<PAGE>
[EATON VANCE LOGO]
[AMERICAN FLAG]
SEMIANNUAL REPORT JUNE 30, 1999
EATON VANCE
COMBINED
MONEY
MARKET FUNDS
REPORT
Global Management-Global Distribution
[STATUE OF LIBERTY]
Cash Management Fund
Liquid Assets Fund
Money Market Fund
[PHOTO OF PILLARS]
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF JUNE 30, 1999
INVESTMENT UPDATE
[PHOTO]
Michael B. Terry
Portfolio Manager
INVESTMENT ENVIRONMENT
- -----------------------------
THE ECONOMY
- - On the last day of June, the Federal Reserve Bank announced, as expected,
that it would raise the federal funds rate (the rate at which banks lend
money to each other overnight) by 0.25% to 5.0%. The Fed indicated it had
moved toward a neutral bias with regard to future rate movements, causing
stock and bond markets to rally. However, Chairman Greenspan has made it
clear the central bank is prepared to raise rates again, should signs of
inflation become evident.
- - During the just-ended second quarter, the outlook was optimistic for
continued U.S. economic strength, especially as the manufacturing sector
showed signs of recovery. In May, the index of leading economic indicators
rose by 0.3%, an improvement over April's 0.1% increase, suggesting the
period of sustained growth could continue into the next year.
- - The nation's gross domestic product increased by a stronger-than-expected
4.6% in the first quarter of 1999, then cooled to 2.3% in the second quarter.
The second quarter slowdown has been attributed in part to diminished
consumer spending.
THE MARKET
- - Prior to the interest rate announcement, investors had been expecting that
the Fed would announce rate hikes, as evidenced by the very steep yield
curve.
- - Even as money market rates went up, bond yields fell as the neutral bias
announcement caused the bond market to rally, with the 30-year Treasury bond
yield finishing the quarter just below the benchmark 6% level.
- - Despite the Fed's neutral bias, the upward-sloping money market yield curves
reflect investor sentiment that the Fed will raise rates by at least 25 basis
points more. Federal Reserve Chairman Greenspan has reaffirmed the Fed's
commitment to stifle any recurrence of inflation, and has left open the
possibility that he will tighten rates in the coming months.
THE CASH MANAGEMENT PORTFOLIO
- ------------------------------
- - The Portfolio, in which Cash Management Fund, Liquid Assets Fund, and Money
Market Fund invest, consists of only high-quality securities.
- - Commercial paper, a liquid investment commonly held by money market funds,
accounted for 58.2% of the Portfolio's holdings as of June 30, 1999.(1) Each
of the commercial paper holdings has received the top credit rating by at
least two of the nationally recognized statistical rating organizations.
- - The remaining 41.8% of the Portfolio(1) was invested in U.S. Government
obligations at June 30, 1999, which are not officially rated but are
generally considered to be of high credit quality.(2)
- - The Portfolio's average maturity typically ranged from 30 to 40 days.
[GRAPH]
06/30/99 5.16 5.16%
06/29/99 5.15 5.15%
06/28/99 5.12 5.12%
06/27/99 5.08 5.08%
06/26/99 5.08 5.08%
06/25/99 5.08 5.08%
06/24/99 5.04 5.04%
06/23/99 5.04 5.04%
06/22/99 5.01 5.01%
06/21/99 4.99 4.99%
06/20/99 5.00 5.00%
06/19/99 5.00 5.00%
06/18/99 5.00 5.00%
06/17/99 5.00 5.00%
06/16/99 4.98 4.98%
06/15/99 4.92 4.92%
06/14/99 4.95 4.95%
06/13/99 4.92 4.92%
06/12/99 4.92 4.92%
06/11/99 4.92 4.92%
06/10/99 4.88 4.88%
06/09/99 4.89 4.89%
06/08/99 4.88 4.88%
06/07/99 4.87 4.87%
06/06/99 4.89 4.89%
06/05/99 4.89 4.89%
06/04/99 4.89 4.89%
06/03/99 4.88 4.88%
06/02/99 4.88 4.88%
06/01/99 4.88 4.88%
05/31/99 4.86 4.86%
05/30/99 4.86 4.86%
05/29/99 4.86 4.86%
05/28/99 4.86 4.86%
05/27/99 4.84 4.84%
05/26/99 4.84 4.84%
05/25/99 4.84 4.84%
05/24/99 4.84 4.84%
05/23/99 4.84 4.84%
05/22/99 4.84 4.84%
05/21/99 4.84 4.84%
05/20/99 4.84 4.84%
05/19/99 4.84 4.84%
05/18/99 4.84 4.84%
05/17/99 4.82 4.82%
05/16/99 4.81 4.81%
05/15/99 4.81 4.81%
05/14/99 4.81 4.81%
05/13/99 4.80 4.80%
05/12/99 4.80 4.80%
05/11/99 4.79 4.79%
05/10/99 4.79 4.79%
05/09/99 4.79 4.79%
05/08/99 4.79 4.79%
05/07/99 4.79 4.79%
05/06/99 4.79 4.79%
05/05/99 4.80 4.80%
05/04/99 4.79 4.79%
05/03/99 4.79 4.79%
05/02/99 4.79 4.79%
05/01/99 4.79 4.79%
04/30/99 4.79 4.79%
04/29/99 4.78 4.78%
04/28/99 4.78 4.78%
04/27/99 4.78 4.78%
04/26/99 4.78 4.78%
04/25/99 4.79 4.79%
04/24/99 4.79 4.79%
04/23/99 4.79 4.79%
04/22/99 4.79 4.79%
04/21/99 4.79 4.79%
04/20/99 4.79 4.79%
04/19/99 4.79 4.79%
04/18/99 4.81 4.81%
04/17/99 4.81 4.81%
04/16/99 4.81 4.81%
04/15/99 4.80 4.80%
04/14/99 4.79 4.79%
04/13/99 4.81 4.81%
04/12/99 4.81 4.81%
04/11/99 4.82 4.82%
04/10/99 4.82 4.82%
04/09/99 4.82 4.82%
04/08/99 4.82 4.82%
04/07/99 4.83 4.83%
04/06/99 4.84 4.84%
04/05/99 4.84 4.84%
04/04/99 4.84 4.84%
04/03/99 4.84 4.84%
04/02/99 4.84 4.84%
04/01/99 4.83 4.83%
03/31/99 4.82 4.82%
03/30/99 4.83 4.83%
03/29/99 4.83 4.83%
03/28/99 4.82 4.82%
03/27/99 4.82 4.82%
03/26/99 4.82 4.82%
03/25/99 4.82 4.82%
03/24/99 4.82 4.82%
03/23/99 4.82 4.82%
03/22/99 4.82 4.82%
03/21/99 4.82 4.82%
03/20/99 4.82 4.82%
03/19/99 4.82 4.82%
03/18/99 4.82 4.82%
03/17/99 4.82 4.82%
03/16/99 4.82 4.82%
03/15/99 4.82 4.82%
03/14/99 4.82 4.82%
03/13/99 4.82 4.82%
03/12/99 4.82 4.82%
03/11/99 4.82 4.82%
03/10/99 4.82 4.82%
03/09/99 4.82 4.82%
03/08/99 4.82 4.82%
03/07/99 4.83 4.83%
03/06/99 4.83 4.83%
03/05/99 4.83 4.83%
03/04/99 4.84 4.84%
03/03/99 4.84 4.84%
03/02/99 4.84 4.84%
03/01/99 4.83 4.83%
02/28/99 4.83 4.83%
02/27/99 4.83 4.83%
02/26/99 4.83 4.83%
02/25/99 4.82 4.82%
02/24/99 4.82 4.82%
02/23/99 4.81 4.81%
02/22/99 4.81 4.81%
02/21/99 4.81 4.81%
02/20/99 4.81 4.81%
02/19/99 4.81 4.81%
02/18/99 4.81 4.81%
02/17/99 4.81 4.81%
02/16/99 4.81 4.81%
02/15/99 4.80 4.80%
02/14/99 4.80 4.80%
02/13/99 4.80 4.80%
02/12/99 4.80 4.80%
02/11/99 4.80 4.80%
02/10/99 4.81 4.81%
02/09/99 4.80 4.80%
02/08/99 4.79 4.79%
02/07/99 4.80 4.80%
02/06/99 4.80 4.80%
02/05/99 4.80 4.80%
02/04/99 4.79 4.79%
02/03/99 4.79 4.79%
02/02/99 4.80 4.80%
02/01/99 4.79 4.79%
01/31/99 4.79 4.79%
01/30/99 4.79 4.79%
01/29/99 4.79 4.79%
01/28/99 4.79 4.79%
01/27/99 4.78 4.78%
01/26/99 4.78 4.78%
01/25/99 4.78 4.78%
01/24/99 4.79 4.79%
01/23/99 4.79 4.79%
01/22/99 4.79 4.79%
01/21/99 4.80 4.80%
01/20/99 4.80 4.80%
01/19/99 4.80 4.80%
01/18/99 4.80 4.80%
01/17/99 4.80 4.80%
01/16/99 4.80 4.80%
01/15/99 4.80 4.80%
01/14/99 4.82 4.82%
01/13/99 4.83 4.83%
01/12/99 4.84 4.84%
01/11/99 4.83 4.83%
01/10/99 4.82 4.82%
01/09/99 4.82 4.82%
01/08/99 4.82 4.82%
01/07/99 4.83 4.83%
01/06/99 4.86 4.86%
01/05/99 4.88 4.88%
01/04/99 4.87 4.87%
01/03/99 4.89 4.89%
01/02/99 4.89 4.89%
01/01/99 4.89 4.89%
(1) At June 30, 1999. Portfolio weightings subject to change.
(2) 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.
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.
- --------------------------------------------------------------------------------
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, 1999
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
CASH LIQUID MONEY
MANAGEMENT FUND ASSETS FUND MARKET FUND
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------------------------
Investment in Cash Management Portfolio, at value $118,880,576 $ 6,438,596 $ 41,927,433
Receivable for Fund shares sold 1,067,214 -- 129,157
Receivable from the Administrator -- -- 651
Deferred organization expenses -- -- 5,223
- --------------------------------------------------------------------------------------------------
TOTAL ASSETS $119,947,790 $ 6,438,596 $ 42,062,464
- --------------------------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 869,165 $ 2,631 $ 456,558
Dividends payable 245,693 9,181 58,245
Payable to affiliate for Trustees' fees 265 -- --
Other accrued expenses 68,429 15,167 24,634
- --------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,183,552 $ 26,979 $ 539,437
- --------------------------------------------------------------------------------------------------
NET ASSETS (REPRESENTED BY PAID-IN-CAPITAL) $118,764,238 $ 6,411,617 $ 41,523,027
- --------------------------------------------------------------------------------------------------
Shares of Beneficial Interest Outstanding
- --------------------------------------------------------------------------------------------------
118,764,238 6,411,617 41,523,027
- --------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share
- --------------------------------------------------------------------------------------------------
(NET ASSETS DIVIDED BY 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, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
CASH LIQUID MONEY
MANAGEMENT FUND ASSETS FUND MARKET FUND
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
Investment Income
- --------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $2,336,465 $176,077 $ 855,689
Expenses allocated from Portfolio (286,864) (21,644) (105,074)
- --------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $2,049,601 $154,433 $ 750,615
- --------------------------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 2,173 $ 98 $ 98
Distribution and service fees -- 8,874 146,290
Transfer and dividend disbursing agent fees 55,654 4,259 16,204
Custodian fee -- 2,537 2,991
Registration fees 18,348 6,447 14,368
Legal and accounting services 8,225 7,356 8,127
Printing and postage 5,951 1,961 3,982
Amortization of organization expenses -- -- 3,452
Miscellaneous 2,975 1,774 2,476
- --------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 93,326 $ 33,306 $ 197,988
- --------------------------------------------------------------------------------------------------
Deduct --
Preliminary allocation of expenses to the
Administrator $ -- $ -- $ 651
- --------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ -- $ -- $ 651
- --------------------------------------------------------------------------------------------------
NET EXPENSES $ 93,326 $ 33,306 $ 197,337
- --------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $1,956,275 $121,127 $ 553,278
- --------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF JUNE 30, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
<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 $ 1,956,275 $ 121,127 $ 553,278
- ---------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net Investment income $ (1,956,275) $ (121,127) $ (553,278)
- ---------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares $ 225,522,143 $ -- $ 70,414,750
Net asset value of shares issued to
shareholders in payment of distributions
declared 943,601 61,540 387,835
Cost of shares redeemed (203,945,520) (1,623,461) (63,571,098)
- ---------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ 22,520,224 $ (1,561,921) $ 7,231,487
- ---------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 22,520,224 $ (1,561,921) $ 7,231,487
- ---------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------
At beginning of period $ 96,244,014 $ 7,973,538 $ 34,291,540
- ---------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 118,764,238 $ 6,411,617 $ 41,523,027
- ---------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF JUNE 30, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
<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 $ 4,661,597 $ 423,427 $ 1,021,865
- ---------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net Investment income $ (4,661,597) $ (423,427) $ (1,021,865)
- ---------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares $ 503,937,629 $ 77,632 $ 106,237,780
Net asset value of shares issued to
shareholders in payment of distributions
declared 2,326,522 239,050 790,419
Cost of shares redeemed (556,763,381) (5,343,871) (96,545,361)
- ---------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (50,499,230) $ (5,027,189) $ 10,482,838
- ---------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (50,499,230) $ (5,027,189) $ 10,482,838
- ---------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------
At beginning of year $ 146,743,244 $ 13,000,727 $ 23,808,702
- ---------------------------------------------------------------------------------------------------
AT END OF YEAR $ 96,244,014 $ 7,973,538 $ 34,291,540
- ---------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF JUNE 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CASH MANAGEMENT FUND
-----------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1999 ---------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------
Income from operations
- -------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.0210 $ 0.0470 $ 0.0478 $ 0.0470 $ 0.0522 $ 0.0345
- -------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------
From net investment income $(0.0210) $(0.0470) $(0.0478) $(0.0470) $(0.0522) $(0.0345)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(1) 2.07% 4.78% 4.89% 4.82% 5.35% 3.49%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $118,764 $ 96,244 $146,743 $151,691 $155,251 $111,622
Ratios (As a percentage of average
daily net assets):
Expenses(2) 0.81%(3) 0.85% 0.78% 0.74% 0.74% 0.84%
Net investment income 4.14%(3) 4.69% 4.79% 4.70% 5.22% 3.40%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(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 its Portfolio's allocated expenses.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF JUNE 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LIQUID ASSETS FUND
-----------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1999 ---------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<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 $ 0.0170 $ 0.0410 $ 0.0420 $ 0.0432 $ 0.0505 $ 0.0328
- -------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------
From net investment income $(0.0170) $(0.0410) $(0.0420) $(0.0432) $(0.0505) $(0.0328)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(1) 1.56% 4.20% 4.29% 4.41% 5.16% 3.29%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $ 6,412 $ 7,974 $ 13,001 $ 19,910 $ 34,026 $118,599
Ratios (As a percentage of average
daily net assets):
Expenses(2) 1.55%(3) 1.43% 1.35% 1.13% 0.91% 0.94%
Net investment income 3.41%(3) 4.14% 4.21% 4.31% 5.11% 3.55%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(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 its Portfolio's allocated expenses.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF JUNE 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MONEY MARKET FUND
-----------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1999 ---------------------------------------------
(UNAUDITED) 1998 1997 1996 1995(1)
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------
Income from operations
- -------------------------------------------------------------------------------------------------------
Net investment income $ 0.0160 $ 0.0369 $ 0.0381 $ 0.0370 $ 0.0312
- -------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------
From net investment income $(0.0160) $(0.0369) $(0.0381) $(0.0370) $(0.0312)
- -------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 1.45% 3.75% 3.88% 3.77% 3.17%
- -------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $ 41,523 $ 34,292 $ 23,809 $ 31,250 $ 12,951
Ratios (As a percentage of average
daily net assets):
Net expenses(3) 1.76%(4) 1.82% 1.73% 1.73% 1.68%(4)
Net investment income 3.21%(4) 3.70% 3.83% 3.70% 4.19%(4)
- -------------------------------------------------------------------------------------------------------
+ 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:
Ratios (As a percentage of average
daily net assets):
Expenses(3) 1.76%(4) 1.86% 1.82% 1.76% 1.85%(4)
Net investment income 3.21%(4) 3.66% 3.74% 3.66% 4.03%(4)
Net investment income per share $ 0.0160 $ 0.0365 $ 0.0372 $ 0.0367 $ 0.0300
- -------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the period from the start of business, April 5, 1995, to December 31,
1995.
(2) 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.
(3) Includes the Fund's share of its Portfolio's allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF JUNE 30, 1999
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 (71.1% for Cash Management Fund, 3.8% for Liquid Assets Fund and
25.1% for Money Market Fund at June 30, 1999). 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 -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable income, including any
net realized gain on investments. Accordingly, no provision for federal
income or excise tax is necessary. At December 31, 1998, Liquid Assets Fund,
for federal income tax purposes, had a capital loss carryover of $6,891,
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 Statements -- The interim financial statements relating to
June 30, 1999 and for the six months 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.
The Funds distinguish between distributions on a tax basis and a financial
reporting basis. Generally accepted
10
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF JUNE 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
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:
<TABLE>
<CAPTION>
CASH MANAGEMENT FUND
--------------------------------------
SIX MONTHS ENDED
JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1998
<S> <C> <C>
- --------------------------------------------------------------------------------
Sales $ 225,522,143 $ 503,937,629
Issued to shareholders electing
to receive payments of
distributions in Fund shares 943,601 2,326,522
Redemptions (203,945,520) (556,763,381)
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) 22,520,224 (50,499,230)
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
LIQUID ASSETS FUND
--------------------------------------
SIX MONTHS ENDED
JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1998
<S> <C> <C>
- --------------------------------------------------------------------------------
Sales $ -- $ 77,632
Issued to shareholders electing
to receive payments of
distributions in Fund shares 61,540 239,050
Redemptions (1,623,461) (5,343,871)
- --------------------------------------------------------------------------------
NET DECREASE (1,561,921) (5,027,189)
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET FUND
--------------------------------------
SIX MONTHS ENDED
JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1998
<S> <C> <C>
- --------------------------------------------------------------------------------
Sales $ 70,414,750 $106,237,780
Issued to shareholders electing
to receive payments of
distributions in Fund shares 387,835 790,419
Redemptions (63,571,098) (96,545,361)
- --------------------------------------------------------------------------------
NET INCREASE 7,231,487 10,482,838
- --------------------------------------------------------------------------------
</TABLE>
4 Transactions with Affiliates
- -------------------------------------------
Eaton Vance Management (EVM) serves as the administrator of the Funds, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 2 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report. To enhance the net income of the Money
Market Fund for the six months ended June 30, 1999, $651 of expenses related
to the operation of the Fund were allocated to EVM. 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 officers and
Trustees of the Funds and of the Portfolio are officers of the above
organizations.
5 Distribution Plans
- -------------------------------------------
Money Market Fund and Liquid Assets Fund have adopted distribution plans
(individually the "Plan" and collectively the "Plans") pursuant to Rule 12b-1
under the 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. Each Fund's balance of Uncovered Distribution
Charges is equivalent to the sum of (i) 6.25% (5% for Liquid Assets Fund) of
the aggregate amount received by the Fund for shares sold plus (ii) interest
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, 1999, Money Market
Fund paid $129,079 to EVD, representing 0.75% (annualized) of the Fund's
average daily net assets. At June 30, 1999, the amount of Uncovered
Distribution Charges of EVD calculated under the Plan for Money Market Fund
and Liquid Assets Fund were approximately $5,702,000 and $2,455,000,
respectively.
11
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF JUNE 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
In addition, the Plans authorize the Funds to make payments of service fees
to the Principal Underwriter, investment dealers and other persons in amounts
not exceeding 0.25% of each Fund's average daily net assets. The Trustees of
the Funds implemented the Plans by authorizing the Funds to make quarterly
service fee payments to the Principal Underwriter and investment dealers 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, 1999, Money Market Fund and Liquid Assets Fund paid
service fees to EVD and investment dealers in the amount of $17,211 and
$8,874 respectively. Service fee payments are made for personal services
and/or maintenance of shareholder accounts. Service fees paid to EVD and
investment dealers are 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 officers and Trustees of the Funds are officers or directors of EVD.
6 Contingent Deferred Sales Charge
- -------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
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 and may be waived
under certain other circumstances. 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 $219,000 and $3,000 of CDSC paid by shareholders for the six
months ended June 30, 1999 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, 1999 were as follows:
<TABLE>
<CAPTION>
CASH MANAGEMENT FUND
<S> <C>
- -------------------------------------------------------
Increases $ 225,139,601
Decreases 205,779,544
<CAPTION>
LIQUID ASSETS FUND
<S> <C>
- -------------------------------------------------------
Increases $ 2,057
Decreases 1,724,950
<CAPTION>
MONEY MARKET FUND
<S> <C>
- -------------------------------------------------------
Increases $ 70,470,497
Decreases 64,158,126
</TABLE>
12
<PAGE>
CASH MANAGEMENT PORTFOLIO AS OF JUNE 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
COMMERCIAL PAPER -- 58.2%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Automotive -- 1.8%
- ----------------------------------------------------------------------------
$ 1,500 Ford Motor Credit Co., 4.95%, 7/21/99 $ 1,495,875
1,500 General Motors Acceptance Corp., 5.06%,
8/2/99 1,493,253
- ----------------------------------------------------------------------------
$ 2,989,128
- ----------------------------------------------------------------------------
Banking and Finance -- 16.1%
- ----------------------------------------------------------------------------
$ 1,300 American Express Credit Corp., 4.78%,
7/6/99 $ 1,299,137
523 American Express Credit Corp., 4.78%,
7/7/99 522,634
2,420 Ameritech Capital Funding Corp., 5.12%,
8/9/99(1)(2) 2,406,577
1,075 Asset Securitization Coop. Corp., 4.91%,
7/28/99(1) 1,071,041
3,000 Asset Securitization Coop. Corp., 4.90%,
7/29/99(1) 2,988,567
355 Associates Corp. of North America,
4.78%, 7/8/99 354,670
1,385 Associates Corp. of North America,
4.79%, 7/8/99 1,383,710
2,000 Associates Corp. of North America,
4.86%, 8/9/99 1,989,470
1,400 BTR Dunlop Finance, Inc., 4.89%, 7/13/99 1,397,718
3,700 CIESCO, 4.83%, 7/20/99 3,690,568
2,030 CIT Group Holdings, Inc., 4.84%, 7/15/99 2,026,179
3,000 Corporate Asset Funding Co., 5.02%,
8/11/99(1) 2,982,848
1,000 Corporate Receivables Corp., 4.85%,
7/14/99(1)(2) 998,249
1,990 Corporate Receivables Corp., 5.05%,
7/27/99(1)(2) 1,982,742
533 Delaware Funding Corp., 5.03%,
7/21/99(1)(2) 531,511
1,300 Delaware Funding Corp., 5.20%,
7/28/99(1)(2) 1,294,930
- ----------------------------------------------------------------------------
$ 26,920,551
- ----------------------------------------------------------------------------
Chemicals -- 1.8%
- ----------------------------------------------------------------------------
$ 3,000 E.I. Dupont de Nemours & Co., 4.85%,
8/3/99 $ 2,986,663
- ----------------------------------------------------------------------------
$ 2,986,663
- ----------------------------------------------------------------------------
Credit Unions -- 2.9%
- ----------------------------------------------------------------------------
$ 790 Mid-States Corp. Federal Credit Union,
4.98%, 7/15/99 $ 788,470
4,000 Mid-States Corp. Federal Credit Union,
5.03%, 7/15/99 3,992,176
- ----------------------------------------------------------------------------
$ 4,780,646
- ----------------------------------------------------------------------------
Electric Utilities -- 3.7%
- ----------------------------------------------------------------------------
$ 400 National Rural Utilities Coop., 4.88%,
7/19/99 $ 399,024
2,500 National Rural Utilities Coop., 4.79%,
8/10/99 2,486,694
1,645 TECO Finance, Inc., 4.87%, 7/7/99(1) 1,643,665
1,600 TECO Finance, Inc., 5.00%, 8/17/99(1) 1,589,556
- ----------------------------------------------------------------------------
$ 6,118,939
- ----------------------------------------------------------------------------
Electrical and Electronic Equipment -- 3.3%
- ----------------------------------------------------------------------------
$ 3,655 General Electric Capital Corp., 4.82%,
7/9/99 $ 3,651,085
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Electrical and Electronic Equipment (continued)
- ----------------------------------------------------------------------------
$ 455 General Electric Capital Corp., 4.81%,
7/12/99 $ 454,331
1,500 General Electric Capital Corp., 4.82%,
7/12/99 1,497,791
- ----------------------------------------------------------------------------
$ 5,603,207
- ----------------------------------------------------------------------------
Food and Beverages -- 3.0%
- ----------------------------------------------------------------------------
$ 1,386 Anheuser-Busch Cos., Inc., 4.90%, 7/6/99 $ 1,385,057
2,000 Coca-Cola Co., 4.80%, 7/22/99 1,994,400
1,670 Nestle Capital Corp., 4.91%, 7/26/99 1,664,306
- ----------------------------------------------------------------------------
$ 5,043,763
- ----------------------------------------------------------------------------
Gas Utilities -- 0.7%
- ----------------------------------------------------------------------------
$ 1,160 Consolidated Natural Gas Co., 4.95%,
7/12/99 $ 1,158,246
- ----------------------------------------------------------------------------
$ 1,158,246
- ----------------------------------------------------------------------------
Household Products -- 5.9%
- ----------------------------------------------------------------------------
$ 2,500 Procter and Gamble Co., 4.87%, 7/12/99 $ 2,496,280
2,445 Procter and Gamble Co., 5.15%, 9/8/99 2,420,866
5,070 Unilever Capital Corp., 4.98%, 9/7/99(1) 5,022,308
- ----------------------------------------------------------------------------
$ 9,939,454
- ----------------------------------------------------------------------------
Insurance -- 7.5%
- ----------------------------------------------------------------------------
$ 2,740 AI Credit Corp., 4.83%, 8/6/99 $ 2,726,766
1,505 American General Corp., 5.02%, 8/20/99 1,494,507
2,215 MetLife Funding, Inc., 4.86%, 7/8/99 2,212,907
1,700 Prudential Funding Corp., 5.01%, 7/23/99 1,694,795
2,000 USAA Capital Corp., 4.87%, 7/19/99 1,995,130
1,375 USAA Capital Corp., 4.88%, 8/4/99 1,368,663
1,000 USAA Capital Corp., 4.79%, 8/9/99 994,811
- ----------------------------------------------------------------------------
$ 12,487,579
- ----------------------------------------------------------------------------
Oil -- 5.4%
- ----------------------------------------------------------------------------
$ 1,253 BP America, Inc., 4.91%, 8/20/99 $ 1,244,455
3,000 Chevron USA, Inc., 4.80%, 7/1/99 3,000,000
2,000 Chevron USA, Inc., 4.80%, 7/2/99 1,999,733
2,500 Cortez Capital Corp., 4.85%, 7/30/99(1) 2,490,233
375 Exxon Imperial U.S., Inc., 4.80%,
7/7/99(1) 374,700
- ----------------------------------------------------------------------------
$ 9,109,121
- ----------------------------------------------------------------------------
Pharmaceutical -- 2.5%
- ----------------------------------------------------------------------------
$ 2,795 Schering Corp., 4.86%, 7/27/99 $ 2,785,190
1,500 Schering Corp., 4.88%, 8/17/99 1,490,443
- ----------------------------------------------------------------------------
$ 4,275,633
- ----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
CASH MANAGEMENT PORTFOLIO AS OF JUNE 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
Telecommunications -- 3.6%
- ----------------------------------------------------------------------------
$ 1,010 AT&T Corp., 4.79%, 8/13/99 $ 1,004,222
1,500 AT&T Corp., 4.82%, 8/13/99 1,491,364
3,500 Bellsouth Telecommunications, Inc.,
4.82%, 7/20/99 3,491,096
- ----------------------------------------------------------------------------
$ 5,986,682
- ----------------------------------------------------------------------------
Total Commercial Paper, at value
(identified cost $97,399,611) $ 97,399,612
- ----------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS -- 41.8%
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
$ 2,000 FHLB Discount Notes,
4.76%, 7/14/99 $ 1,996,562
2,000 FHLB Discount Notes,
4.76%, 7/16/99 1,996,033
5,945 FHLMC Discount Notes,
4.735%, 7/13/99 5,935,616
200 FHLMC Discount Notes,
4.74%, 8/2/99 199,157
2,655 FHLMC Discount Notes,
4.83%, 8/2/99 2,643,601
4,980 FHLMC Discount Notes,
4.80%, 8/5/99 4,956,760
3,000 FHLMC Discount Notes,
4.79%, 8/16/99 2,981,638
4,080 FHLMC Discount Notes,
4.79%, 8/18/99 4,053,943
3,186 FHLMC Discount Notes,
4.795%, 8/19/99 3,165,207
30,500 FNMA Discount Notes,
5.02%, 8/6/99 30,346,889
1,780 FNMA Discount Notes,
4.74%, 8/12/99 1,770,156
666 FNMA Discount Notes,
4.74%, 8/13/99 662,229
3,650 FNMA Discount Notes,
4.79%, 8/24/99 3,623,775
5,583 FNMA Discount Notes,
4.80%, 8/27/99 5,540,568
- ----------------------------------------------------------------------------
Total U.S. Government Obligations, at value
(identified cost $69,872,135) $ 69,872,134
- ----------------------------------------------------------------------------
<CAPTION>
VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Total Investments -- 100.0%
(identified cost $167,271,746) $167,271,746(3)
- ----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0% $ (25,141)
- ----------------------------------------------------------------------------
Net Assets -- 100% $ 167,246,605
- ----------------------------------------------------------------------------
</TABLE>
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan 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, 1999, the value
of these securities amounted to $25,376,926 or 15.2% of the Portfolio's net
assets.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. It is the
Portfolio's intention to hold the security until maturity. At June 30,
1999, the value of these securities amounted to $7,214,009 or 4.3% of the
Portfolio's net assets.
(3) Cost for Federal income tax purposes is the same.
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
CASH MANAGEMENT PORTFOLIO AS OF JUNE 30, 1999
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF JUNE 30, 1999
<S> <C>
Assets
- -------------------------------------------------------
Investments, at value $ 167,271,746
Cash 4,371
- -------------------------------------------------------
TOTAL ASSETS $ 167,276,117
- -------------------------------------------------------
Liabilities
- -------------------------------------------------------
Other accrued expenses $ 29,512
- -------------------------------------------------------
TOTAL LIABILITIES $ 29,512
- -------------------------------------------------------
NET ASSETS (REPRESENTING
PAID-IN-CAPITAL) $ 167,246,605
- -------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $ 167,246,605
- -------------------------------------------------------
TOTAL $ 167,246,605
- -------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JUNE 30, 1999
<S> <C>
Investment Income
- -----------------------------------------------------
Interest $ 3,368,231
- -----------------------------------------------------
Expenses
- -----------------------------------------------------
Investment adviser fee $ 343,762
Trustees fees and expenses 5,539
Custodian fee 47,763
Legal and accounting services 15,159
Amortization of organization expenses 907
Miscellaneous 452
- -----------------------------------------------------
TOTAL EXPENSES $ 413,582
- -----------------------------------------------------
NET INVESTMENT INCOME $ 2,954,649
- -----------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
CASH MANAGEMENT PORTFOLIO AS OF JUNE 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
Increase (Decrease) JUNE 30, 1999 YEAR ENDED
in Net Assets (UNAUDITED) DECEMBER 31, 1998
<S> <C> <C>
- --------------------------------------------------------------------------------
From operations --
Net investment income $ 2,954,649 $ 6,761,310
- --------------------------------------------------------------------------------
Capital transactions --
Contributions $ 295,612,155 $ 610,798,591
Withdrawals (271,662,620) (660,957,683)
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ 23,949,535 $ (50,159,092)
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 26,904,184 $ (43,397,782)
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of period $ 140,342,421 $ 183,740,203
- --------------------------------------------------------------------------------
AT END OF PERIOD $ 167,246,605 $ 140,342,421
- --------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
CASH MANAGEMENT PORTFOLIO AS OF JUNE 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
1999 ---------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994(1)
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses 0.61%(2) 0.61% 0.59% 0.59% 0.60% 0.58%(2)
Net investment income 4.33%(2) 4.90% 4.96% 4.83% 5.36% 4.22%(2)
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the period from the start of business, May 2, 1994, to December 31,
1994.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
CASH MANAGEMENT PORTFOLIO AS OF JUNE 30, 1999
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 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 Statements -- The interim financial statements relating to
June 30, 1999 and for the six months 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 $343,762 for the six months ended
June 30, 1999. 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 officers and Trustees of the Portfolio are officers of the above
organizations.
3 Line of Credit
- -------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR or
EVM and its affiliates in a $130 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
18
<PAGE>
CASH MANAGEMENT PORTFOLIO AS OF JUNE 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
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, 1999, exclusive of U.S. Government securities,
aggregated $353,377,137 and $348,709,793, respectively. Purchases and sales
(including maturities) of U.S. Government Agency securities aggregated
$298,366,831 and $275,786,560, respectively.
19
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF JUNE 30, 1999
INVESTMENT MANAGEMENT
EATON VANCE MUTUAL FUNDS TRUST
Officers
James B. Hawkes
President and Trustee
William H. Ahern, Jr.
Vice President
Thomas J. Fetter
Vice President
Armin J. Lang
Vice President
Robert B. MacIntosh
Vice President
Edward E. Smiley, Jr.
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking
Emeritus, Harvard University Graduate School of
Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
CASH MANAGEMENT PORTFOLIO
Officers
James B. Hawkes
President and Trustee
Michael B. Terry
Vice President and
Portfolio Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking
Emeritus, Harvard University Graduate School of
Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
20
<PAGE>
PORTFOLIO INVESTMENT ADVISER
BOSTON MANAGEMENT AND RESEARCH
The Eaton Vance Building
255 State Street
Boston, MA 02109
FUND ADMINISTRATOR
EATON VANCE MANAGEMENT
The Eaton Vance Building
255 State Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
EATON VANCE DISTRIBUTORS, INC.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
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
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
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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 sales charges and
expenses. Please read the prospectus carefully before you invest or send money.
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3-4256 MMSRC-8/99
