<PAGE>
Information Age Portfolio as of February 28, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
(Expressed in United States Dollars)
<TABLE>
<CAPTION>
Common Stocks -- 94.8%
Security Shares Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
Advertising -- 2.2%
- -----------------------------------------------------------------------------------
Omnicom Group, Inc. 12,000 $ 549,004
WPP Group PLC 14,000 750,754
- -----------------------------------------------------------------------------------
$ 1,299,758
- -----------------------------------------------------------------------------------
Aerospace and Defense -- 2.8%
- -----------------------------------------------------------------------------------
General Motors Corp., Class H 25,000 $ 1,035,942
Vickers PLC* 175,000 611,375
- -----------------------------------------------------------------------------------
$ 1,647,317
- -----------------------------------------------------------------------------------
Broadcasting and Cable -- 7.2%
- -----------------------------------------------------------------------------------
CBS Corp. 8,000 $ 247,504
Comcast Corp., Class A 15,000 525,004
Cox Communications, Inc., Class A/(1)/ 22,000 848,379
Granada Group, PLC 70,000 1,099,641
Liberty Media Group, Class A 15,000 411,567
Mediaset SpA 140,000 788,575
Tele-Communications, Inc./(1)/ 10,000 290,629
- -----------------------------------------------------------------------------------
$ 4,211,299
- -----------------------------------------------------------------------------------
Business Services - Miscellaneous -- 2.7%
- -----------------------------------------------------------------------------------
Pittston Brink's Group 23,000 $ 888,379
Robert Half International, Inc. 15,000 678,754
- -----------------------------------------------------------------------------------
$ 1,567,133
- -----------------------------------------------------------------------------------
Communications Equipment -- 1.6%
- -----------------------------------------------------------------------------------
General Instrument Corp./(1)/ 15,000 $ 250,317
L.M. Ericsson Telephone Co., ADR 15,000 679,692
- -----------------------------------------------------------------------------------
$ 930,009
- -----------------------------------------------------------------------------------
Communications Services -- 20.0%
- -----------------------------------------------------------------------------------
Ameritech Corp. 10,000 $ 416,879
BCE, Inc.* 25,000 889,067
Bellsouth Corp. 9,000 549,004
Bezek 250,000 597,653
British Telecommunications, PLC* 125,000 1,263,738
City Telecom Ltd.* 1,218,000 165,183
Energis/(1)/* 150,000 1,211,211
France Telecom SA* 20,000 970,082
GTE Corp. 10,000 541,254
Korea Mobile Telecom Corp.* 307 145,436
Nippon Telegraph and Telephone Corp.* 100 919,945
Orbital Sciences Corp./(1)/ 10,000 381,254
SBC Communications, Inc. 7,000 529,379
Sprint Corp. 9,000 594,004
Telecom Italia Spa/(1)/ 350,000 1,695,339
Telstra Corp.* 50,000 132,641
Videsh Sanchar Nigam Ltd., GDR* 50,000 650,004
- -----------------------------------------------------------------------------------
$11,652,073
- -----------------------------------------------------------------------------------
Computer Software -- 8.8%
- -----------------------------------------------------------------------------------
Documentum, Inc./(1)/ 22,000 $ 1,020,254
Intuit, Inc./(1)/ 9,000 418,504
J.D. Edwards, Inc./(1)/ 15,000 495,004
Micro Focus Group, PLC* 15,000 737,851
Misys, PLC* 42,428 1,870,287
Reynolds & Reynolds Inc., Class A 15,000 318,754
System Software Associates, Inc./(1)/ 40,000 297,504
- -----------------------------------------------------------------------------------
$ 5,158,158
- -----------------------------------------------------------------------------------
Computers and Business Equipment -- 5.7%
- -----------------------------------------------------------------------------------
Cabletron Systems, Inc./(1)/ 25,000 $ 387,504
EMC Corp. 10,000 382,504
Flextech Holdings Ltd.* 507,000 431,760
Lexmark International Group, Inc./(1)/ 25,000 1,068,754
Xerox Corp.* 12,000 1,064,254
- -----------------------------------------------------------------------------------
$ 3,334,776
- -----------------------------------------------------------------------------------
Consumer Services -- 1.0%
- -----------------------------------------------------------------------------------
Cendant Corp./(1)/ 15,000 $ 562,504
- -----------------------------------------------------------------------------------
$ 562,504
- -----------------------------------------------------------------------------------
Drugs -- 0.5%
- -----------------------------------------------------------------------------------
Genzyme Corp., Class A/(1)/ 10,000 $ 295,629
- -----------------------------------------------------------------------------------
$ 295,629
- -----------------------------------------------------------------------------------
Electronics - Instruments -- 11.9%
- -----------------------------------------------------------------------------------
Amano Corp.* 85,000 $ 862,846
Avimo Group Ltd.* 400,000 594,882
Carlton Communications PLC* 90,000 649,740
Dae Duck Electronics, Co./(1)/* 300 23,703
Flextech Holdings Ltd./(1)/* 126,750 42,632
Flextech Holdings Ltd. Warrants/(1)/* 152,100 36,140
</TABLE>
See notes to financial statements
9
<PAGE>
Information Age Portfolio as of February 28, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
(Expressed in United States Dollars)
<TABLE>
<CAPTION>
Security Shares Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
Electronics - Instruments (continued)
- -----------------------------------------------------------------------------------
Martin Gruppen 7,500 $ 310,276
Mitsubishi Electric Corp.* 175,000 532,936
Omron Corp. 40,000 647,135
Philips Electronics* 15,000 1,166,520
Philips Electronics N.V. ADR 5,000 389,379
Roland* 40,000 672,513
Sam Young Electronics Co./(1)/* 3,340 274,076
Toshiba Corp.* 160,000 718,193
- -----------------------------------------------------------------------------------
$ 6,920,971
- -----------------------------------------------------------------------------------
Electronics - Semiconductors -- 2.4%
- -----------------------------------------------------------------------------------
Alcatel Alsthom 5,000 $ 650,886
Samsung Electronics* 13,260 767,346
- -----------------------------------------------------------------------------------
$ 1,418,232
- -----------------------------------------------------------------------------------
Entertainment -- 1.7%
- -----------------------------------------------------------------------------------
Sony Corp.* 5,000 $ 452,044
Time Warner Inc. 8,000 540,004
- -----------------------------------------------------------------------------------
$ 992,048
- -----------------------------------------------------------------------------------
Information Services -- 11.4%
- -----------------------------------------------------------------------------------
Affiliated Computer Services, Inc., Class A/(1)/ 20,000 $ 643,754
Automatic Data Processing, Inc. 12,000 732,754
BISYS Group, Inc./(1)/ 25,000 928,129
Computer Sciences Corp./(1)/ 3,000 314,067
First Consulting Group, Inc./(1)/ 5,000 93,754
Forsoft Ltd.* 23,000 288,942
Gartner Group, Inc., Class A/(1)/ 22,000 877,254
HBO and Co. 5,000 270,629
Paychex, Inc. 15,000 774,379
Reuters Group PLC/(1)/ 86,666 873,329
SunGard Data Systems, Inc. 25,000 854,692
- -----------------------------------------------------------------------------------
$ 6,651,683
- -----------------------------------------------------------------------------------
Investment Services -- 3.3%
- -----------------------------------------------------------------------------------
Charles Schwab and Co., Inc. 18,000 $ 679,504
E*Trade Group, Inc./(1)/ 27,000 722,254
Raymond James Financial Corp. 13,000 518,379
- -----------------------------------------------------------------------------------
$ 1,920,137
- -----------------------------------------------------------------------------------
Lodging and Gaming -- 0.6%
- -----------------------------------------------------------------------------------
Silicon Gaming, Inc./(1)/ 37,500 $ 360,942
- -----------------------------------------------------------------------------------
$ 360,942
- -----------------------------------------------------------------------------------
Medical Products -- 0.6%
- -----------------------------------------------------------------------------------
Respironics, Inc./(1)/ 13,830 $ 375,143
- -----------------------------------------------------------------------------------
$ 375,143
- -----------------------------------------------------------------------------------
Publishing -- 10.4%
- -----------------------------------------------------------------------------------
Central Newspapers, Inc., Class A 15,000 $ 1,071,567
Dow Jones & Co., Inc. 15,000 770,629
McGraw-Hill Companies, Inc. 5,000 378,129
News Corp. Ltd. 150,394 954,029
Pearson, PLC* 105,000 1,565,922
PMP Communications Ltd./(1)/ 325,000 676,927
Springer Alex Verlag AG* 800 668,159
- -----------------------------------------------------------------------------------
$ 6,085,362
- -----------------------------------------------------------------------------------
Total Common Stocks
(identified cost $44,917,596) $55,383,174
- -----------------------------------------------------------------------------------
Commercial Paper -- 3.9%
Principal
Amount
Security (000's omitted) Value
- -----------------------------------------------------------------------------------
General Electric Capital Corp.,
5.68%, 3/2/98 $ 2,255 $ 2,254,288
- -----------------------------------------------------------------------------------
Total Commercial Paper
(identified cost $2,254,288) $ 2,254,288
- -----------------------------------------------------------------------------------
Total Investments -- 98.7%
(identified cost $47,171,884) $57,637,462
- -----------------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.3% $ 764,748
- -----------------------------------------------------------------------------------
Net Assets -- 100% $58,402,210
- -----------------------------------------------------------------------------------
</TABLE>
ADR -- American Depositary Receipt
GDR -- Global Depositary Receipt
* Foreign security.
/(1)/ Non-income producing security.
See notes to financial statements
10
<PAGE>
Information Age Portfolio as of February 28, 1998
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
As of February 28, 1998
Assets
- --------------------------------------------------------------------------------
Investments, at value (Note 1A)
(identified cost, $47,171,884) $57,637,462
Cash 1,940
Receivable for investments sold 1,428,179
Dividends and interest receivable 179,287
Deferred organization expenses (Note 1C) 3,344
- --------------------------------------------------------------------------------
Total assets $59,250,212
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Payable for investments purchased $ 795,691
Payable for open forward foreign currency contracts (Note 6) 6,087
Payable to affiliate for Trustees' fees (Note 2) 1,958
Accrued expenses 44,266
- --------------------------------------------------------------------------------
Total liabilities $ 848,002
- --------------------------------------------------------------------------------
Net Assets applicable to investors' interest in Portfolio $58,402,210
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Net proceeds from capital contributions and withdrawals $47,935,346
Net unrealized appreciation of investments and foreign currency
(computed on the basis of identified cost) 10,466,864
- --------------------------------------------------------------------------------
Total $58,402,210
- --------------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended
February 28, 1998
Investment Income
- --------------------------------------------------------------------------------
Dividends (net of foreign taxes, $5,619) $ 286,278
Interest income 88,174
- --------------------------------------------------------------------------------
Total income $ 374,452
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Investment adviser fee (Note 2) $ 202,062
Administration fee (Note 2) 67,585
Compensation of Trustees not members of the Investment
Advisers'/Administrator's organization (Note 2) 6,176
Custodian fee 100,804
Legal and accounting services 4,782
Amortization of organization expenses (Note 1C) 619
Miscellaneous 73
- --------------------------------------------------------------------------------
Total expenses $ 382,101
- --------------------------------------------------------------------------------
Net investment loss $ (7,649)
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- --------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 4,012,613
Foreign currency transactions (53,904)
- --------------------------------------------------------------------------------
Net realized gain on investment transactions $ 3,958,709
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 3,735,098
Foreign currency (817)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $ 3,734,281
- --------------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 7,692,990
- --------------------------------------------------------------------------------
Net increase in net assets from operations $ 7,685,341
- --------------------------------------------------------------------------------
See notes to financial statements
11
<PAGE>
Information Age Portfolio as of February 28, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
Six Months Ended
Increase (Decrease) February 28, 1998 Year Ended
in Net Assets (Unaudited) August 31, 1997
- --------------------------------------------------------------------------------
From operations --
Net investment loss $ (7,649) $ (19,786)
Net realized gain on
investment transactions 3,958,709 5,605,068
Net change in unrealized
appreciation (depreciation) 3,734,281 4,259,017
- --------------------------------------------------------------------------------
Net increase in net assets
from operations $ 7,685,341 $ 9,844,299
- --------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,314,271 $ 19,061,455
Withdrawals (7,971,346) (20,235,195)
- --------------------------------------------------------------------------------
Net decrease in net assets from
capital transactions $ (657,075) $ (1,173,740)
- --------------------------------------------------------------------------------
Net increase in net assets $ 7,028,266 $ 8,670,559
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of period $ 51,373,944 $ 42,703,385
- --------------------------------------------------------------------------------
At end of period $ 58,402,210 $ 51,373,944
- --------------------------------------------------------------------------------
See notes to financial statements
12
<PAGE>
Information Age Portfolio as of February 28, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Six Months Ended Year Ended August 31,
February 28, 1998 --------------------------------
(Unaudited) 1997 1996*
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Ratios to average daily net assets
- ---------------------------------------------------------------------------------------------------------
Expenses 1.43%+ 1.48% 1.52%+
Net investment income (loss) (0.03)%+ (0.04)% 0.07%+
Portfolio Turnover 88.94% 160% 115%
- ---------------------------------------------------------------------------------------------------------
Average commission rate paid per share/(1)/ $ 0.0172 $ 0.0160 $ 0.0303
- ---------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $ 58,402 $ 51,374 $ 42,703
- ---------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the period from the start of business, September 18, 1995, to August
31, 1996.
/(1)/ Average commission rate paid per share 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.
See notes to financial statements
13
<PAGE>
Information Age Portfolio as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
------------------------------------------------------------------------------
Information Age Portfolio (the "Portfolio") is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company.
The Portfolio which was organized as a trust under the laws of the State of
New York on September 1, 1992 seeks to provide long-term capital growth by
investing in a global and diversified portfolio of securities of information
age companies. The Declaration of Trust permits the Trustees to issue
interests in the Portfolio. The following is a summary of the significant
accounting policies of the Portfolio. The policies are in conformity with
generally accepted accounting principles.
A Investment Valuations -- Marketable securities, including options, that are
listed on foreign or U.S. securities exchanges or in the NASDAQ National
Market System are valued at closing sale prices, on the exchange where such
securities are principally traded. Futures positions on securities or
currencies are generally valued at closing settlement prices. Unlisted or
listed securities for which closing sale prices are not available are valued
at the mean between the latest bid and asked prices. Short-term debt
securities with a remaining maturity of 60 days or less are valued at
amortized cost. Other fixed income and debt securities, including listed
securities and securities for which price quotations are available, will
normally be valued on the basis of valuations furnished by a pricing service.
Investments for which valuations or market quotations are unavailable are
valued at fair value using methods determined in good faith by or at the
direction of the Trustees.
B Federal Taxes -- The Portfolio is treated as a partnership for Federal tax
purposes. No provision is made by the Portfolio for Federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes on its share of such
income. 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 investor's distributive share of the
Portfolio's net investment income, net realized capital gains, and any other
items of income, gain, loss, deduction or credit. Withholding taxes on foreign
dividends and capital gains have been provided for in accordance with the
Trust's understanding of the applicable countries' tax rules and rates.
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 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 underlying security, and are
recorded for book purposes as unrealized gains or losses by the Portfolio. The
Portfolio's investment in financial futures contracts is designed only to
hedge against anticipated future changes in interest or currency exchange
rates. Should interest or currency exchange rates move unexpectedly, the
Portfolio may not achieve the anticipated benefits of the financial futures
contracts and may realize a loss.
E Options on Financial Futures -- Upon the purchase of a put option on foreign
currency by the Portfolio, the premium paid is recorded as an investment, the
value of which is marked-to-market daily. When a purchased option expires, the
Portfolio will realize a loss in the amount of the cost of the option. When a
Portfolio enters into a closing sales transaction, the Portfolio will realize
a gain or loss depending upon whether the sales proceeds from the closing
sales transaction are greater or less than the cost of the option. When a
Portfolio exercises a put option, settlement is made in cash. The risk
associated with purchasing options is limited to the premium originally paid.
F Foreign Currency Translation -- Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing on
the respective dates of such transactions. Recognized gains or losses on
investment transactions attributable to foreign currency rates are recorded
for financial statement purposes as net realized gains and losses on
investments. That portion of unrealized gains and losses on investments that
result from
14
<PAGE>
Information Age Portfolio as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
fluctuations in foreign currency exchange rates are not separately disclosed.
G Forward Foreign Currency Exchange Contracts -- The Portfolio may enter into
forward foreign currency exchange contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date. Risks may arise
upon entering these contracts from the potential inability of counterparties
to meet the terms of their contracts and from movements in the value of a
foreign currency relative to the U.S. dollar. The Portfolio will enter into
forward contracts for hedging purposes as well as non-hedging purposes. The
forward foreign currency exchange contracts are adjusted by the daily exchange
rate of the underlying currency and any gains or losses are recorded for
financial statement purposes as unrealized until such time as the contracts
have been closed or offset.
H 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.
I Other -- Investment transactions are accounted for on a trade date basis.
Dividend income is recorded on the ex-dividend date. However, if the ex-
dividend date has passed, certain dividends from foreign securities are
recorded as the Portfolio is informed of the ex-dividend date. Interest income
is recorded on the accrual basis.
J Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolio. Pursuant to the custodian agreement, IBT receives
a fee reduced by credits which are determined based on the average daily cash
balances the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are reflected as a reduction of
operating expense on the statement of operations.
K Interim Financial Information -- The interim financial statements relating
to February 28, 1998 and for the period then ended have not been audited by
independent certified public accountants, but in the opinion of the Funds
manangement, reflect all adjustments, consisting only of normal recurring
adjustments necessary for the fair presentation of the financial statements.
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), and Lloyd George
Investment Management (Bermuda) Limited, an affiliate of EVM, (the Advisers)
as compensation for management and investment advisory services rendered to
the Portfolio. Under the advisory agreement, the Advisers receive a monthly
fee, divided equally between them, of 0.0625% (0.75% annually) of the average
daily net assets of the Portfolio up to $500,000,000, and at reduced rates as
daily net assets exceed that level. For the six months ended February 28, 1998
the adviser fee was 0.75% (annualized) of average net assets for such period
and amounted to $202,062. In addition, an administrative fee is earned by EVM
for managing and administering the business affairs of the Portfolio. Under
the administration agreement, EVM earns a monthly fee in the amount of 1/48th
of 1% (equal to 0.25% annually) of the average daily net assets of the
Portfolio up to $500,000,000, and at reduced rates as daily net assets exceed
that level. For the six months ended February 28, 1998 the administration fee
was 0.25% (annualized) of average net assets for such period and amounted to
$67,585. Except as to the Trustees of the Portfolio who are not members of the
Advisers, or EVM's organization, officers and Trustees receive remuneration
for their services to the Portfolio out of such investment adviser and
administrative fees.
Trustees of the Portfolio that are not affiliated with the Advisers 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 February 28, 1998, no significant amounts have been deferred.
Certain of the officers and Trustees of the Portfolio are officers and
directors/trustees of the above organizations.
3 Investment Transactions
------------------------------------------------------------------------------
Purchase and sales of investments, other than short-term obligations and
purchased option transactions, aggregated $46,656,814 and $47,237,658,
respectively.
15
<PAGE>
Information Age Portfolio as of February 28, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
4 Federal Income Tax Basis of Investments
------------------------------------------------------------------------------
The cost and unrealized appreciation/depreciation in value of the investments
owned at February 28, 1998, are as follows:
Aggregate cost $ 47,171,884
------------------------------------------------------------------------------
Gross unrealized appreciation $ 12,113,954
Gross unrealized depreciation (1,648,376)
------------------------------------------------------------------------------
Net unrealized appreciation $ 10,465,578
------------------------------------------------------------------------------
5 Risks Associated with Foreign Investments
------------------------------------------------------------------------------
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less publicly
available information about foreign companies, particularly those not subject
to the disclosure and reporting requirements of the U.S. securities laws.
Foreign issuers are generally not bound by uniform accounting, auditing, and
financial reporting requirements and standards of practice comparable to those
applicable to domestic issuers. Investments in foreign securities also involve
the risk of possible adverse changes in investment or exchange control
regulations, expropriation or confiscatory taxation, limitation on the removal
of funds or other assets of the Portfolio, political or financial instability
or diplomatic and other developments which could affect such investments.
Foreign stock markets, while growing in volume and sophistication, are
generally not as developed as those in the United States, and securities of
some foreign issuers (particularly those located in developing countries) may
be less liquid and more volatile than securities of comparable U.S. companies.
In general, there is less overall governmental supervision and regulation of
foreign securities markets, broker-dealers, and issuers than in the United
States.
6 Financial Instruments
------------------------------------------------------------------------------
The Portfolio regularly trades 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.
The Portfolio did not have any open obligations under these financial
instruments at February 28, 1998.
7 Line of Credit
------------------------------------------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $100 million unsecured line of credit agreement
with a group of banks. The Portfolio may temporarily borrow from the line of
credit to satisfy redemption requests or settle investment transactions.
Interest is charged to each portfolio or fund based on its borrowings at an
amount above either the Eurodollar rate or federal funds rate. In addition, a
fee computed at an annual rate of 0.10% on the daily unused portion of the
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 ended February 28, 1998.
16
<PAGE>
Information Age Portfolio as of February 28, 1998
INVESTMENT MANAGEMENT
Information Age Portfolio
Officers
James B. Hawkes
President and Trustee
Michel Normandeau
Vice President
Raymond O'Neill
Vice President
Duncan W. Richardson
Vice President and
Co-Portfolio Manager
Hon. Robert Lloyd George
Vice President, Trustee and
Co-Portfolio Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Hon. Edward K.Y. Chen
Professor and Director, Center for Asian Studies,
University of Hong Kong
Donald R. Dwight
President, Dwight Partners, 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
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
17
