<PAGE>
To Shareholders
The Federal Reserve, anticipating inflationary pressures, raised the federal
funds rate seven times between February 1994 and February 1995. In response, the
nation's rate of economic growth slowed considerably, with the Gross Domestic
Product advancing at a moderate 2.7 percent during the first quarter of 1995,
compared withd 4.1 and 5.0 percent in the third and fourth quarters of 1994,
respectively.
In early July the Fed, concerned that the economy was slowing too rapidly,
reversed itself, lowering the target federal funds rate by a quarter of a
percentage point.
The key question now is whether slow growth will be sustained or whether the
economy will slide into recession. If the economy weakens more than the Fed
anticipated, short-term rates are likely to be lowered further. However, if the
economy starts to pick up once again, further rate reductions may not be needed.
The Portfolio's performance reflects these changes in Fed policy and the
associated changes in short-term liquid investments.
Shareholders can be assured that the Portfolio will invest, as it has in the
past, only in investments of the highest quality. Apart from U.S. Government
securities (which are not rated, but are considered to be of high quality), the
Portfolio's investments are in commercial paper which has been given the top
rating by at least two nationally recognized statistical rating organizations.
The Portfolio's strategy has been to maintain a consistent average maturity of
between 30 and 40 days.
Chart on page 1 is a line chart entitled, "Short-term rates reached a plateau
after rising sharply." The left-vertical axis shows interest rates, and runs
from 2 to 7%. The lower horizontal axis depicts the passage of time, from 6/93
to 6/95 and six-month intervals. The chart labels the data line as "Federal
Funds Rate, month-end yields." The source of the data is footnoted: Bloomberg,
L.P.
Federal Funds Rate
6/93 3.5
7/93 3.125
8/93 3.1875
9/93 3
10/93 3.0625
11/93 3.125
12/93 3
1/94 3.5
2/94 3.5
3/94 3.625
4/94 4
5/94 4.625
6/94 4.125
7/94 4.375
8/94 4.875
9/94 6
10/94 4.9375
11/94 5.625
12/94 5.5
1/95 5.75
2/95 6.125
3/95 6
4/95 6.1875
5/95 6.1875
6/95 6.25
Of course, an investment in the Funds is neither insured nor guaranteed by the
U.S. Government and there can be no assurance that the Funds will be able to
maintain a stable net asset value of $1.00 per share.
This is the first report to shareholders that uses a new format in which we
combine the results of Eaton Vance Cash Management Fund, Eaton Vance Liquid
Assets Fund and Eaton Vance Money Market Fund. These three Funds all invest
solely in the Cash Management Portfolio.
- ------------------ Sincerely,
[Photograph of
M. Dozier Gardner] /s/M. Dozier Gardner
M. Dozier Gardner
- ------------------ President of Cash Managment
Portfolio
July 24, 1995
<PAGE>
EV MONEY MARKET FUNDS
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------
June 30, 1995 (Unaudited)
- ------------------------------------------------------------------------------
CASH LIQUID MONEY
MANAGEMENT ASSETS MARKET
FUND FUND FUND
------------ ----------- -----------
ASSETS:
Investment in Portfolio, at
amortized cost and value
(Note 1A) $125,618,855 $45,273,305 $27,636,376
Receivable for Fund shares sold 535,510 -- 146,650
Receivable from the Administrator
(Note 4) -- -- 7,210
Deferred organization expenses
(Note 1D) -- -- 39,501
------------ ----------- -----------
Total assets $126,154,365 $45,273,305 $27,829,737
------------ ----------- -----------
LIABILITIES:
Dividends payable $ 192,608 $ 95,957 $ 25,883
Payable for Fund shares redeemed 1,803,917 211,138 105,018
Payable to affiliates --
Trustees' fees 1,258 812 41
Custodian fees 767 203 --
Accrued expenses 34,735 17,313 10,394
------------ ----------- -----------
Total liabilities 2,033,285 325,423 141,336
------------ ----------- -----------
NET ASSETS (represented by paid-in
capital) $124,121,080 $44,947,882 $27,688,401
============ =========== ===========
SHARES OF BENEFICIAL INTEREST
OUTSTANDING 124,121,080 44,947,882 27,688,401
============ =========== ===========
NET ASSET VALUE, SALES AND REDEMPTION
PRICE PER SHARE
(net assets / shares of beneficial
interest outstanding) $1.00 $1.00 $1.00
===== ===== =====
See notes to financial statements
<PAGE>
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
CASH LIQUID MONEY
MANAGEMENT ASSETS MARKET
FUND FUND FUND*
---------- ---------- ----------
INVESTMENT INCOME (NOTE 1B):
Interest income allocated from
Portfolio $3,610,437 $2,078,973 $ 144,210
Expenses allocated from Portfolio (348,167) (198,154) (14,326)
---------- ---------- ----------
Total investment income $3,262,270 $1,880,819 $ 129,884
---------- ---------- ----------
EXPENSES --
Distribution fees (Note 5) -- $ 11,926 $ 17,834
Compensation of Trustees not
members of the Administrator's
organization (Note 4) $ 1,785 1,746 41
Custodian fees 4,726 2,034 --
Transfer and dividend disbursing
agent fees 49,432 29,891 150
Printing and postage 14,102 28,148 8,890
Legal and accounting 4,998 9,537 2,090
Amortization of organization
expense (Note 1D) -- -- 1,999
Registration costs 21,652 8,982 25
Miscellaneous 3,524 4,897 2,127
---------- ---------- ----------
Total expenses $ 100,219 $ 97,161 $ 33,156
Deduct preliminary allocation of
expenses to the Administrator (Note 4) -- -- 7,210
---------- ---------- ----------
Net expenses $ 100,219 $ 97,161 $ 25,946
---------- ---------- ----------
Net investment income $3,162,051 $1,783,658 $ 103,938
========== ========== ==========
*For the Money Market Fund, the Statement of Operations is for the period from
the start of business, April 5, 1995, to June 30, 1995.
See notes to financial statements
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
For the Six Months Ended June 30, 1995 (Unaudited)
- ------------------------------------------------------------------------------
CASH LIQUID MONEY
MANAGEMENT ASSETS MARKET
FUND FUND FUND*
------------ ------------ -----------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 3,162,051 $ 1,783,658 $ 103,938
Distributions to shareholders
from net investment income
(Note 2) (3,162,051) (1,783,658) (103,938)
Net increase (decrease) in net
assets from Fund share
transactions (Note 3) 12,499,572 (73,650,710) 27,688,401
------------ ------------ -----------
Net increase (decrease) in
net assets $ 12,499,572 $(73,650,710) $27,688,401
NET ASSETS:
At beginning of period 111,621,508 118,598,592 --
------------ ------------ -----------
At end of period $124,121,080 $ 44,947,882 $27,688,401
============ ============ ===========
*For the Money Market Fund, the Statement of Changes in Net Assets is for the
period from the start of business, April 5, 1995, to June 30, 1995.
- ------------------------------------------------------------------------------
For the Year Ended December 31, 1994
- ------------------------------------------------------------------------------
CASH LIQUID
MANAGEMENT ASSETS
FUND FUND
------------ ------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 3,492,618 $ 2,472,832
Distributions to shareholders from net investment
income (Note 2) (3,492,618) (2,472,832)
Net increase (decrease) in net assets from Fund
share transactions (Note 3) (578,137) 108,032,942
------------ ------------
Net increase (decrease) in net assets $ (578,137) $108,032,942
NET ASSETS:
At beginning of year 112,199,645 10,565,650
------------ ------------
At end of year $111,621,508 $118,598,592
============ ============
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Cash Management Fund
- -----------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------------------------------
1995<F3> 1994 1993 1992 1991<F1> 1990<F1>
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
INCOME FROM OPERATIONS:
Net investment income $0.0265 $0.0345 $0.0251 $0.0306 $0.0537 $0.0755
LESS DISTRIBUTIONS:
Dividends from net investment income ($0.0265) ($0.0345) ($0.0251) ($0.0306) ($0.0537) ($0.0755)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
TOTAL RETURN<F5> 2.68% 3.49% 2.54% 3.14% 5.51% 7.82%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $124,121 $111,622 $112,200 $161,986 $195,488 $250,658
RATIOS (As a percentage of average daily net assets)<F4>:
Expenses 0.750%<F2> 0.844% 0.674% 0.760% 0.746% 0.710%
Net investment income 5.286%<F2> 3.396% 2.512% 3.088% 5.442% 7.540%
<FN>
<F1> Audited by the Fund's previous auditors.
<F2> Computed on an annualized basis.
<F3> For the six months ended June 30, 1995 (unaudited).
Note: Certain of the per share amounts have been compiled using average shares outstanding.
<F4> Includes the Fund's share of Cash Management Portfolio's allocated income and expenses for the six months ended June 30, 1995
and for the period from May 2, 1994 to December 31, 1994.
<F5> Total return is calculated assuming a purchase at net asset value on the first day and sale at net asset value on the last
day of the period. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the payable
date. Total return is not computed on an annualized basis.
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Liquid Assets Fund
- -----------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED MARCH 31,
----------------------------------- ---------------------------------
1995<F4> 1994 1993<F3> 1993<F1> 1992<F1> 1991<F1>
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
INCOME (LOSS) FROM OPERATIONS:
Net investment income $0.0260 $0.0328 $0.0113 $0.0217 $0.0415 $0.0621
LESS DISTRIBUTIONS:
Dividends from net investment income ($0.0260) ($0.0328) ($0.0113) ($0.0217) ($0.0415) ($0.0621)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
TOTAL RETURN<F6> 2.41% 3.29% 1.14% 2.35% 4.38% 6.50%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $44,948 $118,599 $10,566 $18,553 $ 9,145 $19,996
RATIOS (As a percentage of average daily net assets)<F5>:
Expenses 0.86%<F2> 0.94% 1.49%<F2> 0.92% 1.23% 1.68%
Net investment income 5.18%<F2> 3.55% 1.66%<F2> 2.33% 4.30% 6.23%
For the periods presented below, the operating expenses of the Fund reflect an allocation of expenses to the administrator. Had
such actions not been taken, net investment income per share and the ratios would have been as follows:
<CAPTION>
YEAR ENDED YEAR ENDED MARCH 31,
DECEMBER 31, -------------------------------
1993<F3> 1993<F1> 1992<F1> 1991<F1>
--------- ------- ------- -------
<S> <C> <C> <C> <C>
Net investment income per share $0.0092 $0.0171 $0.0372 $0.0570
RATIOS (as a percentage of average daily net assets)<F5>:
Expenses 1.80%<F2> 1.42% 1.73% 2.19%
Net investment income 1.35%<F2> 1.85% 3.80% 5.72%
<FN>
<F1> Audited by the Fund's previous auditors.
<F2> Computed on an annualized basis.
<F3> For the nine months ended December 31, 1993.
<F4> For the six months ended June 30, 1995 (unaudited).
<F5> Includes the Fund's share of Cash Management Portfolio's allocated income and expenses for the six months ended June 30, 1995
and for the period from May 2, 1994 to December 31, 1994.
<F6> Total return is calculated assuming a purchase at net asset value on the first day and sale at net asset value on the last
day of the period. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on the payable
date. Total return is not computed on an annualized basis.
</TABLE>
See notes to financial statements
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Market Fund
- --------------------------------------------------------------------------------
For the period from the start of business, April 5, 1995 to June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, beginning of period $ 1.00
--------
INCOME FROM OPERATIONS:
Net investment income $ 0.0104
LESS DISTRIBUTIONS:
Dividends from net investment income $(0.0104)
--------
NET ASSET VALUE, end of period $ 1.00
========
TOTAL RETURN<F3> 0.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $ 27,688
RATIOS (as a percentage of average daily net assets)<F2>
Net expenses 1.69%<F1>
Net investment income 4.37%<F1>
For the period presented, the operating expenses of the Fund reflect a
preliminary allocation of expenses to the administrator. Had such actions not
been taken, net investment income per share and the ratios would have been as
follows:
NET INVESTMENT INCOME PER SHARE $ 0.0097
--------
RATIOS (as a percentage of average daily net assets)<F2>:
Expenses 2.00%<F1>
Net investment income 4.06%<F1>
<F1> Computed on an annualized basis.
<F2> Includes the Fund's share of Cash Management Portfolio's allocated income
and expenses.
<F3> Total return is calculated assuming a purchase at net asset value on the
first day and sale at net asset value on the last day of the period.
Dividends and distributions, if any, are assumed to be reinvested at the
net asset value on the payable date. Total return is not computed on an
annualized basis.
See notes to financial statements
</TABLE>
<PAGE>
(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
registered under the Investment Company Act of 1940, as amended, as diversified,
open-end management investment companies. Liquid Assets Fund and Money Market
Fund are series of Eaton Vance Liquid Assets Trust, a Massachusetts Business
Trust which is also registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment companies. 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
(63.3% for Cash Management Fund, 22.8% for Liquid Assets Fund and 13.9% for
Money Market Fund at June 30, 1995). 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 the Funds' 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 VALUATIONS -- Valuation of securities by the Portfolio is
discussed in Note 1 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.
B. INCOME -- The Funds' 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 determined in accordance with generally accepted
accounting principles.
C. FEDERAL TAXES -- The Funds' policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable income, including any
net realized gain on investments. Accordingly, no provision for federal income
or excise tax is necessary. At December 31, 1994, Liquid Assets Fund, for
federal income tax purposes, had a capital loss carryover of $8,006, which
will reduce the Fund's taxable income arising from future net realized gain on
investment, 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. Such capital loss carryover will expire on December 31, 2001.
D. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by the Funds in connection
with their organization, including registration costs, are being amortized on
the straight-line basis over five years.
E. OTHER -- Investment transactions are accounted for on a trade date basis.
F. INTERIM FINANCIAL INFORMATION -- The interim financial statements relating
to June 30, 1995, and the period then ended have not been audited by
independent certified public accountants, but in the opinion of the Funds'
management, reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
<PAGE>
- ------------------------------------------------------------------------------
(2) DISTRIBUTIONS TO SHAREHOLDERS
The net 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. Dividends are paid monthly. Dividends 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 statements
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. The
tax treatment of distributions for the calendar year will be reported to
shareholders prior to February 1, 1996 and will be based on tax accounting
methods which may differ from amounts determined for financial statement
purposes.
<PAGE>
- ------------------------------------------------------------------------------
(3) SHARES OF BENEFICIAL INTEREST
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Transactions in Trust shares were as follows:
<TABLE>
<CAPTION>
CASH MANAGEMENT FUND
--------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
------------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- ------------- --------------
<S> <C> <C> <C> <C>
Sales 285,457,812 $ 285,457,812 746,678,214 $ 746,678,214
Issued to Shareholders electing to receive payments of
distributions in Fund shares 1,987,184 1,987,184 1,864,353 1,864,353
Redemptions (274,945,424) (274,945,424) (749,120,704) (749,120,704)
------------- -------------- ------------ -------------
Net increase (decrease) 12,499,572 $ 12,499,572 (578,137) $ (578,137)
============= ============= ============ =============
<CAPTION>
LIQUID ASSETS FUND
--------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
------------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- ------------- --------------
<S> <C> <C> <C> <C>
Sales 53,283,387 $ 53,283,387 475,275,080 $ 475,275,080
Issued to Shareholders electing to receive payments of
distributions in Fund shares 1,062,837 1,062,837 1,547,336 1,547,336
Redemptions (127,996,934) (127,996,934) (368,789,474) (368,789,474)
------------- -------------- ------------ -------------
Net increase (decrease) (73,650,710) ($ 73,650,710) 108,032,942 $ 108,032,942
============= ============== ============ =============
<CAPTION>
MONEY MARKET FUND
-----------------------------
FOR THE PERIOD FROM THE START
OF BUSINESS, APRIL 5, 1995,
TO JUNE 30, 1995 (UNAUDITED)
-----------------------------
SHARES AMOUNT
------------- --------------
<S> <C> <C>
Sales 81,042,961 $ 81,042,961
Issued to shareholders electing to receive
payments of distributions in Fund shares 26,077 26,077
Redemptions (53,380,637) (53,380,637)
------------ -------------
Net increase 27,688,401 $ 27,688,401
============ =============
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
(4) TRANSACTIONS WITH AFFILIATES
Eaton Vance Management (EVM) serves as the administrator of 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 period from the start of business, April 5, 1995, to June 30, 1995
$7,210 of expenses related to the operation of the Fund were allocated, on a
preliminary basis, 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 the Fund out of such
investment adviser fee. Investors Bank & Trust Company (IBT), an affiliate of
EVM, serves as custodian to the Funds and 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 Fund or the
Portfolio maintains with IBT. Certain of the officers and Trustees of the
Funds and Portfolios are officers and directors/trustees of the above
organizations (Note 5).
- ------------------------------------------------------------------------------
(5) DISTRIBUTION PLANS
Money Market Fund and Liquid Assets Fund have adopted distribution plans
(individually the "Plan" and collectively the "Plans") pursuant to Rule 12b-1
under the Investment Company Act of 1940, as amended. The Plan for Money
Market Fund requires the Fund to pay the Principal Underwriter, Eaton Vance
Distributors, Inc. (EVD), amounts equal to 1/365th of 0.75% of the Fund's
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) distribution fees calculated by applying the rate of
1% over the prevailing prime rate to the outstanding balance of Uncovered
Distribution Charges of EVD reduced by the aggregate amount of contingent
deferred sales charges (Note 6) and amounts theretofore paid to EVD. For the
period ended June 30, 1995, Money Market Fund paid or accrued $17,834 to or
payable to EVD, representing 0.75% (annualized) of the Fund's average daily
net assets. At June 30, 1995, the amount of Uncovered Distribution Charges of
EVD calculated under the Plans for Money Market Fund and Liquid Assets Fund
were approximately $945,000 and $2,514,000, respectively.
In addition, the Plans authorize the Funds to make payments of service fees
to the Principal Underwriter, Authorized Firms and other persons in amounts
not exceeding 0.25% of each Fund's average daily net assets. The Trustees of
the Funds have initially implemented the Plans by authorizing the Funds to
make quarterly service fee payments to the Principal Underwriter and
Authorized Firms in amounts not expected to exceed 0.15% (0.25% for Liquid
Assets Fund) per annum of each Fund's average daily net assets based on the
value of Fund shares sold by such persons and remaining outstanding for at
least one year. For the period ended June 30, 1995, Liquid Assets Fund paid or
accrued service fees to or payable to EVD in the amount of $11,926. It is
currently anticipated that the Money Market Fund will begin accruing service
fees during the quarter ending June 30, 1996. Service fee payments are made
for personal services and/or maintenance of shareholder accounts. Service fees
paid to EVD and Authorized Firms are separate and distinct from the sales
commissions and distribution fees payable by a Fund to EVD, and as such are
not subject to automatic discontinuance when there are no outstanding
Uncovered Distribution Charges of EVD.
Certain of the officers and Trustees of the Funds are officers or directors
of EVD.
<PAGE>
- ------------------------------------------------------------------------------
(6) CONTINGENT DEFERRED SALES CHARGES
A contingent deferred sales charge (CDSC) is imposed on any redemption of
shares from either Money Market Fund or Liquid Assets Fund made within six
years of purchase. Generally, the CDSC is based upon the lower of the net
asset value at date of redemption or date of purchase. No charge is levied on
shares acquired by reinvestment of dividends or capital gain distributions.
The CDSC is imposed at rates that begin at 5% in the case of redemptions in
the first and second year after purchase (6% and 5%, respectively, for shares
of Liquid Assets Fund purchased prior to August 1, 1994), declining one
percentage point each subsequent year. No CDSC is levied on shares which have
been sold to EVM or its affiliates or to their respective employees or
clients. CDSC charges are paid to EVD to reduce the amount of Uncovered
Distribution Charges calculated under each Fund's Distribution Plan. CDSC
charges received when no Uncovered Distribution Charges exist will be credited
to the Fund. EVD received approximately $55,000 and $368,000 of CDSC paid by
shareholders for the period ended June 30, 1995 for the Money Market Fund and
Liquid Assets Fund, respectively.
- ------------------------------------------------------------------------------
(7) INVESTMENT TRANSACTIONS
Increases and decreases in the Funds' investment in the Portfolio for the
period ended June 30, 1995 are as follows:
CASH MANAGEMENT LIQUID ASSETS MONEY MARKET
FUND* FUND* FUND**
--------------- ------------- ------------
Increase $289,525,688 $ 58,604,048 $80,897,892
Decrease 275,440,626 129,753,493 53,391,401
*For the six months ended June 30, 1995 (Unaudited).
**For the period from the start of business, April 5, 1995, to June 30, 1995
(Unaudited).
<PAGE>
CASH MANAGEMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995
(UNAUDITED)
- ------------------------------------------------------------------------------
COMMERCIAL PAPER - 79.0%
- ------------------------------------------------------------------------------
RATINGS (UNAUDITED)
- -----------
PRINCIPAL
STANDARD AMOUNT VALUE
& POOR'S MOODY'S (000 OMITTED) (NOTE 1)
- ------------------------------------------------------------------------------
AGRICULTURE - 1.5%
A-1+ P-1 $ 3,000 Cargill Inc. 5.70s, 8/1/95 $ 2,985,275
------------
AUTOMOTIVE - 0.8%
A-1 P-1 $ 1,500 Ford Motor Credit Corp.
5.94s, 7/6/95 $ 1,498,763
------------
BANKING & FINANCE - 18.0%
A-1 P-1 $ 1,078 American Express Credit
Corp. 5.80s, 7/12/95 $ 1,076,090
A-1+ P-1 3,000 Asset Securitization Coop.
Corp. 5.93s, 7/12/95 2,994,564
A-1+ P-1 1,000 Asset Securitization Coop.
Corp. 5.95s, 7/17/95 997,356
A-1+ P-1 1,000 Associates Corp. of No.
America 5.94s, 7/5/95 999,340
A-1+ P-1 1,400 Associates Corp. of No.
America 6.00s, 7/17/95 1,396,226
A-1+ P-1 1,400 Associates Corp. of No.
America 5.98s, 7/25/95 1,394,419
A-1+ P-1 2,000 Associates Corp. of No.
America 5.87s, 8/1/95 1,989,891
A-1 P-1 4,000 CXC Incorporated 5.95s,
7/24/95 3,984,794
A-1+ P-1 2,000 CIESCO 6.00s, 7/19/95 1,994,000
A-1+ P-1 1,500 CIESCO 5.92s, 7/24/95 1,494,327
A-1+ P-1 2,000 CIESCO 5.87s, 8/21/95 1,983,368
A-1+ P-1 3,000 Corporate Asset Funding Co.
Inc. 5.98s, 7/25/95 1,989,387
A-1+ P-1 2,000 Corporate Asset Funding Co.
Inc. 5.97s, 8/2/95 2,988,040
A-1+ P-1 1,000 Corporate Asset Funding Co.
Inc. 5.92s, 8/21/95 991,613
A-1 P-1 3,000 Corporate Receivables Corp.
5.95s, 7/19/95 2,991,075
A-1 P-1 1,500 Heller Financial Inc.
5.94s, 7/6/95 1,498,763
A-1+ P-1 2,500 Norwest Financial Inc.
5.84s, 7/18/95 2,493,106
A-1+ P-1 2,500 Norwest Financial Inc.
5.75s, 8/8/95 2,484,826
------------
$ 35,741,185
------------
CREDIT UNION - 4.0%
A-1+ P-1 $ 6,000 Central Corporate Credit
Union 6.20s, 7/5/95 $ 5,995,867
A-1+ P-1 2,000 US Central Credit Union
5.95s, 7/17/95 1,994,711
------------
$ 7,990,578
------------
ELECTRICAL EQUIPMENT &
ELECTRONICS - 3.4%
A-1+ P-1 $ 1,500 General Electric Capital
Corp. 5.92s, 7/7/95 $ 1,498,520
A-1+ P-1 2,000 General Electric Capital
Corp. 5.95s, 7/14/95 1,995,703
A-1+ P-1 1,300 General Electric Capital
Corp. 5.98s, 7/24/95 1,295,038
A-1+ P-1 1,000 General Electric Capital
Corp. 5.99s, 7/24/95 996,173
A-1+ P-1 1,000 General Electric Capital
Corp. 6.00s, 7/31/95 995,000
------------
$ 6,780,434
------------
FOOD & BEVERAGES - 5.6%
A-1+ P-1 $ 3,000 Coca-Cola Co. 5.73s,
8/25/95 $ 2,973,737
A-1+ P-1 1,000 Coca-Cola Co. 5.65s,
8/29/95 990,740
A-1+ P-1 2,000 Coca-Cola Co. 5.78s,
9/21/95 1,973,669
A-1+ P-1 2,405 Nestle Capital Corp. 5.83s,
7/5/95 2,403,442
A-1+ P-1 2,781 Nestle Capital Corp. 5.94s,
7/21/95 2,771,823
------------
$ 11,113,411
------------
HOUSEHOLD PRODUCTS - 4.7%
A-1+ P-1 $ 2,000 Procter & Gamble Co. 5.92s,
7/12/95 $ 1,996,382
A-1+ P-1 3,000 Procter & Gamble Co. 5.98s,
7/13/95 2,994,020
A-1+ P-1 2,400 Unilever Capital Corp.
5.98s, 7/6/95 2,398,007
A-1+ P-1 2,019 Unilever Capital Corp.
5.75s, 8/17/95 2,003,844
------------
$ 9,392,253
------------
INSURANCE - 18.2%
A-1+ P-1 $ 3,000 AIG Funding Inc. 5.97s,
7/6/95 $ 2,997,513
A-1+ P-1 2,000 APC Funding Corp. 6.00s,
7/14/95 1,995,667
A-1+ P-1 1,700 APC Funding Corp. 5.87s,
8/31/95 1,683,091
A-1+ P-1 2,000 American General Finance
Corp. 5.95s, 7/20/95 1,993,720
A-1+ P-1 1,500 American General Finance
Corp. 5.94s, 7/25/95 1,494,060
A-1+ P-1 2,000 American General Finance
Corp. 5.86s, 8/30/95 1,980,467
A-1+ P-1 2,425 John Hancock Capital Corp.
5.93s, 7/17/95 2,418,609
A-1+ P-1 4,000 Marsh & McLennan Cos. Inc.
6.20s, 7/5/95 3,997,244
A-1+ P-1 3,869 Metlife Funding Inc. 5.95s,
8/9/95 3,844,061
A-1+ P-1 1,400 Prudential Funding Corp.
5.87s, 7/10/95 1,397,946
A-1+ P-1 2,000 Prudential Funding Corp.
5.90s, 8/4/95 1,988,862
A-1+ P-1 2,000 SAFECO Credit Co. Inc.
5.85s, 9/19/95 1,974,000
A-1+ P-1 2,000 SAFECO Credit Co. Inc.
5.87s, 9/19/95 1,973,911
A-1 P-1 1,500 Transamerica Finance Corp.
5.96s, 7/13/95 1,497,020
A-1+ P-1 5,000 USAA Capital Corp. 5.85s,
8/22/95 4,957,750
------------
$ 36,193,921
------------
LEASING - 3.0%
A-1+ P-1 $ 2,400 Conag Finance Inc. 5.93s,
8/28/95 $ 2,377,071
A-1+ P-1 1,066 Greenwich Asset Funding
Inc. 5.95s, 7/27/95 1,061,419
A-1+ P-1 2,450 Greenwich Asset Funding
Inc. 5.95s, 8/24/95 2,428,134
------------
$ 5,866,624
------------
OFFICE EQUIPMENT - 2.4%
A-1+ P-1 $ 2,000 Pitney Bowes Credit Corp.
5.98s, 7/26/95 $ 1,991,699
A-1+ P-1 2,700 Pitney Bowes Credit Corp.
5.88s, 8/31/95 2,673,099
------------
$ 4,664,798
------------
OIL - 6.5%
A-1+ P-1 $ 3,000 Chevron Oil Finance Co.
5.93s, 7/20/95 $ 2,990,611
A-1+ P-1 3,000 Chevron Oil Finance Co.
5.92s, 8/11/95 2,979,773
A-1+ P-1 2,000 Chevron Oil Finance Co.
6.00s, 7/11/95 1,996,666
A-1+ P-1 3,000 Cortez Capital Corp. 5.94s,
7/26/95 2,987,625
A-1+ P-1 2,000 Exxon Imperial US Inc.
5.87s, 7/10/95 1,997,069
------------
$ 12,951,744
------------
PHARMACEUTICAL - 2.0%
A-1+ P-1 $ 4,000 Ciba-Giegy Corp. 6.00s,
7/12/95 $ 3,992,667
------------
PUBLISHING - 1.5%
A-1+ P-1 $ 3,000 Knight-Ridder Inc. 5.90s,
7/11/95 $ 2,995,083
------------
TELECOMMUNICATIONS - 3.4%
A-1+ P-1 $ 2,100 AT&T Corp. 5.77s, 9/27/95 $ 2,070,381
A-1+ P-1 4,700 Ameritech Capital Funding
Corp. 5.78s, 9/28/95 4,632,840
------------
$ 6,703,221
------------
TRANSPORTATION - 2.5%
A-1+ P-1 $ 5,000 United Parcel Service of
America 5.95s, 8/7/95 $ 4,969,435
------------
UTILITIES - 1.5%
A-1+ P-1 $ 3,000 Iowa-Illinois Gas &
Electric Co. 5.93s, 8/10/95 $ 2,980,239
------------
TOTAL COMMERCIAL PAPER, AT
AMORTIZED COST $156,819,631
------------
- ------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 21.0%
- ------------------------------------------------------------------------------
$ 4,000 FHLB Discount Notes 5.92s,
7/27/95 $ 3,982,898
4,000 FHLB Discount Notes 6.03s,
10/5/95 3,935,680
3,000 FHLMC Discount Notes 5.87s,
8/16/95 2,977,499
5,000 FNMA Discount Notes 5.90s,
7/5/95 4,996,722
4,000 FNMA Discount Notes 5.92s,
8/2/95 3,978,951
4,000 FNMA Discount Notes 5.92s,
8/3/95 3,978,293
6,000 FNMA Discount Notes 5.68s,
9/7/95 5,935,627
2,000 FNMA Discount Notes 5.79s,
9/14/95 1,975,875
10,000 SLMA Discount Notes 5.75s,
9/20/95 9,870,625
------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS, AT AMORTIZED
COST $ 41,632,170
------------
TOTAL INVESTMENTS - 100% $198,451,801
OTHER ASSETS, LESS
LIABILITIES 76,735
------------
NET ASSETS - 100% $198,528,536
============
The accompanying notes are an integral part of the financial statements
<PAGE>
CASH MANAGEMENT PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------
June 30, 1995 (unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments, at amortized cost and value (Note 1A) $198,451,801
Cash 68,106
Deferred organization expenses (Note 1D) 10,469
------------
Total assets $198,530,376
LIABILITIES:
Payable to affiliates -- custodian fee $ 643
Accrued expenses 1,197
------
Total liabilities 1,840
------------
NET ASSETS $198,528,536
============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $198,528,536
============
- ------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- ------------------------------------------------------------------------------
For the Six Months Ended June 30, 1995 (unaudited)
- ------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest Income $5,833,620
Expenses:
Investment adviser fee (Note 2) $483,258
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 3,238
Custodian fee (Note 2) 55,441
Audit and legal fees 8,221
Registration fees 3,209
Amortization of deferred organization expenses
(Note 1D) 2,489
Miscellaneous 4,791
--------
Total expenses 560,647
----------
Net investment income $5,272,973
==========
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994*
------------- -------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 5,272,973 $ 5,036,300
Capital transactions --
Contributions 429,027,628 866,299,681
Withdrawals (458,585,520) (648,622,546)
------------ ------------
Increase (decrease) in net assets resulting
from capital transactions ($ 29,557,892) $217,677,135
------------ ------------
Total increase (decrease) in net assets ($ 24,284,919) $222,713,435
NET ASSETS:
At beginning of period 222,813,455 100,020
------------ ------------
At end of period $198,528,536 $222,813,455
============ ============
- ------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- ------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994*
----------- -----------
RATIOS (AS A PERCENTAGE OF AVERAGE NET ASSETS):
Expenses 0.59%+ 0.58%+
Net investment income 5.50%+ 4.22%+
+ Computed on an annualized basis.
* For the period from the start of business, May 2, 1994, to December 31, 1994.
The accompanying notes are an integral part of the financial statements
<PAGE>
(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. Investment operations began on May 2, 1994, with the
acquisition of securities with an amortized cost and value of $282,781,862 in
exchange for interests in the Portfolio by the Portfolio's investors. The
following is a summary of significant accounting policies of the Portfolio.
The policies are in conformity with generally accepted accounting principles.
A. SECURITY VALUATION -- The Portfolio values investment securities utilizing
the amortized cost valuation technique permitted by Rule 2a-7 of the
Investment Company Act of 1940, pursuant to which the Portfolio must comply
with certain conditions. This technique involves initially valuing a portfolio
security at its cost and thereafter assuming a constant amortization to
maturity of any discount or premium. It is normal practice of the Portfolio to
hold portfolio securities to maturity and realize par value unless such sale
or other disposition is mandated by withdrawal requests or other extraordinary
circumstances.
B. INCOME -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or accretion of discount when required
for federal income tax purposes.
C. INCOME TAXES -- The Portfolio 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 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 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 taxable investment income, net
realized capital gains, and any other items of income, gain, loss, deduction
or credit.
D. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
E. OTHER -- Investment transactions are accounted for on the date the
securities are purchased or sold or the date on which they mature.
F. INTERIM FINANCIAL INFORMATION -- The interim financial statements relating
to June 30, 1995, and for the period then ended have not been audited by
independent certified public accountants, but in the opinion of the
Portfolio's management, reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
- ------------------------------------------------------------------------------
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR), a
wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation for
management and investment advisory services rendered to the Portfolio. The fee
is computed at the rate of 1/2 of 1% per annum of the Portfolio's average daily
net assets and amounted to $483,258 for the six months ended June 30, 1995.
Except as to Trustees of the Portfolio who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for the services to the
Portfolio out of such investment adviser fee.
Investors Bank & Trust Company (IBT), an affiliate of EVM and BMR, serves as
a custodian of the Portfolio. Pursuant to the custodian agreement, IBT
receives a fee which is reduced by certain credits based on the average daily
cash balances the Portfolio maintains with IBT.
Certain of the officers and Trustees of the Portfolio are officers and
directors/trustees of the above organizations.
<PAGE>
- ------------------------------------------------------------------------------
(3) LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR or
EVM in a $120 million unsecured line of credit agreement with a bank. The line
of credit consists of a $20 million committed facility and a $100 million
discretionary facility. Borrowings will be made by the Portfolio solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each portfolio or fund based on its
borrowings at an amount above either the bank's adjusted certificate of
deposit rate, a variable adjusted certificate of deposit rate, or a federal
funds effective rate. In addition, a fee computed at an annual rate of 1/4 of
1% of the $20 million committed facility and on the daily unused portion of
the $100 million discretionary facility is allocated among the participating
portfolios and funds at the end of each quarter. The Portfolio did not have
any significant borrowings or allocated fees during the period.
- ------------------------------------------------------------------------------
(4) INVESTMENTS
Purchases and sales (including maturities) of investments, during the six months
ended June 30, 1995, exclusive of U.S. Government securities aggregated
$645,788,681 and $632,109,612, respectively. Purchases and sales (including
maturities) of U.S. Government securities aggregated $163,151,745 and
$201,166,589, respectively.
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT MANAGEMENT
<C> <S> <C>
EATON VANCE OFFICERS INDEPENDENT TRUSTEES
MONEY MARKET M. DOZIER GARDNER DONALD R. DWIGHT
FUNDS President, Trustee President, Dwight Partners, Inc.
24 Federal Street (Eaton Vance Cash Management Chairman, Newspapers of
Boston, MA 02110 Fund only) New England, Inc.
H. DAY BRIGHAM, JR. SAMUEL L. HAYES, III
Vice President, Trustee Jacob H. Schiff Professor of
(Eaton Vance Cash Management Investment Banking, Harvard
Fund only) University Graduate School of
JAMES B. HAWKES Business Administration
President, Trustee NORTON H. REAMER
(Eaton Vance Liquid Assets President and Director, United Asset
Trust only) Management Corporation
MICHAEL B. TERRY JOHN L. THORNDIKE
Vice President Director, Fiduciary Company
JAMES L. O'CONNOR Incorporated
Treasurer JACK L. TREYNOR
THOMAS OTIS Investment Adviser and Consultant
Secretary
------------------------------------------------------------------------------
CASH MANAGEMENT OFFICERS INDEPENDENT TRUSTEES
PORTFOLIO M. DOZIER GARDNER DONALD R. DWIGHT
24 Federal Street President, Trustee President, Dwight Partners, Inc.
Boston, MA 02110 JAMES B. HAWKES Chairman, Newspapers of
Vice President, Trustee New England, Inc.
H. DAY BRIGHAM, JR. SAMUEL L. HAYES, III
Vice President, Trustee Jacob H. Schiff Professor of
MICHAEL B. TERRY Investment Banking, Harvard
Vice President University Graduate School of
and Portfolio Manager Business Administration
JAMES L. O'CONNOR NORTON H. REAMER
Treasurer President and Director, United Asset
THOMAS OTIS Management Corporation
Secretary JOHN L. THORNDIKE
Director, Fiduciary Company
Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
</TABLE>
<PAGE>
PORTFOLIO INVESTMENT ADVISER EATON VANCE [Logo]
Boston Management and Research CASH MANAGEMENT FUND
24 Federal Street
Boston, MA 02110
FUND ADMINISTRATOR EATON VANCE
Eaton Vance Management LIQUID ASSETS FUND
24 Federal Street
Boston, MA 02110
PRINCIPAL UNDERWRITER EATON VANCE
Eaton Vance Distributors, Inc. MONEY MARKET FUND
24 Federal Street
Boston, MA 02110
(617) 482-8260
CUSTODIAN
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
TRANSFER AGENT
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
SEMI-ANNUAL
This report must be preceded or accompanied by SHAREHOLDER REPORT
a current prospectus which contains more JUNE 30, 1995
complete information on the Fund, including
its distribution plan, sales charges and
expenses. Please read the prospectus
carefully before you invest or send money.
EATON VANCE CASH MANAGEMENT FUND
EATON VANCE LIQUID ASSETS FUND
EATON VANCE MONEY MARKET FUND
24 FEDERAL STREET
BOSTON, MA 02110 MMSRC
