<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 1.1
[PHOTO IMAGE]
[PHOTO IMAGE]
<Page>
EATON VANCE FUNDS
EATON VANCE MANAGEMENT
BOSTON MANAGEMENT AND RESEARCH
EATON VANCE DISTRIBUTORS, INC.
PRIVACY NOTICE
The Eaton Vance organization is committed to ensuring your financial
privacy. This notice is being sent to comply with privacy regulations of
the Securities and Exchange Commission. Each of the above financial
institutions has in effect the following policy with respect to nonpublic
personal information about its customers:
- Only such information received from you, through application forms or
otherwise, and information about your Eaton Vance fund transactions will
be collected.
- None of such information about you (or former customers) will be
disclosed to anyone, except as permitted by law (which includes
disclosure to employees necessary to service your account).
- Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the
confidentiality of such information.
For more information about Eaton Vance's privacy policies,
call: 1-800-262-1122.
----------
IMPORTANT NOTICE
REGARDING DELIVERY OF
SHAREHOLDER DOCUMENTS
The Securities and Exchange Commission permits funds to deliver only one
copy of shareholder documents, including prospectuses, proxy statements and
shareholder reports, to fund investors with multiple accounts at the same
residential or post office box address. This practice is often called
"householding" and it helps eliminate duplicate mailings to shareholders.
EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR
DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL
ADVISER, OTHERWISE.
If you would prefer that your Eaton Vance documents not be householded,
please contact Eaton Vance at 1-800-262-1122, or contact your financial
adviser.
Your instructions that householding not apply to delivery of your Eaton
Vance documents will be effective within 30 days of receipt by Eaton Vance
or your financial adviser.
From time to time, funds are required to vote proxies related to the securities
held by the funds. The Eaton Vance Funds or their underlying Portfolios vote
proxies according to a set of policies and procedures approved by the Funds' and
Portfolios' Boards. You may obtain a description of these policies and
procedures without charge, upon request, by calling 1-800-262-1122. This
description is also available on the Securities and Exchange Commission's
website at http://www.sec.gov.
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.1 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 1.1, Class A shares, had a total
return of 26.38% during the year ended October 31, 2003. That return was the
result of an increase in net asset value per share (NAV) from $7.62 on October
31, 2002, to $9.63 on October 31, 2003.1 Class B shares had a total return of
25.38% for the same period, the result of an increase in NAV from $7.33 to
$9.19.(1) Class C shares had a total return of 25.31% for the same period, the
result of an increase in NAV from $7.31 to $9.16.1 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>
MANAGEMENT DISCUSSION
AN INTERVIEW WITH TONI SHIMURA, VICE PRESIDENT AND PORTFOLIO MANAGER OF
TAX-MANAGED SMALL-CAP GROWTH PORTFOLIO
[PHOTO 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 POSITION+
By total net assets
[CHART]
<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 26.38% 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 on 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.
* It is not possible to invest directly in an Index.
[SIDENOTE]
THE VIEWS EXPRESSED IN THIS REPORT ARE THOSE OF THE PORTFOLIO MANAGER AND ARE
CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER
CONDITIONS, AND EATON VANCE DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS.
THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE INVESTMENT
DECISIONS FOR AN EATON VANCE FUND ARE BASED ON MANY FACTORS, MAY NOT BE RELIED
ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY EATON VANCE FUND.
4
<Page>
PERFORMANCE
[CHART]
EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.1- CLASS A
Inception: 9/25/97
<Table>
<Caption>
FUND FUND S&P SMALLCAP
VALUE AT VALUE WITH 600
DATE NAV SALES CHARGE INDEX
- ---------------------------------------------------------
9/30/1997 10,000 9425 10,000
10/31/1997 9,682 9128.4 9,568
11/30/1997 9,523 8978.44 9,499
12/31/1997 9,930 9362.7 9,691
1/31/1998 9,811 9250.23 9,502
2/28/1998 10,616 10009.37 10,367
3/31/1998 11,044 10412.37 10,763
4/30/1998 11,113 10477.97 10,826
5/31/1998 10,358 9765.7 10,253
6/30/1998 10,885 10262.42 10,283
7/31/1998 10,119 9540.77 9,496
8/31/1998 8,151 7685.1 7,663
9/30/1998 8,996 8481.72 8,133
10/31/1998 9,404 8865.98 8,511
11/30/1998 10,040 9465.79 8,990
12/31/1998 11,113 10477.97 9,564
1/31/1999 11,153 10515.46 9,444
2/28/1999 10,239 9653.23 8,593
3/31/1999 10,606 10000 8,704
4/30/1999 10,755 10140.58 9,279
5/31/1999 10,984 10356.14 9,505
6/30/1999 11,909 11227.74 10,046
7/31/1999 11,789 11115.28 9,957
8/31/1999 11,759 11087.16 9,519
9/30/1999 12,266 11565.13 9,559
10/31/1999 13,032 12286.78 9,535
11/30/1999 14,245 13430.18 9,934
12/31/1999 16,272 15342.08 10,750
1/31/2000 15,875 14967.2 10,417
2/29/2000 19,225 18125.58 11,812
3/31/2000 19,076 17985 11,376
4/30/2000 16,928 15960.64 11,181
5/31/2000 15,905 14995.31 10,849
6/30/2000 17,763 16747.89 11,491
7/31/2000 16,461 15520.15 11,209
8/31/2000 18,439 17385.19 12,202
9/30/2000 17,634 16626.05 11,870
10/31/2000 16,392 15454.54 11,944
11/30/2000 13,181 12427.36 10,701
12/31/2000 14,503 13673.85 12,019
1/31/2001 14,732 13889.41 12,534
2/28/2001 12,127 11433.93 11,769
3/31/2001 10,527 9925.02 11,229
4/30/2001 12,217 11518.27 12,085
5/31/2001 12,356 11649.48 12,317
6/30/2001 12,455 11743.2 12,768
7/31/2001 11,581 10918.46 12,555
8/31/2001 10,726 10112.46 12,268
9/30/2001 8,807 8303.65 10,610
10/31/2001 9,781 9222.12 11,176
11/30/2001 10,606 10000 11,993
12/31/2001 11,103 10468.6 12,805
1/31/2002 10,616 10009.37 12,916
2/28/2002 9,881 9315.84 12,694
3/31/2002 10,596 9990.63 13,697
4/30/2002 10,080 9503.28 14,084
5/31/2002 9,642 9090.91 13,501
6/30/2002 8,857 8350.51 12,803
7/31/2002 7,674 7235.24 10,995
8/31/2002 7,813 7366.45 11,099
9/30/2002 7,326 6907.22 10,420
10/31/2002 7,575 7141.52 10,753
11/30/2002 8,101 7638.24 11,313
12/31/2002 7,594 7160.26 10,931
1/31/2003 7,505 7075.91 10,556
2/28/2003 7,276 6860.36 10,218
3/31/2003 7,326 6907.22 10,298
4/30/2003 7,813 7366.45 11,134
5/31/2003 8,390 7910.03 12,032
6/30/2003 8,400 7919.4 12,344
7/31/2003 8,857 8350.51 12,986
8/31/2003 9,304 8772.26 13,618
9/30/2003 8,807 8303.65 13,218
10/31/2003 9,573 9025.3 14,364
</Table>
<Table>
<Caption>
PERFORMANCE** CLASS A CLASS B CLASS C
---------------------------------------------------------------------------
Average Annual Total Returns
(at net asset value)
One Year 26.38% 25.38% 25.31%
Five Years 0.36 -0.43 -0.45
Life of Fund+ -0.62 -1.38 -1.43
SEC Average Annual Total Returns
(including sales charge or
applicable CDSC)
One Year 19.18% 20.38% 24.31%
Five Years -0.83 -0.83 -0.45
Life of Fund+ -1.58 -1.38 -1.43
</Table>
+Inception Dates - Class A: 9/25/97; Class B: 9/29/97; Class C:9/29/97
* Source: Thomson Financial. Investment operations commenced 9/25/97. 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. An investment in the Fund's Class B
shares on 9/29/97 at net asset value would have had a value of $9,190 on
October 31, 2003. An investment in the Fund's Class C shares on 9/29/97 at
net asset value would have had a value of $9,160 on October 31, 2003. 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 return does 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 FIVE YEARS LIFE OF FUND
Return Before Taxes 26.38% 0.36% -0.62%
Return After Taxes on Distributions 26.38% 0.36% -0.62%
Return After Taxes on Distributions
and Sale of Fund Shares 17.15% 0.30% -0.52%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS A)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 19.18% -0.83% -1.58%
Return After Taxes on Distributions 19.18% -0.83% -1.58%
Return After Taxes on Distributions
and Sale of Fund Shares 12.47% -0.70% -1.33%
</Table>
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE YEAR ENDED OCTOBER 31, 2003)
RETURNS AT NET ASSET VALUE (NAV) (CLASS B)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 25.38% -0.43% -1.38%
Return After Taxes on Distributions 25.38% -0.43% -1.38%
Return After Taxes on Distributions
and Sale of Fund Shares 16.49% -0.36% -1.16%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS B)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 20.38% -0.83% -1.38%
Return After Taxes on Distributions 20.38% -0.83% -1.38%
Return After Taxes on Distributions
and Sale of Fund Shares 13.24% -0.70% -1.16%
</Table>
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE YEAR ENDED OCTOBER 31, 2003)
RETURNS AT NET ASSET VALUE (NAV) (CLASS C)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 25.31% -0.45% -1.43%
Return After Taxes on Distributions 25.31% -0.45% -1.43%
Return After Taxes on Distributions
and Sale of Fund Shares 16.45% -0.38% -1.21%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS C)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 24.31% -0.45% -1.43%
Return After Taxes on Distributions 24.31% -0.45% -1.43%
Return After Taxes on Distributions
and Sale of Fund Shares 15.80% -0.38% -1.21%
</Table>
Class A commenced operations on 9/25/97. Class B and Class C commenced
operations on 9/29/97. 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 1.1 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, $131,389,825) $ 159,286,556
Receivable for Fund shares sold 8,702
- ----------------------------------------------------------------------------------------
TOTAL ASSETS $ 159,295,258
- ----------------------------------------------------------------------------------------
LIABILITIES
Payable for Fund shares redeemed $ 435,795
Payable to affiliate for distribution and service fees 32,420
Payable to affiliate for Trustees' fees 300
Accrued expenses 113,095
- ----------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 581,610
- ----------------------------------------------------------------------------------------
NET ASSETS $ 158,713,648
- ----------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Paid-in capital $ 286,942,559
Accumulated net realized loss from Portfolio (computed on
the basis of identified cost) (156,125,642)
Net unrealized appreciation from Portfolio (computed on the basis of
identified cost) 27,896,731
- ----------------------------------------------------------------------------------------
TOTAL $ 158,713,648
- ----------------------------------------------------------------------------------------
CLASS A SHARES
NET ASSETS $ 40,514,131
SHARES OUTSTANDING 4,207,669
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 9.63
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $9.63) $ 10.22
- ----------------------------------------------------------------------------------------
CLASS B SHARES
NET ASSETS $ 82,344,846
SHARES OUTSTANDING 8,956,061
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 9.19
- ----------------------------------------------------------------------------------------
CLASS C SHARES
NET ASSETS $ 35,854,671
SHARES OUTSTANDING 3,914,210
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 9.16
- ----------------------------------------------------------------------------------------
</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, $4,825) $ 202,553
Interest allocated from Portfolio 109,058
Expenses allocated from Portfolio (1,116,150)
- ----------------------------------------------------------------------------------------
NET INVESTMENT LOSS FROM PORTFOLIO $ (804,539)
- ----------------------------------------------------------------------------------------
EXPENSES
Trustees' fees and expenses $ 3,591
Distribution and service fees
Class A 100,585
Class B 769,760
Class C 342,560
Transfer and dividend disbursing agent fees 473,804
Printing and postage 91,465
Registration fees 48,846
Custodian fee 27,392
Legal and accounting services 18,768
Miscellaneous 12,591
- ----------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,889,362
- ----------------------------------------------------------------------------------------
NET INVESTMENT LOSS $ (2,693,901)
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIO
Net realized gain --
Investment transactions (identified cost basis) $ 25,271,511
- ----------------------------------------------------------------------------------------
NET REALIZED GAIN $ 25,271,511
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 11,747,910
- ----------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 11,747,910
- ----------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 37,019,421
- ----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 34,325,520
- ----------------------------------------------------------------------------------------
</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 $ (2,693,901) $ (3,683,327)
Net realized gain (loss) 25,271,511 (55,133,680)
Net change in unrealized appreciation (depreciation) 11,747,910 5,762,522
- ------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 34,325,520 $ (53,054,485)
- ------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 1,596,824 $ 3,056,741
Class B 1,327,446 3,998,728
Class C 1,193,248 3,650,644
Cost of shares redeemed
Class A (14,487,363) (26,394,197)
Class B (17,716,374) (28,832,637)
Class C (9,875,853) (21,123,367)
- ------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS $ (37,962,072) $ (65,644,088)
- ------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (3,636,552) $ (118,698,573)
- ------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 162,350,200 $ 281,048,773
- ------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 158,713,648 $ 162,350,200
- ------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS A
-----------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------------------------
2003(1) 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 7.620 $ 9.840 $ 16.490 $ 13.110 $ 9.460
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss $ (0.100) $ (0.095) $ (0.110) $ (0.062) $ (0.053)
Net realized and unrealized gain (loss) 2.110 (2.125) (6.540) 3.442 3.703
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 2.010 $ (2.220) $ (6.650) $ 3.380 $ 3.650
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.630 $ 7.620 $ 9.840 $ 16.490 $ 13.110
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 26.38% (22.56)% (40.33)% 25.78% 38.58%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $ 40,514 $ 44,208 $ 81,608 $ 145,852 $ 57,518
Ratios (As a percentage of average daily net assets):
Expenses(3) 1.43% 1.24% 1.16% 1.07% 1.04%
Expenses after custodian fee reduction(3) 1.43% 1.24% 1.14% 1.07% 1.04%
Net investment loss (1.23)% (1.00)% (0.83)% (0.49)% (0.55)%
Portfolio Turnover(4) -- -- 22% 77% 80%
Portfolio Turnover of the Portfolio 248% 131% 38%* -- --
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
(4) Portfolio Turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities.
* For the period from the Portfolio's start of business, March 1, 2001, to
October 31, 2001.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
<Table>
<Caption>
CLASS B
-----------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------------------------
2003(1) 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 7.330 $ 9.540 $ 16.120 $ 12.910 $ 9.390
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss $ (0.155) $ (0.161) $ (0.197) $ (0.167) $ (0.128)
Net realized and unrealized gain (loss) 2.015 (2.049) (6.383) 3.377 3.648
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.860 $ (2.210) $ (6.580) $ 3.210 $ 3.520
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.190 $ 7.330 $ 9.540 $ 16.120 $ 12.910
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 25.38% (23.16)% (40.82)% 24.86% 37.49%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $ 82,345 $ 81,353 $ 132,892 $ 228,177 $ 105,949
Ratios (As a percentage of average daily net assets):
Expenses(3) 2.18% 1.99% 1.92% 1.82% 1.81%
Expenses after custodian fee reduction(3) 2.18% 1.99% 1.90% 1.82% 1.81%
Net investment loss (1.98)% (1.75)% (1.58)% (1.24)% (1.33)%
Portfolio Turnover(4) -- -- 22% 77% 80%
Portfolio Turnover of the Portfolio 248% 131% 38%* -- --
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
(4) Portfolio Turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities.
* For the period from the Portfolio's start of business, March 1, 2001, to
October 31, 2001.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
<Table>
<Caption>
CLASS C
-----------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------------------------------
2003(1) 2002(1) 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 7.310 $ 9.500 $ 16.050 $ 12.860 $ 9.370
- ---------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss $ (0.154) $ (0.161) $ (0.198) $ (0.154) $ (0.135)
Net realized and unrealized gain (loss) 2.004 (2.029) (6.352) 3.344 3.625
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.850 $ (2.190) $ (6.550) $ 3.190 $ 3.490
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.160 $ 7.310 $ 9.500 $ 16.050 $ 12.860
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 25.31% (23.05)% (40.81)% 24.80% 37.25%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $ 35,855 $ 36,789 $ 66,550 $ 111,731 $ 39,487
Ratios (As a percentage of average daily net assets):
Expenses(3) 2.18% 1.99% 1.92% 1.85% 1.95%
Expenses after custodian fee reduction(3) 2.18% 1.99% 1.90% 1.85% 1.95%
Net investment loss (1.97)% (1.75)% (1.58)% (1.27)% (1.47)%
Portfolio Turnover(4) -- -- 22% 77% 80%
Portfolio Turnover of the Portfolio 248% 131% 38%* -- --
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment loss per share was computed using average shares
outstanding.
(2) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
(4) Portfolio Turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities.
* For the period from the Portfolio's start of business, March 1, 2001, to
October 31, 2001.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<Page>
EATON VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.1 AS OF OCTOBER 31, 2003
NOTES TO FINANCIAL STATEMENTS
1 SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance Tax-Managed Small-Cap Growth Fund 1.1 (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 has 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). 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 (70.3% at October 31, 2003). The performance of the
Fund is directly affected by the performance of the Portfolio. The
financial statements of the Portfolio, including the Portfolio of
Investments, are included elsewhere in this report and should be read in
conjunction with the Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with accounting principles generally accepted in
the United States of America.
A INVESTMENT VALUATION -- Valuation of securities by the Portfolio is
discussed in Note 1A of the Portfolio's Notes to Financial Statements which
are included elsewhere in this report.
B INCOME -- The Fund's net investment income or loss consists of the Fund's
pro-rata share of the net investment income or loss of the Portfolio, less
all actual and accrued expenses of the Fund determined in accordance with
accounting principles generally accepted in the United States of America.
C 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
$158,549,347 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, 2008, ($26,141,974), on October 31, 2009,
($76,461,635), on October 31, 2010, ($55,945,738).
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. Accounting
principles generally accepted in the United
12
<Page>
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 197,674 303,074
Redemptions (1,789,724) (2,796,693)
----------------------------------------------------------
NET DECREASE (1,592,050) (2,493,619)
----------------------------------------------------------
<Caption>
YEAR ENDED OCTOBER 31,
----------------------------
CLASS B 2003 2002
----------------------------------------------------------
Sales 168,108 420,841
Redemptions (2,304,946) (3,258,847)
----------------------------------------------------------
NET DECREASE (2,136,838) (2,838,006)
----------------------------------------------------------
<Caption>
YEAR ENDED OCTOBER 31,
----------------------------
CLASS C 2003 2002
----------------------------------------------------------
Sales 154,057 379,025
Redemptions (1,275,578) (2,345,947)
----------------------------------------------------------
NET DECREASE (1,121,521) (1,966,922)
----------------------------------------------------------
</Table>
4 TRANSACTIONS WITH AFFILIATES
Eaton Vance Management (EVM) serves as the administrator to the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory
services. See Note 2 of the Portfolio's Notes to Financial Statements which
are included elsewhere in this report. 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 $41,009 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 $5,943 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)
and Class C shares (Class C Plan) pursuant to Rule 12b-1 under the
Investment Company Act of 1940 and a service plan for Class A shares (Class
A Plan) (collectively, the Plans). The Class B and Class C Plans require
the Fund to pay EVD amounts equal to 1/365 of 0.75% of the Fund's average
daily net assets attributable to Class B and Class C shares for providing
ongoing distribution services and facilities to the Fund. The Fund will
automatically discontinue payments to EVD during any period in which there
are no outstanding Uncovered Distribution Charges, which are equivalent to
the sum of (i) 5% and 6.25% of the aggregate amount received by the Fund
for the Class B and Class C shares sold, respectively, 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 $577,320 and $256,920 for
Class B and Class C shares, respectively, to or payable to EVD for the year
ended October 31, 2003, representing 0.75% of the average daily net assets
for Class B and Class C shares, respectively. At October 31, 2003, the
amount of Uncovered Distribution Charges of EVD calculated under the Plans
was approximately $6,517,000 and $7,905,000 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 amounting to 0.25% of the Fund's
average daily net assets attributable to Class A, Class B, and Class C
shares for each fiscal year. Service fee payments will be made for personal
services and/or the maintenance of shareholder accounts. Service fees are
separate and distinct from the sales
13
<Page>
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 $100,585, $192,440 and $85,640 for
Class A, Class B, and Class C shares, respectively.
6 CONTINGENT DEFERRED SALES CHARGE
A contingent deferred sales charge (CDSC) generally is imposed on
redemptions of Class B shares made within six years of purchase and on
redemptions of Class C shares made within one year of purchase. Generally,
the CDSC is based upon the lower of the net asset value at the date of
redemption or date of purchase. No charge is levied on shares acquired by
reinvestment of dividends or capital gain distributions. Class A shares may
be subject to a 1% CDSC if redeemed within one year of purchase (depending
upon the circumstances of purchase). The Class B CDSC is imposed at
declining rates that begin at 5% in the case of redemptions in the first
and second year after purchase, declining one percentage point 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
their respective employees or clients and may be waived under certain other
limited conditions. CDSC pertaining to Class B and Class C redemptions are
paid to EVD to reduce the amount of Uncovered Distribution Charges
calculated under the Class B and Class C Plans, respectively (see Note 5).
CDSC assessed on Class B and Class C shares when no Uncovered Distribution
Charges exist for the respective classes will be credited to the Fund. EVD
received approximately $0, $236,000 and $2,000 of CDSC paid by shareholders
for Class A, Class B and Class C shares, respectively for the year ended
October 31, 2003.
7 INVESTMENT TRANSACTIONS
Increases and decreases in the Fund's investment in the Portfolio
aggregated $4,253,329 and $43,968,376, respectively for the year ended
October 31, 2003.
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 9,580,429 307,615
Donald R. Dwight 9,584,212 303,831
James B. Hawkes 9,579,116 308,927
Samuel L. Hayes, III 9,586,637 310,406
William H. Park 9,592,338 295,705
Norton H. Reamer 8,989,066 898,977
Lynn A. Stout 9,589,244 298,799
</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 6,846,802
AGAINST 307,038
ABSTAIN 349,099
BROKER NON-VOTES 2,385,104
</Table>
14
<Page>
TO THE TRUSTEES OF EATON VANCE MUTUAL FUNDS TRUST AND SHAREHOLDERS OF EATON
VANCE TAX-MANAGED SMALL-CAP GROWTH FUND 1.1:
We have audited the accompanying statement of assets and liabilities of Eaton
Vance Tax-Managed Small-Cap Growth Fund 1.1 (formerly Eaton Vance Tax-Managed
Emerging Growth Fund 1.1) (the Fund) (one of the series of Eaton Vance Mutual
Funds Trust) as of October 31, 2003, 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 each of the years in
the five-year period ended October 31, 2003. 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 1.1 at October 31, 2003 and the results of its
operations, the changes in its net assets and its financial highlights for the
respective stated periods in conformity with accounting principles generally
accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 16, 200315
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
- ------------------------------------------------------------------------------------
PRIVATE PLACEMENTS AND SPECIAL WARRANTS -- 0.1%
<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
- ------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.7%
<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 1.1 held an
approximate 70.3% interest in the Portfolio and two other investors owned
an interest greater than 10% that aggregated 29.7%. 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 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 nearest 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 98% 2%
Donald R. Dwight 98% 2%
James B. Hawkes 98% 2%
Samuel L. Hayes, III 98% 2%
William H. Park 98% 2%
Norton H. Reamer 93% 7%
Lynn A. Stout 98% 2%
</Table>
Results are rounded to the nearst 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 52%
AGAINST 2%
ABSTAIN 2%
BROKER NON-VOTES 19%
</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 1.1
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 THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS
DATE OF BIRTH PORTFOLIO SERVICE DURING PAST FIVE YEARS TRUSTEE(1) HELD
- -----------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE(S)
Jessica M. Bibliowicz Trustee Since 1998 Chairman, President and Chief 192 Director of National
11/28/59 Executive Officer of National Financial Partners
Financial Partners (financial
services company) (since
April 1999). President and
Chief Operating Officer of
John A. Levin & Co. (registered
investment adviser) (July 1997
to April 1999) and a Director
of Baker, Fentress & Company,
which owns John A. Levin & Co.
(July 1997 to April 1999).
Ms. Bibliowicz is an interested
person because of her
affiliation with a brokerage
firm.
James B. Hawkes Trustee Trustee of the Chairman, President and Chief 194 Director of EVC
11/9/41 Trust since Executive Officer of BMR, EVC,
1991; of the EVM and EV; Director of EV;
Portfolio Vice 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.
NONINTERESTED TRUSTEE(S)
Samuel L. Hayes, III Trustee Trustee of the Jacob H. Schiff Professor of 194 Director of Tiffany
2/23/35 Trust since Investment Banking Emeritus, & Co. (specialty
1986; of the Harvard University Graduate retailer) and
Portfolio School of Business Telect, Inc.
since 1998 Administration. (telecommunication
services company)
William H. Park Trustee Since 2003 President and Chief Executive 191 None
9/19/47 Officer, Prizm Capital
Management, LLC (investment
management firm) (since 2002).
Executive Vice President and
Chief Financial Officer,
United Asset Management
Corporation (a holding company
owning institutional
investment management firms)
(1982-2001).
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 THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS
DATE OF BIRTH PORTFOLIO SERVICE DURING PAST FIVE YEARS TRUSTEE(1) HELD
- -----------------------------------------------------------------------------------------------------------------------------------
NONINTERESTED TRUSTEE(S) (CONTINUED)
Norton H. Reamer Trustee Trustee of the President and Chief Executive 194 None
9/21/35 Trust since Officer of Asset Management
1986; of the Finance Corp. (a specialty
Portfolio finance company serving the
since 1998 investment management
industry) (since October 2003).
President, Unicorn Corporation
(an investment and financial
advisory services company)
(since September 2000).
Formerly, Chairman, Hellman,
Jordan Management Co., Inc.
(an investment management
company) (2000-2003).
Formerly, Advisory Director of
Berkshire Capital Corporation
(investment banking firm)
(2002-2003). Formerly,
Chairman of the Board, United
Asset Management Corporation
(a holding company owning
institutional investment
management firms) and
Chairman, President and
Director, UAM Funds (mutual
funds) (1980-2000).
Lynn A. Stout Trustee Since 1998 Professor of Law, University 194 None
9/14/57 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 PORTFOLIO SERVICE DURING PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas E. Faust Jr. President of the Trust Since 2002 Executive Vice President of EVM, BMR, EVC and EV;
5/31/58 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 of the Since 1995 Vice President of EVM and BMR. Officer of 35
7/28/59 Trust registered investment companies managed by EVM or
BMR.
Thomas J. Fetter Vice President of the Since 1997 Vice President of EVM and BMR. Trustee and President
8/20/43 Trust of The Massachusetts Health & Education Tax-Exempt
Trust. Officer of 127 registered investment companies
managed by EVM or BMR.
Michael R. Mach Vice President of the Since 1999 Vice President of EVM and BMR. Previously, Managing
7/15/47 Trust 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 of the Since 1998 Vice President of EVM and BMR. Officer of 127
1/22/57 Trust registered investment companies managed by EVM or BMR.
Duncan W. Vice President of the Vice President of the Senior Vice President and Chief Equity Investment
Richardson Trust, President of Trust since 2001; Officer of EVM and BMR. Officer of 41 registered
10/26/57 the Portfolio President of the investment companies managed by EVM or BMR.
Portfolio since 2002
Walter A. Row, III Vice President of the Since 2001 Director of Equity Research and a Vice President of EVM
7/20/57 Trust and BMR. Officer of 22 registered investment companies
managed by EVM or BMR.
Judith A. Saryan Vice President of the Since 2003 Vice President of EVM and BMR. Previously, Portfolio
8/21/54 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 PORTFOLIO SERVICE DURING PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
Susan Schiff Vice President of the Since 2002 Vice President of EVM and BMR. Officer of 26 registered
3/13/61 Trust investment companies managed by EVM or BMR.
Toni Y. Shimura Vice President of the Since 2003 Vice President of EVM and BMR. Previously, Senior Vice
2/3/52 Portfolio 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 Trust Vice President, Secretary and Chief Legal Officer of
10/10/40 since 1997; of the BMR, EVM, EVD, EV and EVC. Officer of 194 registered
Portfolio since 1998 investment companies managed by EVM and BMR.
Michelle A. Alexander Treasurer of the Since 2002(2) Vice President of EVM and BMR. Chief Financial Officer
8/25/69 Portfolio 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 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>
This Page Intentionally Left Blank
<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 1.1
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 1.1
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>
130-12/03 MGSRC
<Page>
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics applicable to its Principal
Executive Officer, Principal Financial Officer and Principal Accounting Officer.
The registrant undertakes to provide a copy of such code of ethics to any person
upon request, without charge, by calling 1-800-262-1122.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The registrant's Board has designated William H. Park, Samuel L. Hayes, III and
Norton H. Reamer, each an independent trustee, as its audit committee financial
experts. Mr. Park is a certified public accountant who is the President and
Chief Executive Officer of Prizm Capital Management, LLC (a fixed income
investment management firm). Previously, he served as Executive Vice President
and
<Page>
Chief Financial Officer of United Asset Management Corporation ("UAM") (a
holding company owning institutional investment management firms). Mr. Hayes is
the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard
University Graduate School of Business Administration. Mr. Reamer is the
President of Unicorn Capital (an investment and financial advisory services
company), Chairman of Hellman, Jordan Management Co., Inc. (an investment
management company) and Advisory Director of Berkshire Capital Corporation (an
investment banking firm). Previously, Mr. Reamer was Chairman of the Board of
UAM and Chairman, President and Director of the UAM Funds (mutual funds).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not Required in Filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not Required in Filing.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not required in this filing.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES
(a) It is the conclusion of the registrant's principal executive officer and
principal financial officer that the effectiveness of the registrant's current
disclosure controls and procedures (such disclosure controls and procedures
having been evaluated within 90 days of the date of this filing) provide
reasonable assurance that the information required to be disclosed by the
registrant has been recorded, processed, summarized and reported within the time
period specified in the Commission's rules and forms and that the information
required to be disclosed by the registrant has been accumulated and communicated
to the registrant's principal executive officer and principal financial officer
in order to allow timely decisions regarding required disclosure.
(b) There have been no significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS
(a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2).
(a)(2)(i) Treasurer's Section 302 certification.
(a)(2)(ii) President's Section 302 certification.
(b) Combined Section 906 certification.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE MUTUAL FUNDS TRUST (ON BEHALF OF EATON VANCE TAX-MANAGED SMALL-CAP
GROWTH FUND 1.1)
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
-----------------