UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04015
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Eaton Vance Mutual Funds Trust
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Name and Address of Agent for Services)
(617) 482-8260
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(registrant's Telephone Number)
October 31
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Date of Fiscal Year End
October 31, 2006
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Date of Reporting Period
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ITEM 1. REPORTS TO STOCKHOLDERS.
[EV logo]
EATON VANCE(R)
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Managed Investments
[graphic omitted]
Annual Report October 31, 2006
EATON VANCE
STRUCTURED
EMERGING
MARKETS
FUND
IMPORTANT NOTICES REGARDING PRIVACY,
DELIVERY OF SHAREHOLDER DOCUMENTS,
PORTFOLIO HOLDINGS, AND PROXY VOTING
PRIVACY. The Eaton Vance organization is committed to ensuring your financial
privacy. Each of the financial institutions identified below has in effect the
following policy ("Privacy Policy") with respect to nonpublic personal
information about its customers:
o Only such information received from you, through application forms or
otherwise, and information about your Eaton Vance fund transactions will be
collected. This may include information such as name, address, social
security number, tax status, account balances and transactions.
o None of such information about you (or former customers) will be disclosed
to anyone, except as permitted by law (which includes disclosure to
employees necessary to service your account). In the normal course of
servicing a customer's account, Eaton Vance may share information with
unaffiliated third parties that perform various required services such as
transfer agents, custodians and broker/dealers.
o Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the confidentiality of
such information.
o We reserve the right to change our Privacy Policy at any time upon proper
notification to you. Customers may want to review our Policy periodically
for changes by accessing the link on our homepage: www.eatonvance.com.
Our pledge of privacy applies to the following entities within the Eaton Vance
organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton
Vance Investment Counsel, Boston Management and Research, and Eaton Vance
Distributors, Inc.
In addition, our Privacy Policy only applies to those Eaton Vance customers who
are individuals and who have a direct relationship with us. If a customer's
account (i.e., fund shares) is held in the name of a third-party financial
adviser/ broker-dealer, it is likely that only such adviser's privacy policies
apply to the customer. This notice supersedes all previously issued privacy
disclosures.
For more information about Eaton Vance's Privacy Policy,
please call 1-800-262-1122.
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DELIVERY OF SHAREHOLDER DOCUMENTS. The Securities and Exchange Commission (the
"SEC") permits funds to deliver only one copy of shareholder documents,
including prospectuses, proxy statements and shareholder reports, to fund
investors with multiple accounts at the same residential or post office box
address. This practice is often called "householding" and it helps eliminate
duplicate mailings to shareholders.
EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR
DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL
ADVISER, OTHERWISE.
If you would prefer that your Eaton Vance documents not be householded, please
contact Eaton Vance at 1-800-262-1122, or contact your financial adviser.
Your instructions that householding not apply to delivery of your Eaton Vance
documents will be effective within 30 days of receipt by Eaton Vance or your
financial adviser.
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PORTFOLIO HOLDINGS. Each Eaton Vance Fund and its underlying Portfolio (if
applicable) will file a schedule of its portfolio holdings on Form N-Q with the
SEC for the first and third quarters of each fiscal year. The Form N-Q will be
available on the Eaton Vance website www.eatonvance.com, by calling Eaton Vance
at 1-800-262-1122 or in the EDGAR database on the SEC's website at www.sec.gov.
Form N-Q may also be reviewed and copied at the SEC's public reference room in
Washington, D.C. (call 1-800-732-0330 for information on the operation of the
public reference room).
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PROXY VOTING. From time to time, funds are required to vote proxies related to
the securities held by the funds. The Eaton Vance Funds or their underlying
Portfolios (if applicable) vote proxies according to a set of policies and
procedures approved by the Funds' and Portfolios' Boards. You may obtain a
description of these policies and procedures and information on how the Funds or
Portfolios voted proxies relating to portfolio securities during the most recent
12 month period ended June 30, without charge, upon request, by calling
1-800-262-1122. This description is also available on the SEC's website at
www.sec.gov.
EATON VANCE STRUCTURED EMERGING MARKETS FUND AS OF OCTOBER 31, 2006
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
[Photo of Cliff Quisenberry, CFA Portfolio Manager]
THE FUND
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Performance Since Inception on June 30, 2006
o We would like to welcome shareholders to Eaton Vance Structured Emerging
Markets Fund (the Fund). During the period from the Fund's inception on June
30, 2006, through October 31, 2006, the Fund's Class A shares had a total
return of 11.50%. This return resulted from an increase in net asset value
(NAV) per share to $11.15 on October 31, 2006, from $10.00 on June 30,
2006.(1)
o The Fund's Class C shares had a total return of 11.20% for the same period,
the result of an increase in NAV per share to $11.12 on October 31, 2006,
from $10.00 on June 30, 2006.(1)
o The Fund's Class I shares had a total return of 11.50% for the same period,
the result of an increase in NAV per share to $11.15 on October 31, 2006, from
$10.00 on June 30, 2006.(1)
o For comparison, during the same period, the average return of the Fund's peer
group, the Lipper Emerging Markets Funds Classification, was 10.79%, while
the return for the Fund's benchmark, the Morgan Stanley Capital International
(MSCI) Emerging Markets Index -- an unmanaged index of common stocks traded
in emerging markets and available to foreign investors -- was 9.86%.(2)
MANAGEMENT DISCUSSION
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o The Fund employs a top-down, disciplined and structured investment process
that emphasizes broad exposure and diversification among emerging market
countries, economic sectors and issuers. Management's strategy utilizes
targeted allocation and periodic rebalancing to exploit certain quantitative
and behavioral characteristics of emerging markets. Countries are selected
and weighted based on factors such as size, liquidity, level of economic
development, local economic diversification, and perceived risk and potential
for growth.
o During the period from the Fund's inception on June 30, 2006, through October
31, 2006, emerging markets rallied strongly, demonstrating resilience
following a volatile stretch from May 2006 through mid- June 2006. The
markets were encouraged by the U.S. Federal Reserve's decision in early
August 2006 to leave unchanged its benchmark Federal Funds rate, following a
lengthy string of rate hikes dating to June 2004. The move encouraged
emerging central banks that may need to lower rates in the event of an
economic slowdown. Most markets participated in the rally, with the notable
exceptions of those in the Middle East/Africa, which declined in concert with
falling oil prices. Latin America was the best-performing region during the
four-month period ended October 31, 2006, paced by India and the Philippines,
while Asia also posted strong results. Emerging Europe was somewhat less
successful, with good performances in Turkey and Poland overshadowed by
declines in Russia.
o The Fund's country and sector allocations boosted relative performance during
the four months ended October 31, 2006. The Fund was helped by its
underweighting in some energy and commodity-rich countries, such as Russia
and South Africa, which were negatively impacted by sharp declines in oil and
selected commodities. In addition, lower weightings in poorly performing
Taiwan and Korea aided results. The Fund was also boosted by a higher
relative exposure to the Philippines, Indonesia, Turkey and Peru, and by
positions in smaller markets, such as Egypt, Kenya and Colombia. From a
sector standpoint, the Fund was helped by a higher allocation to industrial,
consumer and finance sectors in Russia, which enjoyed double-digit gains.
o Areas that contributed negatively to performance during the four-month
reporting period included the Fund's underweightings in the outperforming
Indian and Chinese markets. Performance was also restrained by the Fund's
overweightings in Saudi Arabia and United Arab Emirates, which suffered from
the correction in oil prices, and Argentina, whose large-capitalization steel
manufacturers make finished products for the global oil exploration sector.
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Past performance is no guarantee of future results. Returns are historical and
are calculated by determining the percentage change in net asset value or
offering price (as applicable) with all distributions reinvested. Investment
return and principal value will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund's current performance may be
lower or higher than the quoted return. For performance as of the most recent
month end, please refer to www.eatonvance.com.
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(1) These returns do not include the 5.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class C
shares. If sales charges were deducted, the returns would be lower. Class I
shares are offered to certain investors at net asset value. Absent expense
waivers by the adviser and the administrator and an allocation of certain
expenses to the adviser, the returns would be lower.
(2) It is not possible to invest directly in an Index or Lipper Classification.
The Index's total return does not reflect commissions or expenses that would
have been incurred if an investor individually purchased or sold the
securities represented in the Index. The Lipper Average is the average total
return, at net asset value, of the funds that are in the same Lipper
Classification as the Fund. It is not possible to invest in a Lipper
Classification.
FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT
TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED.
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The views expressed throughout this report are those of the portfolio manager
and are current only through the end of the period of the report as stated on
the cover. These views are subject to change at any time based upon market or
other conditions, and the investment advisor disclaims any responsibility to
update such views. These views may not be relied on as investment advice and,
because investment decisions for a fund are based on many factors, may not be
relied on as an indication of trading intent on behalf of any Eaton Vance fund.
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Eaton Vance Structured Emerging Markets Fund as of October 31 , 2006
FUND PERFORMANCE
The line graph and table set forth below provide information about the Fund's
performance. The line graph compares the performance of Class A of the Fund with
that of the Morgan Stanley Capital International (MSCI) Emerging Market Index,
an unmanaged index of common stocks traded in emerging markets and available to
foreign investors. The lines on the graph represent the total returns of a
hypothetical investment of $50,000 in each of Class A and the MSCI Emerging
Market Index. Class A total returns are presented at net asset value and maximum
public offering price. The performance presented below does not reflect the
deduction of taxes, if any, that a shareholder would pay on distributions or
redemptions of Fund shares.
Performance* Class A Class C Class I
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Total Returns Since Inception
(at net asset value)
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Life of Fund+ 11.50% 11.20% 11.50%
SEC Total Returns Since Inception
(including sales charge or applicable CDSC)
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Life of Fund+ 5.09% 10.20% 11.50%
+ Inception Dates For All Share Classes: 6/30/06
* Total returns do not include the 5.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class C
shares. SEC total returns for Class A reflect the maximum 5.75% sales charge
and, for Class C, reflect a 1% CDSC for the first year. Absent expense
waivers by the adviser and the administrator and an allocation of certain
expenses to the adviser, the returns would be lower.
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Past performance is no guarantee of future results. Returns are historical and
are calculated by determining the percentage change in net asset value or
offering price (as applicable) with all distributions reinvested. Investment
return and principal value will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund's current performance may be
lower or higher than the quoted return. For performance as of the most recent
month end, please refer to www.eatonvance.com.
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Sector Weightings+
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By total investments
Financials 22.3%
Telecommunication Services 13.0%
Materials 12.4%
Industrials 11.3%
Energy 10.9%
Consumer Staples 7.2%
Consumer Discretionary 7.1%
Information Technology 6.3%
Utilities 4.4%
Health Care 2.9%
Investment Funds 1.1%
Other 1.1%
+ Weightings are shown as a percentage of the Fund's total investments as of
10/31/06. Portfolio information may not be representative of the Fund's
current or future investments and may change due to active management.
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COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE STRUCTURED
EMERGING MARKETS FUND, CLASS A VS. THE MORGAN STANLEY CAPITAL INTERNATIONAL
(MSCI) EMERGING MARKETS INDEX**
June 30, 2006 - October 31, 2006
Eaton Vance Eaton Vance
Structured Structured
Emerging Markets Emerging Markets MSCI Emerging
Date Fund Class A Class A at POP Markets Index
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06/30/2006 10,000 10,000 10,000
07/31/2006 10,270 10,270 10,143
08/31/2006 10,500 10,500 10,402
09/29/2006 10,540 10,540 10,488
10/31/2006 11,120 10,509 10,986
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** Source: Thomson Financial. Class A of the Fund commenced investment
operations on 6/30/06.
A $10,000 hypothetical investment at net asset value in Class C shares and Class
I shares on 6/30/06 (inception dates), would have been valued at $11,120
($11,020 after deduction of the applicable CDSC) and $11,150, respectively, on
10/31/06. It is not possible to invest directly in an Index. The Index's total
returns do not reflect commissions or expenses that would have been incurred if
an investor individually purchased or sold the securities represented in the
Index. Absent expense waivers by the adviser and the administrator and an
allocation of certain expenses to the adviser, the returns would be lower.
Regional Weightings+
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By total investments
Asia/Pacific 38.1%
Emerging Europe 23.3%
Latin America 21.0%
Middle East/Africa 17.6%
Eaton Vance Structured Emerging Markets Fund as of October 31, 2006
FUND EXPENSES
EXAMPLE: As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases and redemption
fees (if applicable); and (2) ongoing costs, including management fees;
distribution or service fees; and other Fund expenses. This Example is intended
to help you understand your ongoing costs (in dollars) of investing in the Fund
and to compare these costs with the ongoing costs of investing in other mutual
funds. The actual expense Example is based on an investment of $1,000 invested
at the beginning of the period and held for the entire period (June 30, 2006 -
October 31, 2006). The hypothetical expense Example is based on an investment of
$1,000 invested for the one-half year period (May 1, 2006 - October 31, 2006).
ACTUAL EXPENSES: The first section of the table below provides information about
actual account values and actual expenses. You may use the information in this
line, together with the amount you invested, to estimate the expenses that you
paid over the period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line under the heading entitled "Expenses Paid During
Period" to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES: The second section of the table
below provides information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratios and an assumed rate of return
of 5% per year (before expenses), which is not the actual return of the Fund.
The hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may use
this information to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) or redemption fees (if applicable). Therefore, the second
section of the table is useful in comparing ongoing costs only, and will not
help you determine the relative total costs of owning different funds. In
addition, if these transactional costs were included, your costs would have been
higher.
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EATON VANCE STRUCTURED EMERGING MARKETS FUND
Ending Account Value
Beginning Account Value (10/31/06) Expenses Paid During Period***
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ACTUAL
Class A $1,000.00 $1,115.00 $5.39
Class C $1,000.00 $1,112.00 $8.07
Class I $1,000.00 $1,115.00 $4.49
* Actual expenses are equal to the Fund's annualized expense ratio of 1.50% for Class A shares,
2.25% for Class C shares, and 1.25% for Class I shares, multiplied by the average account
value over the period, multiplied by 124/365 to reflect the period from the start of business
on June 30, 2006, to October 31, 2006. The example assumes that the $1,000 was invested at
the net asset value per share determined at the close of business on June 30, 2006.
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HYPOTHETICAL
(5% return per year before expenses)
Class A $1,000.00 $1,017.60 $7.63
Class C $1,000.00 $1,013.90 $11.42
Class I $1,000.00 $1,018.90 $6.36
** Hypothetical expenses are equal to the Fund's annualized expense ratio of 1.50% for Class A
shares, 2.25% for Class C shares, and 1.25% for Class I shares, multiplied by the average
account value over the period, multiplied by 184/365 (to reflect the one-half period). The
example assumes that the $1,000 was invested at the net asset value per share determined at
the close of business on October 31, 2006.
*** Absent an allocation of certain expenses to the administrator, expenses would be higher.
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EATON VANCE STRUCTURED EMERGING MARKETS FUND AS OF OCTOBER 31, 2006
PORTFOLIO OF INVESTMENTS
Long-Term Investments
Common Stocks -- 94.6%
Security Shares Value
Argentina -- 0.8%
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Banco Macro SA (Class "B" Shares) (ADR) 950 $ 21,479
Grupo Financiero Galicia SA (Class "B" Shares) (ADR)(a) 3,000 23,400
IRSA Inversiones y Representaciones SA (GDR)(a) 700 10,059
Molinos Rio de la Plata SA (Class "B" Shares)(a) 9,200 10,119
Petrobras Energia Participaciones SA (ADR)(a) 2,000 22,800
Telecom Argentina SA (Class "B" Shares) (ADR)(a) 3,600 54,360
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$ 142,217
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Brazil -- 6.4%
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Aracruz Celulose SA (PFD Shares) 2,000 $ 11,038
Arcelor Brasil SA 600 10,566
Banco Bradesco SA 400 13,297
Banco Bradesco SA (PFD Shares) 1,300 46,266
Banco do Brasil SA 500 12,147
Banco Itau Holding Financeira SA 400 11,169
Banco Itau Holding Financeira SA (PFD Shares) 1,900 62,652
Bradespar SA (PFD Shares) 300 11,644
Brasil Telecom Participacoes SA (PFD Shares) 1,700,000 11,331
Centrais Eletricas Brasileiras SA 900,000 18,985
Centrais Eletricas Brasileiras SA (Class "B" Shares) (PFD Shares) 500,000 10,033
Centrais Eletricas de Santa Catarina SA (PFD Shares) 1,500 25,355
Cia de Bebidas das Americas (PFD Shares) 189,700 83,404
Cia de Concessoes de Concessoes Rodoviarias (CCR) 1,100 11,767
Cia de Saneamento Basico do Estado de Sao Paulo 90,000 10,840
Cia Energetica de Minas Gerais (PFD Shares) 516,200 22,314
Cia Siderurgica Nacional SA (CSN) 400 12,441
Cia Vale do Rio Doce 2,300 58,253
Cia Vale do Rio Doce (PFD Shares) 3,000 64,743
Diagnosticos da America SA(a) 600 11,787
Duratex SA (PFD Shares) 1,000 12,044
Empresa Brasileira de Aeronautica SA 6,800 70,672
Gerdau SA (PFD Shares) 800 11,749
Gol Linhas Aereas Inteligentes SA (PFD Shares) 300 9,247
Investimentos Itau SA (PFD Shares) 4,100 18,640
Lojas Americanas SA (PFD Shares) 557,000 25,271
Lojas Renner SA 1,000 12,530
Metalurgica Gerdau SA (PFD Shares) 600 10,861
Natura Cosmeticos SA 800 11,038
Net Servicos de Comunicacao SA (PFD Shares)(a) 1,100 11,206
Perdigao SA(a) 900 10,503
Petroleo Brasileiro SA 3,000 66,511
Petroleo Brasileiro SA (PFD Shares) 4,400 88,494
Randon Participacoes SA (PFD Shares) 3,100 10,802
Sadia SA (PFD Shares) 4,000 11,824
Souza Cruz SA 1,200 18,297
Tam SA (PFD Shares) 500 15,224
Tele Norte Leste Participacoes SA 400 11,936
Tele Norte Leste Participacoes SA (PFD Shares) 1,700 24,848
Tim Participacoes SA (PFD Shares) 3,400,000 11,434
Unibanco - Uniao de Bancos Brasileiros SA 2,800 22,198
Unibanco - Uniao de Bancos Brasileiros SA (PFD Shares) 3,200 10,507
Usinas Siderurgicas de Minas Gerais SA 300 11,766
Usinas Siderurgicas de Minas Gerais SA (PFD Shares) 400 13,620
Vivo Participacoes SA (PFD Shares)(a) 3,600 12,393
Votorantim Celulose e Papel SA (PFD Shares) 600 11,077
Weg SA (PFD Shares) 3,200 15,566
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$ 1,080,290
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Bulgaria -- 0.8%
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Albena(a) 550 $ 28,359
Bulgarian Telecommunications Co. 11,600 76,392
Sopharma AD 6,000 26,629
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$ 131,380
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Chile -- 3.0%
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Administradora de Fondos de Pensiones Provida SA (ADR) 800 $ 20,376
Antarchile SA (Series "A") 1,520 21,170
Banco de Chile 298,000 21,405
Banco de Credito e Inversiones 800 22,422
Banco Santander Chile SA (ADR) 500 24,115
Cencosud SA 7,800 22,262
Cia Cervecerias Unidas SA (ADR) 900 24,759
Coia General de Electricidad SA 2,900 21,825
Colbun SA 110,000 22,111
Corpbanca 3,933,700 19,794
Distribucion y Servicio D&S SA (ADR) 1,000 18,660
Empresa Nacional de Electricidad SA (ADR) 1,000 32,570
Empresa Nacional de Telecomunicaciones SA 2,100 21,526
Empresas CMPC SA 800 24,999
Empresas Copec SA 2,200 24,018
Enersis SA (ADR) 1,900 26,201
Lan Airlines SA 2,700 23,407
Madeco SA(a) 214,000 22,426
Masisa SA (ADR) 2,600 23,192
S.A.C.I. Falabella SA 13,320 43,020
Sociedad Quimica y Minera de Chile SA (Series "B") (ADR) 200 24,476
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$ 504,734
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China -- 6.0%
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Aluminum Corp. of China Ltd. (Class "H" Shares) 28,000 $ 19,614
Baidu.com, Inc. (ADR)(a) 170 14,838
Bank of China Ltd. (Class "H" Shares)(a) 111,000 47,740
Bank of Communications Ltd. (Class "H" Shares) 17,000 12,722
Chaoda Modern Agriculture Holdings Ltd. 28,000 16,924
China Construction Bank (Class "H" Shares)(144A) 93,000 41,852
China International Marine Containers Co., Ltd. (Class "B" Shares) 10,010 14,099
China Life Insurance Co., Ltd. (Class "H" Shares) 22,000 46,376
China Mengniu Dairy Co., Ltd. 8,000 14,565
China Merchants Holdings International Co., Ltd. 22,000 64,156
China Mobile Hong Kong Ltd. 13,500 110,151
China Netcom Group Corp. (Hong Kong) Ltd. 8,000 14,192
China Overseas Land & Investment Ltd. 20,000 18,175
China Petroleum & Chemical Corp. (Class 'H' Shares) 62,000 42,823
China Resources Enterprise Ltd. 8,000 18,500
China Shenhua Energy Co., Ltd. (Class "H" Shares) 7,500 13,134
China Shipping Development Co., Ltd. (Class "H" Shares) 16,000 17,364
China Telecom Corp. Ltd. (Class "H" Shares) 40,000 15,063
China Travel International Investment Hong Kong Ltd. 66,000 14,908
China Unicom Ltd. 14,000 15,482
China Vanke Co., Ltd. (Class "B" Shares) 16,000 19,290
CNOOC Ltd. 43,000 36,081
COFCO International Ltd. 22,000 19,563
Cosco Pacific Ltd. 8,000 16,503
Denway Motors Ltd. 70,000 25,855
Dongfeng Motor Group Corp. (Class "H" Shares)(a) 22,000 9,764
Focus Media Holding Ltd. (ADR)(a) 200 10,578
Huaneng Power International, Inc. (Class "H" Shares) 26,000 20,411
Jiangxi Copper Co., Ltd. (Class "H" Shares) 16,000 17,292
Kingboard Chemical Holdings Ltd. 4,500 16,020
Lenovo Group Ltd. 42,000 17,801
Netease.com, Inc. (ADR)(a) 1,200 19,800
PetroChina Co., Ltd. (Class "H" Shares) 48,000 52,888
Ping An Insurance Group Co. of China Ltd. (Class "H" Shares) 4,000 13,871
Samson Holding Ltd. 30,000 14,602
Semiconductor Manufacturing International Corp.(a) 115,000 13,445
Shanghai Industrial Holdings Ltd. 8,000 15,529
SINA Corp.(a) 800 20,568
Sinopec-China Petroleum & Chemical Corp. (Class "H" Shares) 34,000 14,392
Tingyi (Cayman Islands) Holding Corp. 26,000 19,616
Tsingtao Brewery Co., Ltd. (Class "H" Shares) 12,000 16,653
Yantai Changyu Pioneer Wine Co., Ltd. (Class "B" Shares) 5,000 17,030
Yanzhou Coal Mining Co., Ltd. (Class "H" Shares) 22,000 14,479
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$ 1,014,709
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Colombia -- 0.7%
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Bancolombia SA (PFD Shares) (ADR) 1,800 $ 55,026
Compania de Cemento Argos SA 4,500 22,174
Grupo Nacional de Chocolates SA 3,200 21,892
Interconexion Electrica SA 9,000 22,135
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$ 121,227
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Croatia -- 1.0%
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Adris Grupa DD (PFD Shares) 80 $ 61,806
Atlantska Plovidba DD 130 20,291
Ericsson Nikola Tesla 40 17,511
Koncar-Elektroindustrija DD(a) 180 20,293
Petrokemija DD(a) 400 14,078
Podravka Prehrambena Industija DD 250 21,239
Privredna banka Zagreb DD(a) 77 15,353
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$ 170,571
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Czech Republic -- 3.4%
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CEZ AS 5,430 $ 215,138
Komercni Banka AS 694 107,841
Philip Morris CR AS 44 23,047
Telefonica 02 Czech Republic AS 3,004 63,144
Unipetrol AS(a) 8,823 82,645
Zentiva NV 1,445 82,571
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$ 574,386
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Egypt -- 1.4%
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Commercial International Bank 2,368 $ 21,512
Eastern Tobacco 192 9,525
Egyptian Financial Group-Hermes Holding SAE(a) 2,321 17,969
El Ezz Aldekhela Steel Alexa Co. 65 11,527
MobiNil-Egyptian Co. for Mobil Services 370 10,259
National Societe General Bank 1,500 12,664
Olympic Group Financial Investments 1,800 16,870
Orascom Construction Industries (OCI) 1,262 54,584
Orascom Hotels & Development 1,700 10,840
Orascom Telecom Holding SAE 686 38,812
Sidi Kerir Petrochemicals Co. 600 10,464
Suez Cement Co. 1,200 14,754
Telecom Egypt 3,484 9,872
- -----------------------------------------------------------------------------------------------------------------------------------
$ 239,652
- -----------------------------------------------------------------------------------------------------------------------------------
Estonia -- 0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
AS Eesti Telekom 1,554 $ 15,262
AS Harju Elekter 4,100 19,431
AS Merko Ehitus 618 12,700
AS Tallink Group Ltd.(a) 8,058 45,508
AS Tallinna Kaubamaja 3,000 22,086
AS Tallinna Vesi 1,100 19,854
- -----------------------------------------------------------------------------------------------------------------------------------
$ 134,841
- -----------------------------------------------------------------------------------------------------------------------------------
Hungary -- 3.0%
- -----------------------------------------------------------------------------------------------------------------------------------
BorsodChem Rt. 1,200 $ 17,085
Delmagyarorszagi Aramszolgatato Rt 170 16,528
EGIS Rt.(a) 100 13,054
FHB Land Credit & Mortgage Bank Rt.(a) 2,400 18,146
Fotex Rt.(a) 5,500 16,172
Magyar Telekom Rt.(a) 20,600 95,871
MOL Hungarian Oil & Gas Rt 1,190 118,011
OTP Bank Rt. 3,840 134,625
RABA Automotive Holding Rt.(a) 2,500 11,941
Richter Gedeon Rt. 350 73,219
- -----------------------------------------------------------------------------------------------------------------------------------
$ 514,652
- -----------------------------------------------------------------------------------------------------------------------------------
India -- 6.0%
- -----------------------------------------------------------------------------------------------------------------------------------
ACC Ltd. 490 $ 10,506
Bajaj Auto Ltd. (GDR) 200 12,163
Bharat Forge Ltd. 1,250 9,959
Bharat Heavy Electricals Ltd. 250 13,375
Bharti Airtel Ltd.(a) 3,240 38,048
Cipla Ltd. 1,850 10,734
Container Corp. of India Ltd. 330 14,839
Dr. Reddy's Laboratories Ltd. (ADR) 800 13,440
Gail India Ltd. (GDR) 500 16,837
Glaxosmithkline Pharmaceuticals Ltd. 380 9,719
Grasim Industries Ltd. (GDR)(144A) 300 18,150
Gujarat Ambuja Cements Ltd. 4,100 10,708
HDFC Bank Ltd. 1,130 25,181
HDFC Bank Ltd. (ADR) 400 27,704
Hero Honda Motors Ltd. 600 10,050
Hindalco Industries Ltd. (GDR)(144A) 3,700 15,355
Hindustan Lever Ltd. 3,900 20,419
Hindustan Petroleum Corp. Ltd. 1,700 12,214
Hindustan Zinc Ltd. 780 15,610
Housing Development Finance Corp. 480 15,581
ICICI Bank Ltd. 1,520 26,071
ICICI Bank Ltd. (ADR) 1,200 42,180
Indiabulls Financial Services Ltd. 1,700 15,979
Indian Hotels 4,000 12,614
Indian Oil Corp. Ltd. 860 9,757
Infosys Technologies Ltd. 1,640 76,164
ITC Ltd. 3,700 15,614
ITC Ltd. (GDR)(144A) 7,800 32,682
Larsen & Toubro Ltd. (GDR) 800 23,312
Mahanagar Telephone Nigam Ltd. (ADR) 2,500 16,250
Mahindra & Mahindra Ltd. 720 12,472
Maruti Udyog Ltd. 490 10,544
NTPC Ltd. 8,200 23,555
Oil & Natural Gas Corp. Ltd. 1,200 21,679
Patni Computer Systems Ltd. (ADR) 600 11,580
Ranbaxy Labratories Ltd. (GDR) 1,500 13,170
Reliance Capital Ltd. 860 11,162
Reliance Communications Ltd.(a) 5,760 48,346
Reliance Energy Ltd. (GDR) 500 15,774
Reliance Industries Ltd. 1,160 31,505
Reliance Industries Ltd. (GDR)(144A) 700 37,765
Satyam Computer Services Ltd. (ADR) 2,000 44,220
State Bank of India (GDR) 300 18,900
Tata Consultancy Services Ltd. 700 16,847
Tata Motors Ltd. (ADR) 600 10,908
Tata Power Co., Ltd. 880 10,569
Tata Steel Ltd. 900 9,813
Ultra Tech Cement Ltd. 700 13,626
UTI Bank Ltd. 2,000 19,323
Videsh Sanchar Nigam Ltd. (ADR) 1,000 20,490
Wipro Ltd. (ADR) 1,000 14,560
Zee Telefilms Ltd.(a) 2,000 13,412
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,021,435
- -----------------------------------------------------------------------------------------------------------------------------------
Indonesia -- 2.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Aneka Tambang Tbk PT 17,500 $ 13,288
Astra International Tbk PT 29,500 43,232
Bakrie & Brothers Tbk PT(a) 1,254,000 21,223
Bank Central Asia Tbk PT 55,000 28,003
Bank Danamon Indonesia Tbk PT 18,000 11,731
Bank Internasional Indonesia Tbk PT 500,000 11,185
Bank Mandiri PT 56,000 16,684
Bank Niaga Tbk PT 135,000 12,831
Bank Rakyat Indonesia PT 61,500 32,990
Berlian Laju Tanker Tbk PT 43,500 8,906
Bumi Resources Tbk PT 247,000 20,829
Gudang Garam Tbk PT 8,500 9,163
Indah Kiat Pulp & Paper Corp. Tbk PT(a) 100,000 10,280
Indocement Tunggal Prakarsa Tbk PT 23,000 12,576
Indofood Sukses Makmur Tbk PT 78,000 11,344
Indonesian Satellite Corp. Tbk PT 20,500 11,717
International Nickel Indonesia Tbk PT 4,500 12,949
Kalbe Farma Tbk PT(a) 76,500 11,381
Perusahaan Gas Negara PT 15,500 19,329
Semen Gresik Persero Tbk PT 3,600 11,461
Tambang Batubara Bukit Asam Tbk PT (Series "B") 45,000 16,970
Telekomunikasi Indonesia Tbk PT 76,500 70,090
Unilever Indonesia Tbk PT 20,500 10,762
United Tractors Tbk PT 73,500 52,640
- -----------------------------------------------------------------------------------------------------------------------------------
$ 481,564
- -----------------------------------------------------------------------------------------------------------------------------------
Israel -- 3.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Africa-Israel Investments Ltd. 200 $ 14,140
Bank Hapoalim B.M. 7,000 34,956
Bank Leumi Le-Israel 7,400 30,665
Bezeq Israeli Telecommunication Corp. Ltd. 34,600 47,170
Check Point Software Technologies Ltd.(a) 900 18,648
Delek Group Ltd. 60 10,280
Elbit Systems Ltd. 400 12,613
Gazit Globe (1982) Ltd. 900 11,941
IDB Development Corp. Ltd. 350 10,850
Israel Chemicals Ltd. 9,400 53,612
Israel Corp. Ltd. 55 25,633
Israel Discount Bank Ltd. (Series "A")(a) 6,200 12,799
Makhteshim-Agan Industries Ltd. 5,000 25,100
Mizrahi Tefahot Bank Ltd. 1,600 10,909
msystems Ltd.(a) 250 9,122
Nice Systems Ltd.(a) 400 12,324
Orbotech Ltd.(a) 500 12,075
Ormat Industries Ltd. 1,100 11,409
Partner Communications Co., Ltd. 2,200 23,547
Syneron Medical Ltd.(a) 500 12,865
Teva Pharmaceutical Industries Ltd. 4,400 145,350
- -----------------------------------------------------------------------------------------------------------------------------------
$ 546,008
- -----------------------------------------------------------------------------------------------------------------------------------
Kenya -- 0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Bamburi Cement Co., Ltd. 9,800 $ 27,298
Barclays Bank of Kenya Ltd. 4,300 27,618
East African Breweries Ltd. 10,800 21,034
Kenya Airways Ltd. 12,800 21,966
Kenya Commercial Bank Ltd. 7,600 21,170
Mumias Sugar Co., Ltd. 28,700 21,426
- -----------------------------------------------------------------------------------------------------------------------------------
$ 140,512
- -----------------------------------------------------------------------------------------------------------------------------------
Luxembourg -- 0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Tenaris SA (ADR) 3,300 $ 127,347
- -----------------------------------------------------------------------------------------------------------------------------------
$ 127,347
- -----------------------------------------------------------------------------------------------------------------------------------
Malaysia -- 3.3%
- -----------------------------------------------------------------------------------------------------------------------------------
AMMB Holdings Bhd 8,800 $ 6,429
Astro All Asia Networks Plc 4,900 6,676
Berjaya Sports Toto Bhd 6,500 8,147
British American Tobacco Malaysia Bhd 600 6,940
Bumiputra-Commerce Holdings Bhd 11,300 21,326
Bursa Malaysia Bhd 6,200 10,076
Digi.com Bhd 2,500 8,142
Gamuda Bhd 16,000 17,335
Genting Bhd 3,700 27,091
Hong Leong Bank Bhd 4,300 6,181
IJM Corp. Bhd 3,900 6,562
IOI Corp. Bhd 5,300 24,934
Kuala Lumpur Kepong Bhd 2,000 6,400
Lafarge Malayan Cement Bhd 28,000 7,356
Magnum Corp. Bhd 16,800 10,433
Malakoff Bhd 2,300 6,203
Malayan Banking Bhd 8,400 25,758
Malaysia International Shipping Corp. Bhd 7,200 17,235
Malaysian Oxygen Bhd 1,800 6,160
Malaysian Pacific Industries Bhd 2,200 5,959
Malaysian Plantations Bhd(a) 16,500 10,614
Maxis Communications Bhd 12,600 30,861
MMC Corp. Bhd 6,900 5,968
O.Y.L. Industries Bhd 18,900 29,495
Petronas Dagangan Bhd 5,500 6,800
PLUS (Projek Lebuhraya Utara Selatan) Expressways Bhd 13,600 10,716
PPB Group Bhd 10,000 12,538
PPB Oil Palms Bhd 4,900 10,995
Public Bank Bhd 12,800 24,157
Resorts World Bhd 1,900 6,188
RHB Capital Bhd 8,500 6,810
Road Builder Holdings Bhd 13,700 10,902
Scomi Group Bhd 42,000 10,109
Shell Refining Co. Bhd 2,500 7,254
Sime Darby Bhd 16,600 27,938
SP Setia Bhd 6,000 6,439
Ta Ann Holdings Bhd 7,000 19,931
Tanjong Plc 3,000 9,933
Telekom Malaysia Bhd 8,900 21,314
Tenaga Nasional Bhd 6,300 17,239
Titan Chemicals Corp. Bhd 36,000 12,023
UEM World Bhd 23,600 10,768
YTL Cement Bhd 14,000 10,542
YTL Power International Bhd 11,300 6,773
- -----------------------------------------------------------------------------------------------------------------------------------
$ 561,650
- -----------------------------------------------------------------------------------------------------------------------------------
Mexico -- 6.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Alfa SA de CV (Series "A") 8,500 $ 47,234
America Movil SA de CV (Series "A") 3,700 7,908
America Movil SA de CV (Series "L") 90,900 194,785
America Telecom SA de CV (Series "A1")(a) 3,200 24,532
Carso Global Telecom SA de CV (Series "A1")(a) 4,000 12,359
Cemex SAB de CV (Series "CPO")(a) 42,200 129,995
Coca-Cola Femsa SA de CV (Series "L") 3,200 11,047
Corp Moctezuma SA de CV 5,000 11,616
Corporacion GEO SA de CV (Series "B")(a) 1,600 7,331
Desarrolladora Homex SA de CV(a) 1,600 11,753
Desc SA de CV (Series "B")(a) 12,100 14,628
Empresas ICA SA de CV(a) 5,900 20,203
Fomento Economico Mexicano SA de CV (Series "UBD") 4,100 39,692
Grupo Aeroportuario del Sureste SAB de CV (Class "B" Shares) 2,700 10,199
Grupo Bimbo SA de CV (Series "A") 3,000 12,099
Grupo Carso SA de CV (Series "A1") 15,200 51,131
Grupo Elektra SA de CV 1,100 11,745
Grupo Financiero Banorte SA de CV (Class "O" Shares) 30,600 110,896
Grupo Financiero Inbursa SA de CV (Class "O" Shares) 28,000 50,763
Grupo Mexico SA de CV (Series "B") 9,900 34,590
Grupo Modelo SA de CV (Series "C") 2,300 11,114
Grupo Televisa SA (Series "CPO") 10,800 53,381
Impulsora del Desarrollo y el Empleo en America Latina SA de CV (Series "B1")(a) 17,400 17,462
Industrias Penoles SA de CV 1,200 9,880
Kimberly-Clark de Mexico SA de CV 2,600 10,870
Telefonos de Mexico SA de CV (Series "L") 50,500 66,683
TV Azteca SA de CV (Series "CPO") 15,000 10,593
Wal-Mart de Mexico SA de CV (Series "V") 18,000 62,557
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,057,046
- -----------------------------------------------------------------------------------------------------------------------------------
Morocco -- 1.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Attijariwafa Bank 200 $ 47,188
Banque Marocaine du Commerce Exterieur (BMCE) 160 20,254
Centrale Laitiere 50 29,098
Ciments du Maroc 100 25,903
Lafarge Ciments 40 19,709
Maroc Telecom 3,020 45,893
ONA SA 240 38,109
Societe des Brasseries du Maroc 100 21,376
Societe Nationale d'Investissement 130 20,173
- -----------------------------------------------------------------------------------------------------------------------------------
$ 267,703
- -----------------------------------------------------------------------------------------------------------------------------------
Netherlands -- 0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
XS Retail Group NV (GDR)(a) 1,000 $ 22,170
- -----------------------------------------------------------------------------------------------------------------------------------
$ 22,170
- -----------------------------------------------------------------------------------------------------------------------------------
Nigeria -- 0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Ashaka Cement Plc 25,000 $ 10,741
First Bank of Nigeria Plc 87,800 25,262
Guaranty Trust Bank Plc 71,000 9,190
Guiness Nigeria Plc 10,375 8,009
Intercontinental Bank Plc(a) 79,500 9,999
Mobil Nigeria Plc 7,000 10,097
Nigerian Breweries Plc 36,600 11,258
Oando Plc 17,300 9,712
UAC of Nigeria Plc(a) 50,200 10,568
Union Bank of Nigeria Plc 47,080 8,994
- -----------------------------------------------------------------------------------------------------------------------------------
$ 113,830
- -----------------------------------------------------------------------------------------------------------------------------------
Pakistan -- 0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Muslim Commercial Bank Ltd. 6,500 $ 29,424
National Bank of Pakistan 4,500 21,149
Oil & Gas Development Co., Ltd. 9,500 23,255
Pakistan Petroleum Ltd. 5,200 21,856
Pakistan Telecommunication Co., Ltd. 30,500 22,402
Unilever Pakistan Ltd. 500 16,491
- -----------------------------------------------------------------------------------------------------------------------------------
$ 134,577
- -----------------------------------------------------------------------------------------------------------------------------------
Peru -- 1.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Alicorp SA 66,800 $ 48,843
Cia de Minas Buenaventura SA 800 20,660
Cia Minera Milpo SA 6,500 18,687
Credicorp Ltd. 700 29,750
Edegel SA 58,000 24,001
Ferreyros SA 20,300 20,527
Luz del Sur SAA 16,500 20,535
Sociedad Minera Cerro Verde SA(a) 1,700 20,740
Southern Copper Corp. 400 20,700
Volcan Cia Minera SA (Class "B" Shares) 13,414 23,372
- -----------------------------------------------------------------------------------------------------------------------------------
$ 247,815
- -----------------------------------------------------------------------------------------------------------------------------------
Philippines -- 3.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Aboitiz Equity Ventures, Inc. 246,000 $ 28,121
Ayala Corp. 1,500 14,731
Ayala Land, Inc. 48,700 14,879
Banco De Oro(a) 16,900 14,604
Bank of the Philippine Islands 33,300 41,360
China Banking Corp. 800 10,826
Equitable PCI Bank, Inc.(a) 7,400 10,673
First Philippine Holdings Corp. 10,000 10,515
Globe Telecom, Inc. 600 13,477
Holcim Philippines, Inc. 102,000 12,244
International Container Terminal Services, Inc. 32,000 12,663
JG Summit Holding, Inc. 260,000 41,705
Jollibee Foods Corp. 14,000 11,083
Manila Electric Co. (Class "B" Shares)(a) 17,000 10,734
Megaworld Corp. 397,000 18,638
Metropolitan Bank & Trust Co. 16,700 15,731
Petron Corp. 277,000 23,048
Philippine Long Distance Telephone Co. 1,900 90,724
San Miguel Corp. (Class "B" Shares) 42,900 64,085
SM Investments Corp. 2,600 14,600
SM Prime Holdings, Inc. 64,000 11,673
Universal Robina Corp. 42,000 18,095
- -----------------------------------------------------------------------------------------------------------------------------------
$ 504,209
- -----------------------------------------------------------------------------------------------------------------------------------
Poland -- 3.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Agora SA 1,100 $ 10,353
Bank Pekao SA 680 45,912
Bank Przemyslowo-Handlowy BPH 100 28,664
Bank Zachodni WBK SA 160 10,890
BRE Bank SA(a) 120 11,493
Budimex SA(a) 800 19,232
Cersanit-Krasnystaw SA(a) 1,500 19,872
Debica SA (Series "A") 470 10,926
Getin Holding SA(a) 2,850 9,842
Globe Trade Centre SA(a) 1,100 12,088
Grupa Lotos SA(a) 700 10,392
ING Bank Slaski SA 50 12,244
KGHM Polska Miedz SA 1,080 38,934
Netia SA 6,630 11,343
Orbis SA 660 11,088
Polish Oil & Gas 9,800 10,043
Polski Koncern Naftowy Orlen SA 3,150 49,786
Powszechna Kasa Oszczednosci Bank Polski SA 3,400 42,900
Prokom Software SA 500 19,780
Softbank SA 800 10,751
Telekomunikacja Polska SA 10,300 75,774
TVN SA(a) 900 34,078
- -----------------------------------------------------------------------------------------------------------------------------------
$ 506,385
- -----------------------------------------------------------------------------------------------------------------------------------
Romania -- 0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Antibiotice SA(a) 40,500 $ 25,560
Banca Transilvania(a) 40,500 16,434
BRD-Group Societe Generale 5,400 38,007
Rompetrol Rafinare SA(a) 492,500 15,615
SNP Petrom SA 76,000 17,336
Turbomechanica SA 53,200 15,861
- -----------------------------------------------------------------------------------------------------------------------------------
$ 128,813
- -----------------------------------------------------------------------------------------------------------------------------------
Russia -- 6.2%
- -----------------------------------------------------------------------------------------------------------------------------------
LUKOIL 890 $ 71,958
LUKOIL (ADR) 1,400 113,120
Mining and Metallurgical Co. 200 28,216
Mobile Telesystems (ADR) 1,400 61,712
OAO Gazprom 28,500 301,053
OAO Rosneft Oil Co. 2,700 23,192
Polyus Gold Co.(a) 340 16,188
RAO Unified Energy System (GDR) 79,400 59,936
RBC Information Systems(a) 1,550 16,615
Sberbank RF 74 166,254
Sistema JSFC (GDR) 530 14,045
Surgutneftegaz (PFD Shares)(a) 17,500 15,801
Surgutneftegaz OJSC 45,900 58,529
Tatneft 3,300 15,032
Transneft 10 21,307
VimpelCom (ADR)(a) 640 42,234
Wimm-Bill-Dann Foods OJSC (ADR) 630 26,554
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,051,746
- -----------------------------------------------------------------------------------------------------------------------------------
South Africa -- 6.1%
- -----------------------------------------------------------------------------------------------------------------------------------
ABSA Group Ltd. 1,250 $ 19,269
AECI Ltd. 530 4,450
African Bank Investments Ltd. 1,100 4,090
Allied Electronics Corp. Ltd. 382 1,601
Allied Technologies Ltd. 600 4,673
Anglo Platinum Ltd. 200 21,348
AngloGold Ashanti Ltd. 560 23,692
Aspen Pharmacare Holdings Ltd.(a) 3,250 14,746
Aveng Ltd. 4,350 18,371
Barloworld Ltd. 2,420 46,702
BidBEE Ltd.(a) 500 3,996
Bidvest Group Ltd. 3,310 54,754
DataTec Ltd. 1,400 5,652
Edgars Consolidated Stores Ltd. 5,200 25,863
Ellerine Holdings Ltd. 470 4,512
FirstRand Ltd. 17,150 44,681
Foschini Ltd. 700 5,028
Gold Fields Ltd. 2,240 37,141
Group Five Ltd. 960 4,910
Growthpoint Properties Ltd. 2,800 4,689
Harmony Gold Mining Co., Ltd.(a) 1,910 29,362
Impala Platinum Holdings Ltd. 290 50,824
Imperial Holdings Ltd. 1,080 21,615
Investec Ltd. 500 5,017
JD Group Ltd. 440 4,563
Johnnic Communications Ltd. 450 4,194
Kumba Resources Ltd. 210 4,019
Liberty Group Ltd. 400 4,035
Massmart Holdings Ltd. 700 5,621
Mittal Steel South Africa Ltd. 400 4,771
MTN Group Ltd. 12,290 111,544
Murray & Roberts Holdings Ltd. 4,500 23,180
Mvelaphanda Group Ltd. 4,900 5,901
Nampak Ltd. 1,738 4,542
Naspers Ltd. (Class "N" Shares) 1,210 21,823
Nedbank Group Ltd. 400 6,589
Network Healthcare Holdings Ltd. 9,250 15,659
Pick'n Pay Stores Ltd. 970 3,965
Pretoria Portland Cement Co., Ltd. 80 4,120
Remgro Ltd. 1,800 37,925
Reunert Ltd. 1,760 18,825
RMB Holdings Ltd. 5,400 21,192
Sanlam Ltd. 8,290 19,659
Sappi Ltd. 300 4,261
Sasol Ltd. 2,300 78,807
Shoprite Holdings Ltd. 1,200 4,381
Standard Bank Group Ltd. 4,540 53,232
Steinhoff International Holdings Ltd. 6,940 22,570
Sun International Ltd. 400 5,796
Telkom South Africa Ltd. 2,270 41,932
Tiger Brands Ltd. 1,000 20,694
Tongaat-Hulett Group Ltd. 840 10,815
Truworths International Ltd. 1,400 4,882
Woolworths Holdings Ltd. 2,200 4,706
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,031,189
- -----------------------------------------------------------------------------------------------------------------------------------
South Korea -- 5.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Amorepacific Corp.(a) 50 $ 25,897
Cheil Industries, Inc. 250 10,399
CJ Corp. 70 7,901
Daegu Bank 650 10,739
Daewoo Engineering & Construction Co., Ltd. 560 12,111
Daewoo Securities Co., Ltd. 650 12,043
Daewoo Shipbuilding & Marine Engineering Co., Ltd. 330 10,596
Dongkuk Steel Mill Co., Ltd. 580 10,944
GS Engineering & Construction Corp. 150 11,655
GS Holdings Corp. 200 6,987
Hana Financial Group, Inc. 450 20,714
Hanjin Shipping Co., Ltd. 430 11,622
Hankook Tire Co., Ltd. 740 10,660
Hanwha Chemical Corp. 1,100 12,340
Hanwha Corp. 380 12,893
Honam Petrochemical Corp. 170 10,645
Hynix Semiconductor, Inc.(a) 470 17,032
Hyundai Development Co. 160 8,058
Hyundai Engineering & Construction Co., Ltd.(a) 200 11,168
Hyundai Heavy Industries Co., Ltd. 60 8,811
Hyundai Merchant Marine Co., Ltd. 320 5,669
Hyundai Mobis 80 7,808
Hyundai Motor Co. 420 34,087
Hyundai Motor Co., Ltd. (PFD Shares) 200 9,434
Hyundai Steel Co. 180 6,383
Industrial Bank of Korea 580 10,139
Kangwon Land, Inc. 310 5,999
Kia Motors Corp. 350 5,290
Kookmin Bank 610 48,369
Korea Electric Power Corp. 920 35,465
Korea Gas Corp. 280 10,961
Korea Zinc Co., Ltd. 130 14,331
Korean Air Lines Co., Ltd. 290 10,292
KT Corp. 820 37,224
KT Freetel Co., Ltd. 230 7,048
KT&G Corp. 310 19,147
LG Card Co., Ltd.(a) 170 10,817
LG Chem Ltd. 180 7,326
LG Corp. 370 10,513
LG Dacom Corp. 450 10,441
LG Electronics, Inc. 280 16,917
LG Telecom Ltd.(a) 500 5,775
LG.Philips LCD Co., Ltd.(a) 170 5,404
Lotte Shopping Co., Ltd. 20 7,575
NHN Corp.(a) 60 5,943
POSCO 281 78,589
S-Oil Corp. 100 6,817
Samsung Corp. 230 7,666
Samsung Electronics Co., Ltd. 200 129,513
Samsung Electronics Co., Ltd. (PFD Shares) 41 19,869
Samsung Fire & Marine Insurance Co., Ltd. 60 9,290
Samsung Heavy Industries Co., Ltd. 270 7,227
Samsung SDI Co., Ltd. 130 9,372
Samsung Securities Co., Ltd. 180 9,722
Shinhan Financial Group Co., Ltd. 780 36,051
Shinsegae Co., Ltd. 20 11,521
SK Corp. 320 23,492
SK Networks Co., Ltd.(a) 150 4,540
SK Telecom Co., Ltd. 180 38,985
Woori Finance Holdings Co., Ltd. 340 7,257
- -----------------------------------------------------------------------------------------------------------------------------------
$ 991,483
- -----------------------------------------------------------------------------------------------------------------------------------
Taiwan -- 5.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Acer, Inc. 8,000 $ 14,494
Advanced Semiconductor Engineering, Inc.(a) 13,000 11,943
Asia Cement Corp. 14,000 11,414
Asia Optical Co., Inc. 4,000 16,996
Asustek Computer, Inc. 4,400 10,681
AU Optronics Corp. 16,210 21,847
Catcher Technology Co., Ltd. 2,000 17,238
Cathay Financial Holding Co., Ltd. 15,348 29,751
Chang Hwa Commercial Bank(a) 18,000 11,164
Chi Mei Optoelectronics Corp. 9,432 9,743
China Development Financial Holding Corp. 26,780 10,418
China Steel Corp. 24,000 21,215
Chinatrust Financial Holding Co., Ltd. 14,560 10,553
Chunghwa Telecom Co., Ltd. 33,280 56,945
Compal Electronics, Inc. 13,000 10,874
Delta Electronics, Inc. 4,000 11,298
EVA Airways Corp. 25,000 9,852
Evergreen Marine Corp. 16,050 9,220
Far Eastern Textile Ltd. 15,000 11,353
Far EasTone Telecommunications Co., Ltd. 19,000 21,711
First Financial Holding Co., Ltd. 20,000 13,698
Formosa Chemicals & Fibre Corp. 20,000 30,431
Formosa Petrochemical Corp. 6,000 11,739
Formosa Plastics Corp. 22,000 32,335
Foxconn Technology Co., Ltd. 2,000 19,483
Fubon Financial Holding Co., Ltd. 13,000 10,585
High Tech Computer Corp. 1,000 24,757
Hon Hai Precision Industry Co., Ltd. 8,600 55,629
Hotai Motor Co., Ltd. 9,000 18,400
Hua Nan Financial Holdings Co., Ltd. 18,000 11,656
Largan Precision Co., Ltd. 1,000 19,861
Lite-On Technology Corp. 7,034 8,497
MediaTek, Inc. 3,100 30,180
Mega Financial Holding Co., Ltd. 14,000 9,883
Nan Ya Plastics Corp. 23,270 33,565
Pou Chen Corp. 13,649 11,690
Powerchip Semiconductor Corp. 15,780 9,713
President Chain Store Corp. 5,000 10,999
Quanta Computer, Inc. 7,139 10,571
Shin Kong Financial Holding Co., Ltd. 17,000 15,020
Siliconware Precision Industries Co. 9,000 11,433
SinoPac Financial Holdings Co., Ltd. 23,000 11,625
Taishin Financial Holdings Co., Ltd.(a) 21,000 10,749
Taiwan Cement Corp. 15,000 11,830
Taiwan Mobile Co., Ltd. 33,000 32,903
Taiwan Semiconductor Manufacturing Co., Ltd. 43,000 78,670
Uni-President Enterprises Corp. 27,000 24,026
United Microelectronics Corp. 56,204 31,167
Wan Hai Lines Ltd. 31,000 17,048
Yulon Motor Co., Ltd. 9,135 9,049
- -----------------------------------------------------------------------------------------------------------------------------------
$ 955,902
- -----------------------------------------------------------------------------------------------------------------------------------
Thailand -- 3.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Advanced Info Service Pcl(b) 12,700 $ 31,151
Airports of Thailand Pcl(b) 4,100 7,258
Bangkok Bank Pcl(b) 4,300 14,041
Bangkok Bank Pcl 6,700 20,937
Bangkok Expressway Pcl(b) 27,000 17,279
Bank of Ayudhya Pcl(b) 13,600 7,057
Banpu Pcl(b) 2,700 11,817
BEC World Pcl(b) 51,100 25,327
Big C Supercenter Pcl(b) 6,300 6,648
Big C Supercenter Pcl 9,900 10,458
Cal-Comp Electronics (Thailand) Pcl(b) 195,000 21,029
Central Pattana Pcl(b) 12,000 7,157
Charoen Pokphand Foods Pcl(b) 43,500 5,876
CP Seven Eleven Pcl(b) 130,000 22,835
Delta Electronics (Thailand) Pcl(b) 13,800 6,802
Electricity Generating Pcl 5,100 12,482
Hana Microelectronics Pcl(b) 9,300 6,838
IRPC Pcl(a)(b) 33,900 6,601
Italian-Thai Development Pcl(b) 46,300 7,818
Kasikornbank Pcl(b) 6,000 11,713
Kasikornbank Pcl 9,500 17,804
Krung Thai Bank Pcl(b) 23,200 8,277
Land and Houses Pcl 33,000 7,309
Minor International Pcl(b) 24,800 7,294
Precious Shipping Pcl(b) 10,100 11,965
PTT Chemical Pcl(b) 5,300 11,186
PTT Exploration & Production Pcl(b) 6,500 19,295
PTT Pcl(b) 7,260 43,892
Ratchaburi Electricity Generating Holding Pcl(b) 6,800 7,685
Siam Cement Pcl(b) 1,800 13,017
Siam Cement Pcl 3,100 20,397
Siam City Bank Pcl 23,400 13,667
Siam City Cement Pcl(b) 990 6,632
Siam Commercial Bank Pcl(b) 13,000 23,012
Siam Makro Pcl(b) 5,500 11,683
Sino Thai Engineering & Construction Pcl(b) 61,000 9,469
Thai Airways International Pcl(b) 5,900 7,150
Thai Oil Pcl(b) 10,800 17,941
Thai Union Frozen Products Pcl(b) 9,400 6,398
Thanachart Capital Pcl(b) 28,000 11,590
TMB Bank Pcl(a)(b) 117,000 11,248
True Corp. Pcl(a)(b) 27,100 6,218
- -----------------------------------------------------------------------------------------------------------------------------------
$ 554,253
- -----------------------------------------------------------------------------------------------------------------------------------
Turkey -- 3.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Akbank TAS 9,000 $ 50,650
Anadolu Efes Biracilik ve Malt Sanayii AS 700 19,038
Arcelik AS 3,200 20,441
Aygaz AS 6,900 17,680
Bursa Cimento Fabrikasi AS 1,400 10,595
Cimsa Cimento Sanayi ve Ticaret AS 1,800 10,929
Denizbank AS(a) 1,200 12,009
Dogan Sirketler Grubu Holding AS 8,100 34,247
Dogan Yayin Holding AS(a) 4,500 17,027
Enka Insaat ve Sanayi AS 2,000 16,791
Eregli Demir ve Celik Fabrikalari TAS 5,600 32,051
Finansbank AS(a) 8,026 31,846
Haci Omer Sabanci Holding AS 4,000 16,711
KOC Holding AS(a) 5,400 20,750
Migros Turk TAS(a) 1,500 17,133
Petkim Petrokimya Holding AS(a) 2,800 10,688
Trakya CAM Sanayii AS 3,700 10,265
Tupras-Turkiye Petrol Rafinerileri AS 1,900 31,368
Turk Hava Yollari Anonim Ortakligi (THY) AS(a) 3,000 13,444
Turk Sise ve Cam Fabrikalari AS(a) 4,100 15,701
Turkcell Iletisim Hizmetleri AS 11,100 59,807
Turkiye Garanti Bankasi AS 11,600 42,079
Turkiye Is Bankasi 5,500 35,242
Yapi ve Kredi Bankasi AS(a) 5,400 10,260
Yazicilar Holding AS (Class "A" Shares) 400 10,304
- -----------------------------------------------------------------------------------------------------------------------------------
$ 567,056
- -----------------------------------------------------------------------------------------------------------------------------------
United Arab Emirates -- 1.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Amlak Finance (PJSC)(a) 10,200 $ 19,189
Arabtec Holding Co. 15,000 22,542
Aramex (PJSC)(a) 42,000 38,535
Dubai Investments (PJSC) 13,700 19,544
Dubai Islamic Bank 14,100 38,388
Emaar Properties 25,400 95,776
National Central Cooling Co. (Tabreed) 42,500 34,944
- -----------------------------------------------------------------------------------------------------------------------------------
$ 268,918
- -----------------------------------------------------------------------------------------------------------------------------------
United States -- 0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Southern Copper Corp. 400 $ 20,552
- -----------------------------------------------------------------------------------------------------------------------------------
$ 20,552
- -----------------------------------------------------------------------------------------------------------------------------------
Venezuela -- 0.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Cia Anonima Nacional Telefonos de Venezuela CANTV (Class "D" Shares) (ADR) 3,500 $ 67,935
Mercantil Servicios Financieros CA (Series "B") (ADR) 10,300 66,249
- -----------------------------------------------------------------------------------------------------------------------------------
$ 134,184
- -----------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (cost $14,901,379) $ 16,065,006
- -----------------------------------------------------------------------------------------------------------------------------------
Investment Funds -- 1.0%
Saudi Arabia Investment Fund Ltd.(a) 1,151 $ 72,628
Vietnam Enterprise Investments Ltd.(a) 33,100 $ 105,920
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investment Funds (cost $190,480) $ 178,548
- -----------------------------------------------------------------------------------------------------------------------------------
Rights -- 0.0%
Banco Bradesco SA (Brazil) Expiring 11/21/06(a) 36 $ 336
Hyundai Merchant Marine (South Korea) Expiring 11/28/06(a) 45 84
Tim Participacoes SA (Brazil) Expiring 11/3/06(a) 10,430 5
- -----------------------------------------------------------------------------------------------------------------------------------
Total Rights (cost $0) $ 425
- -----------------------------------------------------------------------------------------------------------------------------------
Total Long-Term Investments -- 95.6%
(cost $15,091,859) $ 16,243,979
- -----------------------------------------------------------------------------------------------------------------------------------
Short-Term Investments -- 1.0%
Principal
Security Amount (000) Value
- -----------------------------------------------------------------------------------------------------------------------------------
Repurchase Agreements
- -----------------------------------------------------------------------------------------------------------------------------------
State Street Bank & Trust Corp. Repurchase Agreement, dated 10/31/06,
4.90%, due 11/1/06 (cost $174,000)(c) $ 174 $ 174,000
- -----------------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreements -- 1.0%
(cost $174,000) $ 174,000
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments -- 96.6%
(cost $15,265,859) $ 16,417,979
- -----------------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities -- 3.4% $ 570,368
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $ 16,988,347
- -----------------------------------------------------------------------------------------------------------------------------------
(144A)-- Security Exempt from registration under Rule 144A
of the Securities Act of 1933.
(ADR)-- American Depositary Receipt
(GDR)-- Global Depository Receipt
(PFD Shares)-- Preferred Shares
(a) Non-income producing security.
(b) Indicates a foreign registered security. Shares issued to foreign investors in markets that have foreign ownership
limits.
(c) Repurchase price of $174,024. Collateralized by $180,000 Federal National Mortgage Association 3.875% due 5/15/2007. The
aggregate market value, including accrued interest, of the collateral was $181,800.
Industry Classification as of October 31, 2006
PERCENTAGE
OF TOTAL MARKET
SECTOR INVESTMENTS VALUE
Financials 22.3% $3,659,164
Telecommunication Services 13.0% 2,139,160
Materials 12.4% 2,033,815
Industrials 11.3% 1,862,677
Energy 10.9% 1,790,970
Consumer Staples 7.2% 1,183,107
Consumer Discretionary 7.1% 1,165,546
Information Technology 6.3% 1,031,881
Utilities 4.4% 719,228
Health Care 2.9% 479,883
Investment Funds 1.1% 178,548
Other 1.1% 174,000
Currency Concentration of Portfolio as of October 31, 2006
PERCENTAGE
OF TOTAL
CURRENCY INVESTMENTS VALUE
United States Dollar 15.5% $2,511,146
Brazilian Real 6.7% 1,080,631
Mexican Peso 6.5% 1,057,046
South African Rand 6.3% 1,031,189
South Korean Won 6.1% 991,567
New Taiwan Dollar 5.9% 955,902
Hong Kong Dollar 5.8% 948,925
Indian Rupee 3.8% 615,994
Czech Koruna 3.5% 574,385
Malaysian Ringgit 3.5% 561,650
New Turkish Lira 3.5% 567,056
Thailand Baht 3.4% 554,253
Hungarian Forint 3.2% 514,652
Philippine Peso 3.1% 504,209
Polish Zloty 3.1% 506,385
Indonesian Rupiah 3.0% 481,564
Chilean Peso 1.9% 310,385
UAE Dirham 1.7% 268,918
Moroccan Dirham 1.6% 267,703
Other Currencies 11.9% 1,940,419
Eaton Vance Structured Emerging Markets Fund as of October 31, 2006
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
As of October 31, 2006
Assets
- -------------------------------------------------------------------------------
Investments in securities, at value
(identified cost, $15,265,859) $16,417,979
Cash 73,654
Foreign currency, at value (identified cost $80,716) 80,864
Receivable for Fund shares sold 623,866
Receivable from the Investment Adviser 183,373
Dividends and interest receivable 11,743
Tax reclaims receivable 212
- -------------------------------------------------------------------------------
Total assets $17,391,691
- -------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------
Payable for investment securities purchased $340,837
Accrued capital gains taxes 4,272
Payable to affiliate for distribution and service plan fees 783
Payable to affiliate for Trustees' fees 60
Accrued expenses 57,392
- -------------------------------------------------------------------------------
Total liabilities $403,344
- -------------------------------------------------------------------------------
Net Assets $16,988,347
- -------------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------------
Paid-in capital $15,870,185
Accumulated net investment loss (7,837)
Accumulated net realized loss on investments and foreign currency
related transactions (21,795)
Net unrealized appreciation of investments and foreign currencies 1,147,794
- -------------------------------------------------------------------------------
Total $16,988,347
- -------------------------------------------------------------------------------
Class A Shares
- -------------------------------------------------------------------------------
Net Assets $1,451,169
Shares Outstanding 130,161
Net Asset Value and Redemption Price Per Share
(net assets/shares of beneficial interest outstanding) $11.15
Maximum Offering Price Per Share
(100/94.25 of $11.15)) $11.83
- -------------------------------------------------------------------------------
Class C Shares
- -------------------------------------------------------------------------------
Net Assets $132,310
Shares Outstanding 11,898
Net Asset Value, Offering Price and Redemption Price Per Share
(net assets/shares of beneficial interest outstanding) $11.12
- -------------------------------------------------------------------------------
Class I Shares
- -------------------------------------------------------------------------------
Net Assets $15,404,868
Shares Outstanding 1,381,192
Net Asset Value, Offering Price and Redemption Price Per Share
(net assets/shares of beneficial interest outstanding) $11.15
- -------------------------------------------------------------------------------
On sales of $50,000 or more, the offering price of Class A shares is reduced.
Statement of Operations
For the Period Ended October 31, 2006(a)
Investment Income
- -------------------------------------------------------------------------------
Dividends (net of foreign taxes, $6,518) $51,108
Interest 7,368
- -------------------------------------------------------------------------------
Total income $58,476
- -------------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------------
Investment adviser fee $23,580
Administration fees 4,161
Distribution and service fees
Class A 536
Class C 247
Custodian fee 92,253
Audit and tax 87,311
Registration fees 62,449
Printing and postage 12,703
Legal fee 5,081
Transfer agent fees 9,300
Trustees' fees and expenses 60
Miscellaneous 1,081
- -------------------------------------------------------------------------------
Total expenses $298,762
- -------------------------------------------------------------------------------
Deduct - Allocation of expenses to the Investment Adviser (263,279)
- -------------------------------------------------------------------------------
Net expenses $35,483
- -------------------------------------------------------------------------------
Net investment income $22,993
- -------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- -------------------------------------------------------------------------------
Net realized loss --
Investment transactions (identified cost basis) (21,795)
Foreign currency related transactions (30,830)
- -------------------------------------------------------------------------------
Net realized loss $(52,625)
- -------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis)(b) $1,147,848
Foreign currencies (54)
- -------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $1,147,794
- -------------------------------------------------------------------------------
Net realized and unrealized gain $1,095,169
- -------------------------------------------------------------------------------
Net increase in net assets from operations $1,118,162
- -------------------------------------------------------------------------------
(a) For the period from commencement of operations, June 30, 2006 to October
31, 2006.
(b) Net of foreign capital gains taxes of $4,272 (see Note 1(c)).
See notes to financial statements
Eaton Vance Structured Emerging Markets Fund as of October 31, 2006
FINANCIAL STATEMENTS (CONT'D)
Statement of Changes in Net Assets
Increase (Decrease) Period Ended
in Net Assets October 31, 2006(a)
- -------------------------------------------------------------------------------
From operations --
Net investment income $ 22,993
Net realized loss on investment and foreign
currency
transactions (52,625)
Net change in unrealized appreciation
(depreciation) on investment and foreign
currencies 1,147,794
- ------------------------------------------------------------------------
Net increase in net assets from operations $ 1,118,162
- ------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 1,369,254
Class C $ 123,366
Class I $ 14,380,129
Cost of shares redeemed
Class A $ (2,547)
Class C $ (21)
Class I $ (21)
Redemption fees 25
- ------------------------------------------------------------------------
Net increase resulting from Fund share
transactions $ 15,870,185
- ------------------------------------------------------------------------
Net increase in net assets $ 16,988,347
- ------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------
At beginning of period $ --
- ------------------------------------------------------------------------
At end of period $ 16,988,347
- ------------------------------------------------------------------------
Accumulated net investment loss included in net
assets at end of period $ (7,837)
- ------------------------------------------------------------------------
(a) For the period from commencement of operations, June 30, 2006 to October
31, 2006.
Eaton Vance Structured Emerging Markets Fund as of October 31, 2006
FINANCIAL STATEMENTS (CONT'D)
Financial Highlights - Class A
Period Ended
October 31, 2006(a)(b)
- ------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.000
- ------------------------------------------------------------------------
Income from operations
- ------------------------------------------------------------------------
Net investment income $ 0.010
Net realized and unrealized gain 1.140
- ------------------------------------------------------------------------
Total income from operations $ 1.150
- ------------------------------------------------------------------------
Net asset value -- end of period $ 11.150
- ------------------------------------------------------------------------
Total Return(c) 11.50%
- ------------------------------------------------------------------------
Ratios/Supplemental Data:
- ------------------------------------------------------------------------
Net assets, end of period (000's omitted) $ 1,451
Ratios (as a percentage of average net assets)
Expenses(d) 1.50%(c)
Net investment income 0.32%(c)
Portfolio Turnover 6%
- ------------------------------------------------------------------------
(a) For the period from commencement of operations, June 30, 2006 to October
31, 2006.
(b) Net investment income (loss) per share was computed using average shares
outstanding.
(c) Returns are historical and calculated by determining the percentage change
in net asset value with all distributions reinvested. Total return is not
computed on an annualized basis.
(d) The adviser voluntarily waived a portion of its fees and subsidized
certain operating expenses (equal to 9.49% (annualized) of average net
assets).
(e) Annualized.
Eaton Vance Structured Emerging Markets Fund as of October 31, 2006
FINANCIAL STATEMENTS (CONT'D)
Financial Highlights - Class C
Period Ended
October 31, 2006(a) (b)
- ------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.000
- ------------------------------------------------------------------------
Income from operations
- ------------------------------------------------------------------------
Net investment loss $ (0.010)
Net realized and unrealized gain 1.130
- ------------------------------------------------------------------------
Total income from operations $ 1.120
- ------------------------------------------------------------------------
Net asset value -- end of period $ 11.120
- ------------------------------------------------------------------------
Total Return(c) 11.20%
- ------------------------------------------------------------------------
Ratios/Supplemental Data:
- ------------------------------------------------------------------------
Net assets, end of period (000's omitted) $ 132
Ratios (as a percentage of average net assets)
Expenses(d) 2.25%(c)
Net investment income (0.30)%(c)
Portfolio Turnover 6%
- ------------------------------------------------------------------------
(a) For the period from commencement of operations, June 30, 2006 to October
31, 2006.
(b) Net investment income (loss) per share was computed using average shares
outstanding.
(c) Returns are historical and calculated by determining the percentage change
in net asset value with all distributions reinvested. Total return is not
computed on an annualized basis.
(d) The adviser voluntarily waived a portion of its fees and subsidized
certain operating expenses (equal to 9.49% (annualized) of average net
assets).
(e) Annualized.
Eaton Vance Structured Emerging Markets Fund as of October 31, 2006
FINANCIAL STATEMENTS (CONT'D)
Financial Highlights - Class I
Period Ended
October 31, 2006(a)(b)
- ------------------------------------------------------------------------
Net asset value -- Beginning of period $ 10.000
- ------------------------------------------------------------------------
Income from operations
- ------------------------------------------------------------------------
Net investment income $ 0.030
Net realized and unrealized gain 1.120
- ------------------------------------------------------------------------
Total income from operations $ 1.150
- ------------------------------------------------------------------------
Net asset value -- end of period $ 11.150
- ------------------------------------------------------------------------
Total Return(c) 11.50%
- ------------------------------------------------------------------------
Ratios/Supplemental Data:
- ------------------------------------------------------------------------
Net assets, end of period (000's omitted) $ 15,405
Ratios (as a percentage of average net assets)
Expenses(d) 1.25%(c)
Net investment income 0.88%(c)
Portfolio Turnover 6%
- ------------------------------------------------------------------------
(a) For the period from commencement of operations, June 30, 2006 to October
31, 2006.
(b) Net investment income (loss) per share was computed using average shares
outstanding.
(c) Returns are historical and calculated by determining the percentage change
in net asset value with all distributions reinvested. Total return is not
computed on an annualized basis.
(d) The adviser voluntarily waived a portion of its fees and subsidized
certain operating expenses (equal to 9.49% (annualized) of average net
assets).
(e) Annualized.
Eaton Vance Structured Emerging Markets Fund as of October 31, 2006
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
- --------------------------------------------------------------------------------
Eaton Vance Structured Emerging Markets Fund (the Fund) is a series of Eaton
Vance Mutual Funds Trust (the "Trust"), a Massachusetts business trust and
is registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Fund currently offers three
classes of shares. Class A shares are offered at net asset value plus a
front-end sales charge of up to 5.75%. Class C shares are offered at net
asset value with no front-end sales charge but are subject to a contingent
deferred sales charge if redeemed within one year of purchase. Class I
shares are offered at net asset value and not subject to a sales charge. The
Fund's investment objective is to seek long-term capital appreciation. The
Fund normally invests at least 80% of its net assets in equity securities of
companies located in emerging market countries, which are those considered
to be developing. Each class represents a pro rata interest in the Fund, but
votes separately on class-specific matters and (as noted below) is subject
to different expenses. Realized and unrealized gains and losses and net
investment income and losses, other than class-specific expenses, are
allocated daily to each class of shares based on the relative net assets of
each class to the total net assets of the Fund. Each class of shares differs
in its distribution plan and certain other class-specific expenses. The
following is a summary of significant accounting policies of the Fund. The
policies are in conformity with accounting principles generally accepted in
the United States of America.
A Investment Valuation -- Marketable securities that are listed on foreign
or U.S. securities exchanges are valued at closing sale prices on the
exchange where such securities are principally traded. Marketable securities
listed in the NASDAQ National Market System are valued at the NASDAQ
official closing price. Unlisted or listed securities for which closing
sales prices are not available are valued at the mean between the latest bid
and asked prices or in the case of preferred equity securities that are not
listed or traded in the over-the-counter market, by an independent pricing
service. An option is valued at the last sale price as quoted on the
principal exchange or board of trade on which such option or contract is
traded, or in the absence of a sale, at the mean between the last bid and
asked prices. Futures positions on securities or currencies are generally
valued at closing settlement prices. Short-term debt securities with a
remaining maturity of 60 days or less are valued at amortized cost. Other
fixed income and debt securities, including listed securities and securities
for which price quotations are available, will normally be valued on the
basis of valuations furnished by a pricing service.
Foreign securities and currencies are valued in U.S. dollars, based on
foreign currency exchange rate quotations supplied by an independent
quotation service. The daily valuation of foreign securities generally is
determined as of the close of trading on the principal exchange on which
such securities trade. Events occurring after the close of trading on
foreign exchanges may result in adjustments to the valuation of foreign
securities to more accurately reflect their fair value as of the close of
regular trading on the New York Stock Exchange. When valuing foreign equity
securities that meet certain criteria, the Trustees have approved the use of
a fair value service that values such securities to reflect market trading
that occurs after the close of the applicable foreign markets of comparable
securities or other instruments that have a strong correlation to the
securities held by the fund. The Fund may rely on an independent fair
valuation service in adjusting the valuations of foreign equity securities.
Investments held by the Fund for which valuations or market quotations are
not readily available or determined to be unreliable are valued at fair
value using methods determined in good faith by or at the direction of the
Trustees considering relevant factors, data and information including the
market value of freely tradable securities of the same class in the
principal market on which such securities are normally traded.
B Income -- Dividend income is recorded on the ex-dividend date for
dividends received in cash and/or securities. However, if the ex-dividend
date has passed, certain dividends from foreign securities are recorded as
the Fund is informed of the ex-dividend date. Interest income is recorded on
the basis of interest accrued, adjusted for amortization of premium or
accretion of discount.
C Federal Taxes -- The Fund'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. Withholding taxes on foreign dividends
have been provided for in accordance with the Fund's understanding of the
applicable countries tax rules and rates. At October 31, 2006 the Fund, for
federal income tax purposes, had a capital loss carryover of $21,795, which
will reduce the Fund's taxable income arising from future net realized gain
on investments, if any, to the extent permitted by the Internal Revenue
Code, and thus will reduce the amount of 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
October 31, 2014.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be subject to capital gains taxes in certain countries in which it
invests. In determining the daily net asset value, the Fund estimates the
accrual for capital gains taxes, if any, based on the unrealized
appreciation on certain Fund securities and the related tax rates. At
October 31, 2006, the Fund had an accrual for capital gains taxes of $4,272
all of which is included in the change in net unrealized appreciation
(depreciation) on investments in the Statement of Operations.
The Fund is subject to a Contribucao Provisoria sobre Movimentacoes
Financeiras ("CPMF") tax which is applied to foreign exchange transactions
representing capital inflows or outflows to the Brazilian market for certain
securities. The CPMF tax has been included in the net realized gain (loss)
on investments.
D Expenses -- The majority of expenses of the Trust are directly
identifiable to an individual fund. Expenses which are not readily
identifiable to a specific fund are allocated taking into consideration,
among other things, the nature and type of expense and relative size of the
funds.
E Foreign Currency Translation -- Investment valuations, other assets, and
liabilities initially expressed in foreign currencies are converted each
business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investment securities and income and expenses are
converted into U.S. dollars based upon currency exchange rates prevailing on
the respective dates of such transactions. Recognized gains or losses on
investment transactions attributable to changes in foreign currency exchange
rates are recorded for financial statement purposes as net realized gains
and losses on investments. That portion of unrealized gains and losses on
investments that results from fluctuations in foreign currency exchange
rates is not separately disclosed.
F Forward Foreign Currency Exchange Contracts -- The Fund may enter into
forward foreign currency exchange contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date. Risks may arise
upon entering these contracts from the potential inability of counterparties
to meet the terms of their contracts and from movements in the value of a
foreign currency relative to the U.S. dollar. The Fund will enter into
forward contracts for hedging purposes. The forward foreign currency
exchange contracts are adjusted by the daily exchange rate of the underlying
currency and any gains or losses are recorded for financial statement
purposes as unrealized until such time as the contracts have been closed or
offset.
G Fund Redemption Fees -- Upon the redemption or exchange of shares by Class
A or Class I shareholders within 90 days of settlement of purchase, a fee of
1% of the current net asset value of these shares will be assesed and
retained by the Fund for the benefit of the remaining shareholders. The
redemption fee is accounted for as an addition to paid-in capital.
H Repurchase Agreements -- Under the terms of a repurchase agreement, the
Fund's custodian takes possession of an underlying collateral security, the
market value of which is at all times at least equal to the principal,
including accrued interest, of the repurchase transaction. In the event of
default or bankruptcy by the other party to the agreement, realization and/
or retention of the collateral by the Fund may be delayed or limited.
I Indemnifications -- Under the Trust's organizational documents, its
officers and Trustees may be indemnified against certain liabilities and
expenses arising out of the performance of their duties to the Fund and
shareholders are indemnified against personal liability for obligations of
the Trust. Additionally, in the normal course of business, the Fund enters
into agreements with service providers that may contain indemnification
clauses. The Fund's maximum exposure under these arrangements is unknown as
this would involve future claims that may be made against the Fund that have
not yet occurred.
J Use of Estimates -- The preparation of the financial statements in
conformity with accounting principles generally accepted in the United
States of America 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.
K Other -- Investment transactions are accounted for on a trade date basis.
Dividends to shareholders are recorded on the ex-dividend date. Realized
gains and losses are computed based on the specific identification of the
securities sold.
2 Distributions to Shareholders
- --------------------------------------------------------------------------------
It is the present policy of the Fund to make (a) at least one distribution
annually of all or substantially all of its net investment income, and (b)
at least one distribution annually of all or substantially all of its
realized capital gains. Shareholders may reinvest all distributions in
additional shares of the Fund at the net asset value as of the ex-dividend
date. Distributions are paid in the form of additional shares or, at the
election of the shareholder, in cash. The Fund distinguishes between
distributions on a tax basis and a financial reporting basis. Accounting
principles generally accepted in the United States of America require that
only distributions in excess of tax basis earnings and profits be reported
in the financial statements as a return of capital. Permanent differences
between book and tax accounting relating to distributions are reclassified
to paid-in-capital. The Fund did not declare any distributions during the
period ended October 31, 2006.
During the period ended October 31, 2006 distributions in excess of net
investment income was decreased by $30,830, and accumulated net realized
loss on investments was increased by $30,830 primarily due to differences
between book and tax accounting for foreign currency transactions. This
change had no effect on the net assets or the net asset value per share.
At October 31, 2006, the components of distributable earnings (accumulated
losses) on a tax basis were as follows:
Undistributed ordinary income $ 885
Capital loss carryforward $21,795
The temporary differences between book and tax basis distributable earnings
(accumulated losses) are primarily due to Passive Foreign Investment
Companies.
3 Shares of Beneficial Interest
- --------------------------------------------------------------------------------
The Fund's Declaration of Trust permits the Trustees to issues an unlimited
number of full and fractional shares of beneficial interest (without par
value). Transactions in Fund shares were as follows:
Period Ended
October 31, 2006 (a)
-------------------
Class A
--------------------------------------------------------------
Shares Sold 130,403
Redemptions (242)
--------------------------------------------------------------
Net Increase 130,161
--------------------------------------------------------------
Class C
--------------------------------------------------------------
Shares Sold 11,900
Redemptions (2)
--------------------------------------------------------------
Net Increase 11,898
--------------------------------------------------------------
Class I
--------------------------------------------------------------
Shares Sold 1,381,194
Redemptions (2)
--------------------------------------------------------------
Net Increase 1,381,192
--------------------------------------------------------------
(a) For the period from commencement of operations,
June 30, 2006 to October 31, 2006.
At October 31, 2006, Eaton Vance Management (EVM) owned 34% of the
outstanding shares of the Fund.
4 Investment Adviser Fee and Other Transactions with Affiliates
- --------------------------------------------------------------------------------
Under its investment advisory agreement with the Fund, Eaton Vance
Management (EVM) receives a monthly advisory fee equal to 0.85% annually of
the average daily net assets of the Fund up to $500 million. On net assets
of $500 million and over, the annual fee is reduced. Pursuant to a sub-
advisory agreement, Eaton Vance has delegated the investment management of
the Fund to Parametric Portfolio Associates ("Parametric"), a majority-owned
subsidiary of Eaton Vance. Eaton Vance pays Parametric a portion of the
advisory fee for sub-advisory services provided to the Fund.
EVM also serves as administrator to the Fund and receives from the Fund a
monthly administration fee equal to an annual rate of 0.15% of the Fund's
average daily net assets.
EVM has agreed to waive fees and reimburse expenses to the extent that total
annual operating expenses exceeded 1.50% for Class A shares, 2.25% for Class
C shares and 1.25% for Class I shares. Thereafter the reimbursement may be
changed or terminated at any time. Pursuant to this agreement EVM
voluntarily waived and reimbursed $263,279 of the Fund's operating expensed
during the period ended October 31, 2006.
EVM serves as the sub-transfer agent of the Fund and receives from the
transfer agent an aggregate fee based on actual expenses incurred by EVM in
the performance of these services. During the period ended October 31, 2006,
EVM received $67 in sub transfer agent fees.
Certain officers and Trustees of the Fund are officers of the above
organization.
5 Distribution and Service Plans
- --------------------------------------------------------------------------------
Class A has in effect a distribution plan pursuant to Rule 12b-1 under the
Investment Company Act of 1940 (Class A Plan). The Class A Plan provides
that the Fund will pay EVD a distibution and service fee of 0.25% of the
Fund's average daily net assets attributable to Class A shares for each
fiscal year for distribution services and facilities provided to the Fund by
EVD, as well as for personal services and/or the maintenance of shareholder
accounts. Distribution and service fees paid or accrued for the period from
the start of business, June 30, 2006, to October 31, 2006 amounted to $536
for Class A shares. The Fund also has in effect distribution plans for Class
C shares (Class C Plan) pursuant to Rule 12b-1 under the Investment Company
Act of 1940. The Class C Plan requires the Fund to pay EVD amounts equal to
1/365 of 0.75% (annualized) of the Fund's average daily net assets
attributable to Class C shares for providing ongoing distribution services
and facilities to the Fund. The Fund will automatically discontinue payments
to EVD during any period in which there are no outstanding Uncovered
Distribution Charges, which are equivalent to the sum of (i) 6.25% of the
aggregate amount received by the Fund for the Class C shares sold, plus (ii)
interest calculated by applying the rate of 1% over the prevailing prime
rate to the outstanding balance of Uncovered Distribution Charges of EVD of
Class C, reduced by the aggregate amount of contingent deferred sales
charges (see Note 6) and daily amounts theretofore paid to EVD by Class C.
Distribution fees paid or accrued for the period from the start of business,
June 30, 2006, to October 31, 2006, amounted to $185 for Class C shares. At
October 31, 2006, the amount of Uncovered Distribution Charges of EVD
calculated under the Class C Plan was approximately $10,500 for Class C
shares. The Class C Plan also authorizes the Fund to make payments of
service fees to EVD, investment dealers and other persons in amounts not
exceeding 0.25% annually of the average daily net assets attributable to
that Class. Service fees are paid for personal services and/or the
maintenance of shareholder accounts. They are separate and distinct from the
Class C sales commissions and distribution fees and, as such, are not
subject to automatic discontinuance when there are no outstanding Uncovered
Distribution Charges to EVD. Service fees paid or accrued for the period
ended October 31, 2006 amounted to $62 for Class C shares.
6 Contingent Deferred Sales Charge
- --------------------------------------------------------------------------------
A contingent deferred sales charge (CDSC) of 1% is generally is imposed on
redemptions of Class C shares made within one year 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. Prior to September
15, 2006, Class A shares purchased at net asset value in amounts of $1
million or more (other than shares purchased in a single transaction of $5
million or more) were subject to a 1% CDSC if redeemed within one year of
purchase. Effective September 15, 2006, all purchases of Class A shares of
$1 million or more will be subject to a 1% CDSC in the event of redemption
within 18 months of purchase.
No CDSC is levied on shares which have been sold to EVM or its affiliates or
to their respective employees or clients and may be waived under certain
other limited conditions. CDSC pertaining to Class C redemptions are paid to
EVD to reduce the amount of Uncovered Distribution Charges calculated under
the Class C Plan (see Note 5). CDSC assessed on Class C shares when no
Uncovered Distribution Charges exist will be credited to the Fund. EVD did
not receive any CDSC for Class C shares for the period from the start of
business June 30, 2006, to October 31, 2006.
7 Investment Transactions
- --------------------------------------------------------------------------------
Purchases and sales of investments, other than short-term obligations,
aggregated $15,576,480 and $463,332, respectively, for the period ended
October 31, 2006.
8 Federal Income Tax Basis of Unrealized Appreciation (Depreciation)
- --------------------------------------------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned at October 31, 2006, as computed on a federal income tax
basis, were as follows:
Aggregate cos $15,274,581
---------------------------------------------------------------------------
Gross unrealized appreciation $ 1,288,071
Gross unrealized depreciation (144,673)
---------------------------------------------------------------------------
Net unrealized appreciation $ 1,143,398
---------------------------------------------------------------------------
The net unrealized depreciation on foreign currency was $54 at October 31,
2006.
9 Risks Associated with Foreign Investments
- --------------------------------------------------------------------------------
Investing in securities issued by companies whose principal business
activities are outside the United States may involve significant risks not
present in domestic investments. For example, there is generally less
publicly available information about foreign companies, particularly those
not subject to the disclosure and reporting requirements of the U.S.
securities laws. Foreign issuers are generally not bound by uniform
accounting, auditing, and financial reporting requirements and standards of
practice comparable to those applicable to domestic issuers. Investments in
foreign securities also involve the risk of possible adverse changes in
investment or exchange control regulations, expropriation or confiscatory
taxation, limitation on the removal of funds or other assets of the Fund,
political or financial instability or diplomatic and other developments
which could affect such investments. Foreign stock markets, while growing in
volume and sophistication, are generally not as developed as those in the
United States, and securities of some foreign issuers (particularly those in
developing countries) may be less liquid and more volatile than securities
of comparable U.S. companies. In general, there is less overall governmental
supervision and regulation of foreign securities markets, broker-dealers,
and issuers than in the United States.
10 Financial Instruments
- --------------------------------------------------------------------------------
The Fund may trade 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 forward foreign
currency exchange contracts and 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. At October 31, 2006, there were no obligations
outstanding under these financial instruments.
11 Recently Issued Accounting Pronouncements
- --------------------------------------------------------------------------------
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48, ("FIN 48") "Accounting for Uncertainty in Income
Taxes - an interpretation of FASB Statement No. 109." FIN 48 clarifies the
accounting for uncertainty in income taxes recognized in accordance with
FASB Statement No. 109, "Accounting for Income Taxes." This interpretation
prescribes a recognition threshold and measurement attribute for the
financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. It also provides guidance on
recognition, classification, interest and penalties, accounting in interim
periods, disclosure and transition. FIN 48 is effective for fiscal years
beginning after December 15, 2006. The Fund is currently evaluating the
impact of applying the various provisions of FIN 48.
In September 2006, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 157, ("FAS 157") "Fair Value
Measurements". FAS 157 defines fair value, establishes a framework for
measuring fair value in accordance with generally accepted accounting
principles and expands disclosure about fair value measurements. FAS 157 is
effective for fiscal years beginning after November 15, 2007. Management is
currently evaluating the impact the adoption of FAS 157 will have on the
Fund's financial statement disclosures.
Eaton Vance Structured Emerging Markets Fund as of October 31, 2006
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Trustees and Shareholders of Eaton Vance Structured Emerging Markets
Fund:
- --------------------------------------------------------------------------------
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Eaton Vance
Structured Emerging Markets Fund (the "Fund"), a series of Eaton Vance
Mutual Funds Trust, at October 31, 2006, and the results of its operations,
the changes in its net assets and the financial highlights for the period from
June 30, 2006, the commencement of operations, to October 31, 2006, in
conformity with accounting principles generally accepted in the United States
of America. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit of these financial
statements in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audit, which included confirmation of
securities at October 31, 2006 by correspondence with the custodian and
brokers, provides a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 20, 2006
Eaton Vance Structured Emerging Markets Fund
BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that in order for a fund to enter into an investment advisory
agreement with an investment adviser, the fund's board of trustees, including a
majority of the trustees who are not "interested persons" of the fund
("Independent Trustees"), must approve the agreement and its terms at an
in-person meeting called for the purpose of considering such approval.
At a meeting of the Boards of Trustees (each a "Board") of the Eaton Vance
group of mutual funds (the "Eaton Vance Funds") held on March 27, 2006, the
Board, including a majority of the Independent Trustees, voted to approve the
investment advisory agreement of the Structured Emerging Markets Fund (the
"Fund") with Eaton Vance Management (the "Adviser"), and the sub-advisory
agreement with Parametric Portfolio Associates (the "Sub-adviser"). The Board
reviewed information furnished for the March 2006 meeting as well as
information previously furnished with respect to the approval of other
investment advisory agreements for other Eaton Vance Funds. Such information
included, among other things, the following:
Information about Fees, Performance and Expenses
o The advisory and related fees to be paid by the Fund and the expense ratio
of the Fund;
o Comparative information concerning fees charged by the Adviser for managing
other mutual funds and institutional accounts using investment strategies
and techniques similar to those to be used in managing the Fund, and
concerning fees charged by other advisers for managing funds similar to the
Fund;
Information about Portfolio Management
o Descriptions of the investment management services to be provided to the
Fund, including the investment strategies and processes to be employed;
o Information concerning the allocation of brokerage and the benefits
expected to be received by the Sub-adviser as a result of brokerage
allocation, including information concerning the acquisition of research
through "soft dollar" benefits received in connection with the Funds'
brokerage, and the implementation of the soft dollar reimbursement program
established with respect to the Fund;
o The procedures and processes to be used to determine the fair value of Fund
assets and actions to be taken to monitor and test the effectiveness of
such procedures and processes;
Information about the Adviser and Sub-adviser
o Reports detailing the financial results and condition of the Adviser and
Sub-adviser;
o Descriptions of the qualifications, education and experience of the
individual investment professionals whose responsibilities include
portfolio management and investment research for the Fund, and information
relating to their compensation and responsibilities with respect to
managing other mutual funds and investment accounts;
o Copies of the Codes of Ethics of the Adviser and its affiliates, including
the Sub-adviser, together with information relating to compliance with and
the administration of such codes;
o Information concerning the resources devoted to compliance efforts
undertaken by the Adviser and its affiliates, including the Sub-adviser, on
behalf of the Eaton Vance funds (including descriptions of various
compliance programs) and their record of compliance with investment
policies and restrictions, including policies with respect to
market-timing, late trading and selective portfolio disclosure, and with
policies on personal securities transactions;
o Descriptions of the business continuity and disaster recovery plans of the
Adviser and its affiliates, including the Sub-adviser;
Other Relevant Information
o Information concerning the nature, cost and character of the administrative
and other non-investment management services to be provided by Eaton Vance
Management and its affiliates;
o Information concerning management of the relationship with the custodian,
subcustodians and Fund accountants by the Adviser or the funds'
administrator; and
o The terms of the advisory and sub-advisory agreements, respectively.
Results of the Process
Based on its consideration of the foregoing, and such other information as it
deemed relevant, including the factors and conclusions described below, the
Board concluded that the terms of the Fund's investment advisory agreement with
the Adviser, and the sub-advisory agreement with the Sub-adviser, including
their fee structures, is in the interests of shareholders and, therefore, the
Board, including a majority of the Independent Trustees, voted to approve the
advisory agreement and sub-advisory agreement for the Fund.
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory agreement and
sub-advisory agreement of the Fund, the Board evaluated the nature, extent and
quality of services to be provided to the Fund by the Adviser and the
Sub-adviser.
The Board considered the Adviser's and Sub-adviser's management capabilities
and investment process with respect to the types of investments to be held by
the Fund, including the education, experience and number of its investment
professionals and other personnel who provide portfolio management, investment
research, and similar services to the Fund. The Board evaluated the abilities
and experience of such investment personnel in analyzing factors such as
special considerations relevant to investing in emerging markets. The Board
noted the Adviser's in-house equity research capabilities. The Board also took
into account the resources dedicated to portfolio management and other
services, including the compensation paid to recruit and retain investment
personnel, and the time and attention devoted to each Fund in the complex by
senior management.
The Board reviewed the compliance programs of the Adviser and relevant
affiliates thereof, including the Sub-adviser. Among other matters, the Board
considered compliance and reporting matters relating to personal trading by
investment personnel, selective disclosure of portfolio holdings, late
trading, frequent trading, portfolio valuation, business continuity and the
allocation of investment opportunities. The Board also evaluated the responses
of the Adviser and its affiliates to requests from regulatory authorities such
as the Securities and Exchange Commission and the National Association of
Securities Dealers.
The Board considered shareholder and other administrative services provided or
managed by Eaton Vance Management and its affiliates, including transfer
agency and accounting services. The Board evaluated the benefits to
shareholders of investing in a fund that is a part of a large family of funds,
including the ability, in many cases, to exchange an investment among
different funds without incurring additional sales charges.
After consideration of the foregoing factors, among others, the Board
concluded that the nature, extent and quality of services to be provided by
the Adviser and Sub-adviser, taken as a whole, are appropriate and consistent
with the terms of the investment advisory and sub-advisory agreements.
Management Fees and Expenses
The Board reviewed contractual investment advisory fee rates, including
administrative fee rates, to be payable by the Fund (referred to collectively
as "management fees"). As part of its review, the Board considered the Fund's
management fee (including administrative fees) and estimated expense ratio for
a one-year period.
After reviewing the foregoing information, and in light of the nature, extent
and quality of the services provided by the Adviser, the Board concluded with
respect to the Fund that the management fees proposed to be charged to the
Fund for advisory and related services and the total expense ratio of the Fund
are reasonable.
Economies of Scale
In reviewing management fees, the Board also considered the extent to which the
Adviser and its affiliates, including the Sub-adviser, on the one hand, and the
Fund, on the other hand, can expect to realize benefits from economies of scale
as the assets of the Fund increase. The Board noted the structure of the
advisory fee, which includes breakpoints at several asset levels. Based upon
the foregoing, the Board concluded that the Adviser and its affiliates,
including the Sub-adviser, and the Fund can be expected to share such benefits
equitably.
Eaton Vance Structured Emerging Markets Fund
MANAGEMENT AND ORGANIZATION
FUND MANAGEMENT. The Trustees of Eaton Vance Mutual Funds Trust (the Trust) are responsible for the overall management and
supervision of the Trust's affairs. The Trustees and officers of the Trust are listed below. Except as indicated, each
individual has held the office shown or other offices in the same company for the last five years. Trustees and officers of the
Trust hold indefinite terms of office. The "noninterested Trustees" consist of those Trustees who are not "interested persons"
of the Trust, as that term is defined under the 1940 Act. The business address of each Trustee and officer is The Eaton Vance
Building, 255 State Street, Boston, Massachusetts 02109. As used below, "EVC" refers to Eaton Vance Corp., "EV" refers to Eaton
Vance, Inc., "EVM" refers to Eaton Vance Management, "BMR" refers to Boston Management and Research, "Parametric" refers to
Parametric Portfolio Associates and "EVD" refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and
trustee, respectively, of EVM and BMR. EVD is the Fund's principal underwriter and a wholly-owned subsidiary of EVM. Each
officer affiliated with Eaton Vance may hold a position with other Eaton Vance affiliates that is comparable to his or her
position with EVM listed below.
Term of Number of
Position(s) Office and Portfolios in Fund
with the Length of Principal Occupation(s) Complex Overseen Other
Name and Date of Birth Trust Service During Past Five Years By Trustee(1) Directorships Held
- -----------------------------------------------------------------------------------------------------------------------------------
Interested Trustee
James B. Hawkes Trustee Since 1991 Chairman and Chief Executive 170 Director of EVC
11/9/41 Officer of EVC, BMR, EVM and
EV; Director of EV; Vice
President and Director of
EVD. Trustee and/or officer
of 170 registered investment
companies in the Eaton Vance
Fund Complex. Mr. Hawkes is
an interested person because
of his positions with BMR,
EVM, EVC and EV, which are
affiliates of the Trust.
Noninterested Trustee(s)
Benjamin C. Esty Trustee Since 2005 Roy and Elizabeth Simmons 170 None
1/2/63 Professor of Business
Administration, Harvard
University Graduate School of
Business Administration
(since 2003). Formerly,
Associate Professor, Harvard
University Graduate School of
Business Administration
(2000-2003).
Samuel L. Hayes, III Trustee and Trustee of the Jacob H. Schiff Professor of 170 Director of
2/23/35 Chairman of Trust Investment Banking Emeritus, Tiffany & Co.
the Board since 1986 and Harvard University Graduate (specialty
Chairman of the School of Business retailer)
Board Administration. Director of
since 2005 Yakima Products, Inc.
(manufacturer of automotive
accessories) (since 2001) and
Director of Telect, Inc.
(telecommunications services
company).
William H. Park Trustee Since 2003 Vice Chairman, Commercial 170 None
9/19/47 Industrial Finance Corp.
(specialty finance company)
(since 2006). Formerly,
President and Chief Executive
Officer, Prizm Capital
Management, LLC (investment
management firm) (2002-2005).
Formerly, Executive Vice
President and Chief Financial
Officer, United Asset
Management Corporation (a
holding company owning
institutional investment
management firms)
(1982-2001).
Ronald A. Pearlman Trustee Since 2003 Professor of Law, Georgetown 170 None
7/10/40 University Law Center.
Norton H. Reamer Trustee Since 1986 President, Chief Executive 170 None
9/21/35 Officer and a Director of
Asset Management Finance
Corp. (a specialty finance
company serving the
investment management
industry) (since October
2003). President, Unicorn
Corporation (an investment
and financial advisory
services company) (since
September 2000). Formerly,
Chairman and Chief Operating
Officer, Hellman, Jordan
Management Co., Inc. (an
investment management
company) (2000-2003).
Formerly, Advisory Director
of Berkshire Capital
Corporation (investment
banking firm) (2002-2003).
Lynn A. Stout Trustee Since 1998 Professor of Law, University 170 None
9/14/57 of California at Los Angeles
School of Law.
Ralph F. Verni Trustee Since 2005 Consultant and private 170 None
1/26/43 investor.
Term of
Position(s) Office and
with the Length of Principal Occupation(s)
Name and Date of Birth Trust Service During Past Five Years
- ----------------------------------------------------------------------------------------------------------------------------------
Principal Officers who are not Trustees
Thomas E. Faust Jr. President Since 2002 President of EVC, EVM, BMR and EV and Director of EVC. Chief Investment
5/31/58 Officer of EVC, EVM and BMR. Officer of 71 registered investment
companies and 5 private investment companies managed by EVM or BMR.
William H. Ahern, Jr. Vice Since 1995 Vice President of EVM and BMR. Officer of 71 registered investment
7/28/59 President companies managed by EVM or BMR.
Cynthia J. Clemson Vice Since 2005 Vice President of EVM and BMR. Officer of 86 registered investment
3/2/63 President companies managed by EVM or BMR.
Aamer Khan Vice Since 2005 Vice President of EVM and BMR. Officer of 29 registered investment
6/7/60 President companies managed by EVM or BMR.
Thomas H. Luster Vice Since 2006 Vice President of EVM and BMR. Officer of 45 registered investment
4/8/62 President companies managed by EVM or BMR.
Michael R. Mach Vice Since 1999 Vice President of EVM and BMR. Officer of 51 registered investment
7/15/47 President companies managed by EVM or BMR.
Robert B. MacIntosh Vice Since 1998 Vice President of EVM and BMR. Officer of 86 registered investment
1/22/57 President companies managed by EVM or BMR.
Cliff Quisenberry, Jr. Vice Since 2006 Vice President and Director of Research and Product Development.
1/1/65 President Officer of 30 registered investment companies managed by EVM or BMR.
Duncan W. Richardson Vice Since 2001 Executive Vice President and Chief Equity Investment Officer of EVC,
10/26/57 President EVM and BMR. Officer of 71 registered investment companies managed by
EVM or BMR.
Walter A. Row, III Vice Since 2001 Director of Equity Research and a Vice President of EVM and BMR.
7/20/57 President Officer of 33 registered investment companies managed by EVM or BMR.
Judith A. Saryan Vice Since 2003 Vice President of EVM and BMR. Officer of 50 registered investment
8/21/54 President companies managed by EVM or BMR.
Susan Schiff Vice Since 2002 Vice President of EVM and BMR. Officer of 30 registered investment
3/13/61 President companies managed by EVM or BMR.
Barbara E. Campbell Treasurer Since 2005(2) Vice President of EVM and BMR. Officer of 170 registered investment
6/19/57 companies managed by EVM or BMR.
Alan R. Dynner Secretary Since 1997 Vice President, Secretary and Chief Legal Officer of BMR, EVM, EVD, EV
10/10/40 and EVC. Officer of 170 registered investment companies managed by EVM
or BMR.
Paul M. O'Neil Chief Since 2004 Vice President of EVM and BMR. Officer of 170 registered investment
7/11/53 Compliance companies managed by EVM or BMR.
Officer
(1) Includes both master and feeder funds in a master-feeder structure.
(2) Prior to 2005, Ms. Campbell served as Assistant Treasurer since 1995.
The SAI for the Fund includes additional information about the Trustees and officers of the Fund and can be obtained without
charge by calling 1-800-225-6265.
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INVESTMENT ADVISER AND ADMINISTRATOR OF EATON VANCE
STRUCTURED EMERGING MARKETS FUND
EATON VANCE MANAGEMENT
The Eaton Vance Building
255 State Street
Boston, MA 02109
SUB-ADVISER OF EATON VANCE STRUCTURED EMERGING MARKETS FUND
PARAMETRIC PORTFOLIO ASSOCIATES
1151 Fairview Avenue N.
Seattle, WA 98109
PRINCIPAL UNDERWRITER
EATON VANCE DISTRIBUTORS, INC.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
CUSTODIAN
STATE STREET BANK & TRUST CO.
225 Franklin Street
Boston, MA 02110
TRANSFER AGENT
PFPC INC.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02940-9653
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PRICEWATERHOUSECOOPERS LLP
125 High Street
Boston, MA 02110
EATON VANCE STRUCTURED EMERGING MARKETS FUND
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
- -------------------------------------------------------------------------------
THIS REPORT MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. BEFORE
INVESTING, INVESTORS SHOULD CONSIDER CAREFULLY THE FUND'S INVESTMENT
OBJECTIVE(S), RISKS, AND CHARGES AND EXPENSES. THE FUND'S CURRENT PROSPECTUS
CONTAINS THIS AND OTHER INFORMATION ABOUT THE FUND AND IS AVAILABLE THROUGH YOUR
FINANCIAL ADVISOR PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND
MONEY. FOR FUTHER INFORMATION PLEASE CALL 1-800-225-6265.
- -------------------------------------------------------------------------------
2774-12/06 SEMSRC
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics applicable to its Principal
Executive Officer, Principal Financial Officer and Principal Accounting
Officer. The registrant undertakes to provide a copy of such code of ethics to
any person upon request, without charge, by calling 1-800-262-1122.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The registrant's Board has designated William H. Park, Samuel L. Hayes, III and
Norton H. Reamer, each an independent trustee, as its audit committee financial
experts. Mr. Park is a certified public accountant who is the Vice Chairman of
Commercial Industrial Finance Corp (specialty finance company). Previously, he
served as President and Chief Executive Officer of Prizm Capital Management,
LLC (investment management firm) and as Executive Vice President and Chief
Financial Officer of United Asset Management Corporation ("UAM") (a holding
company owning institutional investment management firms). Mr. Hayes is the
Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard
University Graduate School of Business Administration. Mr. Reamer is the
President, Chief Executive Officer and a Director of Asset Management Finance
Corp. (a specialty finance company serving the investment management industry)
and is President of Unicorn Corporation (an investment and financial advisory
services company). Formerly, Mr. Reamer was Chairman and Chief Operating
Officer of Hellman, Jordan Management Co., Inc. (an investment management
company) and Advisory Director of Berkshire Capital Corporation (an investment
banking firm), Chairman of the Board of UAM and Chairman, President and
Director of the UAM Funds (mutual funds).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a)-(d)
Eaton Vance Tax-Managed Small Cap Value Fund, Eaton Vance Tax-Managed Mid-Cap
Core Fund, Eaton Vance Multi-Cap Opportunity Fund, Eaton Vance Tax-Managed
Value Fund, Eaton Vance Tax-Managed International Equity Fund, Eaton Vance
Tax-Managed Small-Cap Growth Fund, Eaton Vance Tax-Managed Equity Asset
Allocation Fund, Eaton Vance High Income Fund, Eaton Vance Floating-Rate Fund,
Eaton Vance Floating-Rate High Income Fund, Eaton Vance Strategic Income Fund,
Eaton Vance Low Duration Fund, Eaton Vance Government Obligations Fund, Eaton
Vance Diversified Income Fund, Eaton Vance Equity Research Fund ,Eaton Vance
Tax-Managed Dividend Income Fund , Eaton Vance Dividend Income Fund, Eaton
Vance International Equity Fund and Eaton Vance Structured Emerging Markets
Fund (the "Fund(s)") are series of Eaton Vance Mutual Funds Trust (the
"Trust"), a Massachusetts business trust, which, including the Funds, contains
a total of 25 series (the "Series"). The Trust is registered under the
Investment Company Act of 1940 as an open-end management investment company.
This Form N-CSR relates to the Funds' annual reports.
With the exception of Tax-Managed Dividend Income Fund, the following tables
present the aggregate fees billed to each Fund for the Fund's respective fiscal
years ended October 31, 2004 and October 31, 2005 or for those Funds which have
not completed two years of operations, for such fiscal periods as indicated on
the following tables, by the Fund's principal accountant for professional
services rendered for the audit of the Fund's annual financial statements and
fees billed for other services rendered by the principal accountant during
those periods. Eaton Vance Tax-Managed Dividend Income Fund recently changed
its fiscal year end from April 30 to October 31. Accordingly the tables for
this Fund show fee information for the past two fiscal years ended April 30,
2006 and period from May 1, 2006 to October 31, 2006.
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $8,720 $9,020
Audit-Related Fees(1) 0 0
Tax Fees(2) $6,090 6,320
All Other Fees(3) 0 0
----------------------------------
Total $14,810 $15,340
==================================
EATON VANCE TAX-MANAGED MID-CAP CORE FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $8,720 $9,020
Audit-Related Fees(1) 0 0
Tax Fees(2) 6,300 6,540
All Other Fees(3) 0 0
----------------------------------
Total $15,020 $15,560
==================================
EATON VANCE TAX-MANAGED MULTI-CAP OPPORTUNITY FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $10,840 $11,230
Audit-Related Fees(1) 0 0
Tax Fees(2) 6,090 6,320
All Other Fees(3) 0 0
----------------------------------
Total $16,930 $17,550
==================================
EATON VANCE TAX-MANAGED VALUE FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $12,055 $12,490
Audit-Related Fees(1) 0 0
Tax Fees(2) 6,300 6,540
All Other Fees(3) 0 0
----------------------------------
Total $18,355 $19,030
==================================
EATON VANCE TAX-MANAGED INTERNATIONAL EQUITY FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $10,840 $11,230
Audit-Related Fees(1) 0 0
Tax Fees(2) 6,195 6,430
All Other Fees(3) 0 0
----------------------------------
Total $17,035 $17,660
==================================
EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND
FISCAL YEARS ENDED 10/31/05* 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $21,855 $15,490
Audit-Related Fees(1) 0 0
Tax Fees(2) 12,600 6,540
All Other Fees(3) 0 0
----------------------------------
Total $34,455 $22,030
==================================
* These totals represent the 2005 numbers for Tax-Managed Small-Cap Growth 1.1
and 1.2, the two have become one Tax-Managed Small-Cap Growth.
EATON VANCE TAX MANAGED EQUITY ASSET ALLOCATION FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $46,775 $48,590
Audit-Related Fees(1) 0 0
Tax Fees(2) 16,800 17,440
All Other Fees(3) 0 0
----------------------------------
Total $63,575 $66,030
==================================
EATON VANCE HIGH INCOME FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $12,055 $12,490
Audit-Related Fees(1) 0 0
Tax Fees(2) 6,090 6,320
All Other Fees(3) 0 0
----------------------------------
Total $18,145 $18,810
==================================
EATON VANCE FLOATING-RATE FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $12,055 $12,490
Audit-Related Fees(1) 0 0
Tax Fees(2) 6,300 6,540
All Other Fees(3) 0 0
----------------------------------
Total $18,355 $19,030
==================================
EATON VANCE FLOATING-RATE HIGH INCOME FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $12,055 $12,490
Audit-Related Fees(1) 0 0
Tax Fees(2) 6,300 6,540
All Other Fees(3) 0 0
----------------------------------
Total $18,355 $19,030
==================================
EATON VANCE STRATEGIC INCOME FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $31,300 $34,300
Audit-Related Fees(1) 0 0
Tax Fees(2) 19,175 20,325
All Other Fees(3) 0 0
----------------------------------
Total $50,475 $54,625
==================================
EATON VANCE LOW DURATION FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $22,300 $24,400
Audit-Related Fees(1) 0 0
Tax Fees(2) 11,450 12,125
All Other Fees(3) 0 0
----------------------------------
Total $33,750 $36,525
==================================
EATON VANCE GOVERNMENT OBLIGATIONS FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $22,600 $24,700
Audit-Related Fees(1) 0 0
Tax Fees(2) 13,450 14,275
All Other Fees(3) 0 0
----------------------------------
Total $36,050 $38,975
==================================
EATON VANCE DIVERSIFIED INCOME FUND
FISCAL YEARS ENDED 10/31/05* 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $25,100 $27,500
Audit-Related Fees(1) 0 0
Tax Fees(2) 13,050 15,150
All Other Fees(3) 0 0
----------------------------------
Total $38,150 $42,650
==================================
* For the period from commencement of operations on November 7, 2004 to
October 31, 2005
EATON VANCE EQUITY RESEARCH FUND
FISCAL YEARS ENDED 10/31/05 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $23,100 $25,300
Audit-Related Fees(1) 0 0
Tax Fees(2) $9,125 9,675
All Other Fees(3) 0 0
----------------------------------
Total $32,225 $34,975
==================================
EATON VANCE TAX-MANAGED DIVIDEND INCOME FUND
FISCAL YEARS ENDED 04/30/06 10/31/06
- --------------------------------------------------------------------------------
Audit Fees $46,775 $48,590
Audit-Related Fees(1) 0 0
Tax Fees(2) 8,400 9,620
All Other Fees(3) 0 0
----------------------------------
Total $55,175 $58,210
==================================
EATON VANCE DIVIDEND INCOME FUND
FISCAL YEARS ENDED 10/31/06*
- --------------------------------------------------------------------------------
Audit Fees $11,360
Audit-Related Fees(1) 0
Tax Fees(2) 8,000
All Other Fees(3) 0
----------------------------------
Total $19,360
==================================
* For the period from commencement of operations on November 30, 2005 to
October 31, 2006
EATON VANCE INTERNATIONAL EQUITY FUND
FISCAL YEARS ENDED 10/31/06*
- --------------------------------------------------------------------------------
Audit Fees $11,360
Audit-Related Fees(1) 0
Tax Fees(2) 8,000
All Other Fees(3) 0
----------------------------------
Total $19,360
==================================
* For the period from commencement of operations on May 31, 2006 to
October 31, 2006
EATON VANCE STRUCTURED EMERGING MARKETS FUND
FISCAL YEARS ENDED 10/31/06*
- --------------------------------------------------------------------------------
Audit Fees $73,400
Audit-Related Fees(1) 0
Tax Fees(2) 14,050
All Other Fees(3) 0
----------------------------------
Total $87,450
==================================
* For the period from commencement of operations on June 30, 2006 to October
31, 2006
(1) Audit-related fees consist of the aggregate fees billed for assurance and
related services that are reasonably related to the performance of the
audit of financial statements and are not reported under the category of
audit fees.
(2) Tax fees consist of the aggregate fees billed for professional services
rendered by the principal accountant relating to tax compliance, tax
advice, and tax planning and specifically include fees for tax return
preparation.
(3) All other fees consist of the aggregate fees billed for products and
services provided by the principal accountant other than audit,
audit-related, and tax services.
The various Series comprising the Trust have differing fiscal year ends
(October 31 or December 31). In addition, the Series differ as to principal
accountant; i.e., certain Series have PricewaterhouseCoopers LLP ("PWC) as a
principal accountant and other Series have Deloitte & Touche LLP ("D&T") as a
principal accountant. The following table presents the aggregate audit,
audit-related, tax, and other fees billed to all of the Series in the Trust by
each Series' respective principal accountant for the last two fiscal years of
each Series.
FISCAL YEARS
ENDED 12/31/04 10/31/05 12/31/05 10/31/06
PWC D&T PWC D&T PWC D&T PWC D&T
- -----------------------------------------------------------------------------------------------------------------------------
AUDIT FEES $67,800 $21,885 $0 $37,220 $74,200 $22,670 $0 $43,070
AUDIT-RELATED 0 0 0 0 0 0 0 0
FEES(1)
TAX FEES(2) $29,725 $11,130 0 $18,585 $31,500 $11,550 0 $19,290
ALL OTHER 0 0 0 0 0 0 0 0
FEES(3)
-------------------------------------------------------------------------------------------------------------
TOTAL $ 97,525 $33,015 $0 $55,805 $105,700 $34,220 $0 $62,360
=============================================================================================================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related
to the performance of the audit of financial statements and are not reported under the category of audit fees.
(2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to
tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation.
(3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other
than audit, audit-related, and tax services.
During the Funds' fiscal years ended October 31, 2005 and October 31, 2006,
$35,000 was billed for each such fiscal year by D&T, the principal accountant
for the Funds, for work done in connection with its Rule 17Ad-13 examination of
Eaton Vance Management's assertion that it has maintained an effective internal
control structure over the sub-transfer agent and registrar functions, such
services being pre-approved in accordance with Rule 2-01(c) (7) (ii) of
Regulation S-X.
(e)(1) The registrant's audit committee has adopted policies and procedures
relating to the pre-approval of services provided by the registrant's principal
accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a
framework intended to assist the audit committee in the proper discharge of its
pre-approval responsibilities. As a general matter, the Pre-Approval Policies
(i) specify certain types of audit, audit-related, tax, and other services
determined to be pre-approved by the audit committee; and (ii) delineate
specific procedures governing the mechanics of the pre-approval process,
including the approval and monitoring of audit and non-audit service fees.
Unless a service is specifically pre-approved under the Pre-Approval Policies,
it must be separately pre-approved by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services
pre-approved therein must be reviewed and ratified by the registrant's audit
committee at least annually. The registrant's audit committee maintains full
responsibility for the appointment, compensation, and oversight of the work of
the registrant's principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the
registrant's audit committee pursuant to the "de minimis exception" set forth
in Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees
for audit-related, tax, and other services) billed for services rendered to all
of the Series in the Trust by each Series's respective principal accountant for
the last two fiscal years of each Series; and (ii) the aggregate non-audit fees
(i.e., fees for audit-related, tax, and other services) billed to the Eaton
Vance organization by each Series' respective principal accountant for the last
2 fiscal years of each Series.
FISCAL YEARS
ENDED 12/31/04 10/31/05 12/31/05 10/31/06
PWC D&T PWC D&T PWC D&T PWC D&T
- --------------------------------------------------------------------------------------------------------------------------------
REGISTRANT(1) $29,725 $11,130 $0 $18,585 $31,500 $11,550 $0 $19,290
EATON
VANCE(2) $98,305 $223,443 $33,235 $223,443 $83,416 $42,100 $68,486 $72,100
(1) Includes all of the Series of the Trust.
(2) During the fiscal years reported above, certain of the Funds were "feeder" funds in a "master-feeder" fund structure or
funds of funds. Various subsidiaries of Eaton Vance Corp. act in either an investment advisory and/or service provider
capacity with respect to the Series and/or their respective "master" funds (if applicable).
(h) The registrant's audit committee has considered whether the provision by
the registrant's principal accountant of non-audit services to the registrant's
investment adviser and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant that
were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is
compatible with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not required in this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
Please see schedule of investments contained in the Report to Stockholders
included under Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not required in this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not required in this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not required in this filing.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
No Material Changes.
ITEM 11. CONTROLS AND PROCEDURES
(a) It is the conclusion of the registrant's principal executive officer and
principal financial officer that the effectiveness of the registrant's current
disclosure controls and procedures (such disclosure controls and procedures
having been evaluated within 90 days of the date of this filing) provide
reasonable assurance that the information required to be disclosed by the
registrant has been recorded, processed, summarized and reported within the
time period specified in the Commission's rules and forms and that the
information required to be disclosed by the registrant has been accumulated and
communicated to the registrant's principal executive officer and principal
financial officer in order to allow timely decisions regarding required
disclosure.
(b) There have been no changes in the registrant's internal controls over
financial reporting during the second fiscal quarter of the period covered by
this report that has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS
(a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2).
(a)(2)(i) Treasurer's Section 302 certification.
(a)(2)(ii) President's Section 302 certification.
(b) Combined Section 906 certification.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Mutual Funds Trust
- ------------------------------
By: /s/ Thomas E. Faust, Jr.
------------------------------
Thomas E. Faust, Jr.
President
Date: December 19, 2006
-----------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Barbara E. Campbell
------------------------------
Barbara E. Campbell
Treasurer
Date: December 19, 2006
-----------------
By: /s/ Thomas E. Faust, Jr.
------------------------------
Thomas E. Faust, Jr.
President
Date: December 19, 2006
-----------------