<PAGE>
INVESTING
[LOGO] FOR THE
21ST [PHOTO OF
CENTURY-Registered Trademark- THE EARTH]
SEMIANNUAL REPORT JUNE 30, 2000
EATON VANCE
[PHOTO OF ICON] GREATER
INDIA
Fund
[EATON VANCE
75TH ANNIVERSARY
LOGO]
[PHOTO OF ELEPHANT AND RIDES IN INDIA]
<PAGE>
EATON VANCE GREATER INDIA FUND as of June 30, 2000
--------------------------------------------------------------------------------
INVESTMENT UPDATE
--------------------------------------------------------------------------------
Investment Environment
--------------------------------------------------------------------------------
- Following its blistering performance in 1999, India's stock market
underwent a significant correction in the first half of 2000. Investors
were concerned about an onging drought and predictions of a drier monsoon
season. The instability of the U.S. technology sector contributed to
nervousness about the near-term outlook for India's technology companies.
- We believe that India's long-term economic outlook remains positive. The
government has estimated GDP growth in the 7% range for the current fiscal
year. Meanwhile, as corporate profits continue to improve, inflation has
slowed to the 6.4% level, allowing a modest lowering of interest rates by the
Reserve Bank of India, the nation's central bank.
- India is becoming increasingly prominent among the world's global software
powers. India's government anticipates exports of $5.5 billion in software
products in 2000. India's Ministry of Commerce predicts that software exports
will soar to $20 billion by 2008.
The Fund
--------------------------------------------------------------------------------
Performance for the Past Six Months
- The Fund's Class A shares had a total return of -22.35% during the six months
ended June 30, 2000.(1) This return resulted from a decrease in net asset
value per share (NAV) to $9.31 on June 30, 2000 from $11.99 on December 31,
1999.
- The Fund's Class B shares had a total return of -22.49% during the six months
ended June 30, 2000.(1) This return resulted from a decrease in net asset
value per share (NAV) to $9.03 on June 30, 2000 from $11.65 on December 31,
1999.
- The Bombay Stock Exchange Index -- an unmanaged index of common stocks traded
in the India market -- had a total return of -11.03% for the six months ended
June 30, 2000.(2)
RECENT PORTFOLIO DEVELOPMENTS
- Due to their strong presence in India, the software and technology industries
were predominant in the Portfolio at June 30, 2000. India is a leading
producer of software, and with the surge in Internet-related applications, it
has witnessed growing strong global demand for its products.
- Banking and finance companies have continued to play a prominent role in the
Portfolio. The banking sector has benefited from India's increasingly
sophisticated financial needs, as the nation accommodates rapid economic
growth and rising personal wealth among consumers.
- The Portfolio also contains securities issued by Pakistani companies.
Pakistan's economic growth has accelerated modestly in recent months.
Selected Portfolio Investments
- Infosys Technologies Ltd. and DSQ Software were among the Portfolio's largest
software holdings at June 30, 2000. Infosys is a major producer of financial
software and has increased its Internet applications in recent years.
DSQSoftware produces telecom and networking software and has achieved 90%
earnings and revenue growth in the past year.
- HDFC Bank Ltd., the leading provider of financing for India's housing market,
was the Portfolio's largest investment in the banking and finance area. HDFC
is also active in the fast-growing business of financing consumer durables,
such as automobiles and appliances, through a joint venture with GE Capital.
- The telecommunications sector has posted impressive growth in recent years, as
phone penetration rates have risen sharply among India's expanding middle
class. Sterlite Industries has participated in this growth as India's largest
manufacturer of copper and fiber optic telecom cable.
-------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------
Fund Information
AS OF JUNE 30, 2000
Performance(3) Class A Class B
-------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE)
-------------------------------------------------------------------------------
One Year 25.64% 24.72%
Five Years 2.77 2.15
Life of Fund+ -1.15 -1.64
SEC AVERAGE ANNUAL TOTAL RETURNS
(INCLUDING SALES CHARGE OR APPLICABLE CDSC)
-------------------------------------------------------------------------------
One Year 18.45% 19.72%
Five Years 1.55 1.78
Life of Fund+ -2.10 -1.64
+Inception date: 5/2/94
Ten Largest Equity Holdings(4)
---------------------------------------
Infosys Technologies Ltd. 10.3%
HDFC Bank Ltd. 5.7
Larsen and Toubro Ltd. 4.9
Reliance Industries Ltd. 4.8
Hindustan Lever Ltd. 4.8
Nirma Ltd. 4.7
Visualsoft (India)Ltd. 4.4
Hindalco Industries Ltd. GDR 4.4
Hughes Software Systems 4.1
Sterlite Industries Ltd. 3.6
(1) These returns do not include the 5.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC)
for the Fund's Class B shares.
(2) It is not possible to invest directly in an Index.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. SEC average
annual returns for Class A reflect a 5.75% sales charge. Class A shares
redeemed within 3 months of purchase, including exchanges, are subject to a
1% early redemption fee. Class B returns 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.
(4) Based on market value. Ten largest holdings represent 51.7% of the
Portfolio's net assets. Holdings are subject to change.
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.
2
<PAGE>
EATON VANCE GREATER INDIA FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF JUNE 30, 2000
<S> <C>
Assets
-----------------------------------------------------
Investment in South Asia Portfolio, at
value (identified cost, $25,914,037) $32,441,643
Receivable for Fund shares sold 6,522
-----------------------------------------------------
TOTAL ASSETS $32,448,165
-----------------------------------------------------
Liabilities
-----------------------------------------------------
Payable for Fund shares redeemed $ 27,220
Payable to affiliate for Trustees' fees 144
Accrued expenses 26,056
-----------------------------------------------------
TOTAL LIABILITIES $ 53,420
-----------------------------------------------------
NET ASSETS $32,394,745
-----------------------------------------------------
Sources of Net Assets
-----------------------------------------------------
Paid-in capital $30,421,328
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (4,140,145)
Accumulated net investment loss (414,044)
Net unrealized appreciation from
Portfolio (computed on the basis of
identified cost) 6,527,606
-----------------------------------------------------
TOTAL $32,394,745
-----------------------------------------------------
Class A Shares
-----------------------------------------------------
NET ASSETS $ 7,992,394
SHARES OUTSTANDING 858,301
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.31
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $9.31) $ 9.88
-----------------------------------------------------
Class B Shares
-----------------------------------------------------
NET ASSETS $24,402,351
SHARES OUTSTANDING 2,701,907
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.03
-----------------------------------------------------
</TABLE>
On sales of $50,000 or more, the offering price of Class A shares is reduced.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JUNE 30, 2000
<S> <C>
Investment Income
------------------------------------------------------
Dividends allocated from Portfolio $ 229,701
Expenses allocated from Portfolio (344,410)
------------------------------------------------------
NET INVESTMENT LOSS FROM PORTFOLIO $ (114,709)
------------------------------------------------------
Expenses
------------------------------------------------------
Management fee $ 49,754
Trustees fees and expenses 52
Distribution and service fees
Class A 24,669
Class B 150,030
Transfer and dividend disbursing agent
fees 27,565
Registration fees 10,322
Custodian fee 5,374
Legal and accounting services 5,068
Printing and postage 4,234
Miscellaneous 7,671
------------------------------------------------------
TOTAL EXPENSES $ 284,739
------------------------------------------------------
NET INVESTMENT LOSS $ (399,448)
------------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis)
(net of foreign taxes, $1,457,037) $ 5,671,207
Foreign currency transactions (156,338)
------------------------------------------------------
NET REALIZED GAIN $ 5,514,869
------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(14,693,160)
Foreign currency (21,696)
------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(14,714,856)
------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (9,199,987)
------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (9,599,435)
------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
EATON VANCE GREATER INDIA FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INCREASE (DECREASE) JUNE 30, 2000 YEAR ENDED
IN NET ASSETS (UNAUDITED) DECEMBER 31, 1999
<S> <C> <C>
-----------------------------------------------------------------------------
From operations --
Net investment loss $ (399,448) $ (1,022,732)
Net realized gain 5,514,869 20,727,743
Net change in unrealized appreciation
(depreciation) (14,714,856) 12,420,553
-----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (9,599,435) $ 32,125,564
-----------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 5,510,677 $ 7,296,226
Class B 2,296,393 3,116,855
Cost of shares redeemed
Class A (6,844,083) (10,216,411)
Class B (5,278,999) (37,106,547)
-----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (4,316,012) $ (36,909,877)
-----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (13,915,447) $ (4,784,313)
-----------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------
At beginning of period $ 46,310,192 $ 51,094,505
-----------------------------------------------------------------------------
AT END OF PERIOD $ 32,394,745 $ 46,310,192
-----------------------------------------------------------------------------
Accumulated net
investment loss included
in net assets
-----------------------------------------------------------------------------
AT END OF PERIOD $ (414,044) $ (14,596)
-----------------------------------------------------------------------------
</TABLE>
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
PERIOD ENDED
INCREASE (DECREASE) IN CASH JUNE 30, 2000
<S> <C>
-------------------------------------------------------
Cash Flows From (Used For) Operating
Activities --
Purchase of interests in South Asia
Portfolio $ (7,807,763)
Withdrawal of interests in South Asia
Portfolio 12,362,349
Operating expenses paid (304,345)
-------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES $ 4,250,241
-------------------------------------------------------
Cash Flows From (Used For) Financing
Activities --
Proceeds from shares sold $ 7,968,532
Payments for shares redeemed (12,218,773)
-------------------------------------------------------
NET CASH USED FOR FINANCING ACTIVITIES $ (4,250,241)
-------------------------------------------------------
NET INCREASE IN CASH $ --
-------------------------------------------------------
CASH AT BEGINNING OF PERIOD $ --
-------------------------------------------------------
CASH AT END OF PERIOD $ --
-------------------------------------------------------
Reconciliation of Net Decrease in Net Assets
From Operations to Net Cash From
Operating Activities
-------------------------------------------------------
Net decrease in net assets from
operations $ (9,599,435)
Decrease in payable to affiliate (1)
Decrease in accrued expenses (19,605)
Net decrease in investments 13,869,282
-------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES $ 4,250,241
-------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE GREATER INDIA FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 ------------------------
(UNAUDITED)(1) 1999(1) 1998(1)
<S> <C> <C> <C>
------------------------------------------------------------------------------
Net asset value -- Beginning
of period $11.990 $ 5.780 $ 6.340
------------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------------
Net investment loss $(0.089) $(0.165) $(0.082)
Net realized and unrealized
gain (loss) (2.591) 6.375 (0.478)
------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(2.680) $ 6.210 $(0.560)
------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.310 $11.990 $ 5.780
------------------------------------------------------------------------------
TOTAL RETURN(2) (22.35)% 107.44% (8.83)%
------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 7,992 $11,640 $ 8,031
Ratios (As a percentage of
average daily net assets):
Expenses(3) 2.82%(4) 3.26% 3.18%
Expenses after custodian
fee reduction(3) 2.79%(4) 3.24% 3.08%
Net investment loss (1.64)%(4) (2.07)% (1.38)%
Portfolio Turnover of the
Portfolio 69% 80% 60%
------------------------------------------------------------------------------
</TABLE>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE GREATER INDIA FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 --------------------------------------------------------
(UNAUDITED)(1) 1999(1) 1998(1) 1997 1996(1) 1995
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $11.650 $ 5.660 $ 6.230 $ 5.910 $ 6.550 $ 9.840
--------------------------------------------------------------------------------------------------------------
Income (loss) from operations
--------------------------------------------------------------------------------------------------------------
Net investment loss $(0.120) $(0.193) $(0.110) $(0.126) $(0.099) $(0.176)
Net realized and unrealized
gain (loss) (2.500) 6.183 (0.460) 0.446 (0.541) (3.114)
--------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(2.620) $ 5.990 $(0.570) $ 0.320 $(0.640) $(3.290)
--------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.030 $11.650 $ 5.660 $ 6.230 $ 5.910 $ 6.550
--------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (22.49)% 105.83% (9.15)% 5.42% (9.77)% (33.43)%
--------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $24,402 $34,671 $43,063 $68,812 $74,661 $21,041
Ratios (As a percentage of
average daily net assets):
Expenses(3) 3.32%(4) 3.69% 3.69% 3.08% 2.88% 3.31%
Expenses after custodian
fee reduction 3.29%(4) 3.67% 3.59% 3.05% 2.65% 2.90%
Net investment loss (2.13)%(4) (2.55)% (1.87)% (1.67)% (1.46)% (1.74)%
Portfolio Turnover of the
Portfolio 69% 80% 60% 48% 46% 38%
--------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE GREATER INDIA FUND AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
-------------------------------------------
Eaton Vance Greater India Fund (the Fund) is a mutual fund seeking long-term
capital appreciation through the purchase of an interest in a separate
investment company which invests primarily in equity securities of companies
in India and surrounding countries of the Indian sub-continent. The Fund is a
diversified series of Eaton Vance Special Investment Trust (the Trust). The
Trust is an entity of the type commonly known as a Massachusetts business
trust and is registered under the Investment Company Act of 1940, as amended,
as an open-end management investment company. The Fund offers two classes of
shares. Class A shares are generally sold subject to a sales charge imposed
at time of purchase. Class B shares are sold at net asset value and are
subject to a contingent deferred sales charge (See Note 7). Each class
represents a pro rata interest in the Fund, but votes separately on
class-specific matters and (as noted below) is subject to different expenses.
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 South Asia 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 (95.8% at June 30, 2000). 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 Valuation -- 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 accounting
principles generally accepted in the United States of America.
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, if any. Accordingly, no provision for
federal income or excise tax is necessary. At December 31, 1999, the Fund,
for federal income tax purposes had a capital loss carryover of $9,594,626
which will reduce the taxable income arising from future net realized gains
on investments, if any, to the extent permitted by the Internal Revenue Code,
and thus will reduce the amount of the distributions to shareholders which
would otherwise be necessary to relieve the Fund of any liability for federal
income or excise tax. A portion of such capital loss carryovers were acquired
through the Fund Reorganization (See Note 8) and may be subject to certain
limitations. The amounts and expiration dates of the capital loss carryovers
are as follows: December 31, 2003 ($1,446,364), December 31, 2004
($1,727,167), December 31, 2005 ($1,044,519), December 31, 2006 ($5,376,576).
Additionally, at December 31, 1999, net currency loss of $13,814 attributable
to security transactions incurred after October 31, 1999, are treated as
arising on the first day of the Fund's next taxable year.
D 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 expense during the reporting period. Actual results could
differ from those estimates.
E Other -- Investment transactions are accounted for on a trade-date basis.
F Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to 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 reported as a reduction of total expenses in the Statement of Operations.
G Interim Financial Statements -- The interim financial statements relating to
June 30, 2000 and for the six months then ended have not been audited by
independent certified public accountants, but in the
7
<PAGE>
EATON VANCE GREATER INDIA FUND AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
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 Management Fee and Other Transactions
with Affiliates
-------------------------------------------
The management fee is earned by Eaton Vance Management (EVM) as compensation
for management and administration of the business affairs of the Fund. The
fee is based on a percentage of average daily net assets. For the six months
ended June 30, 2000, the fee was equivalent to 0.25% (annualized) of the
Fund's average net assets for such period and amounted to $49,754. Except as
to Trustees of the Fund who are not members of EVM's organization, officers
and Trustees receive remuneration for their services to the Fund out of such
management fee. In addition, investment adviser and administrative fees are
paid by the Portfolio to EVM and its affiliates. See Note 2 of the
Portfolio's Notes to Financial Statements which are included elsewhere in
this report. The Fund was informed that Eaton Vance Distributors, Inc. (EVD),
a subsidiary of EVM and the Funds' principal underwriter, received $7,348
from the Eaton Vance Greater India Fund as its portion of the sales charge on
sales of Class A shares for the six months ended June 30, 2000.
Certain officers and Trustees of the Fund and of the Portfolio are officers
of the above organization.
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 (without par
value). Such shares may be issued in a number of different series (such as
the Fund) and classes. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
CLASS A (UNAUDITED) DECEMBER 31, 1999
<S> <C> <C>
-----------------------------------------------------------------------------
Sales 503,531 900,385
Redemptions (616,139) (1,319,065)
-----------------------------------------------------------------------------
NET DECREASE (112,608) (418,680)
-----------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
CLASS B (UNAUDITED) DECEMBER 31, 1999
<S> <C> <C>
-----------------------------------------------------------------------------
Sales 197,281 400,165
Redemptions (470,929) (5,031,687)
-----------------------------------------------------------------------------
NET DECREASE (273,648) (4,631,522)
-----------------------------------------------------------------------------
</TABLE>
4 Distributions to Shareholders
-------------------------------------------
It is the present policy of the Fund to make (a) at least one distribution
annually (normally in December) of all or substantially all of the net
investment income allocated to the Fund by the Portfolio, if any, less the
Fund's direct expenses and (b) at least one distribution annually of all or
substantially all of the net realized capital gains allocated by the
Portfolio to the Fund, if any (reduced by any available capital loss
carryforwards from prior years). Shareholders may reinvest all distributions
in shares of the Fund, without a sales charge, at the per share net asset
value as of the close of business on the ex-dividend date. The Fund
distinguishes between distributions on a tax basis and a financial reporting
basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a return of capital. Differences in the recognition
or classification of income between the financial statement and tax earnings
and profits which result in temporary over-distributions for financial
statement purposes are classified as distributions in excess of net
investment income or accumulated net realized losses. Permanent differences
between book and tax accounting are reclassified to paid-in capital.
5 Investment Transactions
-------------------------------------------
For the six months ended June 30, 2000, increases and decreases in the Fund's
investment in the Portfolio aggregated $7,807,763 and $12,362,349,
respectively.
6 Distribution and Service Plans
-------------------------------------------
The Fund has in effect distribution plans for Class A (Class A Plan) and
Class B (Class B Plan) (collectively, the Plans) pursuant to Rule 12b-1 under
the Investment Company Act of 1940.
The Class A Plan provides for the payment of a monthly distribution fee to
the Principal Underwriter, Eaton Vance Distributors, Inc. (EVD), in an amount
equal to the aggregate of (a) 0.50% of that portion of the Fund's average
daily net assets attributable to Class A shares which have remained
outstanding for less than one year
8
<PAGE>
EATON VANCE GREATER INDIA FUND AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
and (b) 0.25% of that portion of the Fund's average daily net assets
attributable to Class A shares which have remained outstanding for more than
one year.
The Class B Plan provides for the payment of a monthly distribution fee to
EVD at an annual rate not to exceed 0.75% (annualized) of the Fund's average
daily net assets attributable to Class B shares. The Fund will automatically
discontinue payments to EVD under the Class B Plan during any period in which
there are no outstanding Uncovered Distribution Charges, which are equivalent
to the sum of (i) 5% of the amount received by the Fund for each Class B
share sold plus, (ii) interest 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 7), daily amounts theretofore paid to EVD by Lloyd George
Investment Management (Bermuda) Limited, investment adviser for the Portfolio
(Adviser), in consideration of EVD's distribution effort. The amount of
Uncovered Distribution Charges EVD calculated under the Class B Plan was
approximately $1,758,000 June 30, 2000. The amounts paid by the Adviser to
EVD are equivalent to 0.15% of the Fund's average daily net assets
attributable to Class B shares and are made from the Adviser's own resources,
not Fund assets.
Distribution fee payments are made for providing ongoing distribution
services to the Fund. The amount payable to EVD by the Fund with respect to
each day is accrued on such day as a liability of the Fund and, accordingly,
reduces the Fund's net assets. The Fund paid or accrued $15,998 and $112,498
for Class A and Class B shares, respectively, to or payable to EVD for the
six months ended June 30, 2000, representing 0.33% and 0.75% (annualized) of
average daily net assets attributable to Class A and Class B shares,
respectively.
The Plans authorize the Fund to make payments of service fees to EVD,
investment dealers and other persons in an amount equal to 0.25%, on an
annual basis, of the Fund's average daily net assets attributable to Class A
shares which have remained outstanding for more than one year and in amounts
not exceeding 0.25% of the Fund's average daily net assets attributable to
Class B shares which have remained outstanding for more than one year. On
October 4, 1999, the Trustees approved service fee payments equal to 0.25%
per annum of the fund's average daily net assets attributable to Class B
shares for any fiscal year on shares of the Fund sold on or after
October 12, 1999. Such 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 where there are no
outstanding Uncovered Distribution Charges of EVD. For the six months ended
June 30, 2000, service fees amounted to $8,671, and $37,532 for Class A and
Class B shares, representing 0.17% and 0.25% of average daily net assets
attributable to Class A and Class B shares, respectively.
Certain officers and Trustees of the Fund are officers of the above
organization.
7 Contingent Deferred Sales Charge
-------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B shares made within six years of purchase. Generally, the CDSC is
based upon the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on shares acquired by reinvestment of dividends
or capital gains distributions. The CDSC is imposed at declining rates that
begin at 5% in the case of redemptions in the first and second year after
purchase, declining one percentage point 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 and may be waived under certain other limited
conditions. 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
credited to the Fund. For the six months ended June 30, 2000, EVD received
approximately $64,000 CDSC paid by Class B shareholders.
9
<PAGE>
SOUTH ASIA PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
COMMON STOCKS -- 84.1%
INDIA -- 84.1%
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------
Apparel -- 0.0%
----------------------------------------------------------------------
Bata India Ltd.(1) 25 $ 38
The dominate shoemaker of India.
----------------------------------------------------------------------
$ 38
----------------------------------------------------------------------
Auto and Parts -- 2.4%
----------------------------------------------------------------------
Hero Honda Motors Ltd. 35,500 $ 785,134
Honda's motorcycle manufacturer and
distributor in India.
IFB Industries Ltd.(1) 50 4
Manufacturer of high precision
engineering tools and
domestic appliances.
Motor Industries 388 31,718
A subsidiary of Robert Bosch of Germany
with a presence in the auto components
industry, with products such as spark
plugs and fuel injection pumps.
----------------------------------------------------------------------
$ 816,856
----------------------------------------------------------------------
Banking and Finance -- 8.4%
----------------------------------------------------------------------
HDFC Bank Ltd. 336,966 $ 1,919,159
One of the fastest growing private
sector banks in India.
ICICI Bank Ltd.(1) 64,050 928,725
Has emerged as one of India's leading
new private sector bank with emphasis
on technology.
----------------------------------------------------------------------
$ 2,847,884
----------------------------------------------------------------------
Banks and Money Services -- 0.0%
----------------------------------------------------------------------
Kotak Mahindra Finance Ltd.(2) 300 $ 487
Bill discounting and consumer financing.
Oriental Bank of Commerce(2) 100 74
Public sector retail bank.
State Bank of India(2) 100 507
The largest public sector commercial
bank in India, with over 8000 branches.
Engaged in retail banking and a range of
non-fund based activities.
----------------------------------------------------------------------
$ 1,068
----------------------------------------------------------------------
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------
Beverages -- 0.6%
----------------------------------------------------------------------
Tata Tea Ltd.(2) 100 $ 743
Integrated tea company with substantial
presence in plantation as well as direct
marketing of branded tea.
United Breweries Ltd.(2) 200,950 216,702
UB is the sub-continent's largest beer
manufacturer with a strong
brand portfolio.
----------------------------------------------------------------------
$ 217,445
----------------------------------------------------------------------
Broadcasting and Cable -- 2.9%
----------------------------------------------------------------------
Zee Telefilms Ltd. 99,000 $ 993,437
Dominant television broadcaster in
India.
----------------------------------------------------------------------
$ 993,437
----------------------------------------------------------------------
Chemicals -- 4.8%
----------------------------------------------------------------------
Reliance Industries Ltd.(2) 212,794 $ 1,624,669
Integrated petrochemical company with
world class capacities and major
presence in polyesters and polymers.
Tata Chemicals(2) 1,200 1,114
A diversified company with a major
presence in soda ash, caustic soda
and fertilizers.
Thermax Ltd.(2) 1,742 3,679
Niche supplier of boilers and pollution
control equipment.
----------------------------------------------------------------------
$ 1,629,462
----------------------------------------------------------------------
Computer Software -- 23.9%
----------------------------------------------------------------------
DSQ Software Ltd.(1) 50,000 $ 1,064,222
One of the top software exporting
companies in India and has achieved the
SEI CMM Level 4 certification, with
strong presence in
CAD/CAM segment.
Hughes Software Systems(2) 20,600 1,390,650
A computer software developer
specializing in
telecommunication software.
Infosys Technologies Ltd. 18,800 3,502,674
India's dominant software
services provider.
Onward Technologies Ltd.(1)(2) 500 2,453
Software unit of Novell India.
Satyam Computer Services 10,000 667,928
One of the fastest growing software
service companies in India. A SEI-CMM
Level 5 company, with expertise in key
vertical segments such as insurance,
banking & telecom.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
SOUTH ASIA PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------
Computer Software (continued)
----------------------------------------------------------------------
Tata Infotech Ltd. 25 161
One of the largest information
technology service and solution
providers in India with interest in
software development, distribution,
networking, maintenance, support
and training.
Visualsoft (India) Ltd. 9,300 1,485,948
Has a revenue mix unique in Indian
information technology services, with
software services and products
constituting over 90% of revenues. The
company has developed expertise in
Internet and e-commerce segments.
----------------------------------------------------------------------
$ 8,114,036
----------------------------------------------------------------------
Conglomerates -- 4.9%
----------------------------------------------------------------------
Larsen and Toubro Ltd.(2) 303,300 $ 1,675,792
A diversified conglomerate with presence
in cement, engineering and construction
and information technology segments. It
is India's largest private sector
company in the engineering and
construction segment and the second
largest cement manufacturer with over
12mtpa capacity.
Indian Rayon and Industries Ltd. 5 7
Diversified company with interests in
cement, textiles, rayon and
carbon black.
----------------------------------------------------------------------
$ 1,675,799
----------------------------------------------------------------------
Diversified Industry -- 3.6%
----------------------------------------------------------------------
Enkay Texofood Industries Ltd.(1)(2) 546 $ 66
Has business interests in the
manufacturing of synthetic yarns and the
export of processed foods.
Grasim Industries Ltd.(1) 1 6
A diversified conglomerate with interest
in viscose staple fibre (India's largest
producer), caustic soda, cement (third
largest producer in India) and gas based
sponge iron (third largest producer
in India).
Sterlite Industries Ltd. 66,000 1,231,680
Market leader in telecom cable &
non-ferrous metal (copper). Sterlite is
globally competitive due to its size of
operation & vertical integration.
Thiru Arooran Sugars(2) 100 116
A manufacturer of sugar and industrial
alcohol. Has also made foray into
cogeneration of power through bagasse.
----------------------------------------------------------------------
$ 1,231,868
----------------------------------------------------------------------
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------
Electric Utilities -- 0.0%
----------------------------------------------------------------------
BSES Ltd.(2) 50 $ 275
A monopoly distributor of power in
suburban Bombay.
----------------------------------------------------------------------
$ 275
----------------------------------------------------------------------
Engineering -- 0.9%
----------------------------------------------------------------------
Cummins India Ltd.(1) 50 $ 503
A 51% subsidiary of Cummins US, is a
leading manufacturer of IC engines for
industrial and power
generation industries.
Siemens India Ltd. (1)(2) 44,100 300,354
A 51% subsidiary of Seimens, Germany, is
a leading player in power generation and
distribution equipment, industrial
projects, transportation systems,
communication and health care products.
----------------------------------------------------------------------
$ 300,857
----------------------------------------------------------------------
Health and Personal Care -- 3.5%
----------------------------------------------------------------------
Cipla Ltd. 61,000 $ 1,180,312
Market leader in anti-bacterial,
anti-asthmetic, and anti-cancer entering
into segments of cardiovascular
and dermatology.
Wockhardt Ltd.(1)(2) 2,000 $ 2,056
Wockhardt Ltd.(1) 900 8,962
The 5th largest pharmaceutical company
in India, with focus on research based
pharmaceutical business. Has several key
brands in anti-infective and pain
killer segments.
----------------------------------------------------------------------
$ 1,191,330
----------------------------------------------------------------------
Household Products -- 4.8%
----------------------------------------------------------------------
Hindustan Lever Ltd.(1)(2) 25,400 $ 1,613,511
A diversified multinational of the
Unilever group and a market leader in
soap and detergents, personal care &
food processing industries.
Reckitt and Colman of India Ltd.(1) 50 230
Manufacturer of household products such
as mosquito repellent, surface cleaning
agents and antiseptic lotions.
----------------------------------------------------------------------
$ 1,613,741
----------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
SOUTH ASIA PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------
Information Technology -- 1.6%
----------------------------------------------------------------------
Rediff.com India Ltd. ADR(1) 39,200 $ 548,800
A leading Internet portal, which
develops and aggregates content (news,
editorial, stocks etc.), provides
e-commerce services.
----------------------------------------------------------------------
$ 548,800
----------------------------------------------------------------------
Investment Services -- 4.8%
----------------------------------------------------------------------
Housing Development Finance(1)(2) 54,000 $ 676,119
The market leader in the Indian mortgage
finance market with a strong brand in
the Indian retail finance industry.
ICICI Ltd. 150 421
Development finance company supporting
infrastructure projects.
ICICI Ltd. ADR 50,000 937,500
Development finance company supporting
infrastructure projects.
----------------------------------------------------------------------
$ 1,614,040
----------------------------------------------------------------------
Lodging and Gaming -- 0.0%
----------------------------------------------------------------------
Hotel Leela Venture Ltd.(2) 550 $ 248
Operates business hotels and a beach
resort in Bombay and Goa, respectively.
----------------------------------------------------------------------
$ 248
----------------------------------------------------------------------
Manufacturing -- 2.5%
----------------------------------------------------------------------
Gujarat Natural Gas Co. Ltd.(2) 95,500 $ 832,764
Subsidiary of British Gas involved in
gas distribution in India.
----------------------------------------------------------------------
$ 832,764
----------------------------------------------------------------------
Media -- 2.3%
----------------------------------------------------------------------
UTV Software Communications Ltd.(3) 68,600 $ 768,197
A Pan-Asian media company, engaged in
providing television software for
terrestrial and satellite
television channels.
----------------------------------------------------------------------
$ 768,197
----------------------------------------------------------------------
Medical Products -- 3.1%
----------------------------------------------------------------------
Ranbaxy Laboratories Ltd.(1) 80,514 $ 1,039,740
Presence in anti-bacterial and
antibiotics segments, and a major
exporter of bulk drugs
and formulations.
----------------------------------------------------------------------
$ 1,039,740
----------------------------------------------------------------------
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------
Metals - Industrial -- 4.4%
----------------------------------------------------------------------
Hindalco Industries Ltd. GDR 75,000 $ 1,481,250
India's second largest aluminum producer
and lowest cost producer in the world.
Tata Iron and Steel Co. Ltd.(2) 56 $ 148
India's most profitable steel company.
----------------------------------------------------------------------
$ 1,481,398
----------------------------------------------------------------------
Miscellaneous Materials and Commodities -- 0.0%
----------------------------------------------------------------------
Flex Industries Ltd.(1) 4,274 $ 1,220
An intergrated player in the packaging
industry, manufacturing flexible
packaging materials.
----------------------------------------------------------------------
$ 1,220
----------------------------------------------------------------------
Oil and Gas - Integrated -- 0.0%
----------------------------------------------------------------------
Hindustan Petroleum 300 $ 825
One of the top three oil refining and
marketing companies in India.
----------------------------------------------------------------------
$ 825
----------------------------------------------------------------------
Personal Products and Chemicals -- 4.7%
----------------------------------------------------------------------
Nirma Ltd. (1) 80,000 $ 1,580,291
A major leader in the soap and
detergent market.
----------------------------------------------------------------------
$ 1,580,291
----------------------------------------------------------------------
Property -- 0.0%
----------------------------------------------------------------------
Gesco Corp. Ltd. 70 $ 16
Engaged in real estate & property
development - a hive-off division of
GE Shipping.
----------------------------------------------------------------------
$ 16
----------------------------------------------------------------------
Telecommunications -- 0.0%
----------------------------------------------------------------------
Mahangar Telephone Nigam Ltd.(2) 1,100 $ 5,286
Government owned monopoly provider of
fixed wire telephone services in India's
major cities of Bombay and Delhi.
----------------------------------------------------------------------
$ 5,286
----------------------------------------------------------------------
Transportation -- 0.0%
----------------------------------------------------------------------
Great Eastern Shipping Co.(2) 630 $ 219
Diversified company with interests in
shipping and property development.
----------------------------------------------------------------------
$ 219
----------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
SOUTH ASIA PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
----------------------------------------------------------------------
Transportation (continued)
----------------------------------------------------------------------
Total Common Stocks
(identified cost $22,001,535) $28,507,140
----------------------------------------------------------------------
Total Investments -- 84.1%
(identified cost $22,001,535) $28,507,140
----------------------------------------------------------------------
Other Assets, Less Liabilities -- 15.9% $ 5,373,463
----------------------------------------------------------------------
Net Assets -- 100.0% $33,880,603
----------------------------------------------------------------------
</TABLE>
ADR - American Depositary Receipt
GDR - Global Depository Receipt
(1) Non-income producing security.
(2) The above securities held by the Portfolio on June 30, 2000 are
unrestricted securities valued at market prices. Because of the length
of the registration process, the Portfolio would temporarily be unable
to sell certain of these securities. At June 30, 2000 the aggregate
value of these securities amounted to $284,176 representing 0.8% of the
Portfolio's net assets (Note 5).
(3) Security valued at fair value using methods determined in good faith by
or at the direction of the Trustees.
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
SOUTH ASIA PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
TOP TEN HOLDINGS
<TABLE>
<CAPTION>
PERCENTAGE
COMPANY INDUSTRY SECTOR OF NET ASSETS VALUE
<S> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Infosys Technologies Ltd. Computer Software 10.3% $3,502,674
HDFC Bank Ltd. Banking and Finance 5.7 1,919,159
Larsen and Toubro Ltd. Conglomerates 4.9 1,675,792
Reliance Industries Ltd. Chemicals 4.8 1,624,669
Hindustan Lever Ltd. Household Products 4.8 1,613,511
Nirma Ltd. Personal Products 4.7 1,580,291
and Chemicals
Visualsoft (India) Ltd. Computer Software 4.4 1,485,948
Hindalco Industries Ltd. GDR Metals - Industrial 4.4 1,481,250
Hughes Software Systems Computer Software 4.1 1,390,650
Sterlite Industries Ltd. Diversified Industry 3.6 1,231,680
</TABLE>
INDUSTRY CONCENTRATION -- BELOW ARE THE TOP TEN INDUSTRY SECTORS REPRESENTED IN
THE PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
PERCENTAGE
COMPANY OF NET ASSETS VALUE
<S> <C> <C>
-------------------------------------------------------------------
Computer Software 23.9 $8,114,036
Banking and Finance 8.4 2,847,884
Conglomerates 4.9 1,675,799
Chemicals 4.8 1,629,462
Investment Services 4.8 1,614,040
Household Products 4.8 1,613,741
Personal Products and Chemicals 4.7 1,580,291
Metals - Industrial 4.4 1,481,398
Diversified Industry 3.6 1,231,868
Health and Personal Care 3.5 1,180,312
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
SOUTH ASIA PORTFOLIO AS OF JUNE 30, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF JUNE 30, 2000
<S> <C>
Assets
-----------------------------------------------------
Investments, at value
(identified cost, $22,001,535) $28,507,140
Cash 534,059
Foreign currency, at value
(identified cost, $4,668,074) 4,648,164
Receivable for investments sold 1,809,508
Dividends receivable 45,788
-----------------------------------------------------
TOTAL ASSETS $35,544,659
-----------------------------------------------------
Liabilities
-----------------------------------------------------
Payable for investments purchased $ 1,613,534
Payable to affiliate for Trustees' fees 787
Accrued expenses 49,735
-----------------------------------------------------
TOTAL LIABILITIES $ 1,664,056
-----------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $33,880,603
-----------------------------------------------------
Sources of Net Assets
-----------------------------------------------------
Net proceeds from capital contributions
and withdrawals $27,396,691
Net unrealized appreciation (computed on
the basis of identified cost) 6,483,912
-----------------------------------------------------
TOTAL $33,880,603
-----------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JUNE 30, 2000
<S> <C>
Investment Income
------------------------------------------------------
Dividends $ 239,878
------------------------------------------------------
TOTAL INVESTMENT INCOME $ 239,878
------------------------------------------------------
Expenses
------------------------------------------------------
Investment adviser fee $ 157,287
Administration fee 52,096
Trustees fees and expenses 3,084
Custodian fee 97,833
Legal and accounting services 46,735
Miscellaneous 9,593
------------------------------------------------------
TOTAL EXPENSES $ 366,628
------------------------------------------------------
Deduct --
Reduction of custodian fee $ 6,768
------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 6,768
------------------------------------------------------
NET EXPENSES $ 359,860
------------------------------------------------------
NET INVESTMENT LOSS $ (119,982)
------------------------------------------------------
Realized and Unrealized
Gain (Loss)
------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis)
(net of foreign taxes, $1,519,757) $ 6,160,193
Foreign currency transactions (163,258)
------------------------------------------------------
NET REALIZED GAIN $ 5,996,935
------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(15,566,947)
Foreign currency (22,559)
------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(15,589,506)
------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (9,592,571)
------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (9,712,553)
------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
SOUTH ASIA PORTFOLIO AS OF JUNE 30, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INCREASE (DECREASE) JUNE 30, 2000 YEAR ENDED
IN NET ASSETS (UNAUDITED) DECEMBER 31, 1999
<S> <C> <C>
-----------------------------------------------------------------------------
From operations --
Net investment loss $ (119,982) $ (411,907)
Net realized gain 5,996,935 21,356,789
Net change in unrealized appreciation
(depreciation) (15,589,506) 13,106,670
-----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (9,712,553) $ 34,051,552
-----------------------------------------------------------------------------
Capital transactions --
Contributions $ 8,232,880 $ 10,651,675
Withdrawals (12,917,892) (49,158,808)
-----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $ (4,685,012) $ (38,507,133)
-----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (14,397,565) $ (4,455,581)
-----------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------
At beginning of period $ 48,278,168 $ 52,733,749
-----------------------------------------------------------------------------
AT END OF PERIOD $ 33,880,603 $ 48,278,168
-----------------------------------------------------------------------------
</TABLE>
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
PERIOD ENDED
INCREASE (DECREASE) IN CASH JUNE 30, 2000
<S> <C>
-------------------------------------------------------
Cash Flows From (For) Operating
Activities --
Purchase of investments $ (23,240,379)
Proceeds from sale of investments 31,906,502
Dividends and interest received 224,829
Operating expenses paid (414,633)
Foreign taxes paid (1,519,756)
Foreign currency transactions (2,604,111)
-------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES $ 4,352,452
-------------------------------------------------------
Cash Flows From (For) Financing
Activities --
Proceeds from capital contributions $ 8,232,880
Payments for capital withdrawals (12,917,892)
-------------------------------------------------------
NET CASH USED FOR FINANCING ACTIVITIES $ (4,685,012)
-------------------------------------------------------
NET DECREASE IN CASH $ (332,560)
-------------------------------------------------------
CASH AT BEGINNING OF PERIOD $ 866,619
-------------------------------------------------------
CASH AT END OF PERIOD $ 534,059
-------------------------------------------------------
Reconciliation of Net Decrease in Net Assets
From Operations to Net Cash From
Operating Activities
-------------------------------------------------------
Net decrease in net assets from
operations $ (9,712,553)
Increase in receivable for investments
sold (1,789,180)
Increase in foreign currency (2,418,294)
Increase in dividends, interest and
other receivables (15,049)
Increase in payable for investments
purchased 1,613,534
Decrease in payable to affiliate (106)
Decrease in accrued expenses and other
liabilities (54,667)
Net decrease in investments 16,728,767
-------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES $ 4,352,452
-------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
SOUTH ASIA PORTFOLIO AS OF JUNE 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 --------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 1.76%(1) 2.09% 1.97% 1.61% 1.51% 1.76%
Expenses after custodian
fee reduction 1.73%(1) 2.07% 1.87% 1.58% 1.28% 1.35%
Net investment loss (0.58)%(1) (0.94)% (0.16)% (0.20)% (0.11)% (0.18)%
Portfolio Turnover 69% 80% 60% 48% 46% 38%
--------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $33,881 $48,278 $52,734 $84,175 $106,923 $37,435
--------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
SOUTH ASIA PORTFOLIO AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENT (UNAUDITED)
1 Significant Accounting Policies
-------------------------------------------
South Asia Portfolio (the Portfolio) is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company.
The Portfolio, which was organized as a trust under the laws of the State of
New York on January 18, 1994, seeks to achieve long-term capital
appreciation. The Declaration of Trust permits the Trustees to issue
interests in the Portfolio. The following is a summary of the significant
accounting policies of the Portfolio. The policies are in conformity with
generally accepted accounting principles.
A Investment Valuations -- Marketable securities, including options, that are
listed on foreign or U.S. securities exchanges or in the NASDAQ National
Market System are valued at closing sale prices 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. Futures positions on securities or
currencies are generally valued at closing settlement prices. Unlisted or
listed securities for which closing sale prices are not available are valued
at the mean between the latest bid and asked prices. Short term debt
securities with a remaining maturity of 60 days or less are valued at
amortized cost. Other fixed income and debt securities, including listed
securities and securities for which price quotations are available, will
normally be valued on the basis of valuations furnished by a pricing service.
Investments for which valuations or market quotations are unavailable are
valued at fair value using methods determined in good faith by or at the
direction of the Trustees.
B Federal Taxes -- The Portfolio 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
individually responsible for the payment of any taxes on its share of such
income. Since some of the Portfolio's investors are regulated investment
companies that invest all or substantially all of their assets in the
Portfolio, the Portfolio normally must satisfy the applicable source of
income and diversification requirements (under the Internal Revenue Code), in
order for its investors to satisfy them. The Portfolio will allocate, at
least annually among its investors, each investor's distributive share of the
Portfolio's net investment income, net realized capital gains, and any other
items of income, gain, loss, deduction or credit. Withholding taxes on
foreign dividends and capital gains have been provided for in accordance with
the Portfolio's understanding of the applicable countries' tax rules and
rates.
C Financial Futures Contracts -- Upon the entering of a financial futures
contract, the Portfolio is required to deposit (initial margin) either cash
or securities in an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by the Portfolio (margin maintenance) each day, dependent on
daily fluctuations in the value of the underlying security, and are recorded
for book purposes as unrealized gains or losses by the Portfolio. Should
interest or currency exchange rates move unexpectedly, the Portfolio may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss. If the Portfolio enters into a closing transaction, the
Portfolio will realize, for book purposes, a gain or loss equal to the
difference between the value of the financial futures contract to sell and
financial futures contract to buy.
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 changes in foreign currency exchange
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 results from fluctuations in foreign currency exchange rates
is not separately disclosed.
E Forward Foreign Currency Exchange Contracts -- The Portfolio may enter into
forward foreign currency exchange contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date. Risks may arise
upon entering these contracts from the potential inability of counterparties
to meet the terms of their contracts and from movements in the value of a
foreign currency relative to the U.S. dollar. The Portfolio will enter into
forward contracts for hedging purposes. The forward foreign currency exchange
contracts are adjusted by the daily exchange rate of the underlying currency
and any gains or losses are recorded for financial statement purposes as
unrealized until such time as the contracts have been closed or offset.
F 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
balance the Portfolio maintains with
18
<PAGE>
SOUTH ASIA PORTFOLIO AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENT (UNAUDITED) CONT'D
IBT. All significant credit balances used to reduce the Portfolios custodian
fees are reported as a reduction of total expenses in the Statement of
Operations.
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 expense during the reporting period. Actual results could
differ from those estimates.
H Other -- Investment transactions are accounted for on the date the securities
are purchased or sold. Dividend income is recorded on the ex-dividend date.
However, if the ex-dividend date has passed, certain dividends from foreign
securities are recorded as the Portfolio is informed of the ex-dividend date.
Interest income is recorded on the accrual basis.
I Interim Financial Statements -- The interim financial statements relating to
June 30, 2000 and for the six months 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 Lloyd George Investment Management
(Bermuda) Limited (the Adviser) as compensation for management and investment
advisory services rendered to the Portfolio. Under the advisory agreement,
the Adviser receives a monthly fee of 0.0625% (0.75% annually) of the average
daily net assets of the Portfolio up to $500,000,000, and at reduced rates as
daily net assets exceed that level. For the six months ended June 30, 2000,
the adviser fee was 0.75% (annualized) of average daily net assets and
amounted to $157,287. In addition, an administration fee is earned by Eaton
Vance Management (EVM) for managing and administering the business affairs of
the Portfolio. Under the administration agreement, EVM earns a monthly fee in
the amount of 1/48th of 1% (equal to 0.25% annually) of the average daily net
assets of the Portfolio up to $500,000,000, and at reduced rates as daily net
assets exceed that level. For the six months ended June 30, 2000, the
administration fee was 0.25% (annualized) of average net assets and amounted
to $52,096. Except as to Trustees of the Portfolio who are not members of the
Adviser or EVM's organization, officers and Trustees receive remuneration for
their services to the Portfolio out of such investment adviser and
administrative fees. Certain officers and Trustees of the Portfolio are
officers of the above organizations.
3 Investment Transactions
-------------------------------------------
For the six months ended June 30, 2000, purchases and sales of investments,
other than short-term obligations, aggregated $23,771,203 and $32,613,167
respectively.
4 Federal Income Tax Basis of Investments
-------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned at June 30, 2000, as computed on a federal income tax
basis, are as follows:
<TABLE>
<S> <C>
AGGREGATE COST $22,001,535
-----------------------------------------------------
Gross unrealized appreciation $ 9,417,169
Gross unrealized depreciation (2,911,564)
-----------------------------------------------------
NET UNREALIZED APPRECIATION $ 6,505,605
-----------------------------------------------------
</TABLE>
5 Risks Associated with Foreign Investments
-------------------------------------------
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less
publicly available information about foreign companies, particularly those
not subject to the disclosure and reporting requirements of the U.S.
securities laws. Foreign issuers are generally not bound by uniform
accounting, auditing, and financial reporting requirements and standards of
practice comparable to those applicable to domestic issuers. Investments in
foreign securities also involve the risk of possible adverse changes in
investment or exchange control regulations, expropriation or confiscatory
taxation, limitation on the removal of funds or other assets of the
Portfolio, political or financial instability or diplomatic and other
developments which could affect such investments. Foreign stock markets,
while growing in volume and sophistication, are generally not as developed as
those in the United States, and securities of some foreign issuers
(particularly those in developing countries) may be less liquid and more
volatile than securities of comparable U.S. companies. In general, there is
less overall governmental supervision and regulation of foreign securities
markets, broker-dealers, and issuers than in the United States.
19
<PAGE>
SOUTH ASIA PORTFOLIO AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENT (UNAUDITED) CONT'D
Settlement of securities transactions in the Indian subcontinent may be
delayed and is generally less frequent than in the United States, which could
affect the liquidity of the Portfolio's assets. The Portfolio may be unable
to sell securities where the registration process is incomplete and may
experience delays in receipt of dividends.
6 Line of Credit
-------------------------------------------
The Portfolio participates with other portfolios and funds managed by EVM and
its affiliates in a committed $150 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. The Portfolio did not have any significant borrowings or
allocated fees during the six months ended June 30, 2000.
7 Subsequent Event
-------------------------------------------
Effective September 15, 2000, Zaheer Sitabkhan will assume sole
responsibility for managing the South Asia Portfolio. Mr. Sitabkhan is
currently co-portfolio manager of the South Asia Portfolio.
20
<PAGE>
EATON VANCE GREATER INDIA FUND AS OF JUNE 30, 2000
INVESTMENT MANAGEMENT
EATON VANCE GREATER INDIA FUND
Officers
James B. Hawkes
President and Trustee
Edward E. Smiley, Jr.
Vice President
Michael B. Terry
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman of the Board,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
SOUTH ASIA PORTFOLIO
Officers
Hon. Robert Lloyd George
President and Trustee
James B. Hawkes
Vice President and Trustee
Zaheer Sitabkhan
Vice President
Scobie Dickinson Ward
Vice President, Assistant
Secretary and Assistant Treasurer
William Walter Raleigh Kerr
Vice President and
Assistant Treasurer
James L. O'Connor
Vice President and Treasurer
Alan R. Dynner
Secretary
Trustees
Hon. Edward K. Y. Chen
President of Lingnan College,
University of Hong Kong
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman of the Board,
United Asset Management Corporation
21
<PAGE>
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<PAGE>
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<PAGE>
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SPONSOR AND MANAGER OF
EATON VANCE GREATER INDIA FUND
AND Administrator of South Asia Portfolio
Eaton Vance Management
The Eaton Vance Building
255 State Street
Boston, MA 02109
ADVISER OF SOUTH ASIA PORTFOLIO
Lloyd George Investment Management
(Bermuda) Limited
3808 One Exchange Square
Central, Hong Kong
PRINCIPAL UNDERWRITER
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
CUSTODIAN
Investors Bank & Trust Company
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
PFPC, Inc.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02904-9653
(800) 262-1122
EATON VANCE GREATER INDIA FUND
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
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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.
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142-8/00 GISRC
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