The Eaton Vance Special Investment Trust
For the Emerging Markets Portfolio
[LOGO]
Annual Shareholder Report
December 31, 1996
Emerging Markets Portfolio
Portfolio of Investments -- December 31, 1996
<TABLE>
<CAPTION>
Common Stocks - 93.6%
<S> <C> <C>
Beverages - 6.2%
Pan American Beverages, Inc. 6,000 $281,250
Coca Cola franchiser
Vina Concha Y Toro ADR 16,000 376,000
Wine producer/exporter
-----------
$657,250
-----------
Commerce - 1.9%
Li & Fung Ltd. 230,000 $203,685
Trading company
-----------
Construction - 2.5%
Konsortium Perkapalan BHD 39,000 $262,470
Infrastructure logistics
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Finance - 17.9%
Banco Bradesco S.A. Pfd. 36,258,993 $262,769
Banking
Banco Totta & Acores 13,700 257,696
Banking
Corp. Banco Credito del Peru 12,500 231,250
Financial Conglomerate
Far East Bank & Trust Co. Ltd. 3,120 12,456
Far East Bank & Trust Co. Ltd. (Rights)+ 6,260 11,544
Banking
HSBC Holdings PLC 11,200 239,638
Banking
Kwong Yik Bank 57,000 200,831
Banking
Rashid Hussein BHD 70,000 462,787
Financial Conglomerate
Yuanta Securities Co. Ltd. 7,770 20,343
Securities firm
Zagrebacka Banka GDR 10,000 203,750
Banking
-----------
$1,903,064
-----------
Manufacturing - 12.5%
Brasmotor S.A. Pfd. 410,000 $113,839
White goods manufacturer
Compania Siderurgica Nacio 9,000,000 255,522
Steel manufacturer
Hindalco Industries Ltd. GDR 10,000 246,250
Aluminum manufacturer
Larsen & Toubro Ltd GDR (New) 10,000 145,750
Engineering and manufacturing
Pliva D.D. GDR Reg S 2,000 106,000
Generic pharmaceutical manufacturer
Tata Engineering & Locomotion GDR 9,720 103,275
Tata Engineering & LocomotionSP GDR 10,000 106,250
Heavy equipment manufacturer
Yung Shin Pharmaceutical Ind. 86,000 258,000
Pharmaceutical manufacturer
-----------
$1,334,886
-----------
Media - 5.8%
Star Publications 76,000 $299,367
Newspaper and magazine publisher
Grupo Radio ADR 30,000 206,250
Radio station
Matichon Public Co. Ltd. 43,500 112,778
Newspaper publisher
-----------
$618,395
-----------
Multi-Industry - 17.7%
Alsons Consolidated Resources 2,200,000 $182,357
Electric power/cement
Belle Corporation 1,200,000 333,080
Tourism/gaming/property
Benpres Holdings 38,000 285,000
Property/telecommunications/power
Cheung Kong 33,000 293,310
Property/infrastructure
Hutchison Whampoa 30,000 235,618
Property/telecommunications
John Keells Holdings GDR 1,429 9,646
Tourism/trading/agriculture
Meikles Africa Limited 189,100 279,868
Tourism/hotels/retail stores
Poland (Govt. of) Privatisation 5,400 267,885
Diversified conglomerate
-----------
$1,886,764
-----------
Property - 5.2%
New World Development 60,000 $405,301
Property developer
Solidere GDR 13,000 149,500
Property developer
-----------
$554,801
-----------
Retail - 13.9%
Compania Brasileira de Distrib. GDR 14,000 $244,090
Supermarket chain
Disco S A ADR 10,000 282,500
Supermarket chain
KFC Holdings (Malaysia) BHD 60,000 247,031
KFC Holdings (Malaysia) BHD (Warrants)+ 8,000 9,565
Fast food chain
Pizza Co. (Thailand) Ltd. (Foreign) 45,000 263,158
Fast food chain
PT Hero Supermarket (Foreign) 300,000 222,222
Supermarket chain
Super Sol 8,600 210,660
Supermarket chain
-----------
$1,479,226
-----------
Telecommunications - 5.8%
Compania de Telecomunicaciones ADR 2,400 $242,400
International phone and media company
Korea Mobile Telecom Corp. 60 60,872
Korea Mobile Telecom 144A ADR 7,725 99,459
Mobile telecommunications operator
PT Telecomunikasion (Foreign) 125,000 215,608
International telecommunications operator
-----------
$618,339
-----------
Utilities - 4.2%
Korea Electric Power Corp. ADR 11,500 $235,750
Electric power utilities
Mosenergo-RDC 144 ADR 7,000 217,000
-----------
Gas power utilities
$452,750
-----------
Total Common Stocks (identified cost, $8,135,381) $9,971,630
Other Assets, less Liabilities - 6.4% 686,897
-----------
Net Assets - 100% $10,658,527
===========
+ Non income producing
See notes to financial statements.
</TABLE>
Country concentration - Below are the countries represented
in the Portfolio of Investments (unaudited)
Percentages
Country of Net Assets Value
- ------------ -------------- -------------
Argentina 2.7% $282,500
Brazil 8.2 876,220
Chile 5.8 618,400
Croatia 1.0 106,000
Hong Kong 12.9 1,377,552
Hungary 1.9 203,750
India 5.7 601,525
Indonesia 4.1 437,830
Israel 2.0 210,660
Republic of Korea 3.7 396,081
Lebanon 1.4 149,500
Malaysia 13.9 1,482,051
Mexico 4.6 487,500
Peru 2.2 231,250
Philippines 7.8 824,437
Poland 2.5 267,885
Portugal 2.4 257,696
Russia 2.0 217,000
South Africa 2.6 279,868
Sri Lanka 0.1 9,646
Taiwan 2.6 278,343
Thailand 3.5 375,936
See notes to financial statements
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
December 31, 1996
<S> <C> <C>
Assets:
Investments, at value (Note 1A) (identified cost, $8,135,381) $ 9,971,630
Cash 399,281
Receivable for investments sold 316,445
Dividends receivable 12,101
Deferred organization expenses (Note 1D) 11,102
Tax reclaim receivable 199
-----------
Total assets $10,710,758
Liabilities:
Payable to affiliates --
Trustees' fees $ 1,268
Accrued expenses and other liabilities 5,538
Bank overdraft 45,425
-----------
Total liabilities 52,231
-----------
Net Assets applicable to investors' interest in Portfolio $10,658,527
===========
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals $ 8,822,414
Net unrealized appreciation of investments
(computed on the basis of identified cost) 1,836,249
Net unrealized depreciation of foreign currencies (136)
-----------
Total $10,658,527
===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the Year Ended December 31, 1996
<S> <C> <C>
Investment Income:
Dividend income (net of foreign withholding tax of $9,218) $ 121,828
Expenses --
Investment adviser fee (Note 2) $ 62,401
Administration fee (Note 2) 20,096
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 13,376
Custodian fees 63,743
Legal and accounting services 15,747
Amortization of organization expenses (Note 1D) 4,795
Miscellaneous 6,913
----------
Total expenses $ 187,071
----------
Deduct --
Waiver of investment adviser fee (Note 2) $ (44,320)
Allocation of expenses to the Administrator (Note 2) (14,221)
Reduction of custodian fee (Note 1C) (18,112)
----------
Total deducted $ (76,653)
----------
Net expenses 110,418
----------
Net investment income $ 11,410
----------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) (identified cost basis) --
Investments $ 164,066
Foreign currency (24,364)
----------
Net realized gain $ 139,702
Change in unrealized appreciation --
Investments $1,561,079
Foreign currency 276
----------
Change in unrealized appreciation of investments 1,561,355
----------
Net realized and unrealized gain on investments $1,701,057
----------
Net increase in net assets from operations $1,712,467
==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended December 31,
------------------------------------
1996 1995
-------------- --------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income (loss) $ 11,410 $ (23,217)
Net realized gain (loss) on investments
and foreign currency transactions 139,702 (147,448)
Change in unrealized appreciation 1,561,355 281,463
----------- -----------
Net increase in net assets from operations $ 1,712,467 $ 110,798
----------- -----------
Capital transactions --
Contributions $11,229,400 $ 3,550,731
Withdrawals (5,870,609) (1,269,530)
----------- -----------
Increase in net assets from capital transactions $ 5,358,791 $ 2,281,201
----------- -----------
Net increase in net assets $ 7,071,258 $ 2,391,999
Net Assets:
At beginning of year 3,587,269 1,195,270
----------- -----------
At end of year $10,658,527 $ 3,587,269
=========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Supplementary Data
Year Ended December 31,
--------------------------------------------
1996 1995 1994*
---------- ---------- ----------
<S> <C> <C> <C>
Ratios (to average daily net assets):**
Net expenses (1) 1.54% 2.58% 0.00%
Net expenses after custodian fee reduction 1.32% 2.58% --
Net investment income (loss) 0.14% (1.00%) 0.00%
Portfolio Turnover 125% 98% 0%
Net assets, end of year (000's omitted) $10,659 $ 3,587 $ 1,195
Average Commission Rate Paid (2) $0.0029 -- --
**The operating expenses of the Portfolio reflect an allocation of expenses to the Administrator
and a waiver of investment advisor fees. Had such actions not been taken, the ratios would have
been as follows:
Expenses (1) 2.24% 5.24% 2.21%+
Expenses after custodian fee reduction 2.02% 5.24% --
Net investment loss (0.56%) (3.66%) (2.21%)+
+ Annualized.
* For the period from the start of business, November 30, 1994, to December 31, 1994.
(1) The expense ratios for the years ended December 31, 1996 and 1995 have been adjusted to
reflect a change in reporting requirements. The new reporting guidelines require the
Portfolio to increase its expense ratio by the effect of any expense offset arrangements
with its service providers. The expense ratios for the period ended on December 31, 1994
have not been adjusted to reflect this change.
(2) 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.
See notes to financial statements
</TABLE>
Emerging Markets
Portfolio
24 Federal Street
Boston, MA 02110
Officers
Hon. Robert Lloyd George
President, Trustee
James B. Hawkes
Vice President, Trustee
Scobie Dickinson Ward
Vice President, Assistant
Secretary and Assistant Treasurer
William Walter Raleigh Kerr
Vice President,
Assistant Treasurer
James L. O'Connor
Vice President, Treasurer
Thomas Otis
Vice President, Secretary
Trustees
Hon. Edward K.Y. Chen
Professor and Director, Center for
Asian Studies, University of
Hong Kong
Donald R. Dwight
President, Dwight Partners, Inc.
Chairman, Newspapers of New
England, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of
Investment Banking, Harvard
University Graduate School of
Business Administration
Norton H. Reamer
President and Director, United
Asset Management Corporation
