<PAGE>
[Eaton Vance Logo] [Picture of Flag]
Annual Report December 31, 1999
EATON VANCE
COMBINED
MONEY
MARKET FUNDS Cash Management Fund
REPORT
Liquid Assets Fund
Global Management--Global Distribution
Money Market Fund
[Picture of Statue of Liberty]
[Picture of Pillars]
<PAGE>
Eaton Vance Money Market Funds as of December 31, 1999
INVESTMENT UPDATE
Investment Environment
- -----------------------------------------------------
The Economy
[Picture]
-The U.S. economy continued
Michael B. Terry to expand strongly in the past
Portfolio Manager 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, ending 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 interest rates rising across the yield curve in
1999, shorter-duration portfolios generally outperformed
longer ones. This meant that money market funds generally
outperformed bond funds. At the long end, for example,
the benchmark 30-year Treasury bond's total return was
down 14.4%, one of its worst years ever.
The Cash Management Portfolio
- -----------------------------------------------------
About The Portfolio
- -The Portfolio invests only in the highest quality
securities. Each of its commercial paper holdings has
been given the top credit rating by at least two
nationally recognized statistical rating organizations.
- -At December 31, 1999, approximately 48% of the assets of
Cash Management Portfolio was invested in high-quality
commercial paper. 60-day commercial paper is a commonly
used liquid investment for money market funds.
- -The Portfolio also invests in U.S. Government agency
securities, which are not rated officially but are
considered to be of high quality.*
- -In the past year, the Portfolio's weighted average
maturity ranged between 25 and 50 days.
60-Day Commercial Paper Rates in 1999*
[CHART]
<TABLE>
<S> <C>
31-Dec-98 4.89
1-Jan-99 4.89
2-Jan-99 4.89
3-Jan-99 4.89
4-Jan-99 4.87
5-Jan-99 4.88
6-Jan-99 4.86
7-Jan-99 4.83
8-Jan-99 4.82
9-Jan-99 4.82
10-Jan-99 4.82
11-Jan-99 4.83
12-Jan-99 4.84
13-Jan-99 4.83
14-Jan-99 4.82
15-Jan-99 4.8
16-Jan-99 4.8
17-Jan-99 4.8
18-Jan-99 4.8
19-Jan-99 4.8
20-Jan-99 4.8
21-Jan-99 4.8
22-Jan-99 4.79
23-Jan-99 4.79
24-Jan-99 4.79
25-Jan-99 4.78
26-Jan-99 4.78
27-Jan-99 4.78
28-Jan-99 4.79
29-Jan-99 4.79
30-Jan-99 4.79
31-Jan-99 4.79
1-Feb-99 4.79
2-Feb-99 4.8
3-Feb-99 4.79
4-Feb-99 4.79
5-Feb-99 4.8
6-Feb-99 4.8
7-Feb-99 4.8
8-Feb-99 4.79
9-Feb-99 4.8
10-Feb-99 4.81
11-Feb-99 4.8
12-Feb-99 4.8
13-Feb-99 4.8
14-Feb-99 4.8
15-Feb-99 4.8
16-Feb-99 4.81
17-Feb-99 4.81
18-Feb-99 4.81
19-Feb-99 4.81
20-Feb-99 4.81
21-Feb-99 4.81
22-Feb-99 4.81
23-Feb-99 4.81
24-Feb-99 4.82
25-Feb-99 4.82
26-Feb-99 4.83
27-Feb-99 4.83
28-Feb-99 4.83
1-Mar-99 4.83
2-Mar-99 4.84
3-Mar-99 4.84
4-Mar-99 4.84
5-Mar-99 4.83
6-Mar-99 4.83
7-Mar-99 4.83
8-Mar-99 4.82
9-Mar-99 4.82
10-Mar-99 4.82
11-Mar-99 4.82
12-Mar-99 4.82
13-Mar-99 4.82
14-Mar-99 4.82
15-Mar-99 4.82
16-Mar-99 4.82
17-Mar-99 4.82
18-Mar-99 4.82
19-Mar-99 4.82
20-Mar-99 4.82
21-Mar-99 4.82
22-Mar-99 4.82
23-Mar-99 4.82
24-Mar-99 4.82
25-Mar-99 4.82
26-Mar-99 4.82
27-Mar-99 4.82
28-Mar-99 4.82
29-Mar-99 4.83
30-Mar-99 4.83
31-Mar-99 4.82
1-Apr-99 4.83
2-Apr-99 4.84
3-Apr-99 4.84
4-Apr-99 4.84
5-Apr-99 4.84
6-Apr-99 4.84
7-Apr-99 4.83
8-Apr-99 4.82
9-Apr-99 4.82
10-Apr-99 4.82
11-Apr-99 4.82
12-Apr-99 4.81
13-Apr-99 4.81
14-Apr-99 4.79
15-Apr-99 4.8
16-Apr-99 4.81
17-Apr-99 4.81
18-Apr-99 4.81
19-Apr-99 4.79
20-Apr-99 4.79
21-Apr-99 4.79
22-Apr-99 4.79
23-Apr-99 4.79
24-Apr-99 4.79
25-Apr-99 4.79
26-Apr-99 4.78
27-Apr-99 4.78
28-Apr-99 4.78
29-Apr-99 4.78
30-Apr-99 4.79
1-May-99 4.79
2-May-99 4.79
3-May-99 4.79
4-May-99 4.79
5-May-99 4.8
6-May-99 4.79
7-May-99 4.79
8-May-99 4.79
9-May-99 4.79
10-May-99 4.79
11-May-99 4.79
12-May-99 4.8
13-May-99 4.8
14-May-99 4.81
15-May-99 4.81
16-May-99 4.81
17-May-99 4.82
18-May-99 4.84
19-May-99 4.84
20-May-99 4.84
21-May-99 4.84
22-May-99 4.84
23-May-99 4.84
24-May-99 4.84
25-May-99 4.84
26-May-99 4.84
27-May-99 4.84
28-May-99 4.86
29-May-99 4.86
30-May-99 4.86
31-May-99 4.86
1-Jun-99 4.88
2-Jun-99 4.88
3-Jun-99 4.88
4-Jun-99 4.89
5-Jun-99 4.89
6-Jun-99 4.89
7-Jun-99 4.87
8-Jun-99 4.88
9-Jun-99 4.89
10-Jun-99 4.88
11-Jun-99 4.92
12-Jun-99 4.92
13-Jun-99 4.92
14-Jun-99 4.95
15-Jun-99 4.92
16-Jun-99 4.98
17-Jun-99 5
18-Jun-99 5
19-Jun-99 5
20-Jun-99 5
21-Jun-99 4.99
22-Jun-99 5.01
23-Jun-99 5.04
24-Jun-99 5.04
25-Jun-99 5.08
26-Jun-99 5.08
27-Jun-99 5.08
28-Jun-99 5.12
29-Jun-99 5.15
30-Jun-99 5.16
1-Jul-99 5.08
2-Jul-99 5.09
3-Jul-99 5.09
4-Jul-99 5.09
5-Jul-99 5.09
6-Jul-99 5.09
7-Jul-99 5.09
8-Jul-99 5.09
9-Jul-99 5.08
10-Jul-99 5.08
11-Jul-99 5.08
12-Jul-99 5.08
13-Jul-99 5.08
14-Jul-99 5.08
15-Jul-99 5.08
16-Jul-99 5.08
17-Jul-99 5.08
18-Jul-99 5.08
19-Jul-99 5.08
20-Jul-99 5.07
21-Jul-99 5.07
22-Jul-99 5.07
23-Jul-99 5.07
24-Jul-99 5.07
25-Jul-99 5.07
26-Jul-99 5.08
27-Jul-99 5.09
28-Jul-99 5.09
29-Jul-99 5.09
30-Jul-99 5.11
31-Jul-99 5.11
1-Aug-99 5.11
2-Aug-99 5.13
3-Aug-99 5.14
4-Aug-99 5.14
5-Aug-99 5.15
6-Aug-99 5.14
7-Aug-99 5.14
8-Aug-99 5.14
9-Aug-99 5.18
10-Aug-99 5.2
11-Aug-99 5.2
12-Aug-99 5.2
13-Aug-99 5.22
14-Aug-99 5.22
15-Aug-99 5.22
16-Aug-99 5.24
17-Aug-99 5.24
18-Aug-99 5.24
19-Aug-99 5.25
20-Aug-99 5.25
21-Aug-99 5.25
22-Aug-99 5.25
23-Aug-99 5.26
24-Aug-99 5.25
25-Aug-99 5.27
26-Aug-99 5.27
27-Aug-99 5.27
28-Aug-99 5.27
29-Aug-99 5.27
30-Aug-99 5.3
31-Aug-99 5.31
1-Sep-99 5.3
2-Sep-99 5.36
3-Sep-99 5.28
4-Sep-99 5.28
5-Sep-99 5.28
6-Sep-99 5.28
7-Sep-99 5.31
8-Sep-99 5.3
9-Sep-99 5.3
10-Sep-99 5.3
11-Sep-99 5.3
12-Sep-99 5.3
13-Sep-99 5.31
14-Sep-99 5.28
15-Sep-99 5.3
16-Sep-99 5.31
17-Sep-99 5.31
18-Sep-99 5.31
19-Sep-99 5.31
20-Sep-99 5.33
21-Sep-99 5.33
22-Sep-99 5.33
23-Sep-99 5.32
24-Sep-99 5.32
25-Sep-99 5.32
26-Sep-99 5.32
27-Sep-99 5.3
28-Sep-99 5.32
29-Sep-99 5.31
30-Sep-99 5.32
1-Oct-99 5.3
2-Oct-99 5.3
3-Oct-99 5.3
4-Oct-99 5.32
5-Oct-99 5.31
6-Oct-99 5.32
7-Oct-99 5.32
8-Oct-99 5.36
9-Oct-99 5.36
10-Oct-99 5.36
11-Oct-99 5.36
12-Oct-99 5.34
13-Oct-99 5.33
14-Oct-99 5.33
15-Oct-99 5.33
16-Oct-99 5.33
17-Oct-99 5.33
18-Oct-99 5.33
19-Oct-99 5.33
20-Oct-99 5.33
21-Oct-99 5.35
22-Oct-99 5.31
23-Oct-99 5.31
24-Oct-99 5.31
25-Oct-99 5.31
26-Oct-99 5.31
27-Oct-99 5.31
28-Oct-99 5.31
29-Oct-99 5.36
30-Oct-99 5.36
31-Oct-99 5.36
1-Nov-99 5.72
2-Nov-99 5.85
3-Nov-99 5.9
4-Nov-99 5.85
5-Nov-99 5.79
6-Nov-99 5.79
7-Nov-99 5.79
8-Nov-99 5.88
9-Nov-99 5.8
10-Nov-99 5.85
11-Nov-99 5.85
12-Nov-99 5.8
13-Nov-99 5.8
14-Nov-99 5.8
15-Nov-99 5.85
16-Nov-99 5.85
17-Nov-99 5.9
18-Nov-99 5.9
19-Nov-99 5.9
20-Nov-99 5.9
21-Nov-99 5.9
22-Nov-99 5.85
23-Nov-99 5.86
24-Nov-99 5.81
25-Nov-99 5.81
26-Nov-99 5.83
27-Nov-99 5.83
28-Nov-99 5.83
29-Nov-99 5.89
30-Nov-99 5.89
1-Dec-99 5.91
2-Dec-99 5.93
3-Dec-99 5.94
4-Dec-99 5.94
5-Dec-99 5.94
6-Dec-99 5.94
7-Dec-99 5.94
8-Dec-99 5.95
9-Dec-99 5.95
10-Dec-99 5.98
11-Dec-99 5.98
12-Dec-99 5.98
13-Dec-99 6
14-Dec-99 6.02
15-Dec-99 6.04
16-Dec-99 6.07
17-Dec-99 6.07
18-Dec-99 6.07
19-Dec-99 6.07
20-Dec-99 6.07
21-Dec-99 6.12
22-Dec-99 6.08
23-Dec-99 6.08
24-Dec-99 6.08
25-Dec-99 6.08
26-Dec-99 6.08
27-Dec-99 6.08
28-Dec-99 6.08
29-Dec-99 5.78
30-Dec-99 5.62
31-Dec-99 5.62
</TABLE>
- -----------------------------------------------------
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.
- -----------------------------------------------------
- -----------------------------------------------------
*An investment in one of the Portfolio's money market
funds is neither insured nor guaranteed by the U.S.
Government, and there can be no assurance that the Funds
will be able to maintain a stable net asset value of
$1.00 per share.
2
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
CASH LIQUID MONEY
MANAGEMENT FUND ASSETS FUND MARKET FUND
<S> <C> <C> <C>
- -------------------------------------------------------------------------
Assets
- -------------------------------------------------------------------------
Investment in Cash Management
Portfolio at value $130,637,947 $5,127,725 $97,192,197
Receivable for Fund shares
sold 2,362,455 -- 715,591
Receivable from the
Administrator -- -- 677
Deferred organization expenses -- -- 1,715
- -------------------------------------------------------------------------
TOTAL ASSETS $133,000,402 $5,127,725 $97,910,180
- -------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------
Payable for Fund shares
redeemed $ 1,462,039 $ 4,416 $ 452,517
Dividends payable 215,931 4,152 12,052
Payable to affiliate for
Trustees' fees 1,034 45 47
Payable to affiliate for
service fees -- 23 295
Accrued expenses 88,141 14,625 37,540
- -------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,767,145 $ 23,261 $ 502,451
- -------------------------------------------------------------------------
NET ASSETS (REPRESENTED BY
PAID-IN-CAPITAL) $131,233,257 $5,104,464 $97,407,729
- -------------------------------------------------------------------------
Shares of Beneficial Interest Outstanding
- -------------------------------------------------------------------------
131,233,257 5,104,464 97,407,729
- -------------------------------------------------------------------------
Net Asset Value, Offering Price and
Redemption Price Per Share (Note 6)
- -------------------------------------------------------------------------
(NET ASSETS DIVIDED BY SHARES
OF BENEFICIAL INTEREST
OUTSTANDING) $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
CASH LIQUID MONEY
MANAGEMENT FUND ASSETS FUND MARKET FUND
<S> <C> <C> <C>
- -------------------------------------------------------------------------
Investment Income
- -------------------------------------------------------------------------
Interest allocated from
Portfolio $5,742,881 $334,078 $2,293,979
Expenses allocated from
Portfolio (658,697) (38,989) (261,538)
- -------------------------------------------------------------------------
NET INVESTMENT INCOME FROM
PORTFOLIO $5,084,184 $295,089 $2,032,441
- -------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------
Trustees' fees and expenses $ 4,181 $ 266 $ 268
Distribution and service fees -- 16,195 363,846
Legal and accounting services 18,147 16,292 16,973
Printing and postage 9,001 2,986 5,212
Custodian fee 6,184 4,699 8,121
Amortization of organization
expenses -- -- 6,960
Transfer and dividend
disbursing agent fees 121,189 7,774 40,706
Registration fees 31,439 12,285 27,316
Miscellaneous 16,001 3,811 14,990
- -------------------------------------------------------------------------
TOTAL EXPENSES $ 206,142 $ 64,308 $ 484,392
- -------------------------------------------------------------------------
Deduct --
Allocation of expenses to
the Administrator $ -- $ -- $ 677
- -------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ -- $ -- $ 677
- -------------------------------------------------------------------------
NET EXPENSES $ 206,142 $ 64,308 $ 483,715
- -------------------------------------------------------------------------
NET INVESTMENT INCOME $4,878,042 $230,781 $1,548,726
- -------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
CASH LIQUID MONEY
INCREASE (DECREASE) IN NET ASSETS MANAGEMENT FUND ASSETS FUND MARKET FUND
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
From operations --
Net investment income $ 4,878,042 $ 230,781 $ 1,548,726
- ------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income $ (4,878,042) $ (230,781) $ (1,548,726)
- ------------------------------------------------------------------------------
Transactions in shares of beneficial interest at
Net Asset Value of $1.00 per share --
Proceeds from sale of shares $ 475,718,737 $ -- $ 204,567,719
Net asset value of shares
issued to shareholders in
payment of
distributions declared 2,352,688 136,517 1,217,835
Cost of shares redeemed (443,082,182) (3,005,591) (142,669,365)
- ------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM FUND SHARE
TRANSACTIONS $ 34,989,243 $(2,869,074) $ 63,116,189
- ------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS $ 34,989,243 $(2,869,074) $ 63,116,189
- ------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------
At beginning of year $ 96,244,014 $ 7,973,538 $ 34,291,540
- ------------------------------------------------------------------------------
AT END OF YEAR $ 131,233,257 $ 5,104,464 $ 97,407,729
- ------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
CASH LIQUID MONEY
INCREASE (DECREASE) IN NET ASSETS MANAGEMENT FUND ASSETS FUND MARKET FUND
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
From operations --
Net investment income $ 4,661,597 $ 423,427 $ 1,021,865
- -----------------------------------------------------------------------------
Distributions to shareholders --
From net investment income $ (4,661,597) $ (423,427) $ (1,021,865)
- -----------------------------------------------------------------------------
Transactions in shares of beneficial interest at
Net Asset Value of $1.00 per share --
Proceeds from sale of shares $ 503,937,629 $ 77,632 $106,237,780
Net asset value of shares
issued to shareholders in
payment of
distributions declared 2,326,522 239,050 790,419
Cost of shares redeemed (556,763,381) (5,343,871) (96,545,361)
- -----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM FUND SHARE
TRANSACTIONS $ (50,499,230) $(5,027,189) $ 10,482,838
- -----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS $ (50,499,230) $(5,027,189) $ 10,482,838
- -----------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------
At beginning of year $ 146,743,244 $13,000,727 $ 23,808,702
- -----------------------------------------------------------------------------
AT END OF YEAR $ 96,244,014 $ 7,973,538 $ 34,291,540
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CASH MANAGEMENT FUND
-----------------------------------------------
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 $0.044 $0.047 $0.048 $0.047 $ 0.052
- -------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------
From net investment income $(0.044 ) $(0.047) $(0.048 ) $(0.047 ) $ (0.052)
- -------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $1.000 $1.000 $1.000 $1.000 $ 1.000
- -------------------------------------------------------------------------------
TOTAL RETURN(1) 4.47% 4.78% 4.89% 4.82% 5.35%
- -------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $131,233 $96,244 $146,743 $151,691 $155,251
Ratios (As a percentage of
average daily net assets):
Expenses(2) 0.79% 0.85% 0.78% 0.74% 0.74%
Net investment income 4.43% 4.69% 4.79% 4.70% 5.22%
- -------------------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(2) Includes the Fund's share of its Portfolio's allocated expenses.
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LIQUID ASSETS FUND
-------------------------------------------
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 $0.036 $0.041 $0.042 $0.043 $ 0.051
- ---------------------------------------------------------------------------
Less distributions
- ---------------------------------------------------------------------------
From net investment income $(0.036) $(0.041) $(0.042) $(0.043) $(0.051)
- ---------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $1.000 $1.000 $1.000 $1.000 $ 1.000
- ---------------------------------------------------------------------------
TOTAL RETURN(1) 3.63% 4.20% 4.29% 4.41% 5.16%
- ---------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $5,104 $7,974 $13,001 $19,910 $34,026
Ratios (As a percentage of
average daily net assets):
Expenses(2) 1.59% 1.43% 1.35% 1.13% 0.91%
Net investment income 3.56% 4.14% 4.21% 4.31% 5.11%
- ---------------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(2) Includes the Fund's share of its Portfolio's allocated expenses.
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF DECEMBER 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MONEY MARKET FUND
-----------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------
1999 1998 1997 1996 1995(1)
<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 $0.034 $0.037 $0.038 $0.037 $ 0.031
- -------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------
From net investment income $(0.034) $(0.037) $(0.038) $(0.037) $(0.031)
- -------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $1.000 $1.000 $1.000 $1.000 $ 1.000
- -------------------------------------------------------------------------------
TOTAL RETURN(2) 3.50% 3.75% 3.88% 3.77% 3.17%
- -------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $97,408 $34,292 $23,809 $31,250 $12,951
Ratios (As a percentage of
average daily net assets):
Net expenses(3) 1.71% 1.82% 1.73% 1.73% 1.68%(4)
Net investment income 3.55% 3.70% 3.83% 3.70% 4.19%(4)
- -------------------------------------------------------------------------------
+ The operating expenses of the Fund may reflect an allocation of expenses to
the Administrator. Had such action not been taken, the ratios and net
investment income per share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.71% 1.86% 1.82% 1.76% 1.85%(4)
Net investment income 3.55% 3.66% 3.74% 3.66% 4.03%(4)
Net investment income per
share $0.034 $0.037 $0.037 $0.037 $ 0.030
- -------------------------------------------------------------------------------
</TABLE>
(1) For the period from the start of business, April 5, 1995, to December 31,
1995.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its Portfolio's allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF DECEMBER 31, 1999
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance Cash Management Fund (Cash Management Fund), Eaton Vance Liquid
Assets Fund (Liquid Assets Fund) and Eaton Vance Money Market Fund (Money
Market Fund) (individually, the Fund, collectively the Funds) are each
diversified series of Eaton Vance Mutual Funds Trust (the Trust). The Trust
is an entity of the type commonly known as a Massachusetts business trust and
is registered under the Investment Company Act of 1940 as amended (1940 Act),
as an open-end management investment company. The Liquid Assets Fund is
currently closed to new investments.
The Funds invest all of their investable assets in interests in the Cash
Management Portfolio (the Portfolio), a New York Trust, having the same
investment objective as the Funds. The value of each Fund's investment in the
Portfolio reflects the Fund's proportionate interest in the net assets of the
Portfolio (56.1% for Cash Management Fund, 2.2% for Liquid Assets Fund and
41.7% for Money Market Fund at December 31, 1999). The performance of each
Fund is directly affected by the performance of the Portfolio. The financial
statements of the Portfolio, including the portfolio of investments, are
included elsewhere in this report and should be read in conjunction with each
of the Fund's financial statements. The following is a summary of significant
accounting policies consistently followed by the Funds in the preparation of
their financial statements. The policies are in conformity with generally
accepted accounting principles.
A Investment Valuation -- Valuation of securities by the Portfolio is discussed
in Note 1A of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.
B Income -- The Funds' net investment income consists of each Fund's pro rata
share of the net investment income of the Portfolio, less all actual and
accrued expenses of each Fund determined in accordance with generally
accepted accounting principles.
C Federal Taxes -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable income, including any
net realized gain on investments. Accordingly, no provision for federal
income or excise tax is necessary. At December 31, 1999 Liquid Assets Fund,
for federal income tax purposes, had a capital loss carryover of $6,674 which
will reduce the Fund's taxable income arising from future net realized gain
on investments, if any, to the extent permitted by the Internal Revenue Code,
and thus will reduce the amount of the distributions to shareholders which
would otherwise be necessary to relieve the Fund of any liability for federal
income or excise tax. Such capital loss carryover will expire on December 31,
2001.
D Deferred Organization Expenses -- Costs incurred by the Money Market Fund in
connection with its organization, including registration costs, are being
amortized on the straight-line basis over five years.
E Use of Estimates -- The preparation of 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.
F Other -- Investment transactions are accounted for on a trade-date basis.
2 Distributions to Shareholders
- -------------------------------------------
The net investment income of each Fund is determined daily, and substantially
all of the net income so determined is declared as a dividend to shareholders
of record at the time of declaration. Distributions are paid monthly.
Distributions are paid in the form of additional shares or, at the election
of the shareholder, in cash.
The Funds distinguish between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a return of capital. Differences in the recognition
or classification of income between the financial statements and tax earnings
and profits which result in temporary over distributions for financial
statement purposes are classified as distributions in excess of net
investment income or accumulated net realized gains. Permanent differences
between book and tax accounting relating to distributions are reclassified to
paid-in capital.
3 Shares of Beneficial Interest
- -------------------------------------------
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At
December 31, 1999, the
10
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF DECEMBER 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
Funds' Principal Underwriter owned 22% of the shares of the Cash Management
Fund and one shareholder owned 13% of the shares of the Liquid Assets Fund.
4 Transactions with Affiliates
- -------------------------------------------
Eaton Vance Management (EVM) serves as the administrator of the Funds, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 2 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report. To enhance the net income of the Money
Market Fund for the year ended December 31, 1999, $677 of expenses related to
the operation of the Fund were allocated to EVM. Except as to Trustees of the
Funds and the Portfolio who are not members of EVM's or BMR's organization,
officers and Trustees receive remuneration for their services to each Fund
out of such investment adviser fee. Certain officers and Trustees of the
Funds and of the Portfolio are officers of the above organizations.
5 Distribution Plans
- -------------------------------------------
Money Market Fund and Liquid Assets Fund have in effect distribution plans
(individually the Plan and collectively the Plans) pursuant to Rule 12b-1
under the 1940 Act. The Plan for Money Market Fund requires the Fund to pay
the Principal Underwriter, Eaton Vance Distributors, Inc. (EVD), amounts
equal to 0.75% of the Fund's average daily net assets, for providing ongoing
distribution services and facilities to the Fund. The Fund will automatically
discontinue payments to EVD during any period in which there are no
outstanding Uncovered Distribution Charges. The Plan for Liquid Assets Fund
does not provide for annual payments to EVD for providing such services and
facilities, however, the Plan does require the Fund to calculate outstanding
Uncovered Distribution Charges. Each Fund's balance of Uncovered Distribution
Charges is equivalent to the sum of (i) 6.25% (5% for Liquid Assets Fund) of
the aggregate amount received by the Fund for shares sold plus (ii) interest
calculated by applying the rate of 1% over the prevailing prime rate to the
outstanding balance of Uncovered Distribution Charges of EVD reduced by the
aggregate amount of contingent deferred sales charges (Note 6) and amounts
theretofore paid to EVD. For the year ended December 31, 1999, Money Market
Fund paid $327,509 to EVD, representing 0.75% of the Fund's average daily net
assets. At December 31, 1999, the amount of Uncovered Distribution Charges of
EVD calculated under the Plan for Money Market Fund and Liquid Assets Fund
were approximately $7,011,000 and $2,567,000, respectively.
The Plans authorize the Funds to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.25% of each
Fund's average daily net assets. The Trustees implemented the Plans by
authorizing the Funds to make quarterly service fee payments to EVD and
investment dealers in amounts equal to 0.15% (0.25% for Liquid Assets Fund)
per annum of each Fund's average daily net assets based on the value of the
Fund shares sold by such persons and remaining outstanding for at least one
year. For the year ended December 31, 1999, Money Market Fund and Liquid
Assets Fund paid service fees to EVD and investment dealers in the amount of
$36,337 and $16,195 respectively. Service fee payments are made for personal
services and/or maintenance of shareholder accounts. Service fees paid to EVD
and investment dealers are separate and distinct from the sales commissions
and distribution fees payable by the Fund to EVD, and as such are not subject
to automatic discontinuance when there are no outstanding Uncovered
Distribution Charges of EVD.
Certain officers and Trustees of the Funds are officers of the above
organization.
6 Contingent Deferred Sales Charge
- -------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of shares from either Money Market Fund or Liquid Assets Fund made within six
years of purchase. Generally, the CDSC is based upon the lower of the net
asset value at date of redemption or date of purchase. No charge is levied on
shares acquired by reinvestment of dividends or capital gains distributions.
The CDSC is imposed at rates that begin at 5% in the case of redemptions in
the first and second year after purchase, declining one percentage point each
subsequent year. No CDSC is levied on shares which have been sold to EVM or
its affiliates or to their respective employees or clients and may be waived
under certain other limited conditions. CDSC charges are paid to EVD to
reduce the amount of Uncovered Distribution Charges calculated under the
Funds' Distribution Plans. CDSC charges received when no Uncovered
Distribution Charges exist will be credited to the respective Funds. The Fund
was informed that EVD received approximately $426,000 and $4,000 of CDSC paid
by shareholders for the year ended December 31, 1999 for the Money Market
Fund and Liquid Assets Fund, respectively.
11
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF DECEMBER 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
7 Investment Transactions
- -------------------------------------------
Increases and decreases in the Funds' investment in the Portfolio for the
year ended December 31, 1999 were as follows:
<TABLE>
<CAPTION>
CASH MANAGEMENT FUND
<S> <C>
------------------------------------------------------
Increases $474,042,343
Decreases 445,959,498
<CAPTION>
LIQUID ASSETS FUND
<S> <C>
------------------------------------------------------
Increases $ 20,229
Decreases 3,194,649
<CAPTION>
MONEY MARKET FUND
<S> <C>
------------------------------------------------------
Increases $204,040,236
Decreases 143,744,927
</TABLE>
12
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF DECEMBER 31, 1999
INDEPENDENT ACCOUNTANTS' REPORT
TO THE TRUSTEES AND SHAREHOLDERS
OF EATON VANCE MUTUAL FUNDS TRUST
- ---------------------------------------------
In our opinion, the accompanying statements 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 Cash Management Fund, Eaton Vance Liquid Assets Fund, and Eaton
Vance Money Market Fund (the "Funds") at December 31, 1999, and the results of
each of their operations, the changes in each of their 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 Funds' 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
January 31, 2000
13
<PAGE>
CASH MANAGEMENT PORTFOLIO AS OF DECEMBER 31, 1999
PORTFOLIO OF INVESTMENTS
CORPORATE BONDS & NOTES -- 0.2%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Financial Services -- 0.2%
- -----------------------------------------------------------------------------
$ 360 Associates Corp. of North America,
5.96%, 5/15/00 $ 359,896
- -----------------------------------------------------------------------------
$ 359,896
- -----------------------------------------------------------------------------
Total Corporate Bonds & Notes
(identified cost $359,896) $ 359,896
- -----------------------------------------------------------------------------
COMMERCIAL PAPER -- 47.6%
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Automotive -- 1.5%
- -----------------------------------------------------------------------------
$ 1,800 Ford Motor Credit Co., 5.75%, 1/7/00 $ 1,798,275
1,700 General Motors Acceptance Corp.,
5.87%, 1/19/00 1,695,010
- -----------------------------------------------------------------------------
$ 3,493,285
- -----------------------------------------------------------------------------
Banking and Finance -- 11.0%
- -----------------------------------------------------------------------------
$ 3,115 American Express Credit Corp.,
5.82%, 1/20/00 $ 3,105,432
5,085 Asset Securitization Coop. Corp.,
5.90%, 2/28/00(1) 5,036,664
3,848 CIESCO, 5.90%, 2/14/00 3,820,251
1,105 CIESCO, 5.97%, 1/21/00 1,101,335
2,620 CIT Group Holdings, Inc., 5.80%, 1/6/00 2,617,889
3,000 Corporate Asset Funding Co., Inc.,
5.97%, 2/7/00(1) 2,981,592
3,500 Corporate Receivables Corp.,
5.97%, 1/19/00(1) 3,489,553
3,500 Delaware Funding Corp.,
6.05%, 1/18/00(1) 3,490,000
- -----------------------------------------------------------------------------
$ 25,642,716
- -----------------------------------------------------------------------------
Chemicals -- 1.6%
- -----------------------------------------------------------------------------
$ 3,634 E.I. duPont de Nemours & Co.,
5.82%, 1/18/00 $ 3,624,013
- -----------------------------------------------------------------------------
$ 3,624,013
- -----------------------------------------------------------------------------
Credit Unions -- 2.1%
- -----------------------------------------------------------------------------
$ 5,000 Mid-States Corp. Federal Credit Union,
6.15%, 1/27/00 $ 4,977,792
- -----------------------------------------------------------------------------
$ 4,977,792
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Electric Utilities -- 3.3%
- -----------------------------------------------------------------------------
$ 1,000 National Rural Utilities Coop. Finance
Corp., 5.86%, 3/9/00 $ 988,931
1,440 National Rural Utilities Coop. Finance
Corp., 5.90%, 3/21/00 1,421,120
1,500 National Rural Utilities Coop. Finance
Corp., 6.02%, 3/23/00 1,479,432
3,800 TECO Finance, Inc., 6.05%, 1/11/00(1) 3,793,614
- -----------------------------------------------------------------------------
$ 7,683,097
- -----------------------------------------------------------------------------
Electrical and Electronic Equipment -- 5.1%
- -----------------------------------------------------------------------------
$ 1,350 General Electric Capital Corp.,
5.97%, 1/18/00 $ 1,346,195
2,000 General Electric Capital Corp.,
5.98%, 1/19/00 1,994,020
2,800 General Electric Capital Corp.,
6.00%, 1/24/00 2,789,267
1,270 General Electric Capital Corp.,
6.00%, 1/25/00 1,264,920
1,500 General Electric Capital Corp.,
6.09%, 3/13/00 1,481,730
3,000 Panasonic Finance America,
5.88%, 2/8/00(1) 2,981,380
- -----------------------------------------------------------------------------
$ 11,857,512
- -----------------------------------------------------------------------------
Financial Services -- 2.2%
- -----------------------------------------------------------------------------
$ 3,500 John Hancock Capital Corp.,
5.90%, 1/14/00(1) $ 3,492,543
1,700 Norwest Financial, Inc., 5.82%, 2/1/00 1,691,480
- -----------------------------------------------------------------------------
$ 5,184,023
- -----------------------------------------------------------------------------
Food and Beverages -- 2.9%
- -----------------------------------------------------------------------------
$ 2,145 Coca-Cola Co., 5.77%, 1/18/00 $ 2,139,156
2,000 H.J. Heinz Co., 6.10%, 1/19/00 1,993,900
2,605 Kellogg Co., 5.90%, 2/22/00 2,582,800
- -----------------------------------------------------------------------------
$ 6,715,856
- -----------------------------------------------------------------------------
Insurance -- 7.3%
- -----------------------------------------------------------------------------
$ 5,000 A.I. Credit Corp., 5.82%, 1/28/00 $ 4,978,175
2,000 American General Corp., 5.96%, 2/10/00 1,986,756
1,500 American General Finance Corp.,
5.98%, 1/26/00 1,493,771
3,565 MetLife Funding, Inc., 5.85%, 1/25/00 3,551,096
5,000 USAA Capital Corp., 6.05%, 2/7/00 4,968,910
- -----------------------------------------------------------------------------
$ 16,978,708
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
CASH MANAGEMENT PORTFOLIO AS OF DECEMBER 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Oil -- 3.8%
- -----------------------------------------------------------------------------
$ 2,500 Chevron USA, Inc., 5.77%, 1/10/00 $ 2,496,394
2,500 Chevron USA, Inc., 5.77%, 1/11/00 2,495,993
4,000 Chevron USA, Inc., 5.90%, 2/18/00 3,968,533
- -----------------------------------------------------------------------------
$ 8,960,920
- -----------------------------------------------------------------------------
Pharmaceutical -- 1.9%
- -----------------------------------------------------------------------------
$ 2,000 Pfizer, Inc., 5.73%, 2/15/00(1) $ 1,985,675
2,500 Pfizer, Inc., 5.77%, 2/2/00(1) 2,487,177
- -----------------------------------------------------------------------------
$ 4,472,852
- -----------------------------------------------------------------------------
Telecommunications -- 4.9%
- -----------------------------------------------------------------------------
$ 3,400 AT&T Corp., 5.95%, 1/24/00 $ 3,387,075
5,000 BellSouth Telecommunications, Inc.,
5.75%, 2/25/00 4,956,076
3,000 SBC Communications, Inc.,
5.75%, 2/15/00(1) 2,978,438
- -----------------------------------------------------------------------------
$ 11,321,589
- -----------------------------------------------------------------------------
Total Commercial Paper
(identified cost $110,912,363) $110,912,363
- -----------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS -- 52.2%
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
$ 3,450 FHLB Discount Notes, 5.18%, 1/5/00 $ 3,448,015
6,420 FHLB Discount Notes, 5.49%, 2/11/00 6,379,859
2,335 FHLB Discount Notes, 5.65%, 3/9/00 2,310,080
8,158 FHLB Discount Notes, 5.65%, 3/10/00 8,069,656
3,000 FHLMC Discount Notes, 5.58%, 1/12/00 2,994,885
3,000 FHLMC Discount Notes, 5.55%, 1/13/00 2,994,450
1,900 FHLMC Discount Notes, 5.53%, 1/31/00 1,891,244
30,000 FHLMC Discount Notes, 5.75%, 2/2/00 29,846,667
2,170 FHLMC Discount Notes, 5.48%, 2/4/00 2,158,769
3,105 FHLMC Discount Notes, 5.525%, 2/9/00 3,086,415
4,035 FHLMC Discount Notes, 5.75%, 2/15/00 4,005,998
2,765 FHLMC Discount Notes, 5.57%, 2/23/00 2,742,326
1,225 FNMA Discount Notes, 5.57%, 1/20/00 1,221,398
3,000 FNMA Discount Notes, 5.58%, 1/21/00 2,990,700
4,490 FNMA Discount Notes, 5.52%, 1/26/00 4,472,789
2,500 FNMA Discount Notes, 5.52%, 1/27/00 2,490,034
2,000 FNMA Discount Notes, 5.53%, 1/28/00 1,991,705
3,350 FNMA Discount Notes, 5.55%, 2/2/00 3,333,473
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
$ 5,799 FNMA Discount Notes, 5.545%, 2/3/00 $ 5,769,524
4,970 FNMA Discount Notes, 5.55%, 2/3/00 4,944,715
3,000 FNMA Discount Notes, 5.54%, 2/4/00 2,984,304
2,500 FNMA Discount Notes, 5.48%, 2/8/00 2,485,539
5,875 FNMA Discount Notes, 5.55%, 2/17/00 5,832,431
2,505 FNMA Discount Notes, 5.60%, 2/24/00 2,483,958
5,000 FNMA Discount Notes, 5.64%, 3/2/00 4,952,217
3,665 FNMA Discount Notes, 5.635%, 3/7/00 3,627,137
2,145 FNMA Discount Notes, 5.84%, 3/16/00 2,118,903
- -----------------------------------------------------------------------------
Total U.S. Government Obligations
(identified cost, $121,627,191) $121,627,191
- -----------------------------------------------------------------------------
Total Investments -- 100.0%
(identified cost $232,899,450) $232,899,450(2)
- -----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.0% $ 58,419
- -----------------------------------------------------------------------------
Net Assets -- 100.0% $232,957,869
- -----------------------------------------------------------------------------
</TABLE>
FHLMC - Federal Home Loan Mortgage Corporation (Freddie Mac)
FHLB - Federal Home Loan Bank
FNMA - Federal National Mortgage Association (Fannie Mae)
(1) A security which has been issued under section 4(2) of the Securities Act
of 1933 and is generally regarded as restricted and illiquid. This
security may be resold in transactions exempt from registration or to the
public if the security is registered. All such securities held have been
deemed by the Portfolio's Trustees to be liquid and were purchased with
the expectation that resale would not be necessary.
(2) Cost for federal income tax purposes is the same.
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
CASH MANAGEMENT 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 $232,899,450
Cash 110,197
Interest receivable 2,779
- ------------------------------------------------------
TOTAL ASSETS $233,012,426
- ------------------------------------------------------
Liabilities
- ------------------------------------------------------
Payable to affiliate for Trustees' fees $ 2,216
Accrued expenses 52,341
- ------------------------------------------------------
TOTAL LIABILITIES $ 54,557
- ------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $232,957,869
- ------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $232,957,869
- ------------------------------------------------------
TOTAL $232,957,869
- ------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
DECEMBER 31, 1999
<S> <C>
Investment Income
- ----------------------------------------------------
Interest $8,370,938
- ----------------------------------------------------
TOTAL INVESTMENT INCOME $8,370,938
- ----------------------------------------------------
Expenses
- ----------------------------------------------------
Investment adviser fee $ 803,098
Trustees' fees and expenses 14,514
Custodian fee 105,849
Legal and accounting services 31,884
Amortization of organization expenses 907
Miscellaneous 2,972
- ----------------------------------------------------
TOTAL EXPENSES $ 959,224
- ----------------------------------------------------
NET INVESTMENT INCOME $7,411,714
- ----------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
CASH MANAGEMENT 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 $ 7,411,714 $ 6,761,310
- ------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 7,411,714 $ 6,761,310
- ------------------------------------------------------------------------------
Capital transactions --
Contributions $ 678,102,808 $ 610,798,591
Withdrawals (592,899,074) (660,957,683)
- ------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ 85,203,734 $ (50,159,092)
- ------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 92,615,448 $ (43,397,782)
- ------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------
At beginning of year $ 140,342,421 $ 183,740,203
- ------------------------------------------------------------------------------
AT END OF YEAR $ 232,957,869 $ 140,342,421
- ------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
CASH MANAGEMENT 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
- ----------------------------------------------------------------------
Expenses 0.60% 0.61% 0.59% 0.59% 0.60%
Net investment income 4.60% 4.90% 4.96% 4.83% 5.36%
- ----------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
CASH MANAGEMENT PORTFOLIO AS OF DECEMBER 31, 1999
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
- -------------------------------------------
Cash Management Portfolio (the Portfolio) is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company
which was organized as a trust under the laws of the State of New York on May
1, 1992. The Declaration of Trust permits the Trustees to issue interests in
the Portfolio. The following is a summary of significant accounting policies
of the Portfolio. The policies are in conformity with generally accepted
accounting principles.
A Security Valuation -- The Portfolio values investment securities utilizing
the amortized cost valuation technique permitted by Rule 2a-7 of the
Investment Company Act of 1940, pursuant to which the Portfolio must comply
with certain conditions. This technique involves initially valuing a
portfolio security at its cost and thereafter assuming a constant
amortization to maturity of any discount or premium.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or accretion of discount.
C Income Taxes -- The Portfolio has elected to be treated as a partnership for
federal tax purposes. No provision is made by the Portfolio for federal or
state taxes on any taxable income of the Portfolio because each investor in
the Portfolio is ultimately responsible for the payment of any taxes. Since
some of the Portfolio's investors are regulated investment companies that
invest all or substantially all of their assets in the Portfolio, the
Portfolio normally must satisfy the applicable source of income and
diversification requirements (under the Internal Revenue Code) in order for
its investors to satisfy them. The Portfolio will allocate at least annually
among its investors each investor's distributive share of the Portfolio's net
investment income, net realized capital gains, and any other items of income,
gain, loss, deduction or credit.
D Deferred Organization Expenses -- Costs incurred by the Portfolio in
connection with its organization were amortized on the straight-line basis
over five years and are fully amortized at December 31, 1999.
E Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Portfolio. Pursuant to the respective custodian agreements, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances the Portfolio maintains with IBT. All significant credit
balances used to reduce the Portfolio's custodian fees are reported as a
reduction of expenses on the Statement of Operations. For the year ended
December 31, 1999, $1,846 credit balances were used to reduce the Portfolio's
custodian fee.
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.
G Other -- Investment transactions are accounted for on a trade-date basis.
2 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to the Portfolio.
The fee is computed at the rate of 1/2 of 1% per annum of the Portfolio's
average daily net assets and amounted to $803,098 for the year ended
December 31, 1999. Except as to Trustees of the Portfolio who are not members
of EVM's or BMR's organization, officers and Trustees receive remuneration
for their services to the Portfolio out of such investment adviser fee.
Certain officers and Trustees of the Portfolio are officers of the above
organizations.
3 Line of Credit
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The Portfolio participates with other portfolios and funds managed by BMR or
EVM and its affiliates in a $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 participating portfolio or fund based on its
borrowings at an amount above the Eurodollar rate or federal funds rate. In
addition, a fee computed at an annual rate of 0.10% on the daily unused
portion of the line of credit is allocated among the participating portfolios
and funds at the end of each quarter. The Portfolio did not have any
significant borrowings or allocated fees during the period.
4 Investments
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Purchases and sales (including maturities) of investments, during the year
ended December 31, 1999, exclusive of U.S. Government securities, aggregated
$804,751,934 and $791,198,404, respectively. Purchases and sales (including
maturities) of U.S. Government Agency securities aggregated $658,127,431 and
$587,419,966, respectively.
19
<PAGE>
CASH MANAGEMENT PORTFOLIO AS OF DECEMBER 31, 1999
INDEPENDENT ACCOUNTANTS' REPORT
TO THE TRUSTEES AND INVESTORS
OF CASH MANAGEMENT PORTFOLIO
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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 supplementary data present fairly, in all material
respects, the financial position of Cash Management Portfolio (the "Portfolio")
at December 31, 1999, and the results of its operations, the changes in its net
assets 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, provide
a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 31, 2000
20
<PAGE>
EATON VANCE MONEY MARKET FUNDS AS OF DECEMBER 31, 1999
INVESTMENT MANAGEMENT
EATON VANCE MUTUAL FUNDS TRUST
Officers
James B. Hawkes
President and Trustee
William H. Ahern, Jr.
Vice President
Thomas J. Fetter
Vice President
Armin J. Lang
Vice President
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
CASH MANAGEMENT PORTFOLIO
Officers
James B. Hawkes
President and Trustee
Michael B. Terry
Vice President and
Portfolio Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
21
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PORTFOLIO INVESTMENT ADVISER
Boston Management and Research
The Eaton Vance Building
255 State Street
Boston, MA 02109
FUND ADMINISTRATOR
Eaton Vance Management
The Eaton Vance Building
255 State Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
CUSTODIAN
Investors Bank & Trust Company
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
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 MUTUAL FUNDS TRUST
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
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This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund,
including its sales charges and expenses. Please read the prospectus
carefully before you invest or send money.
- -------------------------------------------------------------------------
131-12/99 MMSRC-12/99
