|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: NATIONAL HEALTH LABORATORIES HOLDINGS INC, S-4/A, 1995-03-31 |
Next: SAFECO ADVISOR SERIES TRUST, 485BPOS, 1995-03-31 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-8A
AMENDMENT TO NOTIFICATION OF REGISTRATION
FILED PURSUANT TO SECTION 8(a) OF THE
INVESTMENT COMPANY ACT OF 1940
The undersigned investment company hereby amends its notification of
registration filed with the Securities and Exchange Commission on March 31,
1994 pursuant to the provisions of Section 8(a) of the Investment Company Act
of 1940 and in connection with such amendment to notification of registration
submits the following information:
Name: High Income Portfolio
Address of Principal Business Office:
The Bank of Nova Scotia Trust Company (Cayman) Ltd.
The Bank of Nova Scotia Building
P. O. Box 501
George Town
Grand Cayman, Cayman Islands
British West Indies
Telephone Number: (809) 949-2001
Name and address of agent for service of process:
Thomas Otis
24 Federal Street
Boston, Massachusetts 02110
Check Appropriate Box:
Registrant is filing a Registration Statement pursuant to Section 8(b)
of the Investment Company Act of 1940 concurrently with the filing of
this amended Form N-8A: YES [ ] NO [X]
Item 1. Name of Registrant: High Income Portfolio.
Item 2. State and Date of Organization: New York; May 1, 1992.
Item 3. Form of Organization: Trust.
Item 4. Classification of Registrant: Management Company.
Item 5(a). Registrant is an open-end company.
Item 5(b). Registrant is a diversified company.
Item 6. Investment Adviser of Registrant: Boston Management and Research,
24 Federal Street, Boston, MA 02110.
<PAGE> 2
Item 7. Board of Trustees of Registrant:
Donald R. Dwight (1)
M. Dozier Gardner*
James B. Hawkes*
Samuel L. Hayes, III (2)
Norton H. Reamer (3)
John L. Thorndike (4)
Jack L. Treynor (5)
Officers of Registrant:
President: M. Dozier Gardner*
Vice President: James B. Hawkes*
Vice President: Hooker Talcott*
Vice President: Carmen Thompson (6)
Vice President: Paul Lauret (6)
Vice President: Raymond O'Neill (7)
Secretary: Thomas Otis*
Treasurer: James L. O'Connor*
Assistant Secretary/
Assistant Treasurer: Janet E. Sanders*
Assistant Treasurer: Barbara E. Campbell*
Assistant Secretary: A. John Murphy*
The address for each of the above-named Trustees and Officers
of Registrant is as follows: (1) Clover Mill Lane, Lyme, NH
03768; (2) Harvard University Graduate School of Business
Administration, Soldiers Field Road, Boston, MA 02163; (3) One
International Place, Boston, MA 02110; (4) 175 Federal Street,
Boston, MA 02110; (5) 504 Via Almar, Palos Verdes Estates, CA
90274; (6) The Bank of Nova Scotia Trust Company (Cayman)
Ltd., The Bank of Nova Scotia Building, P. O. Box 501, George
Town, Grand Cayman, Cayman Islands, British West Indies; (7)
Earlsfort Terrace, Dublin 2, Ireland; *24 Federal Street,
Boston, MA 02110.
Item 8. Inapplicable.
Item 9(a). No; Registrant is not currently issuing and offering its
securities directly to the public.
Item 9(b). Inapplicable.
Item 9(c). No; Registrant does not presently propose to make a public
offering of its securities.
Item 9(d). Yes.
Item 9(e). As of March 23, 1995, there were four beneficial owners of
Registrant's outstanding securities. As of March 23, 1995,
EV Marathon High Income Fund held 99.5% of the outstanding
securities of the Registrant. No other Holders of Interests
held more than 10% of the Registrant's outstanding securities
as of that date.
Item 10. Current Value of Registrant's Assets: $440,197,658.
Item 11. No.
Item 12. September 30, 1994 Report to Investors
<PAGE> 3
SIGNATURE
---------
Pursuant to the requirements of the Investment Company Act of 1940,
the Registrant has caused this Amendment to Notification of Registration to be
duly signed on its behalf in the City of Boston, Commonwealth of Massachusetts
on the 30th day of March, 1995.
HIGH INCOME PORTFOLIO
By /s/ James B. Hawkes
-------------------
James B. Hawkes
Vice President
Attest: /s/ M. Dozier Gardner
---------------------
M. Dozier Gardner
President
<PAGE> 4
<TABLE>
HIGH INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1994
<CAPTION>
-------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES - 94.6%
-------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
-------------------------------------------------------------------------------------
<S> <C> <C>
AUTOMOTIVE/TRUCK - 3.8%
$3,800,000 JPS Automotive Products, Sr. Notes,
11.125%, 6/15/2001 $ 3,828,500
6,375,000 Motor Wheel Corp., Sr. Sub. Notes,
11.50%, 3/1/2000 6,311,250
5,600,000 Truck Components, Sr. Notes
12.75%, 6/30/2001 5,936,000
------------
$ 16,075,750
------------
CHEMICALS - 2.7%
$3,500,000 Huntsman Corp., 1st Mtg. Notes,
11%, 4/15/2004 $ 3,640,000
2,000,000 Huntsman Corp., 1st Mtg. Notes,
10.625%, 4/15/2001 2,040,000
1,700,000 UCC Investors, St. Sub. Notes,
11%, 5/1/2003 1,751,000
3,000,000 UCC Investors Holding Inc., Sub Disc.
Debs., 12% (0% until 1998) 5/1/2005 2,010,000
2,050,000 UCC Investors, Sr. Notes, 10.5%, 5/1/2002 2,070,500
------------
$ 11,511,500
------------
CONSUMER GOODS - 1.9%
$2,400,000 FM Holdings, Inc., Accr. Debs.,
13.125%, 9/15/2005 $ 2,400,000
1,600,000 K-III Communications, Sr. Notes,
10.25%, 6/1/2004 1,568,000
4,000,000 Newflo Corp., Sub. Notes, 13.25%, 11/15/2002 4,200,000
------------
$ 8,168,000
------------
CONTAINERS - 6.8%
$2,000,000 Anchor Glass Containers, Sr. Sub. Debs.,
10.25%, 6/30/2002 $ 2,020,000
3,000,000 Anchor Glass Containers, Sr. Sub. Debs.,
9.875%, 12/15/2008 2,730,000
3,325,000 Container Corp. of America, Sr. Notes,
9.75%, 4/1/2003 3,208,625
2,400,000 Container Corp. of America, Sr. Notes,
10.75%, 5/1/2002 2,472,000
6,500,000 Gaylord Container Corp., Sr. Sub. Disc.
Debs., 12.75% (0% until 1996) 5/15/2005 5,500,625
1,500,000 Silgan Corporation, Sr. Sub. Notes,
11.75%, 6/15/2002 1,545,000
5,000,000 Silgan Corporation, Sr. Sub. Notes,
13.25% (0% until 1996),
12/15/2002 4,075,000
2,400,000 Stone Container Corp., Sr. Notes
9.875%, 2/1/2001 2,256,000
</TABLE>
11
<PAGE> 5
PORTFOLIO OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES (Continued)
-----------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
-----------------------------------------------------------------------------------
<S> <C> <C>
CONTAINERS (Continued)
2,000,000 Stone Container Corp., Sr. Sub. Debs.,
10.75%, 10/1/2002 1,987,060
3,200,000 Stone Container Corp., Sr. Sub. Debs.,
12.625%, 7/15/1998 3,352,000
------------
$ 29,146,310
DRUGS - 0.8% ------------
$3,400,000 Duane Reade G.P., Sr. Notes,
12%, 9/15/2002 $ 3,332,000
------------
ENERGY- 1.0%
$4,800,000 Mesa Capital Corp., Sec. Disc. Notes,
12.75% (0% until 1995) 6/30/1998 $ 4,242,000
------------
FOOD - 4.0%
$2,930,000 Americold Corp., First Mtg. Notes,
11.5%, 3/1/2005 $ 2,622,350
4,787,000 Flagstar Corp., Sub. Debs.,
11.25%, 11/1/2004 4,104,853
5,200,000 Purina Mills, Sr. Sub. Notes,
10.25%, 9/1/2003 5,161,000
3,200,000 Specialty Foods Corp., Sr. Disc. Debs.,
13% (0% until 1999) 8/15/2005 1,184,000
2,000,000 Specialty Foods Corp., Sr. Notes,
10.25%, 8/15/2001 1,840,000
2,600,000 Specialty Foods Corp., Sr. Sub. Notes,
11.25%, 8/15/2003 2,197,000
------------
$ 17,109,203
HEALTH - 3.7% ------------
$2,450,000 American Medical Intl. Inc., Sr. Sub.
Notes, 13.5%, 8/15/2001 $ 2,731,750
3,000,000 Hallmark Healthcare Corp., Sr. Sub. Notes,
10.625%, 11/15/2003 3,030,000
5,300,000 Healthtrust Inc., Sub. Notes,
10.25%, 4/15/2004 5,459,000
4,700,000 Ordna Corp., Sr. Sub. Notes,
11.375%, 8/15/2004 4,747,000
------------
$ 15,967,750
------------
HOME BUILDING - 5.2%
$ 950,000 American Standard Inc., Sub. Disc. Debs.,
14.25%, 6/30/2003 $ 977,075
3,500,000 American Standard, Sr. Notes,
11.375%, 5/15/2004 3,727,500
5,800,000 Building Materials, Sr. Disc. Notes,
11.75% (0% until 2000) 7/1/2004 3,103,000
</TABLE>
12
<PAGE> 6
<TABLE>
<CAPTION>
------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES (Continued)
------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
------------------------------------------------------------------------------
<S> <C> <C>
HOME BUILDING (Continued)
3,850,000 Formica Corp., Sub. Disc. Debs.,
15.75%, 10/1/2001 3,965,500
900,000 Formica Corp., Sr. Sub. Notes,
14%, 10/1/1999 940,500
2,000,000 Overhead Door Corp., Sr. Notes,
12.25%, 2/1/2000 2,060,000
3,600,000 Tarkett International, Sr. Sub. Notes,
9.00%, 3/1/2002 3,366,000
2,850,000 USG Corp., Sr. Notes, 8.75%, 3/1/2017 2,451,000
1,600,000 USG Corp., Sr. Notes, 10.25%, 12/15/2002 1,628,000
------------
$ 22,218,575
------------
HOTEL & RESTAURANT - 1.9%
$5,000,000 American Restaurant Group, Sr. Notes,
12%, 9/15/1998 $ 4,750,000
1,000,000 American Restaurant Group, Sr. Notes,
12%, 9/15/1998 950,000
2,259,500 Host Marriott, Sr. Notes, 11.25%, 7/18/2005 2,304,690
-----------
$ 8,004,690
INDUSTRIAL - 7.8% -----------
$2,800,000 Clevite Industries Inc., Sub. Debs.,
12.375%, 6/30/2001 $ 1,064,000
7,200,000 Dial Call Communications, Sr. Disc.
Notes, 12.25% (0% until 1999) 4/15/2004 3,816,000
2,450,000 Foamex L.P., Sr. Notes, 11.25%, 10/1/2002 2,474,500
4,800,000 GI Holdings Corp., Sr. Disc. Notes,
11.125%, 10/1/1998 2,976,000
5,400,000 NL Industries Inc., Sr. Sec. Notes,
11.75%, 10/15/2003 5,535,000
4,250,000 NL Industries Inc., Sr. Sec. Disc. Notes,
13% (0% until 1998), 10/15/2005 2,677,500
5,800,000 Nortek Inc., Sr. Sub. Notes,
9.875%, 3/1/2004 5,394,000
5,300,000 Plastic Specialties & Tech., Sr. Sec. Notes
11.25%, 12/1/2003 4,876,000
1,750,000 Southdown Inc., Sr. Sub. Notes,
14%, 10/15/2001 1,942,500
2,675,000 Southwest Forest Ind. Inc., Sub. Debs.,
12.125%, 9/15/2001 2,688,375
------------
$ 33,443,875
LEISURE - 3.3% ------------
$2,400,000 Bally's Park Place, First Mtg. Bonds,
9.25%, 3/15/2004 $ 2,004,000
1,500,000 Cablevision Industries Inc., Sr. Notes,
10.75%, 1/30/2002 1,492,500
</TABLE>
13
<PAGE> 7
PORTFOLIO OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------
CORPORATE BONDS AND NOTES (Continued)
-------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
-------------------------------------------------------------------------
<S> <C> <C>
LEISURE (Continued)
2,000,000 Cablevision Industries Inc., Sr. Notes,
9.25%, 4/1/2008 1,750,000
3,950,000 GNF Corp., First Mtg. Notes,
10.625%, 4/1/2003 2,133,000
2,400,000 Imax Corp., Sr. Notes, 7%, 3/1/2001+ 2,112,000
3,200,000 Trump Plaza Funding, 1st Mtg. Bonds,
10.875%, 6/15/2001 2,288,000
3,587,659 Trump Taj Mahal, 1st Mtg. Bonds,
11.35%, 11/15/1999 2,367,855
------------
$ 14,147,355
------------
MANUFACTURING - 14.6%
$4,200,000 Applied Extrusion Inc., Sr. Notes,
11.5%, 4/1/2002 $ 4,263,000
2,750,000 Blue Bell Funding, Sec. Ext. Notes,
11.85%, 5/1/1999 2,915,000
3,200,000 Bucyrus Erie Co., Sr. Notes,
16%, 1/1/1996* 1,664,000
4,800,000 Eagle Industries, Inc., Sr. Disc. Notes,
10.5% (0% until 1998) 7/15/2003 3,048,000
2,770,000 Exide Corp., Sr. Notes, 10.75%, 12/15/2002 2,853,100
6,700,000 Essex Group, Inc., Sr. Notes, 10%, 5/1/2003 6,515,750
4,000,000 Federal Industries Ltd., Sr. Notes,
10.25%, 6/15/2000 3,890,000
5,900,000 Interlake Corp., Sr. Sub. Debs.,
12.125%, 3/1/2002 5,339,500
3,000,000 Key Plastics Inc., Sr. Notes, 14%, 11/15/1999 3,401,250
2,500,000 Owens Illinois Inc., Sr. Notes,
11%, 12/1/2003 2,650,000
4,400,000 Pace Industries Inc., Sr. Notes,
10.625%, 12/1/2002 4,048,000
6,400,000 Roadmaster Industries Inc., Sr. Sub. Notes,
11.75%, 7/15/2002 6,336,000
1,600,000 SPX Corp., Sr. Sub. Notes, 11.75%, 6/1/2002 1,656,000
1,171,000 Terex Corp., Sr. Secured Notes,
13%, 8/1/1996 1,083,175
1,450,000 Terex Corp., Sr. Sub. Notes, 13.5%, 7/1/1997 1,276,000
2,420,000 Tuboscope Vetco, Sr. Sub. Debs.,
10.75%, 4/15/2003 2,420,000
3,100,000 Unisys Corp., Sr. Notes, 13.5%, 7/1/1997 3,355,750
5,600,000 Waters Corp., Sr. Sub. Notes,
12.75%, 9/30/2004 + 5,684,000
------------
$ 62,398,525
------------
</TABLE>
14
<PAGE> 8
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES (Continued)
------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
------------------------------------------------------------------------------------
<S> <C> <C>
METALS - 12.8%
$3,500,000 Acme Metals, Inc., Sr. Notes,
12.5%, 8/1/2002 $ 3,526,250
3,200,000 Acme Metals, Inc., Sr. Disc. Notes,
13.5% (0% until 1997) 8/1/2004 2,176,000
5,500,000 Agricultural Minerals & Chemical, Sr.
Notes, 10.75%, 9/30/2003 5,610,000
2,800,000 AK Steel Corp., Sr. Notes, 10.75%, 4/1/2004 2,821,000
5,350,000 Armco Inc., Sr. Notes, 11.375%, 10/15/1999 5,403,500
3,325,000 Florida Steel Corp., First Mtg. Notes,
11.5%, 12/15/2000 3,391,500
2,250,000 Inland Steel Corp., First Mtg. Bonds,
12%, 12/1/1998 2,486,250
7,125,000 Jorgensen Earle, Sr. Notes, 10.75%, 3/1/2000 7,089,375
1,600,000 Maxxam Group, Inc., Sr. Sec. Notes,
11.25%, 8/1/2003 1,520,000
3,600,000 Maxxam Group, Inc., Sr. Sec. Disc. Notes,
12.25% (0% until 1998) 8/1/2003 2,124,000
5,300,000 Republic Engineered Steels Inc., Sr. Sub.
Notes, 9.875%, 12/15/2001 4,902,500
3,000,000 Stelco Inc., Debs., 13.5%, 10/1/2000 CAD 2,258,850
2,950,000 U.S. Can Co., Sr. Sub. Notes,
13.5%, 1/15/2002 3,333,500
2,250,000 Weirton Steel Corp., Sr. Notes,
11.50%, 3/1/1998 2,328,750
4,220,000 Weirton Steel Corp., Sr. Notes,
10.875%, 10/15/1999 4,278,025
1,700,000 Wheeling - Pittsburgh Corp., Sr. Notes,
9.375%, 11/15/2003 1,538,500
------------
MISCELLANEOUS - 2.0% $54,788,000
------------
$6,200,000 Corporate Express Inc., Sr. Sub. Notes,
9.125%, 3/15/2004+ $ 5,704,000
2,567,000 Synergy Group, Inc., Sr. Sub. Notes,
11.625%, 3/15/1997 2,104,940
800,000 YPF Sociedad Anonima, Negot. Obligation
Notes, 8%, 2/15/2004 686,000
-----------
$ 8,494,940
-----------
OIL/OIL SERVICES - 3.8%
$4,000,000 Empire Gas Corp., Sr. Sec. Notes,
12.875% (7% until 1999), 7/15/2004 $ 3,075,000
3,200,000 Gulf Canada Resources Ltd., Sr. Sub.
Notes, 9.25%, 1/15/2004 2,968,000
</TABLE>
15
<PAGE> 9
PORTFOLIO OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES (Continued)
--------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
OIL/OIL SERVICES (Continued)
3,195,000 Petroleum Heat & Power, Sub. Notes,
10.125%, 4/1/2003 3,051,225
2,800,000 Petroleum Heat & Power, Sub. Debs.,
9.375%, 2/1/2006 2,520,000
4,600,000 Trans Texas Gas Corp., Sr. Sec. Notes,
10.5%, 9/1/2000 4,508,000
------------
$ 16,122,225
------------
PAPER/PACKAGING - 3.0%
$3,600,000 Fort Howard Corp., Sr. Sub. Notes,
9%, 2/1/2006 $ 3,078,000
4,080,569 Fort Howard Corp., CMO, 11%, 1/2/2002 4,243,792
2,400,000 Riverwood International, Sr. Sub. Notes,
10.375%, 6/30/2004 2,448,000
3,200,000 Williamhouse Regency, Sr. Sub. Debs.,
11.5%, 6/15/2005 3,104,000
------------
$ 12,873,792
RETAILING - 7.8% ------------
$4,000,000 Apparel Retailers Inc., Sr. Disc. Debs.,
12.75% (0% until 1998) 8/15/2005 $ 2,360,000
4,200,000 Big 5 Holdings Inc., Sr. Sub. Notes,
13.625%, 9/15/2002 4,389,000
5,500,000 Food-4 Less Supermarkets Inc., Sr. Sub.
Notes, 13.75%, 6/15/2001 5,912,500
2,500,000 Grand Union Capital Corp., Sr. Notes,
11.375%, 2/15/1999 2,300,000
6,925,000 Levitz Furniture Corp., Sr. Sub. Notes,
9.625%, 7/15/2003 6,094,000
6,900,000 Pathmark Stores Inc., Jr. Sub., Disc. Notes,
10.75% (0% until 1999) 11/1/2003 3,415,500
6,350,000 Purity Supreme, Sr. Sec. Notes,
11.75%, 8/1/1999 5,588,000
3,600,000 Specialty Retailers, Inc., Sr. Sub. Notes,
11%, 8/15/2003 3,438,000
------------
$ 33,497,000
TEXTILES - 4.1% ------------
$2,400,000 CMI Industries Inc., Sr. Sub. Notes,
9.50%, 10/1/2003 $ 2,016,000
4,200,000 Dan River Inc., Sr. Sub. Notes,
10.125%, 12/15/2003 3,801,000
750,000 Hartmarx Corp., Sr. Sub. Notes,
10.875%, 1/15/2002 675,000
5,992,000 JPS Textile Group, Sr. Sub. Notes,
10.25%, 6/1/1999 4,494,000
</TABLE>
16
<PAGE> 10
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES (Continued)
-------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
-------------------------------------------------------------------------------
<S> <C> <C>
TEXTILES (Continued)
7,400,000 Westpoint Stevens, Sr. Sub. Debs.,
9.375%, 12/15/2005 6,678,500
------------
$ 17,664,500
TRANSPORTATION - 2.2% ------------
$2,000,000 Delta Air Lines, Inc., Trust Certs.,
10.5%, 4/30/2016 $ 1,946,340
3,000,000 Delta Air Lines, Inc., Pass-through Trust
Certs., 10.06%, 1/2/2016 2,820,960
4,800,000 Moran Transportation, 1st Mtg. Notes,
11.75%, 7/15/2004 4,848,000
------------
$ 9,615,300
UTILITIES - 1.4% ------------
$3,516,691 Midland Cogeneration Venture, Sec. Lease
Obligations, 10.33%, 7/23/2002 $ 3,384,815
3,200,000 Midland Funding II, Sec. Lease Obligations,
11.75%, 7/23/2005 3,014,656
$ 6,399,471
-----------
TOTAL CORPORATE BONDS AND NOTES
(IDENTIFIED COST, $424,443,242) $405,220,761
-----------
-------------------------------------------------------------------------------
PREFERRED STOCKS - 0.3%
-------------------------------------------------------------------------------
SHARES SECURITY VALUE
-------------------------------------------------------------------------------
7,200 Grand Union Holding, Series C, 12% Pfd. $ 424,800
32,000 Terex CV Pfd. (144A) w/warrants 912,000
-----------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST, $1,654,000) $ 1,336,800
-----------
</TABLE>
17
<PAGE> 11
Portfolio of Investments (Continued)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
COMMON STOCKS, WARRANTS AND RIGHTS - 0.5%
--------------------------------------------------------------------------------------
SHARES/WARRANTS SECURITY VALUE
--------------------------------------------------------------------------------------
<S> <C> <C>
AUTO/TRUCK - 0.0%
3,189 APS Holding Corp., Cl A Common* $ 89,902
------------
CHEMICALS - 0.0%
9,908 UCC Invt. Hldgs., Cl A Common+* $ 123,850
------------
FOOD - 0.0%
40,000 Dr. Pepper Bottling Holdings, Inc., Class B
Common+* $ 150,000
1,380 Servam Corp., Common* 0
12,276 Servam Corp., $2.00 Wts. Exp. 4/1/2001+* 0
2,760 Servam Corp., $4.50 Wts. Exp. 4/1/2001+* 0
48,000 Specialty Foods Acquisition, Common+* 36,000
------------
$ 186,000
INDUSTRIAL - 0.0% ------------
1,814 Thermadyne Holdings Corp., Common* $ 20,860
40,000 Thermadyne Holdings Corp., Common+* 400
------------
$ 21,260
MANUFACTURING - 0.4% ------------
22,500 Southdown Inc., Wts.+* $ 466,875
6,496 Terex Corporation, Rights+* 45,469
4,500 Terex Corporation, Rights+* 22,500
32,000 Terex Corp., Wts.* 400,000
95,000 Triangle Wire and Cable, Inc. 665,000
22,500 Triangle Wire and Cable, Inc., Wts.+* 0
$ 1,599,844
RETAILING - 0.0% ============
5,198 Purity Supreme, Wts.+* $ 104
6,000 Waxman Industries, Warrants+* 300
------------
$ 404
------------
TOTAL COMMON STOCKS, WARRANTS AND
RIGHTS (IDENTIFIED COST, $2,506,058) $ 2,021,260
------------
</TABLE>
18
<PAGE> 12
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 2.8%
--------------------------------------------------------------------------------------
FACE
AMOUNT SECURITY VALUE
------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER
$7,830,000 CXC, Inc., 5.05%, 10/03/1994 $ 7,827,803
4,288,000 General Electric Capital Corp.,
4.75 %, 10/05/1994 4,285,737
------------
TOTAL SHORT-TERM OBLIGATIONS,
AT AMORTIZED COST $ 12,113,540
------------
TOTAL INVESTMENTS
(IDENTIFIED COST, $440,716,840) $420,692,361
OTHER ASSETS, LESS LIABILITIES- 1.8% 7,885,054
------------
NET ASSETS -- 100% $428,577,415
============
<FN>
*Non-income producing security.
+Restricted Security (Note 10).
CAD -- The principal amount of these securities is stated in Canadian Dollars,
the currency in which the security is denominated.
</TABLE>
See notes to financial statements
19
<PAGE> 13
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
-----------------------------------------------------------------------------------------------------------------
September 30, 1994
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investments, at value (Note 1A) (identified cost, $440,716,840) $420,692,361
Cash 115
Receivable for investments sold 1,131,208
Interest receivable 11,099,484
Deferred organization expenses (Note 1D) 3,920
------------
Total assets $432,927,088
LIABILITIES:
Payable for investments purchased $2,989,673
Demand note payable (Note 4) 1,360,000
----------
Total liabilities 4,349,673
------------
NET ASSETS applicable to investors' interest in Portfolio $428,577,415
============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and withdrawals $448,613,837
Unrealized depreciation of investments (computed on the basis of identified cost) (20,036,422)
------------
Total $428,577,415
============
</TABLE>
See notes to financial statements
20
<PAGE> 14
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
-----------------------------------------------------------------------------------------------------------------------
For the period from the start of business, June 1, 1994, to September 30, 1994
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Income
Interest (net of foreign withholding tax of $11,324) $ 15,499,592
Dividends 32,813
------------
Total income $ 15,532,405
Expenses --
Investment adviser fee (Note 2) $ 890,113
Custodian fee (Note 2) 44,212
Legal and accounting services 7,443
Printing and postage 200
Amortization of deferred organization costs 281
Miscellaneous 18,456
------------
Total expenses 960,705
------------
Net investment income $ 14,571,700
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss --
Investment transactions (identified cost basis) $ (7,018,271)
Change in unrealized appreciation (depreciation) of investments (7,193,072)
------------
Net realized and unrealized loss on investments $(14,211,343)
------------
Net increase in net assets from operations $ 360,357
============
</TABLE>
See notes to financial statements
21
<PAGE> 15
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------------------------------------
For the period from the start of business, June 1, 1994, to September 30, 1994
-------------------------------------------------------------------------------------------------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 14,571,700
Net realized loss on investment transactions (7,018,271)
Change in unrealized depreciation of investments (7,193,072)
------------
Net increase in net assets from operations $ 360,357
------------
Capital transactions --
Contributions $501,452,130
Withdrawals (73,335,102)
------------
Increase in net assets resulting from capital transactions $428,117,028
------------
Total increase in net assets $428,477,385
NET ASSETS:
At beginning of period 100,030
------------
At end of period $428,577,415
============
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
SUPPLEMENTARY DATA
-------------------------------------------------------------------------------------------------------------
For the period from the start of business, June 1, 1994, to September 30, 1994
-------------------------------------------------------------------------------------------------------------
<S> <C>
RATIOS (As a percentage of average daily net assets):
Expenses 0.67%+
Net investment income 10.20%+
PORTFOLIO TURNOVER 19%
<FN>
+Computed on an annualized basis.
</TABLE>
See notes to financial statements
22
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES
High Income 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 interests in
the Portfolio. Investment operations began on June 1, 1994,
with the acquisition of securities with a value of $404,032,967,
including unrealized depreciation of $12,843,350, 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 poli-
cies are in conformity with generally accepted accounting
principles.
A. INVESTMENT VALUATIONS -- Investments listed on securi-
ties exchanges or in the NASDAQ National Market are val-
ued at closing sale prices. Listed or unlisted investments for
which closing sale prices are not available are valued at the
mean between the latest bid and asked prices. Fixed income
investments (other than short-term obligations), including
listed investments and investments for which price quota-
tions are available, will normally be valued on the basis of
market valuations furnished by a pricing service. Financial
futures contracts listed on commodity exchanges are valued
at closing settlement prices. Short-term obligations, matur-
ing in sixty days or less, are valued at amortized cost, which
approximates value. Investments for which there is no quo-
tation or valuation 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 when required for federal income tax purposes.
Dividend income is recorded on the ex-dividend date for
dividends received in cash and or securities.
C. INCOME TAXES -- The Portfolio has elected to be treated
as a partnership for Federal tax purposes. No provision is
made by the Portfolio for federal or state taxes on any tax-
able 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 sat-
isfy 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.
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. FINANCIAL FUTURES CONTRACTS -- Upon the entering of a
financial futures contract, the Portfolio is required to deposit
("initial margin") either in cash or securities an amount 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 under-
lying security, and are recorded for book purposes as unreal-
ized gains or losses by the Portfolio. The Portfolio's invest-
ment in financial futures contracts is designed only to hedge
against anticipated future changes in interest rates. Should
interest rates move unexpectedly, the Portfolio may not
achieve the anticipated benefits of the financial futures con-
tracts and may realize a loss.
F. OTHER -- Investment transactions are accounted for on a
trade date basis.
23
<PAGE> 17
NOTES TO FINANCIAL STATEMENTS (Continued)
----------------------------------------------------------------
(2) 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
assets plus a percentage of gross income (i.e., income other
than gains from the sale of securities). For the period from
the start of business, June 1, 1994, to September 30, 1994,
the fee was equivalent to 0.62% (annualized) of the
Portfolio's average daily net assets for such period and
amounted to $890,113. 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 Fund out of such investment adviser fee. Investors
Bank & Trust Company (IBT), an affiliate of EVM and
BMR, serves as custodian of the Fund. Pursuant to the cus-
todian agreement, IBT receives a fee reduced by credits
which are determined based on the average daily cash bal-
ances the Portfolio maintains with IBT. Certain of the offi-
cers and Trustees of the Portfolio are officers and directors/
trustees of the above organizations.
----------------------------------------------------------------
(3) INVESTMENTS
The Portfolio invests primarily in debt securities. The ability
of the issuers of the debt securities held by the Portfolio to
meet their obligations may be affected by economic develop-
ments in a specific industry. Purchases and sales of invest-
ments, other than U.S. Government securities and short-
term obligations, aggregated $99,845,956 and $75,589,274,
respectively.
----------------------------------------------------------------
(4) LINE OF CREDIT
The Portfolio participates with other portfolios and funds
managed by BMR and EVM in a $120 million unsecured
line of credit agreement with a bank. The line of credit con-
sists of a $20 million committed facility and an $100 million
discretionary facility. Borrowings will be made by the Port-
folio solely to facilitate the handling of unusual and/or unan-
ticipated short-term cash requirements. Interest is charged to
each Portfolio based on its borrowings at an amount above
either the bank's adjusted certificate of deposit rate, a vari-
able 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 September 30, 1994, the Portfolio
had an outstanding balance of $1,360,000, pursuant to the
line of credit.
----------------------------------------------------------------
<TABLE>
(5) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/depreciation in value of
the investments owned at September 30, 1994, as computed on a
federal income tax basis, were as follows:
<S> <C>
Aggregate cost $440,716,840
============
Gross unrealized depreciation $ 25,407,124
Gross unrealized appreciation 5,382,645
------------
Net unrealized depreciation $ 20,024,479
============
</TABLE>
24
<PAGE> 18
(6) NOT READILY MARKETABLE SECURITIES
At September 30, 1994, the Portfolio owned the following
securities (constituting 3.35% of net assets) which were not
readily marketable at such date. The Portfolio has various
registration rights (exercisable under a variety of circum-
stances) with respect to certain of these securities. The fair
value of these securities is determined based on valuations
provided by brokers when available or, if not available, they
are determined in good faith under methods or procedures
authorized by the Trustees.
<TABLE>
<CAPTION>
DESCRIPTION DATE OF ACQUISITION SHARES/FACE COST FAIR VALUE
----------- ------------------- ----------- ---- ----------
<S> <C> <C> <C> <C>
BONDS
Corporate Express, Inc., Sr. Sub. Notes, 9.125%, 3/15/2004 2/22/94 6,200,000 $ 5,756,000 $ 5,704,000
Imax Corp., Sr. Notes, 7%, 3/1/2001 2/22/94 2,400,000 2,217,264 2,112,000
Waters Corp., Sr. Sub. Notes, 12.75%, 9/30/2004 8/11/94 5,600,000 5,600,000 5,684,000
COMMON STOCK, WARRANTS AND RIGHTS
Dr. Pepper Bottling Holdings Inc., Class B Common 10/21/88 40,000 $ 36,000 $ 150,000
Purity Supreme Wts. 7/29/92 5,198 0 104
Servam Corp., $2.00 Wts., Exp. 4/1/2001 12/15/87 12,276 0 0
Servam Corp., $4.50 Wts., Exp. 4/1/2001 12/01/87 2,760 0 0
Southdown Inc., Wts. 10/28/91 22,500 67,500 466,875
Specialty Foods Acquisition, Common 8/10/93 48,000 34,886 36,000
Terex Corporation, Rights 8/20/92 6,496 0 45,469
Terex Corporation, Rights 7/24/92 4,500 0 22,500
Thermadyne Holdings Corp., Common 4/03/89 40,000 28,800 400
Triangle Wire and Cable Inc., Wts. 10/28/91 22,500 0 0
UCC Invt. Hldgs., Class A Common 10/24/86 9,908 9,834 123,850
Waxman Industries, Wts. 10/01/91 6,000 6,000 300
----------- -----------
$13,756,284 $14,345,498
=========== ===========
</TABLE>
25
<PAGE> 19
INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
To the Trustees and Investors of
High Income Portfolio:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of High Income Portfolio as of September 30, 1994,
and the related statement of operations, the statement of changes in net assets
and the supplementary data for the period from the start of business, June 1,
1994, to September 30, 1994. These financial statements and supplementary data
are the responsibility of the Trust's management. Our responsibility is to
express an opinion on these financial statements and supplementary data based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
supplementary data are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of securities
owned at September 30, 1994 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, such financial statements and supplementary data present fairly,
in all material respects, the financial position of High Income Portfolio at
September 30, 1994, the results of its operations, changes in its net assets,
and its supplementary data for the period from the start of business, June 1,
1994, to September 30, 1994, in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 4, 1994
26
|
|