<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04015
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Eaton Vance Mutual Funds Trust
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(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Name and Address of Agent for Services)
(617) 482-8260
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(Registrant's Telephone Number)
October 31
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Date of Fiscal Year End
October 31, 2003
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Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
[EV LOGO]
[PHOTO IMAGE]
ANNUAL REPORT OCTOBER 31, 2003
[PHOTO IMAGE]
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND
[PHOTO IMAGE]
<Page>
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.
IMPORTANT NOTICE
REGARDING DELIVERY OF
SHAREHOLDER DOCUMENTS
The Securities and Exchange Commission permits funds to deliver only one copy of
shareholder documents, including prospectuses, proxy statements and shareholder
reports, to fund investors with multiple accounts at the same residential or
post office box address. This practice is often called "householding" and it
helps eliminate duplicate mailings to shareholders.
EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR
DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL
ADVISER, OTHERWISE.
If you would prefer that your Eaton Vance documents not be householded, please
contact Eaton Vance at 1-800-262-1122, or contact your financial adviser.
Your instructions that householding not apply to delivery of your Eaton Vance
documents will be effective within 30 days of receipt by Eaton Vance or your
financial adviser.
From time to time, funds are required to vote proxies related to the securities
held by the funds. The Eaton Vance Funds or their underlying Portfolios vote
proxies according to a set of policies and procedures approved by the Funds' and
Portfolios' Boards. You may obtain a description of these policies and
procedures without charge, upon request, by calling 1-800-262-1122. This
description is also available on the Securities and Exchange Commission's
website at http://www.sec.gov.
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND as of October 31, 2003
LETTER TO SHAREHOLDERS
[PHOTO OF THOMAS E. FAUST JR.]
Thomas E. Faust Jr.
President
Eaton Vance Tax-Managed International Growth Fund, Class A shares, had a total
return of 16.51% for the year ended October 31, 2003. That return was the result
of an increase in net asset value per share (NAV) from $5.33 on October 31,
2002, to $6.21 on October 31, 2003.(1)
Class B shares had a total return of 15.67% for the same period, the result of
an increase in NAV from $5.17 to $5.98.(1) Class C shares had a total return of
15.70% for the same period, the result of an increase in NAV from $5.16 to
$5.97.(1) Class D shares had a total return of 15.72%, the result of an increase
in NAV from $5.66 to $6.55.(1) Additional information about the Fund's
performance (including after-tax performance) appears on page 6.
By comparison, the Morgan Stanley Capital International Europe, Australasia, and
Far East Index (EAFE) - a broad-based, unmanaged market index of international
stocks - had a total return of 27.04% for the year ended October 31, 2003.(2)
A CLOSER LOOK AT THE JOBS AND GROWTH TAX RELIEF RECONCILIATION ACT OF 2003...
In May of this year, Congress passed legislation that included several
provisions that affect individual investors. The most important aspects of the
Jobs and Growth Tax Relief Reconciliation Act of 2003 for individuals are a
lowering of tax rates for ordinary income and long-term capital gains and a
change in the tax treatment of qualifying dividend income, which is now taxed at
the same rates as long-term capital gains, rather than as ordinary income.
The biggest change for equity investors is that qualifying dividend income is
now taxed at much lower rates than other investment income and short-term gains
(maximum rate of 15% vs. 35%). The spread between short-term and long-term
capital gains tax rates has also increased. These changes increase the
importance of achieving a mix of returns that emphasizes long-term gains and
qualifying dividends over less favorably taxed short-term gains and
non-qualifying dividends and other investment income. Deferring taxes on
long-term gains continues to be of significant value, particularly for investors
with longer time horizons and for assets earmarked for inheritance.
WITH TODAY'S LOWER TAX RATES, IT IS STILL IMPORTANT FOR INVESTORS TO CONSIDER
TAX EFFECTS...
Taxes continue to be the single largest cost borne by long-term equity
investors. Strategies to minimize tax effects can add substantial value to
taxable accounts without sacrificing performance or adding to portfolio risk.
Just as before, it makes sense for taxpayers to invest in funds that share their
objective of after-tax returns.
Sincerely,
/s/ Thomas E. Faust Jr.
Thomas E. Faust Jr.
President
December 5, 2003
TEN LARGEST HOLDINGS(3)
<Table>
BP PLC 2.5%
HSBC Holdings PLC 2.4
Vodafone Group PLC 2.2
Total Fina Elf SA 2.0
GlaxoSmithKline PLC 2.0
Novartis AG 1.7
Nestle SA 1.6
Royal Bank of Scotland Group PLC 1.4
Royal Dutch Petroleum Co. 1.4
Nokia Oyj 1.3
</Table>
(1) These returns do not include the 5.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC)
for Class B, Class C, and Class D shares. Returns are historical and are
calculated by determining the percentage change in net asset value with all
distributions reinvested.
(2) It is not possible to invest directly in an Index.
(3) Ten largest holdings accounted for 18.5% 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
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EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND as of October 31, 2003
MANAGEMENT DISCUSSION
AN INTERVIEW WITH KIERSTEN H. CHRISTENSEN, PORTFOLIO MANAGER OF TAX-MANAGED
INTERNATIONAL GROWTH PORTFOLIO
[PHOTO OF KIERSTEN H. CHRISTENSEN]
Kiersten H. Christensen, CFA
Portfolio Manager
Q:KIERSTEN, CAN YOU GIVE US AN OVERVIEW OF HOW YOU POSITIONED THE PORTFOLIO
DURING THE YEAR ENDED OCTOBER 31, 2003?
A:During the 2003 fiscal year, we worked to position the Portfolio to be more
neutral on a stock, sector, and country basis. We reduced the number of
high beta (risk) and small-cap positions, in favor of what we believed to be
quality franchises with strong management. We lessened the Portfolio's
overweighted positions in information technology and telecom infrastructure
stocks, in favor of banking, consumer staples (household products,
beverages, and food), building materials, and commodity-producing
(metals/industrial) stocks. While lower-quality, high-beta names
outperformed the broader market through October 31, 2003, we believe the
Portfolio is now better positioned to pursue its objective of long-term,
after-tax returns. The Fund's total return of 16.51% (for Class A shares at
NAV) trailed the 27.04% return for the benchmark EAFE Index, primarily due
to the strong performance of these lower-quality, high-beta stocks.* Our
research team focused on stocks that we believe have solid fundamentals and
are reasonably priced in relation to their fundamental value. We believe
this is the right strategy for future outperformance of the EAFE Index.*
Q:WHAT WAS THE INVESTMENT BACKGROUND FOR THE PORTFOLIO DURING THE PERIOD?
A:In the late winter of 2003, European markets mirrored those in the U.S., as
concerns about the Iraq war and its effect on the global economies took
their toll. The worries regarding oil prices, rising fuel costs, and a
falling dollar brought consumer confidence globally as low as it's been
since the early 1990s, with markets such as Germany experiencing their
worst first quarter performance in 30 years. In Asia, markets were weaker
than in Europe, as fears about the war and a weak U.S. dollar were
compounded by the havoc wreaked by the SARS virus.
By the spring, however, most international markets had begun a recovery.
Japan lagged other markets by a month or so, improving in May with some
positive corporate earnings results. Overall, however, the rapid sector
rotations and rallies throughout the spring made for high volatility and
surprising
* It is not possible to invest directly in an Index.
[CHART]
GLOBAL WEIGHTINGS+
By total net assets
<Table>
Europe 42.8%
United Kingdom 24.0%
Japan 23.7%
Other Asia 3.6%
Other 2.8%
</Table>
[CHART]
FIVE LARGEST SECTOR POSITIONS+
By total net assets
<Table>
Banking 17.6%
Drugs 7.5%
Telecommunications 6.9%
Oil & Gas - Equipment and
Services 4.6%
Energy Sources 3.9%
</Table>
+ Global Weightings and Sector Positions are subject to change due to active
management.
3
<Page>
short-term sector and stock performances. By October 31, 2003, currency
concerns - strengthening yen, strong Euro, and weak U.S. dollar - were often
offset by strong economic data on a global basis. Short-term volatility
remained high but, overall, almost all markets finished October with strong
year-to-date performances. Gross domestic product continued rising, as did
corporate profits.
Q:KIERSTEN, WOULD YOU TELL US YOUR VIEWS ON THE IMPORTANCE OF STOCK SELECTION?
A:Picking the right stock can mean everything to performance. For example, in a
sporadic, start-and-stop recovery such as we have seen globally in 2003, it
was not uncommon for many of the best performing stocks to be found among
lower-priced, lower-quality issues. Quite often, many of the stocks
enjoying the strongest rebounds are the same stocks that suffered the
sharpest losses during the markets' declines. That has been very much the
case this year. Not owning some of the stocks that led the recovery limited
our participation in the market's advance, as measured by the EAFE Index.*
Q:WHAT KIND OF RISK MANAGEMENT TECHNIQUES DID YOU UTILIZE?
A:Although we can never completely eliminate investment risk, we believe our
risk management measures are effective, and we continually monitor the
Fund's performance. We also continually analyze the Portfolio's composition
versus the EAFE Index in terms of sector, industry, country allocations,
and stock weightings. We run monthly attribution reports, which allow an
unbiased look at the movement and changes in the Portfolio's positioning
versus that of the EAFE Index.* More recently, as we said earlier, the
Portfolio's composition has moved closer to EAFE, reducing what we feel are
unnecessary sector, stock, and country risks.*
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 FOR AN EATON VANCE FUND ARE BASED ON MANY
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF
OF ANY EATON VANCE FUND.
* It is not possible to invest directly in an Index.
4
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND as of October 31, 2003
PERFORMANCE
[CHART]
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND- CLASS A
Inception: 4/22/98
<Table>
<Caption>
FUND FUND
VALUE AT VALUE WITH EAFE
DATE NAV SALES CHARGE INDEX
4/30/1998 10,000 9425 10,000
5/31/1998 9,990 9415.15 9,951
6/30/1998 9,949 9376.8 10,027
7/31/1998 10,102 9520.62 10,128
8/31/1998 8,861 8350.91 8,874
9/30/1998 8,433 7948.23 8,602
10/31/1998 8,993 8475.55 9,498
11/30/1998 9,552 9002.88 9,985
12/31/1998 9,766 9204.22 10,379
1/31/1999 9,512 8964.53 10,348
2/28/1999 9,359 8820.71 10,101
3/31/1999 9,908 9338.45 10,523
4/30/1999 10,234 9645.26 10,950
5/31/1999 9,939 9367.21 10,386
6/30/1999 10,661 10047.94 10,791
7/31/1999 11,200 10556.09 11,111
8/31/1999 11,587 10920.42 11,152
9/30/1999 11,811 11131.35 11,264
10/31/1999 12,370 11658.68 11,686
11/30/1999 13,143 12387.35 12,092
12/31/1999 14,185 13368.64 13,177
1/31/2000 13,776 12983.1 12,340
2/29/2000 14,174 13359 12,672
3/31/2000 14,880 14024.06 13,163
4/30/2000 13,990 13185.51 12,471
5/31/2000 13,520 12742.14 12,166
6/30/2000 14,031 13224.06 12,642
7/31/2000 13,244 12481.9 12,112
8/31/2000 13,602 12819.24 12,217
9/30/2000 12,896 12154.19 11,622
10/31/2000 12,344 11633.71 11,348
11/30/2000 11,219 10573.47 10,922
12/31/2000 11,544 10879.75 11,310
1/31/2001 12,455 11738.94 11,305
2/28/2001 10,622 10010.92 10,457
3/31/2001 9,383 8842.82 9,760
4/30/2001 10,438 9837.15 10,438
5/31/2001 10,069 9489.62 10,070
6/30/2001 9,505 8958.66 9,658
7/31/2001 8,788 8282.9 9,482
8/31/2001 7,908 7452.68 9,242
9/30/2001 6,586 6207.35 8,306
10/31/2001 7,529 7095.49 8,519
11/30/2001 7,928 7471.99 8,833
12/31/2001 7,928 7471.99 8,885
1/31/2002 7,406 6979.65 8,413
2/28/2002 7,273 6854.15 8,472
3/31/2002 7,672 7230.64 8,930
4/30/2002 7,488 7056.88 8,989
5/31/2002 7,365 6941.03 9,103
6/30/2002 6,740 6352.15 8,741
7/31/2002 5,972 5628.12 7,878
8/31/2002 5,900 5560.55 7,860
9/30/2002 4,855 4575.87 7,016
10/31/2002 5,460 5145.44 7,393
11/30/2002 5,787 5454.36 7,729
12/31/2002 5,480 5164.75 7,469
1/31/2003 5,193 4894.44 7,157
2/28/2003 5,091 4797.9 6,993
3/31/2003 4,968 4682.06 6,855
4/30/2003 5,347 5039.25 7,527
5/31/2003 5,603 5280.59 7,983
6/30/2003 5,705 5377.13 8,176
7/31/2003 5,777 5444.7 8,374
8/31/2003 5,900 5560.55 8,576
9/30/2003 6,033 5686.05 8,841
10/31/2003 6,361 5994.97 9,392
</Table>
[CHART]
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND- CLASS B
Inception: 4/22/98
<Table>
<Caption>
FUND FUND
VALUE AT VALUE WITH EAFE
DATE NAV SALES CHARGE INDEX
4/30/1998 10,000 10,000 10,000
5/31/1998 9,980 9,980 9,951
6/30/1998 9,929 9,929 10,027
7/31/1998 10,081 10,081 10,128
8/31/1998 8,840 8,840 8,874
9/30/1998 8,403 8,403 8,602
10/31/1998 8,962 8,962 9,498
11/30/1998 9,512 9,512 9,985
12/31/1998 9,725 9,725 10,379
1/31/1999 9,461 9,461 10,348
2/28/1999 9,298 9,298 10,101
3/31/1999 9,837 9,837 10,523
4/30/1999 10,153 10,153 10,950
5/31/1999 9,868 9,868 10,386
6/30/1999 10,570 10,570 10,791
7/31/1999 11,109 11,109 11,111
8/31/1999 11,475 11,475 11,152
9/30/1999 11,689 11,689 11,264
10/31/1999 12,238 12,238 11,686
11/30/1999 12,991 12,991 12,092
12/31/1999 14,005 14,005 13,177
1/31/2000 13,598 13,598 12,340
2/29/2000 13,975 13,975 12,672
3/31/2000 14,668 14,668 13,163
4/30/2000 13,771 13,771 12,471
5/31/2000 13,302 13,302 12,166
6/30/2000 13,802 13,802 12,642
7/31/2000 13,017 13,017 12,112
8/31/2000 13,363 13,363 12,217
9/30/2000 12,660 12,660 11,622
10/31/2000 12,109 12,109 11,348
11/30/2000 11,009 11,009 10,922
12/31/2000 11,314 11,314 11,310
1/31/2001 12,201 12,201 11,305
2/28/2001 10,397 10,397 10,457
3/31/2001 9,174 9,174 9,760
4/30/2001 10,203 10,203 10,438
5/31/2001 9,836 9,836 10,070
6/30/2001 9,286 9,286 9,658
7/31/2001 8,572 8,572 9,482
8/31/2001 7,706 7,706 9,242
9/30/2001 6,422 6,422 8,306
10/31/2001 7,329 7,329 8,519
11/30/2001 7,716 7,716 8,833
12/31/2001 7,706 7,706 8,885
1/31/2002 7,196 7,196 8,413
2/28/2002 7,054 7,054 8,472
3/31/2002 7,441 7,441 8,930
4/30/2002 7,268 7,268 8,989
5/31/2002 7,135 7,135 9,103
6/30/2002 6,524 6,524 8,741
7/31/2002 5,790 5,790 7,878
8/31/2002 5,708 5,708 7,860
9/30/2002 4,699 4,699 7,016
10/31/2002 5,270 5,270 7,393
11/30/2002 5,586 5,586 7,729
12/31/2002 5,290 5,290 7,469
1/31/2003 5,005 5,005 7,157
2/28/2003 4,903 4,903 6,993
3/31/2003 4,781 4,781 6,855
4/30/2003 5,137 5,137 7,527
5/31/2003 5,392 5,392 7,983
6/30/2003 5,484 5,484 8,176
7/31/2003 5,545 5,545 8,374
8/31/2003 5,657 5,657 8,576
9/30/2003 5,790 5,790 8,841
10/31/2003 6,096 6,096 9,392
Less 1% 61
10/31/2003 6,035
</Table>
[CHART]
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND- CLASS C
Inception: 4/22/98
<Table>
<Caption>
FUND FUND
VALUE AT VALUE WITH EAFE
DATE NAV SALES CHARGE INDEX
4/30/1998 10,000 N/A 10,000
5/31/1998 9,969 9,951
6/30/1998 9,929 10,027
7/31/1998 10,071 10,128
8/31/1998 8,830 8,874
9/30/1998 8,393 8,602
10/31/1998 8,952 9,498
11/30/1998 9,502 9,985
12/31/1998 9,705 10,379
1/31/1999 9,440 10,348
2/28/1999 9,288 10,101
3/31/1999 9,817 10,523
4/30/1999 10,132 10,950
5/31/1999 9,837 10,386
6/30/1999 10,539 10,791
7/31/1999 11,078 11,111
8/31/1999 11,434 11,152
9/30/1999 11,648 11,264
10/31/1999 12,208 11,686
11/30/1999 12,950 12,092
12/31/1999 13,964 13,177
1/31/2000 13,557 12,340
2/29/2000 13,934 12,672
3/31/2000 14,616 13,163
4/30/2000 13,740 12,471
5/31/2000 13,261 12,166
6/30/2000 13,760 12,642
7/31/2000 12,976 12,112
8/31/2000 13,323 12,217
9/30/2000 12,620 11,622
10/31/2000 12,080 11,348
11/30/2000 10,970 10,922
12/31/2000 11,275 11,310
1/31/2001 12,161 11,305
2/28/2001 10,369 10,457
3/31/2001 9,157 9,760
4/30/2001 10,175 10,438
5/31/2001 9,809 10,070
6/30/2001 9,259 9,658
7/31/2001 8,556 9,482
8/31/2001 7,690 9,242
9/30/2001 6,407 8,306
10/31/2001 7,313 8,519
11/30/2001 7,700 8,833
12/31/2001 7,690 8,885
1/31/2002 7,181 8,413
2/28/2002 7,038 8,472
3/31/2002 7,425 8,930
4/30/2002 7,252 8,989
5/31/2002 7,120 9,103
6/30/2002 6,508 8,741
7/31/2002 5,775 7,878
8/31/2002 5,694 7,860
9/30/2002 4,685 7,016
10/31/2002 5,256 7,393
11/30/2002 5,571 7,729
12/31/2002 5,276 7,469
1/31/2003 4,991 7,157
2/28/2003 4,899 6,993
3/31/2003 4,767 6,855
4/30/2003 5,133 7,527
5/31/2003 5,378 7,983
6/30/2003 5,470 8,176
7/31/2003 5,541 8,374
8/31/2003 5,643 8,576
9/30/2003 5,785 8,841
10/31/2003 6,081 9,392
</Table>
<Table>
<Caption>
PERFORMANCE+ CLASS A CLASS B CLASS C CLASS D
- ----------------------------------------------------------------------------------------
Average Annual Total Returns (at
net asset value)
One Year 16.51% 15.67% 15.70 15.72%
Five Years -6.69 -7.42 -7.44 N/A
Life of Fund+ -8.14 -8.85 -8.89 -14.86
SEC Average Annual Total Returns (including
sales charge or applicable CDSC)
One Year 9.72% 10.67% 14.70% 10.72%
Five Years -7.79 -7.79 -7.44 N/A
Life of Fund+ -9.12 -9.01 -8.89 -16.17
</Table>
+Inception Dates - Class A: 4/22/98; Class B: 4/22/98; Class C: 4/22/98;
Class D: 3/15/01
* Source: Thomson Financial. Investment operations commenced 4/22/98. Index
information is available only at month-end; therefore, the line comparison
begins at the next month-end following the commencement of the Fund's
investment operations.
The chart compares the total return of the Fund's Class A, Class B, and Class
C shares with that of the Morgan Stanley Capital International Europe,
Australasia, and Far East Index (EAFE), a broad-based, unmanaged market index
of international stocks. Returns are calculated by determining the percentage
change in net asset value (NAV) with all distributions reinvested. The Index's
returns use net dividends which reflect the deduction of withholding taxes.
The lines on the chart represent the total returns of $10,000 hypothetical
investments in the Fund's Class A, Class B, and Class C shares and the EAFE
Index. An investment in the Fund's Class D shares on 3/15/01 at net asset
value would have had a value of $6,550 on October 31, 2003; $6,288 less the
applicable sales charge. The graph and performance table do not reflect the
deduction of taxes that a shareholder would pay on Fund distributions or the
redemption of Fund shares. The Index's total returns do not reflect any
commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. It is
not possible to invest directly in an Index.
+ 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. Class A shares purchased on or after
February 1, 2003 and redeemed within 3 months of purchase, including
exchanges, are subject to a 1% redemption fee, which is not reflected in this
return.
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.
5
<Page>
AFTER-TAX PERFORMANCE
AS OF OCTOBER 31, 2003
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 returns.
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIOD ENDED OCTOBER 31, 2003)
RETURNS AT NET ASSET VALUE (NAV) (CLASS A)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 16.51% -6.69% -8.14%
Return After Taxes on Distributions 16.68% -6.64% -8.10%
Return After Taxes on Distributions
and Sale of Fund Shares 10.89% -5.48% -6.63%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS A)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 9.72% -7.79% -9.12%
Return After Taxes on Distributions 9.88% -7.74% -9.08%
Return After Taxes on Distributions
and Sale of Fund Shares 6.47% -6.37% -7.40%
</Table>
RETURNS AT NET ASSET VALUE (NAV) (CLASS B)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 15.67% -7.42% -8.85%
Return After Taxes on Distributions 15.84% -7.38% -8.81%
Return After Taxes on Distributions
and Sale of Fund Shares 10.35% -6.10% -7.21%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS B)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 10.67% -7.79% -9.01%
Return After Taxes on Distributions 10.84% -7.75% -8.97%
Return After Taxes on Distributions
and Sale of Fund Shares 7.10% -6.39% -7.34%
</Table>
RETURNS AT NET ASSET VALUE (NAV) (CLASS C)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 15.70% -7.44% -8.89%
Return After Taxes on Distributions 15.87% -7.40% -8.84%
Return After Taxes on Distributions
and Sale of Fund Shares 10.37% -6.12% -7.24%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS C)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 14.70% -7.44% -8.89%
Return After Taxes on Distributions 14.87% -7.40% -8.84%
Return After Taxes on Distributions
and Sale of Fund Shares 9.72% -6.12% -7.24%
</Table>
RETURNS AT NET ASSET VALUE (NAV) (CLASS D)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 15.72% N/A -14.86%
Return After Taxes on Distributions 15.89% N/A -14.78%
Return After Taxes on Distributions
and Sale of Fund Shares 10.37% N/A -12.29%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS D)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 10.72% N/A -16.17%
Return After Taxes on Distributions 10.89% N/A -16.09%
Return After Taxes on Distributions
and Sale of Fund Shares 7.12% N/A -13.35%
</Table>
Class A, Class B, and Class 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 Asset Value (NAV) do
not.
After-tax returns are calculated using the highest historical individual federal
income tax rate and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on a shareholder's tax situation and may differ from
those shown. After-tax returns are not relevant for shareholders who hold shares
in tax-deferred accounts or to shares held by non-taxable entities. Return After
Taxes on Distributions for a period may be the same as the 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.
6
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND as of October 31, 2003
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 2003
<Table>
ASSETS
Investment in Tax-Managed International Growth Portfolio,
at value (identified cost, $61,769,085) $ 71,066,607
Receivable for Fund shares sold 158,018
- --------------------------------------------------------------------------------
TOTAL ASSETS $ 71,224,625
- --------------------------------------------------------------------------------
LIABILITIES
Payable for Fund shares redeemed $ 208,611
Payable to affiliate for distribution and service fees 14,679
Payable to affiliate for Trustees' fees 148
Accrued expenses 77,978
- --------------------------------------------------------------------------------
TOTAL LIABILITIES $ 301,416
- --------------------------------------------------------------------------------
NET ASSETS $ 70,923,209
- --------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Paid-in capital $ 187,348,694
Accumulated net realized loss from Portfolio
(computed on the basis of identified cost) (125,723,007)
Net unrealized appreciation from Portfolio
(computed on the basis of identified cost) 9,297,522
- --------------------------------------------------------------------------------
TOTAL $ 70,923,209
- --------------------------------------------------------------------------------
CLASS A SHARES
NET ASSETS $ 23,857,309
SHARES OUTSTANDING 3,842,461
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 6.21
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $6.21) $ 6.59
- --------------------------------------------------------------------------------
CLASS B SHARES
NET ASSETS $ 27,764,080
SHARES OUTSTANDING 4,641,665
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares
of beneficial interest outstanding) $ 5.98
- --------------------------------------------------------------------------------
CLASS C SHARES
NET ASSETS $ 18,616,240
SHARES OUTSTANDING 3,115,695
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial
interest outstanding) $ 5.97
- --------------------------------------------------------------------------------
CLASS D SHARES
NET ASSETS $ 685,580
SHARES OUTSTANDING 104,684
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial
interest outstanding) $ 6.55
- --------------------------------------------------------------------------------
</Table>
On sales of $50,000 or more, the offering price of Class A shares is reduced.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
OCTOBER 31, 2003
<Table>
INVESTMENT INCOME
Dividends allocated from Portfolio (net of
foreign taxes, $223,364) $ 1,675,951
Interest allocated from Portfolio 37,666
Expenses allocated from Portfolio (882,527)
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 831,090
- --------------------------------------------------------------------------------
EXPENSES
Trustees' fees and expenses $ 1,627
Distribution and service fees
Class A 63,236
Class B 268,692
Class C 191,949
Class D 4,933
Transfer and dividend disbursing agent fees 280,776
Registration fees 58,930
Printing and postage 50,221
Custodian fee 17,936
Legal and accounting services 14,856
Amortization of organization expenses 7,162
Miscellaneous 10,045
- --------------------------------------------------------------------------------
TOTAL EXPENSES $ 970,363
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS $ (139,273)
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIO
Net realized gain (loss) --
Investment transactions (identified cost basis) $ (39,626,719)
Foreign currency transactions 43,631
- --------------------------------------------------------------------------------
NET REALIZED LOSS $ (39,583,088)
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 50,316,622
Foreign currency (12,799)
- --------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 50,303,823
- --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 10,720,735
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 10,581,462
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
7
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
INCREASE (DECREASE) YEAR ENDED YEAR ENDED
IN NET ASSETS OCTOBER 31, 2003 OCTOBER 31, 2002
- ------------------------------------------------------------------------------------------
From operations --
Net investment loss $ (139,273) $ (1,299,361)
Net realized loss (39,583,088) (49,839,018)
Net change in unrealized
appreciation (depreciation) 50,303,823 17,848,554
- ------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 10,581,462 $ (33,289,825)
- ------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 72,583,055 $ 99,660,027
Class B 1,533,614 6,656,199
Class C 11,237,809 12,829,702
Class D 299,401 627,992
Cost of shares redeemed
Class A (80,606,936) (111,874,505)
Class B (7,195,072) (15,018,001)
Class C (17,280,893) (18,860,399)
Class D (156,562) (275,546)
- ------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS $ (19,585,584) $ (26,254,531)
- ------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (9,004,122) $ (59,544,356)
- ------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 79,927,331 $ 139,471,687
- ------------------------------------------------------------------------------------------
AT END OF YEAR $ 70,923,209 $ 79,927,331
- ------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
8
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS A
----------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
2003(1) 2002(1) 2001(1) 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 5.330 $ 7.350 $ 12.070 $ 12.160 $ 8.840
- ------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income (loss) $ 0.015 $ (0.044) $ (0.045) $ 0.025 $ 0.016
Net realized and unrealized gain (loss) 0.865 (1.976) (4.656) (0.045) 3.304
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.880 $ (2.020) $ (4.701) $ (0.020) $ 3.320
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ -- $ -- $ (0.019) $ (0.070) $ --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ -- $ -- $ (0.019) $ (0.070) $ --
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 6.210 $ 5.330 $ 7.350 $ 12.070 $ 12.160
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 16.51% (27.48)% (39.01)% (0.21)% 37.56%
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $ 23,857 $ 27,929 $ 51,419 $ 84,136 $ 27,833
Ratios (As a percentage of average
daily net assets):
Expenses(3) 2.09% 1.82% 1.70% 1.62% 1.73%
Net investment income (loss) 0.28% (0.64)% (0.46)% 0.19% 0.15%
Portfolio Turnover of the Portfolio 100% 128% 31%(4) -- --
Portfolio Turnover of the Fund(5) -- -- 90% 40% 60%
</Table>
(1) Net investment income (loss) per share was computed using average shares
outstanding.
(2) 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.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
(4) For the period from the Portfolio's start of business, July 23, 2001 to
October 31, 2001.
(5) 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>
<Table>
<Caption>
CLASS B
----------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
2003(1) 2002(1) 2001(1) 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 5.170 $ 7.190 $ 11.880 $ 12.030 $ 8.810
- ------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss $ (0.024) $ (0.092) $ (0.115) $ (0.073) $ (0.055)
Net realized and unrealized gain (loss) 0.834 (1.928) (4.575) (0.051) 3.275
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.810 $ (2.020) $ (4.690) $ (0.124) $ 3.220
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ -- $ -- $ -- $ (0.026) $ --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ -- $ -- $ -- $ (0.026) $ --
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 5.980 $ 5.170 $ 7.190 $ 11.880 $ 12.030
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 15.67% (28.10)% (39.48)% (1.05)% 36.55%
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $ 27,764 $ 29,610 $ 50,444 $ 79,099 $ 26,498
Ratios (As a percentage of average
daily net assets):
Expenses(3) 2.84% 2.57% 2.45% 2.38% 2.53%
Net investment loss (0.46)% (1.38)% (1.21)% (0.56)% (0.53)%
Portfolio Turnover of the Portfolio 100% 128% 31%(4) -- --
Portfolio Turnover of the Fund(5) -- -- 90% 40% 60%
</Table>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) 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.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
(4) For the period from the Portfolio's start of business, July 23, 2001 to
October 31, 2001.
(5) 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.
10
<Page>
<Table>
<Caption>
CLASS C
----------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
2003(1) 2002(1) 2001(1) 2000(1) 1999(1)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 5.160 $ 7.180 $ 11.860 $ 12.000 $ 8.800
- ------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss $ (0.023) $ (0.091) $ (0.113) $ (0.077) $ (0.080)
Net realized and unrealized gain (loss) 0.833 (1.929) (4.567) (0.047) 3.280
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.810 $ (2.020) $ (4.680) $ (0.124) $ 3.200
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ -- $ -- $ -- $ (0.016) $ --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ -- $ -- $ -- $ (0.016) $ --
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 5.970 $ 5.160 $ 7.180 $ 11.860 $ 12.000
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 15.70% (28.13)% (39.46)% (1.05)% 36.36%
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $ 18,616 $ 21,919 $ 37,263 $ 54,635 $ 14,470
Ratios (As a percentage of average
daily net assets):
Expenses(3) 2.84% 2.57% 2.45% 2.40% 2.71%
Net investment loss (0.44)% (1.38)% (1.20)% (0.59)% (0.78)%
Portfolio Turnover of the Portfolio 100% 128% 31%(4) -- --
Portfolio Turnover of the Fund(5) -- -- 90% 40% 60%
</Table>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) 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.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
(4) For the period from the Portfolio's start of business, July 23, 2001 to
October 31, 2001.
(5) 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.
11
<Page>
<Table>
<Caption>
CLASS D
------------------------------------
YEAR ENDED OCTOBER 31,
------------------------------------
2003(1) 2002(1) 2001(1)(2)
- ------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 5.660 $ 7.870 $ 10.000
- ------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss $ (0.029) $ (0.088) $ (0.077)
Net realized and unrealized gain (loss) 0.919 (2.122) (2.053)
- ------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.890 $ (2.210) $ (2.130)
- ------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 6.550 $ 5.660 $ 7.870
- ------------------------------------------------------------------------------------
TOTAL RETURN(3) 15.72% (28.08)% (21.30)%
- ------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $ 686 $ 468 $ 346
Ratios (As a percentage of average
daily net assets):
Expenses(4) 2.84% 2.57% 2.45%(5)
Net investment loss (0.49)% (1.24)% (1.42)%(5)
Portfolio Turnover of the Portfolio 100% 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.
12
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND as of October 31, 2003
NOTES TO FINANCIAL STATEMENTS
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 (65.5% at October 31, 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, 2003, the Fund, for
federal income tax purposes, had a capital loss carryover of $124,379,209
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), October 31, 2010 ($49,131,487) and October 31, 2011
($39,935,051). For the year ended October 31, 2003, income from foreign
sources was $1,899,315 and the Fund designated a foreign tax credit of
$223,364.
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 OTHER -- Investment transactions are accounted for on a trade-date basis.
F USE OF ESTIMATES -- The preparation of the financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expense during
the reporting period. Actual results could differ from those estimates.
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
13
<Page>
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 and relate
primarily to net operating losses.
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>
YEAR ENDED OCTOBER 31,
------------------------------
CLASS A 2003 2002
-----------------------------------------------------
Sales 13,702,246 14,737,260
Redemptions (15,103,533) (16,488,577)
-----------------------------------------------------
NET DECREASE (1,401,287) (1,751,317)
-----------------------------------------------------
<Caption>
YEAR ENDED OCTOBER 31,
------------------------------
CLASS B 2003 2002
-----------------------------------------------------
Sales 287,814 1,022,020
Redemptions (1,370,646) (2,310,314)
-----------------------------------------------------
NET DECREASE (1,082,832) (1,288,294)
-----------------------------------------------------
<Caption>
YEAR ENDED OCTOBER 31,
------------------------------
CLASS C 2003 2002
-----------------------------------------------------
Sales 2,158,414 1,990,378
Redemptions (3,286,561) (2,935,398)
-----------------------------------------------------
NET DECREASE (1,128,147) (945,020)
-----------------------------------------------------
<Caption>
YEAR ENDED OCTOBER 31,
------------------------------
CLASS D 2003 2002
-----------------------------------------------------
Sales 48,645 80,313
Redemptions (26,642) (41,602)
-----------------------------------------------------
NET INCREASE 22,003 38,711
-----------------------------------------------------
</Table>
Class A shares purchased on or after February 1, 2003 are subject to a 1%
redemption fee if redeemed or exchanged within three months of the
settlement of the purchase. For the period February 1, 2003 to October 31,
2003, the Fund did not receive any redemption fees on Class A shares.
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 $7,621 as
its portion of the sales charge on sales of Class A shares for the year
ended October 31, 2003.
EVM serves as the sub-transfer agent of the Fund and receives from the
transfer agent an aggregate fee based upon the actual expenses incurred by
EVM in the performance of those services. For the year ended October 31,
2003, EVM earned $24,380 in sub-transfer agent fees.
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 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
14
<Page>
amounts theretofore paid to EVD by each respective class. The Fund paid or
accrued $201,519, $143,962 and $3,700 for Class B, Class C and Class D
shares, respectively, to or payable to EVD for the year ended October 31,
2003, representing 0.75% of the average daily net assets for Class B, Class
C and Class D shares, respectively. At October 31, 2003, the amount of
Uncovered Distribution Charges of EVD calculated under the Plans was
approximately $3,636,000, $5,770,000 and $40,000 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 year ended October 31, 2003 amounted to
$63,236, $67,173, $47,987, and $1,233 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
$103,000, $10,000 and $1,000 of CDSC paid by shareholders for Class B, Class
C and Class D shares, respectively, for the year ended October 31, 2003.
7 INVESTMENT TRANSACTIONS
Increases and decreases in the Fund's investment in the Portfolio aggregated
$85,589,504 and $106,583,651, respectively, for the year ended October 31,
2003.
8 SHAREHOLDER MEETING (UNAUDITED)
The Fund held a Special Meeting of Shareholders on June 6, 2003 to elect
Trustees. The results of the vote were as follows:
<Table>
<Caption>
NUMBER OF SHARES
----------------------------
NOMINEE FOR TRUSTEE AFFIRMATIVE WITHHOLD
-----------------------------------------------------
Jessica M. Bibliowicz 9,777,349 123,363
Donald R. Dwight 9,771,396 129,316
James B. Hawkes 9,771,586 129,125
Samuel L. Hayes, III 9,772,051 128,660
William H. Park 9,775,791 124,921
Norton H. Reamer 9,771,167 129,545
Lynn A. Stout 9,773,657 127,055
</Table>
Each nominee was also elected a Trustee of the Portfolio. Donald R. Dwight
retired as a Trustee effective July 1, 2003 pursuant to the mandatory
retirement policy of the Trust.
15
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND as of October 31, 2003
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES OF EATON VANCE MUTUAL FUNDS TRUST AND THE SHAREHOLDERS OF EATON
VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND:
We have audited the accompanying statement of assets and liabilities of Eaton
Vance Tax-Managed International Growth Fund (the Fund) (one of the series of
Eaton Vance Mutual Funds Trust) as of October 31, 2003, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Eaton
Vance Tax-Managed International Growth Fund as of October 31, 2003, the results
of its operations, the changes in its net assets and its financial highlights
for the respective stated periods in conformity with accounting principles
generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 16, 2003
16
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO as of October 31, 2003
PORTFOLIO OF INVESTMENTS
COMMON STOCKS -- 96.7%
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------
ADVERTISING -- 0.2%
WPP Group PLC 20,000 $ 190,567
$ 190,567
AEROSPACE AND DEFENSE -- 0.3%
Singapore Technologies Engineering, Ltd. 200,000 $ 221,718
Thales SA 2,000 57,660
- --------------------------------------------------------------------------------
$ 279,378
- --------------------------------------------------------------------------------
AIRLINES -- 0.2%
Ryanair Holdings PLC(1) 25,000 $ 212,156
- --------------------------------------------------------------------------------
$ 212,156
- --------------------------------------------------------------------------------
APPAREL -- 0.6%
Burberry Group PLC 80,000 $ 534,879
Hennes & Mauritz AB 4,600 97,592
- --------------------------------------------------------------------------------
$ 632,471
- --------------------------------------------------------------------------------
APPLICATIONS SOFTWARE -- 0.4%
Oracle Corp. Japan 7,500 $ 440,033
- --------------------------------------------------------------------------------
$ 440,033
- --------------------------------------------------------------------------------
AUTO AND PARTS -- 0.2%
Compagnie Generale des Etablissements Michelin 2,800 $ 109,856
Denso Corp. 6,000 113,795
- --------------------------------------------------------------------------------
$ 223,651
- --------------------------------------------------------------------------------
AUTOMOBILES -- 2.2%
DaimlerChrysler AG 10,000 $ 373,046
Honda Motor Co., Ltd. 12,000 473,734
Nissan Motor Co., Ltd. 40,000 448,265
Toyota Motor Co. 35,000 996,498
Volkswagen AG 2,000 100,882
- --------------------------------------------------------------------------------
$ 2,392,425
- --------------------------------------------------------------------------------
BANKING -- 17.6%
ABN Amro Holdings 35,000 $ 734,409
Allied Irish Banks PLC 40,789 596,509
Banco Bilbao Vizcaya Argentaria SA 51,000 585,168
Banco Comercial Portugues SA 110,000 212,272
Banco Espirito Santo SA 7,000 $ 100,417
Banco Santander Central Hispano SA 60,000 575,437
Bank of Ireland 40,000 492,900
Barclays PLC 145,000 1,222,907
BNP Paribas SA 15,000 788,175
Commonwealth Bank of Australia 20,900 407,814
Credit Agricole SA 5,000 106,194
Danske Bank A/S 14,000 282,428
DBS Group Holdings, Ltd. 80,000 657,112
Deutsche Bank AG 8,000 527,682
HBOS PLC 60,000 697,956
HSBC Holdings PLC 171,780 2,579,793
Lloyds TSB Group PLC 120,000 833,372
Mitsubishi Tokyo Financial Group, Inc. 170 1,221,631
Mizuho Financial Group, Inc.(1) 35 85,642
National Australia Bank Ltd. 20,000 434,103
Royal Bank of Scotland Group PLC 55,000 1,473,716
Sanpaolo IMI SPA 24,000 270,072
Societe Generale 4,400 326,848
Sumitomo Mitsui Financial Group, Inc. 120 603,629
Sumitomo Trust and Banking Co., Ltd. (The) 140,000 781,917
Svenska Handelsbanken AB 51,000 898,940
UBS AG 18,000 1,105,328
UFJ Holdings, Inc.(1) 20 85,505
UniCredito Italiano SPA 79,900 393,827
- --------------------------------------------------------------------------------
$ 19,081,703
- --------------------------------------------------------------------------------
BEVERAGES -- 1.5%
Diageo PLC 75,000 $ 881,990
Heineken NV 7,000 249,821
Interbrew 5,000 117,064
SABMiller PLC 25,000 211,164
Scottish & Newcastle PLC 20,000 117,344
- --------------------------------------------------------------------------------
$ 1,577,383
- --------------------------------------------------------------------------------
BROADCASTING AND CABLE -- 0.5%
Antena 3 Television SA(1) 264 $ 8,619
British Sky Broadcasting Group PLC(1) 50,000 543,024
- --------------------------------------------------------------------------------
$ 551,643
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
17
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------
BROADCASTING AND PUBLISHING -- 0.4%
Gruppo Editoriale L'Espresso SPA 90,000 $ 482,321
- --------------------------------------------------------------------------------
$ 482,321
- --------------------------------------------------------------------------------
BUILDING MATERIALS -- 1.1%
Compagnie de Saint-Gobain 5,000 $ 210,936
CRH PLC 15,000 269,758
Lafarge SA 3,200 229,152
Sumitomo Osaka Cement Co., Ltd. 80,000 147,724
Taiheiyo Cement Corp. 135,000 334,016
- --------------------------------------------------------------------------------
$ 1,191,586
- --------------------------------------------------------------------------------
BUSINESS AND PUBLIC SERVICES -- 0.4%
Sap AG 3,200 $ 465,558
- --------------------------------------------------------------------------------
$ 465,558
- --------------------------------------------------------------------------------
BUSINESS SERVICES - MISCELLANEOUS -- 0.6%
Adecco SA 2,000 $ 117,947
Capita Group PLC 28,800 120,836
Group 4 Falck A/S 4,800 107,717
Mitsubishi Corp. 12,000 124,546
PHS Group PLC 132,000 190,207
- --------------------------------------------------------------------------------
$ 661,253
- --------------------------------------------------------------------------------
CHEMICALS -- 2.0%
Asahi Kasei Corp. 39,000 $ 185,892
BASF AG 11,000 504,595
Bayer AG 10,000 240,289
JSR Corp. 24,000 508,664
L'Air Liquide SA 1,800 266,794
Shin-Etsu Chemical Co., Ltd. 12,000 446,446
- --------------------------------------------------------------------------------
$ 2,152,680
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE & Services -- 1.1%
Itochu Techno-Science Corp. 8,000 $ 268,522
Maconomy A/S(1) 273,000 482,426
Softbank Corp. 5,000 256,970
TietoEnator Oyj 6,000 159,030
- --------------------------------------------------------------------------------
$ 1,166,948
- --------------------------------------------------------------------------------
COMPUTERS AND BUSINESS EQUIPMENT -- 0.5%
NEC Corp. 65,000 $ 574,112
- --------------------------------------------------------------------------------
$ 574,112
- --------------------------------------------------------------------------------
CONSUMER ELECTRONICS -- 3.4%
Philips Electronics NV 25,000 $ 673,959
Pioneer Corp. 16,000 398,781
Samsung Electronics Co., Ltd. 570 226,362
Sharp Corp. 40,000 629,827
Sony Corp. 9,000 313,549
Toshiba Corp. 86,000 344,986
Yamaha Corp. 52,000 1,047,710
- --------------------------------------------------------------------------------
$ 3,635,174
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS -- 0.3%
Kingfisher PLC 26,250 $ 125,839
Shimano Inc. 10,000 191,022
- --------------------------------------------------------------------------------
$ 316,861
- --------------------------------------------------------------------------------
DATA PROCESSING AND REPRODUCTION -- 1.1%
Canon, Inc. 25,000 $ 1,209,806
- --------------------------------------------------------------------------------
$ 1,209,806
- --------------------------------------------------------------------------------
DISTRIBUTION / WHOLESALE / RETAIL -- 0.3%
Celesio AG 1,200 $ 50,220
Esprit Holdings, Ltd. 100,000 314,202
- --------------------------------------------------------------------------------
$ 364,422
- --------------------------------------------------------------------------------
DIVERSIFIED OPERATIONS -- 0.1%
Keppel Corp., Ltd. 40,000 $ 136,707
- --------------------------------------------------------------------------------
$ 136,707
- --------------------------------------------------------------------------------
DRUGS -- 7.5%
Altana AG 1,900 $ 119,736
AstraZeneca PLC 28,000 1,315,204
Aventis SA 10,000 529,519
Biovail Corp.(1) 4,000 96,200
GlaxoSmithKline PLC 100,674 2,155,985
Novartis AG 48,000 1,829,633
Roche Holding AG 13,000 1,075,748
Schering AG 2,000 93,395
Takeda Chemical Industries, Ltd. 15,000 530,768
</Table>
See notes to financial statements.
18
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------
DRUGS (CONTINUED)
Teva Pharmaceutical Industries, Ltd. ADR 6,000 $ 341,340
- --------------------------------------------------------------------------------
$ 8,087,528
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 1.1%
CLP Holdings, Ltd. 24,000 $ 108,477
Enel SPA 14,000 87,559
Iberdrola SA 15,000 250,228
International Power PLC(1) 40,000 90,447
Scottish and Southern Energy PLC 45,000 468,485
Tokyo Electric Power Co., Inc. (The) 10,000 213,308
- --------------------------------------------------------------------------------
$ 1,218,504
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT -- 1.2%
Hitachi, Ltd. 50,000 $ 293,810
Mitsubishi Electric Corp. 24,000 107,191
Oki Electric Industry Co., Ltd.(1) 200,000 885,978
- --------------------------------------------------------------------------------
$ 1,286,979
- --------------------------------------------------------------------------------
ELECTRONIC COMPONENTS - MISCELLANEOUS -- 3.1%
Fanuc, Ltd. 8,000 $ 481,012
Matsushita Electric Industrial Co., Ltd. 40,000 527,221
Olympus Optical Co., Ltd. 30,000 657,661
Siemens AG 13,000 876,525
Venture Corp., Ltd. 36,000 390,821
Yokogawa Electric Corp. 41,000 479,238
- --------------------------------------------------------------------------------
$ 3,412,478
- --------------------------------------------------------------------------------
ENERGY SOURCES -- 3.9%
BP PLC 393,264 $ 2,729,459
Royal Dutch Petroleum Co. 33,000 1,464,297
- --------------------------------------------------------------------------------
$ 4,193,756
- --------------------------------------------------------------------------------
ENGINEERING AND CONSTRUCTION -- 0.4%
Vinci SA 5,500 $ 398,650
- --------------------------------------------------------------------------------
$ 398,650
- --------------------------------------------------------------------------------
ENTERTAINMENT -- 0.2%
Nintendo Co., Ltd. 2,300 $ 177,623
- --------------------------------------------------------------------------------
$ 177,623
- --------------------------------------------------------------------------------
ENTERTAINMENT / HOTELS -- 0.3%
Hilton Group PLC 110,000 $ 362,129
- --------------------------------------------------------------------------------
$ 362,129
- --------------------------------------------------------------------------------
FINANCIAL -- 0.6%
Hong Kong Exchanges and Clearing, Ltd. 250,000 $ 544,059
Singapore Exchange, Ltd. 103,000 98,211
- --------------------------------------------------------------------------------
$ 642,270
- --------------------------------------------------------------------------------
FINANCIAL SERVICES -- 3.8%
Credit Suisse Group 22,000 $ 775,153
Fortis 35,000 622,112
ING Groep NV 50,000 1,038,113
Man Group PLC 5,000 122,944
Muenchener Rueckversicherungs-Gesellschaft AG 1,300 155,039
Nomura Holdings, Inc. 79,200 1,360,164
- --------------------------------------------------------------------------------
$ 4,073,525
- --------------------------------------------------------------------------------
FOOD - RETAIL -- 0.8%
Carrefour SA 10,000 $ 524,985
Tesco PLC 90,000 360,814
- --------------------------------------------------------------------------------
$ 885,799
- --------------------------------------------------------------------------------
FOOD AND HOUSEHOLD PRODUCTS -- 2.0%
Nestle SA 8,000 $ 1,761,336
Parmalat Finanziaria SPA 120,000 373,860
- --------------------------------------------------------------------------------
$ 2,135,196
- --------------------------------------------------------------------------------
FOODS -- 0.6%
Cadbury Schweppes PLC 30,000 $ 192,307
Groupe Danone 3,000 452,678
- --------------------------------------------------------------------------------
$ 644,985
- --------------------------------------------------------------------------------
HOTELS -- 0.5%
Accor SA 2,600 $ 102,251
Compass Group PLC 65,000 374,750
InterContinental Hotels Group PLC(1) 12,712 115,354
- --------------------------------------------------------------------------------
$ 592,355
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES -- 0.1%
Nitori Co., Ltd. 1,500 $ 95,647
- --------------------------------------------------------------------------------
$ 95,647
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
19
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES / APPLIANCES -- 0.4%
Electrolux AB 20,000 $ 410,212
- --------------------------------------------------------------------------------
$ 410,212
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS -- 1.2%
Kao Corp. 12,000 $ 246,691
L'Oreal SA 5,200 384,462
LVMH Moet Hennessy Louis Vuitton SA 4,500 310,998
Reckitt Benckiser PLC 8,000 168,337
Shiseido Co., Ltd. 15,000 157,457
- --------------------------------------------------------------------------------
$ 1,267,945
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS / FOOD -- 0.6%
Unilever PLC 82,500 $ 703,492
- --------------------------------------------------------------------------------
$ 703,492
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATE -- 0.4%
Hutchison Whampoa, Ltd. 25,000 $ 193,962
Sonae, S.G.P.S., SA(1) 400,000 274,350
- --------------------------------------------------------------------------------
$ 468,312
- --------------------------------------------------------------------------------
INSURANCE -- 3.2%
Aegon NV 47,400 $ 621,556
Assicurazione Generali SPA 30,000 690,525
AXA Company 30,000 568,463
Prudential PLC 15,000 116,390
Swiss Reinsurance 15,000 944,135
Zurich Financial Services AG(1) 4,000 512,225
- --------------------------------------------------------------------------------
$ 3,453,294
- --------------------------------------------------------------------------------
INVESTMENT SERVICES -- 0.2%
Deutsche Boerse AG 4,000 $ 222,363
- --------------------------------------------------------------------------------
$ 222,363
- --------------------------------------------------------------------------------
MACHINERY -- 1.8%
Daikin Industries, Ltd. 40,000 $ 853,231
Komatsu, Ltd. 60,000 324,737
Mitsubishi Heavy Industries, Ltd. 75,000 206,031
Sandvik AB 3,700 110,039
Schneider Electric SA 4,200 245,834
SKF AB 6,500 229,975
- --------------------------------------------------------------------------------
$ 1,969,847
- --------------------------------------------------------------------------------
MACHINERY AND ENGINEERING -- 0.1%
Smiths Group PLC 9,000 $ 107,137
- --------------------------------------------------------------------------------
$ 107,137
- --------------------------------------------------------------------------------
MANUFACTURING - DIVERSIFIED -- 0.1%
Linde AG 2,500 $ 114,652
- --------------------------------------------------------------------------------
$ 114,652
- --------------------------------------------------------------------------------
MEDICAL PRODUCTS -- 0.6%
Fujisawa Pharmaceutical Co., Ltd. 5,000 $ 103,243
Smith & Nephew PLC 45,000 357,569
Terumo Corp. 12,000 228,135
- --------------------------------------------------------------------------------
$ 688,947
- --------------------------------------------------------------------------------
METALS - INDUSTRIAL -- 1.6%
Arcelor 6,000 $ 85,583
Assa Abloy AB 20,000 197,414
BHP Billiton, Ltd. 60,000 498,956
Nippon Steel Corp. 60,000 123,346
Rio Tinto PLC 5,000 121,247
Rio Tinto, Ltd. 30,000 758,864
- --------------------------------------------------------------------------------
$ 1,785,410
- --------------------------------------------------------------------------------
MULTIMEDIA -- 0.9%
News Corp., Ltd. 27,000 $ 240,431
Promotora de Informaciones SA (Prisa) 35,000 388,159
Vivendi Universal SA(1) 15,000 315,096
- --------------------------------------------------------------------------------
$ 943,686
- --------------------------------------------------------------------------------
OIL AND GAS - EQUIPMENT AND SERVICES -- 4.6%
Centrica PLC 70,000 $ 219,161
Eni SPA 45,000 714,589
Fortum Oyj 90,000 829,676
Shell Transport & Trading Co. PLC 142,200 888,007
Tokyo Gas Co., Ltd. 50,000 171,465
Total Fina Elf SA 14,000 2,175,968
- --------------------------------------------------------------------------------
$ 4,998,866
- --------------------------------------------------------------------------------
PAPER AND FOREST PRODUCTS -- 0.5%
Oji Paper Co., Ltd. 35,000 $ 186,246
Stora Enso Oyj 15,000 203,670
UPM-Kymmene Oyj 11,000 205,879
- --------------------------------------------------------------------------------
$ 595,795
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
20
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------
PHARMACIES - RETAIL -- 0.5%
Boots Group PLC 42,200 $ 510,230
- --------------------------------------------------------------------------------
$ 510,230
- --------------------------------------------------------------------------------
PHOTO EQUIPMENT AND SUPPLIES -- 0.5%
Fuji Photo Film Co., Ltd. 18,000 $ 530,495
- --------------------------------------------------------------------------------
$ 530,495
- --------------------------------------------------------------------------------
PUBLISHING -- 0.7%
Pearson PLC 40,000 $ 414,056
Reed Elsevier NV 9,000 100,231
Reed Elsevier PLC 30,000 233,161
- --------------------------------------------------------------------------------
$ 747,448
- --------------------------------------------------------------------------------
REAL ESTATE -- 1.0%
Cheung Kong Holdings, Ltd. 30,000 $ 250,138
Henderson Land Development Co., Ltd. 50,000 209,897
Mitsui Fudosan Co., Ltd. 45,000 418,747
Sun Hung Kai Properties, Ltd. 20,000 169,334
- --------------------------------------------------------------------------------
$ 1,048,116
- --------------------------------------------------------------------------------
RETAIL -- 2.1%
Don Quijote Co., Ltd. 9,000 $ 483,831
Inditex 5,000 103,288
Ito-Yokado Co., Ltd. 6,000 220,494
Marks & Spencer Group PLC 80,000 390,638
Metro AG 3,700 151,318
Pinault-Printemps-Redoute SA 1,200 122,272
Seven - Eleven Japan Co., Ltd. 13,000 411,516
The Daimaru, Inc. 60,000 353,664
- --------------------------------------------------------------------------------
$ 2,237,021
- --------------------------------------------------------------------------------
SEMICONDUCTOR COMPONENTS /
INTEGRATED CIRCUITS -- 1.0%
NEC Electronics Corp.(1) 5,000 $ 384,773
STMicroelectronics NV 20,000 532,425
Taiwan Semiconductor Manufacturing Co., Ltd.(1) 98,000 193,260
- --------------------------------------------------------------------------------
$ 1,110,458
- --------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT -- 0.1%
ASML Holding NV(1) 9,000 $ 156,205
- --------------------------------------------------------------------------------
$ 156,205
- --------------------------------------------------------------------------------
TELECOMMUNICATION EQUIPMENT -- 1.7%
Nokia Oyj $ 85,000 $ 1,443,651
Telefonaktiebolaget LM Ericsson(1) 220,000 377,908
- --------------------------------------------------------------------------------
$ 1,821,559
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 6.9%
Nippon Telegraph and Telephone Corp. 200 $ 893,255
NTT Docomo, Inc. 400 865,966
Portugal Telecom, SGPS, SA 50,000 420,244
TDC A/S 12,000 385,641
Telecom Italia Mobile SPA 180,000 830,723
Telecom Italia SPA(1) 273,972 715,016
Telefonica SA 78,000 970,223
Vodafone Group PLC 927,954 1,948,681
Vodafone Group PLC ADR 20,000 423,000
- --------------------------------------------------------------------------------
$ 7,452,749
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES -- 2.2%
Alcatel SA(1) 17,000 $ 224,304
BT Group PLC 90,000 283,306
Deutsche Telekom AG(1) 30,000 472,556
Elisa Oyj(1) 30,000 357,469
France Telecom SA(1) 13,000 314,642
Koninklijke (Royal) KPN NV(1) 44,000 334,521
Telenor ASA 45,000 244,978
TeliaSonera AB 40,000 175,305
- --------------------------------------------------------------------------------
$ 2,407,081
- --------------------------------------------------------------------------------
TOBACCO -- 0.3%
Altadis SA 8,000 $ 193,998
British American Tobacco PLC 14,500 175,316
- --------------------------------------------------------------------------------
$ 369,314
- --------------------------------------------------------------------------------
TRANSPORTATION -- 0.6%
East Japan Railway Co. 50 $ 226,497
MTR Corp., Ltd. 120,000 163,025
Nippon Express Co., Ltd. 28,000 126,329
Nippon Yusen Kabushiki Kaisha 38,000 161,768
- --------------------------------------------------------------------------------
$ 677,619
- --------------------------------------------------------------------------------
UTILITIES - ELECTRICAL AND GAS -- 1.5%
E. ON AG 10,340 $ 522,640
</Table>
See notes to financial statements.
21
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------
UTILITIES - ELECTRICAL AND GAS (CONTINUED)
Endesa SA 18,000 $ 285,626
National Grid Transco PLC 80,000 510,782
Scottish Power PLC 50,000 296,966
- --------------------------------------------------------------------------------
$ 1,616,014
- --------------------------------------------------------------------------------
WATER UTILITIES -- 0.3%
Severn Trent PLC 9,000 $ 108,130
Veolia Environnement 10,000 223,200
- --------------------------------------------------------------------------------
$ 331,330
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $90,386,374) $ 104,891,859
- --------------------------------------------------------------------------------
</Table>
PREFERRED STOCKS -- 0.2%
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------
MULTIMEDIA -- 0.2%
News Corp., Ltd. 30,000 $ 220,741
- --------------------------------------------------------------------------------
$ 220,741
- --------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $211,948) $ 220,741
- --------------------------------------------------------------------------------
</Table>
RIGHTS -- 0.0%
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------
BANKING -- 0.0%
Credit Agricole SA(1) 5,000 $ 1,162
- --------------------------------------------------------------------------------
$ 1,162
- --------------------------------------------------------------------------------
FINANCIAL SERVICES -- 0.0%
Muenchener Rueckversicherungs-Gesellschaft AG(1) 1,300 $ 10,745
- --------------------------------------------------------------------------------
$ 10,745
- --------------------------------------------------------------------------------
TOTAL RIGHTS
(IDENTIFIED COST $0) $ 11,907
- --------------------------------------------------------------------------------
</Table>
SHORT-TERM INVESTMENTS -- 2.8%
<Table>
<Caption>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
- --------------------------------------------------------------------------------
Investors Bank & Trust Company Time Deposit,
1.08%, 11/3/03 $ 3,007 $ 3,007,000
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(AT AMORTIZED COST, $3,007,000) $ 3,007,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.7%
(IDENTIFIED COST $93,605,322) $ 108,131,507
- --------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 0.3% $ 322,516
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 108,454,023
- --------------------------------------------------------------------------------
</Table>
ADR - American Depositary Receipt
(1) Non-income producing security.
See notes to financial statements.
22
<Page>
COUNTRY CONCENTRATION OF PORTFOLIO
<Table>
<Caption>
PERCENTAGE
COUNTRY OF NET ASSETS VALUE
- --------------------------------------------------------------------------------
Australia 2.4% $ 2,560,908
Belgium 0.7 739,176
Canada 0.1 96,200
Denmark 1.2 1,258,212
Finland 2.9 3,199,374
France 8.3 8,990,099
Germany 4.6 5,001,242
Hong Kong 1.8 1,953,095
Ireland 1.4 1,571,323
Israel 0.3 341,340
Italy 4.2 4,558,492
Japan 23.7 25,720,759
Luxembourg 0.1 85,583
Netherlands 4.9 5,373,112
Norway 0.2 244,978
Portugal 0.9 1,007,283
Republic of Korea 0.2 226,362
Singapore 1.4 1,504,569
Spain 3.1 3,360,746
Sweden 2.3 2,497,385
Switzerland 8.0 8,653,929
Taiwan 0.2 193,260
United Kingdom 24.0 25,987,080
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS, PREFERRED STOCKS AND RIGHTS 96.9 $ 105,124,507
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 2.8 $ 3,007,000
</Table>
See notes to financial statements.
23
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO as of October 31, 2003
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 2003
<Table>
ASSETS
Investments, at value (identified cost, $93,605,322) $ 108,131,507
Cash 88
Foreign currency, at value (identified cost, $24,938) 24,798
Receivable for investments sold 725,814
Interest and dividends receivable 108,253
Tax reclaim receivable 111,754
- --------------------------------------------------------------------------------
TOTAL ASSETS $ 109,102,214
- --------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased $ 611,830
Payable for Trustees' fees 675
Accrued expenses 35,686
- --------------------------------------------------------------------------------
TOTAL LIABILITIES $ 648,191
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO $ 108,454,023
- --------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital contributions and withdrawals $ 93,917,174
Net unrealized appreciation (computed on the basis
of identified cost) 14,536,849
- --------------------------------------------------------------------------------
TOTAL $ 108,454,023
- --------------------------------------------------------------------------------
</Table>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
OCTOBER 31, 2003
<Table>
INVESTMENT INCOME
Dividends (net of foreign taxes, $300,202) $ 2,262,066
Interest 49,975
- --------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 2,312,041
- --------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 970,995
Trustees' fees and expenses 6,770
Custodian fee 184,431
Legal and accounting services 27,967
Miscellaneous 5,024
- --------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,195,187
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,116,854
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost basis) $ (41,906,122)
Foreign currency transactions 61,857
- --------------------------------------------------------------------------------
NET REALIZED LOSS $ (41,844,265)
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 57,312,533
Foreign currency (17,897)
- --------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 57,294,636
- --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 15,450,371
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 16,567,225
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
24
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
INCREASE (DECREASE) YEAR ENDED YEAR ENDED
IN NET ASSETS OCTOBER 31, 2003 OCTOBER 31, 2002
- -------------------------------------------------------------------------------------
From operations --
Net investment income (loss) $ 1,116,854 $ (11,212)
Net realized loss (41,844,265) (50,659,462)
Net change in unrealized
appreciation (depreciation) 57,294,636 16,097,067
- -------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 16,567,225 $ (34,573,607)
- -------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 103,561,358 $ 138,941,754
Withdrawals (107,594,167) (147,966,444)
- -------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ (4,032,809) $ (9,024,690)
- -------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 12,534,416 $ (43,598,297)
- -------------------------------------------------------------------------------------
NET ASSETS
AT BEGINNING OF YEAR $ 95,919,607 $ 139,517,904
- -------------------------------------------------------------------------------------
AT END OF YEAR $ 108,454,023 $ 95,919,607
- -------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
25
<Page>
SUPPLEMENTARY DATA
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
-------------------------------------------
2003 2002 2001(1)
- -----------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 1.23% 1.20% 1.23%(2)
Net investment income (loss) 1.15% (0.01)% (0.59)%(2)
Portfolio Turnover 100% 128% 31%
- -----------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 17.52% (27.07)% --
- -----------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 108,454 $ 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.
26
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO as of October 31, 2003
NOTES TO FINANCIAL STATEMENTS
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 October 31, 2003, the Eaton
Vance Tax-Managed International Growth Fund and the Eaton Vance Tax-Managed
Equity Asset Allocation Fund held 65.5% and 34.3% 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 or are considered by the
investment adviser to not reflect current market conditions 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.
27
<Page>
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.
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 year
ended October 31, 2003, the advisory fee amounted to $970,995. 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 year ended October 31, 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 $92,528,139 and $96,899,320, respectively, for the year ended
October 31, 2003.
4 FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation (depreciation) in value of the
investments owned at October 31, 2003, as computed on a federal income tax
basis, were as follows:
<Table>
AGGREGATE COST $ 94,973,105
--------------------------------------------------
Gross unrealized appreciation $ 16,255,886
Gross unrealized depreciation (3,097,484)
--------------------------------------------------
NET UNREALIZED APPRECIATION $ 13,158,402
--------------------------------------------------
</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 October 31, 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 year ended October 31, 2003.
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
28
<Page>
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.
8 INTERESTHOLDER MEETING (UNAUDITED)
The Portfolio held a Special Meeting of Interestholders on June 6, 2003 to
elect Trustees. The results of the vote were as follows:
<Table>
<Caption>
INTEREST IN THE PORTFOLIO
---------------------------
NOMINEE FOR TRUSTEE AFFIRMATIVE WITHHOLD
------------------------------------------------------
Jessica M. Bibliowicz 99% 1%
Donald R. Dwight 99% 1%
James B. Hawkes 99% 1%
Samuel L. Hayes, III 99% 1%
William H. Park 99% 1%
Norton H. Reamer 99% 1%
Lynn A. Stout 99% 1%
</Table>
Results are rounded to the nearest whole number. Donald R. Dwight retired as
a Trustee effective July 1, 2003 pursuant to the mandatory retirement policy
of the Portfolio.
29
<Page>
TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO as of October 31, 2003
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS OF TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Tax-Managed International Growth Portfolio (the
Portfolio) as of October 31, 2003, and the related statement of operations for
the year then ended, the statements of changes in net assets for the two years
then ended and the supplementary data for the years ended October 31, 2003 and
2002, and for the period from the start of business, July 23, 2001, to October
31, 2001. These financial statements and supplementary data are the
responsibility of the Portfolio's management. Our responsibility is to express
an opinion on these financial statements and supplementary data based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and supplementary data are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities held as of October 31, 2003 by correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other
auditing procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and supplementary data referred to
above present fairly, in all material respects, the financial position of the
Tax-Managed International Growth Portfolio as of October 31, 2003, the results
of its operations for the year then ended, the changes in its net assets and the
supplementary data for the respective stated periods in conformity with
accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 16, 2003
30
<Page>
EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND
MANAGEMENT AND ORGANIZATION
FUND MANAGEMENT. The Trustees of Eaton Vance Mutual Funds Trust (the Trust) and
Tax-Managed International Growth Portfolio (the Portfolio) are responsible for
the overall management and supervision of the Trust's and Portfolio's affairs.
The Trustees and officers of the Trust and the Portfolio are listed below.
Except as indicated, each individual has held the office shown or other offices
in the same company for the last five years. Trustees and officers of the Trust
and the Portfolio hold indefinite terms of office. The "noninterested Trustees"
consist of those Trustees who are not "interested persons" of the Trust and the
Portfolio, as that term is defined under the 1940 Act. The business address of
each Trustee and officer is The Eaton Vance Building, 255 State Street, Boston,
Massachusetts 02109. As used below, "EVC" refers to Eaton Vance Corp., "EV"
refers to Eaton Vance, Inc., "EVM" refers to Eaton Vance Management, "BMR"
refers to Boston Management and Research and "EVD" refers to Eaton Vance
Distributors, Inc. EVC and EV are the corporate parent and trustee,
respectively, of EVM and BMR. EVD is the Fund's principal underwriter, the
Portfolio's placement agent and a wholly-owned subsidiary of EVM.
<Table>
<Caption>
POSITION(S) TERM OF NUMBER OF PORTFOLIOS
WITH THE OFFICE AND IN FUND COMPLEX OTHER
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH THE PORTFOLIO SERVICE DURING PAST FIVE YEARS TRUSTEE (1) HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE(S)
Jessica M. Bibliowicz Trustee Since 1998 Chairman, President and Chief 192 Director of
11/28/59 Executive Officer of National National
Financial Partners (financial Financial
services company) (since April Partners
1999). President and Chief
Operating Officer of John A.
Levin & Co. (registered
investment adviser) (July 1997
to April 1999) and a Director
of Baker, Fentress & Company,
which owns John A. Levin & Co.
(July 1997 to April 1999). Ms.
Bibliowicz is an interested
person because of her
affiliation with a brokerage
firm.
James B. Hawkes Trustee Trustee of Chairman, President and Chief 194 Director of EVC
11/9/41 the Trust Executive Officer of BMR, EVC,
since EVM and EV; Director of EV;
1991; of Vice President and Director of
the EVD. Trustee and/or officer of
Portfolio 194 registered investment
since 1998 companies in the Eaton Vance
Fund Complex. Mr. Hawkes is an
interested person because of
his positions with BMR, EVM,
EVC and EV, which are
affiliates of the Trust and
the Portfolio.
NONINTERESTED TRUSTEES(S)
Samuel L. Hayes, III Trustee Trustee of Jacob H. Schiff Professor of 194 Director of
2/23/35 the Trust Investment Banking Emeritus, Tiffany & Co.
since Harvard University Graduate School (specialty
1986; of of Business Administration. retailer) and
the Telect, Inc.
Portfolio (telecommunication
since 1998 services company)
William H. Park Trustee Since 2003 President and Chief Executive 191 None
9/19/47 Officer, Prizm Capital Management,
LLC (investment management firm)
(since 2002). Executive Vice
President and Chief Financial
Officer, United Asset Management
Corporation (a holding company
owning institutional investment
management firms) (1982-2001).
</Table>
31
<Page>
<Table>
<Caption>
POSITION(S) TERM OF NUMBER OF PORTFOLIOS
WITH THE OFFICE AND IN FUND COMPLEX OTHER
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH THE PORTFOLIO SERVICE DURING PAST FIVE YEARS TRUSTEE (1) HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE(S) (CONTINUED)
Ronald A. Pearlman Trustee Since 2003 Professor of Law, Georgetown 191 None
7/10/40 University Law Center (since 1999).
Tax Partner Covington & Burling,
Washington, DC (1991-2000).
Norton H. Reamer Trustee Trustee of President and Chief Executive 194 None
9/21/35 the Officer of Asset Management Finance
Trust Corp. (a specialty finance company
since serving the investment management
1986; of industry) (since October 2003).
the President, Unicorn Corporation (an
Portfolio investment and financial advisory
since 1998 services company) (since
September 2000). Formerly, Chairman,
Hellman, Jordan Management Co.,
Inc. (an investment management
company) (2000-2003). Formerly,
Advisory Director of Berkshire
Capital Corporation (investment
banking firm) (2002-2003).
Formerly, Chairman of the Board,
United Asset Management Corporation
(a holding company owning
institutional investment management
firms) and Chairman, President and
Director, UAM Funds (mutual funds)
(1980-2000).
Lynn A. Stout Trustee Since 1998 Professor of Law, University of 194 None
9/14/57 California at Los Angeles School of
Law (since July 2001). Formerly,
Professor of Law, Georgetown
University Law Center.
</Table>
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES
<Table>
<Caption>
POSITION(S) TERM OF
WITH THE OFFICE AND
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH THE PORTFOLIO SERVICE DURING PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas E. Faust Jr. President of the Trust Since 2002 Executive Vice President of EVM, BMR, EVC and EV; Chief
5/31/58 Investment Officer of EVM and BMR and Director of EVC. Chief
Executive Officer of Belair Capital Fund LLC, Belcrest Capital
Fund LLC, Belmar Capital Fund LLC, Belport Capital Fund LLC and
Belrose Capital Fund LLC (private investment companies sponsored
by EVM). Officer of 53 registered investment companies managed by
EVM or BMR.
William H. Ahern, Jr. Vice President of Since 1995 Vice President of EVM and BMR. Officer of 35 registered investment
7/28/59 the Trust companies managed by EVM or BMR.
Kiersten Christensen Vice President of Since 2002 Vice President of EVM and BMR since August 2000. Previously, a
10/21/65 the Portfolio portfolio manager and equity analyst at Lloyd George Investment
Management (Bermuda) Limited. Officer of 1 registered investment
company managed by EVM or BMR.
Thomas J. Fetter Vice President of Since 1997 Vice President of EVM and BMR. Trustee and President of The
8/20/43 the Trust Massachusetts Health & Education Tax-Exempt Trust. Officer of 127
registered investment companies managed by EVM or BMR.
Robert B. MacIntosh Vice President of Since 1998 Vice President of EVM and BMR. Officer of 127 registered investment
1/22/57 the Trust companies managed by EVM or BMR.
Michael R. Mach Vice President of Since 1999 Vice President of EVM and BMR. Previously, Managing Director and
7/15/47 the Trust Senior Analyst for Robertson Stephens (1998-1999). Officer of 25
registered investment companies managed by EVM or BMR.
</Table>
32
<Page>
<Table>
<Caption>
POSITION(S) TERM OF
WITH THE OFFICE AND
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH THE PORTFOLIO SERVICE DURING PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES (CONTINUED)
Duncan W. Richardson Vice President of the Vice President Senior Vice President and Chief Equity Investment Officer of EVM
10/26/57 Trust; President of of the Trust and BMR. Officer of 41 registered investment companies managed by
the Portfolio since 2001; EVM or BMR.
President of
the Portfolio
since 2002
Walter A. Row, III Vice President of the Since 2001 Director of Equity Research and a Vice President of EVM and BMR.
7/20/57 Trust Officer of 22 registered investment companies managed by EVM or BMR.
Judith A. Saryan Vice President of Since 2003 Vice President of EVM and BMR. Previously, Portfolio Manager and
8/21/54 the Trust Equity Analyst for State Street Global Advisers (1980-1999). Officer
of 24 registered investment companies managed by EVM or BMR.
Susan Schiff Vice President of Since 2002 Vice President of EVM and BMR. Officer of 26 registered investment
3/13/61 the Trust companies managed by EVM or BMR.
Alan R. Dynner Secretary Secretary of Vice President, Secretary and Chief Legal Officer of BMR, EVM, EVD,
10/10/40 the Trust since EV and EVC. Officer of 194 registered investment companies managed
1997; of the by EVM or BMR.
Portfolio since
1998
Kristin S. Anagnost Treasurer of the Since 2002(2) Assistant Vice President of EVM and BMR. Officer of 109 registered
6/12/65 Portfolio investment companies managed by EVM or BMR.
James L. O'Connor Treasurer of the Trust Since 1989 Vice President of BMR, EVM, and EVD. Officer of 115 registered
4/1/45 investment companies managed by EVM or BMR.
</Table>
(1) Includes both master and feeder funds in a master-feeder structure.
(2) Prior to 2002, Ms. Anagnost served as Assistant Treasurer of the Portfolio
since 1998.
The SAI for the Fund includes additional information about the Trustees and
officers of the Fund and the Portfolio and can be obtained without charge by
calling 1-800-225-6265.
33
<Page>
INVESTMENT ADVISER OF TAX-MANAGED INTERNATIONAL GROWTH PORTFOLIO
BOSTON MANAGEMENT AND RESEARCH
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
ADMINISTRATOR OF EATON VANCE TAX-MANAGED INTERNATIONAL GROWTH FUND
EATON VANCE MANAGEMENT
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
PRINCIPAL UNDERWRITER
EATON VANCE DISTRIBUTORS, INC.
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
(617) 482-8260
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 CLARENDON STREET
BOSTON, MA 02116
TRANSFER AGENT
PFPC INC.
ATTN: EATON VANCE FUNDS
P.O. BOX 9653
PROVIDENCE, RI 02940-9653
(800) 262-1122
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
200 BERKELEY STREET
BOSTON, MA 02116-5022
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.
<Page>
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics applicable to its Principal
Executive Officer, Principal Financial Officer and Principal Accounting Officer.
The registrant undertakes to provide a copy of such code of ethics to any person
upon request, without charge, by calling 1-800-262-1122.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The registrant's Board has designated William H. Park, Samuel L. Hayes, III and
Norton H. Reamer, each an independent trustee, as its audit committee financial
experts. Mr. Park is a certified public accountant who is the President and
Chief Executive Officer of Prizm Capital Management, LLC (a fixed income
investment management firm). Previously, he served as Executive Vice President
and Chief Financial Officer of United Asset Management Corporation ("UAM") (a
holding company
<Page>
owning institutional investment management firms). Mr. Hayes is the Jacob H.
Schiff Professor of Investment Banking Emeritus of the Harvard University
Graduate School of Business Administration. Mr. Reamer is the President of
Unicorn Capital (an investment and financial advisory services company),
Chairman of Hellman, Jordan Management Co., Inc. (an investment management
company) and Advisory Director of Berkshire Capital Corporation (an investment
banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and
Chairman, President and Director of the UAM Funds (mutual funds).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not Required in Filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not Required in Filing.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not required in this 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)(1) Registrant's Code of Ethics - Not applicable (please see Item 2).
(a)(2)(i) Treasurer's Section 302 certification.
(a)(2)(ii) President's Section 302 certification.
(b) Combined Section 906 certification.
<Page>
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(ON BEHALF OF EATON VANCE TAX-MANAGED
INTERNATIONAL GROWTH FUND)
By: /S/ Thomas E. Faust Jr.
-----------------------------
Thomas E. Faust Jr.
President
Date: December 16, 2003
-----------------
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: December 16, 2003
-----------------
By: /S/ Thomas E. Faust Jr.
-----------------------------
Thomas E. Faust Jr.
President
Date: December 16, 2003
-----------------