<PAGE>
TO SHAREHOLDERS
During the year ending December 31, 1994, EV Traditional Stock Fund had a total
return of -4.1 percent, excluding the maximum sales charge. That return was the
result of a decline in net asset value to $10.90 per share from $12.49 per share
onDecember 31, 1993 and the reinvestment of $0.25 in income dividends and $0.825
in capital gain distributions. By comparison, the S&P500, an unmanaged index of
common stocks, had a total return of 1.4 percent for the same period.
The economy continued to grow solidly throughout the year, although investors
found the period to be extremely difficult. During the year, the stock market
watched nervously for signs of rising inflation as the Federal Reserve increased
short term rates six times. Overall, the interest rate increase was greater than
many analysts anticipated. Inflation remained in the range of 2.7 percent for
the year.
The increasing interest rates had a significant negative effect on
interest-sensitive stocks, most notably the stocks of real estate investment
trusts, financial service companies and utilities. The year also was
characterized by great volatility both in the prices of individual stocks and
entire sectors of the market.
Cyclical stocks were among the better performers during the first half of the
year.During the second six months, growth stocks rallied.
PORTFOLIO STRATEGY
EV Traditional Stock Fund seeks total return for its shareholders by investing
for both growth and income.
EV TRADITIONAL STOCK FUND
THE PORTFOLIO'S 10 LARGEST HOLDINGS*
Eastman Kodak Co..............Photographic products
Exxon Corp.......................Petroleum products
J.C. Penney..................................Retail
Pepsico Inc.....................Beverages, consumer
Texas Instruments.....................Semiconductor
Harcourt General Inc.....................Publishing
General Motors...........................Automotive
Loctite Corp....................Specialty chemicals
Sears Roebuck................................Retail
McGraw-Hill Inc..........................Publishing
*as of 12/31/94
During the year, the Portfolio's performance was buoyed by a number of stocks,
including:
LOCTITE. This company manufactures sealants and adhesives. It was a strong
performer in 1994 and has significant international business that should help
its earnings in the future.
GILLETTE. This consumer products company should benefit from its prominent
international presence.
EASTMAN KODAK This internationally known company has reorganized with new top
management and seems poised to take advantage of business opportunities in 1995.
Of course, past performance is no guarantee of future returns, but we believe
that a combination of income-producing and growth stocks will provide a
satisfactory long-term total return.
Sincerely,
/s/James B. Hawkes
James B. Hawkes,
President
February 21, 1995
[Photograph James B. Hawkes]
<PAGE>
An interview with Duncan W. Richardson,
Vice President and manager of the Stock Portfolio.
Q. DUNCAN, HOW WOULD YOU CHARACTERIZE THE PAST YEAR FOR EQUITY INVESTORS?
A. To say it was a difficult year would be an understatement. The Fed's
greater-than-expected moves to increase interest rates -- six times in all
-- depressed prices of stocks in many sectors. As a result, you could almost
describe the year as schizophrenic. During the first half of the year,
cyclicals were popular, while during the second half, growth stocks rallied.
And the market also was nervous, with investors focusing much more on "bad
news" than on good earnings.
Q. IN TERMS OF THE HOLDINGS IN THE PORTFOLIO, WHAT KINDS OF STOCKS WERE
AFFECTED BY RISING INTEREST RATES?
A. Utilities are often cited as an example of interest rate-sensitive stocks.
Our Portfolio was underweighted with utility stocks, but it still suffered
as the prices of utility stocks fell throughout the year. The Portfolio also
contains stocks of real estate investment trusts (REITs) and financial
service companies, all of which can react to changes in interest rates.
Q. DOES THAT MEAN THAT IF INTEREST RATES PEAK, THESE STOCK PRICES COULD
IMPROVE?
A. Yes. Obviously, no one can predict what's going to happen to interest rates.
But if they are near or at their peak, as some analysts believe, the prices
of interest-sensitive stocks could potentially rebound.
Q. YOU DESCRIBE THE MARKET AS NERVOUS. HOW DID THIS AFFECT INDIVIDUAL STOCKS?
A. The market was quick to punish companies for the least bit of disappointing
news. In some cases, companies were punished for only meeting expectations.
In other cases, bad news about one company caused investors to flee an
entire market segment, depressing the prices of many stocks within it. In
the Portfolio, we have a number of consumer services stocks, a segment that
includes retail, and 1995 was not a good year for retail stocks. Automotive
stocks also declined as the year progressed, despite strong earnings gains.
The sustainability of these and other cyclical earnings gains in a higher
interest rate, slower growth economy, was increasingly suspect.
Q. WHAT IS THE INVESTMENT STRATEGY OF THE PORTFOLIO?
A. The basic strategy is two-pronged and is designed to provide the investor
with substantial total return. We generally invest in blue chip companies
that we believe demonstrate superior prospects for growth.We also invest in
stocks that pay high yields -- integrated oils, utilities and REITs, for
instance.All of the investment ideas are generated from the "bottom up"
fundamental research performed by our analysts.
Q. WHAT ARE SOME OF THE PORTFOLIO'S SUCCESS STORIES THIS YEAR?
A. A number of stocks performed well for us. Gillette Co. is one. It did well
in 1994 and is positioned to take advantage of international growth
opportunities in 1995. Eastman Kodak is another large, well known company
with a terrific base of business on which to build. The company is
benefiting from a restructuring and a change in top leadership. It's a story
that we believe will get better in 1995.
Q. ARE THERE OTHER STOCKS IN THE PORTFOLIO FOR WHICH YOU HAVE HIGH HOPES?
A. Yes. One is Exxon. It's a large petroleum products company with a proven
record of growth, and it's expected to benefit from the end of litigation
over the Exxon Valdez supertanker incident. There are a number of publishing
stocks in the Portfolio -- Harcourt General, McGraw Hill and Houghton
Mifflin. The educational publishing business goes through distinct cycles,
and we're now at the beginning of a time when states are making major
purchases of textbooks. We are looking for the business of these companies
to be very strong starting in 1995, somewhat independent of changes in the
economy. The time to own these stocks is before this buying boom begins, and
that's why they're in the Portfolio right now.
Q. HAVE YOU SET GOALS FOR THE PORTFOLIO IN 1995?
A. It could very well be a second year of less-than-historical returns for the
equity market. Still, our goal is to consistently outperform the market
returns.This stage of the economic cycle argues for some conservatism.We
want to intelligently take market risks based on our assessment of
valuations and fundamentals.
[Photograph Duncan W. Richardson]
Q. THERE ARE THOSE ANALYSTS WHO BELIEVE THAT WE'RE ABOUT TO ENTER A PERIOD WHEN
GROWTH STOCKS ARE STRONGER. ARE YOU AMONG THEM?
A. We could see conditions under which the year-end rally in growth stocks
continues into 1995. For example, if interest rates successfully slow the
economy, the focus of investors will stay on steady earnings gains that many
of these growth companies deliver in a sluggish economy. I feel we are
unlikely to have more than a modest slowdown in 1995 and that the worldwide
economic expansion will resume in 1996 and beyond.
Q. HOW WILL THAT PHILOSOPHY AFFECT THE INVESTMENTS THAT YOU MAKE?
A. We're keeping a somewhat higher than normal cash reserve that we'll use to
take advantage of any opportunities that we might see as the year
progresses. Our purchases of growth stocks will be opportunistic ones, but
we'll be keeping a substantial weighting in more economically sensitive
sectors.
<PAGE>
Comparison of Change in Value of a $10,000 Investment in EV Traditional Stock
Fund and the S&P 500 Stock Index From January 1, 1985 through December 31, 1994.
1 5 10
Average Annual Returns Year Years Years
- ---------------------- ---- ----- -----
Incl. Max. Sales Charge -8.7% 4.5% 11.1%
Excl. Max. Sales Charge -4.1% 5.5% 11.7%
Traditional
Stock Fund S&P 500
12/84 9522 10000
1/85 10191 10741
2/85 10390 10834
3/85 10456 10918
4/85 10582 10868
5/85 11035 11455
6/85 11303 11715
7/85 11150 11658
8/85 11218 11518
9/85 10828 11238
10/85 11512 11716
11/85 12121 12478
12/85 12593 13164
1/86 12622 13195
2/86 13366 14139
3/86 13985 15013
4/86 13810 14801
5/86 14348 15544
6/86 14699 15894
7/86 14185 14961
8/86 15202 16026
9/86 14028 14790
10/86 14574 15599
11/86 14783 15934
12/86 14536 15615
1/87 16051 17673
2/87 16440 18325
3/87 16506 18945
4/87 16048 18728
5/87 16193 18841
6/87 16798 19890
7/87 17385 20850
8/87 18232 21578
9/87 17927 21203
10/87 14888 16589
11/87 13967 15173
12/87 14826 16424
1/88 15604 17088
2/88 16019 17802
3/88 15421 17358
4/88 15459 17522
5/88 15804 17578
6/88 16372 18508
7/88 16335 18408
8/88 15999 17698
9/88 16658 18567
10/88 17060 19049
11/88 16783 18689
12/88 17051 19133
1/89 18110 20494
2/89 17676 19901
3/89 17893 20487
4/89 18796 21513
5/89 19398 22269
6/89 19166 22291
7/89 20753 24261
8/89 21264 24638
9/89 21264 24675
10/89 20998 24054
11/89 21249 24452
12/89 21982 25177
1/90 20622 23445
2/90 20969 23645
3/90 21436 24416
4/90 21117 23759
5/90 22868 25945
6/90 22746 25945
7/90 22899 25809
8/90 21072 23375
9/90 20396 22396
10/90 20635 22246
11/90 21744 23579
12/90 22111 24393
1/91 22387 25406
2/91 23463 27115
3/91 23856 27923
4/91 23755 27933
5/91 24513 29011
6/91 23651 27862
7/91 24620 29112
8/91 25089 29684
9/91 24742 29351
10/91 25179 29699
11/91 24269 28394
12/91 26855 31793
1/92 25911 31160
2/92 26277 31458
3/92 26027 30993
4/92 26724 31858
5/92 27228 31889
6/92 26492 31584
7/92 27758 32827
8/92 27368 32040
9/92 27524 32579
10/92 27975 32648
11/92 28680 33635
12/92 28715 34212
1/93 28351 34453
2/93 28394 34814
3/93 29101 35701
4/93 28132 34794
5/93 28433 35584
6/93 28519 35870
7/93 28628 35679
8/93 29407 36908
9/93 29450 36794
10/93 29971 37508
11/93 29297 37023
12/93 29920 37645
1/94 31004 38868
2/94 30282 37700
3/94 28885 36229
4/94 29347 36647
5/94 29589 37101
6/94 28887 36384
7/94 29507 37530
8/94 30140 38941
9/94 29361 38162
10/94 29496 38959
11/94 28176 37420
12/94 28686 38156
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD.
*Investment operations commenced on 9/23/31.
THE FUND'S PERFORMANCE
In accordance with guidelines issued by the Securities and Exchange Commission,
the chart above compares the Fund's total return with that of a broad-based
securities market index. The lines on the chart represent the total returns of a
$10,000 hypothetical investment in the Fund and the S&P 500 Stock Index.
TOTAL RETURN FIGURES
The solid line on the chart represents the Fund's performance, and includes the
Fund's maximum current sales charge of 4.75%. The Fund's total return figure
reflects Fund expenses and Portfolio transaction costs, and assumes the
reinvestment of income dividends and capital gain distributions.
The dotted line represents the performance of the S&P 500 Stock Index, a
broad-based, widely recognized unmanaged index of 500 common stocks. The Index's
total return does not reflect any commissions or expenses that would be incurred
if an investor individually purchased or sold the securities represented in the
Index.
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
EV TRADITIONAL STOCK FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------------------------
December 31, 1994
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investment in Stock Portfolio (Portfolio) at value (Note 1A) $ 84,324,132
Receivable for Fund shares sold and dividend reinvestments 148,569
Deferred organization expenses (Note 1D) 10,542
------------
Total assets $ 84,483,243
LIABILITIES:
Payable for Fund shares redeemed $ 154,876
Accrued Trustees fees 1,520
Accrued distribution fees 407
Accrued transfer agent fees 11,289
Accrued organizational expense 3,386
Accrued expenses 13,020
----------
Total liabilities 184,498
------------
NET ASSETS for 7,731,141 shares of beneficial interest outstanding $ 84,298,745
============
SOURCES OF NET ASSETS:
Proceeds from sales of shares (including
shares issued to shareholders electing
to receive payment of distributions in shares),
less cost of shares redeemed $ 77,935,698
Unrealized appreciation of investments 6,335,539
Undistributed net investment income 27,508
------------
Total net assets $ 84,298,745
============
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($84,298,745 / 7,731,141 shares of beneficial interest) $10.90
=====
COMPUTATION OF OFFERING PRICE:
Offering price per share (100/95.25 of $10.90) $11.44
=====
On sales of $100,000 or more, the offering price is reduced.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
FINANCIAL STATEMENTS (Continued)
<CAPTION>
- -----------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -----------------------------------------------------------------------------------------------
For the Year Ended December 31, 1994
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME (NOTE 1B):
Dividend income $ 1,574,888
Interest 102,846
Dividend income allocated from Portfolio 1,042,401
Interest allocated from Portfolio 127,312
Expenses allocated from Portfolio (267,477)
------------
Total investment income $ 2,579,970
Expenses --
Investment adviser fee (Note 5) $ 350,884
Service fees (Note 6) 45,471
Compensation of Trustees not members of the
Investment adviser's organization 6,045
Custodian fees (Note 5) 51,898
Legal and accounting services 22,509
Transfer and dividend disbursing agent fees 77,928
Printing and postage 35,891
Registration fees 24,917
Amortization of organization expenses (Note 1D) 958
Miscellaneous 27,721
------------
Total expenses 644,222
------------
Net investment income $ 1,935,748
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (identified cost basis) --
Investment transactions $ 8,057,041
Net realized loss from Portfolio (identified cost
basis) --
Investment transactions (2,023,461)
------------
Net realized gain on investments ($6,074,623 net
gain as computed for federal income tax purposes) 6,033,580
Change in unrealized appreciation of investments (11,860,323)
------------
Net realized and unrealized loss on investments (5,826,743)
------------
Net decrease in net assets resulting from operations $ (3,890,995)
------------
------------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------
1994 1993
------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income $ 1,935,748 $ 1,803,867
Net realized gain on investments 6,033,580 8,338,667
Decrease in unrealized appreciation of investments (11,860,323) (5,168,421)
------------ -----------
Net increase (decrease) in net assets resulting from
operations $ (3,890,995) $ 4,974,113
Undistributed net investment income included in price
of shares sold and shares reacquired -- 1,022,274
Distributions to shareholders --
From net investment income (1,865,334) (1,810,329)
From net realized gains on investment transactions (6,033,580) (8,364,484)
In excess of net realized gains of investment
transactions (41,043) --
Tax return of capital (27,542) --
Net increase (decrease) from Fund share transactions
(Note 3) (1,355,365) 10,391,689
------------ -----------
Total increase (decrease) in net assets $(13,213,859) $ 6,213,263
NET ASSETS:
Beginning of year 97,512,604 91,299,341
------------ -----------
End of year (including undistributed net investment
income of $27,508 and $0, respectively) $ 84,298,745 $97,512,604
------------ -----------
------------ -----------
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
FINANCIAL STATEMENTS (Continued)
<CAPTION>
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------
1994 1993 1992 1991<F5> 1990<F5>
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE -- Beginning of year $12.490 $13.480 $14.030 $13.070 $14.710
------- ------- ------- ------- -------
Income from investment operations:
Net investment income $ 0.250 $ 0.270<F2> $ 0.312 $ 0.449 $ 0.564
Net realized and unrealized gain (loss) on investments (0.765) 0.270<F2> 0.658 2.191 (0.504)
------- ------- ------- ------- -------
Total income (loss) from investment operations $(0.515) $ 0.540 $ 0.970 $ 2.640 $(0.060)
------- ------- ------- ------- -------
Less distributions:
From net investment income $(0.250) $(0.270) $(0.320) $(0.460) $(0.630)
From net realized gain on investments (0.765) (1.260) (1.200) (1.220) (1.070)
In excess of net realized gains (0.060) -- -- -- --
Tax return of capital -- -- -- -- --
------- ------- ------- ------- -------
Total distributions $(1.075) $(1.530) $(1.520) $(1.680) $(1.700)
------- ------- ------- ------- -------
NET ASSET VALUE -- end of year $10.900 $12.490 $13.480 $14.030 $13.070
------- ------- ------- ------- -------
------- ------- ------- ------- -------
TOTAL RETURN<F4> (4.12%) 4.19% 6.93% 21.45% 0.59%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's omitted) $84,299 $97,513 $91,299 $91,844 $80,642
Ratio of expenses to average net assets<F1> 0.98% 0.96% 0.92% 0.94% 0.99%
Ratio of net investment income to average net assets 2.09% 2.01% 2.29% 3.23% 4.02%
PORTFOLIO TURNOVER<F3> 66% 105% 59% 42% 42%
<FN>
<F1>Includes the Fund's share of Stock Portfolio's allocated expenses for the period from August 1, 1994, to December 31, 1994.
<F2>Computed on an average share basis.
<F3>Portfolio Turnover represents the rate of portfolio activity for the period while the Fund was making investments directly in
securities. The portfolio turnover for the period since the Fund transferred substantially all of its investable assets to the
Portfolio is shown in the Portfolio's financial statements which are included elsewhere in this report.
<F4>Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the
last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on
the record date.
<F5>Audited by previous auditors.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
EV Traditional Stock Fund (the Fund), a Massachusetts business trust, is
registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end, management investment company. The Fund is a series in
the Eaton Vance Securities Trust. On August 1, 1994, the Fund transferred
substantially all of its investable assets to the Stock Portfolio (the
Portfolio). Prior to this date the Fund's name was Eaton Vance Stock Fund. The
Fund invests all of its investable assets in interests in 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 (98.6% at December 31, 1994). The performance of
the Fund is directly affected by the performance of the Portfolio. The financial
statements of the Portfolio, including the portfolio of investments, are
included elsewhere in this report and should be read in conjunction with the
Fund's financial statements. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of its
financial statements. The policies are in conformity with generally accepted
accounting principles.
A. INVESTMENT VALUATIONS -- Valuations of securities by the Portfolio is
discussed in Note 1 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.
B. INCOME -- The Fund's net investment income consists of the Fund's pro rata
share of the net investment income of the Portfolio, less all actual and accrued
expenses of the Fund. Prior to the Fund's investment in the Portfolio, the Fund
held its investments directly.
C. EQUALIZATION -- Prior to January 1, 1994, the Fund followed the accounting
practice known as equalization by which a portion of the proceeds from the sales
and costs of reacquisitions of Fund shares was allocated to undistributed net
investment income. As a result, undistributed net invest- ment income per share
was unaffected by sales or reacquisitions of Fund shares. As of January 1, 1994,
the Fund discontinued the use of equalization. This change had no effect on the
Fund's net assets, net asset value per share, or its net increase or (decrease)
in net assets from operations. Discontinuing the use of equalization will result
in a simpler and more meaningful financial statement presentation.
D. FEDERAL TAXES -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable income, including any
net realized gain on investments, options and financial futures transactions.
Accordingly, no provision for federal income or excise tax is necessary.
E. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by the Fund in connection
with its organization, are being amortized on the straight-line basis over five
years.
F. OTHER -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income and dividends to shareholders
are recorded on the ex-dividend date. Dividend income may include dividends that
represent returns of capital for federal tax purposes. Gains or loss on the sale
of investments is determined on the identified cost basis.
G. DISTRIBUTIONS -- Generally accepted accounting principles require that
differences in the recognition or classification of income between the financial
statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
(2) LINE OF CREDIT
Through August 1, 1994, the Fund participated with other funds managed by EVM in
a $120 million unsecured line of credit with a bank. The line of credit consists
of a $20 million committed facility and a $100 million discretionary facility.
Borrowings will be made by the Fund solely to facilitate the handling of unusual
and/or unanticipated short-term cash requirements. Interest is charged to each
fund based on its borrowings at an amount above either the bank's adjusted
certificate of deposit rate, a variable adjusted certificate of deposit rate, or
a federal funds effective rate. In addition, a fee computed at an annual rate of
1/4 of 1% on the $20 million committed facility and or the daily unused portion
of the $100 million discretionary facility is allocated among the participating
funds at the end of each quarter. The Fund did not have any significant
borrowings or allocated fees during the period. This line of credit was assumed
by the Portfolio as of August 1, 1994 (see Note 4 of the Portfolio's financial
statements).
- --------------------------------------------------------------------------------
(3) FUND SHARES
The Fund under its indenture of trust is authorized to issue unlimited shares
$0.50 par value. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
For the Year Ended December 31,
---------------------------------------------------------------------
1994 1993
---------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- ---------------- ------------- ---------------
<S> <C> <C> <C> <C>
Sales 446,055 $ 5,497,292 330,760 $ 4,228,740
Shares issued in
reinvestment of
distributions 521,171 5,754,996 598,542 6,566,709
Shares issued for the net
assets of another
investment company -- -- 673,834 7,083,887
Shares redeemed (1,045,062) (12,607,653) (568,145) (7,487,647)
-------------- ---------------- ------------- ---------------
Net increase (decrease) (77,836) $ (1,355,365) 1,034,991 $10,391,689
-------------- ---------------- ------------- ---------------
-------------- ---------------- ------------- ---------------
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
(4) INVESTMENT TRANSACTIONS
On August 1, 1994, the Fund transferred substantially all of its assets to the
Portfolio in exchange for an interest in the Portfolio. Increases and decreases
in the Fund's investments for the period from January 1, 1994 to August 1, 1994
aggre gated $61,401,521 and $65,359,297, respectively. Increases and decreases
in the Fund's investments in the Portfolio for the period from August 1, 1994 to
December 31, 1994 aggregated $1,157,648 and $5,474,612, respectively.
<PAGE>
- --------------------------------------------------------------------------------
(5) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Prior to August 1, 1994 (when the Fund transferred sustantially all of its
assets to the Portfolio in exchange for an interest in the Portfolio), the Fund
retained Eaton Vance Management (EVM) as its investment adviser. The investment
adviser fee was earned by EVM as compensation for management and investment
advisory services rendered to the Fund. The fee was computed at the annual rate
of 5/8 of 1% of the Fund's average daily net assets. For the period from January
1 to August 1, 1994, the fee for such period amounted to $350,884. Since August
1, 1994, Eaton Vance has served only as the administrator of the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services. See
Note 3 of the Portfolio's Notes to Financial Statements which are included
elsewhere in this report. Except as to Trustees of the Fund and the Portfolio
who are not members of EVM's or BMR's organization, officers and Trustees
receive remuneration for their services to the Fund out of such investment
adviser fee.
Investors Bank & Trust Company (IBT), an affiliate of EVM, serves as custodian
of the Fund and the Portfolio. Pursuant to the respective custodian agreements,
IBT receives a fee reduced by credits which are determined based on the average
cash balances the Fund or the Portfolio maintains with IBT. Certain of the
officers and Trustees of the Fund and Portfolio are officers and
directors/trustees of the above organizations.
- --------------------------------------------------------------------------------
(6) SERVICE PLAN
The Trustees of the Fund adopted a Service Plan on July 7, 1993 designed to meet
the requirements of Rule 12b-1 under the Investment Company Act of 1940 and the
service fee requirements of the revised sales charge rule of The National
Association of Securities Dealers Inc. The Service Plan replaced the Fund's
distribution plan which became effective on December 27, 1990. The Service Plan
provides that the Fund may make service fee payments to the Principal
Underwriter, Eaton Vance Distributors, Inc., a subsidiary of Eaton Vance
Management, Authorized firms or other persons in amounts not exceeding .25% of
the Fund's average daily net assets for any fiscal year. The Trustees have
implemented the Service Plan by authorizing the Fund to make quarterly service
fee payments to the Principal Underwriter and Authorized Firms in amounts not
expected to exceed .25% of that portion of the Fund's average daily net assets
for any fiscal year which is attributable to shares of the Fund sold on or after
January 2, 1991 by such persons and remaining outstanding for at least twelve
months. Such payments are made for personal services and/or the maintenance of
shareholder accounts. During the fiscal year ended December 31, 1994 the Fund
made payments of $45,471 under the Plan to the Principal Underwriter and
Authorized Firms.
- --------------------------------------------------------------------------------
(7) ACQUISITION OF COMMONWEALTH INVESTMENT TRUST GROWTH FUND (CIT GROWTH FUND)
On December 17, 1993 the Trust acquired the net assets of CIT Growth Fund
pursuant to a plan of reorganization dated December 8, 1993 and approved by the
shareholders of both funds. The acquisition was accomplished by a tax free
exchange of 439,017 shares of CIT Growth Fund (valued at $8,346,241) for 673,834
shares of Stock Fund. CIT Growth Funds' net assets on that date ($8,346,241)
included investments with a cost of $7,071,066 and $1,262,354 of unrealized
appreciation. The aggregate net assets of the Trust after the acquisition was
$95,397,683.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of
EV Traditional Stock Fund, a series of Eaton Vance Securities Trust:
We have audited the accompanying statement of assets and liabilities of EV
Traditional Stock Fund (formerly Eaton Vance Stock Fund), a series of Eaton
Vance Securities Trust, as of December 31, 1994, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended and the financial highlights for
each of the three years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for each of
the two years in the period ended December 31, 1991, presented herein, were
audited by other auditors whose report dated January 21, 1992, expressed an
unqualified opinion on such financial highlights.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of December 31, 1994 by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of EV
Traditional Stock Fund, a series of Eaton Vance Securities Trust, as of December
31, 1994, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended and the
financial highlights for each of the three years in the period then ended, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 3, 1995
<PAGE>
- --------------------------------------------------------------------------------
STOCK PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
- --------------------------------------------------------------------------------
COMMON STOCKS -- 83.6%
- --------------------------------------------------------------------------------
SHARES SECURITY VALUE
- --------------------------------------------------------------------------------
ADVERTISING - 0.6%
10,000 Omnicom Group, Inc. $ 517,500
-----------
AEROSPACE & DEFENSE - 1.2%
30,000 General Motors Corp. Class H $ 1,046,250
-----------
AUTOMOTIVE - 3.4%
10,400 Chrysler Corp. $ 509,600
16,800 Ford Motor Co. 470,400
45,000 General Motors Corp. 1,901,250
-----------
$ 2,881,250
-----------
BANKS - 2.5%
40,000 Bank of Boston Corp. $ 1,035,000
8,500 Michigan National Corp. 635,375
30,000 Shawmut National Corp. 491,250
-----------
$ 2,161,625
-----------
BUSINESS PRODUCTS & SERVICES - 1.6%
25,000 Dun & Bradstreet Corp. $ 1,375,000
-----------
CAPITAL GOODS - 2.6%
30,000 Caterpillar Inc. $ 1,653,750
25,000 Greenfield Industries, Inc. 600,000
-----------
$ 2,253,750
-----------
CHEMICALS - 1.8%
20,000 DuPont (E.I.) deNemours & Co., Inc. $ 1,125,000
35,000 Methanex Corp.* 455,000
-----------
$ 1,580,000
-----------
COMPUTER SERVICES - 1.6%
35,000 General Motors Corp. Class E $ 1,347,500
-----------
CONSUMER GOODS & SERVICES - 9.2%
60,000 Eastman Kodak Co. $ 2,865,000
10,000 Gillette Co. 747,500
60,000 Pepsico, Inc. 2,175,000
12,100 Procter & Gamble Co. 750,200
120,000 Stride Rite Corp. 1,335,000
-----------
$ 7,872,700
-----------
ENVIRONMENTAL SERVICES - 1.8%
60,000 Wheelabrator Technologies, Inc. $ 885,000
25,000 WMX Technologies, Inc. 656,250
-----------
$ 1,541,250
-----------
<PAGE>
PORTFOLIO OF INVESTMENTS (Continued)
FINANCE & INSURANCE - 6.7%
50,000 American General Corp. $ 1,412,500
12,175 American International Group, Inc. 1,193,150
25,000 Eagle Financial Corp. 518,750
14,500 Federal National Mortgage Association 1,056,688
34,500 MGIC Investment Corp. Wisc. 1,142,813
10,000 UNUM Corp. 377,500
-----------
$ 5,701,401
-----------
HEALTH CARE - 0.5%
10,000 U.S. Healthcare, Inc. $ 412,500
-----------
INTEGRATED OIL - 9.1%
10,000 Amerada Hess Corp. $ 456,250
40,000 ELF Acquitaine ADR 1,410,000
40,000 Exxon Corp. 2,430,000
7,000 Royal Dutch Petroleum Co. 752,500
20,000 Total American Dep. Rcpts. Petro. ADR 590,000
49,000 Unocal Corp. 1,335,250
40,000 YPF Sociedad Anonima ADR 855,000
-----------
$ 7,829,000
-----------
MANUFACTURING - DIVERSIFIED - 1.9%
25,000 Illinois Tool Works, Inc. $ 1,093,750
20,000 Roper Industries, Inc. 505,000
-----------
$ 1,598,750
-----------
METALS & MINING - 2.7%
40,000 CasTech Aluminum Group, Inc.* $ 610,000
85,000 J & L Specialty Steel, Inc. 1,668,125
-----------
$ 2,278,125
-----------
PAPER & FOREST PRODUCTS - 1.9%
35,000 Williamette Industries, Inc. $ 1,662,500
-----------
PUBLISHING - 5.8%
55,000 Harcourt General, Inc. $ 1,938,750
20,000 Houghton Mifflin Co. 907,500
25,000 McGraw-Hill, Inc. 1,671,875
20,000 New York Times Co. Class A 442,500
-----------
$ 4,960,625
-----------
REITS - 5.0%
25,200 Chateau Properties, Inc. $ 551,250
16,000 Chelsea GCA Realty, Inc. 436,000
26,000 Columbus Realty Trust 481,000
20,000 Equity Residential Properties Trust 600,000
20,000 Nationwide Health Properties, Inc. 715,000
20,000 Post Properties, Inc. 630,000
20,000 ROC Communities, Inc. 420,000
14,200 Trinet Corporate Realty Trust, Inc. 415,350
-----------
$ 4,248,600
-----------
RETAILING - 5.8%
30,000 Gap Inc. $ 915,000
50,000 Penney (J.C.) Co. Inc. 2,231,250
40,000 Sears Roebuck & Co. 1,840,000
-----------
$ 4,986,250
-----------
SAVINGS & LOAN - 1.8%
95,000 Great Western Financial Corp. $ 1,520,000
-----------
SEMICONDUCTORS - 4.4%
25,000 Intel Corp. $ 1,596,875
29,000 Texas Instruments, Inc. 2,171,375
-----------
$ 3,768,250
-----------
SPECIALTY CHEMICALS - 3.8%
25,000 Great Lakes Chemical Corp. $ 1,425,000
40,000 Loctite Corp. 1,860,000
-----------
$ 3,285,000
-----------
TELECOMMUNICATIONS - 2.5%
30,000 Intelcom Group, Inc.* $ 397,500
30,000 Paging Network, Inc.* 1,020,000
25,000 Sprint Corp. 690,625
-----------
$ 2,108,125
-----------
UTILITIES - ELECTRIC - 0.6%
25,000 Sierra Pacific Resources $ 471,875
-----------
UTILITIES - NATURAL GAS - 0.8%
22,000 Enron Corp. $ 671,000
-----------
<PAGE>
PORTFOLIO OF INVESTMENTS (Continued)
UTILITIES - TELEPHONE - 3.4%
50,000 Alltel Corp. $ 1,506,250
24,000 Southwestern Bell Corp. 969,000
10,000 Telefonos de Mexico Sponsored ADR 410,000
-----------
$ 2,885,250
-----------
UTILITIES - OTHER - 0.6%
35,000 Washington Water Power Corp. $ 476,874
-----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $65,616,719) $71,440,950
-----------
- --------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS - 7.6%
- --------------------------------------------------------------------------------
15,000 Beverly Enterprises, 5.5s $ 885,000
40,000 Citicorp, $1.217, Series 15 765,000
30,000 Conagra Inc., Series E 982,500
10,000 Ford Motor Co., 8.4s 920,000
30,000 Freeport McMoRan Copper & Gold, 5% 622,500
28,000 Philippine Long Distance Telephone, 7% 1,515,500
10,000 Tejas Gas Corp., 5.25s 427,500
10,000 Valero Energy Corp., 6.5s 420,000
-----------
$ 6,538,000
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST, $6,388,025) $ 6,538,000
-----------
- --------------------------------------------------------------------------------
CONVERTIBLE BONDS - 4.2%
- --------------------------------------------------------------------------------
FACE AMOUNT
(000 OMITTED)
- ------------------------------------------------------------------------------
$ 500 Beverly Enterprises, 7.625s, 3/15/03 $ 475,000
920 INCO Ltd., 5.75s, 7/1/04 1,016,600
800 Lowes Companies, 3s, 7/22/03 1,064,000
2,000 Office Depot Lyons, 0s, 11/1/08 1,075,000
-----------
$ 3,630,600
-----------
TOTAL CONVERTIBLE BONDS
(IDENTIFIED COST, $3,269,143) $ 3,630,600
-----------
- --------------------------------------------------------------------------------
CORPORATE BOND - 0.0%
- --------------------------------------------------------------------------------
FACE AMOUNT
(000 OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------
$ 50 H.P. Hood & Son, 7.50s, 2/1/01 $ 39,400
-----------
TOTAL CORPORATE BONDS
(IDENTIFIED COST, $50,000) $ 39,400
-----------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 0.1%
- --------------------------------------------------------------------------------
$ 55 U.S. Treasury Note, 4.25s, 11/30/95 $ 53,573
-----------
TOTAL U.S. TREASURY OBLIGATION -
(IDENTIFIED COST, $55,077) $ 53,573
-----------
- --------------------------------------------------------------------------------
SHORT TERM INVESTMENTS - 4.2%
- --------------------------------------------------------------------------------
$1,994 American Express Credit Corp.,
5.875s, 1/3/95 $ 1,993,349
1,608 CXC Inc., 5.95s, 1/3/95 1,607,469
-----------
TOTAL SHORT TERM INVESTMENTS
AT AMORTIZED COST $ 3,600,818
-----------
TOTAL INVESTMENTS - 99.7%
(IDENTIFIED COST, $78,979,782) $85,303,341
OTHER ASSETS, LESS LIABILITIES - 0.3% 215,694
-----------
NET ASSETS - 100% $85,519,035
-----------
-----------
*Non-income producing security.
The accompanying Notes are an integral part
of the financial statements
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------------------------
December 31, 1994
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investments, at value (Note 1A) (identified cost, $78,979,782) $85,303,341
Cash 285
Dividends receivable 197,420
Interest receivable 49,785
Deferred organization expenses (Note 1E) 14,967
-----------
Total assets $85,565,798
LIABILITIES:
Demand note payable $44,000
Custodian fee payable 2,763
-------
Total liabilities 46,763
-----------
NET ASSETS applicable to investors' interest in Portfolio $85,519,035
===========
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and withdrawals $79,195,476
Net unrealized appreciation of investments (computed on the
basis of identified cost) 6,323,559
-----------
Total net assets $85,519,035
===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- ----------------------------------------------------------------------------------------------------
For the period from the start of business, August 1, 1994, to December 31, 1994
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 1,049,185
Interest 128,279
-----------
Total income $ 1,177,464
Expenses --
Investment adviser fee (Note 3) $ 230,928
Custodian fee (Note 3) 28,656
Legal and audit fees 7,381
Printing fees 378
Miscellaneous 1,955
-----------
Total expenses 269,298
-----------
Net investment income $ 908,166
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments (identified cost basis) $(2,035,741)
Change in unrealized appreciation on investments (1,601,217)
-----------
Net realized and unrealized loss on investments (3,636,958)
-----------
Net decrease in net assets resulting from operations $(2,728,792)
===========
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the period from the start of business, August 1, 1994, to December 31, 1994
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 908,166
Net realized loss on investment transactions (2,035,741)
Decrease in unrealized appreciation of investments (1,601,217)
-----------
Net decrease in net assets resulting from operations $(2,728,792)
-----------
Capital transactions --
Contributions $ 2,390,694
Withdrawals (5,494,445)
-----------
Decrease in net assets resulting from capital
transactions $(3,103,751)
-----------
Total increase in net assets $(5,832,543)
NET ASSETS:
At beginning of period 91,351,578
-----------
At end of period $85,519,035
===========
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
RATIOS (As a percentage of average net assets):
Expenses 0.73%+
Net investment income 2.45%+
PORTFOLIO TURNOVER 28%
+Computed on an annualized basis.
The accompanying notes are an integral part of the financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Stock Portfolio (the Portfolio) is registered under the Investment Company Act
of 1940 as a diversified open-end investment company which was organized as a
trust under the laws of the State of New York on May 1, 1992. The Declaration of
Trust permits the Trustees to issue beneficial interests in the Portfolio.
Investment operations began on August 1, 1994, with the acquisition of net
assets of $91,351,578 in exchange for an interest in the Portfolio by one of the
Portfolio's investors. The following is a summary of significant accounting
policies of the Portfolio. The policies are in conformity with generally
accepted accounting principles.
A. SECURITY VALUATIONS -- Investments in securities traded on a national
securities exchange or in the NASDAQ National Market are valued on the basis of
the last reported sales prices on the last business day of the period. If no
sale is reported on that date, a security is valued, if quoted on such a day, at
not lower than the old bid price nor higher than the asked prices. Prices on
such exchanges will not be used for valuing debt securities if in the Trustees
judgment, some other valuation method more accurately reflects the fair market
value of such a security. Securities for which over-the- counter market
quotations are readily available are valued on the basis of the mean between the
last bid and asked prices. Short-term securities are valued at cost, which
approximates market value. All other securities and assets are appraised to
reflect their fair value as determined in good faith by the Trustees.
B. INCOME TAXES -- The Portfolio is treated as a partnership for federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes. Since some of the
Portfolio's investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolio, the Portfolio normally must
satisfy the applicable source of income and diversification requirements (under
the Code) in order for its investors to satisfy them. The Portfolio will
allocate at least annually among its investors each investors' distributive
share of the Portfolio's net investment income, net realized capital gains, and
any other items of income, gain, loss, deduction or credit.
C. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line basis
over five years.
D. OTHER -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income is recorded on the
ex-dividend date. Realized gains and losses on the sale of investments are
determined on the identified cost basis.
- --------------------------------------------------------------------------------
(2) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than short-term obligations,
aggregated $24,023,691 and $28,283,045, respectively.
<PAGE>
- --------------------------------------------------------------------------------
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR), a
wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation for
manage- ment and investment advisory services rendered to the Portfolio. The fee
is at the annual rate of 5/8 of 1% of average daily net assets. For the period
from the start of business, August 1, 1994 to December 31, 1994, the fee
amounted to $230,928. 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 service to the Portfolio out of such investment adviser fee. Investors
Bank & Trust Company (IBT), an affiliate of EVM and BMR, serves as custodian of
the Portfolio. Pursuant to the custodian agreement, IBT receives a fee reduced
by credits which are determined based on the average daily cash balances the
Portfolio maintains with IBT. Certain of the officers and Trustees of the
Portfolio are officers and directors/trustees of the above organizations.
- --------------------------------------------------------------------------------
(4) LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $120 million unsecured line of credit agreement with
a bank. The line of credit consists of a $20 million committed facility and a
$100 million discretionary facility. Borrowings will be made by the Portfolio
solely to facilitate the handling of unusual and/or unanticipated short-term
cash requirements. Interest is charged to each portfolio based on its borrowings
at an amount above either the bank's adjusted certificate of deposit rate, a
variable adjusted certificate of deposit rate, or a federal funds effective
rate. In addition, a fee computed at an annual rate of 1/4 of 1% on the $20
million committed facility and on the daily unused portion of the $100 million
discretionary facility is allocated among the participating funds and portfolios
at the end of each quarter. The Portfolio did not have any significant
borrowings or allocated fees during the period. At December 31, 1994, the Fund
did not have an outstanding balance pursuant to the line of credit.
- --------------------------------------------------------------------------------
(5) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/depreciation in value of the investments
owned at December 31, 1994, as computed on a federal income tax basis, are as
follows:
Aggregate cost $78,949,996
-----------
-----------
Gross unrealized appreciation $ 9,092,097
Gross unrealized depreciation 2,740,912
-----------
Net unrealized appreciation $ 6,351,185
===========
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Trustees and Investors of Stock Portfolio:
We have audited the accompanying statement of assets and liabilities of Stock
Portfolio, including the portfolio of investments, as of December 31, 1994, the
related statement of operations, changes in net assets and supplementary data
for the period from August 1, 1994 (commencement of operations) to December 31,
1994. These financial statements and supplementary data are the responsibility
of the Portfolio's management. Our responsibility is to express an opinion on
these financial statements and supplementary data based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and supplementary data are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of December 31, 1994 by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and supplementary data referred to
above present fairly, in all material respects, the financial position of Stock
Portfolio as of December 31, 1994, the results of its operations, changes in its
net assets and supplementary data for the period from August 1, 1994
(commencement of operations) to December 31, 1994, in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 3, 1995
<PAGE>
-----------------------------------------------
INVESTMENT MANAGEMENT
EV TRADITIONAL OFFICERS TRUSTEES
STOCK FUND JAMES B. HAWKES DONALD R. DWIGHT
24 Federal Street President, Trustee President, Dwight
Boston, MA 02110 PETER F. KIELY Partners, Inc.
Vice President, Chairman,
Trustee Newspapers of
A. WALKER MARTIN New England, Inc.
Vice President SAMUEL L. HAYES,
JAMES L. O'CONNOR III
Treasurer Jacob H. Schiff
THOMAS OTIS Professor of
Secretary Investment Banking,
WILLIAM J. AUSTIN, Harvard
JR. University Graduate
Assistant Treasurer School of
JANET E. SANDERS Business
Assistant Treasurer Administration
and NORTON H. REAMER
Assistant Secretary President, United
Asset
Management
Corporation
JOHN L. THORNDIKE
Director, Fiduciary
Trust Company
JACK L. TREYNOR
Investment Adviser
and
Consultant
-----------------------------------------
STOCK PORTFOLIO OFFICERS TRUSTEES
24 Federal Street JAMES B. HAWKES DONALD R. DWIGHT
Boston, MA 02110 President, Trustee President, Dwight
PETER F. KIELY Partners, Inc.
Vice President, Chairman,
Trustee Newspapers of
A. WALKER MARTIN New England, Inc.
Vice President SAMUEL L. HAYES,
JAMES L. O'CONNOR III
Treasurer Jacob H. Schiff
THOMAS OTIS Professor of
Secretary Investment Banking,
WILLIAM J. AUSTIN, Harvard
JR. University Graduate
Assistant Treasurer School of
JANET E. SANDERS Business
Assistant Treasurer Administration
and NORTON H. REAMER
Assistant Secretary President, United
Asset
PORTFOLIO MANAGER Management
DUNCAN W. RICHARDSON Corporation
JOHN L. THORNDIKE
Director, Fiduciary
Trust Company
JACK L. TREYNOR
Investment Adviser
and
Consultant
<PAGE>
INVESTMENT ADVISER OF
STOCK PORTFOLIO
Boston Management and Research
24 Federal Street
Boston, MA 02110
ADMINISTRATOR OF
EV TRADITIONAL STOCK FUND
Eaton Vance Management
24 Federal Street
Boston, MA 02110
PRINCIPAL UNDERWRITER
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
CUSTODIAN
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
TRANSFER AGENT
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
INDEPENDENT AUDITORS
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its distribution plan,
sales charges and expenses. Please read the prospectus carefully before you
invest or send money.
EV TRADITIONAL STOCK FUND
24 FEDERAL STREET
BOSTON, MA 02110 T-STSRC
EV TRADITIONAL
STOCK
FUND
ANNUAL
SHAREHOLDER REPORT
DECEMBER 31, 1994
