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EV
INVESTORS
PORTFOLIO
SEMI-ANNUAL
SHAREHOLDER REPORT
JULY 31, 1995
INVESTMENT ADVISER OF
INVESTORS PORTFOLIO
Eaton Vance Management
24 Federal Street
Boston, MA 02110
ADMINISTRATOR OF
EV TRADITIONAL INVESTORS FUND
Eaton Vance Management
24 Federal Street
Boston, MA 02110
UNDERWRITER
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
CUSTODIAN
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
TRANSFER AND DIVIDEND
DISBURSING AGENT
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
(800) 262-1122
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
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INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
JULY 31, 1995
(UNAUDITED)
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COMMON STOCKS - 61.1%
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NAME OF COMPANY SHARES VALUE
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AUTOMOTIVE - 1.4%
Ford Motor Co. 120,000 $ 3,465,000
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BANKS - 3.4%
Chase Manhattan Corp. 100,000 $ 5,362,500
Chemical Banking Corp. 61,200 3,159,450
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$ 8,521,950
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BROADCASTING & CABLE - 1.2%
Capital Cities/ABC Inc. 25,000 $ 2,918,750
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BUILDING MATERIALS - 0.4%
National Gypsum Co.* 20,000 $ 1,066,250
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BUSINESS PRODUCTS & SERVICES - 2.0%
Reuters Holdings, PLC ADR 100,000 $ 5,037,500
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CAPITAL GOODS - 1.0%
LaFarge Corp. 120,500 $ 2,394,937
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CHEMICALS - 3.6%
Loctite Corp. 28,300 $ 1,333,638
Monsanto Corp. 40,000 3,725,000
Nalco Chemical Co. 30,000 1,068,750
Praxair Inc. 100,000 2,800,000
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$ 8,927,388
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COMPUTER SOFTWARE - 1.1%
Novell Inc.* 150,000 $ 2,718,750
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DRUGS & MEDICAL - 3.1%
Astra AB A Free Shares 230,000 $ 7,800,473
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ELECTRIC UTILITIES - 2.4%
New England Electric System 90,000 $ 3,026,250
The Southern Co. 140,000 3,080,000
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$ 6,106,250
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FINANCIAL - 4.1%
Federal National Mortgage Association 40,000 $ 3,745,000
MBNA Corp. 100,000 3,587,500
MGIC Investment Corp. 60,000 3,045,000
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$ 10,377,500
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The accompanying notes are an integral part
of the financial statements
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PORTFOLIO OF INVESTMENTS (Continued)
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COMMON STOCKS (Continued)
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NAME OF COMPANY SHARES VALUE
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FOOD & BEVERAGES - 3.2%
Coca-Cola Co. 40,000 $ 2,635,000
Nestle SA* 1,620 1,652,946
PepsiCo Inc. 80,000 3,750,000
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$ 8,037,946
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HEALTH CARE - 1.3%
Sofamor Danek Group, Inc.* 160,000 $ 3,320,000
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INSURANCE - 1.6%
General Re Corp. 30,000 $ 3,978,750
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MACHINERY - 1.1%
Caterpillar Inc. 40,000 $ 2,815,000
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METALS & MINING - 1.5%
J & L Specialty Steel, Inc. 175,000 $ 3,871,875
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NATURAL GAS - 1.1%
National Fuel Gas Co. 100,000 $ 2,800,000
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OIL & OIL SERVICES - 6.9%
Anadarko Petroleum Corp. 90,000 $ 3,825,000
Exxon Corp. 58,640 4,251,400
Mobil Corp. 20,000 1,955,000
Phillips Petroleum Co. 90,000 3,183,750
Triton Energy Corp. 80,000 3,990,000
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$ 17,205,150
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PAPER & FOREST PRODUCTS - 4.0%
Plum Creek Timber Co., L.P. 90,000 $ 2,216,250
Rayonier Inc. 120,000 4,665,000
Scott Paper Co. 40,000 1,835,000
Williamette Industries, Inc. 20,700 1,265,288
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$ 9,981,538
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PRINTING & PUBLISHING - 2.2%
Harcourt General, Inc. 55,000 $ 2,475,000
McGraw-Hill, Inc. 40,000 3,075,000
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$ 5,550,000
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REAL ESTATE - 4.4%
Chateau Properties, Inc. 75,000 $ 1,603,125
Colonial Properties Trust 80,000 1,940,000
Equity Residential Properties Trust 101,400 2,991,300
The accompanying notes are an integral part
of the financial statements
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PORTFOLIO OF INVESTMENTS (Continued)
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COMMON STOCKS (Continued)
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NAME OF COMPANY SHARES VALUE
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REAL ESTATE (Continued)
ROC Communities, Inc. 116,250 2,441,250
Security Capital Industrial Trust 37,000 592,000
Shurgard Storage Centers, Inc. 61,000 1,441,125
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$ 11,008,800
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RETAILING - 1.4%
Home Depot, Inc. 80,000 $ 3,510,000
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SAVINGS & LOAN - 1.2%
Great Western Financial Corp. 140,000 $ 2,992,500
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SEMICONDUCTORS - 3.5%
Advanced Micro Devices, Inc. 70,000 $ 2,283,750
MEMC Electronic Materials, Inc. 89,000 2,681,125
Intel Corp. 60,000 3,900,000
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$ 8,864,875
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TELEPHONE UTILITIES - 3.2%
Ameritech Corp. 80,448 $ 3,891,672
Frontier Corp. 150,000 4,031,250
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$ 7,922,922
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TRANSPORTATION - 0.5%
Ryder Systems, Inc. 51,500 $ 1,281,062
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MISCELLANEOUS - 0.3%
Corning Inc. 25,400 $ 812,800
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TOTAL COMMON STOCKS
(IDENTIFIED COST, $106,322,670) $153,287,966
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CONVERTIBLE PREFERRED STOCK - 1.3%
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NAME OF COMPANY SHARES VALUE
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Freeport McMoRan Copper & Gold, 5s 125,000 $ 3,203,125
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TOTAL CONVERTIBLE PREFERRED STOCK
(IDENTIFIED COST, $2,872,500) $ 3,203,125
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The accompanying notes are an integral part
of the financial statements
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PORTFOLIO OF INVESTMENTS (Continued)
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PREFERRED STOCK - 1.2%
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NAME OF COMPANY SHARES VALUE
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Bank of Boston Ser. C Adj. Rt. 37,600 $ 2,970,400
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TOTAL PREFERRED STOCK
(IDENTIFIED COST, $1,815,525) $ 2,970,400
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CONVERTIBLE BOND - 0.4%
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FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
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Browning Ferris Inds., cv., 6.25s, 8/15/12 $ 1,000 $ 1,020,000
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TOTAL CONVERTIBLE BOND
(IDENTIFIED COST, $897,000) $ 1,020,000
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U.S. TREASURY/AGENCY OBLIGATIONS - 14.2%
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FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
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Federal Home Loan Morgage Corp.,
8.10s, 12/15/04 $ 963 $ 976,128
Federal Home Loan Morgage Corp.,
9s, 11/15/19 767 791,032
Federal Home Loan Mortgage Corp.,
7.95s, 5/15/20 3,817 3,878,744
Federal Home Loan Mortgage Corp.,
10s, 5/15/20 2,325 2,577,100
Federal National Mortgage Association,
7.50s, 5/25/19 3,376 3,402,044
Federal National Mortgage Association,
8.50s, 7/25/19 3,883 3,951,273
Federal National Mortgage Association,
9s, 3/25/20 2,000 2,131,860
Student Loan Marketing Association,
7.875s, 9/12/95 1,000 1,002,210
U.S. Treasury Notes, 7.875s, 2/15/96 10,500 10,624,688
U.S. Treasury Notes, 7.625s, 4/30/96 3,000 3,041,475
U.S. Treasury Notes, 8.125s, 2/15/98 3,000 3,148,110
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TOTAL U.S. TREASURY/AGENCY OBLIGATIONS
(IDENTIFIED COST, $34,510,177) $ 35,524,664
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The accompanying notes are an integral part
of the financial statements
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PORTFOLIO OF INVESTMENTS (Continued)
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CORPORATE BONDS - 15.9%
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FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
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American General Finance Corp.,
8.125s, 8/15/09 $ 2,460 $ 2,624,992
Bell Telephone Co. PA, 8.35s, 12/15/30 3,000 3,438,240
Chesapeake Potomac Telephone MD,
8s, 10/15/29 1,500 1,574,715
Chesapeake Potomac Telephone MD,
8.30s, 8/1/31 1,975 2,228,254
Chesapeake Potomac Telephone VA,
8.375s, 10/1/29 1,500 1,693,560
Dayton Hudson Medium Term Note,
9.50s, 6/10/15 650 761,046
Dayton Hudson Medium Term Note,
9.35s, 6/16/20 2,590 3,029,653
Eaton Corp., 8s, 8/15/06 1,000 1,080,260
General Electric Capital Corp.,
8.625s, 6/15/08 330 371,350
General Motors Corp. 8.80s, 3/1/21 2,000 2,209,940
General Motors Corp. Medium Term Notes,
9.45s, 11/1/11 3,000 3,499,260
Inter American Development Bank,
8.875s, 6/1/09 3,000 3,568,650
Inter American Development Bank,
8.40s, 9/1/09 500 572,010
New England Telephone & Telegraph Co.,
7.875s, 11/15/29 360 386,759
Pitney Bowes Credit Corp., 9.25s, 6/15/08 1,650 1,955,465
Pitney Bowes Credit Corp., 8.55s, 9/15/09 500 563,080
Procter & Gamble Co., 8s, 10/26/29 4,740 5,133,183
Seagram (Joseph) & Sons, 9.65s, 8/15/18 1,400 1,661,128
Torchmark Corp., 8.25s, 8/15/09 1,000 1,068,200
TRW Inc., Medium Term Notes,
9.35s, 6/4/20 2,100 2,450,868
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TOTAL CORPORATE BONDS
(IDENTIFIED COST, $39,012,053) $ 39,870,613
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The accompanying notes are an integral part
of the financial statements
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PORTFOLIO OF INVESTMENTS (Continued)
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SHORT-TERM OBLIGATIONS - 3.7%
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FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
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CXC Inc., 5.90s, 8/1/95 $ 2,512 $ 2,512,000
Ford Motor Credit Corp., 5.73s, 8/3/95 2,656 2,655,155
Prudential Funding Corp., 5.72s, 8/7/95 4,073 4,069,117
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TOTAL SHORT-TERM OBLIGATIONS, AT
AMORTIZED COST $ 9,236,272
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TOTAL INVESTMENTS - 97.8%
(IDENTIFIED COST, $194,666,197) $245,113,040
OTHER ASSETS, LESS LIABILITIES - 2.2% 5,504,593
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NET ASSETS - 100% $250,617,633
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*Non-income producing security.
The accompanying notes are an integral part
of the financial statements
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FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
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July 31, 1995 (Unaudited)
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ASSETS:
Investments, at value (Note 1A) (identified cost,
$194,666,197) $245,113,040
Cash 732
Receivable for investments sold 7,038,930
Dividends receivable 282,648
Interest receivable 1,590,724
Deferred organization expenses (Note 1D) 10,316
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Total assets $254,036,390
LIABILITIES:
Payable for investments purchased $ 3,399,943
Payable to affiliates --
Trustees' fees 5,000
Custodian fees 6,080
Accrued expenses 7,734
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Total liabilities 3,418,757
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NET ASSETS applicable to investors' interest in Portfolio $250,617,633
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SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $200,170,790
Unrealized appreciation of investments (computed
on the basis of identified cost) 50,446,843
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Total net assets $250,617,633
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The accompanying notes are an integral part of the financial statements
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FINANCIAL STATEMENTS (Continued)
STATEMENT OF OPERATIONS
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For the Six Months Ended July 31, 1995 (Unaudited)
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INVESTMENT INCOME (NOTE 1B):
Interest income $ 3,224,281
Dividend income (net of withholding tax expense
of $45,080) 2,110,095
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Total income $ 5,334,376
Expenses --
Investment adviser fee (Note 3) $ 732,274
Compensation of Trustees not members of the
investment adviser's organization (Note 3) 8,222
Custodian fee (Note 3) 64,230
Legal and accounting fees 28,098
Amortization of organization expenses (Note 1D) 1,583
Printing and postage 195
Miscellaneous 9,635
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Total expenses 844,237
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Net investment income $ 4,490,139
REALIZED AND UNREALIZED GAIN:
Net realized gain on investment transactions
(identified cost basis) $ 6,529,900
Change in unrealized appreciation on investments 26,776,299
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Net realized and unrealized gain on
investments 33,306,199
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Net increase in net assets resulting from
operations $37,796,338
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The accompanying notes are an integral part of the financial statements
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STATEMENT OF CHANGES IN NET ASSETS
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SIX MONTHS
ENDED
JULY 31, 1995 YEAR ENDED
(UNAUDITED) JANUARY 31, 1995
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INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 4,490,139 $ 9,351,946
Net realized gain on investments
transactions 6,529,900 1,467,119
Change in unrealized appreciation
(depreciation) of investments 26,776,299 (20,681,070)
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Net increase (decrease) in net assets
from operations $ 37,796,338 $ (9,862,005)
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Capital transactions --
Contributions $ 15,444,125 $ 29,380,822
Withdrawals (19,780,325) (32,695,351)
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Decrease in net assets resulting from
capital transactions $ (4,336,200) $ (3,314,529)
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Total increase (decrease) in net assets $ 33,460,138 $(13,176,534)
NET ASSETS:
At beginning of period 217,157,495 230,334,029
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At end of period $250,617,633 $217,157,495
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SUPPLEMENTARY DATA
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SIX MONTHS
ENDED YEAR ENDED JANUARY 31,
JULY 31, 1995 ----------------------
(UNAUDITED) 1995 1994*
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RATIOS (As a percentage
of average net assets):
Expenses 0.73%+ 0.70% 0.69%+
Net investment income 3.86%+ 4.25% 3.69%+
PORTFOLIO TURNOVER 33% 28% 15%
+ Computed on an annualized basis.
* For the period from the start of business, October 28, 1993, to January 31,
1994.
The accompanying notes are an integral part of the financial statements
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NOTES TO FINANCIAL STATEMENTS
JULY 31, 1995
(UNAUDITED)
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(1) SIGNIFICANT ACCOUNTING POLICIES
Investors Portfolio is registered under the Investment Company Act of 1940, as a
diversified, open-end, management investment company, which was organized as a
trust under the laws of the State of New York in 1992. The Declaration of Trust
permits the Trustees to issue interests in the Portfolio. Investment operations
began on October 28, 1993, with the acquisition of Securities and other assets
of $221,294,780 in exchange for an interest in the Portfolio by one of the
Portfolio's investors. The following is a summary of significant accounting
policies of the Portfolio. The policies are in conformity with generally
accepted accounting principles.
A. INVESTMENT VALUATIONS -- Securities listed on securities exchanges or in the
NASDAQ National Market are valued at closing sales prices. Listed or unlisted
investments for which closing sale prices are not available are valued at the
mean between latest bid and asked prices. Debt investments (other than
mortgage-backed "pass-through" securities) are valued at prices furnished by a
pricing service. Mortgage-backed "pass through" securities are valued using a
matrix pricing system which takes into account closing bond valuations, yield
differentials, anticipated prepayments and interest rates. Short-term
obligations maturing in 60 days or less, are valued at amortized cost, which
approximates value. All other investments 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 on debt investments when
required for federal income tax purposes. Dividend income is recorded on the
ex-dividend date. Dividend income may include dividends that represent returns
of capital for federal income tax purposes.
C. FEDERAL TAXES -- The Portfolio is treated as a partnership for Federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes. Since some of the
Portfolio's investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolio, the Portfolio must satisfy
the applicable source of income and diversification requirements (under the
Code) in order for its investors to satisfy them. The Portfolio will allocate at
least annually among its investors each investors' distributive share of the
Portfolio's net taxable income, net realized capital gains, and any other items
of income, gain, loss, deduction or credit.
D. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
E. SECURITY TRANSACTIONS -- Investment transactions are accounted for on the
date the investments are purchased or sold. Realized gains and losses on the
sale of investments are determined on the identified cost basis.
F. INTERIM FINANCIAL INFORMATION -- The interim financial statements relating to
July 31, 1995 and for the period then ended have not been audited by independent
certified public accountants, but in the opinion of the Fund's management,
reflect all adjustments, necessary for the fair presentation of the financial
statements.
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(2) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $52,026,619 and $56,437,373, respectively.
Purchases and sales of U.S. Government securities aggregated $23,027,692 and
$27,779,172, respectively.
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(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR), a
wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation for
management and investment advisory services rendered to the Portfolio. The fee
is computed at the monthly rate of 5/96 of 1% (0.625% annually) of the
Portfolio's average daily net assets up to $300 million and at reduced rates as
daily net assets exceed that level. For the six months ended July 31, 1995, the
fee was equivalent to 0.625% (annualized) of the Portfolio's average net assets
for such period and amounted to $732,274. Except as to Trustees of the Portfolio
who are not members of EVM's or BMR's organization, officers and Trustees
receive remuneration for their service to the Portfolio out of such investment
adviser fee. Investors Bank & Trust Company (IBT), an affiliate of EVM and BMR,
serves as custodian of the Portfolio. Pursuant to the custodian agreement, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances the Portfolio maintains with IBT. Certain of the officers
and Trustees of the Portfolio are officers and directors/trustees of the above
organizations.
Trustees of the Portfolio that are not affiliated with the Investment
Adviser may elect to defer receipt of all or a percentage of their annual fees
in accordance with the terms of the Trustees Deferred Compensation Plan. For the
six months ended July 31, 1995, no significant amounts have been deferred.
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(4) LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates 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 Portfolio
solely to facilitate the handling of unusual and/or unanticipated short-term
cash requirements. Interest is charged to each portfolio or 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 and
portfolios at the end of each quarter. The Portfolio did not have any
significant borrowings or allocated fees during the period.
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(5) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/(depreciation) in the value of investments
owned at July 31, 1995, as computed on a federal income tax basis, are as
follows:
Aggregate cost $194,661,083
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Gross unrealized appreciation $ 52,115,265
Gross unrealized depreciation 1,648,422
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Net unrealized appreciation $ 50,446,843
============
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<CAPTION>
<S> <C> <C>
INVESTORS PORTFOLIO OFFICERS TRUSTEES
24 Federal Street M. DOZIER GARDNER DONALD R. DWIGHT
Boston, MA 02110 President, Trustee President, Dwight Partners, Inc.
THOMAS E. FAUST, JR. Chairman, Newspapers of
Vice President and New England, Inc.
Portfolio Manager SAMUEL L. HAYES, III
JAMES B. HAWKES Jacob H. Schiff Professor of
Vice President, Trustee Investment Banking, Harvard
MICHAEL B. TERRY University Graduate School of
Vice President Business Administration
JAMES L. O'CONNOR NORTON H. REAMER
Treasurer President United Asset
THOMAS OTIS Management Corporation
Secretary JOHN L. THORNDIKE
Director, Fiduciary Company
Incorporated
JACK L. TREYNOR
Investment Adviser and
Consultant
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