<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
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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
--------------
(Registrant's Telephone Number)
October 31, 2003
Date of Fiscal Year End
April 30, 2003
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
[EATON VANCE LOGO]
[GRAPHIC]
SEMIANNUAL REPORT APRIL 30, 2003
[GRAPHIC]
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND
[GRAPHIC]
<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 INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2003
INVESTMENT UPDATE
MANAGEMENT DISCUSSION
[photo of Kiersten Christensen]
Kiersten Christensen
Portfolio Manager
- - Most international markets continued the rise in April that began in
mid-March. With the exceptions of Japan and southeast Asia, almost all
countries and sectors rose, with little relation to company fundamentals.
In Tax-Managed International Growth Portfolio, we continued the adjustment
process we began at year-end to bring the Portfolio more in line with the
Morgan Stanley Capital International Europe, Australasia, and Far East
Index (EAFE) - a broad-based, unmanaged market index of international
stocks.(1)
- - In sectors such as consumer discretionary, consumer staples, and even
industrials, we identified investment opportunities that we believe have
the potential to provide future returns. We were very selective in adding
to the information technology and telecom sectors, believing these areas to
have less fundamental promise. Further, we rotated out of some of the
Portfolio's best performing stocks, in utilities as well as other sectors,
that we believed had become too expensive, and into those with better
risk-reward potential.
- - On a regional basis, Japan, Singapore, and Hong Kong holdings hurt
performance, as they were impacted by the SARS epidemic, the long-term
economic impact of which is still uncertain. In Japan, the situation was
further exacerbated by mixed corporate earnings results and corporate-wide
share sales in order to return portions of employee pension funds to the
government.
THE FUND
The Past Six Months
- - During the six months ended April 30, 2003, the Fund's Class A shares had a
total return of -2.06%, the result of a decrease in net asset value (NAV)
to $5.22 on April 30, 2003, from $5.33 on October 31, 2002.(2)
- - The Fund's Class B shares had a total return of -2.51% during the same
period, the result of a decrease in NAV to $5.04 from $5.17.(2)
- - The Fund's Class C shares had a total return of -2.33% during the same
period, the result of a decrease in NAV to $5.04 from $5.16.(2)
- - The Fund's Class D shares had a total return of -2.47% during the same
period, the result of a decrease in NAV to $5.52 from $5.66.(2)
- - For comparison, the MSCI EAFE Index had a return of 1.81% for the six
months ended April 30, 2003.(1)
<Table>
<Caption>
LARGEST GEOGRAPHIC CONCENTRATIONS* BY TOTAL NET ASSETS
- -------------------------------------------------------------------------------
Europe 43%
United Kingdom 25%
Japan 20%
Other 9%
</Table>
*As of April 30, 2003. Concentrations are subject to change.
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 EATON VANCE 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.
FUND INFORMATION
as of April 30, 2003
<Table>
<Caption>
PERFORMANCE(3) CLASS A CLASS B CLASS C CLASS D
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year -28.59% -29.31% -29.21% -29.23%
Five Years -11.77 -12.47 -12.49 N.A.
Life of Fund+ -12.03 -12.72 -12.74 -24.34
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
One Year -32.73% -32.85% -29.92% -32.77%
Five Years -12.81 -12.82 -12.49 N.A.
Life of Fund+ -13.06 -12.90 -12.74 -25.78
</Table>
+ Inception Dates - Class A: 4/22/98; Class B: 4/22/98; Class C:4/22/98;
Class D:3/15/01
TEN LARGEST HOLDINGS(4) By total net assets
<Table>
Vodafone Group PLC 2.5%
Total Fina Elf SA 2.4
BPAmoco PLC 2.4
GlaxoSmithKline PLC 2.2
HSBC Holdings PLC 2.0
Royal Bank of Scotland Group PLC 2.0
Novartis AG 1.9
Nestle SA 1.9
Royal Dutch Petroleum Co. 1.8
Nokia Oyj 1.7
</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 Class A shares or the applicable
contingent deferred sales charge(CDSC)for Class B, Class C, and Class D
shares. (3) Returns are historical and are calculated by determining the
percentage change in net asset value with all distributions reinvested. SEC
returns for Class A reflect the maximum 5.75% sales charge. SEC returns for
Class B and Class D 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. SEC 1-Year return for Class C reflects 1% CDSC. (4)
Ten largest holdings accounted for 20.8% 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.
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.
2
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH 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 FIVE YEARS LIFE OF FUND
Return Before Taxes -28.59% -11.77% -12.03%
Return After Taxes on Distributions -28.49% -11.72% -11.98%
Return After Taxes on Distributions -18.48% -8.80% -8.98%
and Sale of Fund Shares
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS A)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes -32.73% -12.81% -13.06%
Return After Taxes on Distributions -32.63% -12.76% -13.01%
Return After Taxes on Distributions -21.18% -9.53% -9.70%
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 FIVE YEARS LIFE OF FUND
Return Before Taxes -29.31% -12.47% -12.72%
Return After Taxes on Distributions -29.21% -12.43% -12.68%
Return After Taxes on Distributions -18.95% -9.33% -9.50%
and Sale of Fund Shares
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS B)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes -32.85% -12.82% -12.90%
Return After Taxes on Distributions -32.74% -12.78% -12.86%
Return After Taxes on Distributions -21.24% -9.57% -9.62%
and Sale of Fund Shares
</Table>
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIOD ENDED APRIL 30, 2003)
RETURNS AT NET ASSET VALUE (NAV) (CLASS C)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes -29.21% -12.49% -12.74%
Return After Taxes on Distributions -29.11% -12.44% -12.69%
Return After Taxes on Distributions -18.88% -9.34% -9.51%
and Sale of Fund Shares
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS C)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes -29.92% -12.49% -12.74%
Return After Taxes on Distributions -29.81% -12.44% -12.69%
Return After Taxes on Distributions -19.34% -9.34% -9.51%
and Sale of Fund Shares
</Table>
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIOD ENDED APRIL 30, 2003)
RETURNS AT NET ASSET VALUE (NAV) (CLASS D)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes -29.23% N.A. -24.34%
Return After Taxes on Distributions -29.13% N.A. -24.26%
Return After Taxes on Distributions -18.90% N.A. -18.72%
and Sale of Fund Shares
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS D)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes -32.77% N.A. -25.78%
Return After Taxes on Distributions -32.67% N.A. -25.69%
Return After Taxes on Distributions -21.20% N.A. -19.78%
and Sale of Fund Shares
</Table>
Class A, Class B, andClass C commenced operations on 4/22/98. Class D commenced
operations on 3/15/01. Returns at Public Offering Price (POP) reflect the
deduction of the maximum sales charge, while Returns at Net AssetValue (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. The Fund's after-tax returns also
may reflect foreign tax credits passed by the Fund to its shareholders.
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 INTERNATIONAL GROWTH 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 International
Growth Portfolio, at value
(identified cost, $79,141,738) $ 68,229,113
Receivable for Fund shares sold 635,927
- -------------------------------------------------------
TOTAL ASSETS $ 68,865,040
- -------------------------------------------------------
Liabilities
- -------------------------------------------------------
Payable for Fund shares redeemed $ 147,905
Payable to affiliate for distribution
and service fees 12,923
Payable to affiliate for Trustees' fees 153
Accrued expenses 72,395
- -------------------------------------------------------
TOTAL LIABILITIES $ 233,376
- -------------------------------------------------------
NET ASSETS $ 68,631,664
- -------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------
Paid-in capital $ 197,357,918
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (117,771,314)
Accumulated net investment loss (42,315)
Net unrealized depreciation from
Portfolio (computed on the basis of
identified cost) (10,912,625)
- -------------------------------------------------------
TOTAL $ 68,631,664
- -------------------------------------------------------
Class A Shares
- -------------------------------------------------------
NET ASSETS $ 23,899,360
SHARES OUTSTANDING 4,580,093
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 5.22
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $5.22) $ 5.54
- -------------------------------------------------------
Class B Shares
- -------------------------------------------------------
NET ASSETS $ 25,429,602
SHARES OUTSTANDING 5,042,521
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 5.04
- -------------------------------------------------------
Class C Shares
- -------------------------------------------------------
NET ASSETS $ 18,848,239
SHARES OUTSTANDING 3,742,134
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 5.04
- -------------------------------------------------------
Class D Shares
- -------------------------------------------------------
NET ASSETS $ 454,463
SHARES OUTSTANDING 82,289
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 5.52
- -------------------------------------------------------
</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
(net of foreign taxes, $122,272) $ 896,181
Interest allocated from Portfolio 26,955
Expenses allocated from Portfolio (443,837)
- ------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 479,299
- ------------------------------------------------------
Expenses
- ------------------------------------------------------
Trustees' fees and expenses $ 745
Distribution and service fees
Class A 32,806
Class B 133,832
Class C 97,184
Class D 2,315
Transfer and dividend disbursing agent
fees 155,962
Registration fees 41,540
Printing and postage 27,320
Custodian fee 9,343
Legal and accounting services 8,421
Amortization of organization expenses 7,162
Miscellaneous 4,984
- ------------------------------------------------------
TOTAL EXPENSES $ 521,614
- ------------------------------------------------------
NET INVESTMENT LOSS $ (42,315)
- ------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- ------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $(31,665,304)
Foreign currency transactions (11,559)
- ------------------------------------------------------
NET REALIZED LOSS $(31,676,863)
- ------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 30,075,529
Foreign currency 18,147
- ------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 30,093,676
- ------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (1,583,187)
- ------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (1,625,502)
- ------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
4
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH 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 YEAR ENDED
IN NET ASSETS (UNAUDITED) OCTOBER 31, 2002
- ----------------------------------------------------------------------------
From operations --
Net investment loss $ (42,315) $ (1,299,361)
Net realized loss (31,676,863) (49,839,018)
Net change in unrealized
appreciation (depreciation) 30,093,676 17,848,554
- ----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (1,625,502) $ (33,289,825)
- ----------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 57,887,387 $ 99,660,027
Class B 944,585 6,656,199
Class C 4,929,734 12,829,702
Class D 43,066 627,992
Cost of shares redeemed
Class A (61,529,729) (111,874,505)
Class B (4,393,522) (15,018,001)
Class C (7,508,131) (18,860,399)
Class D (43,555) (275,546)
- ----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (9,670,165) $ (26,254,531)
- ----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (11,295,667) $ (59,544,356)
- ----------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------
At beginning of period $ 79,927,331 $ 139,471,687
- ----------------------------------------------------------------------------
AT END OF PERIOD $ 68,631,664 $ 79,927,331
- ----------------------------------------------------------------------------
Accumulated net investment loss included in net assets
- ----------------------------------------------------------------------------
AT END OF PERIOD $ (42,315) $ --
- ----------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
5
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2003
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS A
--------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 ------------------------------------------------------------------------------
(UNAUDITED)(1) 2002(1) 2001(1) 2000(1) 1999(1) 1998(1)(2)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 5.330 $ 7.350 $12.070 $12.160 $ 8.840 $10.000
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ 0.008 $(0.044) $(0.045) $ 0.025 $ 0.016 $ 0.012
Net realized and unrealized
gain (loss) (0.118) (1.976) (4.656) (0.045) 3.304 (1.172)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.110) $(2.020) $(4.701) $(0.020) $ 3.320 $(1.160)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net investment income $ -- $ -- $(0.019) $(0.070) $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ -- $ -- $(0.019) $(0.070) $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 5.220 $ 5.330 $ 7.350 $12.070 $12.160 $ 8.840
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) (2.06)% (27.48)% (39.01)% (0.21)% 37.56% (11.60)%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $23,899 $27,929 $51,419 $84,136 $27,833 $ 6,659
Ratios (As a percentage of
average daily net assets):
Net expenses(4) 2.17%(5) 1.82% 1.70% 1.62% 1.73% 1.97%(5)
Net expenses after
custodian fee
reduction(4) 2.17%(5) 1.82% 1.70% 1.62% 1.73% 1.95%(5)
Net investment income
(loss) 0.31%(5) (0.64)% (0.46)% 0.19% 0.15% 0.25%(5)
Portfolio Turnover of the
Portfolio 68% 128% 31%(6) -- -- --
Portfolio Turnover of the
Fund(7) -- -- 90% 40% 60% 14%
- ------------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund may reflect a reduction of the investment adviser fee, an allocation of expenses to the
Investment Adviser, or both. Had such actions not been taken, the ratios and net investment income per share would have been as
follows:
Ratios (As a percentage of
average daily net assets):
Expenses 2.20%(5)
Expenses after custodian
fee reduction 2.18%(5)
Net investment income 0.02%(5)
Net investment income per
share $ 0.001
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income (loss) per share was computed using average shares
outstanding.
(2) For the period from the start of business, April 22, 1998, to October
31, 1998.
(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.
(6) For the period from the Portfolio's start of business, July 23, 2001 to
October 31, 2001.
(7) Represents the rate of portfolio activity for the period during which
the Fund was making investments directly in securities. On July 23,
2001, the Fund transferred all of its investable assets to the
Tax-Managed International Growth Portfolio.
SEE NOTES TO FINANCIAL STATEMENTS
6
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2003
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS B
--------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 ------------------------------------------------------------------------------
(UNAUDITED)(1) 2002(1) 2001(1) 2000(1) 1999(1) 1998(1)(2)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 5.170 $ 7.190 $11.880 $12.030 $ 8.810 $10.000
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss $(0.009) $(0.092) $(0.115) $(0.073) $(0.055) $(0.039)
Net realized and unrealized
gain (loss) (0.121) (1.928) (4.575) (0.051) 3.275 (1.151)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.130) $(2.020) $(4.690) $(0.124) $ 3.220 $(1.190)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net investment income $ -- $ -- $ -- $(0.026) $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ -- $ -- $ -- $(0.026) $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 5.040 $ 5.170 $ 7.190 $11.880 $12.030 $ 8.810
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) (2.51)% (28.10)% (39.48)% (1.05)% 36.55% (11.90)%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $25,430 $29,610 $50,444 $79,099 $26,498 $ 9,808
Ratios (As a percentage of
average daily net assets):
Net expenses(4) 2.92%(5) 2.57% 2.45% 2.38% 2.53% 2.72%(5)
Net expenses after
custodian fee
reduction(4) 2.92%(5) 2.57% 2.45% 2.38% 2.53% 2.70%(5)
Net investment loss (0.36)%(5) (1.38)% (1.21)% (0.56)% (0.53)% (0.80)%(5)
Portfolio Turnover of the
Portfolio 68% 128% 31%(6) -- -- --
Portfolio Turnover of the
Fund(7) -- -- 90% 40% 60% 14%
- ------------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund may reflect a reduction of the investment adviser fee, an allocation of expenses to the
Investment Adviser, or both. Had such actions 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 2.95%(5)
Expenses after custodian
fee reduction 2.93%(5)
Net investment loss (1.03)%(5)
Net investment loss per share $(0.050)
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) For the period from the start of business, April 22, 1998, to October
31, 1998.
(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.
(6) For the period from the Portfolio's start of business, July 23, 2001 to
October 31, 2001.
(7) Represents the rate of portfolio activity for the period during which
the Fund was making investments directly in securities. On July 23,
2001, the Fund transferred all of its investable assets to the
Tax-Managed International Growth Portfolio.
SEE NOTES TO FINANCIAL STATEMENTS
7
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2003
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS C
--------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 ------------------------------------------------------------------------------
(UNAUDITED)(1) 2002(1) 2001(1) 2000(1) 1999(1) 1998(1)(2)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 5.160 $ 7.180 $11.860 $12.000 $ 8.800 $10.000
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment loss $(0.009) $(0.091) $(0.113) $(0.077) $(0.080) $(0.055)
Net realized and unrealized
gain (loss) (0.111) (1.929) (4.567) (0.047) 3.280 (1.145)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.120) $(2.020) $(4.680) $(0.124) $ 3.200 $(1.200)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net investment income $ -- $ -- $ -- $(0.016) $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ -- $ -- $ -- $(0.016) $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 5.040 $ 5.160 $ 7.180 $11.860 $12.000 $ 8.800
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) (2.33)% (28.13)% (39.46)% (1.05)% 36.36% (12.00)%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $18,848 $21,919 $37,263 $54,635 $14,470 $ 4,416
Ratios (As a percentage of
average daily net assets):
Net expenses(4) 2.92%(5) 2.57% 2.45% 2.40% 2.71% 2.97%(5)
Net expenses after
custodian fee
reduction(4) 2.92%(5) 2.57% 2.45% 2.40% 2.71% 2.95%(5)
Net investment loss (0.35)%(5) (1.38)% (1.20)% (0.59)% (0.78)% (1.15)%(5)
Portfolio Turnover of the
Portfolio 68% 128% 31%(6) -- -- --
Portfolio Turnover of the
Fund(7) -- -- 90% 40% 60% 14%
- ------------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund may reflect a reduction of the investment adviser fee, an allocation of expenses to the
Investment Adviser, or both. Had such actions 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 3.20%(5)
Expenses after custodian
fee reduction 3.18%(5)
Net investment loss (1.38)%(5)
Net investment loss per share $(0.066)
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) For the period from the start of business, April 22, 1998, to October
31, 1998.
(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.
(6) For the period from the Portfolio's start of business, July 23, 2001 to
October 31, 2001.
(7) Represents the rate of portfolio activity for the period during which
the Fund was making investments directly in securities. On July 23,
2001, the Fund transferred all of its investable assets to the
Tax-Managed International Growth Portfolio.
SEE NOTES TO FINANCIAL STATEMENTS
8
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2003
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS D
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 ---------------------------------
(UNAUDITED)(1) 2002(1) 2001(1)(2)
- ---------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 5.660 $ 7.870 $10.000
- ---------------------------------------------------------------------------------------
Income (loss) from operations
- ---------------------------------------------------------------------------------------
Net investment loss $(0.009) $(0.088) $(0.077)
Net realized and unrealized
loss (0.131) (2.122) (2.053)
- ---------------------------------------------------------------------------------------
TOTAL LOSS FROM OPERATIONS $(0.140) $(2.210) $(2.130)
- ---------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 5.520 $ 5.660 $ 7.870
- ---------------------------------------------------------------------------------------
TOTAL RETURN(3) (2.47)% (28.08)% (21.30)%
- ---------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 454 $ 468 $ 346
Ratios (As a percentage of
average daily net assets):
Net expenses(4) 2.92%(5) 2.57% 2.45%(5)
Net investment loss (0.33)%(5) (1.24)% (1.42)%(5)
Portfolio Turnover of the
Portfolio 68% 128% 31%(6)
Portfolio Turnover of the
Fund(7) -- -- 90%
- ---------------------------------------------------------------------------------------
</Table>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) For the period from the start of business, March 15, 2001, to October
31, 2001.
(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.
(6) For the period from the Portfolio's start of business, July 23, 2001 to
October 31, 2001.
(7) Represents the rate of portfolio activity for the period during which
the Fund was making investments directly in securities. On July 23,
2001, the Fund transferred all of its investable assets to the
Tax-Managed International Growth Portfolio.
SEE NOTES TO FINANCIAL STATEMENTS
9
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance Tax-Managed International Growth 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 four classes of
shares. Class A shares are generally sold subject to a sales charge imposed
at time of purchase. Class B, Class C and Class D shares are sold at net
asset value and are subject to a contingent deferred sales charge (see Note
6). Class D 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, 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 in the Tax-Managed International
Growth 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 (74.0% 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 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. At October 31, 2002, the Fund, for federal
income tax purposes, had a capital loss carryover of $84,444,158 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 capital loss carryover will expire on October 31,
2007 ($125,361), October 31, 2008 ($3,231,701), October 31, 2009
($31,955,609) and October 31, 2010 ($49,131,487).
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 the relative size of the funds.
E Deferred Organization Expenses -- Costs incurred by the Fund in connection
with its organization have been amortized on the straight-line basis over
five years.
F Other -- Investment transactions are accounted for on a trade-date basis.
G 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.
H 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.
10
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
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 and at least one distribution annually of all or
substantially all of its net realized capital gains (reduced by available
capital loss carryforwards from prior years, if any). Distributions are paid
in the form of additional shares or, at the election of the shareholder, in
cash. Shareholders may reinvest all distributions in 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). Such shares may be issued in a number of different series (such as
the Fund) and classes. Transactions in Fund shares were as follows:
<Table>
<Caption>
SIX MONTHS ENDED
APRIL 30, 2003 YEAR ENDED
CLASS A (UNAUDITED) OCTOBER 31, 2002
----------------------------------------------------------------------------
Sales 11,068,067 14,737,260
Redemptions (11,731,722) (16,488,577)
----------------------------------------------------------------------------
NET DECREASE (663,655) (1,751,317)
----------------------------------------------------------------------------
<Caption>
SIX MONTHS ENDED
APRIL 30, 2003 YEAR ENDED
CLASS B (UNAUDITED) OCTOBER 31, 2002
----------------------------------------------------------------------------
Sales 183,901 1,022,020
Redemptions (865,877) (2,310,314)
----------------------------------------------------------------------------
NET DECREASE (681,976) (1,288,294)
----------------------------------------------------------------------------
<Caption>
SIX MONTHS ENDED
APRIL 30, 2003 YEAR ENDED
CLASS C (UNAUDITED) OCTOBER 31, 2002
----------------------------------------------------------------------------
Sales 990,485 1,990,378
Redemptions (1,492,193) (2,935,398)
----------------------------------------------------------------------------
NET DECREASE (501,708) (945,020)
----------------------------------------------------------------------------
<Caption>
SIX MONTHS ENDED
APRIL 30, 2003 YEAR ENDED
CLASS D (UNAUDITED) OCTOBER 31, 2002
----------------------------------------------------------------------------
Sales 7,515 80,313
Redemptions (7,907) (41,602)
----------------------------------------------------------------------------
NET INCREASE (DECREASE) (392) 38,711
----------------------------------------------------------------------------
</Table>
4 Transactions with Affiliates
- -------------------------------------------
Eaton Vance Management (EVM) serves as the administrator to the Fund, but
receives no compensation. 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.
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 fees earned by BMR.
The Fund was informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary
of EVM and the Fund's principal underwriter, received $4,798 as its portion
of the sales charge on sales of Class A shares for the six months ended
April 30, 2003.
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 activities. During the
six months ended April 30, 2003, no significant amounts have been earned.
Certain officers and Trustees of the Fund and 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),
Class C shares (Class C Plan) and Class D shares (Class D 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,
Class C and Class D 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,
Class C and Class D 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) 5% (in the case
of
11
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND AS OF APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
Class B and Class D) and 6.25% (in the case of Class C) of the aggregate
amount received by the Fund for each class 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
sales charges (see Note 6) and daily amounts theretofore paid to EVD by each
respective class. The Fund paid or accrued $100,374, $72,888 and $1,736 for
Class B, Class C and Class D shares, respectively, to or payable to EVD for
the six months ended April 30, 2003, representing 0.75% of the average daily
net assets for Class B, Class C and Class D shares, respectively. At
April 30, 2003, the amount of Uncovered Distribution Charges of EVD
calculated under the Plans was approximately $3,686,000, $5,632,000 and
$34,000 for Class B, Class C and Class D shares, respectively.
The Plans authorize the Fund to make payments of service fees to EVD,
investment dealers and other persons amounting to 0.25% of the Fund's average
daily net assets attributable to Class A, Class B, Class C and Class D shares
for each fiscal year. Service fee payments will be 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 fee
payments for the six months ended April 30, 2003 amounted to $32,806,
$33,458, $24,296, and $579 for Class A, Class B, Class C and Class D shares,
respectively.
6 Contingent Deferred Sales Charge
- -------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B and Class D 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 and Class D 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 in 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 charges received on Class B, Class C and Class
D redemptions are paid to EVD to reduce the amount of Uncovered Distribution
Charges calculated under the Class B, Class C and Class D Plans, respectively
(see Note 5). CDSC charges received on Class B, Class C and Class D shares
when no Uncovered Distribution Charges exist for the respective classes will
be credited to the Fund. EVD received approximately $56,000, $2,000 and $0 of
CDSC paid by shareholders for Class B, Class C and Class D 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
$63,262,487 and $74,438,394, respectively, for the six months ended
April 30, 2003.
12
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO AS OF APRIL 30, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED)
COMMON STOCKS -- 97.4%
<Table>
<Caption>
SECURITY SHARES VALUE
- -----------------------------------------------------------------
Advertising -- 0.2%
- -----------------------------------------------------------------
WPP Group PLC 20,000 $ 142,324
- -----------------------------------------------------------------
$ 142,324
- -----------------------------------------------------------------
Aerospace and Defense -- 0.3%
- -----------------------------------------------------------------
Singapore Technologies Engineering Ltd. 300,000 $ 270,331
- -----------------------------------------------------------------
$ 270,331
- -----------------------------------------------------------------
Airlines -- 0.4%
- -----------------------------------------------------------------
Ryanair Holdings PLC(1) 50,000 $ 342,054
- -----------------------------------------------------------------
$ 342,054
- -----------------------------------------------------------------
Apparel -- 0.6%
- -----------------------------------------------------------------
Adidas-Salomon AG 1,100 $ 94,648
Burberry Group PLC 120,000 501,531
- -----------------------------------------------------------------
$ 596,179
- -----------------------------------------------------------------
Applications Software -- 0.3%
- -----------------------------------------------------------------
Oracle Corp. Japan 7,500 $ 189,292
Satyam Computer Services ADR 10,000 77,000
- -----------------------------------------------------------------
$ 266,292
- -----------------------------------------------------------------
Auto and Parts -- 0.4%
- -----------------------------------------------------------------
Toyoda Gosei Co., Ltd. 20,000 $ 356,364
- -----------------------------------------------------------------
$ 356,364
- -----------------------------------------------------------------
Automobiles -- 1.9%
- -----------------------------------------------------------------
DaimlerChrysler AG 8,500 $ 274,145
Honda Motor Co., Ltd. 6,000 198,725
Nissan Motor Co., Ltd. 30,000 230,169
Toyota Motor Co. 40,000 905,584
Yamaha Motor Co., Ltd. 20,000 148,918
- -----------------------------------------------------------------
$ 1,757,541
- -----------------------------------------------------------------
Banking -- 14.9%
- -----------------------------------------------------------------
ABN Amro Holdings 62,500 $ 1,056,015
Allied Irish Banks PLC 75,789 1,162,982
Banco Bilbao Vizcaya Argentaria SA 20,200 203,340
<Caption>
SECURITY SHARES VALUE
- -----------------------------------------------------------------
Banking (continued)
- -----------------------------------------------------------------
Banco Santander Central Hispano SA 30,000 $ 235,699
Bank of Ireland(1) 60,000 733,212
Barclays PLC 145,000 1,001,723
BNP Paribas SA 12,000 563,268
Commonwealth Bank of Australia 8,900 151,545
Danske Bank A/S 5,300 101,974
DBS Group Holdings Ltd. 60,000 293,985
Deutsche Bank AG 6,000 310,293
HBOS PLC 70,000 820,062
HSBC Holdings PLC 171,780 1,882,022
Lloyds TSB Group PLC 130,000 854,984
National Australia Bank Ltd. 15,000 304,956
Royal Bank of Scotland Group PLC 70,000 1,835,910
Societe Generale 4,400 269,090
Svenska Handelsbanken AB 61,000 969,473
UBS AG 18,000 854,015
UniCredito Italiano SPA 34,900 152,756
- -----------------------------------------------------------------
$13,757,304
- -----------------------------------------------------------------
Beverages -- 1.9%
- -----------------------------------------------------------------
Diageo PLC 75,000 $ 831,889
Heineken NV 5,500 204,211
Interbrew 15,000 334,800
SABMiller PLC 25,000 172,211
Scottish & Newcastle PLC 30,000 171,412
- -----------------------------------------------------------------
$ 1,714,523
- -----------------------------------------------------------------
Biotechnology -- 0.2%
- -----------------------------------------------------------------
Lion Bioscience AG ADR(1) 30,000 $ 147,000
- -----------------------------------------------------------------
$ 147,000
- -----------------------------------------------------------------
Broadcasting and Cable -- 1.0%
- -----------------------------------------------------------------
British Sky Broadcasting Group PLC(1) 50,000 $ 518,233
Capital Radio PLC 60,000 441,117
- -----------------------------------------------------------------
$ 959,350
- -----------------------------------------------------------------
Broadcasting and Publishing -- 0.6%
- -----------------------------------------------------------------
Gruppo Editoriale L'Espresso SPA 150,000 $ 589,918
- -----------------------------------------------------------------
$ 589,918
- -----------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
13
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO AS OF APRIL 30, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<Table>
<Caption>
SECURITY SHARES VALUE
- -----------------------------------------------------------------
Building Materials -- 0.8%
- -----------------------------------------------------------------
CRH PLC 15,000 $ 230,342
Lafarge SA 2,700 181,395
Sumitomo Osaka Cement Co., Ltd. 130,000 179,859
Taiheiyo Cement Corp. 135,000 186,777
- -----------------------------------------------------------------
$ 778,373
- -----------------------------------------------------------------
Business and Public Services -- 0.1%
- -----------------------------------------------------------------
Sap AG 1,200 $ 122,939
- -----------------------------------------------------------------
$ 122,939
- -----------------------------------------------------------------
Business Services - Miscellaneous -- 0.4%
- -----------------------------------------------------------------
Capita Group PLC 43,800 $ 177,459
Compass Group PLC 40,000 184,118
- -----------------------------------------------------------------
$ 361,577
- -----------------------------------------------------------------
Chemicals -- 1.1%
- -----------------------------------------------------------------
Asahi Kasei Corp. 39,000 $ 106,280
BASF AG 3,400 151,662
Bayer AG 8,000 145,973
JSR Corp. 24,000 250,344
Shin-Etsu Chemical Co., Ltd. 12,000 359,215
- -----------------------------------------------------------------
$ 1,013,474
- -----------------------------------------------------------------
Computer Software & Services -- 0.9%
- -----------------------------------------------------------------
Maconomy A/S(1) 743,000 $ 837,636
- -----------------------------------------------------------------
$ 837,636
- -----------------------------------------------------------------
Construction and Housing -- 0.2%
- -----------------------------------------------------------------
Volker Wessels Stevin 10,000 $ 229,338
- -----------------------------------------------------------------
$ 229,338
- -----------------------------------------------------------------
Consumer Electronics -- 2.2%
- -----------------------------------------------------------------
Philips Electronics NV 30,000 $ 558,112
Pioneer Corp. 20,000 400,805
Sharp Corp. 20,000 209,626
Yamaha Corp. 80,000 904,914
- -----------------------------------------------------------------
$ 2,073,457
- -----------------------------------------------------------------
<Caption>
SECURITY SHARES VALUE
- -----------------------------------------------------------------
Consumer Products -- 0.2%
- -----------------------------------------------------------------
Shimano Inc. 10,000 $ 158,729
- -----------------------------------------------------------------
$ 158,729
- -----------------------------------------------------------------
Data Processing and Reproduction -- 1.3%
- -----------------------------------------------------------------
Canon, Inc. 30,000 $ 1,212,477
- -----------------------------------------------------------------
$ 1,212,477
- -----------------------------------------------------------------
Distribution / Wholesale -- 0.5%
- -----------------------------------------------------------------
Li & Fung Ltd. 400,000 $ 448,773
- -----------------------------------------------------------------
$ 448,773
- -----------------------------------------------------------------
Distribution / Wholesale / Retail -- 0.5%
- -----------------------------------------------------------------
Esprit Holdings Ltd. 225,000 $ 441,400
- -----------------------------------------------------------------
$ 441,400
- -----------------------------------------------------------------
Diversified Minerals -- 0.2%
- -----------------------------------------------------------------
Anglo American PLC 10,000 $ 143,203
- -----------------------------------------------------------------
$ 143,203
- -----------------------------------------------------------------
Drugs -- 9.8%
- -----------------------------------------------------------------
Actelion Ltd.(1) 16,000 $ 1,024,552
Altana AG 5,000 246,190
AstraZeneca PLC 15,000 588,556
Aventis SA 8,000 406,313
Biovail Corp.(1) 35,000 1,265,250
GlaxoSmithKline PLC 100,674 2,017,714
Novartis AG 45,000 1,775,050
Roche Holding AG 10,000 636,290
Shire Pharmaceuticals Group PLC(1) 50,000 321,248
Takeda Chemical Industries, Ltd. 20,000 732,853
- -----------------------------------------------------------------
$ 9,014,016
- -----------------------------------------------------------------
Electric Utilities -- 1.2%
- -----------------------------------------------------------------
Iberdrola SA 15,000 $ 241,558
International Power PLC(1) 30,000 53,701
Scottish and Southern Energy PLC 80,000 822,140
- -----------------------------------------------------------------
$ 1,117,399
- -----------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
14
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO AS OF APRIL 30, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<Table>
<Caption>
SECURITY SHARES VALUE
- -----------------------------------------------------------------
Electrical Equipment -- 0.7%
- -----------------------------------------------------------------
Oki Electric Industry Co., Ltd.(1) 300,000 $ 643,971
- -----------------------------------------------------------------
$ 643,971
- -----------------------------------------------------------------
Electronic Components - Miscellaneous -- 1.8%
- -----------------------------------------------------------------
Olympus Optical Co., Ltd. 30,000 $ 519,453
Siemens AG 20,000 997,034
Yokogawa Electric Corp. 14,000 99,782
- -----------------------------------------------------------------
$ 1,616,269
- -----------------------------------------------------------------
Energy Sources -- 4.2%
- -----------------------------------------------------------------
BP Amoco PLC 348,264 $ 2,206,970
Royal Dutch Petroleum Co. 40,000 1,636,056
- -----------------------------------------------------------------
$ 3,843,026
- -----------------------------------------------------------------
Engineering and Construction -- 0.6%
- -----------------------------------------------------------------
JGC Corp. 30,000 $ 211,303
Vinci SA 5,500 358,152
- -----------------------------------------------------------------
$ 569,455
- -----------------------------------------------------------------
Entertainment / Hotels -- 0.2%
- -----------------------------------------------------------------
Hilton Group PLC 60,000 $ 146,719
- -----------------------------------------------------------------
$ 146,719
- -----------------------------------------------------------------
Financial -- 0.1%
- -----------------------------------------------------------------
Hong Kong Exchanges and Clearing Ltd. 86,000 $ 100,346
- -----------------------------------------------------------------
$ 100,346
- -----------------------------------------------------------------
Financial Services -- 2.1%
- -----------------------------------------------------------------
Fortis 35,000 $ 582,775
ING Groep NV 50,000 811,890
Nomura Securities Co., Ltd. 59,200 586,242
- -----------------------------------------------------------------
$ 1,980,907
- -----------------------------------------------------------------
Food - Retail -- 0.7%
- -----------------------------------------------------------------
Carrefour SA 8,000 $ 347,924
Tesco PLC 90,000 284,808
- -----------------------------------------------------------------
$ 632,732
- -----------------------------------------------------------------
<Caption>
SECURITY SHARES VALUE
- -----------------------------------------------------------------
Food and Household Products -- 2.8%
- -----------------------------------------------------------------
Nestle SA 8,500 $ 1,732,839
Parmalat Finanziaria SPA 230,000 588,824
Yakult Honsha Co., Ltd. 17,000 249,455
- -----------------------------------------------------------------
$ 2,571,118
- -----------------------------------------------------------------
Foods -- 0.5%
- -----------------------------------------------------------------
Groupe Danone 3,000 $ 424,526
- -----------------------------------------------------------------
$ 424,526
- -----------------------------------------------------------------
Hotels -- 0.3%
- -----------------------------------------------------------------
InterContinental Hotels Group PLC(1) 12,712 $ 77,204
Shangri-La Asia Ltd. 330,000 208,391
- -----------------------------------------------------------------
$ 285,595
- -----------------------------------------------------------------
Household Durables -- 1.4%
- -----------------------------------------------------------------
Nitori Co., Ltd. 30,000 $ 1,315,613
- -----------------------------------------------------------------
$ 1,315,613
- -----------------------------------------------------------------
Household Durables / Appliances -- 0.5%
- -----------------------------------------------------------------
Electrolux AB 24,000 $ 450,383
- -----------------------------------------------------------------
$ 450,383
- -----------------------------------------------------------------
Household Products -- 0.9%
- -----------------------------------------------------------------
Kao Corp. 25,000 $ 455,937
L'Oreal SA 3,200 228,735
LVMH Moet Hennessy Louis Vuitton SA 3,500 152,725
- -----------------------------------------------------------------
$ 837,397
- -----------------------------------------------------------------
Household Products / Food -- 1.4%
- -----------------------------------------------------------------
Unilever PLC 132,500 $ 1,302,374
- -----------------------------------------------------------------
$ 1,302,374
- -----------------------------------------------------------------
Industrial Automation -- 0.1%
- -----------------------------------------------------------------
Elektrobit Group Oyj(1) 152,200 $ 61,148
- -----------------------------------------------------------------
$ 61,148
- -----------------------------------------------------------------
Industrial Conglomerate -- 0.7%
- -----------------------------------------------------------------
Man AG 5,400 $ 98,351
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
15
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO AS OF APRIL 30, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<Table>
<Caption>
SECURITY SHARES VALUE
- -----------------------------------------------------------------
Industrial Conglomerate (continued)
- -----------------------------------------------------------------
Sonae, S.G.P.S., SA(1) 1,300,000 $ 565,812
- -----------------------------------------------------------------
$ 664,163
- -----------------------------------------------------------------
Insurance -- 3.2%
- -----------------------------------------------------------------
Aegon NV 62,400 $ 634,406
Assicurazione Generali SPA 40,000 920,923
AXA Company 30,000 455,663
Swiss Reinsurance 15,000 979,872
- -----------------------------------------------------------------
$ 2,990,864
- -----------------------------------------------------------------
Investment Services -- 0.3%
- -----------------------------------------------------------------
Deutsche Boerse AG 5,700 $ 267,170
- -----------------------------------------------------------------
$ 267,170
- -----------------------------------------------------------------
Machinery -- 1.9%
- -----------------------------------------------------------------
Daikin Industries, Ltd. 48,000 $ 798,524
Komatsu Ltd. 100,000 381,519
NTN Corp. 95,000 363,240
Schneider Electric SA 4,200 198,831
- -----------------------------------------------------------------
$ 1,742,114
- -----------------------------------------------------------------
Medical Products -- 1.4%
- -----------------------------------------------------------------
Given Imaging, Ltd.(1) 40,000 $ 318,400
QIAGEN NV(1) 45,000 283,950
Smith & Nephew PLC 100,000 666,870
- -----------------------------------------------------------------
$ 1,269,220
- -----------------------------------------------------------------
Metals - Industrial -- 1.5%
- -----------------------------------------------------------------
Arcelor(1) 11,000 $ 124,479
BHP Billiton Ltd. 120,000 678,597
Rio Tinto Ltd. 30,000 596,399
- -----------------------------------------------------------------
$ 1,399,475
- -----------------------------------------------------------------
Multimedia -- 0.4%
- -----------------------------------------------------------------
Promotora de Informaciones SA (Prisa) 45,000 $ 341,496
- -----------------------------------------------------------------
$ 341,496
- -----------------------------------------------------------------
Oil and Gas - Equipment and Services -- 4.5%
- -----------------------------------------------------------------
Centrica PLC 37,700 $ 100,172
<Caption>
SECURITY SHARES VALUE
- -----------------------------------------------------------------
Oil and Gas - Equipment and Services (continued)
- -----------------------------------------------------------------
Fortum Oyj 110,000 789,347
Shell Transport & Trading Co. PLC 32,200 $ 192,860
Tokyo Gas Co., Ltd. 250,000 813,349
Total Fina Elf SA 17,000 2,229,210
- -----------------------------------------------------------------
$ 4,124,938
- -----------------------------------------------------------------
Paper and Forest Products -- 0.5%
- -----------------------------------------------------------------
Oji Paper Co. Ltd. 35,000 $ 132,358
Stora Enso Oyj 15,000 167,400
UPM-Kymmene Oyj 11,000 160,816
- -----------------------------------------------------------------
$ 460,574
- -----------------------------------------------------------------
Pharmacies - Retail -- 1.5%
- -----------------------------------------------------------------
Boots Group PLC 17,200 $ 157,380
Shoppers Drug Mart Corp.(1) 75,000 1,246,863
- -----------------------------------------------------------------
$ 1,404,243
- -----------------------------------------------------------------
Publishing -- 0.8%
- -----------------------------------------------------------------
Pearson PLC 40,000 $ 333,395
Reed Elsevier PLC 50,000 398,763
- -----------------------------------------------------------------
$ 732,158
- -----------------------------------------------------------------
Real Estate -- 0.3%
- -----------------------------------------------------------------
Henderson Land Development Co., Ltd. 100,000 $ 248,107
- -----------------------------------------------------------------
$ 248,107
- -----------------------------------------------------------------
Restaurants -- 0.0%
- -----------------------------------------------------------------
Mitchells & Butlers PLC(1) 12,712 $ 43,072
- -----------------------------------------------------------------
$ 43,072
- -----------------------------------------------------------------
Retail -- 2.2%
- -----------------------------------------------------------------
Don Quijote Co., Ltd. 8,000 $ 726,480
Inditex 35,000 697,612
Marks & Spencer Group PLC 42,000 195,674
Metro AG 3,700 102,776
Seven - Eleven Japan Co., Ltd. 3,000 71,441
The Daimaru, Inc. 60,000 215,831
- -----------------------------------------------------------------
$ 2,009,814
- -----------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
16
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO AS OF APRIL 30, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<Table>
<Caption>
SECURITY SHARES VALUE
- -----------------------------------------------------------------
Semiconductor Components / Integrated Circuits -- 1.0%
- -----------------------------------------------------------------
STMicroelectronics NV 15,000 $ 310,025
Taiwan Semiconductor SP ADR(1) 75,000 627,750
- -----------------------------------------------------------------
$ 937,775
- -----------------------------------------------------------------
Semiconductor Equipment -- 0.7%
- -----------------------------------------------------------------
Arm Holdings PLC(1) 190,000 $ 194,347
Rohm Co. 4,000 412,209
- -----------------------------------------------------------------
$ 606,556
- -----------------------------------------------------------------
Telecommunication Equipment -- 1.6%
- -----------------------------------------------------------------
Nokia Oyj 90,000 $ 1,522,670
- -----------------------------------------------------------------
$ 1,522,670
- -----------------------------------------------------------------
Telecommunications -- 8.5%
- -----------------------------------------------------------------
Nippon Telegraph and Telephone Corp. 400 $ 1,401,979
NTT Mobile Communication Network, Inc. 600 1,237,632
Portugal Telecom, SGPS, SA 50,000 357,678
Telecom Italia Mobile SPA 300,000 1,417,543
Telecom Italia SPA 83,000 677,574
Telefonica SA(1) 40,000 442,382
Vodafone Group PLC 922,954 1,821,762
Vodafone Group PLC ADR 25,000 494,000
- -----------------------------------------------------------------
$ 7,850,550
- -----------------------------------------------------------------
Telecommunications - Services -- 2.2%
- -----------------------------------------------------------------
BCE, Inc. 50,000 $ 991,000
Elisa Oyj(1) 70,000 539,028
TeliaSonera AB(1) 150,000 544,050
- -----------------------------------------------------------------
$ 2,074,078
- -----------------------------------------------------------------
Tobacco -- 0.3%
- -----------------------------------------------------------------
Altadis SA 12,000 $ 309,355
- -----------------------------------------------------------------
$ 309,355
- -----------------------------------------------------------------
Transportation -- 1.1%
- -----------------------------------------------------------------
East Japan Railway Co. 185 $ 837,666
MTR Corp. Ltd. 135,000 145,402
- -----------------------------------------------------------------
$ 983,068
- -----------------------------------------------------------------
<Caption>
SECURITY SHARES VALUE
- -----------------------------------------------------------------
Utilities - Electrical and Gas -- 2.4%
- -----------------------------------------------------------------
E. ON AG 13,840 $ 662,455
Endesa SA 18,000 255,318
National Grid Transco PLC 100,000 656,881
Scottish Power PLC 100,000 621,320
- -----------------------------------------------------------------
$ 2,195,974
- -----------------------------------------------------------------
Total Common Stocks
(identified cost $95,117,084) $89,810,984
- -----------------------------------------------------------------
Total Investments -- 97.4%
(identified cost $95,117,084) $89,810,984
- -----------------------------------------------------------------
Other Assets, Less Liabilities -- 2.6% $ 2,418,268
- -----------------------------------------------------------------
Net Assets -- 100.0% $92,229,252
- -----------------------------------------------------------------
</Table>
ADR - American Depositary Receipt
(1) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS
17
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO AS OF APRIL 30, 2003
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
COUNTRY CONCENTRATION OF PORTFOLIO
<Table>
<Caption>
PERCENTAGE
COUNTRY OF NET ASSETS VALUE
- --------------------------------------------------------------------
Australia 1.9% $ 1,731,496
Belgium 1.0 917,575
Canada 3.8 3,503,113
Denmark 1.0 939,611
Finland 3.5 3,240,409
France 6.3 5,815,832
Germany 3.9 3,620,636
Hong Kong 1.7 1,592,418
India 0.1 77,000
Ireland 2.7 2,468,591
Israel 0.4 318,400
Italy 4.7 4,347,537
Japan 19.7 18,204,915
Luxembourg 0.1 124,479
Netherlands 6.2 5,724,003
Portugal 1.0 923,490
Singapore 0.6 564,316
South Africa 0.2 143,203
Spain 3.0 2,726,761
Sweden 2.1 1,963,906
Switzerland 7.6 7,002,617
Taiwan 0.7 627,750
United Kingdom 25.2 23,232,926
- --------------------------------------------------------------------
TOTAL COMMON STOCKS 97.4% $89,810,984
- --------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
18
<Page>
TAX-MANAGED INTERNATIONAL GROWTH 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,
$95,117,084) $89,810,984
Cash 354,828
Foreign currency, at value (identified
cost, $66,092) 66,446
Receivable for investments sold 4,749,073
Dividends receivable 391,773
Prepaid expenses 192
Tax reclaim receivable 155,912
- -----------------------------------------------------
TOTAL ASSETS $95,529,208
- -----------------------------------------------------
Liabilities
- -----------------------------------------------------
Payable for investments purchased $ 3,273,878
Payable to affiliate for Trustees' fees 581
Accrued expenses 25,497
- -----------------------------------------------------
TOTAL LIABILITIES $ 3,299,956
- -----------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $92,229,252
- -----------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------
Net proceeds from capital contributions
and withdrawals $97,481,977
Net unrealized depreciation (computed on
the basis of identified cost) (5,252,725)
- -----------------------------------------------------
TOTAL $92,229,252
- -----------------------------------------------------
</Table>
STATEMENT OF OPERATIONS
<Table>
<Caption>
FOR THE SIX MONTHS ENDED
APRIL 30, 2003
Investment Income
- ------------------------------------------------------
Dividends (net of foreign taxes,
$159,655) $ 1,168,640
Interest 34,467
- ------------------------------------------------------
TOTAL INVESTMENT INCOME $ 1,203,107
- ------------------------------------------------------
Expenses
- ------------------------------------------------------
Investment adviser fee $ 467,407
Trustees' fees and expenses 3,271
Custodian fee 82,347
Legal and accounting services 13,656
Miscellaneous 248
- ------------------------------------------------------
TOTAL EXPENSES $ 566,929
- ------------------------------------------------------
NET INVESTMENT INCOME $ 636,178
- ------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $(39,515,396)
Foreign currency transactions (14,417)
- ------------------------------------------------------
NET REALIZED LOSS $(39,529,813)
- ------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 37,478,408
Foreign currency 26,654
- ------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 37,505,062
- ------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (2,024,751)
- ------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (1,388,573)
- ------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
19
<Page>
TAX-MANAGED INTERNATIONAL GROWTH 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 YEAR ENDED
IN NET ASSETS (UNAUDITED) OCTOBER 31, 2002
- ----------------------------------------------------------------------------
From operations --
Net investment income (loss) $ 636,178 $ (11,212)
Net realized loss (39,529,813) (50,659,462)
Net change in unrealized
appreciation (depreciation) 37,505,062 16,097,067
- ----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS
FROM OPERATIONS $ (1,388,573) $ (34,573,607)
- ----------------------------------------------------------------------------
Capital transactions --
Contributions $ 73,145,183 $ 138,941,754
Withdrawals (75,446,965) (147,966,444)
- ----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $ (2,301,782) $ (9,024,690)
- ----------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (3,690,355) $ (43,598,297)
- ----------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------
At beginning of period $ 95,919,607 $ 139,517,904
- ----------------------------------------------------------------------------
AT END OF PERIOD $ 92,229,252 $ 95,919,607
- ----------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
20
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO AS OF APRIL 30, 2003
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<Table>
<Caption>
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 -----------------------
(UNAUDITED) 2002 2001(1)
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 1.22%(2) 1.20% 1.23%(2)
Net investment income
(loss) 1.36%(2) (0.01)% (0.59)%(2)
Portfolio Turnover 68% 128% 31%
- -----------------------------------------------------------------------------
TOTAL RETURN(3) (1.68)% (27.07)% --
- -----------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $92,229 $95,920 $139,518
- -----------------------------------------------------------------------------
</Table>
(1) For the period from the start of business July 23, 2001, to October 31,
2001.
(2) Annualized.
(3) Total return is required to be disclosed for fiscal years beginning
after December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS
21
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO AS OF APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Tax-Managed International Growth 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 June 22, 1998, seeks to
achieve long-term after-tax returns by investing in a diversified portfolio
of foreign equity securities. The Declaration of Trust permits the Trustees
to issue interests in the Portfolio. At April 30, 2003, the Eaton Vance
Tax-Managed International Growth Fund and the Eaton Vance Tax-Managed Equity
Asset Allocation Fund held 74.0% and 25.8% interests in the Portfolio,
respectively. 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. Over-the-counter options are normally valued
at the mean between the latest bid and asked price. 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 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.
E Forward Foreign Currency Exchange Contracts -- The Portfolio 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 Portfolio will enter into
forward contracts for hedging purposes as well as non-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.
F Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to 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.
22
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO AS OF APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
G 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.
H Other -- Investment transactions are accounted for on a trade date basis.
I 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.
BMR receives a monthly advisory fee in the amount of 1.00% annually of the
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 $467,407. 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 $60,032,020 and $62,320,388, respectively, for the six months
ended April 30, 2003.
4 Federal Income Tax Basis of Investments
- -------------------------------------------
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 $ 95,117,084
------------------------------------------------------
Gross unrealized appreciation $ 6,050,445
Gross unrealized depreciation (11,356,545)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (5,306,100)
------------------------------------------------------
</Table>
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 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 during the six
months ended April 30, 2003.
23
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO AS OF APRIL 30, 2003
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
7 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
Portfolio, 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 located 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.
24
<Page>
INVESTMENT MANAGEMENT
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH 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 Schiff
Vice President
Toni Y Shimura
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 INTERNATIONAL GROWTH PORTFOLIO
Officers
Duncan W. Richardson
President
Kiersten Christensen
Vice President and
Portfolio Manager
Kristin S. Anagnost
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
25
<Page>
INVESTMENT ADVISER OF TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO
Boston Management and Research
The Eaton Vance Building
255 State Street
Boston, MA02109
ADMINISTRATOR OF EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH 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, MA02109
(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 INTERNATIONAL GROWTH 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.
038-6/03 IGSRC
<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