UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-07409 | |||||||
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Tax-Managed Growth Portfolio | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
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The Eaton Vance Building, 255 State Street, Boston, Massachusetts |
| 02109 | ||||||
(Address of principal executive offices) |
| (Zip code) | ||||||
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Alan R. Dynner | ||||||||
(Name and address of agent for service) | ||||||||
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Registrant’s telephone number, including area code: | (617) 482-8260 |
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Date of fiscal year end: | December 31 |
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Date of reporting period: | June 30, 2005 |
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Item 1. Reports to Stockholders
Tax-Managed Growth Portfolio as of June 30, 2005
PORTFOLIO OF INVESTMENTS (Unaudited)
Common Stocks - 99.3% | |||||||||||
Security | Shares | Value | |||||||||
Aerospace & Defense - 3.0% | |||||||||||
Boeing Company (The) | 796,801 | $ | 52,588,866 | ||||||||
General Dynamics Corp. | 735,000 | 80,511,900 | |||||||||
Honeywell International, Inc. | 277,798 | 10,175,741 | |||||||||
Northrop Grumman Corp. | 3,489,713 | 192,806,643 | |||||||||
Raytheon Company | 340,663 | 13,326,737 | |||||||||
Rockwell Collins, Inc. | 109,067 | 5,200,315 | |||||||||
Teledyne Technologies, Inc.(1) | 6,117 | 199,292 | |||||||||
United Technologies Corp. | 3,658,876 | 187,883,283 | |||||||||
$ | 542,692,777 | ||||||||||
Air Freight & Logistics - 2.5% | |||||||||||
FedEx Corp. | 2,106,578 | $ | 170,653,884 | ||||||||
Robinson (C.H.) Worldwide, Inc. | 1,039,952 | 60,525,206 | |||||||||
United Parcel Service, Inc. Class B | 3,324,281 | 229,907,274 | |||||||||
$ | 461,086,364 | ||||||||||
Airlines - 0.0% | |||||||||||
Southwest Airlines, Inc. | 379,642 | $ | 5,288,413 | ||||||||
$ | 5,288,413 | ||||||||||
Auto Components - 0.1% | |||||||||||
ArvinMeritor, Inc. | 8,000 | $ | 142,320 | ||||||||
BorgWarner, Inc. | 186,738 | 10,022,228 | |||||||||
Dana Corp. | 25,000 | 375,250 | |||||||||
Delphi Corp. | 5,361 | 24,929 | |||||||||
Johnson Controls, Inc. | 234,164 | 13,190,458 | |||||||||
Visteon Corp. | 9,828 | 59,263 | |||||||||
$ | 23,814,448 | ||||||||||
Automobiles - 0.0% | |||||||||||
DaimlerChrysler AG | 7,000 | $ | 283,570 | ||||||||
Ford Motor Co. | 85,182 | 872,264 | |||||||||
General Motors Corp. | 9,023 | 306,782 | |||||||||
Harley-Davidson, Inc. | 140,700 | 6,978,720 | |||||||||
Honda Motor Co. Ltd. ADR | 20,000 | 492,200 | |||||||||
$ | 8,933,536 | ||||||||||
Beverages - 4.2% | |||||||||||
Anheuser-Busch Companies, Inc. | 4,401,266 | $ | 201,357,919 | ||||||||
Brown-Forman Corp. Class A | 547,732 | 35,054,848 |
Security | Shares | Value | |||||||||
Beverages (continued) | |||||||||||
Brown-Forman Corp. Class B | 45,820 | $ | 2,770,277 | ||||||||
Coca-Cola Company (The) | 3,550,659 | 148,240,013 | |||||||||
Coca-Cola Enterprises, Inc. | 1,756,930 | 38,670,029 | |||||||||
PepsiCo., Inc. | 6,274,023 | 338,358,060 | |||||||||
$ | 764,451,146 | ||||||||||
Biotechnology - 1.7% | |||||||||||
Amgen, Inc.(1) | 4,048,249 | $ | 244,757,135 | ||||||||
Applera Corp. - Celera Genomics Group(1) | 26,000 | 285,220 | |||||||||
Biogen Idec, Inc.(1) | 11,200 | 385,840 | |||||||||
Genzyme Corp.(1) | 564,926 | 33,946,403 | |||||||||
Gilead Sciences, Inc.(1) | 115,482 | 5,080,053 | |||||||||
Incyte Corp.(1) | 14,294 | 102,202 | |||||||||
Invitrogen Corp.(1) | 429,910 | 35,807,204 | |||||||||
Vertex Pharmaceuticals, Inc.(1) | 13,000 | 218,920 | |||||||||
$ | 320,582,977 | ||||||||||
Building Products - 0.9% | |||||||||||
American Standard Companies, Inc. | 975,691 | $ | 40,900,967 | ||||||||
Masco Corp. | 4,157,854 | 132,053,443 | |||||||||
Water Pik Technologies, Inc.(1) | 2,141 | 40,786 | |||||||||
$ | 172,995,196 | ||||||||||
Capital Markets - 3.9% | |||||||||||
Affiliated Managers Group(1) | 20,520 | $ | 1,402,132 | ||||||||
Bank of New York Co., Inc. (The) | 398,470 | 11,467,967 | |||||||||
Bear Stearns Companies, Inc. | 88,001 | 9,146,824 | |||||||||
Credit Suisse Group | 155,136 | 6,082,862 | |||||||||
Federated Investors, Inc. | 1,666,768 | 50,019,708 | |||||||||
Franklin Resources, Inc. | 1,462,116 | 112,553,690 | |||||||||
Goldman Sachs Group, Inc. | 948,077 | 96,722,816 | |||||||||
Investors Financial Services Corp. | 453,428 | 17,148,647 | |||||||||
Knight Capital Group, Inc.(1) | 1,750,000 | 13,335,000 | |||||||||
Legg Mason, Inc. | 26,461 | 2,754,855 | |||||||||
Lehman Brothers Holdings, Inc. | 96,237 | 9,554,409 | |||||||||
Mellon Financial Corp. | 235,337 | 6,751,819 | |||||||||
Merrill Lynch & Co., Inc. | 2,041,332 | 112,293,673 | |||||||||
Morgan Stanley | 3,744,289 | 196,462,844 | |||||||||
Northern Trust Corp. | 429,252 | 19,569,599 | |||||||||
Nuveen Investments Class A | 150,000 | 5,643,000 | |||||||||
Piper Jaffray Companies, Inc.(1) | 40,992 | 1,247,387 | |||||||||
Price (T. Rowe) Group, Inc. | 163,648 | 10,244,365 |
See notes to financial statements
1
Tax-Managed Growth Portfolio as of June 30, 2005
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security | Shares | Value | |||||||||
Capital Markets (continued) | |||||||||||
Raymond James Financial, Inc. | 147,337 | $ | 4,162,270 | ||||||||
Schwab (Charles) & Co. | 857,261 | 9,669,904 | |||||||||
State Street Corp. | 132,670 | 6,401,327 | |||||||||
UBS AG | 63,392 | 4,935,067 | |||||||||
Waddell & Reed Financial, Inc., Class A | 273,635 | 5,062,247 | |||||||||
$ | 712,632,412 | ||||||||||
Chemicals - 0.9% | |||||||||||
Airgas, Inc. | 264,027 | $ | 6,513,546 | ||||||||
Arch Chemicals, Inc. | 4,950 | 123,552 | |||||||||
Ashland, Inc.(1) | 116,107 | 8,344,610 | |||||||||
Bayer AG ADR | 40,000 | 1,331,200 | |||||||||
Dow Chemical Co. (The) | 266,675 | 11,875,038 | |||||||||
DuPont (E.I.) de Nemours & Co. | 1,133,572 | 48,754,932 | |||||||||
Ecolab, Inc. | 258,423 | 8,362,568 | |||||||||
MacDermid, Inc. | 61,937 | 1,929,957 | |||||||||
Monsanto Company | 19,181 | 1,205,909 | |||||||||
Olin Corp. | 9,900 | 180,576 | |||||||||
PPG Industries, Inc. | 23,542 | 1,477,496 | |||||||||
Rohm and Haas Co. | 2,601 | 120,530 | |||||||||
RPM, Inc. | 70,138 | 1,280,720 | |||||||||
Sigma-Aldrich Corp. | 630,897 | 35,355,468 | |||||||||
Solutia, Inc.(1) | 20,293 | 11,871 | |||||||||
Valspar Corp. | 731,155 | 35,307,475 | |||||||||
$ | 162,175,448 | ||||||||||
Commercial Banks - 8.7% | |||||||||||
Amegy Bancorp, Inc. | 1,255,140 | $ | 28,090,033 | ||||||||
AmSouth Bancorporation | 586,767 | 15,255,942 | |||||||||
Associated Banc-Corp. | 1,056,688 | 35,568,118 | |||||||||
Bank of America Corp. | 4,884,245 | 222,770,414 | |||||||||
Bank of Hawaii Corp. | 69,735 | 3,539,051 | |||||||||
Bank of Montreal | 266,320 | 12,391,870 | |||||||||
BB&T Corp. | 1,804,226 | 72,114,913 | |||||||||
Canadian Imperial Bank of Commerce | 100,000 | 6,197,000 | |||||||||
City National Corp. | 184,221 | 13,210,488 | |||||||||
Colonial Bancgroup, Inc. (The) | 253,936 | 5,601,828 | |||||||||
Comerica, Inc. | 331,589 | 19,165,844 | |||||||||
Commerce Bancshares, Inc. | 155,154 | 7,821,313 | |||||||||
Compass Bancshares, Inc. | 299,160 | 13,462,200 | |||||||||
Fifth Third Bancorp | 1,720,472 | 70,900,651 | |||||||||
First Citizens BancShares, Inc. | 30,600 | 4,423,230 | |||||||||
First Financial Bancorp. | 47,933 | 905,934 |
Security | Shares | Value | |||||||||
Commercial Banks (continued) | |||||||||||
First Horizon National Corp. | 153,987 | $ | 6,498,251 | ||||||||
First Midwest Bancorp, Inc. | 815,329 | 28,675,121 | |||||||||
Hibernia Corp. Class A | 187,345 | 6,216,107 | |||||||||
HSBC Holdings PLC ADR | 608,805 | 48,491,318 | |||||||||
Huntington Bancshares, Inc. | 630,239 | 15,213,969 | |||||||||
KeyCorp | 835,217 | 27,687,444 | |||||||||
M&T Bank Corp. | 54,058 | 5,684,739 | |||||||||
Marshall & Ilsley Corp. | 629,932 | 28,000,477 | |||||||||
National City Corp. | 1,652,359 | 56,378,489 | |||||||||
North Fork Bancorporation, Inc. | 1,825,892 | 51,289,306 | |||||||||
PNC Bank Corp. | 149,958 | 8,166,713 | |||||||||
Popular, Inc. | 1,432 | 36,072 | |||||||||
Regions Financial Corp. | 1,883,666 | 63,818,604 | |||||||||
Royal Bank of Canada | 353,553 | 21,906,144 | |||||||||
Royal Bank of Scotland Group PLC | 50,837 | 1,531,287 | |||||||||
S&T Bancorp, Inc. | 100,000 | 3,610,000 | |||||||||
Societe Generale | 859,825 | 87,225,032 | |||||||||
SunTrust Banks, Inc. | 1,388,437 | 100,300,689 | |||||||||
Synovus Financial Corp. | 1,369,351 | 39,259,293 | |||||||||
TCF Financial Corp. | 72,500 | 1,876,300 | |||||||||
Trustmark Corp. | 205,425 | 6,010,735 | |||||||||
U.S. Bancorp | 5,086,973 | 148,539,612 | |||||||||
Valley National Bancorp. | 104,601 | 2,445,571 | |||||||||
Wachovia Corp. | 2,071,982 | 102,770,307 | |||||||||
Wells Fargo & Co. | 2,396,974 | 147,605,659 | |||||||||
Westamerica Bancorporation | 268,474 | 14,178,112 | |||||||||
Whitney Holding Corp. | 516,858 | 16,865,060 | |||||||||
Zions Bancorporation | 231,190 | 16,999,401 | |||||||||
$ | 1,588,698,641 | ||||||||||
Commercial Services & Supplies - 1.5% | |||||||||||
Allied Waste Industries, Inc.(1) | 1,674,390 | $ | 13,277,913 | ||||||||
Avery Dennison Corp. | 1,004,475 | 53,196,996 | |||||||||
Banta Corp. | 42,341 | 1,920,588 | |||||||||
Cendant Corp. | 784,731 | 17,554,432 | |||||||||
Century Business Services, Inc.(1) | 185,000 | 749,250 | |||||||||
Cintas Corp. | 1,568,941 | 60,561,123 | |||||||||
Consolidated Graphics, Inc.(1) | 70,215 | 2,862,666 | |||||||||
Deluxe Corp. | 32,000 | 1,299,200 | |||||||||
Donnelley (R.R.) & Sons Co. | 91,260 | 3,149,383 | |||||||||
Equifax, Inc. | 80,000 | 2,856,800 | |||||||||
HNI Corp. | 1,331,533 | 68,107,913 | |||||||||
Hudson Highland Group, Inc.(1) | 10,262 | 159,985 |
See notes to financial statements
2
Tax-Managed Growth Portfolio as of June 30, 2005
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security | Shares | Value | |||||||||
Commercial Services & Supplies (continued) | |||||||||||
Ikon Office Solutions, Inc. | 56,287 | $ | 535,289 | ||||||||
Imagistics International, Inc.(1) | 809 | 22,652 | |||||||||
Manpower, Inc. | 2,000 | 79,560 | |||||||||
Miller (Herman), Inc. | 541,800 | 16,709,112 | |||||||||
Monster Worldwide, Inc.(1) | 68,426 | 1,962,458 | |||||||||
Navigant Consulting, Inc.(1) | 273,137 | 4,823,599 | |||||||||
PHH Corp.(1) | 27,467 | 706,451 | |||||||||
Pitney Bowes, Inc. | 22,857 | 995,422 | |||||||||
School Specialty Corp.(1) | 49,197 | 2,287,660 | |||||||||
Steelcase, Inc. | 123,000 | 1,703,550 | |||||||||
Waste Management, Inc. | 1,014,367 | 28,747,161 | |||||||||
$ | 284,269,163 | ||||||||||
Communications Equipment - 1.4% | |||||||||||
3Com Corp.(1) | 869,674 | $ | 3,165,613 | ||||||||
ADC Telecommunications, Inc.(1) | 41,693 | 907,656 | |||||||||
Alcatel S.A. ADR(1) | 43,728 | 477,072 | |||||||||
Avaya, Inc.(1) | 56,571 | 470,671 | |||||||||
Ciena Corp.(1) | 380,378 | 794,990 | |||||||||
Cisco Systems, Inc.(1) | 4,918,086 | 93,984,623 | |||||||||
Comverse Technology, Inc.(1) | 340,508 | 8,053,014 | |||||||||
Corning, Inc.(1) | 3,636,520 | 60,438,962 | |||||||||
Enterasys Networks, Inc.(1) | 98,848 | 88,963 | |||||||||
JDS Uniphase Corp.(1) | 52,451 | 79,726 | |||||||||
Lucent Technologies, Inc.(1) | 555,464 | 1,616,400 | |||||||||
Motorola, Inc. | 1,335,456 | 24,385,427 | |||||||||
Nokia Corp., Class A, ADR | 2,042,478 | 33,986,834 | |||||||||
Nortel Networks Corp.(1) | 996,447 | 2,600,727 | |||||||||
Qualcomm, Inc. | 534,846 | 17,655,266 | |||||||||
Riverstone Networks, Inc.(1) | 28,706 | 17,941 | |||||||||
Tellabs, Inc.(1) | 110,405 | 960,523 | |||||||||
$ | 249,684,408 | ||||||||||
Computers & Peripherals - 2.5% | |||||||||||
Dell, Inc.(1) | 4,420,850 | $ | 174,667,783 | ||||||||
EMC Corp.(1) | 1,377,291 | 18,882,660 | |||||||||
Gateway, Inc.(1) | 86,345 | 284,938 | |||||||||
Hewlett-Packard Co. | 913,405 | 21,474,152 | |||||||||
International Business Machines Corp. | 1,689,360 | 125,350,512 | |||||||||
Lexmark International, Inc., Class A(1) | 1,709,509 | 110,827,468 | |||||||||
McData Corp., Class A(1) | 17,982 | 71,928 | |||||||||
Network Appliance, Inc.(1) | 488,000 | 13,795,760 |
Security | Shares | Value | |||||||||
Computers & Peripherals (continued) | |||||||||||
PalmOne, Inc.(1) | 64,913 | $ | 1,932,460 | ||||||||
Sun Microsystems, Inc.(1) | 319,180 | 1,190,541 | |||||||||
$ | 468,478,202 | ||||||||||
Construction & Engineering - 0.1% | |||||||||||
Dycom Industries, Inc.(1) | 143,116 | $ | 2,835,128 | ||||||||
Jacobs Engineering Group, Inc.(1) | 162,719 | 9,154,571 | |||||||||
$ | 11,989,699 | ||||||||||
Construction Materials - 0.1% | |||||||||||
CRH PLC | 329,450 | $ | 8,666,264 | ||||||||
Vulcan Materials Co. | 184,512 | 11,991,435 | |||||||||
$ | 20,657,699 | ||||||||||
Consumer Finance - 1.1% | |||||||||||
American Express Co. | 613,160 | $ | 32,638,507 | ||||||||
Capital One Financial Corp. | 1,409,490 | 112,773,295 | |||||||||
MBNA Corp. | 496,474 | 12,987,760 | |||||||||
Providian Financial Corp.(1) | 457,296 | 8,062,128 | |||||||||
SLM Corp. | 905,499 | 45,999,349 | |||||||||
$ | 212,461,039 | ||||||||||
Containers & Packaging - 0.1% | |||||||||||
Bemis Co. | 295,186 | $ | 7,834,236 | ||||||||
Caraustar Industries, Inc.(1) | 167,599 | 1,759,789 | |||||||||
Sealed Air Corp.(1) | 37,014 | 1,842,927 | |||||||||
Sonoco Products Co. | 148,033 | 3,922,874 | |||||||||
Temple-Inland, Inc. | 115,924 | 4,306,577 | |||||||||
$ | 19,666,403 | ||||||||||
Department Stores - 0.0% | |||||||||||
Neiman Marcus Group, Inc. (The) | 6 | $ | 580 | ||||||||
$ | 580 | ||||||||||
Distributors - 0.1% | |||||||||||
Genuine Parts Company | 314,107 | $ | 12,906,657 | ||||||||
$ | 12,906,657 | ||||||||||
Diversified Consumer Services - 0.5% | |||||||||||
Apollo Group, Inc. Class A(1) | 47,312 | $ | 3,700,745 | ||||||||
Block (H&R), Inc. | 787,622 | 45,957,744 |
See notes to financial statements
3
Tax-Managed Growth Portfolio as of June 30, 2005
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security | Shares | Value | |||||||||
Diversified Consumer Services (continued) | |||||||||||
Laureate Education, Inc.(1) | 520,213 | $ | 24,897,394 | ||||||||
Service Corp. International | 142,389 | 1,141,960 | |||||||||
ServiceMaster Co. | 1,156,537 | 15,486,030 | |||||||||
Stewart Enterprises, Inc. | 114,000 | 745,560 | |||||||||
$ | 91,929,433 | ||||||||||
Diversified Financial Services - 1.7% | |||||||||||
Citigroup, Inc. | 4,109,506 | $ | 189,982,462 | ||||||||
Finova Group, Inc.(1) | 175,587 | 14,925 | |||||||||
ING Groep NV ADR | 257,281 | 7,216,732 | |||||||||
JPMorgan Chase & Co. | 3,128,352 | 110,493,393 | |||||||||
Moody's Corp. | 135,086 | 6,073,467 | |||||||||
$ | 313,780,979 | ||||||||||
Diversified Telecommunication Services - 1.9% | |||||||||||
Alltel Corp. | 1,598,689 | $ | 99,566,351 | ||||||||
AT&T Corp. | 502,314 | 9,564,059 | |||||||||
BCE, Inc. | 3,400,000 | 80,512,000 | |||||||||
BellSouth Corp. | 185,784 | 4,936,281 | |||||||||
Cincinnati Bell, Inc.(1) | 169,013 | 726,756 | |||||||||
Citizens Communications Co. | 13,568 | 182,354 | |||||||||
Deutsche Telekom AG ADR | 2,006,790 | 36,965,072 | |||||||||
McLeodUSA, Inc.(1) | 947 | 48 | |||||||||
Qwest Communications International, Inc.(1) | 47,762 | 177,197 | |||||||||
RSL Communications Ltd.(1)(2) | 247,161 | 0 | |||||||||
SBC Communications, Inc. | 1,285,015 | 30,519,106 | |||||||||
Sprint Corp. | 101,903 | 2,556,746 | |||||||||
Telefonos de Mexico SA ADR | 3,251,574 | 61,422,233 | |||||||||
Verizon Communications, Inc. | 450,014 | 15,547,984 | |||||||||
$ | 342,676,187 | ||||||||||
Electric Utilities - 0.3% | |||||||||||
Ameren Corp. | 5,000 | $ | 276,500 | ||||||||
American Electric Power Co., Inc. | 960 | 35,395 | |||||||||
Exelon Corp. | 1,002,000 | 51,432,660 | |||||||||
PG&E Corp. | 47,705 | 1,790,846 | |||||||||
Southern Co. (The) | 65,985 | 2,287,700 | |||||||||
Teco Energy, Inc. | 34,145 | 645,682 | |||||||||
$ | 56,468,783 | ||||||||||
Electrical Equipment - 0.5% | |||||||||||
American Power Conversion Corp. | 34,704 | $ | 818,667 | ||||||||
Baldor Electric Co. | 149,060 | 3,625,139 |
Security | Shares | Value | |||||||||
Electrical Equipment (continued) | |||||||||||
Emerson Electric Co. | 1,147,739 | $ | 71,882,894 | ||||||||
Rockwell International Corp. | 159,099 | 7,749,712 | |||||||||
Roper Industries, Inc. | 23,122 | 1,650,217 | |||||||||
Thomas and Betts Corp.(1) | 114,600 | 3,236,304 | |||||||||
$ | 88,962,933 | ||||||||||
Electronic Equipment & Instruments - 0.6% | |||||||||||
Agilent Technologies, Inc.(1) | 461,232 | $ | 10,617,561 | ||||||||
Arrow Electronics, Inc.(1) | 8,750 | 237,650 | |||||||||
Flextronics International, Ltd.(1) | 441,607 | 5,833,628 | |||||||||
Jabil Circuit, Inc.(1) | 2,127,971 | 65,392,549 | |||||||||
Molex, Inc., Class A | 62,131 | 1,458,836 | |||||||||
National Instruments Corp. | 735,687 | 15,596,564 | |||||||||
Plexus Corp.(1) | 153,745 | 2,187,791 | |||||||||
Sanmina Corp.(1) | 1,140,602 | 6,239,093 | |||||||||
Solectron Corp.(1) | 1,752,794 | 6,643,089 | |||||||||
$ | 114,206,761 | ||||||||||
Energy Equipment & Services - 0.7% | |||||||||||
Baker Hughes, Inc. | 455,117 | $ | 23,283,786 | ||||||||
Core Laboratories NV(1) | 31,290 | 839,198 | |||||||||
Grant Prideco, Inc.(1) | 11,694 | 309,306 | |||||||||
Halliburton Co. | 706,778 | 33,798,124 | |||||||||
National-Oilwell, Inc.(1) | 427,772 | 20,336,281 | |||||||||
Schlumberger Ltd. | 553,812 | 42,056,483 | |||||||||
Smith International, Inc. | 140,000 | 8,918,000 | |||||||||
Transocean Sedco Forex, Inc.(1) | 103,602 | 5,591,400 | |||||||||
$ | 135,132,578 | ||||||||||
Food & Staples Retailing - 2.1% | |||||||||||
Albertson's, Inc. | 981,818 | $ | 20,303,996 | ||||||||
Casey's General Stores, Inc. | 35,260 | 698,853 | |||||||||
Costco Wholesale Corp. | 927,132 | 41,554,056 | |||||||||
CVS Corp. | 263,610 | 7,663,143 | |||||||||
Kroger Co. (The)(1) | 1,354,998 | 25,785,612 | |||||||||
Safeway, Inc. | 1,191,841 | 26,923,688 | |||||||||
Sysco Corp.(2)(3) | 30,000 | 1,084,886 | |||||||||
Sysco Corp. | 1,810,217 | 65,511,753 | |||||||||
Sysco Corp.(2)(3) | 60,000 | 2,169,410 | |||||||||
Walgreen Co. | 912,719 | 41,975,947 | |||||||||
Wal-Mart Stores, Inc. | 2,991,799 | 144,204,712 | |||||||||
Winn-Dixie Stores, Inc.(1) | 137,447 | 149,817 | |||||||||
$ | 378,025,873 |
See notes to financial statements
4
Tax-Managed Growth Portfolio as of June 30, 2005
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security | Shares | Value | |||||||||
Food Products - 2.7% | |||||||||||
Archer-Daniels-Midland Co. | 977,204 | $ | 20,892,622 | ||||||||
Campbell Soup Co. | 1,276,023 | 39,263,228 | |||||||||
ConAgra Foods, Inc. | 1,598,140 | 37,012,922 | |||||||||
Dean Foods Co.(1) | 362,189 | 12,763,540 | |||||||||
Del Monte Foods Co.(1) | 99,492 | 1,071,529 | |||||||||
General Mills, Inc. | 159,029 | 7,440,967 | |||||||||
Heinz (H.J.) Co. | 299,708 | 10,615,657 | |||||||||
Hershey Foods Corp. | 506,511 | 31,454,333 | |||||||||
JM Smucker Co. | 12,138 | 569,758 | |||||||||
Kellogg Co. | 58,538 | 2,601,429 | |||||||||
Kraft Foods, Inc. | 465 | 14,792 | |||||||||
Nestle SA | 275,000 | 70,274,200 | |||||||||
Sara Lee Corp. | 4,785,008 | 94,791,008 | |||||||||
Smithfield Foods, Inc.(1) | 3,845,278 | 104,860,731 | |||||||||
TreeHouse Foods, Inc.(1) | 72,438 | 2,065,202 | |||||||||
Tyson Foods, Inc. | 315,272 | 5,611,842 | |||||||||
Wrigley (Wm.) Jr. Co. | 857,367 | 59,021,144 | |||||||||
$ | 500,324,904 | ||||||||||
Gas Utilities - 0.0% | |||||||||||
National Fuel Gas Co. | 4,000 | $ | 115,640 | ||||||||
$ | 115,640 | ||||||||||
Health Care Equipment & Supplies - 1.3% | |||||||||||
Advanced Medical Optics, Inc.(1) | 31,158 | $ | 1,238,530 | ||||||||
Bausch & Lomb, Inc. | 29,250 | 2,427,750 | |||||||||
Baxter International, Inc. | 229,317 | 8,507,661 | |||||||||
Becton, Dickinson and Co. | 64,173 | 3,367,157 | |||||||||
Biomet, Inc. | 419,890 | 14,544,990 | |||||||||
Boston Scientific Corp.(1) | 1,109,134 | 29,946,618 | |||||||||
Dentsply International, Inc. | 7,705 | 416,070 | |||||||||
Dionex Corp.(1) | 139,750 | 6,094,497 | |||||||||
Edwards Lifesciences Corp.(1) | 10,353 | 445,386 | |||||||||
Guidant Corp. | 57,206 | 3,849,964 | |||||||||
Hillenbrand Industries, Inc. | 489,188 | 24,728,453 | |||||||||
Hospira, Inc.(1) | 192,411 | 7,504,029 | |||||||||
Lumenis Ltd.(1) | 100,000 | 150,000 | |||||||||
Medtronic, Inc. | 2,066,441 | 107,020,979 | |||||||||
PerkinElmer, Inc. | 254,526 | 4,810,541 | |||||||||
St. Jude Medical, Inc.(1) | 48,028 | 2,094,501 | |||||||||
Steris Corp. | 6,145 | 158,357 | |||||||||
Stryker Corp. | 36,741 | 1,747,402 |
Security | Shares | Value | |||||||||
Health Care Equipment & Supplies (continued) | |||||||||||
Waters Corp.(1) | 165,841 | $ | 6,164,310 | ||||||||
Zimmer Holdings, Inc.(1) | 290,489 | 22,126,547 | |||||||||
$ | 247,343,742 | ||||||||||
Health Care Providers & Services - 2.0% | |||||||||||
AmerisourceBergen Corp. | 174,177 | $ | 12,044,340 | ||||||||
Beverly Enterprises, Inc.(1) | 50,586 | 644,466 | |||||||||
Cardinal Health, Inc. | 1,784,669 | 102,761,241 | |||||||||
Caremark Rx, Inc.(1) | 701,471 | 31,229,489 | |||||||||
Cigna Corp. | 11,836 | 1,266,807 | |||||||||
Express Scripts, Inc.(1) | 53,316 | 2,664,734 | |||||||||
HCA, Inc. | 140 | 7,934 | |||||||||
Health Management Associates, Inc., Class A | 242,438 | 6,347,027 | |||||||||
IDX Systems Corp.(1) | 60,000 | 1,808,400 | |||||||||
IMS Health, Inc. | 280,530 | 6,948,728 | |||||||||
McKesson Corp. | 2,631 | 117,842 | |||||||||
Medco Health Solutions, Inc.(1) | 175,584 | 9,369,162 | |||||||||
Parexel International Corp.(1) | 27,837 | 552,564 | |||||||||
Renal Care Group, Inc.(1) | 372,577 | 17,175,800 | |||||||||
Schein (Henry) Corp.(1) | 2,189,855 | 90,922,780 | |||||||||
Sunrise Assisted Living, Inc.(1) | 144,000 | 7,773,120 | |||||||||
Tenet Healthcare Corp.(1) | 3,961 | 48,483 | |||||||||
UnitedHealth Group, Inc. | 403,952 | 21,062,057 | |||||||||
Ventiv Health, Inc.(1) | 13,170 | 253,918 | |||||||||
WellPoint, Inc.(1) | 808,000 | 56,269,120 | |||||||||
$ | 369,268,012 | ||||||||||
Hotels, Restaurants & Leisure - 1.9% | |||||||||||
Brinker International, Inc.(1) | 236,211 | $ | 9,460,251 | ||||||||
Carnival Corp. | 561,335 | 30,620,824 | |||||||||
CBRL Group, Inc. | 62,047 | 2,411,146 | |||||||||
Darden Restaurants, Inc. | 184,714 | 6,091,868 | |||||||||
Evans (Bob) Farms, Inc. | 50,957 | 1,188,317 | |||||||||
Gaylord Entertainment Co.(1) | 428,482 | 19,920,128 | |||||||||
International Game Technology | 400,000 | 11,260,000 | |||||||||
International Speedway Corp. | 118,344 | 6,658,033 | |||||||||
Jack in the Box, Inc.(1) | 500,000 | 18,960,000 | |||||||||
Lone Star Steakhouse & Saloon, Inc. | 145,981 | 4,439,282 | |||||||||
Marriott International, Inc. | 272,535 | 18,592,338 | |||||||||
McDonald's Corp. | 863,972 | 23,975,223 | |||||||||
MGM Grand, Inc.(1) | 188,890 | 7,476,266 | |||||||||
Navigant International, Inc.(1) | 38,258 | 562,010 |
See notes to financial statements
5
Tax-Managed Growth Portfolio as of June 30, 2005
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security | Shares | Value | |||||||||
Hotels, Restaurants & Leisure (continued) | |||||||||||
Outback Steakhouse, Inc. | 1,534,369 | $ | 69,414,854 | ||||||||
Papa John's International, Inc.(1) | 190,361 | 7,608,729 | |||||||||
Royal Caribbean Cruises Ltd. | 500,000 | 24,180,000 | |||||||||
Sonic Corp.(1) | 159,765 | 4,877,625 | |||||||||
Starbucks Corp.(1) | 1,199,709 | 61,976,967 | |||||||||
Yum! Brands, Inc. | 236,553 | 12,319,680 | |||||||||
$ | 341,993,541 | ||||||||||
Household Durables - 0.6% | |||||||||||
Blyth Industries, Inc. | 705,171 | $ | 19,780,047 | ||||||||
D.R. Horton, Inc. | 625,255 | 23,515,841 | |||||||||
Department 56, Inc.(1) | 5,455 | 55,914 | |||||||||
Fortune Brands, Inc. | 128,148 | 11,379,542 | |||||||||
Helen of Troy Ltd.(1) | 20,000 | 509,200 | |||||||||
Interface, Inc., Class A(1) | 75,467 | 607,509 | |||||||||
Leggett & Platt, Inc. | 1,813,805 | 48,210,937 | |||||||||
Maytag Corp. | 27,073 | 423,963 | |||||||||
Newell Rubbermaid, Inc. | 411,393 | 9,807,609 | |||||||||
Snap-On, Inc. | 42,453 | 1,456,138 | |||||||||
$ | 115,746,700 | ||||||||||
Household Products - 1.7% | |||||||||||
Clorox Co. (The) | 53,688 | $ | 2,991,495 | ||||||||
Colgate-Palmolive Co. | 714,888 | 35,680,060 | |||||||||
Energizer Holdings, Inc.(1) | 168,981 | 10,505,549 | |||||||||
Kimberly-Clark Corp. | 1,555,480 | 97,357,493 | |||||||||
Procter & Gamble Co. | 3,183,122 | 167,909,686 | |||||||||
$ | 314,444,283 | ||||||||||
Independent Power Producers & Energy Traders - 0.2% | |||||||||||
AES Corp.(1) | 49,542 | $ | 811,498 | ||||||||
Duke Energy Corp. | 417,416 | 12,409,778 | |||||||||
Dynegy, Inc.(1) | 22,688 | 110,264 | |||||||||
TXU Corp. | 199,013 | 16,535,990 | |||||||||
$ | 29,867,530 | ||||||||||
Industrial Conglomerates - 2.9% | |||||||||||
3M Co. | 745,287 | $ | 53,884,250 | ||||||||
General Electric Co. | 12,324,290 | 427,036,649 | |||||||||
Teleflex, Inc. | 33,700 | 2,000,769 | |||||||||
Tyco International, Ltd. | 1,715,944 | 50,105,565 | |||||||||
$ | 533,027,233 |
Security | Shares | Value | |||||||||
Insurance - 5.9% | |||||||||||
21st Century Insurance Group | 70,700 | $ | 1,049,188 | ||||||||
Aegon N.V. ADR | 5,311,829 | 68,363,239 | |||||||||
AFLAC, Inc. | 2,162,527 | 93,594,169 | |||||||||
Allstate Corp. (The) | 191,610 | 11,448,698 | |||||||||
American International Group, Inc. | 5,411,957 | 314,434,702 | |||||||||
AON Corp. | 786,684 | 19,698,567 | |||||||||
Berkshire Hathaway, Inc., Class A(1) | 487 | 40,664,500 | |||||||||
Berkshire Hathaway, Inc., Class B(1) | 41,316 | 115,003,086 | |||||||||
Chubb Corp. | 6,077 | 520,252 | |||||||||
Commerce Group, Inc. | 120,000 | 7,453,200 | |||||||||
Gallagher (Arthur J.) and Co. | 726,310 | 19,704,790 | |||||||||
Hartford Financial Services Group, Inc. | 11,094 | 829,609 | |||||||||
Jefferson-Pilot Corp. | 186,756 | 9,416,238 | |||||||||
Lincoln National Corp. | 52,903 | 2,482,209 | |||||||||
Manulife Financial Corp. | 74,958 | 3,583,742 | |||||||||
Marsh & McLennan Cos., Inc. | 837,113 | 23,188,030 | |||||||||
MetLife, Inc. | 1,869,700 | 84,024,318 | |||||||||
Old Republic International Corp. | 240,548 | 6,083,459 | |||||||||
Progressive Corp.(2)(3) | 10,900 | 1,076,221 | |||||||||
Progressive Corp. | 1,995,408 | 197,166,264 | |||||||||
Safeco Corp. | 161,000 | 8,748,740 | |||||||||
St. Paul Companies, Inc. (The) | 291,677 | 11,529,992 | |||||||||
Torchmark Corp. | 345,335 | 18,026,487 | |||||||||
UICI | 43,597 | 1,297,883 | |||||||||
UnumProvident Corp. | 53,710 | 983,967 | |||||||||
XL Capital Ltd., Class A | 187,100 | 13,923,982 | |||||||||
$ | 1,074,295,532 | ||||||||||
Internet & Catalog Retail - 0.3% | |||||||||||
Amazon.com Inc.(1) | 23,500 | $ | 777,380 | ||||||||
eBay, Inc.(1) | 1,257,244 | 41,501,624 | |||||||||
IAC/InterActiveCorp(1) | 806,192 | 19,388,918 | |||||||||
$ | 61,667,922 | ||||||||||
IT Services - 2.4% | |||||||||||
Accenture Ltd.(1) | 3,138,000 | $ | 71,138,460 | ||||||||
Acxiom Corp. | 647,804 | 13,526,148 | |||||||||
Affiliated Computer Services, Inc.(1) | 183,730 | 9,388,603 | |||||||||
Automatic Data Processing, Inc. | 1,554,446 | 65,240,099 | |||||||||
BISYS Group, Inc. (The)(1) | 65,000 | 971,100 | |||||||||
Ceridian Corp.(1) | 26,632 | 518,791 | |||||||||
Certegy, Inc. | 42,862 | 1,638,186 | |||||||||
Computer Sciences Corp.(1) | 268,947 | 11,752,984 |
See notes to financial statements
6
Tax-Managed Growth Portfolio as of June 30, 2005
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security | Shares | Value | |||||||||
IT Services (continued) | |||||||||||
CSG Systems International, Inc.(1) | 25,200 | $ | 478,296 | ||||||||
DST Systems, Inc.(1) | 309,105 | 14,466,114 | |||||||||
eFunds, Corp.(1) | 1 | 18 | |||||||||
Electronic Data Systems Corp. | 2,752 | 52,976 | |||||||||
First Data Corp. | 3,813,208 | 153,062,169 | |||||||||
Fiserv, Inc.(1) | 300,000 | 12,885,000 | |||||||||
Gartner Group, Inc., Class A(1) | 3,000 | 31,860 | |||||||||
Gartner Group, Inc., Class B(1) | 27,576 | 292,030 | |||||||||
Keane, Inc.(1) | 38,193 | 523,244 | |||||||||
Paychex, Inc. | 1,598,101 | 52,002,207 | |||||||||
Perot Systems Corp.(1) | 689,196 | 9,800,367 | |||||||||
Safeguard Scientific, Inc.(1) | 26,579 | 34,021 | |||||||||
SunGard Data Systems, Inc.(1) | 627,684 | 22,075,646 | |||||||||
$ | 439,878,319 | ||||||||||
Leisure Equipment & Products - 0.0% | |||||||||||
Eastman Kodak Co. | 91,016 | $ | 2,443,780 | ||||||||
Mattel, Inc. | 30,514 | 558,406 | |||||||||
$ | 3,002,186 | ||||||||||
Machinery - 2.9% | |||||||||||
Caterpillar, Inc.(2)(3) | 17,093 | $ | 1,628,265 | ||||||||
Caterpillar, Inc. | 54,360 | 5,181,052 | |||||||||
Danaher Corp. | 4,031,970 | 211,033,310 | |||||||||
Deere & Co. | 3,350,000 | 219,391,500 | |||||||||
Donaldson Co., Inc. | 79,326 | 2,405,958 | |||||||||
Dover Corp. | 343,717 | 12,504,424 | |||||||||
Federal Signal Corp. | 218,345 | 3,406,182 | |||||||||
Illinois Tool Works, Inc. | 851,632 | 67,858,038 | |||||||||
ITT Industries, Inc. | 4,214 | 411,413 | |||||||||
Nordson Corp. | 163,978 | 5,621,166 | |||||||||
Parker-Hannifin Corp. | 45,353 | 2,812,340 | |||||||||
Tecumseh Products Co., Class A | 125,700 | 3,449,208 | |||||||||
Wabtec | 94,504 | 2,029,946 | |||||||||
$ | 537,732,802 | ||||||||||
Media - 4.8% | |||||||||||
ADVO, Inc. | 750,000 | $ | 23,887,500 | ||||||||
Arbitron, Inc. | 11,555 | 495,710 | |||||||||
Belo (A.H.) Corp. | 542,924 | 13,013,888 | |||||||||
Cablevision Systems Corp.(1) | 207,410 | 6,678,602 | |||||||||
Catalina Marketing Corp. | 88,490 | 2,248,531 | |||||||||
Clear Channel Communications, Inc. | 132,517 | 4,098,751 |
Security | Shares | Value | |||||||||
Media (continued) | |||||||||||
Comcast Corp. Class A(1) | 1,979,071 | $ | 60,757,480 | ||||||||
Comcast Corp. Class A Special(1) | 1,280,622 | 38,354,629 | |||||||||
EchoStar Communications, Class A | 35,150 | 1,059,773 | |||||||||
Entercom Communications Corp.(1) | 220,000 | 7,323,800 | |||||||||
Gannett Co., Inc. | 1,070,142 | 76,119,200 | |||||||||
Havas Advertising, S.A. ADR | 3,142,938 | 17,034,724 | |||||||||
Interpublic Group of Cos., Inc.(1) | 1,130,574 | 13,770,391 | |||||||||
Knight Ridder, Inc. | 18,123 | 1,111,665 | |||||||||
Lamar Advertising Co.(1) | 241,409 | 10,325,063 | |||||||||
Liberty Global, Inc. Class A(1) | 50,655 | 2,364,069 | |||||||||
Liberty Global, Inc. Class B(1) | 1,643 | 79,751 | |||||||||
Liberty Media Corp. Class A(1) | 1,326,604 | 13,518,095 | |||||||||
Liberty Media Corp. Class B(1) | 32,876 | 347,828 | |||||||||
McClatchy Co. (The) | 48,066 | 3,145,439 | |||||||||
McGraw-Hill Companies, Inc. (The) | 693,928 | 30,706,314 | |||||||||
Meredith Corp. | 78,054 | 3,829,329 | |||||||||
New York Times Co. (The), Class A | 303,168 | 9,443,683 | |||||||||
News Corp. Inc. Class A | 187,934 | 3,040,772 | |||||||||
Omnicom Group, Inc. | 2,322,646 | 185,486,510 | |||||||||
Proquest Company(1) | 115,000 | 3,770,850 | |||||||||
Publicis Groupe SA | 329,132 | 9,686,087 | |||||||||
Reuters Holdings PLC ADR | 1,431 | 60,666 | |||||||||
Scripps (The E.W.) Company | 51,066 | 2,492,021 | |||||||||
Time Warner, Inc.(1) | 4,154,531 | 69,422,213 | |||||||||
Tribune Co. | 1,440,457 | 50,675,277 | |||||||||
Univision Communications, Inc.(1) | 401,298 | 11,055,760 | |||||||||
Viacom, Inc., Class A | 29,774 | 959,318 | |||||||||
Viacom, Inc., Class B | 948,871 | 30,382,849 | |||||||||
Vivendi Universal SA ADR | 490,725 | 15,374,414 | |||||||||
Walt Disney Co. (The) | 4,887,954 | 123,078,682 | |||||||||
Washington Post Co. (The) | 16,470 | 13,752,944 | |||||||||
Westwood One, Inc. | 122,400 | 2,500,632 | |||||||||
WPP Group PLC | 139,450 | 1,428,968 | |||||||||
WPP Group PLC ADR | 256,051 | 13,071,404 | |||||||||
$ | 875,953,582 | ||||||||||
Metals & Mining - 0.3% | |||||||||||
Alcoa, Inc. | 697,947 | $ | 18,237,355 | ||||||||
Allegheny Technologies, Inc. | 21,408 | 472,260 | |||||||||
Inco, Ltd. | 200,000 | 7,550,000 | |||||||||
Nucor Corp. | 421,662 | 19,236,220 | |||||||||
Phelps Dodge Corp. | 14,862 | 1,374,735 | |||||||||
Steel Dynamics, Inc. | 311,800 | 8,184,750 | |||||||||
$ | 55,055,320 |
See notes to financial statements
7
Tax-Managed Growth Portfolio as of June 30, 2005
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security | Shares | Value | |||||||||
Multiline Retail - 1.8% | |||||||||||
99 Cents Only Stores(1) | 1,142,232 | $ | 14,517,769 | ||||||||
Dollar General Corp. | 101,456 | 2,065,644 | |||||||||
Dollar Tree Stores, Inc.(1) | 659,218 | 15,821,232 | |||||||||
Family Dollar Stores, Inc. | 2,618,411 | 68,340,527 | |||||||||
Kohl's Corp.(1) | 55 | 3,075 | |||||||||
May Department Stores Co. (The) | 437,780 | 17,581,245 | |||||||||
Nordstrom, Inc. | 65,692 | 4,465,085 | |||||||||
Penney (J.C.) Company, Inc. | 130,816 | 6,878,305 | |||||||||
Sears Holdings Corp.(1) | 6,230 | 933,690 | |||||||||
Target Corp. | 3,549,371 | 193,121,276 | |||||||||
$ | 323,727,848 | ||||||||||
Multi-Utilities - 0.0% | |||||||||||
Dominion Resources, Inc. | 3,249 | $ | 238,444 | ||||||||
Wisconsin Energy Corp. | 9,576 | 373,464 | |||||||||
$ | 611,908 | ||||||||||
Office Electronics - 0.0% | |||||||||||
Xerox Corp.(1) | 42,878 | $ | 591,288 | ||||||||
Zebra Technologies Corp., Class A(1) | 13,500 | 591,165 | |||||||||
$ | 1,182,453 | ||||||||||
Oil, Gas & Consumable Fuels - 9.7% | |||||||||||
Amerada Hess Corp. | 18,947 | $ | 2,018,045 | ||||||||
Anadarko Petroleum Corp. | 2,556,996 | 210,057,221 | |||||||||
Apache Corp. | 2,074,432 | 134,008,307 | |||||||||
BP PLC ADR | 5,083,828 | 317,129,191 | |||||||||
Burlington Resources, Inc. | 4,339,822 | 239,731,767 | |||||||||
Chevron Corp. | 351,610 | 19,662,031 | |||||||||
ConocoPhillips | 3,326,290 | 191,228,412 | |||||||||
Devon Energy Corp. | 1,015,400 | 51,460,472 | |||||||||
El Paso Corp. | 148,709 | 1,713,128 | |||||||||
Exxon Mobil Corp. | 6,294,824 | 361,763,535 | |||||||||
Kerr-McGee Corp. | 267,327 | 20,399,723 | |||||||||
Kinder Morgan, Inc. | 1,781,672 | 148,235,110 | |||||||||
Marathon Oil Corp. | 1,450 | 77,387 | |||||||||
Murphy Oil Corp. | 39,036 | 2,038,850 | |||||||||
Newfield Exploration Co.(1) | 120,000 | 4,786,800 | |||||||||
Royal Dutch Petroleum Co. | 118,194 | 7,670,791 | |||||||||
Total SA ADR | 400,000 | 46,740,000 | |||||||||
Valero Energy Corp. | 103,020 | 8,149,912 | |||||||||
Williams Companies, Inc. (The) | 219,065 | 4,162,235 | |||||||||
$ | 1,771,032,917 |
Security | Shares | Value | |||||||||
Paper and Forest Products - 0.2% | |||||||||||
Georgia-Pacific Corp. | 488,939 | $ | 15,548,260 | ||||||||
International Paper Co. | 112,154 | 3,388,172 | |||||||||
Louisiana-Pacific Corp. | 70,750 | 1,739,035 | |||||||||
MeadWestvaco Corp. | 84,358 | 2,365,398 | |||||||||
Neenah Paper, Inc. | 41,453 | 1,283,799 | |||||||||
Weyerhaeuser Co. | 89,778 | 5,714,370 | |||||||||
$ | 30,039,034 | ||||||||||
Personal Products - 1.6% | |||||||||||
Avon Products, Inc. | 173,400 | $ | 6,563,190 | ||||||||
Gillette Company | 3,966,764 | 200,837,261 | |||||||||
Lauder (Estee) Companies, Inc. | 2,092,312 | 81,872,169 | |||||||||
$ | 289,272,620 | ||||||||||
Pharmaceuticals - 6.5% | |||||||||||
Abbott Laboratories | 3,015,317 | $ | 147,780,686 | ||||||||
Allergan, Inc. | 38,300 | 3,264,692 | |||||||||
Andrx Corp.(1) | 180,170 | 3,659,253 | |||||||||
Bristol-Myers Squibb Co. | 4,659,347 | 116,390,488 | |||||||||
Elan Corp. PLC ADR(1) | 31,838 | 217,135 | |||||||||
Forest Laboratories, Inc.(1) | 56,800 | 2,206,680 | |||||||||
GlaxoSmithKline PLC ADR | 434,293 | 21,067,553 | |||||||||
Johnson & Johnson | 3,276,675 | 212,983,875 | |||||||||
King Pharmaceuticals, Inc.(1) | 505,637 | 5,268,738 | |||||||||
Lilly (Eli) & Co. | 3,780,716 | 210,623,688 | |||||||||
Merck & Co., Inc. | 2,536,057 | 78,110,556 | |||||||||
Mylan Laboratories, Inc. | 27,992 | 538,566 | |||||||||
Novo Nordisk ADR | 292,277 | 14,897,359 | |||||||||
Pfizer, Inc. | 7,713,548 | 212,739,654 | |||||||||
Schering AG ADR | 25,000 | 1,542,250 | |||||||||
Schering-Plough Corp. | 2,481,743 | 47,302,022 | |||||||||
Sepracor, Inc.(1) | 4,000 | 240,040 | |||||||||
Teva Pharmaceutical Industries Ltd. ADR | 1,960,008 | 61,034,649 | |||||||||
Watson Pharmaceuticals, Inc.(1) | 682,822 | 20,184,218 | |||||||||
Wyeth Corp. | 840,705 | 37,411,373 | |||||||||
$ | 1,197,463,475 | ||||||||||
Real Estate - 0.2% | |||||||||||
AvalonBay Communities, Inc. | 28,867 | $ | 2,332,454 | ||||||||
Catellus Development Corp. | 398,165 | 13,059,812 | |||||||||
Forest City Enterprises, Class A | 38,663 | 2,745,073 | |||||||||
Jones Lang LaSalle, Inc.(1) | 1,835 | 81,162 |
See notes to financial statements
8
Tax-Managed Growth Portfolio as of June 30, 2005
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security | Shares | Value | |||||||||
Real Estate (continued) | |||||||||||
Plum Creek Timber Co., Inc. | 198,791 | $ | 7,216,113 | ||||||||
Trammell Crow Co.(1) | 473,932 | 11,488,112 | |||||||||
$ | 36,922,726 | ||||||||||
Road & Rail - 0.2% | |||||||||||
ANC Rental Corp.(1) | 389,417 | $ | 39 | ||||||||
Burlington Northern Santa Fe Corp. | 192,065 | 9,042,420 | |||||||||
CSX Corporation | 38,134 | 1,626,796 | |||||||||
Florida East Coast Industries, Inc. | 121,978 | 5,281,647 | |||||||||
Heartland Express, Inc. | 653,154 | 12,690,782 | |||||||||
Kansas City Southern Industries, Inc.(1) | 15,215 | 307,039 | |||||||||
Norfolk Southern Corp. | 3,990 | 123,530 | |||||||||
Union Pacific Corp. | 10,453 | 677,354 | |||||||||
$ | 29,749,607 | ||||||||||
Semiconductors & Semiconductor Equipment - 2.3% | |||||||||||
Agere Systems, Inc.(1) | 16,588 | $ | 199,056 | ||||||||
Altera Corp.(1) | 66,116 | 1,310,419 | |||||||||
Analog Devices, Inc. | 574,160 | 21,421,910 | |||||||||
Applied Materials, Inc. | 1,441,642 | 23,325,768 | |||||||||
Broadcom Corp., Class A(1) | 541,281 | 19,220,888 | |||||||||
Broadcom Corp., Class A(1)(2)(3) | 35,000 | 1,241,918 | |||||||||
Conexant Systems, Inc.(1) | 134,174 | 216,020 | |||||||||
Cypress Semiconductor Corporation(1) | 152,742 | 1,923,022 | |||||||||
Freescale Semiconductor, Class B(1) | 101,704 | 2,154,091 | |||||||||
Intel Corp. | 10,106,487 | 263,375,051 | |||||||||
KLA-Tencor Corp. | 148,373 | 6,483,900 | |||||||||
Linear Technology Corp. | 187,760 | 6,888,914 | |||||||||
LSI Logic Corp.(1) | 132,810 | 1,127,557 | |||||||||
Maxim Integrated Products Co. | 274,351 | 10,482,952 | |||||||||
Mindspeed Technologies, Inc.(1) | 44,724 | 54,563 | |||||||||
Skyworks Solutions, Inc.(1) | 98,685 | 727,308 | |||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 909 | 8,293 | |||||||||
Teradyne, Inc.(1) | 27,996 | 335,112 | |||||||||
Texas Instruments, Inc. | 1,881,394 | 52,810,730 | |||||||||
Xilinx, Inc. | 59,554 | 1,518,627 | |||||||||
$ | 414,826,099 | ||||||||||
Software - 1.9% | |||||||||||
Adobe Systems, Inc. | 550,338 | $ | 15,750,674 | ||||||||
Cadence Design Systems, Inc.(1) | 596,556 | 8,148,955 | |||||||||
Cognos, Inc.(1) | 77,000 | 2,628,780 |
Security | Shares | Value | |||||||||
Software (continued) | |||||||||||
Computer Associates International, Inc. | 33,070 | $ | 908,764 | ||||||||
Compuware Corp.(1) | 150,944 | 1,085,287 | |||||||||
Electronic Arts, Inc.(1) | 21,405 | 1,211,737 | |||||||||
Fair Isaac Corp. | 809,818 | 29,558,357 | |||||||||
Henry (Jack) & Associates | 201,006 | 3,680,420 | |||||||||
Intuit, Inc.(1) | 616,354 | 27,803,729 | |||||||||
Microsoft Corp. | 7,131,480 | 177,145,963 | |||||||||
Oracle Corp.(1) | 900,222 | 11,882,930 | |||||||||
PalmSource, Inc.(1) | 20,110 | 170,935 | |||||||||
Parametric Technology Corp.(1) | 94,600 | 603,548 | |||||||||
Reynolds & Reynolds Co. | 216,412 | 5,849,616 | |||||||||
SAP AG ADR | 600,000 | 25,980,000 | |||||||||
Siebel Systems, Inc. | 179,184 | 1,594,738 | |||||||||
Symantec Corp.(1) | 1,160,900 | 25,237,966 | |||||||||
VERITAS Software Corp.(1) | 43,942 | 1,072,185 | |||||||||
Wind River Systems, Inc.(1) | 91,910 | 1,441,149 | |||||||||
$ | 341,755,733 | ||||||||||
Specialty Retail - 2.0% | |||||||||||
Abercrombie & Fitch Co. | 11,225 | $ | 771,158 | ||||||||
AutoNation, Inc.(1) | 1,480,654 | 30,383,020 | |||||||||
Best Buy Co., Inc. | 113,610 | 7,787,966 | |||||||||
Burlington Coat Factory Warehouse Corp. | 120,919 | 5,155,986 | |||||||||
CarMax, Inc.(1) | 67,797 | 1,806,790 | |||||||||
Circuit City Stores, Inc. | 216,000 | 3,734,640 | |||||||||
Gap, Inc. (The) | 540,888 | 10,682,538 | |||||||||
Home Depot, Inc. (The) | 4,288,033 | 166,804,484 | |||||||||
Limited Brands, Inc. | 696,967 | 14,929,033 | |||||||||
Lowe's Companies | 878,511 | 51,146,910 | |||||||||
Office Depot, Inc.(1) | 80,276 | 1,833,504 | |||||||||
OfficeMax, Inc. | 2,192 | 65,256 | |||||||||
Payless Shoesource, Inc.(1) | 23,100 | 443,520 | |||||||||
Pep Boys - Manny, Moe & Jack (The) | 62,500 | 846,250 | |||||||||
RadioShack Corp. | 631,599 | 14,634,149 | |||||||||
Sherwin-Williams Co. (The) | 80,569 | 3,793,994 | |||||||||
Staples, Inc. | 300,587 | 6,408,515 | |||||||||
Tiffany & Co. | 57,286 | 1,876,689 | |||||||||
TJX Companies, Inc. (The) | 1,716,834 | 41,804,908 | |||||||||
Too, Inc.(1) | 38,284 | 894,697 | |||||||||
$ | 365,804,007 |
See notes to financial statements
9
Tax-Managed Growth Portfolio as of June 30, 2005
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Security | Shares | Value | |||||||||
Textiles, Apparel & Luxury Goods - 0.8% | |||||||||||
Coach, Inc.(1) | 731,440 | $ | 24,554,441 | ||||||||
Nike, Inc., Class B | 1,429,222 | 123,770,625 | |||||||||
Unifi, Inc.(1) | 1,208 | 5,122 | |||||||||
$ | 148,330,188 | ||||||||||
Thrifts & Mortgage Finance - 0.7% | |||||||||||
Countrywide Financial Corp. | 1,299,998 | $ | 50,192,923 | ||||||||
Fannie Mae | 342,499 | 20,001,942 | |||||||||
Freddie Mac | 135,586 | 8,844,275 | |||||||||
Golden West Financial Corp. | 74,590 | 4,802,104 | |||||||||
MGIC Investment Corp. | 85,000 | 5,543,700 | |||||||||
Radian Group, Inc. | 1,796 | 84,807 | |||||||||
Washington Mutual, Inc. | 927,674 | 37,747,055 | |||||||||
$ | 127,216,806 | ||||||||||
Tobacco - 0.3% | |||||||||||
Altria Group, Inc. | 747,298 | $ | 48,320,289 | ||||||||
$ | 48,320,289 | ||||||||||
Trading Companies & Distributors - 0.0% | |||||||||||
United Rentals, Inc.(1) | 397,333 | $ | 8,030,100 | ||||||||
$ | 8,030,100 | ||||||||||
Wireless Telecommunication Services - 0.1% | |||||||||||
Nextel Communications, Inc., Class A(1) | 134,072 | $ | 4,331,866 | ||||||||
Telephone & Data Systems, Inc. | 57,612 | 2,351,146 | |||||||||
Telephone & Data Systems, Inc., Special Shares | 70,844 | 2,716,159 | |||||||||
Vodafone Group PLC ADR | 232,062 | 5,643,748 | |||||||||
$ | 15,042,919 | ||||||||||
Total Common Stocks (identified cost $14,401,206,817) | $ | 18,213,694,712 | |||||||||
Convertible Preferred Stocks - 0.0% | |||||||||||
Security | Shares | Value | |||||||||
Oil, Gas & Consumable Fuels - 0.0% | |||||||||||
Enron Corp.(1)(2) | 11,050 | $ | 0 | ||||||||
$ | 0 | ||||||||||
Total Convertible Preferred Stocks (identified cost $16,626,069) | $ | 0 |
Preferred Stocks - 0.0% | |||||||||||
Security | Shares | Value | |||||||||
Commercial Banks - 0.0% | |||||||||||
Wachovia Corp. (Dividend Equalization Preferred Shares)(1) | 166,518 | $ | 832 | ||||||||
$ | 832 | ||||||||||
Total Preferred Stocks (identified cost $39,407) | $ | 832 | |||||||||
Rights - 0.0% | |||||||||||
Security | Shares | Value | |||||||||
Computers and Business Equipment - 0.0% | |||||||||||
Seagate Technology, Inc. (Tax Refund Rights)(1)(2) | 197,392 | $ | 0 | ||||||||
$ | 0 | ||||||||||
Diversified Telecommunication Services - 0.0% | |||||||||||
McLeodUSA, Inc. (Escrow Rights)(1)(2) | 1,592,200 | $ | 0 | ||||||||
$ | 0 | ||||||||||
Total Rights (identified cost $0) | $ | 0 | |||||||||
Warrants - 0.0% | |||||||||||
Security | Shares | Value | |||||||||
Communications Equipment - 0.0% | |||||||||||
Lucent Technologies, Inc.(1) | 18,106 | $ | 13,942 | ||||||||
$ | 13,942 | ||||||||||
Total Warrants (identified cost $0) | $ | 13,942 | |||||||||
Commercial Paper - 0.4% | |||||||||||
Security | Principal Amount (000's omitted) | Value | |||||||||
General Electric Capital Corp., 3.38%, 7/1/05 | $ | 22,229 | $ | 22,229,000 | |||||||
Societe Generale North America, 3.21%, 7/5/05 | 44,000 | 43,984,307 | |||||||||
Total Commercial Paper (at amortized cost, $66,213,307) | $ | 66,213,307 |
See notes to financial statements
10
Tax-Managed Growth Portfolio as of June 30, 2005
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Short-Term Investments - 0.0% | |||||||||||
Security | Principal Amount (000's omitted) | Value | |||||||||
Investors Bank and Trust Company Time Deposit, 3.40%, 7/1/05 | $ | 2,000 | $ | 2,000,000 | |||||||
Total Short-Term Investments (at amortized cost, $2,000,000) | $ | 2,000,000 | |||||||||
Total Investments - 99.7% (identified cost $14,486,085,600) | $ | 18,281,922,793 | |||||||||
Other Assets, Less Liabilities - 0.3% | $ | 52,382,242 | |||||||||
Net Assets - 100.0% | $ | 18,334,305,035 |
ADR - American Depository Receipt
(1) Non-income producing security.
(2) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees.
(3) Security subject to restrictions on resale (see Note 7).
See notes to financial statements
11
Tax-Managed Growth Portfolio as of June 30, 2005
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
As of June 30, 2005
Assets | |||||||
Investments, at value (identified cost, $14,486,085,600) | $ | 18,281,922,793 | |||||
Cash | 2,828 | ||||||
Receivable for investments sold | 26,001,463 | ||||||
Interest and dividends receivable | 25,036,987 | ||||||
Tax reclaim receivable | 1,731,123 | ||||||
Total assets | $ | 18,334,695,194 | |||||
Liabilities | |||||||
Payable to affiliate for Trustees' fees | $ | 11,217 | |||||
Accrued expenses | 378,942 | ||||||
Total liabilities | $ | 390,159 | |||||
Net Assets applicable to investors' interest in Portfolio | $ | 18,334,305,035 | |||||
Sources of Net Assets | |||||||
Net proceeds from capital contributions and withdrawals | $ | 14,538,449,958 | |||||
Net unrealized appreciation (computed on the basis of identified cost) | 3,795,855,077 | ||||||
Total | $ | 18,334,305,035 |
Statement of Operations
For the Six Months Ended
June 30, 2005
Investment Income | |||||||
Dividends (net of foreign taxes, $3,207,044) | $ | 159,204,525 | |||||
Interest | 881,068 | ||||||
Total investment income | $ | 160,085,593 | |||||
Expenses | |||||||
Investment adviser fee | $ | 40,134,219 | |||||
Trustees' fees and expenses | 17,228 | ||||||
Custodian fee | 1,152,433 | ||||||
Legal and accounting services | 62,919 | ||||||
Miscellaneous | 43,048 | ||||||
Total expenses | $ | 41,409,847 | |||||
Deduct - Reduction of custodian fee | $ | 231 | |||||
Reduction of investment adviser fee | 88,889 | ||||||
Total expense reductions | $ | 89,120 | |||||
Net expenses | $ | 41,320,727 | |||||
Net investment income | $ | 118,764,866 | |||||
Realized and Unrealized Gain (Loss) | |||||||
Net realized gain (loss) - Investment transactions (identified cost basis) | $ | 43,280,563 | |||||
Securities sold short | (30,244,833 | ) | |||||
Foreign currency transactions | (67,842 | ) | |||||
Net realized gain | $ | 12,967,888 | |||||
Change in unrealized appreciation (depreciation) - Investments (identified cost basis) | $ | (448,322,634 | ) | ||||
Securities sold short | 27,299,373 | ||||||
Foreign currency | (135,492 | ) | |||||
Net change in unrealized appreciation (depreciation) | $ | (421,158,753 | ) | ||||
Net realized and unrealized loss | $ | (408,190,865 | ) | ||||
Net decrease in net assets from operations | $ | (289,425,999 | ) |
See notes to financial statements
12
Tax-Managed Growth Portfolio as of June 30, 2005
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2005 (Unaudited) | Year Ended December 31, 2004 | |||||||||
From operations - Net investment income | $ | 118,764,866 | $ | 212,033,371 | |||||||
Net realized gain from investment transactions, securities sold short and foreign currency transactions | 12,967,888 | 152,422,840 | |||||||||
Net change in unrealized appreciation (depreciation) of investments, securities sold short and foreign currency | (421,158,753 | ) | 1,317,878,707 | ||||||||
Net increase (decrease) in net assets from operations | $ | (289,425,999 | ) | $ | 1,682,334,918 | ||||||
Capital transactions - Contributions | $ | 706,768,331 | $ | 1,775,098,351 | |||||||
Withdrawals | (1,224,179,699 | ) | (1,925,879,872 | ) | |||||||
Net decrease in net assets from capital transactions | $ | (517,411,368 | ) | $ | (150,781,521 | ) | |||||
Net increase (decrease) in net assets | $ | (806,837,367 | ) | $ | 1,531,553,397 | ||||||
Net Assets | |||||||||||
At beginning of period | $ | 19,141,142,402 | $ | 17,609,589,005 | |||||||
At end of period | $ | 18,334,305,035 | $ | 19,141,142,402 |
See notes to financial statements
13
Tax-Managed Growth Portfolio as of June 30, 2005
FINANCIAL STATEMENTS CONT'D
Supplementary Data
Six Months Ended June 30, 2005 | Year Ended December 31, | ||||||||||||||||||||||||||
(Unaudited) | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||||||
Ratios/Supplemental Data† | |||||||||||||||||||||||||||
Ratios (As a percentage of average daily net assets): | |||||||||||||||||||||||||||
Net expenses | 0.45 | %(1) | 0.45 | % | 0.45 | % | 0.45 | % | 0.45 | % | 0.45 | % | |||||||||||||||
Net expenses after custodian fee reduction | 0.45 | %(1) | 0.45 | % | - | - | - | - | |||||||||||||||||||
Net investment income | 1.29 | %(1) | 1.18 | % | 1.05 | % | 0.85 | % | 0.64 | % | 0.67 | % | |||||||||||||||
Portfolio Turnover | 0.12 | % | 3 | % | 15 | % | 23 | % | 18 | % | 13 | % | |||||||||||||||
Total Return(2) | (1.49 | )% | 9.67 | % | 23.88 | % | (19.52 | )% | (9.67 | )% | - | ||||||||||||||||
Net assets, end of period (000's omitted) | $ | 18,334,305 | $ | 19,141,142 | $ | 17,609,589 | $ | 14,571,522 | $ | 18,335,865 | $ | 18,385,069 | |||||||||||||||
† The operating expenses of the Portfolio reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows: | |||||||||||||||||||||||||||
Ratios (As a percentage of average daily net assets): | |||||||||||||||||||||||||||
Expenses | 0.45 | %(1) | 0.45 | % | |||||||||||||||||||||||
Expenses after custodian fee reduction | 0.45 | %(1) | 0.45 | % | |||||||||||||||||||||||
Net investment income | 1.29 | %(1) | 1.18 | % |
(1) Annualized.
(2) Total return is required to be disclosed for fiscal years beginning after December 15, 2000. Total return is not computed on an annualized basis.
See notes to financial statements
14
Tax-Managed Growth Portfolio as of June 30, 2005
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
Tax-Managed Growth Portfolio (the Portfolio) is registered under the Investment Company Act of 1940, as amended, 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 December 1, 1995, seeks to provide long-term, after-tax returns through investing in a diversified portfolio of equity securities. The Declaration of Trust permits the Trustees to issue interests in the Portfolio. The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America.
A Investment Valuations - Securities listed on a U.S. securities exchange generally are valued at the last sale price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and asked prices therefore on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ National Market System generally are valued at the official NASDAQ closing price. Unlisted or listed securities for which closing sales prices or closing quotations are not available are valued at the mean between the latest available bid and asked prices or, in the case of preferred equity securities that are not listed or traded in the over-the-counter market, by an independent pricing service. Exchange-traded options are valued at the last sale price for the day of valuation as quoted on the principal exchange or board of trade on which the options are traded or, in the absence of sales on such date, at the mean between the latest bid and asked prices therefore. Futures positions on securities and currencies generally are valued at closing settlement prices. Short-term debt securities with a remaining maturity of 60 days or less are valued at amortized cost. If short-term debt securities were acquired with a remaining maturity of more than 60 days, their amortized cost value will be based on their value on the sixty-first day prior to maturity. 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 furnishe d by a pricing service. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rate quotations supplied by an independent quotation service. The daily valuation of exchange-traded foreign securities generally is determined as of the close of trading on the principal exchange on which such securities trade. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to more accurately reflect their fair value as of the close of regular trading on the New York Stock Exchange. When valuing foreign equity securities that meet certain criteria, the Trustees have approved the use of a fair value service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities. Investments held by the Portfolio 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 of the Portfolio considering relevant factors, data and information including the market value of freely tradable securities of the same class in the principal market on which such securities are normally traded.
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 on its share of such taxable 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 (unde r 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.
C Futures Contracts - Upon the entering of a financial futures contract, the Portfolio is required to deposit either in cash or securities an amount (initial margin) 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 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 des igned to hedge against anticipated future changes in the price of current or anticipated portfolio positions. Should prices move unexpectedly, the Portfolio may not achieve the anticipated benefits of the financial futures contracts and may realize a loss.
D Put Options - Upon the purchase of a put option 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
15
Tax-Managed Growth Portfolio as of June 30, 2005
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
a loss in the amount of the cost of the option. When the Portfolio enters into a closing sale transaction, the Portfolio will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the cost of the option. When the Portfolio exercises a put option, settlement is made in cash. The risk associated with purchasing options is limited to the premium originally paid.
E Securities Sold Short - The Portfolio may sell a security short if it owns at least an equal amount of the security sold short or another security exchangeable for an equal amount of the security sold short in anticipation of a decline in the market price of the securities or in order to hedge portfolio positions. The Portfolio will generally borrow the security sold in order to make delivery to the buyer. Upon executing the transaction, the Portfolio records the proceeds as deposits with brokers in the Statement of Assets and Liabilities and establishes an offset ting payable for securities sold short for the securities due on settlement. The proceeds are retained by the broker as collateral for the short position. The liability is marked-to-market and the Portfolio is required to pay the lending broker any dividend or interest income earned while the short position is open. A gain or loss is recorded when the security is delivered to the broker. The Portfolio may recognize a loss on the transaction if the market value of the securities sold increases before the securities are delivered.
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 exchange rates are recorded for financial statement purposes as net real ized gains and losses on investments. That portion of unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
G Indemnifications - Under the Portfolio's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Portfolio. Interestholders in the Portfolio are jointly and severally liable for the liabilities and obligations of the Portfolio in the event that the Portfolio fails to satisfy such liabilities and obligations; provided, however, that, to the extent assets are available in the Portfolio, the Portfolio may, under certain circumstances, indemnify interestholders from and against any claim or liability to which such holder may become subject by reason of being or having been an interestholder in the Portfolio. Additionally, in the normal course of business, the Portfolio enters into agreements with service providers that may contain indemnification clauses. The Portfolio's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet occurred.
H 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.
I 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 credit balances used to reduce the Portfolio's custodian fees are reported as a reduction of expenses on the Statement of Operations. For the six months ended June 30, 2005, there were $231 in credit balances used to reduce the Portfolio's custodian fee.
J Use of Estimates - The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America 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 income and expense during the reporting period. Actual results could differ from those estimates.
K Interim Financial Statements - The interim financial statements relating to June 30, 2005 and for the six months then ended have not been audited by an Independent Registered Public Accounting Firm, but in the opinion of the Portfolio's management 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), as compensation for management and investment advisory services rendered to the Portfolio. Under the advisory agreement, BMR receives a
16
Tax-Managed Growth Portfolio as of June 30, 2005
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
monthly advisory fee of 5/96 of 1% (0.625% 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. Certain of the advisory fee rate reductions are pursuant to an agreement between the Portfolio's Board of Trustees and BMR. Those reductions may not be changed without Trustee and interestholder approval. For the six months ended June 30, 2005, the advisory fee was 0.44% (annualized) of the Portfolio's average daily net assets. BMR has also agreed to reduce the investment adviser fee by an amount equal to that portion of commissions paid to broker dealers in execution of Portfolio security transactions that is consideration for third-party research services. For the six months ended June 30, 2005, BMR waived $88,889 of its advisory fee. Except for Trustees of the Portfolio who are not members of E VM's or BMR's organization, officers and Trustees receive remuneration for their services to the Portfolio out of such investment adviser fee. Trustees of the Portfolio that are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees' Deferred Compensation Plan. For the six months ended June 30, 2005, no significant amounts have been deferred.
Certain officers and Trustees of the Portfolio are officers of the above organizations.
3 Investment Transactions
For the six months ended June 30, 2005, purchases and sales of investments, other than short-term obligations, aggregated $22,688,870 and $415,840,100, respectively. In addition, investments having an aggregate market value of $565,731,197 at dates of withdrawal were distributed in payment for capital withdrawals. During the six months ended June 30, 2005, investors contributed securities with a value of $468,511,867.
4 Federal Income Tax Basis of Unrealized Appreciation (Depreciation)
The cost and unrealized appreciation (depreciation) in value of the investments owned at June 30, 2005 as computed on a federal income tax basis, were as follows:
Aggregate cost | $ | 4,486,007,609 | |||||
Gross unrealized appreciation | $ | 13,797,696,167 | |||||
Gross unrealized depreciation | (1,780,983 | ) | |||||
Net unrealized appreciation | $ | 13,795,915,184 |
Unrealized appreciation on currency is $17,884.
5 Financial Instruments
The Portfolio may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include written options, forward foreign currency exchange contracts and financial futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the investment the Portfolio has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. The Portfolio did not have any open obligations under these financial instruments at June 30, 2005.
6 Line of Credit
The Portfolio participates with other portfolios and funds managed by BMR and EVM and its affiliates in a $150 million unsecured line of credit agreement with a group of banks. 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 participating 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 line of credit is allocated among the participating portfolios and funds at the end of each quarter. The Portfolio did not have any significant borrowings or allocated fees during the six months ended June 30, 2005.
17
Tax-Managed Growth Portfolio as of June 30, 2005
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
7 Restricted Securities
At June 30, 2005, the Portfolio owned the following securities (representing 0.04% of net assets) which were restricted as to public resale and not registered under the Securities Act of 1933. The securities are eligible for resale after December 15, 2005, except for the 17,093 shares of Caterpillar, Inc. and the 60,000 shares of Sysco Corp. which are eligible for resale after February 17, 2006 and May 19, 2006, respectively. The securities are valued at fair value using methods determined in good faith by or at the direction of the Trustees.
Common Stocks | Date of Acquisition | Shares | Cost | Fair Value | |||||||||||||||
Broadcom Corp. - Class A | 12/15/04 | 35,000 | $ | 1,121,815 | $ | 1,241,918 | |||||||||||||
Caterpillar, Inc. | 2/17/05 | 17,093 | 1,580,520 | 1,628,265 | |||||||||||||||
Progressive Corp. | 12/15/04 | 10,900 | 943,939 | 1,076,221 | |||||||||||||||
Sysco Corp. | 12/15/04 | 30,000 | 1,115,824 | 1,084,886 | |||||||||||||||
Sysco Corp. | 5/19/05 | 60,000 | 2,220,777 | 2,169,410 | |||||||||||||||
$ | 6,982,875 | $ | 7,200,700 |
8 Interestholder Meeting
The Portfolio held a Special Meeting of Interestholders on April 29, 2005 to elect Trustees. The results of the vote were as follows:
Interest in the Portfolio | |||||||||||
Nominee for Trustee | Affirmative | Withhold | |||||||||
Benjamin C. Esty | 99 | % | 1 | % | |||||||
James B. Hawkes | 99 | % | 1 | % | |||||||
Samuel L. Hayes, III | 99 | % | 1 | % | |||||||
William H. Park | 99 | % | 1 | % | |||||||
Ronald A. Pearlman | 99 | % | 1 | % | |||||||
Norton H. Reamer | 99 | % | 1 | % | |||||||
Lynn A. Stout | 99 | % | 1 | % | |||||||
Ralph F. Verni | 99 | % | 1 | % |
Results are rounded to the nearest whole number.
18
Eaton Vance Tax-Managed Growth Fund 1.0
BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
The investment advisory agreement between Tax-Managed Growth Portfolio (the "Portfolio") and its investment adviser, Boston Management and Research, provides that the advisory agreement will continue in effect from year to year so long as its continuance is approved at least annually (i) by a vote of a majority of the noninterested Trustees of the Portfolio cast in person at a meeting called for the purpose of voting on such approval and (ii) by the Trustees of the Portfolio or by vote of a majority of the outstanding interests of the Portfolio.
In considering the annual approval of the investment advisory agreement between the Portfolio and the investment adviser, the Special Committee of the Board of Trustees considered information that had been provided throughout the year at regular Board meetings, as well as information furnished to the Special Committee for a series of meetings held in February and March in preparation for a Board meeting held on March 21, 2005 to specifically consider the renewal of the investment advisory agreement. Such information included, among other things, the following:
• An independent report comparing Portfolio advisory fees with those of comparable funds;
• An independent report comparing the Eaton Vance Tax-Managed Growth Fund 1.0's (the "Fund") expense ratio to those of comparable funds;
• Information regarding Fund investment performance in comparison to a relevant peer group of funds and appropriate indices;
• The economic outlook and the general investment outlook in relevant investment markets;
• Eaton Vance Management's ("Eaton Vance") results and financial condition and the overall organization of the investment adviser;
• The procedures and processes used to determine the fair value of Fund assets and actions taken to monitor and test the effectiveness of such procedures and processes;
• The allocation of brokerage and the benefits received by the investment adviser as a result of brokerage allocation;
• Eaton Vance's management of the relationship with the custodian, subcustodians and fund accountants;
• The resources devoted to compliance efforts undertaken by Eaton Vance on behalf of the funds it manages and the record of compliance with the investment policies and restrictions and with policies on personal securities transactions;
• The quality, nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance and its affiliates; and
• The terms of the advisory agreement and the reasonableness and appropriateness of the particular fee paid by the Portfolio for the services described therein.
In evaluating the investment advisory agreement between Eaton Vance and the Portfolio, the Special Committee also considered information relating to the education, experience and number of investment professionals and other Eaton Vance personnel whose responsibilities include portfolio management. The Special Committee also considered the investment adviser's experience in managing equity funds with an objective of after-tax returns. The Special Committee also took into account the time and attention to be devoted by senior management to the Portfolio and the other funds in the complex. The Special Committee also took into account the time and attention to be devoted by senior management to the Portfolio and the other funds in the complex. The Special Committee evaluated the level of skill and expertise required to
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Eaton Vance Tax-Managed Growth Fund 1.0
BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT CONT'D
manage the Portfolio and concluded that the human resources available at the investment adviser were appropriate to fulfill effectively its duties on behalf of the Portfolio.
In its review of comparative information with respect to Fund investment performance, the Special Committee concluded that the Fund has performed within a range that the Special Committee deemed competitive. With respect to its review of investment advisory fees, the Special Committee concluded that the fees paid by the Portfolio are within the range of those paid by comparable funds within the mutual fund industry. In reviewing the information regarding the expense ratio of the Fund, the Special Committee concluded that the Fund's expense ratio is within a range that is competitive with comparable funds.
In addition to the factors mentioned above, the Special Committee reviewed the profit levels of the investment adviser and its affiliates in providing investment management and administration services for the Fund and Portfolio and for all Eaton Vance funds as a group. The Special Committee also considered the other benefits realized by Eaton Vance and its affiliates in connection with the operation of the Portfolio, as well as Eaton Vance's implementation of a soft dollar reimbursement program. Pursuant to the soft dollar reimbursement program, the Portfolio may receive reimbursement payments in respect of third party research services obtained by Eaton Vance as a result of soft dollar credits generated through trading on behalf of the Portfolio. In addition, the Special Committee considered the fiduciary duty assumed by the investment adviser in connection with the services rendered to the Po rtfolio and the business reputation of the investment adviser and its financial resources. The Trustees concluded that, in light of the services rendered, the profits realized by the investment adviser are not unreasonable. The Special Committee also considered the extent to which the investment adviser appears to be realizing benefits from economies of scale in managing the Portfolio, and concluded that the fee breakpoints which are in place will allow for an equitable sharing of such benefits, when realized, with the Portfolio and the shareholders of the Fund.
The Special Committee did not consider any single factor as controlling in determining whether or not to renew the investment advisory agreement. Nor are the items described herein all the matters considered by the Special Committee. In assessing the information provided by Eaton Vance and its affiliates, the Special Committee also took into consideration the benefits to shareholders of investing in a fund that is a part of a large family of funds which provides a large variety of shareholder services.
Based on its consideration of the foregoing factors and conclusions, and such other factors and conclusions as it deemed relevant, and assisted by independent counsel, the Special Committee concluded that the renewal of the investment advisory agreement, including the fee structure, is in the interests of shareholders.
20
Eaton Vance Tax-Managed Growth Fund 1.0
INVESTMENT MANAGEMENT
Eaton Vance Tax-Managed Growth Fund 1.0
Officers Duncan W. Richardson President Thomas E. Faust Jr. Vice President Michelle A. Green Treasurer Alan R. Dynner Secretary Paul M. O'Neil Chief Compliance Officer | Trustees Samuel L. Hayes, III Chairman Benjamin C. Esty James B. Hawkes William H. Park Ronald A. Pearlman Norton H. Reamer Lynn A. Stout Ralph F. Verni | ||||||
Tax-Managed Growth Portfolio
Officers Duncan W. Richardson President and Portfolio Manager Thomas E. Faust Jr. Vice President Michelle A. Green Treasurer Alan R. Dynner Secretary Paul M. O'Neil Chief Compliance Officer | Trustees Samuel L. Hayes, III Chairman Benjamin C. Esty James B. Hawkes William H. Park Ronald A. Pearlman Norton H. Reamer Lynn A. Stout Ralph F. Verni | ||||||
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Item 2. Code of Ethics
The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122.
Item 3. Audit Committee Financial Expert
The registrant’s Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public
accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (“UAM”) (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds).
Item 4. Principal Accountant Fees and Services
Not required in this filing
Item 5. Audit Committee of Listed registrants
Not required in this filing.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not required in this filing.
Item 8. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not required in this filing.
Item 9. Submission of Matters to a Vote of Security Holders.
Effective February 7, 2005, the Governance Committee of the Board of Trustees revised the procedures by which a Fund’s shareholders may recommend nominees to the registrant’s Board of Trustees to add the following (highlighted):
The Governance Committee shall, when identifying candidates for the position of Independent Trustee, consider any such candidate recommended by a shareholder of a Fund if such recommendation contains
(i) sufficient background information concerning the candidate, including evidence the candidate is willing to serve as an Independent Trustee if selected for the position; and (ii) is received in a sufficiently timely manner (and in any event no later than the date specified for receipt of shareholder proposals in any applicable proxy statement with respect to a Fund). Shareholders shall be directed to address any such recommendations in writing to the attention of the Governance Committee, c/o the Secretary of the Fund. The Secretary shall retain copies of any shareholder recommendations which meet the foregoing requirements for a period of not more than 12 months following receipt. The Secretary shall have no obligation to acknowledge receipt of any shareholder recommendations
Item 10. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 11. Exhibits
(a)(1) |
| Registrant’s Code of Ethics – Not applicable (please see Item 2). |
(a)(2)(i) |
| Treasurer’s Section 302 certification. |
(a)(2)(ii) |
| President’s Section 302 certification. |
(b) |
| Combined Section 906 certification. |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Tax-Managed Growth Portfolio
By: | /s/ Duncan W. Richardson |
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| Duncan W. Richardson | ||
| President | ||
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Date: | August 22, 2005 |
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Michelle A. Green |
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| Michelle A. Green | ||
| Treasurer | ||
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Date: | August 22, 2005 |
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By: | /s/ Duncan W. Richardson |
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| Duncan W. Richardson | ||
| President | ||
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Date: | August 22, 2005 | ||