<PAGE>
TO SHAREHOLDERS
SECOND FIDUCIARY EXCHANGE FUND HAD A TOTAL RETURN OF 17.9 PERCENT DURING THE SIX
MONTHS THAT ENDED JUNE 30, 1995. That return represented a rise in net asset
value per share to $146.94 from $125.59, and the reinvestment of $1.05 per share
in income dividends. By comparison, the S&P 500, an unmanaged index of common
stocks, had a return of 20.1 percent during the same period.
--------------------------------------------------------------------------------
SECOND FIDUCIARY EXCHANGE FUND HAD A TOTAL RETURN OF 17.9 PERCENT DURING THE SIX
MONTHS THAT ENDED JUNE 30, 1995.
--------------------------------------------------------------------------------
THE STOCK MARKET PERFORMED VERY WELL DURING THE FIRST HALF OF 1995. The market's
behavior was a positive response to the improving interest rate environment and
the prospects for continuing economic growth with limited inflation. Many major
corporations are seeing sharply escalating profits, reflecting not only the
generally favorable economy but also the substantial cost reduction and
productivity initiatives they have undertaken in recent years.
THE MARKET WAS LED IN THE FIRST SIX MONTHS OF 1995 BY STOCKS IN THE TECHNOLOGY
SECTOR. Intel Corp., which is the Fund's largest holding, was a standout
performer even among technology stocks, with a price gain of nearly 50 percent.
International Business Machines was up 23 percent, while Digital Equipment Corp.
gained 18 percent. These stocks continue to benefit from the extremely strong
global demand for semiconductor and computer-based products for an ever-widening
array of applications.
HEALTHCARE STOCKS ALSO WERE MARKET LEADERS AND, CORRESPONDINGLY, SOME OF THE
FUND'S HEALTHCARE HOLDINGS PERFORMED STRONGLY. Baxter International Inc.
posted gains of 22.3 percent while Merck & Co., Inc. was up 22.4 percent. The
Fund's heavy weighting in the business products and services sector helped
its performance during this six-month period. DeLuxe Corp. was up 20.4 percent
and Sealed Air Corp. rose 17.4 percent.
OTHER NOTEWORTHY CONTRIBUTORS AMONG THE FUND'S TOP HOLDINGS INCLUDED PEPSICO,
INC., WHICH WAS UP 20.3 PERCENT. DuPont (E.I.) de Nemours & Co., Inc. posted a
gain of 18.4 percent while Schlumberger LTD. gained nearly 19 percent during the
six-month period. As evidenced by the Fund's total return of nearly 18 percent,
this has been a favorable environment for well-established international growth
companies that make up much of the Fund's portfolio. However, past performance
does not guarantee future returns.
-------------------------
[Photo of Landon T. Clay]
-------------------------
LOOKING FORWARD, THE KEY ISSUES FACING THE FUND ARE STOCK MARKET VALUATION
LEVELS AND THE SLOWING OF ECONOMIC GROWTH. The recent action by the Federal
Reserve to reduce short-term interest rates increases the likelihood of a "soft
landing" for the U.S. economy.
--------------------------------------------------------------------------------
"NO MATTER HOW ECONOMIC CONDITIONS MAY CHANGE... INVESTING IN A SELECTED
PORTFOLIO OF HIGH-QUALITY COMMON STOCKS IS LIKELY TO DELIVER SOUND PERFORMANCE."
--------------------------------------------------------------------------------
NO MATTER HOW ECONOMIC CONDITIONS MAY CHANGE, WE REMAIN CONVINCED THAT OVER THE
LONG TERM, INVESTING IN A SELECTED PORTFOLIO OF HIGH-QUALITY COMMON STOCKS IS
LIKELY TO DELIVER SOUND PERFORMANCE. That remains the strategy of Second
Fiduciary Exchange Fund, and we are confident the Fund will continue to
participate in the economy's ongoing growth.
Sincerely,
/s/ Landon T. Clay
Landon T. Clay
President
August 4, 1995
<PAGE>
SECOND FIDUCIARY
EXCHANGE FUND, INC.
JUNE 30, 1995
(UNAUDITED)
INVESTMENT CHANGES
SIX MONTHS ENDED JUNE 30, 1995
------------------------------------------------------------------------------
Shares Owned
INCREASES 12/31/94 6/30/95
------------------------------------------------------------------------------
Banyan, Inc. 40,000 70,000
------------------------------------------------------------------------------
Cox Communications, Class A --0-- 30,503
------------------------------------------------------------------------------
GAP Stores --0-- 30,000
------------------------------------------------------------------------------
Illinois Tool Works Inc. 5,000 10,000
------------------------------------------------------------------------------
Intel Corp.(1) 38,980 63,840
------------------------------------------------------------------------------
Novell Inc. 22,500 72,500
------------------------------------------------------------------------------
Wheelabrator Technologies Inc. 60,000 70,000
------------------------------------------------------------------------------
DECREASES*
------------------------------------------------------------------------------
Baxter International Inc. 50,750 47,650
------------------------------------------------------------------------------
Disney (Walt) Company 34,000 29,000
------------------------------------------------------------------------------
Dupont (E.I.) de Nemours & Co., Inc. 46,235 45,000
------------------------------------------------------------------------------
General Electric 57,680 52,140
------------------------------------------------------------------------------
Harcourt General, Inc. 20,000 10,000
------------------------------------------------------------------------------
International Technology Corp. 10,576 --0--
------------------------------------------------------------------------------
Lotus Development Corp. 33,250 11,305
------------------------------------------------------------------------------
Microsoft Corp. 12,000 --0--
------------------------------------------------------------------------------
Schlumberger Ltd. 42,274 40,864
------------------------------------------------------------------------------
Stride Rite Corp. 60,000 --0--
------------------------------------------------------------------------------
Tecumseh Products Co., Class B 13,450 --0--
------------------------------------------------------------------------------
Wellman Inc. 15,000 --0--
------------------------------------------------------------------------------
*Includes investments paid in kind on redemptions.
(1)Intel had a 2:1 stock split, adding 38,980 shares to the
Funds holdings. Of the post split shares held, 14,120
shares were sold or distributed.
<PAGE>
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995
(UNAUDITED)
--------------------------------------------------------------------------
COMMON STOCKS - 91.9%
--------------------------------------------------------------------------
NAME OF COMPANY SHARES VALUE
--------------------------------------------------------------------------
BANKS - 1.1%
Wells Fargo & Co. 4,265 $ 768,766
-----------
BROADCAST-CABLE - 0.8%
Cox Communications - Class A* 30,503 $ 590,996
-----------
BUSINESS PRODUCTS AND SERVICES - 6.6%
Banyan Inc.* 70,000 $ 962,500
DeLuxe Corp. 57,150 1,893,094
General Motors Corp., Class E 25,000 1,087,500
Lotus Development Corp.* 11,305 720,694
-----------
$ 4,663,788
-----------
CHEMICALS - 9.6%
Bayer AG ADR 40,000 $ 994,132
DuPont (E.I.) de Nemours & Co., Inc. 45,000 3,093,750
Great Lakes Chemical Corp. 45,100 2,717,275
-----------
$ 6,805,157
-----------
CHEMICALS-SPECIALTY - 9.5%
Corning Inc. 35,000 $ 1,146,250
International Specialty Products Inc. 87,500 743,750
Loctite Corp. 23,000 1,046,500
Millipore Corp. 30,000 2,025,000
Sealed Air Corp.* 40,000 1,760,000
-----------
$ 6,721,500
-----------
COMPUTER SERVICES - 2.0%
Novell Inc.* 72,500 $ 1,445,468
-----------
CONSTRUCTION & REAL ESTATE - 1.4%
Gilbert Associates, Inc. Class A 78,125 $ 1,015,625
-----------
CONSUMER PRODUCTS - 4.5%
PepsiCo, Inc. 69,996 $ 3,193,567
-----------
DRUGS & MEDICAL - 6.9%
Astra AB ADR - Series B 8,200 $ 247,025
Bausch & Lomb, Inc. 14,680 609,220
Baxter International Inc. 47,650 1,733,269
Caremark, Inc. 14,625 292,500
Merck & Co., Inc. 25,000 1,225,000
Warner-Lambert Co. 9,442 815,553
-----------
$ 4,922,567
-----------
ELECTRICAL EQUIPMENT - 4.2%
General Electric Co. 52,140 $ 2,939,392
-----------
ELECTRONICS - 9.1%
Intel Corp.* 63,840 $ 4,041,870
Raytheon Co. 30,900 2,398,613
-----------
$ 6,440,483
-----------
FOREST PRODUCTS - 3.1%
Union Camp Corp. 37,800 $ 2,187,675
-----------
GAS DISTRIBUTION & TRANSMISSION - 1.2%
Sonat, Inc. 27,200 $ 829,600
-----------
INSURANCE - 4.4%
Chubb Corp. 33,060 $ 2,648,932
Provident Life and Accident Insurance
Co. of America, Class B 20,889 485,669
-----------
$ 3,134,601
-----------
LEISURE/ENTERTAINMENT - 2.3%
Disney (Walt) Company 29,000 $ 1,613,125
-----------
MACHINERY & EQUIPMENT - 3.3%
Illinois Tool Works Inc. 10,000 $ 550,000
Tecumseh Products Co., Class A 40,350 1,775,400
-----------
$ 2,325,400
-----------
OFFICE EQUIPMENT - 3.4%
Digital Equipment Corp.* 23,100 $ 941,325
International Business Machines Corp. 15,590 1,496,640
-----------
$ 2,437,965
-----------
PETROLEUM - 4.3%
Chevron Corp. 40,000 $ 1,865,000
Mobil Corp. 11,898 1,142,208
-----------
$ 3,007,208
-----------
PETROLEUM SERVICES AND EQUIPMENT - 3.6%
Schlumberger Ltd. 40,864 $ 2,538,676
-----------
POLLUTION CONTROL - 1.6%
WMX Technologies, Inc. 40,000 $ 1,135,000
-----------
PUBLISHING AND PRINTING - 5.6%
Dun & Bradstreet Corp. 25,700 $ 1,349,250
McGraw-Hill Inc. 12,804 971,504
Times Mirror Co., Class A 49,576 1,183,627
Harcourt General, Inc. 10,000 425,000
-----------
$ 3,929,381
-----------
RETAIL - 1.5%
Gap Stores 30,000 $ 1,046,250
-----------
SPECIAL PRODUCTS AND SERVICES - 1.9%
Telefonos De Mexico, S.A. de C.V. ADR 8,000 $ 237,000
Wheelabrator Technologies Inc. 70,000 1,076,250
-----------
$ 1,313,250
-----------
TOTAL COMMON STOCKS (IDENTIFIED COST, $16,768,703) $65,005,440
-----------
--------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 8.3%
--------------------------------------------------------------------------
FACE AMOUNT
(000 OMITTED)
--------------------------------------------------------------------------
Melville Corp., 6.23% 7/3/95 $2,875 $ 2,874,005
Prudential Funding Corp., 6.05% 7/5/95 3,000 2,997,984
-----------
TOTAL SHORT-TERM OBLIGATIONS,
AT AMORTIZED COST $ 5,871,989
-----------
TOTAL INVESTMENTS
(IDENTIFIED COST, $22,640,692) - 100.2% $70,877,429
OTHER ASSETS, LESS LIABILITIES - (0.2%) (126,868
-----------
NET ASSETS - 100% $70,750,561
===========
*Non-income producing security.
ADR - American Depository Receipt
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
------------------------------------------------------------------------------
June 30, 1995 (Unaudited)
------------------------------------------------------------------------------
ASSETS:
Investments, at value (Note 1A) (identified cost,
$22,640,692) $70,877,429
Cash 528
Dividends receivable 137,099
Other assets 4,243
-----------
Total assets $71,019,299
LIABILITIES:
Demand note payable $ 9,000
Payable for capital stock redeemed 247,967
Payable to affiliates --
Custodian fee 1,347
Directors' fees 1,542
Accrued expenses 8,882
--------
Total liabilities 268,738
-----------
NET ASSETS for 481,477 shares of capital stock outstanding $70,750,561
===========
SOURCES OF NET ASSETS:
Accumulated net realized gain on investment
transactions (computed on the basis of identified
cost), less the excess of cost of capital stock
redeemed over proceeds from sales of capital
stock (including shares issued to shareholders
electing to receive payment of distributions in
capital stock) $32,187,461
Accumulated distributions of net realized gain on
investments as computed for federal income tax
purposes (529,808)
Unrealized appreciation of investments (computed on
the basis of identified cost) 48,236,737
Provision for federal tax on undistributed net
realized long-term capital gain, paid on behalf
of shareholders (9,249,025)
Undistributed net investment income 105,196
-----------
Total $70,750,561
===========
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($70,750,561 / 481,477 shares of capital stock
outstanding) $146.94
=======
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS (Continued)
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
For the Six Months Ended June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Income --
Dividends $ 667,294
Interest 148,406
-----------
Total income $ 815,700
Expenses --
Investment adviser fee (Note 4) $ 207,076
Compensation of Directors not members of the
Investment Adviser's organization 3,199
Custodian fees (Note 4) 19,052
Legal and accounting services 23,282
Printing and postage 10,794
Transfer and dividend disbursing agent fees 9,691
Miscellaneous 3,793
----------
Total expenses 276,887
-----------
Net investment income $ 538,813
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments, computed on the
basis of identified cost $2,652,699
Increase in unrealized appreciation of
investments 7,719,209
----------
Net realized and unrealized gain on investments 10,371,908
-----------
Net increase in net assets from operations $10,910,721
===========
See notes to financial statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
------------------------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30,
1995 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1994
----------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 538,813 $ 1,048,756
Net realized gain on investments 2,652,699 4,245,415
Increase (decrease) in unrealized
appreciation of investments 7,719,209 (4,356,973)
----------- -----------
Increase in net assets from operations $10,910,721 $ 937,198
Dividends to shareholders from net
investment income (510,094) (1,025,956)
Provision for federal tax on undistributed
net realized long-term gain (Note 1B) -- (245,003)
Net decrease from capital stock
transactions (Note 2) (1,293,800) (3,742,321)
----------- -----------
Net increase (decrease) in net assets $ 9,106,827 $(4,076,082)
NET ASSETS:
At beginning of period 61,643,734 65,719,816
----------- -----------
At end of period (including undistributed
net investment income of $105,196 and
$76,477, respectively) $70,750,561 $61,643,734
=========== ===========
See notes to financial statements
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1995 ---------------------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of
period $125.590 $126.260 $121.950 $118.850 $ 94.790 $ 97.820
-------- -------- -------- -------- -------- --------
INCOME FROM OPERATIONS:
Net investment income $ 1.113 $ 2.103 $ 1.745 $ 1.688 $ 1.803 $ 1.840
Net realized and unrealized
gain (loss) on investments 21.287 (0.224) 4.666 3.836 24.171 (2.690)
-------- -------- -------- -------- -------- --------
Total income (loss) from
operations $ 22.400 $ 1.879 $ 6.411 $ 5.524 $ 25.974 $ (0.850)
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
From net investment income $ (1.050) $ (2.050) $ (1.680) $ (1.710) $ (1.770) $ (2.180)
-------- -------- -------- -------- -------- --------
PROVISION FOR FEDERAL TAX ON
UNDISTRIBUTED NET REALIZED LONG-
TERM GAIN (NOTE 1B) $ -- $ (0.499) $ (0.421) $ (0.714) $ (0.144) $ --
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, end of period $146.940 $125.590 $126.260 $121.950 $118.850 $ 94.790
======== ======== ======== ======== ======== ========
TOTAL RETURN<F1> 17.87% 1.09% 4.92% 4.27% 27.18% (0.85%)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's
omitted) $ 70,751 $ 61,644 $ 65,720 $ 67,529 $ 69,959 $ 60,645
Ratio of expenses to average net
assets 0.84%<F2> 0.82% 0.81% 0.81% 0.82% 0.87%
Ratio of net investment income
to average net assets 1.64%<F2> 1.65% 1.40% 1.42% 1.64% 1.93%
PORTFOLIO TURNOVER 5% 12% 9% 5% 6% 7%
<FN>
<F1> Total investment 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 to
be reinvested at the net asset value on the payable date. Total return is
not computed on an annualized basis.
<F2> Annualized.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940, as amended,
as a diversified, open-end management investment company. 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 -- Investments listed on security exchanges or in the
NASDAQ National Market are valued at closing sale prices. Listed or unlisted
investments for which closing sale prices are not available are valued at
closing bid prices. Short-term obligations, maturing in 60 days or less, are
valued at amortized cost, which approximates value.
B. FEDERAL TAXES -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code available to regulated investment companies and to
distribute to shareholders each year all of its taxable income from dividends,
interest and net realized short-term capital gain. Accordingly, no provision
for federal income or excise tax is necessary on such income. The Fund
generally designates as undistributed any taxable net realized long-term gain
(but reserves the right to distribute such gain in any year) and pays the
federal tax thereon on behalf of shareholders. Provision for such tax is
recorded on the Fund's records on the last business day of the Fund's fiscal
year because the Internal Revenue Code provides that such tax is allocated
among shareholders of record on that date.
C. OTHER -- Investment transactions are accounted for on a trade date basis.
Dividend income and dividends to shareholders are recorded on the ex-dividend
date.
D. DISTRIBUTIONS -- Generally accepted accounting principles require that
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.
E. INTERIM FINANCIAL INFORMATION -- The interim financial statements relating
to June 30, 1995 and for the six-month period then ended have not been audited
by independent certified public accountants, but in the opinion of the Fund's
management, reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
------------------------------------------------------------------------------
(2) CAPITAL STOCK
At June 30, 1995, there were 3,640,001 shares of $1.00 par value capital stock
authorized. Transactions in capital stock were as follows:
SIX MONTHS ENDED
JUNE 30, 1995 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1994
----------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
-------- ------------- -------- ------------
Redemptions (9,876) $ (1,369,092) (31,008) $(3,910,059)
Issued to shareholders
electing to receive payment
of distributions in capital
stock 532 75,292 1,325 167,738
------ ------------ ------ -----------
Net decrease (9,344) $(1,293,800) (29,683) $(3,742,321)
====== =========== ======= ===========
------------------------------------------------------------------------------
(3) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than short-term obligations,
aggregated $2,870,850 and $4,412,680, respectively. In addition, investments
having an aggregate market value of $1,278,410 at dates of redemption were
distributed in payment for capital stock redeemed.
------------------------------------------------------------------------------
(4) INVESTMENT ADVISER FEE AND OTHER
TRANSACTIONS WITH AFFILIATES
The investment adviser fee, computed at the monthly rate of 5/96 of 1% (5/8
of 1% annually) of the Fund's average monthly net assets, was paid to Eaton
Vance Management (EVM) as compensation for management and investment advisory
services rendered to the Fund. Except as to directors of the Fund who are not
members of EVM's organization, officers and directors receive remuneration for
their services to the Fund out of such investment adviser fee. The custodian
fee was paid to Investors Bank & Trust Company (IBT), an affiliate of EVM, for
its services as custodian of the Fund. Pursuant to the custodian agreement,
IBT receives a fee reduced by credits which are determined based on the
average daily cash balances the Fund maintains with IBT. Certain of the
officers and directors of the Fund are officers and directors/trustees of the
above organizations. Directors of the Fund that are not affiliated with the
Investment Adviser may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred Compensation
Plan. For the six months ended June 30, 1995, no significant amounts have been
deferred.
------------------------------------------------------------------------------
(5) LINE OF CREDIT
The Fund participates with other funds managed by EVM in a $120 million
unsecured line of credit agreement with a bank. The line of credit consists of
a $20 million committed facility and a $100 million discretionary facility.
Borrowings will be made by the Fund solely to facilitate the handling of
unusual and/or unanticipated short-term cash requirements. Interest is charged
to each fund based on its borrowings at an amount above either the bank's
adjusted certificate of deposit rate, a variable adjusted certificate of
deposit rate, or a federal funds effective rate. In addition, a fee computed
at an annual rate of 1/4 of 1% on the $20 million committed facility and on
the daily unused portion of the $100 million discretionary facility is
allocated among the participating funds at the end of each quarter. The Fund
did not have any significant borrowings or allocated fees during the period.
------------------------------------------------------------------------------
(6) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/depreciation in value of the investments
owned at June 30, 1995, as computed on a federal income tax basis, are as
follows:
Aggregate cost $22,640,692
===========
Gross unrealized appreciation $48,563,646
Gross unrealized depreciation 326,909
-----------
Net unrealized appreciation $48,236,737
===========
------------------------------------------------------------------------------
(7) SHAREHOLDER MEETING
Second Fiduciary Exchange Fund, Inc. (the Fund) held its annual shareholder
meeting on April 12, 1995. On February 23, 1995, the record date of the
meeting, the Fund had 487,493.760 shares outstanding, of which 351,643.119
shares were represented at the meeting. The votes cast at the meeting were as
follows:
Item 1: The election of Landon T. Clay, Donald R. Dwight, Samuel L. Hayes,
III, Peter F. Kiely, Norton H. Reamer, John L. Thorndike and Jack L.
Treynor as Directors of the Fund.
NUMBER OF SHARES
-------------------------------
NOMINEES FOR DIRECTOR AFFIRMATIVE WITHHELD
--------------------- ----------- --------
Landon T. Clay 347,845.123 3,797.996
Donald R. Dwight 347,845.123 3,797.996
Samuel L. Hayes, III 347,845.123 3,797.996
Peter F. Kiely 347,845.123 3,797.996
Norton H. Reamer 347,845.123 3,797.996
John L. Thorndike 347,845.123 3,797.996
Jack L. Treynor 347,845.123 3,797.996
Item 2: The ratification of the selection of Deloitte & Touche LLP as
independent certified public accountants to the Fund.
NUMBER OF SHARES
----------------
Affirmative 347,435.993
Against 804.000
Abstain 3,403.126
<PAGE>
<TABLE>
INVESTMENT MANAGEMENT
<S> <C> <C>
SECOND FIDUCIARY OFFICERS AND STAFF INDEPENDENT DIRECTORS
EXCHANGE LANDON T. CLAY DONALD R. DWIGHT
FUND, INC. President, Director President, Dwight Partners, Inc.
24 Federal Street JAMES B. HAWKES Chairman, Newspapers of
Boston, MA 02110 Vice President New England, Inc.
ROBERT S. GOODOF SAMUEL L. HAYES, III
Vice President, Jacob H. Schiff Professor of
Portfolio Manager Investment Banking, Harvard
JAMES L. O'CONNOR University Graduate School of
Treasurer Business Administration
THOMAS OTIS NORTON H. REAMER
Clerk President and Director, United
Asset Management Corporation
JOHN L. THORNDIKE
Director, Fiduciary Company
Incorporated
JACK L. TREYNOR
Investment Adviser and
Consultant
------------------------------------------------------------------------
SECOND FIDUCIARY EXCHANGE TRANSFER AND DIVIDEND
FUND, INC. DISBURSING AGENT
24 Federal Street The Shareholder
Boston, MA 02110 Services Group, Inc.
INVESTMENT ADVISER BOS725
Eaton Vance Management P.O. Box 1559
24 Federal Street Boston, MA 02104
Boston, MA 02110 800-262-1122
CUSTODIAN
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
</TABLE>
<PAGE>
SECOND FIDUCIARY
EXCHANGE FUND, INC.
PERFORMANCE RESULTS+
------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
(STANDARDIZED SEC PERFORMANCE DATA
FOR THE PERIODS ENDED JUNE 30, 1995)
------------------------------------------------------------------------------
One year 22.34%
------------------------------------------------------------------------------
Five years 8.96%
------------------------------------------------------------------------------
Ten years 10.70%
------------------------------------------------------------------------------
Life of Fund (6/5/67) 8.77%
------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN
LIFE OF FUND
(6/5/67 TO 6/30/95)
------------------------------------------------------------------------------
Second Fiduciary Exchange Fund 959.93%
------------------------------------------------------------------------------
Dow Jones Industrial Average 1,674.18%
------------------------------------------------------------------------------
Standard & Poor's 500 1,721.21%
------------------------------------------------------------------------------
+Past performance is no guarantee of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
The Dow Jones Industrial Average and the Standard & Poor's 500 are unmanaged
lists of common stocks.
This report must be preceded or accompanied by a prospectus which contains
more complete information on the Fund including its distribution plan, sales
charges and expenses. Please read the prospectus carefully before investing.
[LOGO]
EATON VANCE
The Boston Tradition
24 Federal Street, Boston, Massachusetts 02110
SECOND FIDUCIARY
EXCHANGE FUND
An Eaton Vance
Exchange Fund
Semi-Annual Report
June 30, 1995
