<PAGE>
[E.V. LOGO]
MUTUAL FUNDS FOR PEOPLE [CALCULATOR GRAPHIC]
WHO PAY TAXES
Semiannual Report April 30, 1999
EATON VANCE
TAX-MANAGED
EMERGING
GROWTH
FUND
[FLAG GRAPHIC]
[CALCULATOR/PAPER GRAPHIC]
<PAGE>
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
INVESTMENT UPDATE
[PHOTO]
Edward E. (Jack) Smiley, CFA
Portfolio Manger
Investment Environment
- -------------------------------------------------------------------------------
THE ECONOMY
- - Over the past six months, the U.S. economy has continued the longest
uninterrupted growth period in its history. Real Gross Domestic Product (GDP)
was up 6.1% for the fourth quarter of 1998; in the first quarter of 1999,
GDP grew at a 4.5% annual rate. Low energy prices and increased global
economic competition helped keep inflation very low.
- - The first three months of 1999 were characterized by the continued strong
performance of domestic stock market indices. Continuing the pattern of 1998,
leadership in the U.S. stock market came from a small number of mega-cap
growth stocks.
- - In April, cyclical stocks led the Dow Jones Industrial Average to record
highs, fueled by investor belief that the economies of Latin America and Asia
may be finally on the rebound. Growth stocks, which dominated earlier
rallies, have underperformed.
The Fund
- -------------------------------------------------------------------------------
THE PAST SIX MONTHS
- - During the six months ended April 30, 1999, the Fund's Class A shares had a
total return of 14.38%.(1) This return was the result of an increase in net
asset value (NAV) to $10.82 on April 30, 1999 from $9.46 on October 31, 1998.
- - The Fund's Class B shares had a total return of 13.95%(1) during the period,
the result of an increase in NAV to $10.70 from $9.39.
- - The Fund's Class C shares had a total return of 13.88%(1) during the period,
the result of an increase in NAV to $10.67 from $9.37.
- - For comparison, during the six months ended 4/30/99, the S&P 600 Index had a
return of 9.03%, and the Lipper Small-Cap Funds category had an average
return of 14.75%.(2)
MANAGEMENT DISCUSSION
- - The Fund's objective is to achieve long-term after-tax returns by investing
in a diversified portfolio of equity securities of emerging growth companies.
- - The Fund emphasizes in-depth research and fundamental analysis to select
those emerging growth stocks with the best potential for long-term growth.
Management seeks to minimize taxable income for shareholders by investing in
low-yielding stocks and buying and holding stocks for the long term.
- - Over the past six months, the strongest sectors in the Fund have included
Internet-related stocks (such as Exodus Communications and Concentric
Network); the semiconductor group (including Applied Micro Circuits and
PMC-Sierra); and medical devices (MiniMed and Osteotech). Weaker sectors
included energy and hospital management.
PORTFOLIO HIGHLIGHTS
- - Speedway Motorsports, Inc., the Fund's largest holding, promotes, markets,
and sponsors motorsport activities in the U.S. In addition to owning and
operating six racing venues, the company also sponsors 15 racing events
annually.
- - Abacus Direct Corp. is the leading provider of information and research to
the direct marketing industry. The company maintains the largest proprietary
database in the U.S. of consumers' catalogue-purchasing behavior, which
marketers can use to improve direct mail response rates.
- - Medical devices manufacturer MiniMed has been among the Fund's strongest
holdings. The company is the #1 maker of external insulin pumps and related
products for the treatment of diabetes.
- -------------------------------------------------------------------------------
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 April 30, 1999
<TABLE>
<CAPTION>
Performance(3) Class A Class B Class C
- --------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------
One Year -3.22% -4.04% -4.13%
Life of Fund+ 5.05 4.35 4.16
SEC Average Annual Total Returns
(including sales charge or applicable CDSC)
- --------------------------------------------------------------------
One Year -8.77% -8.83% -5.09%
Life of Fund+ 1.23 1.25 4.16
</TABLE>
+Inception Dates -- Class A: 9/25/97; Class B: 9/29/97; Class C:9/29/97
<TABLE>
<CAPTION>
Ten Largest Holdings(4) By total net assets
- --------------------------------------------------
<S> <C>
Speedway Motorsports, Inc. 2.0%
Comverse Technology, Inc. 1.9
MiniMed, Inc. 1.9
National Data Corp. 1.6
Ethan Allen Interiors, Inc. 1.6
Swift Transportation Co., Inc. 1.5
Acxiom Corp. 1.5
Micrel, Inc. 1.5
Cullen/Frost Bankers, Inc. 1.5
Abacus Direct Corp. 1.5
</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 an Index or Lipper category. (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 equity holdings accounted for 16.5% 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 TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<S> <C> <C>
COMMON STOCKS -- 94.1%
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
- --------------------------------------------------------------------
Advertising -- 2.9%
- --------------------------------------------------------------------
Catalina Marketing Corp.(1) 24,000 $ 2,050,500
Harte-Hanks Communications, Inc. 54,600 1,378,650
Outdoor Systems, Inc.(1) 32,000 806,000
- --------------------------------------------------------------------
$ 4,235,150
- --------------------------------------------------------------------
Banks - Regional -- 2.7%
- --------------------------------------------------------------------
City National Corp. 43,000 $ 1,660,875
Cullen/Frost Bankers, Inc. 40,000 2,157,499
- --------------------------------------------------------------------
$ 3,818,374
- --------------------------------------------------------------------
Banks and Money Services -- 1.0%
- --------------------------------------------------------------------
Bank United Corp. 36,500 $ 1,473,688
- --------------------------------------------------------------------
$ 1,473,688
- --------------------------------------------------------------------
Broadcasting and Cable -- 0.8%
- --------------------------------------------------------------------
Heftel Broadcasting Corp.(1) 21,700 $ 1,179,938
- --------------------------------------------------------------------
$ 1,179,938
- --------------------------------------------------------------------
Broadcasting and Radio -- 0.6%
- --------------------------------------------------------------------
Entercom Communications Corp.(1) 24,800 $ 920,700
- --------------------------------------------------------------------
$ 920,700
- --------------------------------------------------------------------
Business Products and Services -- 1.6%
- --------------------------------------------------------------------
Apollo Group, Inc.(1) 45,000 $ 1,113,750
CN Maximus, Inc.(1) 46,000 1,196,000
- --------------------------------------------------------------------
$ 2,309,750
- --------------------------------------------------------------------
Business Services - Miscellaneous -- 8.3%
- --------------------------------------------------------------------
Concord EFS, Inc.(1) 29,000 $ 967,875
Diamond Technology Partners(1) 38,500 818,125
Exodus Communications, Inc.(1) 14,000 1,261,750
Human Genome Sciences, Inc.(1) 24,000 888,000
Iron Mountain, Inc.(1) 29,000 806,563
National Data Corp. 49,000 2,260,124
On Assignment, Inc.(1) 50,000 1,515,625
Pegasus Systems, Inc.(1) 22,000 1,028,500
Provant, Inc.(1) 31,000 558,000
Sylvan Learning Systems, Inc.(1) 36,300 912,038
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
- --------------------------------------------------------------------
Business Services - Miscellaneous (continued)
- --------------------------------------------------------------------
Whittman-Hart, Inc.(1) 30,000 $ 847,500
- --------------------------------------------------------------------
$ 11,864,100
- --------------------------------------------------------------------
Communications Equipment -- 1.9%
- --------------------------------------------------------------------
Comverse Technology, Inc.(1) 43,500 $ 2,789,437
- --------------------------------------------------------------------
$ 2,789,437
- --------------------------------------------------------------------
Communications Services -- 1.5%
- --------------------------------------------------------------------
Com21, Inc.(1) 19,000 $ 591,375
Concentric Network Corp.(1) 3,000 250,500
McLeodUSA, Inc.(1) 22,900 1,283,831
- --------------------------------------------------------------------
$ 2,125,706
- --------------------------------------------------------------------
Computer Software -- 1.1%
- --------------------------------------------------------------------
Brio Technology, Inc.(1) 45,450 $ 636,300
International Integration, Inc.(1) 46,000 960,250
Razorfish, Inc.(1) 1,000 43,500
- --------------------------------------------------------------------
$ 1,640,050
- --------------------------------------------------------------------
Consumer Services -- 1.2%
- --------------------------------------------------------------------
Strayer Education, Inc. 49,500 $ 1,713,938
- --------------------------------------------------------------------
$ 1,713,938
- --------------------------------------------------------------------
Distribution -- 0.8%
- --------------------------------------------------------------------
United Stationers(1) 70,000 $ 1,194,375
- --------------------------------------------------------------------
$ 1,194,375
- --------------------------------------------------------------------
Drugs -- 1.4%
- --------------------------------------------------------------------
Sepracor, Inc.(1) 24,000 $ 2,028,000
- --------------------------------------------------------------------
$ 2,028,000
- --------------------------------------------------------------------
Education -- 1.0%
- --------------------------------------------------------------------
Career Education Corp.(1) 16,550 $ 554,425
Devry, Inc.(1) 36,000 949,500
- --------------------------------------------------------------------
$ 1,503,925
- --------------------------------------------------------------------
Electrical Equipment -- 2.0%
- --------------------------------------------------------------------
Level One Communications, Inc.(1) 15,000 $ 770,625
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
Electrical Equipment (continued)
- --------------------------------------------------------------------
Micrel, Inc.(1) 37,000 $ 2,178,374
- --------------------------------------------------------------------
$ 2,948,999
- --------------------------------------------------------------------
Electronics - Instruments -- 5.1%
- --------------------------------------------------------------------
Applied Micro Circuits Corp.(1) 27,700 $ 1,476,756
Cognex Corp.(1) 45,200 1,310,800
Helix Technology Corp. 22,725 401,239
Microchip Technology, Inc.(1) 38,000 1,330,000
Novellus System, Inc.(1) 10,000 472,500
Qlogic Corp.(1) 15,000 1,049,063
Sanmina Corp.(1) 20,000 1,327,500
- --------------------------------------------------------------------
$ 7,367,858
- --------------------------------------------------------------------
Electronics - Semiconductors -- 4.1%
- --------------------------------------------------------------------
Dallas Semiconductor Corp. 31,000 $ 1,317,500
Linear Technologies Corp. 15,000 853,125
PMC-Sierra, Inc.(1) 18,000 1,725,750
Vitesse Semiconductor Corp.(1) 43,350 2,007,647
- --------------------------------------------------------------------
$ 5,904,022
- --------------------------------------------------------------------
Entertainment -- 3.7%
- --------------------------------------------------------------------
Cinar Films, Inc., Class B(1) 41,200 $ 860,050
MGM Grand, Inc.(1) 35,000 1,540,000
Speedway Motorsports, Inc.(1) 67,000 2,906,124
- --------------------------------------------------------------------
$ 5,306,174
- --------------------------------------------------------------------
Financial - Specialty -- 0.6%
- --------------------------------------------------------------------
Enhance Finance Service Group, Inc. 40,000 $ 827,500
- --------------------------------------------------------------------
$ 827,500
- --------------------------------------------------------------------
Foods -- 0.4%
- --------------------------------------------------------------------
Lance, Inc. 45,272 $ 628,149
- --------------------------------------------------------------------
$ 628,149
- --------------------------------------------------------------------
Furniture and Appliances -- 1.6%
- --------------------------------------------------------------------
Ethan Allen Interiors, Inc. 44,500 $ 2,255,593
- --------------------------------------------------------------------
$ 2,255,593
- --------------------------------------------------------------------
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
- --------------------------------------------------------------------
Health Care Services -- 0.3%
- --------------------------------------------------------------------
Eclipsys Corp.(1) 22,200 $ 488,400
- --------------------------------------------------------------------
$ 488,400
- --------------------------------------------------------------------
Health Services -- 8.0%
- --------------------------------------------------------------------
ABR Information Services, Inc.(1) 37,500 $ 656,250
Biomatrix, Inc.(1) 48,400 1,594,175
Compdent Corp.(1) 45,000 635,625
Express Scripts, Inc., Class A(1) 17,000 1,251,625
MedQuist, Inc.(1) 38,000 1,301,500
MiniMed, Inc.(1) 44,000 2,749,999
Province Healthcare Co.(1) 40,000 890,000
Renal Care Group, Inc.(1) 63,000 1,315,125
Sunrise Assisted Living, Inc.(1) 28,000 1,120,000
- --------------------------------------------------------------------
$ 11,514,299
- --------------------------------------------------------------------
Information Services -- 11.6%
- --------------------------------------------------------------------
Abacus Direct Corp.(1) 29,000 $ 2,145,999
Acxiom Corp.(1) 87,000 2,196,749
Affiliated Computer Services, Inc.,
Class A(1) 51,700 1,977,525
BISYS Group, Inc. (The)(1) 40,100 2,035,075
Dendrite International(1) 40,000 1,035,000
IDX Systems Corp.(1) 46,000 747,500
Marimba Software(1) 200 12,150
Medical Manager Corp.(1) 75,000 2,137,500
Mobius Management Systems, Inc.(1) 34,000 306,000
Netgravity, Inc.(1) 11,000 444,813
Sapient Corp.(1) 13,400 840,850
Siebel Systems, Inc.(1) 27,000 1,037,813
Veritas Software Corp.(1) 23,900 1,696,900
- --------------------------------------------------------------------
$ 16,613,874
- --------------------------------------------------------------------
Insurance -- 2.2%
- --------------------------------------------------------------------
Mutual Risk Management Ltd. 51,000 $ 1,982,625
Reinsurance Group of America, Inc. 37,500 1,134,375
- --------------------------------------------------------------------
$ 3,117,000
- --------------------------------------------------------------------
Investment Services -- 2.2%
- --------------------------------------------------------------------
Centura Banks, Inc. 14,700 $ 875,569
E*Trade Group, Inc.(1) 11,000 1,270,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
Investment Services (continued)
- --------------------------------------------------------------------
PIMCO Advisors Holdings L.P. 36,000 $ 967,500
- --------------------------------------------------------------------
$ 3,113,569
- --------------------------------------------------------------------
Lodging and Gaming -- 0.4%
- --------------------------------------------------------------------
ResortQuest International, Inc.(1) 33,000 $ 552,750
- --------------------------------------------------------------------
$ 552,750
- --------------------------------------------------------------------
Machinery -- 0.8%
- --------------------------------------------------------------------
Varco International, Inc.(1) 100,000 $ 1,131,250
- --------------------------------------------------------------------
$ 1,131,250
- --------------------------------------------------------------------
Medical Products -- 3.9%
- --------------------------------------------------------------------
Haemonetics Corp.(1) 41,300 $ 647,894
Millennium Pharmaceuticals(1) 13,000 483,438
Ocular Sciences, Inc.(1) 34,000 1,037,000
Osteotech, Inc.(1) 31,250 1,128,906
Respironics, Inc.(1) 62,300 879,988
Steris Corp.(1) 23,000 408,250
Xomed Surgical Products, Inc.(1) 25,500 1,061,438
- --------------------------------------------------------------------
$ 5,646,914
- --------------------------------------------------------------------
Metals - Gold -- 0.0%
- --------------------------------------------------------------------
Steppe Gold Resources, Ltd.(1) 200,000 $ 0
- --------------------------------------------------------------------
$ 0
- --------------------------------------------------------------------
Metals - Industrial -- 0.8%
- --------------------------------------------------------------------
AMT International Mining Corp.(1)(2) 817,200 $ 140,313
Formation Capital Corp.(1) 400,000 82,400
Stillwater Mining Co.(1) 31,000 877,688
- --------------------------------------------------------------------
$ 1,100,401
- --------------------------------------------------------------------
Oil and Gas - Exploration and Production -- 6.9%
- --------------------------------------------------------------------
Cross Timbers Oil Co. 155,000 $ 1,695,313
Devon Energy Corp. 18,700 621,775
Louis Dreyfus Natural Gas(1) 82,000 1,568,250
Newfield Exploration Co.(1) 70,000 1,881,250
Noble Affiliates, Inc. 41,000 1,314,563
Nuevo Energy Co.(1) 91,000 1,444,625
Snyder Oil Corp. 23,000 418,313
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
- --------------------------------------------------------------------
Oil and Gas - Exploration and Production (continued)
- --------------------------------------------------------------------
Stone Energy Corp.(1) 29,000 $ 984,188
- --------------------------------------------------------------------
$ 9,928,277
- --------------------------------------------------------------------
Printing and Business Products -- 0.4%
- --------------------------------------------------------------------
Valassis Communications, Inc.(1) 10,000 $ 560,000
- --------------------------------------------------------------------
$ 560,000
- --------------------------------------------------------------------
Publishing -- 1.2%
- --------------------------------------------------------------------
Central Newspapers, Inc., Class A 49,800 $ 1,690,088
- --------------------------------------------------------------------
$ 1,690,088
- --------------------------------------------------------------------
REITS -- 1.2%
- --------------------------------------------------------------------
Prison Realty Corp. 46,150 $ 899,925
Public Storage, Inc. 31,000 864,125
- --------------------------------------------------------------------
$ 1,764,050
- --------------------------------------------------------------------
Retail - Food and Drug -- 1.8%
- --------------------------------------------------------------------
Applebees International, Inc. 23,000 $ 593,688
Papa John's International, Inc.(1) 17,000 683,188
Sonic Corp.(1) 30,000 843,750
Wild Oats Markets, Inc.(1) 15,000 415,313
- --------------------------------------------------------------------
$ 2,535,939
- --------------------------------------------------------------------
Retail - Specialty and Apparel -- 4.3%
- --------------------------------------------------------------------
99 Cents Only Stores(1) 15,000 $ 706,875
Bed Bath and Beyond, Inc.(1) 53,700 1,916,419
Childrens Place(1) 10,000 362,500
O'Reilly Automotive, Inc.(1) 26,500 1,212,375
The Mens Wearhouse, Inc.(1) 70,000 1,916,250
- --------------------------------------------------------------------
$ 6,114,419
- --------------------------------------------------------------------
Semiconductor Equipment -- 0.7%
- --------------------------------------------------------------------
PRI Automation, Inc.(1) 38,800 $ 962,725
- --------------------------------------------------------------------
$ 962,725
- --------------------------------------------------------------------
Software Services -- 0.7%
- --------------------------------------------------------------------
Great Plains Software, Inc.(1) 18,500 $ 565,406
Peregrine Systems, Inc.(1) 20,500 461,250
- --------------------------------------------------------------------
$ 1,026,656
- --------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
- --------------------------------------------------------------------
<S> <C> <C>
Solid Waste -- 0.5%
- --------------------------------------------------------------------
Casella Waste Systems, Inc., Class A(1) 28,000 $ 700,000
- --------------------------------------------------------------------
$ 700,000
- --------------------------------------------------------------------
Transportation -- 1.9%
- --------------------------------------------------------------------
Comair Holdings, Inc. 22,300 $ 491,994
Swift Transportation Co., Inc.(1) 120,000 2,204,999
- --------------------------------------------------------------------
$ 2,696,993
- --------------------------------------------------------------------
Total Common Stocks
(identified cost $110,035,233) $ 135,293,030
- --------------------------------------------------------------------
PREFERRED STOCKS -- 0.0%
Metals - Gold -- 0.0%
- --------------------------------------------------------------------
Ashanti Goldfields Co., Ltd., Class C(3) 8,889 $ 0
Ashanti Goldfields Co., Ltd., Class D(3) 8,889 0
Ashanti Goldfields Co., Ltd., Class E(3) 8,889 0
- --------------------------------------------------------------------
$ 0
- --------------------------------------------------------------------
Total Preferred Stocks
(identified cost $0) $ 0
- --------------------------------------------------------------------
PRIVATE PLACEMENTS AND SPECIAL WARRANTS -- 0.5%
Metals - Gold -- 0.5%
- --------------------------------------------------------------------
Nevada Pacific Mining Co.(1)(3) 80,000 $ 80,000
Quincunx Gold Exploration(1)(2)(3) 300,000 123,584
Western Exploration and Development,
Ltd.(1)(3) 600,000 480,000
- --------------------------------------------------------------------
$ 683,584
- --------------------------------------------------------------------
Total Private Placements and Special Warrants
(identified cost $679,988) $ 683,584
- --------------------------------------------------------------------
WARRANTS -- 0.0%
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
- --------------------------------------------------------------------
Metals - Gold -- 0.0%
- --------------------------------------------------------------------
Minorca Resources, Inc.(1)(2) 12,500 $ 0
Queenstake Resources(1)(2) 32,146 0
Queenstake Resources(1)(2) 21,427 0
Queenstake Resources(1)(2) 21,427 0
- --------------------------------------------------------------------
$ 0
- --------------------------------------------------------------------
Total Warrants
(identified cost $0) $ 0
- --------------------------------------------------------------------
COMMERCIAL PAPER -- 3.7%
<CAPTION>
FACE
AMOUNT
(000'S
SECURITY OMITTED) VALUE
<S> <C> <C>
- --------------------------------------------------------------------
General Electric Capital Corp., 4.92%,
5/3/99 $ 5,297 $ 5,295,552
- --------------------------------------------------------------------
Total Commercial Paper
(identified cost $5,295,552) $ 5,295,552
- --------------------------------------------------------------------
Total Investments -- 98.3%
(identified cost $116,010,773) $ 141,272,166
- --------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.7% $ 2,401,946
- --------------------------------------------------------------------
Net Assets -- 100.0% $ 143,674,112
- --------------------------------------------------------------------
</TABLE>
(1) Non-income producing security.
(2) Foreign security.
(3) Security valued at fair value using methods determined in good faith by or
at the direction of the Trustees.
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF APRIL 30, 1999
<S> <C>
Assets
- -------------------------------------------------------
Investments at value, (identified cost,
$116,010,773) $ 141,272,166
Cash 16,515
Receivable for investments sold 145,177
Receivable for Fund shares sold 3,432,336
Dividends receivable 31,185
Tax reclaim receivable 106
Deferred organization expenses 6,901
- -------------------------------------------------------
TOTAL ASSETS $ 144,904,386
- -------------------------------------------------------
Liabilities
- -------------------------------------------------------
Payable for investments purchased $ 4,000
Payable for Fund shares redeemed 1,127,890
Other accrued expenses 98,384
- -------------------------------------------------------
TOTAL LIABILITIES $ 1,230,274
- -------------------------------------------------------
NET ASSETS $ 143,674,112
- -------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------
Paid-in capital $ 136,851,032
Accumulated net realized loss (computed
on the basis of identified cost) (17,805,646)
Accumulated net investment loss (632,667)
Net unrealized appreciation (computed on
the basis of identified cost) 25,261,393
- -------------------------------------------------------
TOTAL $ 143,674,112
- -------------------------------------------------------
Class A Shares
- -------------------------------------------------------
NET ASSETS $ 41,343,181
SHARES OUTSTANDING 3,819,811
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(NET ASSETS DIVIDED BY SHARES OF
BENEFICIAL INTEREST OUTSTANDING) $ 10.82
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 OF $10.82) $ 11.48
- -------------------------------------------------------
Class B Shares
- -------------------------------------------------------
NET ASSETS $ 75,398,983
SHARES OUTSTANDING 7,048,860
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY SHARES OF
BENEFICIAL INTEREST OUTSTANDING) $ 10.70
- -------------------------------------------------------
Class C Shares
- -------------------------------------------------------
NET ASSETS $ 26,931,948
SHARES OUTSTANDING 2,524,870
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY SHARES OF
BENEFICIAL INTEREST OUTSTANDING) $ 10.67
- -------------------------------------------------------
</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
APRIL 30, 1999
<S> <C>
Investment Income
- ------------------------------------------------------
Dividends $ 226,958
Interest 131,861
- ------------------------------------------------------
TOTAL INVESTMENT INCOME $ 358,819
- ------------------------------------------------------
Expenses
- ------------------------------------------------------
Investment adviser fee $ 400,824
Trustees fees and expenses 5,624
Distribution and service fees
Class A 9,901
Class B 280,390
Class C 118,849
Transfer and dividend disbursing agent
fees 81,323
Custodian fee 63,371
Registration fees 17,714
Printing and postage 6,388
Legal and accounting services 4,892
Amortization of organization expenses 997
Miscellaneous 1,213
- ------------------------------------------------------
TOTAL EXPENSES $ 991,486
- ------------------------------------------------------
NET INVESTMENT LOSS $ (632,667)
- ------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ------------------------------------------------------
Net realized gain (loss)--
Investment transactions (identified
cost basis) $ (6,767,333)
Foreign currency transactions 1,398
- ------------------------------------------------------
NET REALIZED LOSS $ (6,765,935)
- ------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 22,271,511
- ------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 22,271,511
- ------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 15,505,576
- ------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 14,872,909
- ------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
Increase (Decrease) APRIL 30, 1999 YEAR ENDED
in Net Assets (UNAUDITED) OCTOBER 31, 1998
<S> <C> <C>
- ---------------------------------------------------------------------------------
From operations--
Net investment loss $ (632,667) $ (757,914)
Net realized loss (6,765,935) (10,966,248)
Net change in unrealized appreciation
(depreciation) 22,271,511 3,443,625
- ---------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 14,872,909 $ (8,280,537)
- ---------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 15,465,559 $ 31,916,155
Class B 19,069,610 55,874,763
Class C 9,223,276 21,292,030
Issued in reorganization of Eaton
Vance Worldwide Developing
Resources Fund
Class A 147,201 --
Class B 4,338,847 --
Cost of shares redeemed
Class A (6,651,723) (5,597,177)
Class B (8,441,151) (7,461,062)
Class C (3,481,880) (3,200,764)
- ---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ 29,669,739 $ 92,823,945
- ---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 44,542,648 $ 84,543,408
- ---------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------
At beginning of period $ 99,131,464 $ 14,588,056
- ---------------------------------------------------------------------------------
AT END OF PERIOD $ 143,674,112 $ 99,131,464
- ---------------------------------------------------------------------------------
Accumulated net investment loss included in net assets
- ---------------------------------------------------------------------------------
AT END OF PERIOD $ (632,667) $ --
- ---------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1999 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1998
---------------------------------- ------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.460 $ 9.390 $ 9.370 $ 9.740 $ 9.740 $ 9.720
- -----------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------
Net investment income (loss) $(0.019) $(0.057) $(0.063) $(0.040) $(0.090) $(0.092)
Net realized and unrealized
gain (loss) 1.379 1.367 1.363 (0.240) (0.260) (0.258)
- -----------------------------------------------------------------------------------------------------
NET INCOME (LOSS) FROM
OPERATIONS $ 1.360 $ 1.310 $ 1.300 $(0.280) $(0.350) $(0.350)
- -----------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $10.820 $10.700 $10.670 $ 9.460 $ 9.390 $ 9.370
- -----------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 14.38% 13.95% 13.88% (2.87)% (3.59)% (3.60)%
- -----------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $41,343 $75,399 $26,932 $28,035 $52,641 $18,455
Ratios (As a percentage of
average daily net assets):
Expenses 0.96%(4) 1.74%(4) 1.91%(4) 1.21% 2.04% 2.21%
Net investment income
(loss) (0.40)%(4) (1.18)%(4) (1.35)%(4) (0.57)% (1.41)% (1.58)%
Portfolio Turnover 44% 44% 44% 110% 110% 110%
- -----------------------------------------------------------------------------------------------------
<CAPTION>
PERIOD ENDED
OCTOBER 31, 1997
---------------------------------------
CLASS A(1) CLASS B(2) CLASS C(2)
<S> <C> <C> <C>
- ------------------------------
Net asset value -- Beginning
of period $10.000 $10.000 $10.000
- ------------------------------
Income (loss) from operations
- ------------------------------
Net investment income (loss) $ 0.008 $ 0.005 $ 0.003
Net realized and unrealized
gain (loss) (0.268) (0.265) (0.283)
- ------------------------------
NET INCOME (LOSS) FROM
OPERATIONS $(0.260) $(0.260) $(0.280)
- ------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.740 $ 9.740 $ 9.720
- ------------------------------
TOTAL RETURN(3) (2.60)% (2.60)% (2.80)%
- ------------------------------
Ratios/Supplemental Data
- ------------------------------
Net assets, end of period
(000's omitted) $ 3,925 $ 8,613 $ 2,051
Ratios (As a percentage of
average daily net assets):
Expenses 0.63%(4) 1.37%(4) 1.56%(4)
Net investment income
(loss) 1.83%(4) 1.13%(4) 0.90%(4)
Portfolio Turnover 7% 7% 7%
- ------------------------------
</TABLE>
(1) For the period from the start of business, September 25, 1997, to October
31, 1997.
(2) For the period from the commencement of offerings of Class B and Class C
shares, September 29, 1997, to October 31, 1997.
(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) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance Tax-Managed Emerging Growth Fund (the Fund) is registered under
the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund, which is a series of Eaton Vance
Mutual Funds Trust (the Trust), seeks to provide long-term after-tax returns
by investing in a diversified portfolio of equity securities of emerging
growth companies. The Declaration of Trust permits the Trustees to issue
interests in the Fund. The Fund has three classes of 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 7). Each class represents a pro
rata interest in the Fund, but votes separately on class-specific matters and
(as noted below) is subject to different expenses. Realized and unrealized
gains and losses and net investment income, other than class specific
expenses, are allocated daily to each class of shares based on the relative
net assets of each class to the net assets of the Fund. Each class of shares
differs in its distribution plan and certain other class specific expenses.
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 -- Marketable securities, including options, that are
listed on foreign or U.S. securities exchanges or in the NASDAQ National
Market System are valued at closing sale prices on the exchange where such
securities are principally traded. Futures positions on securities or
currencies are generally valued at closing settlement prices. Unlisted or
listed securities for which closing sale prices are not available are valued
at the mean between the latest bid and asked prices. Short-term debt
securities with a remaining maturity of 60 days or less are valued at
amortized cost, which approximates value. Other fixed income and debt
securities, including listed securities and securities for which price
quotations are available, will normally be valued on the basis of valuations
furnished by a pricing service. Investments for which valuations or market
quotations are unavailable are valued at fair value using methods determined
in good faith by or at the direction of the Trustees.
B Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable income, including any
net realized gain on investments. Accordingly, no provision for federal
income or excise tax is necessary. At October 31, 1998, the Fund, for federal
income tax purposes, had a capital loss carryover of $10,797,209 which will
reduce the taxable income arising from future net realized gain on
investments, if any, to the extent permitted by the Internal Revenue Code and
thus will reduce the amount of distributions to shareholders which would
otherwise be necessary to relieve the Fund of any liability for federal
income or excise tax. Such capital loss carryover will expire on October 31,
2006 ($10,740,877) and on October 31, 2005 ($56,332).
C Futures Contracts -- Upon the entering of a financial futures contract, the
Fund is required to deposit either in cash or securities an amount ("initial
margin") equal to a certain percentage of the purchase price indicated in the
financial futures contract. Subsequent payments are made or received by the
Fund ("margin maintenance") each day, dependent on daily fluctuations in the
value of the underlying security, and are recorded for book purposes as
unrealized gains or losses by the Fund. The Fund's investment in financial
futures contracts is designed to hedge against anticipated future changes in
price of current or anticipated Fund positions. Should prices move
unexpectedly, the Fund may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss.
D Deferred Organization Expenses -- Costs incurred by the Fund in connection
with its organization are being amortized on the straight-line basis over
five years.
E Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenue and expense during the reporting period. Actual results could
differ from those estimates.
F Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income is recorded on the
ex-dividend date. However, if the ex-dividend date has passed, certain
dividends from foreign securities are recorded as the Fund is informed of the
ex-dividend date. Interest income is recorded on the accrual basis.
G Interim Financial Statements -- The interim financial statements relating to
April 30, 1999 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.
10
<PAGE>
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
2 Distributions to Shareholders
- -------------------------------------------
It is the present policy of the Fund to make (a) at least one distribution
annually (normally in December) of all or substantially all of the net
investment income and (b) at least one distribution annually of all or
substantially all of the net realized capital gains (reduced by any available
capital loss carryforwards from prior years). Income dividends are declared
separately for each class of shares. Shareholders may reinvest all
distributions in shares of the Fund without a sales charge at the net asset
value per share as of the close of business on the ex-date.
The Fund distinguishes between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a return of capital. Differences in the recognition
or classification of income between the financial statements and tax earnings
and profits which result in temporary over distributions for financial
statement purposes only 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 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Eaton Vance Management (EVM) as
compensation for management and investment advisory services rendered to the
Fund. EVM receives a monthly advisory fee in the amount of 5/96th of 1%
(equal to 0.625% annually) of the average daily net assets of the Fund up to
$500 million, and at reduced rates as daily net assets exceed that level. For
the six months ended April 30, 1999, the fee amounted to $400,824.
Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's
principal underwriter, received $49,625 as its portion of the sales charge on
sales of Class A shares for the six months ended April 30, 1999. Except for
Trustees of the Fund who are not members of EVM's organization, officers and
Trustees receive remuneration for their services to the Fund out of such
investment adviser fee. Trustees of the Fund who are not affiliated with the
Investment Adviser may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the six months ended April 30, 1999, no significant
amounts have been deferred. Certain officers and Trustees of the Fund are
officers of the above organizations.
4 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned at April 30, 1999, as computed on a federal income tax
basis, are as follows:
<TABLE>
<CAPTION>
AGGREGATE COST $116,010,773
<S> <C>
- -------------------------------------------------------
Gross unrealized appreciation $ 29,053,930
Gross unrealized depreciation (3,792,537)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 25,261,393
- -------------------------------------------------------
</TABLE>
5 Shares of Beneficial Interest
- -------------------------------------------
The Declaration of the Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1999 YEAR ENDED
CLASS A (UNAUDITED) OCTOBER 31, 1998
<S> <C> <C>
- -----------------------------------------------------------------------------
Issued in Reorganization of Worldwide
Developing Resources Fund 14,140 --
Sales 1,467,404 3,136,112
Redemptions (625,846) (574,893)
- -----------------------------------------------------------------------------
NET INCREASE 855,698 2,561,219
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1999 YEAR ENDED
CLASS B (UNAUDITED) OCTOBER 31, 1998
<S> <C> <C>
- -----------------------------------------------------------------------------
Issued in Reorganization of Worldwide
Developing Resources Fund 420,838 --
Sales 1,826,142 5,475,478
Redemptions (806,237) (751,650)
- -----------------------------------------------------------------------------
NET INCREASE 1,440,743 4,723,828
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1999 YEAR ENDED
CLASS C (UNAUDITED) OCTOBER 31, 1998
<S> <C> <C>
- -----------------------------------------------------------------------------
Sales 890,949 2,095,183
Redemptions (335,953) (336,223)
- -----------------------------------------------------------------------------
NET INCREASE 554,996 1,758,960
- -----------------------------------------------------------------------------
</TABLE>
6 Distribution and Service Plans
- -------------------------------------------
The Fund has adopted a Service Plan for the Fund's Class A shares (the "Class
A Plan") that is designed to meet the service fee requirements of the sales
charge rule of the National Association of Securities Dealers, Inc. The Class
A Plan provides that the Fund may make service fee
11
<PAGE>
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
payments for personal services and/or the maintenance of shareholder accounts
to the Principal Underwriter, financial service firms ("Investment Dealers")
and other persons in amounts not exceeding 0.25% of average daily net assets
for Class A shares for any fiscal year. The Trustees have initially
implemented the Class A Plan by authorizing quarterly service fee payments to
the Principal Underwriter and Investment Dealers in amounts not expected to
exceed 0.25% of the average daily net assets for any fiscal year which is
based on the value of Class A shares sold by such persons and remaining
outstanding for at least twelve months. The Fund paid or accrued service fees
to or payable to EVD for the six months ended April 30, 1999 in the amount of
$9,901 for Class A.
The Fund has also adopted distribution plans ("Class B Plan" and "Class C
Plan", collectively, the "Plans") pursuant to Rule 12b-1 under the Investment
Company Act of 1940. The Plans, which are approved annually, require the Fund
to pay the Principal Underwriter, Eaton Vance Distributors, Inc. (EVD),
amounts equal to 1/365 of 0.75% of the Fund's Class B and Class C daily net
assets, for providing ongoing distribution services and facilities to the
Fund. The Fund will automatically discontinue payments to EVD during any
period in which there are no outstanding Uncovered Distribution Charges,
which are equivalent to the sum of (i) 5% and 6.25% of the aggregate amount
received by the Fund for 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 due EVD, of
each respective class reduced by the aggregate amount of contingent deferred
sales charges (see Note 7) and daily amounts theretofore paid to EVD by each
respective class. The amount payable to EVD with respect to each day is
accrued on such day as a liability of the Fund and, accordingly, reduces the
Fund's net assets. For the six months ended April 30, 1999, the Fund paid or
accrued $256,042 and $89,230, to or payable to EVD representing 0.75%
(annualized) of average daily net assets of Class B and Class C shares,
respectively. At April 30, 1999, the amount of Uncovered Distribution Charges
of EVD calculated under the Plans was approximately $3,219,000 and $1,737,000
for Class B and Class C shares, respectively.
In addition, 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
their average daily net assets for each fiscal year. Service fee payments are
made for personal services and/or the maintenance of shareholder accounts.
Under the Class B Plan, this fee is paid quarterly in arrears based on the
value of Class B shares sold by such persons and remaining outstanding for at
least twelve months. Under the Class C Plan, EVD currently expects to pay to
an Investment Dealer (a) a service fee (except on exchange transactions and
reinvestments) at the time of sale equal to 0.25% of the purchase price of
the Class C shares sold by such Dealer and (b) monthly service fees
approximately equivalent to 1/12 of 0.25% of the value of Class C shares sold
by such Dealer and remaining outstanding for at least one year. During the
first year after a purchase of Class C shares, EVD will retain the service
fee as reimbursement for the service fee payment made to Investment Dealers
at the time of sale. The Fund paid or accrued service fees to or payable to
EVD for the six months ended April 30, 1999, in the amount of $24,348 and
$29,619 for Class B and Class C shares, respectively. Service fees are
separate and distinct from the sales commissions and distribution fees
payable by the Fund to EVD, and as such are not subject to automatic
discontinuance when there are no outstanding Uncovered Distribution Charges
of EVD.
7 Contingent Deferred Sales Charge
- -------------------------------------------
A contingent deferred sales charge (CDSC) may be imposed on certain Class A
shares redeemed within 12 months of purchase. A contingent deferred sales
charge (CDSC) generally is imposed on redemptions of Class B shares made
within six years of purchase and on redemptions of Class C shares made within
one year of purchase. Generally, the CDSC is based on 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. Class A shares may be subject
to a 1% CDSC if redeemed within 12 months of purchase (depending on the
circumstances of purchase). For Class B the CDSC is imposed at declining
rates that begin at 5% in the case of redemptions in the first and second
year after purchase, declining one percentage point each subsequent year.
Class C shares will be subject to a 1% CDSC if redeemed within 12 months 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 various
other conditions. CDSC charges received on Class B and Class C redemptions
are paid to EVD to reduce the amount of Uncovered Distribution Charges
calculated under the Class B and Class C Plans, respectively (see Note 6).
CDSC received on Class B and Class C redemptions when no Uncovered
Distribution Charges exist for the respective classes will be retained by the
Fund. EVD received approximately $148,000 and $11,000 of CDSC paid by
shareholders of Class B and Class C shares, respectively, during the six
months ended April 30, 1999.
8 Line of Credit
- -------------------------------------------
The Fund participates with other funds and portfolios managed by EVM and its
affiliates in a $130 million
12
<PAGE>
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
unsecured line of credit agreement with a group of banks. The Fund may
temporarily borrow from the line of credit to satisfy redemption requests or
settle investment transactions. Interest is charged to each fund or portfolio
based on its borrowings at an amount above the Eurodollar rate or federal
funds advanced funding 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 funds and portfolios at the end of each quarter. The Fund
did not have any significant borrowings or allocated fees during the six
months ended April 30, 1999.
9 Investment Transactions
- -------------------------------------------
Purchases and sales of investments, other than short-term obligations,
aggregated $80,304,534 and $54,936,877, respectively, for the six months
ended April 30, 1999.
10 Fund Reorganization
- -------------------------------------------
Effective December 18, 1998, the Fund acquired the net assets of Worldwide
Developing Resources Fund, pursuant to an Agreement and Plan of
Reorganization dated October 19, 1998. In accordance with the agreement, the
Fund, at closing, issued shares as follows:
<TABLE>
<CAPTION>
AGGREGATE NET ASSET
SHARES VALUE OF SHARES VALUE PER
CLASS ISSUED ISSUED SHARE
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Class A 14,140 $ 147,201 $ 10.41
Class B 420,838 $ 4,338,847 $ 10.31
</TABLE>
The net assets acquired, including unrealized net depreciation at the date of
the transaction, were as follows:
<TABLE>
<CAPTION>
ACQUIRED NET UNREALIZED
FUND ASSETS DEPRECIATION
<S> <C> <C>
- -----------------------------------------------------------------------
Worldwide Developing Resources $ 4,486,048 $ 182,370
</TABLE>
Directly after the merger, the combined net assets of the Fund was
$124,064,338. The net asset value of each class was $10.41 and $10.31 for
Class A and Class B, respectively.
13
<PAGE>
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND AS OF APRIL 30, 1999
INVESTMENT MANAGEMENT
EATON VANCE TAX-MANAGED EMERGING GROWTH FUND
Officers
James B. Hawkes
President and Trustee
William H. Ahern, Jr.
Vice President
Thomas J. Fetter
Vice President
Robert B. MacIntosh
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 and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
John L. Thorndike
Former Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
14
<PAGE>
INVESTMENT ADVISER AND ADMINISTRATOR OF EATON VANCE
TAX-MANAGED EMERGING GROWTH 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
First Data Investor Services Group
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
EATON VANCE
TAX-MANAGED EMERGING GROWTH 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.
- -------------------------------------------------------------------------------
3-4061-6/99 MGSRC-6/99
