<PAGE>
INVESTMENT ADVISER OF
EMERGING MARKETS PORTFOLIO
Lloyd George Management
(Bermuda) Limited
3808 One Exchange Square
Central, Hong Kong
ADMINISTRATOR OF EV MARATHON
EMERGING MARKETS FUND
Eaton Vance Management
24 Federal Street
Boston, MA 02110
PRINCIPAL UNDERWRITER
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
CUSTODIAN
Investors Bank & Trust Company
89 South Street
P.O. Box 1537
Boston, MA 02205-1537
TRANSFER AGENT
First Data Investor Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
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
EMERGING MARKETS FUND
24 FEDERAL STREET
BOSTON, MA 02110
M-EMSRC - 8/96
[logo]
EV MARATHON
EMERGING
MARKETS FUND
SEMI-ANNUAL
SHAREHOLDER REPORT
JUNE 30, 1996
<PAGE>
TO SHAREHOLDERS
EV Marathon Emerging Markets Fund had a total return of 25.2% for the six months
ended June 30, 1996. That return was the result of a rise in net asset value per
share from $10.05 on December 31, 1995 to $12.58 on June 30, 1996, and does not
include the effect of the Fund's contingent deferred sales charge incurred by
certain redeeming shareholders. By comparison, the Morgan Stanley Capital
International Emerging Market Index, a widely recognized, unmanaged index of
emerging equity markets throughout the world, had a total return of 10.3% for
the same period.
EMERGING MARKETS REBOUND SHARPLY FROM A DISMAL 1995...
The first half of 1996 provided strong returns for emerging markets, as
investors regained confidence following a year of disappointing performance in
1995. Economic momentum is building in many markets. Following severe recessions
in Mexico and Argentina, Latin America is once again poised for a recovery.
Meanwhile, Eastern Europe is gaining more attention as the situation in Russia,
once regarded as deteriorating, is once again cause for optimism. Finally, Asian
emerging nations continue to generate economic growth far above that of
industrialized nations.
FOREIGN INVESTORS ARE INCREASINGLY DRAWN TO EMERGING MARKETS...
The growth in foreign investment in the emerging markets in the past decade has
been truly staggering. Foreign investors now own an estimated $220 billion in
emerging market stocks, according to a report by ING Baring, a major
international investment bank. That figure is especially noteworthy in light of
the fact that in 1986 - a mere decade ago - foreign investment in these markets
was only $2 billion. Last year alone, U.S. investors purchased a net $8.8
billion of equities in emerging countries, representing 17% of all U.S. foreign
purchases. These trends suggest that U.S. investors have a growing confidence in
the political and economic reforms now under way.
AND MORE RECOGNITION FROM INSTITUTIONAL INVESTORS...
To meet the needs of institutional investors, emerging market companies are
being included in world stock indices. Recently, Morgan Stanley and the World
Bank have established proprietary indices for Eastern Europe, Russia, and the
Middle East. This is a favorable trend because these new market benchmarks are
likely to draw a further inflow of money as institutional investors use them to
direct their initial emerging market commitments. While, naturally, the emerging
markets are likely to undergo wide fluctuations and feature political and
currency risk, these developments underscore the opportunity that lies in these
markets. EV Marathon Emerging Markets Fund will continue working to find those
opportunities.
Sincerely,
/s/ James B. Hawkes
James B. Hawkes,
President
August 21, 1996
- ------------------------------------------------------------------------------
Fund shares are not guaranteed by the FDIC and are not deposits or other
obligations of, or guaranteed by, any depository institution. Shares are subject
to investment risks, including possible loss of principal invested.
- ------------------------------------------------------------------------------
<PAGE>
MANAGEMENT DISCUSSION
An interview with the Hon. Robert Lloyd George, President of Lloyd George
Management, and Investment Adviser to the Emerging Markets Portfolio.
Q: ROBERT, THE EMERGING MARKETS HAVE FARED MUCH BETTER SO FAR IN 1996 THAN LAST
YEAR. WHAT'S BEHIND THE TURNAROUND?
A: The emerging markets have made a comeback as political trends have turned
more positive, while emerging economies continued to make strides. A more
stable political outlook has enabled investors to focus more closely on
fundamentals. When investors look at these companies without the
interference from politics, they clearly like what they see. That has been
reflected in the performances of these stock markets, some of which have
made remarkable gains in the first half. For example, Taiwan's Weighted
Stock Index rose 23% in the first six months of the year, while the
Philippine Stock Exchange Index was up more than 22%. Meanwhile, as
President Yeltsin's election prospects improved, the Russian Ordinary Index
more than doubled since March alone. Thus, there is ample evidence that,
given a stable political climate, many emerging markets are poised to do
well.
Q: HOW HAVE YOU STRUCTURED THE PORTFOLIO IN RECENT MONTHS?
A: There have been several shifts within the Portfolio. East Asia - often
referred to as the China region - remains the Fund's largest regional
weighting, at 62.4% of the Portfolio. However, the Philippines is now the
largest country investment, followed by Malaysia, Indonesia, Hong Kong, and
Thailand. Latin America is the next largest region, at 21.5%, with Brazil
and Chile the major Latin investments. South Asia is next, at 5.9%, followed
by Eastern Europe at 5.5%. In addition to those regional shifts, the
Portfolio's largest holdings feature some new companies, as we found
compelling opportunities in new markets.
Q: LET'S TURN FIRST TO EAST ASIA. WHAT'S GOING ON THERE?
A: The entire China region is naturally greatly affected by mainland China,
which has recently been a source of good news. China has made truly
remarkable progress in bringing down inflation. From a 15% annual rate only
two years ago, China's annual inflation rate is now closer to 9%. While that
has come at the price of somewhat slower economic growth, China's economy
still continues to advance well beyond that of the industrialized nations.
The Philippines have been the star performer of the region. The country
registered 4.8% GDP growth in 1995 and is expected to grow about 6% this
year and next. Meanwhile, Hong Kong remains a prime beneficiary of China's
expansion. The Hong Kong government recently indicated that the colony's GDP
is expected to grow 5% this year in anticipation of China's takeover in
1997. That growth rate reflects strong consumer sentiment, as measured by
retail sales as well as a continued expansion of exports.
- -----------------------------------------------------------------------------
THE PORTFOLIO'S COMMON STOCK
INVESTMENTS BY REGION
OTHER ............................................................... 4.7%
EASTERN EUROPE (INCLUDING RUSSIA) .................................. 5.5%
SOUTH ASIA (GREATER INDIA) .......................................... 5.9%
LATIN AMERICA ....................................................... 21.5%
EAST ASIA (GREATER CHINA) ........................................... 62.4%
Based on market value as of June 30, 1996.
- -----------------------------------------------------------------------------
Q: COULD YOU NAME SOME OF YOUR FAVORITES IN THE EAST ASIA REGION?
A: Yes. Among the Fund's largest East Asian investments is Benpres Holdings, a
major Philippine conglomerate. Although the company has business interests
across a broad range of industries, including telecommunications, toll
roads, power projects, and real estate, broadcasting remains the core of the
company's business. With economic growth providing a better quality of life,
there is a growing demand from Philippine consumers for broadcast services
and programming. In addition, advertisers are seeking more effective outlets
to reach potential customers. Benpres is thus uniquely positioned to meet
the needs of consumers and advertisers alike.
Mulia Industrindo is an Indonesian company that makes glass and ceramics.
Glass accounts for 60% of its revenues and ceramics around 40%. The company
benefits from being one of the lowest cost producers of glass in the world.
Mulia makes products for the consumer market, as well as the industrial
market. For example, the company makes safety glass used in the manufacture
of vehicles, glass containers and bottles used in producing consumer
beverages, and floor and wall tiles used in the construction industry.
- -----------------------------------------------------------------------------
NOTES FROM THE EMERGING MARKETS:
o MALAYSIA - Kuala Lumpur now boasts the world's largest skyscraper, the
452-foot, twin Petronas Towers. Separately, in response to a surge in business
travel, the city expects to complete construction of 25 luxury hotels by 1998.
o PERU - Peru's first attempt to promote popular capitalism was a smashing
success. In the privatization of Telefonica del Peru, the formerly state-owned
telecom company, nearly 160,000 citizens acquired shares, more than twice what
the government had hoped.
o UKRAINE - Ukraine's nascent stock market prepared to begin electronic
over-the-counter trading in securities in July. A $310 million loan from the
World Bank will help Ukraine establish an OTC market based on the U.S. NASDAQ
market, as well as help refine the market's regulatory procedures.
- -----------------------------------------------------------------------------
Q: LATIN AMERICA IS THE PORTFOLIO'S SECOND LARGEST REGIONAL WEIGHTING. HOW
WOULD YOU EVALUATE THE LATIN ECONOMIES?
A: Latin America is in the process of recovering from an economic downturn.
Brazil, for example, which was in the grip of hyper-inflation just a few
years ago, has made dramatic progress in managing inflation and stabilizing
its economy. While the country paid a stiff price due to high interest
rates, more recently Brazil has shown signs of recovery, boosted in part by
the government's efforts to privatize industry. The same is true of Mexico,
which saw its economy contract by 6.5% in 1995, but is expected to expand by
2.5% this year.
Chile's economy is also improving nicely. The government's Imacec index
registered economic growth of 10.2% in April over the same period a year
ago. In addition, Chile recently joined Mercosur - a regional trade alliance
consisting of Argentina, Brazil, Paraguay, and Uruguay. Membership will give
Chilean exporters access to Mercosur's 200 million consumers, while giving
the other nations access to the lucrative Pacific Rim trade.
Q: COULD YOU GIVE AN EXAMPLE OF THE PORTFOLIO'S LATIN REGION INVESTMENTS?
A: Yes. Concha y Toro is a leading Chilean producer and exporter of wine. The
company has recently vertically integrated its operations, which should
result in a significant increase in output in the next year. Following a
recent land acquisition in Argentina, Concha y Toro anticipates continued
momentum in earnings growth.
Q: EARLIER, YOU MENTIONED THE RUSSIAN ELECTION. WHAT IS YOUR OPINION OF RUSSIA
AS AN INVESTMENT?
A: Clearly, Russia represents a potentially vast market. The country's limited
free-market experiments to date have uncovered a genuine thirst for economic
freedom by the Russian people, especially among the young. Russia has
hurdles to overcome, including the residue of 70 years of Soviet
bureaucracy. But the country is making headway, and as the election results
show, is not inclined to revert to the repressive old regime. We believe the
future will bring interesting opportunities in Russia.
- ------------------------------------------------------------------------------
NEWLY DEMOCRATIC RUSSIA
TURNS TO A FREE
MARKET ECONOMY
EMERGING MARKET PROFILE*:
TOTAL GDP .......................................................$627 B
GDP GROWTH ......................................................3.0%
UNEMPLOYMENT RATE ...............................................8.2%
EXCHANGE RATE ...................................................4.7Rb/$
INDUSTRIAL GROWTH ...............................................3.0%
LARGEST TRADE PARTNERS:
GERMANY .........................................................8.9%
UKRAINE .........................................................7.1
U.S. ............................................................3.3
JAPAN ...........................................................2.9
POLAND ..........................................................2.6
* Estimates for 1996;
Source: Financial Times
- ------------------------------------------------------------------------------
Q: DO YOU HAVE ANY INVESTMENTS IN RUSSIA AT PRESENT?
A: Yes, we do. In fact, the Portfolio's largest single investment, Mosenergo,
is a Russian company. One of the country's largest regional power utilities,
Mosenergo's service area encompasses metropolitan Moscow and its 17 million
inhabitants. The electric power industry in Russia has historically been
plagued by waste and inefficiency. Mosenergo's management has committed to
eliminate inefficient plants and revamp service fees to conform to market
conditions. As the economy builds, Mosenergo is very well positioned to take
advantage of a rising demand for energy.
Q: ROBERT, WHAT IS YOUR OUTLOOK FOR THE EMERGING MARKETS?
A: As I indicated earlier, having survived the volatility of 1995, emerging
market investors have focused once again on the excellent fundamentals of
the emerging markets. Not surprisingly, the outcome has been vastly
different as the political climate has improved. But another key positive
has been the diligence with which these countries are fighting inflation.
The battle against inflation is a continual struggle for emerging economies.
It will likely continue for the foreseeable future in most of these
countries. Yet, there are signs that many countries are making admirable
progress in that effort. Increasingly, as the experience of China and
Indonesia will attest, these nations do not hesitate to restrict credit when
necessary. While not always politically popular, it is nonetheless fiscally
responsible. Having faced up to inflation, many of these countries can now
look forward to more manageable growth. Naturally, past trends do not
necessarily guarantee future growth and politics can be expected to reappear
now and then. But many companies in the emerging markets will thrive from
changing economic tides, and I believe that the Portfolio will share in that
long-term growth.
<PAGE>
EV MARATHON EMERGING MARKETS FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------
June 30, 1996 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investment in Emerging Markets Portfolio,
at value (Note 1A) $4,268,531
(identified cost, $3,574,547)
Receivable from Fund shares sold 21,116
Deferred organization expenses (Note 1E) 50,249
----------
Total assets $4,339,896
LIABILITIES:
Payable to affiliate -
Trustees' fees $ 23
Accrued expenses and other liabilities 7,818
------
Total liabilities 7,841
----------
NET ASSETS for 344,282 shares of beneficial
interest outstanding $4,332,055
==========
SOURCES OF NET ASSETS:
Paid-in capital $3,600,849
Accumulated net realized gain on investment
transactions (computed on the basis of
identified cost) 95,361
Unrealized appreciation of investments from
Portfolio (computed on the basis of
identified cost) 693,984
Accumulated net investment loss (58,139)
----------
Total $4,332,055
==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE (NOTE 6) PER SHARE
($4,332,055 / 344,282 shares of beneficial
interest outstanding) $12.58
==========
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS (CONTINUED)
STATEMENT OF OPERATIONS
- ----------------------------------------------------------------------------
Six Months Ended June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------
INVESTMENT INCOME (NOTE 1B):
Investment income allocated from Portfolio
(net of foreign taxes, $2,154) $ 24,099
Expenses allocated from Portfolio (34,540)
--------
Net investment loss from Portfolio $(10,441)
Expenses-
Management fee (Note 3) $ 4,071
Compensation of Trustees not members
of the Administrator's organization 23
Custodian fee (Note 1C) 1,748
Distribution fees (Note 5) 12,213
Service fees (Note 5) 960
Transfer and dividend disbursing agent fees 1,504
Printing and postage 2,188
Legal and accounting services 4,000
Registration fees 11,895
Amortization of organization expenses (Note 1E) 6,295
Miscellaneous 3,641
--------
Total expenses $ 48,538
Deduct preliminary waiver of management fee
(Note 3) 840
--------
Net expenses 47,698
--------
Net investment loss $(58,139)
REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIO:
Net realized gain (loss) -
Investments $164,772
Foreign currency (6,599)
--------
Net realized gain $158,173
Change in unrealized appreciation of investments 574,256
--------
Net realized and unrealized gain 732,429
--------
Net increase in net assets from operations $674,290
========
See notes to financial statements
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1996 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
--------------------- ----------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations-
Net investment loss $ (58,139) $ (48,494)
Net investment gain (loss) from Portfolio 158,173 (64,561)
Change in unrealized appreciation from Portfolio 574,256 120,580
----------- ------------
Net increase in net assets from operations $ 674,290 $ 7,525
----------- ------------
Transactions in shares of beneficial interest (Note 4) -
Proceeds from sales of shares $ 2,648,213 $ 2,355,841
Cost of shares redeemed (791,237) (791,708)
----------- ------------
Increase in net assets from capital stock transactions $ 1,856,976 $ 1,564,133
----------- ------------
Net increase in net assets $ 2,531,266 $ 1,571,658
NET ASSETS:
At beginning of period 1,800,789 229,131
----------- ------------
At end of period (including accumulated net investment loss
of $58,139 and $0, respectively) $ 4,332,055 $ 1,800,789
=========== ============
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1996 ---------------------------------
(UNAUDITED) 1995 1994*
--------------------- --------- ----------
<S> <C> <C> <C>
NET ASSET VALUE, beginning of period $ 10.050 $ 9.960 $ 10.000
--------- -------- ---------
INCOME (LOSS) FROM OPERATIONS:
Net investment loss $ (0.169) $ (0.268) $ (0.003)
Net realized and unrealized gain (loss) on investments 2.699 0.358 (0.037)
--------- -------- ---------
Total income (loss) from operations $ 2.530 $ 0.090 $ (0.040)
--------- -------- ---------
NET ASSET VALUE, end of period $ 12.580 $ 10.050 $ 9.960
========= ======== =========
TOTAL RETURN (2) 25.17% 0.90% (0.40%)
RATIOS/SUPPLEMENTAL DATA**:
Net assets, end of period (000 omitted) $ 4,332 $ 1,801 $ 229
Ratio of net expenses to average daily net assets (1) (3) 5.26%+ 6.19% 0.75%+
Ratio of net expenses to average daily net assets after
custodian fee reduction (1) (3) 5.03%+ -- --
Ratio of net investment gain (loss) to average net assets 3.56%+ (4.64%) (0.75%)+
** The expenses related to the operation of the Fund reflect an assumption of expenses by the Administrator. Had such action not
been taken, net investment loss per share and the ratios would have been as follows:
Net investment loss per share: $ (0.117) $ (0.566) $ (0.037)
RATIOS (As a percentage of average daily net assets):
Expenses (1) (3) 6.35%+ 11.35% 9.14%+
Expenses after custodian fee reduction (1) (3) 6.12%+ - -
Net investment income gain (loss) 2.47%+ (9.80%) (9.14%)+
<FN>
* For the period from the start of business, November 30, 1994, to December 31, 1994.
+ Annualized.
(1) Includes the Fund's share of Emerging Markets Portfolio's allocated expenses.
(2) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on
the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset
value on the record date. Total return is not computed on an annualized basis.
(3) The annualized expense ratios for the six months ended June 30, 1996 have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund to increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the period ended June 30, 1996 has not been adjusted to reflect
this change.
</TABLE>
See notes to financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
EV Marathon Emerging Markets Fund (the Fund) is a mutual fund seeking long-term
capital appreciation through investment in a portfolio of equity securities of
companies in countries with emerging markets. The Fund is a diversified series
of Eaton Vance Special Investment 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 Emerging Markets 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 (41.1% at June 30, 1996). 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 - Valuation 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. EXPENSE REDUCTION - The Fund has entered into an arrangement with its
custodian whereby interest earned on uninvested cash balances are used to offset
custody fees. All significant reductions are reported as a reduction of expenses
in the Statement of Operations.
D. 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 net investment income, and any
net realized capital gains. Accordingly, no provision for Federal income or
excise tax is necessary.
E. DEFERRED ORGANIZATION EXPENSES - Costs incurred by the Fund in connection
with its organization, including registration costs, are being amortized on the
straight-line basis over five years.
F. USE OF ESTIMATES - The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenue and expense during the reporting period. Actual results could differ
from those estimates.
G. INTERIM FINANCIAL INFORMATION - The interim financial statements relating to
June 30, 1996 and for the six-month 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.
- -------------------------------------------------------------------------------
(2) DISTRIBUTIONS TO SHAREHOLDERS
It is the present policy of the Fund to make at least one distribution annually
(normally in December) of all or substantially all of the investment allocated
to the Fund by the Portfolio, less the Fund's direct and allocated expenses and
at least one distribution annually of all or substantially all of the net
realized capital gains (reduced by any available capital loss carryforwards from
prior years) allocated by the Portfolio to the Fund, if any.
Shareholders may reinvest all distributions in shares of the Fund without a
sales charge at the per share net asset value as of the close of business on the
record date. The Fund distinguishes between distributions on a tax basis and a
financial reporting basis. Generally accepted accounting principles require that
only distributions in excess of tax basis earnings and profits be reported in
the financial statements as a return of capital. Differences in the recognition
or classification of income between the financial statements and tax earnings
and profits which result in temporary over distributions for financial statement
purposes are classified as distributions in excess of net investment income or
accumulated net realized gains. Permanent differences between book and tax
accounting are reclassified to paid-in capital.
- -------------------------------------------------------------------------------
(3) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The management fee is earned by Eaton Vance Management (EVM) as compensation for
management and administration of the business affairs of the Fund. The fee is
based on a percentage of average daily net assets. For the six months ended June
30, 1996, the fee was equivalent to 0.25% of the Fund's average net assets for
such period and amounted to $4,071. To enhance the net income of the Fund, EVM
made a preliminary waiver of its management fee in the amount of $840. Except as
to Trustees of the Fund who are not members of EVM's organization, officers and
Trustees receive remuneration for their services to the Fund out of such
investment adviser fee. Certain of the officers and Trustees of the Fund and
Portfolio are officers and directors/trustees of the above organizations. In
addition, investment adviser, and administrative fees are paid by the Portfolio
to EVM and its affiliates. See Note 2 of the Portfolio's Notes to Financial
Statements, which are included elsewhere in this report.
- -------------------------------------------------------------------------------
(4) 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:
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995
------------------- -------------------
Sales 232,618 235,674
Redemptions (67,471) (79,545)
----------------- ------------------
Net increase 165,147 156,129
================= ==================
- -------------------------------------------------------------------------------
(5) 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
1/365 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 the 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 the aggregate amount of contingent deferred sales charges (see Note
6) and daily 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 accrued $12,213 as payable
to EVD for the six months ended June 30, 1996, representing 0.75% of average
daily net assets. At June 30, 1996, the amount of Uncovered Distribution Charges
of EVD calculated under the Plan was approximately $117,100.
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 initially 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% per annum of the Fund's average
daily net assets based on the value of Fund shares sold by such persons and
remaining outstanding for at least one year. The Fund paid or accrued service
fees to EVD for the period ended June 30, 1996 in the amount of $960. Service
fee payments will be made for personal services and/or the maintenance of
shareholder accounts. Service fees are separate and distinct from the sales
commissions and distribution fees payable by the Fund to EVD, and, as such, are
not subject to automatic discontinuance where there are no outstanding Uncovered
Distribution Charges of EVD. Certain officers and Trustees of the Fund are
officers or directors of EVD.
- -------------------------------------------------------------------------------
(6) 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 year thereafter. 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
$12,925 of CDSC paid by shareholders for the six months ended June 30, 1996.
- -------------------------------------------------------------------------------
(7) INVESTMENT TRANSACTIONS
Increases and decreases in the Fund's investment in the Portfolio aggregated
$2,666,293 and $895,040, respectively.
<PAGE>
EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS - JUNE 30, 1996 (UNAUDITED)
- -------------------------------------------------------------------------------
STOCKS - 88.5%
- -------------------------------------------------------------------------------
SHARES VALUE
ARGENTINA - 2.1%
Disco S A ADR 10,000 $ 221,250
-----------
BRAZIL - 7.9%
Banco Bradesco S.A. Pfd. 36,258,993 $ 296,582
Brasmotor S.A. Pfd. 910,000 287,185
Compania Brasileira de Distrib. 14,000 231,000
-----------
$ 814,767
-----------
CHILE - 5.1%
Compania de Telecomunicaciones 2,400 $ 234,000
Vina Concha Y Toro ADR 16,000 296,000
-----------
$ 530,000
-----------
COLOMBIA - 1.1%
CIA NAC Chocolates 13,571 $ 112,660
-----------
CROATIA - 0.8%
Pliva D.D. GDR Reg S 2,000 $ 78,500
-----------
GREAT BRITAIN - 1.5%
Bakyrchik Gold 25,000 $ 155,270
-----------
HONG KONG - 8.2%
Cheung Kong 18,000 $ 129,638
Citic Pacific Ltd. 28,000 113,219
First Pacific Co. 90,000 138,359
Giordano Holdings Ltd. 82,000 79,450
Li & Fung Ltd. 230,000 216,904
Varitronix International Ltd. 85,000 177,341
-----------
$ 854,911
-----------
HUNGARY - 0.8%
Zagrebacka Banka GDR 10,000 $ 85,425
-----------
INDIA - 5.1%
Hindalco Industries Ltd. 4,000 $ 152,000
Larsen & Toubro Ltd GDR (New) 11,000 209,000
Tata Engineering & Locomotion GDR 9,720 171,315
-----------
$ 532,315
-----------
INDONESIA - 8.8%
Bank Bira 132,000 $ 119,098
PT Indostat (Foreign) 90,000 302,578
PT Lippo Bank 93,000 157,830
Lippo Bank (Rights) 46,500 36,960
PT Mulia Industrindo 182,200 270,071
PT Mulia Industrindo (Foreign) (Rights) 46,880 31,220
-----------
$ 917,757
-----------
REPUBLIC OF KOREA - 3.4%
Korea Electric Power Corp. 6,500 $ 154,375
Korea Mobile Telecom Corp. 60 73,057
Korea Mobile Telecom 144A ADR 12,500 125,625
-----------
$ 353,057
-----------
MALAYSIA - 9.4%
Eastern & Oriental BHD 70,000 $ 165,564
KFC Holdings (Malaysia) BHD 24,000 129,886
Konsortium Perkapalan BHD 39,000 234,516
Rashid Hussein Berhad 70,000 256,765
Sistem Televisyen Malaysia BHD 30,000 61,335
Star Publications 40,000 127,407
-----------
$ 975,473
-----------
MEXICO - 2.2%
Pan American Beverages, Inc. 3,400 $ 152,150
Sigma Alimentos S.A. 8,200 72,978
-----------
$ 225,128
-----------
PERU - 0.7%
Cerveceria Backus & Johnston 55,385 $ 70,052
-----------
PHILIPPINES - 13.4%
Hi Cement Corporation 300,000 $ 113,359
Belle Corporation 1,200,000 288,550
Benpres Holdings 30,000 240,000
Far East Bank & Trust Co. Ltd. 5,000 175,573
Far East Bank & Trust Co. (Rights) 1,250 16,794
Filinvest Land Inc. 480,000 196,946
Marsman & Co. Inc. "B" 375,000 178,912
Alsons Consolidated Resources 2,200,000 183,053
-----------
$ 1,393,187
-----------
RUSSIA - 4.1%
Mosenergo-RDC 144ADR 14,500 $ 420,500
-----------
SOUTH AFRICA - 1.9%
Richemont Securities 13,000 $ 200,306
-----------
SRI LANKA - 0.1%
John Keells Holdings 1,429 $ 7,502
-----------
TAIWAN - 4.0%
Yuanta Securities Co. Ltd. 74,000 $ 118,314
Yung Shin Pharmaceutical Ind. 60,000 150,436
Taiwan Acer Peripheral Inc. 69,000 150,436
-----------
$ 419,186
-----------
THAILAND - 7.9%
Industrial Finance Corp. 39,000 $ 175,075
Krung Thai Bank Ltd. (Foreign) 32,600 152,762
Mah Boon Krong Properties Dev. 149,800 175,489
MBK Properties and Development 50,200 58,809
Pizza Co. (Thailand) Ltd. (Foreign) 45,000 256,055
-----------
$ 818,190
-----------
TOTAL COMMON STOCKS (IDENTIFIED COST, $7,798,017) $ 9,185,436
OTHER ASSETS, LESS LIABILITIES - 11.5% 1,197,360
-----------
NET ASSETS - 100% $10,382,795
===========
See notes to financial statements
<PAGE>
EMERGING MARKETS PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------
June 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS:
Investments, at value (Note 1A)
(identified cost, $7,798,017) $ 9,185,436
Cash 1,872,373
Cash denominated in foreign currencies
(cost $422,099) 420,926
Receivable for investments sold 269,358
Dividends receivable 11,038
Receivable from Administrator 27,000
Deferred organization expenses (Note 1D) 13,025
-------------
Total assets $ 11,799,156
LIABILITIES:
Payable for investments purchased $ 1,392,870
Payable for forward foreign currency
exchange contracts 159
Payable to affiliates -
Trustee's fees 7,500
Accrued expenses and other liabilities 15,832
-----------
Total liabilities 1,416,361
-------------
NET ASSETS applicable to investors'
interest in Portfolio $ 10,382,795
=============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions
and withdrawals $ 8,996,515
Net unrealized appreciation of investments
(computed on the basis of identified cost) 1,387,419
Net unrealized depreciation of foreign currencies (1,139)
-------------
Total $ 10,382,795
=============
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS (CONTINUED)
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------
Six Months Ended June 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividend income (net of foreign
withholding tax, $4,103) $ 46,426
Expenses-
Investment adviser fee (Note 2) $ 23,321
Administration fee (Note 2) 7,069
Compensation of Trustees not members
of the Investment Adviser's
organization (Note 2) 16,054
Custodian fees (Note 1C) 41,696
Legal and accounting services 15,091
Registration costs 631
Amortization of organization expenses
(Note 1D) 2,873
Miscellaneous 1,520
-----------
Total expenses $ 108,183
Deduct -
Preliminary allocation of
expenses to the Administrator 27,000
Preliminary waiver of adviser fee 5,571
Preliminary waiver of management
fee 1,140
Reduction of custodian fee
(Note 1C) 7,194
-----------
Total deducted 40,905
-----------
Net expenses 67,278
-------------
Net investment loss $ (20,852)
-------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss -
Investments $ 286,088
Foreign currency (12,695)
-----------
Net realized gain $ 273,393
Change in unrealized appreciation
(depreciation) -
Investments $ 1,112,249
Foreign currency (727)
-----------
Net unrealized appreciation 1,111,522
-------------
Net realized and unrealized
gain on investments $ 1,384,915
-------------
Net increase in net assets
from operations $ 1,364,063
=============
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 1995 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
--------------------- ----------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations-
Net investment loss $ (20,852) $ (23,217)
Net investment gain (loss) on investments and
foreign currency transactions 273,393 (147,448)
Change in unrealized appreciation 1,111,522 281,463
------------ -------------
Net increase in net assets from operations $ 1,364,063 $ 110,798
------------ -------------
Capital transactions:
Contributions $ 6,522,489 $ 3,550,731
Withdrawals (1,091,026) (1,269,530)
------------ -------------
Increase in net assets from capital transactions $ 5,431,463 $ 2,281,201
------------ -------------
Net increase in net assets $ 6,795,526 $ 2,391,999
NET ASSETS:
At beginning of period 3,587,269 1,195,270
------------ -------------
At end of period $ 10,382,795 $ 3,587,269
============ =============
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
SUPPLEMENTARY DATA
- -----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1996 ---------------------------------
(UNAUDITED) 1995 1994*
--------------------- ---------- ----------
<S> <C> <C> <C>
RATIOS (to average daily net assets):
Net expenses (1) 2.38% + 2.58% 0.00%
Net expenses after custodian fee reduction (1) 2.15% + -- --
Net investment loss (0.67%)+ (1.00%) 0.00%
PORTFOLIO TURNOVER 69% 98% 0%
Net assets, end of period (000s omitted) $10,383 $3,587 $1,195
AVERAGE COMMISSION RATE PAID (2) $ 0.002 -- --
The operating expenses of the Portfolio reflect an allocation of expenses to the Administrator. Had such action not been taken,
the ratios would have been as follows:
RATIOS (to average daily net assets):
Expenses (1) 3.46% + 5.24% 2.21% +
Expenses after custodian fee reduction (1) 3.23% + -- --
Net investment loss (1.74%)+ (3.66%) (2.21%)+
<FN>
+ Annualized.
* For the period from the start of business, November 30, 1994, to December 31, 1994.
(1) The annualized expense ratios for the six months ended June 30, 1996 have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to increase its expense ratio by the effect of any expense
offset arrangements with its service providers. The expense ratio for the period ended June 30, 1996 has not been adjusted to
reflect this change.
(2) Average commission rate paid is computed by dividing the total dollar amount of commissions paid during the fiscal year by the
total number of shares purchased and sold during the fiscal year for which commissions were charged. For fiscal years beginning
on or after September 1, 1995, a Fund is required to disclose its average commission rate per share for security trades on
which commissions are charged.
</TABLE>
See notes to financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
- -----------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Emerging Markets Portfolio (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 interests in the Portfolio. The following is
a summary of the significant accounting policies of the Portfolio. The policies
are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS - Marketable securities, including options, that are
listed on foreign or U.S. securities exchanges or in the NASDAQ National Market
System are valued at closing sale prices, on the exchange where such securities
are principally traded. Futures positions on securities or currencies are
generally valued at closing settlement prices. Unlisted or listed securities for
which closing sale prices are not available are valued at the mean between the
latest bid and asked prices. Short-term debt securities with a remaining
maturity of 60 days or less are valued at amortized cost. Other fixed income and
debt securities, including listed securities and securities for which price
quotations are available, will normally be valued on the basis of valuations
furnished by a pricing service. Investments for which valuations or market
quotations are unavailable are valued at fair value using methods determined in
good faith by or at the direction of the Trustees.
B. FEDERAL TAXES - The Portfolio has elected to be 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 individually 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. Withholding taxes on foreign dividends and
capital gains have been provided for in accordance with the Portfolio's
understanding of the applicable countries' tax rules and rates.
C. EXPENSE REDUCTION - The Portfolio has entered into an arrangement with its
custodian whereby interest earned on uninvested cash balances are used to offset
custody fees. All significant reductions are reported as a reduction of expenses
in the Statement of Operations.
D. DEFERRED ORGANIZATION EXPENSES - Costs incurred by the Portfolio in
connection with its organization, including registration costs, are being
amortized on the straight-line basis over five years.
E. FUTURES CONTRACTS - Upon the entering of a financial futures contract, the
Portfolio is required to deposit (initial margin) either in cash or securities
an amount 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 daily fluctuations in the
value of the underlying security, and are recorded for book purposes as
unrealized gains or losses by the Portfolio. 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. If 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 financial futures contract to buy.
F. 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 fluctuations in
foreign currency exchange rates are not separately disclosed.
G. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS - The Portfolio may enter into
forward foreign currency exchange contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date. Risks may arise
upon entering these contracts from the potential inability of counterparties to
meet the terms of their contracts and from movements in the value of a foreign
currency relative to the U.S. dollar. The Portfolio will enter into forward
contracts for hedging purposes as well as 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.
H. OTHER - Investment transactions are accounted for on the date the investments
are purchased or sold. Dividend income is recorded on the ex-dividend date.
However, if the ex-dividend date has passed, certain dividends from foreign
securities are recorded as the Portfolio is informed of the ex-dividend date.
Interest income is recorded on the accrual basis.
I. USE OF ESTIMATES - The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenue and expense during the reporting period. Actual results could differ
from those estimates.
J. INTERIM FINANCIAL INFORMATION - The interim financial statements relating to
June 30, 1996 and for the six-month 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.
- -----------------------------------------------------------------------------
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Lloyd George Management (Bermuda)
Limited (the Adviser) 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 $500,000,000, and at reduced rates as daily net
assets exceed that level. For the six months ended June 30, 1996 the adviser fee
was 0.75% (annualized) of average net assets. To enhance the net income of the
Portfolio the Adviser made a preliminary waiver of $5,571 of investment adviser
fees. In addition, an administrative fee is earned by Eaton Vance Management
(EVM) for managing and administering the business affairs of the Portfolio.
Under the administration agreement, EVM earns a monthly fee in the amount of
1/48th of 1% (equal to 0.25% annually) of the average daily net assets of the
Portfolio up to $500,000,000, and at reduced rates as daily net assets exceed
that level. For the six months ended June 30, 1996, the administration fee was
0.25% (annualized) of average net assets. To enhance the net income of the
Portfolio, the administrator made a preliminary waiver of $1,140 of
administration fee and was allocated expenses in the amount of $27,000. 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 and administrative fees. Certain of
the officers and Trustees of the Portfolio are officers or directors/trustees of
the above organizations.
- -----------------------------------------------------------------------------
(3) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than short-term obligations,
aggregated $8,762,377 and $4,061,621, respectively.
- -----------------------------------------------------------------------------
(4) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation (depreciation) in the value of the
investments owned at June 30, 1996, as computed on a Federal income tax basis,
are as follows:
Aggregate cost $ 7,798,017
===========
Gross unrealized appreciation $ 1,557,208
Gross unrealized depreciation (162,167)
-----------
Net unrealized appreciation $ 1,395,041
===========
- -----------------------------------------------------------------------------
(5) RISKS ASSOCIATED WITH FOREIGN INVESTMENTS
Investing in securities issued by companies whose principal business activities
are outside the United States may involve significant risks not present in
domestic investments. For example, there is generally less publicly available
information about foreign companies, particularly those not subject to the
disclosure and reporting requirements of the U.S. securities laws. Foreign
issuers are generally not bound by uniform accounting, auditing, and financial
reporting requirements and standards of practice comparable to those applicable
to domestic issuers. Investments in foreign securities also involve the risk of
possible adverse changes in investment or exchange control regulations,
expropriation or confiscatory taxation, limitation on the removal of funds or
other assets of the Portfolio, political or financial instability or diplomatic
and other developments which could affect such investments. Foreign stock
markets, while growing in volume and sophistication, are generally not as
developed as those in the United States, and securities of some foreign issuers
(particularly those located in developing countries) may be less liquid and more
volatile than securities of comparable U.S. companies. In general, there is less
overall governmental supervision and regulation of foreign securities markets,
broker-dealers, and issuers than in the United States.
- -----------------------------------------------------------------------------
(6) LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by EVM and
its affiliates in a $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 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.
<PAGE>
INVESTMENT MANAGEMENT
EV MARATHON OFFICERS TRUSTEES
EMERGING MARKETS
FUND JAMES B. HAWKES M. DOZIER GARDNER
24 Federal Street President, Trustee President, Eaton Vance
Boston,MA 02110 Management
CLIFFORD H. KRAUSS
Vice President DONALD R. DWIGHT
President, Dwight Partners, Inc.
JAMES L. O'CONNOR Chairman, Newspapers of New
Treasurer England, Inc.
THOMAS OTIS SAMUEL L. HAYES, III
Secretary Jacob H. Schiff Professor of
Investment Banking, Harvard
University Graduate School of
Business Administration
NORTON H. REAMER
President and Director, United
Asset Management Corporation
JOHN L. THORNDIKE
Director, Fiduciary Company
Incorporated
JACK L. TREYNOR
Investment Adviser and
Consultant
- -------------------------------------------------------------------------------
EMERGING MARKETS OFFICERS TRUSTEES
PORTFOLIO
24 Federal Street HON. ROBERT LLOYD GEORGE SAMUEL L. HAYES, III
Boston,MA 02110 President, Trustee Jacob H. Schiff Professor of
Investment Banking, Harvard
JAMES B. HAWKES University Graduate School of
Vice President, Trustee Business Administration
SCOBIE DICKINSON WARD HON. EDWARD K.Y. CHEN
Vice President, Assistant Professor and Director, Center
Secretary and Assistant for Asian Studies, University of
Treasurer Hong Kong
WILLIAM WALTER RALEIGH KERR NORTON H. REAMER
Vice President, President and Director,
Assistant Treasurer United Asset Management
Corporation
JAMES L. O'CONNOR
Vice President, Treasurer DONALD R. DWIGHT
President, Dwight Partners, Inc.
THOMAS OTIS Chairman, Newspapers of New
Vice President, Secretary England, Inc.
