<PAGE>
Investors Portfolio as of June 30, 1997
PORTFOLIO OF INVESTMENTS (Unaudited)
<TABLE>
<CAPTION>
Common Stocks -- 69.7%
Security Shares Value
- --------------------------------------------------------------------------
<S> <C> <C>
Aerospace and Defense -- 1.7%
- --------------------------------------------------------------------------
Boeing Co. 100,000 $ 5,306,250
- --------------------------------------------------------------------------
$ 5,306,250
- --------------------------------------------------------------------------
Auto and Parts -- 1.0%
- --------------------------------------------------------------------------
General Motors Corp. 60,000 $ 3,341,250
- --------------------------------------------------------------------------
$ 3,341,250
- --------------------------------------------------------------------------
Banks - Regional -- 1.6%
- --------------------------------------------------------------------------
Norwest Corp. 90,000 $ 5,062,500
- --------------------------------------------------------------------------
$ 5,062,500
- --------------------------------------------------------------------------
Banks and Money Services -- 3.1%
- --------------------------------------------------------------------------
Banco Latinoamericano de 75,000 $ 3,234,375
Exportaciones*
Chase Manhattan Corp. 70,200 6,813,787
- --------------------------------------------------------------------------
$ 10,048,162
- --------------------------------------------------------------------------
Beverages -- 1.5%
- --------------------------------------------------------------------------
PepsiCo, Inc. 130,000 $ 4,883,125
- --------------------------------------------------------------------------
$ 4,883,125
- --------------------------------------------------------------------------
Chemicals -- 3.1%
- --------------------------------------------------------------------------
Monsanto Corp. 125,000 $ 5,382,813
- --------------------------------------------------------------------------
Praxair, Inc. 80,000 4,480,000
- --------------------------------------------------------------------------
$ 9,862,813
- --------------------------------------------------------------------------
Computer Equipment -- 3.0%
- --------------------------------------------------------------------------
Hewlett-Packard Co. 60,000 $ 3,360,000
Xerox Corp. 81,000 6,388,874
- --------------------------------------------------------------------------
$ 9,748,874
- --------------------------------------------------------------------------
Drugs -- 6.5%
- --------------------------------------------------------------------------
Astra AB Class A 266,667 $ 4,966,105
Elan Corp., PLC ADR* 75,000 3,393,750
Lilly & Co. 65,000 $ 7,105,312
Pfizer, Inc. 18,900 2,258,550
Smithkline Beecham PLC ADR 35,000 3,206,875
- --------------------------------------------------------------------------
$ 20,930,592
- --------------------------------------------------------------------------
Electric Utilities -- 1.0%
- --------------------------------------------------------------------------
The Southern Co. 140,000 $ 3,062,500
- --------------------------------------------------------------------------
$ 3,062,500
- --------------------------------------------------------------------------
Electronics - Semiconductors -- 1.6%
- --------------------------------------------------------------------------
Intel Corp. 35,000 $ 4,963,438
- --------------------------------------------------------------------------
$ 4,963,438
- --------------------------------------------------------------------------
Financial - Miscellaneous -- 5.4%
- --------------------------------------------------------------------------
Federal National Mortgage Association 135,000 $ 5,889,375
MBNA Corp. 150,000 5,493,750
MGIC Investment Corp. 120,000 5,752,500
- --------------------------------------------------------------------------
$ 17,135,625
- --------------------------------------------------------------------------
Health Services -- 0.2%
- --------------------------------------------------------------------------
Covance, Inc. 25,000 $ 482,813
Quest Diagnostics, Inc. 12,500 257,031
- --------------------------------------------------------------------------
$ 739,844
- --------------------------------------------------------------------------
Household Products -- 1.0%
- --------------------------------------------------------------------------
Kimberly-Clark Corp. 62,400 $ 3,104,400
- --------------------------------------------------------------------------
$ 3,104,400
- --------------------------------------------------------------------------
Information Services -- 2.9%
- --------------------------------------------------------------------------
Ceridian Corp.* 120,000 $ 5,070,000
Reuters Holdings PLC ADR 65,000 4,095,000
- --------------------------------------------------------------------------
$ 9,165,000
- --------------------------------------------------------------------------
Insurance -- 5.1%
- --------------------------------------------------------------------------
Allstate Corp. 90,000 $ 6,569,999
</TABLE>
See notes to financial statements
8
<PAGE>
Investors Portfolio as of June 30, 1997
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Security Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Insurance (continued)
- --------------------------------------------------------------------------------
General Real Estate Corp. 30,000 $ 5,460,000
Mutual Risk Management Ltd. 93,300 4,280,138
- --------------------------------------------------------------------------------
$ 16,310,137
- --------------------------------------------------------------------------------
Lodging and Gaming -- 1.4%
- --------------------------------------------------------------------------------
ITT Corp. 75,000 $ 4,579,688
- --------------------------------------------------------------------------------
$ 4,579,688
- --------------------------------------------------------------------------------
Machinery -- 1.8%
- --------------------------------------------------------------------------------
Deere and Co. 105,000 $ 5,761,875
- --------------------------------------------------------------------------------
$ 5,761,875
- --------------------------------------------------------------------------------
Medical Products -- 5.7%
- --------------------------------------------------------------------------------
Baxter International, Inc. 100,000 $ 5,225,000
Boston Scientific Corp.* 75,000 4,607,813
Sofamor Danek Group, Inc.* 180,300 8,248,724
- --------------------------------------------------------------------------------
$ 18,081,537
- --------------------------------------------------------------------------------
Metals and Minerals -- 2.0%
- --------------------------------------------------------------------------------
J & L Specialty Steel, Inc. 200,000 $ 2,400,000
Potash Corp. of Saskatchewan 55,000 4,128,438
- --------------------------------------------------------------------------------
$ 6,528,438
- --------------------------------------------------------------------------------
Oil and Gas - Exploration and Production -- 2.4%
- --------------------------------------------------------------------------------
Anadarko Petroleum Corp. 60,000 $ 3,600,000
Triton Energy Ltd. 90,000 4,123,125
- --------------------------------------------------------------------------------
$ 7,723,125
- --------------------------------------------------------------------------------
Oil and Gas - Integrated -- 2.6%
- --------------------------------------------------------------------------------
Exxon Corp. 87,280 $ 5,367,720
Mobil Corp. 40,000 2,795,000
- --------------------------------------------------------------------------------
$ 8,162,720
- --------------------------------------------------------------------------------
Paper and Forest Products -- 0.9%
- --------------------------------------------------------------------------------
Plum Creek Timber Co., L.P. 90,000 $ 2,891,250
- --------------------------------------------------------------------------------
$ 2,891,250
- --------------------------------------------------------------------------------
Photography -- 1.2%
- --------------------------------------------------------------------------------
Eastman Kodak Co. 50,000 $ 3,837,500
- --------------------------------------------------------------------------------
$ 3,837,500
- --------------------------------------------------------------------------------
Publishing -- 1.0%
- --------------------------------------------------------------------------------
McGraw-Hill, Inc. 56,500 $ 3,322,906
- --------------------------------------------------------------------------------
$ 3,322,906
- --------------------------------------------------------------------------------
REITS -- 3.3%
- --------------------------------------------------------------------------------
Chateau Communities, Inc. 121,132 $ 3,467,404
Colonial Properties Trust 80,000 2,350,000
Equity Residential Properties Trust 101,400 4,816,500
- --------------------------------------------------------------------------------
$ 10,633,904
- --------------------------------------------------------------------------------
Retail - Food and Drug -- 1.5%
- --------------------------------------------------------------------------------
CVS Corp. 95,000 $ 4,868,750
- --------------------------------------------------------------------------------
$ 4,868,750
- --------------------------------------------------------------------------------
Retail - Specialty and Apparel -- 1.7%
- --------------------------------------------------------------------------------
The Home Depot, Inc. 80,000 $ 5,515,000
- --------------------------------------------------------------------------------
$ 5,515,000
- --------------------------------------------------------------------------------
Specialty Chemicals and Materials -- 3.2%
- --------------------------------------------------------------------------------
Corning, Inc. 100,000 $ 5,562,500
Sealed Air Corp.* 100,000 4,750,000
- --------------------------------------------------------------------------------
$ 10,312,500
- --------------------------------------------------------------------------------
Telephone Utilities -- 1.3%
- --------------------------------------------------------------------------------
Ameritech Corp. 60,44 $ 4,106,686
- --------------------------------------------------------------------------------
$ 4,106,686
- --------------------------------------------------------------------------------
Transportation -- 1.0%
- --------------------------------------------------------------------------------
Southwest Airlines, Inc. 125,000 $ 3,234,375
- --------------------------------------------------------------------------------
$ 3,234,375
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
9
<PAGE>
Investors Portfolio as of June 30, 1997
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Security Shares Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Convertible Preferred Stock -- 1.1%
Metals - Gold -- 1.1%
- --------------------------------------------------------------------------------
Freeport McMoRan Copper & Gold, 5% 125,000 $ 3,421,875
- --------------------------------------------------------------------------------
$ 3,421,875
- --------------------------------------------------------------------------------
Total Convertible Preferred Stock
(identified cost $2,872,501) $ 3,421,875
- --------------------------------------------------------------------------------
Preferred Stock -- 1.0%
Banks - Regional -- 1.0%
- --------------------------------------------------------------------------------
BankBoston Corp. 37,600 $ 3,280,600
- --------------------------------------------------------------------------------
$ 3,280,600
- --------------------------------------------------------------------------------
Total Preferred Stock
(identified cost $1,815,526) $ 3,280,600
- --------------------------------------------------------------------------------
Corporate Bonds -- 15.2%
<CAPTION>
Principal
Amount
(000
Security Omitted) Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Bausch and Lomb, 6.56%, 8/12/26 $ 1,000 $ 997,450
Bell Telephone Co., 8.35%, 12/15/30 3,000 3,428,070
Chesapeake Potomac Telephone Co.,
8.375%, 10/1/29 2,850 3,268,922
Columbia/HCA Healthcare Corp.,
8.36%, 4/15/24 900 969,714
Commercial Credit Corp., 7.875%, 2/1/25 2,000 2,163,760
Connecticut Light and Power Co.,
7.875%, 10/1/24 3,775 4,089,760
Deere and Co., 8.95%, 6/15/19 250 282,358
General Motors Corp., 9.45%, 11/1/11 3,000 3,548,160
Grand Metropolitan Investments Corp., 3,090 3,270,796
7.45%, 4/15/35
Intermediate American Development Bank,
8.875%, 6/1/09 1,775 2,059,089
Intermediate American Development
Bank, 8.40%, 9/1/09 3,690 4,171,693
Intermediate American Development
Bank, 6.95%, 8/1/26 220 225,687
J.C. Penney, Inc., 7.40%, 4/1/37 2,050 2,109,963
Johnson Controls, Inc., 7.70%, 3/1/15 1,360 1,447,924
Lowes Cos., 7.11%, 5/15/37 3,000 3,049,740
Mead Corp., 6.84%, 3/1/37 2,000 1,993,180
Proctor and Gamble Co., 8.00%, 9/1/24 3,000 3,388,860
Seagram (Joseph) & Sons Inc.,
9.65%, 8/15/18 1,030 1,265,087
State Street Bank, 7.35%, 6/15/26 1,700 1,761,098
TRW, Inc., 9.35%, 6/4/20 900 1,079,541
Xerox Corp., 5.90%, 5/5/37 3,000 3,010,770
Xerox Corp., 5.875%, 6/15/37 1,000 996,600
- --------------------------------------------------------------------------------
Total Corporate Bonds
(identified cost $48,014,015) $ 48,578,222
- --------------------------------------------------------------------------------
U.S. Treasury Obligations -- 11.6%
<CAPTION>
Principal
Amount
(000
Security Omitted) Value
- --------------------------------------------------------------------------------
<S> <C> <C>
FHLMC, 7.95%, 5/15/20 $ 1,275 $ 1,285,216
FHLMC, 7.50%, 5/25/19 801 803,135
FHLMC, PAC, CMO, Series 1033E,
8.10%, 12/15/04 51 50,662
FHLMC, PAC, CMO, Series 34-C,
9.00%, 11/15/19 399 411,919
FHLMC, PAC, CMO, Series 41-F,
10.00%, 5/15/20 2,042 2,183,515
FHLMC, PAC, CMO, Series 59-D,
9.70%, 1/15/16 791 795,487
FNMA, PAC, CMO, Series 1990 24-E,
9.00%, 3/25/20 1,840 1,912,866
FNMA, PAC, CMO, Series 1990 82-K,
8.50%, 7/25/19 534 533,442
Tennessee Valley Power Authority,
5.98%, 4/1/36 1,350 1,360,908
U.S. Treasury Note, 6.25%, 1/31/02 4,000 3,978,120
U.S. Treasury Note, 7.125%, 9/30/99 17,000 17,347,989
U.S. Treasury Note, 8.125%, 2/15/98 6,500 6,594,444
- --------------------------------------------------------------------------------
Total U.S. Treasury Obligations
(identified cost $37,743,039) $ 37,257,703
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
10
<PAGE>
Investors Portfolio as of June 30, 1997
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Commercial Paper -- 0.8%
<TABLE>
<CAPTION>
Principal
Amount
Security (000 Omitted) Value
- -------------------------------------------------------------------------
<S> <C> <C>
Cut Group, 6.25%, 7/1/97 $ 2,470 $ 2,469,571
- -------------------------------------------------------------------------
Total Commercial Paper
(amortized cost $2,469,571) $ 2,469,571
- -------------------------------------------------------------------------
Total Investments -- 99.4%
(identified cost $225,969,697) $318,232,735
- -------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.6% $ 1,837,524
- -------------------------------------------------------------------------
Net Assets -- 100% $320,070,259
- -------------------------------------------------------------------------
</TABLE>
ADR -- American Depositary Receipt
PAC -- Planned Authorization Class
CMO -- Collateralized Mortgage Obligations
REIT -- Real Estate Investment Trust
* Non-income producing security.
See notes to financial statements
11
<PAGE>
Investors Portfolio as of June 30, 1997
FINANCIAL STATEMENTS (Unaudited)
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
As of June 30, 1997
Assets
- -------------------------------------------------------------------------
<S> <C>
Investments, at value (Note 1A)
(identified cost, $225,969,697) $318,232,735
Cash 1,164
Interest and dividends receivable 1,850,141
Tax reclaim receivable 10,717
Deferred organization expenses (Note 1E) 4,191
- -------------------------------------------------------------------------
Total assets $320,098,948
- -------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------
Accrued expenses $ 28,689
- -------------------------------------------------------------------------
Total liabilities $ 28,689
- -------------------------------------------------------------------------
Net Assets applicable to investors' interest in Portfolio $320,070,259
- -------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------
Net proceeds from capital contributions and withdrawals $227,807,221
Net unrealized appreciation of investments (computed
on the basis of identified cost) 92,263,038
- -------------------------------------------------------------------------
Total $320,070,259
- -------------------------------------------------------------------------
<CAPTION>
Statement of Operations
For the Six Months Ended
June 30, 1997
Investment Income (Note 1B)
- -------------------------------------------------------------------------
<S> <C>
Dividends (net of foreign taxes, $14,561) $ 2,105,274
Interest income 3,267,505
- -------------------------------------------------------------------------
Total income $ 5,372,779
- -------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------
Investment adviser fee (Note 3) $ 951,138
Compensation of Trustees not members of the
Investment Adviser's organization (Note 3) 4,501
Custodian fee 76,287
Legal and accounting services 17,089
Amortization of organization expenses (Note 1E) 1,583
Miscellaneous 2,069
- -------------------------------------------------------------------------
Total expenses $ 1,052,667
- -------------------------------------------------------------------------
Net investment income $ 4,320,112
- -------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- -------------------------------------------------------------------------
Net realized gain --
Investment transactions (identified cost basis) $ 5,384,493
- -------------------------------------------------------------------------
Net realized gain on investments $ 5,384,493
- -------------------------------------------------------------------------
Change in unrealized appreciation --
Investments (identified cost basis) $ 27,660,427
- -------------------------------------------------------------------------
Net change in unrealized appreciation of investments $ 27,660,427
- -------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 33,044,920
- -------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 37,365,032
- -------------------------------------------------------------------------
</TABLE>
See notes to financial statements
12
<PAGE>
Investors Portfolio as of June 30, 1997
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
Increase (Decrease) June 30, 1997 Year Ended
in Net Assets (Unaudited) December 31, 1996
- --------------------------------------------------------------------------------
<S> <C> <C>
From operations --
Net investment income $ 4,320,112 $ 9,268,008
Net realized gain on investments 5,360,203 30,748,316
Net change in unrealized
appreciation of investments 27,684,717 (2,562,219)
- --------------------------------------------------------------------------------
Net increase in net assets
from operations $ 37,365,032 $ 37,454,105
- --------------------------------------------------------------------------------
Capital transactions --
Contributions $ 14,927,701 $ 32,919,522
Withdrawals (33,783,256) (45,187,645)
- --------------------------------------------------------------------------------
Net decrease in net assets
from capital transactions $(18,855,555) $ (12,268,123)
- --------------------------------------------------------------------------------
Net increase in net assets $ 18,509,477 $ 25,185,982
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of period $301,560,782 $ 276,374,800
- --------------------------------------------------------------------------------
At end of period $320,070,259 $ 301,560,782
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
13
<PAGE>
Investors Portfolio as of June 30, 1997
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Six Months Ended Year Ended December 31, Year Ended January 31,
June 30, 1997 --------------------------- --------------------------
(Unaudited) 1996 1995* 1995 1994**
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Ratios to average daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses 0.69%+ 0.70% 0.71%+ 0.70% 0.69%+
Net investment income 2.85%+ 3.23% 3.83%+ 4.25% 3.69%+
Portfolio Turnover 15% 64% 47% 28% 15%
- ------------------------------------------------------------------------------------------------------------------------------------
Average commission rate (per share)/(1)/ $ 0.0600 $ 0.0591 $ -- $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s omitted) $320,070 $301,561 $ 276,375 $217,157 $ 230,334
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the eleven month period ended December 31, 1995.
** For the period from the start of business, October 28, 1993, to
January 31, 1994.
/(1)/ Average commission rate paid is computed by dividing the total dollar
amount of commissions paid during the fiscal year by the total number of
shares purchased and sold during the fiscal year for which commissions
were charged. For fiscal years beginning on or after September 1, 1995, a
Fund is required to disclose its average commission rate per share for
security trades on which commissions were charged.
See notes to financial statements
14
<PAGE>
Investors Portfolio as of June 30, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
1 Significant Accounting Policies
------------------------------------------------------------------------------
Investors Portfolio (the "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. 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 on the
NASDAQ National Market System 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
Internal Revenue Code) in order for its investors to satisfy them. The
Portfolio will allocate at least annually among its investors each investor's
distributive share of the Portfolio's net taxable income, net realized capital
gains, and any other items of income, gain, loss, deduction or credit.
D Expense Reduction -- Investors Bank & Trust Company (IBT) 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. All significant credit balances
used to reduce the Portfolio's custodian fees are reported as a reduction of
expenses on the Statement of Operations.
E Deferred Organization Expenses -- Costs incurred by the Portfolio in
connection with its organization are being amortized on a straight-line basis
over five years.
F 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.
G Use of Estimates -- The preparation of the financial statements in
conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported
amounts of income and expense during the reporting period. Actual results
could differ from those estimates.
H Interim Financial Information -- The interim financial statements relating
to June 30, 1997 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 Investments Transaction
------------------------------------------------------------------------------
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $34,338,433 and $45,426,011, respectively.
Purchases and sales of U.S. Government/agency securities aggregated $9,526,563
and $11,767,914, respectively.
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
15
<PAGE>
Investors Portfolio as of June 30, 1997
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
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 June 30, 1997, the fee was
equivalent to 0.624% (annualized) of the Portfolio's average net assets for
such period and amounted to $951,138. 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. Certain of the officers and Trustees of the Portfolio are
officers and directors/trustees of the above organizations.
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 group of banks. The Portfolio may temporarily borrow from the line of
credit to satisfy redemption requests or settle investment transactions.
Interest is charged to each portfolio or fund based on its borrowings at an
amount above the banks' adjusted certificate of deposit rate, eurodollar rate
or federal funds rate. In addition, a fee computed at an annual rate of 0.15%
on the daily unused portion of the line of credit is allocated among the
participating portfolios and funds at the end of each quarter. The Portfolio
did not have any significant borrowings or allocated fees during the six
months ended June 30, 1997.
5 Federal Income Tax Basis of Investments
------------------------------------------------------------------------------
The cost and unrealized appreciation (depreciation) in the value of
investments owned at June 30, 1997, as computed on a federal income tax basis,
are as follows:
<TABLE>
<S> <C>
Aggregate cost $225,945,407
------------------------------------------------------------------------------
Gross unrealized appreciation $ 94,911,569
Gross unrealized depreciation 2,624,241
------------------------------------------------------------------------------
Net unrealized appreciation $ 92,287,328
------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
16
<PAGE>
Investors Portfolio as of June 30, 1997
INVESTMENT MANAGEMENT
Investors Portfolio
Officers Independent Trustees
M. Dozier Gardner Donald R. Dwight
President and Trustee President, Dwight Partners, Inc.
Chairman, Newspapers of New England, Inc.
James B. Hawkes
Vice President and Trustee Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Thomas E. Faust, Jr. Banking, Harvard University Graduate
Vice President and School of Business Administration
Portfolio Manager
Norton H. Reamer
Michael B. Terry President and Director, United Asset
Vice President Management Corporation
James L. O'Connor John L. Thorndike
Treasurer Formerly Director, Fiduciary Company
Incorporated
Alan R. Dynner
Secretary Jack L. Treynor
Investment Adviser and Consultant
17
