<PAGE>
[LOGO] MUTUAL FUNDS FOR PEOPLE WHO PAY TAXES
SEMIANNUAL REPORT APRIL 30, 2000
EATON VANCE
TAX-MANAGED
INTERNATIONAL
GROWTH
FUND
[GRAPHIC]
<PAGE>
This Page Intentionally Left Blank
2
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
INVESTMENT UPDATE
INVESTMENT ENVIRONMENT
------------------------------------------
- Economic conditions in Europe were characterized by steady growth with
moderate inflation, a healthy backdrop for equity investments. While the
Euro continued its slide, central banks tried to fend off early signs of
inflationary pressure with interest rate increases. Equity markets benefited
from accelerating earnings growth, strong inflows into equity funds, and
positive sentiment toward large-cap growth stocks.
- In Japan, the economy suffered a recessionary setback with negative growth for
the second quarter in a row. Equity sentiment was more subdued than in Europe.
Nevertheless, the Japanese market gained 3% (in U.S. dollars) after a very
strong showing in 1999.
[PHOTO]
Armin J. Lang
Portfolio Manager
The Fund
------------------------------------------
The Past Six Months
- During the six months ended April 30, 2000, the Fund's Class A shares had a
total return of 13.10%, the result of an increase in net asset value (NAV) to
$13.68 on April 30, 2000, from $12.16 on October 31, 1999, and the
reinvestment of $0.070 per share in dividends.(1)
- The Fund's Class B shares had a total return of 12.53% during the period, the
result of an increase in NAV to $13.51 from $12.03 and the reinvestment of
$0.026 per share in dividends.(1)
- The Fund's Class C shares had a total return of 12.55% during the period, the
result of an increase in NAV to $13.49 from $12.00 and the reinvestment of
$0.016 per share in dividends.(1)
- For comparison, the Morgan Stanley Capital International Europe, Australasia,
Far East Index, an unmanaged index used as the benchmark for international
portfolio performance, had a return of 6.72% during the period.(2)
Management Discussion
- The Fund is managed with both quantitative methods and fundamental research.
The resulting investment portfolio is characterized by a conservative approach
to growth investing: the 10 largest holdings at the end of April 2000
accounted for less than 20% of the assets, with the largest holding only 2.5%.
The weighting of technology companies was less than 10% of the Fund.(4)
- In pursuit of its objective of long-term, after-tax returns, the Fund employs
a number of tax-efficient strategies to minimize taxes for shareholders. These
strategies include buying and holding stocks for the long term, and harvesting
tax losses, when they are available, to offset any taxable gains.
- One focus of the Fund was the next generation of global communication. Some of
the largest holdings were in the areas of wireless voice and data
transmission, such as Vodafone and NTT DoCoMo; cellular handsets (Nokia and
Sagem); and global broadband providers (Global Crossing and Versatel).
- Another focus was the banking sector, especially in the U.K., and the
European insurance sector, where stocks were undervalued in a rising
interest rate environment. With valuations for many technology and Internet
stocks at levels we deemed not sustainable, the Fund continued to be
substantially underweighted in this area.
<TABLE>
<CAPTION>
Five Largest Country Concentrations* By total net assets
-------------------------------------------------------------
<S> <C>
United Kingdom 21.0%
Japan 19.8
Netherlands 11.1
Germany 10.3
France 5.7
</TABLE>
*Concentrations are subject to change.
-------------------------------------------------------------------------------
Fund Information
as of April 30, 2000
<TABLE>
<CAPTION>
Ten Largest Equity Holdings(4) By total net assets
-------------------------------------------------------------------------------
<S> <C>
Vodafone Group PLC 2.5%
JOT Automation Group Oyj 2.4
Nippon Telegraph Corp. 2.1
Lloyds TSB Group PLC 1.9
Nokia Oyj 1.8
Versatel Telecom International ADR 1.8
Allied Irish Banks PLC 1.8
Global TeleSystems Group, Inc. 1.8
Epcos AG - ADR 1.7
Promise Co. Ltd. 1.7
</TABLE>
<TABLE>
<CAPTION>
Performance(3) Class A Class B Class C
-------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
-------------------------------------------------------------------------------
<S> <C> <C> <C>
One Year 36.71% 35.64% 35.61%
Life of Fund+ 17.00 16.09 15.96
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
-------------------------------------------------------------------------------
One Year 28.89% 30.64% 34.61%
Life of Fund+ 13.63 14.39 15.96
+Inception Dates - Class A: 4/22/98; Class B: 4/22/98; Class C: 4/22/98
</TABLE>
(1) These returns do not include the 5.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge(CDSC)for Class B
shares and Class C shares. (2) It is not possible to invest directly in an
Index. (3) Returns are historical and are calculated by determining the
percentage change in net asset value with all distributions reinvested. SEC
returns for Class A reflect the maximum 5.75% sales charge. SEC returns for
Class B reflect applicable CDSC based on the following schedule: 5% - 1st
and 2nd years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
SEC 1-Year return for Class C reflects 1% CDSC. (4) Ten largest equity
holdings accounted for 19.5% of the Fund's net assets. Holdings are subject
to change.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, will be worth
more or less than their original cost.
-------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------
3
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
-------------------------------------------------------------------------------
PERFORMANCE
-------------------------------------------------------------------------------
AFTER-TAX PERFORMANCE
as of April 30, 2000
The table below sets forth the Fund's pre-tax 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.
-------------------------------------------------------------------------------
Pre-Tax and After-Tax Average Annual Returns
at Net Asset Value for the period ended April 30, 2000
<TABLE>
<CAPTION>
1 Year Pre-Tax After-Tax Tax-Efficiency
-------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
-------------------------------------------------------------------------------
<S> <C> <C> <C>
Class A 36.71% 36.48% 99.37%
Class B 35.64% 35.60% 99.89%
Class C 35.61% 35.60% 99.97%
Life of Fund* Pre-Tax After-Tax Tax-Efficiency
-------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
-------------------------------------------------------------------------------
Class A 17.00% 16.90% 99.41%
Class B 16.09% 16.07% 99.88%
Class C 15.96% 15.96% 100.00%**
</TABLE>
*Inception Dates - Class A: 4/22/98; Class B: 4/22/98; Class C: 4/22/98
**Figure reflects the effect of rounding
Source:TowersData, Bethesda, Md
-------------------------------------------------------------------------------
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. After-tax returns have been adjusted to reflect tax
credits available to shareholders as a result of foreign income taxes paid by
the Fund.
The highest historical federal tax rates (currently 39.6% for dividends and 20%
for capital gains) are used. If an investor is in a lower tax bracket, the
impact of taxes on returns will be reduced. 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.
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 (5.00%
maximum for Class B shares and 1% for Class C 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).
4
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
COMMON STOCKS -- 96.5%
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Appliances and Household Durables -- 0.2%
-----------------------------------------------------------------------
Sony Corp. 2,300 $ 264,104
-----------------------------------------------------------------------
$ 264,104
-----------------------------------------------------------------------
Auto and Parts -- 1.3%
-----------------------------------------------------------------------
Bridgestone Corp. 30,000 $ 650,937
Labinal 13,700 1,485,692
-----------------------------------------------------------------------
$ 2,136,629
-----------------------------------------------------------------------
Automobiles -- 1.0%
-----------------------------------------------------------------------
Honda Motor Co. Ltd. 10,000 $ 446,912
Toyota Motor Co. 23,000 1,142,818
-----------------------------------------------------------------------
$ 1,589,730
-----------------------------------------------------------------------
Banking -- 10.4%
-----------------------------------------------------------------------
ABN Amro Holdings 72,142 $ 1,489,079
Allied Irish Banks PLC 300,000 3,000,455
Banco Popular Espanol 36,000 974,362
Banco Santander Central Hispano 18,000 188,147
Bank of Scotland 148,498 1,323,345
Bank of Tokyo Mitsubishi Ltd. (The) 100,000 1,289,845
Commerzbank AG 12,000 454,921
Dexia 3,177 412,856
HSBC Holdings PLC 22,465 249,940
Lloyds TSB Group PLC 327,762 3,220,899
National Australia Bank Ltd. 152,813 2,091,843
Svenska Handelbanken "A" 117,200 1,551,234
UBS (Schw. Bank Gesellschaft) 3,000 735,833
Vontobel Holding AG 110 244,231
-----------------------------------------------------------------------
$ 17,226,990
-----------------------------------------------------------------------
Broadcasting and Cable -- 2.1%
-----------------------------------------------------------------------
Mih Ltd. 35,000 $ 1,645,000
Primacom AG - ADR 45,000 1,867,500
-----------------------------------------------------------------------
$ 3,512,500
-----------------------------------------------------------------------
Broadcasting and Publishing -- 0.6%
-----------------------------------------------------------------------
Nippon Television Network 1,400 $ 1,045,385
-----------------------------------------------------------------------
$ 1,045,385
-----------------------------------------------------------------------
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Business and Public Services -- 2.4%
-----------------------------------------------------------------------
Dai Nippon Printing Co. Ltd. 75,000 $ 1,272,033
Sap AG 5,010 2,355,856
Tas Groep NV(1) 157,707 400,974
-----------------------------------------------------------------------
$ 4,028,863
-----------------------------------------------------------------------
Chemicals -- 0.7%
-----------------------------------------------------------------------
Sumitomo Bakelite Co. Ltd. 110,000 $ 1,210,178
-----------------------------------------------------------------------
$ 1,210,178
-----------------------------------------------------------------------
Computer Services -- 0.9%
-----------------------------------------------------------------------
Getronics NV 25,000 $ 1,494,532
-----------------------------------------------------------------------
$ 1,494,532
-----------------------------------------------------------------------
Computer Software -- 0.3%
-----------------------------------------------------------------------
Riverdeep Group PLC - ADR 20,000 $ 457,500
-----------------------------------------------------------------------
$ 457,500
-----------------------------------------------------------------------
Construction and Housing -- 1.3%
-----------------------------------------------------------------------
Volker Wessels Stevin 140,571 $ 2,081,663
-----------------------------------------------------------------------
$ 2,081,663
-----------------------------------------------------------------------
Data Processing and Reproduction -- 0.7%
-----------------------------------------------------------------------
Canon, Inc. 26,000 $ 1,188,434
-----------------------------------------------------------------------
$ 1,188,434
-----------------------------------------------------------------------
Drugs -- 5.9%
-----------------------------------------------------------------------
Astrazeneca PLC 32,000 $ 1,346,479
Elan Corp., PLC ADR(1) 30,000 1,286,250
Glaxo Wellcome PLC 25,433 788,390
Novartis AG 1,500 2,090,671
Novo Nordisk A/S-B 4,500 605,024
Roche Holding AG 45 469,224
Sankyo Co. Ltd. 38,000 836,826
Smithkline Beecham PLC 70,543 969,738
Takeda Chemical Industries Ltd. 21,000 1,381,541
-----------------------------------------------------------------------
$ 9,774,143
-----------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Electric Power -- 0.5%
-----------------------------------------------------------------------
Enel Spa 200,000 $ 852,248
-----------------------------------------------------------------------
$ 852,248
-----------------------------------------------------------------------
Electrical and Electronics -- 2.9%
-----------------------------------------------------------------------
Philips Electonics 5,520 $ 246,841
Sagem SA 2,000 2,493,317
Siemens AG 12,000 1,779,113
Sony Corp. 3,000 346,981
-----------------------------------------------------------------------
$ 4,866,252
-----------------------------------------------------------------------
Electronic Components - Instruments -- 6.4%
-----------------------------------------------------------------------
Epcos AG - ADR 20,000 $ 2,806,250
Infineon Technologies AG 33,000 2,255,468
Invensys PLC 421,629 2,028,778
Kyocera Corp. 15,000 2,507,981
Rohm Co. 3,000 1,004,858
-----------------------------------------------------------------------
$ 10,603,335
-----------------------------------------------------------------------
Energy Sources -- 1.5%
-----------------------------------------------------------------------
BP Amoco PLC 186,556 $ 1,618,712
Royal Dutch Petroleum Co. 14,000 808,870
-----------------------------------------------------------------------
$ 2,427,582
-----------------------------------------------------------------------
Engineering and Building -- 0.4%
-----------------------------------------------------------------------
Technip SA 5,950 $ 680,491
-----------------------------------------------------------------------
$ 680,491
-----------------------------------------------------------------------
Financial Services -- 6.4%
-----------------------------------------------------------------------
Abbey National 190,000 $ 2,174,837
Acom Co. Ltd. 16,000 1,541,152
ING Groep NV 25,216 1,379,220
Julius Baer Holdings 50 174,949
Nomura Securities Co. Ltd. 100,000 2,516,771
Promise Co. Ltd. 34,200 2,768,910
-----------------------------------------------------------------------
$ 10,555,839
-----------------------------------------------------------------------
Food and Household Products -- 3.0%
-----------------------------------------------------------------------
Nestle 700 $ 1,236,850
Parmalat Finanziaria SPA 1,485,000 1,550,859
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Food and Household Products (continued)
-----------------------------------------------------------------------
Unilever PLC 360,000 $ 2,170,221
-----------------------------------------------------------------------
$ 4,957,930
-----------------------------------------------------------------------
Industrial Automation -- 2.4%
-----------------------------------------------------------------------
JOT Automation Group Oyj 546,200 $ 3,962,106
-----------------------------------------------------------------------
$ 3,962,106
-----------------------------------------------------------------------
Insurance -- 7.1%
-----------------------------------------------------------------------
Aegon NV 31,053 $ 2,227,100
Allianz AG Holding 3,000 1,157,807
Allied Zurich PLC 250,000 2,493,900
ASR Verzekeringsgroep 30,113 1,488,727
AXA Company 4,600 683,712
Schweizer Rueckversicherung 1,700 2,737,983
Scor SA 24,500 1,069,010
-----------------------------------------------------------------------
$ 11,858,239
-----------------------------------------------------------------------
Investment Services -- 0.4%
-----------------------------------------------------------------------
Tecis Holding AG 5,000 $ 724,484
-----------------------------------------------------------------------
$ 724,484
-----------------------------------------------------------------------
Leisure and Tourism -- 2.3%
-----------------------------------------------------------------------
Northern Leisure PLC 892,750 $ 2,437,722
Tabcorp Holdings Ltd. 265,000 1,417,316
-----------------------------------------------------------------------
$ 3,855,038
-----------------------------------------------------------------------
Machinery -- 0.4%
-----------------------------------------------------------------------
Buderus 39,600 $ 670,505
-----------------------------------------------------------------------
$ 670,505
-----------------------------------------------------------------------
Merchandising -- 0.9%
-----------------------------------------------------------------------
Autobacs Seven Co. Ltd. 35,800 $ 904,316
Woolworths Ltd. 171,063 575,136
-----------------------------------------------------------------------
$ 1,479,452
-----------------------------------------------------------------------
Miscellaneous Materials and Commodities -- 0.7%
-----------------------------------------------------------------------
Mayr-Melnhof 11,336 $ 535,946
Nitto Denko Corp. 17,000 666,944
-----------------------------------------------------------------------
$ 1,202,890
-----------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Multi-Industry -- 1.1%
-----------------------------------------------------------------------
Hutchison Whampoa 13,000 $ 189,429
International Muller NV 62,743 1,160,707
Orkla As A-Aksjer(1) 31,628 489,603
-----------------------------------------------------------------------
$ 1,839,739
-----------------------------------------------------------------------
Oil and Gas - Exploration and Production -- 0.4%
-----------------------------------------------------------------------
Repsol SA 32,600 $ 668,439
-----------------------------------------------------------------------
$ 668,439
-----------------------------------------------------------------------
Photo Equipment and Supplies -- 0.6%
-----------------------------------------------------------------------
Fuji Photo Film 25,000 $ 1,001,619
-----------------------------------------------------------------------
$ 1,001,619
-----------------------------------------------------------------------
Publishing -- 0.1%
-----------------------------------------------------------------------
Agora GDR 5,000 $ 116,250
-----------------------------------------------------------------------
$ 116,250
-----------------------------------------------------------------------
Retail -- 1.9%
-----------------------------------------------------------------------
Carrefour Supermarche 2,400 $ 156,598
Colruyt NV 28,927 1,120,086
Don Quijote Co., Ltd. 5,000 846,634
JJB Sports PLC 110,000 1,015,555
-----------------------------------------------------------------------
$ 3,138,873
-----------------------------------------------------------------------
Retail - Food and Drug -- 0.6%
-----------------------------------------------------------------------
Pizzaexpress PLC 80,000 $ 910,714
-----------------------------------------------------------------------
$ 910,714
-----------------------------------------------------------------------
Telecommunication Equipment -- 2.2%
-----------------------------------------------------------------------
e.Biscom 3,125 $ 619,143
Nokia Oyj 52,800 3,036,160
-----------------------------------------------------------------------
$ 3,655,303
-----------------------------------------------------------------------
Telecommunications -- 19.6%
-----------------------------------------------------------------------
360networks, Inc. 100,000 $ 1,518,750
British Telecommunications PLC 35,746 643,816
Cable and Wireless HKT, Ltd. 64,847 152,768
Cable and Wireless Optus Ltd.(1) 100,000 322,676
Completel Europe NV 10,000 161,250
Eircom PLC 125,000 436,285
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Telecommunications (continued)
-----------------------------------------------------------------------
Energis (1) 20,000 $ 991,770
France Telecom SA 9,000 1,395,929
Global Crossing Ltd.(1) 70,000 2,205,000
Global TeleSystems Group, Inc. 200,000 2,912,500
Kingston Comm (Hull) PLC 120,000 1,507,841
KPNQwest NV 20,000 805,000
Nippon Telegraph and Telephone Corp. 280 3,471,663
NTT Mobile Communication Network, Inc. 60 2,004,164
Portugal Telecom 44,500 497,584
Sonera Oyj 35,000 1,929,678
Swisscom AG 2,500 879,105
Tele Danmark 11,000 806,698
Telecom Italia Spa 86,500 828,082
Telecom Italia Spa RNC 18,500 259,427
Telecommunication Danmark ADR 12,000 454,500
Telefonica 34,100 760,724
Terra Networks SA 2,500 155,035
Thus PLC 50,000 288,314
Versatel Telecom International ADR(1) 75,000 3,032,813
Vodafone Group PLC 892,941 4,114,972
-----------------------------------------------------------------------
$ 32,536,344
-----------------------------------------------------------------------
Transportation -- 3.1%
-----------------------------------------------------------------------
East Japan Railway Co. 266 $ 1,575,202
Firstgroup PLC 1,102,862 2,597,266
Mitsui O.S.K. Lines Ltd. 552,000 1,026,620
-----------------------------------------------------------------------
$ 5,199,088
-----------------------------------------------------------------------
Utilities - Electrical and Gas -- 3.0%
-----------------------------------------------------------------------
Endesa SA 75,000 $ 1,630,771
Scottish Power PLC 230,000 1,850,806
Suez Lyonnaise des Eaux SA 9,500 1,495,398
-----------------------------------------------------------------------
$ 4,976,975
-----------------------------------------------------------------------
Wireless Communication Services -- 0.8%
-----------------------------------------------------------------------
Palm, Inc. 50,000 $ 1,362,500
-----------------------------------------------------------------------
$ 1,362,500
-----------------------------------------------------------------------
Total Common Stocks
(identified cost $142,550,091) $160,112,886
-----------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
PREFERRED STOCKS -- 1.8%
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Construction and Housing -- 1.2%
-----------------------------------------------------------------------
Dyckerhoff 89,948 $ 2,000,058
-----------------------------------------------------------------------
$ 2,000,058
-----------------------------------------------------------------------
Health and Personal Care -- 0.6%
-----------------------------------------------------------------------
Fresenius 4,500 $ 1,012,910
-----------------------------------------------------------------------
$ 1,012,910
-----------------------------------------------------------------------
Total Preferred Stocks
(identified cost $3,111,613) $ 3,012,968
-----------------------------------------------------------------------
</TABLE>
WARRANTS -- 0.0%
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C>
-----------------------------------------------------------------------
Entertainment -- 0.0%
-----------------------------------------------------------------------
Northern Leisure PLC(1) 21,000 $ 15,280
-----------------------------------------------------------------------
$ 15,280
-----------------------------------------------------------------------
Total Warrants
(identified cost $0) $ 15,280
-----------------------------------------------------------------------
</TABLE>
SHORT-TERM INVESTMENTS -- 2.8%
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
-----------------------------------------------------------------------
CIT Group, Inc., 6.04%, 5/1/00 $ 4,687 $ 4,687,000
-----------------------------------------------------------------------
Total Short-Term Investments
(at amortized cost, $4,687,000) $ 4,687,000
-----------------------------------------------------------------------
Total Investments -- 101.1%
(identified cost $150,348,704) $167,828,134
-----------------------------------------------------------------------
Other Assets, Less Liabilities -- (1.1)% $ (1,854,703)
-----------------------------------------------------------------------
Net Assets -- 100.0% $165,973,431
-----------------------------------------------------------------------
</TABLE>
ADR - American Depositary Receipt
GDR - Global Depository Receipt
(1) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
COUNTRY CONCENTRATION OF PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE
COUNTRY OF NET ASSETS VALUE
<S> <C> <C>
---------------------------------------------------------------------
Australia 2.7% $ 4,406,970
Austria 0.3 535,946
Belgium 0.9 1,532,942
Canada 0.9 1,518,750
Denmark 1.1 1,866,222
Finland 5.4 8,927,944
France 5.7 9,460,146
Germany 10.3 17,084,872
Hong Kong 0.2 342,197
Ireland 3.1 5,180,490
Italy 2.5 4,109,760
Japan 19.8 32,912,829
Netherlands 11.1 18,421,776
Norway 0.3 489,603
Poland 0.1 116,250
Portugal 0.3 497,583
Spain 2.6 4,377,478
Sweden 0.9 1,551,234
Switzerland 5.2 8,568,846
United Kingdom 21.0 34,759,296
Other Europe 3.1 5,117,500
United States 0.8 1,362,500
---------------------------------------------------------------------
Total Common Stocks, Preferred Stocks
and Warrants 98.3 $163,141,134
---------------------------------------------------------------------
Short-Term Investments 2.8 $ 4,687,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF APRIL 30, 2000
<S> <C>
Assets
------------------------------------------------------
Investments, at value
(identified cost, $150,348,704) $167,828,134
Cash 823,170
Foreign currency, at value
(cost $46,850) 45,848
Receivable for Fund shares sold 1,522,623
Dividends receivable 480,797
Tax reclaim receivable 59,481
Deferred organization expenses 39,198
------------------------------------------------------
TOTAL ASSETS $170,799,251
------------------------------------------------------
Liabilities
------------------------------------------------------
Payable for investments purchased $ 4,644,121
Payable for Fund shares redeemed 78,878
Payable to affiliate for Trustees' fees 721
Accrued expenses 102,100
------------------------------------------------------
TOTAL LIABILITIES $ 4,825,820
------------------------------------------------------
NET ASSETS $165,973,431
------------------------------------------------------
Sources of Net Assets
------------------------------------------------------
Paid-in capital $146,576,090
Accumulated net realized gain (computed
on the basis of identified cost) 2,451,792
Accumulated distributions in excess of
net investment income (533,704)
Net unrealized appreciation (computed on
the basis of identified cost) 17,479,253
------------------------------------------------------
TOTAL $165,973,431
------------------------------------------------------
Class A Shares
------------------------------------------------------
NET ASSETS $ 59,463,698
SHARES OUTSTANDING 4,347,961
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 13.68
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $13.68) $ 14.51
------------------------------------------------------
Class B Shares
------------------------------------------------------
NET ASSETS $ 66,597,953
SHARES OUTSTANDING 4,928,028
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 13.51
------------------------------------------------------
Class C Shares
------------------------------------------------------
NET ASSETS $ 39,911,780
SHARES OUTSTANDING 2,959,692
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 13.49
------------------------------------------------------
</TABLE>
On sales of $50,000 or more, the offering price of Class A shares is reduced.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
APRIL 30, 2000
<S> <C>
Investment Income
----------------------------------------------------
Dividends
(net of foreign taxes, $95,554) $ 815,767
Interest 312,654
----------------------------------------------------
TOTAL INVESTMENT INCOME $1,128,421
----------------------------------------------------
Expenses
----------------------------------------------------
Investment adviser fee $ 595,290
Trustees fees and expenses 5,221
Distribution and service fees
Class A 41,163
Class B 228,163
Class C 135,439
Custodian fee 95,549
Transfer and dividend disbursing agent
fees 65,175
Registration fees 23,908
Legal and accounting services 17,760
Printing and postage 12,615
Amortization of organization expenses 6,379
Miscellaneous 6,405
----------------------------------------------------
TOTAL EXPENSES $1,233,067
----------------------------------------------------
NET INVESTMENT LOSS $ (104,646)
----------------------------------------------------
Realized and Unrealized Gain (Loss)
----------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $2,674,295
Foreign currency transactions (66,999)
----------------------------------------------------
NET REALIZED GAIN $2,607,296
----------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $5,982,666
Foreign currency (187)
----------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $5,982,479
----------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $8,589,775
----------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $8,485,129
----------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INCREASE (DECREASE) APRIL 30, 2000 YEAR ENDED
IN NET ASSETS (UNAUDITED) OCTOBER 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
From operations --
Net investment loss $ (104,646) $ (123,573)
Net realized gain (loss) 2,607,296 (6,014)
Net change in unrealized
appreciation (depreciation) 5,982,479 13,260,629
----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 8,485,129 $ 13,131,042
----------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (100,529) $ --
In excess of net investment income
Class A (86,014) --
Class B (68,603) --
Class C (24,749) --
----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (279,895) $ --
----------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 42,878,912 $ 19,812,005
Class B 39,040,950 14,226,821
Class C 25,596,934 9,320,792
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 168,161 --
Class B 63,421 --
Class C 22,898 --
Cost of shares redeemed
Class A (14,879,827) (3,770,105)
Class B (2,060,395) (2,957,284)
Class C (1,863,816) (1,845,706)
----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ 88,967,238 $ 34,786,523
----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 97,172,472 $ 47,917,565
----------------------------------------------------------------------------
Net Assets
----------------------------------------------------------------------------
At beginning of period $ 68,800,959 $ 20,883,394
----------------------------------------------------------------------------
AT END OF PERIOD $ 165,973,431 $ 68,800,959
----------------------------------------------------------------------------
Accumulated distributions
in excess of net investment
income included in net assets
----------------------------------------------------------------------------
AT END OF PERIOD $ (533,704) $ (149,163)
----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2000 ------------------------
(UNAUDITED)(1) 1999(1) 1998(1)(2)
<S> <C> <C> <C>
------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 12.160 $ 8.840 $ 10.000
------------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------------
Net investment income $ 0.020 $ 0.016 $ 0.012
Net realized and unrealized
gain (loss) 1.570 3.304 (1.172)
------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 1.590 $ 3.320 $ (1.160)
------------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------------
From net investment income $ (0.038) $ -- $ --
In excess of net investment
income (0.032) -- --
------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.070) $ -- $ --
------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 13.680 $ 12.160 $ 8.840
------------------------------------------------------------------------------
TOTAL RETURN(3) 13.10% 37.56% (11.60)%
------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 59,464 $ 27,833 $ 6,659
Ratios (As a percentage of
average daily net assets):
Net expenses 1.57%(4) 1.73% 1.97%(4)
Net expenses after
custodian fee reduction 1.57%(4) 1.73% 1.95%(4)
Net investment income 0.29%(4) 0.15% 0.25%(4)
Portfolio Turnover 23% 60% 14%
------------------------------------------------------------------------------
+ The operating expenses of the Fund may reflect a reduction of the investment
adviser fee, an allocation of expenses to the Investment Adviser, or both.
Had such actions not been taken, the ratios and net investment income per
share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses 2.20%(4)
Expenses after custodian
fee reduction 2.18%(4)
Net investment income 0.02%(4)
Net investment income per
share $ 0.001
------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the start of business, April 22, 1998, to
October 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) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2000 ------------------------
(UNAUDITED)(1) 1999(1) 1998(1)(2)
<S> <C> <C> <C>
------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 12.030 $ 8.810 $ 10.000
------------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------------
Net investment loss $ (0.031) $ (0.055) $ (0.039)
Net realized and unrealized
gain (loss) 1.537 3.275 (1.151)
------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 1.506 $ 3.220 $ (1.190)
------------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------------
In excess of net investment
income $ (0.026) $ -- $ --
------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.026) $ -- $ --
------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 13.510 $ 12.030 $ 8.810
------------------------------------------------------------------------------
TOTAL RETURN(3) 12.53% 36.55% (11.90)%
------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 66,598 $ 26,498 $ 9,808
Ratios (As a percentage of
average daily net assets):
Net expenses 2.35%(4) 2.53% 2.72%(4)
Net expenses after
custodian fee reduction 2.35%(4) 2.53% 2.70%(4)
Net investment loss (0.45)%(4) (0.53)% (0.80)%(4)
Portfolio Turnover 23% 60% 14%
------------------------------------------------------------------------------
+ The operating expenses of the Fund may reflect a reduction of the investment
advisor fee, an allocation of expenses to the Investment Advisor, or both.
Had such actions not been taken, the ratios and net investment loss per
share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses 2.95%(4)
Expenses after custodian
fee reduction 2.93%(4)
Net investment loss (1.03)%(4)
Net investment loss per share $ (0.050)
------------------------------------------------------------------------------
</TABLE>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) For the period from the start of business, April 22, 1998, to
October 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) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2000 ------------------------
(UNAUDITED)(1) 1999(1) 1998(1)(2)
<S> <C> <C> <C>
------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 12.000 $ 8.800 $ 10.000
------------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------------
Net investment loss $ (0.032) $ (0.080) $ (0.055)
Net realized and unrealized
gain (loss) 1.538 3.280 (1.145)
------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 1.506 $ 3.200 $ (1.200)
------------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------------
In excess of net investment
income $ (0.016) $ -- $ --
------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.016) $ -- $ --
------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 13.490 $ 12.000 $ 8.800
------------------------------------------------------------------------------
TOTAL RETURN(3) 12.55% 36.36% (12.00)%
------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 39,912 $ 14,470 $ 4,416
Ratios (As a percentage of
average daily net assets):
Net expenses 2.38%(4) 2.71% 2.97%(4)
Net expenses after
custodian fee reduction 2.38%(4) 2.71% 2.95%(4)
Net investment loss (0.47)%(4) (0.78)% (1.15)%(4)
Portfolio Turnover 23% 60% 14%
------------------------------------------------------------------------------
+ The operating expenses of the Fund may reflect a reduction of the investment
adviser fee, an allocation of expenses to the Investment Advisor, or both.
Had such actions not been taken, the ratios and net investment loss per
share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses 3.20%(4)
Expenses after custodian
fee reduction 3.18%(4)
Net investment loss (1.38)%(4)
Net investment loss per share $ (0.066)
------------------------------------------------------------------------------
</TABLE>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) For the period from the start of business, April 22, 1998, to
October 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) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
-------------------------------------------
Eaton Vance Tax-Managed International 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 seeks to achieve long-term,
after-tax returns by investing in a diversified portfolio of foreign equity
securities. The Fund offers three classes of shares. Generally, Class A
shares are sold subject to a sales charge imposed at time of purchase, and
Class B and Class C shares are sold at net asset value and are subject to a
contingent deferred sales charge (see Note 6). Each class represents a pro
rata interest in the Fund, but votes separately on class-specific matters and
(as noted below) is subject to different expenses. Realized and unrealized
gains and losses and net investment income, other than class specific
expenses, are allocated daily to each class of shares based on the relative
net assets of each class to the net assets of the Fund. Each class of shares
differs in its distribution plan and certain other class specific expenses.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuations -- Marketable securities, including options, that are
listed on foreign or U.S. securities exchanges or in the NASDAQ National
Market System are valued at closing sale prices on the exchange where such
securities are principally traded. Futures positions on securities or
currencies are generally valued at closing settlement prices. Unlisted or
listed securities for which closing sale prices are not available are valued
at the mean between the latest bid and asked prices. Short-term debt
securities with a remaining maturity of 60 days or less are valued at
amortized cost, which approximates value. Other fixed income and debt
securities, including listed securities and securities for which price
quotations are available, will normally be valued on the basis of valuations
furnished by a pricing service. 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 -- Dividend income is recorded on the ex-dividend date for dividends
received in cash and/or securities. However, if the ex-dividend date has
passed, certain dividends from foreign securities are recorded as the Fund is
informed of the ex-dividend date. Interest income is recorded on the accrual
basis.
C Income Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable income, including any
net realized gain on investments. Accordingly, no provision for federal
income or excise tax is necessary. Withholding taxes on foreign dividends and
capital gains have been provided for in accordance with the Fund's
understanding of the applicable country's tax rules and rates. At October 31,
1999, the Fund, for federal income tax purposes, had a capital loss carryover
of $125,361 which will reduce the taxable income arising from future net
realized gain on investments, if any, to the extent permitted by the Internal
Revenue Code and thus will reduce the amount of distributions to shareholders
which would otherwise be necessary to relieve the Fund of any liability for
federal income or excise tax. Such capital loss carryover will expire on
October 31, 2006.
D Foreign Currency Translation -- Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing on
the respective dates of such transactions. Recognized gains or losses on
investment transactions attributable to foreign currency exchange rates are
recorded for financial statement purposes as net realized gains and losses on
investments. That portion of unrealized gains and losses on investments that
results from fluctuations in foreign currency exchange rates is not
separately disclosed.
E Forward Foreign Currency Exchange Contracts -- The Fund may enter into
forward foreign currency exchange contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date. Risks may arise
upon entering these contracts from the potential inability of counterparties
to meet the terms of their contracts and from movements in the value of a
foreign currency relative to the U.S. dollar. The Fund will enter into
forward contracts for hedging purposes as well as non-hedging purposes. The
forward foreign currency exchange contracts are adjusted by the daily
exchange rate of the underlying currency and any gains or losses are recorded
for financial statement purposes as unrealized until such time as the
contracts have been closed or offset.
15
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
F Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Fund. Pursuant to the custodian agreement, IBT receives a fee reduced
by credits which are determined based on the average daily cash balance the
Fund maintains with IBT. All significant credit balances used to reduce the
Fund's custodian fees are reported as a reduction of total expenses in the
Statement of Operations.
G Deferred Organization Expenses -- Costs incurred by the Fund in connection
with its organization are being amortized on the straight-line basis over
five years.
H Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
I Other -- Investment transactions are accounted for on a trade date basis.
J Interim Financial Statements -- The interim financial statements relating to
April 30, 2000 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Trust's
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders
-------------------------------------------
It is the present policy of the Fund to make at least one distribution
annually (normally in December) of all or substantially all of its net
investment income and at least one distribution annually of all or
substantially all of its net realized capital gains. Distributions are paid
in the form of additional shares of the Fund or, at the election of the
shareholder, in cash. Shareholders may reinvest distributions in shares of
the Fund at the net asset value as of the close of business on the
ex-dividend date. The Fund distinguishes between distributions on a tax basis
and a financial reporting basis. Generally accepted accounting principles
require that only distributions in excess of tax basis earnings and profits
be reported in the financial statements as a return of capital. Differences
in the recognition or classification of income between the financial
statements and tax earnings and profits which result in temporary
overdistributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains. Permanent differences between book and tax accounting relating to
distributions are reclassified to paid-in capital.
3 Shares of Beneficial Interest
-------------------------------------------
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED
CLASS A (UNAUDITED) OCTOBER 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 3,114,362 1,904,157
Issued to shareholders electing to
receive payments of distributions in
Fund shares 12,730 --
Redemptions (1,067,088) (369,243)
----------------------------------------------------------------------------
NET INCREASE 2,060,004 1,534,914
----------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED
CLASS B (UNAUDITED) OCTOBER 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 2,872,986 1,385,517
Issued to shareholders electing to
receive payments of distributions in
Fund shares 4,845 --
Redemptions (152,650) (295,860)
----------------------------------------------------------------------------
NET INCREASE 2,725,181 1,089,657
----------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED
CLASS C (UNAUDITED) OCTOBER 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 1,887,391 887,282
Issued to shareholders electing to
receive payments of distributions in
Fund shares 1,753 --
Redemptions (135,439) (183,061)
----------------------------------------------------------------------------
NET INCREASE 1,753,705 704,221
----------------------------------------------------------------------------
</TABLE>
4 Investment Adviser Fee and Other Transactions with Affiliates
-------------------------------------------
Eaton Vance Management (EVM) earns an investment adviser fee as compensation
for management and
16
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
investment advisory services rendered to the Fund. Under the advisory
agreement, EVM receives a monthly advisory fee in the amount of 1/12 of 1%
(equal to 1.00% annually) of the Fund's average daily net assets up to $500
million, and at reduced rates as daily net assets exceed that level. For the
six months ended April 30, 2000 the advisory fee amounted to $595,290.
The Fund was informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary
of EVM and the Fund's principal underwriter, received $95,664 as its portion
of the sales charge on sales of Class A shares for the six months ended
April 30, 2000.
Except as to Trustees of the Fund who are not members of EVM's organization,
officers and Trustees receive remuneration for their services to the Fund out
of such investment adviser fee. Trustees of the Fund who are not affiliated
with the Investment Adviser may elect to defer receipt of all or a percentage
of their annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the six months ended April 30, 2000, no significant
amounts have been deferred.
Certain officers and Trustees of the Fund are officers of the above
organization.
5 Distribution and Service Plans
-------------------------------------------
The Fund has in effect distribution plans, for Class B (Class B Plan) and
Class C (Class C Plan) pursuant to Rule 12b-1 under the Investment Company
Act of 1940 and a service plan for Class A shares (Class A Plan)
(collectively, the Plans). The Class B and Class C Plans require the Fund to
pay EVD amounts equal to 1/365 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 $176,570 and $101,857 for Class B and Class C
shares, respectively, to or payable to EVD for the six months ended
April 30, 2000, representing 0.75% of the average daily net assets for
Class B and Class C shares. At April 30, 2000, the amount of Uncovered
Distribution Charges EVD calculated under the Plans was approximately
$2,757,000 and $1,974,000 for Class B and Class C shares, respectively.
The Plans authorize the Fund to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.25% of the
Fund's average daily net assets attributable to Class A, Class B, and
Class C shares for each fiscal year. The Trustees initially implemented the
Plans by authorizing the Fund to make quarterly payments of service fees to
EVD and investment dealers 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 April 30, 2000 amounted to $41,163,
$51,593, and $33,582 for Class A, Class B and Class C shares, respectively.
6 Contingent Deferred Sales Charge
-------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B shares made within six years of purchase and on redemptions of
Class C shares made within one year of purchase. Generally, the CDSC is based
on the lower of the net asset value at the date of redemption or date of
purchase. No charge is levied on shares acquired by reinvestment of dividends
or capital gains distributions. Class B CDSC is imposed at declining rates
that begin at 5% in the case of redemptions in the first and second year
after purchase, declining one percentage point each subsequent year. Class C
shares will be subject to a 1% CDSC if redeemed within one year of purchase.
No CDSC is levied on shares which have been sold to EVM or its affiliates or
to their respective employees or clients
17
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
and may be waived under certain other limited conditions. CDSC received on
Class B and C redemptions are paid to EVD to reduce the amount of Uncovered
Distribution Charges calculated under the Class B and Class C Plans,
respectively (see Note 5). CDSC received on Class B and Class C redemptions
when no Uncovered Distribution Charges exist for the respective classes will
be credited to the Fund. EVD received approximately $55,000 and $6,000 of
CDSC paid by shareholders of Class B and Class C shares, respectively, during
the six months ended April 30, 2000.
7 Investment Transactions
-------------------------------------------
Purchases and sales of investments, other than short-term obligations,
aggregated $114,308,040 and $25,751,704, respectively, for the six months
ended April 30, 2000.
8 Federal Income Tax Basis of Investment
-------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investment securities at April 30, 2000 as computed on a federal income tax
basis, were as follows:
<TABLE>
<S> <C>
AGGREGATE COST $150,348,704
------------------------------------------------------
Gross unrealized appreciation $ 25,181,994
Gross unrealized depreciation (7,702,564)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 17,479,430
------------------------------------------------------
</TABLE>
9 Financial Instruments
-------------------------------------------
The Fund 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 Fund 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 Fund did not have any open obligations under these financial instruments
at April 30, 2000.
10 Line of Credit
-------------------------------------------
The Fund participates with other funds and portfolios managed by EVM and its
affiliates in a $150 million unsecured line of credit agreement with a group
of banks. The Fund may temporarily borrow from the line of credit to satisfy
redemption requests or settle investment transactions. Interest is charged to
each fund or portfolio based on its borrowings at an amount above the
Eurodollar rate or federal funds advanced funding rate. In addition, a fee
computed at an annual rate of 0.10% on the daily unused portion of the line
of credit is allocated among the participating funds and portfolios at the
end of each quarter. The Fund did not have any significant borrowings or
allocated fees during the six months ended April 30, 2000.
11 Risks associated with Foreign Investments
-------------------------------------------
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less
publicly available information about foreign companies, particularly those
not subject to the disclosure and reporting requirements of the U.S.
securities laws. Foreign issuers are generally not bound by uniform
accounting, auditing, and financial reporting requirements and standards of
practice comparable to those applicable to domestic issuers. Investments in
foreign securities also involve the risk of possible adverse changes in
investment or exchange control regulations, expropriation or confiscatory
taxation, limitation on the removal of funds or other assets of the Fund,
political or financial instability or diplomatic and other developments which
could affect such investments. Foreign stock markets, while growing in volume
and sophistication, are generally not as developed as those in the United
States, and securities of some foreign issuers (particularly those located in
developing countries) may be less liquid and more volatile than securities of
comparable U.S. companies. In general, there is less overall governmental
supervision and regulation of foreign securities markets, broker-dealers and
issuers than in the United States.
18
<PAGE>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2000
INVESTMENT MANAGEMENT
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND
Officers
James B. Hawkes
President and Trustee
William H. Ahern, Jr.
Vice President
Thomas J. Fetter
Vice President
Armin J. Lang
Vice President and
Portfolio Manager
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
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
19
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INVESTMENT ADVISER AND ADMINISTRATOR OF EATON VANCE
TAX-MANAGED INTERNATIONAL GROWTH FUND
EATON VANCE MANAGEMENT
The Eaton Vance Building
255 State Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
EATON VANCE DISTRIBUTORS, INC.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
PFPC, INC.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02904-9653
(800) 262-1122
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
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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.
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038-6/00 IGSRC-6/00
