<PAGE>
[LOGO OF EATON VANCE Investing
APPEARS HERE]
for the
21st [PHOTO OF THE AMERICAN FLAG APPEARS HERE]
Century (R)
Semiannual Report June 30, 1998
EATON VANCE
COMBINED
[PHOTO OF THE MONEY
STATUE OF LIBERTY
APPEARS HERE] MARKET FUNDS Cash Management Fund
REPORT
Liquid Assets Fund
[PHOTO OF COLUMN APPEARS HERE]
Money Market Fund
<PAGE>
Eaton Vance Money Market Funds as of June 30, 1998
INVESTMENT UPDATE
[PHOTO OF M. DOZIER GARDNER, PRESIDENT APPEARS HERE]
Investment Environment
- --------------------------------------------------------------------------------
The Economy
. In the first half of 1998, the U.S. economy continued to benefit
from a confluence of favorable trends, including robust growth,
historically low unemployment, and tame inflation.
. Gross Domestic Product (GDP), the primary measure of economic growth,
increased by a stronger-than-expected 5.4% in the first quarter, before
moderating to a 1.4% pase in the second quarter. Meanwhile, the
unemployment rate declined from 4.7% in December, 1997, to 4.5% in June,
1998. On the inflation front, the Consumer Price Index (CPI) rose only 1.6%
in the 12 months ended June, 1998.
. Investors continue to evaluate the potential effect of the Asian economic
crisis on the U.S. economy. Thus far in 1998, the effects of the crisis -
which include a reduction in U.S. exports of manufactured goods and lower
prices for Asian imports - have contributed to a lower inflation rate and
expectations of continued low inflation. Not surprisingly, interest rates
moved lower. The yield on the 30-year Treasury bond declined from 5.92% at
December 31, 1997, to 5.63% at June 30, 1998.
The Market
. Short-term interest rates - which have the strongest influence on this
Portfolio's investments - drifted lower during the six-month period due to
Federal Reserve inactivity and a mild inflation outlook. Commercial paper
rates (60-day maturity), in which this Portfolio is primarily invested,
averaged 5.49% during the period, trading in a narrow range between 5.58%
and 5.42%, as shown in the chart to the right.
. The outlook for short-term interest rates will depend on the actions of the
Federal Reserve. The Fed continues to monitor closely economic activity,
casting an especially keen eye on the employment cost index. In recent
testimony, Fed Chairman Alan Greenspan suggested that the Fed Funds rate -
the key short-term interest rate barometer - is likely to remain fairly
stable over the near-term due to the dampening effect of the Asian crisis
on the U.S. economy.
The Portfolio
- --------------------------------------------------------------------------------
About The Portfolio
. The Portfolio continues to invest only in securities of the highest
quality. Each of its commercial paper holdings has been given the top
credit rating by at least two nationally recognized statistical rating
organizations.
. On average, approximately 80% of the assets of the Portfolio is invested in
high-quality commercial paper, a commonly used liquid investment for money
market funds.
. The Portfolio also invests in U.S. Government agency securities, which are
not rated officially but are considered to be of high quality.*
. The Portfolio's average maturity typically ranges between 30 and 40 days.
60 Day Commercial Paper Rates In 1998
[LINE GRAPH APPEARS HERE]
1/2/98 5.58
5.55
5.52
5.5
5.49
5.46
5.42
5.44
5.44
5.44
5.44
5.45
5.45
5.44
5.44
5.45
5.45
5.46
5.47
5.47
2/2/98 5.47
5.46
5.47
5.47
5.46
5.46
5.47
5.47
5.46
5.46
5.46
5.46
5.46
5.46
5.47
5.46
5.49
5.49
5.51
3/2/98 5.51
5.51
5.51
5.51
5.51
5.51
5.51
5.51
5.51
5.51
5.51
5.51
5.5
5.5
5.5
5.5
5.51
5.51
5.51
5.51
5.51
5.52
4/1/98 5.51
5.51
5.5
5.48
5.48
5.49
5.49
5.5
5.49
5.49
5.49
5.49
5.49
5.5
5.5
5.5
5.51
5.51
5.52
5.52
5/1/98 5.51
5.51
5.51
5.5
5.5
5.48
5.49
5.5
5.5
5.5
5.51
5.52
5.5
5.51
5.52
5.51
5.51
5.51
5.51
5.51
6/1/98 5.51
5.51
5.51
5.51
5.51
5.51
5.51
5.5
5.5
5.5
5.52
5.52
5.53
5.53
5.53
5.53
5.53
5.52
5.54
5.55
5.54
6/30/98 5.54
- --------------------------------------------------------------------------------
* An investment in one of 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.
- --------------------------------------------------------------------------------
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 Money Market Funds as of June 30, 1998
FINANCIAL STATEMENTS (Unaudited)
Statements of Assets and Liabilities
As of June 30, 1998
<TABLE>
<CAPTION>
Cash Liquid Money
Management Fund Assets Fund Market Fund
- ----------------------------------------------------------------------------------------------------------
Assets
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment in Cash Management Portfolio, at value $100,333,784 $10,434,578 $29,188,565
Receivable for Fund shares sold 1,301,422 -- 266,477
Receivable from the Administrator -- -- 5,882
Deferred organization expenses -- -- 12,184
- ----------------------------------------------------------------------------------------------------------
Total assets $101,635,206 $10,434,578 $29,473,108
- ----------------------------------------------------------------------------------------------------------
Liabilities
- ----------------------------------------------------------------------------------------------------------
Dividends payable $ 196,472 $ 18,529 $ 42,744
Payable for Fund shares redeemed 1,353,987 239,877 19,725
Payable to affiliate for Trustees' fees -- 47 40
Other accrued expenses 46,428 22,358 17,099
- ----------------------------------------------------------------------------------------------------------
Total liabilities $ 1,596,887 $ 280,811 $ 79,608
- ----------------------------------------------------------------------------------------------------------
Net Assets (represented by paid-in-capital) $100,038,319 $10,153,767 $29,393,500
- ----------------------------------------------------------------------------------------------------------
Shares of Beneficial Interest Outstanding
- ----------------------------------------------------------------------------------------------------------
100,038,319 10,153,767 29,393,500
- ----------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share
- ----------------------------------------------------------------------------------------------------------
(Net assets / shares of beneficial interest outstanding) $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
3
<PAGE>
Eaton Vance Money Market Funds as of June 30, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Operations
For the Six Months Ended June 30, 1998
<TABLE>
<CAPTION>
Cash Liquid Money
Management Fund Assets Fund Market Fund
- ---------------------------------------------------------------------------------------------------------------
Investment Income
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Interest allocated from Portfolio $2,467,101 $323,073 $591,379
Expenses allocated from Portfolio (269,694) (35,381) (64,637)
- ---------------------------------------------------------------------------------------------------------------
Net investment income from Portfolio $2,197,407 $287,692 $526,742
- ---------------------------------------------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 1,026 $ 90 $ 82
Distribution and service fees -- 13,295 87,124
Transfer and dividend disbursing agent fees 52,520 6,876 10,542
Custodian fee 44,735 1,922 1,789
Registration fees 18,042 11,613 21,198
Printing and postage 9,081 3,871 5,032
Legal and accounting services 7,597 7,372 6,473
Amortization of organization expenses -- -- 3,451
Miscellaneous 4,562 2,866 5,248
- ---------------------------------------------------------------------------------------------------------------
Total expenses $ 137,563 $ 47,905 $140,939
- ---------------------------------------------------------------------------------------------------------------
Deduct --
Preliminary allocation of expenses to the Administrator $ -- $ -- $ 5,882
- ---------------------------------------------------------------------------------------------------------------
Total expense reductions $ -- $ -- $ 5,882
- ---------------------------------------------------------------------------------------------------------------
Net expenses $ 137,563 $ 47,905 $135,057
- ---------------------------------------------------------------------------------------------------------------
Net investment income $2,059,844 $239,787 $391,685
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
4
<PAGE>
Eaton Vance Money Market Funds as of June 30, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Changes in Net Assets
For the Six Months Ended June 30, 1998
<TABLE>
<CAPTION>
Cash Liquid Money
Increase (Decrease) in Net Assets Management Fund AssetsFund Market Fund
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
From operations --
Net investment income $ 2,059,844 $ 239,787 $ 391,685
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net Investment income $ (2,059,844) $ (239,787) $ (391,685)
- ---------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares $ 245,405,235 $ 54,930 $ 44,970,435
Net asset value of shares issued to shareholders
in payment of distributions declared 1,135,100 123,387 260,289
Cost of shares redeemed (293,245,260) (3,025,277) (39,645,926)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions $ (46,704,925) $ (2,846,960) $ 5,584,798
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (46,704,925) $ (2,846,960) $ 5,584,798
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
At beginning of period $ 146,743,244 $ 13,000,727 $ 23,808,702
- ---------------------------------------------------------------------------------------------------------------------------
At end of period $ 100,038,319 $ 10,153,767 $ 29,393,500
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
5
<PAGE>
Eaton Vance Money Market Funds as of June 30, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
For the Year Ended December 31, 1997
<TABLE>
<CAPTION>
Cash Liquid Money
Increase (Decrease) in Net Assets Management Fund Assets Fund Market Fund
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
From operations --
Net investment income $ 4,817,207 $ 679,542 $ 1,065,668
- ------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net Investment income $ (4,817,207) $ (679,542) $ (1,065,668)
- ------------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares $ 553,471,378 $ 138,284 $ 224,831,973
Net asset value of shares issued to shareholders in payment of 2,926,310 394,175 646,729
distributions declared
Cost of shares redeemed (561,345,354) (7,442,068) (232,920,194)
- ------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from Fund share transactions $ (4,947,666) $ (6,909,609) $ (7,441,492)
- ------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (4,947,666) $ (6,909,609) $ (7,441,492)
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 151,690,910 $ 19,910,336 $ 31,250,194
- ------------------------------------------------------------------------------------------------------------------------------
At end of year $ 146,743,244 $ 13,000,727 $ 23,808,702
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
6
<PAGE>
Eaton Vance Money Market Funds as of June 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Cash Management Fund
---------------------------------------------------------------------------------
Six Months Ended Year Ended December 31,
June 30, 1998 -----------------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------------------------
<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 $ 0.0232 $ 0.0478 $ 0.0470 $ 0.0522 $ 0.0345 $ 0.0251
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.0232) $ (0.0478) $ (0.0470) $(0.0522) $(0.0345) $ (0.0251)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return /(1)/ 2.35% 4.89% 4.82% 5.35% 3.49% 2.54%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $ 100,038 $ 146,743 $ 151,691 $155,251 $111,622 $ 112,200
Ratios (As a percentage of average daily net
assets): 0.93%+ 0.78% 0.74% 0.74% 0.84% 0.67%
Expenses /(2)/
Net investment income 4.71%+ 4.79% 4.70% 5.22% 3.40% 2.51%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
/(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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(2)/ Includes the Fund's share of the Portfolio's allocated expenses for the
period while the Fund was investing directly in the Portfolio.
See notes to financial statements
7
<PAGE>
Eaton Vance Money Market Funds as of June 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Liquid Assets Fund
---------------------------------------------------------------------------------------
Year Ended
Six Months Ended Year Ended December 31, March 31,
June 30, 1998 ---------------------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993* 1993++
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value -- Beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.0207 $ 0.0420 $ 0.0432 $ 0.0505 $ 0.0328 $ 0.0113 $ 0.0217
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.0207) $(0.0420) $(0.0432) $(0.0505) $(0.0328) $(0.0113) $(0.0217)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return/(1)/ 1.91% 4.29% 4.41% 5.16% 3.29% 1.14% 2.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $ 10,154 $ 13,001 $ 19,910 $ 34,026 $118,599 $ 10,566 $ 18,553
Ratios (As a percentage of average daily net
assets): 1.45%+ 1.35% 1.13% 0.91% 0.94% 1.49%+ 0.92%
Net expenses/(2)/
Net investment income 4.18%+ 4.21% 4.31% 5.11% 3.55% 1.66%+ 2.33%
- ------------------------------------------------------------------------------------------------------------------------------------
+ For the periods presented below, the operating expenses of the Fund reflect an allocation of expenses to the Administrator. Had
such action not been taken, the ratios and net investment income per share would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses/(2)/ 1.80%+ 1.42%
Net investment income 1.35%+ 1.85%
Net investment income per share $ 0.0092 $ 0.0171
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
++ Audited by the Fund's previous auditors.
* For the nine months ended December 31, 1993. The Liquid Assets Fund
changed its fiscal year end from March 31 to December 31, effective
December 31, 1993.
/(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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(2)/ Includes the Fund's share of the Portfolio's allocated expenses for the
period while the Fund was investing directly in the Portfolio.
See notes to financial statements
8
<PAGE>
Eaton Vance Money Market Funds as of June 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Money Market Fund
----------------------------------------------------------------------
Six Months Ended Year Ended December 31,
June 30,1998 ---------------------------------------------------
(Unaudited) 1997 1996 1995*
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------------------------
Income from operations
- ----------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.0184 $ 0.0381 $ 0.0370 $ 0.0312
- ----------------------------------------------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------------------------------------------
From net investment income $(0.0184) $(0.0381) $(0.0370) $(0.0312)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------------------------
Total Return/(1)/ 1.69% 3.88% 3.77% 3.17%
- ----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $ 29,394 $ 23,809 $ 31,250 $ 12,951
Ratios (As a percentage of average daily net
assets): 1.90%+ 1.73% 1.73% 1.68%+
Net expenses/(2)/
Net investment income 3.72%+ 3.83% 3.70% 4.19%+
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
+ The operating expenses of the Fund may reflect an allocation of expenses to
the Administrator. Had such action not been taken, the ratios and net
investment income per share would have been as follows:
<TABLE>
<S> <C> <C> <C> <C>
Ratios (As a percentage of average daily net
assets): 1.96%+ 1.82% 1.76% 1.85%+
Expenses/(2)/
Net investment income 3.68%+ 3.74% 3.66% 4.03%+
Net investment income per share $ 0.0182 $ 0.0372 $ 0.0367 $ 0.0300
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the period from the start of business, April 5, 1995, to December 31,
1995.
/(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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(2)/ Includes the Fund's share of the Portfolio's allocated expenses.
See notes to financial statements
9
<PAGE>
Eaton Vance Money Market Funds as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (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 as amended (1940 Act), as an open-end management
investment company. The Trust presently consists of fifteen Series, 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 1940 Act, as diversified, open-end management investment
companies seeking high income consistent with the preservation of capital and
maintenance of liquidity.
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 reflects the Fund's proportionate interest in the net assets of the
Portfolio (71.7% for Cash Management Fund, 7.5% for Liquid Assets Fund and
20.8% for Money Market Fund at June 30, 1998). 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 each
of 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 Valuation -- Valuation of securities by the Portfolio is
discussed in Note 1A of the Portfolio's Notes to Financial Statements which
are included elsewhere in this report.
B Income -- The Funds' net investment income consists of each Fund's pro rata
share of the net investment income of the Portfolio, less all actual and
accrued expenses of each Fund determined in accordance with generally accepted
accounting principles. Prior to Cash Management Fund's and Liquid Asset Fund's
investment in the Portfolio, these Funds held their investments directly. For
investments held directly, interest income is determined on the basis of
interest accrued, adjusted for amortization of premium or discount when
required for federal income tax purposes.
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, 1997, Liquid Assets Fund, for
federal income tax purposes, had a capital loss carryover of $6,926, 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 the distributions to shareholders which would
otherwise be necessary to relieve the Fund of any liability for federal income
or excise tax. Such capital loss carryover will expire on December 31, 2001.
D Deferred Organization Expenses -- Costs incurred by the Money Market Fund in
connection with its 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 income 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, 1998 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 Distributions to Shareholders
------------------------------------------------------------------------------
The net investment 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. Distributions are paid monthly.
Distributions are paid in the form of additional shares or, at the election of
the shareholder, in cash.
10
<PAGE>
Eaton Vance Money Market Funds as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
The Funds distinguish between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a return of capital. Differences in the recognition or
classification of income between the financial statements and tax earnings and
profits which result in temporary over distributions for financial statement
purposes are classified as distributions in excess of net investment income or
accumulated net realized gains. Permanent differences between book and tax
accounting relating to distributions are reclassified to paid-in capital.
3 Shares of Beneficial Interest
------------------------------------------------------------------------------
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest, with no par
value. Transactions in Fund shares were as follows:
Cash Management Fund
------------------------------------------
Six Months Ended
June 30, 1998 Year Ended
(Unaudited) December 31, 1997
- --------------------------------------------------------------------------------
Sales 245,405,235 553,471,378
Issued to shareholders electing
to receive payments of
distributions in Fund shares 1,135,100 2,926,310
Redemptions (293,245,260) (561,345,354)
- --------------------------------------------------------------------------------
Net decrease (46,704,925) (4,947,666)
- --------------------------------------------------------------------------------
Liquid Assets Fund
------------------------------------------
Six Months Ended
June 30, 1998 Year Ended
(Unaudited) December 31, 1997
- --------------------------------------------------------------------------------
Sales 54,930 138,284
Issued to shareholders electing
to receive payments of
distributions in Fund shares 123,387 394,175
Redemptions (3,025,277) (7,442,068)
- --------------------------------------------------------------------------------
Net decrease (2,846,960) (6,909,609)
- --------------------------------------------------------------------------------
Money Market Fund
------------------------------------------
Six Months Ended
June 30, 1998 Year Ended
(Unaudited) December 31, 1997
- --------------------------------------------------------------------------------
Sales 44,970,435 224,831,973
Issued to shareholders electing
to receive payments of
distributions in Fund shares 260,289 646,729
Redemptions (39,645,926) (232,920,194)
- --------------------------------------------------------------------------------
Net increase (decrease) 5,584,798 (7,441,492)
- --------------------------------------------------------------------------------
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 six months ended June 30, 1998, $5,882 of expenses related to the
operation of the Fund were allocated to EVM on a preliminary basis. Except as
to Trustees of the Funds and the Portfolio 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.
5 Distribution Plan
------------------------------------------------------------------------------
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 1940 Act. The Plan for Money Market Fund requires the Fund to pay
the Principal Underwriter, Eaton Vance Distributors, Inc. (EVD), amounts equal
to 0.75% of the Fund's average 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.
11
<PAGE>
Eaton Vance Money Market Funds as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
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 share 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 six months ended June 30, 1998, Money Market Fund paid $78,720 to
EVD, representing 0.75% (annualized) of the Fund's average daily net assets.
At June 30, 1998, the amount of Uncovered Distribution Charges of EVD
calculated under the Plan for Money Market Fund and Liquid Assets Fund were
approximately $4,276,000 and $2,269,000, respectively.
In addition, the Plan authorized 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 had 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 six months ended June 30, 1998, Money Market Fund and Liquid
Assets Fund paid service fees to EVD and Authorized Firms in the amount of
$8,404 and $13,295 respectively. Service fee payments are made for personal
services and/or maintenance of shareholder accounts. Service fees paid to EVD
and Authorized Firms were separate and distinct from the sales commissions and
distribution fees payable by the 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 Charge
------------------------------------------------------------------------------
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 gains distributions.
The CDSC is imposed at rates that begin at 5% in the case of redemptions in
the first and second year after purchase, 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 the Funds' Distribution Plans. CDSC charges received when no Uncovered
Distribution Charges exist will be credited to the respective Funds. EVD
received approximately $113,000 and $18,000 of CDSC paid by shareholders for
the six months ended June 30, 1998 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 six
months ended June 30, 1998 were as follows:
Cash Management Fund
------------------------------------------------------------------------------
Increases $245,316,036
Decreases 294,008,834
Liquid Assets Fund
------------------------------------------------------------------------------
Increases $ 71,671
Decreases 3,073,175
Money Market Fund
------------------------------------------------------------------------------
Increases $ 44,856,868
Decreases 39,957,683
12
<PAGE>
Cash Management Portfolio as of June 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Commercial Paper -- 78.4%
Ratings
(Unaudited)
- ----------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Agricultural Services -- 1.1%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 1,500 Cargill, Inc., 5.49%,
7/29/98 $ 1,493,595
- --------------------------------------------------------------------------------
$ 1,493,595
- --------------------------------------------------------------------------------
Automotive -- 1.8%
- --------------------------------------------------------------------------------
P-1 A-1 $ 1,000 Ford Motor Credit Co.,
5.52%, 7/8/98 $ 998,927
- --------------------------------------------------------------------------------
P-1 A-1 1,500 General Motor Acceptance
Corp., 5.55%, 7/27/98 1,493,988
- --------------------------------------------------------------------------------
$ 2,492,915
- --------------------------------------------------------------------------------
Banking and Finance -- 23.5%
- --------------------------------------------------------------------------------
P-1 A-1 $ 3,000 American Express Credit
Corp., 5.52%, 7/29/98 $ 2,987,120
P-1 A-1+ 3,300 Asset Securitization
Coop. Corp., 5.53%,
7/7/98/(1)/ 3,296,959
P-1 A-1+ 2,000 Associates Corp. of No.
America, 5.48%, 9/4/98 1,980,211
P-1 A-1+ 2,000 Associates Corp. of No.
America, 5.52%, 9/23/98 1,974,240
P-1 A-1+ 2,000 CIESCO, 5.48%, 7/22/98/(1)/ 1,993,606
P-1 A-1+ 1,500 CIESCO, 5.50%, 8/19/98/(1)/ 1,488,771
P-1 A-1 1,705 CIT Group Holdings, Inc.,
5.51%, 7/20/98 1,700,042
P-1 A-1+ 2,500 Corporate Asset Funding
Co., 5.51%, 7/21/98/(1)/ 2,492,347
P-1 A-1+ 2,000 Corporate Receivables
Corp., 5.51%, 8/12/98 1,987,143
P-1 A-1+ 2,500 CXC, Inc., 5.53%,
7/28/98/(1)/ 2,489,631
P-1 A-1+ 1,240 Delaware Funding Corp.,
5.52%, 8/19/98/(1)/ 1,230,683
P-1 A-1+ 1,138 Delaware Funding Corp.,
5.54%, 7/22/98/(1)/ 1,134,323
P-1 A-1+ 2,700 John Hancock Capital
Corp., 5.50%, 7/6/98/(1)/ 2,697,938
P-1 A-1+ 1,000 Mid-States Corp. Federal
Credit Union, 5.62%,
7/24/98 996,409
P-1 A-1+ 1,500 Mid-States Corp. Federal
Credit Union, 5.62%,
7/16/98 1,496,488
P-1 A-1+ 3,000 Norwest Financial, Inc.,
5.47%, 8/14/98 2,979,943
- --------------------------------------------------------------------------------
$ 32,925,854
- --------------------------------------------------------------------------------
Business Products and Services -- 1.4%
P-1 A-1+ $ 1,990 Pitney Bowes Credit Corp.,
6.05%, 7/1/98 $ 1,990,000
- --------------------------------------------------------------------------------
$ 1,990,000
- --------------------------------------------------------------------------------
Chemicals -- 1.8%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 2,500 E.I. Dupont de Nemours &
Co., 5.50%, 7/30/98/(1)/ $ 2,488,923
- --------------------------------------------------------------------------------
$ 2,488,923
- --------------------------------------------------------------------------------
Electric Utilities -- 4.2%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 1,770 National Rural Utilities
Coop. Finance Corp,
5.50%, 8/13/98 $ 1,758,372
P-1 A-1+ 295 National Rural Utilities
Coop. Finance Corp.,
5.49%, 7/24/98 293,965
P-1 A-1 1,400 Potomac Electric Power
Co., 5.60%, 7/27/98 1,394,338
P-1 A-1+ 2,500 Teco Finance, Inc.,
5.50%, 8/7/98/(1)/ 2,485,868
- --------------------------------------------------------------------------------
$ 5,932,543
- --------------------------------------------------------------------------------
Electrical and Electronic Equipment -- 5.7%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 2,000 General Electric Capital
Corp., 5.50%, 8/28/98 $ 1,982,278
P-1 A-1+ 1,500 General Electric Capital
Corp., 5.50%, 8/3/98 1,492,438
P-1 A-1+ 1,500 General Electric Capital
Corp., 5.51%, 7/30/98 1,493,342
P-1 A-1+ 3,000 Motorola Credit Corp.,
5.49%, 7/14/98 2,994,053
- --------------------------------------------------------------------------------
$ 7,962,111
- --------------------------------------------------------------------------------
Food and Beverages -- 7.6%
- --------------------------------------------------------------------------------
P-1 A-1 $ 1,300 Anheuser Busch Co., Inc.,
5.50%, 7/8/98 $ 1,298,610
P-1 A-1+ 3,500 Coca-Cola Co., 5.49%,
7/24/98 3,487,724
P-1 A-1 1,310 Heinz (H.J.) Co.,
5.50%, 7/23/98 1,305,597
P-1 A-1+ 1,500 Kellogg Co., 5.54%, 8/6/98 1,491,690
P-1 A-1+ 3,000 Nestle Capital Corp.,
5.46%, 7/13/98 2,994,540
- --------------------------------------------------------------------------------
$ 10,578,161
- --------------------------------------------------------------------------------
See notes to financial statements
13
<PAGE>
Cash Management Portfolio as of June 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings
(Unaudited)
- ----------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Gas Utilities -- 0.5%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 720 Consolidated Natural Gas,
5.50%, 7/7/98 $ 719,340
- --------------------------------------------------------------------------------
$ 719,340
- --------------------------------------------------------------------------------
Household Products -- 4.3%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 1,995 Procter and Gamble Co.,
5.47%, 9/14/98 $ 1,972,265
P-1 A-1+ 3,000 Unilever Capital Corp.,
5.48%, 7/17/98/(1)/ 2,992,693
P-1 A-1+ 1,000 Unilever Capital Corp.,
5.50%, 7/21/98/(1)/ 996,945
- --------------------------------------------------------------------------------
$ 5,961,903
- --------------------------------------------------------------------------------
Insurance -- 8.6%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 3,000 AI Credit Corp., 5.45%,
7/17/98 $ 2,992,734
P-1 A-1+ 997 AIG Funding, Inc.,
6.10%, 7/1/98 997,000
P-1 A-1+ 2,000 American General Corp.,
5.50%, 7/6/98 1,998,473
P-1 A-1+ 1,900 MetLife Funding, Inc.,
5.52%, 7/23/98 1,893,591
P-1 A-1 1,000 Prudential Funding Corp.,
5.53%, 7/6/98 999,232
P-1 A-1+ 2,800 USAA Capital Corp.,
5.45%, 7/9/98 2,796,609
P-1 A-1+ 395 USAA Capital Corp.,
5.48%, 7/24/98 393,617
- --------------------------------------------------------------------------------
$ 12,071,256
- --------------------------------------------------------------------------------
Leasing -- 0.9%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 1,340 Greenwich Asset Fund,
Inc., 5.52%, 7/13/98/(1)/ $ 1,337,534
- --------------------------------------------------------------------------------
$ 1,337,534
- --------------------------------------------------------------------------------
Oil -- 5.7%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 2,000 Chevron USA, Inc.,
5.49%, 8/21/98 $ 1,984,445
P-1 A-1+ 3,000 Chevron USA, Inc.,
5.50%, 7/15/98 2,993,583
P-1 A-1+ 1,000 Cortez Capital Corp.,
5.54%, 7/30/98/(1)/ 995,537
P-1 A-1+ 2,000 Exxon Imperial U.S., Inc.,
5.47%, 7/10/98/(1)/ 1,997,265
- --------------------------------------------------------------------------------
$ 7,970,830
- --------------------------------------------------------------------------------
Pharmaceutical -- 6.6%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 2,000 Novartis Finance Corp.,
5.52%, 8/10/98/(1)/ $ 1,987,733
P-1 A-1+ 2,300 Novartis Finance Corp.,
5.52%, 8/18/98/(1)/ 2,283,072
P-1 A-1+ 4,000 Schering Corp., 5.60%,
7/13/98 3,992,533
P-1 A-1+ 1,000 Smithkline Beecham Corp.,
5.51%, 8/18/98 992,653
- --------------------------------------------------------------------------------
$ 9,255,991
- --------------------------------------------------------------------------------
Retail -- 1.0%
- --------------------------------------------------------------------------------
P-1 A-1 $ 1,400 JC Penney Funding Corp.,
5.53%, 7/20/98/(1)/ $ 1,395,914
- --------------------------------------------------------------------------------
$ 1,395,914
- --------------------------------------------------------------------------------
Telecommunications -- 3.7%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 1,500 Ameritech Corp.,
5.50%, 8/5/98/(1)/ $ 1,491,979
P-1 A-1+ 1,200 Bellsouth
Telecommunications, Inc.,
5.49%, 9/10/98 1,187,007
P-1 A-1+ 2,500 SBC Communications, Inc.,
5.49%, 8/26/98/(1)/ 2,478,650
- --------------------------------------------------------------------------------
$ 5,157,636
- --------------------------------------------------------------------------------
Total Commercial Paper, at value
(identified cost $109,734,506) $109,734,506
- --------------------------------------------------------------------------------
See notes to financial statements
14
<PAGE>
Cash Management Portfolio as of June 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
U.S. Government Obligations -- 21.6%%
Principal
Amount
(000's
omitted) Security Value
- --------------------------------------------------------------------------------
$ 2,475 FHLMC Discount Notes,
5.40%, 7/16/98 $ 2,469,431
20,000 FNMA Discount Notes,
5.463%, 8/13/98 19,869,495
8,000 FNMA Discount Notes,
5.43%, 9/24/98 7,897,433
- --------------------------------------------------------------------------------
Total U.S. Government Obligations, at value
(identified cost $30,236,359) $ 30,236,359
- --------------------------------------------------------------------------------
Total Investments -- 100.0%
(identified cost $139,970,865) $139,970,865
- --------------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.0% $ (13,938)
- --------------------------------------------------------------------------------
Net Assets -- 100% $139,956,927
- --------------------------------------------------------------------------------
FHLMC-Federal Home Mortgage Corporation (Freddie Mac)
FNMA-Federal National Mortgage Association (Fannie Mae)
/(1)/ A security which has been issued under section 4(2) of the Securities Act
of 1933 and is generally regarded as restricted and illiquid. This
security may be resold in transactions exempt from registration or to the
public if the security is registered. All such securities held have been
deemed by the Portfolio's Trustees to be liquid and were purchased with
the expectation that resale would not be necessary. At June 30, 1998, the
value of these securities amounted to $39,756,371 or 28.4% of the
Portfolio's net assets.
See notes to financial statements
15
<PAGE>
Cash Management Portfolio as of June 30, 1998
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
As of June 30, 1998
Assets
- ---------------------------------------------------------------------------
Investments, at value $139,970,865
Cash 613
Deferred organization expenses 2,282
- ---------------------------------------------------------------------------
Total assets $139,973,760
- ---------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------
Payable to affiliate for Trustees' fees $ 1,133
Other accrued expenses 15,700
- ---------------------------------------------------------------------------
Total liabilities $ 16,833
- ---------------------------------------------------------------------------
Net Assets (representing paid-in-capital) $139,956,927
- ---------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------
Net proceeds from capital contributions and
withdrawals $139,956,927
- ---------------------------------------------------------------------------
Total $139,956,927
- ---------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended
June 30, 1998
Investment Income
- ---------------------------------------------------------------------------
Interest $ 3,381,553
- ---------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------
Investment adviser fee $ 304,298
Trustees fees and expenses 3,125
Custodian fee 36,987
Legal and accounting services 14,516
Amortization of organization expenses 1,352
Miscellaneous 9,434
- ---------------------------------------------------------------------------
Total expenses $ 369,712
- ---------------------------------------------------------------------------
Net investment income $ 3,011,841
- ---------------------------------------------------------------------------
See notes to financial statements
16
<PAGE>
Cash Management Portfolio as of June 30, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
Six Months Ended
Increase (Decrease) June 30, 1998 Year Ended
in Net Assets (Unaudited) December 31, 1997
- -------------------------------------------------------------------------------
From operations --
Net investment income $ 3,011,841 $ 7,185,996
- -------------------------------------------------------------------------------
Capital transactions --
Contributions $ 290,244,575 $ 791,713,159
Withdrawals (337,039,692) (806,819,022)
- -------------------------------------------------------------------------------
Net decrease in net assets
from capital transactions $ (46,795,117) $ (15,105,863)
- ------------------------------------------------------------------------------
Net decrease in net assets $ (43,783,276) $ (7,919,867)
- ------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------
At beginning of period $ 183,740,203 $ 191,660,070
- ------------------------------------------------------------------------------
At end of period $ 139,956,927 $ 183,740,203
- ------------------------------------------------------------------------------
See notes to financial statements
17
<PAGE>
Cash Management Portfolio as of June 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Six Months Ended Year Ended December 31,
June 30, 1998 ---------------------------------------------
(Unaudited) 1997 1996 1995 1994*
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------------------
Expenses 0.61%+ 0.59% 0.59% 0.60% 0.58%+
Net investment income 5.00%+ 4.96% 4.83% 5.36% 4.22%+
- -------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the period from the start of business, May 2, 1994, to December 31, 1994.
See notes to financial statements
18
<PAGE>
Cash Management Portfolio as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (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 the 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 has elected to be 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 Internal Revenue 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
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 Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian to the Portfolio. Pursuant to the respective custodian agreements,
IBT receives a fee reduced by credits which are determined based on the
average daily cash balances the Portfolio maintains with IBT. All significant
credit balances used to reduce the Portfolio's custodian fees are reported as
a reduction of operating expenses on 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.
G Other -- Investment transactions are accounted for on a trade date basis.
H Interim Financial Information -- The interim financial statements relating
to June 30, 1998 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, consisting only of normal
recurring 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 $304,298 for the six months ended June 30,
1998. 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.
19
<PAGE>
Cash Management Portfolio as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
3 Line of Credit
------------------------------------------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR or
EVM and its affiliates in a $100 million unsecured line of credit agreement
with a group of banks. The Portfolio may temporarily borrow from the line of
credit to satisfy redemption requests or settle investment transactions.
Interest is charged to each participating portfolio or fund based on its
borrowings 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 line of credit 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, 1998, exclusive of U.S. Government securities,
aggregated $455,763,326 and $434,622,741, respectively. Purchases and sales
(including maturities) of U.S. Government Agency securities aggregated
$273,732,705 and $338,489,942, respectively.
20
<PAGE>
Eaton Vance Money Market Funds as of June 30, 1998
INVESTMENT MANAGEMENT
Eaton Vance Mutual Funds Trust
Officers
M. Dozier Gardner
President and Trustee
James B. Hawkes
Vice President and Trustee
William H. Ahern, Jr.
Vice President
Thomas J. Fetter
Vice President
Robert B. MacIntosh
Vice President
Michael B. Terry
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate School of
Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
Cash Management Portfolio
Officers
M. Dozier Gardner
President and Trustee
James B. Hawkes
Vice President and Trustee
Michael B. Terry
Vice President and
Portfolio Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate School of
Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
21
<PAGE>
This Page Intentionally Left Blank
<PAGE>
This Page Intentionally Left Blank
<PAGE>
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
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
Eaton Vance
Mutual Funds Trust
24 Federal Street
Boston, MA 02110
- --------------------------------------------------------------------------------
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its sales charges and
expenses. Please read the prospectus carefully before you invest or send money.
- --------------------------------------------------------------------------------
