<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-04015
EATON VANCE MUTUAL FUNDS TRUST
(Exact Name of Registrant as Specified in Charter)
THE EATON VANCE BUILDING, 255 STATE STREET, BOSTON, MASSACHUSETTS 02109
(Address of principal Executive Offices)
Alan R. Dynner
THE EATON VANCE BUILDING, 255 STATE STREET, BOSTON, MASSACHUSETTS 02109
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant's Telephone Number)
OCTOBER 31, 2003
Date of Fiscal Year End
APRIL 30, 2003
Date of Reporting Period
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ITEM 1. REPORTS TO STOCKHOLDERS
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[EATON VANCE LOGO]
[PHOTO OF STATUE OF LIBERTY]
SEMIANNUAL REPORT APRIL 30, 2003
[PHOTO OF TAX FORM/CALCULATOR]
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND
[PHOTO OF FLOOR STOCK EXCHANGE]
<Page>
IMPORTANT NOTICE REGARDING DELIVERY
OF SHAREHOLDER DOCUMENTS
The Securities and Exchange Commission (SEC) permits mutual 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.
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND AS OF APRIL 30, 2003
INVESTMENT UPDATE
[PHOTO OF GEORGE PIERIDES]
George Pierides
Fox Asset Management
Portfolio Manager
INVESTMENT ENVIRONMENT
- - The investment climate was challenging during the six-month period, as
small-cap stocks lagged their large-cap counterparts for the third
consecutive quarter. However, the small-cap universe showed signs of
renewal as the period ended. The S&P SmallCap 600 Index had a total return
of 3.54% for the six months ended April 30, 2003.(1)
- - The recent passage of the federal tax cut could provide a measure of
stimulus for the economy. Historically, following a period of economic
malaise, smaller companies have been among the first to benefit from an
accelerating economy.
THE FUND
- - The Fund's Class A shares had a total return of 5.42% during the six months
ended April 30, 2003.(2) This return resulted from an increase in net asset
value (NAV) per share to $9.34 on April 30, 2003 from $8.86 on October 31,
2002.
- - The Fund's Class B shares had a total return of 4.99% during the six months
ended April 30, 2003.(2) This return resulted from an increase in NAV per
share to $9.26 on April 30, 2003 from $8.82 on October 31, 2002.
- - The Fund's Class C shares had a total return of 4.99% during the six months
ended April 30, 2003.(2) This return resulted from an increase in NAV per
share to $9.26 on April 30, 2003 from $8.82 on October 31, 2002.
THE VIEWS EXPRESSED IN 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 FOX ASSET MANAGEMENT DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH
VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS ARE BASED ON MANY FACTORS, MAY NOT BE RELIED ON AS AN
INDICATION OF TRADING INTENT ON BEHALF OF ANY FUND.
MANAGEMENT DISCUSSION
- - The Fund focuses on small-cap companies that management believes are
inexpensive relative to the overall stock market. In addition, the Fund
pursues a variety of tax-managed strategies designed to avoid taxable
distributions. This tax-managed approach allows investors to participate
more fully in the growth of small companies, while considering the tax
events that can reduce investment returns.
- - While the economy has awaited a convincing recovery, stock selection has
remained of paramount importance. The Portfolio emphasized companies we
believe have good fundamentals, strong balance sheets and relatively low
valuation, and has sought a balance between cyclical and consumer stocks.
The Portfolio's largest sector weightings at April 30, 2003 were energy,
medical services and supplies, industrial products and retailing.
- - Energy stocks played a prominent role in the Portfolio and performed
relatively well. Natural gas companies benefited from rising gas prices,
which were high even by seasonal standards. Prices were boosted by an
unusually severe winter and by concerns over the availability of long-term
gas supplies.
- - Medical services and supplies stocks were among the Portfolio's best
performers during the period. A prime beneficiary of advances in medical
technology, the group has enjoyed relatively strong revenue growth, even as
other segments of the economy have struggled with declining demand.
- - Although consumers were increasingly beleaguered in recent months, the
Portfolio's restaurant stocks fared unusually well. While "fast-food"
chains have been troubled by issues of nutrition and cleanliness, other
companies have achieved impressive revenue growth through a blend of
attractive casual dining concepts and value-priced menus.
- - Some of the Portfolio's cyclical holdings fared less well. Transportation
and chemicals continued to experience subpar revenues, as demand remained
weak amid the slow recovery.
MUTUAL 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.
FUND INFORMATION
as of April 30, 2003
<Table>
<Caption>
PERFORMANCE(3) CLASS A CLASS B CLASS C
- ----------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year -14.00% -14.65% -14.65%
Life of Fund+ -5.67 -6.36 -6.36
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year -18.92% -18.92% -15.51%
Life of Fund+ -10.32 -10.38 -6.36
</Table>
+ Inception dates: Class A: 3/4/02; Class B: 3/4/02; Class C: 3/4/02
TEN LARGEST HOLDINGS(4) By total net assets
<Table>
Church & Dwight Co., Inc. 3.7%
Teleflex, Inc. 3.5
Arkansas Best Corp. 3.4
Lafarge North America, Inc. 3.2
BorgWarner, Inc. 3.2
AptarGroup, Inc. 3.2
Protective Life Corp. 3.0
RPM, Inc. 2.9
INAMED Corp. 2.8
Piedmont Natural Gas Co., Inc. 2.8
</Table>
(1) It is not possible to invest directly in an Index. (2) These returns do not
include the 5.75% maximum sales charge for the Fund's Class A shares or the
applicable contingent deferred sales charges (CDSC) for Class B and Class C
shares. (3) Returns are historical and are calculated by determining the
percentage change in net asset value with all distributions reinvested. SEC
average annual returns for Class A reflect a 5.75% sales charge; for Class
B, returns reflect applicable CDSC based on the following schedule: 5%-1st
and 2nd years; 4%-3rd year; 3%-4th year; 2%-5th year; 1%-6th year; for
Class C, 1-year return reflects 1% CDSC. (4) Based on market value. Ten
largest holdings represent 31.7% of the Portfolio's net assets. Holdings
are subject to change.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
2
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND AS OF APRIL 30, 2003
PERFORMANCE
The tables below set forth the pre-tax and after-tax performance for the Fund.
After-tax performance reflects the impact of federal income taxes on Fund
distributions of dividends and capital gains, as well as capital gains taxes on
the sale of Fund shares, while pre-tax performance does not. Because the
objective of the Fund is to provide long-term, after-tax returns to
shareholders, it is important for investors to know the effect of taxes on the
Fund's return.
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIOD ENDED APRIL 30, 2003)
RETURNS AT NET ASSET VALUE (NAV) (CLASS A)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes -14.00% -5.67%
Return After Taxes on Distributions -14.00% -5.67%
Return After Taxes on Distributions -9.10% -4.53%
and Sale of Fund Shares
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS A)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes -18.92% -10.32%
Return After Taxes on Distributions -18.92% -10.32%
Return After Taxes on Distributions -12.30% -8.24%
and Sale of Fund Shares
</Table>
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIOD ENDED APRIL 30, 2003)
RETURNS AT NET ASSET VALUE (NAV) (CLASS B)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes -14.65% -6.36%
Return After Taxes on Distributions -14.65% -6.36%
Return After Taxes on Distributions -9.52% -5.08%
and Sale of Fund Shares
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS B)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes -18.92% -10.38%
Return After Taxes on Distributions -18.92% -10.38%
Return After Taxes on Distributions -12.30% -8.29%
and Sale of Fund Shares
</Table>
RETURNS AT NET ASSET VALUE (NAV) (CLASS C)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes -14.65% -6.36%
Return After Taxes on Distributions -14.65% -6.36%
Return After Taxes on Distributions -9.52% -5.08%
and Sale of Fund Shares
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS C)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes -15.51% -6.36%
Return After Taxes on Distributions -15.51% -6.36%
Return After Taxes on Distributions -10.08% -5.08%
and Sale of Fund Shares
</Table>
Class A, Class B and Class C commenced operations on 3/4/02. Returns at Public
Offering Price (POP) reflect the deduction of the maximum sales charge, while
Returns at Net Asset Value (NAV) do not.
After-tax returns are calculated using the highest historical individual federal
income tax rate and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on a shareholder's tax situation and may differ from
those shown. After-tax returns are not relevant for shareholders who hold shares
in tax-deferred accounts or to shares held by non-taxable entities. Return After
Taxes on Distributions for a period may be the same as Return Before Taxes for
that period because no distributions were paid during that period or because the
taxable portion of distributions made during the period was insignificant. Also,
Return After Taxes on Distributions and Sale of Fund Shares for a period may be
greater than Return After Taxes on Distributions for the same period because of
realized losses on the sale of Fund shares.
Past performance (both before and after taxes) is no guarantee of future
results. 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 different.
3
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND AS OF APRIL 30, 2003
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
AS OF APRIL 30, 2003
Assets
- -----------------------------------------------------
Investment in Tax-Managed Small-Cap
Value Portfolio (Portfolio), at value
(identified cost, $11,258,998) $10,703,662
Receivable for Fund shares sold 426
Receivable from affiliate 78,927
- -----------------------------------------------------
TOTAL ASSETS $10,783,015
- -----------------------------------------------------
Liabilities
- -----------------------------------------------------
Payable for Fund shares redeemed $ 6,036
Payable to affiliate for distribution
and service fees 1,932
Payable to affiliate for Trustees' fees 80
Accrued expenses 20,094
- -----------------------------------------------------
TOTAL LIABILITIES $ 28,142
- -----------------------------------------------------
NET ASSETS $10,754,873
- -----------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------
Paid-in capital $11,540,876
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (186,094)
Accumulated net investment loss (44,573)
Net unrealized depreciation from
Portfolio (computed on the basis of
identified cost) (555,336)
- -----------------------------------------------------
TOTAL $10,754,873
- -----------------------------------------------------
Class A Shares
- -----------------------------------------------------
NET ASSETS $ 4,427,968
SHARES OUTSTANDING 474,308
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.34
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $9.34) $ 9.91
- -----------------------------------------------------
Class B Shares
- -----------------------------------------------------
NET ASSETS $ 3,625,214
SHARES OUTSTANDING 391,453
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.26
- -----------------------------------------------------
Class C Shares
- -----------------------------------------------------
NET ASSETS $ 2,701,691
SHARES OUTSTANDING 291,717
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.26
- -----------------------------------------------------
</Table>
On sales of $50,000 or more, the offering price of Class A shares is reduced.
STATEMENT OF OPERATIONS
<Table>
<Caption>
FOR THE SIX MONTHS ENDED
APRIL 30, 2003
Investment Income
- ---------------------------------------------------
Dividends allocated from Portfolio $ 53,535
Interest allocated from Portfolio 2,093
Expenses allocated from Portfolio (56,458)
- ---------------------------------------------------
NET INVESTMENT LOSS FROM PORTFOLIO $ (830)
- ---------------------------------------------------
Expenses
- ---------------------------------------------------
Administration fee $ 6,871
Trustees' fees and expenses 8
Distribution and service fees
Class A 4,796
Class B 15,140
Class C 11,139
Registration fees 55,628
Transfer and dividend disbursing agent
fees 10,803
Custodian fee 8,769
Legal and accounting services 5,183
Printing and postage 2,020
Miscellaneous 2,313
- ---------------------------------------------------
TOTAL EXPENSES $ 122,670
- ---------------------------------------------------
Deduct --
Preliminary allocation of expenses to
affiliate $ 78,927
- ---------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 78,927
- ---------------------------------------------------
NET EXPENSES $ 43,743
- ---------------------------------------------------
NET INVESTMENT LOSS $ (44,573)
- ---------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- ---------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $(146,386)
- ---------------------------------------------------
NET REALIZED LOSS $(146,386)
- ---------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 633,372
- ---------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 633,372
- ---------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 486,986
- ---------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 442,413
- ---------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
4
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND AS OF APRIL 30, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
SIX MONTHS ENDED
INCREASE (DECREASE) APRIL 30, 2003 PERIOD ENDED
IN NET ASSETS (UNAUDITED) OCTOBER 31, 2002(1)
- -------------------------------------------------------------------------------
From operations --
Net investment loss $ (44,573) $ (38,541)
Net realized loss (146,386) (39,708)
Net change in unrealized appreciation
(depreciation) 633,372 (1,188,708)
- -------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 442,413 $ (1,266,957)
- -------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 1,707,178 $ 4,205,443
Class B 1,612,838 3,570,446
Class C 1,060,232 2,428,136
Cost of shares redeemed
Class A (562,507) (633,644)
Class B (463,866) (779,516)
Class C (332,030) (233,293)
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ 3,021,845 $ 8,557,572
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 3,464,258 $ 7,290,615
- -------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------
At beginning of period $ 7,290,615 $ --
- -------------------------------------------------------------------------------
AT END OF PERIOD $ 10,754,873 $ 7,290,615
- -------------------------------------------------------------------------------
Accumulated net investment loss included in net assets
- -------------------------------------------------------------------------------
AT END OF PERIOD $ (44,573) $ --
- -------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 4, 2002, to October 31,
2002.
SEE NOTES TO FINANCIAL STATEMENTS
5
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND AS OF APRIL 30, 2003
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS A
-------------------------------------------
SIX MONTHS ENDED
APRIL 30, 2003 PERIOD ENDED
(UNAUDITED) OCTOBER 31, 2002(1)
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 8.860 $10.000
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment loss(2) $(0.024) $(0.046)
Net realized and unrealized
gain (loss) 0.504 (1.094)
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.480 $(1.140)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.340 $ 8.860
- -----------------------------------------------------------------------------
TOTAL RETURN(3) 5.42% (11.40)%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 4,428 $ 3,105
Ratios (As a percentage of
average daily net assets):
Net expenses(4) 1.75%(5) 1.75%(5)
Net investment loss (0.55)%(5) (0.74)%(5)
Portfolio Turnover of the
Portfolio 11% 5%
- -----------------------------------------------------------------------------
+ The operating expenses of the Fund reflect an allocation of expenses to
the Administrator. Had such action not been taken, the ratios and net
investment loss per share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(4) 3.47%(5) 4.41%(5)
Net investment loss (2.27)%(5) (3.40)%(5)
Net investment loss per share $(0.100) $(0.211)
- -----------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 4, 2002, to October 31,
2002.
(2) Net investment loss per share was computed using average shares
outstanding.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total
return is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
6
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND AS OF APRIL 30, 2003
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS B
-------------------------------------------
SIX MONTHS ENDED
APRIL 30, 2003 PERIOD ENDED
(UNAUDITED) OCTOBER 31, 2002(1)
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 8.820 $10.000
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment loss(2) $(0.056) $(0.091)
Net realized and unrealized
gain (loss) 0.496 (1.089)
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.440 $(1.180)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.260 $ 8.820
- -----------------------------------------------------------------------------
TOTAL RETURN(3) 4.99% (11.80)%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 3,625 $ 2,323
Ratios (As a percentage of
average daily net assets):
Net expenses(4) 2.50%(5) 2.50%(5)
Net investment loss (1.28)%(5) (1.47)%(5)
Portfolio Turnover of the
Portfolio 11% 5%
- -----------------------------------------------------------------------------
+ The operating expenses of the Fund reflect an allocation of expenses to
the Administrator. Had such action not been taken, the ratios and net
investment loss per share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(4) 4.22%(5) 5.16%(5)
Net investment loss (3.00)%(5) (4.13)%(5)
Net investment loss per share $(0.132) $(0.256)
- -----------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 4, 2002, to October 31,
2002.
(2) Net investment loss per share was computed using average shares
outstanding.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total
return is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
7
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND AS OF APRIL 30, 2003
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS C
-------------------------------------------
SIX MONTHS ENDED
APRIL 30, 2003 PERIOD ENDED
(UNAUDITED) OCTOBER 31, 2002(1)
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 8.820 $10.000
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment loss(2) $(0.056) $(0.092)
Net realized and unrealized
gain (loss) 0.496 (1.088)
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.440 $(1.180)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.260 $ 8.820
- -----------------------------------------------------------------------------
TOTAL RETURN(3) 4.99% (11.80)%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 2,702 $ 1,862
Ratios (As a percentage of
average daily net assets):
Net expenses(4) 2.50%(5) 2.50%(5)
Net investment loss (1.29)%(5) (1.48)%(5)
Portfolio Turnover of the
Portfolio 11% 5%
- -----------------------------------------------------------------------------
+ The operating expenses of the Fund reflect an allocation of expenses to
the Administrator. Had such action not been taken, the ratios and net
investment loss per share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(4) 4.22%(5) 5.16%(5)
Net investment loss (3.01)%(5) (4.15)%(5)
Net investment loss per share $(0.131) $(0.258)
- -----------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 4, 2002, to October 31,
2002.
(2) Net investment loss per share was computed using average shares
outstanding.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total
return is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
8
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND AS OF APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance Tax-Managed Small-Cap Value Fund (the Fund) is a diversified
series of Eaton Vance Mutual Funds Trust (the Trust). The Trust is an entity
of the type commonly known as 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 offers three classes of
shares. Class A shares are generally sold subject to a sales charge imposed
at time of purchase. Class B and Class C shares are sold at net asset value
and are generally subject to a contingent deferred sales charge (see Note 6).
Class B shares held for eight years will automatically convert to Class A
shares. 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 Fund
invests all of its investable assets in interests of the Tax-Managed Small-
Cap Value Portfolio (the Portfolio), a New York Trust, having the same
investment objective as the Fund. The value of the Fund's investment in the
Portfolio reflects the Fund's proportionate interest in the net assets of the
Portfolio (40.2% at April 30, 2003). The performance of the Fund is directly
affected by the performance of the Portfolio. The financial statements of the
Portfolio, including the Portfolio of Investments, are included elsewhere in
this report and should be read in conjunction with the Fund's financial
statements.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with accounting principles generally accepted in
the United States of America.
A Investment Valuation -- Valuation of securities by the Portfolio is discussed
in Note 1A of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.
B Income -- The Fund's net investment income or loss consists of the Fund's
pro-rata share of the net investment income or loss of the Portfolio, less
all actual and accrued expenses of the Fund, determined in accordance with
accounting principles generally accepted in the United States of America.
C 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 the relative size of the funds.
D 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 net investment income, and
any net realized capital gains. Accordingly, no provision for federal income
or excise tax is necessary. At October 31, 2002, the Fund, for federal income
tax purposes, had a capital loss carryover of $26,003 which will reduce the
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 loss
carryover will expire on October 31, 2010.
E Other -- Investment transactions are accounted for on a trade-date basis.
Dividends to shareholders are recorded on the ex-dividend date.
F 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.
G Interim Financial Statements -- The interim financial statements relating to
April 30, 2003 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders
- -------------------------------------------
It is the present policy of the Fund to make at least one distribution
annually (normally in December) of all or substantially all of its net
investment income, if any, and at least one distribution annually of all or
substantially all of its net realized capital gains, if any. Distributions
are paid in the form of additional shares of the Fund or, at the election of
the shareholder, in cash. Shareholders may
9
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND AS OF APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
reinvest all distributions in additional shares of the Fund at the net asset
value as of the close of business on the ex-dividend date. 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.
3 Shares of Beneficial Interest
- -------------------------------------------
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Transactions in Fund shares were as follows:
<Table>
<Caption>
SIX MONTHS ENDED
APRIL 30, 2003 PERIOD ENDED
CLASS A (UNAUDITED) OCTOBER 31, 2002(1)
-------------------------------------------------------------------------------
Sales 188,092 417,251
Redemptions (64,412) (66,623)
-------------------------------------------------------------------------------
NET INCREASE 123,680 350,628
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SIX MONTHS ENDED
APRIL 30, 2003 PERIOD ENDED
CLASS B (UNAUDITED) OCTOBER 31, 2002(1)
-------------------------------------------------------------------------------
Sales 180,955 351,931
Redemptions (52,915) (88,518)
-------------------------------------------------------------------------------
NET INCREASE 128,040 263,413
-------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
SIX MONTHS ENDED
APRIL 30, 2003 PERIOD ENDED
CLASS C (UNAUDITED) OCTOBER 31, 2002(1)
-------------------------------------------------------------------------------
Sales 117,915 237,199
Redemptions (37,379) (26,018)
-------------------------------------------------------------------------------
NET INCREASE 80,536 211,181
-------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 4, 2002, to
October 31, 2002.
4 Transactions with Affiliates
- -------------------------------------------
The administration fee is earned by Eaton Vance Management (EVM) as
compensation for managing and administering the business affairs of the Fund.
Under the administration agreement, EVM earns a fee in the amount of 0.15%
per annum of average daily net assets of the Fund. For the six months ended
April 30, 2003, the administration fee amounted to $6,871. To reduce the net
investment loss of the Fund, EVM was allocated $78,927 of the Fund's
operating expenses for the six months ended April 30, 2003. The Portfolio has
engaged Boston Management and Research (BMR), a subsidiary of EVM, to render
investment advisory services. See Note 2 of the Portfolio's Notes to
Financial Statements which are included elsewhere in this report. Effective
August 1, 2002, EVM serves as the sub-transfer agent of the Fund and receives
from the transfer agent an aggregate fee based upon the actual expenses
incurred by EVM in the performance of those services. For the six months
ended April 30, 2003, no significant amounts have been accrued or paid.
Except for Trustees of the Fund and the Portfolio who are not members of
EVM's or BMR's organization, officers and Trustees receive remuneration for
their services to the Fund out of the investment adviser fee earned by BMR.
Trustees of the Fund that are not affiliated with EVM or BMR may elect to
defer receipt of all or a percentage of their annual fees in accordance with
the terms of the Trustees Deferred Compensation Plan. For the six months
ended April 30, 2003, no significant amounts have been deferred.
Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's
principal underwriter, received $2,524 as its portion of the sales charge on
sales of Class A shares for the six months ended April 30, 2003.
Certain officers and Trustees of the Fund and of the Portfolio are officers
of the above organizations.
5 Distribution and Service Plans
- -------------------------------------------
The Fund has in effect distribution plans for Class B shares (Class B Plan),
and Class C shares (Class C Plan), pursuant to Rule 12b-1 under the
Investment Company Act of 1940 and a service plan for Class A shares
(Class A Plan) (collectively, the Plans). The Class B and Class C Plans
require the Fund to pay EVD amounts equal to 1/365 of 0.75% of the Fund's
average daily net assets attributable to Class B and 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 B and 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 each respective class, reduced by
the aggregate amount of contingent deferred
10
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND AS OF APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
sales charges (see Note 6) and daily amounts theretofore paid to EVD by each
respective class. The Fund paid or accrued $11,355 and $8,354 for Class B and
Class C shares, respectively, to or payable to EVD for the six months ended
April 30, 2003, representing 0.75% (annualized) of the average daily net
assets for Class B and Class C shares, respectively. At April 30, 2003, the
amount of Uncovered Distribution Charges of EVD calculated under the Plans
was approximately $169,000 and $140,000 for Class B and Class C shares,
respectively.
The Plans authorize the Fund to make payments of service fees to EVD,
investment dealers and other persons in amounts equal to 0.25% (annualized)
of the Fund's average daily net assets attributable to Class A, Class B and
Class C shares for each fiscal year. Service fee payments are made for
personal services and/or the maintenance of shareholder accounts. Service
fees are separate and distinct from the sales commissions and distribution
fees payable by the Fund to EVD and, as such, are not subject to automatic
discontinuance when there are no outstanding Uncovered Distribution Charges
of EVD. Service fees for the six months ended April 30, 2003 amounted to
$4,796, $3,785, and $2,785 for Class A, Class B and Class C shares,
respectively.
6 Contingent Deferred Sales Charge
- -------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B shares made within six years of purchase and 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. Class A shares may be subject to a 1% CDSC if
redeemed within one year of purchase (depending upon the circumstances of
purchase). The Class B CDSC is imposed at declining rates that begin at 5% in
the case of redemptions in the first and second year after purchase,
declining one percentage point each subsequent year. Class C shares will be
subject to a 1% CDSC if redeemed within one year 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 B and Class C redemptions
are paid to EVD to reduce the amount of Uncovered Distribution Charges
calculated under the Class B and Class C Plans, respectively (see Note 5).
CDSC assessed on Class B and Class C shares when no Uncovered Distribution
Charges exist for the respective classes will be credited to the Fund. EVD
received approximately $100, $3,000 and $300 of CDSC paid by shareholders for
Class A shares, Class B shares and Class C shares, respectively, for the six
months ended April 30, 2003.
7 Investment Transactions
- -------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio aggregated
$4,398,459 and $1,410,943, respectively, for the six months ended April 30,
2003.
11
<Page>
TAX-MANAGED SMALL-CAP VALUE PORTFOLIO AS OF APRIL 30, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED)
COMMON STOCKS -- 90.0%
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------
Auto Related -- 3.9%
- --------------------------------------------------------------
BorgWarner, Inc. 14,500 $ 850,715
Superior Industries International, Inc. 5,000 194,150
- --------------------------------------------------------------
$ 1,044,865
- --------------------------------------------------------------
Cement -- 3.2%
- --------------------------------------------------------------
Lafarge North America, Inc. 27,000 $ 859,950
- --------------------------------------------------------------
$ 859,950
- --------------------------------------------------------------
Chemical -- 2.9%
- --------------------------------------------------------------
RPM, Inc. 63,000 $ 778,680
- --------------------------------------------------------------
$ 778,680
- --------------------------------------------------------------
Computer / Communications Related -- 5.9%
- --------------------------------------------------------------
Actel Corp.(1) 25,000 $ 495,250
International Rectifier Corp.(1) 27,000 610,740
Veeco Instruments, Inc.(1) 29,000 466,610
- --------------------------------------------------------------
$ 1,572,600
- --------------------------------------------------------------
Construction / Engineering -- 4.0%
- --------------------------------------------------------------
Granite Construction, Inc. 32,000 $ 537,600
Insituform Technologies, Inc.(1) 33,000 526,350
- --------------------------------------------------------------
$ 1,063,950
- --------------------------------------------------------------
Electrical Equipment -- 2.3%
- --------------------------------------------------------------
Belden, Inc. 40,000 $ 475,600
Cable Design Technologies Corp.(1) 18,100 125,071
- --------------------------------------------------------------
$ 600,671
- --------------------------------------------------------------
Electronics -- 3.3%
- --------------------------------------------------------------
Bel Fuse, Inc., Class B 30,800 $ 606,760
Technitrol, Inc.(1) 18,000 284,220
- --------------------------------------------------------------
$ 890,980
- --------------------------------------------------------------
Energy -- 11.3%
- --------------------------------------------------------------
Newfield Exploration Co.(1) 21,000 $ 722,190
NUI Corp. 19,000 267,330
Piedmont Natural Gas Co., Inc. 20,000 747,200
Questar Corp. 24,500 739,900
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------
Energy (continued)
- --------------------------------------------------------------
XTO Energy, Inc. 27,333 532,993
- --------------------------------------------------------------
$ 3,009,613
- --------------------------------------------------------------
Food Wholesalers / Retailers -- 2.1%
- --------------------------------------------------------------
SUPERVALU, Inc. 34,000 $ 559,980
- --------------------------------------------------------------
$ 559,980
- --------------------------------------------------------------
Household Products -- 5.6%
- --------------------------------------------------------------
Church & Dwight Co., Inc. 31,000 $ 975,570
Libbey, Inc. 23,000 517,040
- --------------------------------------------------------------
$ 1,492,610
- --------------------------------------------------------------
Industrial Products -- 7.1%
- --------------------------------------------------------------
A.O. Smith Corp. 23,700 $ 706,734
CLARCOR, Inc. 6,800 254,388
Teleflex, Inc. 24,000 921,360
- --------------------------------------------------------------
$ 1,882,482
- --------------------------------------------------------------
Insurance -- 3.0%
- --------------------------------------------------------------
Protective Life Corp. 28,000 $ 804,440
- --------------------------------------------------------------
$ 804,440
- --------------------------------------------------------------
Medical Services / Supplies -- 10.5%
- --------------------------------------------------------------
DENTSPLY International, Inc. 14,100 $ 528,045
INAMED Corp.(1) 20,200 753,258
MIM Corp.(1) 62,000 453,840
PolyMedica Corp. 18,500 689,125
West Pharmaceutical Services, Inc. 16,000 381,600
- --------------------------------------------------------------
$ 2,805,868
- --------------------------------------------------------------
Packaging -- 3.2%
- --------------------------------------------------------------
AptarGroup, Inc. 24,500 $ 843,290
- --------------------------------------------------------------
$ 843,290
- --------------------------------------------------------------
Restaurant -- 5.7%
- --------------------------------------------------------------
Applebee's International, Inc. 19,000 $ 520,600
CBRL Group, Inc. 22,100 704,548
Outback Steakhouse, Inc. 8,000 285,920
- --------------------------------------------------------------
$ 1,511,068
- --------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
12
<Page>
TAX-MANAGED SMALL-CAP VALUE PORTFOLIO AS OF APRIL 30, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------
Retailing -- 6.7%
- --------------------------------------------------------------
BJ's Wholesale Club, Inc.(1) 40,000 $ 564,800
Claire's Stores, Inc. 14,000 363,860
Footstar, Inc.(1) 38,000 351,500
ShopKo Stores, Inc.(1) 41,000 493,230
- --------------------------------------------------------------
$ 1,773,390
- --------------------------------------------------------------
Toy -- 4.4%
- --------------------------------------------------------------
JAKKS Pacific, Inc.(1) 52,000 $ 676,000
RC2 Corp.(1) 32,000 508,160
- --------------------------------------------------------------
$ 1,184,160
- --------------------------------------------------------------
Transportation -- 4.9%
- --------------------------------------------------------------
Arkansas Best Corp. 36,000 $ 912,600
Roadway Corp. 10,500 389,130
- --------------------------------------------------------------
$ 1,301,730
- --------------------------------------------------------------
Total Common Stocks
(identified cost $24,665,223) $23,980,327
- --------------------------------------------------------------
Total Investments -- 90.0%
(identified cost $24,665,223) $23,980,327
- --------------------------------------------------------------
Other Assets, Less Liabilities -- 10.0% $ 2,678,106
- --------------------------------------------------------------
Net Assets -- 100.0% $26,658,433
- --------------------------------------------------------------
</Table>
(1) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS
13
<Page>
TAX-MANAGED SMALL-CAP VALUE PORTFOLIO AS OF APRIL 30, 2003
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<Table>
<Caption>
AS OF APRIL 30, 2003
Assets
- -----------------------------------------------------
Investments, at value (identified cost,
$24,665,223) $23,980,327
Cash 2,965,710
Receivable for investments sold 396,741
Dividends and interest receivable 20,973
Prepaid expenses 15
- -----------------------------------------------------
TOTAL ASSETS $27,363,766
- -----------------------------------------------------
Liabilities
- -----------------------------------------------------
Payable for investments purchased $ 686,565
Payable to affiliate for Trustees' fees 155
Accrued expenses 18,613
- -----------------------------------------------------
TOTAL LIABILITIES $ 705,333
- -----------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $26,658,433
- -----------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------
Net proceeds from capital contributions
and withdrawals $27,343,329
Net unrealized depreciation (computed on
the basis of identified cost) (684,896)
- -----------------------------------------------------
TOTAL $26,658,433
- -----------------------------------------------------
</Table>
STATEMENT OF OPERATIONS
<Table>
<Caption>
FOR THE SIX MONTHS ENDED
APRIL 30, 2003
Investment Income
- ----------------------------------------------------
Dividends $ 132,803
Interest 5,198
- ----------------------------------------------------
TOTAL INVESTMENT INCOME $ 138,001
- ----------------------------------------------------
Expenses
- ----------------------------------------------------
Investment adviser fee $ 114,019
Trustees' fees and expenses 197
Custodian fee 16,415
Legal and accounting services 9,341
Miscellaneous 136
- ----------------------------------------------------
TOTAL EXPENSES $ 140,108
- ----------------------------------------------------
NET INVESTMENT LOSS $ (2,107)
- ----------------------------------------------------
Realized and Unrealized Gain (Loss)
- ----------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (363,851)
- ----------------------------------------------------
NET REALIZED LOSS $ (363,851)
- ----------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $1,594,378
- ----------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $1,594,378
- ----------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $1,230,527
- ----------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $1,228,420
- ----------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
14
<Page>
TAX-MANAGED SMALL-CAP VALUE PORTFOLIO AS OF APRIL 30, 2003
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
SIX MONTHS ENDED
INCREASE (DECREASE) APRIL 30, 2003 PERIOD ENDED
IN NET ASSETS (UNAUDITED) OCTOBER 31, 2002(1)
- -------------------------------------------------------------------------------
From operations --
Net investment loss $ (2,107) $ (49,324)
Net realized loss (363,851) (67,537)
Net change in unrealized appreciation
(depreciation) 1,594,378 (2,279,274)
- -------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 1,228,420 $ (2,396,135)
- -------------------------------------------------------------------------------
Capital transactions --
Contributions $ 10,208,915 $ 21,692,696
Withdrawals (2,118,845) (2,056,628)
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $ 8,090,070 $ 19,636,068
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 9,318,490 $ 17,239,933
- -------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------
At beginning of period $ 17,339,943 $ 100,010
- -------------------------------------------------------------------------------
AT END OF PERIOD $ 26,658,433 $ 17,339,943
- -------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 1, 2002, to October 31,
2002.
SEE NOTES TO FINANCIAL STATEMENTS
15
<Page>
TAX-MANAGED SMALL-CAP VALUE PORTFOLIO AS OF APRIL 30, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
SIX MONTHS ENDED
APRIL 30, 2003 PERIOD ENDED
(UNAUDITED) OCTOBER 31, 2002(1)
- ----------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 1.24%(2) 1.77%(2)
Net investment loss (0.02)%(2) (0.74)%(2)
Portfolio Turnover 11% 5%
- ----------------------------------------------------------------------------
TOTAL RETURN(3) 5.69% (11.41)%
Net assets, end of period
(000's omitted) $26,658 $17,340
- ----------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 1, 2002, to October 31,
2002.
(2) Annualized.
(3) Total return is not computed on an annualized basis.
SEE NOTES TO FINANCIAL STATEMENTS
16
<Page>
TAX-MANAGED SMALL-CAP VALUE PORTFOLIO AS OF APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Tax-Managed Small-Cap Value Portfolio (the Portfolio) is registered under the
Investment Company Act of 1940, as amended, as a diversified open-end
management investment company. The Portfolio, which was organized as a trust
under the laws of the State of New York on December 10, 2001, seeks to
achieve long-term after-tax returns by investing in a diversified portfolio
of value stocks of small-cap companies. The Declaration of Trust permits the
Trustees to issue interests in the Portfolio. At April 30, 2003, the Eaton
Vance Tax-Managed Small-Cap Value Fund held an approximate 40.2% interest in
the Portfolio and one other investor owned an interest greater than 10% that
equaled 59.5%. The following is a summary of significant accounting policies
consistently followed by the Portfolio in the preparation of its financial
statements. The policies are in conformity with accounting principles
generally accepted in the United States of America.
A Investment Valuation -- Marketable securities, including options, 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 sale prices are not available are generally valued at the mean
between the latest 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, which approximates fair value. 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. Investments for which valuations or market
quotations are unavailable are valued at fair value using methods determined
in good faith by or at the direction of the Trustees.
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
Portfolio is informed of the ex-dividend date. Interest income is recorded on
the accrual basis.
C Income Taxes -- The Portfolio is treated as a partnership for federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes on its share of taxable
income. Since the Portfolio's investors include regulated investment
companies that invest all or substantially all of their assets in the
Portfolio, the Portfolio normally must satisfy the applicable source of
income and diversification requirements (under the Internal Revenue Code) in
order for its investors to satisfy them. The Portfolio will allocate at least
annually among its investors each investor's distributive share of the
Portfolio's net investment income, net realized capital gains, and any other
items of income, gain, loss, deduction or credit.
D Financial Futures Contract -- Upon entering a financial futures contract, the
Portfolio is required to deposit either in cash or securities an amount
(initial margin) equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by the Portfolio (margin maintenance) each day, dependent on daily
fluctuations in the value of the underlying security, and are recorded for
book purposes as unrealized gains or losses by the Portfolio. The Portfolio's
investment in financial futures contracts is designed to hedge against
anticipated future changes in price of current or anticipated Portfolio
positions. Should prices move unexpectedly, the Portfolio may not achieve the
anticipated benefits of the financial futures contracts and may realize a
loss.
E Put Options -- Upon the purchase of a put option by the Portfolio, the
premium paid is recorded as an investment, the value of which is
marked-to-market daily. When a purchased option expires, the Portfolio will
realize a loss in the amount of the cost of the option. When the Portfolio
enters into a closing sale transaction, the Portfolio will realize a gain or
loss depending on whether the sales proceeds from the closing sale
transaction are greater or less than the cost of the option. When the
Portfolio exercises a put option, settlement is made in cash. The risk
associated with purchasing options is limited to the premium originally paid.
F Securities Sold Short -- The Portfolio may sell a security short if it owns
at least an equal amount of the security sold short or another security
convertible or exchangeable for an equal amount of the security sold short.
Such transactions are done in anticipation of a decline in the market price
of the securities or in order to hedge portfolio positions. The Portfolio
will generally borrow the security sold in order to make delivery to the
buyer. Upon executing the transaction, the Portfolio records the proceeds as
deposits with brokers in the Statement of Assets and Liabilities and
establishes an offsetting payable for securities sold short for the
securities due on settlement. The proceeds
17
<Page>
TAX-MANAGED SMALL-CAP VALUE PORTFOLIO AS OF APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
are retained by the broker as collateral for the short position. The
liability is marked-to-market and the Portfolio is required to pay the
lending broker any dividend or interest income earned while the short
position is open. A gain or loss is recorded when the security is delivered
to the broker. The Portfolio may recognize a loss on the transaction if the
market value of the securities sold increases before the securities are
delivered.
G 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 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.
H Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolio. Pursuant to the custodian agreement, IBT receives a fee
reduced by credits which are determined based on the average daily cash
balances the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are reported as a reduction of
expenses on the Statement of Operations.
I 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.
J Other -- Investment transactions are accounted for on a trade-date basis.
K Interim Financial Statements -- The interim financial statements relating to
April 30, 2003 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the
Portfolio's management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to the Portfolio.
Under the advisory agreement, BMR receives a monthly advisory fee in the
amount of 1.00% annually of average daily net assets of the Portfolio up to
$500 million, and at reduced rates as daily net assets exceed that level. For
the six months ended April 30, 2003, the advisory fee amounted to $114,019.
Pursuant to a sub-advisory agreement, BMR has delegated the investment
management of the Portfolio to Fox Asset Management LLC (Fox), a
majority-owned subsidiary of EVM. BMR pays Fox a monthly fee for sub-advisory
services provided to the Portfolio in the amount of 0.75% annually of average
daily net assets up to $500 million, and at reduced rates as daily net assets
exceed that level. Except for Trustees of the Portfolio who are not members
of EVM's or BMR's organization, officers and Trustees receive remuneration
for their services to the Portfolio out of the investment adviser fee.
Trustees of the Portfolio that are not affiliated with BMR may elect to defer
receipt of all or a percentage of their annual fees in accordance with the
terms of the Trustees Deferred Compensation Plan. For the six months ended
April 30, 2003, no significant amounts have been deferred.
Certain officers and Trustees of the Portfolio are officers of the above
organizations.
3 Investment Transactions
- -------------------------------------------
Purchases and sales of investments, other than short-term obligations,
aggregated $8,834,662 and $2,270,771, respectively, for the six months ended
April 30, 2003.
4 Federal Income Tax Basis of Unrealized Appreciation (Depreciation)
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned at April 30, 2003, as computed on a federal income tax
basis, were as follows:
<Table>
AGGREGATE COST $24,665,223
-----------------------------------------------------
Gross unrealized appreciation $ 1,468,081
Gross unrealized depreciation (2,152,977)
-----------------------------------------------------
NET UNREALIZED DEPRECIATION $ (684,896)
-----------------------------------------------------
</Table>
18
<Page>
TAX-MANAGED SMALL-CAP VALUE PORTFOLIO AS OF APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
5 Financial Instruments
- -------------------------------------------
The Portfolio 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 written
options, forward foreign currency exchange contracts and financial futures
contracts and may involve, to a varying degree, elements of risk in excess of
the amounts recognized for financial statement purposes. The notional or
contractual amounts of these instruments represent the investment the
Portfolio 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. The Portfolio
did not have any open obligations under these financial instruments at
April 30, 2003.
6 Line of Credit
- -------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $150 million unsecured line of credit agreement
with a group of banks. Borrowings will be made by the Portfolio solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each participating portfolio or fund
based on its borrowings at an amount above either the Eurodollar rate or
Federal Funds rate. In addition, a fee computed at an annual rate of 0.10% on
the daily unused portion of the line of credit is allocated among the
participating portfolios and funds at the end of each quarter. The Portfolio
did not have any significant borrowings or allocated fees for the six months
ended April 30, 2003.
19
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INVESTMENT MANAGEMENT
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND
Officers
Thomas E. Faust Jr.
President
William H. Ahern, Jr.
Vice President
Thomas J. Fetter
Vice President
Michael R. Mach
Vice President
Robert B. MacIntosh
Vice President
Duncan W. Richardson
Vice President
Walter A. Row, III
Vice President
Judith A. Saryan
Vice President
Susan M. Schiff
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
Donald R. Dwight
James B. Hawkes
Samuel L. Hayes, III
William H. Park
Norton H. Reamer
Lynn A. Stout
TAX-MANAGED SMALL-CAP VALUE PORTFOLIO
Officers
James B. Hawkes
President and Trustee
Thomas E. Faust Jr.
Vice President
George C. Pierides
Vice President and
Portfolio Manager
Michelle A. Alexander
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
Donald R. Dwight
Samuel L. Hayes, III
William H. Park
Norton H. Reamer
Lynn A. Stout
20
<Page>
INVESTMENT ADVISER OF TAX-MANAGED SMALL-CAP VALUE PORTFOLIO
BOSTON MANAGEMENT AND RESEARCH
The Eaton Vance Building
255 State Street
Boston, Ma 02109
SUB-ADVISER OF TAX-MANAGED SMALL-CAP VALUE PORTFOLIO
FOX ASSET MANAGEMENT LLC
44 Sycamore Avenue
Little Silver, Nj 07739
ADMINISTRATOR OF EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND
EATON VANCE MANAGEMENT
The Eaton Vance Building
255 State Street
Boston, MA02109
PRINCIPAL UNDERWRITER
EATON VANCE DISTRIBUTORS, INC.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
PFPC INC.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02940-9653
(800) 262-1122
EATON VANCE FUNDS
EATON VANCE MANAGEMENT
BOSTON MANAGEMENT AND RESEARCH
EATON VANCE DISTRIBUTORS, INC.
PRIVACY NOTICE
The Eaton Vance organization is committed to ensuring your financial privacy.
This notice is being sent to comply with privacy regulations of the Securities
and Exchange Commission. Each of the above financial institutions has in effect
the following policy with respect to nonpublic personal information about its
customers:
- - Only such information received from you, through application forms or
otherwise, and information about your Eaton Vance fund transactions will be
collected.
- - 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).
- - Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the confidentiality
of such information.
For more information about Eaton Vance's privacy policies, call:1-800-262-1122
EATON VANCE TAX-MANAGED SMALL-CAP VALUE FUND
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its sales charges and
expenses. Please read the prospectus carefully before you invest or send money.
1300-6/03 TMSCVSRC
<Page>
ITEM 2. CODE OF ETHICS
Not Required in Filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not Required in Filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not Required in Filing.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not Required in Filing.
ITEM 8. [RESERVED]
ITEM 9. 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 significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS
(a) and (b) Exhibit is attached to Filing.
(c) Exhibit is attached to Filing.
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: June 18, 2003
<Page>
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/ James L. O'Connor
---------------------
James L. O'Connor
Treasurer
Date: June 18, 2003
By: /s/ Thomas E. Faust Jr.
-----------------------
Thomas E. Faust Jr.
President
Date: June 18, 2003