The Eaton Vance Mutual Funds Trust
For the Cash Management Portfolio
[LOGO]
Annual Shareholder Report
December 31, 1996
<TABLE>
<CAPTION>
Cash Management Portfolio
Portfolio of Investments
December 31, 1996
Commercial Paper - 57.3%
Ratings (unaudited)
- ---------------------
Principal
Standard Amount
& Poor's Moody's (000's Omitted) Value
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Agriculture -- 1.2%
A-1+ P-1 $ 750 Cargill Inc. 5.25%, 3/12/97 $ 742,344
A-1+ P-1 1,500 Cargill Financial Services Corp.
5.27%, 1/8/97 (2) 1,498,463
------------
$ 2,240,807
------------
Automotive -- 0.5%
A-1 P-1 $ 1,000 Ford Motor Credit Co. 5.45%, 1/22/97 $ 996,821
------------
Banking & Finance -- 17.2%
A-1 P-1 $2,625 American Express Credit Corp. 5.50%, 1/14/97 $2,619,786
A-1+ P-1 2,000 Asset Securitization Coop. Corp. 5.30%, 1/8/97 (2) 1,997,939
A-1+ P-1 1,500 Asset Securitization Coop. Corp. 5.31%, 1/9/97 (2) 1,498,230
A-1+ P-1 2,500 Associates Corp. of No. America 5.38%, 1/31/97 2,488,791
A-1+ P-1 1,000 Associates Corp. of No. America 5.33%, 3/11/97 989,784
A-1+ P-1 1,500 Associates Corp. of No. America 5.34%, 3/31/97 1,480,197
A-1 P-1 2,500 CIT Group Holdings Inc. 5.48%, 1/22/97 2,492,009
A-1+ P-1 2,500 CIESCO 5.375%, 1/3/97 2,499,253
A-1+ P-1 1,000 CIESCO 5.28%, 1/15/97 997,947
A-1+ P-1 1,000 CIESCO 5.27%, 1/27/97 996,194
A-1+ P-1 3,500 Corporate Asset Funding Co. 5.28%, 1/30/97 3,485,113
A-1 P-1 2,000 Corporate Receivables Corp. 5.43%, 2/3/97 (1) 1,990,045
A-1+ P-1 3,000 CXC Incorporated 5.30%, 1/13/97 (2) 2,994,700
A-1+ P-1 1,600 Delaware Funding Corp. 5.32%,1/14/97 (2) 1,596,926
A-1+ P-1 1,000 Norwest Financial Inc. 5.30%, 1/13/97 998,233
A-1+ P-1 800 Norwest Financial Inc. 5.28%, 3/14/97 791,552
A-1+ P-1 3,000 Norwest Financial Inc. 5.41%, 3/26/97 2,962,130
------------
$32,878,829
------------
Chemicals -- 2.1%
A-1+ P-1 $2,200 E.I. DuPont de Nemours & Co. 5.28%, 1/14/97 (2) 2,195,805
A-1+ P-1 1,920 E.I. DuPont de Nemours & Co. 5.25%, 2/12/97 (2) $1,908,240
------------
$4,104,045
------------
Credit Unions -- 4.2%
A-1+ P-1 $3,000 Central Corporate Credit Union 5.47%, 1/15/97 $2,993,618
A-1+ P-1 3,500 Mid-States Corp. Federal Credit Union 5.57%, 1/16/97 3,491,877
A-1+ P-1 760 US Central Credit Union 5.29%, 1/21/97 757,767
A-1+ P-1 750 US Central Credit Union 5.35%, 1/27/97 747,102
------------
$7,990,364
------------
Electrical Equipment & Electronics -- 5.5%
A-1+ P-1 $2,330 General Electric Capital Corp. 5.31%, 1/23/97 $2,322,439
A-1+ P-1 1,000 General Electric Capital Corp. 5.31%, 1/27/97 996,165
A-1+ P-1 345 General Electric Capital Corp. 5.30%, 1/27/97 343,679
A-1+ P-1 1,655 General Electric Capital Corp. 5.29%, 2/12/97 1,644,786
A-1+ P-1 1,500 General Electric Capital Corp. 5.41%, 3/26/97 1,481,065
A-1+ P-1 2,600 Motorola Credit Corp. 5.24%, 1/22/97 2,592,052
A-1+ P-1 1,200 Motorola Credit Corp. 5.25%, 2/14/97 1,192,300
------------
$10,572,486
------------
Food & Beverages -- 4.8%
A-1+ P-1 $3,000 Anheuser-Busch Co. 5.22%, 1/6/97 $2,997,825
A-1+ P-1 1,700 Coca-Cola Co. 5.23%, 1/21/97 1,695,061
A-1+ P-1 1,420 Coca-Cola Co. 5.32%, 3/7/97 1,406,360
A-1+ P-1 3,100 Nestle Capital Corp. 5.28%, 2/6/97 3,083,632
------------
$9,182,878
------------
Household Products -- 0.5%
A-1+ P-1 $1,000 Procter & Gamble Co. 5.28%, 2/19/97 $992,813
------------
Insurance -- 9.8%
A-1+ P-1 $2,600 AI Credit Corp. 5.24%, 1/10/97 $2,596,594
A-1+ P-1 795 AI Credit Corp. 5.29%,2/26/97 788,458
A-1+ P-1 1,500 APC Funding Corp. 5.37%, 2/4/97 1,492,393
A-1+ P-1 1,000 APC Funding Corp. 5.50%, 2/27/97 991,292
A-1+ P-1 2,600 MetLife Funding Inc. 5.30%, 3/5/97 2,575,885
A-1+ P-1 2,000 Prudential Funding Corp. 5.25%, 1/2/97 1,999,708
A-1+ P-1 2,000 SAFECO Credit Co. Inc. 5.28%, 1/17/97 1,995,306
A-1+ P-1 433 SAFECO Credit Co. Inc. 5.32%, 2/4/97 430,825
A-1+ P-1 1,300 SAFECO Credit Co. Inc. 5.30%, 3/13/97 1,286,411
A-1 P-1 1,500 Transamerica Finance Corp. 5.40%, 1/14/97 1,497,075
A-1+ P-1 1,598 USAA Capital Corp. 5.30%, 1/9/97 1,596,121
A-1+ P-1 1,500 USAA Capital Corp. 5.29%, 1/21/97 1,495,592
------------
$18,745,660
------------
Oil -- 1.4%
A-1+ P-1 $2,700 Chevron Oil Finance Co. 5.50%, 1/15/97 $2,694,225
------------
Publishing -- 1.3%
A-1+ P-1 $2,500 Knight Ridder, Inc. 5.32%,2/10/97 (2) $2,485,222
------------
Pharmaceuticals -- 3.8%
A-1+ P-1 $4,375 Eli Lilly & Co. 5.28%, 1/24/97 (2) 4,360,242
A-1+ P-1 2,925 Schering Corp. 5.35%, 3/4/97 2,898,049
------------
$7,258,291
------------
Telecommunications -- 3.8%
A-1+ P-1 $3,500 Ameritech Corp. 5.35%, 2/13/97 $3,477,634
A-1+ P-1 3,755 AT&T Corp. 5.20%, 3/6/97 3,720,287
------------
$7,197,921
------------
Utilities -- 1.2%
A-1+ P-1 $1,600 National Rural Utilities Coop. Co. 5.31%, 1/7/97 $1,598,584
A-1+ P-1 800 National Rural Utilities Coop. Co. 5.30%, 1/10/97 798,940
------------
$2,397,524
------------
Total Commercial Paper, at value $109,737,886
============
<CAPTION>
U.S. Government Agency Obligations - 42.7%
- --------------------------------------------------------------------------------------
Principal
Amount
(000's Omitted) Value
- --------------------------------------------------------------------------------------
<S> <C> <C>
$60,000 FFCB Discount Notes 5.46%, 1/2/97 $59,990,900
1,770 FHLB Discount Notes 5.36%, 3/25/97 1,748,127
4,000 FHLMC Discount Notes 5.36%, 2/27/97 3,966,053
1,950 FNMA Discount Notes 5.22%, 1/16/97 1,945,759
1,985 FNMA Discount Notes 5.22%, 2/3/97 1,975,502
4,875 FNMA Discount Notes 5.37%, 2/24/97 4,835,732
1,545 FNMA Discount Notes 5.31%, 3/4/97 1,530,871
4,000 FNMA Discount Notes 5.24%, 3/13/97 3,958,662
2,000 FNMA Discount Notes 5.34%, 3/24/97 1,975,673
------------
Total U.S. Government Agency Obligations,
at value $ 81,927,279
------------
Total Investments -- 100.0% $191,665,165
Other Assets, less Liabilities -- 0.0% (5,095)
------------
Net Assets -- 100.0% $191,660,070
============
(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. It is the Portfolio's intention to hold the
security until maturity. At December 31, 1996, the value of these securities
amounted to $1,990,045 or 0.6% of the Portfolio's net assets.
(2) A security which has been issued under section 4(2) of the Securities Act of 1933
and is generally regarded as restricted and illiquid. This security may be resold in
transactions exempt from registration or to the public if the security is registered.
All such securities held have been deemed by the Portfolio's Trustees to be liquid
and were purchased with the expectation that resale would not be necessary. At
December 31, 1996, the value of these securities amounted to $20,535,767 or 10.71% of
the Portfolio's net assets.
FFCB -- Federal Farm Credit Bank
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation (Freddie Mac)
FNMA -- Federal National Mortgage Association (Fannie Mae)
The accompaning notes are an integral part of the financial statements
</TABLE>
<TABLE>
<CAPTION>
Cash Management Portfolio
Financial Statements
Statement of Assets and Liabilities
- -----------------------------------------------------------------------------------
December 31, 1996
- -----------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Investments, at value (Note 1A) $191,665,165
Cash 4,839
Deferred organization expenses (Note 1D) 6,361
------------
Total assets $191,676,365
Liabilities:
Trustees' fees payable $ 2,711
Accrued expenses 13,584
-------
Total liabilities 16,295
------------
Net Assets $191,660,070
============
Sources of Net Assets:
Net proceeds from capital contributions
and withdrawals $191,660,070
============
<CAPTION>
- -----------------------------------------------------------------------------------
Statement of Operations
For the Year Ended December 31, 1996
- -----------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Interest Income $10,186,297
Expenses:
Investment adviser fee (Note 2) $939,313
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 12,124
Custodian fee 116,445
Legal and accounting services 32,809
Amortization of organization expenses (Note 1D) 2,734
Miscellaneous 4,835
--------
Total expenses 1,108,260
-----------
Net investment income $ 9,078,037
===========
<CAPTION>
Statements of Changes in Net Assets
- ----------------------------------------------------------------------------------
Year Ended December 31,
----------------------------------
1996 1995
------------- --------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $ 9,078,037 $ 10,343,333
Capital transactions --
Contributions 1,075,567,385 815,124,407
Withdrawals (1,097,885,067) (843,381,480)
-------------- -------------
Decrease in net assets resulting
from capital transactions $ (22,317,682) $ (28,257,073)
-------------- -------------
Total decrease in net assets $ (13,239,645) $ (17,913,740)
Net Assets:
At beginning of year 204,899,715 222,813,455
-------------- -------------
At end of year $ 191,660,070 $ 204,899,715
============== =============
<CAPTION>
- ----------------------------------------------------------------------------------
Supplementary Data
- ----------------------------------------------------------------------------------
Year Ended December 31,
------------------------------------------
1996 1995 1994*
------------ ---------- -----------
<S> <C> <C> <C>
Ratios (as a percentage of
average daily net assets):
Expenses 0.59% 0.60% 0.58%+
Net investment income 4.83% 5.36% 4.22%+
+ Computed on an annualized basis.
* For the period from the start of business, May 2, 1994, to December 31, 1994.
The accompaning notes are an integral part of the financial statements
</TABLE>
Notes to Financial Statements
December 31, 1996
(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 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 Internal Revenue Code), in order for its investors to
satisfy them. The Portfolio will allocate at least annually, among
its investors each investor's distributive share of the Portfolio's
net 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. 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 income and expense during the
reporting period. Actual results could differ from those estimates.
F. Other -- Investment transactions are accounted for on a trade date
basis.
(2) 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 $939,313 for the year ended December 31, 1996. Except
as to Trustees of the Portfolio who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their
services to the Portfolio out of such investment adviser fee.
Certain 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 and its affiliates in a committed $120 million unsecured
line of credit agreement with a group of banks. The Portfolio may
temporarily borrow from the line of credit to satisfy withdrawal
requests or settle investment transactions. Interest is charged to
each participating portfolio or fund based on its borrowings at an
amount above the bank's adjusted certificate of deposit rate,
eurodollar rate or federal funds rate. In addition, a fee computed at
an annual rate of 0.15% on the daily unused portion of the line of
credit is allocated among the participating portfolios and funds at
the end of each quarter. The Portfolio did not have any significant
borrowings or allocated fees during the year ended December 31, 1996.
(4) Investments
Purchases and sales (including maturities) of investments, during the
year ended December 31, 1996, exclusive of U.S. Government securities
aggregated $1,174,380,859 and $1,292,278,412, respectively. Purchases
and sales (including maturities) of U.S. Government Agency securities
aggregated $638,763,728 and $543,634,429, respectively.
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, 1996, the related
statement of operations for the year then ended, the statement of
changes in net assets for the two years then ended and the
supplementary data for the two years then ended and for 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, 1996 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 supplementary data
referred to above present fairly, in all material respects, the
financial position of Cash Management Portfolio, as of December 31,
1996, the results of its operations for the year then ended, the
changes in net assets for the two years then ended and supplementary
data for the two years then ended and 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
January 31, 1997
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
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
Director, Fiduciary
Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
