-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, XGVD8AfzV3x2ZTmCUWtUxg88BaFBTSnH1eUin+uRcHQwPMirF25OoVKNMWyoguNq aVBmwLFWYm8sKZ1nTJXCog== 0000950156-95-000464.txt : 19950623 0000950156-95-000464.hdr.sgml : 19950623 ACCESSION NUMBER: 0000950156-95-000464 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950430 FILED AS OF DATE: 19950622 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAPITAL EXCHANGE FUND INC CENTRAL INDEX KEY: 0000017147 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 042385053 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-01339 FILM NUMBER: 95548467 BUSINESS ADDRESS: STREET 1: 24 FEDERAL ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174828260 MAIL ADDRESS: STREET 1: ONE BEACON ST CITY: BOSTON STATE: MA ZIP: 02108 N-30D 1 CAPITAL EXCHANGE FUND SA TO SHAREHOLDERS CAPITAL EXCHANGE FUND HAD A TOTAL RETURN OF 15.4 PERCENT DURING THE SIX MONTHS THAT ENDED APRIL 30, 1995. That return represented a rise in net asset value per share to $202.31 from $176.61, and the reinvestment of $1.35 in income dividends and $0.025 in capital gain distributions. By comparison, the S&P 500, an unmanaged index of common stocks, had a total return of 10.4 percent during the same period. IN GENERAL, THE STOCK MARKET CONTINUED TO PERFORM WELL DURING THIS SIX-MONTH PERIOD. Interest rates stopped their rapid ascent in November and fears of runaway inflation dissipated. The market's behavior was a positive response to the prospect of slow growth without significant inflation. Many companies cut costs and downsized several years ago to deal with the effects of the recession. They now are better prepared to deliver economies in an economic slowdown. The market also responded to changing economic prospects in another way: market leadership shifted from cyclical stocks to other sectors less exposed to a slowing economy. THE TECHNOLOGY SECTOR WAS THE MARKET'S TOP PERFORMER DURING THIS PERIOD. A heavy weighting in this sector helped account for the Fund's performance. However, past performance is no guarantee of future returns. Hewlett-Packard, the Portfolio's top holding, showed a 40 percent price increase during the six month period. Intel, the second-largest holding, was up 70 percent, while Texas Instruments, another of the Fund's technology holdings, was up 48 percent. DRUG COMPANY STOCKS ALSO WERE STRONG PERFORMERS DURING THE SIX-MONTH PERIOD. Johnson & Johnson, one of the Fund's larger holdings, was up nearly 20 percent. The Fund's two other drug stocks, SmithKline Beecham and Bristol-Myers Squibb, gained 21 and 14 percent, respectively. RETAIL STOCKS GENERALLY PERFORMED POORLY DURING THE SIX-MONTH PERIOD, THOUGH THE FUND'S TWO HOLDINGS IN THIS SECTOR, ALBERTSON'S AND WAL-MART, BOTH POSTED GAINS DURING THAT TIME. Financial stocks also turned in a mixed performance during the period, but the Fund's largest financial holding, American International Group, was up more than 15 percent. MOST ECONOMISTS BELIEVE THAT INTEREST RATES WILL PEAK IN THE FIRST HALF OF 1995 AND THAT ECONOMIC GROWTH RATES WILL DECLINE, THOUGH NOT TO RECESSIONARY LEVELS. If this "soft landing" is achieved, corporate profitability should be well-maintained and could support higher levels in the stock market for 1995 and beyond. NO MATTER HOW ECONOMIC CONDITIONS MAY CHANGE, WE REMAIN CONVINCED THAT OVER THE LONG TERM, INVESTING IN A REPRESENTATIVE PORTFOLIO OF HIGH-QUALITY COMMON STOCKS IS LIKELY TO DELIVER SOUND PERFORMANCE. That remains the strategy of Capital Exchange Fund, and we are confident the Fund will continue to participate in the economy's ongoing growth. Sincerely, /s/Landon T. Clay LANDON T. CLAY President June 5, 1995 - ------------------------------------------------------------------------------- THE FUND HAD A TOTAL RETURN OF 15.4 PERCENT DURING THE SIX MONTHS THAT ENDED APRIL 30, 1995. [Photograph of Landon T. Clay] - ------------------------------------------------------------------------------- "...WE REMAIN CONVINCED THAT OVER THE LONG TERM, INVESTING IN A REPRESENTATIVE PORTFOLIO OF HIGH-QUALITY COMMON STOCKS IS LIKELY TO DELIVER SOUND PERFORMANCE." - ------------------------------------------------------------------------------ CAPITAL EXCHANGE FUND, INC. APRIL 30, 1995 (UNAUDITED) INVESTMENT CHANGES -- SIX MONTHS ENDED APRIL 30, 1995 - ------------------------------------------------------------------------------ Shares Owned DECREASES* Oct 31 Apr 30 - ------------------------------------------------------------------------------ Albertson's, Inc. 180,328 156,048 - ------------------------------------------------------------------------------ Bristol-Myers Squibb Co. 32,590 29,000 - ------------------------------------------------------------------------------ Dexter Corporation 64,019 47,829 - ------------------------------------------------------------------------------ Johnson & Johnson 81,150 75,410 - ------------------------------------------------------------------------------ Lehman Brothers Holding Inc. 11,359 0 OTHER CHANGES Shares - ------------------------------------------------------------------------------ Amp Inc., in a 2 for 1 stock split less 3,350 shares paid in kind on redemptions. 38,780 - ------------------------------------------------------------------------------ Hewlett-Packard Co., in a 2 for 1 stock split less 300 shares paid in kind on redemptions. 42,690 - ------------------------------------------------------------------------------ *Includes investments paid-in kind on redemptions. - ------------------------------------------------------------------------------ CAPITAL EXCHANGE FUND, INC. PORTFOLIO OF INVESTMENTS APRIL 30, 1995 (UNAUDITED) - ------------------------------------------------------------------------------ COMMON STOCKS - 98.8% - ------------------------------------------------------------------------------ Name of Company Shares Value - ------------------------------------------------------------------------------ ADVERTISING - 2.4% Interpublic Group Cos. 66,000 $ 2,508,000 ------------ AEROSPACE - 2.1% Boeing Co. 39,450 $ 2,169,750 ------------ AIR TRANSPORTATION - 0.6% Flightsafety International, Inc. 12,000 $ 591,000 ------------ BUSINESS PRODUCTS AND SERVICES - 7.6% Lotus Development Corp.* 45,000 $ 1,417,500 Manpower Inc. 110,000 3,671,250 Reuters Holdings PLC, ADR 58,420 2,658,110 ------------ $ 7,746,860 ------------ CONSTRUCTION AND REAL ESTATE - 3.2% Dover Corp. 50,790 $ 3,301,350 ------------ CONSUMER PRODUCTS - 5.3% Anheuser-Busch Cos., Inc. 35,820 $ 2,082,037 Procter & Gamble Co. 48,000 3,354,000 ------------ $ 5,436,037 ------------ COSMETICS AND TOILETRIES - 4.4% International Flavors & Fragrances, Inc. 88,101 $ 4,526,189 ------------ DRUGS & MEDICAL - 13.5% Bristol-Myers Squibb Co. 29,000 $ 1,888,625 Johnson & Johnson 75,410 4,901,650 Merck & Co., Inc. 56,385 2,417,507 Pfizer Inc. 36,476 3,159,733 SmithKline Beecham PLC 37,520 1,458,590 ------------ $ 13,826,105 ------------ ELECTRONICS - 19.8% AMP Inc. 83,780 $ 3,581,595 Hewlett-Packard Co. 85,680 5,665,590 Intel Corp.* 55,124 5,643,319 Raytheon Co. 40,000 2,910,000 Texas Instruments Inc. 24,000 2,544,000 ------------ $ 20,344,504 ------------ FINANCIAL SERVICES - 3.8% American Express Co. 56,798 $ 1,973,731 Marsh & McLennan Cos., Inc. 24,000 1,881,000 ------------ $ 3,854,731 ------------ FOOD PROCESSING - 1.5% McCormick & Co., Inc., Nonvoting 68,400 $ 1,504,800 ------------ FOREST PRODUCTS - 3.2% Kimberly-Clark Corp. 57,310 $ 3,245,179 ------------ INSTRUMENTATION AND CONTROLS - 2.0% Dionex Corp.* 50,000 $ 2,075,000 ------------ INSURANCE - 3.5% American International Group Inc. 33,750 $ 3,602,813 ------------ MACHINERY AND EQUIPMENT - 5.6% Dexter Corp. 47,829 $ 1,094,088 Gould Pumps, Inc. 78,830 1,951,042 Tecumseh Products Co. Class B 13,320 666,000 Tecumseh Products Co. Class A 39,960 2,007,990 ------------ $ 5,719,120 ------------ PETROLEUM - 3.7% Atlantic Richfield Co. 6,880 $ 787,760 Exxon Corp. 43,776 3,047,904 ------------ $ 3,835,664 ------------ PETROLEUM SERVICES AND EQUIPMENT - 2.6% Schlumberger Ltd. 42,819 $ 2,692,245 ------------ PHOTOGRAPHIC PRODUCTS - 2.1% Eastman Kodak Co. 37,181 $ 2,137,908 ------------ PUBLISHING AND PRINTING - 3.6% Dun & Bradstreet Corp. 31,968 $ 1,666,332 Harcourt General, Inc. 50,000 2,043,750 ------------ $ 3,710,082 ------------ RETAIL - 8.3% Albertson's, Inc. 156,048 $ 4,935,018 Wal-Mart Stores, Inc. 148,700 3,531,625 ------------ $ 8,466,643 ------------ TOTAL COMMON STOCKS (IDENTIFIED COST, $16,227,612) $101,293,980 ------------ FACE AMOUNT (000 OMITTED) - ------------------------------------------------------------------------------ SHORT-TERM OBLIGATION - 1.0% - ------------------------------------------------------------------------------ Ford Motor Credit Corp., 5.95% due 5/04/95, at amortized cost $1,000 $ 999,416 ------------ TOTAL INVESTMENTS (IDENTIFIED COST, $17,227,088) - 99.8% $102,293,396 Other Assets, less Liabilities - 0.2% 250,596 ------------ NET ASSETS - 100% $102,543,992 ============ *Non-income producing security. See notes to financial statements FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES - ------------------------------------------------------------------------------ April 30, 1995 (unaudited) - ------------------------------------------------------------------------------ ASSETS: Investments, at value (Note 1A) (identified cost, $17,227,088) $102,293,396 Cash 131,015 Dividends receivable 131,627 ------------ Total assets $102,556,038 LIABILITIES: Payable for capital stock redeemed $ 562 Payable to affiliates -- Custodian fee 540 Directors' fees 1,837 Accrued expenses 9,107 ------ Total liabilities 12,046 ------------ NET ASSETS for 506,868 shares of capital stock outstanding $102,543,992 ============ SOURCES OF NET ASSETS: Accumulated net realized gain on investment transactions (computed on the basis of identified cost), less the excess of cost of capital stock redeemed over proceeds from sales of capital stock (including shares issued to shareholders electing to receive payment of distributions in capital stock) $ 25,781,738 Unrealized appreciation of investments (computed on the basis of identified cost) 85,066,308 Provision for federal tax on undistributed net realized long-term capital gain (8,324,465) Undistributed net investment income 20,411 ------------ Total $102,543,992 ============ NET ASSET VALUE AND REDEMPTION PRICE PER SHARE ($102,543,992 / 506,868 shares of capital stock outstanding) $202.31 ======= See notes to financial statements
STATEMENT OF OPERATIONS - ------------------------------------------------------------------------------ Six Months Ended April 30, 1995 (unaudited) - ------------------------------------------------------------------------------ INVESTMENT INCOME: Income -- Dividends $ 999,182 Interest 28,971 ----------- Total income $ 1,028,153 Expenses -- Investment adviser fee (Note 4) $ 292,073 Compensation of Directors not members of the Investment Adviser's organization 3,204 Custodian fees (Note 4) 22,604 Legal and accounting services 21,187 Printing and postage 17,911 Transfer and dividend disbursing agent fees 3,984 Miscellaneous 6,160 ----------- Total expenses 367,123 ----------- Net investment income $ 661,030 REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments, computed on the basis of identified cost ($177,939 net gain as computed for federal income tax purposes) $ 1,856,881 Increase in unrealized appreciation of investments 11,210,726 ----------- Net realized and unrealized gain on investments 13,067,607 ----------- Net increase in net assets from operations $13,728,637 =========== See notes to financial statements STATEMENT OF CHANGES IN NET ASSETS - ------------------------------------------------------------------------------ Six Months Ended April 30, 1995 Year Ended (unaudited) October 31, 1994 -------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: From operations -- Net investment income $ 661,030 $ 1,333,841 Net realized gain on investments 1,856,881 4,135,350 Increase in unrealized appreciation of investments 11,210,726 2,100,381 ------------ ----------- Increase in net assets from operations $ 13,728,637 $ 7,569,572 ------------ ----------- Distributions to shareholders -- From net investment income $ (661,030) $(1,319,653) In excess of net investment income (28,242) -- From net realized gain on investments (12,852) (81,369) ------------ ----------- Total distributions to shareholders $ (702,124) $(1,401,022) ------------ ----------- Net decrease from capital stock transactions (Note 2) $ (1,771,585) $(4,472,337) ------------ ----------- Net increase in net assets $ 11,254,928 $ 1,696,213 NET ASSETS: At beginning of period 91,289,064 89,592,851 ------------ ----------- At end of period (including undistributed net investment income of $20,411 and $48,653, respectively) $102,543,992 $91,289,064 ============ ===========
See notes to financial statements FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------ Six Months Year Ended October 31, Ended April 30, 1995 ------------------------------------------------------------------------- (unaudited) 1994 1993 1992 1991 1990 -------------------- ---- ---- ---- ---- ---- NET ASSET VALUE, beginning of period $176.610 $164.860 $156.030 $142.810 $106.030 $112.910 -------- -------- -------- -------- -------- -------- INCOME FROM OPERATIONS: Net investment income $ 1.296 $ 2.521 $ 2.334 $ 2.178 $ 2.181 $ 2.339 Net realized and unrealized gain (loss) on investments 25.779 11.869 9.533 13.332 36.949 (6.769) -------- -------- -------- -------- -------- -------- Total income (loss) from operations $ 27.075 $ 14.390 $ 11.867 $ 15.510 $ 39.130 $ (4.430) -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS: From net investment income $ (1.296) $ (2.490) $ (2.550) $ (2.130) $ (2.350) $ (2.450) In excess of net investment income (0.054) -- -- -- -- -- From net realized gain on investments (0.025) (0.150) -- (0.160) -- -- -------- -------- -------- -------- -------- -------- Total distributions $ (1.375) $ (2.640) $ (2.550) $ (2.290) $ (2.350) $ (2.450) -------- -------- -------- -------- -------- -------- Provision for federal tax on undistributed net realized long-term gain (Note 1B) $ -- $ -- $ (0.487) $ -- $ -- $ -- -------- -------- -------- -------- -------- -------- NET ASSET VALUE, end of period $202.310 $176.610 $164.860 $156.030 $142.810 $106.030 ======== ======== ======== ======== ======== ======== TOTAL RETURN 15.41% 8.80% 7.33% 10.94% 37.13% (4.05)% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's omitted) $102,544 $ 91,289 $ 89,593 $ 88,632 $ 86,148 $ 66,528 Ratio of expenses to average net assets 0.79% 0.76% 0.78% 0.78% 0.79% 0.86% Ratio of net investment income to average net assets 1.43% 1.49% 1.46% 1.44% 1.64% 2.05% PORTFOLIO TURNOVER 0% 2% 2% 0% 3% 4% Annualized - ---------- Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the payable date.
See notes to financial statements NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - ----------------------------------------------------------------------------- (1) SIGNIFICANT ACCOUNTING POLICIES The Fund is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end, management investment company. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A. INVESTMENT VALUATIONS -- Investments listed on securities exchanges or in the NASDAQ National Market are valued at closing sale prices. Listed or unlisted investments for which closing sale prices are not available are valued at closing bid prices. Short-term obligations, maturing in 60 days or less, are valued at amortized cost, which approximates value. B. FEDERAL TAXES -- The Fund's policy is to comply with the provisions of the Internal Revenue Code available to regulated investment companies and to distribute to shareholders each year all of its taxable income from dividends, interest and net realized short-term capital gain. Accordingly, no provision for federal income or excise tax is necessary on such income. The Fund generally designates as undistributed any taxable net realized long-term gain (but reserves the right to distribute such gain in any year) and pays the federal tax thereon on behalf of shareholders. Provision for such tax is recorded on the Fund's records on the last business day of the Fund's fiscal year because the Internal Revenue Code provides that such tax is allocated among shareholders of record on that date. C. OTHER -- Investment transactions are accounted for on a trade date basis. Dividend income and dividends to shareholders are recorded on the ex-dividend date. D. DISTRIBUTIONS -- Generally accepted accounting principles require that differences in the recognition or classification of income between the financial statements and tax earnings and profits which result in temporary over-distributions for financial statement purposes, are classified as distributions in excess of net investment income or accumulated net realized gains. E. INTERIM FINANCIAL INFORMATION -- The interim financial statements relating to April 30, 1995 and for the six month period 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 a fair presentation of the financial statements. - ------------------------------------------------------------------------------ (2) CAPITAL STOCK At April 30, 1995, there were 4,000,000 shares of $1.00 par value capital stock authorized. Transactions in capital stock were as follows: Six Months Ended April 30, 1995 Year Ended (Unaudited) October 31, 1994 ----------------------- ---------------------- Shares Amount Shares Amount ------ ------ ------ ------ Redemptions (10,913) $(1,931,244) (28,431) $(4,795,769) Issued to shareholders electing to receive payment of dividends in capital stock 871 159,659 1,907 323,432 ------ ----------- ------- ----------- Net decrease (10,042) $(1,771,585) (26,524) $(4,472,337) ====== =========== ======= =========== - ------------------------------------------------------------------------------ (3) INVESTMENT TRANSACTIONS Sales of investments, other than short-term obligations, aggregated $179,404. There were no purchases of investments. In addition, investments having an aggregate market value of $1,819,091 at dates of redemption were distributed in payment for capital stock redeemed. - ------------------------------------------------------------------------------ (4) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES The investment adviser fee, computed at the monthly rate of 5/96 of 1% (5/8 of 1% annually) of the Fund's average monthly net assets, was paid to Eaton Vance Management (EVM) as compensation for management and investment advisory services rendered to the Fund. Except as to directors of the Fund who are not members of EVM's organization, officers and directors receive remuneration for their services to the Fund out of such investment adviser fee. The custodian fee was paid to Investors Bank & Trust Company (IBT), an affiliate of EVM, for its services as custodian of the Fund. Pursuant to the custodian agreement, IBT receives a fee reduced by credits which are determined based on the average daily cash balances the Fund maintains with IBT. Certain of the officers and directors of the Fund are officers and directors/trustees of the above organizations. Directors of the Fund 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 April 30, 1995, no significant amounts have been deferred. - ------------------------------------------------------------------------------ (5) LINE OF CREDIT The Fund participates with other funds managed by EVM in a $120 million unsecured line of credit agreement with a bank. The line of credit consists of a $20 million committed facility and a $100 million discretionary facility. Borrowings will be made by the Fund solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to each fund based on its borrowings at an amount above either the bank's adjusted certificate of deposit rate, a variable adjusted certificate of deposit rate, or a federal funds effective rate. In addition, a fee computed at an annual rate of 1/4 of 1% on the $20 million committed facility and on the daily unused portion of the $100 million discretionary facility is allocated among the participating funds at the end of each quarter. The Fund did not have any significant borrowings or allocated fees during the period. - ------------------------------------------------------------------------------ (6) FEDERAL INCOME TAX BASIS OF INVESTMENTS The cost and unrealized appreciation/depreciation in value of the investments owned at April 30, 1995, as computed on a federal income tax basis, are as follows: Aggregate cost $17,227,088 =========== Gross unrealized appreciation $85,066,308 Gross unrealized depreciation -- ----------- Net unrealized appreciation $85,066,308 =========== INVESTMENT MANAGEMENT CAPITAL EXCHANGE OFFICERS AND STAFF INDEPENDENT DIRECTORS FUND, INC. LANDON T. CLAY DONALD R. DWIGHT 24 Federal Street President, Director President, Boston, MA 02110 PETER F. KIELY Dwight Partners, Inc. Vice President, Director Chairman, Newspapers of JAMES B. HAWKES New England, Inc. Vice President SAMUEL L. HAYES, III DUNCAN RICHARDSON Jacob H. Schiff Professor Vice President and of Investment Banking, Portfolio Manager Harvard University JAMES L. O'CONNOR Graduate School of Treasurer Business Administration THOMAS OTIS NORTON H. REAMER Clerk President and Director, JAMES F. ALBAN United Asset Assistant Treasurer Management Corporation JANET E. SANDERS JOHN L. THORNDIKE Assistant Treasurer Director, and Assistant Clerk Fiduciary Company A. JOHN MURPHY Incorporated Assistant Secretary JACK L. TREYNOR Investment Adviser and Consultant - ------------------------------------------------------------------------------ INVESTMENT ADVISER TRANSFER AND DIVIDEND Eaton Vance Management DISBURSING AGENT 24 Federal Street The Shareholder Boston, MA 02110 Services Group, Inc. BOS725 CUSTODIAN P.O. Box 1559 Investors Bank & Trust Boston, MA 02104 Company 24 Federal Street Boston, MA 02110 CAPITAL EXCHANGE FUND, INC. SUMMARY NET ASSET VALUE PER SHARE - ------------------------------------------------------------------------------ PAST SIX MONTHS - ------------------------------------------------------------------------------ April 30, 1995 $202.31 - ------------------------------------------------------------------------------ October 31, 1994 $176.61 - ------------------------------------------------------------------------------ PAST YEAR - ------------------------------------------------------------------------------ April 30, 1995 $202.31 - ------------------------------------------------------------------------------ April 30, 1994 $167.08 - ------------------------------------------------------------------------------ LIFE OF FUND - ------------------------------------------------------------------------------ April 30, 1995 $202.31 - ------------------------------------------------------------------------------ March 29, 1966 $ 25.00 - ------------------------------------------------------------------------------ CHANGE (3/29/66 TO 4/30/95) IN: - ------------------------------------------------------------------------------ Share value +709.2% - ------------------------------------------------------------------------------ Share value plus cumulative Federal taxes paid by Fund* +736.2% - ------------------------------------------------------------------------------ Dow Jones Industrial Average 380.4% - ------------------------------------------------------------------------------ Standard & Poor's 500 497.5% - ------------------------------------------------------------------------------ *Realized capital gains are generally retained by the Fund and the federal tax thereon is paid on behalf of shareholders. Such taxes aggregated $6.748 per share over the life of the Fund. The Dow Jones Industrial Average and the Standard & Poor's 500 are unmanaged lists of common stocks. CAPITAL EXCHANGE FUND An Eaton Vance Exchange Fund Semi-Annual Report April 30, 1995 -----END PRIVACY-ENHANCED MESSAGE-----