<PAGE>
[LOGO OF EATON VANCE APPEARS HERE]
Investing
for the [PHOTO OF STATUE OF LIBERTY APPEARS HERE]
21st
Century
Annual Report December 31, 1997
[PHOTO OF GOVERNMENT BUILDING APPEARS HERE]
EATON VANCE
SHORT-TERM
TREASURY
FUND
Eaton Vance
Global Management-Global Distribution
[PHOTO OF AMERICAN FLAG APPEARS HERE]
<PAGE>
Eaton Vance Short-Term Treasury Fund as of December 31, 1997
INVESTMENT UPDATE
[PHOTO OF M. DOZIER GARDNER APPEARS HERE]
M. Dozier Gardner,
President
Investment Environment
- --------------------------------------------------------------------------------
The Economy
. 1997 was a very good year for the U.S. economy, with gross domestic product
(GDP) increasing at a 3.8% rate. This exceeded the 2%-2.5% forecast at the
beginning of the year.
. Inflation was very low. The Consumer Price Index declined to 1.7% from 3.3%
in 1996, while wholesale prices fell by 1.2%, the largest decline since
1986.
. The growing economy continued to generate new jobs at a healthy rate, and
unemployment remained low throughout the year, dropping to 4.7% in December
from 5.4% in January.
. The combination of continued economic growth, low unemployment, and
declining inflation has been unusual. Many economists, including Federal
Reserve Chairman Alan Greenspan, attribute it to increasing global
competition and higher productivity brought on by advances in technology.
The Market
. The twelve-month period was generally positive and stable for short-term
bonds. The exception was an increase in the Federal Funds target rate by
0.25% to 5.50% on March 25. The Fed Funds rate is the rate for interbank
overnight loans and serves as a key interest rate barometer.
. As the chart to the right indicates, the yield on the six-month Treasury
bill moved within a relatively narrow range during the year. The yield
reached a low of 5.15% on February 14 and a high of 5.63% shortly after the
Federal Reserve tightening in March. The average yield during the period
was 5.40%.
The Fund
- --------------------------------------------------------------------------------
The Past Year
. During the year ended December 31, 1997, Eaton Vance Short-Term Treasury
Fund had a total return of 5.0%.
. This return resulted from an increase in the Fund's net asset value to
$64.88 per share on December 31, 1997 from $62.89 per share on December 31,
1996 and the reinvestment of $1.16 in income dividends.
About The Fund
. The Fund presents an attractive compromise between low-risk, low-yielding
money market funds and longer-term bond funds which have more credit and/or
maturity risk. Long-term bond funds generally offer higher yields than do
short-term bond funds.
. By investing solely in U.S. Treasury securities, the Fund enjoys top credit
quality within its universe of taxable fixed-income mutual funds.
[LINE GRAPH APPEARS HERE]
12/31/97 Short-Term Treasury Fund
6 month Treasury Bill Yield : 1/1/97 - 12/31/97
1/1/97 5.32
5.32
5.266
5.32
5.278
5.246
5.149
5.214
5.374
5.385
5.417
5.567
5.576
5.535
5.63
5.62
5.62
5.535
5.556
5.438
5.406
5.364
5.32
5.278
5.226
5.256
5.299
5.352
5.352
5.385
5.438
5.342
5.332
5.373
5.364
5.31
5.267
5.161
5.203
5.309
5.31
5.32
5.31
5.32
5.342
5.342
5.426
5.47
5.32
5.449
5.458
5.384
5.096
12/31/97 5.181
- --------------------------------------------------------------------------------
Mutual fund shares are not insured 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.
- --------------------------------------------------------------------------------
2
<PAGE>
Eaton Vance Short-Term Treasury Fund as of December 31, 1997
FUND PERFORMANCE
[LINE GRAPH APPEARS HERE]
Comparison of Change in Value of a $10,000 Investment in
Eaton Vance Short-Term Treasury Fund vs. the Merrill Lynch
182-day US Treasury Bill Index*
February 28, 1991 through December 31, 1997
Eaton Vance
Short Term 182 Day Treasury
Date Treasury Fund Bill Index
2/28/91 $10,000 $10,000
3/31/91 $10,044 $10,059
4/30/91 $10,099 $10,124
5/31/91 $10,145 $10,172
6/30/91 $10,183 $10,218
7/31/91 $10,232 $10,278
8/31/91 $10,276 $10,340
9/30/91 $10,322 $10,399
10/31/91 $10,365 $10,457
11/30/91 $10,409 $10,520
12/31/91 $10,451 $10,587
1/31/92 $10,480 $10,623
2/28/92 $10,506 $10,654
3/31/92 $10,536 $10,686
4/30/92 $10,570 $10,741
5/31/92 $10,594 $10,781
6/30/92 $10,627 $10,824
7/31/92 $10,665 $10,878
8/31/92 $10,687 $10,912
9/30/92 $10,713 $10,961
10/31/92 $10,733 $10,971
11/30/92 $10,752 $10,995
12/31/92 $10,780 $11,039
1/31/93 $10,804 $11,080
2/28/93 $10,822 $11,109
3/31/93 $10,844 $11,142
4/30/93 $10,866 $11,172
5/31/93 $10,883 $11,190
6/30/93 $10,909 $11,223
7/31/93 $10,931 $11,254
8/31/93 $10,953 $11,290
9/30/93 $10,977 $11,321
10/31/93 $10,997 $11,346
11/30/93 $11,018 $11,374
12/31/93 $11,034 $11,414
1/31/94 $11,058 $11,451
2/28/94 $11,080 $11,462
3/31/94 $11,106 $11,490
4/30/94 $11,130 $11,508
5/31/94 $11,161 $11,540
6/30/94 $11,191 $11,591
7/31/94 $11,219 $11,640
8/31/94 $11,255 $11,685
9/30/94 $11,290 $11,718
10/31/94 $11,334 $11,771
11/30/94 $11,378 $11,806
12/31/94 $11,419 $11,857
1/31/95 $11,511 $11,934
2/28/95 $11,592 $12,004
3/31/95 $11,648 $12,065
4/30/95 $11,705 $12,129
5/31/95 $11,789 $12,202
6/30/95 $11,848 $12,266
7/31/95 $11,900 $12,329
8/31/95 $11,954 $12,389
9/30/95 $12,001 $12,441
10/31/95 $12,063 $12,502
11/30/95 $12,120 $12,563
12/31/95 $12,196 $12,632
1/31/96 $12,263 $12,695
2/28/96 $12,283 $12,740
3/31/96 $12,315 $12,784
4/30/96 $12,361 $12,835
5/31/96 $12,410 $12,888
6/30/96 $12,456 $12,943
7/31/96 $12,509 $13,000
8/31/96 $12,555 $13,058
9/30/96 $12,611 $13,126
10/31/96 $12,666 $13,189
11/30/96 $12,718 $13,247
12/31/96 $12,768 $13,303
1/31/97 $12,820 $13,361
2/28/97 $12,861 $13,423
3/31/97 $12,900 $13,475
4/30/97 $12,958 $13,539
5/31/97 $13,027 $13,612
6/30/97 $13,080 $13,678
7/31/97 $13,139 $13,741
8/31/97 $13,186 $13,797
9/30/97 $13,251 $13,867
10/31/97 $13,304 $13,930
11/30/97 $13,350 $13,981
12/31/97 $13,406 $14,045
Performance/+/
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year 5.0%
Five Years 4.5
Life of Fund (2/4/91) 4.4
SEC Average Annual Total Returns
- --------------------------------------------------------------------------------
One Year 5.0%
Five Years 4.5
Life of Fund (2/4/91) 4.4
* Source: Towers Data Systems, Bethesda, MD. Investment operations commenced
2/4/91. Index information is available only at month-end; therefore, the
line comparison begins at the next month-end following the commencement of
the Fund's investment operations
The chart compares the Fund's total return with that of the Merrill Lynch
182-Day U.S. Treasury Bill Index, a widely recognized, unmanaged index of
U.S. Treasury bills. Returns are calculated by determining the percentage
change in net asset value with all distributions reinvested. The lines on
the chart represent the total returns of $10,000 hypothetical investments in
the Fund and the Merrill Lynch 182-Day U.S. Treasury Bill Index. The Index's
total return does not reflect any commissions or expenses that would have
been incurred if an investor individually purchased or sold the securities
represented in the Index. It is not possible to invest directly in an Index.
/+/ Returns are calculated by determining the percentage change in net asset
value with all distributions reinvested. SEC Returns are calculated at net
asset value - the Fund has no sales charge.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
3
<PAGE>
Eaton Vance Short-Term Treasury Fund as of December 31, 1997
PORTFOLIO OF INVESTMENTS
U.S. Treasury Obligation -- 83.7%
Principal
Amount
(000
Security omitted) Value
- --------------------------------------------------------------------------------
U.S. Treasury Bill, 0.00%, 4/2/98 $2,500 $2,467,100
- --------------------------------------------------------------------------------
Total U.S. Treasury Obligation
(identified cost $2,467,897) $2,467,100
- --------------------------------------------------------------------------------
Total Investments -- 83.7%
(identified cost $2,467,897) $2,467,100
- --------------------------------------------------------------------------------
Other Assets, Less Liabilities -- 16.3% $ 481,596
- --------------------------------------------------------------------------------
Net Assets -- 100% $2,948,696
- --------------------------------------------------------------------------------
See notes to financial statements
4
<PAGE>
Eaton Vance Short-Term Treasury Fund as of December 31, 1997
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
As of December 31, 1997
Assets
- --------------------------------------------------------------------------------
Investments, at value (Note 1A)
(identified cost, $2,467,897) $ 2,467,100
Cash 471,378
Receivable for Fund shares sold 50,011
Receivable from Investment Adviser 1,850
- --------------------------------------------------------------------------------
Total assets $ 2,990,339
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Distributions payable $ 100
Payable to affiliate for Trustees' fees (Note 4) 2,067
Accrued expenses 39,476
- --------------------------------------------------------------------------------
Total liabilities $ 41,643
- --------------------------------------------------------------------------------
Net Assets for 45,446 shares of beneficial interest
outstanding $ 2,948,696
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Paid-in capital $ 2,957,508
Accumulated distributions in excess of realized gain
(computed on the basis of identified cost) (8,015)
Net unrealized depreciation of investments (computed
on the basis of identified cost) (797)
- --------------------------------------------------------------------------------
Total $ 2,948,696
- --------------------------------------------------------------------------------
Net Asset Value, Offering Price and
Redemption Price Per Share
- --------------------------------------------------------------------------------
($2,948,696 / 45,446 shares of
beneficial interest outstanding) $ 64.88
- --------------------------------------------------------------------------------
Statement of Operations
For the Year Ended
December 31, 1997
Investment Income (Note 1B)
- --------------------------------------------------------------------------------
Interest income $ 11,525,267
- --------------------------------------------------------------------------------
Total investment income $ 11,525,267
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Investment adviser fee (Note 4) $ 780,465
Compensation of Trustees not members of the
Investment Adviser's organization (Note 4) 5,940
Distribution fees (Note 5) 546,833
Custodian fee 96,157
Printing and postage 9,778
Legal and accounting services 23,340
Registration fees 18,396
Transfer and dividend disbursing agent fees 11,043
Miscellaneous 10,423
- --------------------------------------------------------------------------------
Total expenses $ 1,502,375
- --------------------------------------------------------------------------------
Deduct --
Waiver of investment adviser fee (Note 4) $ 214,339
- --------------------------------------------------------------------------------
Total expense reductions $ 214,339
- --------------------------------------------------------------------------------
Net expenses $ 1,288,036
- --------------------------------------------------------------------------------
Net investment income $ 10,237,231
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- --------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 268,633
- --------------------------------------------------------------------------------
Net realized gain on investment transactions $ 268,633
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ (325)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation)
of investments $ (325)
- --------------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 268,308
- --------------------------------------------------------------------------------
Net increase in net assets from operations $ 10,505,539
- --------------------------------------------------------------------------------
See notes to financial statements
5
<PAGE>
Eaton Vance Short-Term Treasury Fund as of December 31, 1997
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Increase (Decrease) Year Ended Year Ended
in Net Assets December 31, 1997 December 31, 1996
- -------------------------------------------------------------------------------------
<S> <C> <C>
From operations --
Net investment income $ 10,237,231 $ 2,811,955
Net realized gain on investments 268,633 9,176
Net change in unrealized
appreciation (depreciation)
of investments (325) (11,605)
- -------------------------------------------------------------------------------------
Net increase in net assets
from operations $ 10,505,539 $ 2,809,526
- -------------------------------------------------------------------------------------
Distributions to shareholders (Note 1C) --
From net investment income $ (49,784) $ (42,027)
- -------------------------------------------------------------------------------------
Total distributions to shareholders $ (49,784) $ (42,027)
- -------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest (Note 2) --
Proceeds from sales of shares $ 718,832,115 $ 185,940,130
Net asset value of shares issued to
shareholders in payment of
distributions declared 35,074 27,313
Cost of shares redeemed (728,378,135) (188,646,216)
- -------------------------------------------------------------------------------------
Net decrease in net assets from Fund
share transactions $ (9,510,946) $ (2,678,773)
- -------------------------------------------------------------------------------------
Net increase in net assets $ 944,809 $ 88,726
- -------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------
At beginning of year $ 2,003,887 $ 1,915,161
- -------------------------------------------------------------------------------------
At end of year $ 2,948,696 $ 2,003,887
- -------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
6
<PAGE>
Eaton Vance Short-Term Treasury Fund as of December 31, 1997
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------------------
1997 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value -- Beginning of year $ 62.89 $61.43 $ 57.52 $55.58 $54.30
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 3.07 $ 2.88 $ 3.47 $ 1.80 $ 1.34
Net realized and unrealized gain (loss) on investments 0.08 -- 0.44 0.14 (0.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 3.15 $ 2.88 $ 3.91 $ 1.94 $ 1.28
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net investment income $ (1.16) $(1.42) $ -- $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.16) $(1.42) $ -- $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of year $ 64.88 $62.89 $ 61.43 $57.52 $55.58
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return/(1)/ 5.00% 4.69% 6.80% 3.49% 2.36%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000's omitted) $ 2,949 $2,004 $ 1,915 $1,175 $1,743
Ratio of net expenses to average daily net assets/(2)/ 0.60% 0.61% 0.62% 0.84% 0.60%
Ratio of net expenses to average net assets after
custodian fee reduction 0.60% 0.60% 0.60% -- --
Ratio of net investment income to average daily net assets 4.74% 4.65% 5.25% 2.97% 2.48%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ The operating expenses of the Fund may reflect a reduction of the Investment
Adviser fee and/or an allocation of expenses to the Investment Adviser. Had
such actions not been taken, the ratios and net investment income (loss) per
share would have been as follows:
<TABLE>
<S> <C> <C> <C> <C> <C>
Ratios (as a percentage of average daily net assets):
Expenses 0.70% 0.76% 0.89% 1.23% 0.70%
Expenses after custodian fee reduction 0.70% 0.75% 0.87% -- --
Net investment income 4.64% 4.50% 4.98% 2.58% 2.38%
Net investment income per share $ 3.00 $ 2.80 $ 3.29 $ 1.56 $ 1.28
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE: Certain of the per share amounts have been computed using the average
shares outstanding method.
/(1)/ Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the ex-dividend date. Total return is
not computed on an annualized basis.
/(2)/ The expense ratios for the year ended December 31, 1995 and thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Fund to increase its expense ratio by the
effect of any expense offset arrangements with its service providers. The
expense ratio for each of the years ended on or before December 31, 1994
have not been adjusted to reflect this change.
See notes to financial statements
7
<PAGE>
Eaton Vance Short-Term Treasury Fund as of December 31, 1997
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
----------------------------------------------------------------------------
Eaton Vance Short-Term Treasury Fund (the Fund) is a series of Eaton Vance
Mutual Funds Trust (the 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, as amended, as a diversified, open-end
management investment company. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of
its financial statements. The policies are in conformity with generally
accepted accounting principles.
A Investment Valuations -- Debt securities, including listed securities and
securities for which price quotations are available, will normally be valued
on the basis of market valuations furnished by a pricing service. Short-term
obligations and money market securities maturing in 60 days or less are
valued at amortized cost, which approximates value. Other assets are valued
at fair value using methods determined in good faith by the Trustees.
B Income -- Interest income is determined on the basis of interest accrued
and discount earned, adjusted for amortization of discount when required for
federal income tax purposes.
C Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies. The Fund
is not subject to Federal income or excise tax to the extent it distributes
to shareholders each year its taxable net income, including any net realized
gain on investments in accordance with the timing requirements imposed by
the Code. Generally, no provision for federal income or excise tax is
necessary. The Fund intends on its tax return to treat as a distribution of
net investment income and realized capital gains the portion of redemption
proceeds paid to redeeming shareholders that represents their share of the
Fund's undistributed income and gains. At fiscal year-end, the Fund utilizes
earnings and profits distributed to shareholders on redemptions of Fund
shares as part of the dividends paid deduction for income tax purposes. This
practice, which involves the use of equalization accounting, will have the
effect of reducing the amount of income and gains that the Fund is required
to distribute as a dividend to shareholders each year in order to relieve
the Fund of any liability for federal income and excise tax.
D Other -- Investment transactions are accounted for on the date the
investments are purchased or sold. Dividends to shareholders are recorded on
the ex-dividend date.
E Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Fund. Pursuant to the custodian agreement, IBT receives a
fee reduced by credits which are determined based on the average daily cash
balances the Fund maintains with IBT. All significant credit balances used
to reduce the Fund's custodian fees are reported as a reduction of expenses
in the Statement of Operations.
F 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 income and expense during the reporting period. Actual results could
differ from those estimates.
2 Shares of Beneficial Interest
----------------------------------------------------------------------------
The Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
Year Ended December 31,
----------------------------------
1997 1996
----------------------------------------------------------------------------
Sales 11,131,083 2,983,499
Issued to shareholders
electing to receive
payments of distributions
in Fund shares 541 434
Redemptions (11,118,039) (2,983,250)
----------------------------------------------------------------------------
Net increase 13,585 683
----------------------------------------------------------------------------
8
<PAGE>
Eaton Vance Short-Term Treasury Fund as of December 31, 1997
NOTES TO FINANCIAL STATEMENTS CONT'D
3 Purchases and Sales of Investments
------------------------------------------------------------------------------
Purchases and sales (including maturities) of U.S. Government Securities,
aggregated $2,019,986,782 and $2,031,643,561, respectively.
4 Investment Adviser Fee and Other Transaction with Affiliates
------------------------------------------------------------------------------
The investment adviser fee is earned by Eaton Vance Management (EVM) as
compensation for management and investment advisory services rendered to the
Fund. The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sales of
securities). For the year ended December 31, 1997, the fee was equivalent to
0.36% of the Fund's average net assets and amounted to $780,465. To enhance
the net income of the Fund, EVM made a reduction of its fee in the amount of
$214,339. Except as to Trustees of the Fund who are not members of EVM's
organization, officers and Trustees receive remuneration for their services to
the Fund out of such investment adviser fee. Certain of the officers and
Trustees of the Fund are officers and directors/trustees of the above
organizations. Trustees of the Fund that are not affiliated with the
Investment Adviser may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred Compensation
Plan. For the year ended December 31, 1997, no significant amounts have been
deferred.
5 Distribution Plan
------------------------------------------------------------------------------
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Plan provides that the Fund will
pay the Principal Underwriter, Eaton Vance Distributors, Inc. (EVD), a
subsidiary of EVM, a quarterly distribution fee equal to 0.25% on an annual
basis of the Fund's average daily net assets. EVD may pay up to the entire
amount of the distribution fee to Authorized Firms for providing services to
shareholders. The Plan is designed to compensate EVD and the Authorized Firms
through which the Fund's shares are distributed. For the year ended December
31, 1997 the Fund paid $546,833 in distribution fees to EVD, and EVD in turn
paid a substantial portion of this amount to Authorized Firms.
6 Line of Credit
------------------------------------------------------------------------------
The Fund participates with other portfolios and funds managed by EVM and
affiliates in a committed $100 million unsecured line of credit agreement with
a group of banks. Borrowings will be made by the portfolio or fund 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
borrowing at an amount above the Eurodollar rate or federal funds rate. In
addition, a fee computed at an annual rate of 0.10% on the daily unused
portion of the facility is allocated among the participating portfolios and
funds at the end of each quarter. The Fund did not have any significant
borrowings or allocated fees during the year.
7 Federal Income Tax Basis of Investments
------------------------------------------------------------------------------
The cost and unrealized appreciation/depreciation in value of the investments
owned at December 31, 1997, as computed on a federal income tax basis, are as
follows:
Aggregate cost $2,480,657
--------------------------------------------------------------------------
Gross unrealized appreciation $ --
Gross unrealized depreciation 13,557
--------------------------------------------------------------------------
Net unrealized depreciation $ 13,557
--------------------------------------------------------------------------
9
<PAGE>
Eaton Vance Short-Term Treasury Fund as of December 31, 1997
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders
of Eaton Vance Short-Term Treasury Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Eaton
Vance Short-Term Treasury Fund (one of
the series of Eaton Vance Mutual Funds Trust), including the portfolio of
investments, as of December 31, 1997, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1997 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Eaton
Vance Short-Term Treasury Fund (one of the series of Eaton Vance Mutual Funds
Trust) as of December 31, 1997, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the
period then ended, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 6, 1998
10
<PAGE>
Eaton Vance Short-Term Treasury Fund as of December 31, 1997
INVESTMENT MANAGEMENT
Eaton Vance Short-Term Treasury Fund
<TABLE>
<CAPTION>
Officers Trustees
<S> <C>
M. Dozier Gardner Donald R. Dwight
President and Trustee President, Dwight Partners, Inc.
James B. Hawkes Samuel L. Hayes, III
Vice President and Trustee Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate School of
Business Administration
Michael B. Terry
Vice President and Norton H. Reamer
Portfolio Manager President and Director, United Asset
Management Corporation
William H. Ahern, Jr.
Vice President John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Thomas J. Fetter
Vice President Jack L. Treynor
Investment Adviser and Consultant
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
</TABLE>
11
<PAGE>
Investment Advisor
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
200 Clarendon Street, 16th Floor
Boston, MA 02116
Transfer Agent
First Data Investor Services Group
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
Independent Auditors
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
Eaton Vance Short-Term Treasury Fund
24 Federal Street
Boston, MA 02110
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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.
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T-TYSR-2/98
