<PAGE>
Cash Management Portfolio as of June 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Commercial Paper -- 78.4%
Ratings
(Unaudited)
- ----------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Agricultural Services -- 1.1%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 1,500 Cargill, Inc., 5.49%,
7/29/98 $ 1,493,595
- --------------------------------------------------------------------------------
$ 1,493,595
- --------------------------------------------------------------------------------
Automotive -- 1.8%
- --------------------------------------------------------------------------------
P-1 A-1 $ 1,000 Ford Motor Credit Co.,
5.52%, 7/8/98 $ 998,927
- --------------------------------------------------------------------------------
P-1 A-1 1,500 General Motor Acceptance
Corp., 5.55%, 7/27/98 1,493,988
- --------------------------------------------------------------------------------
$ 2,492,915
- --------------------------------------------------------------------------------
Banking and Finance -- 23.5%
- --------------------------------------------------------------------------------
P-1 A-1 $ 3,000 American Express Credit
Corp., 5.52%, 7/29/98 $ 2,987,120
P-1 A-1+ 3,300 Asset Securitization
Coop. Corp., 5.53%,
7/7/98/(1)/ 3,296,959
P-1 A-1+ 2,000 Associates Corp. of No.
America, 5.48%, 9/4/98 1,980,211
P-1 A-1+ 2,000 Associates Corp. of No.
America, 5.52%, 9/23/98 1,974,240
P-1 A-1+ 2,000 CIESCO, 5.48%, 7/22/98/(1)/ 1,993,606
P-1 A-1+ 1,500 CIESCO, 5.50%, 8/19/98/(1)/ 1,488,771
P-1 A-1 1,705 CIT Group Holdings, Inc.,
5.51%, 7/20/98 1,700,042
P-1 A-1+ 2,500 Corporate Asset Funding
Co., 5.51%, 7/21/98/(1)/ 2,492,347
P-1 A-1+ 2,000 Corporate Receivables
Corp., 5.51%, 8/12/98 1,987,143
P-1 A-1+ 2,500 CXC, Inc., 5.53%,
7/28/98/(1)/ 2,489,631
P-1 A-1+ 1,240 Delaware Funding Corp.,
5.52%, 8/19/98/(1)/ 1,230,683
P-1 A-1+ 1,138 Delaware Funding Corp.,
5.54%, 7/22/98/(1)/ 1,134,323
P-1 A-1+ 2,700 John Hancock Capital
Corp., 5.50%, 7/6/98/(1)/ 2,697,938
P-1 A-1+ 1,000 Mid-States Corp. Federal
Credit Union, 5.62%,
7/24/98 996,409
P-1 A-1+ 1,500 Mid-States Corp. Federal
Credit Union, 5.62%,
7/16/98 1,496,488
P-1 A-1+ 3,000 Norwest Financial, Inc.,
5.47%, 8/14/98 2,979,943
- --------------------------------------------------------------------------------
$ 32,925,854
- --------------------------------------------------------------------------------
Business Products and Services -- 1.4%
P-1 A-1+ $ 1,990 Pitney Bowes Credit Corp.,
6.05%, 7/1/98 $ 1,990,000
- --------------------------------------------------------------------------------
$ 1,990,000
- --------------------------------------------------------------------------------
Chemicals -- 1.8%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 2,500 E.I. Dupont de Nemours &
Co., 5.50%, 7/30/98/(1)/ $ 2,488,923
- --------------------------------------------------------------------------------
$ 2,488,923
- --------------------------------------------------------------------------------
Electric Utilities -- 4.2%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 1,770 National Rural Utilities
Coop. Finance Corp,
5.50%, 8/13/98 $ 1,758,372
P-1 A-1+ 295 National Rural Utilities
Coop. Finance Corp.,
5.49%, 7/24/98 293,965
P-1 A-1 1,400 Potomac Electric Power
Co., 5.60%, 7/27/98 1,394,338
P-1 A-1+ 2,500 Teco Finance, Inc.,
5.50%, 8/7/98/(1)/ 2,485,868
- --------------------------------------------------------------------------------
$ 5,932,543
- --------------------------------------------------------------------------------
Electrical and Electronic Equipment -- 5.7%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 2,000 General Electric Capital
Corp., 5.50%, 8/28/98 $ 1,982,278
P-1 A-1+ 1,500 General Electric Capital
Corp., 5.50%, 8/3/98 1,492,438
P-1 A-1+ 1,500 General Electric Capital
Corp., 5.51%, 7/30/98 1,493,342
P-1 A-1+ 3,000 Motorola Credit Corp.,
5.49%, 7/14/98 2,994,053
- --------------------------------------------------------------------------------
$ 7,962,111
- --------------------------------------------------------------------------------
Food and Beverages -- 7.6%
- --------------------------------------------------------------------------------
P-1 A-1 $ 1,300 Anheuser Busch Co., Inc.,
5.50%, 7/8/98 $ 1,298,610
P-1 A-1+ 3,500 Coca-Cola Co., 5.49%,
7/24/98 3,487,724
P-1 A-1 1,310 Heinz (H.J.) Co.,
5.50%, 7/23/98 1,305,597
P-1 A-1+ 1,500 Kellogg Co., 5.54%, 8/6/98 1,491,690
P-1 A-1+ 3,000 Nestle Capital Corp.,
5.46%, 7/13/98 2,994,540
- --------------------------------------------------------------------------------
$ 10,578,161
- --------------------------------------------------------------------------------
See notes to financial statements
13
<PAGE>
Cash Management Portfolio as of June 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings
(Unaudited)
- ----------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Gas Utilities -- 0.5%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 720 Consolidated Natural Gas,
5.50%, 7/7/98 $ 719,340
- --------------------------------------------------------------------------------
$ 719,340
- --------------------------------------------------------------------------------
Household Products -- 4.3%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 1,995 Procter and Gamble Co.,
5.47%, 9/14/98 $ 1,972,265
P-1 A-1+ 3,000 Unilever Capital Corp.,
5.48%, 7/17/98/(1)/ 2,992,693
P-1 A-1+ 1,000 Unilever Capital Corp.,
5.50%, 7/21/98/(1)/ 996,945
- --------------------------------------------------------------------------------
$ 5,961,903
- --------------------------------------------------------------------------------
Insurance -- 8.6%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 3,000 AI Credit Corp., 5.45%,
7/17/98 $ 2,992,734
P-1 A-1+ 997 AIG Funding, Inc.,
6.10%, 7/1/98 997,000
P-1 A-1+ 2,000 American General Corp.,
5.50%, 7/6/98 1,998,473
P-1 A-1+ 1,900 MetLife Funding, Inc.,
5.52%, 7/23/98 1,893,591
P-1 A-1 1,000 Prudential Funding Corp.,
5.53%, 7/6/98 999,232
P-1 A-1+ 2,800 USAA Capital Corp.,
5.45%, 7/9/98 2,796,609
P-1 A-1+ 395 USAA Capital Corp.,
5.48%, 7/24/98 393,617
- --------------------------------------------------------------------------------
$ 12,071,256
- --------------------------------------------------------------------------------
Leasing -- 0.9%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 1,340 Greenwich Asset Fund,
Inc., 5.52%, 7/13/98/(1)/ $ 1,337,534
- --------------------------------------------------------------------------------
$ 1,337,534
- --------------------------------------------------------------------------------
Oil -- 5.7%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 2,000 Chevron USA, Inc.,
5.49%, 8/21/98 $ 1,984,445
P-1 A-1+ 3,000 Chevron USA, Inc.,
5.50%, 7/15/98 2,993,583
P-1 A-1+ 1,000 Cortez Capital Corp.,
5.54%, 7/30/98/(1)/ 995,537
P-1 A-1+ 2,000 Exxon Imperial U.S., Inc.,
5.47%, 7/10/98/(1)/ 1,997,265
- --------------------------------------------------------------------------------
$ 7,970,830
- --------------------------------------------------------------------------------
Pharmaceutical -- 6.6%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 2,000 Novartis Finance Corp.,
5.52%, 8/10/98/(1)/ $ 1,987,733
P-1 A-1+ 2,300 Novartis Finance Corp.,
5.52%, 8/18/98/(1)/ 2,283,072
P-1 A-1+ 4,000 Schering Corp., 5.60%,
7/13/98 3,992,533
P-1 A-1+ 1,000 Smithkline Beecham Corp.,
5.51%, 8/18/98 992,653
- --------------------------------------------------------------------------------
$ 9,255,991
- --------------------------------------------------------------------------------
Retail -- 1.0%
- --------------------------------------------------------------------------------
P-1 A-1 $ 1,400 JC Penney Funding Corp.,
5.53%, 7/20/98/(1)/ $ 1,395,914
- --------------------------------------------------------------------------------
$ 1,395,914
- --------------------------------------------------------------------------------
Telecommunications -- 3.7%
- --------------------------------------------------------------------------------
P-1 A-1+ $ 1,500 Ameritech Corp.,
5.50%, 8/5/98/(1)/ $ 1,491,979
P-1 A-1+ 1,200 Bellsouth
Telecommunications, Inc.,
5.49%, 9/10/98 1,187,007
P-1 A-1+ 2,500 SBC Communications, Inc.,
5.49%, 8/26/98/(1)/ 2,478,650
- --------------------------------------------------------------------------------
$ 5,157,636
- --------------------------------------------------------------------------------
Total Commercial Paper, at value
(identified cost $109,734,506) $109,734,506
- --------------------------------------------------------------------------------
See notes to financial statements
14
<PAGE>
Cash Management Portfolio as of June 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
U.S. Government Obligations -- 21.6%%
Principal
Amount
(000's
omitted) Security Value
- --------------------------------------------------------------------------------
$ 2,475 FHLMC Discount Notes,
5.40%, 7/16/98 $ 2,469,431
20,000 FNMA Discount Notes,
5.463%, 8/13/98 19,869,495
8,000 FNMA Discount Notes,
5.43%, 9/24/98 7,897,433
- --------------------------------------------------------------------------------
Total U.S. Government Obligations, at value
(identified cost $30,236,359) $ 30,236,359
- --------------------------------------------------------------------------------
Total Investments -- 100.0%
(identified cost $139,970,865) $139,970,865
- --------------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.0% $ (13,938)
- --------------------------------------------------------------------------------
Net Assets -- 100% $139,956,927
- --------------------------------------------------------------------------------
FHLMC-Federal Home Mortgage Corporation (Freddie Mac)
FNMA-Federal National Mortgage Association (Fannie Mae)
/(1)/ 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 June 30, 1998, the
value of these securities amounted to $39,756,371 or 28.4% of the
Portfolio's net assets.
See notes to financial statements
15
<PAGE>
Cash Management Portfolio as of June 30, 1998
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
As of June 30, 1998
Assets
- ---------------------------------------------------------------------------
Investments, at value $139,970,865
Cash 613
Deferred organization expenses 2,282
- ---------------------------------------------------------------------------
Total assets $139,973,760
- ---------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------
Payable to affiliate for Trustees' fees $ 1,133
Other accrued expenses 15,700
- ---------------------------------------------------------------------------
Total liabilities $ 16,833
- ---------------------------------------------------------------------------
Net Assets (representing paid-in-capital) $139,956,927
- ---------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------
Net proceeds from capital contributions and
withdrawals $139,956,927
- ---------------------------------------------------------------------------
Total $139,956,927
- ---------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended
June 30, 1998
Investment Income
- ---------------------------------------------------------------------------
Interest $ 3,381,553
- ---------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------
Investment adviser fee $ 304,298
Trustees fees and expenses 3,125
Custodian fee 36,987
Legal and accounting services 14,516
Amortization of organization expenses 1,352
Miscellaneous 9,434
- ---------------------------------------------------------------------------
Total expenses $ 369,712
- ---------------------------------------------------------------------------
Net investment income $ 3,011,841
- ---------------------------------------------------------------------------
See notes to financial statements
16
<PAGE>
Cash Management Portfolio as of June 30, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
Six Months Ended
Increase (Decrease) June 30, 1998 Year Ended
in Net Assets (Unaudited) December 31, 1997
- -------------------------------------------------------------------------------
From operations --
Net investment income $ 3,011,841 $ 7,185,996
- -------------------------------------------------------------------------------
Capital transactions --
Contributions $ 290,244,575 $ 791,713,159
Withdrawals (337,039,692) (806,819,022)
- -------------------------------------------------------------------------------
Net decrease in net assets
from capital transactions $ (46,795,117) $ (15,105,863)
- ------------------------------------------------------------------------------
Net decrease in net assets $ (43,783,276) $ (7,919,867)
- ------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------
At beginning of period $ 183,740,203 $ 191,660,070
- ------------------------------------------------------------------------------
At end of period $ 139,956,927 $ 183,740,203
- ------------------------------------------------------------------------------
See notes to financial statements
17
<PAGE>
Cash Management Portfolio as of June 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Six Months Ended Year Ended December 31,
June 30, 1998 ---------------------------------------------
(Unaudited) 1997 1996 1995 1994*
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------------------
Expenses 0.61%+ 0.59% 0.59% 0.60% 0.58%+
Net investment income 5.00%+ 4.96% 4.83% 5.36% 4.22%+
- -------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the period from the start of business, May 2, 1994, to December 31, 1994.
See notes to financial statements
18
<PAGE>
Cash Management Portfolio as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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 has elected to be 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
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 Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian to the Portfolio. Pursuant to the respective custodian agreements,
IBT receives a fee reduced by credits which are determined based on the
average daily cash balances the Portfolio maintains with IBT. All significant
credit balances used to reduce the Portfolio's custodian fees are reported as
a reduction of operating expenses on the Statement of Operations.
F 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.
G Other -- Investment transactions are accounted for on a trade date basis.
H Interim Financial Information -- The interim financial statements relating
to June 30, 1998 and for the six month period then ended have not been audited
by independent certified public accountants, but in the opinion of the
Portfolio's management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
------------------------------------------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation for
management and investment advisory services rendered to the Portfolio. The fee
is computed at the rate of 1/2 of 1% per annum of the Portfolio's average
daily net assets and amounted to $304,298 for the six months ended June 30,
1998. 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.
19
<PAGE>
Cash Management Portfolio as of June 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
3 Line of Credit
------------------------------------------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR or
EVM and its affiliates in a $100 million unsecured line of credit agreement
with a group of banks. The Portfolio may temporarily borrow from the line of
credit to satisfy redemption requests or settle investment transactions.
Interest is charged to each participating portfolio or fund based on its
borrowings at an amount above the Eurodollar rate or federal funds rate. In
addition, a fee computed at an annual rate of 0.10% 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 period.
4 Investments
------------------------------------------------------------------------------
Purchases and sales (including maturities) of investments, during the six
months ended June 30, 1998, exclusive of U.S. Government securities,
aggregated $455,763,326 and $434,622,741, respectively. Purchases and sales
(including maturities) of U.S. Government Agency securities aggregated
$273,732,705 and $338,489,942, respectively.
20
<PAGE>
Cash Management Portfolio as of June 30, 1998
INVESTMENT MANAGEMENT
Cash Management Portfolio
Officers
M. Dozier Gardner
President and Trustee
James B. Hawkes
Vice President and Trustee
Michael B. Terry
Vice President and Portfolio Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate School of
Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
21