TO SHAREHOLDERS
Eaton Vance Liquid Assets Trust paid to its shareholders monthly income
dividends totaling $0.032 per share during the year that ended December 31,
1994. Based on the dividends paid during the period and the Trust's constant
$1.00 share price, the Trust's annualized distribution rate on December 31, 1994
was 5.07 percent.
Of course, an investment in the Trust is neither insured nor guaranteed by the
U.S. government and there can be no assurance that the Trust will be able to
maintain a stable net asset value of $1.00 per share.
The economy continued to grow solidly throughout 1994. Third-quarter gross
domestic product rose 4.1 percent, matching the 4.1 percent gain in the second
quarter.
In an effort to keep inflation in check, the Federal Reserve raised short-term
rates six times during 1994. While the economy remained relatively strong,
inflation remained in the 2.7 percent range during the year. The Fed's actions
caused interest rates to rise throughout the period, especially in money market
yields.
During 1994, the average weighted maturity in the Portfolio was 31 days. At a
time of rising interest rates, the relatively short average maturity helped the
Portfolio's performance.
Eaton Vance Liquid Assets Trust invests in a Portfolio of liquid short term
investments of the highest credit quality. All nongovernmental securities
acquired by the Portfolio are considered first tier securities. These are
securities that have been given the top rating by at least two nationally
recognized statistical rating organizations. The remainder are Government
Securities which are unrated but which we have determined are of either
comparable or superior quality to first tier securities.
Many analysts look for still higher interest rates during the first half of
1995. It would be expected that money market rates could increase further as a
result. Of course, it is impossible to predict future events with complete
accuracy, but investors can be assured that the Fund will strive to continue its
past practices to ensure that its Portfolio contains short-term investments of
the highest quality.
Sincerely,
/s/James B. Hawkes
James B. Hawkes
President
February 21, 1995
[PHOTO]
SHORT-TERM YIELDS ROSE DRAMATICALLY DURING 1994
This is a chart that describes the interest rates of 90-day Treasury bills
month-end yields during the period 1991 through 1994. The horizontal axis
denotes the start of each calendar year. The vertical axis denotes interest
rates, from 2 to 7 percent. The chart is entitled, "Short term yields rose
dramatically during 1994," and the chart cites its source, Bloomberg, L.P.
3-month
3-MO T-BILLS
(BE yield)
(GB3govt)
------------
Jan-91 6.38
Feb-91 6.26
Mar-91 5.93
Apr-91 5.69
May-91 5.69
Jun-91 5.69
Jul-91 5.68
Aug-91 5.48
Sep-91 5.25
Oct-91 4.95
Nov-91 4.46
Dec-91 3.96
- ---------------------------------
Jan-92 3.94
Feb-92 4.02
Mar-92 4.14
Apr-92 3.77
May-92 3.77
Jun-92 3.65
Jul-92 3.24
Aug-92 3.22
Sep-92 2.74
Oct-92 3.02
Nov-92 3.34
Dec-92 3.14
- ---------------------------------
Jan-93 2.97
Feb-93 3.00
Mar-93 2.96
Apr-93 2.96
May-93 3.12
Jun-93 3.08
Jul-93 3.10
Aug-93 3.07
Sep-93 2.98
Oct-93 3.11
Nov-93 3.21
Dec-93 3.09
- ---------------------------------
Jan-94 3.03
Feb-94 3.45
Mar-94 3.57
Apr-94 3.96
May-94 4.26
Jun-94 4.23
Jul-94 4.36
Aug-94 4.67
Sep-94 4.78
Oct-94 5.14
Nov-94 5.71
Dec-94 5.68
- ---------------------------------
Source: Bloomberg, L.P.
<PAGE>
------------------------------------------------
EATON VANCE LIQUID ASSETS TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
-----------------------------------------------------------------
December 31, 1994
------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
Investments in Cash Management Portfolio, at amortized
cost and value (Note 1A) $114,541,931
Receivable for Fund shares sold 5,108,653
------------
Total assets $119,650,584
LIABILITIES:
Payable for Fund shares redeemed $894,869
Dividends payable 83,682
Payable to Affiliates
Trustees' fees 276
Custodian fee 1,000
Accrued service fees (Note 4) 22,839
Accrued expenses 49,326
--------
Total Liabilities 1,051,992
------------
NET ASSETS (represented by paid-in capital for 118,598,592
shares outstanding) $118,598,592
------------
------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(Net assets divided by shares outstanding) $1.00
----
----
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF OPERATIONS
-----------------------------------------------------------------
For the year ended December 31, 1994
------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME (NOTE 1B):
Interest income $ 545,916
Interest income allocated from Portfolio 2,579,741
Expenses allocated from Portfolio (312,124)
----------
Total investment income $2,813,533
----------
EXPENSES --
Investment adviser fee (Note 3) $80,319
Compensation of Trustees not members of the Administrator's
organization (Note 3) 2,393
Custodian fee (Note 3) 18,811
Service fees (Note 4) 31,520
Registration costs 82,328
Transfer and dividend disbursing agent fees 69,026
Printing and postage 37,977
Audit and legal fees 17,292
Miscellaneous 1,035
-------
Total expenses 340,701
----------
Net investment income $2,472,832
----------
----------
</TABLE>
<TABLE>
-----------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
-----------------------------------------------------------------
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------
1994 1993<F1>
----------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations:
Net investment income $ 2,472,832 $ 177,667
Distributions paid to shareholders from net investment
income (Note 2) (2,472,832) (177,667)
Net increase (decrease) in net assets from Fund share
transactions (Note 6) 108,032,942 (7,987,268)
------------ -----------
Net increase (decrease) in net assets $108,032,942 $(7,987,268)
NET ASSETS:
At beginning of period 10,565,650 18,552,918
------------ -----------
At end of period $118,598,592 $10,565,650
------------ -----------
------------ -----------
<FN>
<F1>For the nine months ended December 31, 1993.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, YEAR ENDED MARCH 31,
----------------------- ---------------------------------------
1994 1993<F1> 1993<F3> 1992<F3> 1991<F3>
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03276 0.01133 0.02175 0.04155 0.06209
LESS DISTRIBUTIONS:
Dividends from net investment income (0.03276) (0.01133) (0.02175) (0.04155) (0.06209)
--------- --------- --------- --------- ---------
NET ASSET VALUE, end of year $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
TOTAL RETURN<F5> 3.29% 1.14% 2.35% 4.38% 6.50%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's omitted) $118,599 $10,566 $18,553 $9,145 $19,996
Ratio of expenses to average net assets 0.94%<F4> 1.49%<F2> 0.92% 1.23% 1.68%
Ratio of net investment income to average
net assets 3.55%<F4> 1.66%<F2> 2.33% 4.30% 6.23%
During each period presented below, the expenses relating to the operations of the Trust were reduced either by a reduction of the
investment advisory fee, an allocation of expenses to the investment advisor, or both. 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<F1> 1993<F3> 1992<F3> 1991<F3>
-------------------------------------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME PER SHARE $0.00919 $0.01708 $0.03719 $0.05701
RATIOS (As a percentage of
average net assets):
Expenses 1.80%<F2> 1.42% 1.73% 2.19%
======= ======= ======== =======
Net investment income 1.35%<F2> 1.85% 3.80% 5.72%
======= ======= ======== =======
<FN>
<F1> For the nine months ended December 31, 1993.
<F2> Computed on an annualized basis.
<F3> Audited by the Trust's previous auditors.
<F4>Includes the Trust's share of Cash Management Portfolio's allocated income
and expenses 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 a 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.
</TABLE>
<PAGE>
------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
The Trust is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end management investment company. On May 2, 1994, the Trust
transferred substantially all of its investable assets to the Cash Management
Portfolio (the Portfolio). The Trust invests all of its investable assets in
interests in the Portfolio, a New York Trust, having the same investment
objective as the Trust. The value of the Trust's investment in the Portfolio
reflects the Trust's proportionate interest in the net assets of the Portfolio
(51.40% at December 31, 1994). The performance of the Trust 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 Trust's financial statements. The
following is a summary of significant accounting policies consistently followed
by the Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
A. INVESTMENT VALUATION - Valuations of securities by the Fund is discussed in
Note 1 of the Portfolio's Notes to Financial Statements which are included
elsewhere in this report.
B. INCOME - The Trust's net investment income consists of the Trust's pro rata
share of the net investment income of the Portfolio, less all actual and accrued
expenses of the Trust determined in accordance with generally accepted
accounting principles. Prior to the Trust's investment in the Portfolio, the
Trust held its investments directly. For investments held directly, interest
income was determined on the basis of interest accrued, adjusted for
amortization of premium or discount when required for federal income tax
purposes.
C. FEDERAL TAXES - The Trust'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, 1994, the Fund, for federal income
tax purposes had a capital loss carryover of $8,006 which will reduce the
taxable income arising from future net realized gains 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. OTHER - Investment transactions are accounted for on a trade date basis.
- --------------------------------------------------------------------------------
(2) DISTRIBUTIONS TO SHAREHOLDERS
The net income of the Trust 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 of the Trust or, at the election of the shareholder,
in cash.
The Trust distinguishes between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a return of capital. Differences in the recognition or
classification of income between the financial statements and tax earnings and
profits which result in over- distributions for financial statement purposes
only are classified as distributions in excess of net investment income or
accumulated net realized gains. Permanent differences between book and tax
accounting relating to distributions are reclassified to paid-in capital.
<PAGE>
- --------------------------------------------------------------------------------
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Prior to May 2, 1994 (when the Trust transferred substantially all of its assets
to the Portfolio in exchange for an interest in the Portfolio), the Trust
retained Eaton Vance Management (EVM) as its investment adviser. The investment
adviser fee was earned by EVM as compensation for management and investment
advisory services rendered to the Trust. The fee was computed at the monthly
rate of 1/24 of 1% ( 1/2 of 1% per annum) of the Trust's average daily net
assets and amounted to $80,319 for the period from January 1, 1994, to May 1,
1994. Since May 2, 1994, Eaton Vance has served only as the administrator of the
Trust, 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. Except as to Trustees of the Trust and the Portfolio
who are not members of EVM's organization, officers and Trustees receive
remuneration for their services to the Trust out of such investment adviser fee.
Investors Bank & Trust Company (IBT), an affiliate of EVM, serves as custodian
of the Trust and the Portfolio. Pursuant to the respective custodian agreements,
IBT receives a fee reduced by credits which are determined based on the average
cash balances the Trust or the Portfolio maintains with IBT.
Certain of the officers and Trustees of the Trust and Portfolio are officers and
directors/trustees of the above organizations.
- --------------------------------------------------------------------------------
(4) DISTRIBUTION PLAN
The Trust has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Plan does not provide for annual
payments to the Trust's Principal Underwriter, Eaton Vance Distributors, Inc.
(EVD), for providing ongoing distribution services and facilities to the Trust.
However, the Plan does require the Trust to calculate Uncovered Distribution
Charges of the Principal Underwriter, which are equivalent to the sum of (i) 5%
of the aggregate amount received by the Trust 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 (see Note
5) paid to EVD. At December 31, 1994, outstanding Uncovered Distribution Charges
due EVD amounted to approximately $4,541,000.
In addition, the Plan authorizes the Trust to make service fee payments in
amounts up to .25% per annum of the Trust's average daily net assets to the
Principal Underwriter, Authorized Firms and other persons based on the value of
Trust shares sold and remaining outstanding for specified periods of time.
Service fees amounted to $31,520 for the year ended December 31, 1994.
Certain of the officers and Trustees of the Trust and Portfolio are officers or
directors of EVD.
<PAGE>
- --------------------------------------------------------------------------------
(5) CONTINGENT DEFERRED SALES CHARGE
A contingent deferred sales charge (CDSC) is imposed on any redemption of Trust
shares 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 declining rates that begin at 5% in the
case of redemptions in the first and second year after purchase (6% and 5%,
respectively, for shares purchased prior to August 1, 1994), declining one
percentage point each subsequent year. No CDSC is levied on shares which have
been sold to the Investment Adviser 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 the Trust's Distribution Plan.
Pursuant to the Trust's Distribution Plan, any CDSC received by the Principal
Underwriter when no outstanding Uncovered Distribution Charges exist is returned
to the Trust and included in the Trust's income from operations. For the year
ended December 31, 1994 approximately $798,000 of CDSC paid by shareholders was
received by EVD.
- --------------------------------------------------------------------------------
(6) 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).
Transactions in Trust shares were as follows:
YEAR ENDED DECEMBER 31,
------------------------------------------------------
1994 1993*
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------
Sales 475,275,080 $475,275,080 121,512,241 $121,512,241
Issued to shareholders
electing to receive
payments of
distributions in
Trust shares 1,547,336 1,547,336 65,412 65,412
Redemptions (368,789,474) (368,789,474) (129,564,921) (129,564,921)
------------- ------------- ------------- -------------
Net increase
(decrease) 108,032,942 $108,032,942 (7,987,268) $ (7,987,268)
============ ============= ============= =============
*For the nine months ended December 31, 1993.
- --------------------------------------------------------------------------------
(7) INVESTMENT TRANSACTIONS
On May 2, 1994, the Trust transferred substantially all of its assets to the
Portfolio in exchange for an interest in the Portfolio. Increases and decreases
in the Trust's investments in the Portfolio for the period from May 2, 1994, to
December 31, 1994 aggregated $243,140,946 and $213,905,028, respectively.
Purchases and sales and maturities of investment securities, other than U.S.
government securities, during the period from January 1, 1994 to May 1, 1994,
aggregated $26,650,860 and $34,484,764, respectively. Purchases and sales and
maturities of U.S. Government Securities during the period from January 1, 1994
to May 1, 1994 aggregate $433,879,905 and $436,988,395, respectively.
<PAGE>
INDEPENDENT AUDITORS' REPORT
---------------------------------------------------------------------------
To the Trustees and Shareholders of
Eaton Vance Liquid Assets Trust:
We have audited the accompanying statement of assets and liabilities of Eaton
Vance Liquid Assets Trust as of December 31, 1994 and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two fiscal years in the period then ended and the financial
highlights for each of the two years in the period then ended. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial
highlights for each of the three fiscal years in the period ended March 31,
1993, presented herein, were audited by other auditors whose report dated April
30, 1993 expressed an unqualified opinion on such financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned at
December 31, 1994, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Eaton
Vance Liquid Assets Trust as of December 31, 1994, the results of its operations
for the year then ended, the changes in its net assets for each of the two
fiscal years in the period then ended and the financial highlights for each of
the two years in the period then ended in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 3, 1995
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------
CASH MANAGEMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
---------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER - 66.97%
---------------------------------------------------------------------------------------------------------------------
RATINGS
(UNAUDITED)
------------------------- PRINCIPAL
STANDARD AMOUNT
& POOR'S MOODY'S (000 OMITTED) VALUE (NOTE 1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGRICULTURE - 1.86%
A-1+ P-1 $ 3,000 Cargill Financial Services Corp. 6.07s, 3/01/95 $ 2,970,156
A-1+ P-1 1,200 Cargill Financial Services Corp. 6.10s, 3/21/95 1,183,936
------------
$ 4,154,092
------------
AUTOMOTIVE - 0.90%
A-1 P-1 $ 2,000 Ford Motor Credit Co. 5.98s, 1/09/95 $ 1,997,342
------------
BANKING & FINANCE - 18.62%
A-1 P-1 $ 2,000 American Express Credit Corp. 5.60s, 1/18/95 $ 1,994,711
A-1+ P-1 3,000 Asset Securitization Coop. Corp. 5.60s, 1/10/95 2,995,801
A-1+ P-1 2,000 Asset Securitization Coop. Corp. 5.62s, 1/11/95 1,996,877
A-1+ P-1 1,000 Asset Securitization Coop. Corp. 5.73s, 1/23/95 996,498
A-1+ P-1 3,000 Associates Corp. of No. America 5.70s, 1/17/95 2,992,400
A-1+ P-1 2,500 Associates Corp. of No. America 5.40s, 1/05/95 2,498,500
A-1+ P-1 600 Associates Corp. of No. America 6.05s, 2/07/95 596,269
A-1 P-1 4,000 CXC Incorporated 6.05s, 1/18/95 3,988,572
A-1+ P-1 2,500 CIESCO 5.70s, 1/18/95 2,493,271
A-1+ P-1 1,500 CIESCO 5.42s, 1/23/95 1,495,032
A-1+ P-1 2,000 CIESCO 5.92s, 2/02/95 1,989,476
A-1+ P-1 2,000 Corporate Asset Funding Co. 5.77s, 2/01/95 1,990,064
A-1+ P-1 4,000 Corporate Asset Funding Co. 6.00s, 2/06/95 3,976,000
A-1+ P-1 4,000 Corporate Receivables Corp. 5.90s, 1/13/95 3,992,134
A-1+ P-1 2,500 Delaware Funding Corp. 6.10s, 2/10/95 2,483,056
A-1+ P-1 2,000 Norwest Financial Inc. 5.20s, 1/04/95 1,999,133
A-1 P-1 3,000 Norwest Financial Inc. 5.45s, 1/04/95 2,998,637
------------
$ 41,476,431
------------
CONSUMER GOODS - 3.74%
A-1+ P-1 $ 5,000 Coca-Cola Co. 5.95s, 2/28/95 $ 4,952,069
A-1+ P-1 1,000 Heinz (H.J.) Co. 5.90s, 1/05/95 999,344
A-1+ P-1 2,400 Heinz (H.J.) Co. 6.00s, 2/07/95 2,385,200
------------
$ 8,336,613
------------
CREDIT UNION - 3.04%
A-1+ P-1 $ 1,200 AI Credit Corp. 5.90s, 2/06/95 $ 1,192,920
A-1+ P-1 2,600 AI Credit Corp. 6.09s, 2/06/95 2,584,166
A-1+ P-1 3,000 Mid-States Corp. Federal Credit Union 6.05s, 1/12/95 2,994,454
------------
$ 6,771,540
------------
The accompanying notes are an integral part of the financial statements.
<PAGE>
PORTFOLIO OF INVESTMENTS (Continued)
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER - (Continued)
---------------------------------------------------------------------------------------------------------------------
RATINGS
(UNAUDITED)
------------------------- PRINCIPAL
STANDARD AMOUNT
& POOR'S MOODY'S (000 OMITTED) VALUE (NOTE 1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ELECTRICAL EQUIPMENT & ELECTRONICS - 5.59%
A-1+ P-1 $ 1,000 General Electric Capital Corp. 5.40s, 1/12/95 $ 998,350
A-1+ P-1 1,000 General Electric Capital Corp. 5.35s, 1/19/95 997,325
A-1+ P-1 1,500 General Electric Capital Corp. 5.90s, 1/24/95 1,494,346
A-1+ P-1 3,000 General Electric Capital Corp. 5.55s, 1/09/95 2,996,300
A-1+ P-1 2,000 General Electric Capital Corp. 6.03s, 2/07/95 1,987,605
A-1+ P-1 4,000 Motorola Credit Corp. 6.00s, 1/25/95 3,984,000
------------
$ 12,457,926
------------
INSURANCE - 14.98%
A-1+ P-1 $ 4,000 APC Funding Corp. 5.88s, 1/23/95 $ 3,985,639
A-1+ P-1 600 American General Finance Corp. 5.60s, 1/12/95 598,973
A-1+ P-1 3,000 American General Finance Corp. 5.75s, 1/12/95 2,991,375
A-1+ P-1 700 American General Finance Corp. 6.08s, 2/13/95 694,917
A-1+ P-1 2,000 American General Finance Corp. 6.05s, 2/22/95 1,982,522
A-1+ P-1 3,300 Metlife Funding Inc. 5.48s, 1/26/95 3,287,441
A-1+ P-1 2,000 Prudential Funding Corp. 6.05s, 2/21/95 1,982,858
A-1+ P-1 2,000 Prudential Funding Corp. 6.10s, 3/30/95 1,970,178
A-1+ P-1 2,000 Prudential Funding Corp. 6.18s, 3/27/95 1,970,816
A-1+ P-1 4,000 SAFECO Credit Co., 6.25s, 3/14/95 3,949,999
A-1+ P-1 2,000 SAFECO Credit Co., 6.20s, 3/16/95 1,974,511
A-1 P-1 2,000 Transamerica Finance Corp. 6.00s, 1/17/95 1,994,666
A-1+ P-1 2,000 USAA Capital Corp. 5.73s, 1/12/95 1,996,498
A-1+ P-1 2,000 USAA Capital Corp. 5.37s, 1/03/95 1,999,403
A-1+ P-1 2,000 USAA Capital Corp. 6.10s, 2/13/95 1,985,428
------------
$ 33,365,224
------------
LEASING - 0.90%
A-1 P-1 $ 2,000 AML Funding Inc. 6.10s, 1/12/95 $ 1,996,272
------------
OFFICE EQUIPMENT - 2.90%
A-1+ P-1 $ 1,500 Pitney Bowes Credit Corp. 5.95s, 1/11/95 $ 1,497,521
A-1+ P-1 1,200 Pitney Bowes Credit Corp. 5.92s, 1/03/95 1,199,605
A-1+ P-1 3,800 Pitney Bowes Credit Corp. 6.03s, 2/15/95 3,771,359
------------
$ 6,468,485
------------
OIL - 5.55%
A-1+ P-1 $ 3,000 Chevron Oil Finance Co. 5.90s, 1/20/95 $ 2,990,658
A-1+ P-1 3,000 Chevron Oil Finance Co. 5.70s, 1/27/95 2,987,650
A-1+ P-1 1,500 Chevron Oil Finance Co. 5.48s, 1/06/95 1,498,858
A-1 P-1 1,900 American Trading & Production 6.00s, 1/12/95 1,896,517
A-1+ P-1 3,000 Cortez Capital Corp. 6.06s, 1/17/95 2,991,920
------------
$ 12,365,603
------------
The accompanying notes are an integral part of the financial statements.
<PAGE>
PORTFOLIO OF INVESTMENTS (Continued)
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER - (Continued)
---------------------------------------------------------------------------------------------------------------------
RATINGS
(UNAUDITED)
------------------------- PRINCIPAL
STANDARD AMOUNT
& POOR'S MOODY'S (000 OMITTED) VALUE (NOTE 1)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SPECIALTY RETAILER - 1.77%
A-1+ P-1 $ 4,000 Melville Corp. 6.07s, 3/21/95 $ 3,946,719
------------
TELECOMMUNICATIONS - 4.44%
A-1 P-1 $ 2,000 American Telephone & Telegraph Co. Capital Corp.
6.18s, 2/27/95 $ 990,215
A-1 P-1 3,000 American Telephone & Telegraph Co. Capital Corp.
6.15s, 3/27/95 2,956,437
A-1+ P-1 1,000 Ameritech Capital Funding Corp 6.08s, 2/13/95 992,738
A-1+ P-1 3,000 Ameritech Capital Funding Corp 6.13s, 2/23/95 2,972,926
A-1+ P-1 2,000 Ameritech Capital Funding Corp. 6.04s, 2/27/95 1,980,874
------------
$ 9,893,190
------------
UTILITIES - 2.68%
A-1+ P-1 $ 4,000 Iowa-Illinois Gas & Electric 5.92s, 2/02/95 $ 3,978,952
A-1 P-1 2,000 Potomac Electric Power Co. 6.03s, 1/18/95 1,994,305
------------
$ 5,973,257
------------
TOTAL COMMERCIAL PAPER, AT AMORTIZED COST $149,202,694
------------
------------
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 33.0%
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,900 FNMA Discount Notes 5.55s, 1/09/95 $ 1,897,657
5,000 FNMA Discount Notes 5.85s, 1/30/95 4,976,438
3,600 FNMA Discount Notes 5.96s, 1/31/95 3,582,120
8,000 FNMA Discount Notes 5.87s, 1/31/95 7,960,866
5,000 FNMA Discount Notes 5.88s, 2/08/95 4,968,967
3,995 FNMA Discount Notes 6.04s, 2/15/95 3,964,838
4,700 FNMA Discount Notes 5.99s, 2/22/95 4,659,334
4,300 FNMA Discount Notes 6.05s, 2/23/95 4,261,701
3,575 FNMA Discount Notes 6.05s, 2/27/95 3,540,755
2,675 FNMA Discount Notes 6.08s, 2/27/95 2,649,249
5,900 FFCB Discount Notes 5.86s, 1/06/95 5,895,222
4,500 FHLMC Discount Notes 5.55s, 1/03/95 4,498,613
5,250 FHLMC Discount Notes 5.55s, 1/04/95 5,247,572
13,000 FHLMC Discount Notes 5.90s, 1/24/95 12,950,997
2,500 FHLMC Discount Notes 6.01s, 2/15/95 2,481,218
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS, AT AMORTIZED COST $ 73,535,547
------------
TOTAL INVESTMENTS - 99.97% $222,738,241
OTHER ASSETS, LESS LIABILITIES - 0.03% 75,214
------------
NET ASSETS - 100% $222,813,455
------------
------------
The accompanying notes are an integral part of the financial statements.
<PAGE>
------------------------------------------------
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
December 31, 1994
- --------------------------------------------------------------------------------
ASSETS:
Investments, at amortized cost and value (Note 1A) $ 222,738,241
Cash 73,117
Deferred organization expenses (Note 1D) 12,958
-------------
Total assets 222,824,316
LIABILITIES:
Accrued expenses 10,861
-------------
NET ASSETS $ 222,813,455
-------------
-------------
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and withdrawals $ 222,813,455
-------------
-------------
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the period from the start of business, May 2, 1994, to December 31, 1994
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest Income $5,733,942
Expenses:
Investment adviser fee (Note 2) $ 597,131
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 5,356
Custodian fee (Note 2) 69,593
Audit and legal fees 23,364
Miscellaneous 2,198
----------
Total expenses 697,642
----------
Net investment income $5,036,300
----------
----------
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the period from the start of business, May 2, 1994, to December 31, 1994
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 5,036,300
Capital transactions -
Contributions 866,299,681
Withdrawals (648,622,546)
--------------
Increase in net assets resulting from capital
transactions $ 217,677,135
--------------
Total increase in net assets $ 222,713,435
NET ASSETS:
At beginning of period 100,020
--------------
At end of period $ 222,813,455
--------------
--------------
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
For the period from the start of business, May 2, 1994, to December 31, 1994
- --------------------------------------------------------------------------------
RATIOS (AS A PERCENTAGE OF AVERAGE NET ASSETS):
Expenses 0.58%+
Net investment income 4.22%+
+ Annualized.
The accompanying notes are an integral part of the financial statements.
<PAGE>
------------------------------------------------
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 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 the normal practice of the Portfolio to hold
portfolio securities to maturity and realize par value unless such sale or other
disposition is mandated by withdrawal requests or other extraordinary
circumstances.
B. INCOME - Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or accretion of discount when required for
federal income tax purposes.
C. INCOME TAXES - The Portfolio 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 investments
are purchased or sold or the date on which they mature.
<PAGE>
- --------------------------------------------------------------------------------
(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 $597,131 for the period from the start of business,
May 2, 1994 to December 31, 1994. 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.
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.
- --------------------------------------------------------------------------------
(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% on
the $20 million committed facility and on the daily unused portion of the $100
million discretionary facility is allocated among the participating funds and
portfolios 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 period
ended December 31, 1994, exclusive of U.S. Government securities aggregated
$896,432,907 and $823,611,005, respectively. Purchases and sales (including
maturities) of U.S. Government securities aggregated $943,882,951 and
$907,191,209, respectively.
<PAGE>
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Cash Management Portfolio:
We have audited the accompanying statement of assets and liabilities, of the
Cash Management Portfolio (the "Portfolio") including the portfolio of
investments as of December 31, 1994, and the related statement of operations,
changes in net assets and supplementary data for the period from May 2, 1994
(start of business), to December 31, 1994. These financial statements and
supplementary data are the reseponsibility of the Portfolio's management. Our
responsibility is to express an opinion on these financial statements and
supplementary data based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and supplementary data are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned at December 31, 1994 by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and supplementary data referred to
above present fairly, in all material respects, the financial position of Cash
Management Portfolio at December 31, 1994, the results of its operations,
changes in net assets and supplementary data for the period from May 2, 1994
(start of business), to December 31, 1994, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 3, 1995
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT MANAGEMENT
EATON VANCE OFFICERS INDEPENDENT
LIQUID ASSETS JAMES B. HAWKES TRUSTEES
TRUST President, Trustee DONALD R. DWIGHT
24 Federal Street MICHAEL B. TERRY President, Dwight
Boston, MA 02110 Vice President Partners, Inc.
JAMES L. O'CONNOR Chairman,
Treasurer Newspapers of
THOMAS OTIS New England, Inc.
Secretary SAMUEL L. HAYES, III
DOUGLAS C. MILLER Jacob H. Schiff
Assistant Treasurer Professor of
JANET E. SANDERS Investment Banking,
Assistant Treasurer Harvard University
and Graduate School of Business
Assistant Secretary Administration
NORTON H. REAMER
President and
Director, United
Asset Management
Corporation
JOHN L. THORNDIKE
Director, Fiduciary
Trust Company
JACK L. TREYNOR
Investment Adviser
and Consultant
- --------------------------------------------------------------------------------
CASH MANAGEMENT OFFICERS INDEPENDENT
PORTFOLIO M. DOZIER GARDNER TRUSTEES
24 Federal Street President, Trustee DONALD R. DWIGHT
Boston, MA 02110 JAMES B. HAWKES President, Dwight
Vice President, Partners, Inc.
Trustee Chairman,
H. DAY BRIGHAM, JR. Newspapers of
Vice President, New England, Inc.
Eaton Vance SAMUEL L. HAYES, III
Management, Trustee Jacob H. Schiff
MICHAEL B. TERRY Professor of
Vice President Investment Banking,
and Portfolio Harvard University
Manager Graduate School of
JAMES L. O'CONNOR Business Administration
Treasurer NORTON H. REAMER
THOMAS OTIS President and
Secretary Director, United Asset
DOUGLAS C. MILLER Management
Assistant Treasurer Corporation
JANET E. SANDERS JOHN L. THORNDIKE
Assistant Treasurer Director, Fiduciary
and Assistant Trust Company
Secretary JACK L. TREYNOR
Investment Adviser
and Consultant
<PAGE>
INVESTMENT ADVISER OF
CASH MANAGEMENT PORTFOLIO
Boston Management and Research
24 Federal Street
Boston, MA 02110
ADMINISTRATOR OF
EATON VANCE LIQUID ASSETS TRUST
Eaton Vance Management
24 Federal Street
Boston, MA 02110
PRINCIPAL UNDERWRITER
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(800) 225-6265
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
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
This report must be preceded or accompanied by a current prospectus which
contains more 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 LIQUID ASSETS TRUST
24 FEDERAL STREET
BOSTON, MA 02110 M-LXSRC
EATON VANCE
LIQUID ASSETS
TRUST
ANNUAL
SHAREHOLDER REPORT
DECEMBER 31, 1994
</TABLE>
