[LOGO REVERSES OUT OF A COLOR BAR ON RIGHT SIDE OF COVER]
Eaton Vance
Cash Management Fund
Eaton Vance
Liquid Assets Fund
Eaton Vance
Money Market Fund
Annual
Shareholder Report
December 31, 1995
To Shareholders
Economic activity in the United States was balanced during 1995, providing
investors a favorable period of moderate growth and low inflation. The
nation's annualized rate of economic growth was 2.7% in the first quarter
and 1.3% in the second quarter of the year, rising to 4.2% in the third
quarter. The fourth quarter rate is expected to be between 2% and 3%.
The crucial issue during the first half of the year was whether the Federal
Reserve's previous tightening of its target federal funds rate would cause a
recession or would merely slow the economy's growth. As the year progressed,
it became clear that the Fed had successfully engineered a "soft landing."
In July the Fed lowered the federal funds rate by a quarter of a percentage
point, the first downward change since September, 1992. Another quarter-
point decrease was announced in early December. These changes helped the
economy continue to advance at a slow but steady pace.
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 higher quality.
[GRAPH OMMITTED AS FOLLOWS]
Short-term rates began
to decline during 1995
Federal Funds Rate,
month-end yields
Verticle bar reads
7%
6
5
4
3
The following figures were used to create the graph
Date Fed. Funds Rate
12/93 3
1/94 3.5
2/94 3.5
3/94 3.625
4/94 4
5/94 4.625
6/94 4.125
7/94 3.375
8/94 4.875
9/94 6
10/94 4.9375
11/94 5.625
12/94 5.5
1/95 5.75
2/95 6.125
3/95 6
4/95 6.1875
5/95 6.1875
6/95 6.25
7/95 5.9375
8/95 5.875
9/95 5.75
10/95 5.9375
11/95 6
12/95 5.25
Horizonatal bar reads
12/93 6/94 12/94 6/95 12/95
Source: Bloomberg, L.P.
[END GRAPH]
Naturally, an investment in one of the Portfolio's money market 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 is continuing to maintain an average maturity of between 30
and 40 days.
Sincerely,
[PHOTO MR. GARDNER]
/s/M. Dozier Gardner
M. Dozier Gardner
President of Cash Management
Portfolio
February 11, 1996
<TABLE>
EV Money Market Funds
Financial Statements
Statements of Assets and Liabilities
- ----------------------------------------------------------------------------------------------------------------------------
December 31, 1995
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cash Liquid Money
Management Assets Market
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
Assets:
Investment in Portfolio, at amortized cost and value (Note 1A) $157,055,316 $34,332,460 $13,511,939
Receivable for Fund shares sold 626,456 -- 286,941
Receivable from Investment Adviser -- -- 17,405
Deferred organization expenses (Note 1D) -- -- 35,320
------------ ----------- -----------
Total assets $157,681,772 $34,332,460 $13,851,605
Liabilities:
Dividends payable $ 192,952 $ 31,916 $ 11,233
Payable for Fund shares redeemed 2,221,979 261,795 877,808
Payable to affiliate --
Trustees' fees 853 42 43
Accrued expenses 14,870 12,443 11,280
------------ ----------- -----------
Total liabilities 2,430,654 306,196 900,364
------------ ----------- -----------
Net Assets (represented by paid-in capital) $155,251,118 $34,026,264 $12,951,241
============ =========== ===========
Shares of Beneficial Interest Outstanding 155,251,118 34,026,264 12,951,241
============ =========== ===========
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>
Statements of Operations
- ----------------------------------------------------------------------------------------------------------------------------
For the Year Ended December 31, 1995
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cash Liquid Money
Management Assets Market
Fund Fund Fund*
---------- ---------- --------
<S> <C> <C> <C>
Investment Income (Note 1B):
Interest income allocated from Portfolio $7,634,561 $3,230,444 $622,238
Expenses allocated from Portfolio (763,659) (316,708) (63,543)
---------- ---------- --------
Total investment income $6,870,902 $2,913,736 $558,695
---------- ---------- --------
Expenses --
Compensation of Trustees not members of the
Administrator's organization (Note 4) $3,057 $1,430 $86
Custodian fees 12,737 6,318 2,084
Distribution fees (Note 5) -- 14,584 79,429
Transfer and dividend disbursing agent fees 91,172 45,465 5,604
Registration costs 33,999 40,079 12,608
Printing and postage 29,386 38,452 16,206
Legal and accounting services 12,375 17,247 7,267
Amortization of organization expenses (Note 1D) -- -- 6,180
Miscellaneous 6,534 6,271 2,622
---------- ---------- --------
Total expenses $ 189,260 $169,846 $132,086
Deduct allocation of expenses to the Administrator (Note 4) -- -- (17,405)
---------- ---------- --------
Net expenses $ 189,260 $169,846 $114,681
---------- ---------- --------
Net investment income $6,681,642 $2,743,890 $444,014
========== ========== ========
* For the Money Market Fund, the Statement of Operations 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>
Statements of Changes in Net Assets
- ----------------------------------------------------------------------------------------------------------------------------
For the Year Ended December 31, 1995
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
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.
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
For the Year Ended December 31, 1994
- ----------------------------------------------------------------------------------------------------------------------------
Cash Liquid
Management Assets
Fund Fund
------------- ------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $ 3,492,618 $ 2,472,832
Distributions to shareholders from net investment income (Note 2) (3,492,618) (2,472,832)
Net increase (decrease) in net assets from Fund share
transactions (Note 3) (578,137) 108,032,942
------------ ------------
Net increase (decrease) in net assets $ (578,137) $108,032,942
Net Assets:
At beginning of year 112,199,645 10,565,650
------------ ------------
At end of year $111,621,508 $118,598,592
============ ============
The accompanying notes are an integral part of the financial statements
</TABLE>
<TABLE>
Financial Highlights
- --------------------------------------------------------------------------------------------------------------------------------
Cash Management Fund
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Year Ended December 31,
---------------------------------------------------------------------------------
1995 1994 1993 1992 1991+
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value -- Beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from operations:
Net investment income $ 0.0522 $ 0.0345 $ 0.0251 $ 0.0306 $ 0.0537
Less distributions:
From net investment income $(0.0522) $(0.0345) $(0.0251) $(0.0306) $(0.0537)
-------- -------- -------- -------- --------
Net asset value -- End of year $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ========
Total Return (2) 5.35% 3.49% 2.54% 3.14% 5.51%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted) $155,251 $111,622 $112,200 $161,986 $195,488
Ratios: (As a percentage of average daily
net assets)(1):
Expenses 0.74% 0.84% 0.67% 0.76% 0.75%
Net investment income 5.22% 3.40% 2.51% 3.09% 5.44%
+ Audited by the Fund's previous auditors.
Note: Certain of the per share amounts have been compiled using average shares outstanding. (1) Includes the Fund's share of Cash
Management Portfolio's allocated income and expenses 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.
The accompanying notes are an integral part of the financial statements
</TABLE>
<TABLE>
Financial Highlights
- --------------------------------------------------------------------------------------------------------------------------------
Liquid Assets Fund
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Year Ended December 31, Year Ended March 31,
-------------------------------------------- --------------------------
1995 1994 1993* 1993+ 1992+
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value -- Beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from operations:
Net investment income $ 0.0505 $ 0.0328 $ 0.0113 $ 0.0217 $ 0.0415
Less distributions:
From net investment income $(0.0505) $(0.0328) $(0.0113) $(0.0217) $(0.0415)
-------- -------- -------- -------- --------
Net asset value -- End of year $ 1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======== ======== ========
Total Return (2) 5.16% 3.29% 1.14% 2.35% 4.38%
Ratios/Supplemetal Data:
Net assets, end of year (000 omitted) $34,026 $118,599 $ 10,566 $ 18,553 $ 9,145
Ratios (As a percentage of average daily
net assets)(1):
Expenses 0.91% 0.94% 1.49%++ 0.92% 1.23%
Net investment income 5.11% 3.55% 1.66%++ 2.33% 4.30%
<CAPTION>
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:
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 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 as 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>
Financial Highlights
- --------------------------------------------------------------------------------------------------------------------------------
Money Market Fund
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
For the period from the start of business, April 5, 1995 to December 31, 1995
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value -- Beginning of year $ 1.00
--------
Income from operations:
Net investment income $ 0.0312
Less distributions:
From net investment income $(0.0312)
--------
Net asset value -- End of year $ 1.00
========
Total Return (2) 3.17%
Ratios/Supplemental Data:
Net assets, end of year (000 omitted) $ 12,951
Ratios: (As a percentage of average daily
net assets)(1):
Expenses 1.68%
Net investment income 4.19%
<CAPTION>
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:
<S> <C>
Net investment income per share $ 0.0300
--------
Ratios: (As a percentage of average daily net assets)(1):
Expenses 1.85%
Net investment income 4.03%
(1) Includes the Fund's share of Cash Management Portfolio's allocated income and expenses for the period from April 5, 1995, to
December 31, 1995.
(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.
</TABLE>
Notes to Financial Statements
December 31, 1995
(1) Significant Accounting Policies
Eaton Vance Mutual Funds Trust (the Trust) is an entity of the type 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 Fund's were reorganized as series of the Trust on August 31, 1995. Cash
Management Fund was originally organized as a separate Massachusetts
business trust and Liquid Assets Fund and Money Market Fund are formerly
series of Eaton Vance Liquid Assets Trust. The reorganizations were effected
to reduce Fund operating costs, thereby enhancing long-term returns, and
improve operational flexibility.
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 Porfolio reflect the Fund's proportionate interest in the net assets of
the Portfolio (76.6% for Cash Management Fund, 16.8% for Liquid Assets Fund
and 6.6% for Money Market Fund at December 31, 1995). 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 -- The Fund's net investment income consists of the Fund's pro
rata share of the net investment income of the Portfolio, less all actual
and accrued expenses of the Fund determined in accordance with generally
accepted accounting principles.
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 investment, 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. Other -- Investment transactions are accounted for on a trade date basis.
(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
statments 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.
(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 Trust shares were as follows:
<TABLE>
<CAPTION>
Cash Management Fund
--------------------------------------------------------------
Year Ended Year Ended
December 31, 1995 December 31, 1994
---------------------------- ----------------------------
Shares Amount Shares Amount
----------- ------------ ----------- ------------
<S> <S> <S> <S> <S>
Sales 554,615,530 $554,615,530 746,678,214 $746,678,214
Issued to shareholders electing to receive
payments of distributions in Fund shares 4,331,670 4,331,670 1,864,353 1,864,353
Redemptions (515,317,590) (515,317,590) (749,120,704) (749,120,704)
----------- ----------- ----------- -----------
Net increase (decrease) 43,629,610 $ 43,629,610 (578,137) $ (578,137)
=========== ============ =========== ===========
<CAPTION>
Liquid Assets Fund
--------------------------------------------------------------
Year Ended Year Ended
December 31, 1995 December 31, 1994
---------------------------- ----------------------------
Shares Amount Shares Amount
----------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
Sales 54,191,074 $ 54,191,074 475,275,080 $475,275,080
Issued to shareholders electing to receive
payments of distributions in Fund shares 1,745,191 1,745,191 1,547,336 1,547,336
Redemptions (140,508,593) (140,508,593) (368,789,474) (368,789,474)
----------- ------------ ----------- -----------
Net increase (decrease) (84,572,328) $(84,572,328) 108,032,942 $108,032,942
=========== ============ =========== ============
<CAPTION>
Money Market Fund
---------------------------------
For the Period from the
Start of Business, April 5, 1995,
to December 31, 1995
---------------------------------
Shares Amount
--------------- ---------------
<S> <C> <C>
Sales 197,167,299 $197,167,299
Issued to shareholders electing to receive
payments of distributions in Fund shares 180,366 180,366
Redemptions (184,396,424) (184,396,424)
----------- ------------
Net increase 12,951,241 $ 12,951,241
=========== ============
</TABLE>
(4) Transactions with Affiliates
Eaton Vance Management (EVM) serves as the administrator of 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 from the start of business, April 5, 1995, to
December 31, 1995, $17,405 of expenses related to the operation of the Fund
were allocated 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 renumeration for their services to the Fund out of such investment
adviser fee. Investors Bank & Trust Company (IBT) serves as custodian to the
Funds and the Portfolio. Prior to November 10, 1995, IBT was an affiliate of
EVM. Pursuant to the respective custodian aggreements IBT receives a fee
reduced by credits which are determined based on the average daily cash
balances the Fund or the Portfolio maintains with IBT. Certain of the
officers and Trustees of the Funds and Portfolios 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 1/365th 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 December 31, 1995, Money Market Fund paid or
accrued $79,429 to or payable to EVD, representing 0.75% (annualized) of
the Fund's average daily net assets. At December 31, 1995, the amount of
Uncovered Distribution Charges of EVD calculated under the Plans for Money
Market Fund and Liquid Assets Fund were approximately $434,000 and
$2,330,000, 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
the least one year. For the year ended December 31, 1995, Liquid Assets Fund
paid or accrued service fees to or payable to EVD in the amount of $14,584.
It is currently anticipated that the Money Market Fund will begin accruing
service fees during the quarter ending June 30, 1996. 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
$118,000 and $494,000 of CDSC paid by shareholders for the year ended
December 31, 1995 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
year ended December 31, 1995 are as follows:
Cash Management Liquid Assets Money Market
Fund Fund Fund*
--------------- ------------- ------------
Increase $558,592,974 $ 59,648,659 $196,882,774
Decrease 516,680,084 142,771,867 183,929,529
*For the period from the start of business, April 5, 1995, to
December 31, 1995.
Report of Independent Accounts
To the Trustees and Shareholders of
Eaton Vance Mutual Funds Trust:
We have audited the accompanying statement of assets and liabilities of
Eaton Vance Cash Management Fund, Eaton Vance Liquid Assets Fund and Eaton
Vance Money Market Fund (certain of the Funds constituting Eaton Vance
Mutual Funds Trust) as of December 31, 1995, and the related statement of
operations for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended and the financial
highlights for each of the periods indicated on the statements herein. For
Eaton Vance Money Market Fund the statements of operations and changes in
net assets and the financial highlights are for the period from April 5,
1995 (start of business) to December 31, 1995. These financial statements
and financial highlights are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these financial statements
and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and diclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the
custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the aforementioned funds of Eaton Vance Mutual Funds Trust as of
December 31, 1995, the results of their operations, the changes in their net
assets and their financial highlights, for the respective stated periods, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P .
Boston, Massachusetts
February 2, 1996
<TABLE>
Cash Management Portfolio
Portfolio of Investments
December 31, 1995
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Commercial Paper -- 85.6%
- ---------------------------------------------------------------------------------------------------------------------
Ratings (unaudited)
- -------------------
Principal
Standard Amount Value
& Poor's Moody's (000 Omitted) (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Agriculture -- 1.9%
A-1+ P-1 $3,000 Cargill Inc. 5.66%, 2/1/96 $ 2,985,379
A-1+ P-1 1,000 Cargill Inc. 5.63%, 1/30/96 995,465
------------
$ 3,980,844
------------
Automotive -- 0.6%
A-1 P-1 $1,300 Ford Motor Credit Corp. 5.75%, 1/5/96 $ 1,299,169
------------
Banking & Finance -- 21.2%
A-1+ P-1 $5,000 Asset Securitization Coop. Corp. 5.72%, 1/22/96 (2) $ 4,983,317
A-1+ P-1 2,100 Associates Corp. of No. America 5.70%, 1/23/96 2,092,685
A-1+ P-1 1,700 Associates Corp. of No. America 5.70%, 1/24/96 1,693,809
A-1+ P-1 2,000 Associates Corp. of No. America 5.52%, 3/4/96 1,980,680
A-1+ P-1 2,000 CIESCO 5.70%, 1/22/96 1,993,350
A-1+ P-1 3,000 CIESCO 5.65%, 2/22/96 2,975,517
A-1 P-1 2,200 CIT Group Holdings Inc. 5.75%, 1/10/96 2,196,838
A-1+ P-1 1,000 Corporate Asset Funding Co. Inc. 5.67%, 1/10/96 998,583
A-1+ P-1 3,200 Corporate Asset Funding Co. Inc. 5.68%, 1/29/96 3,185,863
A-1+ P-1 1,500 Corporate Asset Funding Co. Inc. 5.67%, 2/12/96 1,490,078
A-1 P-1 4,000 Corporate Receivables Corp. 5.75%, 1/31/96 (1) 3,980,833
A-1+ P-1 3,500 CXC Incorporated 5.65%, 1/25/96 (2) 3,486,817
A-1+ P-1 3,000 Delaware Funding Corp. 5.85%, 1/8/96 2,996,588
A-1+ P-1 1,000 Delaware Funding Corp. 5.68%, 2/7/96 994,162
A-1+ P-1 3,000 National Rural Utilities Coop. 5.70%, 1/17/96 2,992,400
A-1+ P-1 2,500 Norwest Financial Inc. 5.68%, 1/16/96 2,494,083
A-1+ P-1 3,000 Norwest Financial Inc. 5.46%, 3/22/96 2,963,145
-------------
$ 43,498,748
-------------
Chemicals -- 1.7%
A-1+ P-1 $3,500 E.I. DuPont de Nemours & Co., 5.45%, 2/23/96 (1) $ 3,471,917
-------------
Credit Union -- 2.4%
A-1+ P-1 $5,000 US Central Credit Union 5.65%, 1/19/96 $ 4,985,875
-------------
Electrical Equipment & Electronics -- 6.5%
A-1+ P-1 $2,900 General Electric Capital Corp. 5.68%, 1/16/96 $ 2,893,137
A-1+ P-1 1,750 General Electric Capital Corp. 5.69%, 2/5/96 1,740,319
A-1+ P-1 1,300 General Electric Capital Corp. 5.57%, 3/4/96 1,287,328
A-1+ P-1 2,000 General Electric Capital Corp. 5.56%, 3/15/96 1,977,142
A-1+ P-1 2,000 Motorola Credit Corp. 5.68%, 1/8/96 1,997,791
A-1+ P-1 3,500 Panasonic Finance Inc. 5.73%, 1/11/96 (2) 3,494,429
-------------
$ 13,390,146
-------------
Food & Beverages -- 7.2%
A-1+ P-1 $1,300 Anheuser-Busch Cos. Inc. 5.85%, 1/3/96 $ 1,299,578
A-1+ P-1 1,573 Anheuser-Busch Cos. Inc. 5.70%, 1/16/96 1,569,264
A-1+ P-1 3,700 Coca-Cola Co. 5.80%, 1/3/96 3,698,808
A-1+ P-1 2,300 Coca-Cola Co. 5.50%, 3/8/96 2,276,457
A-1+ P-1 3,000 Nestle Capital Corp. 5.51%, 3/18/96 2,964,644
A-1+ P-1 3,000 Nestle Capital Corp. 5.41%, 3/21/96 2,963,933
-------------
$ 14,772,684
-------------
Household Products -- 2.4%
A-1+ P-1 $2,000 Procter & Gamble Co. 5.65%, 1/11/96 $ 1,996,861
A-1+ P-1 1,000 Procter & Gamble Co. 5.66%, 1/19/96 997,170
A-1+ P-1 2,000 Procter & Gamble Co. 5.60%, 2/27/96 1,982,267
-------------
$ 4,976,298
-------------
Insurance -- 16.3%
A-1+ P-1 $3,500 AI Credit Corp. 5.67%, 1/23/96 $ 3,487,873
A-1+ P-1 2,500 AIG Funding Inc. 5.83%, 1/3/96 2,499,190
A-1+ P-1 1,500 APC Funding Corp. 5.70%, 1/29/96 1,493,350
A-1+ P-1 2,000 APC Funding Corp. 5.68%, 2/2/96 1,989,902
A-1+ P-1 400 APC Funding Corp. 5.72%, 2/8/96 397,585
A-1+ P-1 4,000 Marsh & McLennan Cos. Inc. 5.92%, 1/3/96 (2) 3,998,684
A-1+ P-1 1,900 Metlife Funding Inc. 5.64%, 1/26/96 1,892,559
A-1+ P-1 2,000 Metlife Funding Inc. 5.63%, 2/6/96 1,988,740
A-1+ P-1 2,600 Prudential Funding Corp. 5.68%, 1/12/96 2,595,487
A-1+ P-1 2,500 SAFECO Credit Co. Inc. 5.72%, 1/11/96 2,496,028
A-1+ P-1 1,000 SAFECO Credit Co. Inc. 5.65%, 1/17/96 997,489
A-1+ P-1 1,980 SAFECO Credit Co. Inc. 5.65%, 1/26/96 1,972,231
A-1 P-1 2,000 Transamerica Finance Corp. 5.77%, 1/9/96 1,997,436
A-1+ P-1 4,000 USAA Capital Corp. 5.68%, 1/18/96 3,989,271
A-1+ P-1 1,500 USAA Capital Corp. 5.67%, 1/24/96 1,494,566
-------------
$ 33,290,391
-------------
Leasing -- 1.0%
A-1+ P-1 $2,120 Conag Finance Inc. 5.73%, 1/24/96 (2) $ 2,112,239
-------------
Office Equipment -- 2.5%
A-1+ P-1 $750 Pitney Bowes Credit Corp. 5.65%, 1/30/96 $ 746,587
A-1+ P-1 1,300 Pitney Bowes Credit Corp. 5.63%, 1/31/96 1,293,901
A-1+ P-1 3,000 Pitney Bowes Credit Corp. 5.65%, 2/2/96 2,984,933
-------------
$ 5,025,421
-------------
Oil -- 5.7%
A-1+ P-1 $3,000 Chevron Oil Finance Co. 5.65%, 2/16/96 $ 2,978,342
A-1+ P-1 4,790 Chevron Oil Finance Co. 5.63%, 2/7/96 4,762,283
A-1+ P-1 3,700 Cortez Capital Corp. 5.72%, 2/8/96 3,677,660
-------------
$ 11,418,285
-------------
Pharmaceutical -- 2.4%
A-1+ P-1 $2,000 Schering Corp 5.67%, 1/16/96 $ 1,995,275
A-1+ P-1 3,000 Schering Corp 5.67%, 1/31/96 2,985,825
-------------
$ 4,981,100
-------------
Publishing -- 2.0%
A-1+ P-1 $3,900 Knight-Ridder Inc. 5.72%, 1/4/96 $ 3,898,141
-------------
Specialty Retailer -- 1.4%
A-1 P-1 $2,936 Melville Corp. 5.90%, 1/2/96 $ 2,935,519
-------------
Telecommunications -- 4.3%
A-1+ P-1 $1,500 AT&T Corp. 5.64%, 1/23/96 $ 1,494,830
A-1+ P-1 1,300 AT&T Corp. 5.67%, 1/25/96 1,295,086
A-1+ P-1 1,000 AT&T Corp. 5.66%, 2/1/96 995,126
A-1+ P-1 5,000 Ameritech Capital Funding Corp. 5.53%, 2/20/96 4,961,597
-------------
$ 8,746,639
-------------
Transportation -- 2.9%
A-1+ P-1 $6,000 United Parcel Service of America 5.90%, 1/4/96 $ 5,997,050
-------------
Utilities -- 3.2%
A-1+ P-1 $1,000 Consolidated Natural Gas Co. 5.78%, 1/12/96 $ 998,234
A-1 P-1 2,000 Potomac Electric Power Co. 5.75%, 1/8/96 1,997,764
A-1+ P-1 1,300 TECO Finance Inc. 5.75%, 1/18/96 (2) 1,296,470
A-1+ P-1 2,300 TECO Finance Inc. 5.64%, 2/13/96 (2) 2,284,506
-------------
$ 6,576,974
-------------
Total Commercial Paper, at amortized cost $ 175,357,440
=============
- ---------------------------------------------------------------------------------------------------------------------
U.S. Government Obligations -- 14.4%
- ---------------------------------------------------------------------------------------------------------------------
Principal
Amount Value
(000 Omitted) (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
$9,300 FHLB Discount Notes 5.57%, 1/25/96 $ 9,265,466
6,370 FHLB Discount Notes 5.41%, 2/26/96 6,316,393
1,700 FNMA Discount Notes 5.55%, 2/9/96 1,689,779
5,000 FNMA Discount Notes 5.50%, 3/5/96 4,951,111
7,400 FNMA Discount Notes 5.48%, 3/7/96 7,325,652
-------------
Total U.S. Government Obligations, at amortized cost $ 29,548,401
-------------
Total Investments -- 100.0% $ 204,905,841
Other Assets, less Liabilities -- 0.0% (6,126)
-------------
Net Assets -- 100.0% $ 204,899,715
=============
(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. At December 31, 1995, the
value of these securities amounted to $7,452,750 or 3.6% of Portfolio net assets.
(2) Restricted security-Investment in securities not registered under the Securities Act of 1933. At December 31, 1995,
the value of these securities amounted to $21,656,462 or 10.6% of Portfolio net assets (see Note 5).
The accompanying notes are an integral part of the financial statements
</TABLE>
<TABLE>
Cash Management Portfolio
Financial Statements
Statement of Assets and Liabilities
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
December 31, 1995
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Investments, at amortized cost and value (Note 1A) $204,905,841
Cash 2,874
Deferred organization expenses (Note 1D) 9,095
------------
Total assets $204,917,810
Liabilities:
Payable to affiliate --
Trustees' fees $ 2,590
Accrued expenses 15,505
-------
Total liabilities 18,095
------------
Net Assets $204,899,715
============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals $204,899,715
============
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Statement of Operations
- ------------------------------------------------------------------------------------------------------------------
For the Year Ended December 31, 1995
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Interest Income $11,487,243
Expenses:
Investment adviser fee (Note 2) $ 965,361
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 11,085
Custodian fee (Note 2) 128,026
Legal and Accounting services 29,874
Amortization of deferred organization expenses (Note 1D) 2,984
Printing and postage 665
Miscellaneous 10,630
----------
Total expenses $1,148,625
Deduct reduction of custodian fee (Note 2) (4,715)
----------
Net expenses 1,143,910
-----------
Net investment income $10,343,333
===========
The accompanying notes are an integral part of the financial statements
<CAPTION>
Statement of Changes in Net Assets
- ------------------------------------------------------------------------------------------------------------------
Year Ended December 31,
----------------------------------
1995 1994*
------------- --------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $ 10,343,333 $ 5,036,300
Capital transactions --
Contributions 815,124,407 866,299,681
Withdrawals (843,381,480) (648,622,546)
------------- -------------
Increase (decrease) in net assets resulting from capital transactions $ (28,257,073) $ 217,677,135
------------- -------------
Total increase (decrease) in net assets $(17,913,740) $222,713,435
Net Assets:
At beginning of year 222,813,455 100,020
------------- -------------
At end of year $ 204,899,715 $ 222,813,455
============= =============
* For the period from the start of business, May 2, 1994, to December 31, 1994.
<CAPTIN>
- ------------------------------------------------------------------------------------------------------------------
Supplementary Data
- ------------------------------------------------------------------------------------------------------------------
Year Ended December 31,
----------------------------------
1995 1994*
------------- -------------
<S> <C> <C>
Ratios (as a percentage of net assets):
Expenses 0.60% 0.58%+
Net investment income 5.36% 4.22%+
+ Computed on an annualized basis.
* For the period from the start of business, May 2, 1994, to December 31, 1994.
</TABLR>
Notes to Financial Statements
December 31, 1995
(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. Other -- Investment transactions are accounted for on the date the
securities are purchased or sold or the date on which they mature.
(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 1U2 of 1% per annum of the
Portfolio's average daily net assets and amounted to $965,361 for the year
ended December 31, 1995. Except as to Trustees of the Portfolio who are not
members of the EVM's of BMR's organization, officers and Trustees receive
remuneration for the services to the Portfolio out of such investment
adviser fee.
Investors Bank & Trust Company (IBT) serves as a custodian of the Portfolio.
Prior to November 10, 1995, IBT was an affiliate of EVM and BMR. Pursuant to
the custodian agreement, IBT receives a fee which is reduced by certain
credits based on the average daily cash balances the Portfolio maintains
with IBT. All significant credits used to reduce the custodian fee of the
Portfolio are reported as a reduction of expenses in the statement of
operations.
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 1U4
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 year
ended December 31, 1995, exclusive of U.S. Government securities aggregated
$1,310,127,504 and $1,168,138,603, respectively. Purchases and sales
(including maturities) of U.S. Government securities aggregated $357,595,484
and $401,505,498, respectively.
(5) Restricted Securities
The Portfolio is permitted to invest in securities that are subject to legal
or contractual restrictions on resale. These securities generally may be
resold in transactions exempt from registration or to the public if the
securities are registered. All such securities held have been determined by
the Portfolio's Trustees to be liquid and were purchased with the
expectation resale would not be necessary. Each restricted security held by
the Portfolio is rated A-1+ and P-1 by Moody's and Standard and Poors,
respectively, and at December 31, 1995, such securities, excluding 144A
issues, amounted to 10.6% of net assets. At December 31, 1995, restricted
securities, excluding 144A issues, were as follows:
</TABLE>
<TABLE>
<CAPTION>
Acquisition Acquisition Amortized
Security Date Cost Cost & Value
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Asset Securitization Coop. 5.72%, 1/22/96 11/22/95 $ 4,951,539 $ 4,983,317
Conag Finance Inc. 5.73%, 1/24/96 11/22/95 2,098,742 2,112,239
CXC Incorporation 5.65%, 1/25/96 12/21/95 3,480,774 3,486,817
Marsh & McLennan Cos. Inc. 5.92%, 1/3/96 12/27/95 3,995,396 3,998,684
Panasonic Finance Inc. 5.73%, 1/11/96 11/27/95 3,474,931 3,494,429
TECO Finance Inc. 5.75%, 1/18/96 12/07/95 1,291,279 1,296,470
TECO Finance Inc. 5.64%, 2/13/96 12/11/95 2,276,939 2,284,506
----------- -----------
$21,569,600 $21,656,462
=========== ===========
</TABLE>
Report of Independent Accountants
To the Trustees and Investors of
Cash Management Portfolio:
We have audited the accompanying statement of assets and liabilities, of
Cash Management Portfolio (the "Portfolio") including the portfolio of
investments as of December 31, 1995, and the related statement of operations
for the year then ended, changes in net assets and supplementary date for
the year ended December 31, 1995 and the period from May 2, 1994 (start of
business), to December 31, 1994. 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 generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements and
supplementary data are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned at December 31, 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
Cash Management Portfolio at December 31, 1995, the results of its
operations for the year then ended, and the changes in net assets and
supplementary data for the respective stated periods, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P .
Boston, Massachusetts
February 2, 1996
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
Dirctor, 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.
Trustee
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
Dirctor, Fiduciary Company
Incorporated
Jack L. Treynor
Investment Adviser and Consultant
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-2/96
