The Eaton Vance Mutual Funds Trust
For the Cash Management Portfolio
[LOGO]
Annual
Shareholder Report
December 31, 1995
Investment Adviser of Cash Management Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Fund 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 Investors Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
<TABLE>
Cash Management Portfolio
Portfolio of Investments
December 31, 1995
<CAPTION>
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Commercial Paper -- 85.6%
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Ratings (unaudited)
- -------------------
Principal
Standard Amount Value
& Poor's Moody's (000 Omitted) (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Agriculture -- 1.9%
A-1+ P-1 $3,000 Cargill Inc. 5.66%, 2/1/96 $ 2,985,379
A-1+ P-1 1,000 Cargill Inc. 5.63%, 1/30/96 995,465
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$ 3,980,844
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Automotive -- 0.6%
A-1 P-1 $1,300 Ford Motor Credit Corp. 5.75%, 1/5/96 $ 1,299,169
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Banking & Finance -- 21.2%
A-1+ P-1 $5,000 Asset Securitization Coop. Corp. 5.72%, 1/22/96 (2) $ 4,983,317
A-1+ P-1 2,100 Associates Corp. of No. America 5.70%, 1/23/96 2,092,685
A-1+ P-1 1,700 Associates Corp. of No. America 5.70%, 1/24/96 1,693,809
A-1+ P-1 2,000 Associates Corp. of No. America 5.52%, 3/4/96 1,980,680
A-1+ P-1 2,000 CIESCO 5.70%, 1/22/96 1,993,350
A-1+ P-1 3,000 CIESCO 5.65%, 2/22/96 2,975,517
A-1 P-1 2,200 CIT Group Holdings Inc. 5.75%, 1/10/96 2,196,838
A-1+ P-1 1,000 Corporate Asset Funding Co. Inc. 5.67%, 1/10/96 998,583
A-1+ P-1 3,200 Corporate Asset Funding Co. Inc. 5.68%, 1/29/96 3,185,863
A-1+ P-1 1,500 Corporate Asset Funding Co. Inc. 5.67%, 2/12/96 1,490,078
A-1 P-1 4,000 Corporate Receivables Corp. 5.75%, 1/31/96 (1) 3,980,833
A-1+ P-1 3,500 CXC Incorporated 5.65%, 1/25/96 (2) 3,486,817
A-1+ P-1 3,000 Delaware Funding Corp. 5.85%, 1/8/96 2,996,588
A-1+ P-1 1,000 Delaware Funding Corp. 5.68%, 2/7/96 994,162
A-1+ P-1 3,000 National Rural Utilities Coop. 5.70%, 1/17/96 2,992,400
A-1+ P-1 2,500 Norwest Financial Inc. 5.68%, 1/16/96 2,494,083
A-1+ P-1 3,000 Norwest Financial Inc. 5.46%, 3/22/96 2,963,145
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$ 43,498,748
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Chemicals -- 1.7%
A-1+ P-1 $3,500 E.I. DuPont de Nemours & Co., 5.45%, 2/23/96 (1) $ 3,471,917
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Credit Union -- 2.4%
A-1+ P-1 $5,000 US Central Credit Union 5.65%, 1/19/96 $ 4,985,875
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Electrical Equipment & Electronics -- 6.5%
A-1+ P-1 $2,900 General Electric Capital Corp. 5.68%, 1/16/96 $ 2,893,137
A-1+ P-1 1,750 General Electric Capital Corp. 5.69%, 2/5/96 1,740,319
A-1+ P-1 1,300 General Electric Capital Corp. 5.57%, 3/4/96 1,287,328
A-1+ P-1 2,000 General Electric Capital Corp. 5.56%, 3/15/96 1,977,142
A-1+ P-1 2,000 Motorola Credit Corp. 5.68%, 1/8/96 1,997,791
A-1+ P-1 3,500 Panasonic Finance Inc. 5.73%, 1/11/96 (2) 3,494,429
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$ 13,390,146
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Food & Beverages -- 7.2%
A-1+ P-1 $1,300 Anheuser-Busch Cos. Inc. 5.85%, 1/3/96 $ 1,299,578
A-1+ P-1 1,573 Anheuser-Busch Cos. Inc. 5.70%, 1/16/96 1,569,264
A-1+ P-1 3,700 Coca-Cola Co. 5.80%, 1/3/96 3,698,808
A-1+ P-1 2,300 Coca-Cola Co. 5.50%, 3/8/96 2,276,457
A-1+ P-1 3,000 Nestle Capital Corp. 5.51%, 3/18/96 2,964,644
A-1+ P-1 3,000 Nestle Capital Corp. 5.41%, 3/21/96 2,963,933
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$ 14,772,684
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Household Products -- 2.4%
A-1+ P-1 $2,000 Procter & Gamble Co. 5.65%, 1/11/96 $ 1,996,861
A-1+ P-1 1,000 Procter & Gamble Co. 5.66%, 1/19/96 997,170
A-1+ P-1 2,000 Procter & Gamble Co. 5.60%, 2/27/96 1,982,267
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$ 4,976,298
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Insurance -- 16.3%
A-1+ P-1 $3,500 AI Credit Corp. 5.67%, 1/23/96 $ 3,487,873
A-1+ P-1 2,500 AIG Funding Inc. 5.83%, 1/3/96 2,499,190
A-1+ P-1 1,500 APC Funding Corp. 5.70%, 1/29/96 1,493,350
A-1+ P-1 2,000 APC Funding Corp. 5.68%, 2/2/96 1,989,902
A-1+ P-1 400 APC Funding Corp. 5.72%, 2/8/96 397,585
A-1+ P-1 4,000 Marsh & McLennan Cos. Inc. 5.92%, 1/3/96 (2) 3,998,684
A-1+ P-1 1,900 Metlife Funding Inc. 5.64%, 1/26/96 1,892,559
A-1+ P-1 2,000 Metlife Funding Inc. 5.63%, 2/6/96 1,988,740
A-1+ P-1 2,600 Prudential Funding Corp. 5.68%, 1/12/96 2,595,487
A-1+ P-1 2,500 SAFECO Credit Co. Inc. 5.72%, 1/11/96 2,496,028
A-1+ P-1 1,000 SAFECO Credit Co. Inc. 5.65%, 1/17/96 997,489
A-1+ P-1 1,980 SAFECO Credit Co. Inc. 5.65%, 1/26/96 1,972,231
A-1 P-1 2,000 Transamerica Finance Corp. 5.77%, 1/9/96 1,997,436
A-1+ P-1 4,000 USAA Capital Corp. 5.68%, 1/18/96 3,989,271
A-1+ P-1 1,500 USAA Capital Corp. 5.67%, 1/24/96 1,494,566
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$ 33,290,391
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Leasing -- 1.0%
A-1+ P-1 $2,120 Conag Finance Inc. 5.73%, 1/24/96 (2) $ 2,112,239
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Office Equipment -- 2.5%
A-1+ P-1 $750 Pitney Bowes Credit Corp. 5.65%, 1/30/96 $ 746,587
A-1+ P-1 1,300 Pitney Bowes Credit Corp. 5.63%, 1/31/96 1,293,901
A-1+ P-1 3,000 Pitney Bowes Credit Corp. 5.65%, 2/2/96 2,984,933
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$ 5,025,421
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Oil -- 5.7%
A-1+ P-1 $3,000 Chevron Oil Finance Co. 5.65%, 2/16/96 $ 2,978,342
A-1+ P-1 4,790 Chevron Oil Finance Co. 5.63%, 2/7/96 4,762,283
A-1+ P-1 3,700 Cortez Capital Corp. 5.72%, 2/8/96 3,677,660
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$ 11,418,285
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Pharmaceutical -- 2.4%
A-1+ P-1 $2,000 Schering Corp 5.67%, 1/16/96 $ 1,995,275
A-1+ P-1 3,000 Schering Corp 5.67%, 1/31/96 2,985,825
-------------
$ 4,981,100
-------------
Publishing -- 2.0%
A-1+ P-1 $3,900 Knight-Ridder Inc. 5.72%, 1/4/96 $ 3,898,141
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Specialty Retailer -- 1.4%
A-1 P-1 $2,936 Melville Corp. 5.90%, 1/2/96 $ 2,935,519
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Telecommunications -- 4.3%
A-1+ P-1 $1,500 AT&T Corp. 5.64%, 1/23/96 $ 1,494,830
A-1+ P-1 1,300 AT&T Corp. 5.67%, 1/25/96 1,295,086
A-1+ P-1 1,000 AT&T Corp. 5.66%, 2/1/96 995,126
A-1+ P-1 5,000 Ameritech Capital Funding Corp. 5.53%, 2/20/96 4,961,597
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$ 8,746,639
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Transportation -- 2.9%
A-1+ P-1 $6,000 United Parcel Service of America 5.90%, 1/4/96 $ 5,997,050
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Utilities -- 3.2%
A-1+ P-1 $1,000 Consolidated Natural Gas Co. 5.78%, 1/12/96 $ 998,234
A-1 P-1 2,000 Potomac Electric Power Co. 5.75%, 1/8/96 1,997,764
A-1+ P-1 1,300 TECO Finance Inc. 5.75%, 1/18/96 (2) 1,296,470
A-1+ P-1 2,300 TECO Finance Inc. 5.64%, 2/13/96 (2) 2,284,506
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$ 6,576,974
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Total Commercial Paper, at amortized cost $ 175,357,440
=============
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U.S. Government Obligations -- 14.4%
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Principal
Amount Value
(000 Omitted) (Note 1a)
- ---------------------------------------------------------------------------------------------------------------------
$9,300 FHLB Discount Notes 5.57%, 1/25/96 $ 9,265,466
6,370 FHLB Discount Notes 5.41%, 2/26/96 6,316,393
1,700 FNMA Discount Notes 5.55%, 2/9/96 1,689,779
5,000 FNMA Discount Notes 5.50%, 3/5/96 4,951,111
7,400 FNMA Discount Notes 5.48%, 3/7/96 7,325,652
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Total U.S. Government Obligations, at amortized cost $ 29,548,401
-------------
Total Investments -- 100.0% $ 204,905,841
Other Assets, less Liabilities -- 0.0% (6,126)
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Net Assets -- 100.0% $ 204,899,715
=============
(1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold
in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 1995, the
value of these securities amounted to $7,452,750 or 3.6% of Portfolio net assets.
(2) Restricted security-Investment in securities not registered under the Securities Act of 1933. At December 31, 1995,
the value of these securities amounted to $21,656,462 or 10.6% of Portfolio net assets (see Note 5).
The accompanying notes are an integral part of the financial statements
</TABLE>
<TABLE>
Cash Management Portfolio
Financial Statements
Statement of Assets and Liabilities
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
December 31, 1995
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Investments, at amortized cost and value (Note 1A) $204,905,841
Cash 2,874
Deferred organization expenses (Note 1D) 9,095
------------
Total assets $204,917,810
Liabilities:
Payable to affiliate --
Trustees' fees $ 2,590
Accrued expenses 15,505
-------
Total liabilities 18,095
------------
Net Assets $204,899,715
============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals $204,899,715
============
<CAPTION>
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Statement of Operations
- ------------------------------------------------------------------------------------------------------------------
For the Year Ended December 31, 1995
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Interest Income $11,487,243
Expenses:
Investment adviser fee (Note 2) $ 965,361
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 11,085
Custodian fee (Note 2) 128,026
Legal and Accounting services 29,874
Amortization of deferred organization expenses (Note 1D) 2,984
Printing and postage 665
Miscellaneous 10,630
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Total expenses $1,148,625
Deduct reduction of custodian fee (Note 2) (4,715)
----------
Net expenses 1,143,910
-----------
Net investment income $10,343,333
===========
The accompanying notes are an integral part of the financial statements
<CAPTION>
Statement of Changes in Net Assets
- ------------------------------------------------------------------------------------------------------------------
Year Ended December 31,
----------------------------------
1995 1994*
------------- --------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $ 10,343,333 $ 5,036,300
Capital transactions --
Contributions 815,124,407 866,299,681
Withdrawals (843,381,480) (648,622,546)
------------- -------------
Increase (decrease) in net assets resulting from capital transactions $ (28,257,073) $ 217,677,135
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Total increase (decrease) in net assets $(17,913,740) $222,713,435
Net Assets:
At beginning of year 222,813,455 100,020
------------- -------------
At end of year $ 204,899,715 $ 222,813,455
============= =============
* For the period from the start of business, May 2, 1994, to December 31, 1994.
<CAPTION>
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Supplementary Data
- ------------------------------------------------------------------------------------------------------------------
Year Ended December 31,
----------------------------------
1995 1994*
------------- -------------
<S> <C> <C>
Ratios (as a percentage of net assets):
Expenses 0.60% 0.58%+
Net investment income 5.36% 4.22%+
+ Computed on an annualized basis.
* For the period from the start of business, May 2, 1994, to December 31, 1994.
</TABLE>
Notes to Financial Statements
December 31, 1995
(1) Significant Accounting Policies
Cash Management Portfolio (the Portfolio) is registered under the Investment
Company Act of 1940 as a diversified open-end management investment company
which was organized as a trust under the laws of the State of New York on
May 1, 1992. The Declaration of Trust permits the Trustees to issue
interests in the Portfolio. The following is a summary of significant
accounting policies of the Portfolio. The policies are in conformity with
generally accepted accounting principles.
A. Security Valuation -- The Portfolio values investment securities
utilizing the amortized cost valuation technique permitted by Rule 2a-7 of
the Investment Company Act of 1940, pursuant to which the Portfolio must
comply with certain conditions. This technique involves initially valuing a
portfolio security at its cost and thereafter assuming a constant
amortization to maturity of any discount or premium. 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.
(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 1U2 of 1% per annum of the
Portfolio's average daily net assets and amounted to $965,361 for the year
ended December 31, 1995. Except as to Trustees of the Portfolio who are not
members of the EVM's of 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) serves as a custodian of the Portfolio.
Prior to November 10, 1995, IBT was an affiliate of EVM and BMR. 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. All significant credits used to reduce the custodian fee of the
Portfolio are reported as a reduction of expenses in the statement of
operations.
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 1U4
or 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 year
ended December 31, 1995, exclusive of U.S. Government securities aggregated
$1,310,127,504 and $1,168,138,603, respectively. Purchases and sales
(including maturities) of U.S. Government securities aggregated $357,595,484
and $401,505,498, respectively.
(5) Restricted Securities
The Portfolio is permitted to invest in securities that are subject to legal
or contractual restrictions on resale. These securities generally may be
resold in transactions exempt from registration or to the public if the
securities are registered. All such securities held have been determined by
the Portfolio's Trustees to be liquid and were purchased with the
expectation resale would not be necessary. Each restricted security held by
the Portfolio is rated A-1+ and P-1 by Moody's and Standard and Poors,
respectively, and at December 31, 1995, such securities, excluding 144A
issues, amounted to 10.6% of net assets. At December 31, 1995, restricted
securities, excluding 144A issues, were as follows:
<TABLE>
<CAPTION>
Acquisition Acquisition Amortized
Security Date Cost Cost & Value
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Asset Securitization Coop. 5.72%, 1/22/96 11/22/95 $ 4,951,539 $ 4,983,317
Conag Finance Inc. 5.73%, 1/24/96 11/22/95 2,098,742 2,112,239
CXC Incorporation 5.65%, 1/25/96 12/21/95 3,480,774 3,486,817
Marsh & McLennan Cos. Inc. 5.92%, 1/3/96 12/27/95 3,995,396 3,998,684
Panasonic Finance Inc. 5.73%, 1/11/96 11/27/95 3,474,931 3,494,429
TECO Finance Inc. 5.75%, 1/18/96 12/07/95 1,291,279 1,296,470
TECO Finance Inc. 5.64%, 2/13/96 12/11/95 2,276,939 2,284,506
----------- -----------
$21,569,600 $21,656,462
=========== ===========
</TABLE>
Report of Independent Accountants
To the Trustees and Investors of
Cash Management Portfolio:
We have audited the accompanying statement of assets and liabilities, of
Cash Management Portfolio (the "Portfolio") including the portfolio of
investments as of December 31, 1995, and the related statement of operations
for the year then ended, changes in net assets and supplementary date for
the year ended December 31, 1995 and the period from May 2, 1994 (start of
business), to December 31, 1994. These financial statements and
supplementary data are the responsibility of the Portfolio's management. Our
responsibility is to express an opinion on these financial statements and
supplementary data based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits 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, 1995 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 audits provide
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, 1995, the results of its
operations for the year then ended, and the changes in net assets and
supplementary data for the respective stated periods, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P .
Boston, Massachusetts
February 2, 1996
INVESTMENT MANAGEMENT FOR CASH MANAGEMENT PORTFOLIO
OFFICERS
M. DOZIER GARDNER
President, Trustee
JAMES B. HAWKES
Vice President, Trustee
MICHAEL B. TERRY
Vice President and Portfolio Manager
JAMES L. O'CONNOR
Treasurer
THOMAS OTIS
Secretary
INDEPENDENT TRUSTEES
DONALD R. DWIGHT
President, Dwight Partners, Inc.
Chairman, Newspapers of New England, Inc.
SAMUEL L. HAYES, III
Jacob H. Schiff Professor of
Investment Banking, Harvard
University Graduate School of
Business Administration
NORTON H. REAMER
President and Director, United Asset
Management Corporation
JOHN L. THORNDIKE
Vice President and Director,
Fiduciary Company Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
