Eaton Vance
Cash Management Fund
Eaton Vance
Liquid Assets Fund
Eaton Vance
Money Market Fund
[LOGO]
Semi-Annual
Shareholder Report
June 30, 1996
To Shareholders
In the first half of 1996, the U.S. economy continued an expansion
that is now in its sixth year. The period was characterized by a
healthy mix of growth with low inflation. Surprising signs of
strength in the second quarter, however, have caused concern that
inflation may begin to increase. This concern was reflected in the
negative bond market reaction to employment reports in March and June
which indicated significant gains in new jobs.
On January 31, 1996, the Federal Reserve lowered the Fed Funds rate
for the third time in six months to 5.25%, where it remains. The Fed
Funds rate is the rate at which large U.S. banks lend money to each
other. It is significant because it affects all other interest
rates. While some economists are looking for an increase in the Fed
Funds rate this summer, Federal Reserve officials have indicated that
an increase may not be necessary, noting that further evidence of
inflation would be needed to warrant an increase.
The Portfolio continues to invest only in securities of the highest
quality. Its holdings of commercial paper have been given the top
rating by at least two nationally recognized statistical rating
organizations. The Portfolio also invests in U.S. Government agency
securities, which are not rated officially, but are considered to be
of even higher quality.
Fund shares are not guaranteed by the FDIC and are not deposits or
other obligations of, or guaranteed by, any depository institution.
Shares are subject to investment risks, including possible loss of
principal invested.
[GRAPHIC WORM CHART OMITTED]
Caption reads: Commercial paper rates have risen steadily in 1996
after a significant drop early in the year
2nd caption reads: 60 Day Commercial Paper Rates
60 Day
CP Rates Rate
- -------- ----
6/95 5.85
5.9
5.87
5.87
7/95 5.69
5.67
5.68
5.66
8/95 5.7
5.7
5.71
5.71
9/95 5.69
5.67
5.67
5.7
5.85
10/95 5.73
5.72
5.71
5.71
11/95 5.7
5.76
5.78
5.73
12/95 5.76
5.68
5.75
5.67
5.53
1/96 5.43
5.45
5.39
5.36
2/96 5.18
5.12
5.18
5.15
3/96 5.17
5.22
5.23
5.26
5.25
4/96 5.28
5.3
5.27
5.25
5/96 5.27
5.27
5.28
5.27
5.28
6/96 5.33
5.36
Of course, an investment in the Funds is neither insured nor
guaranteed by the U.S. Government and there can be no assurance that
the Funds will be able to maintain a stable net asset value of $1.00
per share.
The Portfolio continues to maintain an average maturity of 30 to 40
days.
[PHOTO OMITTED: M. DOZIER GARDNER OMITTED]
Sincerely,
/S/M. Dozier Gardner
M. Dozier Gardner
President of Cash Management Portfolio
August 5, 1996
<TABLE>
<CAPTION>
EV Money Market Funds
Financial Statements
Statements of Assets and Liabilities
- ----------------------------------------------------------------------------------------------------------------------------
June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------
Cash Liquid Money
Management Assets Market
Fund Fund Fund
------------- ------------- -----------
<S> <C> <C> <C>
Assets:
Investment in Cash Management Portfolio, $149,663,167 $24,467,595 $24,311,170
at amortized cost and value (Note 1A)
Receivable for Fund shares sold 1,682,772 -- 148,929
Receivable from Administrator -- -- 14,281
Deferred organization expenses (Note 1D) -- -- 26,094
------------ ----------- -----------
Total assets $151,345,939 $24,467,595 $24,500,474
Liabilities:
Dividends payable $ 185,582 $ 36,987 $ 30,235
Payable for Fund shares redeemed 2,191,217 18,785 2,813,077
Payable to affiliate --
Trustees' fees 826 41 41
Accrued expenses 20,850 12,684 8,017
------------ ----------- -----------
Total liabilities $ 2,398,475 $ 68,497 $ 2,851,370
------------ ----------- -----------
Net Assets (represented by paid-in capital) $148,947,464 $24,399,098 $21,649,104
============ =========== ===========
Shares of Beneficial Interest Outstanding 148,947,464 24,399,098 21,649,104
============ =========== ===========
Net Asset Value, Sales and Redemption Price Per Share
(net assets (divided by) shares of beneficial interest outstanding) $1.00 $1.00 $1.00
====== ====== =====
The accompanying notes are an integral part of the financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Operations
- ----------------------------------------------------------------------------------------------------------------------------
For the Six Months Ended June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------
Cash Liquid Money
Management Assets Market
Fund Fund Fund
-------------- -------------- -------------
<S> <C> <C> <C>
Investment Income (Note 1B):
Interest income allocated from Portfolio $3,950,746 $761,009 $694,586
Expenses allocated from Portfolio (423,687) (81,663) (74,385)
---------- -------- --------
Total investment income $3,527,059 $679,346 $620,201
---------- -------- --------
Expenses --
Compensation of Trustees not members of the
Administrator's organization (Note 4) $ 1,563 $ 78 $ 78
Distribution costs (Note 5) -- 35,215 105,747
Transfer and dividend disbursing agent fees 47,224 9,608 6,124
Printing and postage 18,578 7,138 5,887
Custodian fees 18,210 4,859 3,805
Registration costs 15,849 14,145 27,742
Legal and accounting services 9,012 9,066 8,588
Amortization of organization expenses (Note 1D) -- -- 2,434
Miscellaneous 7,155 6,453 2,567
---------- -------- --------
Total expenses $ 117,591 $ 86,562 $162,972
Deduct preliminary allocation of expenses to the Administrator -- -- 14,281
(Note 4) ---------- -------- --------
Net expenses $ 117,591 $ 86,562 $148,691
---------- -------- --------
Net investment income $3,409,468 $592,784 $471,510
========== ======== ========
The accompanying notes are an integral part of the financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
- ----------------------------------------------------------------------------------------------------------------------------
For the Six Months Ended June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------
Cash Liquid Money
Management Assets Market
Fund Fund Fund
-------------- -------------- -------------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations--
Net investment income $ 3,409,468 $ 592,784 $ 471,510
Distributions to shareholders from net investment income (Note 2) (3,409,468) (592,784) (471,510)
Net increase (decrease) in net assets
from Fund share transactions (Note 3) (6,303,654) (9,627,166) 8,697,863
------------- ------------- -----------
Net increase (decrease) in net assets $ (6,303,654) $ (9,627,166) $ 8,697,863
Net Assets:
At beginning of period 155,251,118 34,026,264 12,951,241
------------- ------------ -----------
At end of period $148,947,464 $ 24,399,098 $21,649,104
============= ============ ===========
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
For the Year Ended December 31, 1995
- ----------------------------------------------------------------------------------------------------------------------------
Cash Liquid Money
Management Assets Market
Fund Fund Fund*
-------------- -------------- -------------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $ 6,681,642 $ 2,743,890 $ 444,014
Distributions to shareholders from net investment income (Note 2) (6,681,642) (2,743,890) (444,014)
Net increase (decrease) in net assets from Fund share
transactions (Note 3) 43,629,610 (84,572,328) 12,951,241
------------ ------------ -----------
Net increase (decrease) in net assets $ 43,629,610 $(84,572,328) $12,951,241
Net Assets:
At beginning of year 111,621,508 118,598,592 --
------------ ------------ -----------
At end of year $155,251,118 $ 34,026,264 $12,951,241
============ ============ ===========
* For the Money Market Fund, the Statement of Changes in Net Assets is for the period from the start of business, April 5,
1995, to December 31, 1995.
The accompanying notes are an integral part of the financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
- -----------------------------------------------------------------------------------------------------------------------------
Cash Management Fund
- ----------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
June 30, 1996 ----------------------------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991*
---------- --------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value -- Beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------
Income from operations:
Net investment income 0.0233 0.0522 0.0345 0.0251 0.0306 0.0537
Less distributions:
From net investment income (0.0233) (0.0522) (0.0345) (0.0251) (0.0306) (0.0537)
-------- -------- -------- -------- -------- -------
Net asset value -- End of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return (2) 2.37% 5.35% 3.49% 2.54% 3.14% 5.51%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $148,947 $155,251 $111,622 $112,200 $161,986 $195,488
Ratios: (As a percentage of average daily
net assets)(1):
Expenses 0.74%+ 0.74% 0.84% 0.67% 0.76% 0.75%
Net investment income 4.68%+ 5.22% 3.40% 2.51% 3.09% 5.44%
+ Computed on an annualized basis.
* Audited by the Fund's previous auditors.
(1) Includes the Fund's share of Cash Management Portfolio's allocated income and expenses for the six months ended June 30,
1996, for the year ended December 31, 1995 and for the period from May 2, 1994 to December 31, 1994.
(2) Total return is calculated assuming a purchase at net asset value on the first day and sale at the net asset value on the
last day of the period.
Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the payable date. Total return
is not computed on an annualized basis.
The accompanying notes are an integral part of the financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------
Liquid Assets Fund
- ---------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Ended December 31, Year Ended March 31,
June 30, 1996 ---------------------------------------- ---------------------
(Unaudited) 1995 1994 1993* 1993+ 1992+
---------- ---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value -- Beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from operations:
Net investment income 0.0210 0.0505 0.0328 0.0113 0.0217 0.0415
Less distributions:
From net investment income (0.0210) (0.0505) (0.0328) (0.0113) (0.0217) (0.0415)
-------- -------- -------- -------- -------- ---------
Net asset value -- End of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return (2) 1.97% 5.16% 3.29% 1.14% 2.35% 4.38%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 24,399 $ 34,026 $118,599 $ 10,566 $ 18,553 $ 9,145
Ratios (As a percentage of average daily
net assets)(1):
Expenses 1.20%++ 0.91% 0.94% 1.49%++ 0.92% 1.23%
Net investment income 4.24%++ 5.11% 3.55% 1.66%++ 2.33% 4.30%
For the periods presented below, the operating expenses of the Fund reflect an allocation of expenses to the administrator.
Had such actions not been taken, net investment income per share and the ratios would have been as follows:
</TABLE>
<TABLE>
<CAPTION>
Year Ended Year Ended March 31,
December 31 ------------------------
1993* 1993+ 1992+
------------------ ---------- ---------
<S> <C> <C> <C>
Net investment income per share $0.0092 $0.0171 $0.0372
------- ------- -------
Ratios: (As a percentage of average daily net assets)(1):
Expenses 1.80%++ 1.42% 1.73%
Net investment income 1.35%++ 1.85% 3.80%
+ Audited by the Fund's previous auditors.
++ Computed on an annualized basis.
* For the nine months ended December 31, 1993.
(1) Includes the Fund's share of Cash Management Portfolio's allocated income and expenses for the six months ended June 30,
1996, for the year ended December 31, 1995 and for the period from May 2, 1994 to December 31, 1994.
(2) Total return is calculated assuming a purchase at net asset value on the first day and sale at net asset value on the last
day of the period. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the payable
date. Total return is not computed on an annualized basis.
The accompanying notes are an integral part of the financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
- --------------------------------------------------------------------------------------------------------------------------
Money Market Fund
- --------------------------------------------------------------------------------------------------------------------------
Six Months
Ended
June 30, Year Ended
1996 December 31,
(Unaudited) 1995*
---------- ---------
<S> <C> <C>
Net asset value -- Beginning of period $ 1.00 $ 1.00
-------- -------
Income from operations:
Net investment income 0.0183 0.0312
Less distributions:
From net investment income (0.0183) (0.0312)
-------- -------
Net asset value -- End of period $ 1.00 $ 1.00
======== ========
Total Return (2) 1.72% 3.17%
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) $ 21,649 $ 12,951
Ratios: (As a percentage of average daily
net assets)(1):
Expenses 1.73%+ 1.68%+
Net investment income 3.66%+ 4.19%+
For the six months ended June 30, 1996 and for the period from April 5, 1995, to December 31, 1995, the operating expenses of
the Fund reflect an allocation of expenses to the administrator. Had such action not been taken, net investment income per
share and the ratios would have been as follows:
Net investment income per shares 0.0178 $ 0.0300
------ --------
Ratios: (As a percentage of average daily net assets)(1):
Expenses 1.84%+ 1.85%+
Net investment income 3.55%+ 4.03%+
+ Computed on an annualized basis.
* For the period from the start of business, April 5, 1995, to December 31, 1995.
(1) Includes the Fund's share of Cash Management Portfolio's allocated income and expenses.
(2) Total return is calculated assuming a purchase at net asset value on the first day and sale at net asset value on the last
day of the period.
Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the payable date. Total return
is not calculated on an annualized basis.
The accompanying notes are an integral part of the financial statements
</TABLE>
Notes to Financial Statements
June 30, 1996
(Unaudited)
(1) Significant Accounting Policies
Eaton Vance Mutual Funds Trust (the Trust) is an entity of the type
commonly known as a Massachusetts business Trust and is registered
under the Investment Company Act of 1940 (1940 Act), as amended, as
an open-end management investment company. The Trust presently
consists of thirteen Funds, three of which are included in these
financial statements. They include Eaton Vance Cash Management Fund
("Cash Management Fund"), Eaton Vance Liquid Assets Fund ("Liquid
Assets Fund") and Eaton Vance Money Market Fund ("Money Market Fund")
(individually, the "Fund", collectively the "Funds") each of which is
registered under the Investment Company Act of 1940, as amended, as
diversified, open-end management
investment companies.
The Funds invest all of their investable assets in interests in the
Cash Management Portfolio (the Portfolio), a New York Trust, having
the same investment objective as the Funds. The value of each Fund's
investment in the Portfolio reflect the Fund's proportionate interest
in the net assets of the Portfolio (75.4% for Cash Management Fund,
12.3% for Liquid Assets Fund and 12.3% for Money Market Fund at June
30, 1996). The performance of each 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 Funds in
the preparation of their financial statements. The policies are in
conformity with generally accepted accounting principles.
A. Investment Valuations -- Valuation 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 -- Each Fund's net investment income consists of the Fund's
pro rata share of the net investment income of the Portfolio, less
all actual and accrued expenses of the Fund determined in accordance
with generally accepted accounting principles.
C. Federal Taxes -- The Funds' 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. Accordingly, no provision for federal income or excise
tax is necessary. At December 31, 1995, Liquid Assets Fund, for
federal income tax purposes, had a capital loss carryover of $7,367,
which will reduce the Fund's taxable income arising from future net
realized gain on investments, if any, to the extent permitted by the
Internal Revenue Code, and thus will reduce the amount of
distributions to shareholders which would otherwise be necessary to
relieve the Fund of any liability for federal income tax. Such
capital loss carryover will expire on December 31, 2001.
D. Deferred Organization Expenses -- Costs incurred by the Funds in
connection with their organization, including registration costs, are
being amortized on the straight-line basis over five years.
E. Use of Estimates -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
F. Other -- Investment transactions are accounted for on a trade date
basis.
G. Interim Financial Information -- The interim financial statements
relating to June 30, 1996 and for the six month period then ended
have not been audited by independent certified public accountants,
but in the opinion of the Funds' management, reflect all adjustments,
consisting only of normal recurring adjustments, necessary for the
fair presentation of the financial statements.
(2) Distribution to Shareholders
The net income of each Fund is determined daily and substantially all
of the net income so determined is declared as a dividend to
shareholders of record at the time of declaration. Dividends are paid
monthly. Dividends are paid in the form of additional shares or, at
the election of the shareholder, in cash.
The Funds distinguish between distributions on a tax basis and a
financial basis. Generally accepted accounting principles require
that only distributions in excess of tax 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 statments and tax earnings and profits which result in
temporary over distributions for financial statement purposes are
classified as distributions in excess of net investment income or
accumulated in realized gains. Permanent differences between book and
tax accounting relating to distributions are reclassified to paid-in
capital. The tax treatment of distributions for the calendar year
will be reported to shareholders prior to February 1, 1997 and will
be based on tax accounting methods which may differ from amounts
determined for financial statement purposes.
(3) Shares of Beneficial Interest
The Fund's 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>
Cash Management Fund
-------------------------------------------------------------
Six Months Ended
June 30, 1996 Year Ended
(Unaudited) December 31, 1995
-------------------------- ---------------------------
Shares Amount Shares Amount
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
Sales 292,065,480 $ 292,065,480 554,615,530 $ 554,615,530
Issued to shareholders electing to receive
payments of distributions in Fund shares 2,320,030 2,320,030 4,331,670 4,331,670
Redemptions (300,689,164) (300,689,164) (515,317,590) (515,317,590)
------------ ------------ ------------ -----------
Net increase (decrease) (6,303,654) $ (6,303,654) 43,629,610 $ 43,629,610
============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
Liquid Assets Fund
--------------------------------------------------------------
Six Months Ended
June 30, 1996 Year Ended
(Unaudited) December 31, 1995
-------------------------- ----------------------------
Shares Amount Shares Amount
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
Sales 42,211 $ 42,211 54,191,074 $ 54,191,074
Issued to shareholders electing to receive
payments of distributions in Fund shares 356,032 356,032 1,745,191 1,745,191
Redemptions (10,025,409) (10,025,409) (140,508,593) (140,508,593)
------------ ------------ ------------ ------------
Net decrease (9,627,166) $ (9,627,166) (84,572,328) $ (84,572,328)
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Money Market Fund
--------------------------------------------------------------
Six Months Ended For the Period from the
June 30, 1996 Start of Business, April 5, 1995,
(Unaudited) to December 31, 1995
-------------------------- ----------------------------
Shares Amount Shares Amount
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales 274,322,684 $274,322,684 197,167,299 $197,167,299
Issued to shareholders electing to receive
payments of distributions in Fund shares 207,328 207,328 180,366 180,366
Redemptions (265,832,149) (265,832,149) (184,396,424) (184,396,424)
------------ ------------ ------------ ------------
Net increase 8,697,863 $ 8,697,863 12,951,241 $ 12,951,241
============ ============ ============ ============
</TABLE>
(4) Transactions with Affiliates
Eaton Vance Management (EVM) serves as the administrator of the
Funds, but receives no compensation. The Portfolio has engaged Boston
Management and Research (BMR), a subsidiary of EVM, to render
investment advisory services. See Note 2 of the Portfolio's Notes to
Financial Statements which are included elsewhere in this report. To
enhance the net income of the Money Market Fund for the period ended
June 30, 1996, $14,281 of expenses related to the operation of the
Fund were allocated, on a preliminary basis, to EVM. Except as to
Trustees of the Funds and the Porfolio who are not members of EVM's
or BMR's organization, officers and Trustees receive remuneration
for their services to each Fund out of such investment adviser fee.
Certain of the officers and Trustees of the Funds and Portfolio are
officers and directors/trustees of the above organizations (Note 5).
(5) Distribution Plans
Money Market Fund and Liquid Assets Fund have adopted distribution
plans (individually the "Plan" and collectively the "Plans") pursuant
to Rule 12b-1 under the Investment Company Act of 1940, as amended.
The Plan for Money Market Fund requires the Fund to pay the Principal
Underwriter, Eaton Vance Distributors, Inc. (EVD), amounts equal to
1/366th of 0.75% of the Fund's daily net assets, for providing
ongoing distribution services and facilities to the Fund. The Fund
will automatically discontinue payments to EVD during any period in
which there are no outstanding Uncovered Distribution Charges. The
Plan for Liquid Assets Fund does not provide for annual payments to
EVD for providing such services and facilities, however the Plan does
require the Fund to calculate outstanding Uncovered Distribution
Charges. Each Fund's balance of Uncovered Distribution Charges is
equivalent to the sum of (i) 6.25% (5% for Liquid Assets Fund) of the
aggregate amount received by the Fund for shares sold plus (ii)
distribution fees calculated by applying the rate of 1% over the
prevailing prime rate to the outstanding balance of Uncovered
Distribution Charges of EVD reduced by the aggregate amount of
contingent deferred sales charges (Note 6) and amounts theretofore
paid to EVD. For the period ended June 30, 1996, Money Market Fund
paid or accrued $96,530 to or payable to EVD, representing 0.75%
(annualized) of the Fund's average daily net assets. At June 30,
1996, the amount of Uncovered Distribution Charges of EVD calculated
under the Plans for Money Market Fund and Liquid Assets Fund were
approximately $2,115,000 and $2,143,000, respectively.
In addition, the Plans authorize the Funds to make payments of
service fees to the Principal Underwriter, Authorized Firms and
other persons in amounts not exceeding 0.25% of each Fund's average
daily net assets. The Trustees of the Funds have initially
implemented the Plans by authorizing the Funds to make quarterly
service fee payments to the Principal Underwriter and Authorized
Firms in amounts not expected to exceed 0.15% (0.25% for Liquid
Assets Fund) per annum of each Fund's average daily net assets based
on the value of the Fund shares sold by such persons and remaining
outstanding for at least one year. For the period ended June 30,
1996, Money Market Fund and Liquid Assets Fund paid or accrued
service fees to or payable to EVD in the amount of $9,217 and
$35,215, respectively. Service fee payments are made for personal
services and/or maintenance of shareholder accounts. Service fees
paid to EVD and Authorized Firms are separate and distinct from the
sales commissions and distribution fees payable by a Fund to EVD, and
as such are not subject to automatic discontinuance when there are no
outstanding Uncovered Distribution Charges of EVD.
Certain of the officers and Trustees of the Funds are officers or
directors of EVD.
(6) Contingent Deferred Sales Charges
A contingent deferred sales charge (CDSC) is imposed on any
redemption of shares from either Money Market Fund or Liquid Assets
Fund made within six years of purchase. Generally, the CDSC is based
upon the lower of the net asset value at date of redemption or date
of purchase. No charge is levied on shares acquired by reinvestment
of dividends or capital gain distributions. The CDSC is imposed at
rates that begin at 5% in the case of redemptions in the first and
second year after purchase (6% and 5%, respectively, for shares of
Liquid Assets Fund purchased prior to August 1, 1994), declining one
percentage point each subsequent year. No CDSC is levied on shares
which have been sold to EVM or its affiliates or to their respective
employees or clients. CDSC charges are paid to EVD to reduce the
amount of Uncovered Distribution Charges calculated under each Fund's
Distribution Plan. CDSC charges received when no Uncovered
Distribution Charges exist will be credited to the Fund. EVD received
approximately $149,000 and $97,000 of CDSC paid by shareholders for
the period ended June 30, 1996 for the Money Market Fund and Liquid
Assets Fund, respectively.
(7) Investment Transactions
Increases and decreases in the Funds' investment in the Portfolio for
the period ended June 30, 1996 are as follows:
<TABLE>
<CAPTION>
Cash Management Liquid Assets Money Market
Fund Fund Fund
---------------- ------------ --------------
<S> <C> <C> <C>
Increase $291,010,965 $ 132,383 $274,481,384
Decrease 301,930,172 10,676,595 264,302,354
</TABLE>
Cash Management Portfolio
Portfolio of Investments
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Commercial Paper -- 85.2%
- --------------------------------------------------------------------------------------------------------------------------
Ratings (unaudited)
- ---------------------
Principal
Standard Amount
& Poor's Moody's (000 Omitted) Value
- --------------------------------------------------------------------------------------------------------------------------
Automotive -- 1.0%
<S> <C> <C> <C> <C>
A-1 P-1 $ 2,000 Ford Motor Credit Co. 5.36%, 7/22/96 $ 1,993,747
------------
Banking & Finance -- 26.1%
A-1 P-1 $ 3,400 American Express Credit Corp. 5.34%, 7/22/96 $ 3,389,409
A-1+ P-1 4,000 Asset Securitization Coop. Corp. 5.30%, 7/3/96 (2) 3,998,822
A-1+ P-1 2,200 Associates Corp. of No. America 5.28%, 7/15/96 2,195,483
A-1+ P-1 2,000 Associates Corp. of No. America 5.38%, 9/11/96 1,978,480
A-1+ P-1 2,000 Associates Corp. of No. America 5.38%, 9/12/96 1,978,181
A-1 P-1 4,000 CIT Group Holdings Inc. 5.35%, 7/29/96 3,983,356
A-1+ P-1 5,900 Central Corporate Credit Union 5.35%, 7/12/96 5,890,355
A-1+ P-1 1,780 CIESCO 5.28%, 7/18/96 1,775,562
A-1+ P-1 2,000 CIESCO 5.27%, 7/22/96 1,993,852
A-1+ P-1 2,000 CIESCO 5.375%, 9/4/96 1,980,590
A-1+ P-1 2,000 Corporate Asset Funding Co. 5.27%, 7/16/96 (1) 1,995,609
A-1+ P-1 4,000 Corporate Asset Funding Co. 5.25%, 8/8/96 3,977,833
A-1 P-1 4,000 Corporate Receivables Corp. 5.35%, 7/15/96 (1) 3,991,678
A-1+ P-1 3,000 CXC Incorporated 5.35%, 7/11/96 (2) 2,995,542
A-1+ P-1 735 National Rural Utilities Coop. Co. 5.35%, 8/15/96 730,085
A-1+ P-1 3,250 National Rural Utilities Coop. Co. 5.35%, 8/19/96 3,226,334
A-1+ P-1 3,700 Norwest Financial Inc. 5.34%, 9/13/96 3,659,386
A-1+ P-1 2,000 Norwest Financial Inc. 5.40%, 9/27/96 1,973,600
-------------
$ 51,714,157
-------------
Chemicals -- 2.0%
A-1+ P-1 $ 2,900 E.I. DuPont de Nemours & Co. 5.24%, 8/23/96 (2) $ 2,877,628
A-1+ P-1 1,100 E.I. DuPont de Nemours & Co. 5.34%, 9/19/96 1,086,947
-------------
$ 3,964,575
-------------
Electrical Equipment & Electronics -- 6.7%
A-1+ P-1 $ 1,900 General Electric Capital Corp. 5.29%, 7/18/96 $ 1,895,253
A-1+ P-1 1,200 General Electric Capital Corp. 5.30%, 7/19/96 1,196,820
A-1+ P-1 3,000 General Electric Capital Corp. 5.30%, 7/23/96 2,990,284
A-1+ P-1 1,400 General Electric Capital Corp. 5.29%, 7/26/96 1,394,857
A-1+ P-1 1,800 Motorola Credit Corp. 5.24%, 7/12/96 1,797,118
A-1+ P-1 4,000 Motorola Inc. 5.34%, 8/20/96 3,970,333
-------------
$ 13,244,665
-------------
Food & Beverages -- 6.2%
A-1+ P-1 $ 2,000 Anheuser-Busch Co. 5.28%, 8/15/96 $ 1,986,800
A-1+ P-1 2,000 Coca-Cola Co. 5.28%, 8/9/96 1,988,560
A-1+ P-1 4,000 Coca-Cola Co. 5.36%, 9/3/96 3,961,885
A-1 P-1 797 Heinz (H.J.) Co. 5.35%, 7/29/96 793,684
A-1 P-1 1,200 Heinz (H.J.) Co. 5.37%, 7/30/96 1,194,809
A-1+ P-1 2,400 Nestle Capital Corp. 5.27%, 8/19/96 2,382,785
-------------
$ 12,308,523
-------------
Household Products -- 3.7%
A-1+ P-1 $ 4,000 Procter & Gamble Co. 5.26%, 7/19/96 $ 3,989,480
A-1+ P-1 1,500 Procter & Gamble Co. 5.32%, 8/5/96 1,492,242
A-1+ P-1 1,925 Unilever Capital Corp. 5.34%, 8/26/96 (2) 1,909,010
-------------
$ 7,390,732
-------------
Insurance -- 18.7%
A-1+ P-1 $ 2,400 AI Credit Corp. 5.36%, 9/16/96 $ 2,372,485
A-1+ P-1 3,600 AIG Funding Inc. 5.26%, 7/8/96 3,596,318
A-1+ P-1 2,250 American General Finance Co. 5.36%, 8/21/96 2,232,915
A-1+ P-1 1,800 American General Finance Co. 5.39%, 8/29/96 1,784,100
A-1+ P-1 2,500 APC Funding Inc. 5.32%, 7/2/96 2,499,630
A-1+ P-1 3,090 John Hancock Capital 5.28%, 7/11/96 (2) 3,085,468
A-1+ P-1 4,000 Metlife Funding Inc. 5.36%, 9/10/96 3,957,716
A-1+ P-1 4,000 Prudential Funding Corp. 5.37%, 8/28/96 3,965,393
A-1+ P-1 1,600 SAFECO Credit Co. Inc. 5.35%, 8/7/96 1,591,202
A-1+ P-1 2,000 SAFECO Credit Co. Inc. 5.28%, 8/8/96 1,988,853
A-1+ P-1 2,000 SAFECO Credit Co. Inc. 5.28%, 8/29/96 1,982,693
A-1 P-1 2,000 Transamerica Finance Corp. 5.31%, 7/9/96 1,997,640
A-1+ P-1 4,000 USAA Capital Corp. 5.25%, 7/2/96 3,999,416
A-1+ P-1 2,000 USAA Capital Corp. 5.26%, 8/22/96 1,984,804
-------------
$ 37,038,633
-------------
Office Equipment -- 1.5%
A-1+ P-1 $ 3,000 Pitney Bowes Credit Corp. 5.35%, 9/17/96 $ 2,965,225
-------------
Oil -- 6.5%
A-1+ P-1 $ 4,000 Chevron Oil Finance Co. 5.35%, 7/30/96 $ 3,982,761
A-1+ P-1 4,000 Chevron Oil Finance Co. 5.35%, 7/31/96 3,982,167
A-1+ P-1 2,000 Cortez Capital Corp. 5.30%, 7/9/96 (2) 1,997,644
A-1+ P-1 3,000 Exxon Imperial US Inc. 5.28%, 7/18/96 (2) 2,992,520
-------------
$ 12,955,092
-------------
Pharmaceuticals -- 7.7%
A-1+ P-1 $ 3,500 Ciba-Geigy Corp. 5.38%, 7/3/96 $ 3,498,954
A-1+ P-1 3,000 Eli Lilly & Co. 5.29%, 7/10/96 2,996,032
A-1+ P-1 3,000 Eli Lilly & Co. 5.35%, 9/6/96 2,970,129
A-1+ P-1 2,500 Schering Corp. 5.27%, 7/17/96 2,494,144
A-1+ P-1 980 Schering Corp. 5.24%, 8/22/96 972,582
A-1+ P-1 2,300 Schering Corp. 5.25%, 8/27/96 2,280,881
-------------
$ 15,212,722
-------------
Telecommunications -- 3.2%
A-1+ P-1 $ 2,000 Ameritech Capital Corp. 5.24%, 7/2/96 (2) $ 1,999,709
A-1+ P-1 1,000 Ameritech Corp. 5.28%, 8/9/96 994,280
A-1+ P-1 2,000 AT&T Corp. 5.31%, 7/17/96 1,995,280
A-1+ P-1 1,400 AT&T Corp. 5.25%, 7/26/96 1,394,896
-------------
$ 6,384,165
-------------
Utilities -- 1.9%
A-1 P-1 $ 240 Potomac Electric Power Co. 5.34%, 7/3/96 $ 239,929
A-1 P-1 1,025 Potomac Electric Power Co. 5.36%, 7/17/96 1,022,558
A-1+ P-1 500 TECO Finance Inc. 5.28%, 7/3/96 (1) 499,853
A-1+ P-1 2,100 TECO Finance Inc. 5.37%, 8/14/96 (1) 2,086,217
-------------
$ 3,848,557
-------------
Total Commercial Paper, at amortized cost $169,020,793
=============
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
U.S. Governement Obligations - 14.8%
- ---------------------------------------------------------------------------------------------------------------------------
Principal
Amount
(000 Omitted) Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 5,000 FHLB Discount Notes 5.40%, 7/1/96 $ 5,000,000
5,000 FHLMC Discount Notes 5.28%, 7/3/96 4,998,533
6,400 FHLMC Discount Notes 5.25%, 8/6/96 6,366,400
3,065 FNMA Discount Notes 5.25%, 8/13/96 3,045,780
10,000 FNMA Discount Notes 5.265%, 9/5/96 9,903,475
-------------
Total U.S. Government Obligations, at amortized cost $ 29,314,188
-------------
Total Investments -- 100.0% $198,334,981
Other Assets, less Liabilities -- 0.0% 54,162
-------------
Net Assets -- 100.0% $198,389,143
=============
(1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified institutional buyers. It is the Portfolio's intention to hold
the security until maturity. At June 30, 1996, the value of these securities amounted to $8,573,357 or 4.3% of the
Portfolio's net assets.
(2) Security has been issued under section 4(2) of the Securities Act of 1993 and is generally regarded as restricted and
illiquid. These securities may be resold in transactions exempt from registration or to the public if the securities are
registered. All such securities held have been deemed by the Portfolio's Board of Trustees to be liquid and were purchased
with the expectation that resale would not be necessary. At June 30, 1996, the value of these securities amounted to
$21,856,343 or 11.0% of the Portfolio's net assets.
The accompanying notes are an integral part of the financial statements
</TABLE>
<TABLE>
<CAPTION>
Cash Management Portfolio
Financial Statements
Statement of Assets and Liabilities
- ---------------------------------------------------------------------------------------------------------------------------
June 30, 1996 (Unaudited)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Investments, at amortized cost and value (Note 1A) $198,336,617
Cash 111,718
Deferred organization expenses (Note 1Dx) 7,735
-------------
Total assets $198,456,070
Liabilities:
Payable to affiliate --
Trustees' fees $ 1,345
Accrued expenses 12,793
-------
Total liabilities 14,138
-------------
Net Assets $198,441,932
=============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals $198,441,932
=============
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Statement of Operations
- ----------------------------------------------------------------------------------------------------------------------------
For the Six Months Ended June 30, 1996 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Interest Income $5,406,341
Expenses --
Investment adviser fee (Note 2) $502,004
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 4,727
Custodian fee 50,235
Legal and accounting services 20,903
Amortization of deferred organization expenses (Note 1D) 1,360
Miscellaneous 506
--------
Total expenses 579,735
----------
Net investment income $4,826,606
==========
The accompanying notes are an integral part of the financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
- ----------------------------------------------------------------------------------------------------------------------------
Six Months Ended
June 30, 1996 Year Ended
(Unaudited) December 31, 1995
-------------- ----------------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $ 4,826,606 $ 10,343,333
Capital transactions --
Contributions 565,624,732 815,124,407
Withdrawals (576,909,121) (843,381,480)
------------- -------------
Decrease in net assets resulting from capital transactions $ (11,284,389) $ (28,257,073)
------------- -------------
Total decrease in net assets $ (6,457,783) $ (17,913,740)
Net Assets:
At beginning of period 204,899,715 222,813,455
------------- -------------
At end of period $198,441,932 $204,899,715
============= =============
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Supplementary Data
- ----------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended December 31,
June 30, 1996 --------------------------------
(Unaudited) 1995 1994*
------------ ---------- ----------
<S> <C> <C> <C>
Ratios (as a percentage of net assets):
Expenses 0.58%+ 0.60% 0.58%+
Net investment income 4.83%+ 5.36% 4.22%+
+ Computed on an annualized basis.
* For the period from the start of business, May 2, 1994, to December 31, 1994.
The accompanying notes are an integral part of the financial statement
</TABLE>
Notes to Financial Statements
June 30, 1996
(Unaudited)
(1) Significant Accounting Policies
Cash Management Portfolio (the Portfolio) is registered under the
Investment Company Act of 1940 as a diversified open-end management
investment company which was organized as a trust under the laws of
the State of New York on May 1, 1992. The Declaration of Trust
permits the Trustees to issue interests in the Portfolio. The
following is a summary of significant accounting policies of the
Portfolio. The policies are in conformity with generally accepted
accounting principles.
A. Security Valuation -- The Portfolio values investment securities
utilizing the amortized cost valuation technique permitted by Rule
2a-7 of the Investment Company Act of 1940, pursuant to which the
Portfolio must comply with certain conditions. This technique
involves initially valuing a portfolio security at its cost and
thereafter assuming a constant amortization to maturity of any
discount or premium. It is normal practice of the Portfolio to hold
portfolio securities to maturity and realize par value unless such
sale or other disposition is mandated by withdrawal requests or other
extraordinary circumstances.
B. Income -- Interest income is determined on the basis of interest
accrued, adjusted for amortization of premium or accretion of
discount when required for federal income tax purposes.
C. Income Taxes -- The Portfolio is treated as a partnership for
Federal tax purposes. No provision is made by the Portfolio for
federal or state taxes on any taxable income of the Portfolio because
each investor in the Portfolio is ultimately responsible for the
payment of any taxes. Since some of the Portfolio's investors are
regulated investment companies that invest all or substantially all
of their assets in the Portfolio, the Portfolio normally must satisfy
the applicable source of income and diversification requirements
(under the Code), in order for its investors to satisfy them. The
Portfolio will allocate at least annually, among its investors each
investor's distributive share of the Portfolio's net taxable
investment income, net realized capital gains, and any other items of
income, gain, loss, deduction or credit.
D. Deferred Organization Expenses -- Costs incurred by the Portfolio
in connection with its organization are being amortized on the
straight-line basis over five years.
E. Use of Estimates -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
F. Other -- Investment transactions are accounted for on a trade date
basis.
G. Interim Financial Information -- The interim financial statements
relating to June 30, 1996 and for the six month period then ended
have not been audited by independent certified public accountants,
but in the opinion of the Portfolio's management, reflect all
adjustments necessary for the fair presentation of the financial
statements.
(2) Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Boston Management and
Research (BMR), a wholly-owned subsidiary of Eaton Vance Management
(EVM), as compensation for management and investment advisory
services rendered to the Portfolio. The fee is computed at the rate
of 1/2 of 1% per annum of the Portfolio's average daily net assets
and amounted to $502,004 for the six months ended June 30, 1996.
Except as to Trustees of the Portfolio who are not members of EVM's
or BMR's organization, officers and Trustees receive remuneration for
their services to the Portfolio out of such investment adviser fee.
Certain of the officers and Trustees of the Portfolio are officers
and directors/trustees of the above organizations.
(3) Line of Credit
The Portfolio participates with other portfolios and funds managed by
BMR or EVM in a $120 million unsecured line of credit agreement with
a bank. The line of credit consists of a $20 million committed
facility and a $100 million discretionary facility. Borrowings will
be made by the Portfolio solely to facilitate the handling of unusual
and/or unanticipated short-term cash requirements. Interest is
charged to each portfolio or fund based on its borrowings at an
amount above either the bank's adjusted certificate of deposit rate,
a variable adjusted certificate of deposit rate, or a federal funds
effective rate. In addition, a fee computed at an annual rate of 1/4
or 1% of 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 Portfolio did not have any significant borrowings or allocated
fees during the period.
(4) Investments
Purchases and sales (including maturities) of investments, during the
six months ended June 30, 1996, exclusive of U.S. Government
securities, aggregated $549,051,211 and $659,595,674, respectively.
Purchases and sales (including maturities) of U.S. Government
securities aggregated $409,621,524 and $310,576,956, respectively.
Investment Management
Eaton Vance
Mutual Funds
Trust
24 Federal Street
Boston, MA 02110
Officers
M. Dozier Gardner
President, Trustee
H. Day Brigham, Jr.
Vice President
James B. Hawkes
Vice President, Trustee
William H. Ahern, Jr.
Vice President
Michael B. Terry
Vice President
James L. O'Connor
Treasurer
Thomas Otis
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Chairman, Newspapers of
New England, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of
Investment Banking, Harvard
University Graduate School of
Business Administration
Norton H. Reamer
President and Director, United Asset
Management Corporation
John L. Thorndike
Director, Fiduciary
Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
Cash Management
Portfolio
24 Federal Street
Boston, MA 02110
Officers
M. Dozier Gardner
President, Trustee
James B. Hawkes
Vice President, Trustee
Michael B. Terry
Vice President
and Portfolio Manager
James L. O'Connor
Treasurer
Thomas Otis
Secretary
Trustees
H. Day Brigham, Jr.
Vice President,
Eaton Vance Management
Donald R. Dwight
President, Dwight Partners, Inc.
Chairman, Newspapers of
New England, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of
Investment Banking, Harvard
University Graduate School of
Business Administration
Norton H. Reamer
President and Director, United Asset
Management Corporation
John L. Thorndike
Director, Fiduciary Company
Incorporated
Jack L. Treynor
Investment Adviser and Consultant
[THIS PAGE INTENTIONALLY LEFT BLANK]
Portfolio Investment Adviser
Boston Management and Research
24 Federal Street
Boston, MA 02110
Fund Administrator
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
89 South Street
P.O. Box 1537
Boston, MA 02205-1537
Transfer Agent
First Data Investors Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
(800) 262-1122
Independent Accountants
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
This report must be preceded or accompanied by
a current prospectus which contains more complete information on the
Fund, including its distribution plan, sales charges and expenses.
Please read the prospectus carefully before you invest or send money.
Eaton Vance
Mutual Funds Trust
24 Federal Street
Boston, MA 02110 MMSRC-8/96
