<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
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
[EV LOGO]
[PHOTO IMAGE]
ANNUAL REPORT OCTOBER 31, 2003
[PHOTO IMAGE]
EATON VANCE TAX-MANAGED EQUITY ASSET ALLOCATION 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 EQUITY ASSET ALLOCATION FUND AS OF OCTOBER 31, 2003
LETTER TO SHAREHOLDERS
[PHOTO OF THOMAS E. FAUST Jr.]
Thomas E. Faust Jr.
President
During the one-year period ended October 31, 2003, Eaton Vance Tax-Managed
Equity Asset Allocation Fund, Class A shares, had a total return of 21.25%.(1)
That return was the result of an increase in net asset value (NAV) per share
from $8.19 on October 31, 2002, to $9.93 on October 31, 2003. Class B shares had
a total return of 20.32% for the same period, the result of an increase in NAV
from $8.17 to $9.83.(1) Class C shares had a total return of 20.37% for the same
period, the result of an increase in NAV from $8.15 to $9.81.(1) Additional
information about the Fund's performance (including after-tax performance)
appears on page 6.
For comparison, the Fund's benchmark index, the Russell 3000 Index - a
broad-based, unmanaged index of 3000 U.S. stocks - had a return of 23.68% for
the period from October 31, 2002, to 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
Thomas E. Faust Jr.
President
December 19, 2003
(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 and Class C 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.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE
SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED.
2
<Page>
MANAGEMENT DISCUSSION
AN INTERVIEW WITH DUNCAN W. RICHARDSON,
SENIOR VICE PRESIDENT AND PORTFOLIO MANAGER OF
EATON VANCE TAX-MANAGED EQUITY ASSET ALLOCATION FUND
[PHOTO OF DUNCAN W. RICHARDSON]
Duncan W. Richardson
Portfolio Manager
Q: Duncan, this Fund is unique in its structure. Would you first walk us
through how the Fund is set up?
A: Certainly. The investment objective of Tax-Managed Equity Asset Allocation
Fund is to achieve long-term, after-tax returns for its shareholders by
investing in a combination of diversified tax-managed equity portfolios
managed by Eaton Vance or its affiliates. By investing in an array of
tax-managed equity portfolios, the Fund provides diversification across a
broad spectrum of equity market sectors and investment styles. As of October
31, 2003, the Fund invested in seven Eaton Vance Tax-Managed Portfolios,
which in turn invest in U.S. and international stocks, ranging from small- to
large-capitalization companies, incorporating both value and growth
investment styles. To meet taxable shareholders' investment goals, the Fund
utilizes a consistent tax-managed approach to seek long-term, after-tax
returns. A "Fund of Funds" structure that allows for tax-efficient
rebalancing between the seven asset classes is what makes Tax-Managed Equity
Asset Allocation Fund unique.
CURRENT TARGET ALLOCATIONS+ By total investments
<Table>
Tax-Managed Value Portfolio 20%
Tax-Managed Growth Portfolio 20%
Tax-Managed International Growth Portfolio 15%
Tax-Managed Mid-Cap Core Portfolio 12.5%
Tax-Managed Multi-Cap Opportunity Portfolio 12.5%
Tax-Managed Small-Cap Growth Portfolio 10%
Tax-Managed Small-Cap Value Portfolio 10%
</Table>
+ Allocations are as of October 31, 2003. Fund profile and allocations are
subject to change. You may obtain free copies of each of the Portfolios'
most recent financial statements by contacting Eaton Vance Distributors,
Inc. at 1-800-225-6265 or from the EDGAR database on the Securities and
Exchange Commission's website (www.sec.gov).
Q: How would you summarize the Fund's performance over the last year?
A: The Fund's Class A shares had a return of 21.25% (at net asset value) for the
year ended October 31, 2003, falling shy of its primary benchmark, the
Russell 3000 Index, which had a return of 23.68% for the period.* Because of
the Fund's unique structure, its performance is a function of both the
performance of the underlying Portfolios, and its asset allocation among the
Portfolios. For the one-year period in question, the Fund's allocation in the
seven Portfolios continued to emphasize mid-cap and small-cap holdings, and
value over growth holdings (versus the mutual fund asset universe as
classified by Morningstar, Inc.). We continued to have an international
exposure as well. All three of these strategies have been beneficial during
this period and aided the Fund's returns. Since October 31, 2002, value
stocks continued to outperform growth stocks (among the large-cap tier),
small-and mid-cap holdings outperformed their larger counterparts, and
international markets have outpaced domestic returns.
Q: On that topic, did you make any changes in the Fund's allocation among the
Portfolios?
A: We are continuously monitoring market trends and conditions, in an effort to
better capture investment opportunities. Beginning in May of 2003, management
gradually shifted 5% of the Fund's new inflows of cash from Tax-Managed Value
Portfolio and evenly distributed it between our Tax-Managed Mid-Cap Core and
Tax-Managed Multi-Cap Opportunity Portfolios, thus increasing the Portfolio's
overall mid-cap exposure to 25% and decreasing its large-cap value investment
to 20% of total investments.
We believe the current allocation provides the Fund with a well-diversified
portfolio of investments. We expect that any further asset allocation changes
would be implemented gradually.
* It is not possible to invest directly in an Index.
3
<Page>
Q: How do you manage and monitor investment risk?
A: Our risk levels are restricted by the Fund's prospectus, which sets
parameters that limit small-cap and foreign stock exposure. The prospectus
states that the Fund may invest up to 25% of total assets in Eaton Vance
Tax-Managed Portfolios that primarily invest in common stocks of small or
emerging companies, and up to 25% of total assets in Eaton Vance Tax-Managed
Portfolios that primarily invest in foreign securities. Our current weighting
in the small-cap universe is 20%, split between value and growth styles. For
the international style, our allocation is 15%. Further, our management and
research team frequently monitors the characteristics, performance, and risk
profile of each of the Portfolios in which the Fund invests. The risk
monitoring evaluates both absolute and benchmark risk.
Q: What is your outlook for the Fund going forward?
A: Because of the Fund's structure and diversity, the short-term outlook for the
Fund will depend on the outlook for the overall market. We do not believe
that the near-term direction of the market can be accurately forecasted. The
longer-term success of the Fund will be a function of the performance of the
underlying Portfolios and the allocation of Fund assets across the
Portfolios. One thing we do expect is further market volatility, which
potentially can work to the Fund's advantage. Because of the Fund's
multi-asset exposure, since its inception it has had a lower standard
deviation of returns (which is a measure of a security's volatility or
variability in expected returns) than that of the overall market (as
represented by the Russell 3000 Index).* We believe the Fund may help
investors cope with the volatility found in today's markets. We remain
cautiously optimistic about the market today, but we don't anticipate that
market returns will revert to the 15%-20% pace we saw in the late 1990s. We
believe that long-term participation in the market remains critical to wealth
creation. Diversification through asset allocation is another reliable way to
protect against excessive volatility. While expectations for equity market
returns should be modest, we believe that investors should participate in the
market and can benefit from participation in a diversified and tax-managed
structure such as the Fund offers.
In closing, I would like to thank my fellow shareholders for their continued
confidence and participation in the Eaton Vance Tax-Managed Equity Asset
Allocation Fund.
* It is not possible to invest directly in an Index.
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.
4
<Page>
PERFORMANCE
[CHART]
EATON VANCE TAX-MANAGED EQUITY ASSET ALLOCATION FUND- CLASS A
Inception: 3/4/02
<Table>
<Caption>
FUND FUND RUSSELL
VALUE AT VALUE WITH 3000
DATE NAV SALES CHARGE INDEX
---------------------------------------------------------
3/31/2002 10,000 9425 10,000
4/30/2002 9,798 9237.75 9,475
5/31/2002 9,654 9101.63 9,365
6/30/2002 9,009 8493.65 8,691
7/31/2002 8,094 7631.58 8,000
8/31/2002 8,162 7695.1 8,037
9/30/2002 7,411 6987.3 7,193
10/31/2002 7,883 7431.94 7,765
11/30/2002 8,287 7813.07 8,235
12/31/2002 7,902 7450.09 7,770
1/31/2003 7,642 7205.08 7,579
2/28/2003 7,478 7050.82 7,454
3/31/2003 7,526 7096.19 7,533
4/30/2003 8,046 7586.21 8,148
5/31/2003 8,537 8049 8,640
6/30/2003 8,681 8185.12 8,757
7/31/2003 8,903 8393.83 8,957
8/31/2003 9,172 8647.91 9,156
9/30/2003 9,028 8511.8 9,056
10/31/2003 9,557 9010.89 9,604
</Table>
[CHART]
EATON VANCE TAX-MANAGED EQUITY ASSET ALLOCATION FUND- CLASS B
Inception: 3/4/02
<Table>
<Caption>
FUND FUND RUSSELL
VALUE AT VALUE WITH 3000
DATE NAV SALES CHARGE INDEX
---------------------------------------------------------
3/31/2002 10,000 10,000 10,000
4/30/2002 9,788 9,788 9,475
5/31/2002 9,635 9,635 9,365
6/30/2002 8,990 8,990 8,691
7/31/2002 8,087 8,087 8,000
8/31/2002 8,144 8,144 8,037
9/30/2002 7,394 7,394 7,193
10/31/2002 7,856 7,856 7,765
11/30/2002 8,250 8,250 8,235
12/31/2002 7,856 7,856 7,770
1/31/2003 7,596 7,596 7,579
2/28/2003 7,433 7,433 7,454
3/31/2003 7,471 7,471 7,533
4/30/2003 7,981 7,981 8,148
5/31/2003 8,471 8,471 8,640
6/30/2003 8,606 8,606 8,757
7/31/2003 8,817 8,817 8,957
8/31/2003 9,077 9,077 9,156
9/30/2003 8,933 8,933 9,056
10/31/2003 9,452 9,452 9,604
Less 5% 473
10/31/2003 8,979
</Table>
[CHART]
EATON VANCE TAX-MANAGED EQUITY ASSET ALLOCATION FUND- CLASS C
Inception: 3/4/02
<Table>
<Caption>
FUND FUND RUSSELL
VALUE AT VALUE WITH 3000
DATE NAV SALES CHARGE INDEX
---------------------------------------------------------
3/31/2002 10,000 N/A 10,000
4/30/2002 9,788 9,475
5/31/2002 9,634 9,365
6/30/2002 8,989 8,691
7/31/2002 8,075 8,000
8/31/2002 8,133 8,037
9/30/2002 7,382 7,193
10/31/2002 7,844 7,765
11/30/2002 8,248 8,235
12/31/2002 7,854 7,770
1/31/2003 7,594 7,579
2/28/2003 7,421 7,454
3/31/2003 7,459 7,533
4/30/2003 7,979 8,148
5/31/2003 8,460 8,640
6/30/2003 8,595 8,757
7/31/2003 8,816 8,957
8/31/2003 9,076 9,156
9/30/2003 8,932 9,056
10/31/2003 9,442 9,604
</Table>
<Table>
<Caption>
PERFORMANCE** CLASS A CLASS B CLASS C
- -------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE)
One Year 21.25% 20.32% 20.37%
Life of Fund+ -0.42% -1.02% -1.14%
SEC AVERAGE ANNUAL TOTAL RETURNS (INCLUDING SALES
CHARGE OR APPLICABLE CDSC)
One Year 14.27% 15.32% 19.37%
Life of Fund+ -3.89% -4.02% -1.14%
</Table>
+ Inception Dates - Class A: 3/4/02; Class B: 3/4/02; Class C: 3/4/02
* Source: Thomson Financial, Investment operations commenced 3/4/02. 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 Fund's total return with that of the Russell 3000
Index, a broad-based, unmanaged market index of 3000 U.S. stocks. Returns
are calculated by determining the percentage change in net asset value
with all distributions reinvested. The lines on the chart represent the
total returns of a $10,000 hypothetical investment in the Fund and in the
Russell 3000 Index. 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 return
for Class A reflects the maximum 5.75% sales charge. SEC return for Class
B reflects 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
return for Class C reflects 1% CDSC.
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>
The tables below set forth the pre-tax and after-tax performance for the Fund.
After-tax performance reflects the impact of federal income taxes on Fund
distributions of dividends and capital gains, as well as capital gains taxes on
the sale of Fund shares, while pre-tax performance does not. Because the
objective of the Fund is to provide long-term, after-tax returns to
shareholders, it is important for investors to know the effect of taxes on the
Fund's return.
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE YEAR ENDED OCTOBER 31, 2003)
RETURNS AT NET ASSET VALUE (NAV) (CLASS A)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes 21.25% -0.42%
Return After Taxes on Distributions 21.25% -0.42%
Return After Taxes on Distributions
and Sale of Fund Shares 13.81% -0.36%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS A)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes 14.27% -3.89%
Return After Taxes on Distributions 14.27% -3.89%
Return After Taxes on Distributions
and Sale of Fund Shares 9.27% -3.30%
</Table>
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE YEAR ENDED OCTOBER 31, 2003)
RETURNS AT NET ASSET VALUE (NAV) (CLASS C)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes 20.37% -1.14%
Return After Taxes on Distributions 20.37% -1.14%
Return After Taxes on Distributions
and Sale of Fund Shares 13.24% -0.97%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS C)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes 19.37% -1.14%
Return After Taxes on Distributions 19.37% -1.14%
Return After Taxes on Distributions
and Sale of Fund Shares 12.59% -0.97%
</Table>
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE YEAR ENDED OCTOBER 31, 2003)
RETURNS AT NET ASSET VALUE (NAV) (CLASS B)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes 20.32% -1.02%
Return After Taxes on Distributions 20.32% -1.02%
Return After Taxes on Distributions
and Sale of Fund Shares 13.21% -0.87%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS B)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes 15.32% -4.02%
Return After Taxes on Distributions 15.32% -4.02%
Return After Taxes on Distributions
and Sale of Fund Shares 9.96% -3.41%
</Table>
Class A, Class B, and Class C commenced operations on 3/4/02. Returns at Public
Offering Price (POP) reflect the deduction of the maximum sales charge, while
Returns at Net Asset Value (NAV) do not.
After-tax returns are calculated using the highest historical individual federal
income tax rate and do not reflect the impact of state and local taxes. Actual
after-tax returns depend on a shareholder's tax situation and may differ from
those shown. After-tax returns are not relevant for shareholders who hold shares
in tax-deferred accounts or to shares held by non-taxable entities. Return After
Taxes on Distributions for a period may be the same as Return Before Taxes for
that period because no distributions were paid during that period. Also, Return
After Taxes on Distributions and Sale of Fund shares for a period may be greater
than Return After Taxes on Distributions for the same period because of realized
losses on the sale of Fund shares.
Past performance (both before and after taxes) is no guarantee of future
results. Investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Performance
is for the stated time period only; due to market volatility, the Fund's current
performance may be different.
6
<Page>
EATON VANCE TAX-MANAGED EQUITY ASSET ALLOCATION FUND AS OF OCTOBER 31, 2003
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 2003
<Table>
ASSETS
Investment in Tax-Managed Value Portfolio, at value
(identified cost, $42,762,131) $ 50,024,885
Investment in Tax-Managed Growth Portfolio, at value
(identified cost, $46,895,291) 49,168,776
Investment in Tax-Managed International Growth Portfolio, at value
(identified cost, $31,968,108) 37,176,846
Investment in Tax-Managed Small-Cap Value Portfolio, at value
(identified cost, $21,100,408) 24,517,293
Investment in Tax-Managed Multi-Cap Opportunity Portfolio, at value
(identified cost, $25,901,326) 30,325,776
Investment in Tax-Managed Mid-Cap Core Portfolio, at value
(identified cost, $26,243,494) 30,814,364
Investment in Tax-Managed Small-Cap Growth Portfolio, at value
(identified cost, $20,700,548) 24,609,272
Receivable for Fund shares sold 1,554,437
- --------------------------------------------------------------------------------
TOTAL ASSETS $ 248,191,649
- --------------------------------------------------------------------------------
LIABILITIES
Payable for Fund shares redeemed $ 288,805
Payable to affiliate for distribution and service fees 49,049
Payable to affiliate for Trustees' fees 535
Accrued expenses 91,963
- --------------------------------------------------------------------------------
TOTAL LIABILITIES $ 430,352
- --------------------------------------------------------------------------------
NET ASSETS $ 247,761,297
- --------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Paid-in capital $ 224,869,830
Accumulated net realized loss from Portfolios
(computed on the basis of identified cost) (8,474,131)
Accumulated net investment income 299,692
Net unrealized appreciation from Portfolios
(computed on the basis of identified cost) 31,065,906
- --------------------------------------------------------------------------------
TOTAL $ 247,761,297
- --------------------------------------------------------------------------------
CLASS A SHARES
NET ASSETS $ 82,867,879
SHARES OUTSTANDING 8,345,780
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest
outstanding) $ 9.93
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $9.93) $ 10.54
- --------------------------------------------------------------------------------
CLASS B SHARES
NET ASSETS $ 79,853,519
SHARES OUTSTANDING 8,126,167
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest
outstanding) $ 9.83
- --------------------------------------------------------------------------------
CLASS C SHARES
NET ASSETS $ 85,039,899
SHARES OUTSTANDING 8,669,312
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest
outstanding) $ 9.81
- --------------------------------------------------------------------------------
</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 Portfolios (net of foreign
taxes, $99,765) $ 2,289,063
Interest allocated from Portfolios 61,906
Expenses allocated from Portfolios (1,389,608)
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIOS $ 961,361
- --------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 154,765
Administration fee 253,076
Trustees' fees and expenses 3,067
Distribution and service fees
Class A 142,443
Class B 541,701
Class C 575,697
Transfer and dividend disbursing agent fees 176,039
Registration fees 72,088
Legal and accounting services 46,096
Printing and postage 27,129
Custodian fee 26,094
Miscellaneous 7,338
- --------------------------------------------------------------------------------
TOTAL EXPENSES $ 2,025,533
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS $ (1,064,172)
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIOS
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 1,842,215
Securities sold short (5,823)
Foreign currency transactions 18,182
- --------------------------------------------------------------------------------
NET REALIZED GAIN $ 1,854,574
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 34,946,654
Securities sold short (237,569)
Foreign currency (5,203)
- --------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 34,703,882
- --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 36,558,456
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 35,494,284
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
7
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
INCREASE (DECREASE) YEAR ENDED PERIOD ENDED
IN NET ASSETS OCTOBER 31, 2003 OCTOBER 31, 2002(1)
- -----------------------------------------------------------------------------
From operations --
Net investment loss $ (1,064,172) $ (294,354)
Net realized gain (loss) 1,854,574 (7,934,889)
Net change in unrealized
appreciation (depreciation) 34,703,882 (3,637,976)
- -----------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 35,494,284 $ (11,867,219)
- -----------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 51,682,323 $ 50,246,843
Class B 44,566,312 36,408,491
Class C 51,249,913 40,730,881
Cost of shares redeemed
Class A (19,345,458) (6,959,963)
Class B (7,214,369) (1,892,811)
Class C (10,204,143) (5,133,787)
- -----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS $ 110,734,578 $ 113,399,654
- -----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 146,228,862 $ 101,532,435
- -----------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 101,532,435 $ --
- -----------------------------------------------------------------------------
AT END OF YEAR $ 247,761,297 $ 101,532,435
- -----------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME
INCLUDED IN NET ASSETS
AT END OF YEAR $ 299,692 $ 59,266
- -----------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 4, 2002, to October 31,
2002.
See notes to financial statements.
8
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS A
-------------------------------------
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
- ----------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 8.190 $ 10.000
- ----------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
- ----------------------------------------------------------------------------------------------------------------
Net investment loss(2) $ (0.012) $ (0.024)
Net realized and unrealized gain (loss) 1.752 (1.786)
- ----------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.740 $ (1.810)
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.930 $ 8.190
- ----------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 21.25% (18.10)%
- ----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+
Net assets, end of year (000's omitted) $ 82,868 $ 38,528
Ratios (As a percentage of average daily net assets):
Net expenses(4) 1.52% 1.55%(5)
Net investment loss (0.14)% (0.43)%(5)
Portfolio Turnover of Tax-Managed Value Portfolio 76% 213%
Portfolio Turnover of Tax-Managed Growth Portfolio 19% 21%
Portfolio Turnover of Tax-Managed International Growth Portfolio 100% 128%
Portfolio Turnover of Tax-Managed Small-Cap Value Portfolio 21% 5%
Portfolio Turnover of Tax-Managed Multi-Cap Opportunity Portfolio 224% 225%
Portfolio Turnover of Tax-Managed Mid-Cap Core Portfolio 50% 13%
Portfolio Turnover of Tax-Managed Small-Cap Growth Portfolio 248% 131%
- ----------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund reflect an allocation of expenses
to the Administrator. Had such action not been taken, the ratios and
net investment loss per share would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(4) -- 1.77%(5)
Net investment loss -- (0.65)%(5)
Net investment loss per share(2) -- $ (0.036)
- ----------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 4, 2002, to October 31,
2002.
(2) Net investment loss per share was computed using average shares outstanding.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return is
not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolios' allocated expenses.
(5) Annualized.
See notes to financial statements.
9
<Page>
<Table>
<Caption>
CLASS B
-------------------------------------
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
- ----------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 8.170 $ 10.000
- ----------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss(2) $ (0.077) $ (0.065)
Net realized and unrealized gain (loss) 1.737 (1.765)
- ----------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.660 $ (1.830)
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.830 $ 8.170
- ----------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 20.32% (18.30)%
RATIOS/SUPPLEMENTAL DATA+
Net assets, end of year (000's omitted) $ 79,854 $ 31,101
Ratios (As a percentage of average daily net assets):
Net expenses(4) 2.27% 2.30%(5)
Net investment loss (0.88)% (1.17)%(5)
Portfolio Turnover of Tax-Managed Value Portfolio 76% 213%
Portfolio Turnover of Tax-Managed Growth Portfolio 19% 21%
Portfolio Turnover of Tax-Managed International Growth Portfolio 100% 128%
Portfolio Turnover of Tax-Managed Small-Cap Value Portfolio 21% 5%
Portfolio Turnover of Tax-Managed Multi-Cap Opportunity Portfolio 224% 225%
Portfolio Turnover of Tax-Managed Mid-Cap Core Portfolio 50% 13%
Portfolio Turnover of Tax-Managed Small-Cap Growth Portfolio 248% 131%
- ----------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund reflect an allocation of expenses to
the Administrator. Had such action not been taken, the ratios and net
investment loss per share would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(4) -- 2.52%(5)
Net investment loss -- (1.39)%(5)
Net investment loss per share(2) -- $ (0.077)
- ----------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 4, 2002, to October 31,
2002.
(2) Net investment loss per share was computed using average shares outstanding.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return is
not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolios' allocated expenses.
(5) Annualized.
See notes to financial statements.
10
<Page>
<Table>
<Caption>
CLASS C
-------------------------------------
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
- ----------------------------------------------------------------------------------------------------------------
Net asset value Beginning of year $ 8.150 $ 10.000
- ----------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss(2) $ (0.076) $ (0.065)
Net realized and unrealized gain (loss) 1.736 (1.785)
- ----------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.660 $ (1.850)
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.810 $ 8.150
- ----------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 20.37% (18.50)%
- ----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+
Net assets, end of year (000's omitted) $ 85,040 $ 31,903
Ratios (As a percentage of average daily net assets):
Net expenses(4) 2.27% 2.30%(5)
Net investment loss (0.88)% (1.17)%(5)
Portfolio Turnover of Tax-Managed Value Portfolio 76% 213%
Portfolio Turnover of Tax-Managed Growth Portfolio 19% 21%
Portfolio Turnover of Tax-Managed International Growth Portfolio 100% 128%
Portfolio Turnover of Tax-Managed Small-Cap Value Portfolio 21% 5%
Portfolio Turnover of Tax-Managed Multi-Cap Opportunity Portfolio 224% 225%
Portfolio Turnover of Tax-Managed Mid-Cap Core Portfolio 50% 13%
Portfolio Turnover of Tax-Managed Small-Cap Growth Portfolio 248% 131%
- ----------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund reflect an allocation of expenses
to the Administrator. Had such action not been taken, the ratios and
net investment loss per share would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(4) -- 2.52%(5)
Net investment loss -- (1.39)%(5)
Net investment loss per share(2) -- $ (0.077)
- ----------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 4, 2002, to October 31,
2002.
(2) Net investment loss per share was computed using average shares outstanding.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return is
not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolios' allocated expenses.
(5) Annualized.
See notes to financial statements.
11
<Page>
EATON VANCE TAX-MANAGED EQUITY ASSET ALLOCATION FUND AS OF OCTOBER 31, 2003
NOTES TO FINANCIAL STATEMENTS
1 SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance Tax-Managed Equity Asset Allocation Fund (the Fund) is a
diversified series of Eaton Vance Mutual Funds Trust (the Trust). The Trust
is an entity of the type commonly known as a Massachusetts business trust
and is registered under the Investment Company Act of 1940, as amended, as
an open-end management investment company. The Fund offers three classes of
shares. Class A shares are generally sold subject to a sales charge imposed
at time of purchase. Class B and Class C shares are sold at net asset value
and are generally subject to a contingent deferred sales charge (see Note
6). Class B shares held for eight years will automatically convert to Class
A shares. Each class represents a pro rata interest in the Fund, but votes
separately on class-specific matters and (as noted below) is subject to
different expenses. Realized and unrealized gains and losses and net
investment income and losses, other than class-specific expenses, are
allocated daily to each class of shares based on the relative net assets of
each class to the total net assets of the Fund. Each class of shares differs
in its distribution plan and certain other class-specific expenses. The Fund
currently invests all of its investable assets in the following seven
tax-managed equity portfolios managed by Eaton Vance or its affiliates:
Tax-Managed Value Portfolio, Tax-Managed Growth Portfolio, Tax-Managed
International Growth Portfolio, Tax-Managed Small-Cap Value Portfolio,
Tax-Managed Multi-Cap Opportunity Portfolio, Tax-Managed Mid-Cap Core
Portfolio and Tax-Managed Small-Cap Growth Portfolio (the Portfolios). Each
Portfolio is organized as a New York Trust. The investment objectives and
policies of the Portfolios together are the same as those of the Fund. The
value of the Fund's investment in each Portfolio reflects the Fund's
proportionate interest in the net assets of the Tax-Managed Value Portfolio,
Tax-Managed Growth Portfolio, Tax-Managed International Growth Portfolio,
Tax-Managed Small-Cap Value Portfolio, Tax-Managed Multi-Cap Opportunity
Portfolio, Tax-Managed Mid-Cap Core Portfolio and Tax-Managed Small-Cap
Growth Portfolio (7.4%, 0.3%, 34.3%, 58.5%, 34.9%, 66.8%, and 10.9%,
respectively, at October 31, 2003). The performance of the Fund is directly
affected by the performance of the Portfolios. A copy of each Portfolio's
financial statements is available on the EDGAR Database on the Securities
and Exchange Commission's website (www.sec.gov), at the Commission's public
reference room in Washington, DC or upon request from the Fund's principal
underwriter, Eaton Vance Distributors Inc. (EVD) by calling 1-800-225-6265.
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 -- The valuation policy of each Portfolio is as
follows: Marketable securities, including options, that are listed on
foreign or U.S. securities exchanges are valued at closing sale prices on
the exchange where such securities are principally traded. Marketable
securities listed in the NASDAQ National Market System are valued at the
NASDAQ official closing price. Unlisted or listed securities for which
closing sale prices are not available are generally valued at the mean
between the latest bid and asked prices. Futures positions on securities or
currencies are generally valued at closing settlement prices. Short-term
debt securities with a remaining maturity of 60 days or less are valued at
amortized cost, which approximates fair value. Other fixed income and debt
securities, including listed securities and securities for which price
quotations are available, will normally be valued on the basis of valuations
furnished by a pricing service. Over-the-counter options are normally valued
at the mean between the latest bid and asked price. Investments for which
valuations or market quotations are unavailable are valued at fair value
using methods determined in good faith by or at the direction of the
Trustees.
B INCOME -- 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 Portfolios, less
all actual and accrued expenses of the Fund, determined in accordance with
accounting principles generally accepted in the United States of America.
C EXPENSES -- The majority of expenses of the Trust are directly
identifiable to an individual fund. Expenses which are not readily
identifiable to a specific fund are allocated taking into consideration,
among other things, the nature and type of expense and the relative size of
the funds.
D FEDERAL TAXES -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its 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 $6,512,365
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
12
<Page>
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,
2010.
E OTHER -- Investment transactions are accounted for on a trade-date basis.
Dividends to shareholders are recorded on the ex-dividend date.
F USE OF ESTIMATES -- The preparation of the financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expense during
the reporting period. Actual results could differ from those estimates.
2 DISTRIBUTIONS TO SHAREHOLDERS
It is the present policy of the Fund to make at least one distribution
annually (normally in December) of all or substantially all of its net
investment income, if any, and at least one distribution annually of all or
substantially all of its net realized capital gains, if any. Distributions
are paid in the form of additional shares of the Fund or, at the election of
the shareholder, in cash. Shareholders may reinvest all distributions in
shares of the Fund at the net asset value as of the close of business on the
ex-dividend date. The Fund distinguishes between distributions on a tax
basis and a financial reporting basis. Accounting principles generally
accepted in the United States of America require that only distributions in
excess of tax basis earnings and profits be reported in the financial
statements as a return of capital. Permanent differences between book and
tax accounting relating to distributions are reclassified to paid-in
capital.
3 SHARES OF BENEFICIAL INTEREST
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such as
the Fund) and classes. Transactions in Fund shares were as follows:
<Table>
<Caption>
YEAR ENDED PERIOD ENDED
CLASS A OCTOBER 31, 2003 OCTOBER 31, 2002(1)
-------------------------------------------------------------------------------
Sales 5,934,498 5,550,097
Redemptions (2,293,895) (844,920)
-------------------------------------------------------------------------------
NET INCREASE 3,640,603 4,705,177
-------------------------------------------------------------------------------
<Caption>
YEAR ENDED PERIOD ENDED
CLASS B OCTOBER 31, 2003 OCTOBER 31, 2002(1)
-------------------------------------------------------------------------------
Sales 5,157,504 4,042,897
Redemptions (840,432) (233,802)
-------------------------------------------------------------------------------
NET INCREASE 4,317,072 3,809,095
-------------------------------------------------------------------------------
<Caption>
YEAR ENDED PERIOD ENDED
CLASS C OCTOBER 31, 2003 OCTOBER 31, 2002(1)
-------------------------------------------------------------------------------
Sales 5,964,727 4,531,807
Redemptions (1,209,188) (618,034)
-------------------------------------------------------------------------------
NET INCREASE 4,755,539 3,913,773
-------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 4, 2002, to October 31,
2002.
4 TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Eaton Vance Management (EVM), as
compensation for management and investment advisory services rendered to the
Fund. Under the advisory agreement, EVM receives a monthly advisory fee in
the amount of 0.80% (annually) of average daily net assets of the Fund up to
$500 million and at reduced rates as daily net assets exceed that level. The
advisory fee payable by the Fund is reduced by the Fund's allocable portion
of the advisory fees paid by the Portfolios in which it invests. The Fund's
allocated portion of the advisory fees paid by the Portfolios totaled
$1,191,730 for the year ended October 31, 2003. For the year ended October
31, 2003, the advisory fee paid directly by the Fund amounted to $154,765.
An administrative fee is earned by EVM for managing and administering the
business affairs of the Fund. Under the administration agreement, EVM earns
a fee in the amount of 0.15% per annum of the average daily net assets of
the Fund. For the year ended October 31, 2003, the administration fee
amounted to $253,076.
Except for Trustees of the Fund and the Portfolios who are not members of
EVM's organization, officers and Trustees receive remuneration for their
services to the Fund out of the investment adviser fee earned by EVM.
Trustees of the Fund that are not affiliated with EVM 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 Fund and Portfolios are officers of the above organization.
13
<Page>
EVM serves as the sub-transfer agent of the Fund and receives from the
transfer agent an aggregate fee based upon the actual expenses incurred by
EVM in the performance of those activities. During the year ended
October 31, 2003, EVM earned $16,086 in sub-transfer agent fees.
The Fund was informed that EVD, a subsidiary of EVM and the Funds principal
underwriter, received $152,478 as its portion of the sales charge on sales
of Class A for the year ended October 31, 2003.
5 DISTRIBUTION AND SERVICE PLANS
The Fund has in effect distribution plans for Class B shares (Class B Plan)
and Class C shares (Class C Plan), pursuant to Rule 12b-1 under the
Investment Company Act of 1940 and a service plan for Class A shares (Class
A Plan) (collectively, the Plans). The Class B and Class C Plans require the
Fund to pay EVD amounts equal to 1/365 of 0.75% of the Fund's average daily
net assets attributable to Class B and Class C shares for providing ongoing
distribution services and facilities to the Fund. The Fund will
automatically discontinue payments to EVD during any period in which there
are no outstanding Uncovered Distribution Charges, which are equivalent to
the sum of (i) 6.25% of the aggregate amount received by the Fund for the
Class B and Class C shares sold, plus (ii) interest calculated by applying
the rate of 1% over the prevailing prime rate to the outstanding balance of
Uncovered Distribution Charges of EVD of each respective class, reduced by
the aggregate amount of contingent deferred sales charges (see Note 6) and
daily amounts theretofore paid to EVD by each respective class. The Fund
paid or accrued $406,276, and $431,773 for Class B and Class C 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 and Class C
shares, respectively. At October 31, 2003, the amount of Uncovered
Distribution Charges of EVD calculated under the Plans was approximately
$3,090,000, and $2,912,000 for Class B and Class C shares, respectively.
The Plans authorize the Fund to make payments of service fees to EVD,
investment dealers and other persons in amounts equal to 0.25% of the Fund's
average daily net assets attributable to Class A, Class B and Class C shares
for each fiscal year. Service fee payments are made for personal services
and/or the maintenance of shareholder accounts. Service fees are separate
and distinct from the sales commissions and distribution fees payable by the
Fund to EVD and, as such, are not subject to automatic discontinuance when
there are no outstanding Uncovered Distribution Charges of EVD. Service fees
paid or accrued for the year ended October 31, 2003 amounted to $142,443,
$135,425 and $143,924 for Class A, Class B, and Class C shares,
respectively.
6 CONTINGENT DEFERRED SALES CHARGE
A contingent deferred sales charge (CDSC) generally is imposed on
redemptions of Class B shares made within six years of purchase and on
redemptions of Class C shares made within one year of purchase. Generally,
the CDSC is based upon the lower of the net asset value at date of
redemption or date of purchase. No charge is levied on shares acquired by
reinvestment of dividends or capital gain distributions. Class A shares may
be subject to a 1% CDSC if redeemed within one year of purchase (depending
upon the circumstances of purchase). The Class B CDSC is imposed at
declining rates that begin at 5% in the case of redemptions in the first and
second year after purchase, declining one percentage point each subsequent
year. Class C shares will be subject to a 1% CDSC if redeemed within one
year of purchase.
No CDSC is levied on shares which have been sold to EVM or its affiliates or
to their respective employees or clients and may be waived under certain
other limited conditions. CDSC on Class B and Class C redemptions are paid
to EVD to reduce the amount of Uncovered Distribution Charges calculated
under the Class B and Class C Plans, respectively (see Note 5). CDSC
assessed on Class B and Class C shares when no Uncovered Distribution
Charges exist for the respective classes will be credited to the Fund. EVD
received approximately $400, $104,000 and $18,000 of CDSC paid by
shareholders for Class A, Class B, and Class C shares, respectively, for the
year ended October 31, 2003.
7 INVESTMENT TRANSACTIONS
For the year ended October 31, 2003, increases and decreases in the Fund's
investment in the Portfolios were as follows:
<Table>
<Caption>
PORTFOLIO CONTRIBUTIONS WITHDRAWALS
----------------------------------------------------------------------------
Tax-Managed Value Portfolio $ 20,634,958 $ 2,025,875
Tax-Managed Growth Portfolio 24,486,641 1,036,113
Tax-Managed International Growth Portfolio 17,971,854 1,006,796
Tax-Managed Small-Cap Value Portfolio 10,479,137 707,902
Tax-Managed Multi-Cap Opportunity Portfolio 15,109,857 851,161
Tax-Managed Mid-Cap Core Portfolio 16,556,024 503,732
Tax-Managed Small-Cap Growth Portfolio 10,721,403 582,301
</Table>
14
<Page>
8 SHAREHOLDER MEETING
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 12,621,584 131,163
Donald R. Dwight 12,592,717 160,030
James B. Hawkes 12,752,747 93,238
Samuel L. Hayes, III 12,618,843 133,904
William H. Park 12,644,022 108,725
Norton H. Reamer 12,603,884 148,863
Lynn A. Stout 12,624,809 127,937
</Table>
Each nominee was also elected a Trustee of the Portfolios. 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 EQUITY ASSET ALLOCATION FUND as of October 31, 2003
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES OF EATON VANCE MUTUAL FUNDS TRUST AND SHAREHOLDERS OF EATON
VANCE TAX-MANAGED EQUITY ASSET ALLOCATION FUND:
We have audited the accompanying statement of assets and liabilities, of Eaton
Vance Tax-Managed Equity Asset Allocation 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, and the statements of changes
in net assets and the financial highlights for the year then ended and the
period from the start of business, March 4, 2002 to October 31, 2002. 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, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Eaton
Vance Tax-Managed Equity Asset Allocation Fund as of October 31, 2003, the
results of its operations for the year then ended, and the changes in its net
assets and its financial highlights for the year then ended and the period from
the start of business, March 4, 2002 to October 31, 2002 in conformity with
accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 16, 2003
16
<Page>
EATON VANCE TAX-MANAGED EQUITY ASSET ALLOCATION FUND
MANAGEMENT AND ORGANIZATION
Fund Management. The Trustees of Eaton Vance Mutual Funds Trust (the Trust) are
responsible for the overall management and supervision of the Trust's affairs.
The Trustees and officers of the Trust are listed below. Except as indicated,
each individual has held the office shown or other offices in the same company
for the last five years. Trustees and officers of the Trust hold indefinite
terms of office. The "noninterested Trustees" consist of those Trustees who are
not "interested persons" of the Trust, as that term is defined under the 1940
Act. The business address of each Trustee and officer is The Eaton Vance
Building, 255 State Street, Boston, Massachusetts 02109. As used below, "EVC"
refers to Eaton Vance Corp., "EV" refers to Eaton Vance, Inc., "EVM" refers to
Eaton Vance Management, "BMR" refers to Boston Management and Research and "EVD"
refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and
trustee, respectively, of EVM and BMR. EVD is the Fund's principal underwriter
and a wholly-owned subsidiary of EVM.
<Table>
<Caption>
NUMBER OF
TERM OF PORTFOLIOS
POSITION OFFICE AND IN FUND COMPLEX
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
DATE OF BIRTH TRUST SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD
- ---------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE(S)
Jessica M. Bibliowicz Trustee Since 1998 Chairman, President and Chief 192 Director of National Financial
11/28/59 Executive Officer of National Partners
Financial Partners (financial
services company) (since
April 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 Since 1991 Chairman, President and Chief 194 Director of EVC
11/9/41 Executive Officer of BMR, EVC,
EVM and EV; Director of EV; Vice
President and Director of EVD.
Trustee and/or officer of 194
registered investment companies
in the Eaton Vance Fund Complex.
Mr. Hawkes is an interested person
because of his positions with
BMR, EVM, EVC and EV, which are
affiliates of the Trust.
NONINTERESTED TRUSTEE(S)
Samuel L. Hayes, III Trustee Since 1986 Jacob H. Schiff Professor of 194 Director of Tiffany & Co.
2/23/35 Investment Banking Emeritus, (specialty retailer) and
Harvard University Graduate Telect, Inc. (telecommunication
School of Business services company)
Administration.
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).
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).
</Table>
17
<Page>
<Table>
<Caption>
NUMBER OF
TERM OF PORTFOLIOS
POSITION OFFICE AND IN FUND COMPLEX
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
DATE OF BIRTH TRUST SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD
- ---------------------------------------------------------------------------------------------------------------------------------
NONINTERESTED TRUSTEE(S) (CONTINUED)
Norton H. Reamer Trustee Since 1986 President and Chief Executive 194 None
9/21/35 Officer of Asset Management
Finance Corp. (a specialty
finance company serving the
investment management industry)
(since October 2003). President,
Unicorn Corporation (an
investment and financial advisory
services company) (since
September 2000). Formerly,
Chairman, 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>
TERM OF
POSITION OFFICE AND
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH TRUST SERVICE DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------------
Thomas E. Faust Jr. President Since 2002 Executive Vice President of EVM, BMR, EVC and
5/31/58 EV; Chief 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 Since 1995 Vice President of EVM and BMR. Officer of 35
7/28/59 registered investment companies managed by
EVM or BMR.
Thomas J. Fetter Vice President Since 1997 Vice President of EVM and BMR. Trustee and
8/20/43 President of The Massachusetts Health &
Education Tax-Exempt Trust. Officer of 127
registered investment companies managed by
EVM or BMR.
Michael R. Mach Vice President Since 1999 Vice President of EVM and BMR. Previously,
7/15/47 Managing Director and Senior Analyst for
Robertson Stephens (1998-1999). Officer of 25
registered investment companies managed by
EVM or BMR.
Robert B. MacIntosh Vice President Since 1998 Vice President of EVM and BMR. Officer of 127
1/22/57 registered investment companies managed by
EVM or BMR.
Duncan W. Richardson Vice President Since 2001 Senior Vice President and Chief Equity
10/26/57 Investment Officer of EVM and BMR. Officer of
41 registered investment companies managed by
EVM or BMR.
Walter A. Row, III Vice President Since 2001 Director of Equity Research and a Vice
7/20/57 President of EVM and BMR. Officer of 22
registered investment companies managed by
EVM or BMR.
Judith A. Saryan Vice President Since 2003 Vice President of EVM and BMR. Previously,
8/21/54 Portfolio Manager and Equity Analyst for
State Street Global Advisers (1980-1999).
Officer of 24 registered investment companies
managed by EVM or BMR.
</Table>
18
<Page>
<Table>
<Caption>
TERM OF
POSITION OFFICE AND
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH TRUST SERVICE DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------------
Susan Schiff Vice President Since 2002 Vice President of EVM and BMR. Officer of 26
3/13/61 registered investment companies managed by
EVM or BMR.
Alan R. Dynner Secretary Since 1997 Vice President, Secretary and Chief Legal
10/10/40 Officer of BMR, EVM, EVD, EV and EVC. Officer
of 194 registered investment companies
managed by EVM or BMR.
James L. O'Connor Treasurer Since 1989 Vice President of BMR, EVM and EVD. Officer
4/1/45 of 115 registered investment companies
managed by EVM or BMR.
</Table>
(1) Includes both master and feeder funds in a master-feeder structure.
The SAI for the Fund includes additional information about the Trustees and
officers of the Fund and can be obtained without charge by calling
1-800-225-6265.
19
<Page>
This Page Intentionally Left Blank
<Page>
This Page Intentionally Left Blank
<Page>
INVESTMENT ADVISER OF EATON VANCE TAX-MANAGED EQUITY ASSET ALLOCATION FUND
EATON VANCE MANAGEMENT
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
ADMINISTRATOR OF EATON VANCE TAX-MANAGED EQUITY ASSET ALLOCATION 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 EQUITY ASSET ALLOCATION 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>
1299-12/03 TMEAASRC
<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
<Page>
Chief Financial Officer of United Asset Management Corporation ("UAM") (a
holding company owning institutional investment management firms). Mr. Hayes is
the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard
University Graduate School of Business Administration. Mr. Reamer is the
President 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 EQUITY
ASSET ALLOCATION 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
-----------------