<PAGE>
[Eaton Vance Mutual Funds Logo] [Picture of money]
Investing for the 21st Century-Registered Trademark-
Semiannual Report March 31, 2000
[Picture of a statue of a man on a horse]
EATON VANCE
INCOME FUND
OF BOSTON
[LOGO "75 YEARS OF EXCELLENCE
EATON 75TH VANCE
ANNIVERSARY"]
[Picture of buildings]
<PAGE>
Eaton Vance Income Fund of Boston as of March 31, 2000
INVESTMENT UPDATE
Investment Environment
-------------------------------------------------------------------------------
- The high-yield market continued to present promising investment opportunities
during the six-month period ended March 31, 2000. Quality spreads - the yield
differential between high-yield bonds and similar-maturity Treasury bonds
- remained at the high end of their historical range, around 600 basis points
(6.0%) at March 31.
- While generally resistant to the Federal Reserve's interest rate hikes, the
high-yield market again competed with the robust stock market for investors'
attention. In a volatile market, the CS First Boston High Yield Bond Index
had a total return of 0.77% for the six months ended March 31, 2000.
- Because of muted investor demand, the new issue market was generally limited
to large cap, BB-rated repeat issuers. That afforded market participants some
opportunities to purchase bonds of these BB-rated borrowers at very
compelling coupon levels.
The Fund
-------------------------------------------------------------------------------
PERFORMANCE FOR THE PAST SIX MONTHS
- During the six months ended March 31, 2000, the Fund's Class A shares had a
total return of 7.21%. This return resulted from an increase in net asset
value (NAV) to $8.33 per share on March 31, 2000 from $8.16 on September 30,
1999 and the reinvestment of $0.41 in dividends.(1)
- The Fund's Class I shares had a total return of 7.39% during the period, the
result of an increase in NAV to $9.92 per share from $9.71 per share and the
reinvestment of $0.4965 in dividends.
- Based on the Fund's most recent distributions and NAVs on March 31, 2000 of
$8.33 per share for Class A and $9.92 for Class I, the Class A and Class I
distribution rates were 9.82% and 9.98%, respectively.(2) The SEC 30-day
yields for Class A and I shares at March 31, 2000 were 9.84% and 10.37%.(3)
RECENT FUND DEVEOPMENTS
- The Fund outperformed the average return of its High Current Yield
Classification peer group during the six months ended March 31, 2000,
according to Lipper Inc., a nationally recognized monitor of mutual fund
performance.(4)
- International wireline communication services constituted the Fund's largest
sector weighting at March 31. The Fund emphasized European companies,
including Versatel Telecom BV, a leading provider of voice, data and Internet
services in Belgium and The Netherlands. When completed, the company's
advanced fiber optic network will enable it to offer an expanded array of
broadband services.
- The Fund maintained a large exposure to the broadcast and cable sectors.
The Fund's largest cable holding was Telewest Communications PLC, a U.K.-based
operator. Through an aggressive acquisition strategy, the company owns, wholly
or in part, 41 cable franchises, representing 33% of the U.K. cable audience.
- Amid rising energy prices and an increase in exploration activity, the Fund
had selected investments in the energy services area. R&B Falcon Corp. is
among the gas industry's largest drilling companies, operating a fleet of
140 rigs wordwide. Falcon's units are currently active in North America, South
America, Europe, Africa and the Pacific.
- The Fund diversified into companies that are building the telecom
infrastructure. Those investments included Spectrasite Holdings, Inc. and
Crown Castle, which own and operate cellular towers, and PSINet, Inc. and
Verio, Inc., Internet service providers that appear to have a fast-growing
customer base among businesses.
----------------------------------------------------------------------------
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.
YIELD WILL VARY.
----------------------------------------------------------------------------
-------------------------------------------------------------------------------
FUND INFORMATION
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(5) CLASS A CLASS I
---------------------------------------------------------------------------------
<S> <C> <C>
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE)
---------------------------------------------------------------------------------
One Year 8.66% N.A.
Five Years 11.73 N.A.
Ten Years 12.49 N.A.
Life of Fund+ 10.20 6.92%++
SEC AVERAGE ANNUAL TOTAL RETURNS (INCLUDING 4.75% SALES CHARGE FOR CLASS A SHARES)
----------------------------------------------------------------------------------
One Year 3.51% N.A.
Five Years 10.64 N.A.
Ten Years 11.94 N.A.
Life of Fund+ 10.00 6.92%++
</TABLE>
+ Inception dates: Class A: 6/15/72; Class I: 7/1/99
++ Returns for Class I are cumulative total returns.
<TABLE>
<CAPTION>
TEN LARGEST HOLDINGS(6)
----------------------------------------------------------------------------------
<S> <C>
Nextel Partners, Inc. 2.6%
Telewest Communication PLC 2.2
Hollywood Casino Corp. 1.8
Spectrasite Holdings, Inc. 1.8
R&B Falcon Corp. 1.8
United Pan-Europe Communications 1.6
Versatel Telecom BV 1.6
Global Crossing Holding Ltd. 1.5
PSINet, Inc. 1.4
Carrier1 International 1.4
</TABLE>
(1) This return does not include the Fund's 4.75% maximum sales charge for
Class A shares. (2) The Fund's distribution rate represents actual
distributions paid to shareholders and is calculated daily by dividing the
last distribution per share (annualized) by the net asset value. (3) The
Fund's SEC yield is calculated by dividing the net investment income per
share for the 30-day period by the offering price at the end of the period
and annualizing the result. (4) It is not possible to invest directly in an
Index or Lipper Classification. (5) Returns are calculated by determining
the percentage change in net asset value with all distributions reinvested.
SEC returns reflect sales charge as noted. Shares redeemed within 3 months
of purchase, including exchanges, will be subject to a 1% early redemption
fee. (6) Ten largest holdings account for 17.7% of the Fund's investments,
determined by dividing the total market value of the holdings by the total
investments of the Fund. 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 INCOME FUND OF BOSTON AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
CORPORATE BONDS & NOTES -- 79.5%
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Aerospace and Defense -- 0.5%
------------------------------------------------------------------------------
Dunlop Stand Aero Holdings, Sr. Notes,
11.875%, 5/15/09 $ 1,100 $ 1,116,500
Transdigm, Inc., 10.375%, 12/1/08 1,700 1,368,500
------------------------------------------------------------------------------
$ 2,485,000
------------------------------------------------------------------------------
Airlines -- 0.7%
------------------------------------------------------------------------------
Northwest Airlines, Inc.,
7.875%, 3/15/08 $ 4,290 $ 3,587,680
------------------------------------------------------------------------------
$ 3,587,680
------------------------------------------------------------------------------
Apparel -- 1.2%
------------------------------------------------------------------------------
Coyne International Enterprises,
Sr. Sub. Notes, 11.25%, 6/1/08 $ 840 $ 684,600
Hosiery Corp. of America, Inc.,
Sr. Sub. Notes, 13.75%, 8/1/02 1,700 1,774,375
William Carter Co., Sr. Sub. Notes,
10.375%, 12/1/06 3,715 3,139,175
------------------------------------------------------------------------------
$ 5,598,150
------------------------------------------------------------------------------
Auto and Parts -- 1.1%
------------------------------------------------------------------------------
Holley Performance Products ,
12.25%, 9/15/07 $ 1,000 $ 980,000
J.L. French Automative Casting,
11.50%, 6/1/09 1,850 1,822,250
Talon Automotive Group, Sr. Sub. Notes,
9.625%, 5/1/08 2,550 1,262,250
Tenneco Automotive, Inc.,
11.625%, 10/15/09 1,500 1,470,000
------------------------------------------------------------------------------
$ 5,534,500
------------------------------------------------------------------------------
Broadcasting and Cable -- 10.5%
------------------------------------------------------------------------------
ACME Television Services, Inc., 10.875%
(0% until 2000), 9/30/04 $ 2,000 $ 1,780,000
Charter Communication Holdings LLC,
Sr. Disc. Notes, 11.75% (0% until
2005), 1/15/10(1) 1,750 973,437
Charter Communication Holdings LLC,
Sr. Notes, 8.625%, 4/1/09 1,750 1,553,125
Charter Communication Holdings LLC,
Sr. Notes, 10.00%, 4/1/09(1) 500 485,000
Diamond Cable Communications Co.,
Sr. Disc. Notes, 11.75% (0% until
2000), 12/15/05 1,000 960,000
EchoStar DBS Corp., Sr. Notes,
9.375%, 2/1/09 3,250 3,152,500
Golden Sky DBS, Inc., Sr. Disc. Notes,
13.50% (0% until 2004), 3/1/07 2,855 1,927,125
Golden Sky Systems, 12.375%, 8/1/06 2,185 2,414,425
Muzak Holdings LLC, 9.875%, 3/15/09 2,100 2,026,500
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Broadcasting and Cable (continued)
------------------------------------------------------------------------------
Muzak Holdings LLC, Sr. Disc. Notes,
13.00% (0% until 2004), 3/15/10 $ 2,812 $ 1,602,840
NTL Communications Corp., Sr. Notes,
9.25%, 11/15/06(1) EUR 1,500 1,415,962
NTL Communications Corp., Sr. Notes,
9.75%, 4/15/09 GBP 2,000 1,818,756
NTL Communications Corp., Sr. Notes,
9.875%, 11/15/09(1) EUR 2,100 1,962,222
NTL Communications Corp., Sr. Notes,
12.375% (0% until 2003), 10/1/08 725 469,437
Ono Finance PLC, 13.00%, 5/1/09(1) 3,440 3,491,600
Ono Finance PLC, 13.00%, 5/1/09(1) EUR 1,200 1,207,521
Pegasus Communications Corp.,
Sr. Notes, 9.75%, 12/1/06 1,000 965,000
Pegasus Communications Corp.,
Sr. Notes, 12.50%, 8/1/07(1) 1,440 1,562,400
RCN Corp., Sr. Disc. Notes, 9.80%
(0% until 2003), 2/15/08 750 438,750
RCN Corp., Sr. Disc. Notes, 11.125%
(0% until 2002), 10/15/07 1,250 806,250
Telemundo Holdings, Inc., Sr. Disc.
Notes, 11.50% (0% until 2003), 8/15/08 2,200 1,424,500
Telewest Communication PLC, Debs.,
9.625%, 10/1/06 75 72,750
Telewest Communication PLC, Debs.,
11.00% (0% until 2000), 10/1/07 2,610 2,453,400
Telewest Communication PLC, Sr. Disc.
Notes, 9.875% (0% until 2004),
4/15/09(1) GBP 6,175 6,107,989
Telewest Communication PLC, Sr. Notes,
9.875%, 2/1/10(1) GBP 1,275 2,018,879
United Pan-Europe Communications,
Sr. Disc. Notes, 13.375%
(0% until 2004), 11/1/09(1) 6,250 3,218,750
United Pan-Europe Communications,
Sr. Notes, 10.875%, 11/1/07(1) 250 233,750
United Pan-Europe Communications,
Sr. Notes, 10.875%, 11/1/07(1) EUR 750 713,372
United Pan-Europe Communications,
Sr. Notes, 11.25%, 11/1/09(1) EUR 2,460 2,345,753
United Pan-Europe Communications,
Sr. Notes, 11.25%, 2/1/10(1) 1,375 1,326,875
------------------------------------------------------------------------------
$ 50,928,868
------------------------------------------------------------------------------
Business Services - Miscellaneous -- 1.1%
------------------------------------------------------------------------------
AP Holdings, Inc., Sr. Disc. Notes,
11.25% (0% until 2003), 3/15/08 $ 2,450 $ 502,250
Apcoa, Inc., Guaranteed Sr. Sub. Notes,
9.25%, 3/15/08 830 461,687
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Business Services - Miscellaneous (continued)
------------------------------------------------------------------------------
Federal Data Corp., Sr. Sub. Notes,
10.125%, 8/1/05 $ 1,185 $ 773,212
Intertek Finance PLC, Sr. Sub. Notes,
10.25%, 11/1/06 1,400 1,169,000
Richmont Marketing Special,
10.125%, 12/15/07 4,445 2,333,625
------------------------------------------------------------------------------
$ 5,239,774
------------------------------------------------------------------------------
Business Services - Rental & Leasing -- 2.8%
------------------------------------------------------------------------------
Anthony Crane Rental LP, Guaranteed
Sr. Notes, 10.375%, 8/1/08 $ 1,000 $ 805,000
NationsRent, Inc., Guaranteed Sr. Sub.
Notes, 10.375%, 12/15/08 1,400 1,256,500
Neff Corp., 10.25%, 6/1/08 1,950 1,730,625
Neff Corp., Guaranteed Sr. Sub. Notes,
10.25%, 6/1/08 850 754,375
Spectrasite Holdings, Inc., Sr. Disc.
Notes, 11.25% (0% until 2004), 4/15/09 5,100 2,652,000
Spectrasite Holdings, Inc., Sr. Disc.
Notes, 12.00% (0% until 2003), 7/15/08 1,150 695,750
Spectrasite Holdings, Inc., Sr. Disc.
Notes, 12.875% (0% until 2005),
3/15/10(1) 4,580 2,393,050
Spectrasite Holdings, Inc., Sr. Notes,
10.75%, 3/15/10(1) 3,400 3,238,500
------------------------------------------------------------------------------
$ 13,525,800
------------------------------------------------------------------------------
Chemicals -- 1.4%
------------------------------------------------------------------------------
PCI Chemicals Canada, Inc.,
9.25%, 10/15/07 $ 3,000 $ 2,475,000
Sovereign Specialty Chemicals, Sr. Sub.
Notes, 11.875%, 3/15/10(1) 2,000 1,980,000
Sterling Chemicals Holdings, Inc.,
Sr. Sub. Notes, 11.25%, 4/1/07 250 204,375
Sterling Chemicals Holdings, Inc.,
Sr. Sub. Notes, 11.75%, 8/15/06 2,750 2,337,500
------------------------------------------------------------------------------
$ 6,996,875
------------------------------------------------------------------------------
Consumer Products -- 1.0%
------------------------------------------------------------------------------
Amscan Holdings, Inc., Sr. Sub. Notes,
9.875%, 12/15/07 $ 1,120 $ 980,000
Glenoit Corp., Sr. Sub. Notes,
11.00%, 4/15/07 2,400 684,000
Icon Health and Fitness, Inc.,
12.00%, 9/27/05(1) 355 195,360
Polaroid Corp., Sr. Notes,
11.50%, 2/15/06 2,500 2,562,500
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Consumer Products (continued)
------------------------------------------------------------------------------
Weight Watchers International, Inc.,
Sr. Sub. Notes, 13.00%, 10/1/09(1) $ 600 $ 615,000
------------------------------------------------------------------------------
$ 5,036,860
------------------------------------------------------------------------------
Containers and Packaging -- 0.5%
------------------------------------------------------------------------------
Consumers International, Inc.,
Sr. Notes, 10.25%, 4/1/05 $ 985 $ 674,725
Stone Container Corp., Sr. Notes,
12.58%, 8/1/16 1,800 1,917,000
------------------------------------------------------------------------------
$ 2,591,725
------------------------------------------------------------------------------
Drugs -- 1.0%
------------------------------------------------------------------------------
King Pharmaceutical, Inc.,
10.75%, 2/15/09 $ 1,250 $ 1,243,750
Warner Chilcott, Inc.,
12.625%, 2/15/08(1) 3,675 3,629,062
------------------------------------------------------------------------------
$ 4,872,812
------------------------------------------------------------------------------
Electronic Equipment -- 0.8%
------------------------------------------------------------------------------
Cherokee International, Sr. Sub. Notes,
10.50%, 5/1/09 $ 1,625 $ 1,344,687
Viasystems, Inc., Sr. Sub. Notes,
9.75%, 6/1/07 900 760,500
Viasystems, Inc., Sr. Sub. Notes, Series
B, 9.75%, 6/1/07 895 756,275
Wavetek Corp., Sr. Sub. Notes,
10.125%, 6/15/07 840 928,200
------------------------------------------------------------------------------
$ 3,789,662
------------------------------------------------------------------------------
Entertainment -- 1.3%
------------------------------------------------------------------------------
Marvel Enterprise, Inc., 12.00%, 6/15/09 $ 2,963 $ 2,533,365
Premier Parks, Inc., Sr. Notes,
9.75%, 6/15/07 1,625 1,529,531
Regal Cinemas, Inc., Sr. Sub. Notes,
8.875%, 12/15/10 2,860 1,072,500
Regal Cinemas, Inc., Sr. Sub. Notes,
9.50%, 6/1/08 2,590 1,100,750
------------------------------------------------------------------------------
$ 6,236,146
------------------------------------------------------------------------------
Financial Services -- 0.2%
------------------------------------------------------------------------------
Willis Corroon Corp., 9.00%, 2/1/09 $ 1,600 $ 1,192,000
------------------------------------------------------------------------------
$ 1,192,000
------------------------------------------------------------------------------
Foods -- 2.0%
------------------------------------------------------------------------------
B & G Foods, Inc., Sub. Notes,
9.625%, 8/1/07 $ 1,860 $ 1,515,900
Del Monte Corp., Sr. Notes,
12.25%, 4/15/07 2,820 2,961,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Foods (continued)
------------------------------------------------------------------------------
Del Monte Foods Co., Sr. Disc. Notes,
12.50% (0% until 2002), 12/15/07 $ 875 $ 656,250
Luigino's, Inc., Sr. Sub. Notes,
10.00%, 2/1/06 825 688,875
Premier International Foods, Sr. Notes,
12.00%, 9/1/09(1) 4,188 3,957,660
------------------------------------------------------------------------------
$ 9,779,685
------------------------------------------------------------------------------
Health Services -- 0.2%
------------------------------------------------------------------------------
Lifepoint Hospitals Holding,
10.75%, 5/15/09 $ 830 $ 834,150
------------------------------------------------------------------------------
$ 834,150
------------------------------------------------------------------------------
Information Technology Services -- 8.0%
------------------------------------------------------------------------------
Covad Communication Group, Sr. Notes,
12.00%, 2/15/10(1) $ 4,125 $ 3,774,375
Cybernet Internet Services
International, Inc., Sr. Notes,
14.00%, 7/1/09 1,675 1,314,875
Diva Systems Corp., Sr. Notes, 12.625%
(0% until 2003), 3/1/08 2,250 1,293,750
Equinix, Inc., 13.00%, 12/1/07 1,500 1,567,500
Exodus Communications, Inc., Sr. Notes,
10.75%, 12/15/09 1,312 1,305,440
Exodus Communications, Inc., Sr. Notes,
10.75%, 12/15/09(1) EUR 844 841,201
Exodus Communications, Inc., Sr. Notes,
11.25%, 7/1/08 4,810 4,810,000
Globix Corp., Sr. Notes,
12.50%, 2/1/10(1) 3,500 3,237,500
IPC Information Systems, Sr. Disc.
Notes, 10.875% (0% until 2001), 5/1/08 1,750 1,529,062
Northpoint Communication Group, Inc.,
12.875%, 2/15/10(1) 4,875 4,363,125
PSINet, Inc., Sr. Notes,
10.50%, 12/1/06(1) 500 480,000
PSINet, Inc., Sr. Notes,
10.50%, 12/1/06(1) EUR 1,200 1,161,520
PSINet, Inc., Sr. Notes, 11.00%, 8/1/09 3,425 3,339,375
PSINet, Inc., Sr. Notes, 11.00%, 8/1/09 EUR 1,000 967,933
PSINet, Inc., Sr. Notes,
11.50%, 11/1/08 1,025 1,030,125
Rhythms NetConnections, Sr. Notes,
14.00%, 2/15/10(1) 2,000 1,730,000
Verio, Inc., Sr. Notes,
10.625%, 11/15/09(1) 2,500 2,437,500
Verio, Inc., Sr. Notes, 11.25%, 12/1/08 3,060 3,044,700
Verio, Inc., Sr. Notes, 13.50%, 6/15/04 800 863,000
------------------------------------------------------------------------------
$ 39,090,981
------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Lodging and Gaming -- 5.3%
------------------------------------------------------------------------------
HMH Properties, 7.875%, 8/1/08 $ 1,787 $ 1,514,483
Hollywood Casino Corp., 11.25%, 5/1/07 1,400 1,407,000
Hollywood Casino Corp., 12.414%, 5/1/06 4,375 4,528,125
Hollywood Casino Corp., First Mortgage
Bonds, 13.00%, 8/1/06(1) 2,850 3,035,250
Horseshoe Gaming Holding Corp.,
8.625%, 5/15/09 687 630,323
Majestic Star LLC, 10.875%, 7/1/06 1,750 1,636,250
Mandalay Resort Group, Sr. Sub. Notes,
9.25%, 12/1/05 2,300 2,196,500
Sun International Hotels,
8.625%, 12/15/07 1,500 1,372,500
Sun International Hotels, Sr. Sub.
Notes, 9.00%, 3/15/07 4,475 4,049,875
Trump Atlantic City Associates, Inc.,
11.25%, 5/1/06 2,813 1,891,743
Waterford Gaming LLC, Sr. Notes,
9.50%, 3/15/10(1) 3,569 3,408,395
------------------------------------------------------------------------------
$ 25,670,444
------------------------------------------------------------------------------
Manufacturing -- 0.6%
------------------------------------------------------------------------------
Blount, Inc., 13.00%, 8/1/09 $ 1,000 $ 1,027,500
Roller Bearing Holdings Co., Sr. Disc.
Notes, 13.00% (0% until 2002),
6/15/09(1) 3,467 1,811,508
------------------------------------------------------------------------------
$ 2,839,008
------------------------------------------------------------------------------
Oil and Gas - Equipment and Services -- 2.5%
------------------------------------------------------------------------------
DI Industries, Inc., (Grey Wolf, Inc.),
Sr. Notes, 8.875%, 7/1/07 $ 2,876 $ 2,617,160
Grant Geophysical, Inc., Sr. Notes,
9.75%, 2/15/08 1,000 635,000
Key Energy Services, Inc.,
14.00%, 1/15/09 1,000 1,085,000
R&B Falcon Corp., 9.50%, 12/15/08 2,210 2,132,650
R&B Falcon Corp., 10.25%, 5/15/03 3,250 3,217,500
RBF Finance Co., 11.375%, 3/15/09 800 852,000
Universal Compression, Inc., Sr. Disc.
Notes, 9.875% (0% until 2003), 2/15/08 2,350 1,351,250
------------------------------------------------------------------------------
$ 11,890,560
------------------------------------------------------------------------------
Oil and Gas - Exploration and Development -- 0.3%
------------------------------------------------------------------------------
Comstock Resources, Inc., 11.25%, 5/1/07 $ 1,350 $ 1,316,250
------------------------------------------------------------------------------
$ 1,316,250
------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Oil and Gas - Exploration and Production -- 1.7%
------------------------------------------------------------------------------
Chesapeake Energy Corp., 9.125%, 4/15/06 $ 1,100 $ 979,000
Chesapeake Energy Corp., Sr. Notes,
7.875%, 3/15/04 330 295,350
Chesapeake Energy Corp., Sr. Notes,
8.50%, 3/15/12 2,120 1,727,800
Energy Corp. of America, Sr. Sub. Notes,
9.50%, 5/15/07 390 282,750
Gothic Production Corp.,
11.125%, 5/1/05 4,000 3,420,000
Plains Resources, Inc., Sr. Sub. Notes,
10.25%, 3/15/06 250 241,250
Plains Resources, Inc., Sr. Sub. Notes,
10.25%, 3/15/06(1) 1,250 1,206,250
------------------------------------------------------------------------------
$ 8,152,400
------------------------------------------------------------------------------
Oil and Gas - Refining -- 0.1%
------------------------------------------------------------------------------
Western Gas Resources, 10.00%, 6/15/09 $ 300 $ 304,500
------------------------------------------------------------------------------
$ 304,500
------------------------------------------------------------------------------
Packaging -- 0.7%
------------------------------------------------------------------------------
Clondalkin Industries, Sr. Notes,
10.625%, 1/15/10(1) EUR $ 375 $ 368,366
IFCO Systems NV, Sr. Sub. Notes,
10.625%, 3/15/10(1) EUR 1,628 1,607,000
Kappa Beheer BV, 10.625%, 7/15/09 EUR 1,500 1,536,355
------------------------------------------------------------------------------
$ 3,511,721
------------------------------------------------------------------------------
Paper and Forest Products -- 0.3%
------------------------------------------------------------------------------
Indah Kiat Finance Mauritius, Sr. Unsec.
Notes, 10.00%, 7/1/07 $ 850 $ 595,000
Pacifica Papers, Inc., 10.00%, 3/15/09 500 487,500
Pindo Deli Finance Mauritius, Ltd.,
Guaranteed Sr. Notes, 10.75%, 10/1/07 600 430,500
------------------------------------------------------------------------------
$ 1,513,000
------------------------------------------------------------------------------
Printing and Business Products -- 1.1%
------------------------------------------------------------------------------
MDC Communications Corp., Sr. Sub.
Notes, 10.50%, 12/1/06 $ 3,900 $ 3,744,000
Merrill Corp., 12.00%, 5/1/09(1) 1,750 1,688,750
------------------------------------------------------------------------------
$ 5,432,750
------------------------------------------------------------------------------
Publishing -- 0.3%
------------------------------------------------------------------------------
American Lawyer Media Corp., Sr. Disc.
Notes, 12.25% (0% to 2002), 12/15/08 $ 730 $ 469,025
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Publishing (continued)
------------------------------------------------------------------------------
Von Hoffman Press, Inc., Sr. Sub. Notes,
10.875%, 5/15/07(1) $ 1,275 $ 1,204,875
------------------------------------------------------------------------------
$ 1,673,900
------------------------------------------------------------------------------
Restaurants -- 1.0%
------------------------------------------------------------------------------
AFC Enterprises, Inc., Sr. Sub Notes,
10.25%, 5/15/07 $ 2,400 $ 2,340,000
Sbarro, Inc., Sr. Notes,
11.00%, 9/15/09 2,500 2,512,500
------------------------------------------------------------------------------
$ 4,852,500
------------------------------------------------------------------------------
Retail - Food and Drug -- 1.2%
------------------------------------------------------------------------------
Pantry, Inc., Sr. Sub. Notes,
10.25%, 10/15/07 $ 4,270 $ 3,778,950
Pathmark Stores, Inc., Sr. Sub. Notes,
9.625%, 5/1/03 3,000 2,175,000
------------------------------------------------------------------------------
$ 5,953,950
------------------------------------------------------------------------------
Retail - General -- 2.1%
------------------------------------------------------------------------------
Advance Holding Corp., Sr. Debs.,
12.875% (0% until 2003), 4/15/09 $ 1,000 $ 496,250
Advance Stores Co., Inc., Sr. Sub.
Notes, 10.25%, 4/15/08 1,600 1,272,000
Ames Department Stores, Sr. Notes,
10.00%, 4/15/06 6,100 5,734,000
Kindercare Learning Ctrs., Inc.,
Sr. Sub. Notes, 9.50%, 2/15/09 1,850 1,692,750
Tuesday Morning Corp., Sr. Sub. Notes,
11.00%, 12/15/07 1,015 1,009,925
------------------------------------------------------------------------------
$ 10,204,925
------------------------------------------------------------------------------
Semiconductors -- 2.7%
------------------------------------------------------------------------------
Amkor Technologies, Inc., Sr. Notes,
9.25%, 5/1/06 $ 2,650 $ 2,570,500
Asat Finance LLC, 12.50%, 11/1/06(1) 900 949,500
Asat Finance LLC, 12.50%, 11/1/06(1) 3,900 4,660,500
Intersil Corp., 13.25%, 8/15/09 810 923,400
SCG Holding Corp., 12.00%, 8/1/09 3,750 4,031,250
------------------------------------------------------------------------------
$ 13,135,150
------------------------------------------------------------------------------
Transportation -- 0.8%
------------------------------------------------------------------------------
Budget Group, Inc., Sr. Notes,
9.125%, 4/1/06 $ 1,940 $ 1,561,700
MTL, Inc., 10.498%, 6/15/06 400 334,000
Pacer International, Inc.,
11.75%, 6/1/07 1,886 1,876,570
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Transportation (continued)
------------------------------------------------------------------------------
Worldwide Flight Service,
12.25%, 8/15/07 $ 250 $ 235,000
------------------------------------------------------------------------------
$ 4,007,270
------------------------------------------------------------------------------
Waste Management -- 0.3%
------------------------------------------------------------------------------
Stericycle, Inc. , 12.375%, 11/15/09 $ 1,200 $ 1,236,000
------------------------------------------------------------------------------
$ 1,236,000
------------------------------------------------------------------------------
Wireless Communication Services -- 7.2%
------------------------------------------------------------------------------
Alamosa PCS Holdings, Inc. , 12.875%
(0% until 2005), 2/15/10 $ 3,875 $ 1,898,750
Clearnet Communications, Inc.,
10.125%, 7/7/07(1) 1,500 1,500,000
Dobson/Sygnet Communications, Inc.,
Sr. Notes, 12.25%, 12/15/08 375 388,125
Dolphin Telecom PLC, Sr. Disc. Notes,
14.00% (0% until 2004), 5/15/09 5,225 1,959,375
Leap Wireless, 12.50%, 4/15/10(1) 2,500 2,512,500
Nextel Communications, Inc., Sr. Disc.
Notes, 10.65% (0% until 2002), 9/15/07 2,160 1,582,200
Nextel Communications, Inc., Sr. Notes,
9.375%, 11/15/09 4,965 4,592,625
Nextel International, Inc., Sr. Disc.
Notes, 12.125% (0% until 2003), 4/15/08 1,500 933,750
Nextel Partners, Inc., Sr. Notes,
11.00%, 3/15/10(1) 4,575 4,449,188
PTC International Finance II SA,
11.25%, 12/1/09(1) 625 637,500
PTC International Finance II SA,
11.25%, 12/1/09(1) EUR 1,125 1,142,031
TeleCorp PCS, Inc., 8.50%, 10/15/09 3,500 2,730,000
Teligent, Inc., Sr. Notes,
11.50%, 12/1/07 4,250 3,846,250
US Unwired, Inc., Sr. Disc. Notes,
13.375% (0% until 2004), 11/1/09(1) 2,600 1,397,500
Williams Communications Group, Inc.,
Sr. Notes, 10.875%, 10/1/09 2,000 1,985,000
Winstar Communications, Inc., Sr. Disc.
Notes, 14.00% (0% until 2000), 10/15/05 3,350 3,433,750
------------------------------------------------------------------------------
$ 34,988,544
------------------------------------------------------------------------------
Wireline Communication Services -
International -- 11.8%
------------------------------------------------------------------------------
Call-Net Enterprises, Inc., Sr. Notes,
8.00%, 8/15/08 $ 1,000 $ 705,000
Call-Net Enterprises, Inc., Sr. Notes,
9.375%, 5/15/09 688 519,440
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Wireline Communication Services -
International (continued)
------------------------------------------------------------------------------
Carrier1 International SA, Sr. Notes,
13.25%, 2/15/09 $ 4,125 $ 4,300,313
Completel Europe NV, 14.00% (0% until
2004), 2/15/09 1,960 989,800
Esat Telecom Group PLC, Sr. Notes,
11.875%, 12/1/08 550 643,500
Esat Telecom Group PLC, Sr. Notes,
12.50% (0% until 2002), 2/1/07 360 325,800
Esprit Telecom Group PLC, Sr. Notes,
11.50%, 12/15/07 3,150 2,882,250
Esprit Telecom Group PLC, Sr. Notes,
11.50%, 12/15/07 DEM 2,500 1,139,242
Flag Telecom Holdings Ltd., Sr. Notes,
11.625%, 3/30/10(1) EUR 3,930 3,653,326
Global Crossing Holding Ltd.,
Sr. Notes, 9.125%, 11/15/06(1) 4,750 4,536,250
Global TeleSystems Group, Inc.,
11.00%, 12/1/09 EUR 1,250 1,146,395
Globenet Communication Group Ltd.,
Sr. Notes, 13.00%, 7/15/07 3,675 3,638,250
GT Group Telecom, 13.25% (0% until
2005), 2/1/10(1) 5,650 3,135,750
Jazztel PLC, Sr. Notes,
13.25%, 12/15/09(1) EUR 1,937 1,921,295
Jazztel PLC, Sr. Notes, 14.00%, 4/1/09 EUR 2,000 2,012,535
Level 3 Communications, Inc., Sr. Disc.
Notes, 12.875% (0% until 2005),
3/15/10(1) 750 376,875
Level 3 Communications, Inc.,
Sr. Notes, 10.75%, 3/15/08(1) EUR 3,000 2,791,734
Level 3 Communications, Inc.,
Sr. Notes, 11.25%, 3/15/10(1) 2,000 1,930,000
Level 3 Communications, Inc.,
Sr. Notes, 11.25%, 3/15/10(1) EUR 1,750 1,651,956
Primus Telecom Group, Sr. Notes,
11.25%, 1/15/09 750 708,750
Primus Telecom Group, Sr. Notes,
11.75%, 8/1/04 1,150 1,098,250
RSL Communications PLC, Guaranteed
Sr. Notes, 10.50%, 11/15/08 500 425,000
RSL Communications PLC, Sr. Notes,
12.25%, 11/15/06 1,015 1,004,850
RSL Communications PLC, Sr. Notes,
12.875%, 3/1/10(1) EUR 2,700 2,561,670
Tele1 Europe BV, Sr. Notes,
11.875%, 12/1/09(1) EUR 2,469 2,437,151
Tele1 Europe BV, Sr. Notes,
13.00%, 5/15/09 950 978,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Wireline Communication Services -
International (continued)
------------------------------------------------------------------------------
Versatel Telecom BV, Sr. Notes,
11.875%, 7/15/09 $ 1,255 $ 1,251,863
Versatel Telecom BV, Sr. Notes,
13.25%, 5/15/08 2,790 2,908,575
Versatel Telecom BV, Sr. Notes,
13.25%, 5/15/08 1,540 1,605,450
Viatel, Inc., Sr. Disc. Notes, 12.50%
(0% until 2003), 4/15/08 1,260 696,150
Viatel, Inc., Sr. Notes,
11.25%, 4/15/08 520 481,000
Viatel, Inc., Sr. Notes,
11.50%, 3/15/09 3,200 3,008,000
------------------------------------------------------------------------------
$ 57,464,920
------------------------------------------------------------------------------
Wireline Communication Services -
North America -- 5.2%
------------------------------------------------------------------------------
Allegiance Telecom, Inc., Sr. Notes,
12.875%, 5/15/08 $ 2,345 $ 2,579,500
Focal Communications Corp., Sr. Notes,
11.875%, 1/15/10(1) 1,125 1,130,625
GST Equipment Funding, Sr. Notes,
13.25%, 5/1/07 1,375 962,500
GST Telecommunications, Sr. Sub. Notes,
12.75%, 11/15/07 800 668,000
ICG Holdings, Inc., 12.50% (0% until
2001), 5/1/06 5,075 4,148,812
Intermedia Communications, Inc.,
Sr. Disc. Notes, 12.25%
(0% until 2004), 3/1/09 2,250 1,361,250
Intermedia Communications, Inc.,
Sr. Disc. Notes, 12.50%
(0% until 2001), 5/15/06 2,335 2,183,225
Metromedia Fiber Network, Sr. Notes,
10.00%, 11/15/08 2,000 1,910,000
MGC Communications, Inc., Sr. Notes,
13.00%, 4/1/10(1) 4,550 4,413,500
Nextlink Communications, Inc.,
Sr. Disc. Notes, 12.125%
(0% until 2004), 12/1/09(1) 5,900 3,127,000
Nextlink Communications, Inc.,
Sr. Notes, 12.50%, 4/15/06 1,680 1,738,800
World Access, Inc., Sr. Notes,
13.25%, 1/15/08 985 861,875
------------------------------------------------------------------------------
$ 25,085,087
------------------------------------------------------------------------------
Total Corporate Bonds & Notes
(identified cost $413,013,006) $386,553,547
------------------------------------------------------------------------------
</TABLE>
COMMON STOCKS, WARRANTS AND RIGHTS -- 1.9%
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Broadcasting and Cable -- 0.1%
------------------------------------------------------------------------------
Ono Finance PLC, Warrants(2)(3) 3,440 $ 0
Ono Finance PLC, Warrants(2)(3) 1,200 0
Pegasus Communications Corp., Common 2,729 383,850
UIH Australia/Pacific, Inc.,
Warrants(2)(3) 900 28,800
------------------------------------------------------------------------------
$ 412,650
------------------------------------------------------------------------------
Chemicals -- 0.0%
------------------------------------------------------------------------------
Sterling Chemicals Holdings, Inc.,
Common(2) 2,400 $ 13,498
------------------------------------------------------------------------------
$ 13,498
------------------------------------------------------------------------------
Consumer Products -- 0.0%
------------------------------------------------------------------------------
HF Holdings, Inc., Warrants(2)(3) 3,400 $ 0
------------------------------------------------------------------------------
$ 0
------------------------------------------------------------------------------
Electronic Equipment -- 0.0%
------------------------------------------------------------------------------
Jordan Telecommunications, Deferred
Contingent Cash Rights(2)(3) 700 $ 0
------------------------------------------------------------------------------
$ 0
------------------------------------------------------------------------------
Information Technology Services -- 0.0%
------------------------------------------------------------------------------
Cybernet Internet Services
International, Inc., Warrants(2)(3) 1,675 $ 20,100
Diva Systems Corp., Warrants(2)(3) 6,750 0
Verio Inc., Common(2) 3,534 159,251
------------------------------------------------------------------------------
$ 179,351
------------------------------------------------------------------------------
Lodging and Gaming -- 0.0%
------------------------------------------------------------------------------
Peninsula Gaming LLC, Warrants(2)(3) 6,338 $ 38,027
------------------------------------------------------------------------------
$ 38,027
------------------------------------------------------------------------------
Oil and Gas - Equipment and Services -- 0.1%
------------------------------------------------------------------------------
Key Energy Services, Inc.,
Warrants(2)(3) 1,000 $ 90,000
R&B Falcon Corp., Warrants(2) 1,600 512,000
------------------------------------------------------------------------------
$ 602,000
------------------------------------------------------------------------------
Semiconductors -- 0.2%
------------------------------------------------------------------------------
Intersil Corp., Warrants(2)(3)(4) 1,250 $ 717,151
------------------------------------------------------------------------------
$ 717,151
------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Transportation -- 0.0%
------------------------------------------------------------------------------
Worldwide Flight Service, Warrants(2)(3) 250 $ 0
------------------------------------------------------------------------------
$ 0
------------------------------------------------------------------------------
Wireline Communication Services -
International -- 1.4%
------------------------------------------------------------------------------
Carrier1 International SA, Common 5,500 $ 526,281
Carrier1 International SA,
Warrants(2)(3)(4) 4,125 2,100,817
Completel Europe NV, Warrants(2)(3) 19,600 1,372,000
Esat Telecom Group PLC, Common 4,138 178,231
Primus Telecom Group, Warrants,
Exp. 8/1/04(2)(3) 1,150 81,498
Tele1 Europe Holding AB-ADR, Common 19,567 374,219
Versatel Telecom BV, Warrants(2)(3)(4) 3,500 1,990,633
------------------------------------------------------------------------------
$ 6,623,679
------------------------------------------------------------------------------
Wireline Communication Services -
North America -- 0.1%
------------------------------------------------------------------------------
MGC Communications, Inc., Warrants,
Exp. 10/1/04(2)(4) 1,420 $ 475,163
World Access, Inc., Common 2,645 50,586
------------------------------------------------------------------------------
$ 525,749
------------------------------------------------------------------------------
Total Common Stocks, Warrants and Rights
(identified cost $1,644,125) $ 9,112,105
------------------------------------------------------------------------------
</TABLE>
PREFERRED STOCKS -- 6.5%
<TABLE>
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Apparel -- 0.0%
------------------------------------------------------------------------------
Cluett American Corp., 12.50% 85 $ 1,696
------------------------------------------------------------------------------
$ 1,696
------------------------------------------------------------------------------
Broadcasting and Cable -- 2.0%
------------------------------------------------------------------------------
Adelphia Communications Corp., 13% 12,000 $ 1,284,000
CSC Holdings, Inc., Series M, 11.125%
(PIK) 32,885 3,485,810
Granite Broadcasting Corp., 12.75% (PIK) 2,375 2,375,000
Pegasus Communications Corp., 12.75%
(PIK) 2,645 2,803,700
------------------------------------------------------------------------------
$ 9,948,510
------------------------------------------------------------------------------
<CAPTION>
SECURITY SHARES VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Business Services - Rental & Leasing -- 0.5%
------------------------------------------------------------------------------
Crown Castle International Corp., 12.75%
(PIK) 2,336 $ 2,336,000
------------------------------------------------------------------------------
$ 2,336,000
------------------------------------------------------------------------------
Machinery -- 0.0%
------------------------------------------------------------------------------
MMH Holdings, Inc., 12% (PIK) 456 $ 4,560
------------------------------------------------------------------------------
$ 4,560
------------------------------------------------------------------------------
Oil and Gas - Equipment and Services -- 0.7%
------------------------------------------------------------------------------
R&B Falcon Corp., 13.875% (PIK) 3,070 $ 3,377,000
------------------------------------------------------------------------------
$ 3,377,000
------------------------------------------------------------------------------
Wireless Communication Services -- 1.7%
------------------------------------------------------------------------------
Dobson Communications Corp., 12.25%
(PIK) 706 $ 698,940
Nextel Communications, Inc., 11.125%
(PIK) 1,493 1,433,280
Rural Cellular Corp., 11.375% (PIK) 2,813 2,841,130
Rural Cellular Corp., 12.25% 3,200 3,200,000
------------------------------------------------------------------------------
$ 8,173,350
------------------------------------------------------------------------------
Wireline Communication Services -
International -- 0.6%
------------------------------------------------------------------------------
Global Crossing Holding Ltd., 10.5%
(PIK) 2,800 $ 2,800,000
------------------------------------------------------------------------------
$ 2,800,000
------------------------------------------------------------------------------
Wireline Communication Services -
North America -- 1.0%
------------------------------------------------------------------------------
Intermedia Communications, Inc., 7% 45,000 $ 2,160,000
IXC Communications, Inc., Series B,
12.5% 2,702 2,864,120
Nextlink Communications, Inc., 14% (PIK) 215 11,180
------------------------------------------------------------------------------
$ 5,035,300
------------------------------------------------------------------------------
Total Preferred Stocks
(identified cost $31,033,989) $ 31,676,416
------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
COMMERCIAL PAPER -- 13.1%
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C> <C>
------------------------------------------------------------------------------
Associates Corp. of North America,
6.23%, 4/3/00 $16,778 $ 16,772,193
CIT Group Holdings, Inc., 6.28%, 4/3/00 16,778 16,772,146
Ford Motor Credit Corp., 5.90%, 4/6/00 15,000 14,943,458
Prudential Funding Corp., 5.91%, 4/4/00 15,000 14,948,288
------------------------------------------------------------------------------
Total Commercial Paper
(at amortized cost, $63,436,085) $ 63,436,085
------------------------------------------------------------------------------
Total Investments -- 101.0%
(identified cost $509,127,205) $490,778,153
------------------------------------------------------------------------------
Other Assets, Less Liabilities -- (1.0)% $ (4,661,640)
------------------------------------------------------------------------------
Net Assets -- 100.0% $486,116,513
------------------------------------------------------------------------------
</TABLE>
(PIK) - Payment in kind.
EUR - Euro Dollar
GBP - British Pound
DEM - Deutsche Mark
(1) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(2) Non-income producing security.
(3) Restricted security.
(4) Security valued at fair value using methods dertermined in good faith by
or at the direction of the Trustees.
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF MARCH 31, 2000
<S> <C>
Assets
------------------------------------------------------
Investments, at value
(identified cost, $509,127,205) $490,778,153
Cash 18,073
Foreign currency, at value
(cost $683,010) 642,957
Receivable for investments sold 5,463,284
Receivable for Fund shares sold 4,927,364
Interest receivable 10,056,013
Receivable for open forward foreign
currency contracts 1,372,828
------------------------------------------------------
TOTAL ASSETS $513,258,672
------------------------------------------------------
Liabilities
------------------------------------------------------
Payable for investments purchased $ 24,048,184
Dividends payable 1,890,152
Payable for Fund shares redeemed 953,748
Payable to affiliate for service fees 9,844
Accrued expenses 240,231
------------------------------------------------------
TOTAL LIABILITIES $ 27,142,159
------------------------------------------------------
NET ASSETS $486,116,513
------------------------------------------------------
Sources of Net Assets
------------------------------------------------------
Paid-in capital $499,919,961
Accumulated undistributed net realized
gain (computed on the basis of
identified cost) 1,830,036
Accumulated undistributed net investment
income 1,468,363
Net unrealized depreciation (computed on
the basis of identified cost) (17,101,847)
------------------------------------------------------
TOTAL $486,116,513
------------------------------------------------------
Class A Shares
------------------------------------------------------
NET ASSETS $482,978,746
SHARES OUTSTANDING 57,967,400
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 8.33
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of $8.33) $ 8.75
------------------------------------------------------
Class I Shares
------------------------------------------------------
NET ASSETS $ 3,137,767
SHARES OUTSTANDING 316,445
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.92
------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
MARCH 31, 2000
<S> <C>
Investment Income
-----------------------------------------------------
Interest $19,936,080
Dividends 1,542,699
Miscellaneous 301,132
-----------------------------------------------------
TOTAL INVESTMENT INCOME $21,779,911
-----------------------------------------------------
Expenses
-----------------------------------------------------
Investment adviser fee $ 1,228,286
Trustees fees and expenses 4,934
Service fees
Class A 268,664
Transfer and dividend disbursing agent
fees 194,069
Custodian fee 104,557
Registration fees 90,144
Legal and accounting services 26,410
Printing and postage 25,294
Miscellaneous 33,177
-----------------------------------------------------
TOTAL EXPENSES $ 1,975,535
-----------------------------------------------------
NET INVESTMENT INCOME $19,804,376
-----------------------------------------------------
Realized and Unrealized
Gain (Loss)
-----------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 6,554,084
Foreign currency and forward foreign
currency exchange
contract transactions 2,217,201
-----------------------------------------------------
NET REALIZED GAIN $ 8,771,285
-----------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(4,699,265)
Foreign currency and forward foreign
currency exchange contracts 1,755,321
-----------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(2,943,944)
-----------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 5,827,341
-----------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $25,631,717
-----------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
INCREASE (DECREASE) MARCH 31, 2000 YEAR ENDED
IN NET ASSETS (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
From operations --
Net investment income $ 19,804,376 $ 27,554,216
Net realized gain 8,771,285 412,584
Net change in unrealized
appreciation (depreciation) (2,943,944) 729,410
------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 25,631,717 $ 28,696,210
------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (19,258,033) $ (26,817,740)
Class I (38,228) (3,186)
------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (19,296,261) $ (26,820,926)
------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 192,058,600 $ 171,390,929
Class I 3,103,114 243,469
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 9,205,939 12,868,702
Class I 23,174 1,187
Cost of shares redeemed
Class A (55,770,290) (79,969,507)
Class I (202,384) (6,997)
------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ 148,418,153 $ 104,527,783
------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 154,753,609 $ 106,403,067
------------------------------------------------------------------------------
Net Assets
------------------------------------------------------------------------------
At beginning of period $ 331,362,904 $ 224,959,837
------------------------------------------------------------------------------
AT END OF PERIOD $ 486,116,513 $ 331,362,904
------------------------------------------------------------------------------
Accumulatd undistributed
net investement income
included in net assets
------------------------------------------------------------------------------
AT END OF PERIOD $ 1,468,363 $ 960,248
------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 8.160 $8.03 $8.70 $8.12 $7.92 $ 7.90
--------------------------------------------------------------------------------------------------
Income (loss) from operations
--------------------------------------------------------------------------------------------------
Net investment income $ 0.411 $0.83 $0.81 $0.79 $0.80 $ 0.82
Net realized and unrealized
gain (loss) 0.168 0.11 (0.70) 0.57 0.21 0.02
--------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.579 $0.94 $0.11 $1.36 $1.01 $ 0.84
--------------------------------------------------------------------------------------------------
Less distributions
--------------------------------------------------------------------------------------------------
From net investment income $ (0.409) $(0.81 ) $(0.78 ) $(0.77 ) $(0.80 ) $ (0.82)
In excess of net investment
income -- -- -- (0.01) (0.01) --
--------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.409) $(0.81 ) $(0.78 ) $(0.78 ) $(0.81 ) $ (0.82)
--------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 8.330 $8.16 $8.03 $8.70 $8.12 $ 7.92
--------------------------------------------------------------------------------------------------
TOTAL RETURN(1) 7.21% 11.97% 0.98% 17.68% 13.41% 11.25%
--------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $482,979 $331,130 $224,960 $207,522 $143,844 $106,414
Ratios (As a percentage of
average daily net assets):
Expenses 1.00%(2) 1.01% 1.04% 1.05% 1.07% 1.09%
Net investment income 10.02%(2) 9.97% 9.22% 9.32% 9.96% 10.50%
Portfolio Turnover 58% 132% 141% 105% 81% 84%
--------------------------------------------------------------------------------------------------
</TABLE>
(1) 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.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS I
------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ------------------------
(UNAUDITED) 1999(1)
<S> <C> <C>
--------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.710 $10.00
--------------------------------------------------------------------------
Income (loss) from operations
--------------------------------------------------------------------------
Net investment income $ 0.497 $ 0.25
Net realized and unrealized
gain (loss) 0.208 (0.29)(2)
--------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.705 $(0.04)
--------------------------------------------------------------------------
Less distributions
--------------------------------------------------------------------------
From net investment income $(0.495) $(0.25)
--------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.495) $(0.25)
--------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.920 $ 9.71
--------------------------------------------------------------------------
TOTAL RETURN(3) 7.39% (0.44)%
--------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 3,138 $ 233
Ratios (As a percentage of
average daily net assets):
Expenses 0.84%(4) 0.89%(4)
Net investment income 9.80%(4) 10.12%(4)
Portfolio Turnover 58% 132%
--------------------------------------------------------------------------
</TABLE>
(1) For the period from the commencement of offering of Class I shares, July
1, 1999, to September 30, 1999.
(2) The per share amount is not in accord with the net realized and
unrealized gain (loss) on investments for the period because of the
timing of sales of Fund shares and the amount of the per share realized
and unrealized gains and losses at such time.
(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 INCOME FUND OF BOSTON AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
-------------------------------------------
Eaton Vance Income Fund of Boston (the Trust), a Massachusetts business
trust, is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end, management investment company. The Trust offers two
classes of shares: Class A shares and Class I shares. Class A shares are
generally sold subject to a sales charge imposed at time of purchase; Class I
shares are sold at net asset value. Each class represents a pro rata interest
in the Trust, but votes separately on class-specific matters and (as noted
below) is subject to different expenses. Realized and unrealized gains and
losses are allocated daily to each class of shares based on the relative net
assets of each class to the total net assets of the Trust. Net investment
income, other than class specific expenses, is allocated daily to each class
of shares based upon the ratio of the value of each class' paid shares to the
total value of all paid shares. 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
Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
A Investment Valuations -- Investments listed on securities exchanges or NASDAQ
are valued at closing sale prices. Listed or unlisted investments for which
closing sale prices are not available are valued at the mean between the
latest bid and asked prices. Fixed income investments (other than short-term
obligations), including listed investments and investments for which price
quotations are available, will normally be valued on the basis of market
valuations furnished by a pricing service. Short-term obligations, maturing
in sixty days or less, are valued at amortized cost, which approximates
value. Investments for which there is no quotation or valuation are valued at
fair value using methods determined in good faith by or at the direction of
the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes. Dividend income is recorded on the ex-dividend date.
C Federal Taxes -- The Trust's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders all of its taxable income, including any net
realized gain on investments. Accordingly, no provision for federal income or
excise tax is necessary. At September 30, 1999, the Trust, for federal income
tax purposes, had a capital loss carryover of $4,490,056 which will reduce
the Trust's taxable income arising from future net realized gains on
investments, if any, to the extent permitted by the Internal Revenue Code,
and thus will reduce the amount of the distributions to shareholders which
would otherwise be necessary to relieve the Trust of any liability for
federal income or excise tax. Such capital loss carryover will expire on
September 30, 2000 ($2,042,401), 2003 ($1,177) and 2004 ($2,446,478). At
September 30, 1999 net capital losses of $2,038,773 attributable to security
transactions incurred after October 31, 1998, are treated as arising on the
first day of the Trust's current taxable year.
D 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.
E Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Trust. Pursuant to the custodian agreement, IBT receives a fee reduced
by credits which are determined based on the average daily cash balances the
Trust maintains with IBT. All significant credit balances used to reduce the
Trust's custodian fees are reported as a reduction of expenses on the
Statement of Operations. For the six months ended March 31, 2000, $1,646
credit balances were used to reduce the Trust's custodian fee.
F Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Gains and losses on securities sold are
determined on the basis of identified cost.
G 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 changes in 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.
15
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
H Interim Financial Statements -- The interim financial statements relating to
March 31, 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
-------------------------------------------
The net investment income of the Trust is determined daily, and substantially
all of the net investment income so determined is declared daily as a
dividend to shareholders of record at the time of declaration. Distributions
are paid monthly. Distributions of realized capital gains, if any, are made
at least annually. Shareholders may reinvest capital gain distributions in
additional shares of the Trust at the net asset value as of the ex-dividend
date. Distributions are paid in the form of additional shares of the Trust
or, at the election of the shareholder, in cash. The Trust 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 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 Trust shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 22,949,470 20,633,005
Issued to shareholders electing to
receive payments of distributions in
Fund shares 1,105,702 1,551,930
Redemptions (6,669,685) (9,633,789)
------------------------------------------------------------------------------
NET INCREASE 17,385,487 12,551,146
------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30,
CLASS I (UNAUDITED) 1999(1)
<S> <C> <C>
------------------------------------------------------------------------------
Sales 310,325 24,598
Issued to shareholders electing to
receive payments of distributions in
Fund shares 2,326 122
Redemptions (20,208) (718)
------------------------------------------------------------------------------
NET INCREASE 292,443 24,002
------------------------------------------------------------------------------
</TABLE>
(1) For the period from the commencement of offering of Class I shares,
July 1, 1999 to September 30, 1999.
4 Investment Adviser Fee and Other Transactions with Affiliates
-------------------------------------------
The investment adviser fee, computed at a monthly rate of 5/96 of 1% (0.625%
annually) of the Trust's average daily net assets, was earned by Eaton Vance
Management (EVM) as compensation for management and investment advisory
services rendered to the Trust. Except as to Trustees of the Trust who are
not members of EVM's organization, officers and Trustees receive remuneration
for their services to the Trust out of such investment adviser fee. The Fund
was informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM
and the Trust's principal underwriter, received approximately $143,564 of the
sales charge on sales of Class A shares during the six months ended
March 31, 2000. Certain officers and Trustees of the Trust are officers of
the above organizations.
5 Service Plan
-------------------------------------------
The Trust has in effect a service plan for Class A shares (the Plan). The
Plan authorizes the Trust to make payments of service fees to EVD, investment
dealers and other persons in amounts not exceeding 0.25% of the Trust's
average daily net assets attributable to Class A shares for each fiscal year.
The Trustees initially implemented the Plan by authorizing the Trust to make
quarterly payments of service fees to EVD and investment dealers equal to
0.25% per annum of the Trust's average daily net assets attributable to
Class A shares based on the value of Trust 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 Trust's average
daily net assets attributable to Class A shares for any fiscal year on shares
of the Trust sold on or after October 12, 1999. Service fee payments will be
made for personal services and/or the maintenance of shareholder accounts.
Service fee payments for the six months ended March 31, 2000 amounted to
$268,664 for Class A shares.
16
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
6 Financial Instruments
-------------------------------------------
The Trust regularly trades 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 Trust
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.
A summary of obligations under these financial instruments at March 31, 2000
is as follows:
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
<TABLE>
<CAPTION>
SALES
------------------------------------------------------------------------------------------
SETTLEMENT IN EXCHANGE FOR NET UNREALIZED
DATE(S) DELIVER (IN U.S. DOLLARS) APPRECIATION
<S> <C> <C> <C>
------------------------------------------------------------------------------------------
4/17/00- British Pound Sterling
5/22/00 7,531,083 $ 12,196,073 $ 178,768
4/17/00- Euro Dollar
6/19/00 38,824,809 38,525,170 1,208,928
------------------------------------------------------------------------------------------
$ 50,721,243 $ 1,387,696
------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PURCHASES
------------------------------------------------------------------------------------------
SETTLEMENT DELIVER NET UNREALIZED
DATE(S) IN EXCHANGE FOR (IN U.S. DOLLARS) DEPRECIATION
<S> <C> <C> <C>
------------------------------------------------------------------------------------------
4/17/00 British Pound Sterling
1,305,432 $ 2,095,665 $ (12,791)
4/17/00 Euro Dollar
941,026 904,952 (2,077)
------------------------------------------------------------------------------------------
$ 3,000,617 $ (14,868)
------------------------------------------------------------------------------------------
</TABLE>
7 Line of Credit
-------------------------------------------
The Trust participates with other portfolios and funds managed by Boston
Management Research (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 Trust 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 Trust did not have any significant borrowings or allocated fees
during the six months ended March 31, 2000.
8 Purchases and Sales of Investments
-------------------------------------------
The Trust invests primarily in debt securities. The ability of the issuers of
the debt securities held by the Trust to meet their obligations may be
affected by economic developments in a specific industry. Purchases and sales
of investments, other than U.S. Government securities and short-term
obligations, aggregated $322,857,873 and $207,411,586, respectively, for the
six months ended March 31, 2000.
9 Federal Income Tax Basis of Investments
-------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investment securities at March 31, 2000 as computed on a federal income tax
basis, were as follows:
<TABLE>
<S> <C>
AGGREGATE COST $509,127,205
------------------------------------------------------
Gross unrealized appreciation $ 14,786,404
Gross unrealized depreciation (33,135,456)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $(18,349,052)
------------------------------------------------------
</TABLE>
17
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
10 Restricted Securities
-------------------------------------------
At March 31, 2000 the Trust owned the following securities (representing
1.32% of net assets) which were restricted as to public resale and not
registered under the Securities Act of 1933 (excluding Rule 144A securities).
The Trust has various registration rights (exercisable under a variety of
circumstances) with respect to these securities. The fair value of these
securities is determined based on valuations provided by brokers when
available, or if not available, they are valued at fair value using methods
determined in good faith by or at the direction of the Trustees.
<TABLE>
<CAPTION>
DATE OF
DESCRIPTION ACQUISITION SHARES/FACE COST FAIR VALUE
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------
COMMON STOCKS, WARRANTS AND RIGHTS
----------------------------------------------------------------------------------------
Carrier1 International SA, Warrants 9/09/99-
2/25/00 4,125 $531,250 $2,100,817
Completel Europe NV, Warrants 10/19/99 19,600 0 1,372,000
Cybernet Internet Services 10/20/99-
International, Inc., Warrants 10/28/99 1,675 105,000 20,100
Diva Systems Corp., Warrants 12/30/98-
9/21/99 6,750 23 0
HF Holdings, Inc., Warrants 9/24/97-
8/04/98 3,400 182,579 0
Intersil Corp., Warrants 12/10/99 1,250 0 717,151
Jordan Telecommunications, Deferred
Contingent Cash Rights 3/22/00 700 0 0
Key Energy Services, Inc., Warrants 7/09/99 1,000 15,000 90,000
Ono Finance PLC, Warrants 10/12/99-
11/15/99 4,640 0 0
Peninsula Gaming LLC, Warrants 7/08/99 6,338 0 38,027
Primus Telecom Group, Warrants, Exp.
8/1/04 10/31/97 1,150 0 81,498
UIH Australia/Pacific, Inc., Warrants 3/05/98 900 0 28,800
Versatel Telecom BV, Warrants 8/11/98-
1/29/99 3,500 0 1,990,634
Worldwide Flight Service, Warrants 8/05/99 250 0 0
----------------------------------------------------------------------------------------
$833,852 $6,439,027
----------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
EATON VANCE INCOME FUND OF BOSTON AS OF MARCH 31, 2000
INVESTMENT MANAGEMENT
EATON VANCE INCOME FUND OF BOSTON
Officers
James B. Hawkes
President and Trustee
Thomas P. Huggins
Vice President
Michael W. Weilheimer
Vice President and
Portfolio Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Robert Gluck
Management Consultant
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
19
<PAGE>
INVESTMENT ADVISER OF EATON VANCE
INCOME FUND OF BOSTON
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 INCOME FUND OF BOSTON
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.
-------------------------------------------------------------------------------
443-5/00 IBSRC-5/00
