<PAGE>
EATON VANCE SHORT-TERM TREASURY FUND
Supplement to the Prospectus
dated
May 1, 1994
Eaton Vance Short-Term Treasury Fund (the "Fund") revised its investment
objective and certain investment policies effective January 1, 1995. The
following replaces in its entirety the disclosure found in the Fund's prospectus
under the captions "The Fund", "The Fund's Investment Objective" and "How the
Fund Invests its Assets" (see pages 4 and 5 of the prospectus):
THE FUND'S INVESTMENT OBJECTIVE
The Fund is a no-load diversified mutual fund which continuously offers its
shares of beneficial interest to the public. The Fund's investment objective is
to seek current income and liquidity. The Fund invests exclusively in U.S.
Treasury obligations (bills, notes and bonds) with a remaining maturity of up to
five years and will maintain a dollar weighted average portfolio maturity of not
more than one year. The Fund's investment objective is a nonfundamental policy
which may be changed by Trustee vote. The Trustees, however, have indicated that
they intend to submit any material change in the investment objective to
shareholders for their approval. The Fund's investment adviser is Eaton Vance
Management (the "Investment Adviser"). The Fund provides shareholders ease of
investment and redemption by allowing direct purchases, check-writing, wire
purchases and redemptions, and access through broker-dealers. No commissions or
redemption fees are charged on Fund purchases or redemptions.
HOW THE FUND INVESTS ITS ASSETS
The Fund invests exclusively in U.S. Treasury obligations with a remaining
maturity of up to five years. U.S. Treasury obligations include the following
(which differ in their interest rates, maturities and times of issuance): U.S.
Treasury bills (maturities of one year or less), U.S. Treasury notes (maturities
of one to ten years) and U.S. Treasury bonds (generally maturities of greater
than ten years). The Fund invests in U.S. Treasury notes and bonds only to the
extent that their remaining maturity is five years or less. U.S. Treasury bills,
notes and bonds are supported by the full faith and credit of the United States.
-1-
Date: March 1, 1995 TYPS
<PAGE>
The Fund will maintain a dollar weighted average portfolio maturity of not
more than one year. In measuring the dollar weighted average portfolio maturity
of the Fund, the Fund will use the concept of "duration." Duration represents
the dollar weighted average maturity of expected cash flows (i.e., interest and
principal payments) on one or more debt obligations, discounted to their present
values. The duration of an obligation is always equal to or less than its stated
maturity and is related to the degree of volatility in the market value of the
obligation. Maturity measures only the time until a debt security provides its
final payment; it takes no account of the pattern of a security's payments over
time. Duration takes both interest and principal payments into account and,
thus, in the Investment Adviser's opinion, is a more accurate measure of a debt
security's longevity.
Investment Considerations
The net asset value of the Fund's shares will change in response to
interest rate fluctuations. When interest rates decline, the value of a
portfolio primarily invested in debt securities can be expected to rise.
Conversely, when interest rates rise, the value of a portfolio primarily
invested in debt securities can be expected to decline. However, a shorter
maturity is generally associated with a lower level of market value volatility.
Accordingly, the Investment Adviser expects that the net asset value of the
Fund's shares normally will fluctuate significantly less than that of a
longer-term bond fund since the dollar weighted average portfolio maturity of
the Fund at all times will not exceed one year.
The Fund has adopted certain fundamental investment restrictions and
policies which are enumerated in detail in the Statement of Additional
Information and which may not be changed unless authorized by a shareholder
vote. Except for such restrictions and policies, the investment policies of the
Fund are not fundamental policies and accordingly may be changed by the Trustees
without obtaining the approval of the Fund's shareholders. Among other
restrictions, the Fund may not, with respect to 75% of its total assets, invest
more than 5% of its total assets in the securities of a single issuer or
purchase more than 10% of the outstanding voting securities of an issuer (except
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities and except securities of other investment companies); or
invest 25% or more of its total assets in any single industry (provided there is
no limitation with respect to obligations issued or guaranteed by the U.S.
government or any of its agencies or instrumentalities).
-2-
<PAGE>
The shareholders have authorized the Fund to invest substantially all of its
assets in an open-end management investment company having substantially the
same investment policies and restrictions as the Fund. The Board of Trustees,
should it implement the new investment policy, would invest substantially all of
the assets of the Fund in the Short-Term Treasury Portfolio (the "Portfolio").
The Portfolio is a trust which, like the Fund, would be registered as an
open-end management investment company under the Investment Company Act of 1940.
It is anticipated that the Fund, by investing substantially all of its assets in
the Portfolio, would be in a position to realize certain benefits from an
increase in the size of the underlying investment portfolio. There can be no
assurance that these anticipated benefits will be realized. This policy has not
been implemented given the current asset size of the Fund and the lack of other
investment vehicles available to invest in the Portfolio. Conversion to this
two-tier investment structure may, however, become attractive in the future.
-3-
<PAGE>
EATON VANCE SHORT-TERM TREASURY FUND
A MUTUAL FUND SEEKING A HIGH LEVEL OF INCOME, CONSISTENT WITH SAFETY OF
PRINCIPAL AND MAINTENANCE OF LIQUIDITY, BY INVESTING IN U.S. TREASURY
OBLIGATIONS HAVING A REMAINING MATURITY OF LESS THAN ONE YEAR.
This Prospectus is designed to provide you with information you should know
before investing. Please retain this document for future reference. Shares of
the Fund are not deposits or obligations of, or guaranteed or endorsed by, any
bank or other insured depository institution, and are not Federally insured by
the Federal Deposit Insurance Corporation, the Federal Reserve Board or any
other government agency. Shares of the Fund involve investment risks, including
fluctuations in value and the possible loss of some or all of the principal
investment.
Eaton Vance Short-Term Treasury Fund (the "Fund") is a no-load,
continuously offered, diversified mutual fund which seeks a high level of
income, consistent with safety of principal and maintenance of liquidity, by
investing in U.S. Treasury obligations having a remaining maturity of less than
one year. The Fund has a 12b-1 Plan as described herein.
A Statement of Additional Information dated May 1, 1994 for the Fund, as
supplemented from time to time, has been filed with the Securities and Exchange
Commission and is incorporated herein by reference. This Statement of Additional
Information is available without charge from the Fund's Principal Underwriter,
Eaton Vance Distributors, Inc., 24 Federal Street, Boston, MA 02110 (telephone
(800) 225-6265). The Fund's Investment Adviser is Eaton Vance Management at the
same address.
- ------------------------------------------------------------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURI-
TIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR
HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROS-
PECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
- ------------------------------------------------------------------------------
<TABLE>
TABLE OF CONTENTS
<S> <C> <C> <C>
Shareholder and Fund Expenses ...................... 2 Reports to Shareholders ........................ 11
The Fund's Financial Highlights .................... 3 The Fund's Investment Adviser is Eaton Vance ... 11
The Fund ........................................... 4 How the Fund Values Its Shares ................. 12
The Fund's Investment Objective .................... 4 The Lifetime Investing Account/Distribution
How the Fund Invests Its Assets .................... 4 Options ...................................... 13
Distributions and Taxes ............................ 5 Eaton Vance Shareholder Services ............... 14
How to Buy Shares of the Fund ...................... 7 Distribution Plan .............................. 15
How to Redeem or Sell Fund Shares .................. 8 Performance and Yield Information .............. 16
The Fund is an Open-End Mutual Fund ................ 10 Backup Withholding ............................. 16
- ------------------------------------------------------------------------------
</TABLE>
PROSPECTUS DATED MAY 1, 1994
<PAGE>
SHAREHOLDER AND FUND EXPENSES
SHAREHOLDER TRANSACTION EXPENSES
Sales Charges Imposed on Purchases of Shares None
Sales Charges Imposed on Reinvested Distributions None
Sales Charges Imposed on Redemptions None
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
Investment Adviser Fee 0.17%*
Rule 12b-1 Distribution Expenses 0.25%
Other Expenses 0.18%
-----
Total Operating Expenses 0.60%
-----
-----
- ---------
*After reduction by Investment Adviser.
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
You would pay the following expenses
on a $1,000 investment, assuming (a)
5% annual return and (b) redemption
at the end of each period: $6 $19 $33 $75
Notes:
(1) The purpose of the above table is to assist investors in understanding the
various costs and expenses that investors in the Fund may bear directly or
indirectly. See "The Fund's Financial Highlights" and "The Fund's Investment
Adviser is Eaton Vance". The table and Example should not be considered a
representation of past or future expenses as the foregoing expenses are
based on operating expenses for the fiscal year ended December 31, 1993 and
have been calculated by assuming the reduction of the investment advisory
fee to 0.17%. Actual expenses may be greater or less than those shown in the
table and Example. Because the Fund makes payments under its Distribution
Plan adopted under Rule 12b-1, a long-term shareholder may pay more than the
economic equivalent of the maximum front-end sales charge permitted by a
rule of the National Association of Securities Dealers, Inc. See
"Distribution Plan." If no reduction was made, the annual Fund operating
expenses as a percentage of average net assets would be: Investment Adviser
Fee -- 0.27%, Rule 12b-1 Distribution Expenses -- 0.25%, Other Expenses --
0.18%, and Total Operating Expenses -- 0.70%; and the Example would read as
follows:
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
You would pay the following expenses
on a $1,000 investment, assuming (a)
5% annual return and (b) redemption
at the end of each period: $7 $22 $39 $87
(2) The Fund's monthly advisory fee has two components, a fee based on daily net
assets and a fee based on daily gross income, as set forth in the fee
schedule on page 10.
<PAGE>
THE FUND'S FINANCIAL HIGHLIGHTS
The following information should be read in conjunction with the financial
statements included in the Statement of Additional Information, which have been
included in reliance upon the report of Coopers & Lybrand, independent
accountants, as experts in accounting and auditing. The financial highlights for
the period from the date of the initial public offering, February 4, 1991 to
December 31, 1991, presented here, were audited by another auditor whose report
dated January 24, 1992, expressed an unqualified opinion on such financial
highlights.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
---------------------------------------
1993(1) 1992 1991++
------- ---- ------
<S> <C> <C> <C>
NET ASSET VALUE, beginning of year ....................... $54.30 $52.64 $50.18
----- ----- -----
INCOME FROM OPERATIONS:
Net investment income .................................. $ 1.34 $ 1.61 $ 2.15
Net realized and unrealized gain (loss) on investments . (0.06) 0.05 0.31
----- ----- -----
Total income from operations ......................... $ 1.28 $ 1.66 $ 2.46
----- ----- -----
NET ASSET VALUE, end of year ............................. $55.58 $54.30 $52.64
----- ----- -----
----- ----- -----
TOTAL RETURN ............................................. 2.36% 3.15% 4.90%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's omitted) ................ $1,743 $4,917 $100,976
Ratio of expenses to average net assets** .............. 0.60% 0.60% 0.60%*
Ratio of net investment income to average net assets** . 2.48% 3.01% 4.66%*
*Computed on an annualized basis.
**The expenses related to the operation of the Fund reflect a reduction
of the investment adviser fee. Had such action not been taken, net
investment income per share and the ratios would have been as
follows:
NET INVESTMENT INCOME PER SHARE .......................... $ 1.28 $ 1.56 $ 2.07
----- ----- -----
----- ----- -----
RATIOS (As a percentage of average net assets):
Expenses ............................................. 0.70% 0.70% 0.78%*
----- ----- -----
----- ----- -----
Net investment income ................................ 2.38% 3.11% 4.49%*
----- ----- -----
----- ----- -----
Note: Certain of the per share amounts have been computed using average shares
outstanding.
(1)Further information regarding the performance of the Fund is
contained in the Fund's annual report to shareholders which may be
obtained without charge by contacting the Fund's Principal
Underwriter, Eaton Vance Distributors, Inc.
++Period from the date of initial public offering, February 4, 1991, to
December 31, 1991. For the period from the start of business, January
11, 1991, to February 3, 1991, net investment income aggregating
$0.18 per share ($367) was earned by the Fund. The financial highlights
for the period were audited by the Fund's previous auditors.
</TABLE>
<PAGE>
THE FUND
Eaton Vance Short-Term Treasury Fund (the "Fund") is a diversified mutual fund
which continuously offers its shares of beneficial interest ("shares") to the
public. The Fund's investment objective is to seek a high level of income,
consistent with safety of principal and maintenance of liquidity, by investing
in U.S. Treasury obligations having a remaining maturity of less than one year.
The Fund's investment adviser is Eaton Vance Management ("Eaton Vance"). The
Fund provides shareholders ease of investment and redemption by allowing direct
purchases, check-writing, same-day wire purchases and redemptions, and access
through broker-dealers. No commissions or redemption fees are charged on Fund
purchases or redemptions. The Fund has been rated by a nationally recognized
statistical rating organization in the highest category for short-term funds.
THE FUND'S INVESTMENT OBJECTIVE
The Fund's investment objective is to seek a high level of income, consistent
with safety of principal and maintenance of liquidity, by investing in U.S.
Treasury obligations having a maturity of less than one year. The Fund's
investment objective is a nonfundamental policy which is changeable if
authorized by Trustee vote. The Trustees, however, have indicated that they
intend to submit any material change in the investment objective to shareholders
for their approval.
HOW THE FUND INVESTS ITS ASSETS
The Fund invests exclusively in U.S. Treasury bills, notes and bonds having a
remaining maturity of less than one year. U.S. Treasury instruments include the
following obligations which differ in their interest rates, maturities and times
of issuance: U.S. Treasury bills (maturities of one year or less), U.S. Treasury
notes (maturities of one to ten years) and U.S. Treasury bonds (generally
maturities of greater than ten years). The Fund intends to invest primarily in
U.S. Treasury bills. The Fund invests in U.S. Treasury notes and bonds only to
the extent that their remaining maturity is less than one year. U.S. Treasury
bills, notes and bonds, are supported by the full faith and credit of the United
States.
The Fund will maintain a dollar weighted average portfolio maturity of not
more than ninety days. In measuring the dollar weighted average portfolio
maturity of the Fund, the Fund will use the concept of "duration." Duration
represents the dollar weighted average maturity of expected cash flows (i.e.,
interest and principal payments) on one or more debt obligations, discounted to
their present values. The duration of an obligation is always equal to or less
than its stated maturity and is related to the degree of volatility in the
market value of the obligation. Maturity measures only the time until a debt
security provides its final payment; it takes no account of the pattern of a
security's payments over time. Duration takes both interest and principal
payments into account and, thus, in the investment adviser's opinion, is a more
accurate measure of a debt security's longevity.
INVESTMENT CONSIDERATIONS
The net asset value of the Fund's shares will change in response to
interest rate fluctuations. When interest rates decline, the value of a
portfolio primarily invested in debt securities can be expected to rise.
Conversely, when interest rates rise, the value of a portfolio primarily
invested in debt securities can be expected to decline. However, a shorter
maturity is generally associated with a lower level of market value volatility.
Accordingly, it is expected by Eaton Vance that the net asset value of theFund's
shares normally will fluctuate significantly less than that of a longer-term
bond fund since the dollar weighted average portfolio maturity at all times will
not exceed ninety days.
The Fund has adopted certain fundamental investment restrictions and
policies which are enumerated in detail in the Statement of Additional
Information and which may not be changed unless authorized by a shareholder
vote. Except for such restrictions and policies, the investment policies of the
Fund are not fundamental policies and accordingly may be changed by the Trustees
without obtaining the approval of the Fund's Shareholders. Among other
restrictions, the Fund may not, with respect to 75% of its total assets, invest
more than 5% of its total assets in the securities of a single issuer or
purchase more than 10% of the outstanding voting securities of an issuer (except
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities and except securities of other investment companies); or
invest 25% or more of its total assets in any single industry (provided there is
no limitation with respect to obligations issued or guaranteed by the U.S.
government or any of its agencies or instrumentalities).
At a meeting of shareholders of the Fund, the shareholders approved the
adoption of a new investment policy for the Fund and the addition of a
fundamental investment provision to permit the Fund to invest substantially all
of its assets in an open-end management investment company having substantially
the same investment policies and restrictions as the Fund. The Board of
Trustees, expects to implement the new investment policy, by investing
substantially all of the assets of the Fund in the Short-Term Treasury Portfolio
(the "Portfolio") in 1994. The Portfolio is a trust which, like the Fund, will
be registered as an open-end management investment company under the Investment
Company Act of 1940. It is anticipated that the Fund, by investing substantially
all of its assets in the Portfolio, would be in a position to realize certain
benefits from an increased size of the underlying investment portfolio. There
can be no assurance that these anticipated benefits will be realized.
DISTRIBUTIONS AND TAXES
The Fund has elected to be treated, has qualified and intends to continue to
qualify each year as a regulated investment company under the Internal Revenue
Code (the "Code"). Accordingly, the Fund intends to satisfy certain requirements
relating to sources of its income and diversification of its assets and to
distribute a sufficient amount of its investment company taxable income so as to
effect such qualification. The Fund may also distribute part or all of its net
investment income and realized capital gains in accordance with the timing
requirements imposed by the Code, so as to reduce or avoid Federal income or
excise tax to the Fund.
Under the Code, the redemption or exchange of shares of a regulated
investment company would normally result in capital gain or loss if such shares
are held as capital assets. However, the Omnibus Budget Reconciliation Act of
1993, signed into law on August 10, 1993, adds new Section 1258 to the Code,
which recharacterizes capital gain from the disposition or other termination of
a position held as part of a "conversion transaction" as ordinary income to the
extent of an imputed income amount based on a deemed interest computation.
Section 1258 applies to conversion transactions entered into after April 30,
1993. A conversion transaction is defined to include, among other things, a
transaction which is marketed or sold as producing a capital gain if
substantially all of a taxpayer's expected return from the transaction is
"attributable to the time value of the taxpayer's net investment in such
transaction." The Secretary of the Treasury is also authorized to specify other
transactions to be included in the definition of a conversion transaction in
regulations to be effective when promulgated by the Secretary. Section 1258
contains many ambiguities and its scope is unclear; it may be clarified or
refined in future regulations or other official pronouncements. Until further
guidance is issued, it is unclear whether a purchase and subsequent disposition
of Fund shares would be treated as a conversion transaction under Section 1258.
Investors should consult their own tax advisers concerning whether or not
Section 1258 may apply to their transactions in Fund shares.
The Fund distributes its net investment income and capital gains to
shareholders as dividends annually to the extent required for the Fund to
qualify as a regulated investment company under the Code and generally avoid
Federal income or excise tax to the Fund. Under current law, the Fund intends on
its tax return to treat as a distribution of investment company taxable income
and net capital gain the portion of redemption proceeds paid to redeeming
shareholders that represents the redeeming shareholders' portion of the Fund's
undistributed investment company taxable income and net capital gain. This
practice, which involves the use of equalization accounting, will have the
effect of reducing the amount of income and gains that the Fund is required to
distribute as dividends to shareholders in order for the Fund to avoid Federal
income and excise tax. This practice may also reduce the amount of distributions
required to be made to nonredeeming shareholders and defer the recognition of
taxable income by such shareholders. However, since the amount of any
undistributed income will be reflected in the value of the Fund's shares, the
total return on a shareholder's investment will not be reduced as a result of
the Fund's distribution policy. Investors who purchase shares shortly before the
record date of a distribution will pay the full price for the shares and then
receive some portion of the price back as a taxable distribution.
Capital gains, if any, realized by the Fund on sales of investments during
the Fund's taxable year, which ends on December 31, will be offset by any
capital loss carryovers and will usually be distributed after the close of such
taxable year, in compliance with the distribution requirements of the Internal
Revenue Code. Distributions of net long-term capital gains included therein are
taxable to shareholders as such, whether paid in cash or additional shares of
the Fund and regardless of the length of time Fund shares have been owned by the
shareholder. Distributions of net short-term capital gains included therein are
taxable to shareholders as ordinary income, whether paid in cash or additional
shares of the Fund. Certain distributions declared in October, November or
December and paid the following January will be taxable to shareholders as if
received on December 31 of the year in which they are declared.
Annually, shareholders will receive one or more Forms 1099 to assist in the
reporting on their Federal and state income tax returns the prior calendar
year's distributions, proceeds from the redemption or exchange of Fund shares,
and Federal income tax (if any) withheld by the Fund's Transfer Agent.
As a regulated investment company under the Code, the Fund does not pay
Federal income or excise taxes to the extent that it distributes to shareholders
its net investment income and net realized capital gains in accordance with the
timing requirements imposed by the Code. For the taxable year ended December 31,
1993 the Fund did not incur any Federal income or excise tax although it may
incur such taxes in the future if management determines that retention of some
income or gains is appropriate. Under current law, provided that the Fund
qualifies as a regulated investment company for Federal income tax purposes, the
Fund is not liable for any income, corporate excise or franchise tax in the
Commonwealth of Massachusetts. The Fund incurred no state tax liability in
respect of its taxable year ended December 31, 1993.
STATE, LOCAL AND FOREIGN TAXES
Distributions of the Fund which are derived from interest on obligations of
the U.S. Government will be exempt from personal and/or corporate income taxes
in most states. The Fund will inform shareholders of the proportion of its
distributions which are derived from interest on such obligations. Shareholders
are urged to consult their tax advisers regarding the proper treatment of such
portion of their distributions for state and local income tax purposes and with
respect to state, local or foreign tax consequences of investing in the Fund.
HOW TO BUY SHARES OF THE FUND
Shares of the Fund are sold without a sales charge at the net asset value next
determined after the receipt of a purchase order as described below. The minimum
initial purchase of shares is $5,000. Once an account has been established the
investor may make additional investments of $50 or more at any time. The Fund
reserves the right to reject any order for the purchase of its shares or to
limit or suspend, without prior notice, the offering of its shares. See "Eaton
Vance Shareholder Services" below.
The initial net asset value at which shares were offered was $50 per share.
FUND SHARES MAY BE PURCHASED IN FOLLOWING WAYS:
* PURCHASES THROUGH AUTHORIZED FIRMS. Investors may purchase shares of the
Fund through certain financial service firms ("Authorized Firms") at the
net asset value per share of the Fund next determined after such
purchase. Pursuant to its Distribution Agreement with Eaton Vance
Distributors, Inc. ("the Principal Underwriter" or "EVD"), 24 Federal
Street, Boston, MA 02110, a wholly-owned subsidiary of Eaton Vance, Eaton
Vance Government Obligations Trust engages EVD to distribute the Fund's
shares on a "best efforts" basis through Authorized Firms. EVD will
furnish the names of Authorized Firms to an investor upon request.
Authorized Firms include financial service firms with whom the Principal
Underwriter has agreements.
* PURCHASES BY WIRE. Investors may also purchase shares by requesting their
bank to transmit immediately available funds (Federal Funds) by wire to:
ABA #011001438, Federal Reserve Bank of Boston, A/C Investors Bank &
Trust Company, Further Credit Eaton Vance Short-Term Treasury Fund, A/C #
[Insert your account number -- see below].
Upon making an initial investment by wire, you must first telephone
the Order Department of the Fund (800-225-6265, extension 3) to advise of
your action and to be assigned an account number. If you neglect to make
the telephone call, it may not be possible to process your order
promptly. In addition, the Account Application form which accompanies
this Prospectus should be promptly forwarded to the The Shareholder
Services Group, Inc., BOS725, P.O. Box 1559, Boston, MA 02104.
Additional investments may be made at any time through the wire
procedure described above. The Fund Order Department must be immediately
advised by telephone (800-225-6265, extension 3) of each transmission of
funds by wire.
Purchases received by wire before noon on any business day are
invested at the net asset value determined at noon on that day. Those
received by wire between noon and 4:00 P.M. on any business day are
invested at the net asset value determined at 4:00 P.M. the same day.
* PURCHASES BY MAIL. For an initial purchase by mail, the Account
Application form which accompanies this Prospectus should be completed,
signed and mailed with a check, Federal Reserve Draft, or other
negotiable bank draft, drawn on a U.S. bank and payable in U.S. dollars,
to the order of Eaton Vance Short-Term Treasury Fund to the Fund's
Transfer Agent as follows: The Shareholder Services Group, Inc., BOS725,
P.O. Box 1559, Boston, MA 02104.
Additional purchases may be made at any time by mailing a check,
Federal Reserve Draft, or other negotiable bank draft, drawn on a U.S.
bank and payable in U.S. dollars, to the order of Eaton Vance Short-Term
Treasury Fund to the Fund's Transfer Agent at the above address. The
account to which the subsequent purchase is to be credited should be
identified as to the name(s) of the registered owner(s) and by account
number.
* OTHER PURCHASE PROCEDURES. Transactions in the U.S. Treasury obligations
in which the Fund invests require immediate settlement in Federal Funds.
The Fund intends at all times to be as fully invested as is feasible in
order to maximize its earnings. Accordingly, purchase orders will be
executed at the net asset value next determined after their receipt by
the Fund only if the Fund has received payment in cash or in Federal
Funds. If remitted in other than the foregoing manner, such as by money
order or personal check, purchase orders will be executed as of the close
of business on the second Boston business day after receipt. Information
on how to procure a Federal Reserve Draft or to transmit Federal Funds by
wire is available at your bank. The bank may charge for these services.
In connection with employee benefit or other continuous group purchase
plans under which the average initial purchase by a participant of the plan is
$5,000 or more, the Fund may accept initial investments of less than $5,000 on
the part of an individual participant. In the event a shareholder who is a
participant of such a plan terminates his participation in the plan, his shares
will be transferred to a regular individual account. However, such account will
be subject to the right of redemption by the Fund as described below under "How
to Redeem or Sell Fund Shares."
HOW TO REDEEM OR SELL FUND SHARES
A SHAREHOLDER MAY REDEEM FUND SHARES BY DELIVERING TO THE SHAREHOLDER SERVICES
GROUP, INC., BOS725, P.O. BOX 1559, BOSTON, MA 02104, EITHER THE CERTIFICATES,
OR A STOCK POWER, if no certificates have been issued, in good order for
transfer, with a separate written request for redemption. Payment will normally
be made by check within one business day after receipt of the redemption request
and must, in any event, be made within seven days of such receipt, unless
expedited payment has been authorized and requested by the shareholder. (See
"Redemption by Wire" below). The redemption price will be based on the net asset
value next computed after such delivery. Good order means that the certificates
or stock power must be endorsed by the record owner(s) exactly as the shares are
registered and the signature(s) must be guaranteed by a member of either the
Securities Transfer Association's STAMP program or the New York Stock Exchange's
Medallion Signature Program, or certain banks, savings and loan institutions,
credit unions, securities dealers, securities exchanges, clearing agencies and
registered securities associations as required by a regulation of the Securities
and Exchange Commission (the "Commission") and acceptable to The Shareholder
Services Group, Inc. In addition, in some cases, good order may require the
furnishing of additional documents such as where shares are registered in the
name of a corporation, partnership or fiduciary.
The right to redeem can be suspended and the payment of the redemption price
deferred when the New York Stock Exchange is closed (other than for customary
weekend and holiday closings), during periods when trading on the Exchange is
restricted as determined by the Commission, or during any emergency as
determined by the Commission which makes it impracticable for the Fund to
dispose of its securities or value its assets, or during any other period
permitted by order of the Commission for the protection of investors.
* REDEMPTIONS BY WIRE. Shareholders who have given authorization in advance
may request that redemption proceeds of $1,000 or more be wired directly
to their bank account. This request may generally be made by letter or
telephone to the Fund Order Department at 800-225-6265, extension 3.
However, shareholders holding certificates for shares in the Fund must
return such certificates in properly endorsed form requesting redemption
prior to being eligible to have redemption proceeds wired directly to
their bank account.
To use this service a shareholder must designate his bank and bank
account number on the Account Application form used to open his account.
The bank designated may be any bank in the United States.
Proceeds of redemption requests received before noon on any business
day will be wired that same day, if so requested by the shareholder.
Redemption requests received between noon and 4:00 p.m. will be processed
at 4:00 p.m. and the redemption proceeds will be wired on the next
business day. The shareholder may be required to pay any costs of such
transaction; however, no such costs are currently charged. The Fund will
limit this method of payment to shares purchased with cash, Federal
Reserve Draft, by wire with Federal Funds, or by other means when payment
for shares purchased has been assured. The Fund reserves the right at any
time to suspend or terminate the expedited payment procedure; however,
the Fund would provide reasonable advance notice (in no event less than
30 days) of its intention to suspend or terminate this procedure. The
Fund will process redemption instructions received by telephone if the
shareholder has authorized telephone redemptions when completing the
Account Application form. However, the Fund will not process redemption
requests by telephone if share certificates have been issued to such
shareholders. The responsibility for the authenticity of redemption
instructions received by telephone is discussed under "Eaton Vance
Shareholder Services -- Exchange Privilege". (See "How the Fund Values
Its Shares").
* REPURCHASE THROUGH AUTHORIZED FIRMS. To sell shares at their net asset
value through an Authorized Firm (a repurchase), a shareholder can place
a repurchase order with the Firm, who may charge a fee. Net asset value
is calculated on the day the Firm places the order with EVD, as the
Fund's agent, if the Firm receives the order prior to the close of
regular trading on the New York Stock Exchange and communicates it to EVD
on the same day before EVD closes. It is the Firm's responsibility to
promptly transmit repurchase orders to EVD.
* REDEMPTIONS BY CHECK. To sell shares by writing a check, shareholders
holding shares for which certificates have not been issued may appoint
Boston Safe Deposit and Trust Company ("Boston Safe") their agent and may
request on the Account Application form that Boston Safe provide them
with special forms of checks drawn on Boston Safe. These checks may be
made payable by the shareholder to the order of any person in any amount
of $500 or more. When a check is presented to Boston Safe for payment,
the number of full and fractional shares required to cover the amount of
the check will be redeemed from the shareholder's account by Boston Safe
as the shareholder's agent. Through this procedure the shareholder will
continue to be entitled to distributions paid on his shares up to the
time the check is presented to Boston Safe for payment. If the amount of
the check is greater than the value of the shares held in the
shareholder's account, for which the Fund has collected payment, the
check will be returned and the shareholder may be subject to extra
charges.
The shareholder will be required to execute signature cards and will
be subject to Boston Safe's rules and regulations governing such checking
accounts. There is no charge to shareholders for this service. This
service may be terminated or suspended at any time by the Fund or Boston
Safe.
OTHER REDEMPTION PROCEDURES. If shares were recently purchased by check,
the proceeds of redemption or repurchase will not be sent until the check
(including a certified or cashier's check) received for the shares purchased has
cleared. Payment for shares tendered for redemption or repurchase may result in
a delay of more than seven days when the purchase check has not yet cleared, but
the delay (for up to fifteen days from the purchase date) will be no longer than
required to verify that the purchase check has cleared. The value of shares
redeemed or repurchased may be more or less than their cost depending on
portfolio performance during the period they were owned. Redemptions and
repurchases of shares are taxable events on which shareholders may realize a
gain or a loss.
THE FUND IS AN OPEN-END MUTUAL FUND
EATON VANCE SHORT-TERM TREASURY FUND IS A SERIES OF EATON VANCE GOVERNMENT
OBLIGATIONS TRUST (THE "TRUST"), A BUSINESS TRUST ESTABLISHED UNDER
MASSACHUSETTS LAW PURSUANT TO A DECLARATION OF TRUST DATED MAY 7, 1984, AS
AMENDED. THE TRUST IS A MUTUAL FUND -- AN OPEN-END MANAGEMENT INVESTMENT
COMPANY. The Trustees of the Trust are responsible for the overall management
and supervision of the Fund's affairs. The Fund has one class of shares of
beneficial interest, an unlimited number of which may be issued. Each share
represents an equal proportionate beneficial interest in the Fund. When issued
and outstanding, the shares are fully paid and nonassessable by the Trust and
redeemable as described under "How to Redeem or Sell Fund Shares". Shareholders
are entitled to one vote for each full share held. Fractional shares may be
voted proportionately. Shares have no preemptive or conversion rights and are
freely transferable. Upon liquidation of the Fund, shareholders are entitled to
share pro rata in the net assets of the Fund available for distribution to
shareholders.
As permitted by Massachusetts law, there will normally be no meetings of
shareholders for the purpose of electing Trustees unless and until such time as
less than a majority of the Trustees holding office have been elected by
shareholders. In such an event the Trustees then in office will call a
shareholders' meeting for the election of Trustees. Except for the foregoing
circumstances and unless removed by action of the shareholders in accordance
with the Trust's by-laws, the Trustees shall continue to hold office and may
appoint successor Trustees.
The by-laws provide that no person shall serve as a Trustee if shareholders
holding two-thirds of the outstanding shares have removed him from that office
either by a written declaration filed with the Trust's custodian or by votes
cast at a meeting called for that purpose. The by-laws further provide that
under certain circumstances the shareholders may call a meeting to remove a
Trustee and that the Trust is required to provide assistance in communicating
with shareholders about such a meeting.
REPORTS TO SHAREHOLDERS
THE FUND WILL ISSUE TO ITS SHAREHOLDERS SEMI-ANNUAL AND ANNUAL REPORTS
CONTAINING FINANCIAL STATEMENTS. Financial statements included in annual reports
are audited by the Fund's independent accountants. Shortly after the end of each
calendar year, the Fund will furnish all shareholders with information necessary
for preparing Federal and state income tax returns.
THE FUND'S INVESTMENT ADVISER IS EATON VANCE
THE FUND ENGAGES EATON VANCE MANAGEMENT ("EATON VANCE") AS ITS INVESTMENT
ADVISER. EATON VANCE, ITS AFFILIATES AND ITS PREDECESSOR COMPANIES HAVE BEEN
MANAGING ASSETS OF INDIVIDUALS AND INSTITUTIONS SINCE 1924 AND MANAGING
INVESTMENT COMPANIES SINCE 1931. Eaton Vance's expertise in the management of
fixed-income securities ranges from government obligations, high-grade corporate
and municipal securities and bank loan interests to higher yielding instruments.
Eaton Vance, acting under the general supervision of the Trustees of the
Trust, will carry out the investment and reinvestment of the assets of the Fund,
will furnish continuously an investment program with respect to the Fund, will
determine which securities should be purchased, sold or exchanged, and will
implement such determinations. Under its investment advisory agreement with the
Trust on behalf of the Fund, Eaton Vance will receive a monthly advisory fee
equal to the aggregate of
(a) a daily asset based fee computed by applying the annual asset rate
applicable to that portion of the total daily net assets in each
Category as indicated below, plus
(b) a daily income based fee computed by applying the daily income rate
applicable to that portion of the total daily gross income (which
portion shall bear the same relationship to the total daily gross
income on such day as that portion of the total daily net assets in the
same Category bears to the total daily net assets on such day) in each
Category as indicated below:
<TABLE>
<CAPTION>
ANNUAL DAILY
CATEGORY DAILY NET ASSETS ASSET RATE INCOME RATE
-------- ---------------- ---------- -----------
<S> <C> <C> <C> <C>
1 up to $20 million ........................................ 0.150% 1.50%
2 $20 million but less than $40 million .................... 0.200% 2.00%
3 $40 million but less than $500 million ................... 0.250% 2.50%
4 $500 million but less than $1 billion .................... 0.225% 2.25%
5 $1 billion but less than $1.5 billion .................... 0.200% 2.00%
6 $1.5 billion but less than $2 billion .................... 0.190% 1.90%
7 $2 billion but less than $3 billion ...................... 0.180% 1.80%
8 $3 billion and over ...................................... 0.170% 1.70%
</TABLE>
Total daily gross income is the total investment income, exclusive of capital
gains and losses and before deduction of expenses, earned each day by the Fund.
As at December 31, 1993, the Fund had net assets of $1,743,411. For the
fiscal year ended December 31, 1993, Eaton Vance would have earned, absent a fee
reduction, advisory fees of $198,724 (equivalent to 0.27% of the Fund's average
net assets) for such period. To enhance the net income of the Fund, Eaton Vance
made a reduction of its fee in the amount of $73,896.
Eaton Vance also furnishes for the use of the Fund office space and all
necessary office facilities, equipment and clerical personnel, and investment
advisory, statistical and research facilities and has arranged for certain
members of the Eaton Vance organization to serve without salary as officers or
Trustees of the Trust. The Fund is responsible for the payment of all of its
expenses other than those expressly stated to be payable by Eaton Vance under
the Investment Advisory Agreement.
Most of the obligations which the Fund will acquire for its portfolio will
be normally traded on a net basis (without commission) through broker-dealers
and banks acting for their own account. Such firms attempt to profit from such
transactions by buying at the bid price and selling at the higher asked price of
the market, and the difference is customarily referred to as the spread. In
selecting firms which will execute Fund portfolio transactions Eaton Vance
judges their professional ability and quality of service and uses its best
efforts to obtain execution at prices which are advantageous to the Fund and at
reasonably competitive spreads. Subject to the foregoing, Eaton Vance may
consider sales of shares of the Fund or of other investment companies sponsored
by Eaton Vance as a factor in the selection of firms to execute portfolio
transactions.
Michael B. Terry has acted as the Portfolio Manager since January, 1991.
Mr. Terry has been a Vice President of Eaton Vance since 1984 and an employee
since 1984.
EATON VANCE OR ITS AFFILIATES ACT AS INVESTMENT ADVISER TO INVESTMENT
COMPANIES AND VARIOUS INDIVIDUAL AND INSTITUTIONAL CLIENTS WITH ASSETS UNDER
MANAGEMENT OF OVER $16 BILLION. Eaton Vance is a wholly-owned subsidiary of
Eaton Vance Corp. ("EVC"), a holding company. EVC through its subsidiaries and
affiliates, engages in investment management and marketing activities, fiduciary
and banking services, oil and gas operations, real estate investment, consulting
and management, and development of precious metals properties.
HOW THE FUND VALUES ITS SHARES
THE FUND VALUES ITS SHARES TWICE EACH DAY THE NEW YORK STOCK EXCHANGE (THE
"EXCHANGE") IS OPEN FOR TRADING, AT NOON AND AS OF THE CLOSE OF REGULAR TRADING
ON THE EXCHANGE. The Fund's net asset value per share is determined by Investors
Bank & Trust Company (as agent for the Fund) ("IBT"), in the manner authorized
by the Trustees of the Trust. Net asset value is computed by dividing the value
of the Fund's total assets, less its liabilities, by the number of shares
outstanding. Debt securities (other than short-term obligations maturing in
sixty days or less), including listed securities and securities for which price
quotations are available, will normally be valued on the basis of market
valuations furnished by a pricing service. Short-term obligations and money
market securities maturing in sixty days or less are valued at amortized cost,
which approximates market. Other assets are valued at fair value using methods
determined in good faith by the Trustees. The net asset value so determined is
effective for orders received by Authorized Firms prior to the price
determination (which for this purpose shall be deemed to have been made at noon
and as of the close of regular trading on the New York Stock Exchange --
normally 4:00 p.m. New York time, except under extraordinary circumstances) and
communicated by the Authorized Firm to the Principal Underwriter (see "How to
Buy Shares of the Fund") at noon or prior to the close of the Principal
Underwriter's business day. It is the Authorized Firm's responsibility to
transmit orders promptly to the Principal Underwriter. Eaton Vance Corp. owns
77.3% of the outstanding stock of IBT, the Fund's custodian.
THE LIFETIME INVESTING ACCOUNT/DISTRIBUTION OPTIONS
AFTER AN INVESTOR MAKES AN INITIAL PURCHASE OF FUND SHARES, THE FUND'S TRANSFER
AGENT, THE SHAREHOLDER SERVICES GROUP, INC., WILL SET UP A LIFETIME INVESTING
ACCOUNT FOR THE INVESTOR ON THE FUND'S RECORDS. This account is a complete
record of all transactions between the investor and the Fund which at all times
shows the balance of shares owned. The Fund will not issue share certificates
except upon request. However, certificates may not be issued to shareholders who
have authorized redemption by telephone or who have requested redemptions by
check.
Each time a transaction takes place in a shareholder's account, the
shareholder will receive a statement showing complete details of the transaction
and the current share balance in the account. (Under certain investment plans,
statements may be sent only quarterly). The Lifetime Investing Account also
permits a shareholder to make additional investments of $50 or more. Inquiries
regarding a shareholder's account should identify the shareholder's name and
account number and be addressed in writing to The Shareholder Services Group,
Inc., BOS725, P.O. Box 1559, Boston, MA 02104.
Any questions concerning a shareholder's account or services available may
be directed by telephone to Eaton Vance Shareholder Services at 800-225-6265,
extension 2.
THE FOLLOWING DISTRIBUTION OPTIONS WILL BE AVAILABLE TO ALL LIFETIME
INVESTING ACCOUNTS and may be changed as often as desired by written notice to
the Fund's dividend disbursing agent, The Shareholder Services Group, Inc.,
BOS725, P.O. Box 1559, Boston, MA 02104. The currently effective option will
appear on each confirmation statement.
Share Option -- Dividends and capital gains in additional shares. This
option will be assigned if no other option is specified.
Income Option -- Dividends in cash; capital gains in additional shares.
Cash Option -- Dividends in cash; capital gains in cash.
Under the Share Option, dividends will be reinvested (net of any
withholding required under the Federal income tax laws) on the payment date in
additional full and fractional shares at net asset value as of the record date.
Under Share and Income Options, all distributions from capital gains
(whether long or short-term) will be paid in additional full and fractional
shares at the net asset value as of the record date of each such distribution,
net of any withholding required under the Federal income tax laws.
If the Income Option or Cash Option has been selected, dividend and/or
capital gains distribution checks which are returned by the United States Postal
Service as not deliverable or which remain uncashed for six months or more will
be reinvested in Fund shares at the then current net asset value. Furthermore,
the distribution option on the account will be automatically changed to the
Share Option until such time as the shareholder selects a different option.
"STREET NAME" ACCOUNTS. A beneficial owner of shares who holds his shares
in a "street name" account at an investment firm is reminded that all
recordkeeping, transaction processing and payments of distributions to his
account will be done by the firm holding the shares, and not by the Fund or its
Transfer Agent. Year end forms required for tax purposes (1099-DIV, 1099-B,
etc.) are also provided by that investment firm. The Fund will have no record of
transactions for a beneficial owner of shares while shares held for him are in a
"street name" account. Requests for any such information regarding the shares or
the account should be directed to that investment firm.
Transactions in a "street name" account will be reflected on the records of
the Fund only upon the instructions of the investment firm which is the record
owner of the shares. A beneficial owner of shares in a "street name" account
should contact his investment firm representative if he wants to purchase or
redeem shares or make other changes in his account. A transfer of a "street
name" account at one investment firm to a "street name" account at another firm
may require approval by the transferee firm. There are no fees charged by the
Fund for an account transfer, but transfer fees may be charged by the investment
firms.
If a beneficial owner wishes to transfer shares from a "street name"
account to another firm's "street name" account, he should instruct the firm
currently holding the "street name" account to provide information concerning
the costs and purchase dates of all shares purchased in the account and the
number of shares acquired through reinvestment of distributions and remaining in
the account to the transferee firm in a form satisfactory to the Fund. If the
transfer is to an account to be registered in the name of the owner on the
records of the Fund, this information must be furnished to the Fund's Transfer
Agent in a form satisfactory to the Fund. The furnishing of this information is
esential to provide an historical investment record of all shares owned.
Before establishing a "street name" account with an investment firm, or
transfering the account to another investment firm, an investor wishing to
reinvest distributions should determine whether the firm which will hold the
shares allows reinvestment of distributions in "street name" accounts.
EATON VANCE SHAREHOLDER SERVICES
THE FOLLOWING SERVICES, ARE VOLUNTARY, INVOLVE NO EXTRA CHARGE, AND MAY BE
CHANGED OR DISCONTINUED WITHOUT PENALTY AT ANY TIME. Full information on each of
the services described below and an application, where required, is available
from Authorized Firms or the Principal Underwriter. The cost of administering
such services for the benefit of shareholders who participate in them is borne
by the Fund as an expense to all shareholders.
INVEST-BY-MAIL -- FOR PERIODIC SHARE ACCUMULATION: Once the $5,000 minimum
investment has been made, checks of $50 or more payable to the order of Eaton
Vance Short-Term Treasury Fund may be mailed directly to The Shareholder
Services Group, Inc., BOS725, P.O. Box 1559, Boston, MA 02104 at any time --
whether or not dividends are reinvested. The name of the shareholder, and his
account number should accompany each investment.
EXCHANGE PRIVILEGE: You may currently exchange your Fund shares for shares of
Eaton Vance Cash Management Fund at net asset value. An exchange must involve
shares with an aggregate net asset value of $5,000 or more. The prospectus for
Eaton Vance Cash Management Fund describes its investment objectives and
policies, and shareholders should obtain a prospectus and consider these
objectives and policies carefully before requesting an exchange. The exchange
privilege may be changed of discontinued without penalty. Shareholders will be
given sixty (60) days notice prior to any termination or material amendment of
the exchange privilege. This offer is available only in states where shares of
Cash Management Fund may be legally sold.
The Shareholder Services Group, Inc. makes exchanges at the next
determination of net asset value after receiving an exchange request in good
order (see "How to Redeem or Sell Fund Shares"). The Shareholder Services Group,
Inc. will require additional documentation if shares are registered in the name
of a corporation, partnership or fiduciary. Consult The Shareholder Services
Group, Inc. for additional information concerning the exchange privilege.
Telephone exchanges are also accepted if the exchange involves shares on
deposit with The Shareholder Services Group, Inc. and the investor has not
disclaimed in writing the use of the privilege. To effect such exchanges, call
The Shareholder Services Group, Inc. at 800-262-1122 or, within Massachusetts,
617-573-9403, Monday through Friday, 9:00 a.m. to 4:00 p.m. (Eastern Standard
Time). All such telephone exchanges must be registered in the same name(s) and
with the same address as are registered with Eaton Vance Cash Management Fund.
Neither the Fund, the Principal Underwriter nor The Shareholder Services Group,
Inc. will be responsible for the authenticity of exchange instructions received
by telephone; provided that reasonable procedures to confirm that instructions
communicated are genuine have been followed. Telephone instructions will be tape
recorded. In times of drastic economic or market changes, a telephone exchange
may be difficult to implement.
For Federal and state income tax purposes, an exchange is a sale which may
result in realization of a gain or loss, depending on the cost of the shares
which you exchange. Tax-Sheltered Retirement Plans: Shares of the Fund are
available for purchase in connection with the following tax-sheltered retirement
plans:
--Pension and Profit Sharing Plans for self-employed individuals,
corporations and non-profit organization;
--Individual Retirement Account Plans for individuals and their non-
employed spouses.
--403(b) Retirement Plans for employees of public school systems,
hospitals, colleges and other non-profit organizations meeting certain
requirements of the Internal Revenue Code.
Detailed information concerning these plans, including certain exceptions
to minimum investment requirements, and copies of the plans are available from
the Principal Underwriter. This information should be read carefully and
consultation with an attorney or tax adviser may be advisable. The information
sets forth the service fee charged for retirement plans and describes the
Federal income tax consequences of establishing a plan. Under these plans, all
distributions will be automatically reinvested in additional shares.
DISTRIBUTION PLAN
In addition to advisory fees and other expenses, the Fund pays for certain
expenses pursuant to a Distribution Plan (the "Plan") designed to meet the
requirements of Rule 12b-1 under the Investment Company Act of 1940. The Plan
provides that the Fund will pay the Principal Underwriter a quarterly
distribution fee equal to .25% on an annual basis of the Fund's average daily
net assets. The Principal Underwriter may pay up to the entire amount of the
distribution fee to Authorized Firms (including banking institutions) and their
employees and to employees of the Principal Underwriter and its affiliates for
providing distribution services to the Fund or services to shareholders. The
Principal Underwriter may also pay all or a portion of such distribution fee to
employees of the Principal Underwriter or any of its affiliates for providing
any of such services. During the fiscal year ended December 31, 1993, the Fund
paid $181,641 in distribution fees to the Principal Underwriter and the
Principal Underwriter in turn paid $172,117 of this amount to Authorized Firms
or others as described above and used the balance of $9,524 to compensate
employees of the Principal Underwriter and its affiliates and to defray part of
its expenses associated with distributing shares of the Fund.
To the extent that the distribution fee is not paid to such Firms and other
persons, the Principal Underwriter may use such fee for its expenses of
distribution of Fund shares. If such fees exceed its expenses, the Principal
Underwriter will realize a profit from these arrangements.
Rule 12b-1 is broadly worded and currently permits mutual funds, such as
the Fund, to finance distribution activities and bear expenses associated with
the distribution of their shares. While the Rule does not describe in detail the
specific types of activities which may be financed or expenses which may be
borne by a fund, it currently states that such permissible activities include
the compensation of underwriters, dealers and sales personnel. Accordingly, the
Distribution Plan adopted by the Fund is designed to compensate the Principal
Underwriter and the Authorized Firms through which the Fund's shares are
distributed.
PERFORMANCE AND YIELD INFORMATION
From time to time, the Fund may advertise its yield and/or average annual total
return. The yield for the Fund will be calculated by dividing the net investment
income per share during a recent 30-day period by the maximum offering price per
share (net asset value) of the Fund on the last day of the period and
annualizing the resulting figure. Yield should not be considered the equivalent
of dividends. The Fund's average annual total return is determined by computing
the average annual percentage change in value of $1,000 invested at the maximum
public offering price (net asset value) for specified periods ending with the
most recent calendar quarter, assuming reinvestment of all distributions. The
total return calculation assumes a complete redemption of the investment. The
Fund may also publish annual and cumulative total return figures from time to
time.
The investment results of the Fund will fluctuate over time, and any
presentation of the Fund's yield or total return for any prior period should not
be considered as a representation of what an investment may earn or what an
investor's yield or total return may be in any future period.
BACKUP WITHHOLDING
PROCEEDS OF VARIOUS DISTRIBUTIONS
It is required under Federal income tax laws that taxable distributions and
proceeds of redemptions and exchanges be reported to the Internal Revenue
Service ("IRS"). It is also required that 31% of taxable distributions and
certain proceeds of redemption requests received directly from shareholders be
withheld if (i) a correct and certified Taxpayer Identification Number (TIN) is
not provided for your account, (ii) you fail to certify that you have not been
notified by the IRS that you underreported taxable interest or dividend payments
of (iii) the Fund is notified by the IRS (or a broker) that the TIN provided is
incorrect or you are otherwise subject to backup withholding. Amounts withheld
and forwarded to the IRS can be credited as a payment of tax when completing
your Federal income tax return.
For most individual taxpayers, the TIN is the social security number. An
investor may furnish the Transfer Agent with such number and the required
certifications by completing and sending to the Transfer Agent either the Fund's
Account Application form which accompanies this prospectus or IRS Form W-9.
Special rules apply for certain accounts. For example, for an account
established under the Uniform Gift to Minors Act, the TIN of the minor should be
furnished.
TO APPLY FOR A TIN
If you do not have a TIN or do not know your number, you may apply for one
using Form SS-5, "Application for a Social Security Card" or Form SS-4,
"Application for Employer Identification Number." These forms are available at
local offices of the Social Security Administration or the IRS. We will forward
a certification form to you which you should use to notify us of your number.
Withholding may apply to payments made to your account before we receive your
certified number.
EXEMPT RECIPIENTS AND FOREIGN PAYEES
Exempt recipients should provide their TIN and underline section 2(a) in the
TIN section on the application to avoid possible erroneous withholding. A
partial listing of exempt classes of investors follows: Corporations, financial
institutions, IRAs, the U.S. Government, a State or possession of the U.S., a
foreign government, international organizations, and 501(a) exempt entities such
as colleges, churches and charitable organizations. If you are a non-resident
alien, check the appropriate box on the application. Non-resident aliens and
foreign entities may be subject to non-resident alien withholding of up to 30%
(instead of backup withholding of 31%) on certain distributions received from
the Fund and will be required to provide certain certifications on IRS Form W-8
to avoid 31% backup withholding with respect to other payments. For further
information, see Code Sections 1441, 1442 and 3406 and/ or consult your tax
adviser.
<PAGE>
INVESTMENT ADVISER
Eaton Vance Management
24 Federal Street
Boston, MA 02110
PRINCIPAL UNDERWRITER
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(800) 225-6265
CUSTODIAN
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
TRANSFER AGENT
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
(800) 262-1122
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand
One Post Office Square
Boston, MA 02109
EATON VANCE SHORT-TERM TREASURY FUND
24 FEDERAL STREET
BOSTON, MA 02110
TYP
EATON VANCE
SHORT-TERM
TREASURY FUND
PROSPECTUS
MAY 1, 1994
