<PAGE>
INVESTING
[EATON VANCE LOGO] FOR THE
21ST
CENTURY-REGISTERED TRADEMARK- [EDUCATION]
A n n u a l R e p o r t D e c e m b e r 3 1 , 1 9 9 9
[HIGHWAY AT NIGHT] EATON VANCE
TAX FREE
RESERVES
Global Management-Global Distribution>
[BRIDGE]
<PAGE>
EATON VANCE TAX FREE RESERVES as of December 31, 1999
- -------------------------------------------------------------------------------
I N V E S T M E N T U P D A T E
- -------------------------------------------------------------------------------
[PHOTO] Investment Environment
-------------------------------------------------
The Economy
William H. Ahern
Portfolio Manager - The U.S. economy continued to expand strongly in the
past year, with gross domestic product rising at a 5.8%
pace in the fourth quarter. With unemployment at a
30-year low, consumer confidence remained high,
providing a boost to retail activity.
- - Despite a robust economy and ebullient consumer attitudes, inflation increased
in 1999 from only 1.6% to 2.7%, still a low rate. Continuing global
competition, increased productivity and the enhanced use of technology have
generally helped keep inflation pressures in check.
The Market
- - In an effort to prevent a recurrence of inflation, the Federal Reserve Board
raised the Federal Funds interest rate three times in 1999. It ended the year
at 5.50%. The Federal Funds rate is the rate for interbank overnight loans and
serves as a key interest rate barometer.
- - With short-term interest rates rising, bonds had a
difficult year. The benchmark 30-year Treasury bond's total return was down
14.40% in 1999, one of its worst years ever. Generally, shorter-duration
portfolios outperformed longer ones.
- - The outlook for bonds in the year ahead is somewhat more optimistic. While the
Fed is expected to raise rates again in early February, and perhaps more by
mid-year, with no real signs of inflation on the horizon, the bond market is
expected to respond favorably. In addition, the Treasury is expected to issue
fewer bonds in 2000, which should place further downward pressure on yields.
The Fund
- -------------------------------------------------------------------------------
The Past Year
- - During the year ended December 31, 1999, shareholders of Eaton Vance Tax Free
Reserves received $0.029 in income dividends, free from regular federal income
tax.(1)
About Eaton Vance Tax Free Reserves
- - Eaton Vance Tax Free Reserves invests only in dollar-denominated, high-quality
securities with low credit risk.(2)
- - The Fund seeks to invest in short-term obligations that have been rated in one
of the two highest short-term ratings categories.
- - Taxes are always a concern for investors who wish to maximize their after-tax
returns. A money market mutual fund investing in high-quality investments,
exempt from regular federal tax, can be a sensible way to earn income, while
preserving capital and maintaining liquidity.
- -------------------------------------------------------------------------------
(1) A portion of the Fund's income could be subject to federal alternative
minimum tax. Income may be subject to state tax.
(2) An investment in the Fund is neither insured nor guaranteed by the U.S.
Government, and there can be no assurance that the Fund will be able to
maintain a stable net asset value of $1.00 per share. The Fund has no sales
charge.
- -------------------------------------------------------------------------------
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 TAX FREE RESERVES AS OF DECEMBER 31, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 97.1%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Commercial Paper -- 6.2%
- ----------------------------------------------------------------------------
$1,000 Lincoln County, WY, Municipal Parking
(LOC: Union Bank of Switzerland),
3.85%, 1/19/00 $ 1,000,000
1,500 Rochester, MN, Health Care Facilities,
(Mayo Clinic), 3.70%, 3/6/00 1,500,000
- ----------------------------------------------------------------------------
$ 2,500,000
- ----------------------------------------------------------------------------
General Obligation Notes/Bonds -- 14.4%
- ----------------------------------------------------------------------------
$1,000 Fairfax County, VA, (Public
Improvement), 4.25%, 6/1/00 $ 1,001,406
1,000 Maryland State General Obligation,
(Charleston Community), 4.75%, 8/1/00 1,005,926
1,000 South Carolina State General Obligation,
5.50%, 4/1/00 1,004,682
1,810 Washington State General Obligation,
4.70%, 10/1/00 1,820,495
980 West Virgina State General Obligation,
3.50%, 6/1/00 979,421
- ----------------------------------------------------------------------------
$ 5,811,930
- ----------------------------------------------------------------------------
Revenue Notes/Bonds -- 7.9%
- ----------------------------------------------------------------------------
$ 270 Austin, TX, Utilities System, (FGIC),
6.00%, 5/15/00 $ 272,233
1,500 Colorado Health Facilities Authority,
(Porter Memorial Hospital),
7.40%, 2/1/00 1,504,881
1,000 Kentucky Turnpike Authority EDC,
7.25%, 5/15/00 1,027,759
400 Maricopa County, AZ, Transportation
Board of Excise Tax Authority, (AMBAC),
5.50%, 7/1/00 403,674
- ----------------------------------------------------------------------------
$ 3,208,547
- ----------------------------------------------------------------------------
Variable Rate Demand Obligations -- 68.6%
- ----------------------------------------------------------------------------
$1,100 Austin, TX, Airport, (LOC: Morgan
Guaranty Trust), 5.25%, 11/15/17 $ 1,100,000
500 Bexar County, TX, Health Facilities,
(LOC: Rabobank Nederland),
5.00%, 7/1/11 500,000
750 California PCR, (Wadham Energy), (LOC:
Banque Paribas), 5.75%, 11/1/17 750,000
500 Chicago, IL, Multifamily, (LOC: Swiss
Bank), 5.55%, 11/1/10 500,000
1,700 Clark County, NV, Airport, (LOC:
Westduetsche Landesbank), 5.15%, 7/1/25 1,700,000
1,900 Connecticut HEFA, (Yale University),
5.10%, 7/1/29 1,900,000
500 Delaware EDA, IDR, (Star Enterprise),
(LOC: Canadian Imperial Bank),
5.45%, 8/1/29 500,000
800 Delaware Valley, PA, Regional Finance
Authority, (LOC: Credit Suisse),
5.20%, 12/1/17 800,000
1,200 Delaware Valley, PA, Regional Finance
Authority, (LOC: Credit Suisse),
5.20%, 12/1/20 1,200,000
500 Florida HFA, (Monterey Meadows Apt.),
(LOC: Citibank, N.A.), 4.80%, 12/1/07 500,000
400 Fulton County, GA, IDR, (American
National Red Cross), (LOC: Wachovia Bank
of GA, N.A.), 5.50%, 8/1/05 400,000
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Variable Rate Demand Obligations (continued)
- ----------------------------------------------------------------------------
$ 900 Galveston, TX, IDR, (Mitchell
Interests), (LOC: Banc One),
5.25%, 9/1/13 $ 900,000
965 Illinois Development Finance Authority,
(Cinnamon Lake Towers), (LOC: The First
National Bank of Chicago),
5.50%, 4/15/37 965,000
1,250 Jefferson Parish, LA, Hospital Revenue
Authority, (West Jefferson Medical
Center), (LOC: Rabobank Nederland),
5.65%, 1/1/26 1,250,000
1,000 Kansas City, MO, IDA, (Willow Creek IV
Apartments), Fannie Mae, 5.35%, 9/1/25 1,000,000
600 Lee County, FL, IDA, Health Care
Facilities, (Cypress Cove HealthPark),
(LOC: Kredietbank, N.V.),
4.80%, 10/1/04 600,000
2,000 Maricopa County, AZ, PCR, (LOC: Toronto
Dominion Bank), 4.80%, 5/1/29 2,000,000
1,500 Maryland HEFA, (LOC: First Union),
5.50%, 1/1/28 1,500,000
1,000 Metropolitan Government of Nashville and
Davidson County, TN, IDR, (Dixie
Graphics, Inc.), (LOC: Suntrust Bank,
Nashville, N.A.), 5.55%, 5/1/09 1,000,000
1,200 Missouri HEFA, Cox Health Systems, (SPA:
Chase Manhattan), (MBIA), 4.70%, 6/1/15 1,200,000
750 Nebhelp, Inc., NE, (LOC: Student Loan
Marketing), 5.70%, 12/1/16 750,000
700 Panhandle-Plains, TX, HEFA, (LOC:
Student Loan Marketing), 5.25%, 10/1/02 700,000
500 Panhandle-Plains, TX, HEFA, (LOC:
Student Loan Marketing), 5.25%, 6/1/21 500,000
2,070 Putnam County, FL, PCR, (Seminole
Electric) (SBPA: National Rural
Utilities Corp.), 5.55%, 3/15/14 2,070,000
1,985 Texas Veteran's Housing Assistance State
Guaranty, 5.15%, 12/1/16 1,985,000
1,500 Washington Public Power Supply System,
(Nuclear Project Number 2), (LOC: Bank
of America), 5.20%, 7/1/17 1,500,000
- ----------------------------------------------------------------------------
$27,770,000
- ----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.1%
(identified cost $39,290,477) $39,290,477(1)
- ----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.9% $ 1,165,260
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $40,455,737
- ----------------------------------------------------------------------------
</TABLE>
At December 31, 1999, the concentration of the Fund's investments in
the various states, determined as a percentage of net assets, is as follows:
<TABLE>
<S> <C>
Texas 14.7%
Others, representing less than 10%
individually 82.4%
</TABLE>
(1) Cost for federal income taxes is the same.
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
EATON VANCE TAX FREE RESERVES 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,
$39,290,477) $39,290,477
Cash 589,121
Receivable for Fund shares sold 1,417,922
Interest receivable 241,697
- -----------------------------------------------------
TOTAL ASSETS $41,539,217
- -----------------------------------------------------
Liabilities
- -----------------------------------------------------
Payable for Fund shares redeemed $ 976,594
Dividends payable 82,108
Payable to affiliate for Trustees' fees 760
Accrued expenses 24,018
- -----------------------------------------------------
TOTAL LIABILITIES $ 1,083,480
- -----------------------------------------------------
NET ASSETS FOR 40,473,424 SHARES OF
BENEFICIAL INTEREST OUTSTANDING $40,455,737
- -----------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------
Paid-in capital $40,473,424
Accumulated net realized loss (computed
on the basis of identified cost) (17,687)
- -----------------------------------------------------
TOTAL $40,455,737
- -----------------------------------------------------
Net Asset Value, Offering Price and
Redemption Price Per Share
- -----------------------------------------------------
($40,455,737 DIVIDED BY 40,473,424
SHARES OF BENEFICIAL INTEREST
OUTSTANDING) $ 1.00
- -----------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR
ENDED DECEMBER 31, 1999
<S> <C>
Investment Income
- ----------------------------------------------------
Interest $1,542,106
- ----------------------------------------------------
TOTAL INVESTMENT INCOME $1,542,106
- ----------------------------------------------------
Expenses
- ----------------------------------------------------
Investment adviser fee $ 240,365
Trustees fees and expenses 2,000
Custodian fee 39,527
Legal and accounting services 30,221
Transfer and dividend disbursing agent
fees 14,740
Registration fees 14,141
Printing and postage 6,078
Interest 820
Miscellaneous 17,363
- ----------------------------------------------------
TOTAL EXPENSES $ 365,255
- ----------------------------------------------------
Deduct --
Reduction of investment adviser fee $ 144,202
Reduction of custodian fee 39,527
- ----------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 183,729
- ----------------------------------------------------
NET EXPENSES $ 181,526
- ----------------------------------------------------
NET INVESTMENT INCOME $1,360,580
- ----------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $1,360,580
- ----------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE TAX FREE RESERVES AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Increase (Decrease) in YEAR ENDED YEAR ENDED
NET ASSETS DECEMBER 31, 1999 DECEMBER 31, 1998
<S> <C> <C>
- ------------------------------------------------------------------------------
From operations --
Net investment income $ 1,360,580 $ 1,669,523
Net realized gain -- 321
- ------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 1,360,580 $ 1,669,844
- ------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income $ (1,360,580) $ (1,669,523)
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (1,360,580) $ (1,669,523)
- ------------------------------------------------------------------------------
Transactions in shares of beneficial
interest at Net Asset Value of $1.00
per share--
Proceeds from sale of shares $ 159,035,883 $ 175,926,805
Net asset value of shares issued to
shareholders in payment of
distributions declared 529,882 825,544
Cost of shares redeemed (166,381,727) (163,440,839)
- ------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS $ (6,815,962) $ 13,311,510
- ------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (6,815,962) $ 13,311,831
- ------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------
At beginning of year $ 47,271,699 $ 33,959,868
- ------------------------------------------------------------------------------
AT END OF YEAR $ 40,455,737 $ 47,271,699
- ------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE TAX FREE RESERVES AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------
Net investment income $ 0.029 $ 0.031 $ 0.031 $ 0.030 $ 0.035
- ------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.029 $ 0.031 $ 0.031 $ 0.030 $ 0.035
- ------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------
From net investment income $(0.029) $(0.031) $(0.031) $(0.030) $(0.035)
- ------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.029) $(0.031) $(0.031) $(0.030) $(0.035)
- ------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
- ------------------------------------------------------------------------------------------
TOTAL RETURN(1) 2.89% 3.09% 3.16% 3.08% 3.53%
- ------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $40,456 $47,272 $33,960 $23,355 $23,912
Ratios (As a percentage of
average daily net assets):
Net operating expenses(2) 0.46% 0.48% 0.52% 0.33% 0.34%
Net expenses after
custodian fee
reduction(2) 0.38% 0.40% 0.46% 0.27% --
Interest expense --(3) 0.01% 0.01% 0.02% 0.05%
Net investment income 2.83% 3.04% 3.12% 3.04% 3.47%
- ------------------------------------------------------------------------------------------
+ The operating expenses of the Fund may reflect a reduction of the investment adviser
fee, an allocation of expenses to the Investment Adviser, or both. Had such actions not
been taken, the ratios and net investment income per share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(2) 0.76% 0.76% 0.67% 0.69% 0.73%
Expenses after custodian
fee reduction(2) 0.68% 0.68% 0.61% 0.63% --
Net investment income 2.53% 2.76% 2.96% 2.66% 3.02%
Net investment income per
share $ 0.026 $ 0.028 $ 0.030 $ 0.027 $ 0.030
- ------------------------------------------------------------------------------------------
</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) The expense ratios for the year ended December 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund to increase
its expense ratio by the effect of any expense offset arrangements with
its service providers. The expense ratios for the year ended December 31,
1995 have not been adjusted to reflect this change.
(3) Represents less than 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE TAX FREE RESERVES AS OF DECEMBER 31, 1999
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance Tax Free Reserves (the Fund) is a diversified series of Eaton
Vance Mutual Funds Trust (the Trust). The Trust is an entity of the type
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Fund seeks to earn as high a rate of income exempt
from regular federal income tax while preserving capital and maintaining
liquidity. 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 Security Valuation -- The Fund 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 Fund 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.
B Interest Income -- Interest income consists of interest accrued, adjusted for
amortization of any discount or premium, accrued ratably to the date of
maturity or call when required for federal income tax purposes.
C Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code (the Code) applicable to regulated investment companies
and to distribute to shareholders each year all of its net investment 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 $17,687,
which will reduce the Fund's taxable income arising from future net realized
gain on investments, if any, to the extent permitted by the 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 tax. Such capital loss carryover will expire on December 31, 2002
($16,208) and December 31, 2005 ($1,479). Dividends paid by the Fund from net
interest earned on tax-exempt municipal bonds are not includable by
shareholders as gross income for federal income tax purposes because the Fund
intends to meet certain requirements of the Code applicable to regulated
investment companies which will enable the Fund to pay exempt-interest
dividends. The portion of such interest, if any, earned on private activity
bonds issued after August 7, 1986, may be considered a tax preference item
for shareholders.
D Other -- Investment transactions are accounted for on a trade date basis.
E Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Fund. Pursuant to the custodian agreement, IBT receives a fee reduced
by credits which are determined based on the average daily cash balance the
Fund maintains with IBT. All significant credit balances used to reduce the
Fund's custodian fees are reported as a reduction of total expenses in the
Statement of Operations.
F 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 investment income of the Fund is determined daily, and substantially
all of the net investment income so determined is declared as a dividend to
shareholders of record at the time of declaration. Such dividends are paid
monthly. Distributions are paid in the form of additional shares of the Fund,
or, at the election of the shareholder, in cash.
3 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Eaton Vance Management (EVM) as
compensation for management, investment advisory, and other services rendered
to the Fund and is computed at the monthly rate of 1/24 of 1% (0.50%
annually) of the Fund's average monthly net assets. To enhance the net
investment income of the Fund, EVM made a reduction of its fee in the amount
of $144,202 for the year ended December 31, 1999. Except as to Trustees of
the Fund who are not members of EVM's organization, officers and Trustees
receive remuneration for their services to the Fund out of such investment
adviser fee. Certain officers and Trustees of the Fund are officers of the
above organizations.
7
<PAGE>
EATON VANCE TAX FREE RESERVES AS OF DECEMBER 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
4 Shares of Beneficial Interest
- -------------------------------------------
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
5 Line of Credit
- -------------------------------------------
The Fund participates with other portfolios and funds managed by EVM and
affiliates in a $150 million unsecured line of credit agreement with a group
of banks. Borrowings will be made by the Fund solely to facilitate the
handling of unusual and/or unanticipated short-term cash requirements.
Interest is charged to each participating portfolio or fund based on its
borrowings at an amount above the Eurodollar rate or Federal Funds rate. In
addition, a fee computed at an annual rate of 0.10% on the daily unused
portion of the line of credit is allocated among the participating portfolios
and funds at the end of each quarter. The average daily loan balance for the
year ended December 31, 1999 was $14,984 and the average interest rate was
5.47%.
6 Purchases and Sales of Investments
- -------------------------------------------
The Fund invests primarily in state and municipal debt securities. The
ability of the issuers of the debt securities held by the Fund to meet their
obligations may be affected by economic developments in a specific industry
or municipality. Purchases and sales (including maturities) of investments
aggregated $94,997,305 and $102,879,000, respectively.
8
<PAGE>
EATON VANCE TAX FREE RESERVES AS OF DECEMBER 31, 1999
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE TRUSTEES AND SHAREHOLDERS OF
EATON VANCE TAX FREE RESERVES
- ---------------------------------------------
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, 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 Tax Free Reserves (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, which included confirmation
of securities at December 31, 1999 by correspondence with the custodian, provide
a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 31, 2000
9
<PAGE>
EATON VANCE TAX FREE RESERVES AS OF DECEMBER 31, 1999
INVESTMENT MANAGEMENT
EATON VANCE TAX FREE RESERVES
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
10
<PAGE>
This Page Intentionally Left Blank.
<PAGE>
INVESTMENT ADVISER
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 Tax Free Reserves
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.
- -------------------------------------------------------------------------------
227-12/99 TRSRC
