<PAGE>
[LOGO]
[GRAPHIC] [Picture of Statue of Liberty]
ANNUAL REPORT DECEMBER 31, 1999
[Picture of Government Building]
EATON VANCE
GOVERNMENT OBLIGATIONS FUND
GLOBAL MANAGEMENT-GLOBAL DISTRIBUTION
[Picture of American Flag]
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
- -------------------------------------------------------------------------------
[PHOTO]
James B. Hawkes
President
Letter to Shareholders
Eaton Vance Government Obligations Fund Class A shares had a total return of
0.56% for the year ended December 31, 1999.(1) That return was the result of
a decrease in net asset value per share from $10.40 on December 31, 1998 to
$9.70 on December 31, 1999, and the reinvestment of $0.756 in dividends.
Class B shares had a total return of -0.20% for the same period, the result of a
decrease in NAV from $8.95 to $8.35, and the reinvestment of $0.582 in
dividends.(1)
Class C shares had a total return of -0.20% for the same period, the result of a
decrease in NAV from $8.96 to $8.36, and the reinvestment of $0.582 in
dividends.(1)
By comparison, the Lehman Brothers Intermediate Government Bond Index - a widely
recognized, unmanaged index of intermediate-maturity U.S. government bonds - had
a total return of 0.49% for the same period.(2)
Higher interest rates produced a challenging year for the fixed-income markets
in 1999...
It was a very challenging year for fixed-income investors. A continuing strong
economy led to sharply higher interest rates and negative total returns for most
interest rate sensitive investments. Interestingly, amid increased global
competition, inflation has remained fairly subdued. The Consumer Price Index, a
measure of inflation at the consumer level, posted an increase of just 2.7% in
1999. Nonetheless, despite the tame inflation figures, the Federal Reserve
tightened credit throughout 1999 in an effort to forestall any potential
inflation in the future.
Mortgage-backed securities remain an attractive income alternative for
quality-conscious investors...
The mortgage-backed securities market has historically represented a sound
investment alternative for income-oriented investors. The events of the past
year and a half have created unusually good value, and, while it is impossible
to predict future market trends, we believe that the mortgage-backed securities
market will continue its singular role for conservative investors. Eaton Vance
Government Obligations Fund will maintain its focus on the seasoned sector of
this growing market and seek further opportunities for quality-conscious
investors. In the following pages, portfolio manager Susan Schiff reviews the
mortgage securities market of 1999, and looks ahead to opportunities in the
coming year.
Sincerely,
/s/ James B. Hawkes
James B. Hawkes
President
February 9, 2000
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
PERFORMANCE(3) CLASS A CLASS B CLASS C
- -------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
One Year 0.56% -0.20% -0.20%
Five Years 6.28 5.52 5.38
Ten Years 6.66 N.A. N.A.
Life of Fund+ 8.22 4.13 3.96
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
One Year -4.23% -4.87% -1.13%
Five Years 5.25 5.22 5.38
Ten Years 6.15 N.A. N.A.
Life of Fund+ 7.88 4.13 3.96
+ Inception Dates - Class A: 8/24/84; Class B: 11/1/93; Class C: 11/1/93
</TABLE>
DIVERSIFICATION BY SECTORS(4)
- -------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
Federal Home Loan Mortgage Corp. 38.1%
Federal National Mortgage Assn 35.0%
Agency Debentures 18.7%
Government National Mortgage Assn 6.4%
Other 1.8%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC)
for Class B and Class C shares. (2) It is not possible to invest directly in
an Index. (3) Returns are historical and are calculated by determining the
percentage change in net asset value with all distributions reinvested. SEC
returns for Class A reflect the maximum 4.75% sales charge. SEC returns for
Class B reflect applicable CDSC based on the following schedule: 5% - 1st
and 2nd years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
SEC 1-Year return for Class C reflects a 1% CDSC. (4) Because the Portfolio
is actively managed, Sector Weightings are subject to change.
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.
2
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
- -------------------------------------------------------------------------------
MANAGEMENT DISCUSSION
[PHOTO]
Susan Schiff
Portfolio Manager
AN INTERVIEW WITH SUSAN SCHIFF, PORTFOLIO MANAGER OF GOVERNMENT OBLIGATIONS
PORTFOLIO
Q: Susan, after a crisis-marked 1998, fixed-income investors faced additional
challenges in 1999. How would you describe the bond market environment during
the past year?
A: Last year was another volatile year for the fixed-income markets. Despite
relatively tame inflation figures, interest rates moved sharply higher during
the year. The Federal Reserve attempted to cut short any potential
inflationary forces by raising the Federal Funds rate on three occasions
during the year.
Fed Chairman Greenspan has focused on the strong economy, the tight labor
market and, increasingly, on the wealth effect caused by the surging stock
market. The Fed's aggressive stance created a very challenging environment
for the fixed-income markets. As a measure of the difficult market
conditions, yields for 5-year Treasuries started the year at 4.54%. By
year-end, 5-year yields stood at 6.28%, a rise of 174 basis points (1.74%).
Q: How would you evaluate the Fund's performance in 1999?
A: The Fund outperformed Treasury bonds and most other fixed-income sectors
during the year. One reason for the outperformance was that the Fund has a
fairly short duration. Duration is a measure of the Fund's responsiveness to
changes in interest rates.
Another reason for the outperformance was the recovery of mortgage-backed
securities (MBS) during 1999 from their oversold levels of the previous year.
Many investors had assumed - wrongly, as it turned out - that prepayment
rates for seasoned MBS would rise sharply in 1999. That was not the case, as
prepayment rates remained fairly consistent with historical patterns. As a
result, yield spreads over similar maturity Treasuries narrowed and seasoned
MBS recovered some of the ground lost in 1998.
Q: How did prepayment rates for seasoned MBS fluctuate in 1999?
A: Following the crisis of 1998 and the flight to quality that ensued, there
were widespread investor concerns that there would be MASSIVE mortgage
refinancings by homeowners, even within the seasoned sector of the MBS
market, the Fund's primary investment universe. As I've indicated in past
reports, MBS analysts make assumptions about future prepayment
- -------------------------------------------------------------------------------
PREPAYMENT RATES(1)
- ------------------------
GOVERNMENT OBLIGATIONS PORTFOLIO VS. GENERIC 9% FNMAS
[GRAPH]
<TABLE>
<CAPTION>
Generic Seasoned
<S> <C> <C>
Nov-91 7.8 14.1
Dec-91 10.3 15.4
Dec-92 45.5 18.5
Dec-93 62.7 27.6
Dec-94 10.8 13.7
Dec-95 23.5 13.2
Dec-96 18.1 13.4
Dec-97 26.3 16.9
Dec-98 37.6 27.5
Dec-99 22.1 16.1
</TABLE>
(1) Chart compares annualized monthly principal prepayment rates of the
Portfolio's seasoned mortgage-backed securities (green line) with those of
generic 30-year FNMA 9% mortgage-backed securities. Sources: Lehman
Brothers; Bloomberg L.P.; Eaton Vance Management.
Past performance is no guarantee of future results.
- -------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
3
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
- -------------------------------------------------------------------------------
MANAGEMENT DISCUSSION CONT'D
rates based on past prepayment history amid the direction of interest rates.
These mistaken assumptions caused spreads - the difference between MBS yields
and Treasury yields - to widen significantly in 1998. While prepayment rates
rose somewhat, they didn't approach the levels that some analysts had
predicted. As a result, spreads narrowed in 1999, with MBS outperforming
Treasury bonds.
Q: How have you positioned the Fund in recent months?
A: Our focus has remained on the seasoned segment of the mortgage-backed
securities market. A portion of the Fund is invested in low-coupon MBS, while
another portion is invested in high-coupon securities. The low-coupon issues
have coupons in the 4% to 9% range and are attractive for several reasons.
These mortgages were originated in the 1960s and 1970s at rates near or below
current rates. Therefore, there is little incentive for these homeowners to
refinance.
The high-coupon issues generally have coupons in the 12% to 16% range.
Issued in the late 1970s and 1980s, the refinancing within this segment took
place years ago. The remaining mortgages have relatively stable prepayment
rates and provide a very attractive income stream.
Q: Given the interest rate climate, did you make any adjustments to the Fund?
A: Yes. We made several adjustments. First, we took advantage of our charter
flexibility to lower the Fund's duration. In a rising interest rate
environment, longer duration securities tend to decline more than shorter
duration vehicles. We shortened the Fund's duration to 3.0 years at December
31, somewhat below the midpoint of our duration range. That limited our
downside risk.
Second, last year's widening of yield spreads created an excellent
opportunity in the MBS market and we were able to exploit that advantage.
Finally, we found some opportunities in selected Federal National Mortgage
Co. (Fannie Mae) and Federal Home Loan Mortgage Co. (Freddie Mac) debentures.
Q: What did you find compelling about Fannie Mae and Freddie Mac?
A: Fannie Mae and Freddie Mac are government-sponsored enterprises that provide
liquidity for the U.S. mortgage market. In addition to issuing
mortgage-backed securities, they each maintain a portfolio of retained
mortgages.
Fannie Mae and Freddie Mac have thrived in recent years amid the robust
housing market. Interestingly, though, yield spreads for their debentures
widened significantly during this past summer. Given this anomaly, we put a
portion of the Fund's investments into Fannie Mae and Freddie Mac debentures,
which provided extremely attractive yields in very high-quality securities.
Q: What is your outlook for the mortgage securities market in the coming year?
A: In its continued battle against inflation in 1999, the Federal Reserve
displayed a distinct bias for higher interest rates. Naturally, it's very
difficult to predict the future direction of interest rates, but the Fed has
now reversed the rate declines of 1998.
With the exception of higher energy costs, inflation remains very much
under control. If inflation remains subdued, we could eventually enter a
period of fairly stable interest rates - a most favorable scenario for
mortgage-backed securities. Seasoned mortgages - with their high quality,
increasingly attractive yields and relatively stable prepayment rates -
offer investors a major advantage. Therefore, I believe the outlook has
improved for the mortgage-securities market and that the Fund is
well-positioned for the coming year.
4
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
- -------------------------------------------------------------------------------
MANAGEMENT DISCUSSION CONT'D
[GRAPH]
+ Comparison of Change in Value of a $10,000 Investment in Eaton Vance
Government Obligations Fund Class A vs. the Lehman Brothers Intermediate
Govt. Index and Lipper Short-Intermediate Govt. Funds Avg.*
<TABLE>
<CAPTION>
FUND/NAV FUND/MOP LBIGBI LIGFI
<S> <C> <C> <C> <C>
12/31/89 $10,000 $9,529 $10,000 $10,000
12/31/90 $10,897 $10,383 $10,956 $10,671
12/31/91 $12,468 $11,880 $12,501 $12,216
12/31/92 $13,127 $12,509 $13,368 $12,957
12/31/93 $14,343 $13,667 $14,460 $14,020
12/31/94 $14,052 $13,389 $14,207 $13,469
12/31/95 $16,014 $15,259 $16,254 $15,302
12/31/96 $16,738 $15,949 $16,915 $15,736
12/31/97 $17,953 $17,107 $18,221 $17,025
12/31/98 $18,951 $18,057 $19,767 $18,363
12/31/99 $19,056 $18,158 $19,863 $18,041
</TABLE>
<TABLE>
<CAPTION>
PERFORMANCE CLASS A CLASS B CLASS C
- -------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
One Year 0.56% -0.20% -0.20%
Five Years 6.28 5.52 5.38
Ten Years 6.66 N.A. N.A.
Life of Fund+ 8.22 4.13 3.96
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
One Year -4.23% -4.87% -1.13%
Five Years 5.25 5.22 5.38
Ten Years 6.15 N.A. N.A.
Life of Fund+ 7.88 4.13 3.96
+Inception Dates - Class A: 8/24/84; Class B: 11/1/93; Class C:11/1/93
</TABLE>
* Sources: TowersData, Bethesda, MD.; Lipper Inc.
The chart compares the Fund's total return with that of the Lehman Brothers
Intermediate Government Bond Index, a broad-based, unmanaged market index of
intermediate-maturity, U.S. government bonds. The Chart also includes a
comparison to the Lipper Short-Intermediate Government Funds Average, the
fund peer classification of Eaton Vance Government Obligations Fund. Returns
are calculated by determining the percentage change in net asset value (NAV)
with all distributions reinvested. The lines on the chart represent the total
returns of $10,000 hypothetical investments in the Fund and the Index. An
investment in the Fund's Class B shares on 11/1/93 at net asset value would
have been worth $12,840 on December 31, 1999. An investment in the Fund's
Class C shares on 11/1/93 at net asset value would have been worth $12,710 on
December 31, 1999. The Index's total return does not reflect commissions or
expenses that would have been incurred if an investor individually purchased
or sold the securities represented in the Index. It is not possible to invest
directly in an Index.
** Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. SEC returns for
Class A reflect the maximum 4.75% sales charge. SEC returns for Class B
reflect applicable CDSC based on the following schedule: 5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. SEC 1-year
return for Class C reflects 1% CDSC.
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.
5
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF DECEMBER 31, 1999
<S> <C>
Assets
- ------------------------------------------------------
Investment in Government Obligations
Portfolio, at value
(identified cost, $353,219,758) $345,199,928
Receivable for Fund shares sold 449,299
- ------------------------------------------------------
TOTAL ASSETS $345,649,227
- ------------------------------------------------------
Liabilities
- ------------------------------------------------------
Payable for Fund shares redeemed $ 1,136,255
Dividends payable 1,055,090
Payable to affiliate for service fees 7,899
Payable to affiliate for Trustees' fees 1,519
Accrued expenses 540,638
- ------------------------------------------------------
TOTAL LIABILITIES $ 2,741,401
- ------------------------------------------------------
NET ASSETS $342,907,826
- ------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------
Paid-in capital $415,665,086
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (63,682,340)
Accumulated distributions in excess of
net investment income (1,055,090)
Net unrealized depreciation from
Portfolio (computed on the basis of
identified cost) (8,019,830)
- ------------------------------------------------------
TOTAL $342,907,826
- ------------------------------------------------------
Class A Shares
- ------------------------------------------------------
NET ASSETS $195,161,763
SHARES OUTSTANDING 20,115,669
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.70
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of $9.70) $ 10.18
- ------------------------------------------------------
Class B Shares
- ------------------------------------------------------
NET ASSETS $116,912,713
SHARES OUTSTANDING 14,002,056
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE (NOTE 7)
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 8.35
- ------------------------------------------------------
Class C Shares
- ------------------------------------------------------
NET ASSETS $ 30,833,350
SHARES OUTSTANDING 3,690,201
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE (NOTE 7)
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 8.36
- ------------------------------------------------------
On sales of $25,000 or more, the offering price of
Class A shares is reduced.
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1999
<S> <C>
Investment Income
- ------------------------------------------------------
Interest allocated from Portfolio $ 31,663,415
Security lending income allocated from
Portfolio 1,958,871
Expenses allocated from Portfolio (3,292,886)
- ------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 30,329,400
- ------------------------------------------------------
Expenses
- ------------------------------------------------------
Trustees' fees and expenses $ 4,181
Distribution and service fees
Class A 572,209
Class B 1,264,084
Class C 331,341
Transfer and dividend disbursing agent
fees 368,614
Printing and postage 52,623
Registration fees 48,532
Custodian fee 30,544
Legal and accounting services 29,119
Miscellaneous 40,207
- ------------------------------------------------------
TOTAL EXPENSES $ 2,741,454
- ------------------------------------------------------
NET INVESTMENT INCOME $ 27,587,946
- ------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- ------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $(11,686,488)
Financial futures contracts 495,365
- ------------------------------------------------------
NET REALIZED LOSS $(11,191,123)
- ------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(15,808,377)
Financial futures contracts 241,597
- ------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(15,566,780)
- ------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(26,757,903)
- ------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 830,043
- ------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INCREASE (DECREASE) YEAR ENDED YEAR ENDED
IN NET ASSETS DECEMBER 31, 1999 DECEMBER 31, 1998
<S> <C> <C>
- ------------------------------------------------------------------------------
From operations --
Net investment income $ 27,587,946 $ 31,051,596
Net realized gain (loss) (11,191,123) 4,112,519
Net change in unrealized appreciation
(depreciation) (15,566,780) (12,945,586)
- ------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 830,043 $ 22,218,529
- ------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (16,879,457) $ (20,440,557)
Class B (8,336,774) (8,144,144)
Class C (2,183,160) (2,378,819)
Tax return of capital
Class A (296,539) (194,792)
Class B (191,103) (89,948)
Class C (50,103) (23,787)
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (27,937,136) $ (31,272,047)
- ------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 54,672,404 $ 95,924,125
Class B 29,129,217 68,635,046
Class C 11,327,693 17,843,615
Issued in reorganization of EV
Marathon and EV
Classic Government
Obligations Fund
Class B -- 121,843,468
Class C -- 36,536,485
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 7,817,802 8,923,556
Class B 3,536,778 3,356,428
Class C 1,371,336 1,401,542
Cost of shares redeemed
Class A (103,010,118) (124,199,142)
Class B (38,992,175) (59,242,911)
Class C (14,297,440) (20,290,499)
- ------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS $ (48,444,503) $ 150,731,713
- ------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (75,551,596) $ 141,678,195
- ------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------
At beginning of year $ 418,459,422 $ 276,781,227
- ------------------------------------------------------------------------------
AT END OF YEAR $ 342,907,826 $ 418,459,422
- ------------------------------------------------------------------------------
Accumulated distributions
in excess of net
investment income
- ------------------------------------------------------------------------------
AT END OF YEAR $ (1,055,090) $ (1,243,645)
- ------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 10.400 $ 10.620 $ 10.680 $ 11.020 $ 10.420
- -----------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------
Net investment income $ 0.745(1) $ 0.783(1) $ 0.799 $ 0.810 $ 0.807
Net realized and unrealized
gain (loss) (0.689) (0.215) (0.051) (0.340) 0.603
- -----------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.056 $ 0.568 $ 0.748 $ 0.470 $ 1.410
- -----------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------
From net investment income $ (0.743) $ (0.781) $ (0.801) $ (0.810) $ (0.810)
From tax return of capital (0.013) (0.007) (0.007) -- --
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.756) $ (0.788) $ (0.808) $ (0.810) $ (0.810)
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.700 $ 10.400 $ 10.620 $ 10.680 $ 11.020
- -----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 0.56% 5.56% 7.26% 4.52% 13.97%
- -----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $195,162 $251,727 $276,781 $302,963 $359,738
Ratios (As a percentage of
average daily net assets):
Operating expenses(3) 1.23% 1.25% 1.24% 1.16% 1.16%
Interest expense 0.02% 0.07% -- -- --
Net investment income 7.43% 7.46% 7.57% 7.59% 7.53%
Portfolio Turnover of the
Portfolio 18% 48% 20% 11% 19%
- -----------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(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 the Portfolio's allocated expenses.
Certain prior year ratios have been restated to conform to the current
year presentation.
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS B
------------------------
YEAR ENDED DECEMBER 31,
------------------------
1999 1998
<S> <C> <C>
- --------------------------------------------------------
Net asset value -- Beginning
of year $ 8.950 $ 9.140
- --------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------
Net investment income $ 0.576(1) $ 0.602(1)
Net realized and unrealized
loss (0.594) (0.182)
- --------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ (0.018) $ 0.420
- --------------------------------------------------------
Less distributions
- --------------------------------------------------------
From net investment income $ (0.569) $ (0.603)
From tax return of capital (0.013) (0.007)
- --------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.582) $ (0.610)
- --------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 8.350 $ 8.950
- --------------------------------------------------------
TOTAL RETURN(2) (0.20)% 4.76%
- --------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------
Net assets, end of year (000's
omitted) $116,913 $132,013
Ratios (As a percentage of
average daily net assets):
Operating expenses(3) 1.98% 2.00%
Interest expense 0.02% 0.07%
Net investment income 6.68% 6.66%
Portfolio Turnover of the
Portfolio 18% 48%
- --------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(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 the Portfolio's allocated expenses.
Certain prior year ratios have been restated to conform to the current
year presentation.
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS C
------------------------
YEAR ENDED DECEMBER 31,
------------------------
1999 1998
<S> <C> <C>
- --------------------------------------------------------
Net asset value -- Beginning
of year $ 8.960 $ 9.130
- --------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------
Net investment income $ 0.576(1) $ 0.607(1)
Net realized and unrealized
loss (0.594) (0.172)
- --------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.018) $ 0.435
- --------------------------------------------------------
Less distributions
- --------------------------------------------------------
From net investment income $(0.569) $(0.599)
From tax return of capital (0.013) (0.006)
- --------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.582) $(0.605)
- --------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 8.360 $ 8.960
- --------------------------------------------------------
TOTAL RETURN (0.20)% 4.92%
- --------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------
Net assets, end of year (000's
omitted) $30,833 $34,719
Ratios (As a percentage of
average daily net assets):
Operating expenses(3) 1.98% 2.00%
Interest expenses 0.02% 0.07%
Net investment income 6.67% 6.71%
Portfolio Turnover of the
Portfolio 18% 48%
- --------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(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 ofeach
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 the Portfolio's allocated expenses.
Certain prior year ratios have been restated to conform to the current
year presentation.
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance Government Obligations Fund (the Fund) is a diversified entity of
the type commonly known as a Massachusetts business trust and is registered
under the Investment Company Act of 1940, as amended, as an open-end
management investment company. The Fund is a series of Eaton Vance Mutual
Funds Trust. The Fund offers three classes of shares. Class A shares are
generally sold subject to a sales charge imposed at the time of purchase.
Class B and Class C shares are sold at net asset value and are subject to a
contingent deferred sale charge (see Note 7). Each class represents a pro
rata interest in the Fund, but votes separately on class-specific matters and
(as noted below) is subject to different expenses. Realized and unrealized
gains and losses are allocated daily to each class of shares based on the
relative net assets of each class to the total net assets of the Fund. Net
investment income, other than class specific expenses, is allocated daily to
each class based upon the ratio of the value of each class paid shares to the
total value of all paid shares. Each class of shares differs in its
distribution plan and certain other class specific expenses. The Fund invests
all of its investable assets in interests in the Government Obligations
Portfolio (the Portfolio), a New York Trust, having the same investment
objective as the Fund. The value of the Fund's investment in the Portfolio
reflects the Fund's proportionate interest in the net assets of the Portfolio
(99.9% at December 31, 1999). The performance of the Fund is directly
affected by the performance of the Portfolio. The financial statements of the
Portfolio, including the portfolio of investments, are included elsewhere in
this report and should be read in conjunction with the Fund's financial
statements.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its 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 Fund's net investment income consists of the Fund's pro rata
share of the net investment income of the Portfolio, less all actual and
accrued expenses of the Fund.
C Federal Taxes -- The 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, 1999, the Fund, for
federal income tax purposes, had a capital loss carryover of $61,586,366
which will reduce the Fund's taxable income arising from future net realized
gain on investment transactions, if any, to the extent permitted by the
Internal Revenue Code and thus will reduce the amount of distributions to
shareholders which would otherwise be necessary to relieve the Fund of any
liability for federal income tax. A portion of the capital loss carryovers
were acquired through the Fund Reorganization (see Note 8) and may be subject
to certain limitations. The capital loss carryovers will expire on December
31, 2000 ($5,952,987), December 31, 2001 ($70,869), December 31, 2002
($17,954,518), December 31, 2003 ($2,688,390), December 31, 2004
($10,207,058), December 31, 2005 ($4,786,337), December 31, 2006 ($3,525,680)
and December 31, 2007 ($16,400,527). At December 31, 1999, net capital losses
of $2,090,740 attributable to security transactions incurred after October
31, 1999, are treated as arising on the first day of the Funds taxable year.
D Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
2 Distributions to Shareholders
- -------------------------------------------
The net income of the 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 of
allocated realized capital gains, if any, are made at least annually.
Shareholders may reinvest capital gain distributions in additional shares of
the Fund at the net asset value as of the ex-dividend date. Distributions are
paid in the form of additional shares or, at the election of the shareholder,
in cash. The Fund distinguishes 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 over-distributions for financial
statement purposes only are classified as distributions in excess of net
investment income or accumulated net realized gain on investments. Permanent
differences between book and tax accounting relating to distributions are
reclassified to paid-in capital. For the year ended December 31, 1999,
permanent differences also arose from expired capital loss carryovers.
11
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
3 Shares of Beneficial Interest
- -------------------------------------------
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such as
the Fund) and classes. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------
CLASS A 1999 1998
<S> <C> <C>
----------------------------------------------------------------------
Sales 5,429,779 9,108,147
Issued to shareholders electing to
receive payments of distributions in
Fund shares 779,309 849,495
Redemptions (10,290,836) (11,833,295)
----------------------------------------------------------------------
NET DECREASE (4,081,748) (1,875,653)
----------------------------------------------------------------------
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------
CLASS B 1999 1998
<S> <C> <C>
----------------------------------------------------------------------
Sales 3,376,989 7,600,366
Issued to shareholders electing to
receive payments of distributions in
Fund shares 409,850 371,618
Redemptions (4,535,401) (6,557,844)
Issued to EV Marathon Government
Obligations Fund shareholders -- 13,336,478
----------------------------------------------------------------------
NET INCREASE (DECREASE) (748,562) 14,750,618
----------------------------------------------------------------------
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------
CLASS C 1999 1998
<S> <C> <C>
----------------------------------------------------------------------
Sales 1,324,515 1,967,561
Issued to shareholders electing to
receive payments of distributions in
Fund shares 158,824 155,019
Redemptions (1,669,751) (2,246,435)
Issued to EV Classic Government
Obligations Fund shareholders -- 4,000,468
----------------------------------------------------------------------
NET INCREASE (DECREASE) (186,412) 3,876,613
----------------------------------------------------------------------
</TABLE>
4 Investment Transactions
- -------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio for the
year ended December 31, 1999, aggregated $96,382,421 and $175,764,765,
respectively.
5 Transactions with Affiliates
- -------------------------------------------
Eaton Vance Management (EVM) serves as the administrator of the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 3 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report. Certain officers and Trustees of the Fund
and Portfolio are officers of the above organizations. Except as to Trustees
of the Fund and the Portfolio who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Fund out of the investment adviser fee earned by BMR. The Fund was
informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and
the Funds principal underwriter, received $18,738 as its portion of the sales
charge on sales of Class A for the year ended December 31, 1999.
6 Distribution and Service Plans
- -------------------------------------------
The Fund has in effect distribution plans for Class B (Class B Plan) and
Class C shares (Class C Plan) pursuant to Rule 12b-1 under the Investment
Company Act of 1940 and a service plan for Class A shares (Class A Plan)
(collectively, the Plans). The Class B and C Plans require the Fund to pay
EVD amounts equal to 1/365 of 0.75% of the Fund's average daily net assets
attributable to Class B and Class C shares 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, which are equivalent to the sum of (i) 5% and 6.25% of
the aggregate amount received by the Fund for the Class B and Class C shares
sold, respectively, 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 of each respective class reduced by the aggregate
amount of contingent deferred sales charges (see Note 7) and daily amounts
theretofore paid to EVD by each respective class. The Fund paid or accrued
$947,366 and $248,506 for Class B and Class C shares, respectively, for the
year ended December 31, 1999, to or payable to EVD representing 0.75% of
average daily net assets for Class B and Class C shares. At December 31,
1999, the amount of Uncovered Distribution Charges of EVD calculated under
the Plan was approximately $4,464,000 and $10,851,000 for Class B and
Class C shares, respectively.
The Plans authorize the Fund to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.25% of the
Fund's average daily net assets attributable to Class A, Class B, and Class C
shares for each fiscal year. The Trustees initially implemented the Plans by
authorizing the Fund to make quarterly service fee payments to EVD and
investment dealers equal to 0.25% per annum of the Fund's average daily net
assets attributable to Class A and Class B shares based on the value of Fund
shares sold by such persons and remaining outstanding for at least one year.
On October 4, 1999, the Trustees approved service fee
12
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
payments equal to 0.25% per annum of the Funds average daily net assets
attributable to Class A and Class B shares for any fiscal year on shares of
the Fund sold on or after October 12, 1999. The Class C Plan permits the Fund
to make monthly payments of service fees in amounts not expected to exceed
0.25% of the Fund's average daily net assets attributable to Class C shares
for any fiscal year. Such payments are made for personal services and/or the
maintenance of shareholder accounts. Service fees are separate and distinct
from the sales commissions and distributions 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. Service fee payments for
the year ended December 31, 1999 amounted to $572,209, $316,718 and $82,835
for Class A, Class B and Class C shares, respectively.
7 Contingent Deferred Sales Charge
- -------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on any
redemption of Class B shares made within six years of purchase and on
redemptions of Class C shares made within one year of purchase. Generally,
the CDSC is based upon the lower of the net asset value at date of redemption
or date of purchase. No charge is levied on shares acquired by reinvestment
of dividends or capital gain distributions. The Class B CDSC is imposed at
declining rates that begin at 5% in the first and second year of redemption
after purchase, declining one percentage point in each subsequent year. Class
C shares will be subject to a 1% CDSC if redeemed within one year of
purchase. 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 limited conditions. CDSC charges are paid to EVD to
reduce the amount of Uncovered Distribution Charges calculated under the
Fund's Distribution Plans (see Note 6). CDSC charges received when no
Uncovered Distribution Charges exist will be credited to the Fund. EVD
received approximately $488,000 and $10,000 of CDSC paid by shareholders for
Class B shares and Class C shares, respectively for the year ended December
31, 1999.
8 Transfer of Net Assets
- -------------------------------------------
On January 1, 1998, the Fund, formerly known as the EV Traditional Government
Obligations Fund, acquired the net assets of the EV Marathon Government
Obligations Fund and EV Classic Government Obligations Fund pursuant to an
Agreement and Plan of Reorganization dated June 23, 1997. In accordance with
the agreement, the Fund, at the closing, issued 13,336,478 Class B shares and
4,000,468 Class C shares of the Fund having an aggregate value of
$121,843,468 and $36,536,485, respectively. As a result, the Fund issued one
Class B share and one Class C share for each share of EV Marathon Government
Obligations Fund and EV Classic Government Obligations Fund, respectively.
The transaction was structured for tax purposes to qualify as a tax free
reorganization under the Internal Revenue Code. The EV Marathon Government
Obligations Fund's and EV Classic Government Obligations Fund's net assets at
the date of the transaction were $121,843,468 and $36,536,485, respectively,
including $2,093,697 and $(697,901) of unrealized appreciation
(depreciation). Directly after the merger, the combined net assets of the
Fund were $435,161,180 with a net asset value of $10.62, $9.14 and $9.13 for
Class A, Class B and Class C, respectively.
13
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
INDEPENDENT ACCOUNTANTS' REPORT
TO THE TRUSTEES AND SHAREHOLDERS OF EATON VANCE GOVERNMENT OBLIGATIONS FUND
- ---------------------------------------------
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets and financial
highlights present fairly, in all material respects, the financial position of
Eaton Vance Government Obligations Fund (the "Fund") at December 31, 1999, and
the results of its operations, the changes in its net assets and the financial
highlights for the periods indicated, in conformity with accounting principles
generally accepted in the United States. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 9, 2000
14
<PAGE>
GOVERNMENT OBLIGATIONS PORTFOLIO AS OF DECEMBER 31, 1999
PORTFOLIO OF INVESTMENTS
U.S. GOVERNMENT AGENCY DEBENTURES -- 21.3%
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
- -----------------------------------------------------------------------
Federal Home Loan Mortgage Corp.,
6.45%, 4/29/09 $ 2,000 $ 1,866,560
Federal Home Loan Mortgage Corp.,
6.625%, 9/15/09(1) 69,000 67,037,640
Federal National Mortgage Assn.,
6.25%, 5/15/29 5,000 4,450,000
- -----------------------------------------------------------------------
Total U.S. Government Agency Debentures
(identified cost, $75,002,800) $ 73,354,200
- -----------------------------------------------------------------------
</TABLE>
MORTGAGE PASS-THROUGHS -- 90.5%
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
- -----------------------------------------------------------------------
Federal Home Loan Mortgage Corp.:
5.00%, with various maturities to
2003 $ 114 $ 111,221
5.25%, with various maturities to
2005 55 53,700
5.50%, with various maturities to
2011 244 237,712
6.00%, with various maturities to
2022 940 922,401
6.25%, with various maturities to
2013 234 230,181
6.50%, with various maturities to
2022 9,467 9,331,794
6.75%, with various maturities to
2008 225 223,230
7.00%, with various maturities to
2019 4,913 4,894,838
7.25%, with maturity at 2003 438 438,792
7.50%, with various maturities to
2020 8,058 8,093,419
7.75%, with various maturities to
2018 1,661 1,669,046
8.00%, with various maturities to
2026 34,237 34,701,574
8.25%, with various maturities to
2017 12,644 12,883,193
8.50%, with various maturities to
2018 15,299 15,692,166
8.75%, with various maturities to
2016 9,331 9,573,512
9.00%, with various maturities to
2020 13,795 14,226,503
9.25%, with various maturities to
2010 4,344 4,514,066
9.50%, with various maturities to
2016 5,346 5,588,426
9.75%, with maturity at 2011 629 654,710
10.00%, with various maturities to
2017 99 104,054
11.00%, with various maturities to
2019 2,787 3,007,431
11.50%, with maturity at 2015 396 434,540
12.00%, with various maturities to
2019 1,159 1,281,206
12.25%, with various maturities to
2019 1,221 1,359,001
12.50%, with various maturities to
2019 8,916 10,006,754
12.75%, with various maturities to
2015 430 481,106
13.00%, with various maturities to
2019 2,636 2,986,754
13.25%, with various maturities to
2019 197 224,759
13.50%, with various maturities to
2015 2,282 2,578,080
14.00%, with various maturities to
2016 1,100 1,266,059
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
- -----------------------------------------------------------------------
14.50%, with various maturities to
2014 $ 126 $ 145,302
14.75%, with maturity at 2010 395 453,738
15.00%, with various maturities to
2013 487 572,941
15.25%, with maturity at 2012 88 104,990
15.50%, with various maturities to
2012 80 94,299
16.00%, with maturity at 2012 53 63,112
16.25%, with various maturities to
2012 101 120,781
- -----------------------------------------------------------------------
$149,325,391
- -----------------------------------------------------------------------
Federal National Mortgage Assn.:
0.25%, with maturity at 2014 $ 57 $ 47,116
3.50%, with maturity at 2007 50 47,530
5.00%, with various maturities to
2017 188 179,726
5.25%, with maturity at 2006 93 89,019
5.50%, with various maturities to
2006 89 86,698
5.75%, with maturity at 2003 25 25,142
6.00%, with various maturities to
2010 654 635,712
6.25%, with various maturities to
2007 175 173,025
6.50%, with various maturities to
2017 444 436,646
6.75%, with various maturities to
2007 223 221,737
7.00%, with various maturities to
2018 1,471 1,463,420
7.25%, with various maturities to
2017 906 906,333
7.50%, with various maturities to
2020 5,799 5,836,478
7.75%, with various maturities to
2008 617 622,682
8.00%, with various maturities to
2022 26,881 27,285,739
8.25%, with various maturities to
2025 11,658 11,901,133
8.50%, with various maturities to
2026 14,112 14,459,273
8.75%, with various maturities to
2017 678 697,282
9.00%, with various maturities to
2022 17,974 18,664,902
9.25%, with various maturities to
2016 2,135 2,226,565
9.50%, with various maturities to
2016 4,240 4,465,688
9.75%, with maturity at 2019 217 229,932
10.00%, with maturity at 2020 2,152 2,278,090
11.00%, with various maturities to
2020 2,005 2,181,514
11.50%, with various maturities to
2016 2,711 2,981,860
11.75%, with various maturities to
2015 870 959,438
12.00%, with various maturities to
2020 7,421 8,242,265
12.25%, with various maturities to
2015 1,578 1,764,958
12.50%, with various maturities to
2021 6,262 7,016,501
12.75%, with various maturities to
2014 782 876,296
13.00%, with various maturities to
2027 6,959 7,856,138
13.25%, with various maturities to
2015 1,145 1,302,572
13.50%, with various maturities to
2015 3,763 4,318,401
13.75%, with various maturities to
2014 101 115,348
14.00%, with various maturities to
2014 257 297,820
14.25%, with maturity at 2014 99 116,054
14.50%, with various maturities to
2014 154 180,199
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
GOVERNMENT OBLIGATIONS PORTFOLIO AS OF DECEMBER 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
- -----------------------------------------------------------------------
14.75%, with maturity at 2012 $ 2,188 $ 2,559,147
15.00%, with various maturities to
2013 2,409 2,860,295
15.50%, with maturity at 2012 434 516,589
15.75%, with maturity at 2011 15 17,624
16.00%, with maturity at 2012 150 180,132
- -----------------------------------------------------------------------
$137,323,019
- -----------------------------------------------------------------------
Government National Mortgage Assn.:
7.25%, with various maturities to
2022 $ 2,246 $ 2,252,838
7.50%, with maturity at 2017 517 524,038
8.00%, with various maturities to
2017 6,708 6,835,423
8.25%, with maturity at 2008 258 264,460
8.50%, with various maturities to
2018 1,264 1,301,509
9.00%, with maturity at 2011 256 267,780
11.50%, with maturity at 2013 123 135,409
12.00%, with various maturities to
2015 1,797 2,002,696
12.50%, with various maturities to
2019 8,537 9,607,288
13.00%, with various maturities to
2014 667 756,951
13.50%, with various maturities to
2012 142 161,686
14.00%, with maturity at 2015 34 39,234
14.50%, with various maturities to
2014 133 156,480
15.00%, with various maturities to
2013 397 469,562
16.00%, with various maturities to
2012 184 221,674
- -----------------------------------------------------------------------
$ 24,997,028
- -----------------------------------------------------------------------
Collateralized Mortgage Obligations:
Federal Home Loan Mortgage Corp.
Series B Class 3 100% FHLMC PC
Collateral, 12.50%, due 2013 $ 75 $ 80,678
Salomon Brothers Mortgage Securities
II, Inc., Series 1984-3, Class Z,
11.50%, due 2015 650 661,659
- -----------------------------------------------------------------------
$ 742,337
- -----------------------------------------------------------------------
Total Mortgage Pass-Throughs
(identified cost $318,962,393) $312,387,775
- -----------------------------------------------------------------------
</TABLE>
U.S. TREASURY OBLIGATIONS -- 1.8%
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
- -----------------------------------------------------------------------
U.S. Treasury Bond, 7.125%, 2/15/23(2) $ 6,000 $ 6,246,540
- -----------------------------------------------------------------------
Total U.S. Treasury Obligations
(identified cost, $6,328,125) $ 6,246,540
- -----------------------------------------------------------------------
Total Investments -- 113.6%
(identified cost $400,293,318) $391,988,515
- -----------------------------------------------------------------------
Other Assets, Less Liabilities -- (13.6)% $(46,788,567)
- -----------------------------------------------------------------------
Net Assets -- 100.0% $345,199,948
- -----------------------------------------------------------------------
</TABLE>
(1) A portion of this security is on loan at December 31, 1999.
(2) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
GOVERNMENT OBLIGATIONS PORTFOLIO AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF DECEMBER 31, 1999
<S> <C>
Assets
- ------------------------------------------------------
Investments, at value
(identified cost, $400,293,318) $391,988,515
Receivable for investments sold 1,208,688
Interest receivable 4,317,394
Receivable for daily variation margin on
open financial futures contracts 103,117
- ------------------------------------------------------
TOTAL ASSETS $397,617,714
- ------------------------------------------------------
Liabilities
- ------------------------------------------------------
Collateral for securities loaned $ 51,499,801
Demand note payable 800,000
Payable to affiliate for Trustees' fees 7,105
Due to bank 27,173
Accrued expenses 83,687
- ------------------------------------------------------
TOTAL LIABILITIES $ 52,417,766
- ------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $345,199,948
- ------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $353,212,742
Net unrealized depreciation (computed on
the basis of identified cost) (8,012,794)
- ------------------------------------------------------
TOTAL $345,199,948
- ------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1999
<S> <C>
Investment Income
- ------------------------------------------------------
Interest $ 31,663,415
Security lending income 1,958,871
- ------------------------------------------------------
TOTAL INVESTMENT INCOME $ 33,622,286
- ------------------------------------------------------
Expenses
- ------------------------------------------------------
Investment adviser fee $ 2,923,359
Trustees' fees and expenses 22,087
Custodian fee 206,414
Legal and accounting services 43,321
Interest expense 78,858
Miscellaneous 18,847
- ------------------------------------------------------
TOTAL EXPENSES $ 3,292,886
- ------------------------------------------------------
NET INVESTMENT INCOME $ 30,329,400
- ------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $(11,686,488)
Financial futures contracts 495,365
- ------------------------------------------------------
NET REALIZED LOSS $(11,191,123)
- ------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(15,808,377)
Financial futures contracts 241,597
- ------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(15,566,780)
- ------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(26,757,903)
- ------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 3,571,497
- ------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
GOVERNMENT OBLIGATIONS PORTFOLIO AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INCREASE (DECREASE) YEAR ENDED YEAR ENDED
IN NET ASSETS DECEMBER 31, 1999 DECEMBER 31, 1998
<S> <C> <C>
- ------------------------------------------------------------------------------
From operations --
Net investment income $ 30,329,400 $ 34,090,075
Net realized gain (loss) (11,191,123) 4,112,519
Net change in unrealized appreciation
(depreciation) (15,566,780) (12,945,586)
- ------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 3,571,497 $ 25,257,008
- ------------------------------------------------------------------------------
Capital transactions --
Contributions $ 96,382,421 $ 187,817,118
Withdrawals (175,764,765) (225,170,325)
- ------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $ (79,382,344) $ (37,353,207)
- ------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (75,810,847) $ (12,096,199)
- ------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------
At beginning of year $ 421,010,795 $ 433,106,994
- ------------------------------------------------------------------------------
AT END OF YEAR $ 345,199,948 $ 421,010,795
- ------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
YEAR ENDED
INCREASE (DECREASE) IN CASH DECEMBER 31, 1999
<S> <C>
- -----------------------------------------------------------
Cash Flows From (Used For) Operating
Activities --
Purchase of investments $ (108,535,923)
Proceeds from sales of investments
and principal repayments 191,983,780
Interest received, including net
securities lending income 33,438,073
Interest paid (90,207)
Operating expenses paid (3,203,022)
Financial futures contracts
transactions 389,113
Increase in unrealized gain/loss from
futures transactions 241,597
Net repayments for securities lending (26,869,349)
- -----------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES $ 87,354,062
- -----------------------------------------------------------
Cash Flows From (Used For) Financing
Activities --
Proceeds from capital contributions $ 96,382,421
Payments for capital withdrawals (175,764,765)
Demand note payable (7,999,000)
- -----------------------------------------------------------
NET CASH USED FOR FINANCING ACTIVITIES $ (87,381,344)
- -----------------------------------------------------------
NET DECREASE IN CASH $ (27,282)
- -----------------------------------------------------------
CASH AT BEGINNING OF YEAR $ 109
- -----------------------------------------------------------
CASH AT END OF YEAR $ (27,173)
- -----------------------------------------------------------
Reconciliation of Net Increase in Net Assets
From Operations to Net Cash From
Operating Activities
- -----------------------------------------------------------
Net increase in net assets from
operations $ 3,571,497
Decrease in receivable for investments
sold 573,883
Increase in interest receivable (3,512)
Increase in variation margin (106,252)
Decrease in payable to affiliate (6,795)
Increase in accrued expenses 6,452
Decrease in collateral for securities
loaned (26,869,349)
Net decrease in investments 110,188,138
- -----------------------------------------------------------
NET CASH FROM OPERATING ACTIVITIES $ 87,354,062
- -----------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
GOVERNMENT OBLIGATIONS PORTFOLIO AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ----------------------------------------------------------------------------------------------------
Operating expenses 0.83% 0.82% 0.83% 0.82% 0.82%
Interest expense 0.02% 0.07% -- -- --
Net investment income 7.79% 7.85% 7.95% 7.88% 7.82%
Portfolio Turnover 18% 48% 20% 11% 19%
- ----------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $345,200 $421,011 $433,107 $455,523 $521,789
- ----------------------------------------------------------------------------------------------------
</TABLE>
Certain prior year ratios have been restated to conform to current year
presentation.
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
GOVERNMENT OBLIGATIONS PORTFOLIO AS OF DECEMBER 31, 1999
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
- -------------------------------------------
Government Obligations Portfolio (the Portfolio) is registered under the
Investment Company Act of 1940 as a diversified open-end investment company
which was organized as a trust under the laws of the State of New York in
1992. The Declaration of Trust permits the Trustees to issue beneficial
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 Investment Valuation -- Mortgage backed, pass-through securities are valued
using an independent matrix pricing system applied by the adviser which takes
into account closing bond valuations, yield differentials, anticipated
prepayments and interest rates provided by dealers. Debt securities (other
than mortgage backed, pass-through securities) are normally valued at the
mean between the latest available bid and asked prices for securities for
which the over-the-counter market is the primary market. Debt securities may
also be valued on the basis of valuations furnished by a pricing service.
Options are valued at last sale price on a U.S. exchange or board of trade
or, in the absence of a sale, at the mean between the last bid and asked
price. Financial futures contracts listed on commodity exchanges are valued
at closing settlement prices. Securities for which there is no such quotation
or valuation are valued at fair value using methods determined in good faith
by or at the direction of the Trustees. Short-term obligations having
remaining maturities of less than 60 days are valued at amortized cost, which
approximates value.
B Income -- Interest income is determined on the basis of interest accrued and
discount earned, adjusted for amortization of premium or accretion of
discount when required for federal income tax purposes.
C Gains and Losses From Security Transactions -- For book purposes, gains or
losses are not recognized until disposition. For federal tax purposes, the
Portfolio has elected, under Section 1092 of the Internal Revenue Code, to
utilize mixed straddle accounting for certain designated classes of
activities involving options and financial futures contracts in determining
recognized gains or losses. Under this method, Section 1256 positions
(financial futures contracts and options on investments or financial futures
contracts) and non-Section 1256 positions (bonds, etc.) are marked-to market
on a daily basis resulting in the recognition of taxable gains or losses on a
daily basis. Such gains or losses are categorized as short-term or long-term
based on aggregation rules provided in the Code.
D Income Taxes -- The Portfolio is treated as a partnership for federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes. Since one of the
Portfolio's investors is a regulated investment company that invests all or
substantially all of its 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
investors distributive share of the Portfolio's net investment income, net
realized capital gains, and any other items of income, gain, loss, deduction
or credit. Withholding taxes on foreign dividends and capital gains have been
provided for in accordance with the Portfolios understanding of the
applicable countries tax rules and rates.
E Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Trust. Pursuant to the respective custodian agreements, IBT receives a
fee reduced by credits which are determined based on the average daily cash
balances the Trust maintains with IBT. All significant credit balances used
to reduce the Trust's custodian fees are reported as a reduction of expenses
on the Statement of Operations. For the year ended December 31, 1999, $3,461
credit balances were used to reduce the Portfolio's custodian fee.
F Written Options -- Upon the writing of a call or a put option, an amount
equal to the premium received by the Portfolio is included in the Statement
of Assets and Liabilities as a liability. The amount of the liability is
subsequently marked-to-market to reflect the current value of the option
written in accordance with the Portfolio's policies on investment valuations
discussed above. Premiums received from writing options which expire are
treated as realized gains. Premiums received from writing options which are
exercised or are closed are added to or offset against the proceeds or amount
paid on the transaction to determine the realized gain or loss. If a put
option is exercised, the premium reduces the cost basis of the securities
purchased by the Portfolio. The Portfolio, as writer of an option, may have
no control over whether the underlying securities may be sold (call) or
purchased (put) and, as a result, bears the market risk of an unfavorable
change in the price of the securities underlying the written option.
20
<PAGE>
GOVERNMENT OBLIGATIONS PORTFOLIO AS OF DECEMBER 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
G Purchased Options -- Upon the purchase of a call or put option, the premium
paid by the Portfolio is included in the Statement of Assets and Liabilities
as an investment. The amount of the investment is subsequently
marked-to-market to reflect the current market value of the option purchased,
in accordance with the Portfolio's policies on investment valuations
discussed above. If an option which the Portfolio has purchased expires on
the stipulated expiration date, the Portfolio will realize a loss in the
amount of the cost of the option. If the Portfolio enters into a closing sale
transaction, the Portfolio will realize a gain or loss, depending on whether
the sales proceeds from the closing sale transaction are greater or less than
the cost of the option. If a Portfolio exercises a put option, it will
realize a gain or loss from the sale of the underlying security, and the
proceeds from such sale will be decreased by the premium originally paid. If
the Portfolio exercises a call option, the cost of the security which the
Portfolio purchases upon exercise will be increased by the premium originally
paid. For tax purposes, the Portfolio's options are generally subject to the
mixed straddle rules described in Note 1C, and unrealized gains or losses are
recognized on a daily basis.
H Financial Futures Contracts -- Upon entering into a financial futures
contract, the Portfolio is required to deposit an amount (initial margin)
either in cash or securities equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by the Portfolio (margin maintenance) each day, dependent on
the daily fluctuations in the value of the underlying securities, and are
recorded for book purposes as unrealized gains or losses by the Portfolio.
If the Portfolio enters into a closing transaction, the Portfolio will
realize, for book purposes, a gain or loss equal to the difference between
the value of the financial futures contract to sell and the financial futures
contract to buy. The Portfolio's investment in financial futures contracts is
designed only to hedge against anticipated future changes in interest rates.
Should interest rates move unexpectedly, the Portfolio may not achieve the
anticipated benefits of the financial futures contracts and may realize a
loss. For tax purposes, such futures contracts are generally subject to the
mixed straddle rules described in Note 1C, and unrealized gains or losses are
recognized on a daily basis.
I Other -- Investment transactions are accounted for on the date the securities
are purchased or sold. Realized gains and losses are computed based on the
specific identification of securities sold.
J Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
2 Purchases and Sales of Investments
- -------------------------------------------
Purchases, sales and paydowns of investments, other than short-term
obligations, aggregated $108,535,923, $79,838,343 and $111,571,554,
respectively.
3 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 monthly rate of 0.0625% (0.75% per annum) of the
Portfolio's average daily net assets up to $500 million and at reduced rates
as daily net assets exceed that level. For the year ended December 31, 1999,
the fee was equivalent to 0.75% of the Portfolio's average net assets for
such period and amounted to $2,923,359. 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. Trustees of the Portfolio that are not affiliated
with the Investment Adviser may elect to defer receipt of all or a percentage
of their annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the year ended December 31, 1999, no significant
amounts have been deferred. Certain officers and Trustees of the Portfolio
are officers of the above organizations.
4 Line of Credit
- -------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a committed $150 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 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
21
<PAGE>
GOVERNMENT OBLIGATIONS PORTFOLIO AS OF DECEMBER 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
and funds at the end of each quarter. The average daily loan balance for the
year ended December 31, 1999 was $959,701 and the average interest rate was
8.22%. As of December 31, 1999, $800,000 was outstanding.
5 Securities Lending Agreement
- -------------------------------------------
The Portfolio has established a securities lending agreement with brokers in
which the Portfolio lends portfolio securities to a broker in exchange for
collateral consisting of either cash or U.S. government securities in an
amount at least equal to the market value of the securities on loan. Under
the agreement, the Portfolio continues to earn interest on the securities
loaned. Collateral received is generally cash, and the Portfolio invests the
cash and receives any interest on the amount invested but it must also pay
the broker a loan rebate fee computed as a varying percentage of the
collateral received. The loan rebate fee paid by the Portfolio offsets a
portion of the interest income received and amounted to $3,335,673 for the
year ended December 31, 1999. At December 31, 1999, the value of the
securities loaned and the value of the collateral amounted to approximately
$51,000,000 and $51,500,000, respectively. In the event of counterparty
default, the Portfolio is subject to potential loss if it is delayed or
prevented from exercising its right to dispose of the collateral. The
Portfolio bears risk in the event that invested collateral is not sufficient
to meet obligations due on the loans.
6 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned at December 31, 1999 as computed on a federal income tax
basis, were as follows:
<TABLE>
<S> <C>
AGGREGATE COST $399,985,745
------------------------------------------------------
Gross unrealized appreciation $ 1,189,191
Gross unrealized depreciation (9,186,421)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (7,997,230)
------------------------------------------------------
</TABLE>
7 Financial Instruments
- -------------------------------------------
The Portfolio regularly trades in financial instruments with off-balance
sheet risk in the normal course of its investing activities to assist in
managing exposure to various market risks. These financial instruments
include written options and financial futures contracts, and may involve, to
a varying degree, elements of risk in excess of the amounts recognized for
financial statement purposes. The notional or contractual amounts of these
instruments represent the investment the Fund has in particular classes of
financial instruments and does not necessarily represent the amounts
potentially subject to risk. The measurement of the risks associated with
these instruments is meaningful only when all related and offsetting
transactions are considered. A summary of obligations under these financial
instruments at December 31, 1999 is as follows:
<TABLE>
<CAPTION>
FUTURES CONTRACTS
-------------------------------------------------------------------------------
EXPIRATION NET UNREALIZED
DATE(S) CONTRACTS POSITION APPRECIATION
<C> <S> <C> <C>
-------------------------------------------------------------------------------
3/00 330 US Treasury Five Year Note Futures Short $ 292,009
</TABLE>
At December 31, 1999, the Portfolio had sufficient cash and/or securities to
cover margin requirements on any open futures contracts.
22
<PAGE>
GOVERNMENT OBLIGATIONS PORTFOLIO AS OF DECEMBER 31, 1999
INDEPENDENT ACCOUNTANTS' REPORT
TO THE TRUSTEES AND INVESTORS
OF GOVERNMENT OBLIGATIONS PORTFOLIO
- ---------------------------------------------
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations, of
changes in net assets and of cash flows and supplementary data present fairly,
in all material respects, the financial position of Government Obligations
Portfolio (the "Portfolio") at December 31, 1999, and the results of its
operations, the changes in its net assets, its cash flows and the supplementary
data for the periods indicated, in conformity with accounting principles
generally accepted in the United States. These financial statements and
supplementary data (hereafter referred to as "financial statements") are the
responsibility of the Portfolio's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits which included confirmation of securities at December
31, 1999 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 9, 2000
23
<PAGE>
EATON VANCE GOVERNMENT OBLIGATIONS FUND AS OF DECEMBER 31, 1999
INVESTMENT MANAGEMENT
EATON VANCE GOVERNMENT OBLIGATIONS FUND
Officers
James B. Hawkes
President and Trustee
William H. Ahern, Jr.
Vice President and
Portfolio Manager
Thomas J. Fetter
Vice President
Armin J. Lang
Vice President
Michael R. Mach
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
GOVERNMENT OBLIGATIONS PORTFOLIO
Officers
James B. Hawkes
President and Trustee
Susan Schiff
Vice President and
Portfolio Manager
Mark S. Venezia
Vice President
James L. OConnor
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
24
<PAGE>
INVESTMENT ADVISER OF
GOVERNMENT OBLIGATIONS PORTFOLIO
Boston Management and Research
The Eaton Vance Building
255 State Street
Boston, MA 02109
ADMINISTRATOR OF EATON VANCE
GOVERNMENT OBLIGATIONS FUND
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
PFPC Global Fund Services
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
160 Federal Street
Boston, MA 02110
EATON VANCE GOVERNMENT OBLIGATIONS FUND
The Eaton Vance Building
255 State Street
Boston, MA 02109
- -------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
140-12/99 GOSRC
