<PAGE>
The Eaton Vance Mutual Funds Trust
For the Government Obligations Portfolio
[LOGO]
Semi-Annual Shareholder Report
June 30, 1996
Investment Adviser of Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Administrator
Eaton Vance Management
24 Federal Street
Boston, MA 02110
(617) 482-8260
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
89 South Street
P.O. Box 1537
Boston MA 02205-1537
Transfer Agent
First Data Investor Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
Cooper & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
<PAGE>
------------------------------------
GOVERNMENT OBLIGATIONS PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(UNAUDITED)
- --------------------------------------------------------------------------
MORTGAGE PASS-THROUGHS - 95.6%
- --------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP.
PARTICIPATION CERTIFICATES:
4.5s, with maturity at 2000 $ 76,216 $ 75,515
4.75s, with various maturities to 2002 51,701 49,921
5s, with various maturities to 2003 683,625 663,275
5.25s, with various maturities to 2005 339,457 330,226
5.5s, with various maturities to 2011 1,443,309 1,412,270
5.75s, with maturity at 1998 48,704 48,397
6s, with various maturities to 2022 3,875,805 3,791,941
6.25s, with various maturities to 2013 894,471 880,315
6.5s, with various maturities to 2022 17,222,027 17,036,324
6.75s, with various maturities to 2011 9,413,781 9,387,830
7s, with various maturities to 2019 15,213,673 15,240,027
7.25s, with maturity at 2003 1,681,639 1,701,328
7.5s, with various maturities to 2019 18,627,494 18,894,615
7.75s, with various maturities to 2018 3,945,276 4,013,788
8s, with various maturities to 2026 23,936,241 24,496,191
8.25s, with various maturities to 2011 14,164,675 14,671,294
8.5s, with various maturities to 2024 26,636,612 27,639,102
8.75s, with various maturities to 2014 3,467,252 3,624,720
9s, with various maturities to 2020 9,193,261 9,663,744
9.25s, with various maturities to 2010 1,397,127 1,469,147
9.5s, with various maturities to 2016 1,205,494 1,277,484
10s, with various maturities to 2017 254,005 273,346
11s, with various maturities to 2019 2,515,577 2,762,146
12s, with various maturities to 2019 1,972,072 2,215,672
12.25s, with various maturities to 2019 3,874,545 4,384,844
12.5s, with various maturities to 2019 12,381,572 14,093,930
12.75s, with various maturities to 2015 1,723,639 1,964,522
13s, with various maturities to 2019 4,613,565 5,305,755
13.25s, with various maturities to 2019 1,304,427 1,506,962
13.5s, with various maturities to 2015 5,053,097 5,791,955
13.75s, with various maturities to 2014 100,265 115,714
14s, with various maturities to 2016 2,902,159 3,379,941
14.5s, with various maturities to 2014 267,986 315,517
14.75s, with maturity at 2010 988,292 1,159,863
15s, with various maturities to 2013 1,159,831 1,396,994
15.25s, with maturity at 2012 200,382 243,880
15.5s, with various maturities to 2012 256,629 309,581
16s, with maturity at 2012 199,767 245,828
16.25s, with various maturities to 2012 266,204 328,154
------------
$202,162,058
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION
MORTGAGE BACKED SECURITIES:
0.25s, with maturity at 2014 $ 252,251 $ 206,138
3.5s, with maturity at 2007 147,896 133,184
4.5s, with maturity at 1999 8,352 8,151
5s, with various maturities to 2017 1,107,289 1,055,420
5.25s, with various maturities to 2006 312,252 301,707
5.5s, with various maturities to 2006 920,029 905,511
5.75s, with maturity at 2003 180,847 177,369
6s, with various maturities to 2010 20,996,621 20,516,586
6.25s, with various maturities to 2007 619,196 610,385
6.5s, with various maturities to 2017 6,000,241 5,927,217
6.75s, with various maturities to 2007 1,215,111 1,209,923
7s, with various maturities to 2018 7,458,742 7,469,864
7.25s, with various maturities to 2017 2,104,500 2,118,493
7.5s, with various maturities to 2020 9,021,507 9,138,703
7.75s, with various maturities to 2008 1,671,032 1,702,921
8s, with various maturities to 2017 26,807,295 27,478,737
8.25s, with various maturities to 2020 13,700,154 14,180,706
8.5s, with various maturities to 2020 21,356,697 22,220,188
8.75s, with various maturities to 2017 1,483,911 1,558,292
9s, with various maturities to 2020 9,350,499 9,877,869
9.25s, with maturity to 2010 2,610,557 2,764,526
9.5s, with maturity at 2009 302,064 324,279
9.75s, with maturity at 2019 405,435 435,519
11s, with maturity at 2010 38,107 41,786
11.75s, with various maturities to 2015 2,413,146 2,709,251
12s, with various maturities to 2020 6,199,563 6,969,544
12.25s, with maturity at 2011 1,026,630 1,161,238
12.5s, with various maturities to 2021 9,834,957 11,254,647
12.75s, with various maturities to 2014 1,817,861 2,088,095
13s, with various maturities to 2019 8,038,583 9,226,322
13.25s, with various maturities to 2015 2,425,923 2,826,699
13.5s, with various maturities to 2015 4,044,538 4,688,853
13.75s, with various maturities to 2014 42,072 48,904
14s, with various maturities to 2014 1,017,222 1,197,914
14.25s, with maturity at 2014 364,159 431,970
14.5s, with various maturities to 2014 238,784 283,369
14.75s, with maturity at 2012 4,590,936 5,478,089
15s, with various maturities to 2013 3,750,652 4,471,705
15.5s, with maturity at 2012 1,098,107 1,341,837
15.75s, with maturity at 2011 34,951 42,260
16s, with maturity at 2012 418,791 518,080
------------
$185,102,251
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
MORTGAGE BACKED SECURITIES:
5.5s, with maturity at 1999 $ 51,893 $ 51,437
6.5s, with maturity at 2002 578,415 573,846
7.25s, with various maturities to 2022 4,439,272 4,419,115
7.5s, with maturity at 2017 1,090,447 1,095,456
8s, with various maturities to 2017 17,331,272 17,766,581
8.25s, with maturity at 2008 593,169 616,268
8.5s, with various maturities to 2018 4,880,292 5,088,542
9s, with various maturities to 2016 5,984,942 6,307,475
12s, with various maturities to 2015 4,102,088 4,653,494
12.5s, with various maturities to 2015 2,283,730 2,631,062
13s, with various maturities to 2014 1,382,625 1,613,099
13.5s, with various maturities to 2013 415,941 488,385
14s, with maturity at 2015 212,781 249,109
14.5s, with various maturities to 2014 514,293 608,930
15s, with various maturities to 2013 934,134 1,117,828
16s, with various maturities to 2012 428,999 525,138
------------
$ 47,805,765
------------
COLLATERALIZED MORTGAGE OBLIGATIONS:
Federal Home Loan Mtg. Corp.
Series 1327-F, 7.5%, due 2003,
Collateral 100% FHLMC PC $ 5,027,000 $ 5,077,275
Federal Home Loan Mtg. Corp.
Series 1058-F, 8.0%, due 2004,
Collateral 100% FHLMC PC 731,569 735,341
Federal Home Loan Mtg. Corp.
Series 1188-GC, 7.5%, due 2019,
Collateral 100% FHLMC PC 10,000,000 9,906,250
Federal National Mtg. Association
Series 93-73E, 6.35%, due 2019
Collateral 100% FNMA MBS 3,000,000 2,857,500
Guaranteed Mtg. Corp. III Series H2,
9%, due 2015, Collateral 100% FNMA MBS $ 724,215 $ 727,327
Salomon Brothers Mortage Securities II,
Inc. Series III, Class Z, 11.50%,
due 2015, Collateral 100%
GNMA/FNMA MBS 1,773,158 1,939,668
------------
$ 21,243,361
------------
TOTAL MORTGAGE PASS-THROUGHS
(identified cost, $455,768,443) $456,313,435
------------
- --------------------------------------------------------------------------
UNITED STATES TREASURY BONDS - 16.0%
- --------------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------
U.S. Treasury Bond, 12s, 8/15/13++ $50,000,000 $ 70,515,650
U.S. Treasury Bond, 7.125s, 2/15/23+ 6,000,000 6,065,628
------------
TOTAL UNITED STATES TREASURY BONDS
(identified cost, $67,368,569) $ 76,581,278
------------
- --------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.3%
- --------------------------------------------------------------------------
Banque National de Paris Cayman Time-
Deposit, 5.375%, 7/1/96 at amortized
cost $ 1,600,000 $ 1,600,000
------------
TOTAL INVESTMENTS - 111.9%
(identified cost, $524,737,012) $534,494,713
OTHER ASSETS, LESS LIABILITIES - (11.9%) (57,005,194)
------------
NET ASSETS - 100% $477,489,519
============
+Collateral for financial futures contracts held at June 30, 1996 (See Note 7).
++A portion of this security is on loan at June 30, 1996 (See Note 5).
The accompanying notes are an integral part
of the financial statements
<PAGE>
------------------------
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------
June 30, 1996 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments, at value (Note 1A) (identified cost,
$524,737,012) $534,494,713
Cash 4,303
Receivable for investments sold 1,395,756
Interest receivable 6,151,113
Deferred organization expenses (Note 1H) 8,873
------------
Total assets $542,054,758
LIABILITIES:
Payable for investments purchased $ 5,546,951
Payable for daily variation margin on open
financial futures contracts (Notes 1G) 442,416
Liability for collateral received for securities
loaned (Note 5) 58,467,600
Payable to affiliate --
Trustees' fees 4,796
Accrued expenses 103,476
-----------
Total liabilities 64,565,239
------------
NET ASSETS applicable to investors' interest in Portfolio $477,489,519
============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $468,059,857
Unrealized appreciation of investments and
financial futures contracts
(computed on the basis of identified cost) 9,429,662
------------
Total $477,489,519
============
The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENT OF OPERATIONS
- ------------------------------------------------------------------------------
For the Six Months Ended June 30, 1996 (Unaudited)
- ------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest income -- $ 23,187,139
Expenses --
Investment adviser fee (Note 3) $ 1,854,230
Compensation of Trustees not members of the
Administrator's organization (Note 3) 10,064
Interest expense (Note 5) 1,732,885
Custodian fee 116,413
Legal and accounting services 22,940
Amortization of organization expenses (Note 1H) 1,900
Miscellaneous 29,143
------------
Total expenses 3,767,575
------------
Net investment income $ 19,419,564
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) (identified cost
basis) --
Investment transactions $ (2,480,208)
Financial futures contracts 2,315,313
------------
Net realized loss on investments $ (164,895)
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(17,713,327)
Financial futures contracts 246,029
------------
Change in unrealized depreciation of
investments (17,467,298)
------------
Net realized and unrealized loss on
investments $(17,632,193)
------------
Net increase in net assets resulting from operations $ 1,787,371
============
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, 1996 DECEMBER 31,
(UNAUDITED) 1995
------------- -------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 19,419,564 $ 41,114,428
Net realized loss on investments (164,895) (15,704,668)
Change in unrealized appreciation
(depreciation) of investments (17,467,298) 44,867,799
------------ ------------
Net increase in net assets from
operations $ 1,787,371 $ 70,277,559
------------ ------------
Capital transactions --
Contributions $ 32,089,492 $ 95,964,004
Withdrawals (78,176,249) (160,122,171)
------------ ------------
Decrease in net assets resulting from
capital transactions $(46,086,757) $(64,158,167)
------------ ------------
Total increase (decrease) in net assets $(44,299,386) $ 6,119,392
NET ASSETS:
At beginning of period 521,788,905 515,669,513
------------ ------------
At end of period $477,489,519 $521,788,905
============ ============
- ------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1996 --------------------------------------
(UNAUDITED) 1995 1994 1993*
----------- ------ ------ ------
<S> <C> <C> <C> <C>
RATIOS (As a percentage of average net assets):
Interest expense 0.70%+ 0.71% 0.56% 0.63%+
Other expenses 0.83%+ 0.82% 0.80% 0.86%+
Net investment income 7.98%+ 7.82% 8.03% 8.46%+
PORTFOLIO TURNOVER 4% 19% 35% 42%
<FN>
+Computed on an annualized basis.
*For the period from the start of business, October 28, 1993, to December 31, 1993.
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
---------------------------------
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Government Obligations Portfolio (the Portfolio) is registered under the
Investment Company Act of 1940 as a diversified open-end investment company
which was organized as a trust under the laws of the State of New York in 1992.
The Declaration of Trust permits the Trustees to issue beneficial interests in
the Portfolio. The following is a summary of significant accounting policies of
the Portfolio. The policies are in conformity with generally accepted accounting
principles.
A. INVESTMENT VALUATIONS -- Mortgage backed, "pass-through" securities are
valued using a matrix pricing system which takes into account closing bond
valuations, yield differentials, anticipated prepayments, and interest rates.
Debt securities (other than mortgage backed, "pass-through" securities) are
normally valued at the mean between the latest available bid and asked prices
for securities for which the over-the-counter market is the primary market. Debt
securities may also be valued on the basis of valuations furnished by a pricing
service. Options are valued at last sale price on a U.S. exchange or board of
trade or, in the absence of a sale, at the mean between the last bid and asked
price. Financial futures contracts listed on commodity exchanges are valued at
closing settlement prices. Securities for which there is no such quotation or
valuation are valued at fair value using methods determined in good faith by or
at the direction of the Trustees. Short-term obligations having remaining
maturities of less than 60 days are valued at amortized cost, which approximates
value.
B. INCOME -- Interest income is determined on the basis of interest accrued and
discount earned, adjusted for amortization of discount when required for federal
income tax purposes.
C. GAINS AND LOSSES FROM SECURITY TRANSACTIONS -- For book purposes, gains or
losses are not recognized until disposition. For federal tax purposes, the
Portfolio has elected, under Section 1092 of the Internal Revenue Code, to
utilize mixed straddle accounting for certain designated classes of activities
involving options and financial futures contracts in determining recognized
gains or losses. Under this method, Section 1256 positions (financial futures
contracts and options on investments or financial futures contracts) and
non-Section 1256 positions (bonds, etc.) are marked-to-market on a daily basis
resulting in the recognition of taxable gains or losses on a daily basis. Such
gains or losses are categorized as short-term or long-term based on aggregation
rules provided in the Code.
D. INCOME TAXES -- The Portfolio is treated as a partnership for federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes. Since 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 investors' distributive
share of the Portfolio's net investment income, net realized capital gains, and
any other items of income, gain, loss, deduction or credit.
E. WRITTEN OPTIONS -- Upon the writing of a call or a put option, an amount
equal to the premium received by the Portfolio is included in the Statement of
Assets and Liabilities as a liability. The amount of the liability is
subsequently marked-to-market to reflect the current value of the option written
in accordance with the Portfolio's policies on investment valuations discussed
above. Premiums received from writing options which expire are treated as
realized gains. Premiums received from writing options which are exercised or
are closed are added to or offset against the proceeds or amount paid on the
transaction to determine the realized gain or loss. If a put option is
exercised, the premium reduces the cost basis of the securities purchased by the
Portfolio. The Portfolio, as writer of an option, may have no control over
whether the underlying securities may be sold (call) or purchased (put) and, as
a result, bears the market risk of an unfavorable change in the price of the
securities underlying the written option.
F. PURCHASED OPTIONS -- Upon the purchase of a call or put option, the premium
paid by the Portfolio is included in the Statement of Assets and Liabilities as
an investment. The amount of the investment is subsequently marked-to-market to
reflect the current market value of the option purchased, in accordance with the
Portfolio's policies on investment valuations discussed above. If an option
which the Portfolio has purchased expires on the stipulated expiration date, the
Portfolio will realize a loss in the amount of the cost of the option. If the
Portfolio enters into a closing sale transaction, the Portfolio will realize a
gain or loss, depending on whether the sales proceeds from the closing sale
transaction are greater or less than the cost of the option. If the Portfolio
exercises a put option, it will realize a gain or loss from the sale of the
underlying security, and the proceeds from such sale will be decreased by the
premium originally paid. If the Portfolio exercises a call option, the cost of
the security which the Portfolio purchases upon exercise will be increased by
the premium originally paid. For tax purposes, the Portfolio's options are
generally subject to the mixed straddle rules described in Note 1C, and
unrealized gains or losses are recognized on a daily basis.
G. FINANCIAL FUTURES CONTRACTS -- Upon entering into a financial futures
contract, the Portfolio is required to deposit an amount ("initial margin")
either in cash or securities equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by the Portfolio ("margin maintenance") each day, dependent on the
daily fluctuations in the value of the underlying securities, and are recorded
for book purposes as unrealized gains or losses by the Portfolio.
If the Portfolio enters into a closing transaction, the Portfolio will
realize, for book purposes, a gain or loss equal to the difference between the
value of the financial futures contract to sell and the financial futures
contract to buy. The Portfolio's investment in financial futures contracts is
designed only to hedge against anticipated future changes in interest or
currency exchange rates. Should interest or currency exchange rates move
unexpectedly, the Portfolio may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss. For tax purposes, such
futures contracts are generally subject to the mixed straddle rules described in
Note 1C, and unrealized gains or losses are recognized on a daily basis.
H. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
I. OTHER -- Investment transactions are accounted for on the date the
investments are purchased or sold.
J. USE OF ESTIMATES -- The preparation of 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
revenue and expense during the reporting period. Actual results could differ
from those estimates.
K. INTERIM FINANCIAL INFORMATION -- The interim financial statements relating to
June 30, 1996 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management, reflect all adjustments consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
- --------------------------------------------------------------------------------
(2) PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, other than short-term obligations,
aggregrated $23,906,435 and $53,705,085, respectively.
- --------------------------------------------------------------------------------
(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee, computed at the monthly rate of 0.0625% (0.75% per
annum) of the Portfolio's average daily net assets up to $500 million and at
reduced rates as daily net assets exceed that level, 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. For the six months ended June 30, 1996, the
fee was equivalent to 0.74% (annualized) of the Portfolio's average net assets
for such period and amounted to $1,854,230. 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 service to the Portfolio out of such
investment adviser fee. Trustees of the Portfolio that are not affiliated with
the Investment Adviser may elect to defer receipt of all or a percentage of
their annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the six months ended June 30, 1996, no significant
amounts have been deferred. Certain of the officers and Trustees of the
Portfolio are officers and directors/trustees of the above organizations.
- --------------------------------------------------------------------------------
(4) LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR and
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 an $100 million
discretionary facility. 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
portfolios and funds at the end of each quarter. The average daily loan balance
for the six months ended June 30, 1996 was $632,357 and the average interest
rate was 7.05%. The maximum borrowing outstanding at any time during the six
months ended June 30, 1996 was $6,289,000.
- --------------------------------------------------------------------------------
(5) SECURITIES LENDING AGREEMENT
The Portfolio has established a securities lending agreement with a broker in
which the Portfolio lends portfolio securities to the broker in exchange for
collateral consisting of either cash or U.S. government securities. Under the
agreement, the Portfolio continues to earn interest on the securities loaned. If
the collateral received is U.S. government securities, the Portfolio will also
receive from the broker an additional loan premium fee computed as a varying
percentage of the market value of the securities loaned. If the collateral
received is cash, the Portfolio may invest the cash and receive any interest on
the amount invested but it must also pay the broker a loan rebate fee computed
as a varying percentage of the collateral received. The Portfolio did not
receive any loan premium fee during the six months ended June 30, 1996, but did
incur $1,709,685 of loan rebate fees which have been included in interest
expense. The maximum liability for cash collateral received for securities
loaned at any month end during the six months ended June 30, 1996, was
$58,467,600.
- --------------------------------------------------------------------------------
(6) FEDERAL INCOME TAX BASIS OF INVESTMENT
The cost and unrealized appreciation/depreciation in the value of investment
securities owned at June 30, 1996, as computed on a federal income tax basis,
were as follows:
Aggregate cost $535,512,474
============
Gross unrealized depreciation $ 6,086,517
Gross unrealized appreciation 5,068,756
------------
Net unrealized depreciation $ 1,017,761
============
- --------------------------------------------------------------------------------
(7) FINANCIAL INSTRUMENTS
The Portfolio regularly trades in financial instruments with off-balance sheet
risk in the normal course of its investing activities to assist in managing
exposure to various market risks. These financial instruments include written
options, forward foreign currency exchange contracts, and financial futures
contracts and may involve, to a varying degree, elements of risk in excess of
the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment the Fund has in particular classes of financial instruments and does
not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments at June 30, 1996 is
as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
FUTURES CONTRACT APPRECIATION
EXPIRATION DATE CONTRACTS POSITION (DEPRECIATION)
--------------- --------- -------- --------------
<S> <C> <C> <C> <C>
9/96 425 U.S. Treasury Five Year Note Futures Short $ (22,116)
9/96 200 U.S. Treasury Long Bond Futures Short $(307,650)
9/96 200 U.S. Treasury Ten Year Note Futures Short $ 1,727
---------
$(328,039)
=========
</TABLE>
At June 30, 1996, the Fund had sufficient cash and/or securities to cover margin
requirements on any open futures contracts.
<PAGE>
INVESTMENT MANAGEMENT FOR GOVERNMENT OBLIGATIONS PORTFOLIO
OFFICERS DIRECTORS
JAMES B. HAWKES LANDON T. CLAY
President, Director Chairman, Eaton Vance Corp.
MARK S. VENEZIA DONALD R. DWIGHT
Vice President President, Dwight Partners, Inc.
Chairman, Newspapers of
New England, Inc.
SAMUEL L. HAYES, III
JAMES L. O'CONNOR Jacob H. Schiff Professor of
Treasurer Investment Banking,
Harvard University Graduate School
THOMAS OTIS of Business Administration
Secretary
NORTON H. REAMER
President and Director, United Asset
Management Corporation
JOHN L. THORNDIKE
Director,
Fiduciary Company Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
