<PAGE>
[LOGO] INVESTING
FOR THE
21ST
CENTURY
[GRAPHIC] [GRAPHIC]
SEMIANNUAL REPORT JUNE 30, 2000
EATON VANCE
GROWTH &
INCOME
FUND
[GRAPHIC]
75 YEARS OF EXCELLENCE
EATON 75TH VANCE
ANNIVERSARY
<PAGE>
EATON VANCE GROWTH & INCOME FUND AS OF JUNE 30, 2000
-------------------------------------------------------------------------------
INVESTMENT UPDATE
-------------------------------------------------------------------------------
[PHOTO]
Michael R. Mach, CFA
Portfolio Manger
INVESTMENT ENVIRONMENT
-------------------------------------------------------------------------------
- The U.S. expansion continued in the first half of 2000, although amid
signs of moderation, as leading economic indicators signalled slower
demand. Gross domestic product rose 5.4% in the first quarter of 2000,
a solid performance but well below the pace set in the fourth quarter
of 1999.
- In an attempt to engineer a "soft landing" for the economy, the Fed has
raised its benchmark Federal Funds rate - a key short-term interest rate
barometer - on six occasions in the past year alone for a total of 175
basis points (1.75%).
- There is evidence that the Fed's series of rate hikes is starting to have
the desired effect. Interest-rate-sensitive sectors of the economy -
especially housing and construction - have slowed significantly. Although
still healthy, consumer spending has cooled off.
MANAGEMENT DISCUSSION
- The Fund's investment philosophy is to invest in stocks of companies with
above-average earnings growth potential. In the past six months, the Fund
sought to invest in a diversified portfolio of attractively valued stocks -
stocks that are inexpensive relative to their fundamental value as well as
to the overall stock market - that met the above investment criteria.
- We favored companies that have strong business franchises and that are
among the leaders in their respective markets. Market-leading companies
have generally commanded more favorable economies of scale, distribution
channel strength, and pricing power. In addition to providing a powerful
platform for continued growth, these fundamental business characteristics
also have tended to provide superior competitive stability versus mid-tier
companies or new market entrants.
- One area of emphasis within the fund was the financial sector. As the
Federal Reserve Board has moved to fend off early signs of inflation with
a series of interest rate hikes, valuations of leading companies in this
sector have become increasingly compelling.
- The Fund was also well represented in the energy sector, where we believe
pricing for natural gas and oil, and the possibility of shortages in the
availability of electrical power, should accrue to the benefit of leading
companies participating in this broad segment of the global economy.
THE FUND
-------------------------------------------------------------------------------
THE PAST SIX MONTHS
- During the six months ended June 30, 2000, the Fund's Class A shares had a
total return of -2.01%.(1) This return was the result of a decrease in net
asset value (NAV)to $13.20 on June 30, 2000, from $14.39 on December 31,
1999, and the reinvestment of $0.030 per share in dividends and $0.879 per
share in capital gains.
- The Fund's Class B shares had a total return of -2.39%(1) during the
period, the result of a decrease in NAV to $15.08 from $16.34, and the
reinvestment of $0.879 per share in capital gains.
- The Fund's Class C shares had a total return of -2.40%(1) during the
period, the result of a decrease in NAV to $12.18 from $13.37, and the
reinvestment of $0.879 per share in capital gains.
- For comparison, during the six months ended June 30, 2000, the average
return of the funds in the Lipper Multi-Cap Value Classification was
-0.49%.(2)
-------------------------------------------------------------------------------
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
<TABLE>
<CAPTION>
PERFORMANCE(3) CLASS A CLASS B CLASS C
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Total Returns (at net asset value)
-------------------------------------------------------------------------------------------------
One Year -6.36% -7.13% -7.15%
Five Years 17.07 15.88 15.31
Ten Years 12.52 N.A. N.A.
Life of Fund+ 9.73 15.44 16.01
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
-------------------------------------------------------------------------------------------------
One Year -11.77% -11.06% -7.90%
Five Years 15.70 15.65 15.31
Ten Years 11.85 N.A. N.A.
Life of Fund+ 9.63 15.36 16.01
</TABLE>
+ Inception Dates - Class A: 9/23/31; Class B: 8/17/94; Class C: 11/4/94
<TABLE>
<CAPTION>
TEN LARGEST HOLDINGS(4) By total net assets
-------------------------------------------------------------------
<S> <C>
Johnson & Johnson Co. 3.0%
Abbott Laboratories 2.8
Kimberly-Clark Corp. 2.7
BP Amoco PLC, ADR 2.7
Apache Corp. 2.6
McGraw-Hill Cos., Inc. (The) 2.5
ALLTEL Corp. 2.5
Merrill Lynch & Co., Inc. 2.5
New York Times Co., Class A (The) 2.5
Nabisco Holdings Corp., Class A 2.5
</TABLE>
(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 Class B and Class C shares. (2) It is not possible to invest directly
in a Lipper Classification. (3) 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 the 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. (4) Ten largest holdings accounted for 26.3% of the
Fund'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 GROWTH & INCOME 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 Growth & Income Portfolio,
at value
(identified cost, $144,933,535) $158,846,723
Receivable for Fund shares sold 76,524
------------------------------------------------------
TOTAL ASSETS $158,923,247
------------------------------------------------------
Liabilities
------------------------------------------------------
Payable for Fund shares redeemed $ 354,757
Payable to affiliate for service fees 14,341
Dividends payable 4,199
Payable to affiliate for Trustees' fees 1,304
Accrued expenses 100,940
------------------------------------------------------
TOTAL LIABILITIES $ 475,541
------------------------------------------------------
NET ASSETS $158,447,706
------------------------------------------------------
Sources of Net Assets
------------------------------------------------------
Paid-in capital $133,784,113
Accumulated undistributed net realized
gain from Portfolio (computed on the
basis of identified cost) 10,334,422
Accumulated undistributed net
investment income 415,983
Net unrealized appreciation from
Portfolio (computed on the basis of
identified cost) 13,913,188
------------------------------------------------------
TOTAL $158,447,706
------------------------------------------------------
Class A Shares
------------------------------------------------------
NET ASSETS $129,132,027
SHARES OUTSTANDING 9,786,338
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(Net assets DIVIDED BY shares of
beneficial interest outstanding) $ 13.20
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $13.20) $ 14.01
------------------------------------------------------
Class B Shares
------------------------------------------------------
NET ASSETS $ 25,276,923
SHARES OUTSTANDING 1,676,647
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE (NOTE 6)
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 15.08
------------------------------------------------------
Class C Shares
------------------------------------------------------
NET ASSETS $ 4,038,756
SHARES OUTSTANDING 331,632
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE (NOTE 6)
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 12.18
------------------------------------------------------
</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 (net
of foreign taxes, $1,800) $ 1,553,971
Interest allocated from Portfolio 118,643
Expenses allocated from Portfolio (594,356)
------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 1,078,258
------------------------------------------------------
Expenses
------------------------------------------------------
Trustees fees and expenses $ 2,418
Distribution and service fees
Class A 110,022
Class B 128,694
Class C 22,565
Transfer and dividend disbursing
agent fees 124,424
Registration fees 22,041
Custodian fee 13,474
Legal and accounting services 8,098
Printing and postage 7,181
Miscellaneous 16,270
------------------------------------------------------
TOTAL EXPENSES $ 455,187
------------------------------------------------------
NET INVESTMENT INCOME $ 623,071
------------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 10,399,150
------------------------------------------------------
NET REALIZED GAIN $ 10,399,150
------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(15,406,392)
------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(15,406,392)
------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (5,007,242)
------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (4,384,171)
------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
EATON VANCE GROWTH & INCOME FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENT 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 income $ 623,071 $ 840,720
Net realized gain 10,399,150 30,011,808
Net change in unrealized
appreciation (depreciation) (15,406,392) (25,613,189)
-----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (4,384,171) $ 5,239,339
-----------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (284,889) $ (750,165)
From net realized gain
Class A (8,305,615) (17,912,326)
Class B (1,411,070) (3,704,579)
Class C (291,680) (664,258)
In excess of net realized gain
Class C -- (17,078)
-----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (10,293,254) $ (23,048,406)
-----------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 5,667,879 $ 8,741,677
Class B 2,895,876 14,439,241
Class C 1,868,335 4,574,989
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 6,997,773 14,787,026
Class B 1,248,441 3,176,165
Class C 283,700 643,064
Cost of shares redeemed
Class A (11,202,515) (12,175,639)
Class B (8,771,634) (8,774,215)
Class C (2,778,996) (1,724,363)
-----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS $ (3,791,141) $ 23,687,945
-----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (18,468,566) $ 5,878,878
-----------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------
At beginning of period $ 176,916,272 $ 171,037,394
-----------------------------------------------------------------------------
AT END OF PERIOD $ 158,447,706 $ 176,916,272
-----------------------------------------------------------------------------
Accumulated undistributed
net investment income
included in net assets
-----------------------------------------------------------------------------
AT END OF PERIOD $ 415,983 $ 77,801
-----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE GROWTH & INCOME 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) 1999(1) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 14.390 $16.050 $13.760 $13.560 $12.760 $10.900
--------------------------------------------------------------------------------------------------------------
Income (loss) from operations
--------------------------------------------------------------------------------------------------------------
Net investment income $ 0.062 $0.101 $0.088 $0.163 $0.228 $ 0.250
Net realized and unrealized
gain (loss) (0.343) 0.363 2.879 3.827 2.272 3.255
--------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ (0.281) $0.464 $2.967 $3.990 $2.500 $ 3.505
--------------------------------------------------------------------------------------------------------------
Less distributions
--------------------------------------------------------------------------------------------------------------
From net investment income $ (0.030) $(0.085 ) $(0.090 ) $(0.170 ) $(0.220 ) $(0.251)
In excess of net investment
income -- -- 0.000(2) -- -- --
From net realized gain (0.879) (2.039) (0.587) (3.602) (1.480) (1.394)
In excess of net realized gain -- -- -- (0.018) -- --
--------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.909) $(2.124 ) $(0.677 ) $(3.790 ) $(1.700 ) $(1.645)
--------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 13.200 $14.390 $16.050 $13.760 $13.560 $12.760
--------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) (2.01)% 3.40% 21.81% 30.93% 20.20% 32.77%
--------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $129,132 $139,219 $141,985 $124,569 $106,775 $99,375
Ratios (As a percentage of
average daily net assets):
Expenses(4) 1.15%(5) 1.08% 1.07% 1.04% 1.00% 1.04%
Net investment income 0.93%(5) 0.62% 0.60% 1.07% 1.70% 2.02%
Portfolio Turnover of the
Portfolio 91% 126% 95% 93% 114% 108%
--------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME PER
SHARE $ 0.072 $ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Distributions in excess of net investment income are less than $0.001
per share.
(3) 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.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE GROWTH & INCOME 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) 1999(1) 1998
<S> <C> <C> <C>
------------------------------------------------------------------------------
Net asset value -- Beginning
of period $16.340 $17.990 $15.400
------------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------------
Net investment loss $ -- $(0.027) $(0.031)
Net realized and unrealized
gain (loss) (0.381) 0.416 3.218
------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.381) $ 0.389 $ 3.187
------------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------------
From net investment income $ -- $ -- $(0.001)
In excess of net investment
income -- -- (0.009)
From net realized gain (0.879) (2.039) (0.587)
------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.879) $(2.039) $(0.597)
------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $15.080 $16.340 $17.990
------------------------------------------------------------------------------
TOTAL RETURN(2) (2.39)% 2.58% 20.85%
------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $25,277 $32,489 $26,708
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.95%(4) 1.85% 1.90%
Net investment income
(loss) 0.12%(4) (0.15)% (0.22)%
Portfolio Turnover of the
Portfolio 91% 126% 95%
------------------------------------------------------------------------------
</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 GROWTH & INCOME FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2000 ------------------------
(UNAUDITED) 1999(1) 1998
<S> <C> <C> <C>
------------------------------------------------------------------------------
Net asset value -- Beginning
of period $13.370 $15.110 $13.020
------------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------------
Net investment income (loss) $ 0.001 $(0.029) $(0.033)
Net realized and unrealized
gain (loss) (0.312) 0.328 2.715
------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.311) $ 0.299 $ 2.682
------------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------------
From net investment income $ -- $ -- $(0.005)
From net realized gain (0.879) (1.988) (0.582)
In excess of net realized gain -- (0.051) (0.005)
------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.879) $(2.039) $(0.592)
------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $12.180 $13.370 $15.110
------------------------------------------------------------------------------
TOTAL RETURN(2) (2.40)% 2.47% 20.77%
------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 4,039 $ 5,208 $ 2,344
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.99%(4) 1.90% 1.94%
Net investment income
(loss) 0.09%(4) (0.19)% (0.24)%
Portfolio Turnover of the
Portfolio 91% 126% 95%
------------------------------------------------------------------------------
</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
7
<PAGE>
EATON VANCE GROWTH & INCOME FUND AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
-------------------------------------------
Eaton Vance Growth & Income Fund (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 a diversified, open-end
management investment company. The Fund offers three classes of shares:
Class A, Class B and Class C shares. Class A shares are generally sold
subject to a sales charge imposed at 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). 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 Growth & Income 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 (99.9% 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 generally
accepted accounting principles. Prior to the Fund's investment in the
Portfolio, the Fund held its investments directly.
C Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable income, including any
net realized gain on investments, option and financial futures transactions.
Accordingly, no provision for federal income or excise tax is necessary.
D Other -- Investment transactions are accounted for on a trade-date basis.
E 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.
F 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 Fund's
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders
-------------------------------------------
The Fund's present policy is to pay quarterly dividends from net investment
income allocated to the Fund by the Portfolio (less the Fund's direct and
allocated expenses) and to distribute at least annually any net realized
capital gains so allocated. Distributions are paid in the form of additional
shares of the Fund or, at the election of the shareholder, in cash. The Fund
distinguishes between distributions on a tax basis and a financial reporting
basis. Generally accepted accounting principles 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 accumulated net realized gains. 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
8
<PAGE>
EATON VANCE GROWTH & INCOME FUND AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
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 414,760 538,296
Issued to shareholders electing to
receive payments of distributions in
Fund shares 525,113 1,050,439
Redemptions (829,475) (757,608)
---------------------------------------------------------------------------------------
NET INCREASE 110,398 831,127
---------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
CLASS B (UNAUDITED) DECEMBER 31, 1999
<S> <C> <C>
---------------------------------------------------------------------------------------
Sales 187,346 794,543
Issued to shareholders electing to
receive payments of distributions in
Fund shares 81,889 199,803
Redemptions (580,565) (490,746)
---------------------------------------------------------------------------------------
NET INCREASE (DECREASE) (311,330) 503,600
---------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
CLASS C (UNAUDITED) DECEMBER 31, 1999
<S> <C> <C>
---------------------------------------------------------------------------------------
Sales 147,157 300,991
Issued to shareholders electing to
receive payments of distributions in
Fund shares 23,018 49,402
Redemptions (228,052) (116,056)
---------------------------------------------------------------------------------------
NET INCREASE (DECREASE) (57,877) 234,337
---------------------------------------------------------------------------------------
</TABLE>
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 Eaton Vance Management (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 the investment adviser fee. The Fund was informed
that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's
principal underwriter, received $4,545 from the 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 organizations.
5 Distribution and Service Plans
-------------------------------------------
The Fund has in effect distribution plans for Class B shares (Class B Plan)
and Class C shares (Class C Plan) pursuant to Rule 12b-1 under the Investment
Company Act of 1940 and a service plan for Class A shares (Class A Plan)
(collectively, the Plans). The Class B and Class C Plans require the Fund to
pay EVD amounts equal to 1/366 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% and 6.25% of the aggregate amount received by the Fund for the
Class B and Class C shares sold, respectively, 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 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 $99,995 and $16,987 for Class B and Class C shares,
respectively, to or payable to EVD for the six months ended June 30, 2000,
representing 0.75% (annualized) and 0.75% (annualized) of the average daily
net assets for Class B and Class C shares, respectively. At June 30, 2000,
the amount of Uncovered Distribution Charges of EVD calculated under the
Plans was approximately $669,000 and $693,000 for Class B and Class C shares,
respectively.
The Plans authorize the Fund to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.25% of the
Fund's average daily net assets attributable to Class A, Class B, and
Class C shares for each fiscal year. The Trustees initially implemented the
Plans by authorizing the Fund to make quarterly payments of service fees to
EVD and investment dealers in amounts equal to 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 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 A and Class B shares for any fiscal year
9
<PAGE>
EATON VANCE GROWTH & INCOME FUND AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
on shares of the Fund sold on or after October 12, 1999. The Class C Plan
permits 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 will be made for
personal services and/or the maintenance of shareholder accounts. Service
fees are separate and distinct from the sales commissions and distribution
fees payable by the Fund to EVD, and, as such are not subject to automatic
discontinuance where there are no outstanding Uncovered Distribution Charges
of EVD. Service fee payments for the six months ended June 30, 2000 amounted
to $110,022, $28,699, and $5,578 for Class A, Class B, and Class C shares,
respectively.
6 Contingent Deferred Sales Charge
-------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on any
redemptions of Class B shares made within six years of purchase and on
redemptions of Class C shares made within one year of purchase. A CDSC of 1%
is imposed on any redemption of Class A shares made within 12 months of
purchase that were acquired at net asset value if the purchase amount was $1
million or more. 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.
Class B 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. Class C shares will be subject to a 1%
CDSC if redeemed within one year of purchase. 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 each Fund's Distribution Plan (see
Note 5). CDSC charges received when no Uncovered Distribution Charges exist
will be credited to the Fund. The Fund was informed that EVD received
approximately $56,000 and $5,000 of CDSC paid by shareholders for Class B
shares and Class C shares, respectively, for the six months ended June 30,
2000.
7 Investment Transactions
-------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio aggregated
$10,399,385 and $24,671,099, respectively, for the six months ended June 30,
2000.
10
<PAGE>
GROWTH & INCOME PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
COMMON STOCKS -- 97.7%
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Auto Parts and Equipment -- 2.5%
-----------------------------------------------------------------------
Delphi Automotive Systems Corp. 155,000 $ 2,257,187
Tower Automotive, Inc.(1) 130,000 1,625,000
-----------------------------------------------------------------------
$ 3,882,187
-----------------------------------------------------------------------
Banks -- 8.7%
-----------------------------------------------------------------------
Bank of America Corp. 36,000 $ 1,548,000
Chase Manhattan Corp. (The) 75,000 3,454,687
Firstar Corp. 110,000 2,316,875
FleetBoston Financial Corp. 45,000 1,530,000
Mellon Financial Corp. 85,000 3,097,187
Wells Fargo & Co. 50,000 1,937,500
-----------------------------------------------------------------------
$ 13,884,249
-----------------------------------------------------------------------
Beverages -- 1.2%
-----------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 25,000 $ 1,867,187
-----------------------------------------------------------------------
$ 1,867,187
-----------------------------------------------------------------------
Chemicals -- 3.2%
-----------------------------------------------------------------------
Air Products and Chemicals, Inc. 24,000 $ 739,500
Dow Chemical Co. (The) 60,000 1,811,250
Rohm and Haas Co. 75,000 2,587,500
-----------------------------------------------------------------------
$ 5,138,250
-----------------------------------------------------------------------
Communications Equipment -- 2.5%
-----------------------------------------------------------------------
ALLTEL Corp. 65,000 $ 4,025,937
-----------------------------------------------------------------------
$ 4,025,937
-----------------------------------------------------------------------
Communications Services -- 2.0%
-----------------------------------------------------------------------
GTE Corp. 50,000 $ 3,112,500
-----------------------------------------------------------------------
$ 3,112,500
-----------------------------------------------------------------------
Computers and Business Equipment -- 2.4%
-----------------------------------------------------------------------
International Business Machines Corp. 35,000 $ 3,834,687
-----------------------------------------------------------------------
$ 3,834,687
-----------------------------------------------------------------------
Consumer Non-Durables -- 2.7%
-----------------------------------------------------------------------
Kimberly-Clark Corp. 75,000 $ 4,303,125
-----------------------------------------------------------------------
$ 4,303,125
-----------------------------------------------------------------------
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Diversified Manufacturing and Services -- 3.1%
-----------------------------------------------------------------------
Applied Power, Inc., Class A 35,000 $ 1,172,500
Honeywell International, Inc. 85,000 2,863,437
Pentair, Inc. 23,000 816,500
-----------------------------------------------------------------------
$ 4,852,437
-----------------------------------------------------------------------
Drugs -- 0.7%
-----------------------------------------------------------------------
American Home Products Corp. 19,000 $ 1,116,250
-----------------------------------------------------------------------
$ 1,116,250
-----------------------------------------------------------------------
Electric Utilities -- 3.0%
-----------------------------------------------------------------------
Duke Energy Corp. 30,000 $ 1,691,250
PECO Energy Co. 75,000 3,023,437
-----------------------------------------------------------------------
$ 4,714,687
-----------------------------------------------------------------------
Electronics - Semiconductors and Related -- 1.3%
-----------------------------------------------------------------------
Dallas Semiconductor Corp. 50,000 $ 2,037,500
-----------------------------------------------------------------------
$ 2,037,500
-----------------------------------------------------------------------
Entertainment and Leisure -- 0.8%
-----------------------------------------------------------------------
Carnival Corp. 67,000 $ 1,306,500
-----------------------------------------------------------------------
$ 1,306,500
-----------------------------------------------------------------------
Financial - Miscellaneous -- 4.6%
-----------------------------------------------------------------------
Associates First Capital Corp. 75,000 $ 1,673,438
Concord EFS, Inc.(1) 85,000 2,210,000
Federal National Mortgage Association 65,000 3,392,188
-----------------------------------------------------------------------
$ 7,275,626
-----------------------------------------------------------------------
Foods -- 4.5%
-----------------------------------------------------------------------
Dean Foods Co. 50,000 $ 1,584,375
Nabisco Holdings Corp., Class A 75,000 3,937,500
Sara Lee Corp. 85,000 1,641,563
-----------------------------------------------------------------------
$ 7,163,438
-----------------------------------------------------------------------
Industrial Equipment -- 0.6%
-----------------------------------------------------------------------
Regal-Beloit Corp. 60,000 $ 963,750
-----------------------------------------------------------------------
$ 963,750
-----------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
GROWTH & INCOME PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Information Services -- 1.5%
-----------------------------------------------------------------------
Automatic Data Processing, Inc. 45,000 $ 2,410,313
-----------------------------------------------------------------------
$ 2,410,313
-----------------------------------------------------------------------
Insurance -- 4.5%
-----------------------------------------------------------------------
Marsh & McLennan Cos., Inc. 8,000 $ 835,500
MetLife, Inc.(1) 175,000 3,685,938
XL Capital Ltd. 47,000 2,543,875
-----------------------------------------------------------------------
$ 7,065,313
-----------------------------------------------------------------------
Investment Services -- 2.5%
-----------------------------------------------------------------------
Merrill Lynch & Co., Inc. 35,000 $ 4,025,000
-----------------------------------------------------------------------
$ 4,025,000
-----------------------------------------------------------------------
Medical Products -- 8.2%
-----------------------------------------------------------------------
Abbott Laboratories 100,000 $ 4,456,250
Bard (C.R.), Inc. 80,000 3,850,000
Johnson & Johnson Co. 47,000 4,788,125
-----------------------------------------------------------------------
$ 13,094,375
-----------------------------------------------------------------------
Metals - Industrial -- 1.6%
-----------------------------------------------------------------------
Alcan Aluminum Ltd. 80,000 $ 2,480,000
-----------------------------------------------------------------------
$ 2,480,000
-----------------------------------------------------------------------
Oil and Gas - Equipment and Services -- 1.6%
-----------------------------------------------------------------------
Halliburton Co. 55,000 $ 2,595,313
-----------------------------------------------------------------------
$ 2,595,313
-----------------------------------------------------------------------
Oil and Gas - Exploration and Production -- 5.8%
-----------------------------------------------------------------------
Apache Corp. 70,000 $ 4,116,875
Devon Energy Corp. 60,000 3,371,250
El Paso Energy Corp. 35,000 1,782,813
-----------------------------------------------------------------------
$ 9,270,938
-----------------------------------------------------------------------
Oil and Gas - Integrated -- 5.1%
-----------------------------------------------------------------------
BP Amoco PLC, ADR 75,000 $ 4,242,188
Conoco, Inc., Class A 175,000 3,850,000
-----------------------------------------------------------------------
$ 8,092,188
-----------------------------------------------------------------------
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Paper and Forest Products -- 2.2%
-----------------------------------------------------------------------
Mead Corp. (The) 70,000 $ 1,767,500
Willamette Industries, Inc. 65,000 1,771,250
-----------------------------------------------------------------------
$ 3,538,750
-----------------------------------------------------------------------
Printing and Business Products -- 1.2%
-----------------------------------------------------------------------
Valassis Communications, Inc.(1) 50,000 $ 1,906,250
-----------------------------------------------------------------------
$ 1,906,250
-----------------------------------------------------------------------
Publishing -- 5.0%
-----------------------------------------------------------------------
McGraw-Hill Cos., Inc. (The) 75,000 $ 4,050,000
New York Times Co. (The), Class A 100,000 3,950,000
-----------------------------------------------------------------------
$ 8,000,000
-----------------------------------------------------------------------
REITS -- 1.8%
-----------------------------------------------------------------------
Duke-Weeks Realty Corp. 125,000 $ 2,796,875
-----------------------------------------------------------------------
$ 2,796,875
-----------------------------------------------------------------------
Retail - Food and Drug -- 3.0%
-----------------------------------------------------------------------
CVS Corp. 55,000 $ 2,200,000
Safeway, Inc.(1) 55,000 2,481,875
-----------------------------------------------------------------------
$ 4,681,875
-----------------------------------------------------------------------
Retail - Specialty and Apparel -- 3.2%
-----------------------------------------------------------------------
Gap, Inc. (The) 25,000 $ 781,250
Haverty Furniture Cos., Inc. 100,000 850,000
TJX Companies, Inc. (The) 185,000 3,468,750
-----------------------------------------------------------------------
$ 5,100,000
-----------------------------------------------------------------------
Specialty Chemicals and Materials -- 1.6%
-----------------------------------------------------------------------
Bemis Co., Inc. 75,000 $ 2,521,875
-----------------------------------------------------------------------
$ 2,521,875
-----------------------------------------------------------------------
Telephone Utilities -- 3.2%
-----------------------------------------------------------------------
BellSouth Corp. 80,000 $ 3,410,000
SBC Communications, Inc. 40,000 1,730,000
-----------------------------------------------------------------------
$ 5,140,000
-----------------------------------------------------------------------
Transportation -- 1.9%
-----------------------------------------------------------------------
CNF Transportation, Inc. 100,000 $ 2,275,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
GROWTH & INCOME PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Transportation (continued)
-----------------------------------------------------------------------
Union Pacific Corp. 21,000 $ 780,938
-----------------------------------------------------------------------
$ 3,055,938
-----------------------------------------------------------------------
Total Common Stocks
(identified cost $141,339,764) $155,253,313
-----------------------------------------------------------------------
</TABLE>
CORPORATE BONDS -- 0.0%
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
-----------------------------------------------------------------------
H. P. Hood & Son, 7.50%, 2/1/01(2) $ 50 $ 46,900
-----------------------------------------------------------------------
Total Corporate Bonds
(identified cost, $50,000) $ 46,900
-----------------------------------------------------------------------
</TABLE>
COMMERCIAL PAPER -- 3.4%
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Associates Corp. of North America,
6.89%, 7/3/00 $ 5,365 $ 5,362,946
-----------------------------------------------------------------------
Total Commercial Paper
(at amortized cost, $5,362,946) $ 5,362,946
-----------------------------------------------------------------------
Total Investments -- 101.1%
(identified cost $146,752,710) $160,663,159
-----------------------------------------------------------------------
Other Assets, Less Liabilities -- (1.1)% $ (1,764,245)
-----------------------------------------------------------------------
Net Assets -- 100.0% $158,898,914
-----------------------------------------------------------------------
</TABLE>
ADR - American Depositary Receipt
REIT - Real Estate Investment Trust
(1) Non-income producing security.
(2) 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>
GROWTH & INCOME 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,
$146,752,710) $160,663,159
Cash 3,601
Interest and dividends receivable 207,166
------------------------------------------------------
TOTAL ASSETS $160,873,926
------------------------------------------------------
Liabilities
------------------------------------------------------
Payable for investments purchased $ 1,952,635
Payable to affiliate for Trustees' fees 3,742
Accrued expenses 18,635
------------------------------------------------------
TOTAL LIABILITIES $ 1,975,012
------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $158,898,914
------------------------------------------------------
Sources of Net Assets
------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $144,988,465
Net unrealized appreciation (computed on
the basis of identified cost) 13,910,449
------------------------------------------------------
TOTAL $158,898,914
------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JUNE 30, 2000
<S> <C>
Investment Income
------------------------------------------------------
Dividends (net of foreign taxes, $1,800) $ 1,554,172
Interest 118,660
------------------------------------------------------
TOTAL INVESTMENT INCOME $ 1,672,832
------------------------------------------------------
Expenses
------------------------------------------------------
Investment adviser fee $ 506,191
Trustees fees and expenses 7,055
Custodian fee 62,834
Legal and accounting services 16,913
Miscellaneous 1,437
------------------------------------------------------
TOTAL EXPENSES $ 594,430
------------------------------------------------------
NET INVESTMENT INCOME $ 1,078,402
------------------------------------------------------
Realized and Unrealized Gain (Loss)
------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 10,400,465
------------------------------------------------------
NET REALIZED GAIN $ 10,400,465
------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(15,409,131)
------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(15,409,131)
------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (5,008,666)
------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (3,930,264)
------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
GROWTH & INCOME PORTFOLIO AS OF JUNE 30, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) DECEMBER 31, 1999
<S> <C> <C>
-----------------------------------------------------------------------------
From operations --
Net investment income $ 1,078,402 $ 1,771,211
Net realized gain 10,400,465 30,011,809
Net change in unrealized appreciation
(depreciation) (15,409,131) (25,613,190)
-----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (3,930,264) $ 6,169,830
-----------------------------------------------------------------------------
Capital transactions --
Contributions $ 10,463,267 $ 27,839,161
Withdrawals (24,681,535) (28,078,305)
-----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (14,218,268) $ (239,144)
-----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (18,148,532) $ 5,930,686
-----------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------
At beginning of period $ 177,047,446 $ 171,116,760
-----------------------------------------------------------------------------
AT END OF PERIOD $ 158,898,914 $ 177,047,446
-----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
GROWTH & INCOME 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/Supplementary Data
--------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.74%(1) 0.71% 0.72% 0.73% 0.73% 0.75%
Net investment income 1.34%(1) 0.99% 0.95% 1.37% 1.96% 2.30%
Portfolio Turnover 91% 126% 95% 93% 114% 108%
--------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $158,899 $177,047 $171,117 $143,348 $122,963 $107,717
--------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
GROWTH & INCOME PORTFOLIO AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
-------------------------------------------
Growth & Income Portfolio (the Portfolio) is registered under the Investment
Company Act of 1940, as amended, as a diversified open-end investment
company. The Portfolio, which was organized as a trust under the laws of the
State of New York on May 1, 1992, seeks to achieve growth of principal and
income by investing primarily in common stocks of companies that appear to
offer good prospects for increases in both earnings and dividends. 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 Valuation -- Securities listed on foreign or U.S. securities
exchanges or in the NASDAQ National Market System generally are valued at
closing sale prices or, if there were no sales, at the mean between the
closing bid and asked prices on the exchange where such securities are
principally traded or on such National Market System. Unlisted or listed
securities for which closing sale prices are not available are valued at the
mean between the latest available bid and asked prices on the principal
market where the security was traded. An option is valued at the last sale
price as quoted on the principal exchange or board of trade on which such
option or contract is traded or, in the absence of a sale, at the mean
between the last bid and asked prices. Futures positions on securities or
currencies are generally valued at closing settlement prices. Short-term debt
securities with a remaining maturity of 60 days or less are valued at
amortized cost. If securities were acquired with a remaining maturity of more
than 60 days, their amortized cost value will be based on their value on the
sixty-first day prior to maturity. Other fixed income and debt securities,
including listed securities and securities for which price quotations are
available, will normally be valued on the basis of valuations furnished by a
pricing service. Securities for which market quotations are unavailable,
including any security the disposition of which is restricted under the
Securities Act of 1933, and other assets will be appraised at their fair
value as determined in good faith by or at the direction of the Trustees.
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
United States 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 one of the Portfolio's investors is a regulated investment
company that invests all or substantially all of its 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.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to 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 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. For the six months
ended June 30, 2000, $547 in credit balances were used to reduce the
Portfolio's custodian fee.
E Other -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed based on the specific identification
of the securities sold.
F Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
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 opinion of the
Portfolio's management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
17
<PAGE>
GROWTH & INCOME PORTFOLIO AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
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 at the annual rate of 5/8 of 1%, representing 0.625% (annualized)
of average daily net assets. For the six months ended June 30, 2000, the fee
amounted to $506,191. 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 officers and Trustees of the Portfolio are officers 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 portion of
their annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the six months ended June 30, 2000, no significant
amounts have been deferred.
3 Investment Transactions
-------------------------------------------
Purchases and sales of investments, other than short-term obligations,
aggregated $145,502,821 and $161,401,409, respectively, for the six months
ended June 30, 2000.
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, were as follows:
<TABLE>
<S> <C>
AGGREGATE COST $146,752,710
------------------------------------------------------
Gross unrealized appreciation $ 21,659,194
Gross unrealized depreciation (7,748,745)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 13,910,449
------------------------------------------------------
</TABLE>
5 Line of Credit
-------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $150 million unsecured line of credit agreement
with a group of banks. Borrowings will be made by the Portfolio solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each participating portfolio or fund
based on its borrowings at an amount above either 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.
18
<PAGE>
EATON VANCE GROWTH & INCOME FUND AS OF JUNE 30, 2000
INVESTMENT MANAGEMENT
EATON VANCE GROWTH & INCOME 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
GROWTH & INCOME PORTFOLIO
Officers
James B. Hawkes
President and Trustee
Michael R. Mach
Vice President and Portfolio
Manager
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
19
<PAGE>
INVESTMENT ADVISER OF GROWTH & INCOME PORTFOLIO
Boston Management and Research
The Eaton Vance Building
255 State Street
Boston, MA 02109
ADMINISTRATOR OF EATON VANCE GROWTH & INCOME FUND
Eaton Vance Management
The Eaton Vance Building
255 State Street
Boston, MA 02109
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 GROWTH & INCOME FUND
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
173-8/00 GNCSRC
