<Page>
-----------------------------
OMB APPROVAL
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OMB Number: 3235-0570
Expires: November 30, 2005
Estimated average burden
hours per response....... 5.0
-----------------------------
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 801-10067
---------------------------------------------
Eaton Vance Variable Trust
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
- -------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 482-8260
----------------------------
Date of fiscal year end: December 31, 2003
--------------------------
Date of reporting period: June 30, 2003
-------------------------
Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its
regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street,
NW, Washington, DC 20549-0609. The OMB has reviewed this collection of
information under the clearance requirements of 44 U.S.C. Section 3507.
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
[EV LOGO]
[PHOTO OF GRAPHIC IMAGE]
SEMIANNUAL REPORT JUNE 30, 2003
[GRAPHIC IMAGE]
EATON VANCE
VT
WORLDWIDE
HEALTH
SCIENCES
FUND
[GRAPHIC IMAGE]
<Page>
IMPORTANT NOTICE
REGARDING DELIVERY OF
SHAREHOLDER DOCUMENTS
The Securities and Exchange Commission (SEC) permits mutual funds to deliver
only one copy of shareholder documents, including prospectuses, proxy statements
and shareholder reports, to fund investors with multiple accounts at the same
residential or post office box address. This practice is often called
"householding" and it helps eliminate duplicate mailings to shareholders.
EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR
DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL
ADVISER, OTHERWISE.
If you would prefer that your Eaton Vance documents not be householded, please
contact Eaton Vance at 1-800-262-1122, or contact your financial adviser.
Your instructions that householding not apply to delivery of your Eaton Vance
documents will be effective within 30 days of receipt by Eaton Vance or your
financial adviser.
From time to time, mutual funds are required to vote proxies related to the
securities held by the funds. The Eaton Vance Funds or their underlying
Portfolios vote proxies according to a set of policies and procedures approved
by the Funds' and Portfolios' Boards. You may obtain a description of these
policies and procedures without charge, upon request, by calling 1-800-262-1122.
This description is also available on the Securities and Exchange Commission's
website at http://www.sec.gov.
<Page>
ADMINISTRATOR OF EATON VANCE VT WORLDWIDE HEALTH SCIENCES FUND
EATON VANCE MANAGEMENT
The Eaton Vance Building
255 State Street
Boston, MA 02109
ADVISER OF EATON VANCE VT WORLDWIDE HEALTH SCIENCES FUND
ORBIMED ADVISORS LLC
767 3rd Avenue
New York, NY 10017
PRINCIPAL UNDERWRITER
EATON VANCE DISTRIBUTORS, INC.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
Boston, MA 02116
EATON VANCE FUNDS
EATON VANCE MANAGEMENT
BOSTONMANAGEMENT AND RESEARCH
EATON VANCE DISTRIBUTORS, INC.
PRIVACY NOTICE
The Eaton Vance organization is committed to ensuring your financial privacy.
This notice is being sent to comply with privacy regulations of the Securities
and Exchange Commission. Each of the above financial institutions has in effect
the following policy with respect to nonpublic personal information about its
customers:
- - Only such information received from you, through application forms or
otherwise, and information about your Eaton Vance fund transactions will be
collected.
- - None of such information about you (or former customers) will be disclosed to
anyone, except as permitted by law (which includes disclosure to employees
necessary to service your account).
- - Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the confidentiality of
such information.
For more information about Eaton Vance's privacy policies,
call: 1-800-262-1122
EATON VANCE VT WORLDWIDE HEALTH SCIENCES FUND
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its sales charges and
expenses. Please read the prospectus carefully before you invest or send money.
VTHSSRC
<Page>
EATON VANCE VT WORLDWIDE HEALTH SCIENCES FUND AS OF JUNE 30, 2003
INVESTMENT UPDATE
[PHOTO OF SAMUEL D. ISALY]
Samuel D. Isaly
Portfolio Manger
Investment Environment
- - Drug stocks and biotechnology stocks mounted a strong recovery in the six
months ended June 30, 2003. The group received a boost from an improvement in
earnings, reports of progress in late-stage clinical trials, a host of new FDA
product approvals and the anticipation of some major product launches in 2003.
However, the ongoing debate and legislative initiatives over prescription drug
coverage remained a source of uncertainty for the drug companies.
- - Merger activity has remained a factor in the pharmaceutical and biotech
sectors. Patent expiration is a continuing challenge, with around 150 drugs
with annual sales of approximately $50 billion set to expire within five
years. The loss of patents and the need to generate stronger development
pipelines have helped fuel industry consolidation, thereby combining research
capabilities and resulting in cost efficiencies.
- - Biotechnology has become an increasing focus for venture capital (VC), with
22% of VC investment in 2002 directed at biotech and life sciences companies.
The ongoing threat of biological attacks, as well as the SARS episode and
other global health crises, have generated an increased sense of urgency and
increased the amount of public and private funding for detection and
prevention of these bio-threats.
The Fund
The Past Six Months
- - During the six months ended June 30, 2003, the Fund's shares had a total
return of 20.64%.(1) This return was the result of an increase in net asset
value to $9.82 on June 30, 2003, from $8.14 on December 31, 2002.
- - The Fund outperformed its peer group, the Lipper Health/Biotechnology Fund
Classification, which had an average return of 19.60% for the six months ended
June 30, 2003.(2) The Fund's performance also outpaced that of its benchmark
indices, the S&P 500 Index, which had a return of 11.75% for the same period,
and the Morgan Stanley Capital International Europe, Australasia and Far East
Index, which had a return of 9.47% for the period.(2)
Management Discussion
- - The Fund's largest sector weighting at June 30 was
in major-capitalization North American companies. The Fund's largest holdings
have continued to generate positive revenue growth. In addition, in a year
that has featured a record number of FDA approvals, these companies have
received a series of key product approvals, including some very promising
treatment for a variety of cancers.
- - Among its European major-capitalization holdings, the Fund had significant
investments in some of Europe's largest biotechnology companies. These
companies have posted strong earnings growth on the strength of record sales
for drugs in areas such as multiple sclerosis, reproductive health therapies
and growth hormones. In addition, these companies could benefit from marketing
agreements with some of the largest U.S. drug companies.
- - The Fund also maintained investments in smaller, specialty-capitalization
companies with a more narrow research focus. A large Swiss-based company has
pioneered innovative science to produce a treatment for pulmonary arterial
hypertension. A Japanese holding has used recombinant technology to develop a
monoclonal antibody product that shows promise in treating rheumatoid
arthritis.
THE VIEWS EXPRESSED THROUGHOUT THIS REPORT ARE THOSE OF THE PORTFOLIO MANAGER
AND ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR
OTHER CONDITIONS, AND ORBIMED ADVISORS LLC DISCLAIMS ANY RESPONSIBILITY TO
UPDATE SUCH VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND,
BECAUSE INVESTMENT DECISIONS FOR A FUND ARE BASED ON MANY FACTORS, MAY NOT BE
RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY FUND.
FUND INFORMATION AS OF JUNE 30, 2003
<Table>
<Caption>
Performance(1)
- -----------------------------------------------
Average Annual Total Returns at Net Asset Value
One Year 14.05%
Life of Fund+ -0.84%
</Table>
+Inception Date - 5/2/01
(1) These returns do not include insurance-related charges. Returns are
historical and are calculated by determining the percentage change in
net asset value with all distributions reinvested. There is no sales
charge.
(2) It is not possible to invest in a Lipper Classification or an Index.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT
TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED.
2
<Page>
EATON VANCE VT WORLDWIDE HEALTH SCIENCES FUND AS OF JUNE 30, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED)
COMMON STOCKS -- 93.60%
<Table>
<Caption>
PERCENTAGE OF
SECURITY SHARES VALUE NET ASSETS
- -------------------------------------------------------------------------------------
Major Capitalization - Europe -- 15.18%
- -------------------------------------------------------------------------------------
Altana AG 11,500 $ 726,803 4.57%
Novartis AG 17,400 689,848 4.33%
Sanofi-Synthelabo SA 6,000 352,007 2.21%
Serono SA, Class B 1,100 647,657 4.07%
- -------------------------------------------------------------------------------------
$ 2,416,315 15.18%
- -------------------------------------------------------------------------------------
Major Capitalization - Far East -- 4.33%
- -------------------------------------------------------------------------------------
Fujisawa Pharmaceutical Co., Ltd. 19,000 $ 356,666 2.24%
Takeda Chemical Industries, Ltd. 9,000 332,638 2.09%
- -------------------------------------------------------------------------------------
$ 689,304 4.33%
- -------------------------------------------------------------------------------------
Major Capitalization - North America -- 48.30%
- -------------------------------------------------------------------------------------
Amgen, Inc.(1) 14,992 $ 996,069 6.26%
Genentech, Inc.(1) 15,900 1,146,708 7.20%
Genzyme Corp.(1) 20,000 836,000 5.25%
Gilead Sciences, Inc.(1) 15,700 872,606 5.48%
IDEC Pharmaceuticals Corp.(1) 17,600 598,400 3.76%
Lilly (Eli) & Co. 9,700 669,009 4.20%
MedImmune, Inc.(1) 11,000 400,070 2.51%
Pfizer, Inc. 23,420 799,793 5.03%
Schering-Plough Corp. 32,000 595,200 3.74%
Wyeth 17,000 774,350 4.87%
- -------------------------------------------------------------------------------------
$ 7,688,205 48.30%
- -------------------------------------------------------------------------------------
Specialty Capitalization - Europe -- 4.19%
- -------------------------------------------------------------------------------------
Actelion Ltd.(1) 10,000 $ 667,184 4.19%
- -------------------------------------------------------------------------------------
$ 667,184 4.19%
- -------------------------------------------------------------------------------------
Specialty Capitalization - Far East -- 5.60%
- -------------------------------------------------------------------------------------
Chugai Pharmaceuticals Co., Ltd. 36,000 $ 409,678 2.57%
Kyorin Pharmaceutical Co., Ltd. 20,000 273,986 1.72%
Tanabe Seiyaku Co., Ltd. 31,000 208,460 1.31%
- -------------------------------------------------------------------------------------
$ 892,124 5.60%
- -------------------------------------------------------------------------------------
Specialty Capitalization - North America -- 16.00%
- -------------------------------------------------------------------------------------
Affymetrix, Inc.(1) 13,500 $ 266,085 1.67%
Atrix Laboratories, Inc.(1) 6,800 149,532 0.94%
Caliper Technologies Corp.(1) 40,000 182,000 1.14%
<Caption>
PERCENTAGE OF
SECURITY SHARES VALUE NET ASSETS
- -------------------------------------------------------------------------------------
Specialty Capitalization - North America (continued)
- -------------------------------------------------------------------------------------
Enzon Pharmaceuticals, Inc.(1) 22,000 $ 275,440 1.73%
Gen-Probe, Inc.(1) 10,000 408,700 2.57%
Human Genome Sciences, Inc.(1) 25,600 325,632 2.05%
ICOS Corp.(1) 4,700 172,725 1.09%
Immunomedics, Inc.(1) 25,000 157,750 0.99%
Ligand Pharmaceuticals, Inc.(1) 18,000 244,620 1.54%
Molecular Devices Corp.(1) 9,700 154,327 0.97%
Savient Pharmaceuticals, Inc.(1) 45,000 208,800 1.31%
- -------------------------------------------------------------------------------------
$ 2,545,611 16.00%
- -------------------------------------------------------------------------------------
Total Common Stocks
(identified cost $14,520,564) $14,898,743
- -------------------------------------------------------------------------------------
</Table>
SHORT-TERM INVESTMENTS -- 6.49%
<Table>
<Caption>
PRINCIPAL
AMOUNT PERCENTAGE OF
SECURITY (000'S OMITTED) VALUE NET ASSETS
- -------------------------------------------------------------------------------------
Student Loan Marketing Association
Discount Note,
0.95%, 7/1/03 $ 1,033 $ 1,033,000 6.49%
- -------------------------------------------------------------------------------------
Total Short-Term Investments
(at amortized cost, $1,033,000) $ 1,033,000
- -------------------------------------------------------------------------------------
Total Investments
(identified cost $15,553,564) $15,931,743 100.09%
- -------------------------------------------------------------------------------------
Other Assets, Less Liabilities $ (14,844) (0.09%)
- -------------------------------------------------------------------------------------
Net Assets $15,916,899 100.00%
- -------------------------------------------------------------------------------------
</Table>
(1) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS
3
<Page>
EATON VANCE VT WORLDWIDE HEALTH SCIENCES FUND AS OF JUNE 30, 2003
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
AS OF JUNE 30, 2003
Assets
- -----------------------------------------------------
Investments, at value (identified cost,
$15,553,564) $15,931,743
Foreign currency, at value (cost $6,137) 6,135
Receivable for Fund shares sold 28,174
Interest receivable 84
Tax reclaim receivable 8,745
- -----------------------------------------------------
TOTAL ASSETS $15,974,881
- -----------------------------------------------------
Liabilities
- -----------------------------------------------------
Payable for investments purchased $ 12,964
Payable for Fund shares redeemed 1,935
Payable to affiliate for Trustees' fees 31
Due to bank 28,408
Accrued expenses 14,644
- -----------------------------------------------------
TOTAL LIABILITIES $ 57,982
- -----------------------------------------------------
NET ASSETS FOR 1,620,561 SHARES OF
BENEFICIAL INTEREST OUTSTANDING $15,916,899
- -----------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------
Paid-in capital $17,017,177
Accumulated net realized loss (computed
on the basis of identified cost) (1,390,401)
Accumulated net investment loss (88,720)
Net unrealized appreciation (computed on
the basis of identified cost) 378,843
- -----------------------------------------------------
TOTAL $15,916,899
- -----------------------------------------------------
Net Asset Value, Offering Price and
Redemption Price Per Share
- -----------------------------------------------------
($15,916,899 DIVIDED BY 1,620,561
SHARES OF BENEFICIAL INTEREST
OUTSTANDING) $ 9.82
- -----------------------------------------------------
</Table>
STATEMENT OF OPERATIONS
<Table>
<Caption>
FOR THE SIX MONTHS ENDED
JUNE 30, 2003
Investment Income
- ----------------------------------------------------
Dividends (net of foreign taxes, $6,309) $ 60,267
Interest 1,814
- ----------------------------------------------------
TOTAL INVESTMENT INCOME $ 62,081
- ----------------------------------------------------
Expenses
- ----------------------------------------------------
Investment adviser fee $ 78,596
Administration fee 16,370
Trustees' fees and expenses 124
Service fees 16,370
Legal and accounting services 16,002
Custodian fee 15,426
Transfer and dividend disbursing agent
fees 4,773
Printing and postage 46
Miscellaneous 3,094
- ----------------------------------------------------
TOTAL EXPENSES $ 150,801
- ----------------------------------------------------
NET INVESTMENT LOSS $ (88,720)
- ----------------------------------------------------
Realized and Unrealized Gain (Loss)
- ----------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (928,400)
Foreign currency transactions (6,052)
- ----------------------------------------------------
NET REALIZED LOSS $ (934,452)
- ----------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $3,546,420
Foreign currency 91
- ----------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $3,546,511
- ----------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $2,612,059
- ----------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $2,523,339
- ----------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
4
<Page>
EATON VANCE VT WORLDWIDE HEALTH SCIENCES FUND AS OF JUNE 30, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
SIX MONTHS ENDED
INCREASE (DECREASE) JUNE 30, 2003 YEAR ENDED
IN NET ASSETS (UNAUDITED) DECEMBER 31, 2002
- -----------------------------------------------------------------------------
From operations --
Net investment loss $ (88,720) $ (213,917)
Net realized loss (934,452) (463,265)
Net change in unrealized
appreciation (depreciation) 3,546,511 (3,694,846)
- -----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 2,523,339 $ (4,372,028)
- -----------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares $ 2,351,170 $ 13,087,204
Cost of shares redeemed (2,043,579) (3,502,950)
- -----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS $ 307,591 $ 9,584,254
- -----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 2,830,930 $ 5,212,226
- -----------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------
At beginning of period $ 13,085,969 $ 7,873,743
- -----------------------------------------------------------------------------
AT END OF PERIOD $ 15,916,899 $ 13,085,969
- -----------------------------------------------------------------------------
Accumulated net investment
loss included in net assets
- -----------------------------------------------------------------------------
AT END OF PERIOD $ (88,720) $ --
- -----------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
5
<Page>
EATON VANCE VT WORLDWIDE HEALTH SCIENCES FUND AS OF JUNE 30, 2003
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2003 ---------------------------------
(UNAUDITED)(1) 2002(1) 2001(1)(2)
- ---------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 8.140 $11.590 $10.000
- ---------------------------------------------------------------------------------------
Income (loss) from operations
- ---------------------------------------------------------------------------------------
Net investment loss $(0.058) $(0.150) $(0.213)
Net realized and unrealized
gain (loss) 1.738 (3.300) 1.803
- ---------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 1.680 $(3.450) $ 1.590
- ---------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.820 $ 8.140 $11.590
- ---------------------------------------------------------------------------------------
TOTAL RETURN(3) 20.64% (29.77)% 15.90%
- ---------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $15,917 $13,086 $ 7,874
Ratios (As a percentage of
average daily net assets):
Expenses 2.30%(4) 2.50% 3.80%(4)
Net investment loss (1.35)%(4) (1.70)% (2.90)%(4)
Portfolio Turnover 19% 0%(5) 0%(5)
- ---------------------------------------------------------------------------------------
</Table>
(1) Net investment loss was computed using average shares outstanding.
(2) For the period from the start of business, May 2, 2001, to December 31,
2001.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total
return is not computed on an annualized basis.
(4) Annualized.
(5) Portfolio turnover is less than 1%.
SEE NOTES TO FINANCIAL STATEMENTS
6
<Page>
EATON VANCE VT WORLDWIDE HEALTH SCIENCES FUND AS OF JUNE 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance VT Worldwide Health Sciences Fund (the Fund) is a diversified
series of Eaton Vance Variable Trust (the Trust). The Trust is registered
under the Investment Company Act of 1940 as an open-end management investment
company. The Fund seeks long-term capital growth by investing in a global and
diversified portfolio of securities of health sciences companies. The Fund is
made available only to separate accounts issued by participating insurance
companies. The following is a summary of the significant accounting policies
consistently followed by the Fund in 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 recognized stock exchange,
whether U.S. or foreign, are valued at the last reported sale price on that
exchange prior to the time when assets are valued or prior to the close of
trading on the New York Stock Exchange. In the event that there are no sales,
the mean between the latest bid and asked prices will be used. If a security
is traded on more than one exchange, the security is valued at the last sale
price on the exchange where the stock is primarily traded. Marketable
securities listed in the NASDAQ National Market system are valued at the
NASDAQ official closing price. For foreign investments, if trading or events
occurring in other markets after the close of the principal exchange in which
the securities are traded are expected to materially affect the value of the
investments, then those investments are valued, taking into consideration
these events, at their fair value following procedures approved by the
Trustees. Short-term obligations, maturing in sixty days or less, are valued
at amortized cost, which approximates value. Securities for which market
quotations are not readily available and other assets are valued on a
consistent basis at fair value as determined in good faith by or under the
supervision of the Fund's officers in a manner specifically authorized by the
Board of Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or accretion of discount. Dividend
income is recorded on the ex-dividend date for dividends received in cash
and/or securities. However, if the ex-dividend date has passed, certain
dividends from foreign securities are recorded as the Fund is informed of the
ex-dividend date. Withholding taxes on foreign dividends and capital gains
have been provided for in accordance with the Fund's understanding of the
applicable countries' tax rules and rates.
C Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to both variable life insurance products
(section 817(h)) and regulated investment companies and to distribute to
shareholders each year all of its taxable income, including any net realized
capital gains. Accordingly, no provision for federal income or excise tax is
necessary. At December 31, 2002, the Fund, for federal income tax purposes
had a capital loss carryover of $236,807 which will reduce the Fund's taxable
income arising from future net realized gains on investments, if any, to the
extent permitted by the Internal Revenue Code and thus will reduce the amount
of distributions to shareholders which would otherwise be necessary to
relieve the Fund of any liability for federal income tax. The capital loss
carryover expires on December 31, 2010. At December 31, 2002, net capital
losses of $175,254 attributed to security transactions incurred after
October 31, 2002, are treated as arising on the first day of the Fund's
taxable year ending December 31, 2003.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Fund. Pursuant to the custodian agreement, IBT receives a fee reduced
by credits which are determined based on the average daily cash balance the
Fund maintains with IBT. All significant credit balances used to reduce the
Fund's custodian fees are reported as a reduction of total expenses in the
Statement of Operations. For the six months ended June 30, 2003, $3 in credit
balances were used to reduce the Fund's custodian fee.
E Use of Estimates -- The preparation of 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 revenue and expense during the
reporting period. Actual results could differ from those estimates.
F Expenses -- The majority of expenses of the Trust are directly identifiable
to an individual fund. Expenses which are not readily identifiable to a
specific fund are allocated taking into consideration, among other things,
the nature and type of expense and the relative size of the funds.
G 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
7
<Page>
EATON VANCE VT WORLDWIDE HEALTH SCIENCES FUND AS OF JUNE 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
currency exchange rates prevailing on the respective dates of such
transactions. Realized gains or losses on investment transactions
attributable to changes in foreign currency exchange 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 results from
fluctuations in foreign currency exchange rates is not separately disclosed.
H Forward Foreign Currency Exchange Contracts -- The Fund 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 Fund will enter into
forward contracts for hedging purposes as well as nonhedging purposes. The
forward foreign currency exchange contracts are adjusted by the daily
exchange rate of the underlying currency and any gains and losses are
recorded for financial statement purposes as unrealized until such time as
the contracts have been closed.
I Other -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed based on the specific identification
of the securities sold.
J Interim Financial Statements -- The interim financial statements relating to
June 30, 2003 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders
- -------------------------------------------
It is the present policy of the Fund to make at least one distribution
annually (normally in December) of all or substantially all of its net
investment income and at least one distribution annually of all of its net
realized capital gains. Distributions are paid in the form of additional
shares of the Fund unless an election is made on behalf of a separate account
to receive some or all of the distribution in cash. Shareholders may reinvest
all distributions in shares of the Fund at the net asset value as of the
close of business on the ex-dividend date.
The Fund distinguishes between distributions on a tax basis and a financial
reporting basis. Accounting principles generally accepted in the United
States of America require that only distributions in excess of tax basis
earnings and profits be reported in the financial statements as a return of
capital. Permanent differences between book and tax accounting relating to
distributions are reclassified to paid-in capital. These differences relate
to net operating losses.
3 Shares of Beneficial Interest
- -------------------------------------------
The Trust has an underwriting agreement relating to the Fund with Eaton Vance
Distributors, Inc. (EVD). The underwriting agreement presently provides that
EVD, through the Fund's transfer agent, accepts orders for shares at net
asset value and no sales commission or load is charged. EVD may, at its
expense, provide promotional incentives to dealers that sell variable
insurance products. Transactions in Fund shares were as follows:
<Table>
<Caption>
SIX MONTHS ENDED
JUNE 30, 2003 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2002
--------------------------------------------------------------------------------
Sales 253,051 1,359,523
Redemptions (240,030) (431,632)
--------------------------------------------------------------------------------
NET INCREASE 13,021 927,891
--------------------------------------------------------------------------------
</Table>
4 Investment Advisory Fees, Administrator's Fees and Other Transactions with
Affiliates
- -------------------------------------------
Pursuant to the Advisory Agreement, OrbiMed Advisors, LLC (formerly OrbiMed
Advisors, Inc.) (OrbiMed) serves as the Investment Adviser of the Fund. Under
this agreement, OrbiMed receives a monthly fee at the annual rate of 1% of
the Fund's first $30 million in average net assets, 0.90% of the next $20
million in average net assets, 0.75% of the next $450 million in average net
assets, and 0.70% of the next $500 million in average net assets. The fee
rate declines for net assets of $1 billion and greater. In addition,
effective May 1, 2002, OrbiMed's fee is subject to an upward or downward
performance fee adjustment of up to 0.25% of the average daily net assets of
the Fund based upon the investment performance of the Fund compared to the
Standard & Poor's Index of 500 Common Stocks over specified periods. For the
six months ended June 30, 2003, the fee was equivalent to 1.19% (annualized)
of the Fund's average daily net assets and amounted to $78,596.
Under an Administration Agreement between the Fund and its Administrator,
Eaton Vance Management (EVM), EVM manages and administers the affairs of the
Fund. EVM earns a monthly fee at the annual rate of 0.25% of average daily
net assets. For the six months ended June 30, 2003, the administration fee
was 0.25% (annualized) of average net assets and amounted to $16,370.
8
<Page>
EATON VANCE VT WORLDWIDE HEALTH SCIENCES FUND AS OF JUNE 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
Except for Trustees of the Fund who are not members of the Adviser or EVM's
organization, officers and Trustees receive remuneration for their services
to the Fund out of such investment adviser and administration fees. Certain
officers and Trustees of the Fund are officers of the above organizations.
5 Service Fees
- -------------------------------------------
The Fund has adopted a service plan that allows the Fund to pay service fees
to insurance companies for providing personal and/or account services to
account holders of insurance product separate accounts, which is equal to
0.25% (annualized) of daily average net assets. Service fees for the six
months ended June 30, 2003 amounted to $16,370.
6 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 Fund,
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 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.
7 Purchases and Sales of Investments
- -------------------------------------------
Purchases and sales of investments, other than short-term obligations,
aggregated $2,468,244 and $2,587,855, respectively.
8 Line of Credit
- -------------------------------------------
The Fund participates with other portfolios and funds managed by EVM and its
affiliates in a $150 million unsecured line of credit agreement with a group
of banks. Borrowings will be made by the Fund 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 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 Fund did not have any significant
borrowings or allocated fees during the six months ended June 30, 2003.
9 Federal Income Tax Basis of Unrealized Appreciation (Depreciation)
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investment securities of the Fund at June 30, 2003, as computed on a federal
income tax basis, were as follows:
<Table>
AGGREGATE COST $15,553,564
-----------------------------------------------------
Gross unrealized appreciation $ 2,387,019
Gross unrealized depreciation (2,008,840)
-----------------------------------------------------
NET UNREALIZED APPRECIATION $ 378,179
-----------------------------------------------------
</Table>
The net unrealized appreciation on foreign currency was $664 for the six
months ended June 30, 2003.
9
<Page>
INVESTMENT MANAGEMENT
EATON VANCE VT WORLDWIDE HEALTH SCIENCES FUND
Officers
James B. Hawkes
President and Trustee
Thomas P. Huggins
Vice President
Samuel D. Isaly
Vice President
Martha G. Locke
Vice President
Scott H. Page
Vice President
Jacob Rees-Mogg
Vice President
Duncan W. Richardson
Vice President
Payson F. Swaffield
Vice President
Michael W. Weilheimer
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
Samuel L. Hayes, III
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
10
<Page>
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 (a fixed income
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 of Unicorn Capital (an investment and financial advisory services
company), Chairman of Hellman, Jordan Management Co., Inc. (an investment
management company) and Advisory Director of Berkshire Capital Corporation (an
investment banking firm). Previously, Mr. Reamer was 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 Filing.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not Required in Filing.
ITEM 8. [RESERVED]
ITEM 9. 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 significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS
(a) and (b) Exhibit is attached to Filing.
(c) Exhibit is attached to Filing.
<Page>
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.
Eaton Vance Variable Trust (On behalf of VT Worldwide Health Sciences Fund)
By: /S/ James B. Hawkes
-------------------
James B. Hawkes
President
Date: August 18, 2003
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/ James L. O'Connor
---------------------
James L. O'Connor
Treasurer
Date: August 18, 2003
By: /S/ James B. Hawkes
-------------------
James B. Hawkes
President
Date: August 18, 2003