<PAGE>
TO SHAREHOLDERS
During the year that ended December 31, 1994, shareholders of Eaton Vance Cash
Management Fund received $0.034 per share in income dividends. Based on the last
monthly dividend paid during the period and the Fund's constant $1.00 share
price, the Fund's annualized distribution rate on December 31, 1994, was 5.07
percent.
Of course, an investment in the Fund is neither insured nor guaranteed by the
U.S. government and there can be no assurance that the Fund will be able to
maintain a stable net asset value of $1.00 per share.
The U.S. economy grew steadily throughout 1994. Third-quarter gross domestic
product rose 4.1 percent, matching the 4.1 percent gain in the second quarter.
In an effort to moderate economic growth and to restrain inflationary pressures,
the Federal Reserve raised short-term rates six times during 1994. The Fed's
actions caused interest rates in general and short-term interest rates in
particular to rise throughout the period.
During 1994, the average weighted maturity of the Portfolio was 31 days. The
relatively short average maturity allowed the Fund to take advantage quickly of
the higher short-term rates.
Eaton Vance Cash Management Fund invests in a Portfolio of liquid short-term
investments of the highest credit quality. All nongovernmental securities
acquired by the Portfolio are considered first-tier securities. These are
securities that have been given the top rating by at least two nationally
recognized statistical rating organizations. The remainder are U.S. Government
securities which are unrated but which are considered of comparable or superior
quality to first-tier securities.
Many analysts look for still higher interest rates during the first half of
1995. It is expected that money market rates could increase further as a result.
Investors can be assured that the Fund will strive to continue to only invest in
securities of the highest quality while seeking to benefit from rising
short-term interest rates.
Sincerely,
[Photo] /s/ M. Dozier Gardner
M.Dozier Gardner
President
February 21, 1995
<PAGE>
This is a chart that describes the interest rates of a 90-day Treasury bills
month-end yields during the period 1991 through 1994. The horizontal axis
denotes the start of each calendar year. The vertical axis denotes interest
rates, from 2 to 7 percent. The chart is entitled, "Short term yields rose
dramatically during 1994," and the chart cites its source, Bloomberg, L.P.
SHORT-TERM YIELDS ROSE
DRAMATICALLY DURING 1994
3-month
3-MO T-BILLS
(BE yield)
(GB3govt)
------------
Jan-91 6.38
Feb-91 6.26
Mar-91 5.93
Apr-91 5.69
May-91 5.69
Jun-91 5.69
Jul-91 5.68
Aug-91 5.48
Sep-91 5.25
Oct-91 4.95
Nov-91 4.46
Dec-91 3.96
- ---------------------------------
Jan-92 3.94
Feb-92 4.02
Mar-92 4.14
Apr-92 3.77
May-92 3.77
Jun-92 3.65
Jul-92 3.24
Aug-92 3.22
Sep-92 2.74
Oct-92 3.02
Nov-92 3.34
Dec-92 3.14
- ---------------------------------
Jan-93 2.97
Feb-93 3.00
Mar-93 2.96
Apr-93 2.96
May-93 3.12
Jun-93 3.08
Jul-93 3.10
Aug-93 3.07
Sep-93 2.98
Oct-93 3.11
Nov-93 3.21
Dec-93 3.09
- ---------------------------------
Jan-94 3.03
Feb-94 3.45
Mar-94 3.57
Apr-94 3.96
May-94 4.26
Jun-94 4.23
Jul-94 4.36
Aug-94 4.67
Sep-94 4.78
Oct-94 5.14
Nov-94 5.71
Dec-94 5.68
- ---------------------------------
Source: Bloomberg, L.P.
<PAGE>
------------------------------------------------
EATON VANCE CASH MANAGEMENT FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
December 31, 1994
- --------------------------------------------------------------------------------
ASSETS:
Investment in Cash Management Portfolio,
at amortized cost and value (Note 1A) $108,271,524
Receivable for Fund shares sold 4,603,244
------------
Total Assets $112,874,768
LIABILITIES:
Payable for Fund shares redeemed $1,046,623
Dividends payable 171,656
Payable to affiliates --
Trustees' fees 683
Custodian fees 1,299
Accrued expenses 32,999
----------
Total liabilities 1,253,260
------------
NET ASSETS (represented by paid in capital
for 111,621,508 shares outstanding) $111,621,508
============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE (Net assets divided by
shares outstanding) $1.00
=====
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF OPERATIONS
-----------------------------------------------------------------
For the Year Ended December 31, 1994
- --------------------------------------------------------------------------------
INVESTMENT INCOME: (NOTE 1B):
Interest income $1,205,808
Interest income allocated from Portfolio 3,154,201
Expenses allocated from Portfolio (385,518)
----------
Total investment income $3,974,491
----------
EXPENSES --
Investment adviser fee (Note 3) $180,479
Compensation of Trustees not members of the
Administrator's organization (Note 3) 3,571
Custodian fee (Note 3) 44,519
Transfer and dividend disbursing agent fees 72,929
Printing and postage 57,049
Registration costs 44,677
Audit and legal fees 20,857
Miscellaneous 57,792
--------
Total expenses 481,873
----------
Net investment income $3,492,618
==========
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------
1994 1993
----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
From Operations --
Net investment income $ 3,492,618 $ 3,414,729
Distributions paid to shareholders
from net investment income (Note 2) (3,492,618) (3,414,729)
Net decrease in net assets from Fund
share transactions (Note 4) (578,137) (49,786,739)
------------ ------------
Net decrease in net assets $ (578,137) $(49,786,739)
NET ASSETS:
At beginning of year 112,199,645 161,986,384
------------ ------------
At end of year $111,621,508 $112,199,645
============ ============
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
FINANCIAL STATEMENTS (Continued)
<CAPTION>
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------
1994 1993 1992 1991<F1> 1990<F1>
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of
year $1.00 $1.00 $1.00 $1.00 $1.00
---- ---- ---- ---- ----
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income $ 0.0345 $ 0.0251 $ 0.0306 $ 0.0537 $ 0.0755
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment
income $(0.0345) $(0.0251) $(0.0306) $(0.0537) $(0.0755)
-------- -------- -------- -------- --------
NET ASSET VALUE, end of year $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
TOTAL RETURN 3.49% 2.54% 3.14% 5.51% 7.82%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year
(000 omitted) $111,622 $112,200 $161,986 $195,488 $250,658
Ratio of expenses to average
net assets 0.844%<F2> 0.674% 0.760% 0.746% 0.710%
Ratio of net investment income
to average net assets 3.396%<F2> 2.512% 3.088% 5.442% 7.540%
Note: Certain of the per share amounts have been compiled using average shares outstanding
<FN>
<F1>Audited by the Fund's previous auditors.
<F2>Includes the Fund's share of Cash Management Portfolio's allocated income and expenses for the period from May 2, 1994
to December 31, 1994.
<F3>Total return is calculated assuming a purchase at net asset value on the first day and a sale at the net asset value
on the last day of the period. Dividends and distributions, if any, are assumed to be reinvested at the net asset value
on the payable date.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
(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. On May 2, 1994, the Fund
transferred substantially all of its investable assets to the Cash Management
Portfolio (the Portfolio). The Fund invests all of its investable assets in
interests in the Portfolio, a New York Trust, having the same investment
objective as the Fund. The value of the Fund's investment in the Portfolio
reflects the Fund's proportionate interest in the net assets of the Portfolio
(48.6% at December 31, 1994). The performance of the Fund is directly affected
by the performance of the Portfolio. The financial statements of the Portfolio,
including the portfolio of investments, are included elsewhere in this report
and should be read in conjunction with the Fund's financial statements. 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 - Valuations of securities by the Portfolio is
discussed in Note 1 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.
B. INCOME - The Fund's net investment income consists of the Fund's pro rata
share of the net investment income of the Portfolio, less all actual and accrued
expenses of the Fund determined in accordance with generally accepted accounting
principles. Prior to the Fund's investment in the Portfolio, the Fund held its
investments directly. For investments held directly, interest income was
determined on the basis of interest accrued, adjusted for amortization of
premium or discount when required for federal income tax purposes.
C. FEDERAL TAXES - The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable income, including any
net realized gains on investments. Accordingly, no provision for federal income
or excise tax is necessary.
D. OTHER - Investment transactions are accounted for on a trade date basis.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
-----------------------------------------------------------------
(2) DISTRIBUTIONS TO SHAREHOLDERS
The net income of the Fund is determined daily and substantially all of the net
income so determined is declared as a dividend to shareholders of record at the
time of declaration. Dividends are paid monthly. Dividends are paid in the form
of additional shares of the Fund or, at the election of the shareholder, in
cash.
The Fund distinguishes between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a return of capital. Differences in the recognition or
classification of income between the financial statements and tax earnings and
profits which result in over-distributions for financial statement purposes only
are classified as distributions in excess of net investment income or
accumulated net realized gains. Permanent differences between book and tax
accounting relating to distributions are reclassified to paid-in capital.
-----------------------------------------------------------------
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Prior to May 2, 1994 (when the Fund transferred substantially all of its assets
to the Portfolio in exchange for an interest in the Portfolio), the Fund
retained Eaton Vance Management (EVM) as its investment adviser. The investment
adviser fee was earned by EVM as compensation for management and investment
advisory services rendered to the Fund. The fee was computed at the rate of 1/2
of 1% per annum of the Fund's average daily net assets and amounted to $180,479
for the period from January 1, 1994, to May 1, 1994. Since May 2, 1994, Eaton
Vance has served only as the administrator of the Fund, but receives no
compensation. The Portfolio has engaged Boston Management and Research (BMR), a
subsidiary of EVM, to render investment advisory services. See Note 2 of the
Portfolio's Notes to Financial Statements which are included elsewhere in this
report. Except as to Trustees of the Fund and the Portfolio who are not members
of EVM's organization, officers and Trustees receive remuneration for their
services to the Fund out of such investment adviser fee.
Investors Bank & Trust Company (IBT), an affiliate of EVM, serves as custodian
of the Fund and the Portfolio. Pursuant to the respective custodian agreements,
IBT receives a fee reduced by credits which are determined based on the average
cash balances the Fund or the Portfolio maintains with IBT.
As of December 31, 1994, Saturn & Co., a nominee of Investors Bank & Trust
Company, was the record owner of approximately 33% of the outstanding shares of
the Fund which the Trust Company held on behalf of its custody and trust
clients.
Certain of the officers and Trustees of the Fund and Portfolio are officers
and directors/trustees of the above organizations.
<PAGE>
-----------------------------------------------------------------
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------
1994 1993
----------------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Sales 746,678,214 $746,678,214 769,671,868 $769,671,868
Issued to shareholders
electing to receive
payments of
distributions in Fund
shares 1,864,353 1,864,353 2,368,150 2,368,150
Redemptions (749,120,704) (749,120,704) (821,826,757) (821,826,757)
------------ ------------ ------------ ------------
Net decrease (578,137) $ (578,137) (49,786,739) $(49,786,739)
============ ============ ============ ============
</TABLE>
-----------------------------------------------------------------
(5) INVESTMENTS TRANSACTIONS
On May 2, 1994, the Fund transferred substantially all of its assets to the
Portfolio in exchange for an interest in the Portfolio. Increases and decreases
in the Fund's investments in the Portfolio for the period from May 2, 1994, to
December 31, 1994 aggregated $422,593,068 and $434,717,518, respectively.
Purchases and sales and maturities of investment securities, other than U.S.
government securities, during the period from January 1, 1994 to May 1, 1994,
aggregate $185,514,973 and $220,446,000, respectively. Purchases and sales and
maturities of U.S. Government Securities, during the period from January 1, 1994
to May 1, 1994, aggregate $374,735,693 and $253,328,485, respectively.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Eaton Vance Cash Management Fund:
We have audited the accompanying statement of assets and liabilities of Eaton
Vance Cash Management Fund as of December 31, 1994, and the related statement
of operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended and the financial
highlights for each of the three years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The
financial highlights for each of the two years in the period ended December
31, 1991, presented herein, were audited by other auditors whose report dated
January 21, 1992 expressed an unqualified opinion on such financial
highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of December 31, 1994 by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Eaton Vance Cash Management Fund as of December 31, 1994, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each
of the three years in the period then ended, in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 3, 1995
<PAGE>
---------------------------------------
CASH MANAGEMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER - 66.97%
- ----------------------------------------------------------------------------------------------------------------------
RATINGS
(UNAUDITED) PRINCIPAL
------------------------- AMOUNT
STANDARD (000
& POOR'S MOODY'S OMITTED) VALUE (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <S> <C>
AGRICULTURE - 1.86%
A-1+ P-1 $ 3,000 Cargill Financial Services Corp. 6.07s, 3/01/95 $ 2,970,156
A-1+ P-1 1,200 Cargill Financial Services Corp. 6.10s, 3/21/95 1,183,936
------------
$ 4,154,092
------------
AUTOMOTIVE - 0.90%
A-1 P-1 $ 2,000 Ford Motor Credit Co. 5.98s, 1/09/95 $ 1,997,342
------------
BANKING & FINANCE - 18.62%
A-1 P-1 $ 2,000 American Express Credit Corp. 5.60s, 1/18/95 $ 1,994,711
A-1+ P-1 3,000 Asset Securitization Coop. Corp. 5.60s, 1/10/95 2,995,801
A-1+ P-1 2,000 Asset Securitization Coop. Corp. 5.62s, 1/11/95 1,996,877
A-1+ P-1 1,000 Asset Securitization Coop. Corp. 5.73s, 1/23/95 996,498
A-1+ P-1 3,000 Associates Corp. of No. America 5.70s, 1/17/95 2,992,400
A-1+ P-1 2,500 Associates Corp. of No. America 5.40s, 1/05/95 2,498,500
A-1+ P-1 600 Associates Corp. of No. America 6.05s, 2/07/95 596,269
A-1 P-1 4,000 CXC Incorporated 6.05s, 1/18/95 3,988,572
A-1+ P-1 2,500 CIESCO 5.70s, 1/18/95 2,493,271
A-1+ P-1 1,500 CIESCO 5.42s, 1/23/95 1,495,032
A-1+ P-1 2,000 CIESCO 5.92s, 2/02/95 1,989,476
A-1+ P-1 2,000 Corporate Asset Funding Co. 5.77s, 2/01/95 1,990,064
A-1+ P-1 4,000 Corporate Asset Funding Co. 6.00s, 2/06/95 3,976,000
A-1+ P-1 4,000 Corporate Receivables Corp. 5.90s, 1/13/95 3,992,134
A-1+ P-1 2,500 Delaware Funding Corp. 6.10s, 2/10/95 2,483,056
A-1+ P-1 2,000 Norwest Financial Inc. 5.20s, 1/04/95 1,999,133
A-1 P-1 3,000 Norwest Financial Inc. 5.45s, 1/04/95 2,998,637
------------
$ 41,476,431
------------
CONSUMER GOODS - 3.74%
A-1+ P-1 $ 5,000 Coca-Cola Co. 5.95s, 2/28/95 $ 4,952,069
A-1+ P-1 1,000 Heinz (H.J.) Co. 5.90s, 1/05/95 999,344
A-1+ P-1 2,400 Heinz (H.J.) Co. 6.00s, 2/07/95 2,385,200
------------
$ 8,336,613
------------
CREDIT UNION - 3.04%
A-1+ P-1 $ 1,200 AI Credit Corp. 5.90s, 2/06/95 $ 1,192,920
A-1+ P-1 2,600 AI Credit Corp. 6.09s, 2/06/95 2,584,166
A-1+ P-1 3,000 Mid-States Corp. Federal Credit Union 6.05s, 1/12/95 2,994,454
------------
$ 6,771,540
------------
The accompanying notes are an integral part of the financial statements
<PAGE>
PORTFOLIO OF INVESTMENTS (Continued)
ELECTRICAL EQUIPMENT & ELECTRONICS - 5.59%
A-1+ P-1 $ 1,000 General Electric Capital Corp. 5.40s, 1/12/95 $ 998,350
A-1+ P-1 1,000 General Electric Capital Corp. 5.35s, 1/19/95 997,325
A-1+ P-1 1,500 General Electric Capital Corp. 5.90s, 1/24/95 1,494,346
A-1+ P-1 3,000 General Electric Capital Corp. 5.55s, 1/09/95 2,996,300
A-1+ P-1 2,000 General Electric Capital Corp. 6.03s, 2/07/95 1,987,605
A-1+ P-1 4,000 Motorola Credit Corp. 6.00s, 1/25/95 3,984,000
------------
$ 12,457,926
------------
INSURANCE - 14.98%
A-1+ P-1 $ 4,000 APC Funding Corp. 5.88s, 1/23/95 $ 3,985,639
A-1+ P-1 600 American General Finance Corp. 5.60s, 1/12/95 598,973
A-1+ P-1 3,000 American General Finance Corp. 5.75s, 1/12/95 2,991,375
A-1+ P-1 700 American General Finance Corp. 6.08s, 2/13/95 694,917
A-1+ P-1 2,000 American General Finance Corp. 6.05s, 2/22/95 1,982,522
A-1+ P-1 3,300 Metlife Funding Inc. 5.48s, 1/26/95 3,287,441
A-1+ P-1 2,000 Prudential Funding Corp. 6.05s, 2/21/95 1,982,858
A-1+ P-1 2,000 Prudential Funding Corp. 6.10s, 3/30/95 1,970,178
A-1+ P-1 2,000 Prudential Funding Corp. 6.18s, 3/27/95 1,970,816
A-1+ P-1 4,000 SAFECO Credit Co., 6.25s, 3/14/95 3,949,999
A-1+ P-1 2,000 SAFECO Credit Co., 6.20s, 3/16/95 1,974,511
A-1 P-1 2,000 Transamerica Finance Corp. 6.00s, 1/17/95 1,994,666
A-1+ P-1 2,000 USAA Capital Corp. 5.73s, 1/12/95 1,996,498
A-1+ P-1 2,000 USAA Capital Corp. 5.37s, 1/03/95 1,999,403
A-1+ P-1 2,000 USAA Capital Corp. 6.10s, 2/13/95 1,985,428
------------
$ 33,365,224
------------
LEASING - 0.90%
A-1 P-1 $ 2,000 AML Funding Inc. 6.10s, 1/12/95 $ 1,996,272
------------
OFFICE EQUIPMENT - 2.90%
A-1+ P-1 $ 1,500 Pitney Bowes Credit Corp. 5.95s, 1/11/95 $ 1,497,521
A-1+ P-1 1,200 Pitney Bowes Credit Corp. 5.92s, 1/03/95 1,199,605
A-1+ P-1 3,800 Pitney Bowes Credit Corp. 6.03s, 2/15/95 3,771,359
------------
$ 6,468,485
------------
OIL - 5.55%
A-1+ P-1 $ 3,000 Chevron Oil Finance Co. 5.90s, 1/20/95 $ 2,990,658
A-1+ P-1 3,000 Chevron Oil Finance Co. 5.70s, 1/27/95 2,987,650
A-1+ P-1 1,500 Chevron Oil Finance Co. 5.48s, 1/06/95 1,498,858
A-1 P-1 1,900 American Trading & Production 6.00s, 1/12/95 1,896,517
A-1+ P-1 3,000 Cortez Capital Corp. 6.06s, 1/17/95 2,991,920
------------
$ 12,365,603
------------
The accompanying notes are an integral part of the financial statements
<PAGE>
SPECIALTY RETAILER - 1.77%
A-1+ P-1 $ 4,000 Melville Corp. 6.07s, 3/21/95 $ 3,946,719
------------
TELECOMMUNICATIONS - 4.44%
A-1 P-1 $ 2,000 American Telephone & Telegraph Co. Capital Corp.
6.18s, 2/27/95 $ 990,215
A-1 P-1 3,000 American Telephone & Telegraph Co. Capital Corp.
6.15s, 3/27/95 2,956,437
A-1+ P-1 1,000 Ameritech Capital Funding Corp 6.08s, 2/13/95 992,738
A-1+ P-1 3,000 Ameritech Capital Funding Corp 6.13s, 2/23/95 2,972,926
A-1+ P-1 2,000 Ameritech Capital Funding Corp. 6.04s, 2/27/95 1,980,874
------------
$ 9,893,190
------------
UTILITIES - 2.68%
A-1+ P-1 $ 4,000 Iowa-Illinois Gas & Electric 5.92s, 2/02/95 $ 3,978,952
A-1 P-1 2,000 Potomac Electric Power Co. 6.03s, 1/18/95 1,994,305
------------
$ 5,973,257
------------
TOTAL COMMERCIAL PAPER, AT AMORTIZED COST $149,202,694
============
<PAGE>
- -----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 33.0%
- -----------------------------------------------------------------------------------------------------------------------
$ 1,900 FNMA Discount Notes 5.55s, 1/09/95 $ 1,897,657
5,000 FNMA Discount Notes 5.85s, 1/30/95 4,976,438
3,600 FNMA Discount Notes 5.96s, 1/31/95 3,582,120
8,000 FNMA Discount Notes 5.87s, 1/31/95 7,960,866
5,000 FNMA Discount Notes 5.88s, 2/08/95 4,968,967
3,995 FNMA Discount Notes 6.04s, 2/15/95 3,964,838
4,700 FNMA Discount Notes 5.99s, 2/22/95 4,659,334
4,300 FNMA Discount Notes 6.05s, 2/23/95 4,261,701
3,575 FNMA Discount Notes 6.05s, 2/27/95 3,540,755
2,675 FNMA Discount Notes 6.08s, 2/27/95 2,649,249
5,900 FFCB Discount Notes 5.86s, 1/06/95 5,895,222
4,500 FHLMC Discount Notes 5.55s, 1/03/95 4,498,613
5,250 FHLMC Discount Notes 5.55s, 1/04/95 5,247,572
13,000 FHLMC Discount Notes 5.90s, 1/24/95 12,950,997
2,500 FHLMC Discount Notes 6.01s, 2/15/95 2,481,218
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS, AT AMORTIZED COST $ 73,535,547
------------
TOTAL INVESTMENTS - 99.97% $222,738,241
OTHER ASSETS, LESS LIABILITIES - 0.03% 75,214
------------
NET ASSETS - 100% $222,813,455
============
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
------------------------------------------------
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------
December 31, 1994
- -------------------------------------------------------------------------------
ASSETS:
Investments, at amortized cost and value (Note 1A $222,738,241
Cash 73,117
Deferred organization expenses (Note 1D) 12,958
------------
Total assets 222,824,316
LIABILITIES:
Accrued expenses 10,861
------------
NET ASSETS $222,813,455
============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and withdrawals $222,813,455
============
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------
For the period from the start of business, May 2, 1994, to December 31, 1994
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest Income $5,733,942
Expenses:
Investment adviser fee (Note 2) $597,131
Compensation of Trustees not members
of the Investment Adviser's organization
(Note 2) 5,356
Custodian fee (Note 2) 69,593
Audit and legal fees 23,364
Miscellaneous 2,198
--------
Total expenses 697,642
----------
Net investment income $5,036,300
==========
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the period from the start of business, May 2, 1994, to December 31, 1994
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 5,036,300
Capital transactions -
Contributions 866,299,681
Withdrawals (648,622,546)
-------------
Increase in net assets resulting
from capital transactions $ 217,677,135
-------------
Total increase in net assets $ 222,713,435
NET ASSETS:
At beginning of period 100,020
-------------
At end of period $ 222,813,455
=============
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
For the period from the start of business, May 2, 1994, to December 31, 1994
- --------------------------------------------------------------------------------
RATIOS (AS A PERCENTAGE OF AVERAGE NET ASSETS):
Expenses 0.58%+
Net investment income 4.22%+
+Annualized.
The accompanying notes are an integral part of the financial statements
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Cash Management Portfolio (the Portfolio) is registered under the Investment
Company Act of 1940 as a diversified open-end investment company which was
organized as a trust under the laws of the State of New York on May 1, 1992. The
Declaration of Trust permits the Trustees to issue interests in the Portfolio.
Investment operations began on May 2, 1994, with the acquisition of securities
with an amortized cost and value of $282,781,862 in exchange for interests in
the Portfolio by the Portfolio's investors. The following is a summary of
significant accounting policies of the Portfolio. The policies are in conformity
with generally accepted accounting principles.
A. SECURITY VALUATION - The Portfolio values investment securities utilizing the
amortized cost valuation technique permitted by Rule 2a-7 of the Investment
Company Act of 1940, pursuant to which the Portfolio must comply with certain
conditions. This technique involves initially valuing a portfolio security at
its cost and thereafter assuming a constant amortization to maturity of any
discount or premium. It is the normal practice of the Portfolio to hold
portfolio securities to maturity and realize par value unless such sale or other
disposition is mandated by withdrawal requests or other extraordinary
circumstances.
B. INCOME - Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or accretion of discount when required for
federal income tax purposes.
C. INCOME TAXES - The Portfolio is treated as a partnership for Federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes. Since some of the
Portfolio's investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolio, the Portfolio normally must
satisfy the applicable source of income and diversification requirements (under
the 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 taxable investment income, net realized capital
gains, and any other items of income, gain, loss, deduction or credit.
D. DEFERRED ORGANIZATION EXPENSES - Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line basis
over five years.
E. OTHER - Investment transactions are accounted for on the date the investments
are purchased or sold or the date on which they mature.
<PAGE>
-----------------------------------------------------------------
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR), a
wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation for
management and investment advisory services rendered to the Portfolio. The fee
is computed at the rate of 1/2 of 1% per annum of the Portfolio's average daily
net assets and amounted to $597,131 for the period from the start of business,
May 2, 1994 to December 31, 1994. Except as to Trustees of the Portfolio who are
not members of EVM's or BMR's organization, officers and Trustees receive
remuneration for their services to the Portfolio out of such investment adviser
fee.
Investors Bank & Trust Company (IBT), an affiliate of EVM and BMR, serves as a
custodian of the Portfolio. Pursuant to the custodian agreement, IBT receives a
fee which is reduced by certain credits based on the average daily cash balances
the Portfolio maintains with IBT.
Certain of the officers and Trustees of the Portfolio are officers and
directors/trustees of the above organizations.
-----------------------------------------------------------------
(3) LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR or 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 Portfolio solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each portfolio or 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 and
portfolios at the end of each quarter. The Portfolio did not have any
significant borrowings or allocated fees during the period.
-----------------------------------------------------------------
(4) INVESTMENTS
Purchases and sales (including maturities) of investments, during the period
ended December 31, 1994, exclusive of U.S. Government securities aggregated
$896,432,907 and $823,611,005, respectively. Purchases and sales (including
maturities) of U.S. Government securities aggregated $943,882,951 and
$907,191,209, respectively.
<PAGE>
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Cash Management Portfolio:
We have audited the accompanying statement of assets and liabilities, of the
Cash Management Portfolio (the "Portfolio") including the portfolio of
investments as of December 31, 1994, and the related statement of operations,
changes in net assets and supplementary data for the period from May 2, 1994
(start of business), to December 31, 1994. These financial statements and
supplementary data are the reseponsibility of the Portfolio's management. Our
responsibility is to express an opinion on these financial statements and
supplementary data based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
supplementary data are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned at December 31, 1994 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and supplementary data referred to
above present fairly, in all material respects, the financial position of Cash
Management Portfolio at December 31, 1994, the results of its operations,
changes in net assets and supplementary data for the period from May 2, 1994
(start of business), to December 31, 1994, in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 3, 1995
<PAGE>
-------------------------------------------------------------
INVESTMENT MANAGEMENT
EATON VANCE OFFICERS INDEPENDENT
CASH MANAGEMENT M. DOZIER GARDNER TRUSTEES
FUND President, Trustee H. DAY BRIGHAM, JR.
24 Federal Street MICHAEL B. TERRY Vice President,
Boston, MA 02110 Vice President Eaton Vance
JAMES L. O'CONNOR Management
Treasurer DONALD R. DWIGHT
THOMAS OTIS President, Dwight
Secretary Partners, Inc.
DOUGLAS C. MILLER Chairman,
Assistant Treasurer Newspapers of
JANET E. SANDERS New England, Inc.
Assistant Treasurer JAMES B. HAWKES
and Assistant Executive Vice
Secretary President,
RICHARD E. HOUGHTON Eaton Vance
Assistant Secretary Management
SAMUEL L. HAYES,
III
Jacob H. Schiff
Professor of
Investment
Banking, Harvard
University
Graduate School of
Business
Administration
NORTON H. REAMER
President and
Director, United
Asset
Management
Corporation
JOHN L. THORNDIKE
Director Fiduciary
Trust Company
JACK L. TREYNOR
Investment Adviser
and Consultant
----------------------------------------
CASH MANAGEMENT OFFICERS INDEPENDENT
PORTFOLIO M. DOZIER GARDNER TRUSTEES
24 Federal Street President, Trustee DONALD R. DWIGHT
Boston, MA 02110 JAMES B. HAWKES President, Dwight
Vice President, Partners, Inc.
Trustee Chairman,
H. DAY BRIGHAM, JR. Newspapers of
Vice President, New England, Inc.
Eaton Vance SAMUEL L. HAYES,
Management, Trustee III
MICHAEL B. TERRY Jacob H. Schiff
Vice President Professor of
and Portfolio Investment Banking,
Manager Harvard University
JAMES L. O'CONNOR Graduate School of
Treasurer Business
THOMAS OTIS Administration
Secretary NORTON H. REAMER
DOUGLAS C. MILLER President and
Assistant Treasurer Director, United
JANET E. SANDERS Asset
Assistant Treasurer Management
and Assistant Corporation
Secretary JOHN L. THORNDIKE
Director, Fiduciary
Trust Company
JACK L. TREYNOR
Investment Adviser
and Consultant
<PAGE>
INVESTMENT ADVISER OF
CASH MANAGEMENT PORTFOLIO
Boston Management and Research
24 Federal Street
Boston, MA 02110
ADMINISTRATOR OF EATON VANCE
CASH MANAGEMENT FUND
Eaton Vance Management
24 Federal Street
Boston, MA 02110
PRINCIPAL UNDERWRITER
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
CUSTODIAN
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
TRANSFER AND DIVIDEND
DISBURSING AGENT
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
(800) 262-1122
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its distribution plan,
sales charges and expenses. Please read the prospectus carefully before you
invest or send money.
EATON VANCE CASH MANAGEMENT FUND
24 FEDERAL STREET
BOSTON, MA 02110
T-CMSRC
EATON VANCE
CASH
MANAGEMENT
FUND
ANNUAL
SHAREHOLDER REPORT
DECEMBER 31, 1994
