<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>
[EATON VANCE LOGO]
[PHOTO IMAGE]
ANNUAL REPORT OCTOBER 31, 2003
EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.2
[PHOTO IMAGE]
[PHOTO IMAGE]
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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 SMALL-CAP GROWTH FUND 1.2 AS OF OCTOBER 31, 2003
LETTER TO SHAREHOLDERS
[PHOTO OF THOMAS E. FAUST JR.]
Thomas E. Faust Jr.
President
Eaton Vance Tax-Managed Small-Cap Growth Fund 1.2, Class A shares, had a total
return of 25.97% during the year ended October 31, 2003. That return was the
result of an increase in net asset value (NAV) per share from $6.20 on October
31, 2002, to $7.81 on October 31, 2003.(1) Class B shares had a total return of
25.16% for the same period, the result of an increase in NAV from $6.12 to
$7.66.(1) Class C shares had a total return of 25.16% for the same period, the
result of an increase in NAV from $6.12 to $7.66.(1) Additional information
about the Fund's performance (including after-tax performance) appears on page
6.
By comparison, the S&P SmallCap 600 Index - a widely recognized, unmanaged index
of small-capitalization stocks - had a total return of 33.58% for the one-year
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 Jr.
Thomas E. Faust Jr.
President
December 5, 2003
TEN LARGEST EQUITY HOLDINGS(3)
<Table>
XM Satellite Radio Holdings, Inc. 2.2%
Select Comfort Corp. 2.0
Lam Research Corp. 2.0
Kyphon, Inc. 1.9
Select Medical Corp. 1.9
Varian Semiconductor Equipment Associates, Inc. 1.8
NTL, Inc. 1.7
NII Holdings, Inc., Class B 1.5
Cognizant Technology Solutions Corp. 1.4
Tractor Supply Co. 1.2
</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 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.
(3) Ten largest holdings accounted for 17.6% of the Portfolio's net assets.
Holdings are subject to change.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT
TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED.
2
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.2 AS OF OCTOBER 31, 2003
MANAGEMENT DISCUSSION
AN INTERVIEW WITH TONI SHIMURA, VICE PRESIDENT AND PORTFOLIO MANAGER OF
TAX-MANAGED SMALL-CAP GROWTH PORTFOLIO
[PHOTO OF TONI SHIMURA]
Toni Shimura
Portfolio Manager
Q: WHAT WAS THE OVERALL MARKET ENVIRONMENT FOR THE PORTFOLIO FOR THE YEAR ENDING
OCTOBER 31, 2003?
A: The stock market environment for small capitalization stocks, and small-cap
growth stocks in particular, was a positive one, much improved from the prior
year. We believe the market was strong for several reasons. First, fiscal
policy was favorable, with taxes on dividends and capital gains reduced to
their lowest levels in 60 years. Secondly, monetary policy was favorable as
well, with the Federal Reserve keeping interest rates low. This helped pave
the way for a slow and steady recovery in the economy, and with it,
improvements in the earnings of many of the companies in the Portfolio.
FIVE LARGEST SECTOR POSITIONS+
By total net assets
<Table>
ELECTRONICS SEMICONDUCTOR EQUIPMENT 7.7%
COMPUTER SOFTWARE 5.6%
ELECTRONICS SEMICONDUCTORS 5.0%
COMPUTER SERVICES 4.9%
MEDICAL PRODUCTS 4.8%
</Table>
+ Sector positions subject to change due to active management.
Q: CAN YOU GIVE THE SHAREHOLDERS A SUMMARY OF THE FUND'S PERFORMANCE OVER THE
LAST YEAR?
A: We are pleased to report that the Fund had a solid return of 25.97% for the
12 months ended October 31, 2003 (for Class A shares at NAV). This return
beat the broad market, as measured by the S&P 500 Index, which returned
20.79%, but underperformed its benchmark, the S&P SmallCap 600 Index, which
had a total return of 33.58% for the period.*
Q: WHAT FACTORS ACCOUNTED FOR THE FUND'S PERFORMANCE RELATIVE TO THE BENCHMARK
DURING THE PERIOD?
A: The Fund's return in 2003 trailed that of the S&P 600 SmallCap Index
primarily due to the very strong performance of many low-priced,
micro-capitalization companies included in that index.* These stocks included
micro-cap technology and biotech stocks that had very high returns. Not
owning those stocks hurt our performance relative to our small-cap benchmark.
The Portfolio also held some underperforming stocks early in the fiscal year
that negatively affected our performance.
Q: WHAT INDUSTRY GROUPS MOST NEGATIVELY IMPACTED FUND PERFORMANCE OVER THE PAST
12 MONTHS?
A: As a group, the Portfolio's health care stocks were the worst performers,
both on an absolute basis and relative to the S&P SmallCap 600 Index.* The
weakened financial condition of hospitals resulted in a slowdown in purchases
of non-essential information technology services and medical devices.
* It is not possible to invest directly in an Index.
3
<Page>
Q: WHAT STOCKS AND INDUSTRY GROUPS MOST POSITIVELY IMPACTED FUND PERFORMANCE
OVER THE PAST 12 MONTHS?
A: The technology sector was the best performing sector of the stock market over
the past year and, likewise, was the best performing sector of the Portfolio.
The Portfolio's technology stocks advanced an average of 47% over the past 12
months. While that was a large increase, the Portfolio's technology holdings
lagged the 60% advance in the S&P SmallCap 600 technology sector overall,
because we were underweighted in some of those micro-cap stocks I mentioned
earlier.* However, the Portfolio was overweighted in the technology-related
sector, particularly in semiconductors and software, which helped our
performance. Many of these companies had performed poorly in the market
declines of recent years and benefited from the economic rebound.
Two other unrelated sub-sectors that contributed positively to performance
were telecommunications services stocks and specialty retailers. This latter
group included some solid performers who were growing their earnings through
strong comparable store sales and new store openings. Specialty retail
holdings that made positive contributions included Urban Outfitters (an urban
lifestyle retailer) and Tractor Supply (a retailer catering to part-time
farmers).
Q: DO YOU ANTICIPATE ANY SIGNIFICANT CHANGES TO YOUR INVESTMENT STRATEGY FOR THE
PORTFOLIO?
A: Although the Portfolio had a change in portfolio manager this year, there has
been no significant alteration of its strategy, a strategy that we believe
still offers investors an opportunity for long-term, after-tax returns. We
believe that successful investing requires broad diversification, a long-term
orientation and an emphasis on companies that are reasonably priced in
relation to their fundamental value. We continue to maintain a broadly
diversified Portfolio from an individual stock and sector standpoint.
Q: DO YOU HAVE ANY FINAL COMMENTS FOR OUR SHAREHOLDERS ON YOUR OUTLOOK GOING
FORWARD?
A: Many of the companies held by the Portfolio have had positive fundamentals
despite the uneven economy of the past few years. We believe that the broad
market is now recognizing these strong fundamentals. We believe that many of
the companies held by the Portfolio, especially those in technology, business
services, and specialty retail, are especially well positioned to benefit
from an acceleration in economic activity. In the year to come, we will
continue to seek out small-cap growth companies that we believe can
demonstrate earnings growth rates that exceed those of other publicly-traded
companies.
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 SMALL-CAP GROWTH FUND 1.2 AS OF OCTOBER 31, 2003
PERFORMANCE
[CHART]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE TAX-MANAGED
SMALL-CAP GROWTH FUND 1.2 CLASS A VS. THE S&P SMALLCAP 600 INDEX*
EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.2- CLASS A
Inception: 3/2/01
<Table>
<Caption>
FUND FUND S&P SMALLCAP
VALUE AT VALUE WITH 600
DATE NAV SALES CHARGE INDEX
- ------------------------------------------------------
3/31/2001 10,000 9425 10,000
4/30/2001 11,503 10838.78 10,762
5/31/2001 11,642 10969.5 10,968
6/30/2001 11,734 11056.65 11,370
7/31/2001 10,925 10294.12 11,180
8/31/2001 10,139 9553.38 10,925
9/30/2001 8,358 7875.82 9,448
10/31/2001 9,260 8725.49 9,952
11/30/2001 10,023 9444.45 10,680
12/31/2001 10,474 9869.28 11,403
1/31/2002 10,023 9444.45 11,502
2/28/2002 9,329 8790.85 11,304
3/31/2002 10,000 9422.66 12,197
4/30/2002 9,526 8976.04 12,542
5/31/2002 9,098 8572.99 12,023
6/30/2002 8,370 7886.71 11,401
7/31/2002 7,260 6840.96 9,791
8/31/2002 7,387 6960.79 9,884
9/30/2002 6,936 6535.95 9,279
10/31/2002 7,168 6753.82 9,576
11/30/2002 7,653 7211.33 10,075
12/31/2002 7,179 6764.71 9,735
1/31/2003 7,098 6688.46 9,400
2/28/2003 6,879 6481.48 9,099
3/31/2003 6,925 6525.06 9,171
4/30/2003 7,387 6960.79 9,915
5/31/2003 7,931 7472.77 10,715
6/30/2003 7,942 7483.66 10,993
7/31/2003 8,370 7886.71 11,565
8/31/2003 8,798 8289.76 12,127
9/30/2003 8,335 7854.03 11,771
10/31/2003 9,029 8507.63 12,791
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE TAX-MANAGED
SMALL-CAP GROWTH FUND 1.2 CLASS A VS. THE S&P SMALLCAP 600 INDEX*
EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.2- CLASS B
Inception: 3/2/01
<Table>
<Caption>
FUND FUND S&P SMALLCAP
VALUE AT VALUE WITH 600
DATE NAV SALES CHARGE INDEX
- ------------------------------------------------------
3/31/2001 10,000 10,000 10,000
4/30/2001 11,541 11,541 10,762
5/31/2001 11,669 11,669 10,968
6/30/2001 11,750 11,750 11,370
7/31/2001 10,927 10,927 11,180
8/31/2001 10,127 10,127 10,925
9/30/2001 8,355 8,355 9,448
10/31/2001 9,235 9,235 9,952
11/30/2001 10,000 10,000 10,680
12/31/2001 10,452 10,452 11,403
1/31/2002 9,988 9,988 11,502
2/28/2002 9,305 9,305 11,304
3/31/2002 9,954 9,954 12,197
4/30/2002 9,467 9,467 12,542
5/31/2002 9,050 9,050 12,023
6/30/2002 8,308 8,308 11,401
7/31/2002 7,196 7,196 9,791
8/31/2002 7,323 7,323 9,884
9/30/2002 6,871 6,871 9,279
10/31/2002 7,092 7,092 9,576
11/30/2002 7,578 7,578 10,075
12/31/2002 7,092 7,092 9,735
1/31/2003 7,010 7,010 9,400
2/28/2003 6,790 6,790 9,099
3/31/2003 6,825 6,825 9,171
4/30/2003 7,289 7,289 9,915
5/31/2003 7,810 7,810 10,715
6/30/2003 7,822 7,822 10,993
7/31/2003 8,239 8,239 11,565
8/31/2003 8,656 8,656 12,127
9/30/2003 8,192 8,192 11,771
10/31/2003 8,876 8,876 12,791
Less 4% 355
10/31/2003 8,521
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE TAX-MANAGED
SMALL-CAP GROWTH FUND 1.2 CLASS A VS. THE S&P SMALLCAP 600 INDEX*
EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.2- CLASS C
Inception: 3/2/01
<Table>
<Caption>
FUND FUND S&P SMALLCAP
VALUE AT VALUE WITH 600
DATE NAV SALES CHARGE INDEX
- ------------------------------------------------------
3/31/2001 10,000 N/A 10,000
4/30/2001 11,555 10,762
5/31/2001 11,682 10,968
6/30/2001 11,763 11,370
7/31/2001 10,940 11,180
8/31/2001 10,139 10,925
9/30/2001 8,364 9,448
10/31/2001 9,258 9,952
11/30/2001 10,012 10,680
12/31/2001 10,464 11,403
1/31/2002 10,000 11,502
2/28/2002 9,316 11,304
3/31/2002 9,977 12,197
4/30/2002 9,490 12,542
5/31/2002 9,060 12,023
6/30/2002 8,329 11,401
7/31/2002 7,204 9,791
8/31/2002 7,332 9,884
9/30/2002 6,879 9,279
10/31/2002 7,100 9,576
11/30/2002 7,587 10,075
12/31/2002 7,100 9,735
1/31/2003 7,019 9,400
2/28/2003 6,798 9,099
3/31/2003 6,833 9,171
4/30/2003 7,297 9,915
5/31/2003 7,819 10,715
6/30/2003 7,831 10,993
7/31/2003 8,248 11,565
8/31/2003 8,666 12,127
9/30/2003 8,202 11,771
10/31/2003 8,886 12,791
</Table>
<Table>
<Caption>
PERFORMANCE** CLASS A CLASS B CLASS C
--------------------------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 25.97% 25.16% 25.16%
Life of Fund+ -8.84% -9.50% -9.50%
SEC Average Annual Total Returns (including sales charge or
applicable CDSC)
One Year 18.69% 20.16% 24.16%
Life of Fund+ -10.84% -10.87% -9.50%
</Table>
+Inception Dates - Class A: 3/2/01; Class B: 3/2/01; Class C:3/2/01
* Source: Thomson Financial. Investment operations commenced 3/2/01. 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 S&P SmallCap 600
Index, a broad-based, unmanaged market index of 600 small capitalization
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 S&P SmallCap 600 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 the 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 shares reflect the maximum 5.75% sales charge. SEC returns for Class
B shares 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 shares 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>
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 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 25.97% -8.84%
Return After Taxes on Distributions 25.97% -8.84%
Return After Taxes on Distributions
and Sale of Fund Shares 16.88% -7.42%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP)(CLASS A)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes 18.69% -10.84%
Return After Taxes on Distributions 18.69% -10.84%
Return After Taxes on Distributions
and Sale of Fund Shares 12.15% -9.08%
</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 25.16% -9.50%
Return After Taxes on Distributions 25.16% -9.50%
Return After Taxes on Distributions
and Sale of Fund Shares 16.36% -7.97%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP)(CLASS B)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes 20.16% -10.87%
Return After Taxes on Distributions 20.16% -10.87%
Return After Taxes on Distributions
and Sale of Fund Shares 13.11% -9.10%
</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 25.16% -9.50%
Return After Taxes on Distributions 25.16% -9.50%
Return After Taxes on Distributions
and Sale of Fund Shares 16.36% -7.97%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP)(CLASS C)
<Table>
<Caption>
ONE YEAR LIFE OF FUND
Return Before Taxes 24.16% -9.50%
Return After Taxes on Distributions 24.16% -9.50%
Return After Taxes on Distributions
and Sale of Fund Shares 15.71% -7.97%
</Table>
Class A, Class B, and Class C shares commenced operations on 3/2/01. 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 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 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 SMALL-CAP GROWTH FUND 1.2 AS OF OCTOBER 31, 2003
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AS OF OCTOBER 31, 2003
<Table>
ASSETS
Investment in Tax-Managed Small-Cap Growth Portfolio, at value
(identified cost, $34,996,748) $ 42,686,482
Receivable for Fund shares sold 28,174
Receivable from affiliate 15,005
- -----------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 42,729,661
- -----------------------------------------------------------------------------------------------------
LIABILITIES
Payable for Fund shares redeemed $ 84,422
Payable to affiliate for distribution and service fees 8,559
Payable to affiliate for Trustees' fees 15
Accrued expenses 45,921
- -----------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 138,917
- -----------------------------------------------------------------------------------------------------
NET ASSETS $ 42,590,744
- -----------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Paid-in capital $ 49,215,947
Accumulated net realized loss from Portfolio (computed on
the basis of identified cost) (14,273,941)
Accumulated net investment loss (40,996)
Net unrealized appreciation from Portfolio (computed on the basis of
identified cost) 7,689,734
- -----------------------------------------------------------------------------------------------------
TOTAL $ 42,590,744
- -----------------------------------------------------------------------------------------------------
CLASS A SHARES
NET ASSETS $ 15,909,829
SHARES OUTSTANDING 2,036,170
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 7.81
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $7.81) $ 8.29
- -----------------------------------------------------------------------------------------------------
CLASS B SHARES
NET ASSETS $ 13,028,417
SHARES OUTSTANDING 1,700,890
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 7.66
- -----------------------------------------------------------------------------------------------------
CLASS C SHARES
NET ASSETS $ 13,652,498
SHARES OUTSTANDING 1,782,475
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 7.66
- -----------------------------------------------------------------------------------------------------
</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, $1,193) $ 48,908
Interest allocated from Portfolio 26,188
Expenses allocated from Portfolio (270,277)
- -----------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS FROM PORTFOLIO $ (195,181)
- -----------------------------------------------------------------------------------------------------
EXPENSES
Administration fee $ 55,178
Trustees' fees and expenses 180
Distribution and service fees --
Class A 34,648
Class B 103,599
Class C 121,903
Class D 3,676
Transfer and dividend disbursing agent fees 94,838
Registration fees 42,313
Printing and postage 31,246
Legal and accounting services 16,244
Custodian fee 15,456
Miscellaneous 4,814
- -----------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 524,095
- -----------------------------------------------------------------------------------------------------
Deduct --
Reimbursement of expenses by affiliate $ 15,940
- -----------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 15,940
- -----------------------------------------------------------------------------------------------------
NET EXPENSES $ 508,155
- -----------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS $ (703,336)
- -----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIO
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 1,698,820
- -----------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 1,698,820
- -----------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 7,543,188
- -----------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 7,543,188
- -----------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 9,242,008
- -----------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 8,538,672
- -----------------------------------------------------------------------------------------------------
</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 $ (703,336) $ (665,851)
Net realized gain (loss) 1,698,820 (14,344,922)
Net change in unrealized
appreciation (depreciation) 7,543,188 2,077,900
- -----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 8,538,672 $ (12,932,873)
- -----------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 4,510,926 $ 16,169,495
Class B 3,692,313 8,727,914
Class C 2,705,611 11,621,529
Class D 92,732 766,547
Class I 400 4,566
Cost of shares redeemed
Class A (5,657,675) (7,114,914)
Class B (2,710,657) (2,894,382)
Class C (3,977,570) (4,702,921)
Class D (876,923) (254,139)
Class I (7,361) (2,077)
- -----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
FUND SHARE TRANSACTIONS $ (2,228,204) $ 22,321,618
- -----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 6,310,468 $ 9,388,745
- -----------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 36,280,276 $ 26,891,531
- -----------------------------------------------------------------------------------------
AT END OF YEAR $ 42,590,744 $ 36,280,276
- -----------------------------------------------------------------------------------------
ACCUMULATED NET INVESTMENT LOSS INCLUDED
IN NET ASSETS
AT END OF YEAR $ (40,996) $ (58,565)
- -----------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
8
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS A
------------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------- PERIOD ENDED
2003 2002 OCTOBER 31, 2001(1)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 6.200 $ 8.010 $ 10.000
- ----------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss(2) $ (0.096) $ (0.087) $ (0.066)
Net realized and unrealized gain (loss) 1.706 (1.723) (1.924)
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.610 $ (1.810) $ (1.990)
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 7.810 $ 6.200 $ 8.010
- ----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 25.97% (22.60)% (19.90)%
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+
Net assets, end of year (000's omitted) $ 15,910 $ 13,750 $ 9,419
Ratios (As a percentage of average daily net assets):
Net expenses(4) 1.65% 1.39% 1.35%(5)
Net expenses after custodian fee reduction(4) 1.65% 1.39% 1.33%(5)
Net investment loss (1.44)% (1.15)% (1.13)%(5)
Portfolio Turnover of the Portfolio 248% 131% 38%
- ----------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund reflect a
reimbursement of expenses by the Administrator. Had
such action not been taken, the net investment loss
per share and the ratios would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(4) 1.70% 1.66% 2.35%(5)
Expenses after custodian fee reduction(4) 1.70% 1.66% 2.33%(5)
Net investment loss (1.49)% (1.42)% (2.13)%(5)
Net investment loss per share(2) $ (0.100) $ (0.107) $ (0.124)
- ----------------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 2, 2001, to October 31,
2001.
(2) Net investment loss per share was computed using average shares
outstanding.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
See notes to financial statements.
9
<Page>
<Table>
<Caption>
CLASS B
---------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------- PERIOD ENDED
2003 2002 OCTOBER 31, 2001(1)
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 6.120 $ 7.970 $ 10.000
- -------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss(2) $ (0.145) $ (0.142) $ (0.110)
Net realized and unrealized gain (loss) 1.685 (1.708) (1.920)
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.540 $ (1.850) $ (2.030)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 7.660 $ 6.120 $ 7.970
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 25.16% (23.21)% (20.30)%
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+
Net assets, end of year (000's omitted) $ 13,028 $ 9,550 $ 7,125
Ratios (As a percentage of average daily net assets):
Net expenses(4) 2.40% 2.14% 2.10%(5)
Net expenses after custodian fee reduction(4) 2.40% 2.14% 2.08%(5)
Net investment loss (2.20)% (1.90)% (1.89)%(5)
Portfolio Turnover of the Portfolio 248% 131% 38%
- -------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund reflect a
reimbursement of expenses by the Administrator. Had
such action not been taken, the net investment loss
per share and the ratios would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(4) 2.43% 2.41% 3.10%(5)
Expenses after custodian fee reduction(4) 2.43% 2.41% 3.08%(5)
Net investment loss (2.23)% (2.17)% (2.89)%(5)
Net investment loss per share(2) $ (0.147) $ (0.162) $ (0.168)
- -------------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 2, 2001, to October 31,
2001.
(2) Net investment loss per share was computed using average shares
outstanding.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
See notes to financial statements.
10
<Page>
<Table>
<Caption>
CLASS C
---------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------- PERIOD ENDED
2003 2002 OCTOBER 31, 2001(1)
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 6.120 $ 7.980 $ 10.000
- -------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss(2) $ (0.144) $ (0.143) $ (0.111)
Net realized and unrealized gain (loss) 1.684 (1.717) (1.909)
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.540 $ (1.860) $ (2.020)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 7.660 $ 6.120 $ 7.980
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 25.16% (23.31)% (20.20)%
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+
Net assets, end of year (000's omitted) $ 13,652 $ 12,152 $ 9,747
Ratios (As a percentage of average daily net assets):
Net expenses(4) 2.40% 2.14% 2.10%(5)
Net expenses after custodian fee reduction(4) 2.40% 2.14% 2.08%(5)
Net investment loss (2.20)% (1.90)% (1.88)%(5)
Portfolio Turnover of the Portfolio 248% 131% 38%
- -------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund reflect a
reimbursement of expenses by the Administrator. Had
such action not been taken, the net investment loss
per share and the ratios would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(4) 2.44% 2.41% 3.10%(5)
Expenses after custodian fee reduction(4) 2.44% 2.41% 3.08%(5)
Net investment loss (2.24)% (2.17)% (2.88)%(5)
Net investment loss per share(2) $ (0.147) $ (0.163) $ (0.170)
- -------------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 2, 2001, to October 31,
2001.
(2) Net investment loss per share was computed using average shares
outstanding.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
See notes to financial statements.
11
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.2 AS OF OCTOBER 31, 2003
NOTES TO FINANCIAL STATEMENTS
1 SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance Tax-Managed Small-Cap Growth Fund 1.2 (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 currently 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 subject to a contingent deferred sales charge (see
Note 6). Class B shares held for eight years will automatically convert to
Class A shares. The Fund previously offered Class D and Class I shares. Such
offerings were discontinued during the year ended October 31, 2003. Each
class represents a pro-rata interest in the Fund, but votes separately on
class-specific matters and (as noted below) is subject to different expenses.
Realized and unrealized gains and losses and net investment income and
losses, other than class-specific expenses, are allocated daily to each class
of shares based on the relative net assets of each class to the total net
assets of the Fund. Each class of shares differs in its distribution plan and
certain other class-specific expenses. The Fund invests all of its investable
assets in interests of the Tax-Managed Small-Cap 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 (18.8% 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 1 A of the Portfolio's Notes to Financial Statements which
are included elsewhere in this report.
B INCOME -- The Fund's net investment income or loss consists of the Fund's
pro-rata share of the net investment income or loss of the Portfolio, less
all actual and accrued expenses of the Fund determined in accordance with
accounting principles generally accepted in the United States of America.
C EXPENSES -- The majority of expenses of the Trust are directly identifiable
to an individual fund. Expenses which are not readily identifiable to a
specific fund are allocated taking into consideration, among other things,
the nature and type of expense and the relative size of the funds.
D FEDERAL TAXES -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its 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 $11,876,431 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,
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 (reduced by available
capital loss carryforwards from prior years, 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
additional shares of the Fund at the net asset value as of the close of
business on the ex-dividend date. The Fund distinguishes between
distributions on a tax basis and a financial reporting basis.
12
<Page>
Accounting principles generally accepted in the United States of America
require that only distributions in excess of tax basis earnings and profits
be reported in the financial statements as a return of capital. Permanent
differences between book and tax accounting relating to distributions are
reclassified to paid-in capital.
3 SHARES OF BENEFICIAL INTEREST
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Transactions in Fund shares were as follows:
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
-------------------------
CLASS A 2003 2002
-------------------------------------------------------------
Sales 674,033 1,976,197
Redemptions (856,241) (934,096)
-------------------------------------------------------------
NET INCREASE (DECREASE) (182,208) 1,042,101
-------------------------------------------------------------
<Caption>
YEAR ENDED OCTOBER 31,
-------------------------
CLASS B 2003 2002
-------------------------------------------------------------
Sales 564,024 1,058,735
Redemptions (423,729) (391,667)
--------------------------------------------------------------
NET INCREASE 140,295 667,068
--------------------------------------------------------------
<Caption>
YEAR ENDED OCTOBER 31,
-------------------------
CLASS C 2003 2002
-------------------------------------------------------------
Sales 412,732 1,418,328
Redemptions (615,403) (655,178)
--------------------------------------------------------------
NET INCREASE (DECREASE) (202,671) 763,150
--------------------------------------------------------------
<Caption>
YEAR ENDED OCTOBER 31,
-------------------------
CLASS D 2003(1) 2002
-------------------------------------------------------------
Sales 15,227 95,086
Redemptions (149,232) (35,433)
--------------------------------------------------------------
NET INCREASE (DECREASE) (134,005) 59,653
--------------------------------------------------------------
<Caption>
YEAR ENDED OCTOBER 31,
-------------------------
CLASS I 2003(1) 2002
-------------------------------------------------------------
Sales 56 462
Redemptions (1,087) (253)
--------------------------------------------------------------
NET INCREASE (DECREASE) (1,031) 209
--------------------------------------------------------------
</Table>
(1) Offerings of Class D and Class I shares were discontinued during the year
ended October 31, 2003 (see Note 1).
4 TRANSACTIONS WITH AFFILIATES
The administration fee is earned by Eaton Vance Management (EVM) as
compensation for managing and administering the business affairs of the Fund.
Under the administration agreement, EVM earns a fee in the amount of 0.15%
per annum of average daily net assets of the Fund. For the year ended October
31, 2003, the administration fee amounted to $55,178. To reduce the net
investment loss of the Fund, EVM was allocated $15,005 of the Fund's
operating expenses for the year ended October 31, 2003. The Portfolio has
engaged Boston Management and Research (BMR), a subsidiary of EVM, to render
investment advisory services. See Note 2 of the Portfolio's Notes to
Financial Statements which are included elsewhere in this report. 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 $8,394 in sub-transfer agent fees.
Except for Trustees of the Fund and the Portfolio who are not members of
EVM's or BMR's organization, officers and Trustees receive remuneration for
their services to the Fund out of the investment adviser fee earned by BMR.
Trustees of the Fund that are not affiliated with EVM or BMR may elect to
defer receipt of all or a percentage of their annual fees in accordance with
the terms of the Trustees Deferred Compensation Plan. For the year ended
October 31, 2003, no significant amounts have been deferred.
Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's
principal underwriter, received $7,069 as its portion of the sales charge on
sales of Class A shares for the year ended October 31, 2003.
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
13
<Page>
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,
Class C and Class D 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 $77,699, $91,427, and $2,757 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 $738,000 and $1,188,000 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 the amount of 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
$34,648, $25,900, $30,476, and $919 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 the 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, its affiliates, or
to their respective employees or clients and may be waived under certain
other limited conditions. CDSC charges received on Class B and Class C
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 assessed on Class B, Class C and Class D shares when no
Uncovered Distribution Charges exist for the respective class will be
credited to the Fund. EVD received approximately $14, $51,000, $4,000, and
$3,500 of CDSC paid by shareholders for Class A shares, Class B shares, Class
C shares, 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 for the
year ended October 31, 2003, aggregated $11,053,174 and $13,679,441,
respectively.
8 SHAREHOLDER MEETING
The Fund held a Special Meeting of Shareholders on June 6, 2003. The items
considered at the meeting are set forth below.
ITEM 1: To elect Trustees of the Trust. The results of the vote were as
follows:
<Table>
<Caption>
NUMBER OF SHARES
--------------------------
NOMINEE FOR TRUSTEE AFFIRMATIVE WITHHOLD
-------------------------------------------------------
Jessica M. Bibliowicz 2,769,879 76,009
Donald R. Dwight 2,769,692 79,196
James B. Hawkes 2,770,502 75,386
Samuel L. Hayes, III 2,770,502 75,386
William H. Park 2,770,502 75,386
Norton H. Reamer 2,652,979 192,909
Lynn A. Stout 2,776,789 79,099
</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.
ITEM 2: To modify the investment objective of the Fund.
The results of the vote on the proposal were as follows:
<Table>
AFFIRMATIVE 2,061,561
AGAINST 76,570
ABSTAIN 91,226
BROKER NON-VOTES 616,531
</Table>
14
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.2 AS OF OCTOBER 31, 2003
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES OF EATON VANCE MUTUAL FUNDS TRUST AND SHAREHOLDERS OF EATON
VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.2:
We have audited the accompanying statement of assets and liabilities of Eaton
Vance Tax-Managed Small-Cap Growth Fund 1.2 (formally Eaton Vance Tax-Managed
Emerging Growth Fund 1.2) (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 the years ended
October 31, 2003 and 2002 and the financial highlights for the years ended
October 31, 2003 and 2002, and the period from the start of business, March 2,
2001, to October 31, 2001. 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 present
fairly, in all material respects, the financial position of Eaton Vance
Tax-Managed Small-Cap Growth Fund 1.2 at October 31, 2003, and the results of
its operations, the change 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
15
<Page>
TAX-MANAGED SMALL-CAP GROWTH PORTFOLIO AS OF OCTOBER 31, 2003
PORTFOLIO OF INVESTMENTS
COMMON STOCKS -- 94.2%
<Table>
<Caption>
SECURITY SHARES VALUE
- ---------------------------------------------------------------------------------------
AEROSPACE / DEFENSE -- 0.4%
United Defense Industries, Inc.(1) 26,300 $ 852,120
- ---------------------------------------------------------------------------------------
$ 852,120
- ---------------------------------------------------------------------------------------
AIRLINES -- 2.5%
AirTran Holdings, Inc.(1) 53,600 $ 868,856
AMR Corp.(1) 159,300 2,115,504
Continental Airlines, Inc., Class B(1) 103,200 1,971,120
Frontier Airlines, Inc.(1) 46,800 752,076
- ---------------------------------------------------------------------------------------
$ 5,707,556
- ---------------------------------------------------------------------------------------
APPAREL -- 1.1%
Carter's, Inc.(1) 62,400 $ 1,747,200
Tommy Hilfiger Corp.(1) 50,800 746,252
- ---------------------------------------------------------------------------------------
$ 2,493,452
- ---------------------------------------------------------------------------------------
AUTO AND PARTS -- 1.7%
BorgWarner, Inc. 18,300 $ 1,456,497
Keystone Automotive Industries, Inc.(1) 22,700 561,371
O'Reilly Automotive, Inc.(1) 18,300 792,207
Pep Boys - Manny, Moe & Jack (The) 53,240 1,023,805
- ---------------------------------------------------------------------------------------
$ 3,833,880
- ---------------------------------------------------------------------------------------
AUTO MANUFACTURER -- 0.5%
Wabash National Corp.(1) 46,200 $ 1,065,834
- ---------------------------------------------------------------------------------------
$ 1,065,834
- ---------------------------------------------------------------------------------------
BANKS -- 1.1%
PrivateBancorp, Inc. 13,700 $ 554,850
Santander BanCorp 29,300 730,742
W Holding Company, Inc. 50,900 1,185,461
- ---------------------------------------------------------------------------------------
$ 2,471,053
- ---------------------------------------------------------------------------------------
BANKS AND MONEY SERVICES -- 0.3%
Euronet Worldwide, Inc.(1) 45,100 $ 641,773
- ---------------------------------------------------------------------------------------
$ 641,773
- ---------------------------------------------------------------------------------------
BEVERAGES -- 0.3%
Cott Corp.(1) 27,200 $ 708,560
- ---------------------------------------------------------------------------------------
$ 708,560
- ---------------------------------------------------------------------------------------
BROADCASTING AND RADIO -- 2.9%
Salem Communications Corp., Class A(1) 3,200 $ 74,400
Sirius Satellite Radio, Inc.(1) 652,000 1,532,200
XM Satellite Radio Holdings, Inc.(1) 242,100 4,904,946
- ---------------------------------------------------------------------------------------
$ 6,511,546
- ---------------------------------------------------------------------------------------
BUILDING AND CONSTRUCTION - MISCELLANEOUS -- 0.6%
D.R. Horton, Inc. 36,600 $ 1,456,680
- ---------------------------------------------------------------------------------------
$ 1,456,680
- ---------------------------------------------------------------------------------------
BUILDING MATERIALS -- 1.4%
Ryland Group, Inc., (The) 14,200 $ 1,262,380
Standard Pacific Corp. 41,200 1,971,420
- ---------------------------------------------------------------------------------------
$ 3,233,800
- ---------------------------------------------------------------------------------------
BUSINESS SERVICES -- 1.1%
FileNET Corp.(1) 75,500 $ 2,017,360
Navigant Consulting, Inc.(1) 24,600 404,178
- ---------------------------------------------------------------------------------------
$ 2,421,538
- ---------------------------------------------------------------------------------------
BUSINESS SERVICES - MISCELLANEOUS -- 2.1%
eFunds Corp.(1) 45,185 $ 723,412
Lionbridge Technologies, Inc.(1) 132,900 1,200,087
Monster Worldwide, Inc.(1) 80,500 2,050,335
SupportSoft, Inc.(1) 68,200 817,718
- ---------------------------------------------------------------------------------------
$ 4,791,552
- ---------------------------------------------------------------------------------------
CASINOS AND GAMING -- 1.0%
Ameristar Casinos, Inc.(1) 33,500 $ 707,520
Isle of Capris Casinos, Inc.(1) 26,200 546,270
Scientific Games Corp.(1) 76,700 1,020,110
- ---------------------------------------------------------------------------------------
$ 2,273,900
- ---------------------------------------------------------------------------------------
COMMERCIAL SERVICES -- 0.9%
Costar Group, Inc.(1) 33,000 $ 1,242,450
Digitas, Inc.(1) 90,600 788,220
- ---------------------------------------------------------------------------------------
$ 2,030,670
- ---------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
16
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- ---------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT -- 1.7%
Avocent Corp.(1) 27,400 $ 1,035,720
Brightpoint, Inc.(1) 30,450 872,392
Foundry Networks, Inc.(1) 86,200 2,005,012
- ---------------------------------------------------------------------------------------
$ 3,913,124
- ---------------------------------------------------------------------------------------
COMMUNICATIONS SERVICES -- 0.1%
Per-Se Technologies, Inc.(1) 23,000 $ 312,800
- ---------------------------------------------------------------------------------------
$ 312,800
- ---------------------------------------------------------------------------------------
COMPUTER HARDWARE -- 1.4%
Electronics for Imaging, Inc.(1) 32,200 $ 872,620
Maxtor Corp.(1) 128,100 1,751,127
Network Engines, Inc.(1) 59,300 582,267
- ---------------------------------------------------------------------------------------
$ 3,206,014
- ---------------------------------------------------------------------------------------
COMPUTER PERIPHERALS -- 0.6%
Mobility Electronics, Inc.(1) 64,600 $ 626,620
Stratasys, Inc.(1) 16,000 761,600
- ---------------------------------------------------------------------------------------
$ 1,388,220
- ---------------------------------------------------------------------------------------
COMPUTER SERVICES -- 4.9%
Anteon International Corp.(1) 21,100 $ 720,354
Cognizant Technology Solutions Corp.(1) 70,500 3,199,995
Digital River, Inc.(1) 31,700 867,946
DigitalNet Holdings, Inc.(1) 91,700 2,119,187
InfoSpace, Inc.(1) 45,000 1,173,600
RADWARE Ltd.(1) 38,400 888,960
Sapient Corp.(1) 111,300 609,924
SRA International Inc., Class A(1) 12,400 540,144
WebEx Communications, Inc.(1) 41,800 923,362
- ---------------------------------------------------------------------------------------
$ 11,043,472
- ---------------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 5.6%
Advanced Digital Information Corp.(1) 163,900 $ 2,663,375
Ascential Software Corp.(1) 44,600 989,674
Computer Network Technology Corp.(1) 28,600 283,140
Corillian Corp.(1) 148,800 983,568
Eclipsys Corp.(1) 30,500 361,425
Epicor Software Corp.(1) 126,800 1,281,948
Immersion Corp.(1) 38,000 220,400
Komag, Inc.(1) 42,900 809,094
Lexar Media, Inc.(1) 107,800 $ 2,469,698
Netopia, Inc.(1) 13,800 141,036
Novell, Inc.(1) 92,000 540,040
Satyam Computer Services Ltd. 72,500 1,312,250
Sonic Solutions(1) 31,400 558,920
- ---------------------------------------------------------------------------------------
$ 12,614,568
- ---------------------------------------------------------------------------------------
DISTRIBUTION / WHOLESALE -- 0.4%
Central European Distribution Corp.(1) 22,800 $ 857,052
- ---------------------------------------------------------------------------------------
$ 857,052
- ---------------------------------------------------------------------------------------
DRUGS -- 3.1%
AtheroGenics, Inc.(1) 44,529 $ 734,283
Covance, Inc.(1) 57,000 1,483,710
EPIX Medical, Inc.(1) 34,400 636,744
Hollis-Eden Pharmaceuticals, Inc.(1) 10,400 187,304
ICN Pharmaceuticals, Inc. 49,100 948,121
Impax Laboratories, Inc.(1) 31,602 374,800
KV Pharmaceutical Co., Class A(1) 19,650 471,600
MGI Pharma, Inc.(1) 21,100 792,516
Nabi Biopharmaceuticals(1) 56,500 623,195
Onyx Pharmaceuticals, Inc.(1) 21,100 516,317
SciClone Pharmaceuticals, Inc.(1) 41,900 334,362
- ---------------------------------------------------------------------------------------
$ 7,102,952
- ---------------------------------------------------------------------------------------
ELECTRONICS - SEMICONDUCTOR EQUIPMENT -- 7.7%
ADE Corp.(1) 24,700 $ 600,210
ASE Test Ltd.(1)(2) 72,700 906,569
Asyst Technologies, Inc.(1) 63,700 1,188,005
August Technology Corp.(1) 113,200 2,196,080
Fairchild Semiconductor Interternational, Inc.(1) 70,700 1,597,820
Kopin Corp.(1) 24,900 182,517
Merix Corp.(1) 91,100 1,620,669
OmniVision Technologies, Inc.(1) 28,149 1,598,863
Sigmatel, Inc.(1) 19,500 495,300
Silicon Storage Technology, Inc.(1) 181,700 2,031,406
TTM Technologies, Inc.(1) 64,800 1,043,280
Varian Semiconductor Equipment Associates, Inc.(1) 82,200 3,974,370
- ---------------------------------------------------------------------------------------
$ 17,435,089
- ---------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
17
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- ---------------------------------------------------------------------------------------
ELECTRONICS - SEMICONDUCTORS -- 5.0%
Advanced Energy Industries, Inc.(1) 53,550 $ 1,222,546
Bell Microproducts, Inc.(1) 62,200 524,968
Cypress Semiconductor Corp.(1) 112,200 2,407,812
Intersil Corp., Class A 8,500 219,215
Lam Research Corp.(1) 157,450 4,525,113
PMC-Sierra, Inc.(1) 51,100 928,487
RF Micro Devices, Inc.(1) 135,100 1,582,021
- ---------------------------------------------------------------------------------------
$ 11,410,162
- ---------------------------------------------------------------------------------------
FINANCIAL SERVICES -- 0.9%
Bankrate, Inc.(1) 43,500 $ 664,245
First Marblehead Corp. (The)(1) 62,300 1,379,945
- ---------------------------------------------------------------------------------------
$ 2,044,190
- ---------------------------------------------------------------------------------------
FURNITURE AND APPLIANCES -- 1.2%
Cost Plus, Inc.(1) 23,400 $ 1,073,358
Williams-Sonoma, Inc.(1) 46,100 1,628,713
- ---------------------------------------------------------------------------------------
$ 2,702,071
- ---------------------------------------------------------------------------------------
HEALTH SERVICES -- 3.3%
Davita, Inc.(1) 32,700 $ 1,147,770
Kindred Healthcare, Inc.(1) 47,300 1,950,652
Select Medical Corp.(1) 127,600 4,283,532
- ---------------------------------------------------------------------------------------
$ 7,381,954
- ---------------------------------------------------------------------------------------
HOTELS -- 0.7%
Choice Hotels International, Inc.(1) 21,300 $ 703,326
Four Seasons Hotels, Inc. 15,000 826,950
- ---------------------------------------------------------------------------------------
$ 1,530,276
- ---------------------------------------------------------------------------------------
INFORMATION SERVICES -- 0.2%
Ixia(1) 28,400 $ 340,800
- ---------------------------------------------------------------------------------------
$ 340,800
- ---------------------------------------------------------------------------------------
INSURANCE -- 1.0%
Max Re Capital Ltd. 25,700 $ 474,936
Molina Healthcare, Inc.(1) 63,136 1,761,494
- ---------------------------------------------------------------------------------------
$ 2,236,430
- ---------------------------------------------------------------------------------------
INTERNET - SOFTWARE -- 0.1%
Tumbleweed Communications Corp.(1) 44,600 $ 282,764
- ---------------------------------------------------------------------------------------
$ 282,764
- ---------------------------------------------------------------------------------------
INTERNET CONTENT - ENTERTAINMENT -- 1.4%
Ask Jeeves, Inc.(1) 70,200 $ 1,345,032
Autobytel, Inc.(1) 101,200 1,057,540
CNET Networks, Inc.(1) 97,200 791,208
- ---------------------------------------------------------------------------------------
$ 3,193,780
- ---------------------------------------------------------------------------------------
INVESTMENT SERVICES -- 0.9%
Affiliated Managers Group, Inc.(1) 5,800 $ 420,500
Knight Trading Group, Inc.(1) 110,600 1,530,704
- ---------------------------------------------------------------------------------------
$ 1,951,204
- ---------------------------------------------------------------------------------------
MACHINERY -- 0.4%
Joy Global, Inc.(1) 50,900 $ 970,154
- ---------------------------------------------------------------------------------------
$ 970,154
- ---------------------------------------------------------------------------------------
MANUFACTURING - DIVERSIFIED -- 0.3%
Jacuzzi Brands, Inc.(1) 97,200 $ 685,260
- ---------------------------------------------------------------------------------------
$ 685,260
- ---------------------------------------------------------------------------------------
MEDICAL - BIOMED / GENETICS -- 1.4%
Invitrogen Corp.(1) 23,800 $ 1,513,442
Martek Biosciences Corp.(1) 33,500 1,621,735
- ---------------------------------------------------------------------------------------
$ 3,135,177
- ---------------------------------------------------------------------------------------
MEDICAL - HOSPITALS -- 0.3%
United Surgical Partners International, Inc.(1) 22,800 $ 687,648
- ---------------------------------------------------------------------------------------
$ 687,648
- ---------------------------------------------------------------------------------------
MEDICAL PRODUCTS -- 4.8%
ALARIS Medical Systems, Inc.(1) 85,350 $ 1,323,779
Align Technology, Inc.(1) 31,500 485,730
Dade Behring Holdings, Inc.(1) 28,000 855,960
Hanger Orthopedic Group, Inc.(1) 30,900 526,845
I-Flow Corp.(1) 92,900 1,351,695
I-STAT Corp.(1) 41,300 486,101
Kyphon, Inc.(1) 157,600 4,341,880
</Table>
See notes to financial statements.
18
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- ---------------------------------------------------------------------------------------
MEDICAL PRODUCTS (CONTINUED)
Regeneration Technologies, Inc.(1) 44,900 $ 538,800
Wright Medical Group, Inc.(1) 33,900 994,965
- ---------------------------------------------------------------------------------------
$ 10,905,755
- ---------------------------------------------------------------------------------------
METALS - INDUSTRIAL -- 0.8%
Century Aluminum Company(1) 22,000 $ 362,120
Formation Capital Corp.(1)(2)(3)(4) 400,000 99,985
Southern Peru Copper Corp. 24,000 683,040
Steel Dynamics, Inc.(1) 34,900 650,187
- ---------------------------------------------------------------------------------------
$ 1,795,332
- ---------------------------------------------------------------------------------------
METALS - STEEL -- 0.2%
Reliance Steel & Aluminum Co. 16,300 $ 467,810
- ---------------------------------------------------------------------------------------
$ 467,810
- ---------------------------------------------------------------------------------------
OIL AND GAS - EXPLORATION AND PRODUCTION -- 0.5%
Patina Oil & Gas Corp. 25,200 $ 1,062,936
- ---------------------------------------------------------------------------------------
$ 1,062,936
- ---------------------------------------------------------------------------------------
PAPER AND FOREST PRODUCTS -- 1.6%
Louisiana Pacific Corp. 142,100 $ 2,702,742
Universal Forest Products, Inc. 26,700 790,320
- ---------------------------------------------------------------------------------------
$ 3,493,062
- ---------------------------------------------------------------------------------------
PHOTO EQUIPMENT AND SUPPLIES -- 0.4%
Concord Camera Corp.(1) 68,200 $ 875,688
- ---------------------------------------------------------------------------------------
$ 875,688
- ---------------------------------------------------------------------------------------
RETAIL -- 3.7%
Linens 'n Things, Inc.(1) 35,300 $ 1,042,056
Select Comfort Corp.(1) 145,300 4,547,890
Tractor Supply Co.(1) 66,800 2,799,588
- ---------------------------------------------------------------------------------------
$ 8,389,534
- ---------------------------------------------------------------------------------------
RETAIL - APPAREL / SHOE -- 0.3%
AnnTaylor Stores Corp.(1) 20,600 $ 737,480
- ---------------------------------------------------------------------------------------
$ 737,480
- ---------------------------------------------------------------------------------------
RETAIL - DISCOUNT -- 0.7%
Fred's, Inc. 44,100 $ 1,661,688
- ---------------------------------------------------------------------------------------
$ 1,661,688
- ---------------------------------------------------------------------------------------
RETAIL - ELECTRONICS -- 0.5%
Guitar Center, Inc.(1) 35,000 $ 1,139,250
- ---------------------------------------------------------------------------------------
$ 1,139,250
- ---------------------------------------------------------------------------------------
RETAIL - FOOD AND DRUG -- 0.4%
Drugstore.Com, Inc.(1) 16,900 $ 112,892
Rite Aid Corp.(1) 135,700 777,561
- ---------------------------------------------------------------------------------------
$ 890,453
- ---------------------------------------------------------------------------------------
RETAIL - SPECIALTY AND APPAREL -- 3.8%
Aeropostale, Inc.(1) 69,900 $ 2,156,415
Bebe Stores, Inc.(1) 14,500 404,550
Hot Topic, Inc.(1) 62,400 1,791,504
The Finish Line(1) 57,700 1,766,774
The Sports Authority, Inc.(1) 15,000 558,000
Tweeter Home Entertainment Group, Inc.(1) 14,150 118,153
Urban Outfitters, Inc.(1) 57,400 1,914,864
- ---------------------------------------------------------------------------------------
$ 8,710,260
- ---------------------------------------------------------------------------------------
RETAIL - WHOLESALE DISCOUNT -- 0.4%
BJ's Wholesale Club, Inc.(1) 34,100 $ 876,029
- ---------------------------------------------------------------------------------------
$ 876,029
- ---------------------------------------------------------------------------------------
RETAILING -- 0.5%
Claire's Stores, Inc. 31,600 $ 1,222,920
- ---------------------------------------------------------------------------------------
$ 1,222,920
- ---------------------------------------------------------------------------------------
SCHOOLS -- 1.1%
Career Education Corp.(1) 15,900 $ 851,445
Sylvan Learning Systems, Inc.(1) 56,600 1,601,780
- ---------------------------------------------------------------------------------------
$ 2,453,225
- ---------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT -- 1.3%
LTX Corp.(1) 106,000 $ 1,514,740
Mattson Technology, Inc.(1) 99,900 1,419,579
- ---------------------------------------------------------------------------------------
$ 2,934,319
- ---------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
19
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- ---------------------------------------------------------------------------------------
SEMICONDUCTORS -- 0.6%
Power Integrations, Inc.(1) 36,100 $ 1,257,002
- ---------------------------------------------------------------------------------------
$ 1,257,002
- ---------------------------------------------------------------------------------------
SOFTWARE -- 1.6%
Roxio, Inc.(1) 61,800 $ 629,742
Transaction Systems Architects, Inc.(1) 138,400 2,768,000
Wind River Systems, Inc.(1) 35,600 238,520
- ---------------------------------------------------------------------------------------
$ 3,636,262
- ---------------------------------------------------------------------------------------
SPECIALTY RETAIL -- 0.7%
Sotheby's Holdings, Inc.(1) 20,800 $ 221,520
Tuesday Morning Corp.(1) 42,700 1,361,703
- ---------------------------------------------------------------------------------------
$ 1,583,223
- ---------------------------------------------------------------------------------------
TECHNOLOGY - INFORMATION SERVICES -- 0.5%
Documentum, Inc.(1) 38,400 $ 1,142,400
- ---------------------------------------------------------------------------------------
$ 1,142,400
- ---------------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT -- 1.8%
Comtech Telecommunications Corp.(1) 40,100 $ 1,180,945
SeaChange International, Inc.(1) 47,800 736,120
Sierra Wireless, Inc.(1) 90,300 1,512,525
Sonus Networks, Inc.(1) 83,300 683,893
- ---------------------------------------------------------------------------------------
$ 4,113,483
- ---------------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES -- 3.3%
NTL, Inc.(1) 63,800 $ 3,938,374
Time Warner Telecom Inc., Class A(1) 112,800 1,167,480
Western Wireless Corp., Class A(1) 78,700 1,526,780
Wireless Facilities, Inc.(1) 51,000 876,180
- ---------------------------------------------------------------------------------------
$ 7,508,814
- ---------------------------------------------------------------------------------------
TELEPHONE UTILITIES -- 0.2%
Philippine Long Distance Telephone Co.(1) 31,600 $ 436,080
- ---------------------------------------------------------------------------------------
$ 436,080
- ---------------------------------------------------------------------------------------
TRANSPORTATION - TRUCK -- 2.6%
J.B. Hunt Transport Services, Inc.(1) 90,000 $ 2,284,200
Overnite Corp.(1) 48,400 1,072,544
Yellow Corp.(1) 77,600 2,549,160
- ---------------------------------------------------------------------------------------
$ 5,905,904
- ---------------------------------------------------------------------------------------
WIRELESS COMMUNICATION SERVICES -- 1.5%
NII Holdings, Inc., Class B(1) 43,200 $ 3,330,288
- ---------------------------------------------------------------------------------------
$ 3,330,288
- ---------------------------------------------------------------------------------------
TOTAL COMMON STOCKS (IDENTIFIED COST $173,608,400) $ 213,448,272
- ---------------------------------------------------------------------------------------
</Table>
PRIVATE PLACEMENTS AND SPECIAL WARRANTS -- 0.1%
<Table>
<Caption>
SECURITY SHARES VALUE
- ---------------------------------------------------------------------------------------
METALS - GOLD -- 0.1%
Nevada Pacific Mining Co.(1)(3)(4) 80,000 $ 56,000
Western Exploration and Development, Ltd.(1)(3)(4) 600,000 180,000
- ---------------------------------------------------------------------------------------
$ 236,000
- ---------------------------------------------------------------------------------------
TOTAL PRIVATE PLACEMENTS AND
SPECIAL WARRANTS
(IDENTIFIED COST $560,000) $ 236,000
- ---------------------------------------------------------------------------------------
</Table>
SHORT TERM INVESTMENTS -- 0.7%
<Table>
<Caption>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
- ---------------------------------------------------------------------------------------
Investors Bank & Trust Company
Time Deposit, 1.08%, 11/3/03 $ 1,695 $ 1,695,000
- ---------------------------------------------------------------------------------------
TOTAL SHORT TERM INVESTMENTS
(AT AMORTIZED COST, $1,695,000) $ 1,695,000
- ---------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
20
<Page>
COMMERCIAL PAPER -- 7.5%
<Table>
<Caption>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
- ---------------------------------------------------------------------------------------
American Express Credit Corp., 1.03%, 11/3/03 $ 4,000 $ 3,999,771
Cortez Capital Corp., 1.07%, 11/17/03 2,500 2,498,811
Midst Corp., (Federal Credit) , 1.04%, 11/21/03 4,000 3,997,689
Old Line Funding Corp. , 1.06%, 11/17/03 2,438 2,436,851
Yorktown Capital LLC, 1.04%, 11/7/03 4,000 3,999,307
- ---------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(AT AMORTIZED COST, $16,932,429) $ 16,932,429
- ---------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 102.5%
(IDENTIFIED COST $192,795,829) $ 232,311,701
- ---------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- (2.5)% $ (5,609,332)
- ---------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 226,702,369
- ---------------------------------------------------------------------------------------
</Table>
(1) Non-income producing security.
(2) Foreign security.
(3) Restricted security.
(4) Security valued at fair value using methods determined in good faith by or
at the direction of the Trustees.
See notes to financial statements.
21
<Page>
TAX-MANAGED SMALL-CAP 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, $192,795,829) $ 232,311,701
Cash 714
Receivable for investments sold 9,387,746
Interest and dividends receivable 6,120
Tax reclaim receivable 232
- ---------------------------------------------------------------------------------------
TOTAL ASSETS $ 241,706,513
- ---------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased $ 14,963,909
Payable to affiliate for Trustees' fees 997
Accrued expenses 39,238
- ---------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 15,004,144
- ---------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $ 226,702,369
- ---------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital contributions and
withdrawals $ 187,186,497
Net unrealized appreciation (computed on the
basis of identified cost) 39,515,872
- ---------------------------------------------------------------------------------------
TOTAL' $ 226,702,369
- ---------------------------------------------------------------------------------------
</Table>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
OCTOBER 31, 2003
<Table>
INVESTMENT INCOME
Dividends (net of foreign taxes, $6,587) $ 273,847
Interest 146,919
- ---------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 420,766
- ---------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 1,279,944
Trustees' fees and expenses 11,680
Custodian fee 178,788
Legal and accounting services 30,028
Miscellaneous 9,908
- ---------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,510,348
- ---------------------------------------------------------------------------------------
NET INVESTMENT LOSS $ (1,089,582)
- ---------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 27,727,579
- ---------------------------------------------------------------------------------------
NET REALIZED GAIN $ 27,727,579
- ---------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation)
-- Investments (identified cost basis) $ 23,194,183
- ---------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 23,194,183
- ---------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 50,921,762
- ---------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 49,832,180
- ---------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
22
<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 $ (1,089,582) $ (1,383,543)
Net realized gain (loss) 27,727,579 (70,962,475)
Net change in unrealized
appreciation (depreciation) 23,194,183 7,866,744
- ------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 49,832,180 $ (64,479,274)
- ------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 26,027,907 $ 60,630,989
Withdrawals (58,232,046) (94,915,340)
- ------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $ (32,204,139) $ (34,284,351)
- ------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 17,628,041 $ (98,763,625)
- ------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 209,074,328 $ 307,837,953
- ------------------------------------------------------------------------------------------
AT END OF YEAR $ 226,702,369 $ 209,074,328
- ------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
23
<Page>
SUPPLEMENTARY DATA
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
---------------------------- PERIOD ENDED
2003 2002 OCTOBER 31, 2001(1)
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.73% 0.73% 0.70%(2)
Expenses after custodian fee reduction 0.73% 0.73% 0.68%(2)
Net investment loss (0.53)% (0.49)% (0.48)%(2)
Portfolio Turnover 248% 131% 38%
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 27.24% (22.16)% --
- -----------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 226,702 $ 209,074 $ 307,838
- -----------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, March 1, 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.
24
<Page>
TAX-MANAGED SMALL-CAP GROWTH PORTFOLIO AS OF OCTOBER 31, 2003
NOTES TO FINANCIAL STATEMENTS
1 SIGNIFICANT ACCOUNTING POLICIES
Tax-Managed Small-Cap 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 equity
securities of emerging growth companies. The Declaration of Trust permits the
Trustees to issue interests in the Portfolio. At October 31, 2003, the Eaton
Vance Tax-Managed Small-Cap Growth Fund 1.2 held an approximate 18.8%
interest in the Portfolio and two other investors owned an interest greater
than 10% that aggregated 81.2%. The following is a summary of significant
accounting policies consistently followed by the Portfolio in the preparation
of its financial statements. The policies are in conformity with accounting
principles generally accepted in the United States of America.
A INVESTMENT VALUATION -- Marketable securities, including options, that are
listed on foreign or U.S. securities exchanges are valued at closing sale
prices on the exchange where such securities are principally traded.
Marketable securities listed in the NASDAQ National Market System are valued
at the NASDAQ official closing price. Unlisted or listed securities for which
closing sale prices are not available are generally valued at the mean
between the latest bid and asked prices. Futures positions on securities or
currencies are generally valued at closing settlement prices. Short-term debt
securities with a remaining maturity of 60 days or less are valued at
amortized cost, which approximates fair value. Other fixed income and debt
securities, including listed securities and securities for which price
quotations are available, will normally be valued on the basis of valuations
furnished by a pricing service. Investments for which valuations or market
quotations are unavailable are valued at fair value using methods determined
in good faith by or at the direction of the Trustees.
B INCOME -- Dividend income is recorded on the ex-dividend date for dividends
received in cash and/or securities. However, if the ex-dividend date has
passed, certain dividends from foreign securities are recorded as the
Portfolio is informed of the ex-dividend date. Interest income is recorded on
the accrual basis.
C INCOME TAXES -- The Portfolio is treated as a partnership for federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes on its share of taxable
income. Since the Portfolio's investors include regulated investment
companies that invest all or substantially all of their assets in the
Portfolio, the Portfolio normally must satisfy the applicable source of
income and diversification requirements (under the Internal Revenue Code) in
order for its investors to satisfy them. The Portfolio will allocate at least
annually among its investors, each investor's distributive share of the
Portfolio's net investment income, net realized capital gains, and any other
items of income, gain, loss, deduction or credit.
D FINANCIAL FUTURES CONTRACTS -- Upon entering a financial futures contract,
the Portfolio is required to deposit either in cash or securities an amount
(initial margin) equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by the Portfolio (variation margin) each day, dependent on daily
fluctuations in the value of the underlying security, and are recorded for
book purposes as unrealized gains or losses by the Portfolio. The Portfolio's
investment in financial futures contracts is designed to hedge against
anticipated future changes in price of current or anticipated Portfolio
positions. Should prices move unexpectedly, the Portfolio may not achieve the
anticipated benefits of the financial futures contracts and may realize a
loss.
E 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.
25
<Page>
F EXPENSE REDUCTION -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolio. Pursuant to the custodian agreement, IBT receives
a fee reduced by credits which are determined based on the average daily cash
balances the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are reported as a reduction of
expenses on the Statement of Operations.
G SECURITIES SOLD SHORT -- The Portfolio may sell a security short if it owns
at least an equal amount of the security sold short or another security
exchangeable for an equal amount of the security sold short in anticipation
of a decline in the market price of the securities or in order to hedge
portfolio positions. The Portfolio will generally borrow the security sold in
order to make delivery to the buyer. Upon executing the transaction, the
Portfolio records the proceeds as deposits with brokers on the Statement of
Assets and Liabilities and establishes an offsetting payable for securities
sold short for the securities due on settlement. The proceeds are retained by
the broker as collateral for the short position. The liability is
marked-to-market on a daily basis and the Portfolio is required to pay the
lending broker any dividend or interest income earned while the short
position is open. A gain or loss is recorded when the security is delivered
to the broker. The Portfolio may recognize a loss on the transaction if the
market value of the securities sold increases before the securities are
delivered.
H 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.
I 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 5/96th of 1% (equal to
0.625% annually) of average daily net assets of the Portfolio up to $500
million, and at reduced rates as daily net assets exceed that level. For the
year ended October 31, 2003, the advisory fee amounted to $1,279,944. 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 $481,564,189 and $517,660,598, respectively, for the year ended
October 31, 2003.
4 FEDERAL INCOME TAX BASIS OF UNREALIZED APPRECIATION (DEPRECIATION)
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 $ 193,150,417
--------------------------------------------------------------------------
Gross unrealized appreciation $ 40,851,621
Gross unrealized depreciation (1,690,337)
--------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 39,161,284
--------------------------------------------------------------------------
</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 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.
26
<Page>
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 RESTRICTED SECURITIES
At October 31, 2003, the Portfolio owned the following securities
(representing 0.15% of net assets) which were restricted as to public resale
and not registered under the Securities Act of 1933. The fair value is
determined using methods determined in good faith by or at the direction of
the Trustees.
<Table>
<Caption>
DATE OF
DESCRIPTION ACQUISITION SHARES/FACE COST FAIR VALUE
-------------------------------------------------------------------------------------------------------
COMMON STOCKS
Formation Capital Corp. 400,000 $ 88,260 $ 99,985
-------------------------------------------------------------------------------------------------------
$ 88,260 $ 99,985
-------------------------------------------------------------------------------------------------------
PRIVATE PLACEMENTS AND SPECIAL WARRANTS
Nevada Pacific Mining Co. 80,000 $ 80,000 $ 56,000
Western Exploration and Development, Ltd. 600,000 480,000 180,000
-------------------------------------------------------------------------------------------------------
$ 560,000 $ 236,000
-------------------------------------------------------------------------------------------------------
</Table>
8 INTERESTHOLDER MEETING
The Portfolio held a Special Meeting of Interestholders on June 6, 2003. The
items considered at the meeting are set forth below. Results are rounded to
the nerest whole number.
ITEM(1): To elect Trustees of the Portfolio. 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.
ITEM 2: To modify the investment objective of the Portfolio.
The results of the vote on the proposal were as follows:
<Table>
AFFIRMATIVE 95%
AGAINST 1%
ABSTAIN 1%
BROKER NON-VOTES 3%
</Table>
27
<Page>
TAX-MANAGED SMALL-CAP GROWTH PORTFOLIO AS OF OCTOBER 31, 2003
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS OF TAX-MANAGED SMALL-CAP GROWTH PORTFOLIO:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Tax-Managed Small-Cap Growth Portfolio (the
Portfolio) (formerly Tax-Managed Emerging Growth 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 years ended October 31, 2003 and
2002 and the supplementary data for the years ended October 31, 2003 and 2002
and the period from the start of business, March 1, 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 present fairly,
in all material respects, the financial position of the Tax-Managed Small-Cap
Growth Portfolio at October 31, 2003, the results of its operations, 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
28
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.2
MANAGEMENT AND ORGANIZATION
FUND MANAGEMENT. The Trustees of Eaton Vance Mutual Funds Trust (the Trust) and
Tax-Managed Small-Cap 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
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
DATE OF BIRTH THE PORTFOLIO SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD
- ---------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE(S)
Jessica M. Bibliowicz Trustee Since 1998 Chairman, President and 192 Director of National
11/28/59 Chief Executive Officer Financial Partners
of National 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 Trustee of Chairman, President and 194 Director of EVC
11/9/41 the Trust Chief Executive Officer
since 1991; of BMR, EVC, EVM and EV;
of the Director of EV; Vice
Portfolio President and Director of
since 1998 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 and the
Portfolio.
<Caption>
POSITION(S) TERM OF NUMBER OF PORTFOLIOS
WITH THE OFFICE AND IN FUND COMPLEX
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
DATE OF BIRTH THE PORTFOLIO SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD
- ---------------------------------------------------------------------------------------------------------------------------------
NONINTERESTED TRUSTEE(S)
Samuel L. Hayes, III Trustee Trustee of Jacob H. Schiff 194 Director of Tiffany & Co.
2/23/35 the Trust Professor of (specialty retailer) and
since 1986; Investment Banking Telect, Inc.
of the Emeritus, Harvard (telecommunication services
Portfolio University Graduate company)
since 1998 School of Business
Administration.
William H. Park Trustee Since 2003 President and Chief 191 None
9/19/47 Executive 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>
29
<Page>
<Table>
<Caption>
POSITION(S) TERM OF NUMBER OF PORTFOLIOS
WITH THE OFFICE AND IN FUND COMPLEX
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
DATE OF BIRTH THE PORTFOLIO SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD
- ---------------------------------------------------------------------------------------------------------------------------------
NONINTERESTED TRUSTEE(S) (CONTINUED)
Norton H. Reamer Trustee Trustee of President and Chief 194 None
9/21/35 the Trust Executive Officer of
since 1986; Asset Management Finance
of the Corp. (a specialty
Portfolio finance company serving
since 1998 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, 194 None
9/14/57 University of 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 PORTFOLIOS SERVICE DURING PAST FIVE YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
Thomas E. Faust Jr. President of the Trust Since 2002 Executive Vice President of EVM, BMR, EVC
5/31/58 and 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 of the Trust 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 of the Trust 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 of the Trust 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 of the Trust registered investment companies managed by EVM or
BMR.
Duncan W. Richardson Vice President of Vice President Senior Vice President and Chief Equity Investment
10/26/57 the Trust, President of of the Trust Officer of EVM and BMR. Officer of 41 registered
the Portfolio since 2001; investment companies managed by EVM or BMR.
President of the
Portfolio since
2002
Walter A. Row, III Vice President Since 2001 Director of Equity Research and a Vice President
7/20/57 of the Trust 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, Portfolio
8/21/54 of the Trust Manager and Equity Analyst for State Street Global
Advisers (1980-1999). Officer of 24 registered
investment companies managed by EVM or BMR.
</Table>
30
<Page>
<Table>
<Caption>
POSITION(S) TERM OF
WITH THE OFFICE AND
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH THE PORTFOLIOS SERVICE DURING PAST FIVE YEARS
- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES (CONTINUED)
Susan Schiff Vice President Since 2002 Vice President of EVM and BMR. Officer of 26
3/13/61 of the Trust registered investment companies managed by EVM or
BMR.
Toni Y. Shimura Vice President Since 2003 Vice President of EVM and BMR. Previously,
2/3/52 of the Portfolio Senior Vice President and Portfolio Manager
with Massachusetts Financial Services Company
(1993-2002). Officer of 3 registered
investment companies managed by EVM and BMR.
Alan R. Dynner Secretary Secretary of the Vice President, Secretary and Chief Legal Officer
10/10/40 Trust since 1997; of BMR, EVM, EVD, EV and EVC. Officer of 194
of the Portfolio registered investment companies managed by EVM and
since 1998 BMR.
Michelle A. Alexander Treasurer of Since 2002(2) Vice President of EVM and BMR. Chief Financial
10/10/40 the Portfolio 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 85 registered 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
4/1/45 registered investment companies managed by EVM or
BMR.
</Table>
(1) Includes both master feeder and feeder funds in a master-feeder structure.
(2) Prior to 2002, Ms. Alexander 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.
31
<Page>
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<Page>
This Page Intentionally Left Blank
<Page>
INVESTMENT ADVISER OF TAX-MANAGED SMALL-CAP GROWTH PORTFOLIO
BOSTON MANAGEMENT AND RESEARCH
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
ADMINISTRATOR OF EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.2
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 SMALL-CAP GROWTH FUND 1.2
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>
1087-12/03 MGSRC1.2
<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 SMALL-CAP
GROWTH FUND 1.2)
By: /S/ Thomas E. Faust
-------------------
Thomas E. Faust
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
-------------------
Thomas E. Faust
President
Date: December 16, 2003
-----------------