<PAGE>
[LOGO OF EATON VANCE MUTUAL FUNDS APPEARS HERE]
Investing [PHOTO OF CALCULATOR APPEARS HERE]
for the
21st
Century(R)
Semiannual Report June 30, 1998
[PHOTO OF FLAG APPEARS HERE] EATON VANCE
UTILITIES
FUND
Eaton Vance
Global Management-Global Distribution
[PHOTO OF STOCK EXCHANGE APPEARS HERE]
<PAGE>
Eaton Vance Utilities Fund as of June 30, 1998
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INVESTMENT UPDATE
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[PHOTO OF TIMOTHY P. O'BRIEN PORTFOLIO MANAGER APPEARS HERE]
Timothy P. O'Brien
Portfolio Manager
Investment Environment
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The Economy
. In the first half of 1998, the U.S. economy continued to benefit from a
confluence of favorable trends, including good growth, historically low
unemployment, and tame inflation.
. Gross Domestic Product increased by a moderate 1.4% in the second quarter,
while the unemployment rate declined from 4.7% in December, 1997, to 4.5% in
June, 1998. On the inflation front, the Consumer Price Index rose just 1.6%
in the year ended June, 1998.
. Investors continue to evaluate the potential effect of the Asian economic
crisis on the U.S. economy. Thus far in 1998, lower prices for Asian imports
have led to lower prices for imported manufactured goods, contributing to
already low inflation.
The Stock Market
. The U.S. stock market surged to record levels in the first six months of the
year, with the S&P500 Index registering a total return of 17.7%.* The
market's strength reflected the favorable economic backdrop, a good earnings
outlook, and a continuing flight to quality among global investors.
. The S&P Utility Index rose 7.0%* The period was characterized by growing
consolidation within the local phone and electric utility sectors. Among
local access providers, regional Bell operating companies sought to forge
strategic alliances in an increasingly competitive market. Meanwhile, among
electric utilities, portfolio holding Long Island Lighting merged with
Brooklyn Union Gas Co., while Sierra Pacific Resources announced plans to
merge with Nevada Power Company.
. The telecom sector was marked by efforts to merge the technologies of cable,
Internet and long distance phone services. Worldcom, Inc. received
conditional approval in Europe and the U.S. to purchase MCI Communications
Corp., while AT&T announced plans to purchase cable television leader
Telecommunications, Inc.
The Fund
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The Past Six Months
. During the six months ended June 30, 1998, the Fund's Class A shares had a
total return of 15.1%. This return resulted from an increase in net asset
value (NAV) to $9.53 per share on June 30, 1998 from $8.45 on December 31,
1997 and the reinvestment of $0.145 in dividends and $0.037 in capital gain
distributions.1
. The Fund's Class B shares had a total return of 14.6% during the period, the
result of an increase in NAV to $10.91 per share from $9.67 per share and
the reinvestment of $0.127 in dividends and $0.037 in capital gain
distributions.1
. The Fund's Class C shares had a total return of 14.7% during the period, the
result of an increase in NAV to $11.53 per share from $10.19 per share and
the reinvestment of $0.108 in dividends and $0.037 in capital gain
distributions.1
. By comparison, the average total return for mutual funds in the Lipper
Utility Funds Category was 8.4% for the same period.*
Portfolio Strategy
. The Fund's outperformance was attributable, in part, to an increase in its
exposure to European utilities. The Portfolio's largest holding, Energis, is
a U.K.-based, long-distance fiber optic company. Foreign electric utilities
included PowerGen PLC and National Grid Group PLC of the U.K., as well as
Electricidade de Portugal. These companies have each benefited from surging
economic growth in Europe.
. The Portfolio also added to its investments in the telecom sector. Regional
Bell companies enjoyed increases in telephone lines, as well as demand for
new services such as call waiting and phone mail. SBC Communications, Inc.
announced plans to acquire Ameritech Corp. The combined company is expected
to be a powerhouse phone service provider.
. The Portfolio benefited from a reduction of its investments in real estate
investment trusts (REITs). The Portfolio's largest REIT holding, Excel
Realty Trust, is retail-oriented. Excel recently announced plans to merge
with New Plan Realty Trust.
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Fund Information ---------------------------------------
as of June 30, 1998 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.
---------------------------------------
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Performance/2/ Class A Class B Class C
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Average Annual Total Returns (at net asset value)
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One Year 26.7% 25.6% 25.1%
Five Years 9.3 N.A. N.A.
Ten Years 12.3 N.A. N.A.
Life of Fund+ 14.2 9.7 9.3
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
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One Year 19.4% 20.6% 24.1%
Five Years 8.0 N.A. N.A.
Ten Years 11.6 N.A. N.A.
Life of Fund+ 13.8 9.4 9.3
Ten Largest Holdings/3/
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Energis 11.9%
BellSouth Corp. 5.6
SBC Communications, Inc. 4.9
NIPSCO Industries, Inc. 4.0
National Grid Group PLC. 3.7
DQE, Inc. 3.6
Pinnacle West Capital Corp. 3.5
MCI Communications Corp. 3.2
Excel Realty Trust, Inc. 3.1
DPL, Inc. 3.0
/1/This return does not include the maximum 5.75% sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for Class B
and C shares. /2/ Returns are historical and are calculated by determining the
percentage change in net asset value with all distributions reinvested. SEC
returns for Class A reflect the maximum 5.75% sales charge. SEC returns for
Class B reflect applicable CDSC based on the following schedule: 5% - 1st and
2nd years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. SEC 1-
Year return for Class C reflects 1% CDSC. /3/ As of 6/30/98; may not be
representative of the Portfolio's current or future investments. The ten largest
holdings accounted for 46.5% of the Portfolio's investments. *It is not possible
to invest directly in an Index or Lipper Category.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
+ Inception Dates - Class A: 12/18/81; Class B: 11/1/93; Class C:11/1/93
2
<PAGE>
Eaton Vance Utilities Fund as of June 30, 1998
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
As of June 30, 1998
Assets
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Investment in Utilities Portfolio, at value
(identified cost, $342,250,914) $449,268,373
Receivable for Fund shares sold 55,953
Deferred organization expenses 16,002
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Total assets $449,340,328
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Liabilities
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Payable for Fund shares redeemed $ 518,400
Payable to affiliate for Trustees' fees 1,900
Other accrued expenses 362,734
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Total liabilities $ 883,034
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Net Assets $448,457,294
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Sources of Net Assets
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Paid-in capital $277,541,581
Accumulated undistributed net realized
gain from Portfolio (computed on
the basis of identified cost) 10,883,166
Accumulated undistributed net investment income 53,015,088
Net unrealized appreciation of investments from Portfolio
(computed on the basis of identified cost) 107,017,459
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Total $448,457,294
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Class A Shares
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Net Assets $399,463,981
Shares Outstanding 41,918,461
Net Asset Value and Redemption Price Per Share
(net assets / shares of beneficial
interest outstanding) $ 9.53
Maximum Offering Price Per Share
(100 / 94.25 of $9.53) $ 10.11
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Class B Shares
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Net Assets $ 45,308,696
Shares Outstanding 4,153,516
Net Asset Value, Offering Price and
Redemption Price Per Share
(net assets / shares of beneficial $ 10.91
interest outstanding)
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Class C Shares
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Net Assets $ 3,684,617
Shares Outstanding 319,700
Net Asset Value, Offering Price and
Redemption Price Per Share
(net assets / shares of beneficial $ 11.53
interest outstanding)
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On sales of $50,000 or more, the offering price of Class A shares is reduced.
Statement of Operations
For the Six Months Ended
June 30, 1998
Investment Income
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Dividends allocated from Portfolio
(net of foreign taxes, $532,837) $ 8,593,465
Interest allocated from Portfolio 1,272,933
Expenses allocated from Portfolio (2,213,252)
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Net investment income from Portfolio $ 7,653,146
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Expenses
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Trustees fees and expenses $ 1,020
Distribution and service fees
Class A 421,059
Class B 216,594
Class C 18,991
Transfer and dividend disbursing agent fees 323,560
Custodian fee 18,293
Registration fees 9,972
Legal and accounting services 8,164
Amortization of organization expenses 7,920
Printing and postage 1,544
Miscellaneous 23,491
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Total expenses $ 1,050,608
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Net investment income $ 6,602,538
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Realized and Unrealized
Gain (Loss) from Portfolio
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Net realized gain (loss) --
Investment transactions (identified cost basis) $ 13,870,161
Foreign currency transactions (11,867)
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Net realized gain $ 13,858,294
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Change in unrealized appreciation (depreciation) --
Investments $ 40,129,132
Foreign currency (8,580)
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Net change in unrealized appreciation (depreciation) $ 40,120,552
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Net realized and unrealized gain $ 53,978,846
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Net increase in net assets from operations $ 60,581,384
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See notes to financial statements
3
<PAGE>
Eaton Vance Utilities Fund as of June 30, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
Six Months Ended
Increase (Decrease) June 30, 1998 Year Ended
in Net Assets (Unaudited) December 31, 1997
--------------------------------------------------------------------
From operations --
Net investment income $ 6,602,538 $ 15,333,965
Net realized gain 13,858,294 30,231,475
Net change in
unrealized appreciation
(depreciation) 40,120,552 10,978,552
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Net increase in net assets
from operations $ 60,581,384 $ 56,543,992
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Distributions to
shareholders --
From net investment income
Class A $ (6,205,266) $ (14,226,568)
Class B (541,849) --
Class C (37,935) --
From net realized gain
Class A (1,582,078) (52,023,235
Class B (157,576) --
Class C (12,962) --
In excess of net realized gain
Class A -- (1,753,904)
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Total distributions
to shareholders $ (8,537,666) $ (68,003,707)
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Transactions in shares of
beneficial interest --
Proceeds from sale
of shares
Class A $ 2,362,516 $ 35,611,098
Class B 2,015,317 --
Class C 314,850 --
Net asset value of
shares issued to
shareholders in
payment of
distributions declared
Class A 5,937,366 53,794,284
Class B 564,092 --
Class C 43,019 --
Cost of shares redeemed
Class A (25,599,290) (109,462,155)
Class B (4,772,508) --
Class C (862,844) --
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Net decrease in net
assets from Fund
share transactions $ (19,997,482) $ (20,056,773)
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Contribution from EV
Classic and Marathon
Total Return Funds $ 45,953,631 $ --
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Net increase (decrease)
in net assets $ 77,999,867 $ (31,516,488)
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At beginning of
period $ 370,457,427 $ 401,973,915
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At end of period $ 448,457,294 $ 370,457,427
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Accumulated undistributed
net investment income
included in net assets
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At end of period $ 53,015,088 $ 53,129,951
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See notes to financial statements
4
<PAGE>
Eaton Vance Utilities Fund as of June 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Six Months Ended Year Ended December 31,
June 30, 1998 --------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993
----------------------------- --------------------------------------------------
Class A Class B Class C Class A Class A Class A Class A Class A
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value -- Beginning
of period $ 8.450 $ 9.670 $ 10.190 $ 8.770 $ 9.130 $ 7.630 $ 9.140 $ 9.360
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Income (loss) from operations
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Net investment income $ 0.196 $ 0.122 $ 0.131 $ 0.409 $ 0.626 $ 0.523 $ 0.545 $ 0.363
Net realized and unrealized
gain (loss) 1.066 1.282 1.354 0.887 (0.014)++ 1.520 (1.667) 0.552
- ------------------------------------------------------------------------------------------------------------------
Total income (loss) from
operations $ 1.262 $ 1.404 $ 1.485 $ 1.296 $ 0.612 $ 2.043 $ (1.122) $ 0.915
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Less distributions
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From net investment income $ (0.145) $ (0.127) $ (0.108) $ (0.331)$ (0.522) $ (0.364) $ (0.388) $ (0.465)
In excess of net investment -- -- -- -- -- (0.039) -- --
income
From net realized gain (0.037) (0.037) (0.037) (1.243) (0.450) (0.078) -- (0.654)
In excess of net realized gain -- -- -- (0.042) -- (0.062) -- (0.016)
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Total distributions $ (0.182) $ (0.164) $ (0.145) $ (1.616) $ (0.972) $ (0.543) $ (0.388) $ (1.135)
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Net asset value -- End of
period $ 9.530 $ 10.910 $ 11.530 $ 8.450 $ 8.770 $ 9.130 $ 7.630 $ 9.140
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Total Return /(1)/ 15.07% 14.63% 14.66% 16.18% 7.00% 27.52% (12.28)% 9.49%
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Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------
Net assets, end of period $399,464 $ 45,309 $ 3,685 $370,457 $401,974 $457,879 $445,133 $629,514
(000's omitted)
Ratios (As a percentage of
average daily net assets): 1.42%+ 2.19%+ 2.20%+ 1.13% 1.23% 1.19% 1.18% 1.11%
Operating expenses /(2)/
Interest expense -- -- -- -- -- -- -- 0.20%
Net investment income 3.12%+ 2.36%+ 2.36%+ 4.06% 5.59% 4.49% 4.90% 4.64%
Portfolio turnover /(3)/ -- -- -- -- -- -- -- 63%
- ------------------------------------------------------------------------------------------------------------------
Leverage Analysis /(4)/
- ------------------------------------------------------------------------------------------------------------------
Average daily balance of debt $29,906
outstanding during period
Average weekly balance of shares 61,377
outstanding during period
Average amount of debt per share $ 0.487
during period
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
++ The per share amount is not in accordance with the net realized and
unrealized gain (loss) for the period because of the timing of sales of
Fund shares and the amount of the per share realized and unrealized gains
and losses at such time.
/(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 reinvestment date. Total return
is not computed on an annualized basis.
/(2)/ Includes the Fund's share of its Portfolio's allocated expenses.
/(3)/ Portfolio Turnover represents the rate of portfolio activity for the
period while the Fund was making investments directly in securities. The
portfolio turnover rate for the period since the Fund transferred all of
its investable assets to the Portfolio is shown in the Portfolio's
financial statements which are included elsewhere in this report.
/(4)/ The Leverage Analysis is for the period January 1 to October 27, 1993,
when the Fund transferred the line of credit to the Portfolio. The
analysis for all subsequent years and the six months ended June 30, 1998
is shown in the Portfolio's financial statements which are included
elsewhere in this report.
See notes to financial statements
5
<PAGE>
Eaton Vance Utilities Fund as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
------------------------------------------------------------------------------
Eaton Vance Utilities Fund (the Fund), (formerly Eaton Vance Total Return
Fund), is a non-diversified 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 is a series of the Eaton Vance Special Investment Trust (the Trust). The
Fund offers three classes of shares. Class A shares are sold subject to a
sales charge imposed at the time of purchase. Class B and Class C shares are
sold at net asset value and are subject to a contingent deferred sales charge
(see Note 6). All classes of shares have equal rights to assets and voting
privileges. Realized and unrealized gains and losses and net investment
income, other than class specific expenses, are allocated daily to each class
of shares based on the relative net assets of each class to the total net
assets of the Fund. Each class of shares differs in its distribution plan and
certain other class specific expenses. The Fund invests all of its investable
assets in interests in the Utilities 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 (100.0% at June 30, 1998). 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 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 determined in accordance with generally accepted
accounting principles.
C Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable income, including any
net realized gain on investments. Accordingly, no provision for federal income
or excise tax is necessary.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Fund and the Portfolio. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Fund or the Portfolio maintains with
IBT. All significant credit balances used to reduce the Fund's custodian fees
are reflected as a reduction of operating expenses on the Statement of
Operations.
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 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 revenue 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, 1998 and 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 policy is to distribute monthly substantially all of the net
investment income allocated to the Fund by the Portfolio (less the Fund's
direct expenses) and to distribute at least annually substantially all of its
net realized capital gains. 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
6
<PAGE>
Eaton Vance Utilities Fund as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
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 over
distributions only for financial statement purposes are classified as
distributions in excess of net investment income or net realized gain on
investments. Permanent differences between book and tax accounting relating
to distributions are reclassified to paid-in capital.
3 Shares of Beneficial Interest
------------------------------------------------------------------------------
The Fund's 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:
Six Months Ended
June 30, 1998 Year Ended
Class A (Unaudited) December 31, 1997
------------------------------------------------------------------------------
Sales 259,566 4,081,005
Issued to shareholders electing to
receive payment of distributions
in Fund shares 658,339 6,457,940
Redemptions (2,821,315) (12,559,429)
------------------------------------------------------------------------------
Net decrease (1,903,410) (2,020,484)
------------------------------------------------------------------------------
Six Months Ended
June 30, 1998
Class B (Unaudited)
------------------------------------------------------------------------------
Sales 191,644
Issued to shareholders electing to
receive payment of distributions in
Fund shares 54,659
Redemptions (457,833)
Issued to EV Marathon Total Return
Fund shareholders 4,365,046
------------------------------------------------------------------------------
Net increase 4,153,516
------------------------------------------------------------------------------
Six Months Ended
June 30, 1998
Class C (Unaudited)
------------------------------------------------------------------------------
Sales 28,098
Issued to shareholders electing to receive payment
of distributions in Fund shares 3,938
Redemptions (77,828)
Issued to EV Classic Total Return
Fund shareholders 365,492
------------------------------------------------------------------------------
Net increase 319,700
------------------------------------------------------------------------------
4 Transactions with Affiliates
------------------------------------------------------------------------------
Eaton Vance Management (EVM) serves as the administrator of the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 2 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. Eaton Vance Distributors, Inc. (EVD), a subsidiary of
EVM and the Fund's principal underwriter, received $12,398 from the Eaton
Vance Utilities Fund as its portion of the sales charge on sales of Class A
shares for the six months ended June 30, 1998.
Certain of the officers and Trustees of the Fund and the Portfolio are
officers and directors/trustees of the above organizations.
5 Distribution Plan
------------------------------------------------------------------------------
The Fund has adopted distribution plans (Class B Plan and Class C Plan)
pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a service
plan (Class A Plan, the Plans). The Plans require the Fund to pay the
Principal Underwriter, Eaton Vance Distributors, Inc. (EVD) amounts equal to
1/365 of 0.75% of the Fund's average daily net assets attributable to Class B
and Class C shares 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) 5.00% and 6.25% of the aggregate
amount received by the Fund for the Class B and Class C shares sold,
respectively, plus (ii) distribution fees
7
<PAGE>
Eaton Vance Utilities Fund as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
calculated by applying the rate of 1% over the prevailing prime rate to the
outstanding balance of Uncovered Distribution Charges of EVD of each
respective class reduced by the aggregate amount of contingent deferred sales
charges (see Note 6) and daily amounts theretofore paid to EVD by each
respective class. The Fund paid or accrued $163,834 and $14,243 for Class B
and Class C shares, respectively, to EVD for the six months ended June 30,
1998 representing 0.75% (annualized) of the average daily net assets for
Class B and Class C shares. At June 30, 1998, the amount of Uncovered
Distribution Charges of EVD calculated under the Plan was approximately
$533,632 and $750,892 for Class B and Class C shares, respectively.
In addition, the Plans also authorize each Class to make payments of service
fees to EVD, Authorized Firms and other persons in amounts not exceeding
0.25% of the Fund's average daily net assets attributable to Class A (Service
Plan), Class B and Class C shares for each fiscal year. The Trustees have
initially implemented the Plans by authorizing the Fund to make quarterly
payments of service fees to EVD and Authorized Firms in amounts not expected
to exceed 0.25% per annum of the Fund's average daily net assets attributable
to Class A and Class B shares based on the value of Fund shares sold by such
persons and remaining outstanding for at least twelve months. The Class C
Plan requires the Fund to make monthly payments of service fees in amounts
not expected to exceed 0.25% of the Fund's average daily net assets
attributable to Class C shares for any fiscal year. Service fee payments are
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 when there are no outstanding Uncovered Distribution
Charges of EVD. Service fee payments for the six months ended June 30, 1998
amounted to $421,059, $52,760 and $4,748 for Class A, Class B and Class C
shares, respectively.
6 Contingent Deferred Sales Charge
------------------------------------------------------------------------------
A contingent deferred sales charge (CDSC) is imposed on any redemption of
Class B shares made within six years of purchase. A CDSC of 1% is imposed on
any redemption of Class C shares made within one year 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. For Class B shares purchased prior
to August 1, 1994, the CDSC was imposed at declining rates that begin at 6% in
the first year of redemption after purchase, declining one percentage point
each year. For Class B shares purchased on or after August 1, 1994, the CDSC
is imposed at declining rates beginning at 5% in the first and second years of
redemption after purchase, declining one percentage point in each subsequent
year. No CDSC is levied on shares which have been sold to EVM or its
affiliates or to their respective employees or clients. CDSC charges are paid
to EVD to reduce the amount of Uncovered Distribution Charges calculated under
the Fund's Distribution Plans. CDSC charges received when no Uncovered
Distribution Charges exist will be credited to the Fund. EVD received
approximately $34,761 and $683 of CDSC paid by shareholders for Class B shares
and Class C shares, respectively, for the six months ended June 30, 1998.
7 Investment Transactions
------------------------------------------------------------------------------
Increases and decreases in the Fund's investments in the Portfolio for the
six months ended June 30, 1998, aggregated $12,840,778 and $38,613,273,
respectively.
8 Transfer of Net Assets
------------------------------------------------------------------------------
On January 1, 1998, EV Traditional Total Return Fund acquired the net assets
of EV Marathon Total Return Fund and EV Classic Total Return Fund pursuant to
an Agreement and Plan of Reorganization dated June 23, 1997. In accordance
with the agreement, EV Traditional Total Return Fund, at the closing, issued
4,365,046 Class B shares and 365,492 Class C shares of the Fund having an
aggregate value of $42,228,739 and $3,724,892 respectively. As a result, the
Fund issued one Class B share for each share of EV Marathon Total Return Fund
and one Class C share for each share of EV Classic Total Return Fund. The
transaction was structured for tax purposes to qualify as a tax free
reorganization under the Internal Revenue Code. The EV Marathon Total Return
Fund's and EV Classic Total Return Fund's net assets at the date of the
transaction were $42,228,739 and $3,724,892, respectively, including
$6,799,057 and $627,601 of unrealized appreciation. Directly after the
merger, the combined net assets of the Eaton Vance Utilities Fund (formerly
"EV Traditional Total Return Fund") were $416,411,058 with a net asset value
of $8.45, $9.67, and $10.19 for Class A, Class B and Class C shares,
respectively.
9 Name Change
------------------------------------------------------------------------------
Effective January 1, 1998, EV Traditional Total Return Fund changed its name
to Eaton Vance Total Return Fund. Effective May 1, 1998, Eaton Vance Total
Return Fund changed its name to Eaton Vance Utilities Fund.
8
<PAGE>
Utilities Portfolio as of June 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Common Stocks -- 77.5%
Security Shares Value
- --------------------------------------------------------------------------------
Broadcasting and Cable -- 0.7%
- --------------------------------------------------------------------------------
Ovation, Inc.*+ 285,787 $3,000,764
- --------------------------------------------------------------------------------
$3,000,764
- --------------------------------------------------------------------------------
Drugs -- 0.9%
- --------------------------------------------------------------------------------
Sepracor, Inc.* 100,000 $4,150,000
- --------------------------------------------------------------------------------
$4,150,000
- --------------------------------------------------------------------------------
Electric Utilities -- 27.2%
- --------------------------------------------------------------------------------
Cilcorp, Inc. 130,000 $6,240,000
Cleco Corp. 230,000 6,842,500
DPL, Inc. 750,000 13,593,750
DQE, Inc. 450,000 16,200,000
Electric de Portugal ADR 80,000 3,685,000
Endesa S.A. ADR 100,000 2,162,500
National Grid Group PLC++ 2,450,000 16,514,715
Niagara Mohawk Power Corp.* 300,000 4,481,250
NIPSCO Industries, Inc. 650,000 18,200,000
Pinnacle West Capital Corp. 350,000 15,750,000
PowerGen PLC++ 650,000 9,001,525
Sierra Pacific Resources 150,000 5,446,875
Southern Electric++ 450,000 4,155,795
- --------------------------------------------------------------------------------
$122,273,910
- --------------------------------------------------------------------------------
Information Services -- 0.2%
- --------------------------------------------------------------------------------
Informission Group, Inc.*++ 112,800 $1,043,197
- --------------------------------------------------------------------------------
$1,043,197
- --------------------------------------------------------------------------------
Natural Gas Utilities -- 3.8%
- --------------------------------------------------------------------------------
KN Energy, Inc. 235,000 $12,734,063
Marketspan Corp. 154,000 4,610,375
- --------------------------------------------------------------------------------
$17,344,438
- --------------------------------------------------------------------------------
Oil and Gas - Exploration
and Production -- 2.1%
- --------------------------------------------------------------------------------
EEX Corp.* 800,000 $7,500,000
Louis Dreyfus Natural Gas* 50,000 946,875
Meridian Resource Corp.* 130,000 918,125
- --------------------------------------------------------------------------------
$9,365,000
- --------------------------------------------------------------------------------
Real Estate -- 0.5%
- --------------------------------------------------------------------------------
Excel Legacy Corp.* 485,000 $2,121,875
- --------------------------------------------------------------------------------
$2,121,875
- --------------------------------------------------------------------------------
REITS -- 12.9%
- --------------------------------------------------------------------------------
Annaly Mortgage, Inc. 144A 350,000 $3,193,750
Criimi Mae, Inc. 450,000 6,243,750
Equity Office Properties Trust 150,000 4,256,250
Excel Realty Trust, Inc. 480,000 13,830,000
Ocwen Asset Investment Corp. 183,600 3,040,875
Prime Group Realty Trust 280,000 4,795,000
Prime Retail, Inc. 98,000 1,169,875
Security Capital US Realty Trust* 600,000 7,980,000
Sunstone Hotel Investors, Inc. 327,000 4,353,188
Tower Realty Trust, Inc. 140,000 3,132,500
Vornado Realty Trust 150,000 5,953,125
- --------------------------------------------------------------------------------
$57,948,313
- --------------------------------------------------------------------------------
Telephone Utilities -- 29.2%
- --------------------------------------------------------------------------------
Ameritech Corp. 60,000 $2,692,500
BellSouth Corp. 375,000 25,171,875
Comcast UK Cable Partners Ltd.* 200,000 3,137,500
Energis*++ 3,500,000 53,287,499
MCI Communications Corp. 250,000 14,531,250
Orange PLC*++ 300,000 3,178,470
SBC Communications, Inc. 550,000 22,000,000
Worldcom, Inc.* 150,000 7,265,625
- --------------------------------------------------------------------------------
$131,264,719
- --------------------------------------------------------------------------------
Total Common Stocks
(identified cost $239,027,373) $348,512,216
- --------------------------------------------------------------------------------
Convertible Preferred Stocks -- 9.1%
Security Shares Value
- --------------------------------------------------------------------------------
Gas Utilities -- 2.8%
- --------------------------------------------------------------------------------
El Paso Energy Capital Trust 240,000 $12,720,000
- --------------------------------------------------------------------------------
$12,720,000
- --------------------------------------------------------------------------------
REITS -- 1.4%
- --------------------------------------------------------------------------------
Vornado Realty Trust 40,000 $ 2,295,000
Walden Residential 130,000 3,705,000
- --------------------------------------------------------------------------------
$ 6,000,000
- --------------------------------------------------------------------------------
See notes to financial statements
9
<PAGE>
Utilities Portfolio as of June 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security Shares Value
- --------------------------------------------------------------------------------
Telephone Utilities -- 4.9%
Intermedia Communications, Inc. 144A 225,000 $ 12,459,345
Omnipoint Corp. 200,000 9,650,000
- --------------------------------------------------------------------------------
$ 22,109,345
- --------------------------------------------------------------------------------
Total Convertible Preferred Stocks
(identified cost $32,676,722) $ 40,829,345
- --------------------------------------------------------------------------------
Warrants -- 0.1%
Security Shares Value
- --------------------------------------------------------------------------------
REITS -- 0.1%
- --------------------------------------------------------------------------------
Walden Residential Warrants* 340,000 $ 340,000
- --------------------------------------------------------------------------------
$ 340,000
- --------------------------------------------------------------------------------
Total Warrants
(identified cost $0) $ 340,000
- --------------------------------------------------------------------------------
Convertible Bonds -- 7.8%
Principal
Amount
Security (000's omitted) Value
- --------------------------------------------------------------------------------
Bell Atlantic Financial Services, 144A,
5.75%, 4/1/03 $ 5,000 $ 5,125,000
Loews Corp., 3.125%, 9/15/07 10,000 9,237,500
Midcom Communications, 144A,
8.25%, 8/15/03+++* 10,000 1,637,500
National Grid Co., 4.25%, 2/17/08++ 800 1,494,253
Ovation, Inc., 9.75%, 2/23/01+ 2,500 2,500,000
Smartalk Teleservices, 144A,
5.75%, 9/15/04 18,000 14,955,000
- --------------------------------------------------------------------------------
Total Convertible Bonds
(identified cost $47,561,531) $ 34,949,253
- --------------------------------------------------------------------------------
Corporate Bonds -- 3.0%
Principal
Amount
Security (000's omitted) Value
- --------------------------------------------------------------------------------
Bank Plus Corp., 12.00%, 7/18/07 $ 10,625 $ 12,165,625
Orbital Sciences 144A, 5.00%, 10/1/02 1,000 1,493,750
- --------------------------------------------------------------------------------
Total Corporate Bonds
(identified cost $12,018,750) $ 13,659,375
- --------------------------------------------------------------------------------
Commercial Paper -- 0.6%
Principal
Amount
Security (000's omitted) Value
- --------------------------------------------------------------------------------
General Electric Capital Corp., 6.10%, 7/1/98 $ 2,652 $ 2,652,000
- --------------------------------------------------------------------------------
Total Commercial Paper
(amortized cost $2,652,000) $ 2,652,000
- --------------------------------------------------------------------------------
Total Investments -- 98.1%
(identified cost $333,936,376) $440,942,189
- --------------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.9% $ 8,326,208
- --------------------------------------------------------------------------------
Net Assets -- 100% $449,268,397
- --------------------------------------------------------------------------------
ADR - American Depositary Receipt
* Non-income producing security.
+ Valued in good faith at fair value using procedures approved by the Trustees
(see note 1A of Notes to Financial Statements).
++ Foreign security.
+++ The issuer has filed for chapter 11 bankruptcy.
See notes to financial statements
10
<PAGE>
Utilities Portfolio as of June 30, 1998
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
As of June 30, 1998
Assets
- ----------------------------------------------------------
Investments, at value
(identified cost, $333,936,376) $440,942,189
Cash 1,284
Receivable for investments sold 8,761,105
Dividends and interest receivable 3,041,503
Miscellaneous receivable 15,213
Tax reclaim receivable 54,680
Deferred organization expenses 510
- ----------------------------------------------------------
Total assets $452,816,484
- ----------------------------------------------------------
Liabilities
- ----------------------------------------------------------
Payable for investments purchased $ 3,439,911
Payable to affiliate for Trustees' fees 11,080
Other accrued expenses 97,096
- ----------------------------------------------------------
Total liabilities $ 3,548,087
- ----------------------------------------------------------
Net Assets applicable to investors'
interest in Portfolio $449,268,397
- ----------------------------------------------------------
Sources of Net Assets
- ----------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $342,250,938
Net unrealized appreciation (computed
on the basis of identified cost) 107,017,459
- ----------------------------------------------------------
Total $449,268,397
- ----------------------------------------------------------
Statement of Operations
For the Six Months
Ended June 30, 1998
Investment Income
- ----------------------------------------------------------
Dividends (net of foreign taxes,
$532,837) $ 8,593,466
Interest 1,272,933
- ----------------------------------------------------------
Total investment income $ 9,866,399
- ----------------------------------------------------------
Expenses
- ----------------------------------------------------------
Investment adviser fee $ 1,424,166
Trustees fees and expenses 21,055
Custodian fee 118,986
Legal and accounting services 32,667
Amortization of organization expenses 2,082
Interest expense 614,296
- ----------------------------------------------------------
Total expenses $ 2,213,252
- ----------------------------------------------------------
Net investment income $ 7,653,147
- ----------------------------------------------------------
Realized and Unrealized
Gain (Loss)
- ----------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 13,870,161
Foreign currency transactions (11,867)
- ----------------------------------------------------------
Net realized gain $ 13,858,294
- ----------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 40,129,132
Foreign currency (8,580)
- ----------------------------------------------------------
Net change in unrealized appreciation
(depreciation) $ 40,120,552
- ----------------------------------------------------------
Net realized and unrealized gain $ 53,978,846
- ----------------------------------------------------------
Net increase in net assets from
operations $ 61,631,993
- ----------------------------------------------------------
See notes to financial statements
11
<PAGE>
Utilities Portfolio as of June 30, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
Six Months Ended
Increase (Decrease) June 30, 1998 Year Ended
in Net Assets (Unaudited) December 31, 1997
- --------------------------------------------------------------------------------
From operations --
Net investment income $ 7,653,147 $ 18,943,635
Net realized gain 13,858,294 34,486,025
Net change in unrealized
appreciation (depreciation) 40,120,552 12,004,904
- --------------------------------------------------------------------------------
Net increase in net assets
from operations $ 61,631,993 $ 65,434,564
- --------------------------------------------------------------------------------
Capital transactions --
Contributions $ 12,840,778 $ 47,969,480
Withdrawals (38,613,273) (155,062,140)
- --------------------------------------------------------------------------------
Net decrease in net assets from
capital transactions $ (25,772,495) $(107,092,660)
- --------------------------------------------------------------------------------
Net increase (decrease)
in net assets $ 35,859,498 $ (41,658,096)
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of period $ 413,408,899 $ 455,066,995
- --------------------------------------------------------------------------------
At end of period $ 449,268,397 $ 413,408,899
- --------------------------------------------------------------------------------
See notes to financial statements
12
<PAGE>
Utilities Portfolio as of June 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
June 30, 1998 --------------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993*
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets
- ----------------------------------------------------------------------------------------------------------------------
Expenses 1.02%+ 0.75% 0.85% 0.84% 0.85% 0.91%+
Net investment income 3.52%+ 4.42% 5.94% 4.83% 5.22% 4.57%+
Portfolio turnover 30% 169% 166% 103% 107% 16%
- ----------------------------------------------------------------------------------------------------------------------
Leverage Analysis:
- ----------------------------------------------------------------------------------------------------------------------
Average daily balance of debt
outstanding during
period (000's omitted) $21,699 $ 922 $ 217 $ 232 $3,137 $15,452
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $449,268 $413,409 $455,067 $521,670 $505,567 $636,567
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the period from the start of business, October 28, 1993, to December 31,
1993.
See notes to financial statements
13
<PAGE>
Utilities Portfolio as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
- --------------------------------------------------------------------------------
Utilities Portfolio (the Portfolio), (formerly the Total Return Portfolio),
is registered under the Investment Company Act of 1940 as a diversified
open-end management investment company which was organized as a trust under
the laws of the State of New York 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 securities exchanges or in
the NASDAQ National Market are valued at closing sales prices or, if there
has been no sale, at the mean between the closing bid and asked prices.
Unlisted securities are valued at the mean between the latest available bid
and asked prices. Options and financial futures contracts are valued at the
last sale price, as quoted on the principal exchange or board of trade on
which such options or contracts are traded or, in the absence of a sale, the
mean between the last bid and asked prices. Short-term obligations, maturing
in 60 days or less, are valued at amortized cost, which approximates value.
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 are appraised at their fair value as
determined in good faith by or at the direction of the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes. Dividend income is recorded on the ex-dividend date for
dividends received in cash and/or securities. 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. Dividend income may
include dividends that represent returns of capital for federal income tax
purposes.
C Income 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 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.
D Foreign Currency Translation -- Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing on
the respective dates of such transactions. Recognized gains or losses on
investment transactions attributable to foreign currency rates are recorded
for financial statement purposes as net realized gains and losses on
investments. That portion of unrealized gains and losses on investments that
result from fluctuations in foreign currency exchange rates are not
separately disclosed.
E 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 on the Statement of Operations.
F Option Accounting Principles -- Upon the writing of a covered call option,
an amount equal to the premium received by the Portfolio is included in the
Statement of Assets and Liabilities as a liability. The amount of the
liability is subsequently marked-to-market to reflect the current market
value of the option written in accordance with the Portfolio's policies on
investment valuations discussed above. Premiums received from writing call
options which expire are treated as realized gains. Premiums received from
writing call options which are exercised or are closed are added to or offset
against the proceeds or amount paid on the transaction to determine the
realized gain or loss. The Portfolio, as writer of a call option, may have no
control over whether the underlying securities may be sold and, as a result,
bears the market
14
<PAGE>
Utilities Portfolio as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
risk for an unfavorable change in the price of the securities underlying the
written option.
G Financial Futures Contracts -- Upon the entering of a financial futures
contract, the Portfolio is required to deposit an amount ("initial margin")
either in cash or securities equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by the Portfolio ("margin maintenance") each day, dependent
on the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by the Portfolio.
The Portfolio's investment in financial futures contracts is designed only to
hedge against anticipated future changes in interest rates, security prices,
commodity prices or currency exchange rates. Should interest rates, security
prices, commodity prices 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 the financial futures contract to buy.
H Delayed Delivery Transactions -- The Portfolio may purchase or sell
securities on a when-issued or forward commitment basis. Payment and delivery
may take place at a period in time after the date of the transaction. At the
time the transaction is negotiated, the price of the security that will be
delivered and paid for is fixed. Losses may arise due to changes in the
market value of the underlying securities if the counterparty does not
perform under the contract.
I Deferred Organization Expenses -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
J Other -- Investment transactions are accounted for on a trade date basis.
K 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.
L Interim Financial Information -- The interim financial statements relating
to June 30, 1998 and 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 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 based upon a percentage of average daily net assets. For the six
months ended June 30, 1998, the fee was equivalent to 0.65% (annualized) of
the Portfolio's average daily net assets for such period and amounted to
$1,424,166. 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
directors/trustees of the above organizations. Trustees of the Portfolio that
are not affiliated with the Investment Adviser may elect to defer receipt of
all or a percentage of their annual fees in accordance with the terms of the
Trustees Deferred Compensation Plan. For the six months ended June 30, 1998,
no significant amounts have been deferred.
3 Investment Transactions
------------------------------------------------------------------------------
Purchases and sales of investments, other than short-term obligations,
aggregated $138,213,572 and $185,921,318, respectively.
4 Federal Income Tax Basis of Investments
------------------------------------------------------------------------------
The cost and unrealized appreciation/depreciation in value of the investments
owned at June 30, 1998, as computed on a federal income tax basis, were as
follows:
Aggregate cost $333,936,376
---------------------------------------------------
Gross unrealized appreciation $ 22,203,105
Gross unrealized depreciation (15,197,292)
---------------------------------------------------
Net unrealized appreciation $107,005,813
---------------------------------------------------
15
<PAGE>
Utilities Portfolio as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
5 Line of Credit
------------------------------------------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $100 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 eurodollar rate or federal funds rate. In addition, a fee
computed at an annual rate of 0.10% on the daily unused portion of the line
of credit is allocated among the participating portfolios and funds at the
end of each quarter.
6 Financial Instruments
------------------------------------------------------------------------------
The Portfolio may trade in financial instruments with off-balance sheet risk
in the normal course of its investing activities to assist in managing
exposure to various market risks. These financial instruments include written
options, forward foreign currency exchange contracts, and financial futures
contracts and may involve, to a varying degree, elements of risk in excess of
the amounts recognized for financial statement purposes. The notional or
contractual amounts of these instruments represent the investment the
Portfolio has in particular classes of financial instruments and does 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. At June 30, 1998
there were no outstanding obligations under these financial instruments.
7 Name Change
------------------------------------------------------------------------------
Effective May 1, 1998, the Total Return Portfolio changed its name to the
Utilities Portfolio.
16
<PAGE>
Eaton Vance Utilities Fund as of June 30, 1998
INVESTMENT MANAGEMENT
<TABLE>
<CAPTION>
Eaton Vance Utilities Fund
<S> <C>
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, Inc.
James L. O'Connor
Treasurer Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Alan R. Dynner Banking, Harvard University Graduate
Secretary School of Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company
Incorporated
Jack L. Treynor
Investment Adviser and Consultant
Utilities Portfolio
Officers Independent Trustees
M. Dozier Gardner Donald R. Dwight
President and Trustee President, Dwight Partners, Inc.
James B. Hawkes Samuel L. Hayes, III
Vice President and Trustee Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate
Timothy O'Brien School of Business Administration
Vice President and
Portfolio Manager Norton H. Reamer
Chairman and Chief Executive Officer,
James L. O'Connor United Asset Management Corporation
Treasurer
John L. Thorndike
Alan R. Dynner Formerly Director, Fiduciary Company
Secretary Incorporated
Jack L. Treynor
Investment Adviser and Consultant
</TABLE>
17
<PAGE>
This Page Intentionally Left Blank
<PAGE>
This Page Intentionally Left Blank
<PAGE>
Investment Adviser of
Utilities Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Administrator of
Eaton Vance Utilities 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
Eaton Vance Utilities 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.
- --------------------------------------------------------------------------------
UFSRC-2/98
