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The Eaton Vance Growth Trust
For the Growth Portfolio
[LOGO]
Annual Shareholder Report
August 31, 1995
Investment Adviser of Growth Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Fund Administrator
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
Transfer Agent
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
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GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1995
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COMMON STOCKS - 98.6%
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SHARES VALUE
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ADVERTISING - 2.8%
Omnicom Group, Inc. 60,000 $ 3,765,000
The parent company of DDB Needham ------------
Worldwide and BBDO Worldwide, two full
service advertising agency networks.
BEVERAGES - 2.4%
PepsiCo, Inc. 70,000 $ 3,167,500
Global soft drink producer with ------------
businesses in snack foods and fast food
restaurants.
BROADCASTING & ENTERTAINMENT - 7.5%
CBS Inc. 45,000 $ 3,588,750
Operator of CBS television and radio
networks and owner of 5 TV and 21 radio
stations.
Liberty Media Group Class A* 43,750 1,162,109
Stock represents participation in
programming assets of
TeleCommunications, Inc., including
sports, general entertainment and
electronic retailing, as well as
investments in cable television systems.
Seagram Co. Ltd. 80,000 2,960,000
A leading global producer and marketer
of liquor which acquired 80% of MCA,
Inc., a major factor in the
entertainment industry.
Tele-Communications, Inc. Class A* 130,000 2,396,875
The largest operator of cable television
systems in the U.S.
------------
$ 10,107,734
------------
BUSINESS PRODUCTS AND SERVICES - 6.5%
Danka Business Systems PLC ADR 50,000 $ 1,512,500
Independent distributor of automated
equipment, principally photocopiers, and
related service contracts.
Reuters Holdings PLC 80,000 4,190,000
Worldwide provider of proprietary
financial data and information.
Xerox Corp. 25,000 3,018,750
The dominant producer of high end
document processing machines.
------------
$ 8,721,250
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CHEMICALS - 3.9%
Great Lakes Chemical Corp. 40,000 $ 2,645,000
Specialty chemical manufacturer of a
wide range of products including flame
retardants, water treatments and fuel
additives.
Loctite Corp. 55,000 2,640,000
Manufacturer of adhesives for consumer
and industrial markets.
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$ 5,285,000
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COMPUTER EQUIPMENT AND SERVICES - 7.8%
Automatic Data Processing, Inc. 40,000 $ 2,600,000
The leading independent computing and
payroll processing services firm in the
U.S.
Block (H. & R.) Inc. 50,000 1,950,000
Provider of individual tax preparation
services and computer services, led by
CompuServe's consumer online services,
both in the US and abroad.
Compaq Computer Corp.* 60,000 2,865,000
The leading worldwide manufacturer of
desktop and portable computers and PC
servers.
General Motors Corp. Class E 65,000 3,030,625
Stock represents participation in the
Electronic Data Systems Division of
General Motors. EDS designs, installs
and operates data processing and
communications systems for GM and other
customers.
------------
$ 10,445,625
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DRUGS & HEALTH CARE SERVICES - 6.9%
Astra AB A Free Shares* 175,000 $ 5,801,793
Swedish based international
pharmaceutical firm with drugs for the
control of ulcers and asthma.
Sofamor Danek Group, Inc.* 140,000 3,465,000
The dominant supplier of spinal implant
devices used in surgical treatment of
spinal diseases and deformities.
------------
$ 9,266,793
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ELECTRONIC INSTRUMENTATION - 2.6%
Millipore Corp. 100,000 $ 3,487,500
Products use membrane separations ------------
technology to analyze and purify fluids
for a variety of high tech industries.
FINANCIAL SERVICES - 8.6%
Federal National Mortgage Association 30,000 $ 2,861,250
U.S. Government sponsored mortgage
lender and provider of secondary
mortgage market.
Franklin Resources Inc. 50,000 2,750,000
Provides investment management and
related services to a family of equity
and fixed income mutual funds.
MBNA Corp. 80,000 2,840,000
Dominant issuer of MasterCard/Visa
credit cards to affinity groups.
MGIC Investment Corp. Wisc. 55,000 3,080,000
The leading provider of private mortgage
insurance coverage to U.S. banks and
other mortgage suppliers.
------------
$ 11,531,250
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HOTELS AND RESTAURANTS - 2.0%
Circus Circus Enterprises, Inc.* 80,000 $ 2,620,000
Major operator of theme related gaming ------------
facilities including 10 casino-hotels in
Nevada.
HOUSEHOLD PRODUCTS - 2.2%
Gillette Co. 70,000 $ 2,922,500
A global company with internationally ------------
recognized brands in razors and blades,
small appliances, cosmetics, dental and
other consumer products.
INSURANCE - 10.3%
Allstate Corp. 60,000 $ 2,032,500
Leading underwriter of automotive and
homeowners insurance as well as a life
insurance carrier.
American International Group, Inc. 60,000 4,837,500
One of the world's leading insurance
companies, operating in 130 countries.
General Re Corp. 29,000 4,310,125
Dominant reinsurance company in the US
which has recently substantially
increased its business by acquiring a
European reinsurer.
Progressive Corp., Inc. 60,000 2,662,500
Underwriter of non-standard automobile
and other specialty personal lines of
insurance.
------------
$ 13,842,625
------------
MACHINERY - 2.1%
Illinois Tool Works Inc. 45,000 $ 2,756,250
Manufacturer of industrial components ------------
and other specialty products and
equipment.
METALS & MINING - 4.3%
Freeport McMoRan Copper & Gold, Inc. 100,000 $ 2,337,500
Operator of third largest copper mine in
the world with world's largest gold
reserves.
Nucor Corp. 70,000 3,430,000
Fourth largest US steel company and
largest US minimill.
------------
$ 5,767,500
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OIL - 7.1%
Anadarko Petroleum Corp. 100,000 $ 4,775,000
Leading independent natural gas and
crude oil production company.
Triton Energy Corp. 90,000 4,770,000
Independent oil and gas producer with
major developments in Columbia and
Thailand.
------------
$ 9,545,000
------------
PAPER & FOREST PRODUCTS - 2.0%
Rayonier Inc. 70,000 $ 2,686,250
Major producer of cellulose pulp, used ------------
to make textiles and plastic, logs and
wood products and owner of extensive
timberland acreage in the US and New
Zealand.
PHOTOGRAPHY - 1.7%
Eastman Kodak Co. 40,000 $ 2,305,000
Largest producer of photographic ------------
products in the world.
PUBLISHING - 2.1%
McGraw Hill Inc. 35,000 $ 2,756,250
Supplies informational products and ------------
services for businesses, education and
industry through a broad range of media.
RETAILING - 1.9%
Home Depot, Inc. 65,000 $ 2,591,875
A chain of do-it-yourself warehouse ------------
style stores.
SEMICONDUCTORS - 8.8%
Intel Corp. 60,000 $ 3,682,500
A manufacturer of semiconductors and
other microcomputer components and
systems which comprise the heart of the
personal computer.
MEMC Electronic Materials, Inc.* 70,000 2,152,500
Worldwide producer of silicon wafers
used in the production of
semiconductors.
Motorola Inc. 42,000 3,139,500
A leading supplier of semiconductors and
two-way radios, paging equipment, and
cellular mobile telephone systems.
National Semiconductor Corp.* 100,000 2,825,000
Leading manufacturer of a broad line of
semiconductors for applications in
communications, computer systems,
automotive and industrial products.
------------
$ 11,799,500
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TELECOMMUNICATIONS EQUIPMENT - 4.8%
Ericsson LM Telephone Co. Class B 100,000 $ 2,137,500
Dominant producer in the cellular
infrastructure market with a growing
share of the handset market, based in
Sweden.
General Instrument Corp.* 70,000 2,555,000
Major supplier of broadband (cable)
communications systems and equipment
including satellite TV equipment.
Nokia Corp. 25,000 1,734,375
Finland based telecommunications company
with global presence in cellular
infrastructure equipment and hand sets.
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$ 6,426,875
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MISCELLANEOUS - 0.3% $ 379,750
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TOTAL COMMON STOCKS
(IDENTIFIED COST, $106,160,346) $132,177,027
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SHORT-TERM OBLIGATION - 2.1%
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FACE AMOUNT
(000 OMITTED) VALUE
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Melville Corp., 5.84s, 9/1/95 2,772 $ 2,772,000
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TOTAL SHORT-TERM OBLIGATION, AT
AMORTIZED COST $ 2,772,000
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TOTAL INVESTMENTS
(IDENTIFIED COST, $108,932,346) $134,949,027
OTHER ASSETS, LESS LIABILITIES - (0.7%) $ (946,427)
------------
NET ASSETS - 100% $134,002,600
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*Non-income producing security.
The accompanying notes are an integral part
of the financial statements
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FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
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August 31, 1995
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ASSETS:
Investments, at value (Note 1A) (identified cost,
$108,932,346) $134,949,027
Cash 18,906
Receivable for investments sold 938,769
Dividends receivable 103,945
Deferred organization expenses (Note 1C) 12,834
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Total assets $136,023,481
LIABILITIES:
Payable for investments purchased $2,006,727
Payable to affiliates --
Trustees' fee 3,250
Custodian fee 4,088
Accrued expenses 6,816
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Total liabilities 2,020,881
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NET ASSETS applicable to investors' interest in Portfolio $134,002,600
============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $107,985,919
Unrealized appreciation of investments (computed
on the basis of identified cost) 26,016,681
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Total $134,002,600
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The accompanying notes are an integral part of the financial statements
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STATEMENT OF OPERATIONS
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For the year ended August 31, 1995
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INVESTMENT INCOME:
Income --
Dividends (net of withholding tax of $29,332) $ 1,451,591
Interest 312,131
-----------
Total income $ 1,763,722
Expenses --
Investment adviser fee (Note 2) $ 786,194
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 9,399
Custodian fee (Note 2) 80,036
Legal and accounting services 33,079
Amortization of organization expenses (Note 1C) 3,218
Miscellaneous 5,092
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Total expenses 917,018
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Net investment income $ 846,704
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investment transactions
(identified cost basis) $ 1,358,348
Change in unrealized appreciation of investments 16,976,967
-----------
Net realized and unrealized gain on
investments $18,335,315
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Net increase in net assets from operations $19,182,019
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The accompanying notes are an integral part of the financial statements
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STATEMENT OF CHANGES IN NET ASSETS
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FOR THE YEAR ENDED AUGUST 31,
-----------------------------
1995 1994*
------------ ------------
INCREASE IN NET ASSETS:
From operations --
Net investment income $ 846,704 $ 69,589
Net realized gain on investment transactions 1,358,348 1,063,482
Change in unrealized appreciation
of investments 16,976,967 2,595,384
------------ ------------
Increase in net assets from operations $ 19,182,019 $ 3,728,455
------------ ------------
Capital transactions --
Contributions $ 48,765,499 $140,348,725
Withdrawals (65,480,787) (12,641,351)
------------ ------------
Increase (decrease) in net assets
resulting from capital transactions $(16,715,288) $127,707,374
------------ ------------
Total increase in net assets $ 2,466,731 $131,435,829
NET ASSETS:
At beginning of year 131,535,869 100,040
------------ ------------
At end of year $134,002,600 $131,535,869
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*For the period from the start of business, August 2, 1994, to August 31, 1994.
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SUPPLEMENTARY DATA
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YEAR ENDED AUGUST 31,
---------------------
1995 1994*
-------- --------
RATIOS (As a percentage of average daily net assets):
Expenses 0.73% 0.73%+
Net investment income 0.67% 0.66%+
PORTFOLIO TURNOVER 84% 4%
+ Computed on an annualized basis.
* For the period from the start of business, August 2, 1994, to August 31, 1994.
The accompanying notes are an integral part of the financial statements
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NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1995
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(1) SIGNIFICANT ACCOUNTING POLICIES
Growth 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 August 2, 1994. The Declaration
of Trust permits the Trustees to issue interests in the Portfolio. Investment
operations began on August 2, 1994, with the acquisition of investments with a
value of $127,122,709, including unrealized appreciation of $6,444,330 in
exchange for an interest in the Portfolio by one of the Portfolio's investors.
The following is a summary of significant accounting policies of the Portfolio.
The policies are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS -- Investments listed on securities exchanges or in the
NASDAQ National Market are valued 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. Short-term obligations are valued
at amortized cost, which approximates value. Foreign securities held by the Fund
are valued in U.S. dollars at the current exchange rate.
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 Internal Revenue Code) in order for its investors to satisfy them. The
Portfolio will allocate at least annually among its investors each investors'
distributive share of the Portfolio's net taxable (if any) and tax-exempt
investment income, net realized capital gains, and any other items of income,
gain, loss, deduction or credit.
C. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
D. LEGAL FEES -- Legal fees and other related expenses incurred as part of
negotiations of the terms and requirements of capital infusions, or that are
expected to result in the restructuring of or a plan of reorganization for an
investment are added to the cost of the investment.
E. OTHER -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividend income and distributions to
shareholders are recorded on the ex-dividend date and interest income is
recorded on the accrual basis.
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(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. For the year ended
August 31, 1995, the fee was equivalent to 0.625% of the Portfolio's average net
assets for such period and amounted to $786,194. 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 custodian
agreement, IBT receives a fee reduced by credits which are determined based on
the average daily cash balances the Portfolio maintains with IBT. Certain of the
officers and Trustees of the Portfolio are officers and directors/trustees of
the above organizations. Trustees of the Portfolio that are not affiliated with
the Investment Adviser may elect to defer receipt of all or a portion of their
annual fees in accordance with the terms of the Trustees Deferred Compensation
Plan. For the year ended August 31, 1995 no significant amounts have been
deferred.
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(3) PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, other than short-term obligations,
aggregated $101,814,016 and $107,452,323, respectively.
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(4) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/depreciation in value of the investments
owned at August 31, 1995, as computed on a federal income tax basis, are as
follows:
Aggregate cost $108,932,346
============
Gross unrealized appreciation $ 26,902,721
Gross unrealized depreciation (886,040)
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Net unrealized appreciation $ 26,016,681
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(5) LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $120 million unsecured line of credit agreement with
a bank. The line of credit consists of a $20 million committed facility and a
$100 million discretionary facility. Borrowings will be made by the Portfolio
solely to facilitate the handling of unusual and/or unanticipated short-term
cash requirements. Interest is charged to each portfolio based on its borrowings
at an amount above either the bank's adjusted certificate of deposit rate, a
variable adjusted certificate of deposit rate, or a federal funds effective
rate. In addition, a fee computed at an annual rate of 1/4 of 1% on the $20
million committed facility and on the daily unused portion of the $100 million
discretionary facility is allocated among the participating funds and portfolios
at the end of each quarter. The Portfolio did not have any significant
borrowings or allocated fees during the period. At August 31, 1995, the Fund did
not have an outstanding balance pursuant to the line of credit.
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REPORT OF INDEPENDENT ACCOUNTANTS
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TO THE TRUSTEES AND INVESTORS OF
GROWTH PORTFOLIO:
We have audited the accompanying statement of assets and liabilities of Growth
Portfolio, including the portfolio of investments, as of August 31, 1995, the
related statements of operations for the year then ended, and the changes in net
assets and supplementary data for the year then ended and for the period from
August 2, 1994 (start of business) to August 31, 1994. These financial
statements and supplementary data are the responsibility of the Portfolio'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 as of August 31, 1995 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, the financial statements and supplementary data referred to
above present fairly, in all material respects, the financial position of Growth
Portfolio as of August 31, 1995, the results of its operations, for the year
then ended, and the changes in its net assets and supplementary data for the
year then ended and for the period from August 2, 1994 (start of business) to
August 31, 1994, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
BOSTON, MASSACHUSETTS
SEPTEMBER 29, 1995
<PAGE>
INVESTMENT MANAGEMENT FOR GROWTH PORTFOLIO
OFFICERS INDEPENDENT TRUSTEES
JAMES B. HAWKES DONALD R. DWIGHT
President, Trustee President, Dwight Partners, Inc.
Chairman, Newspapers of New England, Inc.
LANDON T. CLAY
Vice President, Trustee SAMUEL L. HAYES, III
Jacob H. Schiff Professor of
M. DOZIER GARDNER Investment Banking,
Vice President Harvard University Graduate School
of Business Administration
PETER F. KIELY
Vice President and NORTON H. REAMER
Portfolio Manager President and Director,
United Asset Management Corporation
JAMES L. O'CONNOR
Treasurer JOHN L. THORNDIKE
Vice President and Director,
THOMAS OTIS Fiduciary Company Incorporated
Secretary
JACK L. TREYNOR
Investment Adviser and Consultant
