<PAGE>
To Shareholders
EV Traditional Government Obligations Fund had a total return of 8.6 percent for
the six months ending June 30, 1995. The return was the result of an increase in
net asset value per share from $10.42 on December 31, 1994, to $10.90 on June
30, 1995, and the reinvestment of $0.404 per share in income dividends. The
Fund's return does not include the effect of the Fund's 3.75 percent maximum
applicable sales charge.
For comparison, the Lipper Intermediate U.S. Government Index - an index of
funds investing in intermediate-term U.S. government securities - had a total
return of 8.9 percent for the same period, according to Lipper Analytical
Services, Inc., an independent mutual fund monitoring service.
Based on the Fund's most recent dividend and its net asset value per share of
$10.90 on June 30, 1995, the Fund's annualized distribution rate was 7.43
percent.
The first six months of 1995 have brought a significant slowing in the economy.
The Federal Reserve's concerted efforts to reduce the rate of economic growth
and contain inflation appear to have been successful. Having raised the Federal
funds rate in February for the seventh time in a year, the Fed may have achieved
its stated goal of a "soft landing." As evidence of that slowdown, second
quarter gross domestic product of 1995 grew at a modest rate of 0.5 percent,
according to preliminary figures, significantly weaker than the robust 5.1
percent pace set in the fourth quarter of 1994.
Unemployment remained at 5.7 percent in June, well below the 6.1 percent level
of a year earlier. Yet, many indicators showed economic momentum waning,
including rising business inventories, slower retail sales, and flagging
consumer confidence.
Following one of the worst bond markets on record in 1994, investors enjoyed a
robust market in the first half of 1995. Interest rates fell significantly, with
the decline especially notable in the intermediate range. Yields for five-year
Treasury notes declined from 7.8 percent at the end of 1994 to 6.0 percent on
June 30.
With the economy advancing at a moderate pace and inflation posing no immediate
threat, the near-term outlook is for relatively stable interest rates. While
there is no guarantee that past trends will be repeated in the future, a stable
rate environment has historically provided a favorable backdrop for the mortgage
securities market. Focusing on the seasoned pools of the $1.5 trillion U.S.
government-guaranteed securitized mortgage market,* we believe that Government
Obligations Portfolio should remain well-positioned to provide attractive
returns for quality-conscious investors.
----------------------------
Sincerely,
[Photo of M. Dozier Gardner]
/s/ M. Dozier Gardner
M. Dozier Gardner
---------------------------- President
August 21, 1995
*The Fund's shares are not guaranteed or backed by the U.S. government or its
agencies.
<PAGE>
Management Report
An Interview with Susan Schiff, Portfolio Manager of Government Obligations
Portfolio.
Q. SUSAN, WHAT HAS ACCOUNTED FOR THE FUND'S STRONG PERFORMANCE IN THE FIRST
HALF?
A. The Fund participated in the strong bond rally as the slowing economy
prompted expectations of lower interest rates, while the Fund's portfolio
of seasoned mortgage-backed securities continued to offer an attractive
yield. As is characteristic of the Fund, we maintained a duration in the
3.0-to-3.5 year range, similar to that of a four-year Treasury. Therefore,
while the Fund under-performed some vehicles with longer average maturities
during the explosive bond rally, it performed generally within
expectations, given its duration and composition.
Q. THAT'S AN INTERESTING POINT. HAS PREDICTABLITY BEEN A HALLMARK OF THE
FUND'S LONG-TERM PERFORMANCE?
A. Yes. In rising markets as well as declining markets the Fund continues to
invest in the seasoned sector of the mortgage market. By maintaining our
focus on this sector, and by not making large bets on the direction of
interest rates, the Fund has tended to perform in line with expectations.
That's especially important in periods of rising interest rates. Consider
1994, which was a very difficult period for the bond market. The Fund had a
small negative total return, - the first negative annual return in its
history - but because of its low duration, it managed to outperform many
other fixed-income vehicles. While historical patterns of stability do not
necessarily guarantee the same in the future, that relative stability and
consistency is a very important consideration for conservative investors.
Q. AS YOU'VE POINTED OUT BEFORE, PREPAYMENT RATES ARE -----------------------
A CRITICAL VARIANT IN THE MORTGAGE SECURITIES
MARKET. HAVE PREPAYMENT RATES FLUCTUATED [photo of Susan Schiff]
SIGNIFICANTLY THUS FAR IN 1995?
-----------------------
A. Prepayment rates have increased somewhat since February. With signs of a
slowing economy and fewer concerns about inflation, interest rates have
fallen significantly. Not surprisingly, prepayment rates for GENERIC
mortgages have risen as interest rates have fallen. Many homeowners have
taken advantage of the rate decline to refinance their existing higher rate
mortgages. This is typically the case during a prolonged rate decline. As a
result, mortgage-backed securities have underperformed the Treasury market
during the period.
Q. IN YOUR VIEW, WHERE DOES EV TRADITIONAL GOVERNMENT OBLIGATION FUND FIT
IN AN INVESTOR'S PORTFOLIO?
A. This Fund is a conservative fund that has historically produced very few
surprises for investors. We have focused on a predictable sector of the
mortgage market - the seasoned sector - to seek to provide attractive
yields while limiting investors' exposure to homeowners' prepayment
options.
In addition, we have avoided much of the higher risk collaterized mortgage
obligation sector of the market that proved so troublesome to many
investors in recent years. While, naturally, past performance is no
guarantee of future results, this adherence to a consistent strategy has
produced favorable long-term returns. For conservative investors,
intermediate government securities should merit consideration.
Q. WHAT IS YOUR OUTLOOK FOR THE MORTGAGE SECURITIES MARKET?
A. Naturally, it's impossible to predict with certainty the direction of
interest rates. But Federal Reserve chairman Greenspan has indicated
recently in Congressional testimony that while the economy appears to be
regaining some momentum, he does see a potential threat of inflation on
the horizon. That suggests that the Fed may pursue a relatively stable
credit policy for the foreseeable future. And, as I've pointed out before,
a stable rate environment represents a very attractive climate for mortgage
securities. In my view, the seasoned sector of the market should continue
to present good opportunities for conservative investors.
<PAGE>
THE PORTFOLIO'S SEASONED, MORTGAGE-BACKED SECURITIES HAVE HELPED CONTRIBUTE TO
ITS RELATIVE SHARE PRICE STABILITY.
The purple line represents the annualized monthly principal prepayment rates of
the Portfolio's seasoned, mortgage-backed seurities.
The black line represents the annualized monthly principal prepayment rates of
some generic 30-year FNMA 9% mortgage-backed securities.
Label A B
Label Generic Seasoned
1 Mar-91 5 13.4
2 Apr-91 6.1 12.8
3 May-91 7 16.1
4 Jun-91 6.7 16.2
5 Jul-91 6.6 16.5
6 Aug-91 6.2 16.1
7 Sep-91 5.5 15.2
8 Oct-91 6.3 15.5
9 Nov-91 7.8 14.1
10 Dec-91 10.3 15.4
11 Jan-92 13.2 15.7
12 Feb-92 19.7 18.1
13 Mar-92 26.5 22.4
14 Apr-92 22.8 22.5
15 May-92 18.3 22.2
16 Jun-92 18.1 19.5
17 Jul-92 19.2 14.2
18 Aug-92 31.1 16.5
19 Sep-92 46.9 14.1
20 Oct-92 52.4 17.3
21 Nov-92 50.2 17.8
22 Dec-92 45.5 18.5
23 Jan-93 29.5 18.1
24 Feb-93 25.3 15.3
25 Mar-93 42.3 17.2
26 Apr-93 58.3 18.2
27 May-93 61.9 18.7
28 Jun-93 63 21.4
29 Jul-93 54.3 22.4
30 Aug-93 56 21.9
31 Sep-93 57.2 24.6
32 Oct-93 58 21.2
33 Nov-93 62.2 22.6
34 Dec-93 62.7 27.6
35 Jan-94 50.9 23.9
36 Feb-94 43.2 21.1
37 Mar-94 49.7 23.5
38 Apr-94 40.7 23.4
39 May-94 32 23.3
40 Jun-94 25 20.5
41 Jul-94 19.5 17.2
42 Aug-94 20.1 15.9
43 Sep-94 17.5 14.3
44 Oct-94 14.1 14.5
45 Nov-94 12.1 11.8
46 Dec-94 10.8 13.7
47 Jan-95 7 10.5
48 Feb-95 6.3 10.6
49 Mar-95 7.7 11.1
50 Apr-95 8 12.4
51 May-95 13.9 12.7
52 Jun-95 15.7 12.8
This chart compares the prepayment rates of the Fund's seasoned FNMA securities
with those of unseasoned generic FNMA securities. The data starts at the Fund's
inception in March 1991 and extends through June 1995.
Source: Lehman Brothers; Bloomberg, L.P.; Eaton Vance Management
<PAGE>
EV TRADITIONAL GOVERNMENT OBLIGATIONS FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
------------------------------------------------------------------------------
June 30, 1995 (Unaudited)
------------------------------------------------------------------------------
ASSETS:
Investment in Government Obligations Portfolio (Portfolio),
at value (Note 1A) $381,594,499
Receivable for Fund shares sold 145,432
------------
Total assets $381,739,931
LIABILITIES:
Dividends payable $1,166,406
Payable for Fund shares redeemed 1,162,911
Payable to affiliates --
Trustees' fees 840
Custodian fee 1,000
Accrued expenses 317,797
----------
Total liabilities 2,648,954
------------
NET ASSETS for 34,775,986 shares of beneficial interest
outstanding $379,090,977
============
SOURCES OF NET ASSETS:
Paid-in capital $433,188,242
Accumulated net realized loss on investments,
options and financial futures transactions
(computed on the basis of idenitified cost) (69,362,060)
Unrealized appreciation of investments from Portfolio
(computed on the basis of identified cost) 16,428,477
Accumulated distributions in excess of net
investment income (Note 2) (1,163,682)
------------
Total $379,090,977
============
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($379,090,977 / 34,775,986 shares of beneficial interest) $10.90
======
COMPUTATION OF OFFERING PRICE:
Offering price per share (100/96.25 of $10.90) $11.32
======
On sales of $100,000 or more, the offering price is reduced.
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF OPERATIONS
------------------------------------------------------------------------------
For the Six Months Ended June 30, 1995 (Unaudited)
------------------------------------------------------------------------------
INVESTMENT INCOME (NOTE 1B):
Interest income allocated from Portfolio $18,309,510
Expenses allocated from Portfolio (2,941,075)
-----------
Total investment income $15,368,435
Expenses --
Compensation of Trustees not members of the
Administrator's organization (Note 5) $ 1,621
Custodian fees (Note 5) 9,169
Distribution costs (Note 6) 382,732
Transfer and dividend disbursing agent fees 149,896
Printing and postage 32,389
Registration costs 12,945
Legal and accounting services 12,278
Miscellaneous fees 84,140
-----------
Total expenses 685,170
-----------
Net investment income $14,683,265
REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIO:
Net realized loss (identified cost basis) --
Investment transactions $(3,283,547)
Financial futures contracts (4,984,223)
-----------
Net realized loss on investments $(8,267,770)
Change in unrealized appreciation of investments 25,477,645
-----------
Net realized and unrealized gain on
investments 17,209,875
-----------
Net increase in net assets resulting from operations $31,893,140
===========
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994
------------- -------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 14,683,265 $ 35,368,030
Net realized loss on investments (8,267,770) (2,788,019)
Change in unrealized appreciation of
investments 25,477,645 (41,383,130)
------------ -------------
Net increase (decrease) in net assets
from operations $ 31,893,140 $ (8,803,119)
------------ -------------
Distributions to shareholders --
From net investment income $(14,522,276) $ (35,368,030)
In excess of net investment income -- (1,359,464)
------------ -------------
Total distributions to shareholders $(14,522,276) $ (36,727,494)
------------ -------------
Net decrease in net assets from Fund share
transactions (Note 3) $(24,465,446) $ (71,433,387)
------------ -------------
Net decrease in net assets $ (7,094,582) $(116,964,000)
NET ASSETS:
At beginning of period 386,185,559 503,149,559
------------ -------------
At end of period $379,090,977 $ 386,185,559
============ =============
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
1995 -----------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
---------------- --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period $10.4200 $11.4800 $11.3800 $11.8000 $11.3700 $11.5200
-------- --------- -------- -------- -------- --------
INCOME FROM OPERATIONS:
Net investment income $ 0.4040 $ 0.8052 $ 0.9192 $ 0.9751 $ 1.1005 $ 1.1085
Net realized and unrealized
gain (loss) on investments 0.4777 (1.0290) 0.1058 (0.3886) 0.4395 (0.1485)
-------- --------- -------- -------- -------- --------
Total income (loss) from operations $ 0.8817 $ (0.2238) $ 1.0250 $ 0.5865 $ 1.5400 $ 0.9600
-------- --------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
From net investment income $(0.4017) $(0.8052) $(0.9192) $(1.0065) $(1.1100) $(1.1100)
In excess of net investment income -- (0.0310) (0.0058) -- -- --
Total distributions $(0.4017) $(0.8362) $(0.9250) $(1.0065) $(1.1100) $(1.1100)
-------- --------- -------- -------- -------- --------
NET ASSET VALUE, end of period $10.9000 $10.4200 $11.4800 $11.3800 $11.8000 $11.3700
======== ======== ======== ======== ======== ========
TOTAL RETURN<F4> 8.62% (2.03)% 9.26% 5.29% 14.42% 8.97%
RATIOS/SUPPLEMENTAL DATA:
Ratio of interest expense to
average net assets 0.69%<F1><F3> 0.56%<F1> 0.40%<F1> 0.31% 0.78% 1.19%
Ratio of other expenses to
average net assets 1.20%<F1><F3> 1.17%<F1> 1.12%<F1> 1.10% 1.18% 1.22%
Ratio of net investment income to
average net assets 7.67%<F3> 7.70% 7.86% 8.52% 9.61% 9.86%
PORTFOLIO TURNOVER<F2> -- 52% 26% 25% 22%
NET ASSETS, end of period (000 omitted) $379,091 $386,186 $503,150 $468,960 $352,480 $279,747
LEVERAGE ANALYSIS:<F5>
Amount of debt outstanding at end of period
(000 omitted) -- -- -- -- -- $ 4,695
Average daily balance of debt outstanding
during period (000 omitted) -- -- $ 2,313 $ 1,687 $ 2,321 $ 11,009
Average weekly balance of shares
outstanding during period (000 omitted) -- -- 43,731 37,474 25,915 25,285
Average amount of debt per share
during period -- -- $ 0.053 $ 0.045 $ 0.090 $ 0.435
<FN>
<F1> Includes the Fund's share of Government Obligations Portfolio's allocated expenses.
<F2> Portfolio Turnover represents the rate of portfolio activity for the period while the Fund was making investments directly in
securities. The portfolio turnover for the period since the Fund transferred substantially all of its investable assets to
the Portfolio is shown in the Portfolio's financial statements which are included elsewhere in this report.
<F3> Annualized.
<F4> Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset
value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net
asset value on the payable date.
<F5> The Leverage Analysis is for the period prior to the date the Fund transferred substantially all of its investable assets to
the Portfolio. For subsequent periods, the leverage analysis is shown in the Portfolio's financial statements which are
included elsewhere in this report.
As of January 1, 1994 the Fund discontinued the use of equalization accounting.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
EV Traditional Government Obligations Fund (the Fund) is a diversified entity of
the type commonly known as a Massachusetts business trust and is registered
under the Investment Company Act of 1940, as amended, as an open-end management
investment company. The Fund is a series of Eaton Vance Mutual Funds Trust
(formerly the Eaton Vance Government Obligations Trust). The Fund invests all of
its investable assets in interests in the Government Obligations Portfolio (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 (71.7% at June 30,
1995). 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.
C. FEDERAL TAX -- 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 gain on investments, options and financial futures transactions.
Accordingly, no provision for federal income or excise tax is necessary. At
December 31, 1994, the Fund, for federal income and excise tax purposes, had a
capital loss carryover of $54,745,817 which will reduce the Fund's taxable
income arising from future net realized gain on investment transactions, if any,
to the extent permitted by the Internal Revenue Code, and thus will reduce the
amount of the distributions to shareholders which would otherwise be necessary
to relieve the Fund of any liability for federal income or excise tax. Such
capital loss carry-overs will expire on December 31, 1995 ($14,761,169),
December 31, 1996 ($6,997,379), December 31, 1997 ($4,277,560), December 31,
1998 ($6,941,299), December 31, 1999 ($1,545,746), December 31, 2000
($5,952,987) and December 31, 2002 $(14,269,677).
D. INTERIM FINANCIAL INFORMATION -- The interim financial statements relating to
June 30, 1995 and for the period then ended have not been audited by independent
certified public accountants, but in the opinion of the Fund's management,
reflect all adjustments, consisting of normal recurring adjustments, necessary
for the fair presentation of the financial statements.
------------------------------------------------------------------------------
(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. Distributions are paid monthly. Distributions of allocated
realized capital gains, if any, are made at least annually. Shareholders may
reinvest capital gain distributions in additional shares of the Fund at the net
asset value as of the ex-dividend date. Distributions are paid in the form of
additional shares 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) 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>
SIX MONTHS ENDED
JUNE 30, 1995
(UNAUDITED) YEAR ENDED DECEMBER 31, 1994
------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Sales 1,988,150 $ 20,958,958 8,690,993 $ 96,537,132
Issued to shareholders electing to receive
payment of distributions in Trust shares 679,352 7,264,772 1,549,319 16,841,652
Redemptions (4,949,879) (52,689,176) (17,019,496) (184,812,171)
--------- ------------- ---------- ------------
Net decrease (2,282,377) $ (24,465,446) (6,779,184) $(71,433,387)
========= ============= ========== ============
--------------------------------------------------------------------------------
(4) INVESTMENT TRANSACTIONS
Increases and decreases in the Fund's investment in the Portfolio for the six
months ended June 30, 1995, aggregated $21,862,115 and $61,540,528,
respectively.
------------------------------------------------------------------------------
(5) TRANSACTIONS WITH AFFILIATES
Eaton Vance Management (EVM) serves 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 3 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 of BMR'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 Portfolio maintains with IBT. Certain of the
officers and Trustees of the Fund and Portfolio are officers and
directors/trustees of the above organizations.
------------------------------------------------------------------------------
(6) SERVICE PLAN
The Fund adopted a Service Plan on July 7, 1993 designed to meet the
requirements of Rule 12b-1 under the Investment Company Act of 1940 and the
service fee requirements of the revised sales charge rule of The National
Association of Securities Dealers Inc. The Service Plan replaced the Fund's
distribution plan which became effective on July 9, 1984. The Service Plan
provides that the Fund may make service fee payments to the Principal
Underwriter, Eaton Vance Distributors, Inc., a subsidiary of Eaton Vance
Management, Authorized Firms or other persons in amounts not exceeding 0.25% of
the Fund's average daily net assets for any fiscal year. The Trustees have
implemented the Service Plan by authorizing the Fund to make quarterly service
fee payments to the Principal Underwriter and Authorized Firms in amounts not
expected to exceed 0.25% of the Fund's average daily net assets for any fiscal
year which is attributable to shares of the Fund sold by such persons and
remaining outstanding for at least twelve months. Such payments are made for
personal services and/or the maintenance of shareholder accounts. Provision for
service fee payments amounted to $382,732 for the six months ended June 30,
1995.
<PAGE>
--------------------------------------------------------------------------
GOVERNMENT OBLIGATIONS PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995
--------------------------------------------------------------------------
MORTGAGE PASS-THROUGHS - 95.9%
--------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE
--------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP.
PARTICIPATION CERTIFICATES:
4.5s, with maturity at 2000 $ 184,331 $ 179,448
4.75s, with various maturities to 2002 131,223 127,103
5s, with various maturities to 2003 1,072,369 1,034,283
5.25s, with various maturities to 2005 558,501 538,503
5.5s, with various maturities to 2011 2,423,330 2,365,590
5.75s, with maturity at 1998 86,824 85,156
6s, with various maturities to 2022 4,992,992 4,882,514
6.25s, with various maturities to 2013 1,175,814 1,158,596
6.5s, with various maturities to 2022 21,821,494 21,632,139
6.75s, with various maturities to 2011 12,261,391 12,260,674
7s, with various maturities to 2019 18,934,030 19,010,061
7.25s, with maturity at 2003 2,223,076 2,250,556
7.5s, with various maturities to 2019 23,474,170 23,898,550
7.75s, with maturity at 2018 4,962,753 5,077,959
8s, with various maturities to 2022 24,176,726 24,922,465
8.25s, with various maturities to 2011 17,287,503 17,986,575
8.5s, with various maturities to 2018 27,798,447 29,217,579
8.75s, with various maturities to 2014 4,296,498 4,524,723
9s, with various maturities to 2020 6,099,367 6,515,572
9.25s, with various maturities to 2010 1,816,801 1,954,442
9.5s, with various maturities to 2016 645,953 692,474
10s, with various maturities to 2017 421,454 442,196
11s, with various maturities to 2019 3,421,229 3,748,647
12s, with various maturities to 2019 2,552,788 2,864,868
12.25s, with various maturities to 2019 5,118,736 5,793,562
12.5s, with various maturities to 2019 15,802,375 17,968,486
12.75s, with various maturities to 2015 2,159,480 2,462,063
13s, with various maturities to 2019 5,942,859 6,842,850
13.25s, with various maturities to 2019 1,814,700 2,102,318
13.5s, with various maturities to 2015 6,237,229 7,190,834
13.75s, with various maturities to 2014 207,639 242,158
14s, with various maturities to 2016 3,805,089 4,464,223
14.5s, with various maturities to 2014 284,245 337,655
14.75s, with maturity at 2010 761,211 900,627
15s, with various maturities to 2013 1,449,924 1,758,892
15.25s, with maturity at 2012 202,952 248,727
15.5s, with various maturities to 2012 363,976 443,607
16s, with maturity at 2012 269,291 332,941
16.25s, with various maturities to 2012 324,119 403,357
------------
$238,862,973
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION
MORTGAGE BACKED SECURITIES:
0.25s, with maturity at 2014 $ 330,076 $ 261,823
3.5s, with maturity at 2007 182,868 168,067
4.5s, with maturity at 1999 22,745 21,994
5s, with various maturities to 2017 1,466,083 1,392,589
5.25s, with various maturities to 2006 503,005 484,525
5.5s, with various maturities to 2008 2,631,223 2,571,865
5.75s, with maturity at 2003 243,923 238,195
6s, with various maturities to 2010 26,473,826 25,803,797
6.25s, with various maturities to 2007 3,068,492 3,012,723
6.5s, with various maturities to 2017 12,418,752 12,298,957
6.75s, with various maturities to 2007 1,601,911 1,599,301
7s, with various maturities to 2018 9,805,493 9,798,045
7.25s, with various maturities to 2017 2,554,873 2,589,246
7.5s, with various maturities to 2020 10,251,083 10,443,285
7.75s, with various maturities to 2008 2,004,149 2,057,494
8s, with maturity at 2017 22,319,301 23,072,268
8.25s, with various maturities to 2020 10,048,549 10,459,604
8.5s, with various maturities to 2020 18,182,347 19,117,806
8.75s, with various maturities to 2017 1,788,241 1,897,266
9s, with various maturities to 2020 6,311,702 6,867,924
9.5s, with maturity at 2009 390,756 422,229
9.75s, with maturity at 2019 529,172 585,635
11s, with maturity at 2010 39,238 42,876
11.75s, with various maturities to 2015 3,221,203 3,614,724
12s, with various maturities to 2020 6,718,811 7,558,227
12.25s, with maturity at 2011 233,346 263,288
12.5s, with various maturities to 2021 7,684,648 8,736,860
12.75s, with various maturities to 2014 2,308,619 2,644,126
13s, with various maturities to 2019 9,722,948 11,235,980
13.25s, with various maturities to 2015 3,058,808 3,559,011
13.5s, with various maturities to 2015 5,194,646 6,062,232
13.75s, with various maturities to 2014 243,500 286,098
14s, with various maturities to 2014 1,029,385 1,220,063
14.25s, with maturity at 2014 415,159 495,186
14.5s, with various maturities to 2014 355,865 426,057
14.75s, with maturity at 2012 5,705,047 6,874,567
15s, with various maturities to 2013 4,598,692 5,691,949
15.5s, with maturity at 2012 1,450,318 1,785,958
15.75s, with maturity at 2011 42,348 52,114
16s, with maturity at 2012 502,623 626,845
------------
$196,340,799
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
MORTGAGE BACKED SECURITIES:
5.5s, with maturity at 1999 $ 102,007 $ 99,979
6.5s, with maturity at 2002 742,336 735,499
7.25s, with various maturities to 2022 4,883,561 4,980,160
7.5s, with maturity at 2017 1,215,257 1,259,662
8s, with various maturities to 2017 19,800,462 21,007,162
8.25s, with maturity at 2008 693,999 734,031
8.5s, with various maturities to 2018 2,231,292 2,432,349
9s, with maturity at 2011 554,254 605,553
12s, with various maturities to 2015 5,218,196 5,893,543
12.5s, with various maturities to 2015 2,864,429 3,282,953
13s, with various maturities to 2014 1,613,696 1,873,282
13.5s, with various maturities to 2013 517,489 603,494
14s, with maturity at 2015 314,968 373,541
14.5s, with various maturities to 2014 553,757 665,109
15s, with various maturities to 2013 1,019,473 1,238,989
16s, with various maturities to 2012 454,203 566,179
------------
$ 46,351,485
------------
COLLATERALIZED MORTGAGE OBLIGATIONS:
Federal Home Loan Mtg. Corp. $ 5,027,000 $ 5,193,519
Series 1327-F, 7.5%, due 2003,
Collateral 100% FHLMC PC
Federal Home Loan Mtg. Corp. 6,514,453 6,573,494
Series 1058-F, 8.0%, due 2004,
Collateral 100% FHLMC PC
Federal Home Loan Mtg. Corp. 10,000,000 10,259,380
Series 1188-GC, 7.5%, due 2019,
Collateral 100% FHLMC PC
Federal National Mtg. Association 3,000,000 2,865,939
Series 93-73E, 6.35%, due 2019
Collateral 100% FNMA MBS
Guaranteed Mtg. Corp. III Series H2, 1,116,965 1,156,060
9%, due 2015, Collateral 100% FNMA
MBS
Salomon Brothers Mortage Securities II, 2,255,940 2,477,304
Inc. Series III, Class Z, 11.50%, due
2015, Collateral 100% GNMA/FNMA MBS
------------
$ 28,525,696
------------
TOTAL MORTGAGE PASS-THROUGHS
(identified cost, $505,875,932) $510,080,953
------------
--------------------------------------------------------------------------
UNITED STATES TREASURY BONDS - 15.1%
--------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE
--------------------------------------------------------------------------
U.S. Treasury Bond, 12s, 8/15/13++ $50,000,000 $ 73,757,885
U.S. Treasury Bond, 7.125s, 2/15/23+ 6,000,000 6,321,564
------------
TOTAL UNITED STATES TREASURY BONDS
(identified cost, $67,368,569) $ 80,079,449
------------
TOTAL INVESTMENTS - 111.0% $590,160,402
(identified cost, $573,244,501)
OTHER ASSETS, LESS LIABILITIES - (11.0%) (58,343,891)
------------
NET ASSETS - 100% $531,816,511
============
+A portion of this security is collateral for financial futures contracts held
at June 30, 1995 (See Note 7).
++A portion of this security is on loan at June 30, 1995 (See Note 5).
The accompanying notes are an integral part of the financial statements
<PAGE>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
------------------------------------------------------------------------------
June 30, 1995
------------------------------------------------------------------------------
ASSETS:
Investments, at value (Note 1A) (identified cost,
$573,244,501) $590,160,402
Cash 216
Receivable for investments sold 1,301,538
Interest receivable 6,593,559
Deferred organization expenses (Note 1H) 12,694
------------
Total assets $598,068,409
LIABILITIES:
Demand note payable (Note 4) $ 726,000
Payable for investments purchased 2,878,209
Liability for collateral received for securities
loaned (Note 5) 62,360,800
Payable for daily variation margin on financial
futures contracts (Notes 1G and 7) 214,843
Payable to affiliates --
Trustees' fees 5,238
Custodian fee 9,488
Accrued expenses 57,320
-----------
Total liabilities 66,251,898
------------
NET ASSETS applicable to investors' interest in
Portfolio $531,816,511
============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $515,177,606
Unrealized appreciation of investments and
financial futures contracts
(computed on the basis of identified cost) 16,638,905
------------
Total $531,816,511
============
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF OPERATIONS
------------------------------------------------------------------------------
For the Six Months Ended June 30, 1995
------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest income -- $ 24,839,155
Expenses --
Investment adviser fee (Note 3) $ 1,966,088
Compensation of Trustees not members of the
Administrator's organization (Note 3) 10,227
Custodian fee (Note 3) 114,516
Interest expense (Note 5) 1,835,296
Legal and accounting services 37,890
Amortization of organization expenses
(Note 1H) 1,890
Miscellaneous 25,679
-----------
Total expenses 3,991,586
------------
Net investment income $ 20,847,569
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss (identified cost basis) --
Investment transactions $(4,433,600)
Financial futures contracts (6,910,899)
-----------
Net realized loss on investments $(11,344,499)
Change in unrealized appreciation of
investments 34,609,744
------------
Net realized and unrealized gain on
investments $ 23,265,245
------------
Net increase in net assets resulting
from operations $ 44,112,814
============
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
------------- -----------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 20,847,569 $ 45,968,015
Net realized loss on investments (11,344,499) (4,216,708)
Change in unrealized appreciation of
investments 34,609,744 (50,227,104)
------------ -------------
Net increase (decrease) in net assets
from operations $ 44,112,814 $ (8,475,797)
------------ -------------
Capital transactions --
Contributions $ 63,108,663 $ 272,129,376
Withdrawals (91,074,479) (285,281,160)
------------ -------------
Decrease in net assets resulting from
capital transactions $(27,965,816) $ (13,151,784)
------------ -------------
Total increase (decrease) in net
assets $ 16,146,998 $ (21,627,581)
NET ASSETS:
At beginning of period 515,669,513 537,297,094
------------ -------------
At end of period $531,816,511 $ 515,669,513
============ =============
</TABLE>
<TABLE>
----------------------------------------------------------------------------------------------------------
SUPPLEMENTARY DATA
----------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED -----------------------
JUNE 30, 1995 1994 1993<F2>
------------- ------ ------
<S> <C> <C> <C>
RATIOS (As a percentage of average net assets):
Interest expense 0.70%<F1> 0.56% 0.63%<F1>
Other expenses 0.83%<F1> 0.80% 0.86%<F1>
Net investment income 7.98%<F1> 8.03% 8.46%<F1>
PORTFOLIO TURNOVER 12% 35% 42%
LEVERAGE ANALYSIS:
Amount of debt outstanding at end of period
(000's omitted) $726 $3,924 --
Average daily balance of debt outstanding during period
(000's omitted) $892 $ 982 $1,660
<FN>
<F1> Computed on an annualized basis.
<F2> For the period from the start of business, October 28, 1993, to December
31, 1993.
The accompanying notes are an integral part of the financial statements
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES
Government Obligations 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 in
1992. The Declaration of Trust permits the Trustees to issue beneficial
interests in the Portfolio. Investment operations began on October 28, 1993,
with the acquisition of net assets of $564,244,545 in exchange for an interest
in the Portfolio by one of the Portfolio's investors. The following is a
summary of significant accounting policies of the Portfolio. The policies are
in conformity with United States generally accepted accounting principles.
A. INVESTMENT VALUATIONS -- Mortgage backed, "pass-through" securities are
valued using a matrix pricing system which takes into account closing bond
valuations, yield differentials, anticipated prepayments, and interest rates.
Debt securities (other than mortgage backed, "pass-through" securities) are
normally valued at the mean between the latest available bid and asked prices
for securities for which the over-the-counter market is the primary market.
Debt securities may also be valued on the basis of valuations furnished by a
pricing service. Options are valued at last sale price on a U.S. exchange or
board of trade or, in the absence of a sale, at the mean between the last bid
and asked price. Financial futures contracts listed on commodity exchanges are
valued at closing settlement prices. Securities for which there is no such
quotation or valuation are valued at fair value using methods determined in
good faith by or at the direction of the Trustees. Short-term obligations
having remaining maturities of less than 60 days are valued at amortized cost,
which approximates value.
B. INCOME -- Interest income is determined on the basis of interest accrued and
discount earned, adjusted for amortization of discount when required for federal
income tax purposes.
C. GAINS AND LOSSES FROM SECURITY TRANSACTIONS -- For book purposes, gains or
losses are not recognized until disposition. For United States federal tax
purposes, the Portfolio has elected, under Section 1092 of the Internal
Revenue Code, to utilize mixed straddle accounting for certain designated
classes of activities involving options and financial futures contracts in
determining recognized gains or losses. Under this method, Section 1256
positions (financial futures contracts and options on investments or financial
futures contracts) and non-Section 1256 positions (bonds, etc.) are marked-to-
market on a daily basis resulting in the recognition of taxable gains or
losses on a daily basis. Such gains or losses are categorized as short-term or
long-term based on aggregation rules provided in the Code.
D. INCOME TAXES -- The Portfolio is treated as a partnership for United States
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 investors' distributive share of the Portfolio's net investment
income, net realized capital gains, and any other items of income, gain, loss,
deduction or credit.
E. WRITTEN OPTIONS -- Upon the writing of a call or a put option, an amount
equal to the premium received by the Portfolio is included in the Statement of
Assets and Liabilities as a liability. The amount of the liability is
subsequently marked-to-market to reflect the current value of the option
written in accordance with the Portfolio's policies on investment valuations
discussed above. Premiums received from writing options which expire are
treated as realized gains. Premiums received from writing options which are
exercised or are closed are added to or offset against the proceeds or amount
paid on the transaction to determine the realized gain or loss. If a put
option is exercised, the premium reduces the cost basis of the securities
purchased by the Portfolio. The Portfolio, as writer of an option, may have no
control over whether the underlying securities may be sold (call) or purchased
(put) and, as a result, bears the market risk of an unfavorable change in the
price of the securities underlying the written option.
F. PURCHASED OPTIONS -- Upon the purchase of a call or put option, the premium
paid by the Portfolio is included in the Statement of Assets and Liabilities
as an investment. The amount of the investment is subsequently marked-to-
market to reflect the current market value of the option purchased, in
accordance with the Portfolio's policies on investment valuations discussed
above. If an option which the Portfolio has purchased expires on the
stipulated expiration date, the Portfolio will realize a loss in the amount of
the cost of the option. If the Portfolio enters into a closing sale
transaction, the Portfolio will realize a gain or loss, depending on whether
the sales proceeds from the closing sale transaction are greater or less than
the cost of the option. If the Portfolio exercises a put option, it will
realize a gain or loss from the sale of the underlying security, and the
proceeds from such sale will be decreased by the premium originally paid. If
the Portfolio exercises a call option, the cost the security which the
Portfolio purchases upon exercise will be increased by the premium originally
paid. For tax purposes, the Portfolio's options are generally subject to the
mixed straddle rules described in Note 1C, and unrealized gains or losses are
recognized on a daily basis.
G. FINANCIAL FUTURES CONTRACTS -- Upon entering into a financial futures
contract, the Portfolio is required to deposit an amount ("initial margin")
either in cash or securities equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by the Portfolio ("margin maintenance") each day, dependent
on the daily fluctuations in the value of the underlying securities, and are
recorded for book purposes as unrealized gains or losses by the Portfolio.
If the Portfolio enters into a closing transaction, the Portfolio will
realize, for book purposes, a gain or loss equal to the difference between the
value of the financial futures contract to sell and the financial futures
contract to buy. The Portfolio's investment in financial futures contracts is
designed only to hedge against anticipated futures changes in interest or
currency exchange rates. Should interest or currency exchange rates move
unexpectedly, the Portfolio may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss. For tax purposes, such
futures contracts are generally subject to the mixed straddle rules described
in Note 1C, and unrealized gains or losses are recognized on a daily basis.
H. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
I. OTHER -- Investment transactions are accounted for on the date the
investments are purchased or sold.
------------------------------------------------------------------------------
(2) PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, other than short-term
obligations, aggregrated $68,810,214 and $92,241,620, respectively.
------------------------------------------------------------------------------
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee, computed at the monthly rate of 0.0625% (0.75% per
annum) of the Portfolio's average daily net assets up to $500 million and at
reduced rates as daily net assets exceed that level, 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. For the six months ended June 30, 1995,
the fee was equivalent to 0.74% (annualized) of the Portfolio's average net
assets for such period and amounted to $1,966,088. 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 service to the Portfolio out of such
investment adviser fee. Trustees of the Portfolio that are not affiliated with
the Investment Adviser may elect to defer receipt of all or a percentage of
their annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the six months ended June 30, 1995, no significant
amounts have been deferred. Investors Bank & Trust Company (IBT), an affiliate
of EVM and BMR, serves as custodian of the Portfolio. Pursuant to the
custodian agreement, IBT receives a fee reduced by credits which are
determined based on the average daily cash balances the Portfolio maintains
with IBT. Certain of the officers and Trustees of the Portfolio are officers
and directors/trustees of the above organizations.
----------------------------------------------------------------------------
(4) LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR and
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 an $100 million
discretionary facility. 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
portfolios and funds at the end of each quarter. The average daily loan
balance for the six months ended June 30, 1995, was $892,117 and the average
interest rate was 7.43%. The maximum borrowing outstanding at any month end
during the six months ended June 30, 1995 was $9,661,000.
----------------------------------------------------------------------------
(5) SECURITIES LENDING AGREEMENT
The Portfolio has established a securities lending agreement with a broker in
which the Portfolio lends portfolio securities to the broker in exchange for
collateral consisting of either cash or U.S. government securities. Under the
agreement, the Portfolio continues to earn interest on the securities loaned.
If the collateral received is U.S. government securities, the Portfolio will
also receive from the broker an additional loan premium fee computed as a
varying percentage of the market value of the securities loaned. If the
collateral received is cash, the Portfolio may invest the cash and receive any
interest on the amount invested but it must also pay the broker a loan rebate
fee computed as a varying percentage of the collateral received. The Portfolio
did not receive any loan premium fee during the six months ended June 30,
1995, but did incur $1,801,856 of loan rebate fees which have been included in
interest expense. The maximum liability for cash collateral received for
securities loaned at any month end during the six months ended June 30, 1995,
was $62,360,800.
------------------------------------------------------------------------------
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT
The cost and unrealized appreciation/depreciation in the value of investment
securities owned at June 30, 1995, as computed on a United States federal income
tax basis, were as follows:
Aggregate cost $586,567,168
============
Gross unrealized appreciation $ 8,378,918
Gross unrealized depreciation 4,785,684
------------
Net unrealized appreciation $ 3,593,234
============
------------------------------------------------------------------------------
(7) FINANCIAL INSTRUMENTS
The Portfolio regularly trades in financial instruments with off-balance sheet
risk in the normal course of its investing activities to assist in managing
exposure to various market risks. These financial instruments include written
options, forward foreign currency exchange contracts, and financial futures
contracts and may involve, to a varying degree, elements of risk in excess of
the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment the Fund has in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments at June 30, 1995
is as follows:
<TABLE>
<CAPTION>
UNDERLYING NET
FUTURES CONTRACT FACE AMOUNT UNREALIZED
EXPIRATION DATE CONTRACTS POSITION AT VALUE DEPRECIATION
--------------- --------- -------- ----------- ------------
<S> <C> <C> <C> <C> <C>
9/95 625 U.S. Treasury Five Year Note Futures Short $66,817,219 $276,997
=========== ========
</TABLE>
At June 30, 1995, the Fund had sufficient cash and/or securities to cover
margin requirements on any open futures contracts.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
------------------------------------------------------------------------------
To the Trustees and Investors of
Government Obligations Portfolio:
We have audited the accompanying statement of assets and liabilities of
Government Obligations Portfolio, including the portfolio of investments, as
of June 30, 1995, and the related statement of operations for the six months
then ended, the statement of changes in net assets for the six months ended
June 30, 1995 and for the year ended December 31, 1994, and the supplementary
data for the six months ended June 30, 1995, the year ended December 31, 1994
and for the period from the start of business, October 28, 1993, to December
31, 1993. These financial statements and supplementary data are the
responsibility of the Portfolio's management. Our responsibility is to express
an opinion on these financial statements and supplementary data based on our
audits.
We conducted our audits in accordance with United States 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 as of June 30, 1995 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 audits provide 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
Government Obligations Portfolio as of June 30, 1995, the results of its
operations for the six months then ended, the changes in its net assets for
the six months ended June 30, 1995 and for the year ended December 31, 1994,
and the supplementary data for the six months ended June 30, 1995, the year
ended December 31, 1994 and for the period from the start of business, October
28, 1993, to December 31, 1993, in conformity with United States generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Toronto, Canada
August 4, 1995
<PAGE>
INVESTMENT MANAGEMENT
<TABLE>
<S> <C> <C>
EV TRADITIONAL OFFICERS TRUSTEES
GOVERNMENT M. DOZIER GARDNER DONALD R. DWIGHT
OBLIGATIONS FUND President, Trustee President, Dwight Partners, Inc.
24 Federal Street JAMES B. HAWKES Chairman, Newspapers of
Boston, MA 02110 Vice President, Trustee New England, Inc.
H. DAY BRIGHAM SAMUEL L. HAYES, III
Vice President Jacob H. Schiff Professor of
WILLIAM H. AHERN, JR. Investment Banking, Harvard
Vice President University Graduate School of
MICHAEL B. TERRY Business Administration
Vice President NORTON H. REAMER
JAMES L. O'CONNOR President and Director,
Treasurer United Asset Management
THOMAS OTIS Corporation
Secretary JOHN L. THORNDIKE
Director, Fiduciary Company
Incorporated
JACK L. TREYNOR
Investment Adviser and
Consultant
------------------------------------------------------------------------
GOVERNMENT OFFICERS TRUSTEES
OBLIGATIONS M. DOZIER GARDNER DONALD R. DWIGHT
PORTFOLIO President, Trustee President, Dwight Partners, Inc.
24 Federal Street JAMES B. HAWKES Chairman, Newspapers of
Boston, MA 02110 Vice President, Trustee New England, Inc.
SUSAN SCHIFF SAMUEL L. HAYES, III
Vice President and Jacob H. Schiff Professor of
Portfolio Manager Investment Banking, Harvard
MARK S. VENEZIA University Graduate School of
Vice President Business Administration
WILLIAM CHISHOLM NORTON H. REAMER
Vice President President and Director,
RAYMOND O'NEILL United Asset Management
Vice President Corporation
MICHEL NORMANDEAU JOHN L. THORNDIKE
Vice President Director, Fiduciary Company
JAMES L. O'CONNOR Incorporated
Treasurer JACK L. TREYNOR
THOMAS OTIS Investment Adviser and
Secretary Consultant
</TABLE>
<PAGE>
INVESTMENT ADVISER OF
GOVERNMENT OBLIGATIONS PORTFOLIO
Boston Management and Research
24 Federal Street
Boston, MA 02110
ADMINISTRATOR OF EV TRADITIONAL
GOVERNMENT OBLIGATIONS 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 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
[logo]
EV TRADITIONAL
GOVERNMENT OBLIGATIONS FUND
SEMI-ANNUAL
SHAREHOLDER REPORT
JUNE 30, 1995
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.
EV TRADITIONAL GOVERNMENT
OBLIGATIONS FUND
24 FEDERAL STREET
BOSTON, MA 02110
T-GOSRC
