<PAGE>
[E.V. LOGO]
MUTUAL FUNDS FOR PEOPLE [EIFFEL TOWER GRAPHIC]
WHO PAY TAXES
Semiannual Report April 30, 1999
EATON VANCE
TAX-MANAGED
INTERNATIONAL
GROWTH FUND
[PAGOTA GRAPHIC]
[SYDNEY OPERA HOUSE GRAPHIC]
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 1999
INVESTMENT UPDATE
[PHOTO]
Armin J. Lang
Portfolio Manager
Investment Environment
- -------------------------------------------------------------------------------
THE ECONOMY
- - Economic conditions in developed markets outside the United States continued
to be favorable for equities. In Europe, steady growth has seemed to be on
track, while in Japan signs of recovery have emerged over the last few
months. In both cases, the macro-economic picture has benefited from very
low inflation and an attractive interest rate environment.
- - Defying expectations, Japan has been one of the best-performing equity
markets in 1999. After a pronounced underperformance over the last 10 years,
the market is reflecting anticipation of a sustained economic recovery.
- - Although leadership in international equity markets has broadened, the focus
remains on high-quality, long-term growth potential and restructuring.
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 13.80%.(1) This return was the result of an increase in net
asset value (NAV)to $10.06 on April 30, 1999 from $8.84 on October 31, 1998.
- - The Fund's Class B shares had a total return of 13.28%1 during the period,
the result of an increase in NAV to $9.98 from $8.81.
- - The Fund's Class C shares had a total return of 13.18%1 during the period,
the result of an increase in NAV to $9.96 from $8.80.
- - For comparison, during the six months ended 4/30/99, the Morgan Stanley
Capital International Europe, Australasia, Far East Index (EAFE), an
unmanaged index used as the benchmark for international portfolio
performance, had a return of 15.44%.(2)
MANAGEMENT DISCUSSION
- - The Fund invests in a diversified portfolio of foreign equity securities.
In the pursuit of its investment objective of long-term, after-tax returns,
the Fund employs a number of tax-efficient strategies in an effort to
minimize taxes for shareholders.
- - Telecom Italia, one of the Fund's largest holdings, has been the subject of a
lengthy, high-profile takeover battle. The company's smaller rival, Olivetti,
recently purchased 51% of the company in a hostile takeover.
- - Nomura Securities is Japan's top brokerage firm. The company is also a major
presence abroad; about half its profits come from outside Asia from services
including trading, asset management, and mergers andacquisitions.
- - British Petroleum merged with Amoco last year in a $55 billion transaction.
The combined company, BPAmoco, is among the three largest integrated energy
companies in the world.
<TABLE>
<CAPTION>
Ten Largest Country Concentrations* By total net assets
- -------------------------------------------------------------------------
<S> <C>
United Kingdom 18.0%
Japan 17.7
Germany 12.4
Netherlands 9.9
France 8.3
United States 7.0
Italy 5.9
Switzerland 5.6
Spain 2.7
Denmark 2.5
</TABLE>
*Concentrations are subject to change.
- -------------------------------------------------------------------------------
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 2.34% 1.53% 1.32%
Life of Fund+ 0.59 -0.20 -0.39
SEC Average Annual Total Returns
(including sales charge or applicable CDSC)
- ------------------------------------------------------------------
One Year -3.55% -3.47% 0.32%
Life of Fund+ -5.08 -5.09 -0.39
</TABLE>
+Inception Dates -- Class A: 4/22/98; Class B: 4/22/98; Class C:4/22/98
<TABLE>
<CAPTION>
Ten Largest Holdings(4) By total net assets
- ------------------------------------------------
<S> <C>
Mobilcom 1.8%
Telecom Italia Mobile 1.8
Northern Leisure 1.7
Nomura Securities 1.7
Volker Wessels Stevin 1.7
Telecom Italia 1.7
Sagem 1.7
BPAmoco 1.4
Autobacs Seven 1.4
Scor 1.4
</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. (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 16.3% of the Fund's net assets. Holdings are subject
to change.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
2
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<S> <C> <C>
COMMON STOCKS -- 93.8%
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
- ------------------------------------------------------------------------
Airlines -- 0.5%
- ------------------------------------------------------------------------
Societe Airline France(1) 10,000 $ 185,413
- ------------------------------------------------------------------------
$ 185,413
- ------------------------------------------------------------------------
Appliances and Household Durables -- 1.7%
- ------------------------------------------------------------------------
Aiwa Co. Ltd. 5,400 $ 153,416
Philips Electronics NV 2,500 215,873
Sony Corp. 2,300 214,289
- ------------------------------------------------------------------------
$ 583,578
- ------------------------------------------------------------------------
Auto and Parts -- 2.3%
- ------------------------------------------------------------------------
Bridgestone Corp. 13,000 $ 347,608
Ducati Motor Holding-SPA ADR 1,000 29,688
Labinal 1,600 397,863
- ------------------------------------------------------------------------
$ 775,159
- ------------------------------------------------------------------------
Automobiles -- 2.6%
- ------------------------------------------------------------------------
Honda Motor Co. Ltd. 10,000 $ 439,524
Toyota Motor Co. 10,000 283,267
Volkswagen AG(1) 2,200 156,403
- ------------------------------------------------------------------------
$ 879,194
- ------------------------------------------------------------------------
Banking -- 8.4%
- ------------------------------------------------------------------------
ABN Amro Holdings 9,880 $ 236,050
Allied Irish Banks PLC 8,091 135,602
Allied Irish Banks PLC 4,147 67,224
Banco Popular Espanola 3,000 212,960
Banco Santander Central Hisp 9,000 196,050
Bank of Scotland 8,179 122,644
Commerzbank AG 12,000 389,048
Dexia 1,100 154,422
HSBC Holdings PLC 7,277 274,057
Lloyds TSB Group PLC 22,117 356,059
National Australia Bank Ltd. 6,273 121,758
Svenska Handelsbanken "A" 2,400 90,071
UBS (Schw. Bank Gesellschaft) 800 272,587
Vontobel Holding AG 110 190,659
- ------------------------------------------------------------------------
$ 2,819,191
- ------------------------------------------------------------------------
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
- ------------------------------------------------------------------------
Broadcasting and Cable -- 1.2%
- ------------------------------------------------------------------------
Mih Ltd. 20,000 $ 392,500
- ------------------------------------------------------------------------
$ 392,500
- ------------------------------------------------------------------------
Broadcasting and Publishing -- 0.9%
- ------------------------------------------------------------------------
Nippon Television Network 900 $ 315,855
- ------------------------------------------------------------------------
$ 315,855
- ------------------------------------------------------------------------
Business and Public Services -- 3.6%
- ------------------------------------------------------------------------
Dai Nippon Printing Co. Ltd. 15,000 $ 237,142
Rentokil Initial 46,000 270,942
Sap AG 1,110 356,342
Tas Groep NV(1) 105,325 334,776
- ------------------------------------------------------------------------
$ 1,199,202
- ------------------------------------------------------------------------
Chemicals -- 0.7%
- ------------------------------------------------------------------------
Air Liquide 425 $ 65,742
Sumitomo Bakelite Co. Ltd. 23,000 172,200
- ------------------------------------------------------------------------
$ 237,942
- ------------------------------------------------------------------------
Communications Services -- 2.4%
- ------------------------------------------------------------------------
British Telecommunications PLC 19,000 $ 317,820
Cable and Wireless Optus Ltd.(1) 100,000 224,315
France Telecom SA 3,500 283,496
- ------------------------------------------------------------------------
$ 825,631
- ------------------------------------------------------------------------
Computer Software -- 1.4%
- ------------------------------------------------------------------------
Applied Theory Corp. 10,000 $ 205,000
Informatica Corp. 2,500 70,625
Mpath Interactive, Inc. 500 19,688
Razorfish, Inc.(1) 2,000 87,000
US Internetworking, Inc. 2,000 102,250
- ------------------------------------------------------------------------
$ 484,563
- ------------------------------------------------------------------------
Construction and Housing -- 1.9%
- ------------------------------------------------------------------------
Leighton Holdings Ltd. 20,000 $ 75,212
Volker Wessels Stevin 29,086 577,812
- ------------------------------------------------------------------------
$ 653,024
- ------------------------------------------------------------------------
Data Processing and Reproduction -- 1.2%
- ------------------------------------------------------------------------
Canon, Inc. 16,000 $ 390,391
- ------------------------------------------------------------------------
$ 390,391
- ------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
- ------------------------------------------------------------------------
<S> <C> <C>
Drugs -- 1.7%
- ------------------------------------------------------------------------
Elan Corp., PLC ADR 6,000 $ 309,000
Sepracor, Inc.(1) 3,000 253,500
- ------------------------------------------------------------------------
$ 562,500
- ------------------------------------------------------------------------
Electrical and Electronics -- 4.2%
- ------------------------------------------------------------------------
Nokia Oyj-A 3,200 $ 247,838
Sagem SA 1,000 561,535
Siemens AG 3,000 222,495
VTECH Holdings Ltd. 116,000 396,607
- ------------------------------------------------------------------------
$ 1,428,475
- ------------------------------------------------------------------------
Electronic Components - Instruments -- 1.6%
- ------------------------------------------------------------------------
Rohm Co. 2,000 $ 242,490
Siebe PLC 61,000 311,616
- ------------------------------------------------------------------------
$ 554,106
- ------------------------------------------------------------------------
Energy Sources -- 4.0%
- ------------------------------------------------------------------------
BP Amoco PLC 25,778 $ 489,356
Eni SPA 47,000 309,834
Repsol SA 12,600 205,585
Royal Dutch Petroleum Co. 6,000 350,271
- ------------------------------------------------------------------------
$ 1,355,046
- ------------------------------------------------------------------------
Financial Services -- 6.0%
- ------------------------------------------------------------------------
Abbey National 14,000 $ 316,305
Acom Co. Ltd. 5,000 373,929
ING Groep NV 4,536 280,184
Julius Baer Holdings 50 163,296
Nomura Securities Co. Ltd. 54,000 581,173
Promise Co. Ltd. 5,200 295,467
- ------------------------------------------------------------------------
$ 2,010,354
- ------------------------------------------------------------------------
Food and Household Products -- 1.9%
- ------------------------------------------------------------------------
Nestle 150 $ 278,540
Unilever PLC 40,000 356,464
- ------------------------------------------------------------------------
$ 635,004
- ------------------------------------------------------------------------
Health and Personal Care -- 7.7%
- ------------------------------------------------------------------------
Glaxo Wellcome PLC 12,052 $ 357,361
Novartis AG 190 279,079
Novartis AG (Bearer Shares) 30 44,026
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
- ------------------------------------------------------------------------
Health and Personal Care (continued)
- ------------------------------------------------------------------------
Novo Nordisk A/S-B 4,000 $ 393,443
Roche Holding AG 25 295,017
Sankyo Co. Ltd. 20,000 418,634
Smithkline Beecham PLC 20,113 266,265
Takeda Chemical Industries Ltd. 6,000 260,205
Zeneca Group PLC 7,000 274,567
- ------------------------------------------------------------------------
$ 2,588,597
- ------------------------------------------------------------------------
Insurance -- 6.7%
- ------------------------------------------------------------------------
Aegon NV 2,500 $ 241,036
Allianz AG Holding 1,200 383,327
ASR Verzekeringsgroep 2,215 168,969
AXA Colonia Konzern AG 2,600 247,923
AXA Company 1,600 207,153
Prudential Corp. 12,000 170,658
Schweizer Rueckversicherung 170 373,268
Scor SA 9,500 475,080
- ------------------------------------------------------------------------
$ 2,267,414
- ------------------------------------------------------------------------
Leisure and Tourism -- 1.7%
- ------------------------------------------------------------------------
Northern Leisure PLC 210,000 $ 583,765
- ------------------------------------------------------------------------
$ 583,765
- ------------------------------------------------------------------------
Machinery -- 1.0%
- ------------------------------------------------------------------------
Buderus 1,000 $ 340,100
- ------------------------------------------------------------------------
$ 340,100
- ------------------------------------------------------------------------
Machinery and Engineering -- 1.1%
- ------------------------------------------------------------------------
Technip SA 2,950 $ 356,622
- ------------------------------------------------------------------------
$ 356,622
- ------------------------------------------------------------------------
Medical Products -- 0.2%
- ------------------------------------------------------------------------
Qiagen NV 1,000 $ 73,250
- ------------------------------------------------------------------------
$ 73,250
- ------------------------------------------------------------------------
Merchandising -- 2.0%
- ------------------------------------------------------------------------
Autobacs Seven Co. Ltd. 12,800 $ 481,304
Promodes 200 127,140
Woolworths Ltd. 20,347 64,435
- ------------------------------------------------------------------------
$ 672,879
- ------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
- ------------------------------------------------------------------------
<S> <C> <C>
Miscellaneous Materials and Commodities -- 1.7%
- ------------------------------------------------------------------------
Mayr-Melnhof 9,306 $ 453,349
Nitto Denko Corp. 7,000 132,776
- ------------------------------------------------------------------------
$ 586,125
- ------------------------------------------------------------------------
Multi-Industry -- 4.0%
- ------------------------------------------------------------------------
Hutchison Whampoa 13,000 $ 116,569
IFIL Finanz Di Partecipazoni 72,400 276,071
International Muller NV 20,662 459,719
Orkla As A-Aksjer(1) 11,400 191,763
Tomkins PLC 72,159 308,735
- ------------------------------------------------------------------------
$ 1,352,857
- ------------------------------------------------------------------------
Pharmaceutical -- 0.5%
- ------------------------------------------------------------------------
Astrazeneca PLC 4,540 $ 177,394
- ------------------------------------------------------------------------
$ 177,394
- ------------------------------------------------------------------------
Publishing -- 0.2%
- ------------------------------------------------------------------------
Agora GDR 5,000 $ 57,500
- ------------------------------------------------------------------------
$ 57,500
- ------------------------------------------------------------------------
Real Estate -- 0.1%
- ------------------------------------------------------------------------
Fastighets AB Balder 150 $ 1,603
Metroplex Berhad 225,000 32,211
- ------------------------------------------------------------------------
$ 33,814
- ------------------------------------------------------------------------
Retail -- 1.7%
- ------------------------------------------------------------------------
Christian Dior SA 12 $ 1,574
Fuji Photo Film 6,000 226,112
JJB Sports PLC 55,000 329,270
- ------------------------------------------------------------------------
$ 556,956
- ------------------------------------------------------------------------
Retail - Food and Drug -- 0.8%
- ------------------------------------------------------------------------
Pizzaexpress PLC 18,000 $ 263,964
- ------------------------------------------------------------------------
$ 263,964
- ------------------------------------------------------------------------
Telecommunications -- 7.4%
- ------------------------------------------------------------------------
Hong Kong Telecom 62,283 $ 167,545
Mannesmann AG 1,900 250,826
Portugal Telecom 9,000 376,176
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
- ------------------------------------------------------------------------
Telecommunications (continued)
- ------------------------------------------------------------------------
Telecom Italia Mobile 100,000 $ 603,702
Telecom Italia SPA 53,500 567,683
Telefonica 6,120 287,572
Vodafone Group PLC 13,066 240,879
- ------------------------------------------------------------------------
$ 2,494,383
- ------------------------------------------------------------------------
Telephone Utilities -- 5.9%
- ------------------------------------------------------------------------
Mobilcom AG 2,500 $ 622,455
Primacom AG - ADR 14,500 308,125
Sonera Group PLC ADR 5,000 396,253
Telecom Italia SPA ADR 2,000 212,375
Telecommunication Danmark ADR 6,000 305,250
Telecommunication Danmark, Class B 1,500 155,025
- ------------------------------------------------------------------------
$ 1,999,483
- ------------------------------------------------------------------------
Transportation -- 1.2%
- ------------------------------------------------------------------------
Mitsui O.S.K. Lines Ltd. 177,000 $ 406,727
- ------------------------------------------------------------------------
$ 406,727
- ------------------------------------------------------------------------
Utilities - Electrical and Gas -- 1.7%
- ------------------------------------------------------------------------
Scottish Power PLC 36,000 $ 297,612
Veba AG 5,000 274,940
- ------------------------------------------------------------------------
$ 572,552
- ------------------------------------------------------------------------
Total Common Stocks
(identified cost $30,063,271) $ 31,671,510
- ------------------------------------------------------------------------
PREFERRED STOCKS -- 1.9%
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
- ------------------------------------------------------------------------
Construction and Housing -- 1.0%
- ------------------------------------------------------------------------
Dyckerhoff 1,257 $ 346,266
- ------------------------------------------------------------------------
$ 346,266
- ------------------------------------------------------------------------
Health and Personal Care -- 0.5%
- ------------------------------------------------------------------------
Fresenius 1,000 $ 174,818
- ------------------------------------------------------------------------
$ 174,818
- ------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
- ------------------------------------------------------------------------
<S> <C> <C>
Textiles and Apparel -- 0.4%
- ------------------------------------------------------------------------
Hugo Boss 80 $ 114,002
- ------------------------------------------------------------------------
$ 114,002
- ------------------------------------------------------------------------
Total Preferred Stocks
(identified cost $656,171) $ 635,086
- ------------------------------------------------------------------------
WARRANTS -- 0.0%
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
- ------------------------------------------------------------------------
Multi-Industry -- 0.0%
- ------------------------------------------------------------------------
IFIL Finanz Di Partecipazoni(1) 350 $ 257
- ------------------------------------------------------------------------
$ 257
- ------------------------------------------------------------------------
Telecommunications -- 0.0%
- ------------------------------------------------------------------------
Telefonica SA(1) 6,120 $ 5,706
- ------------------------------------------------------------------------
$ 5,706
- ------------------------------------------------------------------------
Total Warrants
(identified cost $0) $ 5,963
- ------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.8%
<CAPTION>
FACE AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
- ------------------------------------------------------------------------
Federal Home Loan Discount, 4.90%,
5/3/99 $ 1,608 $ 1,607,560
- ------------------------------------------------------------------------
Total Short-Term Investments
(identified cost $1,607,560) $ 1,607,560
- ------------------------------------------------------------------------
Total Investments -- 100.5%
(identified cost $32,327,002) $ 33,920,119
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- (0.5)% (159,835)
- ------------------------------------------------------------------------
Net Assets -- 100.0% $ 33,760,284
- ------------------------------------------------------------------------
</TABLE>
(1) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
COUNTRY CONCENTRATION OF PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE
COUNTRY OF NET ASSETS VALUE
<S> <C> <C>
- ----------------------------------------------------------------------
Australia 1.4% $ 485,720
Austria 1.4% 453,349
Denmark 2.5% 853,718
Finland 1.9% 644,091
France 8.3% 2,816,040
Germany 12.4% 4,187,071
Hong Kong 2.0% 680,721
Ireland 1.5% 511,826
Italy 5.9% 1,999,611
Japan 17.7% 5,972,510
Malaysia 0.1% 32,211
Netherlands 9.9% 3,330,440
Norway 0.6% 191,763
Poland 0.2% 57,500
Portugal 1.1% 376,176
Spain 2.7% 907,873
Sweden 0.3% 91,674
Switzerland 5.6% 1,896,472
United Kingdom 18.0% 6,085,730
United States 7.0% 2,345,623
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL 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,
$32,327,002) $ 33,920,119
Cash 11,078
Foreign currency, at value
(identified cost $11,662) 11,644
Receivable for investments sold 42,031
Receivable for Fund shares sold 250,625
Dividends receivable 69,862
Tax reclaim receivable 26,978
Deferred organization expenses 46,445
- ------------------------------------------------------
TOTAL ASSETS $ 34,378,782
- ------------------------------------------------------
Liabilities
- ------------------------------------------------------
Payable for investments purchased $ 219,000
Accrued organization expense 51,630
Payable for Fund shares redeemed 325,355
Payable to affiliate for Trustees' fees 89
Other accrued expenses 22,424
- ------------------------------------------------------
TOTAL LIABILITIES $ 618,498
- ------------------------------------------------------
NET ASSETS $ 33,760,284
- ------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------
Paid-in capital $ 32,304,197
Accumulated net realized loss (computed
on the basis of identified cost) (23,334)
Accumulated net investment loss (112,962)
Net unrealized appreciation (computed on
the basis of identified cost) 1,592,383
- ------------------------------------------------------
TOTAL $ 33,760,284
- ------------------------------------------------------
Class A Shares
- ------------------------------------------------------
NET ASSETS $ 11,631,060
SHARES OUTSTANDING 1,156,631
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.06
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $10.06) $ 10.67
- ------------------------------------------------------
Class B Shares
- ------------------------------------------------------
NET ASSETS $ 15,398,780
SHARES OUTSTANDING 1,542,307
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.98
- ------------------------------------------------------
Class C Shares
- ------------------------------------------------------
NET ASSETS $ 6,730,444
SHARES OUTSTANDING 675,807
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.96
- ------------------------------------------------------
</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 (net of foreign taxes,
$28,117) $ 192,859
Interest 68,953
- -----------------------------------------------------
TOTAL INVESTMENT INCOME $ 261,812
- -----------------------------------------------------
Expenses
- -----------------------------------------------------
Investment adviser fee $ 137,500
Trustees fees and expenses 223
Distribution and service fees
Class B 45,992
Class C 27,871
Custodian fee 50,764
Registration fees 22,739
Legal and accounting services 19,344
Transfer and dividend disbursing agent
fees 19,250
Printing and postage 6,875
Amortization of organization expenses 5,794
Miscellaneous 1,510
- -----------------------------------------------------
TOTAL EXPENSES $ 337,862
- -----------------------------------------------------
NET INVESTMENT LOSS $ (76,050)
- -----------------------------------------------------
Realized and Unrealized
Gain (Loss)
- -----------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 124,330
Foreign currency transactions (424)
- -----------------------------------------------------
NET REALIZED GAIN $ 123,906
- -----------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 3,362,279
Foreign currency (6,041)
- -----------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 3,356,238
- -----------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 3,480,144
- -----------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 3,404,094
- -----------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL 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 PERIOD ENDED
in Net Assets (UNAUDITED) OCTOBER 31, 1998(1)
<S> <C> <C>
- ----------------------------------------------------------------------------------
From operations --
Net investment loss $ (76,050) $ (37,720)
Net realized gain (loss) 123,906 (146,432)
Net change in unrealized
appreciation (depreciation) 3,356,238 (1,763,855)
- ----------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 3,404,094 $ (1,948,007)
- ----------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 5,567,333 $ 9,619,827
Class B 5,486,358 11,302,337
Class C 2,571,919 5,803,262
Cost of shares redeemed
Class A (1,751,264) (2,408,094)
Class B (1,456,187) (578,409)
Class C (945,363) (907,522)
- ----------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ 9,472,796 $ 22,831,401
- ----------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 12,876,890 $ 20,883,394
- ----------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------
At beginning of period $ 20,883,394 $ --
- ----------------------------------------------------------------------------------
AT END OF PERIOD $ 33,760,284 $ 20,883,394
- ----------------------------------------------------------------------------------
Accumulated net
investment loss
included in net assets
- ----------------------------------------------------------------------------------
AT END OF PERIOD $ (112,962) $ (36,912)
- ----------------------------------------------------------------------------------
</TABLE>
(1) For the period from the start of business, April 22, 1998, to October 31,
1998.
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998(1)(2)
------------------------------------- -------------------------------------
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 $ 8.840 $ 8.810 $ 8.800 $ 10.000 $ 10.000 $ 10.000
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ (0.004) $ (0.023) $ (0.034) $ 0.012 $ (0.039) $ (0.055)
Net realized and unrealized gain (loss) 1.224 1.193 1.194 (1.172) (1.151) (1.145)
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.220 $ 1.170 $ 1.160 $ (1.160) $ (1.190) $ (1.200)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.060 $ 9.980 $ 9.960 $ 8.840 $ 8.810 $ 8.800
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 13.80% 13.28% 13.18% (11.60)% (11.90)% (12.00)%
- ---------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $ 11,631 $ 15,399 $ 6,730 $ 6,659 $ 9,808 $ 4,416
Ratios (As a percentage of average daily
net assets):
Net expenses 1.92%(4) 2.66%(4) 2.91%(4) 1.97%(4) 2.72%(4) 2.97%(4)
Net expenses after custodian fee
reduction 1.92%(4) 2.66%(4) 2.91%(4) 1.95%(4) 2.70%(4) 2.95%(4)
Net investment income (loss) (0.01)%(4) (0.76)%(4) (1.03)%(4) 0.25%(4) (0.80)%(4) (1.15)%(4)
Portfolio Turnover 23% 23% 23% 14% 14% 14%
- ---------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund may reflect a reduction of the investment adviser fee, an allocation of expenses to
the Investment Adviser, or both. Had such actions not been taken, the ratios and net investment income (loss) per share
would have been as follows:
Ratios (As a percentage of average daily
net assets):
Expenses 2.20%(4) 2.95%(4) 3.20%(4)
Expenses after custodian fee
reduction 2.18%(4) 2.93%(4) 3.18%(4)
Net investment income (loss) 0.02%(4) (1.03)%(4) (1.38)%(4)
Net investment income (loss) per share $ 0.001 $ (0.050) $ (0.066)
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the period from the start of business, April 22, 1998, to October 31,
1998.
(2) Net investment income (loss) per share was computed using average shares
outstanding.
(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
10
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance Tax-Managed International Growth Fund (the Fund) is a series of
Eaton Vance Mutual Funds Trust (the Trust). The Trust is an entity of the
type commonly known as a Massachusetts business trust and is registered under
the Investment Company Act of 1940 as a diversified open-end management
investment company. The Declaration of Trust permits the Trustees to issue
interests in the Fund. The Fund offers three classes of shares. Class A
shares are generally sold subject to a sales charge imposed at the time of
purchase. Class B and Class C shares are sold at net asset value and are
subject to a contingent deferred sales charge (see Note 6). 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 Income -- Dividend income is recorded on the ex-dividend date for dividends
received in cash and/or securities. However, if the ex-dividend date has
passed, certain dividends from foreign securities are recorded as the Fund is
informed of the ex-dividend date. Interest income is recorded on the accrual
basis.
C Income 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. Withholding taxes on foreign dividends and
capital gains have been provided for in accordance with the Fund's
understanding of the applicable country's tax rules and rates. At October 31,
1998, the Fund, for federal income tax purposes, had a capital loss carryover
of $147,240 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.
D Foreign Currency Translation -- Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing on
the respective dates of such transactions. Recognized gains or losses on
investment transactions attributable to foreign currency exchange rates are
recorded for financial statement purposes as net realized gains and losses on
investments. That portion of unrealized gains and losses on investments that
result from fluctuations in foreign currency exchange rates is not separately
disclosed.
E Forward Foreign Currency Exchange Contracts -- The Fund may enter into
forward foreign currency exchange contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date. Risks may arise
upon entering these contracts from the potential inability of counterparties
to meet the terms of their contracts and from movements in the value of a
foreign currency relative to the U.S. dollar. The Fund will enter into
forward contracts for hedging purposes as well as non-hedging purposes. The
forward foreign currency exchange contracts are adjusted by the daily
exchange rate of the underlying currency and any gains or losses are recorded
for financial statement purposes as unrealized until such time as the
contracts have been closed or offset.
F Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Fund. Pursuant to the custodian agreement, IBT receives a fee reduced
by credits which are determined based on the average cash
11
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
balances the Fund maintains with IBT. All significant credit balances used to
reduce the Fund's custodian fees are reported as a reduction of operating
expenses on the Statement of Operations.
G Deferred Organization Expenses -- Costs incurred by the Fund in connection
with its organization are being amortized on the straight-line basis over
five years.
H 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.
I 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.
2 Distributions to Shareholders
- -------------------------------------------
It is the present policy of the Fund to make at least one distribution
annually (normally in December) of all or substantially all of its net
investment income and at least one distribution annually of all or
substantially all of its net realized capital gains. Distributions are paid
in the form of additional shares of the Fund or, at the election of the
shareholder, in cash. Shareholders may reinvest distributions in shares of
the Fund at the net asset value as of the close of business on the
ex-dividend date. The Fund distinguishes between distributions on a tax basis
and a financial reporting basis. Generally accepted accounting principles
require that only distributions in excess of tax basis earnings and profits
be reported in the financial statements as a return of capital. Differences
in the recognition or classification of income between the financial
statements and tax earnings and profits which result in temporary
overdistributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains. Permanent differences between book and tax accounting relating to
distributions are reclassified to paid-in capital.
3 Shares of Beneficial Interest
- -------------------------------------------
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1999 OCTOBER 31,
CLASS A (UNAUDITED) 1998(1)
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 588,915 993,335
Redemptions (185,327) (240,292)
- -------------------------------------------------------------------------------
NET INCREASE 403,588 753,043
- -------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1999 OCTOBER 31,
CLASS B (UNAUDITED) 1998(1)
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 584,693 1,177,721
Redemptions (155,576) (64,531)
- -------------------------------------------------------------------------------
NET INCREASE 429,117 1,113,190
- -------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1999 OCTOBER 31,
CLASS C (UNAUDITED) 1998(1)
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 275,862 602,832
Redemptions (101,821) (101,066)
- -------------------------------------------------------------------------------
NET INCREASE 174,041 501,766
- -------------------------------------------------------------------------------
</TABLE>
(1) For the period from the start of business, April 22, 1998, to October 31,
1998.
4 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
Eaton Vance Management (EVM) earns an investment adviser fee as compensation
for management and investment advisory services rendered to the Fund. The fee
is computed at the monthly rate of 1/12 of 1% (1.00% per annum) of the Fund's
average daily net assets up to $500 million, and at reduced rates as daily
net assets exceed that level. For the six months ended April 30, 1999 the
effective annual rate, based on average daily net assets was 1.00%.
Except as to Trustees of the Fund who are not members of EVM's organization,
officers and Trustees receive remuneration for their services to the Fund out
of such investment adviser fee. Certain officers and Trustees of the Fund are
officers of the above organization. Eaton Vance Distributors, Inc. (EVD), a
subsidiary of EVM and the
12
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
Fund's principal underwriter, received $14,529 as its portion of the sales
charge on sales of Class A shares for the six months ended April 30, 1999.
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.
5 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 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. Class A expects to begin making service fee payments during the
quarter ended June 30, 1999.
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 6) 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 $45,992 and $20,903, respectively, 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 $719,000 and $493,000 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. For the six months ended April 30, 1999, Class C paid or
accrued service fees to or payable to EVD in the amount of $6,968. Class B
expects to begin making service fee payments during the quarter ending June
30, 1999. 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.
6 Contingent Deferred Sales Charge
- -------------------------------------------
Class B and Class C shares are each subject to a contingent deferred sales
charge (CDSC). A 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 the date
of redemption or date of purchase. No charge is levied on Class B and Class C
shares acquired by reinvestment of dividends or capital gains distributions.
The Class B CDSC is imposed at declining rates that begin
13
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
at 5% in the case of redemptions in the first and second year after purchase,
declining one percentage point each subsequent year. No CDSC is levied on
Class B and Class C shares which have been sold to EVD or its affiliates or
to their respective employees or clients and may be waived under various
other conditions. CDSC received on Class B and C redemptions are paid to EVD
to reduce the amount of Uncovered Distribution Charges calculated under the
Class B's and Class C's Distribution Plans (see Note 5). CDSC charges
received on Class B and C redemptions when no Uncovered Distribution Charges
exist for the respective classes will be credited to the Fund. EVD received
approximately $20,000 and $3,000 of CDSC paid by shareholders of Class B and
Class C shares, respectively, during the six months ended April 30, 1999.
7 Investment Transactions
- -------------------------------------------
Purchases and sales of investments, other than short-term obligations,
aggregated $14,316,294 and $5,800,789, respectively, for the six months ended
April 30, 1999.
8 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investment securities owned at April 30, 1999, as computed on a federal
income tax basis, are as follows:
<TABLE>
<S> <C>
AGGREGATE COST $ 32,327,002
- ------------------------------------------------------
Gross unrealized appreciation $ 3,457,507
Gross unrealized depreciation (1,864,390)
- ------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,593,117
- ------------------------------------------------------
</TABLE>
9 Line of Credit
- -------------------------------------------
The Fund participates with other funds and portfolios managed by EVM and its
affiliates in a $130 million 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.
10 Risks associated with Foreign Investments
- -------------------------------------------
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less
publicly available information about foreign companies, particularly those
not subject to the disclosure and reporting requirements of the U.S.
securities laws. Foreign issuers are generally not bound by uniform
accounting, auditing, and financial reporting requirements and standards of
practice comparable to those applicable to domestic issuers. Investments in
foreign securities also involve the risk of possible adverse changes in
investment or exchange control regulations, expropriation or confiscatory
taxation, limitation on the removal of funds or other assets of the Fund,
political or financial instability or diplomatic and other developments which
could affect such investments. Foreign stock markets, while growing in volume
and sophistication, are generally not as developed as those in the United
States, and securities of some foreign issuers (particularly those located in
developing countries) may be less liquid and more volatile than securities of
comparable U.S. companies. In general, there is less overall governmental
supervision and regulation of foreign securities markets, broker-dealers and
issuers than in the United States.
14
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 1999
INVESTMENT MANAGEMENT
EATON VANCE TAX-MANAGED INTERNATIONAL 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
15
<PAGE>
INVESTMENT ADVISER AND ADMINISTRATOR OF EATON VANCE
TAX-MANAGED INTERNATIONAL 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 INTERNATIONAL 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.
- -------------------------------------------------------------------------------
2-2146-6/99 IGSRC-6/99
