<PAGE>
The Eaton Vance Special Investment Trust
For the Total Return Portfolio
[LOGO]
Semi-Annual Shareholder Report
June 30, 1996
Investment Adviser of Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Administrator
Eaton Vance Management
24 Federal Street
Boston, MA 02110
(617) 482-8260
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
89 South Street
P.O. Box 1537
Boston MA 02205-1537
Transfer Agent
First Data Investor Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
<PAGE>
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PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(UNAUDITED)
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COMMON STOCKS - 74.6%
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NAME OF COMPANY SHARES VALUE
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BUSINESS PRODUCTS & SERVICES - 0.4%
Checkpoint Systems Inc. 50,000 $ 1,718,750
------------
COMPUTER SOFTWARE - 0.2%
Edmark Corp.* 40,000 $ 800,000
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ELECTRIC UTILITIES - 43.0%
Carolina Power & Light Co. 300,000 $ 11,400,000
Central Louisiana Electric Co. 200,000 5,325,000
Cilcorp Inc. 58,900 2,517,975
Cinergy Corp. 675,000 21,600,000
DPL Inc. 650,000 15,843,750
DQE, Inc. 468,900 12,894,750
Edison International 950,000 16,743,750
FPL Group, Inc. 325,000 14,950,000
Houston Industries, Inc. 275,000 6,771,875
LG & E Energy Corp. 174,400 3,989,400
Long Island Lighting 100,000 1,675,000
National Grid Holdings* 706,155 1,870,746
National Power PLC ORD* 4,000,000 23,990,400
NIPSCO Industries, Inc. 375,000 15,093,750
Northern States Power Co. Minn. 50,000 2,468,750
PECO Energy Co. 200,000 5,200,000
Pinnacle West Capital Corp. 350,000 10,631,250
Portland General Electric Corp. 190,000 5,866,250
PowerGen ORD* 1,300,000 6,665,750
PowerGen PLC* 6,024 44,085
Sierra Pacific Resources 10,800 274,050
Southern Co. 475,000 11,696,875
Southern Electric* 100,000 1,109,410
Teco Energy, Inc. 300,000 7,575,000
Unicom Corporation 225,000 6,271,875
Union Electric Co. 50,000 2,012,500
WPS Resources Corp. 50,000 1,581,250
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$216,063,441
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FINANCIAL SERVICES - 6.0%
Bank Plus Corp.* 406,185 $ 3,554,119
Financial Federal Corp.* 120,000 1,875,000
First Defiance Financial Corp. 250,000 2,593,750
GCR Holdings Ltd. 350,000 9,275,000
PMI Group, Inc.* 40,400 1,717,000
Security First Network Bank* 75,000 2,475,000
Southern Pacific Funding 50,000 875,000
Student Loan Marketing Association 20,000 1,480,000
Surety Capital Corp.* 150,000 684,375
Wells Fargo & Co. 24,000 5,733,000
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$ 30,262,244
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HEALTHCARE SERVICES - 0.2%
Emeritus Corp.* 33,300 $ 586,913
Visible Genetics, Inc.* 62,000 604,500
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$ 1,191,413
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MEDIA - 0.4%
Ovation Inc.* 238,168 $ 2,214,962
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NATURAL GAS UTILITIES - 1.2%
K N Energy 100,000 $ 3,350,000
Wicor Inc. 75,000 2,831,250
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$ 6,181,250
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REITS - 4.0%
Cali Realty Corp. 150,000 $ 3,637,500
Health Care Property Investors, Inc. 100,000 3,375,000
Hospitalities Properties Trust 150,000 4,012,500
LTC Properties, Inc. 150,000 2,475,000
Redwood Trust, Inc. 125,000 3,500,000
Sun Communities Inc. 110,000 2,956,250
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$ 19,956,250
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TELECOMMUNICATIONS - 0.6%
Alcatel Alsthon Sponsored ADR 1 $ 16
American Telecasting Inc.* 180,000 2,385,000
Western Wireless Corp. Class A* 25,300 540,788
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$ 2,925,804
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TELEPHONE UTILITIES - 18.6%
ACC Corp. 85,000 $ 4,133,125
AT&T Corp. 100,000 6,200,000
American Portable Telecom* 25,000 262,500
Ameritech Corp. 75,000 4,453,125
Bellsouth Corp. 100,000 4,237,500
Brooks Fiber Properties Inc.* 30,000 990,000
CAI Wireless Systems, Inc.* 150,000 1,387,500
Clearnet Communications* 101,000 1,691,750
Comcast UK Cable Partners Ltd.* 85,000 1,083,750
Excel Communications, Inc.* 15,000 405,000
Frontier Corp. 800,000 24,500,000
GTE Corp. 125,000 5,593,750
Intercel Inc.* 190,000 3,800,000
Metromedia International Group, Inc.* 100,000 1,225,000
Midcom Communications, Inc.* 324,900 4,670,437
Nextel Communications Inc. 100,000 1,906,250
Omnipoint Corp. 30,000 780,000
Peoples Choice TV Corp.* 100,000 1,825,000
SBC Communications, Inc. 175,000 8,618,750
Sprint Corp. 10,000 420,000
Tele Save Holdings, Inc.* 250,000 5,312,500
Telephone & Data Systems, Inc. 50,000 2,250,000
Teleport Communications, Inc.* 22,000 420,750
Trescom International, Inc.* 350,000 3,500,000
U.S. West Inc. 125,000 3,984,375
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$ 93,651,062
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TOTAL COMMON STOCKS
(IDENTIFIED COST, $298,760,882) 374,965,176
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CONVERTIBLE PREFERRED STOCKS - 6.2%
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Allstate Corp., 2.30s 40,000 $ 1,580,000
First Washington Realty Trust, 9.75s 45,000 1,136,250
Freeport McMoRan Copper & Gold 90,000 2,452,500
Philippines Long Distance Telephone, 7s 194,000 10,573,000
Prime Retail Inc. Series B 365,000 6,570,000
Sovereign Bancorp. Class B 30,500 1,730,875
Sun Co. Inc. 75,000 2,212,500
Walden Residential 200,000 5,000,000
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TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST, $37,166,820) $ 31,255,125
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PREFERRED STOCKS - 1.4%
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Fidelity Federal Bank, 12s 250,000 $ 6,875,000
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TOTAL PREFERRED STOCKS
(IDENTIFIED COST, $6,262,500) $ 6,875,000
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CONVERTIBLE BONDS - 10.5%
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FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
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Assisted Living, 7s, 8/15/05 $ 2,000 $ 2,762,500
Bank Atlantic Banc, 6.75s, 7/1/06 5,000 5,000,000
Emeritus Corp., 6.25s, 1/1/06 5,000 5,062,500
Fort Bend Holdings Corp., 8s, 12/1/05 2,000 2,002,500
International Cabletel, Inc., 7s, 6/15/08 6,000 5,910,000
LTC Properties Inc., 7.75s, 1/1/02 5,000 5,037,500
Novacare Inc. 5.5s, 1/15/00 10,000 8,850,000
Ovation Inc., 9.75s, 2/22/01 2,000 2,000,000
Republic of Italy, 5s, 6/28/01 3,000 3,067,500
Sterling House, 6.75s, 6/30/06 3,500 3,482,500
Theratx Inc., 8s, 2/1/02 5,500 5,431,250
VLSI Technology, 8.25s, 10/1/05 5,000 4,418,750
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TOTAL CONVERTIBLE BONDS
(IDENTIFIED COST, $44,601,651) $ 53,025,000
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SHORT-TERM OBLIGATIONS - 4.9%
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Associates Corp. of North America,
5.51s, 7/1/06 $14,501 $ 14,501,000
Ford Motor Co., 5.37s, 7/3/96 10,000 9,997,017
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TOTAL SHORT-TERM OBLIGATIONS,
AT AMORTIZED COST $ 24,498,017
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TOTAL INVESTMENTS - 97.6%
(IDENTIFIED COST, $411,289,870) $490,618,318
OTHER ASSETS, LESS LIABILITIES - 2.4% 11,983,233
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NET ASSETS - 100% $502,601,551
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* Non-income producing security
ADR-American Depository Receipt
REIT-Real Estate Investment Trust
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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June 30, 1996 (Unaudited)
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ASSETS:
Investments, at value (Note 1A) (identified cost,
$411,289,870) $490,618,318
Cash 331
Receivable for investments sold 24,040,785
Dividends receivable 1,351,538
Interest receivable 1,005,065
Deferred organization expenses (Note 1G) 9,783
Foreign tax reclaim receivable 36,150
Other receivables 15,213
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Total assets $517,077,183
LIABILITIES:
Payable for investments purchased $14,344,497
Demand note payable 44,000
Payable to affiliate --
Trustees' fees 5,330
Accrued expenses and other liabilities 81,805
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Total liabilities 14,475,632
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NET ASSETS applicable to investors' interest in Portfolio $502,601,551
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SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $423,272,337
Unrealized appreciation of investments
(computed on the basis of identified cost) 79,329,214
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Total net assets $502,601,551
============
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF OPERATIONS
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For the Six Months Ended June 30, 1996 (Unaudited)
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INVESTMENT INCOME:
Dividend income (net of withholding tax of
$86,123) $11,078,468
Interest income 2,207,695
-----------
Total income $13,286,163
Expenses --
Investment adviser fee (Note 3) $ 1,901,471
Compensation of Trustees not members of the
Investment Adviser's organization (Note 3) 10,938
Custodian fee (Note 1C) 105,131
Commitment fee 75,713
Legal and accounting services 33,712
Amortization of organization expenses (Note 1G) 2,047
Miscellaneous 3,014
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Total expenses 2,132,026
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Net investment income $11,154,137
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis) $ 31,017,686
Change in unrealized appreciation of
investments (17,261,638)
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Net realized and unrealized gain (loss) on
investments 13,756,048
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Net increase in net assets resulting from
operations $24,910,185
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The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
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SIX MONTHS
ENDED
JUNE 30, 1996 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1995
------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 11,154,137 $ 24,296,939
Net realized gain on investment
transactions 31,017,686 16,628,404
Change in unrealized appreciation of
investments (17,261,638) 82,965,652
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Net increase in net assets from
operations $ 24,910,185 $ 123,890,995
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Capital transactions --
Contributions $ 11,044,019 $ 29,142,153
Withdrawals (55,022,978) (136,929,715)
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Decrease in net assets resulting from
capital transactions $(43,978,959) $(107,787,562)
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Total increase (decrease) in net
assets $(19,068,774) $ 16,103,433
NET ASSETS:
At beginning of period 521,670,325 505,566,892
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At end of period $502,601,551 $ 521,670,325
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SUPPLEMENTARY DATA
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<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1996 -----------------------------------------
(UNAUDITED) 1995 1994 1993*
------------- ---- ---- -----
<S> <C> <C> <C> <C>
RATIOS (to average daily net assets):
Expenses 0.71%+ 0.84% 0.85% 0.91%+
Net investment income 3.83%+ 4.83% 5.22% 4.57%+
PORTFOLIO TURNOVER 47% 103% 107% 16%
AVERAGE COMMISSION RATE PAID(1) $0.042 -- -- --
LEVERAGE ANALYSIS:
Average daily balance of debt
outstanding during period
(000's omitted) $ 30 $232 $3,137 $15,452
<FN>
+ Computed on an annualized basis.
* For the period from the start of business, October 28, 1993, to December 31, 1993.
(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 are charged.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(UNAUDITED)
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(1) SIGNIFICANT ACCOUNTING POLICIES
Total Return Portfolio (the Portfolio) is registered under the Investment
Company Act of 1940 as a diversified open-end investment company which was
organized as a trust under the laws of the State of New York on May 1, 1992. The
Declaration of Trust permits the Trustees to issue beneficial 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 in the
NASDAQ National Market are valued at closing sales prices or, if there has been
no sale, at the mean between the closing bid and asked prices. Unlisted
securities are valued at the mean between the latest available bid and asked
prices. Options and financial futures contracts are valued at the last sale
price, as quoted on the principal exchange or board of trade on which such
options or contracts are traded or, in the absence of a sale, the mean between
the last bid and asked prices. Short-term obligations, maturing in 60 days or
less, are valued at amortized cost, which approximates value. Securities for
which market quotations are unavailable are appraised at their fair value as
determined in good faith by or at the direction of the Trustees.
B. INCOME 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 normally 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 investment income, net realized capital gains, and
any other items of income, gain, loss, deduction or credit.
C. EXPENSE REDUCTION -- The Fund has entered into an arrangement with its
custodian agent whereby interest earned on uninvested cash balances are used to
offset custody fees. All significant reductions are reported as a reduction of
expenses in the Statement of Operations.
D. OPTION ACCOUNTING PRINCIPLES -- Upon the writing of a covered call option, an
amount equal to the premium received by the Portfolio is included in the
Statement of Assets and Liabilities as a liability. The amount of the liability
is subsequently marked-to-market to reflect the current market value of the
option written in accordance with the Portfolio's policies on investment
valuations discussed above. Premiums received from writing call options which
expire are treated as realized gains. Premiums received from writing call
options which are exercised or are closed are added to or offset against the
proceeds or amount paid on the transaction to determine the realized gain or
loss. The Portfolio, as writer of a call option, may have no control over
whether the underlying securities may be sold and, as a result, bears the market
risk or an unfavorable change in the price of the securities underlying the
written option.
E. FINANCIAL FUTURES CONTRACTS -- Upon the entering of a financial futures
contract, the Portfolio is required to deposit an amount ("initial margin")
either in cash or securities equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by the Portfolio ("margin maintenance") each day, dependent on the
daily fluctuations in the value of the underlying security, and are recorded for
book purposes as unrealized gains or losses by the Portfolio. When the Portfolio
enters into a closing transaction, the Portfolio will realize for book purposes
a gain or loss equal to the difference between the value of the financial
futures contract to sell and the financial futures contract to buy. The
Portfolio's investment in financial futures contracts is designed only to hedge
against anticipated future changes in interest rates, security prices, commodity
prices or currency exchange rates. Should interest rates, security prices,
commodity prices or currency exchange rates move unexpectedly, the Portfolio may
not achieve the anticipated benefits of the financial futures contracts and may
realize a loss.
F. DELAYED DELIVERY TRANSACTIONS -- The Fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take place
at a period in time after the date of the transaction. At the time the
transaction is negotiated, the price of the security will be delivered and paid
for are fixed. Losses may arise due to changes in the market value of the
underlying securities if the counterparty does not perform under the contract.
G. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
H. OTHER -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income is recorded on the ex-
dividend date. Realized gains and losses on the sale of investments are
determined on the identified cost basis.
I. 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
revenue and expense during the reporting period. Actual results could differ
from those estimates.
J. INTERIM FINANCIAL INFORMATION -- The interim financial statements relating to
June 30, 1996 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.
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(2) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than short-term obligations,
aggregrated $432,444,947 and $478,664,674, 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 based upon a percentage of average daily net asets. For the six months ended
June 30, 1996, the fee was equivalent to 0.75% of the Portfolio's average net
assets for such period and amounted to $1,901,471. 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 services 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. 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 June 30,
1996, 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. The Portfolio expects to use the proceeds
of the advances primarily for leveraging purposes. Borrowings by the Portfolio
under the Credit Agreement will not exceed the lesser of 1/3 of the market value
of the net assets of the Portfolio or $60,000,000. Interest is charged to each
portfolio 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. At June 30, 1996, the Portfolio
had a balance outstanding pursuant to this line of credit amounting to $44,000.
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(5) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/depreciation in value of the investments
owned at June 30, 1996, as computed on a federal income tax basis, are as
follows:
Aggregate cost $411,289,870
============
Gross unrealized appreciation $ 83,388,515
Gross unrealized depreciation 4,060,067
------------
Net unrealized appreciation $ 79,328,448
============
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(6) FINANCIAL INSTRUMENTS
The Portfolio may trade in financial instruments with off-balance sheet risk in
the normal course of its investing activities to assist in managing exposure to
various market risks. These financial instruments include written options,
forward foreign currency exchange contracts, and financial futures contracts and
may involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. The notional or contractual amounts
of these instruments represent the investment the Portfolio 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.
At June 30, 1996 there were no outstanding obligations under these financial
instruments.
<PAGE>
INVESTMENT MANAGEMENT FOR TOTAL RETURN PORTFOLIO
OFFICERS DIRECTORS
JAMES B. HAWKES LANDON T. CLAY
President, Director Chairman, Eaton Vance Corp.
MARK S. VENEZIA DONALD R. DWIGHT
Vice President President, Dwight Partners, Inc.
Chairman, Newspapers of
JAMES L. O'CONNOR New England, Inc.
Tresurer
SAMUEL L. HAYES, III
THOMAS OTIS Jacob H. Schiff Professor of
Secretary Investment Banking,
Harvard University Graduate School
of Business Administration
NORTON H. REAMER
President and Director, United Asset
Management Corporation
JOHN L. THORNDIKE
Director,
Fiduciary Company Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
