<PAGE>
MUTUAL FUNDS [PHOTO OF
[LOGO] FOR PEOPLE STATUE OF LIBERTY]
WHO PAY
TAXES-Registered Trademark-
Semiannual Report June 30, 2000
[PHOTO OF WALL ST.
STREET SIGN] EATON VANCE
TAX-MANAGED
GROWTH
FUND [EATON VANCE
75TH ANNIVERSARY
LOGO]
[PHOTO OF CALCULATOR AND
TAX RETURN FORM]
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
--------------------------------------------------------------------------------
INVESTMENT UPDATE
--------------------------------------------------------------------------------
INVESTMENT ENVIRONMENT
----------------------
The Economy
[PHOTO OF]
[D. RICHARDSON] - In response to a strong economy and strong financial
markets, the Federal Reserve Board raised the
Federal Funds rate, a key barometer of short-term
interest rates, on six occasions in the past 13
Duncan W. Richardson months. The Fed has been concerned that rising
Portfolio Manager labor costs and increased consumer demand, could
lead to higher inflation.
- There is evidence that the Fed's series of rate hikes is starting to have
the desired effect. Interest rate-sensitive sectors of the economy --
especially housing and construction -- have slowed significantly. Although
still healthy, consumer spending has also cooled.
- Recent inflation indicators have been favorable. Wage gains, a source of
concern in a tight labor market, showed little movement in May. Both the
Producer Price Index and the Consumer Price Index have been benign, and the
number of manufacturers experiencing price increases from suppliers dropped
off sharply.
The Stock Market
- The first half of 2000 was characterized by a return to earth for many
high-flying technology and Internet stocks that led the market in recent
years. The tech-heavy NASDAQ Composite Index reached a record high in
March, before increasingly valuation-sensitive investors -- wary of
interest rate hikes and second-quarter earnings warnings -- took some air
out of the balloon. A stronger performance in June helped the NASDAQ's
total return for 2000 recover to -2.5%.(1)
- The broad-based S&P 500 Index had a total return of -0.4% for the first
half of 2000 -- the only losing first half since 1994. The S&P 500 was
hurt by poor stock performance across a range of industries, including
telecommunications services, household products, retail, and computer
software. Value stocks lagged growth stocks due to fears of a slowing
economy.(1)
THE FUND
--------
The Past Six Months
- During the six months ended June 30, 2000, the Fund's Class A shares had a
total return of 5.23%.(2) This return was the result of an increase in net
asset value (NAV) to $23.94 on June 30, 2000 from $22.75 on December 31,
1999.
- The Fund's Class B shares had a total return of 4.82%(2) during the period,
the result of an increase in NAV to $23.26 from $22.19.
- The Fund's Class C shares had a total return of 4.78%(2) during the period,
the result of an increase in NAV to $22.34 from $21.32.
- The Fund's Class I shares had a total return of 5.34%(2) during the period,
the result of an increase in NAV to $11.24 from $10.67.
- For comparison, during the six months ended June 30, 2000, the average
return of the funds in the Lipper Multi-Cap Core Classification was
2.73%.(1)
Management Discussion
- Shares of the Fund outperformed their peer group and the S&P 500 in the
first half of 2000.(1) The Portfolio benefited from a risk-averse,
valuation-sensitive management style; broad diversification; by not
speculating in Internet stocks; and by avoiding significant exposure to
overvalued sectors.
- An overweighting in the healthcare and financial sectors (relative to the
S&P 500) also paid off, as these were among the best-performing sectors in
the first half of 2000. Individual stocks that had a positive effect on
performance included Intel, Pfizer, Analog Devices, Medtronic, and
Sepracor.
- To achieve our objective of long-term, after-tax returns, management
intends to stay the course of investing in high quality companies that we
believe have good growth prospects and attractive valuations. Volatile
market conditions can create opportunities for disciplined long-term
investors such as the Portfolio.
--------------------------------------------------------------------------------
FUND INFORMATION
as of June 30, 2000
<TABLE>
<CAPTION>
PERFORMANCE(5) Class A Class B Class C Class I
---------------------------------------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
One Year 13.25% 12.42% 12.32% 12.40%
Life of Fund+ 22.84 21.92 22.82 12.40
<CAPTION>
SEC Average Annual Total Returns (including
sales charge or applicable CDSC)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
One Year 6.73% 7.42% 11.32% 12.40%
Life of Fund+ 21.14 21.67 22.82 12.40
+ Inception Dates -- Class A and Class B: 3/28/96; Class C:8/2/96; Class I: 7/6/99
</TABLE>
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
TEN LARGEST HOLDINGS(4)
------------------------------------------
American International Group, Inc. 2.6%
Intel Corp. 2.2
Cisco Systems, Inc. 1.9
Pfizer, Inc. 1.8
Automatic Data Processing, Inc. 1.7
Omnicom Group, Inc. 1.6
Marsh & McLennan Cos., Inc. 1.6
Lexmark International Group, Inc. 1.6
Morgan Stanley Dean Witter & Co. 1.5
General Electric Co. 1.5
(1) It is not possible to invest directly in an Index or a Lipper
Classification. The S&P 500 Index is an unmanaged index commonly used as a
measure of U.S. stock market performance.
(2) 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. (3) Returns are historical and are
calculated by determining the percentage change in net asset value with all
distributions reinvested. SEC returns for Class A reflect the maximum 5.75%
sales charge. SEC returns for Class B reflect the applicable CDSC based on
the following schedule: 5% -- 1st and 2nd years; 4% -- 3rd year; 3% -- 4th
year; 2% -- 5th year; 1% -- 6th year. SEC 1-Year return for Class C
reflects 1% CDSC. (4) Ten largest holdings accounted for 18.0% of the
Portfolio's net assets net of securities sold short. 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 GROWTH FUND AS OF JUNE 30, 2000
--------------------------------------------------------------------------------
PERFORMANCE
--------------------------------------------------------------------------------
AFTER-TAX PERFORMANCE
as of June 30, 2000
The table below sets forth the Fund's pre-tax performance and after-tax
performance. After-tax performance reflects the impact of federal income taxes
on Fund distributions of dividends and capital gains, while pre-tax performance
does not. Because the objective of the Fund is to provide long-term, after-tax
returns to shareholders, it is important for investors to know the effect of
taxes on the Fund's return.
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
Average Annual Returns
at Net Asset Value for the period ended June 30, 2000
1 Year Pre-Tax After-Tax Tax-Efficiency
-------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Class A 13.25% 13.25% 100.00%
Class B 12.42% 12.42% 100.00%
Class C 12.32% 12.32% 100.00%
Life of Fund* Pre-Tax After-Tax Tax-Efficiency
-------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Class A 22.84% 22.80% 99.82%
Class B 21.92% 21.92% 100.00%
Class C 22.82% 22.82% 100.00%
*Inception Dates -- Class A and Class B: 3/28/96; Class C: 8/2/96
Source: TowersData, Bethesda, Md
-------------------------------------------------------------------------------------------
</TABLE>
Pre-tax returns are calculated by determining the percentage change in net
asset value with all distributions reinvested in Fund shares. After-tax returns
are calculated similarly, except that distributions are reduced by federal
income taxes before reinvestment.
The highest federal tax rates (currently 39.6% for dividends and 20% for
capital gains) are used. The after-tax calculations do not take into account
state or local taxes or the federal alternative minimum tax. If an investor
sells Fund shares, any realized gains will be subject to taxes not reflected in
the after-tax returns shown above.
After-tax and pre-tax returns for the 1-year period are identical because the
Fund made no dividend or capital gains distributions. There is no guarantee
that such distributions will not be made in the future.
The performance does not include the effects of the Class A shares initial sales
charge (5.75% maximum) or any applicable contingent deferred sales charge (for
Class B, CDSC is based on the following schedule: 5% -- 1st and 2nd years;
4% -- 3rd year; 3% -- 4th year; 2% -- 5th year; 1% -- 6th year. For Class C, the
CDSC is 1% for shares redeemed in the first year).
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.
The after-tax returns shown above are not applicable to shares held in
tax-deferred accounts (such as IRA or 401(k) accounts)and shares held by
non-taxable entities (such as qualified pension plans and charities).
3
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF JUNE 30, 2000
<S> <C>
Assets
--------------------------------------------------------
Investment in Tax-Managed Growth
Portfolio, at value
(identified cost, $4,934,459,482) $6,653,312,293
Receivable for Fund shares sold 18,757,564
Deferred organization expenses 20,671
--------------------------------------------------------
TOTAL ASSETS $6,672,090,528
--------------------------------------------------------
Liabilities
--------------------------------------------------------
Payable for Fund shares redeemed $ 8,595,883
Payable to affiliate for service fees 2,043,835
Payable to affiliate for Trustees' fees 1,914
Accrued expenses 585,858
--------------------------------------------------------
TOTAL LIABILITIES $ 11,227,490
--------------------------------------------------------
NET ASSETS $6,660,863,038
--------------------------------------------------------
Sources of Net Assets
--------------------------------------------------------
Paid-in capital $4,900,116,138
Accumulated undistributed net realized
gain from Portfolio (computed on the
basis of identified cost) 49,556,635
Accumulated net investment loss (7,662,546)
Net unrealized appreciation from
Portfolio (computed on the basis of
identified cost) 1,718,852,811
--------------------------------------------------------
TOTAL $6,660,863,038
--------------------------------------------------------
Class A Shares
--------------------------------------------------------
NET ASSETS $1,556,940,507
SHARES OUTSTANDING 65,024,286
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 23.94
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $23.94) $ 25.40
--------------------------------------------------------
Class B Shares
--------------------------------------------------------
NET ASSETS $3,790,249,825
SHARES OUTSTANDING 162,920,452
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 23.26
--------------------------------------------------------
Class C Shares
--------------------------------------------------------
NET ASSETS $1,255,009,785
SHARES OUTSTANDING 56,167,109
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 22.34
--------------------------------------------------------
Class I Shares
--------------------------------------------------------
NET ASSETS $ 368,565
SHARES OUTSTANDING 32,786
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 11.24
--------------------------------------------------------
Class S Shares
--------------------------------------------------------
NET ASSETS $ 58,294,356
SHARES OUTSTANDING 2,433,727
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 23.95
--------------------------------------------------------
</TABLE>
On sales of $50,000 or more, the offering price of Class A shares is reduced.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JUNE 30, 2000
<S> <C>
Investment Income
------------------------------------------------------
Dividends allocated from Portfolio
(net of foreign taxes, $250,833) $ 27,815,193
Interest allocated from Portfolio 5,915,235
Expenses allocated from Portfolio (14,089,077)
------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 19,641,351
------------------------------------------------------
Expenses
------------------------------------------------------
Trustees' fees and expenses $ 2,493
Distribution and service fees
Class A 1,390,019
Class B 17,040,120
Class C 5,780,559
Class S 56,462
Transfer and dividend disbursing agent
fees 2,084,014
Registration fees 469,479
Printing and postage 181,280
Legal and accounting services 16,904
Custodian fee 12,897
Amortization of organization expenses 10,111
Miscellaneous 259,559
------------------------------------------------------
TOTAL EXPENSES $ 27,303,897
------------------------------------------------------
NET INVESTMENT LOSS $ (7,662,546)
------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $137,244,221
Foreign currency transactions (5,585)
------------------------------------------------------
NET REALIZED GAIN $137,238,636
------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $177,441,001
Securities sold short 436,636
Foreign currency (56,167)
------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $177,821,470
------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $315,060,106
------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $307,397,560
------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INCREASE (DECREASE) JUNE 30, 2000 YEAR ENDED
IN NET ASSETS (UNAUDITED) DECEMBER 31, 1999
<S> <C> <C>
-----------------------------------------------------------------------------
From operations --
Net investment loss $ (7,662,546) $ (5,394,002)
Net realized gain (loss) 137,238,636 (24,471,118)
Net change in unrealized
appreciation (depreciation) 177,821,470 816,114,247
-----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 307,397,560 $ 786,249,127
-----------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 216,229,006 $ 548,631,355
Class B 365,938,513 1,060,728,264
Class C 178,925,500 426,422,085
Class I 312,288 52,943
Issued in reorganization (see
Note 8)
Class S -- 52,758,701
Cost of shares redeemed
Class A (136,688,180) (190,080,488)
Class B (213,880,489) (243,087,720)
Class C (88,326,251) (106,021,954)
Class I (5,729) (550)
Class S (858,443) (834,291)
-----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ 321,646,215 $ 1,548,568,345
-----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 629,043,775 $ 2,334,817,472
-----------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------
At beginning of period $ 6,031,819,263 $ 3,697,001,791
-----------------------------------------------------------------------------
AT END OF PERIOD $ 6,660,863,038 $ 6,031,819,263
-----------------------------------------------------------------------------
Accumulated net
investment loss included
in net assets
-----------------------------------------------------------------------------
AT END OF PERIOD $ (7,662,546) $ --
-----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED PERIOD ENDED YEAR ENDED
(UNAUDITED)(1) DECEMBER 31, 1999(1) DECEMBER 31, 1998(1)(2) OCTOBER 31, 1998(1)
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 22.750 $ 19.440 $ 17.150 $ 14.680
----------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
----------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.039 $ 0.101 $ 0.017 $ 0.099
Net realized and unrealized
gain 1.151 3.209 2.273 2.371
----------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 1.190 $ 3.310 $ 2.290 $ 2.470
----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 23.940 $ 22.750 $ 19.440 $ 17.150
----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 5.23% 17.03% 13.35% 16.83%
----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $1,556,941 $1,401,591 $852,967 $689,283
Ratios (As a percentage of
average daily net assets):
Expenses(4) 0.74%(5) 0.68% 0.62%(5) 0.67%
Net investment income 0.34%(5) 0.49% 0.56%(5) 0.59%
Portfolio Turnover of the
Portfolio 8% 11% 3% 12%
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the two-month period ended December 31, 1998.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED PERIOD ENDED
(UNAUDITED)(1) DECEMBER 31, 1999(1) DECEMBER 31, 1998(1)(2)
<S> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 22.190 $ 19.100 $ 16.870
-----------------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------------
Net investment loss $ (0.047) $ (0.055) $ (0.005)
Net realized and unrealized
gain 1.117 3.145 2.235
-----------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 1.070 $ 3.090 $ 2.230
-----------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 23.260 $ 22.190 $ 19.100
-----------------------------------------------------------------------------------------------------
TOTAL RETURN(4) 4.82% 16.18% 13.22%
-----------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $3,790,250 $3,465,441 $2,196,794
Ratios (As a percentage of
average daily net assets):
Expenses(5) 1.51%(6) 1.45% 1.37%(6)
Net investment loss (0.42)%(6) (0.28)% (0.18)%(6)
Portfolio Turnover of the
Portfolio 8% 11% 3%
-----------------------------------------------------------------------------------------------------
<CAPTION>
CLASS B
----------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------
1998(1) 1997 1996(3)
<S> <C> <C> <C>
------------------------------
Net asset value -- Beginning
of period $ 14.550 $11.150 $10.000
------------------------------
Income (loss) from operations
------------------------------
Net investment loss $ (0.027) $(0.011) $(0.003)
Net realized and unrealized
gain 2.347 3.411 1.153
------------------------------
TOTAL INCOME FROM OPERATIONS $ 2.320 $ 3.400 $ 1.150
------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 16.870 $14.550 $11.150
------------------------------
TOTAL RETURN(4) 15.95% 30.49% 11.50%
------------------------------
Ratios/Supplemental Data
------------------------------
Net assets, end of period
(000's omitted) $1,801,720 $574,740 $77,644
Ratios (As a percentage of
average daily net assets):
Expenses(5) 1.43% 1.50% 1.63%(6)
Net investment loss (0.16)% (0.15)% (0.13)%(6)
Portfolio Turnover of the
Portfolio 12% 14% 6%
------------------------------
</TABLE>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) For the two-month period ended December 31, 1998.
(3) For the period from the start of business, March 28, 1996, to
October 31, 1996.
(4) 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.
(5) Includes the Fund's share of the Portfolio's allocated expenses.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS C
------------------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED PERIOD ENDED YEAR ENDED
(UNAUDITED)(1) DECEMBER 31, 1999(1) DECEMBER 31, 1998(1)(2) OCTOBER 31, 1998(1)
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 21.320 $ 18.380 $ 16.240 $ 14.030
----------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
----------------------------------------------------------------------------------------------------------------------------
Net investment loss $ (0.050) $ (0.074) $ (0.011) $ (0.530)
Net realized and unrealized
gain 1.070 3.014 2.151 2.263
----------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 1.020 $ 2.940 $ 2.140 $ 2.210
----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 22.340 $ 21.320 $ 18.380 $ 16.240
----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.78% 16.00% 13.18% 15.75%
----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $1,255,010 $1,108,513 $647,241 $522,877
Ratios (As a percentage of
average daily net assets):
Expenses(4) 1.55%(5) 1.56% 1.55%(5) 1.59%
Net investment loss (0.47)%(5) (0.39)% (0.37)%(5) (0.33)%
Portfolio Turnover of the
Portfolio 8% 11% 3% 12%
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) For the two-month period ended December 31, 1998.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS I
-------------------------------------------
SIX MONTHS ENDED
JUNE 30, 2000 PERIOD ENDED
(UNAUDITED)(1) DECEMBER 31, 1999(1)(2)
<S> <C> <C>
-----------------------------------------------------------------------------
Net asset value -- Beginning
of period $10.670 $10.000
-----------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------
Net investment income $ 0.029 $ 0.031
Net realized and unrealized
gain 0.541 0.639
-----------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.570 $ 0.670
-----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $11.240 $10.670
-----------------------------------------------------------------------------
TOTAL RETURN(3) 5.34% 6.70%
-----------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 369 $ 58
Ratios (As a percentage of
average daily net assets):
Expenses(4) 0.56%(5) 0.55%(5)
Net investment income 0.54%(5) 0.66%(5)
Portfolio Turnover of the
Portfolio 8% 11%
-----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the start of business, July 6, 1999 to December 31,
1999.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS S
-------------------------------------------
SIX MONTHS ENDED
JUNE 30, 2000 PERIOD ENDED
(UNAUDITED)(1) DECEMBER 31, 1999(1)(2)
<S> <C> <C>
-----------------------------------------------------------------------------
Net asset value -- Beginning
of period $22.750 $21.000
-----------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------
Net investment income $ 0.047 $ 0.067
Net realized and unrealized
gain 1.153 1.683
-----------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 1.200 $ 1.750
-----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $23.950 $22.750
-----------------------------------------------------------------------------
TOTAL RETURN(3) 5.28% 8.33%
-----------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $58,294 $56,217
Ratios (As a percentage of
average daily net assets):
Expenses(4) 0.67%(5) 0.66%(5)
Net investment income 0.41%(5) 0.51%(5)
Portfolio Turnover of the
Portfolio 8% 11%
-----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the start of business, May 14, 1999 to December 31,
1999.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
-------------------------------------------
Eaton Vance Tax-Managed Growth Fund (the Fund) is a diversified 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 amended, as an open-end management
investment company. The Fund has five 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). Class S shares were issued in
connection with the acquisition of a private investment company (see Note 8)
and are exempt from registration under the Securities Act of 1933. Class S
shares may be subject to a contingent deferred sales charge (see Note 6).
Class I shares are offered at net asset value and are not subject to a sales
charge. Each class represents a pro rata interest in the Fund, but votes
separately on class-specific matters and (as noted below) is subject to
different expenses. Realized and unrealized gains and losses and net
investment income, other than class specific expenses, are allocated daily to
each class of shares based on the relative net assets of each class to the
total net assets of the Fund. Each class of shares differs in its
distribution plan and certain other class specific expenses. The Fund invests
all of its investable assets in interests in the Tax-Managed Growth Portfolio
(the Portfolio), a New York Trust, having the same investment objective as
the Fund. The value of the Fund's investment in the Portfolio reflects the
Fund's proportionate interest in the net assets of the Portfolio (39.2 % at
June 30, 2000). The performance of the Fund is directly affected by the
performance of the Portfolio. The financial statements of the Portfolio,
including the Portfolio of Investments, are included elsewhere in this report
and should be read in conjunction with the Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuation -- Valuation of securities by the Portfolio is discussed
in Note 1A of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.
B Income -- The Fund's net investment income consists of the Fund's pro rata
share of the net investment income of the Portfolio, less all actual and
accrued expenses of the Fund determined in accordance with generally accepted
accounting principles.
C Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders, each year, all of its net investment income, and
any net realized capital gains. Accordingly, no provision for federal income
or excise tax is necessary. At December 31, 1999 the Fund for federal income
tax purposes, had a capital loss carryover of $85,813,204 which will reduce
taxable income arising from future net realized gains, 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. A portion of such
capital loss carryover was acquired through a Fund reorganization and may be
subject to certain limitations. Such capital loss carryover will expire on
December 31, 2007 ($26,914,286), December 31, 2006 ($55,860,853) and December
31, 2005 ($3,038,065).
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 Other -- Investment transactions are accounted for on a trade date basis.
Dividends to shareholders are recorded on the ex-dividend date.
F Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
G Interim Financial Statements -- The interim financial statements relating to
June 30, 2000 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
11
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
2 Distributions to Shareholders
-------------------------------------------
The Fund's policy is to distribute annually (normally in December)
substantially all of the net investment income allocated to the Fund by the
Portfolio (less the Fund's direct expenses) and to distribute annually all or
substantially all of its net realized capital gains (reduced by any available
capital loss carryforwards from prior years) allocated by the Portfolio to
the Fund, if any. Distributions are paid in the form of additional shares of
the Fund or, at the election of the shareholder, in cash. The Fund
distinguishes between distributions on a tax basis and a financial reporting
basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a return of capital. Differences in the recognition
or classification of income between the financial statements and tax earnings
and profits which result in 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 Shares of Beneficial Interest
-------------------------------------------
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such as
the Fund) and classes. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
CLASS A (UNAUDITED) DECEMBER 31, 1999
<S> <C> <C>
--------------------------------------------------------------------------------
Sales 9,362,842 27,027,194
Redemptions (5,947,520) (9,289,600)
--------------------------------------------------------------------------------
NET INCREASE 3,415,322 17,737,594
--------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
CLASS B (UNAUDITED) DECEMBER 31, 1999
<S> <C> <C>
--------------------------------------------------------------------------------
Sales 16,289,155 53,313,343
Redemptions (9,548,596) (12,145,126)
--------------------------------------------------------------------------------
NET INCREASE 6,740,559 41,168,217
--------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED
CLASS C (UNAUDITED) DECEMBER 31, 1999
<S> <C> <C>
--------------------------------------------------------------------------------
Sales 8,272,051 22,290,602
Redemptions (4,109,206) (5,506,082)
--------------------------------------------------------------------------------
NET INCREASE 4,162,845 16,784,520
--------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 PERIOD ENDED
CLASS I (UNAUDITED) DECEMBER 31, 1999(1)
<S> <C> <C>
--------------------------------------------------------------------------------
Sales 27,890 5,456
Redemptions (503) (57)
--------------------------------------------------------------------------------
NET INCREASE 27,387 5,399
--------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 PERIOD ENDED
CLASS S (UNAUDITED) DECEMBER 31, 1999(2)
<S> <C> <C>
--------------------------------------------------------------------------------
Sales -- 2,512,232
Redemptions (37,275) (41,230)
--------------------------------------------------------------------------------
NET INCREASE (DECREASE) (37,275) 2,471,002
--------------------------------------------------------------------------------
</TABLE>
(1) For the period from commencement of operations July 6, 1999, to
December 31, 1999.
(2) For the period from May 14, 1999, to December 31, 1999.
4 Transactions with Affiliates
-------------------------------------------
Eaton Vance Management (EVM) serves as the administrator of the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 2 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report. Except 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 management fee. The Fund was
informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and
the Fund's principal underwriter, received $829,221 as its portion of the
sales charge on sales of Class A shares for the six months ended June 30,
2000.
Certain officers and Trustees of the Fund and the Portfolio are officers of
the above organizations.
5 Distribution and Service Plan
-------------------------------------------
The Fund has in effect distribution plans for Class B (Class B Plan) and
Class C (Class C Plan) pursuant to Rule
12
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
12b-1 under the Investment Company Act of 1940 and a service plan for
Class A shares (Class A Plan) (collectively, the Plans). The Class B and
Class C Plans require the Fund to pay EVD amounts equal to 1/365 of 0.75% of
the Fund's average daily net assets attributable to Class B and Class C
shares for providing ongoing distribution services and facilities to the
Fund. The Fund will automatically discontinue payments to EVD during any
period in which there are no outstanding Uncovered Distribution Charges,
which are equivalent to the sum of (i) 5% and 6.25% of the aggregate amount
received by the Fund for the Class B and Class C shares sold, respectively,
plus (ii) interest calculated by applying the rate of 1% over the prevailing
prime rate to the outstanding balance of Uncovered Distribution Charges of
EVD of each respective class, reduced by the aggregate amount of contingent
deferred sales charges (see Note 6) and daily amounts theretofore paid to EVD
by each respective class. The Fund paid or accrued $13,363,915 and $4,335,419
for Class B and Class C shares, respectively, to or payable to EVD for the
six months ended June 30, 2000, representing 0.75% (annualized) of the
average daily net assets for Class B and Class C shares. At June 30, 2000,
the amount of Uncovered Distribution Charges EVD calculated under the Plan
were approximately $115,075,000 and $65,718,000 for Class B and Class C
shares, respectively.
The Plans authorize the Fund to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.25% of the
Fund's average daily net assets attributable to Class A, Class B, and
Class C shares for any fiscal year. The Trustees initially implemented the
Plans by authorizing the Fund to make quarterly payments of service fees to
EVD and investment dealers equal to 0.25% per annum of the Fund's average
daily net assets attributable to Class A and Class B shares based on the
value of Fund shares sold by such persons and remaining outstanding for at
least one year. On October 4, 1999, the Trustees approved service fee
payments equal to 0.25% per annum of the Fund's average daily net assets
attributable to Class A and Class B shares for any fiscal year on shares of
the Fund sold on or after October 12, 1999. The Class C Plan permits the Fund
to make monthly payments of service fees in amounts not expected to exceed
0.25% of the Fund's average daily net assets attributable to Class C shares
for any fiscal year. Service fee payments will be made for personal services
and/or the maintenance of shareholder accounts. Service fees are separate and
distinct from the sales commissions and distribution fees payable by the Fund
to EVD, and, as such are not subject to automatic discontinuance when there
are no outstanding Uncovered Distribution Charges of EVD. Service fee
payments for the six months ended June 30, 2000 amounted to $1,390,019,
$3,676,205, and $1,445,140 for Class A, Class B, and Class C
shares, respectively.
Pursuant to a servicing agreement, the Fund will make service fee payments in
the amount of 0.20% (annualized) on the value of Class S shares to EVD, one
half of which will be paid to a subagent commencing in the thirteenth month
after the issuance of Class S shares. The Fund paid or accrued service fees
to or payable to EVD for the six months ended June 30, 2000 in the amount of
$56,462.
Certain officers and Trustees of the Fund are officers of the above
organizations.
6 Contingent Deferred Sales Charge
-------------------------------------------
A contingent deferred sales charge (CDSC) is generally imposed on any
redemption of Class B shares made within six years of purchase, on any
redemption of Class C shares made within one year of purchase and on any
redemption of Class S shares made within two years of issuance. Generally,
the CDSC is based upon the lower of the net asset value at date of redemption
or date of purchase or issuance. No charge is levied on shares acquired by
reinvestment of dividends or capital gains distributions. Class B CDSC is
imposed at declining rates that begin at 5% in the case of redemptions in the
first and second year after purchase, declining one percentage point each
subsequent year. Class C shares will be subject to a 1.00% CDSC if redeemed
within one year of purchase. Class S shares will be subject to a 1% CDSC if
redeemed within one year of issuance and a 0.50% CDSC if redeemed during the
second year after issuance. No CDSC is levied on shares which have been sold
to EVM or its affiliates or to their respective employees or clients and may
be waived under certain other limited conditions. CDSC charges pertaining to
Class B and Class C shares are paid to EVD to reduce the amount of Uncovered
Distribution Charges calculated under each Fund's Distribution Plan (see
Note 5). CDSC charges assessed on Class B and Class C shares received when no
Uncovered Distribution Charges exist will be credited to the Fund. EVD
received approximately $4,622,000, $137,000 and $204 of CDSC paid by
shareholders for Class B shares, Class C shares and Class S shares
respectively, for the six months ended June 30, 2000.
7 Investment Transactions
-------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio aggregated
$765,279,251 and $474,671,402, respectively, for the six months ended
June 30, 2000.
13
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
8 Transfer of Net Assets
-------------------------------------------
On May 14, 1999, the Tax-Managed Growth Fund acquired a private investment
company (the Company). Under the terms of the acquisition the Company
transferred substantially all of its assets to the Fund in exchange for
Class S shares of beneficial interest in the Fund and the assumption by the
Fund of certain of the Company's liabilities. The assets transferred to the
Fund by the Company consisted of investment securities. The Fund immediately
exchanged such securities into the Portfolio for an interest in the
Portfolio. In connection with the acquisition the Fund exchanged 2,512,232
Class S shares with a net asset value of $21.00 per share for investment
securities with a value of $55,256,692 (including $53,429,791 of unrealized
appreciation) and assumed liabilities totaling $2,497,991. The transaction
was structured for tax purposes to qualify as a tax free reorganization under
to Internal Revenue Code. Immediately after the acquisition, the combined net
assets of the Eaton Vance Tax-Managed Growth Fund were $4,697,128,097 with a
net asset value of $20.60, $20.19, $19.40 and $21.00 for Class A, Class B,
Class C and Class S, respectively.
14
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
COMMON STOCKS -- 95.7%
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Advertising and Marketing Services -- 3.3%
--------------------------------------------------------------------------
ACNielsen Corp.(1) 45,668 $ 1,004,696
Advo, Inc.(1) 670,000 28,140,000
Catalina Marketing Corp.(1) 20,000 2,040,000
Harte-Hanks Communications, Inc. 135,487 3,387,175
IMS Health, Inc. 498,012 8,964,216
Interpublic Group of Companies, Inc. 2,481,817 106,718,131
Lamar Advertising Co.(1) 500,000 21,656,250
Lamar Advertising Co.(1)(2)(3) 250,000 10,824,877
Omnicom Group, Inc. 3,110,732 277,049,569
Snyder Communications, Inc.(1) 482,500 11,459,375
TMP Worldwide, Inc.(1) 119,580 8,826,499
TMP Worldwide, Inc.(1)(2)(3) 34,846 2,570,882
True North Communications, Inc. 513,715 22,603,460
Valassis Communications, Inc.(1) 975,000 37,171,875
Ventiv Health, Inc.(1) 160,833 1,789,267
WPP Group PLC 488,000 7,129,241
Young and Rubicam, Inc. 186,000 10,636,875
--------------------------------------------------------------------------
$ 561,972,388
--------------------------------------------------------------------------
Aerospace and Defense -- 0.3%
--------------------------------------------------------------------------
Boeing Company (The) 548,044 $ 22,915,090
Honeywell International, Inc. 749,525 25,249,623
Raytheon Co., Class B 213,564 4,111,107
Teledyne Technologies, Inc.(1) 6,117 102,460
--------------------------------------------------------------------------
$ 52,378,280
--------------------------------------------------------------------------
Apparel and Textiles -- 0.0%
--------------------------------------------------------------------------
Shaw Industries, Inc.(2)(3) 325,000 $ 4,062,161
Unifi, Inc.(1) 50,000 618,750
--------------------------------------------------------------------------
$ 4,680,911
--------------------------------------------------------------------------
Auto and Parts -- 0.2%
--------------------------------------------------------------------------
Aftermarket Technology Corp.(1) 46,000 $ 391,000
Borg-Warner Automotive, Inc. 230,270 8,088,234
DaimlerChrysler 19,952 1,038,751
Dana Corp. 46,137 977,528
Delphi Automotive Systems 6,128 89,239
Ford Motor Co. 112,558 4,839,994
General Motors Corp. 13,596 789,418
Genuine Parts Co. 147,059 2,941,180
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Auto and Parts (continued)
--------------------------------------------------------------------------
Harley-Davidson, Inc. 42,000 $ 1,617,000
Honda Motor Co. Ltd. ADR 5,000 343,750
Meritor Automotive, Inc. 71,799 789,789
SPX Corp.(1) 47,862 5,788,311
TRW, Inc. 2,000 86,750
Visteon Corp.(1) 14,738 178,693
--------------------------------------------------------------------------
$ 27,959,637
--------------------------------------------------------------------------
Banks - Money Center -- 0.2%
--------------------------------------------------------------------------
Bank of Montreal 103,831 $ 4,432,286
Chase Manhattan Corp. 459,027 21,143,931
Morgan (J.P.) & Co., Inc. 18,780 2,068,148
Royal Bank of Scotland Group PLC 50,837 851,199
--------------------------------------------------------------------------
$ 28,495,564
--------------------------------------------------------------------------
Banks - Regional -- 4.3%
--------------------------------------------------------------------------
AmSouth Bancorporation 607,046 $ 9,560,975
Associated Banc-Corp. 624,922 13,631,111
Bank of America Corp. 1,156,598 49,733,714
Bank of Granite Corp. 22,500 514,687
Bank of New York Co., Inc. (The) 294,848 13,710,432
Bank One Corp. 1,202,297 31,936,014
Bank One Corp.(2)(3) 51,299 1,362,516
Bank United Corp. 102,072 3,591,659
Banknorth Group, Inc. 55,720 853,212
BB&T Corp. 295,728 7,060,506
City National Corp. 130,000 4,517,500
Colonial Bancgroup, Inc. (The) 396,090 3,564,810
Comerica, Inc. 155,041 6,957,465
Commerce Bancshares, Inc. 70,356 2,093,091
Community First Bancshares, Inc. 418,000 6,818,625
Compass Bancshares, Inc. 306,668 5,232,523
Fifth Third Bancorp 244,512 15,465,384
First Citizens BancShares, Inc. 65,900 3,921,050
First Financial Bancorp. 53,044 1,044,304
First Midwest Bancorp, Inc. 225,352 5,239,434
First Security Corp. 39,200 531,650
First Tennessee National Corp. 33,488 554,645
First Union Corp. 1,037,405 25,740,612
Firstar Corp. 1,585,530 33,395,226
FleetBoston Financial Corp. 2,803,773 95,328,282
Golden West Financial Corp. 21,000 857,062
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Banks - Regional (continued)
--------------------------------------------------------------------------
Keycorp 500,764 $ 8,825,966
M&T Bank Corp. 2,000 900,000
Marshall and Ilsley Corp. 50,410 2,092,015
Mellon Financial Corp. 206,912 7,539,356
National Bancorp of Alaska, Inc. 265,000 9,506,875
National City Corp. 444,035 7,576,347
National Commerce Bancorporation 252,894 4,062,110
National Commerce Bancorporation(2)(3) 670,000 10,760,978
National Commerce Bancorporation(2)(3) 150,000 2,407,869
Northern Trust Corp. 1,363,796 88,731,977
Old Kent Financial Corp. 108,975 2,915,089
PNC Bank Corp. 141,615 6,638,203
Popular, Inc. 716 13,649
Regions Financial Corp. 1,258,160 25,005,930
S&T Bancorp, Inc. 100,000 1,825,000
SouthTrust Corp. 76,101 1,721,785
Southwest Bancorporation of Texas,
Inc.(1) 7,688 159,526
Sovereign Bancorporation, Inc. 442,584 3,111,941
State Street Corp. 64,000 6,788,000
Summit Bancorp. 172,521 4,248,330
SunTrust Banks, Inc. 175,689 8,026,791
Synovus Financial 891,564 15,713,816
U.S. Bancorp. 402,920 7,756,210
Union Planters Corp. 87,070 2,432,518
Valley National Bancorp. 305,241 7,421,172
Wachovia Corp. 109,714 5,951,984
Washington Mutual, Inc. 163,506 4,721,236
Wells Fargo & Co. 3,374,981 130,780,514
Westamerica Bancorporation 266,506 6,962,469
Whitney Holding Corp. 228,901 7,825,553
Whitney Holding Corp.(2)(3) 30,011 1,025,591
Zions Bancorporation 20,000 917,812
--------------------------------------------------------------------------
$ 737,583,101
--------------------------------------------------------------------------
Beverages -- 1.8%
--------------------------------------------------------------------------
Anheuser-Busch Cos., Inc. 964,418 $ 72,029,969
Coca-Cola Company (The) 1,704,561 97,905,723
Coca-Cola Enterprises, Inc. 264,724 4,318,310
Panamerican Beverages, Inc., Class A 80,000 1,195,000
PepsiCo, Inc. 2,824,643 125,520,073
--------------------------------------------------------------------------
$ 300,969,075
--------------------------------------------------------------------------
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Broadcasting and Cable -- 1.2%
--------------------------------------------------------------------------
AMFM, Inc.(1) 200,000 $ 13,800,000
AT&T Corp. - Liberty Media Group(1) 1,183,182 28,692,163
AT&T Corp. - Liberty Media Group, Class
B(1) 32,876 1,068,470
Clear Channel Communications, Inc.(1) 307,378 23,053,350
Clear Channel Communications,
Inc.(1)(2)(3) 10,000 749,700
Comcast Corp., Class A(1) 625,000 25,312,500
Cox Communications, Inc., Class A(1) 608,036 27,703,640
Gaylord Entertainment Co. 353,332 7,596,638
General Motors Corp., Class H(1) 391,754 34,376,413
Infinity Broadcasting Corp.(1) 34,500 1,257,094
Univision Communications, Inc.(1) 366,262 37,908,117
Westwood One, Inc.(1) 122,400 4,176,900
--------------------------------------------------------------------------
$ 205,694,985
--------------------------------------------------------------------------
Building Materials and Tools -- 0.3%
--------------------------------------------------------------------------
American Standard Companies, Inc.(1) 172,899 $ 7,088,859
CRH PLC 262,701 4,772,042
Interface, Inc. 434,412 1,656,196
Masco Corp. 253,662 4,581,770
Sherwin-Williams Co. (The) 80,069 1,696,462
Snap-On, Inc. 71,795 1,911,542
Valspar Corp. 620,000 20,925,000
Vulcan Materials Co. 26,500 1,131,219
--------------------------------------------------------------------------
$ 43,763,090
--------------------------------------------------------------------------
Business Services - Miscellaneous -- 0.5%
--------------------------------------------------------------------------
Century Business Services, Inc.(1) 400,000 $ 775,000
Cintas Corp. 1,103,661 40,490,563
Concord EFS, Inc.(1) 213,905 5,561,530
Fair, Issac and Co., Inc. 238,828 10,508,432
Gartner Group, Inc.(1) 3,000 36,000
Gartner Group, Inc., Class B(1) 64,841 640,305
Half (Robert) International, Inc.(1) 3,600 102,600
Interim Services, Inc.(1) 90,000 1,597,500
Manpower, Inc. 110,000 3,520,000
Navigant Consulting, Inc.(1) 496,795 2,111,379
Navigant International, Inc.(1) 59,630 573,939
ServiceMaster Co. 695,430 7,910,516
Staff Leasing, Inc.(1) 156,250 556,641
Sylvan Learning Systems, Inc.(1) 815,396 11,211,695
United Rentals, Inc.(1) 92,099 1,577,195
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Business Services - Miscellaneous (continued)
--------------------------------------------------------------------------
Viad Corp. 40,314 $ 1,098,556
--------------------------------------------------------------------------
$ 88,271,851
--------------------------------------------------------------------------
Chemicals -- 0.4%
--------------------------------------------------------------------------
Ashland, Inc. 106,674 $ 3,740,257
Bayer AG ADR 40,000 1,564,416
Dow Chemical Co. (The) 136,155 4,110,179
DuPont (E.I.) de Nemours & Co. 1,244,115 54,430,031
Eastman Chemical Co. 148 7,067
Octel Corp.(1) 3,322 25,953
Solutia, Inc. 99,629 1,369,899
--------------------------------------------------------------------------
$ 65,247,802
--------------------------------------------------------------------------
Communications Equipment -- 4.7%
--------------------------------------------------------------------------
3Com Corp.(1) 874,461 $ 50,390,815
ADC Telecommunications, Inc.(1) 442,121 37,082,911
Advanced Fibre Communication, Inc.(1) 15,000 679,687
Alcatel S.A. ADR 43,728 2,907,912
CIENA Corp.(1) 351,013 58,509,479
Comverse Technology, Inc.(1) 325,350 30,257,550
Comverse Technology, Inc.(1)(2)(3) 61,028 5,674,280
Corning, Inc. 342,017 92,301,838
JDS Uniphase Corp.(1) 266,080 31,896,340
Lucent Technologies, Inc. 814,303 48,247,453
Lucent Technologies, Inc.(2)(3) 300,000 17,771,265
Motorola, Inc. 1,707,270 49,617,534
Nokia Corp., Class A, ADR 4,135,270 206,505,046
Nortel Networks Corp. 1,330,280 90,791,610
Qualcomm, Inc.(1) 182,112 10,926,720
Qualcomm, Inc.(1)(2)(3) 162,000 9,719,190
Salient 3 Communications, Inc., Class
A(1) 78,125 942,383
Telefonaktiebolaget LM Ericsson, Class B
(ADR) 1,816,000 36,320,000
Tellabs, Inc.(1) 314,454 21,520,446
--------------------------------------------------------------------------
$ 802,062,459
--------------------------------------------------------------------------
Communications Services -- 4.8%
--------------------------------------------------------------------------
Alltel Corp. 1,649,309 $ 102,154,076
Alltel Corp.(2)(3) 96,978 6,002,967
Alltel Corp.(2)(3) 71,804 4,445,436
Alltel Corp.(2)(3) 30,000 1,857,267
American Tower Corp., Class A(1) 149,451 6,230,239
AT&T Corp. 1,784,415 56,432,139
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Communications Services (continued)
--------------------------------------------------------------------------
Bell Atlantic Corp. 72,330 $ 3,675,268
BellSouth Corp. 220,723 9,408,318
Broadwing, Inc. 1,064,587 27,612,725
CapRock Communications Corp.(1)(2)(3) 207,590 4,046,386
Citizens Communications Co.(1) 45,311 781,615
Global Crossing Ltd.(1) 124,289 3,270,354
GTE Corp. 1,853,801 115,399,112
Intermedia Communications, Inc.(1) 153,275 4,559,931
ITC Deltacom, Inc.(1) 679,189 15,154,405
ITC Deltacom, Inc.(1)(2)(3) 438,852 9,791,069
McLeodUSA, Inc.(1) 1,151,754 23,826,911
McLeodUSA, Inc.(1)(2)(3) 180,000 3,723,440
McLeodUSA, Inc.(1)(2)(3) 1,788,114 36,960,787
McLeodUSA, Inc.(1)(2)(3) 150,000 3,091,488
Nextel Communications, Inc., Class A(1) 221,782 13,570,286
NTL, Inc.(1) 400,391 23,973,389
PTEK Holdings, Inc.(1) 28,000 91,000
RSL Communications Ltd., Class
A(1)(2)(3) 247,161 2,826,668
RSL Communications Ltd., Class
A(1)(2)(3) 500,000 5,715,176
SBC Communications, Inc. 1,342,704 58,071,948
Sprint Corp. 1,415,630 72,197,130
Sprint Corp.- PCS Group(1) 15,754 937,363
Talk.com, Inc.(1) 247,376 1,437,873
Telecom Corp. of New Zealand Ltd. ADR 8,000 225,000
Teleglobe, Inc.(1) 88,500 1,864,031
Telephone & Data Systems, Inc. 131,756 13,208,539
US West, Inc. 35,969 3,084,342
Viocestream Wireless
Corporation(1)(2)(3) 395,175 45,354,424
Vodafone AirTouch PLC ADR 58,345 2,417,671
Winstar Communications, Inc.(1) 17,136 580,482
WorldCom, Inc.(1) 2,929,572 134,394,116
--------------------------------------------------------------------------
$ 818,373,371
--------------------------------------------------------------------------
Computer Software -- 4.9%
--------------------------------------------------------------------------
Adobe Systems, Inc. 114,368 $ 14,867,840
Baan Co., NV ADR(1) 194,350 510,169
BMC Software, Inc.(1) 35,000 1,276,954
Cadence Design Systems, Inc.(1) 956,000 19,478,500
Cognos, Inc.(1) 77,000 3,185,875
Computer Associates International, Inc. 604,895 30,963,063
Compuware Corp.(1) 2,800 29,050
CSG Systems International, Inc.(1) 41,116 2,305,066
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Computer Software (continued)
--------------------------------------------------------------------------
Edwards (J.D.) & Co.(1) 592,758 $ 8,928,417
Edwards (J.D.) & Co.(1)(2)(3) 299,086 4,503,181
HNC Software, Inc.(1) 477,794 29,503,779
I2 Technologies, Inc.(1) 181,590 18,933,590
Intuit, Inc.(1) 1,157,751 47,901,948
Microsoft Corp.(1) 2,477,880 198,230,400
Oracle Corp.(1) 2,093,722 176,003,506
Parametric Technology Corp.(1) 94,600 1,040,600
PeopleSoft, Inc.(1) 395,770 6,629,147
Sapient Corp.(1) 1,024,914 109,601,741
Siebel Systems, Inc.(1) 834,314 136,462,484
Siebel Systems, Inc.(1)(2)(3) 30,000 4,904,912
Structural Dynamics Research Corp.(1) 55,882 841,723
Wind River Systems, Inc.(1) 179,235 6,788,526
--------------------------------------------------------------------------
$ 822,890,471
--------------------------------------------------------------------------
Computers and Business Equipment -- 7.9%
--------------------------------------------------------------------------
Cabletron Systems, Inc.(1) 89,660 $ 2,263,915
Cisco Systems, Inc.(1) 5,642,956 358,680,386
Compaq Computer Corp. 74,841 1,913,123
Dell Computer Corp.(1) 3,315,139 163,477,792
Dell Computer Corp.(1)(2)(3) 202,519 9,983,722
EMC Corp.(1) 426,118 32,784,454
Gateway, Inc.(1) 1,050,000 59,587,500
Hewlett-Packard Co. 567,711 70,892,911
IDX Systems Corp.(1) 60,000 847,500
International Business Machines Corp. 1,168,287 128,000,444
Jabil Circuit, Inc.(1)(2)(3) 45,958 2,280,476
Jabil Circuit, Inc.(1)(2)(3) 2,082,013 103,215,714
Lexmark International Group, Inc.(1) 4,036,940 271,484,215
Network Appliance, Inc.(1) 488,000 39,284,000
Pitney Bowes, Inc. 67,682 2,707,280
Seagate Technology, Inc.(1) 210,712 11,589,160
Solectron Corp.(1) 202,820 8,493,087
Solectron Corp.(1)(2)(3) 500,000 20,916,388
Sun Microsystems, Inc.(1) 251,715 22,890,333
Sun Microsystems, Inc.(1)(2)(3) 23,745 2,157,405
Xerox Corp. 1,490,142 30,920,446
Zebra Technologies Corp.(1) 6,000 265,875
--------------------------------------------------------------------------
$ 1,344,636,126
--------------------------------------------------------------------------
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Conglomerates -- 1.9%
--------------------------------------------------------------------------
General Electric Co. 4,703,558 $ 249,288,574
Tyco International Ltd. 1,166,995 55,286,388
United Technologies Corp. 291,354 17,153,467
--------------------------------------------------------------------------
$ 321,728,429
--------------------------------------------------------------------------
Consumer Services -- 0.2%
--------------------------------------------------------------------------
Block (H&R), Inc. 982,877 $ 31,820,643
Cendant Corp.(1) 187,999 2,631,986
Service Corp. International 145,389 463,427
Stewart Enterprises, Inc. 153,992 543,792
--------------------------------------------------------------------------
$ 35,459,848
--------------------------------------------------------------------------
Containers and Packaging -- 0.2%
--------------------------------------------------------------------------
Sealed Air Corp.(1) 465,750 $ 24,393,656
Sonoco Products Co. 122,135 2,511,401
--------------------------------------------------------------------------
$ 26,905,057
--------------------------------------------------------------------------
Distribution Services -- 0.9%
--------------------------------------------------------------------------
Airgas, Inc.(1) 536,219 $ 3,049,746
Arrow Electronics, Inc.(1) 8,750 271,250
Cardinal Health, Inc. 550,151 40,711,174
McKesson HBOC, Inc. 96,692 2,024,489
MSC Industrial Direct Co.(1) 5,000 104,687
School Specialty, Inc.(1) 66,255 1,229,858
Sysco Corp. 2,369,722 99,824,539
Sysco Corp.(2)(3) 49,514 2,083,674
--------------------------------------------------------------------------
$ 149,299,417
--------------------------------------------------------------------------
Drugs -- 8.7%
--------------------------------------------------------------------------
Abbott Laboratories 3,348,164 $ 149,202,558
Allergan, Inc. 18,340 1,366,330
American Home Products Corp. 581,849 34,183,629
Amgen, Inc.(1) 2,168,715 152,352,229
Andrx Corporation(1) 93,750 5,992,678
AstraZeneca PLC ADR 80,720 3,753,480
Bristol-Myers Squibb Co. 1,158,622 67,489,731
Covance, Inc.(1) 81,250 716,016
Elan Corp., PLC ADR(1) 539,036 26,109,556
Genzyme Corp., Class A(1) 800,000 47,550,000
Gilead Sciences, Inc.(1) 34,043 2,421,308
Incyte Pharmaceuticals, Inc.(1) 575,737 47,318,385
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Drugs (continued)
--------------------------------------------------------------------------
Lilly (Eli) & Co. 1,061,145 $ 105,981,857
Merck & Co., Inc. 1,419,676 108,782,674
Novo Nordisk ADR 116,911 9,878,979
Parexel International Corp.(1) 35,000 334,687
Pfizer, Inc. 6,350,885 304,842,456
Pharmacia Corp. 2,467,755 127,552,087
Quintiles Transnational Corp.(1) 440,772 6,225,904
Schering-Plough Corp. 901,548 45,528,174
Schering-Plough Corp.(2)(3) 126,720 6,398,827
Sepracor, Inc.(1) 884,000 106,632,500
SmithKline Beecham PLC ADR 564,888 36,823,637
Teva Pharmaceutical Industries Ltd. 300,000 16,631,250
Vertex Pharmaceuticals, Inc.(1) 35,000 3,688,125
Watson Pharmaceuticals, Inc.(1) 981,781 52,770,729
--------------------------------------------------------------------------
$ 1,470,527,786
--------------------------------------------------------------------------
Electric Power -- 0.1%
--------------------------------------------------------------------------
AES Corp.(1) 223,084 $ 10,178,207
Ameren Corp. 5,000 168,750
American Electric Power, Inc. 960 28,440
Dominion Resources, Inc. 28,938 1,240,717
Duke Energy Corp. 1,800 101,475
P G & E Corp. 47,705 1,174,736
Teco Energy, Inc. 40,000 802,500
TXU Corp. 250,196 7,380,782
Wisconsin Energy Corp. 9,576 189,724
--------------------------------------------------------------------------
$ 21,265,331
--------------------------------------------------------------------------
Electrical Equipment -- 0.3%
--------------------------------------------------------------------------
American Power Conversion Corp.(1) 400,000 $ 16,325,000
Baldor Electric Co. 149,060 2,776,243
Emerson Electric Co. 337,467 20,374,570
Molex, Inc., Class A 112,582 3,940,370
Rockwell International Corp. 203,032 6,395,508
Thomas and Betts Corp. 110,263 2,108,780
--------------------------------------------------------------------------
$ 51,920,471
--------------------------------------------------------------------------
Electronics - Instruments -- 0.4%
--------------------------------------------------------------------------
Agilent Technologies, Inc.(1) 216,524 $ 15,968,645
Dionex Corp.(1) 362,140 9,687,245
National Instruments Corp.(1)(2)(3) 466,603 20,353,860
PerkinElmer, Inc. 100,000 6,612,500
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Electronics - Instruments (continued)
--------------------------------------------------------------------------
Waters Corp.(1) 99,160 $ 12,376,407
X-Rite, Inc. 428,000 3,905,500
--------------------------------------------------------------------------
$ 68,904,157
--------------------------------------------------------------------------
Electronics - Semiconductors and Related -- 5.9%
--------------------------------------------------------------------------
Altera Corp.(1) 40,258 $ 4,103,800
Analog Devices, Inc.(1) 3,108,928 236,278,528
Applied Materials, Inc.(1) 12,000 1,087,500
Applied Materials, Inc.(1)(2)(3) 56,212 5,092,175
Broadcom Corp., Class A(1)(2)(3) 234,000 51,216,006
Burr-Brown Corp.(1) 900,000 78,018,750
Conexant Systems(1) 317,574 15,442,036
Cypress Semiconductor Corporation(1) 87,500 3,696,875
Intel Corp. 2,803,247 374,759,083
KLA-Tencor Corp.(1) 101,498 5,943,977
Lam Research Corp.(1) 318,000 11,925,000
Linear Technologies Corp. 264,000 16,879,500
Maxim Integrated Products Co.(1) 194,351 13,203,721
Maxim Integrated Products Co.(1)(2)(3) 80,000 5,433,641
National Semiconductor Corp.(1) 79,368 4,504,134
Plexus Corp.(1) 38,113 4,306,769
Sanmina Corp.(1) 445,720 38,109,060
Sanmina Corp.(1)(2)(3) 261,218 22,325,205
SpeedFam-IPEC, Inc.(1) 221,000 4,019,437
Teradyne, Inc.(1) 25,400 1,866,900
Texas Instruments, Inc. 1,450,854 99,655,534
Ultratech Stepper, Inc.(1) 245,129 3,646,294
Xilinx, Inc.(1) 62,685 5,175,430
--------------------------------------------------------------------------
$ 1,006,689,355
--------------------------------------------------------------------------
Engineering and Construction -- 0.1%
--------------------------------------------------------------------------
Dycom Industries(1) 75,000 $ 3,450,000
Jacobs Engineering Group, Inc.(1) 162,455 5,310,248
--------------------------------------------------------------------------
$ 8,760,248
--------------------------------------------------------------------------
Entertainment -- 1.3%
--------------------------------------------------------------------------
Callaway Golf Co. 35,715 $ 582,601
Disney (Walt) Co. 1,574,195 61,098,443
Fox Entertainment Group, Inc.(1) 275,500 8,368,312
Mattel, Inc. 22,091 291,325
MGM Grand, Inc. 219,445 7,049,671
Seagram Company Ltd. (The) 10,000 580,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Entertainment (continued)
--------------------------------------------------------------------------
Time Warner Inc. 1,310,539 $ 99,600,964
Viacom, Inc., Class A(1) 21,774 1,488,797
Viacom, Inc., Class B(1) 590,037 40,233,148
--------------------------------------------------------------------------
$ 219,293,261
--------------------------------------------------------------------------
Environmental Services -- 0.2%
--------------------------------------------------------------------------
Allied Waste Industries, Inc.(1) 1,075,000 $ 10,750,000
Waste Management, Inc. 1,402,239 26,642,541
--------------------------------------------------------------------------
$ 37,392,541
--------------------------------------------------------------------------
Financial Services - Miscellaneous -- 2.6%
--------------------------------------------------------------------------
American Express Co. 1,925,286 $ 100,355,533
Associates First Capital Corp. 593,830 13,249,832
Capital One Financial Corp. 515,175 22,989,684
Citigroup 2,517,256 151,664,674
Enhance Financial Service Group Inc. 70,000 1,006,250
Fannie Mae 947,040 49,423,650
Finova Group, Inc. 175,587 2,282,631
FirstPlus Financial Group, Inc.(1) 120,000 32,700
Freddie Mac 364,900 14,778,450
GreenPoint Financial Corp. 100,000 1,875,000
Household International, Inc. 1,147,679 47,700,408
ING Groep NV ADR 104,200 7,033,500
MGIC Investment Corp. 80,000 3,640,000
Providian Financial Corp. 370,378 33,334,020
--------------------------------------------------------------------------
$ 449,366,332
--------------------------------------------------------------------------
Foods -- 1.4%
--------------------------------------------------------------------------
Archer-Daniels-Midland Co. 385,946 $ 3,787,095
Bestfoods 19,370 1,341,372
Campbell Soup Co. 336 9,786
Conagra, Inc. 705,229 13,443,428
Dean Foods Co. 150,944 4,783,038
Flowers Industries, Inc. 708,601 14,127,732
General Mills, Inc. 124,508 4,762,431
Heinz (H.J.) Co. 179,240 7,841,750
Hershey Foods Corp. 1,214,931 58,924,153
Keebler Food Products Co. 121,798 4,521,751
Keebler Food Products Co.(2)(3) 28,300 1,049,578
Kellogg Co. 97,974 2,914,726
McCormick & Co., Inc. 458,058 14,886,885
Nabisco Holdings Corp., Class A 100,000 5,250,000
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Foods (continued)
--------------------------------------------------------------------------
Quaker Oats Co. (The) 110,329 $ 8,288,466
Ralston Purina Group 277,878 5,540,193
Riviana Foods, Inc. 250,000 4,359,375
Sara Lee Corp. 1,571,388 30,347,431
Smithfield Foods, Inc.(1) 490,191 13,755,985
Tyson Food, Inc. 163,901 1,434,134
Unilever ADR 400,000 17,200,000
Wrigley (Wm.) Jr. Co. 171,469 13,749,670
--------------------------------------------------------------------------
$ 232,318,979
--------------------------------------------------------------------------
Furniture and Appliances -- 0.3%
--------------------------------------------------------------------------
HON Industries, Inc. 1,270,418 $ 29,854,823
Leggett & Platt, Inc. 644,128 10,628,112
Miller (Herman), Inc. 420,000 10,867,500
Steelcase, Inc., Class A 123,000 2,091,000
--------------------------------------------------------------------------
$ 53,441,435
--------------------------------------------------------------------------
Health Services -- 0.3%
--------------------------------------------------------------------------
Beverly Enterprises, Inc.(1) 357,143 $ 1,004,465
Caremark Rx, Inc.(1) 17,696 120,554
FPA Medical Management, Inc.(1)(2) 315,000 3,150
Health Management Associates, Inc.,
Class A(1) 1,161,170 15,167,783
HealthSouth Corp.(1) 122,699 881,899
LabOne, Inc. 53,940 303,412
Orthodontic Centers of America, Inc.(1) 100,000 2,262,500
Pacificare Health Systems, Inc., Class
A(1) 19,500 1,173,656
PhyCor, Inc.(1) 312,500 195,312
Quest Diagnostics, Inc.(1) 15,625 1,167,969
Quorum Health Group, Inc.(1) 6,893 71,084
Renal Care Group, Inc.(1) 371,507 9,084,498
Response Oncology, Inc.(1) 44,761 40,567
Sunrise Assisted Living, Inc.(1) 354,000 6,549,000
UnitedHealth Group, Inc. 52,286 4,483,524
--------------------------------------------------------------------------
$ 42,509,373
--------------------------------------------------------------------------
Household Products -- 2.9%
--------------------------------------------------------------------------
Avon Products, Inc. 34,700 $ 1,544,150
Blyth Industries, Inc. 874,000 25,783,000
Blyth Industries, Inc.(2)(3) 35,068 1,034,092
Clorox Co. 421,344 18,881,478
Colgate-Palmolive Co. 1,201,350 71,930,831
Energizer Holdings, Inc.(1) 92,626 1,690,424
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Household Products (continued)
--------------------------------------------------------------------------
Fortune Brands, Inc. 69,838 $ 1,610,639
Gillette Co. 4,638,557 162,059,585
Helen of Troy Ltd.(1) 20,000 111,876
Kimberly-Clark Corp. 1,116,940 64,084,433
Lauder (Estee) Companies Inc. 2,192,312 108,382,424
Newell Rubbermaid, Inc. 367,678 9,467,708
Procter & Gamble Co. 480,046 27,482,633
Water Pik Technologies, Inc.(1) 2,141 13,381
--------------------------------------------------------------------------
$ 494,076,654
--------------------------------------------------------------------------
Industrial Equipment -- 0.4%
--------------------------------------------------------------------------
Dover Corp. 419,712 $ 17,024,568
DT Industries, Inc.(1) 37,728 353,700
Federal Signal Corp. 283,471 4,677,271
Illinois Tool Works, Inc. 353,210 20,132,970
Johnson Controls 13,571 696,362
Nordson Corp. 50,000 2,531,250
Parker-Hannifin Corp. 150,898 5,168,257
PPG Industries, Inc. 13,680 606,195
Regal-Beloit Corp. 265,000 4,256,562
Tecumseh Products Co., Class A 156,420 5,973,289
Wabtec 250,000 2,593,750
--------------------------------------------------------------------------
$ 64,014,174
--------------------------------------------------------------------------
Information Services -- 3.8%
--------------------------------------------------------------------------
Acxiom Corp.(1) 929,019 $ 25,315,768
America Online, Inc.(1) 166,177 8,765,837
At Home Corp., Series A(1) 240,582 4,992,076
At Home Corp., Series A(2)(3) 171,895 3,563,493
Automatic Data Processing, Inc. 5,382,232 288,285,802
Bell and Howell Co.(1) 115,000 2,788,750
BISYS Group, Inc. (The)(1) 53,873 3,313,189
Ceridian Corp.(1) 181,000 4,355,312
Check Point Software Technology(1) 52,000 11,011,000
Circle.com(1) 120,625 444,805
Computer Sciences Corp.(1) 2,051,802 153,243,962
DST Systems, Inc.(1) 184,517 14,046,357
Dun and Bradstreet Corp. (The) 15,428 441,626
Electronic Data Systems Corp. 157,612 6,501,495
Equifax, Inc. 80,000 2,100,000
First Data Corp. 627,384 31,133,931
Keane, Inc.(1) 200,000 4,325,000
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Information Services (continued)
--------------------------------------------------------------------------
Lason, Inc.(1) 355,000 $ 887,500
NOVA Corp.(1) 104,965 2,932,460
Paychex, Inc. 206,946 8,691,732
Perot Systems Corp., Class A(1) 245,326 2,698,586
Reuters Holdings PLC ADR 275,331 27,515,892
Reynolds & Reynolds, Inc., Class A 451,043 8,231,535
RSA Security, Inc.(1) 40,000 2,770,000
SunGard Data Systems, Inc.(1) 948,797 29,412,707
--------------------------------------------------------------------------
$ 647,768,815
--------------------------------------------------------------------------
Insurance -- 6.1%
--------------------------------------------------------------------------
21st Century Insurance Group 70,700 $ 1,113,525
Aegon, NV ADR 2,653,610 94,534,856
Aetna, Inc. 60,189 3,863,381
Aflac Corp. 117,990 5,420,166
Allmerica Financial Corp. 1,500 78,562
Allstate Corp. (The) 40,426 899,478
American General Corp. 101,421 6,186,681
American International Group, Inc. 3,461,534 406,730,245
American International Group, Inc.(2)(3) 250,000 29,344,156
AON Corp. 619,100 19,230,794
Berkshire Hathaway, Inc.(1) 127 6,832,600
Berkshire Hathaway, Inc., Class B(1) 39,077 68,775,520
Chubb Corp. 101,050 6,214,575
Commerce Group, Inc. 120,000 3,540,000
Delphi Financial Group, Inc.(1) 6,448 218,829
Gallagher (A.J.) and Co. 261,250 10,972,500
Hartford Financial Services Group 304 17,005
HSB Group, Inc. 75,000 2,334,375
Jefferson-Pilot Corp. 80,726 4,555,974
Kansas City Life Insurance Co. 70,800 1,902,750
Marsh & McLennan Cos., Inc. 2,645,897 276,330,868
Mercury General Corp. 2,000 47,250
MetLife, Inc.(1) 1,885,000 39,702,812
Mutual Risk Management Ltd. 240,000 4,155,000
Progressive Corp. 181,111 13,402,214
Protective Life Corp. 43,381 1,155,019
Reliastar Financial Corp. 87,000 4,562,063
Safeco Corp. 25,332 503,474
St. Paul Cos., Inc. (The) 305,212 10,415,360
Torchmark Corp. 222,850 5,501,609
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Insurance (continued)
--------------------------------------------------------------------------
UICI(1) 160,854 $ 1,055,604
--------------------------------------------------------------------------
$ 1,029,597,245
--------------------------------------------------------------------------
Investment Services -- 3.1%
--------------------------------------------------------------------------
Dain Rauscher Corporation 34,784 $ 2,295,744
E*Trade Group, Inc.(1) 771,248 12,725,592
Federated Investors, Inc. 318,085 11,152,855
Federated Investors, Inc.(2)(3) 252,000 8,826,841
Federated Investors, Inc., Class B(2)(3) 267,880 9,389,725
Federated Investors, Inc., Class B(2)(3) 252,000 8,826,472
Franklin Resources, Inc. 1,146,081 34,812,210
Kansas City Southern Industries, Inc. 30,430 2,698,761
Merrill Lynch & Co., Inc. 1,217,161 139,973,515
Morgan Stanley Dean Witter & Co. 2,012,782 167,564,102
Morgan Stanley Dean Witter & Co.(2)(3) 1,038,654 86,460,740
Morgan Stanley Dean Witter & Co.(2)(3) 42,000 3,495,101
Nuveen (John) Co., Class A (The) 50,000 2,096,875
Price (T. Rowe) Associates, Inc. 139,176 5,914,980
Schwab (Charles) and Co., Inc. 881,250 29,632,031
Waddell & Reed Financial, Inc., Class A 19,020 624,094
Waddell & Reed Financial, Inc., Class B 81,862 2,379,114
--------------------------------------------------------------------------
$ 528,868,752
--------------------------------------------------------------------------
Lodging and Gaming -- 0.1%
--------------------------------------------------------------------------
Marriott International, Inc., Class A 87,206 $ 3,144,866
Royal Caribbean Cruises Ltd. 500,000 9,250,000
Wyndham International, Class A(1) 132,212 330,530
--------------------------------------------------------------------------
$ 12,725,396
--------------------------------------------------------------------------
Medical Products -- 3.7%
--------------------------------------------------------------------------
Bausch & Lomb, Inc. 145,054 $ 11,223,553
Baxter International, Inc. 1,478,572 103,962,094
Becton, Dickinson and Co. 36,245 1,039,778
Boston Scientific Corp.(1) 344,300 7,553,081
Boston Scientific Corp.(1)(2)(3) 137,500 3,016,155
Boston Scientific Corp.(1)(2)(3) 59,844 1,312,303
Dentsply International, Inc. 42,000 1,294,125
Edwards Lifesciences Corp.(1) 295,714 5,470,709
ESC Medical Systems Ltd.(1) 180,000 2,947,500
Genzyme Surgical Products(1) 143,208 1,423,130
Guidant Corp.(1) 453,816 22,463,892
Heartport, Inc.(1) 41,026 117,950
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Medical Products (continued)
--------------------------------------------------------------------------
Hillenbrand Industries, Inc. 647,898 $ 20,287,306
Johnson & Johnson Co. 2,382,744 242,742,045
Medtronic, Inc. 3,177,451 158,276,778
MiniMed, Inc.(1)(2)(3) 202,600 23,897,237
Schein (Henry), Corp.(1) 1,125,194 19,409,597
St. Jude Medical, Inc.(1) 42,144 1,933,356
Steris Corp.(1) 78,394 695,747
VISX, Inc.(1) 50,000 1,403,125
--------------------------------------------------------------------------
$ 630,469,461
--------------------------------------------------------------------------
Metals - Industrial -- 0.4%
--------------------------------------------------------------------------
Alcoa, Inc. 1,896,000 $ 54,984,000
Allegheny Technologies, Inc. 21,408 385,344
Nucor Corp. 221,462 7,349,770
Phelps Dodge Corp. 7,332 272,659
Steel Dynamics, Inc.(1) 291,800 2,644,438
Steel Dynamics, Inc.(1)(2)(3) 20,000 181,196
Worthington Industries 147,466 1,548,393
--------------------------------------------------------------------------
$ 67,365,800
--------------------------------------------------------------------------
Natural Gas Distribution -- 0.3%
--------------------------------------------------------------------------
Dynegy, Inc. 200,100 $ 13,669,331
Kinder Morgan, Inc. 1,230,000 42,511,875
National Fuel Gas Co. 2,000 97,500
--------------------------------------------------------------------------
$ 56,278,706
--------------------------------------------------------------------------
Oil and Gas - Equipment and Services -- 2.3%
--------------------------------------------------------------------------
Baker Hughes, Inc. 746,804 $ 23,897,728
Core Laboratories NV(1) 1,049,214 30,427,206
Grant Prideco, Inc.(1) 98,002 2,450,050
Grant Prideco, Inc.(1)(2)(3) 65,679 1,640,560
Halliburton Co. 2,957,050 139,535,797
Nabors Industries, Inc.(1)(2)(3) 150,000 6,227,829
Nabors Industries, Inc.(1)(2)(3) 400,000 16,618,350
National-Oilwell, Inc.(1) 398,417 13,097,959
National-Oilwell, Inc.(1)(2)(3) 115,645 3,801,449
National-Oilwell, Inc.(1)(2)(3) 127,137 4,178,717
Newpark Resources, Inc.(1) 110,000 1,038,125
Noble Drilling, Inc.(1) 170,000 7,001,875
Patterson Energy, Inc.(1) 200,000 5,700,000
Schlumberger Ltd. 1,498,775 111,846,084
Smith International, Inc.(1) 70,000 5,096,875
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Oil and Gas - Equipment and Services (continued)
--------------------------------------------------------------------------
Syntroleum Corp.(1) 2,735 $ 46,837
Transocean Sedco Forex, Inc. 237,456 12,689,055
Valero Energy Corp. 51,510 1,635,443
Weatherford International(1)(2)(3) 65,679 2,613,558
Weatherford International(1) 98,002 3,901,705
--------------------------------------------------------------------------
$ 393,445,202
--------------------------------------------------------------------------
Oil and Gas - Exploration and Production -- 1.0%
--------------------------------------------------------------------------
Anadarko Petroleum Corp. 2,554,000 $ 125,944,125
Apache Corp. 200,003 11,762,676
Burlington Resources, Inc. 428,629 16,395,059
El Paso Energy Corp. 176,306 8,980,587
Kerr - McGee Corp. 136,199 8,027,229
Newfield Exploration Co.(1)(2)(3) 60,000 2,346,033
Union Pacific Resources Group, Inc. 79,795 1,755,490
USX-Marathon Group 50,000 1,253,125
--------------------------------------------------------------------------
$ 176,464,324
--------------------------------------------------------------------------
Oil and Gas - Integrated -- 1.1%
--------------------------------------------------------------------------
BP Amoco PLC ADR 1,226,841 $ 69,393,194
Chevron Corp. 93,409 7,922,251
Exxon Mobil Corp. 1,063,012 83,446,442
Murphy Oil Corp. 29,700 1,765,294
Pennzoil-Quaker State Co. 74,457 898,138
Phillips Petroleum Co. 18,407 933,005
Royal Dutch Petroleum Co. 48,037 2,957,278
Texaco, Inc. 2,500 133,125
Tosco Corp. 614,619 17,401,400
--------------------------------------------------------------------------
$ 184,850,127
--------------------------------------------------------------------------
Paper and Forest Products -- 0.3%
--------------------------------------------------------------------------
Caraustar Industries, Inc. 264,862 $ 4,006,038
Fort James Corp. 56,401 1,304,273
Georgia-Pacific Corp. - G-P Group 647,827 17,005,459
Georgia-Pacific Corp. - Timber Group 305,098 6,597,744
International Paper Co. 159,442 4,753,365
Louisiana Pacific Corp. 70,750 769,406
Mead Corporation (The) 38,768 978,892
Temple Inland, Inc. 12,632 530,544
Weyerhaeuser Co. 119,608 5,143,144
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Paper and Forest Products (continued)
--------------------------------------------------------------------------
Willamette Industries, Inc. 151,412 $ 4,125,977
--------------------------------------------------------------------------
$ 45,214,842
--------------------------------------------------------------------------
Photography -- 0.0%
--------------------------------------------------------------------------
Eastman Kodak Co. 122,529 $ 7,290,476
--------------------------------------------------------------------------
$ 7,290,476
--------------------------------------------------------------------------
Printing and Business Products -- 0.7%
--------------------------------------------------------------------------
Avery Dennison Corp. 1,501,504 $ 100,788,456
Banta Corp. 42,341 801,833
Bowne & Co., Inc. 172,640 1,737,190
Consolidated Graphics, Inc.(1) 70,215 658,266
Day Runner, Inc.(1) 1,600 1,800
Deluxe Corp. 80,675 1,900,905
Donnelley (R.R.) & Sons Co. 85,277 1,924,062
Harland (John H.) Co. 51,540 769,879
Ikon Office Solutions, Inc. 166,094 643,614
Workflow Management, Inc.(1) 79,507 944,146
--------------------------------------------------------------------------
$ 110,170,151
--------------------------------------------------------------------------
Publishing -- 1.3%
--------------------------------------------------------------------------
Belo (A.H.) Corp. 542,924 $ 9,399,372
Dow Jones & Co., Inc. 376,300 27,563,975
Gannett Co., Inc. 497,800 29,774,663
Houghton Mifflin Co. 97,400 4,547,363
McGraw-Hill Companies, Inc. (The) 2,379,380 128,486,520
Meredith Corp. 190,000 6,412,500
New York Times Co. (The), Class A 313,055 12,365,673
The MacClatchy Co., Class A 48,066 1,592,186
Tribune Co. 26,200 917,000
Washington Post Co. (The), Class B 3,600 1,720,800
--------------------------------------------------------------------------
$ 222,780,052
--------------------------------------------------------------------------
Real Estate -- 0.1%
--------------------------------------------------------------------------
Avalonbay Communities, Inc. 55,000 $ 2,296,250
Catellus Development Corp.(1) 415,722 6,235,830
Equity Office Properties Trust 2,812 77,506
Jones Lang Lasalle, Inc.(1) 213,193 2,851,456
Rouse Co. (The) 127,700 3,160,575
Trammell Crow Co.(1) 876,098 9,418,054
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Real Estate (continued)
--------------------------------------------------------------------------
Ventas, Inc.(1) 25,600 $ 81,600
--------------------------------------------------------------------------
$ 24,121,271
--------------------------------------------------------------------------
Restaurants -- 0.9%
--------------------------------------------------------------------------
Boston Chicken, Inc.(1)(2) 38,500 $ 385
Brinker International, Inc.(1) 435,034 12,724,745
CBRL Group, Inc. 62,047 911,315
CKE Restaurants, Inc. 126,522 379,566
Evans (Bob) Farms, Inc. 48,193 719,883
Jack in the Box, Inc.(1) 500,000 12,312,500
Lone Star Steakhouse and Saloon, Inc.(1) 345,981 3,503,058
McDonald's Corp. 1,470,592 48,437,624
Outback Steakhouse, Inc.(1) 685,923 20,063,248
Outback Steakhouse, Inc.(1)(2)(3) 600,000 17,532,300
Papa John's International, Inc.(1) 125,200 3,067,400
Papa John's International, Inc.(1)(2)(3) 23,000 563,453
Papa John's International, Inc.(1)(2)(3) 49,046 1,201,146
Sonic Corp.(1) 47,338 1,390,554
Starbucks Corp.(1) 684,000 26,120,250
Tricon Global Restaurants, Inc.(1) 219,121 6,190,168
--------------------------------------------------------------------------
$ 155,117,595
--------------------------------------------------------------------------
Retail - Food and Drug -- 1.7%
--------------------------------------------------------------------------
Albertson's, Inc. 1,220,341 $ 40,576,338
CVS Corp. 1,831,571 73,262,840
Hannaford Brothers Co. 96,349 6,925,084
Kroger Co. (The)(1) 52,440 1,156,958
Safeway, Inc.(1) 3,377,233 152,397,639
Walgreen Co. 127,500 4,103,906
Winn-Dixie Stores, Inc. 727,722 10,415,521
--------------------------------------------------------------------------
$ 288,838,286
--------------------------------------------------------------------------
Retail - General -- 1.7%
--------------------------------------------------------------------------
99 Cents Only Stores(1) 571,116 $ 22,773,251
Casey's General Stores, Inc. 75,000 778,125
Costco Wholesale Corporation(1) 20,435 674,355
Department 56, Inc.(1) 255,162 2,806,782
Dollar General Corp. 249,983 4,874,669
Dollar Tree Stores, Inc.(1) 1,386,315 54,846,087
Dollar Tree Stores, Inc.(1)(2)(3) 131,941 5,218,350
Family Dollar Stores 1,353,705 26,481,854
Family Dollar Stores(2)(3) 1,259,373 24,630,325
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Retail - General (continued)
--------------------------------------------------------------------------
May Department Stores Co. (The) 562,886 $ 13,509,264
Nordstrom, Inc. 65,692 1,584,820
Penney (J.C.) Company, Inc. 1,037,388 19,126,841
Sears Roebuck & Co. 15,750 513,844
Wal-Mart Stores, Inc. 1,899,755 109,473,382
--------------------------------------------------------------------------
$ 287,291,949
--------------------------------------------------------------------------
Retail - Specialty and Apparel -- 2.5%
--------------------------------------------------------------------------
Abercrombie and Fitch Co., Class A(1) 5,604 $ 68,299
AutoNation, Inc.(1) 5,518,303 38,973,015
Burlington Coat Factory Warehouse Corp. 628,228 6,792,715
Circuit City Stores-Circuit City Group 16,000 531,000
Circuit City Stores-Circuit City
Group(2)(3) 200,000 6,634,845
Gap, Inc. (The) 2,241,776 70,055,500
Harcourt General, Inc. 216,416 11,767,620
Home Depot, Inc. (The) 3,904,168 194,964,390
Intimate Brands, Inc.(1)(2)(3) 53,000 1,046,331
Limited, Inc. (The) 616,050 13,322,081
Lowe's Companies 60,000 2,463,750
Neiman Marcus Group, Inc. (The), Class
B(1) 65,206 1,809,467
Office Depot, Inc.(1) 303,219 1,895,119
OfficeMax, Inc.(1) 912,117 4,560,585
Payless Shoesource, Inc.(1) 7,700 394,625
Pep Boys - Manny, Moe & Jack (The) 97,976 587,856
Pier 1 Imports, Inc. 350,000 3,412,500
RadioShack Corporation 443,401 21,006,122
Staples, Inc.(1) 1,050,000 16,143,750
Tiffany and Co. 44,000 2,970,000
TJX Companies, Inc. (The) 1,000,000 18,750,000
Too, Inc.(1) 39,087 994,276
--------------------------------------------------------------------------
$ 419,143,846
--------------------------------------------------------------------------
Specialty Chemicals and Materials -- 0.7%
--------------------------------------------------------------------------
Arch Chemicals, Inc. 4,950 $ 108,281
Dexter Corp. (The) 36,139 1,734,672
Ecolab, Inc. 2,023,981 79,061,758
International Flavors & Fragrances, Inc. 148,101 4,470,799
MacDermid, Inc. 61,937 1,455,520
Millipore Corp. 101,440 7,646,040
Minnesota Mining & Manufacturing Co. 114,851 9,475,208
Olin Corp. 9,900 163,350
Pall Corp. 216,000 3,996,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Specialty Chemicals and Materials (continued)
--------------------------------------------------------------------------
RPM, Inc. 470,138 $ 4,760,147
Sigma Aldrich Corp. 195,000 5,703,750
--------------------------------------------------------------------------
$ 118,575,525
--------------------------------------------------------------------------
Tobacco -- 0.1%
--------------------------------------------------------------------------
Philip Morris Co., Inc. 481,024 $ 12,777,200
--------------------------------------------------------------------------
$ 12,777,200
--------------------------------------------------------------------------
Transportation -- 0.9%
--------------------------------------------------------------------------
Arnold Industries, Inc. 148,543 $ 1,791,800
Burlington Northern Santa Fe Corp. 214,916 4,929,636
CSX Corp. 36,496 773,259
FedEx Corp.(1) 1,995,106 75,814,028
Florida East Coast Industries, Inc. 122,888 4,915,520
Heartland Express, Inc.(1) 250,000 4,171,875
Norfolk Southern Corp. 390 5,801
Robinson (C.H.) Worldwide, Inc. 87,672 4,339,764
Robinson (C.H.) Worldwide, Inc.(2)(3) 121,000 5,987,104
Robinson (C.H.) Worldwide, Inc.(2)(3) 160,000 7,912,014
Union Pacific Corp. 92,081 3,424,262
United Parcel Service, Inc., Class B 760,760 44,884,840
--------------------------------------------------------------------------
$ 158,949,903
--------------------------------------------------------------------------
Trucks and Parts -- 0.0%
--------------------------------------------------------------------------
Paccar, Inc. 12,894 $ 511,731
--------------------------------------------------------------------------
$ 511,731
--------------------------------------------------------------------------
Total Common Stocks
(identified cost $11,309,824,206) $16,237,468,614
--------------------------------------------------------------------------
</TABLE>
PUT OPTIONS PURCHASED -- 0.0%
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Computers and Business Equipment -- 0.0%
--------------------------------------------------------------------------
Cisco Systems, Expires 10/21/00, Strike
Price 70 360,000 $ 4,005,000
--------------------------------------------------------------------------
$ 4,005,000
--------------------------------------------------------------------------
Total Put Options Purchased
(identified cost $2,888,300) $ 4,005,000
--------------------------------------------------------------------------
</TABLE>
COMMERCIAL PAPER -- 4.3%
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
--------------------------------------------------------------------------
American Express Credit Corp.,
6.78%, 7/7/00 $ 135,314 $ 135,161,095
Asset Securities Cooperative Corp.,
6.52%, 7/10/00 85,000 84,861,450
Associates Corp. of North America,
6.89%, 7/3/00 90,826 90,791,234
CIT Group Holdings, 6.77%, 7/6/00 75,949 75,877,587
Corporate Asset Funding, 6.55%, 7/21/00 60,000 59,781,666
Ford Motor Credit Corp., 6.59%, 7/3/00 93,852 93,817,640
Prudential Funding Corp., 6.77%, 7/5/00 186,937 186,796,382
--------------------------------------------------------------------------
Total Commercial Paper
(at amortized cost, $727,087,054) $ 727,087,054
--------------------------------------------------------------------------
Total Investments -- 100.0%
(identified cost $12,039,799,560) $16,968,560,668
--------------------------------------------------------------------------
</TABLE>
SECURITIES SOLD SHORT -- 0.2%
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
--------------------------------------------------------------------------
Cisco Systems, Inc. 100,000 $ (31,781,250)
--------------------------------------------------------------------------
Total Securities Sold Short
(proceeds - $33,174,944) $ (31,781,250)
--------------------------------------------------------------------------
Other Assets, Less Liabilities
excluding securities sold short -- 0.2% $ 38,996,646
--------------------------------------------------------------------------
Net Assets -- 100.0% $16,975,776,064
--------------------------------------------------------------------------
</TABLE>
ADR - American Depositary Receipt
(1) Non-income producing security.
(2) Security valued at fair value using methods determined in good faith by
or at the direction of the Trustees.
(3) Security restricted from resale for a period not exceeding one year. At
June 30, 2000, the value of these securities totaled $740,159,056 or
4.4% of net assets.
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF JUNE 30, 2000
<S> <C>
Assets
---------------------------------------------------------
Investments, at value
(identified cost, $12,039,799,560) $16,968,560,668
Cash 4,407,735
Receivable for investments sold 79,190,600
Deposits with brokers for securities
sold short 33,174,944
Interest and dividends receivable 12,891,457
Deferred organization expenses 904
Other assets 191,341
---------------------------------------------------------
TOTAL ASSETS $17,098,417,649
---------------------------------------------------------
Liabilities
---------------------------------------------------------
Payable for investments purchased $ 90,563,470
Securities sold short, at value
(proceeds received of $33,174,944) 31,781,250
Payable to affiliate for Trustees' fees 16,762
Accrued expenses 280,103
---------------------------------------------------------
TOTAL LIABILITIES $ 122,641,585
---------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $16,975,776,064
---------------------------------------------------------
Sources of Net Assets
---------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $12,045,764,791
Net unrealized appreciation (computed on
the basis of identified cost) 4,930,011,273
---------------------------------------------------------
TOTAL $16,975,776,064
---------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JUNE 30, 2000
<S> <C>
Investment Income
------------------------------------------------------
Dividends (net of foreign taxes,
$636,555) $ 70,187,497
Interest 14,994,586
------------------------------------------------------
TOTAL INVESTMENT INCOME $ 85,182,083
------------------------------------------------------
Expenses
------------------------------------------------------
Investment adviser fee $ 34,563,622
Trustees fees and expenses 25,006
Custodian fee 760,080
Legal and accounting services 56,666
Amortization of organization expenses 1,085
Miscellaneous 206,968
------------------------------------------------------
TOTAL EXPENSES $ 35,613,427
------------------------------------------------------
NET INVESTMENT INCOME $ 49,568,656
------------------------------------------------------
Realized and Unrealized Gain (Loss)
------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $345,532,315
Foreign currency transactions (14,417)
------------------------------------------------------
NET REALIZED GAIN $345,517,898
------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $427,937,124
Written options 1,393,694
Foreign currency (143,269)
------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $429,187,549
------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $774,705,447
------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $824,274,103
------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INCREASE (DECREASE) JUNE 30, 2000 YEAR ENDED
IN NET ASSETS (UNAUDITED) DECEMBER 31, 1999
<S> <C> <C>
-----------------------------------------------------------------------------
From operations --
Net investment income $ 49,568,656 $ 82,826,268
Net realized gain 345,517,898 19,281,587
Net change in unrealized
appreciation (depreciation) 429,187,549 1,954,982,313
-----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 824,274,103 $ 2,057,090,168
-----------------------------------------------------------------------------
Capital transactions --
Contributions $ 1,885,098,704 $ 5,393,615,110
Withdrawals (848,245,702) (1,040,915,654)
-----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $ 1,036,853,002 $ 4,352,699,456
-----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 1,861,127,105 $ 6,409,789,624
-----------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------
At beginning of period $15,114,648,959 $ 8,704,859,335
-----------------------------------------------------------------------------
AT END OF PERIOD $16,975,776,064 $ 15,114,648,959
-----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 2000 YEAR ENDED PERIOD ENDED
(UNAUDITED) DECEMBER 31, 1999 DECEMBER 31, 1998(1)
<S> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios to average daily net assets
-----------------------------------------------------------------------------------------------
Expenses 0.45%(3) 0.46% 0.48%(3)
Net investment income 0.63%(3) 0.72% 0.72%(3)
Portfolio Turnover 8% 11% 3%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $16,975,776 $15,114,649 $8,704,859
-----------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED OCTOBER 31,
------------------------------------
1998 1997 1996(2)
<S> <C> <C> <C>
------------------------------
Ratios to average daily net as
------------------------------
Expenses 0.50% 0.56% 0.66%(3)
Net investment income 0.78% 0.81% 0.91%(3)
Portfolio Turnover 12% 14% 6%
------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $6,985,678 $2,871,446 $936,800
------------------------------
</TABLE>
(1) For the two-month period ended December 31, 1998.
(2) For the period form the start of business, December 1, 1995, to
October 31, 1996.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
-------------------------------------------
Tax-Managed Growth Portfolio (the Portfolio) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Portfolio, which was organized as a trust
under the laws of the State of New York on December 1, 1995, seeks to provide
long-term after-tax returns by investing in a diversified portfolio of equity
securities. The Declaration of Trust permits the Trustees to issue interests
in the Portfolio. The following is a summary of significant accounting
policies consistently followed by the Portfolio 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
generally 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. Over-the-counter options are normally valued
at the mean between the latest bid and asked price. 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 Taxes -- The Portfolio is treated as a partnership for federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes on its share of such
taxable income. Since some of the Portfolio's investors are regulated
investment companies that invest all or substantially all of their assets in
the Portfolio, the Portfolio normally must satisfy the applicable source of
income and diversification requirements (under the Internal Revenue Code) in
order for its investors to satisfy them. The Portfolio will allocate, at
least annually among its investors, each investor's distributive share of the
Portfolio's net investment income, net realized capital gains, and any other
items of income, gain, loss, deduction or credit.
C Deferred Organization Expenses -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
D Futures Contracts -- Upon the entering of a financial futures contract, the
Portfolio 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 Portfolio (margin maintenance) each day, dependent on daily
fluctuations in the value of the underlying security, and are recorded for
book purposes as unrealized gains or losses by the Portfolio. The Portfolio's
investment in financial futures contracts is designed to hedge against
anticipated future changes in price of current or anticipated portfolio
positions. Should prices move unexpectedly, the Portfolio may not achieve the
anticipated benefits of the financial futures contracts and may realize a
loss.
E Put Options -- Upon the purchase of a put option by the Portfolio, the
premium paid is recorded as an investment, the value of which is
marked-to-market daily. When a purchased option expires, the Portfolio will
realize a loss in the amount of the cost of the option. When the Portfolio
enters into a closing sale transaction, the Portfolio will realize a gain or
loss depending on whether the sales proceeds from the closing sale
transaction are greater or less than the cost of the option. When the
Portfolio exercises a put option, settlement is made in cash. The risk
associated with purchasing options is limited to the premium originally paid.
F Securities Sold Short -- The Portfolio may sell securities it does not own in
anticipation of a decline in the market price of the securities or in order
to hedge portfolio positions. The Portfolio will generally borrow the
security sold in order to make delivery to the buyer. Upon executing the
transaction, the Portfolio records the proceeds as deposits with brokers in
the Statement of Assets and Liabilities and establishes an offsetting payable
for securities sold short for the securities due on settlement. The proceeds
are retained by the broker as collateral for the short position. The
liability is marked to market and the Portfolio is required to pay the
lending broker any dividend or interest income earned while the short
position is open. A gain or loss is recorded when the security is delivered
to the broker. The Portfolio may recognize a loss on the transaction if the
market value of the securities sold increases before the securities
are delivered.
G Other -- Investment transactions are accounted for on the date the securities
are purchased or sold. Dividend
29
<PAGE>
TAX-MANAGED GROWTH PORTFOLIO AS OF JUNE 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
income is recorded on the ex-dividend date. However, if the ex-dividend date
has passed, certain dividends from foreign securities are recorded as the
Portfolio is informed of the ex-dividend date. Interest income is recorded on
the accrual basis.
H Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
I Interim Financial Statements -- The interim financial statements relating to
June 30, 2000 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the
Portfolio's management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
-------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to the Portfolio.
Under the advisory agreement, BMR receives a monthly advisory fee of 5/96 of
1% (0.625% annually) of the average daily net assets of the Portfolio up to
$500,000,000, and at reduced rates as daily net assets exceed that level. For
the six months ended June 30, 2000, the adviser fee was 0.44% of the
Portfolio's average net assets. Except for Trustees of the Portfolio who are
not members of EVM's or BMR's organization, officers and Trustees receive
remuneration for their services to the Portfolio out of such investment
adviser fee. Trustees of the Portfolio that 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 June 30, 2000, no significant
amounts have been deferred.
Certain officers and Trustees of the Portfolio are officers of the above
organizations.
3 Investment Transactions
-------------------------------------------
For the six months ended June 30, 2000, purchases and sales of investments,
other than short-term obligations, aggregated $1,466,287,272 and
$1,292,435,369, respectively. In addition, investments having an aggregate
market value of $219,094,704 at dates of withdrawal were distributed in
payment for capital withdrawals. During the six months ended June 30, 2000,
investors contributed securities with a value of $1,052,838,866.
4 Federal Income Tax Basis of Investments
-------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned at June 30, 2000 as computed on a federal income tax basis,
were as follows:
<TABLE>
<S> <C>
AGGREGATE COST $ 5,528,782,769
---------------------------------------------------------
Gross unrealized appreciation $11,489,594,856
Gross unrealized depreciation (49,816,957)
---------------------------------------------------------
NET UNREALIZED APPRECIATION $11,439,777,899
---------------------------------------------------------
</TABLE>
5 Financial Instruments
-------------------------------------------
The Portfolio may trade in financial instruments with off-balance sheet risk
in the normal course of its investing activities to assist in managing
exposure to various market risks. These financial instruments include written
options, forward foreign currency exchange contracts and financial futures
contracts and may involve, to a varying degree, elements of risk in excess of
the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment the Portfolio has in particular classes of financial instruments
and does not necessarily represent the amounts potentially subject to risk.
The measurement of the risks associated with these instruments is meaningful
only when all related and offsetting transactions are considered. The
Portfolio did not have any open obligations under these financial instruments
at June 30, 2000.
6 Line of Credit
-------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $150 million unsecured line of credit agreement
with a group of banks. Borrowings will be made by the Portfolio solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each participating portfolio or fund
based on its borrowings at an amount above either the Eurodollar rate or
federal funds rate. In addition, a fee computed at an annual rate of 0.10% on
the daily unused portion of the line of credit is allocated among the
participating portfolios and funds at the end of each quarter. The Portfolio
did not have any significant borrowings or allocated fees during the six
months ended June 30, 2000.
30
<PAGE>
EATON VANCE TAX-MANAGED GROWTH FUND AS OF JUNE 30, 2000
INVESTMENT MANAGEMENT
EATON VANCE TAX-MANAGED GROWTH FUND
Officers
James B. Hawkes
President and Trustee
William H. Ahern, Jr.
Vice President
Thomas J. Fetter
Vice President
Armin J. Lang
Vice President
Michael R. Mach
Vice President
Robert B. MacIntosh
Vice President
Edward E. Smiley, Jr.,
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman of the Board,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
TAX-MANAGED GROWTH PORTFOLIO
Officers
James B. Hawkes
President and Trustee
Duncan W. Richardson
Vice President and
Portfolio Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman of the Board,
United Asset Management Corporation
Jack L. Treynor
Investment Adviser and Consultant
31
<PAGE>
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<PAGE>
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INVESTMENT ADVISER OF TAX-MANAGED GROWTH PORTFOLIO
BOSTON MANAGEMENT AND RESEARCH
The Eaton Vance Building
255 State Street
Boston, MA 02109
ADMINISTRATOR OF EATON VANCE TAX-MANAGED 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 AND DIVIDEND DISBURSING AGENT
PFPC, INC.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02904-9653
(800) 262-1122
EATON VANCE TAX-MANAGED 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.
--------------------------------------------------------------------------------
158-8/00 TGSRC
--------------------------------------------------------------------------------
