preliminary
basis for the six months ended July 31, 1995. Investment Adviser fee and other
transactions with affiliates is discussed in Note 3 of the Portfolio's Notes to
Financial Statements which are included in this report.
<PAGE>
INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
JULY 31, 1995
(UNAUDITED)
--------------------------------------------------------------------------
COMMON STOCKS - 61.1%
--------------------------------------------------------------------------
NAME OF COMPANY SHARES VALUE
--------------------------------------------------------------------------
AUTOMOTIVE - 1.4%
Ford Motor Co. 120,000 $ 3,465,000
------------
BANKS - 3.4%
Chase Manhattan Corp. 100,000 $ 5,362,500
Chemical Banking Corp. 61,200 3,159,450
------------
$ 8,521,950
------------
BROADCASTING & CABLE - 1.2%
Capital Cities/ABC Inc. 25,000 $ 2,918,750
------------
BUILDING MATERIALS - 0.4%
National Gypsum Co.* 20,000 $ 1,066,250
------------
BUSINESS PRODUCTS & SERVICES - 2.0%
Reuters Holdings, PLC ADR 100,000 $ 5,037,500
------------
CAPITAL GOODS - 1.0%
LaFarge Corp. 120,500 $ 2,394,937
------------
CHEMICALS - 3.6%
Loctite Corp. 28,300 $ 1,333,638
Monsanto Corp. 40,000 3,725,000
Nalco Chemical Co. 30,000 1,068,750
Praxair Inc. 100,000 2,800,000
------------
$ 8,927,388
------------
COMPUTER SOFTWARE - 1.1%
Novell Inc.* 150,000 $ 2,718,750
------------
DRUGS & MEDICAL - 3.1%
Astra AB A Free Shares 230,000 $ 7,800,473
------------
ELECTRIC UTILITIES - 2.4%
New England Electric System 90,000 $ 3,026,250
The Southern Co. 140,000 3,080,000
------------
$ 6,106,250
------------
FINANCIAL - 4.1%
Federal National Mortgage Association 40,000 $ 3,745,000
MBNA Corp. 100,000 3,587,500
MGIC Investment Corp. 60,000 3,045,000
------------
$ 10,377,500
------------
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 - 3.2%
Coca-Cola Co. 40,000 $ 2,635,000
Nestle SA* 1,620 1,652,946
PepsiCo Inc. 80,000 3,750,000
------------
$ 8,037,946
------------
HEALTH CARE - 1.3%
Sofamor Danek Group, Inc.* 160,000 $ 3,320,000
------------
INSURANCE - 1.6%
General Re Corp. 30,000 $ 3,978,750
------------
MACHINERY - 1.1%
Caterpillar Inc. 40,000 $ 2,815,000
------------
METALS & MINING - 1.5%
J & L Specialty Steel, Inc. 175,000 $ 3,871,875
------------
NATURAL GAS - 1.1%
National Fuel Gas Co. 100,000 $ 2,800,000
------------
OIL & OIL SERVICES - 6.9%
Anadarko Petroleum Corp. 90,000 $ 3,825,000
Exxon Corp. 58,640 4,251,400
Mobil Corp. 20,000 1,955,000
Phillips Petroleum Co. 90,000 3,183,750
Triton Energy Corp. 80,000 3,990,000
------------
$ 17,205,150
------------
PAPER & FOREST PRODUCTS - 4.0%
Plum Creek Timber Co., L.P. 90,000 $ 2,216,250
Rayonier Inc. 120,000 4,665,000
Scott Paper Co. 40,000 1,835,000
Williamette Industries, Inc. 20,700 1,265,288
------------
$ 9,981,538
------------
PRINTING & PUBLISHING - 2.2%
Harcourt General, Inc. 55,000 $ 2,475,000
McGraw-Hill, Inc. 40,000 3,075,000
------------
$ 5,550,000
------------
REAL ESTATE - 4.4%
Chateau Properties, Inc. 75,000 $ 1,603,125
Colonial Properties Trust 80,000 1,940,000
Equity Residential Properties Trust 101,400 2,991,300
The accompanying notes are an integral part
of the financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS (Continued)
--------------------------------------------------------------------------
COMMON STOCKS (Continued)
--------------------------------------------------------------------------
NAME OF COMPANY SHARES VALUE
--------------------------------------------------------------------------
REAL ESTATE (Continued)
ROC Communities, Inc. 116,250 2,441,250
Security Capital Industrial Trust 37,000 592,000
Shurgard Storage Centers, Inc. 61,000 1,441,125
------------
$ 11,008,800
------------
RETAILING - 1.4%
Home Depot, Inc. 80,000 $ 3,510,000
------------
SAVINGS & LOAN - 1.2%
Great Western Financial Corp. 140,000 $ 2,992,500
------------
SEMICONDUCTORS - 3.5%
Advanced Micro Devices, Inc. 70,000 $ 2,283,750
MEMC Electronic Materials, Inc. 89,000 2,681,125
Intel Corp. 60,000 3,900,000
------------
$ 8,864,875
------------
TELEPHONE UTILITIES - 3.2%
Ameritech Corp. 80,448 $ 3,891,672
Frontier Corp. 150,000 4,031,250
------------
$ 7,922,922
------------
TRANSPORTATION - 0.5%
Ryder Systems, Inc. 51,500 $ 1,281,062
------------
MISCELLANEOUS - 0.3%
Corning Inc. 25,400 $ 812,800
------------
TOTAL COMMON STOCKS
(IDENTIFIED COST, $106,322,670) $153,287,966
------------
--------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK - 1.3%
--------------------------------------------------------------------------
NAME OF COMPANY SHARES VALUE
--------------------------------------------------------------------------
Freeport McMoRan Copper & Gold, 5s 125,000 $ 3,203,125
------------
TOTAL CONVERTIBLE PREFERRED STOCK
(IDENTIFIED COST, $2,872,500) $ 3,203,125
------------
The accompanying notes are an integral part
of the financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS (Continued)
--------------------------------------------------------------------------
PREFERRED STOCK - 1.2%
--------------------------------------------------------------------------
NAME OF COMPANY SHARES VALUE
--------------------------------------------------------------------------
Bank of Boston Ser. C Adj. Rt. 37,600 $ 2,970,400
------------
TOTAL PREFERRED STOCK
(IDENTIFIED COST, $1,815,525) $ 2,970,400
------------
--------------------------------------------------------------------------
CONVERTIBLE BOND - 0.4%
--------------------------------------------------------------------------
FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
--------------------------------------------------------------------------
Browning Ferris Inds., cv., 6.25s, 8/15/12 $ 1,000 $ 1,020,000
------------
TOTAL CONVERTIBLE BOND
(IDENTIFIED COST, $897,000) $ 1,020,000
------------
--------------------------------------------------------------------------
U.S. TREASURY/AGENCY OBLIGATIONS - 14.2%
--------------------------------------------------------------------------
FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
--------------------------------------------------------------------------
Federal Home Loan Morgage Corp.,
8.10s, 12/15/04 $ 963 $ 976,128
Federal Home Loan Morgage Corp.,
9s, 11/15/19 767 791,032
Federal Home Loan Mortgage Corp.,
7.95s, 5/15/20 3,817 3,878,744
Federal Home Loan Mortgage Corp.,
10s, 5/15/20 2,325 2,577,100
Federal National Mortgage Association,
7.50s, 5/25/19 3,376 3,402,044
Federal National Mortgage Association,
8.50s, 7/25/19 3,883 3,951,273
Federal National Mortgage Association,
9s, 3/25/20 2,000 2,131,860
Student Loan Marketing Association,
7.875s, 9/12/95 1,000 1,002,210
U.S. Treasury Notes, 7.875s, 2/15/96 10,500 10,624,688
U.S. Treasury Notes, 7.625s, 4/30/96 3,000 3,041,475
U.S. Treasury Notes, 8.125s, 2/15/98 3,000 3,148,110
------------
TOTAL U.S. TREASURY/AGENCY OBLIGATIONS
(IDENTIFIED COST, $34,510,177) $ 35,524,664
------------
The accompanying notes are an integral part
of the financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS (Continued)
--------------------------------------------------------------------------
CORPORATE BONDS - 15.9%
--------------------------------------------------------------------------
FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
--------------------------------------------------------------------------
American General Finance Corp.,
8.125s, 8/15/09 $ 2,460 $ 2,624,992
Bell Telephone Co. PA, 8.35s, 12/15/30 3,000 3,438,240
Chesapeake Potomac Telephone MD,
8s, 10/15/29 1,500 1,574,715
Chesapeake Potomac Telephone MD,
8.30s, 8/1/31 1,975 2,228,254
Chesapeake Potomac Telephone VA,
8.375s, 10/1/29 1,500 1,693,560
Dayton Hudson Medium Term Note,
9.50s, 6/10/15 650 761,046
Dayton Hudson Medium Term Note,
9.35s, 6/16/20 2,590 3,029,653
Eaton Corp., 8s, 8/15/06 1,000 1,080,260
General Electric Capital Corp.,
8.625s, 6/15/08 330 371,350
General Motors Corp. 8.80s, 3/1/21 2,000 2,209,940
General Motors Corp. Medium Term Notes,
9.45s, 11/1/11 3,000 3,499,260
Inter American Development Bank,
8.875s, 6/1/09 3,000 3,568,650
Inter American Development Bank,
8.40s, 9/1/09 500 572,010
New England Telephone & Telegraph Co.,
7.875s, 11/15/29 360 386,759
Pitney Bowes Credit Corp., 9.25s, 6/15/08 1,650 1,955,465
Pitney Bowes Credit Corp., 8.55s, 9/15/09 500 563,080
Procter & Gamble Co., 8s, 10/26/29 4,740 5,133,183
Seagram (Joseph) & Sons, 9.65s, 8/15/18 1,400 1,661,128
Torchmark Corp., 8.25s, 8/15/09 1,000 1,068,200
TRW Inc., Medium Term Notes,
9.35s, 6/4/20 2,100 2,450,868
------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST, $39,012,053) $ 39,870,613
------------
The accompanying notes are an integral part
of the financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS (Continued)
--------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 3.7%
--------------------------------------------------------------------------
FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
--------------------------------------------------------------------------
CXC Inc., 5.90s, 8/1/95 $ 2,512 $ 2,512,000
Ford Motor Credit Corp., 5.73s, 8/3/95 2,656 2,655,155
Prudential Funding Corp., 5.72s, 8/7/95 4,073 4,069,117
------------
TOTAL SHORT-TERM OBLIGATIONS, AT
AMORTIZED COST $ 9,236,272
------------
TOTAL INVESTMENTS - 97.8%
(IDENTIFIED COST, $194,666,197) $245,113,040
OTHER ASSETS, LESS LIABILITIES - 2.2% 5,504,593
------------
NET ASSETS - 100% $250,617,633
============
*Non-income producing security.
The accompanying notes are an integral part
of the financial statements
<PAGE>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
------------------------------------------------------------------------------
July 31, 1995 (Unaudited)
------------------------------------------------------------------------------
ASSETS:
Investments, at value (Note 1A) (identified cost,
$194,666,197) $245,113,040
Cash 732
Receivable for investments sold 7,038,930
Dividends receivable 282,648
Interest receivable 1,590,724
Deferred organization expenses (Note 1D) 10,316
------------
Total assets $254,036,390
LIABILITIES:
Payable for investments purchased $ 3,399,943
Payable to affiliates --
Trustees' fees 5,000
Custodian fees 6,080
Accrued expenses 7,734
-----------
Total liabilities 3,418,757
------------
NET ASSETS applicable to investors' interest in Portfolio $250,617,633
============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $200,170,790
Unrealized appreciation of investments (computed
on the basis of identified cost) 50,446,843
------------
Total net assets $250,617,633
============
The accompanying notes are an integral part of the financial statements
<PAGE>
FINANCIAL STATEMENTS (Continued)
STATEMENT OF OPERATIONS
------------------------------------------------------------------------------
For the Six Months Ended July 31, 1995 (Unaudited)
------------------------------------------------------------------------------
INVESTMENT INCOME (NOTE 1B):
Interest income $ 3,224,281
Dividend income (net of withholding tax expense
of $45,080) 2,110,095
-----------
Total income $ 5,334,376
Expenses --
Investment adviser fee (Note 3) $ 732,274
Compensation of Trustees not members of the
investment adviser's organization (Note 3) 8,222
Custodian fee (Note 3) 64,230
Legal and accounting fees 28,098
Amortization of organization expenses (Note 1D) 1,583
Printing and postage 195
Miscellaneous 9,635
-----------
Total expenses 844,237
-----------
Net investment income $ 4,490,139
REALIZED AND UNREALIZED GAIN:
Net realized gain on investment transactions
(identified cost basis) $ 6,529,900
Change in unrealized appreciation on investments 26,776,299
-----------
Net realized and unrealized gain on
investments 33,306,199
-----------
Net increase in net assets resulting from
operations $37,796,338
===========
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
------------------------------------------------------------------------------
SIX MONTHS
ENDED
JULY 31, 1995 YEAR ENDED
(UNAUDITED) JANUARY 31, 1995
------------- ----------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 4,490,139 $ 9,351,946
Net realized gain on investments
transactions 6,529,900 1,467,119
Change in unrealized appreciation
(depreciation) of investments 26,776,299 (20,681,070)
------------ ------------
Net increase (decrease) in net assets
from operations $ 37,796,338 $ (9,862,005)
------------ ------------
Capital transactions --
Contributions $ 15,444,125 $ 29,380,822
Withdrawals (19,780,325) (32,695,351)
------------ ------------
Decrease in net assets resulting from
capital transactions $ (4,336,200) $ (3,314,529)
------------ ------------
Total increase (decrease) in net assets $ 33,460,138 $(13,176,534)
NET ASSETS:
At beginning of period 217,157,495 230,334,029
------------ ------------
At end of period $250,617,633 $217,157,495
============ ============
------------------------------------------------------------------------------
SUPPLEMENTARY DATA
------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED JANUARY 31,
JULY 31, 1995 ----------------------
(UNAUDITED) 1995 1994*
------------- -------- -------
RATIOS (As a percentage
of average net assets):
Expenses 0.73%+ 0.70% 0.69%+
Net investment income 3.86%+ 4.25% 3.69%+
PORTFOLIO TURNOVER 33% 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
JULY 31, 1995
(UNAUDITED)
-------------------------------------------------------------------------------
(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.
F. INTERIM FINANCIAL INFORMATION -- The interim financial statements relating to
July 31, 1995 and for the period then ended have not been audited by independent
certified public accountants, but in the opinion of the Fund's management,
reflect all adjustments, necessary for the fair presentation of the financial
statements.
-------------------------------------------------------------------------------
(2) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $52,026,619 and $56,437,373, respectively.
Purchases and sales of U.S. Government securities aggregated $23,027,692 and
$27,779,172, respectively.
<PAGE>
-------------------------------------------------------------------------------
(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 six months ended July 31, 1995, the
fee was equivalent to 0.625% (annualized) of the Portfolio's average net assets
for such period and amounted to $732,274. 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.
Trustees of the Portfolio that are not affiliated with the Investment
Adviser may elect to defer receipt of all or a percentage of their annual fees
in accordance with the terms of the Trustees Deferred Compensation Plan. For the
six months ended July 31, 1995, no significant amounts have been deferred.
-------------------------------------------------------------------------------
(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 July 31, 1995, as computed on a federal income tax basis, are as
follows:
Aggregate cost $194,661,083
============
Gross unrealized appreciation $ 52,115,265
Gross unrealized depreciation 1,648,422
------------
Net unrealized appreciation $ 50,446,843
============
<PAGE>
INVESTMENT MANAGEMENT
EV CLASSIC OFFICERS TRUSTEES
INVESTORS FUND
24 Federal Street JAMES B. HAWKES LANDON T. CLAY
Boston, MA 02110 President, Trustee Chairman, Eaton Vance Management
CLIFFORD H. KRAUSS DONALD R. DWIGHT
Vice President President, Dwight Partners, Inc.
Chairman, Newspapers of
JAMES L. O'CONNOR New England, Inc.
Treasurer
SAMUEL L. HAYES, III
THOMAS OTIS Jacob H. Schiff Professor of
Secretary Investment Banking, Harvard
University Graduate School of
Business Administration
NORTON H. REAMER
President, United Asset
Management Corporation
JOHN L. THORNDIKE
Director, Fiduciary Company
Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
----------------------------------------------------------
INVESTORS PORTFOLIO OFFICERS TRUSTEES
24 Federal Street
Boston, MA 02110 M. DOZIER GARDNER DONALD R. DWIGHT
President, Trustee President, Dwight Partners, Inc.
Chairman, Newspapers of
THOMAS E. FAUST, JR. New England, Inc.
Vice President and
Portfolio Manager SAMUEL L. HAYES, III
Jacob H. Schiff Professor of
JAMES B. HAWKES Investment Banking, Harvard
Vice President, Trustee University Graduate School of
Business Administration
JAMES L. O'CONNOR
Treasurer NORTON H. REAMER
President United Asset
THOMAS OTIS Management Corporation
Secretary
JOHN L. THORNDIKE
Director, Fiduciary Company
Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
<PAGE>
INVESTMENT ADVISER OF
INVESTORS PORTFOLIO
Boston Management and Research
24 Federal Street
Boston, MA 02110
ADMINISTRATOR OF
EV CLASSIC 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 CLASSIC INVESTORS FUND
24 FEDERAL STREET
BOSTON, MA 02110 C-SFRSRC
[LOGO]
----------------
[GRAPHIC OMITTED]
----------------
EV Classic
Investors
Fund
Semi-Annual Shareholder Report
July 31, 1995
