<PAGE>
[EV LOGO APPEARS HERE]
Investing for the 21st Century
[PHOTO OF OUTSIDE OF STOCK EXCHANGE APPEARS HERE]
Semiannual Report June 30, 1997
EV
[PHOTO OF STOCK EXCHANGE MARATHON
FLAG APPEARS HERE]
STOCK FUND
Eaton Vance
Global Management-Global Distribution
[PHOTO OF WALL STREET TRADING FLOOR APPEARS HERE]
Marathon
<PAGE>
EV Marathon Stock Fund as of June 30, 1997
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
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[PHOTOGRAPH OF DUNCAN W. RICHARDSON APPEARS HERE]
Duncan W. Richardson,
Portfolio Manager
Investment Environment
- --------------------------------------------------------------------------------
The Economy
. Economic conditions in the U.S. were very favorable in the first half of 1997.
Gross Domestic Product (GDP) increased at an annualized rate of 4.9% during
the first quarter. In the second quarter, the economy slowed somewhat, with
advance estimates showing an annualized GDP increase of 2.2%.
. Unemployment remained low throughout the period, falling to a 24-year low of
4.8% in May and rising slightly to 5.0% in June.
. Inflation was low throughout the first half of the year, despite continued
economic growth and a tight labor market. During the first half, the Consumer
Price Index (CPI) rose at an annual rate of only 1.4%, the slowest rate of
increase since 1986.
The Markets
. The sustained growth of the U.S. economy and low inflation have helped propel
prices of large capitalization stocks to record levels. In the six months
ended June 30, 1997, the S&P 500 Index had a total return of 20.6%.*
. An increase in volatility has accompanied higher stock valuations in the first
half of 1997. Within a six-week period in March and April, the Dow Jones
Industrial Average declined almost 10%, and then fully recovered to reach new
record highs.*
. Despite ever-higher stock prices, the market forces propelling the surge
within the large-capitalization sector remain intact. Low worldwide inflation,
the spread of capitalism around the world, and increasing productivity have
benefited U.S. multinational companies, whose profits have continued to rise.
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Mutual fund shares are not insured 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.
- --------------------------------------------------------------------------------
The Fund
- --------------------------------------------------------------------------------
The Past Six Months
. During the six months ended June 30, 1997, EV Marathon Stock Fund had a total
return of 17.1%./1/
. This return resulted from an increase in net asset value to $16.02 per share
on June 30, 1997 from $13.90 per share on December 31, 1996, and the
reinvestment of $0.03 per share in income dividends and $0.20 per share in
capital gains distributions./2/
. By comparison, the average total return for mutual funds in the Lipper Growth
& Income Fund Category was 15.5% during this period.*
Management Discussion
. As the equity markets became more volatile during the past six months, we
found opportunities to add to holdings with strong growth characteristics.
Some examples during this period include Home Depot, Marsh & McLennan, and
Boeing.
. We are always on the lookout for ways to add yield to the Fund and found such
an opportunity in real estate investment trusts (REITs). After trimming back
in this sector early in the year, we increased our REIT holdings when prices
subsequently declined. We also found yield opportunities in a few of the
regional bell operating companies.
. The Fund's tremendous diversity across sectors and individual holdings served
to mitigate the impact of the April market downturn. Our goal is to continue
to maintain as diverse a portfolio as possible.
- --------------------------------------------------------------------------------
/1/ This return does not include the maximum applicable 5% contingent deferred
sales charge (CDSC).
/2/ Returns are calculated by determining the percentage change in net asset
value (NAV) with all distributions reinvested. SEC average annual returns
reflect applicable CDSC on the following schedule: 5%-1st and 2nd years; 4%-
3rd year; 3%-4th year; 2%-5th year; 1%-6th year. Past performance is no
guarantee of future results. The value of an investment in the Fund will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
/3/ Industry sectors and top 10 holdings are as of 6/30/97 and may not be
representative of the Portfolio's current or future investments. Top 10
holdings account for 27.6% of the Portfolio's investments, determined by
dividing the total market value of the holdings by the total net assets of
the Portfolio.
* It is not possible to invest directly in an index, average, or Lipper
Category.
Fund Information
as of June 30, 1997
<TABLE>
<CAPTION>
Average Annual Total Returns/2/
- ---------------------------------------------
<S> <C>
One Year 29.3%
Life of Fund (8/17/94) 21.2
<CAPTION>
SEC Average Annual Total Returns/2/
- ---------------------------------------------
<S> <C>
One Year 24.3%
Life of Fund (8/17/94) 20.2
</TABLE>
<TABLE>
<CAPTION>
Five Largest Industry Sectors/3/
- ---------------------------------------------
As a percentage of total net assets
<S> <C>
Financial 24.9%
Consumer Non-Durables 24.1%
Consumer Services 13.4%
Basic Industries 12.2%
Business Products & Services 8.0%
</TABLE>
[BAR CHART APPEARS HERE]
<TABLE>
<CAPTION>
Ten Largest Equity Holdings/3/
- ---------------------------------------------
As a percentage of total net assets
<S> <C>
Unilever N.V. 3.0%
Home Depot, Inc. 3.0
Freeport McMoran Corp. 3.0
CVS Corp. 3.0
Monsanto Company 2.8
Allstate Corp. 2.6
Marsh & McLennan Companies 2.6
McGraw-Hill Companies 2.6
Eli Lilly & Co. 2.5
Federal National Mortgage Association 2.5
</TABLE>
2
<PAGE>
EV Marathon Stock Fund as of June 30, 1997
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
As of June 30, 1997
Assets
- --------------------------------------------------------------------------------
<S> <C>
Investment in Stock Portfolio, at value (Note 1A)
(identified cost, $12,971,199) $ 15,382,318
Receivable for Fund shares sold 42,540
Receivable from Administrator (Note 4) 17,500
Deferred organization expenses (Note 1E) 20,515
- --------------------------------------------------------------------------------
Total assets $ 15,462,873
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Liabilities
- --------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 33,885
Payable to affiliate for Trustees' fees (Note 4) 61
Accrued expenses 13,285
- --------------------------------------------------------------------------------
Total liabilities $ 47,231
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Net Assets for 962,402 shares of beneficial interest
outstanding $ 15,415,642
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Paid-in capital $ 11,430,023
Accumulated net realized gain on
investments (computed on the basis of identified cost) 1,580,951
Distributions in excess of net investment income (6,451)
Net unrealized appreciation of investments (computed
on the basis of identified cost) 2,411,119
- --------------------------------------------------------------------------------
Total $ 15,415,642
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share (Note 6)
- --------------------------------------------------------------------------------
($15,415,642 / 962,402 shares of beneficial interest
outstanding) $ 16.02
- --------------------------------------------------------------------------------
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
For the Six Months Ended
June 30, 1997
Investment Income (Note 1B)
- --------------------------------------------------------------------------------
<S> <C>
Dividend income allocated from
Portfolio (net of withholding taxes, $143) $ 135,790
Interest income allocated from Portfolio 22,508
Expenses allocated from Portfolio (49,541)
- --------------------------------------------------------------------------------
Total investment income from Portfolio $ 108,757
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Distribution and service fees (Note 5) $ 68,515
Registration fees 11,829
Printing and postage 10,543
Transfer and dividend disbursing agent fees 7,835
Legal and accounting services 6,221
Amortization of organization expenses (Note 1E) 4,525
Custodian fee 1,250
Miscellaneous 351
- --------------------------------------------------------------------------------
Total expenses $ 111,069
- --------------------------------------------------------------------------------
Deduct --
Preliminary allocation of expenses to the
Administrator (Note 4) $ 17,500
- --------------------------------------------------------------------------------
Total expense reductions $ 17,500
- --------------------------------------------------------------------------------
Net expenses $ 93,569
- --------------------------------------------------------------------------------
Net investment income $ 15,188
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
- --------------------------------------------------------------------------------
Net realized gain --
Investment transactions (identified cost basis) $ 1,565,525
Options 6,329
- --------------------------------------------------------------------------------
Net realized gain on investment transactions $ 1,571,854
- --------------------------------------------------------------------------------
Change in unrealized appreciation --
Investment transactions $ 564,595
Options 19,523
- --------------------------------------------------------------------------------
Net change in unrealized appreciation of investments $ 584,118
- --------------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 2,155,972
- --------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 2,171,160
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</TABLE>
See notes to financial statements
3
<PAGE>
EV Marathon Stock Fund as of June 30, 1997
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
Increase (Decrease) June 30, 1997 Year Ended
in Net Assets (Unaudited) December 31, 1996
- --------------------------------------------------------------------------------
<S> <C> <C>
From operations --
Net investment income $ 15,188 $ 56,330
Net realized gain on
investments 1,571,854 638,639
Net change in unrealized
appreciation of
investments 584,118 1,094,269
- --------------------------------------------------------------------------------
Net increase in net assets from operations $ 2,171,160 $ 1,789,238
- --------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income $ (20,784) $ (57,661)
In excess of net investment income (6,451) --
From net realized gain on investments (187,276) (444,768)
- --------------------------------------------------------------------------------
Total distributions to shareholders $ (214,511) $ (502,429)
- --------------------------------------------------------------------------------
Transactions in shares of beneficial
interest (Note 3) --
Proceeds from sale of shares $ 2,514,113 $ 6,401,841
Net asset value of shares issued to
shareholders in payment of
distributions declared 246,210 378,659
Cost of shares redeemed (1,444,298) (3,260,520)
- --------------------------------------------------------------------------------
Net increase in net assets from
Fund share transactions $ 1,316,025 $ 3,519,980
- --------------------------------------------------------------------------------
Net increase in net assets $ 3,272,674 $ 4,806,789
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of period $ 12,142,968 $ 7,336,179
- --------------------------------------------------------------------------------
At end of period $ 15,415,642 $ 12,142,968
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Accumulated undistributed
(distributions in excess of)
net investment income
included in net assets
- --------------------------------------------------------------------------------
At end of period $ (6,451) $ 5,596
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
4
<PAGE>
EV Marathon Stock Fund as of June 30, 1997
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Six Months Ended Year Ended December 31,
June 30, 1997 ------------------------------------
(Unaudited) 1996 1995 1994*
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value -- Beginning of period $13.900 $12.250 $ 9.610 $10.000
- -----------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------
Net investment income (loss) $ 0.017 $ 0.075 $ 0.060 $(0.010)
Net realized and unrealized gain (loss)
on investments 2.333 2.187 2.815 (0.380)
- -----------------------------------------------------------------------------------------------------
Total income (loss) from operations $ 2.350 $ 2.262 $ 2.875 $(0.390)
- -----------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------
From net investment income $(0.023) $(0.080) $(0.036) $ --
In excess of net investment income (0.007) -- -- --
From net realized gain on investments (0.200) (0.532) (0.199) --
- -----------------------------------------------------------------------------------------------------
Total distributions $(0.230) $(0.612) $(0.235) $ --
- -----------------------------------------------------------------------------------------------------
Net asset value -- End of period $16.020 $13.900 $12.250 $ 9.610
- -----------------------------------------------------------------------------------------------------
Total Return/(1)/ 17.12% 18.71% 29.98% (3.90)%
- -----------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $15,416 $12,143 $ 7,336 $ 1,066
Ratio of net expenses to average daily
net assets /(2)/ 2.09% 2.09% 2.32% 3.25%+
Ratio of net investment income(loss) to average
daily net assets 0.22% 0.57% 0.71% (0.74)%+
</TABLE>
+ The operating expenses of the Fund and the Portfolio reflect an allocation
of expenses to the Administrator. Had such action not been taken, the ratios
and net investment income (loss) per share would have been as follows:
<TABLE>
<CAPTION>
Ratios (As a percentage of average daily net assets):
<S> <C> <C> <C> <C>
Expenses /(2)/ 2.34% 2.33% 3.66% 3.81%+
Net investment income (loss) (0.03)% 0.33% (0.63)% (0.18)%+
Net investment income (loss) per share $(0.002) $ 0.018 $(0.022) $(0.016)
- -----------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the period from the start of business, August 17, 1994, to
December 31, 1994.
/(1)/ 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 payable date. Total return is not
computed on an annualized basis.
/(2)/ Includes the Fund's share of the Portfolio's allocated expense.
See notes to financial statements
5
<PAGE>
EV Marathon Stock Fund as of June 30, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
------------------------------------------------------------------------------
EV Marathon Stock Fund (the Fund) a Massachusetts business trust, is
registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end, management investment company. The Fund is a series in
the Eaton Vance Special Investment Trust. The Fund invests all of its
investable assets in interests in the Stock 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 (11.2% at June 30, 1997). 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 the 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 are
discussed in Note 1A 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.
C Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Fund. Pursuant to the custodian agreement, IBT receives a fee
reduced by credits which are determined based on the average daily cash
balances the Fund maintains with IBT. All significant credit balances used to
reduce the Fund's custodian fees are reported as a reduction of expenses on
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 taxable income, including any
net realized gain on investments, options and financial futures transactions.
Accordingly, no provision for federal income or excise tax is necessary.
E Deferred Organization Expenses -- Costs incurred by the Fund in connection
with its organization, are being amortized on the straight-line basis over
five years.
F Other -- Investment transactions are accounted for on a trade date basis.
G Use of Estimates -- The preparation of 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 income and expense during the reporting period. Actual results could differ
from those estimates.
H Interim Financial Information -- The interim financial statements relating
to June 30, 1997 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
------------------------------------------------------------------------------
The Fund's present policy is to pay quarterly dividends from net investment
income allocated to the Fund by the Portfolio (less the Fund's direct and
allocated expenses) and to distribute at least annually any net realized
capital gains so allocated. Distributions are paid in the form of additional
shares of the Fund or, at the election of the shareholder, in cash. The Fund
distinguishes between distributions on a tax basis and a financial reporting
basis. Generally accepted accounting principles requires 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 overdistributions only 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 relating to distributions are reclassified to paid-in capital.
6
<PAGE>
EV Marathon Stock Fund as of June 30, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
3 Shares of Beneficial Interest
------------------------------------------------------------------------------
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (with no par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
-------------------------------------------------------------------------------
<S> <C> <C>
Sales 169,412 502,161
Issued to shareholders electing to
receive payments of distributions in
Fund shares 17,595 28,362
Redemptions (98,370) (255,733)
-------------------------------------------------------------------------------
Net increase 88,637 274,790
-------------------------------------------------------------------------------
</TABLE>
4 Investment Adviser Fee and Other Transactions with Affiliates
------------------------------------------------------------------------------
Eaton Vance serves only as the administrator of the Fund, but receives no
compensation. To enhance the net income of the Fund $17,500 of the Funds'
expenses were allocated, on a preliminary basis, to EV for the six months
ended June 30, 1997. The Portfolio has engaged Boston Management and Research
(BMR), a subsidiary of Eaton Vance Management (EVM), to render investment
advisory services. See Note 3 of the Portfolio's Notes to Financial Statements
which are included elsewhere in this report. Except as to Trustees of the Fund
and the Portfolio who are not members of EVM's or BMR's 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 trustees of the above organizations.
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 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. Such
payments would increase upon termination of the distribution agreement (unless
made in accordance with another distribution agreement). As a result, the Fund
does not accrue amounts which may become payable to EVD in the future because
the conditions for recording any contingent liability under generally accepted
accounting principles have not been satisfied. EVD earned $51,295 for the six
months ended June 30, 1997, representing 0.75% (annualized) of average daily
net assets. At June 30, 1997, the amount of Uncovered Distribution Charges of
EVD calculated under the Plan was approximately $330,000.
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 of the fund have implemented the Plan by authorizing the Fund to
make quarterly payments of service fees to the Principal Underwriter and
Authorized Firms in amounts not expected to exceed 0.25% of the Fund's average
daily net assets for any fiscal year based on the value of Fund shares sold by
such persons and remaining outstanding for at least twelve months. During the
six months ended June 30, 1997, the Fund provided for $17,220 under the Plan
to the Principal Underwriter and Authorized Firms. 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 of the officers of the Fund and Directors of the Corporation are
officers or directors of EVD.
6 Contingent Deferred Sales Charge (CDSC)
------------------------------------------------------------------------------
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
7
<PAGE>
EV Marathon Stock Fund as of June 30, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
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. No CDSC is levied on shares which have been sold to EVM or
its affiliates or to their respective employees or clients. CDSC charges are
paid to EVD to reduce the amount of Uncovered Distribution Charges calculated
under the Fund's Distribution Plan. CDSC charges received when no Uncovered
Distribution charges exist will be retained by the Fund. EVD received
approximately $15,000 of CDSC paid by shareholders for the six months ended
June 30, 1997.
7 Investment Transactions
------------------------------------------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio aggregated
$2,581,241 and $1,680,952, respectively.
8
<PAGE>
Stock Portfolio as of June 30, 1997
PORTFOLIO OF INVESTMENTS (Unaudited)
Common Stocks -- 91.1%
<TABLE>
<CAPTION>
Security Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Advertising -- 0.5%
- --------------------------------------------------------------------------------
Omnicom Group, Inc. 10,000 $ 616,250
- --------------------------------------------------------------------------------
$ 616,250
- --------------------------------------------------------------------------------
Aerospace and Defense -- 2.4%
- --------------------------------------------------------------------------------
Boeing Co. 62,000 $ 3,289,875
- --------------------------------------------------------------------------------
$ 3,289,875
- --------------------------------------------------------------------------------
Auto and Parts -- 0.4%
- --------------------------------------------------------------------------------
Magna International Class A 10,000 $ 601,875
- --------------------------------------------------------------------------------
$ 601,875
- --------------------------------------------------------------------------------
Banks - Regional -- 1.6%
- --------------------------------------------------------------------------------
BankBoston Corp. 15,000 $ 1,080,938
Fleet Financial Group, Inc. 18,000 1,138,500
- --------------------------------------------------------------------------------
$ 2,219,438
- --------------------------------------------------------------------------------
Banks and Money Centers -- 2.2%
- --------------------------------------------------------------------------------
Bankers Trust New York Corp. 35,000 $ 3,045,000
- --------------------------------------------------------------------------------
$ 3,045,000
- --------------------------------------------------------------------------------
Banks and Money Services -- 2.5%
- --------------------------------------------------------------------------------
Citicorp 28,332 $ 3,415,777
- --------------------------------------------------------------------------------
$ 3,415,777
- --------------------------------------------------------------------------------
Beverages -- 0.7%
- --------------------------------------------------------------------------------
PepsiCo, Inc. 25,000 $ 939,063
- --------------------------------------------------------------------------------
$ 939,063
- --------------------------------------------------------------------------------
Broadcasting and Cable -- 0.4%
- --------------------------------------------------------------------------------
Comcast Corp. Class A 25,000 $ 534,375
- --------------------------------------------------------------------------------
$ 534,375
- --------------------------------------------------------------------------------
Chemicals -- 2.8%
- --------------------------------------------------------------------------------
Monsanto Corp. 90,000 $ 3,875,625
- --------------------------------------------------------------------------------
$ 3,875,625
- --------------------------------------------------------------------------------
Communications Equipment -- 1.6%
- --------------------------------------------------------------------------------
Nokia Corp., ADR 30,000 $ 2,212,500
- --------------------------------------------------------------------------------
$ 2,212,500
- --------------------------------------------------------------------------------
Containers and Packaging -- 2.3%
- --------------------------------------------------------------------------------
Crown Cork & Seal, Inc. 60,000 $ 3,206,250
- --------------------------------------------------------------------------------
$ 3,206,250
- --------------------------------------------------------------------------------
Drugs -- 8.0%
- --------------------------------------------------------------------------------
Elan Corp., PLC ADR 65,000 $ 2,941,250
Genzyme Corp. Class A 35,000 969,063
Lilly & Co. 32,000 3,498,000
Pfizer, Inc. 10,000 1,195,000
Warner-Lambert Co. 20,000 2,485,000
- --------------------------------------------------------------------------------
$11,088,313
- --------------------------------------------------------------------------------
Electric Utilities -- 0.0%
- --------------------------------------------------------------------------------
Electric De Portugal ADR 400 $ 14,400
- --------------------------------------------------------------------------------
$ 14,400
- --------------------------------------------------------------------------------
Electronics - Semiconductors -- 1.0%
- --------------------------------------------------------------------------------
Intel Corp. 10,000 $ 1,418,125
- --------------------------------------------------------------------------------
$ 1,418,125
- --------------------------------------------------------------------------------
Financial - Miscellaneous -- 3.2%
- --------------------------------------------------------------------------------
Federal National Mortgage Association 80,000 $ 3,490,000
MGIC Investment Corp. 20,000 958,750
- --------------------------------------------------------------------------------
$ 4,448,750
- --------------------------------------------------------------------------------
Foods -- 7.0%
- --------------------------------------------------------------------------------
Conagra Inc. 27,000 $ 1,731,375
Dean Foods Co. 75,000 3,028,125
McCormick & Co., Inc. 30,000 759,375
Unilever ADR 19,000 4,141,999
- --------------------------------------------------------------------------------
$ 9,660,874
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
9
<PAGE>
Stock Portfolio as of June 30, 1997
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Security Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Household Products -- 2.5%
- --------------------------------------------------------------------------------
Gillette Co. 15,640 $ 1,481,890
Newell Co. 50,000 1,981,250
- --------------------------------------------------------------------------------
$ 3,463,140
- --------------------------------------------------------------------------------
Information Services -- 3.8%
- --------------------------------------------------------------------------------
Automatic Data Processing, Inc. 30,000 $ 1,410,000
Reuters Holdings PLC ADR 60,000 3,781,872
- --------------------------------------------------------------------------------
$ 5,191,872
- --------------------------------------------------------------------------------
Insurance -- 10.9%
- --------------------------------------------------------------------------------
Allstate Corp. 49,540 $ 3,616,420
American International Group, Inc. 18,000 2,688,750
Lincoln National Corp. 25,000 1,609,375
Marsh & McLennan Cos., Inc. 50,000 3,568,750
Nationwide Financial Service 17,000 451,563
Progressive Corp. 35,000 3,045,000
- --------------------------------------------------------------------------------
$14,979,858
- --------------------------------------------------------------------------------
Leisure Equipment -- 0.4%
- --------------------------------------------------------------------------------
Sturm, Ruger & Co., Inc. 30,000 $ 588,750
- --------------------------------------------------------------------------------
$ 588,750
- --------------------------------------------------------------------------------
Lodging and Gaming -- 2.7%
- --------------------------------------------------------------------------------
MGM Grand, Inc. 30,000 $ 1,110,000
Mirage Resorts, Inc. 35,000 883,750
Promus Hotel Corp. 45,000 1,743,750
- --------------------------------------------------------------------------------
$ 3,737,500
- --------------------------------------------------------------------------------
Manufacturing -- 1.6%
- --------------------------------------------------------------------------------
Corning, Inc. 40,000 $ 2,225,000
- --------------------------------------------------------------------------------
$ 2,225,000
- --------------------------------------------------------------------------------
Medical Products -- 3.6%
- --------------------------------------------------------------------------------
Baxter International, Inc. 65,000 $ 3,396,250
Johnson & Johnson Co. 25,000 1,609,375
- --------------------------------------------------------------------------------
$ 5,005,625
- --------------------------------------------------------------------------------
Metals and Minerals -- 1.1%
- --------------------------------------------------------------------------------
J & L Specialty Steel, Inc. 120,000 $ 1,440,000
- --------------------------------------------------------------------------------
$ 1,440,000
- --------------------------------------------------------------------------------
Oil and Gas - Exploration and Production -- 5.2%
- --------------------------------------------------------------------------------
Anadarko Petroleum Corp. 20,000 $ 1,200,000
British Petroleum, PLC ADR 30,000 2,246,250
Triton Energy Ltd. 60,000 2,748,750
USX-Marathon Group 35,000 1,010,625
- --------------------------------------------------------------------------------
$ 7,205,625
- --------------------------------------------------------------------------------
Paper and Forest Products -- 0.3%
- --------------------------------------------------------------------------------
Rayonier, Inc. 10,000 $ 420,625
- --------------------------------------------------------------------------------
$ 420,625
- --------------------------------------------------------------------------------
Photography -- 1.7%
- --------------------------------------------------------------------------------
Eastman Kodak Co. 30,000 $ 2,302,500
- --------------------------------------------------------------------------------
$ 2,302,500
- --------------------------------------------------------------------------------
Publishing -- 4.3%
- --------------------------------------------------------------------------------
Dow Jones & Co., Inc. 60,000 $ 2,411,250
McGraw-Hill, Inc. 60,000 3,528,750
- --------------------------------------------------------------------------------
$ 5,940,000
- --------------------------------------------------------------------------------
REITS -- 3.1%
- --------------------------------------------------------------------------------
Beacon Properties Corp. 20,000 $ 667,500
Chateau Communities, Inc. 10,000 286,250
Equity Residential Properties Trust 10,000 475,000
Highwood Properties, Inc. 20,000 640,000
Nationwide Health Properties, Inc. 2,000 44,000
Post Properties, Inc. 13,000 527,313
Storage USA, Inc. 15,000 573,750
Sun Communities, Inc. 20,000 671,250
Trinet Corporate Realty Trust, Inc. 10,000 330,625
- --------------------------------------------------------------------------------
$ 4,215,688
- --------------------------------------------------------------------------------
Retail - Food and Drug -- 3.0%
- --------------------------------------------------------------------------------
CVS Corp. 80,000 $ 4,100,000
- --------------------------------------------------------------------------------
$ 4,100,000
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
10
<PAGE>
Stock Portfolio as of June 30, 1997
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Security Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Retail - Specialty and Apparel -- 5.1%
- --------------------------------------------------------------------------------
Office Depot 150,000 $ 2,915,625
The Home Depot, Inc. 60,000 4,136,249
- --------------------------------------------------------------------------------
$ 7,051,874
- --------------------------------------------------------------------------------
Specialty Chemicals and Materials -- 3.5%
- --------------------------------------------------------------------------------
Ecolab, Inc. 50,000 $ 2,387,500
Potash Corp. of Saskatchewan 32,000 2,402,000
- --------------------------------------------------------------------------------
$ 4,789,500
- --------------------------------------------------------------------------------
Telephone Utilities -- 1.7%
- --------------------------------------------------------------------------------
GTE Corp. 25,000 $ 1,096,875
SBC Communications, Inc. 20,000 1,237,500
- --------------------------------------------------------------------------------
$ 2,334,375
- --------------------------------------------------------------------------------
Total Common Stocks
(identified cost, $95,655,812) $125,578,422
- --------------------------------------------------------------------------------
</TABLE>
Convertible Preferred Stocks -- 4.2%
<TABLE>
<CAPTION>
Security Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Insurance -- 0.8%
- --------------------------------------------------------------------------------
Sun America, Inc., 3.188% 25,000 $ 1,090,625
- --------------------------------------------------------------------------------
$ 1,090,625
- --------------------------------------------------------------------------------
Metals - Gold -- 3.0%
- --------------------------------------------------------------------------------
Freeport McMoRan Copper & Gold, 5% 150,000 $ 4,106,249
- --------------------------------------------------------------------------------
$ 4,106,249
- --------------------------------------------------------------------------------
Natural Gas Utilities -- 0.4%
- --------------------------------------------------------------------------------
Tejas Gas Corp., 5.25% 10,000 $ 530,000
- --------------------------------------------------------------------------------
$ 530,000
- --------------------------------------------------------------------------------
Total Convertible Preferred Stocks
(identified cost, $4,736,811) $ 5,726,874
- --------------------------------------------------------------------------------
</TABLE>
Convertible Bonds -- 3.1%
<TABLE>
<CAPTION>
Principal
Amount
Security (000's Omitted) Value
- --------------------------------------------------------------------------------
<S> <C> <C>
INCO Ltd., 5.75%, 7/1/04 $ 2,920 $ 3,460,200
Scandinavian Broadcasting System,
7.25%, 8/1/05 840 843,150
- --------------------------------------------------------------------------------
Total Convertible Bonds
(identified cost, $4,054,999) $ 4,303,350
- --------------------------------------------------------------------------------
</TABLE>
Corporate Bonds -- 0.0%
<TABLE>
<CAPTION>
Principal
Amount
Security (000's Omitted) Value
- --------------------------------------------------------------------------------
<S> <C> <C>
H. P. Hood & Son, 7.50%, 2/1/01 $ 50 $ 39,400
- --------------------------------------------------------------------------------
Total Corporate Bonds
(identified cost, $50,000) $ 39,400
- --------------------------------------------------------------------------------
</TABLE>
Commercial Paper -- 2.7%
<TABLE>
<CAPTION>
Principal
Amount
Security (000's Omitted) Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Cut Group, 6.25%, 7/1/97 $ 3,718 $ 3,718,000
- --------------------------------------------------------------------------------
Total Commercial Paper
(amortized cost, $3,718,000) $ 3,718,000
- --------------------------------------------------------------------------------
Total Investments -- 101.1%
(identified cost, $108,215,622) $139,366,046
- --------------------------------------------------------------------------------
Other Assets, Less Liabilities -- (1.1)% $ (1,523,404)
- --------------------------------------------------------------------------------
Net Assets -- 100% $137,842,642
- --------------------------------------------------------------------------------
</TABLE>
ADR -- American Depositary Receipt
REIT -- Real Estate Investment Trust
See notes to financial statements
11
<PAGE>
Stock Portfolio as of June 30, 1997
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
As of June 30, 1997
Assets
- --------------------------------------------------------------------------------
<S> <C>
Investments, at value (Note 1A)
(identified cost, $108,215,622) $139,366,046
Cash 649
Receivable for investments sold 2,550,169
Dividends and interest receivable 282,555
Tax reclaim receivable 21,656
Deferred organization expenses (Note 1D) 6,832
- --------------------------------------------------------------------------------
Total assets $142,227,907
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Payable for investments purchased $ 4,366,855
Payable to affiliate - Director's fees (Note 3) 2,200
Accrued expenses 16,210
- --------------------------------------------------------------------------------
Total liabilities $ 4,385,265
- --------------------------------------------------------------------------------
Net Assets applicable to investors' interest in Portfolio $137,842,642
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Net proceeds from capital contributions and withdrawals $106,692,218
Net unrealized appreciation of investments (computed on the
basis of identified cost) 31,150,424
- --------------------------------------------------------------------------------
Total $137,842,642
- --------------------------------------------------------------------------------
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
For the Six Months Ended
June 30, 1997
Investment Income
- --------------------------------------------------------------------------------
<S> <C>
Dividends (net of withholding taxes, $1,354) $ 1,266,005
Interest income 210,500
- --------------------------------------------------------------------------------
Total income $ 1,476,505
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Investment adviser fee (Note 3) $ 401,714
Compensation of Trustees not members of the
Investment Adviser's organization (Note 3) 4,585
Custodian fee 39,660
Legal and accounting services 11,901
Amortization of organization expenses (Note 1D) 1,629
Miscellaneous 1,930
- --------------------------------------------------------------------------------
Total expenses $ 461,419
- --------------------------------------------------------------------------------
Net investment income $ 1,015,086
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- --------------------------------------------------------------------------------
Net realized gain --
Investment transactions (identified cost basis) $ 14,675,802
Options 61,335
- --------------------------------------------------------------------------------
Net realized gain on investments $ 14,737,137
- --------------------------------------------------------------------------------
Change in unrealized appreciation --
Investments (identified cost basis) $ 5,344,944
Options 181,789
- --------------------------------------------------------------------------------
Net change in unrealized appreciation $ 5,526,733
- --------------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 20,263,870
- --------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 21,278,956
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
12
<PAGE>
Stock Portfolio as of June 30, 1997
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
Increase (Decrease) June 30, 1997 Year Ended
in Net Assets (Unaudited) December 31, 1996
- --------------------------------------------------------------------------------
<S> <C> <C>
From operations --
Net investment income $ 1,015,086 $ 2,212,222
Net realized gain on investments 14,737,137 14,716,162
Net change in unrealized appreciation 5,526,733 4,346,638
- --------------------------------------------------------------------------------
Net increase in net assets from operations $ 21,278,956 $ 21,275,022
- --------------------------------------------------------------------------------
Capital transactions --
Contributions $ 5,164,822 $ 9,663,514
Withdrawals (11,564,284) (15,692,663)
- --------------------------------------------------------------------------------
Net decrease in net assets from
capital transactions $ (6,399,462) $ (6,029,149)
- --------------------------------------------------------------------------------
Net increase in net assets $ 14,879,494 $ 15,245,873
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of period $122,963,148 $107,717,275
- --------------------------------------------------------------------------------
At end of period $137,842,642 $122,963,148
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
13
<PAGE>
Stock Portfolio as of June 30, 1997
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Six Months Ended Year Ended December 31,
June 30, 1997 -----------------------------------
(Unaudited) 1996 1995 1994*
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ratios to average daily net assets
- -----------------------------------------------------------------------------------------------------
Expenses 0.72%+ 0.73% 0.75% 0.73%+
Net investment income 1.59%+ 1.96% 2.30% 2.45%+
Portfolio Turnover 46% 114% 108% 28%
- -----------------------------------------------------------------------------------------------------
Average commission rate (per share)/(1)/ $0.0593 $0.0579 $ -- $ --
- -----------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the period from the start of business, August 1, 1994, to December 31,
1994.
/(1)/ 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 were charged.
See notes to financial statements
14
<PAGE>
Stock Portfolio as of June 30, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
------------------------------------------------------------------------------
Stock Portfolio (the Portfolio) is registered under the Investment Company
Act of 1940 as a diversified open-end investment company which was organized
as a trust under the laws of the State of New York on May 1, 1992. The
Declaration of Trust permits the Trustees to issue beneficial interests in
the Portfolio. 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 foreign or U.S. securities
exchanges or in the NASDAQ National Market System generally are valued at
closing sale prices or, if there were no sales, at the mean between the
closing bid and asked prices on the exchange where such securities are
principally traded or on such National Market System. Unlisted or listed
securities for which closing sale prices are not available are valued at the
mean between the latest available bid and asked prices on the principal market
where the security was traded. An option is valued at the last sale price as
quoted on the principal exchange or board of trade on which such option or
contract is traded or, in the absence of a sale, at the mean between the last
bid and asked prices. Futures positions on securities or currencies are
generally valued at closing settlement prices. Short-term debt securities with
a remaining maturity of 60 days or less are valued at amortized cost. If
securities were acquired with a remaining maturity of more than 60 days, their
amortized cost value will be based on their value on the sixty-first day prior
to maturity. 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.
Securities for which market quotations are unavailable, including any security
the disposition of which is restricted under the Securities Act of 1933, and
other assets will be appraised at their fair value as determined in good faith
by or at the direction of the Trustees of the Portfolio.
B 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 normally
must satisfy the applicable source of income and diversification requirements
(under the Internal Revenue Code) in order for its investors to satisfy them.
The Portfolio will allocate at least annually among its investors each
investor's distributive share of the Portfolio's net investment income, net
realized capital gains, and any other items of income, gain, loss, deduction
or credit.
C Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolio. Pursuant to the custodian agreement, IBT receives
a fee reduced by credits which are determined based on the average daily cash
balances the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are 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 are being amortized on the straight-line
basis over five years.
E Other -- Investment transactions are accounted for on a trade date basis.
F Written Options -- The Portfolio may write call or put options for which
premiums are received and are recorded as liabilities, and are subsequently
adjusted to the current value of the options written. Premiums received from
writing options which expire are treated as realized gains. Premiums received
from writing options which are exercised or are closed are offset against the
proceeds or amount paid on the transaction to determine the realized gain or
loss. If a put option is exercised, the premium reduces the cost basis of the
securities purchased by the Portfolio. The Portfolio as a writer of an option
may have no control over whether the underlying securities may be sold (call)
or purchased (put) and as a result bears the market risk of an unfavorable
change in the price of the securities underlying the written option.
G 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 income and expenses during the reporting period. Actual results
could differ from those estimates.
15
<PAGE>
Stock Portfolio as of June 30, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
H Interim Financial Information -- The interim financial statements relating
to June 30, 1997 and for the six month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Portfolio's management, reflect all adjustments, consisting only of
normal recurring adjustments, necessary for the fair presentation of the
financial statements.
2 Investments Transactions
------------------------------------------------------------------------------
Purchases and sales of investments, other than short term obligations,
aggregated $57,181,765 and $56,907,937, respectively.
3 Investment Adviser Fee and Other Transactions with Affiliates
------------------------------------------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to the Portfolio.
The fee is at the annual rate of 5/8 of 1% of average daily net assets. For
the six months ended June 30, 1997, the fee amounted to $401,714. 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 services
to the Portfolio out of such investment adviser fee. Certain of the officers
and Trustees of the Portfolio are officers and 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 June 30, 1997, 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 group of banks. The Portfolio may temporarily borrow from the line of
credit to satisfy redemption requests or settle investment transactions.
Interest is charged to each portfolio or fund based on its borrowings at an
amount above the banks adjusted certificate of deposit rate, Eurodollar rate
or federal funds rate. In addition, a fee computed at an annual rate of 0.15%
on the daily unused portion of the line of credit is allocated among the
participating Portfolios and funds at the end of each quarter. The Portfolio
did not have any significant borrowings or allocated fees during the six
months ended June 30, 1997.
5 Federal Income Tax Basis of Investments
------------------------------------------------------------------------------
The cost and unrealized appreciation/depreciation in value of the investments
owned at June 30, 1997, as computed on a federal income tax basis, were as
follows:
<TABLE>
<S> <C>
Aggregate cost $108,215,622
------------------------------------------------------------------------------
Gross unrealized appreciation $ 31,512,278
Gross unrealized depreciation (361,854)
------------------------------------------------------------------------------
Net unrealized appreciation $ 31,150,424
------------------------------------------------------------------------------
</TABLE>
6 Financial Instruments
------------------------------------------------------------------------------
The Portfolio regularly trades in financial instruments with off-balance-sheet
risk in the normal course of its investing activities and to assist in
managing exposure to market risks such as interest rates and foreign currency
exchange rates. These financial instruments include written options. The
notional or contractual amounts of these instruments represent the investment
the Portfolio has in particular classes of financial instruments and do not
necessarily represent the amounts potentially subject to risk. The measurement
of the risks associated with these instruments is meaningful only when all
related and offsetting transactions are considered. A summary of obligations
under these financial instruments at June 30, 1997 is as follows:
<TABLE>
<CAPTION>
Number of
Contracts
(000's omitted) Premiums
------------------------------------------------------------------------------
<S> <C> <C>
Outstanding, beginning of period 100 $ 61,335
Options expired (100) $(61,335)
------------------------------------------------------------------------------
Outstanding, end of period - $ -
------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
EV Marathon Stock Fund as of June 30, 1997
INVESTMENT MANAGEMENT
EV Marathon Stock Fund
Officers Trustees
James B. Hawkes M. Dozier Gardner
President and Trustee Vice Chairman, Eaton Vance
Management
Edward E. Smiley, Jr
Vice President Donald R. Dwight
President, Dwight Partners,
James L. O'Connor Chairman, Newspapers of New England, Inc.
Treasurer
Samuel L. Hayes, III
Alan R. Dynner Jacob H. Schiff Professor of Investment
Secretary Banking, Harvard University Graduate School of
Business Administration
Norton H. Reamer
President and Director, United Asset
Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorported
Jack L. Treynor
Investment Adviser and Consultant
Stock Portfolio
Officers Independent Trustees
James B. Hawkes Donald R. Dwight
President and Trustee President, Dwight Partners,
Chairman, Newspapers of New England, Inc.
Duncan W. Richardson
Vice President and Samuel L. Hayes, III
Portfolio Manager Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate School of
James L. O'Connor Business Administration
Treasurer
Norton H. Reamer
Alan R. Dynner President and Director, United Asset
Secretary Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
17
<PAGE>
This Page Intentionally Left Blank
<PAGE>
This Page Intentionally Left Blank
<PAGE>
Investment Adviser of Stock Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Administrator of EV Marathon Stock 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
200 Clarendon Street, 16th Floor
Boston, MA 02116
Transfer Agent
First Data Investor Services Group
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
EV Marathon Stock Fund
24 Federal Street
Boston, MA 02110
- --------------------------------------------------------------------------------
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its sales charges and
expenses. Please read the prospectus carefully before you invest or send money.
- --------------------------------------------------------------------------------
M-STSRC-8/97
