<Page>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR/A
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04015
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Eaton Vance Mutual Funds Trust
------------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
December 31
-----------
Date of Fiscal Year End
December 31, 2003
-----------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
[GRAPHIC]
[EATON VANCE(R) MANAGED INVESTMENTS LOGO]
ANNUAL REPORT DECEMBER 31, 2003
EATON VANCE TAX-MANAGED GROWTH FUND 1.1
<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 GROWTH FUND 1.1 AS OF DECEMBER 31, 2003
LETTER TO SHAREHOLDERS
[PHOTO OF THOMAS E. FAUST JR.]
Thomas E. Faust Jr.
President
During the year ended December 31, 2003, Eaton Vance Tax-Managed Growth Fund 1.1
had a total return of 23.39% for Class A shares.(1) This return resulted from an
increase in net asset value (NAV) to $20.80 per share on December 31, 2003, from
$16.92 per share on December 31, 2002, and the reinvestment of $0.076 per share
in income dividends. For Class B, the total return was 22.50% for the same
period, based on an increase in NAV per share to $19.76 from $16.13.(1) For
Class C, the total return was 22.47% for the same period, based on an increase
in NAV per share to $18.97 from $15.49.(1) For Class I, the total return was
23.76%, based on an increase in NAV per share to $9.89 from $8.03, and the
reinvestment of $0.047 per share in income dividends.(1) For Class S, the total
return was 23.58%, based on an increase in NAV per share to $20.88 from $16.97
and the reinvestment of $0.091 per share in income dividends.(1) (See page 6 for
more performance information, including the Fund's after-tax performance.)
For comparison, the average total return (before taxes) for mutual funds in the
Lipper Multi-Cap Core Classification was 29.94% during the period, and the S&P
500 Index - an unmanaged index of 500 common stocks commonly used as a measure
of U.S. stock market performance - had a total return of 28.67%.(2)
A WELCOME RECOVERY IN THE U.S. EQUITY MARKET IN 2003...
During the year ended December 31, 2003, stocks posted their first positive
finish since 1999, with the Dow Jones Industrial Average finishing 2003 with a
gain of just over 25%.(2) After a shaky start to the year, fueled by concerns
about the war in Iraq and mixed economic data, the market found its way back to
positive territory amid a historically low interest rate environment and
increasingly encouraging economic news. While stocks still have a long way to go
towards recovering the significant losses of the three-year bear market,
investor sentiment was marked by relief and renewed enthusiasm. Since October
2002, when the market bottomed, through year-end 2003, the Dow rose more than
45% and the Nasdaq Composite Index, which is composed primarily of more volatile
growth stocks, was up 80%.
A LONG-TERM INVESTMENT STRATEGY - AN INVESTOR'S BEST WEAPON AGAINST MARKET
VOLATILITY ...
If the market's behavior over the past few years has illustrated one thing, it
is the importance of a long-term investment strategy. We feel optimistic that
the recovery we've seen in the U.S. equity markets to date can be sustained, and
that investors can best take advantage of the opportunities this presents by
sticking to a long-term horizon. Our analyst team stands poised to seek out
further opportunities in the year ahead. As investors, we at Eaton Vance believe
that the cornerstones of a good long-term investment program are broad
diversification and research-driven stock selection.
For more information about the performance of the Fund in 2003, please read the
interview with Portfolio Manager Duncan W. Richardson that appears on the
following pages.
Sincerely,
/s/ Thomas E. Faust Jr.
Thomas E. Faust Jr.
President
January 30, 2004
TEN LARGEST HOLDINGS(3) By total net assets
<Table>
American International Group, Inc. 2.0%
PepsiCo., Inc. 1.7
Intel Corp. 1.7
Morgan Stanley Dean Witter &Co. 1.6
Pfizer, Inc. 1.6
United Parcel Service, Inc. Class B 1.5
Microsoft Corp. 1.5
General Electric Co. 1.5
BP plc ADR 1.4
Amgen, Inc. 1.4
</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. Class I and Class S generally have no sales
charge. 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 a Lipper Classification or an
Index.
(3) Ten largest holdings accounted for 15.9% 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. Performance is for the stated time
period only; due to market volatility, the Fund's current performance may be
different.
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT
TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED.
2
<Page>
EATON VANCE TAX-MANAGED GROWTH FUND 1.1 AS OF DECEMBER 31, 2003
MANAGEMENT DISCUSSION
AN INTERVIEW WITH DUNCAN W. RICHARDSON, PORTFOLIO MANAGER OF TAX-MANAGED GROWTH
PORTFOLIO. MR. RICHARDSON IS SENIOR VICE PRESIDENT AND CHIEF EQUITY INVESTMENT
OFFICER OF EATON VANCE.
[PHOTO OF DUNCAN W. RICHARDSON]
Duncan W. Richardson
Portfolio Manager
Q: Duncan let's start with an overview of the year.
A: MR. RICHARDSON: The U.S. equity markets experienced a successful 2003, with
most major indices posting their first double-digit gains in more than four
years. Strength in the broader market was a function of a favorable economic
environment: historically low interest and inflation rate levels, coupled
with robust earnings growth, tax rebates, and continued consumer strength.
While the Fund's absolute performance for the year of 23.39% (for Class A
shares at NAV) was strong, the Fund trailed the S&P 500 Index, which had a
total return of 28.67%.*
Q: What drove the Portfolio's performanCe relative to the benchmark?
A: In 2003, the Portfolio's sector allocation remained relatively unaltered from
2002 in that the Portfolio continued to focus on investments in the
industrial, consumer discretionary, and financials sectors. Although these
sectors performed well during 2003, the sub-par performance of stocks across
the constituent industries, and multi-line retail and aerospace defense names
in particular, hindered performance. The Portfolio's continued underweighting
of the best performing sector of the year, information technology, was
another factor contributing to the Portfolio's relative underperformance
versus the S&P 500 Index.*
As in 2002, lack of earnings visibility and unattractive valuations compelled
the Portfolio's management to remain cautious on the sector. Similar
rationale prompted a de-emphasis of the telecommunications sector, which had
a positive impact on the Portfolio's returns.
Q: What were the positive factors that contributed to absolute performance?
A: During the year, management emphasized more economically sensitive
industries, such as consumer discretionary and energy, from 2002 levels. This
shift, especially with respect to investments in pro-cyclical industries,
such as consumer electronics, energy services, and oil and gas, was
particularly beneficial. Financial and health care investment also
contributed to relative performance in 2003, with strong performance by
consumer finance, pharmaceuticals, and biotechnology investments. While the
Portfolio remained underweighted in the materials and the utilities sectors
during 2003, stock selections in the electric and gas utilities groups
positively impacted returns for the year.
Q: Did you make any major shifts in terms of the makeup of the Portfolio over
the course of the year?
A: We are continually making modifications to the Portfolio, preferring an
incremental approach over radical repositioning. We attempt to steer new
money into companies that we believe will be well positioned over the next
five years and are available at reasonable valuations. This research process
has resulted in a broadly diversified, higher-quality and low-volatility
Portfolio. In 2003, the market favored lower-quality and higher-volatility
securities, something that is not unusual when coming out of an economic
* It is not possible to invest directly in an Index or a Lipper Classification
3
<Page>
slowdown or bear market. Because of the Portfolio's policy of investing in
higher-quality securities and its valuation discipline, its performance
lagged its benchmark and its more aggressive peers.
Eaton Vance believes the economic recovery will continue at a sustainable
pace, and the market will better reward quality companies that can
consistently deliver earnings. The longer-term success of the Portfolio will
be determined by the ability of our research staff to deliver superior stock
selection versus the benchmark. Quality investments are gradually gaining
strength in the market, and the Portfolio will continue to seek out
investments in companies with strong business franchises and solid long-term
earnings prospects that trade at attractive valuations.
Q: Any closing thoughts?
A: The equity market in 2003 recovered a lot of lost ground. From here, more
modest annual returns should be expected. We believe the equity market will
advance with earnings because substantially lower interest rates that would
support higher valuation multiples are unlikely. We also believe that the
Portfolio, with its investment approach of broad diversification, active risk
management and tax management, is particularly well suited for the continued
volatility we anticipate in the equity markets.
Volatility is here to stay. We believe our patient and valuation-sensitive
approach is the best way to counter the increasingly short-term focus of the
market. In closing, I'd like to thank fellow shareholders for their
confidence in our team and their continued participation in the Fund.
FIVE LARGEST INDUSTRY GROUPS+
As a percentage of total net assets
<Table>
COMMERCIAL BANKS 8.3%
MEDIA 7.0%
PHARMACEUTICALS 7.0%
INSURANCE 6.3%
OIL AND GAS 5.9%
</Table>
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.
+ Five largest industry groups are subject to change due to active management.
4
<Page>
EATON VANCE TAX-MANAGED GROWTH FUND 1.1 AS OF DECEMBER 31, 2003
FUND PERFORMANCE
[CHART]
COMPARISION OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
TAX MANAGED GROWTH FUND 1.1 CLASS A vs THE S&P 500 INDEX*
MARCH 31 1996 -
DECEMBER 31, 2003
<Table>
<Caption>
Eaton Vance
Tax-Managed Standard
Growth Fund Incl. &
Fund 1.1 Maximum Poor's
DATE Class A Sales Charge 500 Index
- -------------------------------------------------------
3/31/1996 10000 9425 10000
4/30/1996 10281.7 9687.2 10147.29
5/31/1996 10503 9895.73 10408.54
6/30/1996 10543.3 9933.65 10448.22
7/31/1996 10050.3 9469.19 9986.88
8/31/1996 10342.1 9744.07 10197.85
9/30/1996 10955.7 10322.27 10771.3
10/31/1996 11237.4 10587.67 11068.18
11/30/1996 12042.3 11345.97 11904.06
12/31/1996 11831 11146.92 11668.25
1/31/1997 12525.2 11800.94 12396.83
2/28/1997 12434.6 11715.64 12494.16
3/31/1997 12052.3 11355.45 11981.75
4/30/1997 12676.1 11943.12 12696.41
5/31/1997 13470.8 12691.94 13468.84
6/30/1997 14089.5 13274.84 14071.9
7/31/1997 15226.7 14346.31 15190.96
8/31/1997 14582.6 13739.46 14340.57
9/30/1997 15377.7 14488.54 15125.51
10/31/1997 14816.1 13959.42 14620.93
11/30/1997 15250.1 14368.31 15297.21
12/31/1997 15643.7 14739.17 15559.73
1/31/1998 15704.2 14796.22 15731.66
2/28/1998 16955.7 15975.36 16865.64
3/31/1998 17773.2 16745.6 17728.61
4/30/1998 18076 17030.87 17906.88
5/31/1998 17520.9 16507.87 17599.52
6/30/1998 18187.1 17135.47 18313.87
7/31/1998 17773.2 16745.6 18119.35
8/31/1998 15179.4 14301.75 15502.36
9/30/1998 16168.5 15233.64 16495.49
10/31/1998 17309 16308.18 17836.06
11/30/1998 18207.2 17154.49 18916.62
12/31/1998 19620.2 18485.77 20005.97
1/31/1999 20195.5 19027.79 20842.24
2/28/1999 19610.1 18476.26 20194.58
3/31/1999 20195.5 19027.79 21002.34
4/30/1999 20750.6 19550.79 21815.64
5/31/1999 20336.8 19160.92 21301.22
6/30/1999 21336 20102.32 22482.44
7/31/1999 20599.2 19408.15 21781.11
8/31/1999 20346.9 19170.43 21673.28
9/30/1999 19690.9 18552.33 21079.86
10/31/1999 20912.1 19702.94 22413.23
11/30/1999 21426.8 20187.9 22868.82
12/31/1999 22960.9 21633.29 24214.91
1/31/2000 22183.8 20901.09 22998.44
2/29/2000 22658.1 21348.02 22563.54
3/31/2000 24313.3 22907.52 24769.49
4/30/2000 23909.6 22527.15 24024.54
5/31/2000 23485.7 22127.77 23531.37
6/30/2000 24161.9 22764.88 24111.59
7/31/2000 23758.2 22384.52 23734.97
8/31/2000 25322.6 23858.43 25208.42
9/30/2000 24535.4 23116.72 23877.92
10/31/2000 24575.7 23154.76 23776.63
11/30/2000 22930.6 21604.77 21903.46
12/31/2000 23657.3 22289.42 22010.92
1/31/2001 23950 22565.19 22791.37
2/28/2001 22335.2 21043.73 20714.55
3/31/2001 20952.5 19740.97 19403.01
4/30/2001 22345.2 21053.24 20909.63
5/31/2001 22617.7 21309.98 21049.9
6/30/2001 22113.1 20834.53 20537.76
7/31/2001 21891.1 20625.32 20335.51
8/31/2001 20821.2 19617.36 19063.75
9/30/2001 19075.2 17972.27 17524.43
10/31/2001 19327.5 18210 17858.79
11/30/2001 20851.5 19645.88 19228.34
12/31/2001 21295.6 20064.29 19396.89
1/31/2002 20972.6 19759.99 19113.99
2/28/2002 20639.6 19446.19 18745.29
3/31/2002 21447 20206.92 19450.38
4/30/2002 20568.9 19379.63 18271.66
5/31/2002 20427.6 19246.5 18137.53
6/30/2002 18933.9 17839.15 16846.04
7/31/2002 17420 16412.78 15533.2
8/31/2002 17571.4 16555.41 15634.89
9/30/2002 16057.5 15129.04 13937.22
10/31/2002 17137.4 16146.52 15162.76
11/30/2002 17914.5 16878.72 16054.35
12/31/2002 17076.9 16089.46 15111.68
1/31/2003 16491.5 15537.93 14716.57
2/28/2003 16168.5 15233.64 14495.43
3/31/2003 16259.3 15319.22 14635.78
4/30/2003 17470.5 16460.32 15840.77
5/31/2003 18288 17230.56 16674.58
6/30/2003 18439.4 17373.2 16887.6
7/31/2003 18772.4 17687 17185.49
8/31/2003 19145.9 18038.84 17519.98
9/30/2003 18853.2 17763.07 17334.48
10/31/2003 19943.2 18790.06 18314.59
11/30/2003 20205.6 19037.3 18475.54
12/31/2003 21070.5 19852.21 19443.8
</Table>
[CHART]
COMPARISION OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
TAX MANAGED GROWTH FUND 1.1 CLASS B vs THE S&P 500 INDEX*
MARCH 31 1996 -
DECEMBER 31, 2003
<Table>
<Caption>
Eaton Vance
Tax-Managed Standard
Growth &
Fund 1.1 Poor's
DATE Class B 500 Index
- --------------------------------------
3/31/1996 10000 10000
4/30/1996 10271.63 10147.29
5/31/1996 10503.02 10408.54
6/30/1996 10543.26 10448.22
7/31/1996 10040.24 9986.88
8/31/1996 10331.99 10197.85
9/30/1996 10935.61 10771.3
10/31/1996 11217.3 11068.18
11/30/1996 12002.01 11904.06
12/31/1996 11780.68 11668.25
1/31/1997 12464.79 12396.83
2/28/1997 12374.24 12494.16
3/31/1997 11991.95 11981.75
4/30/1997 12595.57 12696.41
5/31/1997 13360.16 13468.84
6/30/1997 13953.72 14071.9
7/31/1997 15060.36 15190.96
8/31/1997 14416.5 14340.57
9/30/1997 15191.14 15125.51
10/31/1997 14637.82 14620.93
11/30/1997 15060.36 15297.21
12/31/1997 15432.59 15559.73
1/31/1998 15482.89 15731.66
2/28/1998 16700.2 16865.64
3/31/1998 17494.97 17728.61
4/30/1998 17786.72 17906.88
5/31/1998 17233.4 17599.52
6/30/1998 17877.26 18313.87
7/31/1998 17454.72 18119.35
8/31/1998 14909.45 15502.36
9/30/1998 15855.13 16495.49
10/31/1998 16971.83 17836.06
11/30/1998 17847.08 18916.62
12/31/1998 19215.29 20005.97
1/31/1999 19758.55 20842.24
2/28/1999 19185.11 20194.58
3/31/1999 19748.49 21002.34
4/30/1999 20271.63 21815.64
5/31/1999 19869.21 21301.22
6/30/1999 20814.88 22482.44
7/31/1999 20090.54 21781.11
8/31/1999 19828.97 21673.28
9/30/1999 19185.11 21079.86
10/31/1999 20362.17 22413.23
11/30/1999 20845.07 22868.82
12/31/1999 22323.94 24214.91
1/31/2000 21549.29 22998.44
2/29/2000 22002.01 22563.54
3/31/2000 23591.54 24769.49
4/30/2000 23179.07 24024.54
5/31/2000 22756.53 23531.37
6/30/2000 23400.4 24111.59
7/31/2000 22987.92 23734.97
8/31/2000 24496.98 25208.42
9/30/2000 23712.27 23877.92
10/31/2000 23742.45 23776.63
11/30/2000 22142.85 21903.46
12/31/2000 22826.96 22010.92
1/31/2001 23088.53 22791.37
2/28/2001 21529.17 20714.55
3/31/2001 20181.08 19403.01
4/30/2001 21509.05 20909.63
5/31/2001 21760.56 21049.9
6/30/2001 21267.6 20537.76
7/31/2001 21036.21 20335.51
8/31/2001 19989.94 19063.75
9/30/2001 18299.79 17524.43
10/31/2001 18541.24 17858.79
11/30/2001 19979.87 19228.34
12/31/2001 20392.35 19396.89
1/31/2002 20080.48 19113.99
2/28/2002 19738.43 18745.29
3/31/2002 20513.07 19450.38
4/30/2002 19647.88 18271.66
5/31/2002 19507.04 18137.53
6/30/2002 18068.41 16846.04
7/31/2002 16619.71 15533.2
8/31/2002 16740.44 15634.89
9/30/2002 15291.75 13937.22
10/31/2002 16307.84 15162.76
11/30/2002 17042.25 16054.35
12/31/2002 16227.36 15111.68
1/31/2003 15674.04 14716.57
2/28/2003 15352.11 14495.43
3/31/2003 15432.59 14635.78
4/30/2003 16569.41 15840.77
5/31/2003 17334 16674.58
6/30/2003 17454.72 16887.6
7/31/2003 17766.6 17185.49
8/31/2003 18108.65 17519.98
9/30/2003 17826.96 17334.48
10/31/2003 18843.05 18314.59
11/30/2003 19084.5 18475.54
12/31/2003 19879.27 19443.8
</Table>
<Table>
<Caption>
PERFORMANCE** CLASS A CLASS B CLASS C CLASS I CLASS S
- ------------------------------------------------------------------------------------------------
Average Annual Total Returns (at
net asset value)
One Year 23.39% 22.50% 22.47% 23.76% 23.58%
Five Years 1.44 0.68 0.63 N/A N/A
Life of Fund+ 10.00 9.17 9.02 -0.14 -0.03
SEC Average Annual Total Returns (including
sales charge or applicable CDSC)
One Year 16.30% 17.50% 21.47% 23.76% 23.58%
Five Years 0.24 0.29 0.63 N/A N/A
Life of Fund+ 9.16 9.17 9.02 -0.14 -0.03
</Table>
+Inception Dates - Class A and Class B: 3/28/96; Class C:8/2/96; Class I:7/2/99;
Class S:5/14/99
* Source: Thomson Financial. Investment operations commenced 3/28/96. The chart
uses closest month-end after inception.
The charts compare the Fund's total return with that of the S&P 500 Index, an
unmanaged index of 500 common stocks commonly used as a measure of U.S. stock
market performance. The lines on the charts represent the total returns of
$10,000 hypothetical investments in Class A or Class B of the Fund and in the
S&P 500 Index. An investment in the Fund's Class C shares on 8/2/96 at net asset
value would have grown to $18,970 on December 31, 2003. An investment in the
Fund's Class I shares on 7/2/99 at net asset value would have decreased to
$9,938 on December 31, 2003. An investment in the Fund's Class S shares on
5/14/99 at net asset value would have decreased to $9,987 on December 31, 2003.
Graphs and 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 an Index.
** Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested. SEC returns for
Class A reflect the maximum 5.75% sales charge. SEC returns for Class B
reflect applicable CDSC based on the following schedule: 5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. SEC 1-Year
return for Class C reflects 1% CDSC. Class I and Class S shares generally do
not have a sales charge.
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>
EATON VANCE TAX-MANAGED GROWTH FUND 1.1 AS OF DECEMBER 31, 2003
FUND PERFORMANCE
"Return Before Taxes" does not take into consideration shareholder taxes. It
is most relevant to tax-free or tax-deferred shareholder accounts. "Return
After Taxes on Distributions" reflects the impact of federal income taxes due
on Fund distributions of dividends and capital gains. It is most relevant to
taxpaying shareholders who continue to hold their shares. "Return After Taxes
on Distributions and Sale of Fund Shares" also reflects the impact of taxes
on capital gain or loss realized upon a sale of shares. It would be most
relevant to taxpaying shareholders who sell their shares.
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIODS ENDED DECEMBER 31, 2003)
RETURNS AT NET ASSET VALUE (NAV) (CLASS A)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 23.39% 1.44% 10.00%
Return After Taxes on Distributions 23.32% 1.43% 9.97%
Return After Taxes on Distributions
and Sale of Fund Shares 15.29% 1.23% 8.83%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS A)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 16.30% 0.24% 9.16%
Return After Taxes on Distributions 16.24% 0.23% 9.13%
Return After Taxes on Distributions
and Sale of Fund Shares 10.68% 0.20% 8.07%
</Table>
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIODS ENDED DECEMBER 31, 2003)
RETURNS AT NET ASSET VALUE (NAV) (CLASS B)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 22.50% 0.68% 9.17%
Return After Taxes on Distributions 22.50% 0.68% 9.17%
Return After Taxes on Distributions
and Sale of Fund Shares 14.63% 0.58% 8.10%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS B)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 17.50% 0.29% 9.17%
Return After Taxes on Distributions 17.50% 0.29% 9.17%
Return After Taxes on Distributions
and Sale of Fund Shares 11.38% 0.25% 8.10%
</Table>
RETURNS AT NET ASSET VALUE (NAV) (CLASS C)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 22.47% 0.63% 9.02%
Return After Taxes on Distributions 22.47% 0.63% 9.02%
Return After Taxes on Distributions
and Sale of Fund Shares 14.60% 0.54% 7.95%
</Table>
RETURNS AT PUBLIC OFFERING PRICE (POP) (CLASS C)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 21.47% 0.63% 9.02%
Return After Taxes on Distributions 21.47% 0.63% 9.02%
Return After Taxes on Distributions
and Sale of Fund Shares 13.95% 0.54% 7.95%
</Table>
RETURNS AT NET ASSET VALUE (NAV) (CLASS I)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 23.76% N.A. -0.14%
Return After Taxes on Distributions 23.76% N.A. -0.15%
Return After Taxes on Distributions
and Sale of Fund Shares 15.56% N.A. -0.12%
</Table>
RETURNS AT NET ASSET VALUE (NAV) (CLASS S)
<Table>
<Caption>
ONE YEAR FIVE YEARS LIFE OF FUND
Return Before Taxes 23.58% N.A. -0.03%
Return After Taxes on Distributions 23.50% N.A. -0.04%
Return After Taxes on Distributions
and Sale of Fund Shares 15.44% N.A. -0.02%
</Table>
Class A and Class B commenced operations on 3/28/96; Class C on 8/2/96; Class
I on 7/2/99, and Class S on 5/14/99. Returns at Public Offering Price (POP)
reflect the deduction of the maximum sales charge and applicable CDSC, 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 Fund
shares in tax-deferred accounts or to shares held by non-taxable entities.
Return After Taxes on Distributions for a period may be the same as Return
Before Taxes for that period because no distributions were paid during that
period, or because the taxable portion of distributions made during the period
was insignificant. Also, Return After Taxes on Distributions and Sale of Fund
Shares for a period may be greater than Return After Taxes on Distributions for
the same period because of realized losses on the sale of Fund shares.
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. Returns are historical and are calculated by
determining the percentage change in net asset value with all distributions
reinvested.
6
<Page>
EATON VANCE TAX-MANAGED GROWTH FUND 1.1 AS OF DECEMBER 31, 2003
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2003
<Table>
ASSETS
Investment in Tax-Managed Growth Portfolio, at value
(identified cost, $2,708,473,990) $ 4,169,554,954
Receivable for Fund shares sold 674,967
- ------------------------------------------------------------------------------------------
TOTAL ASSETS $ 4,170,229,921
- ------------------------------------------------------------------------------------------
LIABILITIES
Payable for Fund shares redeemed $ 9,689,876
Payable to affiliate for distribution and service fees 180,161
Payable to affiliate for Trustees' fees 891
Accrued expenses 1,362,612
- ------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 11,233,540
- ------------------------------------------------------------------------------------------
NET ASSETS $ 4,158,996,381
- ------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Paid-in capital $ 3,351,412,081
Accumulated net realized loss from Portfolio (computed on
the basis of identified cost) (653,497,444)
Accumulated undistributed net investment income 780
Net unrealized appreciation from Portfolio (computed on the basis of
identified cost) 1,461,080,964
- ------------------------------------------------------------------------------------------
TOTAL $ 4,158,996,381
- ------------------------------------------------------------------------------------------
CLASS A SHARES
NET ASSETS $ 982,531,029
SHARES OUTSTANDING 47,233,510
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 20.80
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 94.25 of $20.80) $ 22.07
- ------------------------------------------------------------------------------------------
CLASS B SHARES
NET ASSETS $ 2,321,778,993
SHARES OUTSTANDING 117,488,471
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding)$ 19.76
- ------------------------------------------------------------------------------------------
CLASS C SHARES
NET ASSETS $ 818,714,702
SHARES OUTSTANDING 43,156,108
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 18.97
- ------------------------------------------------------------------------------------------
CLASS I SHARES
NET ASSETS $ 679,293
SHARES OUTSTANDING 68,700
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 9.89
- ------------------------------------------------------------------------------------------
CLASS S SHARES
NET ASSETS $ 35,292,364
SHARES OUTSTANDING 1,689,902
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest outstanding) $ 20.88
- ------------------------------------------------------------------------------------------
</Table>
On sales of $50,000 or more, the offering price of Class A shares is reduced.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
DECEMBER 31, 2003
<Table>
INVESTMENT INCOME
Dividends allocated from Portfolio (net of foreign taxes, $639,223) $ 58,202,525
Interest allocated from Portfolio 932,291
Expenses allocated from Portfolio (17,762,875)
- ------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 41,371,941
- ------------------------------------------------------------------------------------------
EXPENSES
Trustees' fees and expenses $ 3,510
Distribution and service fees
Class A 2,344,021
Class B 21,829,060
Class C 7,763,104
Class S 67,879
Transfer and dividend disbursing agent fees 4,433,282
Printing and postage 774,248
Registration fees 82,904
Custodian fee 39,008
Legal and accounting services 38,581
Miscellaneous 250,037
- ------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 37,625,634
- ------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 3,746,307
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM PORTFOLIO
Net realized gain (loss)--
Investment transactions (identified cost basis) $ (129,682,249)
Securities sold short (815,906)
Foreign currency transactions 21,521
- ------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (130,476,634)
- ------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation)--
Investments (identified cost basis) $ 931,446,555
Securities sold short (503,494)
Foreign currency 16,584
- ------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 930,959,645
- ------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 800,483,011
- ------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 804,229,318
- ------------------------------------------------------------------------------------------
</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 DECEMBER 31, 2003 DECEMBER 31, 2002
- ------------------------------------------------------------------------------------
From operations--
Net investment income (loss) $ 3,746,307 $ (3,802,053)
Net realized loss (130,476,634) (430,406,753)
Net change in unrealized
appreciation (depreciation) 930,959,645 (760,706,103)
- ------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 804,229,318 $ (1,194,914,909)
- ------------------------------------------------------------------------------------
Distributions to shareholders--
From net investment income
Class A $ (3,586,020) $ --
Class I (3,221) --
Class S (156,181) --
- ------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (3,745,422) $ --
- ------------------------------------------------------------------------------------
Transactions in shares of beneficial interest--
Proceeds from sale of shares
Class A $ 29,725,051 $ 50,583,357
Class B 35,315,466 63,708,272
Class C 20,454,177 39,382,697
Class I 30,735 56,158
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 3,053,149 --
Class I 1,228 --
Class S 49,371 --
Cost of shares redeemed
Class A (202,049,652) (331,560,480)
Class B (373,706,441) (567,882,695)
Class C (146,669,341) (241,735,152)
Class I (55,095) (58,203)
Class S (6,596,838) (3,876,662)
- ------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS $ (640,448,190) $ (991,382,708)
- ------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 160,035,706 $ (2,186,297,617)
- ------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 3,998,960,675 $ 6,185,258,292
- ------------------------------------------------------------------------------------
AT END OF YEAR $ 4,158,996,381 $ 3,998,960,675
- ------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME (LOSS)
INCLUDED IN NET ASSETS
AT END OF YEAR $ 780 $ (105)
- ------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
CLASS A
-------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------
2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 16.920 $ 21.100 $ 23.440 $ 22.750 $ 19.440
- -------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income(1) $ 0.120 $ 0.091 $ 0.062 $ 0.083 $ 0.101
Net realized and unrealized gain (loss) 3.836 (4.271) (2.402) 0.607 3.209
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 3.956 $ (4.180) $ (2.340) $ 0.690 $ 3.310
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.076) $ -- $ -- $ -- $ --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.076) $ -- $ -- $ -- $ --
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 20.800 $ 16.920 $ 21.100 $ 23.440 $ 22.750
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 23.39% (19.81)% (9.98)% 3.03% 17.03%
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $ 982,531 $ 958,625 $ 1,526,735 $ 1,698,289 $ 1,401,591
Ratios (As a percentage of average daily net
assets):
Expenses(3) 0.85% 0.81% 0.79% 0.77% 0.68%
Net investment income 0.66% 0.48% 0.29% 0.35% 0.49%
Portfolio Turnover of the Portfolio 15% 23% 18% 13% 11%
- -------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income 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.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
<Table>
<Caption>
CLASS B
-------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------
2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 16.130 $ 20.270 $ 22.690 $ 22.190 $ 19.100
- -------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss(1) $ (0.016) $ (0.048) $ (0.095) $ (0.092) $ (0.055)
Net realized and unrealized gain (loss) 3.646 (4.092) (2.325) 0.592 3.145
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 3.630 $ (4.140) $ (2.420) $ 0.500 $ 3.090
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 19.760 $ 16.130 $ 20.270 $ 22.690 $ 22.190
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 22.50% (20.42)% (10.67)% 2.25% 16.18%
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $ 2,321,779 $ 2,217,673 $ 3,381,103 $ 3,951,916 $ 3,465,441
Ratios (As a percentage of average daily
net assets):
Expenses(3) 1.60% 1.56% 1.54% 1.53% 1.45%
Net investment loss (0.09)% (0.27)% (0.46)% (0.40)% (0.28)%
Portfolio Turnover of the Portfolio 15% 23% 18% 13% 11%
- -------------------------------------------------------------------------------------------------------------------
</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.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
<Table>
<Caption>
CLASS C
-------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------
2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 15.490 $ 19.460 $ 21.800 $ 21.320 $ 18.380
- -------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment loss(1) $ (0.015) $ (0.046) $ (0.092) $ (0.091) $ (0.074)
Net realized and unrealized gain (loss) 3.495 (3.924) (2.248) 0.571 3.014
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 3.480 $ (3.970) $ (2.340) $ 0.480 $ 2.940
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 18.970 $ 15.490 $ 19.460 $ 21.800 $ 21.320
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 22.47% (20.40)% (10.73)% 2.25% 16.00%
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $ 818,715 $ 787,374 $ 1,228,899 $ 1,384,535 $ 1,108,513
Ratios (As a percentage of average daily
net assets):
Expenses(3) 1.60% 1.56% 1.54% 1.54% 1.56%
Net investment loss (0.09)% (0.27)% (0.46)% (0.41)% (0.39)%
Portfolio Turnover of the Portfolio 15% 23% 18% 13% 11%
- -------------------------------------------------------------------------------------------------------------------
</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.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<Page>
<Table>
<Caption>
CLASS I
-------------------------------------------------------------------
YEAR ENDED DECEMBER 31, PERIOD ENDED
----------------------------------------------------- DECEMBER 31,
2003 2002 2001 2000 1999(2)
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 8.030 $ 9.990 $ 11.020 $ 10.670 $ 10.000
- -------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income(1) $ 0.079 $ 0.066 $ 0.055 $ 0.068 $ 0.031
Net realized and unrealized gain (loss) 1.828 (2.026) (1.085) 0.282 0.639
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.907 $ (1.960) $ (1.030) $ 0.350 $ 0.670
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.047) $ -- $ -- $ -- $ --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.047) $ -- $ -- $ -- $ --
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.890 $ 8.030 $ 9.990 $ 11.020 $ 10.670
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 23.76% (19.62)% (9.35)% 3.28% 6.70%
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $ 679 $ 575 $ 720 $ 438 $ 58
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.60% 0.56% 0.54% 0.54% 0.55%(5)
Net investment income 0.91% 0.75% 0.55% 0.61% 0.66%(5)
Portfolio Turnover of the Portfolio 15% 23% 18% 13% 11%
- -------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the start of business, July 2, 1999 to December 31,
1999.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
12
<Page>
<Table>
<Caption>
CLASS S
-------------------------------------------------------------------
YEAR ENDED DECEMBER 31, PERIOD ENDED
----------------------------------------------------- DECEMBER 31,
2003 2002 2001 2000 1999(2)
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year $ 16.970 $ 21.150 $ 23.470 $ 22.750 $ 21.000
- -------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income(1) $ 0.144 $ 0.111 $ 0.090 $ 0.107 $ 0.067
Net realized and unrealized gain (loss) 3.857 (4.291) (2.410) 0.613 1.683
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 4.001 $ (4.180) $ (2.320) $ 0.720 $ 1.750
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
From net investment income $ (0.091) $ -- $ -- $ -- $ --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.091) $ -- $ -- $ -- $ --
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 20.880 $ 16.970 $ 21.150 $ 23.470 $ 22.750
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 23.58% (19.76)% (9.88)% 3.16% 8.33%
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $ 35,292 $ 34,713 $ 47,802 $ 56,798 $ 56,217
Ratios (As a percentage of average daily
net assets):
Expenses(4) 0.71% 0.71% 0.66% 0.67% 0.66%(5)
Net investment income 0.79% 0.59% 0.42% 0.45% 0.51%(5)
Portfolio Turnover of the Portfolio 15% 23% 18% 13% 11%
- -------------------------------------------------------------------------------------------------------------------
</Table>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the start of business, May 14, 1999 to December 31,
1999.
(3) Returns are historical and are calculated by determining the percentage
change in net asset value with all distributions reinvested.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
13
<Page>
EATON VANCE TAX-MANAGED GROWTH FUND 1.1 AS OF DECEMBER 31, 2003
NOTES TO FINANCIAL STATEMENTS
1 SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance Tax-Managed 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 five classes of shares. Class A shares are
generally sold subject to a sales charge imposed at the time of purchase.
Class B and Class C shares are sold at net asset value and are subject to a
contingent deferred sales charge (see Note 6). Class I shares are sold at net
asset value and are not subject to a sales charge. Class S shares were issued
in connection with the acquisition of a private investment company and are
exempt from registration under the Securities Act of 1933. Each class
represents a pro rata interest in the Fund, but votes separately on
class-specific matters and (as noted below) is subject to different expenses.
Realized and unrealized gains and losses and net investment income, other
than class-specific expenses, are allocated daily to each class of shares
based on the relative net assets of each class to the total net assets of the
Fund. Each class of shares differs in its distribution plan and certain other
class-specific expenses. The Fund invests all of its investable assets in
interests of Tax-Managed 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 (23.7% at December 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 consists of the Fund's pro rata
share of the net investment income 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, substantially all of its net
investment income, and all or substantially all of its net realized capital
gains. Accordingly, no provision for federal income or excise tax is
necessary. At December 31, 2003, the Fund, for federal income tax purposes,
had a capital loss carryover of $249,082,424 which will reduce taxable income
arising from future net realized gains 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 December 31, 2010 ($99,588,672), December 31, 2009
($149,077,591), and December 31, 2007 ($416,161).
E OTHER -- Investment transactions are accounted for on a trade-date basis.
Dividends to shareholders are recorded on the ex-dividend date.
F INDEMNIFICATIONS -- Under the Trust's organizational documents, its
officers and Trustees may be indemnified against certain liabilities and
expenses arising out of the performance of their duties to the Fund and
shareholders are indemnified against personal liability for the obligations
of the Trust. Additionally, in the normal course of business, the Fund enters
into agreements with service providers that may contain indemnification
clauses. The Fund's maximum exposure under these arrangements is unknown as
this would involve future claims that may be made against the Fund that have
not yet occurred.
G USE OF ESTIMATES -- The preparation of the financial statements in
conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during the
reporting period. Actual results could differ from those estimates.
14
<Page>
2 DISTRIBUTIONS TO SHAREHOLDERS
The Fund's policy is to distribute annually (normally in December)
substantially all of the net investment income allocated to the Fund by the
Portfolio (less the Fund's direct expenses) and to distribute annually all or
substantially all of its net realized capital gains (reduced by any available
capital loss carryforwards from prior years) allocated by the Portfolio to
the Fund, 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 net asset
value as of the close of business on the ex-dividend date. The Fund
distinguishes between distributions on a tax basis and a financial reporting
basis. Accounting principles generally accepted in the United States of
America require that only distributions in excess of tax basis earnings and
profits be reported in the financial statements as a return of capital.
Permanent differences between book and tax accounting relating to
distributions are reclassified to paid-in capital.
3 SHARES OF BENEFICIAL INTEREST
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Transactions in Fund shares were as follows:
<Table>
<Caption>
YEAR ENDED DECEMBER 31,
------------------------------
CLASS A 2003 2002
--------------------------------------------------------------------------------
Sales 1,627,466 2,643,966
Issued to shareholders electing to receive
payments of distributions in Fund shares 148,644 --
Redemptions (11,213,392) (18,343,345)
--------------------------------------------------------------------------------
NET DECREASE (9,437,282) (15,699,379)
--------------------------------------------------------------------------------
<Caption>
YEAR ENDED DECEMBER 31,
------------------------------
CLASS B 2003 2002
--------------------------------------------------------------------------------
Sales 2,047,870 3,465,882
Redemptions (22,027,706) (32,787,801)
--------------------------------------------------------------------------------
NET DECREASE (19,979,836) (29,321,919)
--------------------------------------------------------------------------------
<Caption>
YEAR ENDED DECEMBER 31,
------------------------------
CLASS C 2003 2002
--------------------------------------------------------------------------------
Sales 1,238,332 2,224,473
Redemptions (8,925,247) (14,531,619)
--------------------------------------------------------------------------------
NET DECREASE (7,686,915) (12,307,146)
--------------------------------------------------------------------------------
<Caption>
YEAR ENDED DECEMBER 31,
------------------------------
CLASS I 2003 2002
--------------------------------------------------------------------------------
Sales 3,579 6,048
Issued to shareholders electing to receive
payments of distributions in Fund shares 126 --
Redemptions (6,640) (6,449)
--------------------------------------------------------------------------------
NET DECREASE (2,935) (401)
--------------------------------------------------------------------------------
<Caption>
YEAR ENDED DECEMBER 31,
------------------------------
CLASS S 2003 2002
--------------------------------------------------------------------------------
Issued to shareholders electing to receive
payments of distributions in Fund shares 2,394 --
Redemptions (357,707) (215,255)
--------------------------------------------------------------------------------
NET DECREASE (355,313) (215,255)
--------------------------------------------------------------------------------
</Table>
4 TRANSACTIONS WITH AFFILIATES
Eaton Vance Management (EVM) serves as the administrator of 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. Effective August 1, 2002, EVM serves as
the sub-transfer agent of the Fund and receives an aggregate fee based on
actual expenses incurred by EVM for the performance of these services. For
the year ended December 31, 2003, EVM earned $383,281 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 advisor fee earned by BMR.
Trustees of the Fund who 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
December 31, 2003, no significant amounts have been deferred.
Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's
principal underwriter, received $75,460 as its portion of the sales charge on
sales of Class A shares for the year ended December 31, 2003.
Certain officers and Trustees of the Fund and the Portfolio are officers of
the above organizations.
15
<Page>
5 DISTRIBUTION AND SERVICE PLAN
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 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 $16,371,795 and $5,822,328 for Class B and Class C shares,
respectively, to or payable to EVD for the year ended December 31, 2003,
representing 0.75% of the average daily net assets for Class B and Class C
shares. At December 31, 2003, the amount of Uncovered Distribution Charges
EVD calculated under the Plan were approximately $69,162,698 and $86,109,810
for Class B and Class C shares, respectively.
The Plans authorize the Fund to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.25% of the
Fund's average daily net assets attributable to Class A, Class B, and Class C
shares for any fiscal year. Service fee payments will be made for personal
services and/or the maintenance of shareholder accounts. Service fees are
separate and distinct from the sales commissions and distribution fees
payable by the Fund to EVD and, as such, are not subject to automatic
discontinuance when there are no outstanding Uncovered Distribution Charges
of EVD. Service fees paid or accrued for the year ended December 31, 2003
amounted to $2,344,021, $5,457,265, and $1,940,776 for Class A, Class B, and
Class C shares, respectively.
Pursuant to a servicing agreement, the Fund makes service fee payments in the
amount of 0.20% of the Fund's average daily net assets attributable to Class
S shares to EVD, one half of which is paid to a subagent. The Fund paid or
accrued service fees to or payable to EVD for the year ended December 31,
2003 in the amount of $67,879.
6 CONTINGENT DEFERRED SALES CHARGE
A contingent deferred sales charge (CDSC) is generally imposed on any
redemption of Class B shares made within six years of purchase and on any
redemption of Class C shares made within one year of purchase. Generally, the
CDSC is based upon the lower of the net asset value at date of redemption or
date of purchase. No charge is levied on shares acquired by reinvestment of
dividends or capital gains distributions. Class A shares may be subject to a
1% CDSC if redeemed within one year of purchase (depending on the
circumstances of purchase). Class B CDSC is imposed at declining rates that
begin at 5% in the case of redemptions in the first and second year after
purchase, declining one percentage point each subsequent year. Class C shares
will be subject to a 1% CDSC if redeemed within one year of purchase.
No CDSC is levied on shares which have been sold to EVM, its affiliates or to
their respective employees or clients and may be waived under certain other
limited conditions. CDSC pertaining to Class B and Class C shares are paid to
EVD to reduce the amount of Uncovered Distribution Charges calculated under
the Plans (see Note 5). CDSC assessed on Class B and Class C shares received
when no Uncovered Distribution Charges exist will be credited to the Fund.
EVD received approximately $178, $5,168,272 and $18,158 of CDSC paid by
shareholders for Class A, Class B and Class C shares, respectively, for the
year ended December 31, 2003.
7 INVESTMENT TRANSACTIONS
Increases and decreases in the Fund's investment in the Portfolio aggregated
$86,129,125 and $772,160,826, respectively, for the year ended December 31,
2003.
16
<Page>
EATON VANCE TAX-MANAGED GROWTH FUND 1.1 AS OF DECEMBER 31, 2003
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES OF EATON VANCE MUTUAL FUNDS
TRUST AND SHAREHOLDERS OF EATON VANCE
TAX-MANAGED GROWTH FUND 1.1:
We have audited the accompanying statement of assets and liabilities of Eaton
Vance Tax-Managed Growth Fund 1.1 (the Fund) (one of the series constituting
Eaton Vance Mutual Funds Trust) as of December 31, 2003, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights present
fairly, in all material respects, the financial position of Eaton Vance
Tax-Managed Growth Fund 1.1 at December 31, 2003, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and its financial highlights for the five years in the
period then ended, in conformity with accounting principles generally accepted
in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 20, 2004
17
<Page>
TAX-MANAGED GROWTH PORTFOLIO AS OF DECEMBER 31, 2003
PORTFOLIO OF INVESTMENTS
COMMON STOCKS -- 99.2%
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------------
AEROSPACE AND DEFENSE -- 2.5%
Boeing Company (The) 797,051 $ 33,587,729
General Dynamics 735,000 66,436,650
Honeywell International, Inc. 275,998 9,226,613
Northrop Grumman Corp. 1,684,522 161,040,303
Raytheon Company 313,599 9,420,514
Rockwell Collins, Inc. 203,032 6,097,051
Teledyne Technologies Incorporated(1) 6,117 115,305
United Technologies Corp. 1,582,098 149,935,427
- --------------------------------------------------------------------------------------
$ 435,859,592
- --------------------------------------------------------------------------------------
AIR FREIGHT AND LOGISTICS -- 2.6%
FedEx Corporation 2,106,578 $ 142,194,015
Robinson (C.H.) Worldwide, Inc. 1,186,638 44,985,447
United Parcel Service, Inc. Class B 3,549,425 264,609,634
- --------------------------------------------------------------------------------------
$ 451,789,096
- --------------------------------------------------------------------------------------
AIRLINES -- 0.0%
Southwest Airlines, Inc. 126,393 $ 2,039,983
- --------------------------------------------------------------------------------------
$ 2,039,983
- --------------------------------------------------------------------------------------
AUTO COMPONENTS -- 0.2%
ArvinMeritor, Inc. 33,635 $ 811,276
Borg-Warner Automotive, Inc. 203,981 17,352,664
Dana Corp. 25,000 458,750
Delphi Automotive Systems Corp. 6,338 64,711
Johnson Controls, Inc. 114,364 13,279,948
Visteon Corp. 10,226 106,453
- --------------------------------------------------------------------------------------
$ 32,073,802
- --------------------------------------------------------------------------------------
AUTOMOBILES -- 0.1%
DaimlerChrysler AG 7,000 $ 323,540
Ford Motor Co. 145,884 2,334,144
General Motors Corp. 13,896 742,046
Harley-Davidson, Inc. 137,700 6,544,881
Honda Motor Co. Ltd. ADR 20,000 450,000
- --------------------------------------------------------------------------------------
$ 10,394,611
- --------------------------------------------------------------------------------------
BEVERAGES -- 3.9%
Anheuser-Busch Companies, Inc. 3,381,243 $ 178,123,881
Coca-Cola Company (The) 3,177,651 161,265,788
Coca-Cola Enterprises, Inc. 1,729,424 $ 37,822,503
PepsiCo., Inc. 6,531,299 304,489,159
- --------------------------------------------------------------------------------------
$ 681,701,331
- --------------------------------------------------------------------------------------
BIOTECHNOLOGY -- 1.7%
Amgen, Inc.(1) 3,861,137 $ 238,618,267
Applera Corp. - Celera Genomics Group(1) 26,000 361,660
Genzyme Corp. - General Division(1) 464,926 22,939,449
Gilead Sciences, Inc.(1) 39,362 2,288,507
Incyte Pharmaceuticals, Inc.(1) 14,294 97,771
Invitrogen Corp.(1) 467,551 32,728,570
Vertex Pharmaceuticals, Inc.(1) 13,000 132,990
- --------------------------------------------------------------------------------------
$ 297,167,214
- --------------------------------------------------------------------------------------
BUILDING PRODUCTS -- 0.9%
American Standard Companies, Inc.(1) 331,609 $ 33,393,026
CRH plc 329,450 6,752,716
Masco Corporation 4,145,436 113,626,401
Water Pik Technologies(1) 2,141 26,270
- --------------------------------------------------------------------------------------
$ 153,798,413
- --------------------------------------------------------------------------------------
CAPITAL MARKETS -- 3.8%
Affiliated Managers Group(1) 13,680 $ 951,991
Bank of New York Co., Inc. (The) 441,413 14,619,599
Bear Stearns Companies, Inc. 83,352 6,663,992
Credit Suisse Group 155,136 5,676,090
Federated Investors, Inc. 1,634,947 48,002,044
Franklin Resources, Inc. 1,508,429 78,528,814
Goldman Sachs Group, Inc. 9,627 950,474
Investors Financial Services Corp. 475,402 18,260,191
Knight Trading Group, Inc.(1) 1,750,000 25,620,000
Legg Mason, Inc. 17,641 1,361,532
Lehman Brothers Holdings, Inc. 57,486 4,439,069
Mellon Financial Corporation 221,912 7,125,594
Merrill Lynch & Co., Inc. 1,761,959 103,338,895
Morgan (J.P.) Chase & Co. 394,005 14,471,804
Morgan Stanley Dean Witter & Co. 4,770,551 276,071,786
Northern Trust Corp. 261,505 12,139,062
Nuveen Investments Class A 150,000 3,999,000
Price (T. Rowe) Group, Inc. 171,434 8,127,686
Raymond James Financial, Inc. 98,225 3,703,082
Schwab (Charles) & Co. 946,055 11,201,291
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------------
CAPITAL MARKETS (CONTINUED)
State Street Corp. 328,000 $ 17,082,240
UBS AG 49,812 3,386,718
Waddell & Reed Financial, Inc., Class A 271,320 6,365,167
- --------------------------------------------------------------------------------------
$ 672,086,121
- --------------------------------------------------------------------------------------
CHEMICALS -- 1.0%
Airgas, Inc. 389,753 $ 8,371,894
Arch Chemicals, Inc. 4,950 127,017
Bayer AG ADR 40,000 1,176,400
Dow Chemical Co. (The) 267,064 11,101,850
DuPont (E.I.) de Nemours & Co. 1,302,039 59,750,570
Ecolab, Inc. 318,168 8,708,258
MacDermid, Inc. 61,937 2,120,723
Monsanto Company 28,797 828,778
Olin Corp. 9,900 198,594
PPG Industries, Inc. 23,542 1,507,159
Rohm and Haas, Co. 2,601 111,089
RPM, Inc. 88,338 1,454,043
Sigma-Aldrich Corp. 630,897 36,074,690
Solutia Inc.(1) 20,293 7,407
Valspar Corp. 818,316 40,441,177
- --------------------------------------------------------------------------------------
$ 171,979,649
- --------------------------------------------------------------------------------------
COMMERCIAL BANKS -- 8.3%
AmSouth Bancorporation 812,145 $ 19,897,552
Associated Banc-Corp 749,148 31,951,162
Bank of America Corporation 2,257,529 181,573,057
Bank of Hawaii Corp. 49,425 2,085,735
Bank of Montreal 269,166 11,116,556
Bank One Corp. 1,786,768 81,458,753
Banknorth Group, Inc. 50,125 1,630,566
BB&T Corp. 1,276,393 49,319,826
Charter One Financial, Inc. 251,993 8,706,358
City National Corp. 273,260 16,974,911
Colonial Bancgroup, Inc. (The) 253,936 4,398,172
Comerica, Inc. 241,725 13,551,103
Commerce Bancshares, Inc. 147,766 7,243,489
Community First Bancshares, Inc. 360,184 10,423,725
Compass Bancshares, Inc. 358,352 14,086,817
Fifth Third Bancorp 1,209,520 71,482,632
First Citizens BancShares, Inc. 43,651 5,304,906
First Financial Bancorp 47,933 764,531
First Midwest Bancorp, Inc. 815,329 $ 26,424,813
First Tennessee National Corporation 157,089 6,927,625
FleetBoston Financial Corporation 715,716 31,241,003
Hibernia Corp. Class A 187,345 4,404,481
HSBC Holdings PLC ADR 608,017 47,923,900
Huntington Bancshares, Inc. 578,423 13,014,517
Keycorp 625,951 18,352,883
M&T Bank Corp. 37,734 3,709,252
Marshall & Ilsley Corp. 683,798 26,155,273
National City Corp. 1,598,288 54,245,895
National Commerce Financial Corp. 1,113,055 30,364,140
North Fork Bancorporation, Inc. 53,534 2,166,521
PNC Bank Corp. 156,003 8,538,044
Popular, Inc. 716 32,177
Regions Financial Corp. 1,624,786 60,442,039
Royal Bank of Scotland Group PLC 50,837 1,497,956
S&T Bancorp, Inc. 100,000 2,990,000
SouthTrust Corp. 506,253 16,569,661
Southwest Bancorporation of Texas, Inc.(1) 815,601 31,686,099
SunTrust Banks, Inc. 425,640 30,433,260
Synovus Financial Corp. 1,345,581 38,914,203
TCF Financial Corporation 28,000 1,437,800
U.S. Bancorp 4,150,861 123,612,641
Union Planters Corp. 703,729 22,160,426
Valley National Bancorp 202,293 5,906,956
Wachovia Corp. 1,901,325 88,582,732
Wells Fargo & Company 3,129,623 184,303,498
Westamerica Bancorporation 268,474 13,343,158
Whitney Holding Corp. 353,200 14,477,668
Zions Bancorporation 252,271 15,471,780
- --------------------------------------------------------------------------------------
$ 1,457,300,252
- --------------------------------------------------------------------------------------
COMMERCIAL SERVICES AND SUPPLIES -- 2.4%
Allied Waste Industries, Inc.(1) 1,674,390 $ 23,240,533
Apollo Group, Inc. Class A(1) 7,599 516,732
Arbitron, Inc.(1) 30,885 1,288,522
Avery Dennison Corp. 1,350,977 75,681,732
Banta Corp. 42,341 1,714,810
Block (H&R), Inc. 732,354 40,550,441
Bowne & Company 172,640 2,340,998
Cendant Corp.(1) 549,359 12,234,225
Century Business Services, Inc.(1) 370,000 1,653,900
Cintas Corp. 1,326,202 66,482,506
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------------
COMMERCIAL SERVICES AND SUPPLIES (CONTINUED)
Consolidated Graphics, Inc.(1) 70,215 $ 2,217,390
Deluxe Corporation 32,000 1,322,560
Donnelley (R.R.) & Sons Co. 200,521 6,045,708
Equifax, Inc. 85,724 2,100,238
Gevity HR, Inc. 78,125 1,737,500
Harland (John H.) Co. 51,540 1,407,042
HON Industries, Inc. 1,552,470 67,253,000
Hudson Highland Group, Inc.(1) 11,581 276,207
Imagistics International Inc.(1) 2,482 93,075
Manpower, Inc. 112,000 5,272,960
Miller (Herman) Inc. 541,800 13,149,486
Monster Worldwide Inc.(1) 154,426 3,391,195
Navigant Consulting, Inc.(1) 463,017 8,732,501
Pitney Bowes, Inc. 89,799 3,647,635
ServiceMaster Co. 1,318,302 15,358,218
Steelcase Inc. 123,000 1,766,280
Sylvan Learning Systems, Inc.(1) 538,458 15,502,206
United Rentals, Inc.(1) 401,179 7,726,708
Waste Management, Inc. 1,255,659 37,167,506
- --------------------------------------------------------------------------------------
$ 419,871,814
- --------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT -- 1.3%
3Com Corp.(1) 873,949 $ 7,140,163
ADC Telecommunications, Inc.(1) 370,286 1,099,749
Advanced Fibre Communication, Inc.(1) 15,000 302,250
Alcatel S.A. ADR(1) 43,728 561,905
Avaya, Inc.(1) 56,960 737,062
Ciena Corp.(1) 380,378 2,525,710
Cisco Systems, Inc.(1) 3,441,441 83,592,602
Comverse Technology, Inc.(1) 386,378 6,796,389
Corning, Inc.(1) 651,520 6,795,354
Enterasys Networks, Inc.(1) 55,945 209,794
JDS Uniphase Corp.(1) 52,451 191,446
Lucent Technologies, Inc.(1) 555,464 1,577,518
McData Corp., Class A(1) 18,562 176,896
Motorola, Inc. 741,114 10,427,474
Nokia Corp., Class A, ADR 4,870,478 82,798,126
Nortel Networks Corp.(1) 1,306,729 5,527,464
Qualcomm, Inc. 344,112 18,557,960
Riverstone Networks, Inc.(1) 28,706 31,864
Tellabs, Inc.(1) 118,404 998,146
- --------------------------------------------------------------------------------------
$ 230,047,872
- --------------------------------------------------------------------------------------
COMPUTERS AND PERIPHERALS -- 3.1%
Dell, Inc.(1) 4,305,989 $ 146,231,386
EMC Corp.(1) 1,104,455 14,269,559
Gateway, Inc.(1) 99,407 457,272
Hewlett-Packard Co. 1,197,265 27,501,177
International Business Machines Corp. 2,286,121 211,877,694
Lexmark International Group, Inc.(1) 1,704,885 134,072,156
Network Appliance, Inc.(1) 488,000 10,018,640
Palmone, Inc.(1) 65,230 766,453
Sun Microsystems, Inc.(1) 370,670 1,664,308
- --------------------------------------------------------------------------------------
$ 546,858,645
- --------------------------------------------------------------------------------------
CONSTRUCTION AND ENGINEERING -- 0.1%
Dycom Industries, Inc.(1) 151,725 $ 4,069,264
Jacobs Engineering Group, Inc.(1) 354,741 17,031,115
- --------------------------------------------------------------------------------------
$ 21,100,379
- --------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS -- 0.0%
Vulcan Materials Company 184,512 $ 8,777,236
- --------------------------------------------------------------------------------------
$ 8,777,236
- --------------------------------------------------------------------------------------
CONSUMER FINANCE -- 0.9%
American Express Co. 521,715 $ 25,162,314
Capital One Financial Corp. 1,245,321 76,325,724
MBNA Corporation 456,002 11,331,650
Providian Financial Corp.(1) 457,296 5,322,925
SLM Corp. 905,499 34,119,202
- --------------------------------------------------------------------------------------
$ 152,261,815
- --------------------------------------------------------------------------------------
CONTAINERS AND PACKAGING -- 0.1%
Bemis Co. 207,593 $ 10,379,650
Caraustar Industries, Inc.(1) 192,532 2,656,942
Sealed Air Corp.(1) 37,014 2,003,938
Sonoco Products Co. 160,690 3,956,188
Temple-Inland, Inc. 57,962 3,632,479
- --------------------------------------------------------------------------------------
$ 22,629,197
- --------------------------------------------------------------------------------------
DEPARTMENT STORES -- 0.0%
Neiman Marcus Group, Inc. (The)(1) 27,117 $ 1,355,850
- --------------------------------------------------------------------------------------
$ 1,355,850
- --------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------------
DISTILLERS AND VINTNERS -- 0.1%
Brown-Forman Corp. Class A 154,012 $ 14,931,463
- --------------------------------------------------------------------------------------
$ 14,931,463
- --------------------------------------------------------------------------------------
DISTRIBUTORS -- 0.0%
Genuine Parts Company 188,609 $ 6,261,819
- --------------------------------------------------------------------------------------
$ 6,261,819
- --------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES -- 1.6%
Citigroup Inc. 4,030,512 $ 195,641,052
Finova Group, Inc.(1) 175,587 114,132
ING groep, N.V. ADR 216,111 5,059,159
Moody's Corp. 47,543 2,878,729
Royal Bank of Canada 321,353 15,322,111
Societe Generale 809,647 71,487,377
- --------------------------------------------------------------------------------------
$ 290,502,560
- --------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 2.3%
Alltel Corp. 1,488,598 $ 69,338,895
AT&T Corp. 473,645 9,614,993
BCE, Inc. 4,500,000 100,620,000
BellSouth Corp. 457,572 12,949,288
Cincinnati Bell Inc.(1) 169,013 853,516
Citizens Communications Co.(1) 14,252 177,010
Deutsche Telekom AG(1) 1,956,790 35,476,603
PTEK Holdings, Inc.(1) 28,000 246,680
Qwest Communications International, Inc.(1) 59,924 258,872
RSL Communications Ltd.(1) 247,161 2,472
SBC Communications, Inc. 1,493,660 38,939,716
Sprint Corp. - FON Group 167,078 2,743,421
Talk America Holdings, Inc.(1) 42,372 488,125
Telefonos de Mexico ADR 3,000,000 99,090,000
Verizon Communications 954,938 33,499,225
WorldCom, Inc.(1) 98,634 1,302
WorldCom, Inc. - MCI Group(1) 42,805 2,097
- --------------------------------------------------------------------------------------
$ 404,302,215
- --------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 0.2%
Ameren Corp. 5,000 $ 230,000
American Electric Power, Inc. 960 29,290
Dominion Resources, Inc. 10,464 667,917
Exelon Corp. 500,000 33,180,000
PG&E Corp.(1) 47,705 1,324,768
TECO Energy, Inc. 35,511 $ 511,714
TXU Corp. 250,196 5,934,649
Wisconsin Energy Corp. 9,576 320,317
- --------------------------------------------------------------------------------------
$ 42,198,655
- --------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT -- 0.6%
American Power Conversion Corp. 36,671 $ 896,606
Baldor Electric Co. 149,060 3,406,021
Emerson Electric Co. 1,309,555 84,793,686
Rockwell International Corp. 179,520 6,390,912
Thomas & Betts Corp. 114,600 2,623,194
- --------------------------------------------------------------------------------------
$ 98,110,419
- --------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT AND INSTRUMENTS -- 0.9%
Agilent Technologies, Inc.(1) 599,247 $ 17,521,982
Arrow Electronics, Inc.(1) 8,750 202,475
Flextronics International Ltd.(1) 282,653 4,194,571
Jabil Circuit, Inc.(1) 2,127,971 60,221,579
Molex, Inc., Class A 112,582 3,305,408
National Instruments Corp. 490,458 22,301,125
PerkinElmer, Inc. 300,081 5,122,383
Plexus Corp.(1) 209,946 3,604,773
Roper Industries, Inc. 23,122 1,138,990
Sanmina Corp.(1) 1,164,972 14,690,297
Solectron Corporation(1) 1,818,848 10,749,392
Waters Corp.(1) 165,841 5,499,288
X-Rite Incorporated 361,707 4,094,523
- --------------------------------------------------------------------------------------
$ 152,646,786
- --------------------------------------------------------------------------------------
ENERGY EQUIPMENT AND SERVICES -- 0.5%
Baker Hughes, Inc. 520,182 $ 16,729,053
Core Laboratories N.V.(1) 109,787 1,832,345
Grant Prideco, Inc.(1) 124,234 1,617,527
Halliburton Company 481,502 12,519,052
National-Oilwell, Inc.(1) 686,929 15,359,732
Schlumberger Ltd. 484,178 26,494,220
Smith International, Inc.(1) 140,000 5,812,800
Transocean Sedco Forex, Inc.(1) 6,315 151,623
- --------------------------------------------------------------------------------------
$ 80,516,352
- --------------------------------------------------------------------------------------
FOOD AND STAPLES RETAILING -- 2.3%
Albertson's, Inc. 1,172,238 $ 26,551,191
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------------
FOOD AND STAPLES RETAILING (CONTINUED)
Casey's General Stores, Inc. 91,201 $ 1,610,610
Costco Wholesale Corp.(1) 1,220,435 45,375,773
CVS Corp. 177,839 6,423,545
Kroger Co. (The)(1) 1,201,784 22,245,022
Safeway, Inc.(1) 1,270,912 27,845,682
Sysco Corp. 1,601,774 59,634,046
Sysco Corp.(2)(3) 32,036 1,190,911
Walgreen Co. 665,292 24,203,323
Wal-Mart Stores, Inc. 3,674,877 194,952,225
Winn-Dixie Stores, Inc. 225,735 2,246,063
- --------------------------------------------------------------------------------------
$ 412,278,391
- --------------------------------------------------------------------------------------
FOOD PRODUCTS -- 2.3%
Archer-Daniels-Midland Co. 316,652 $ 4,819,443
Campbell Soup Co. 1,243,047 33,313,660
Conagra Inc. 1,638,964 43,252,260
Dean Foods Co.(1) 504,216 16,573,580
Del Monte Foods, Co.(1) 103,109 1,072,334
General Mills, Inc. 286,539 12,980,217
Heinz (H.J.) Co. 298,859 10,887,433
Hershey Foods Corp. 244,744 18,842,841
JM Smucker Co. 19,265 872,512
Kellogg Co. 69,795 2,657,794
Kraft Foods, Inc. 165 5,316
McCormick & Co., Inc. 219,798 6,615,920
Nestle SA 200,000 49,969,679
Riviana Foods, Inc. 250,000 6,847,500
Sara Lee Corp. 2,601,502 56,478,608
Smithfield Foods, Inc.(1) 4,207,530 87,095,871
Tyson Foods, Inc. 315,272 4,174,201
Wrigley (Wm.) Jr. Company Class A 933,873 52,493,001
- --------------------------------------------------------------------------------------
$ 408,952,170
- --------------------------------------------------------------------------------------
GAS UTILITIES -- 0.6%
Kinder Morgan, Inc. 1,781,672 $ 105,296,815
- --------------------------------------------------------------------------------------
$ 105,296,815
- --------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT AND SUPPLIES -- 1.4%
Advanced Medical Optics(1) 3,744 $ 73,570
Bausch & Lomb, Inc. 29,250 1,518,075
Baxter International, Inc. 201,413 6,147,125
Becton & Dickinson and Co. 64,173 $ 2,640,077
Biomet, Inc. 411,340 14,976,889
Boston Scientific Corporation(1) 1,083,970 39,846,737
Dentsply International, Inc. 11,325 511,550
Edwards Lifesciences Corp.(1) 15,420 463,834
Guidant Corp. 54,692 3,292,458
Hillenbrand Industries, Inc. 638,072 39,598,748
Lumenis Ltd.(1) 100,000 135,000
Medtronic, Inc. 2,259,696 109,843,823
Millipore Corporation(1) 70,000 3,013,500
St. Jude Medical, Inc.(1) 10,014 614,359
Steris Corp.(1) 19,538 441,559
VISX, Inc.(1) 50,000 1,157,500
Zimmer Holdings, Inc.(1) 251,155 17,681,312
- --------------------------------------------------------------------------------------
$ 241,956,116
- --------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS AND SERVICES -- 2.0%
AmerisourceBergen Corp. 104,493 $ 5,867,282
Andrx Group(1) 393,772 9,466,279
Beverly Enterprises, Inc.(1) 357,143 3,067,858
Cardinal Health, Inc. 1,837,836 112,402,050
Cigna Corp. 11,836 680,570
Express Scripts, Inc.(1) 14,002 930,153
HCA Inc. 253,450 10,888,212
Health Management Associates, Inc., Class A 1,036,833 24,883,992
IDX Systems Corp.(1) 60,000 1,609,200
IMS Health, Inc. 280,530 6,973,976
McKesson HBOC, Inc. 101,169 3,253,595
Medco Health Solutions, Inc.(1) 131,480 4,469,005
Parexel International Corp.(1) 35,000 569,100
Quest Diagnostics, Inc. 8,750 639,712
Renal Care Group, Inc.(1) 371,007 15,285,488
Schein (Henry), Corp.(1) 1,272,548 85,998,794
Service Corp. International(1) 142,389 767,477
Stewart Enterprises, Inc.(1) 114,000 647,520
Sunrise Assisted Living, Inc.(1) 144,000 5,578,560
Tenet Healthcare Corp.(1) 3,961 63,574
UnitedHealth Group, Inc. 184,976 10,761,904
ValueVentiv Health, Inc.(1) 160,833 1,471,622
Wellpoint Health Networks(1) 404,000 39,183,960
- --------------------------------------------------------------------------------------
$ 345,459,883
- --------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
22
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<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------------
HOTELS, RESTAURANTS AND LEISURE -- 1.6%
Brinker International, Inc.(1) 459,469 $ 15,235,992
Carnival Corporation 559,353 22,223,095
CBRL Group, Inc. 62,047 2,373,918
Darden Restaurants Inc. 184,714 3,886,383
Evans (Bob) Farms, Inc. 51,662 1,676,949
Gaylord Entertainment Co.(1) 428,482 12,790,188
International Game Technology 400,000 14,280,000
International Speedway Corporation 118,344 5,285,243
Jack in the Box, Inc.(1) 500,000 10,680,000
Lone Star Steakhouse & Saloon, Inc. 145,981 3,383,840
Marriott International, Inc. 332,298 15,352,168
McDonald's Corp. 1,176,299 29,207,504
MGM Grand, Inc.(1) 94,445 3,552,076
Navigant International, Inc.(1) 44,278 613,250
Outback Steakhouse, Inc. 1,641,207 72,557,761
Papa John's International, Inc.(1) 199,488 6,658,909
Royal Caribbean Cruises Ltd. 500,000 17,395,000
Sonic Corp.(1) 106,510 3,261,336
Starbucks Corp.(1) 1,255,994 41,523,162
Yum! Brands, Inc.(1) 241,659 8,313,070
- --------------------------------------------------------------------------------------
$ 290,249,844
- --------------------------------------------------------------------------------------
HOUSEHOLD DURABLES -- 0.5%
Blyth Industries, Inc. 742,373 $ 23,919,258
Department 56, Inc.(1) 255,162 3,342,622
Fortune Brands Inc. 142,143 10,161,803
Helen of Troy Ltd.(1) 20,000 463,000
Interface, Inc. Class A(1) 75,467 417,333
Leggett & Platt, Inc. 1,581,019 34,197,441
Maytag Corp. 27,073 753,983
Newell Rubbermaid, Inc. 438,432 9,983,097
Snap-On, Inc. 51,429 1,658,071
- --------------------------------------------------------------------------------------
$ 84,896,608
- --------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS -- 1.8%
Clorox Co. (The) 53,688 $ 2,607,089
Colgate-Palmolive Co. 676,711 33,869,386
Energizer Holdings(1) 168,981 6,346,926
Kimberly-Clark Corp. 1,535,512 90,733,404
Procter & Gamble Co. 1,877,616 187,536,286
- --------------------------------------------------------------------------------------
$ 321,093,091
- --------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES -- 1.9%
3M Co. 564,132 $ 47,968,144
General Electric Co. 8,283,871 256,634,324
Teleflex, Inc. 47,559 2,298,526
Tyco International Ltd. 1,176,566 31,178,999
- --------------------------------------------------------------------------------------
$ 338,079,993
- --------------------------------------------------------------------------------------
INSURANCE -- 6.3%
21st Century Insurance Group 70,700 $ 972,125
Aegon N.V. ADR 5,311,829 78,615,069
AFLAC Corp. 2,092,063 75,690,839
Allstate Corp. (The) 188,362 8,103,333
American International Group, Inc. 5,434,795 360,218,213
AON Corp. 826,887 19,795,675
Berkshire Hathaway, Inc., Class A(1) 393 33,110,250
Berkshire Hathaway, Inc., Class B(1) 40,126 112,954,690
Chubb Corporation 3,901 265,658
Commerce Group, Inc. 120,000 4,740,000
Delphi Financial Group Inc. 9,672 348,192
Gallagher (Arthur J.) and Co. 991,627 32,217,961
Hartford Financial Services Group, Inc. 11,800 696,554
Jefferson-Pilot Corp. 211,013 10,687,808
Kansas City Life Insurance Co. 70,800 3,270,960
Lincoln National Corp. 52,903 2,135,694
Manulife Financial Corp. 74,958 2,421,143
Marsh & McLennan Cos., Inc. 1,830,750 87,674,617
MetLife, Inc. 1,969,700 66,319,799
Old Republic International Corp. 195,360 4,954,330
Progressive Corp. 1,855,100 155,067,809
Safeco Corp. 177,122 6,895,359
St. Paul Companies, Inc. (The) 325,275 12,897,154
Torchmark Corp. 440,119 20,043,019
Travelers Property Casualty - Class A 196,364 3,294,988
Travelers Property Casualty - Class B 403,442 6,846,411
UICI(1) 43,597 578,968
UnumProvident Corp. 53,710 847,007
XL Capital Ltd., Class A 79,232 6,144,442
- --------------------------------------------------------------------------------------
$ 1,117,808,067
- --------------------------------------------------------------------------------------
INTEGRATED TELECOMMUNICATION SERVICES -- 0.0%
McLeodUSA(1) 35,538 $ 52,596
- --------------------------------------------------------------------------------------
$ 52,596
- --------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
23
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<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------------
INTERNET AND CATALOG RETAIL -- 0.4%
eBay, Inc(1)(2)(3) 200,000 $ 12,909,926
eBay, Inc.(1) 89,632 5,789,331
eBay, Inc.(1)(2)(3) 318,000 20,534,485
InterActiveCorp.(1) 806,192 27,354,095
School Specialty Corp.(1) 49,197 1,673,190
- --------------------------------------------------------------------------------------
$ 68,261,027
- --------------------------------------------------------------------------------------
INTERNET SOFTWARE AND SERVICES -- 0.0%
Retek, Inc.(1) 150,348 $ 1,395,229
- --------------------------------------------------------------------------------------
$ 1,395,229
- --------------------------------------------------------------------------------------
IT SERVICES -- 3.1%
Accenture Ltd.(1) 3,638,000 $ 95,752,160
Acxiom Corp.(1) 647,804 12,029,720
Affiliated Computer Services(1) 200,654 10,927,617
Automatic Data Processing, Inc. 2,223,695 88,080,559
BISYS Group, Inc. (The)(1) 280,492 4,173,721
Ceridian Corp.(1) 166,750 3,491,745
Certegy, Inc. 42,862 1,405,874
Computer Sciences Corp.(1) 388,302 17,174,597
Concord EFS, Inc.(1) 267,810 3,974,300
CSG Systems International, Inc.(1) 41,116 513,539
DST Systems, Inc.(1) 391,034 16,329,580
eFunds Corp.(1) 17,645 306,141
Electronic Data Systems Corp. 157,712 3,870,252
First Data Corp. 4,920,602 202,187,536
Gartner Group, Inc., Class A(1) 4,811 54,412
Gartner Group, Inc., Class B(1) 92,416 1,005,486
Keane, Inc.(1) 52,404 767,195
Paychex, Inc. 1,379,399 51,313,643
Perot Systems Corp.(1) 726,775 9,796,927
Safeguard Scientifics, Inc.(1) 26,579 107,379
SunGard Data Systems, Inc.(1) 822,160 22,782,054
- --------------------------------------------------------------------------------------
$ 546,044,437
- --------------------------------------------------------------------------------------
LEISURE EQUIPMENT AND PRODUCTS -- 0.0%
Eastman Kodak Co. 150,547 $ 3,864,541
Mattel, Inc. 9,739 187,671
- --------------------------------------------------------------------------------------
$ 4,052,212
- --------------------------------------------------------------------------------------
MACHINERY -- 3.0%
Caterpillar, Inc. 27,255 $ 2,262,710
Danaher Corporation 2,015,985 $ 184,966,624
Deere & Co. 3,450,000 224,422,500
Dionex Corp.(1) 139,750 6,431,295
Donaldson Company, Inc. 40,220 2,379,415
Dover Corp. 375,527 14,927,198
Federal Signal Corp. 283,471 4,966,412
Illinois Tool Works, Inc. 756,502 63,478,083
ITT Industries, Inc. 4,214 312,721
Nordson Corporation 163,978 5,662,160
Parker-Hannifin Corporation 33,842 2,013,599
Tecumseh Products Co., Class A 156,420 7,575,421
Wabtec 232,061 3,954,319
- --------------------------------------------------------------------------------------
$ 523,352,457
- --------------------------------------------------------------------------------------
MEDIA -- 7.0%
ADVO, Inc. 794,552 $ 25,234,972
Belo (A.H.) Corp. 542,924 15,386,466
Cablevision Systems Corp.(1) 207,410 4,851,320
Catalina Marketing Corp.(1) 89,203 1,798,332
Clear Channel Communications, Inc. 424,444 19,876,713
Comcast Corp. Class A(1) 4,466,124 146,801,496
Comcast Corp. Class A Special(1) 2,280,622 71,337,856
Cox Communications, Inc., Class A(1) 1,265,627 43,600,850
Disney (Walt) Company 6,250,933 145,834,267
EchoStar Communications, Class A(1) 35,150 1,195,100
Entercom Communications Corp.(1) 220,000 11,651,200
Gannett Co., Inc. 1,447,727 129,079,339
Havas Advertising, S.A. ADR 3,142,938 18,417,617
Hughes Electronics Corp.(1) 24 397
Interpublic Group of Companies., Inc.(1) 1,520,905 23,726,118
KnightRidder, Inc. 18,123 1,402,177
Lamar Advertising Co.(1) 243,271 9,078,874
Liberty Media Corp. Class A(1) 965,499 11,479,783
Liberty Media Corp. Class B(1) 32,876 453,689
MacClatchy Co. (The) 48,066 3,306,941
McGraw-Hill Companies, Inc. (The) 246,964 17,267,723
Meredith Corp. 190,000 9,273,900
New York Times Co. (The), Class A 282,204 13,486,529
News Corporation Ltd. 93,967 2,842,502
Omnicom Group, Inc. 2,334,382 203,861,580
Proquest Company(1) 115,000 3,386,750
Publicis Groupe SA 367,533 11,914,205
Reuters Holdings plc ADR 1,431 36,319
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
24
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<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------------
MEDIA (CONTINUED)
Scripps (The E.W) Company 25,533 $ 2,403,677
Time Warner Inc.(1) 3,754,241 67,538,796
Tribune Co. 1,501,683 77,486,843
Univision Communications, Inc.(1) 917,233 36,404,978
Viacom, Inc., Class A 29,774 1,318,095
Viacom, Inc., Class B 1,383,821 61,413,976
Vivendi Universal S.A. ADR(1) 490,725 11,914,803
Washington Post Co. (The) 14,970 11,847,258
Westwood One, Inc.(1) 122,400 4,187,304
WPP Group plc 139,450 1,369,256
WPP Group plc ADR 209,454 10,294,664
- --------------------------------------------------------------------------------------
$ 1,232,762,665
- --------------------------------------------------------------------------------------
METALS AND MINING -- 0.2%
Alcoa, Inc. 558,287 $ 21,214,906
Allegheny Technologies, Inc. 21,408 283,014
Nucor Corp. 221,462 12,401,872
Phelps Dodge Corp.(1) 14,862 1,130,850
Steel Dynamics, Inc.(1) 311,800 7,324,182
Worthington Industries, Inc. 147,466 2,658,812
- --------------------------------------------------------------------------------------
$ 45,013,636
- --------------------------------------------------------------------------------------
MULTILINE RETAIL -- 1.8%
99 Cents Only Stores(1) 1,142,232 $ 31,102,977
Dollar General Corp. 101,456 2,129,561
Dollar Tree Stores, Inc.(1) 813,306 24,447,978
Family Dollar Stores, Inc. 2,618,411 93,948,587
Kohls Corp.(1) 55 2,472
May Department Stores Co. (The) 632,760 18,394,333
Nordstrom, Inc. 65,692 2,253,236
Penney (J.C.) Company, Inc. 529,169 13,906,561
Sears, Roebuck & Co. 16,950 771,055
Target Corp. 3,576,019 137,319,130
- --------------------------------------------------------------------------------------
$ 324,275,890
- --------------------------------------------------------------------------------------
MULTI-UTILITIES AND UNREGULATED POWER -- 0.1%
AES Corporation(1) 49,542 $ 467,676
Duke Energy Corp. 419,154 8,571,699
Dynegy, Inc.(1) 63,525 271,887
El Paso Corp. 175,909 1,440,695
National Fuel Gas Co. 4,000 97,760
Williams Companies. Inc. (The) 222,833 $ 2,188,220
- --------------------------------------------------------------------------------------
$ 13,037,937
- --------------------------------------------------------------------------------------
OFFICE ELECTRONICS -- 0.0%
Ikon Office Solutions, Inc. 83,040 $ 984,854
Xerox Corp.(1) 20,000 276,000
Zebra Technologies Corp., Class A(1) 9,000 597,330
- --------------------------------------------------------------------------------------
$ 1,858,184
- --------------------------------------------------------------------------------------
OIL AND GAS -- 5.9%
Amerada Hess Corp. 18,947 $ 1,007,412
Anadarko Petroleum Corp. 2,557,003 130,432,723
Apache Corporation 1,035,690 83,994,459
Ashland, Inc. 85,716 3,776,647
BP plc ADR 5,056,838 249,554,955
Burlington Resources, Inc. 2,130,802 118,003,815
ChevronTexaco Corporation 123,875 10,701,561
ConocoPhillips 1,790,067 117,374,693
Devon Energy Corp. 507,678 29,069,642
Exxon Mobil Corp. 5,811,941 238,289,581
Kerr - McGee Corp. 267,327 12,428,032
Marathon Oil Corp. 1,450 47,980
Murphy Oil Corporation 13,200 862,092
Newfield Exploration Company(1) 60,000 2,672,400
Royal Dutch Petroleum Co. 96,661 5,064,070
Total Fina Elf SA ADR 400,000 37,004,000
Valero Energy Corp. 51,510 2,386,973
- --------------------------------------------------------------------------------------
$ 1,042,671,035
- --------------------------------------------------------------------------------------
PAPER AND FOREST PRODUCTS -- 0.2%
Georgia-Pacific Corp. 647,002 $ 19,843,551
International Paper Co. 232,175 10,009,064
Louisiana-Pacific Corp.(1) 70,750 1,265,010
MeadWestvaco Corp. 84,358 2,509,651
Weyerhaeuser Co. 119,608 7,654,912
- --------------------------------------------------------------------------------------
$ 41,282,188
- --------------------------------------------------------------------------------------
PERSONAL PRODUCTS -- 1.4%
Avon Products, Inc. 186,700 $ 12,600,383
Gillette Company 3,929,412 144,327,303
Lauder (Estee) Companies, Inc. 2,092,312 82,144,169
- --------------------------------------------------------------------------------------
$ 239,071,855
- --------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------------
PHARMACEUTICALS -- 7.0%
Abbott Laboratories 2,482,012 $ 115,661,759
Allergan, Inc. 38,840 2,983,300
Bristol-Myers Squibb Company 3,201,708 91,568,849
Elan Corp., PLC ADR(1) 31,838 219,364
Forest Laboratories, Inc.(1) 656,800 40,590,240
GlaxoSmithKline plc 433,759 20,221,845
Johnson & Johnson 2,917,570 150,721,666
King Pharmaceuticals, Inc.(1) 1,481,117 22,601,845
Lilly (Eli) & Co. 3,173,638 223,201,961
Merck & Co., Inc. 1,611,471 74,449,960
Mylan Laboratories, Inc. 27,992 707,078
Novo Nordisk ADR 292,277 11,971,666
Pfizer, Inc. 7,799,066 275,541,002
Schering AG ADR 25,000 1,277,500
Schering-Plough Corp. 2,478,438 43,100,037
Sepracor, Inc.(1) 4,000 95,720
Teva Pharmaceutical Industries Ltd. ADR 1,200,000 68,052,000
Watson Pharmaceuticals, Inc.(1) 951,175 43,754,050
Wyeth Corp. 974,196 41,354,620
- --------------------------------------------------------------------------------------
$ 1,228,074,462
- --------------------------------------------------------------------------------------
REAL ESTATE -- 0.2%
AvalonBay Communities, Inc. 55,000 $ 2,629,000
Catellus Development Corp. 441,282 10,643,722
Jones Lang Lasalle, Inc.(1) 154,567 3,204,174
Plum Creek Timber Co., Inc. 198,791 6,053,186
Trammell Crow Co.(1) 804,200 10,655,650
- --------------------------------------------------------------------------------------
$ 33,185,732
- --------------------------------------------------------------------------------------
ROAD AND RAIL -- 0.2%
ANC Rental Corporation(1) 459,525 $ 46
Burlington Northern Santa Fe Corp. 203,594 6,586,266
CSX Corporation 38,134 1,370,536
Florida East Coast Industries, Inc. 121,978 4,037,472
Heartland Express, Inc. 435,436 10,533,197
Kansas City Southern Industries, Inc.(1) 15,215 217,879
Norfolk Southern Corp. 3,990 94,364
Union Pacific Corp. 92,772 6,445,799
- --------------------------------------------------------------------------------------
$ 29,285,559
- --------------------------------------------------------------------------------------
SEMICONDUCTORS AND SEMICONDUCTOR
EQUIPMENT -- 2.6%
Agere Systems, Inc.(1) 6,495 $ 19,810
Agere Systems, Inc., Class B(1) 159,398 462,254
Altera Corp.(1) 66,116 1,500,833
Analog Devices, Inc.(1) 555,525 25,359,716
Applied Materials, Inc.(1) 418,392 9,392,900
Applied Materials, Inc.(1)(2)(3) 543,250 12,183,767
Broadcom Corp.(1) 234,000 7,977,060
Conexant Systems, Inc.(1) 134,174 666,845
Cypress Semiconductor Corporation(1) 152,742 3,262,569
Intel Corp. 9,103,378 293,128,772
KLA-Tencor Corp.(1) 108,382 6,358,772
KLA-Tencor Corp.(1)(2)(3) 50,000 2,929,100
Linear Technologies Corp. 87,760 3,692,063
LSI Logic Corporation(1) 132,810 1,178,025
Maxim Integrated Products Co. 274,351 13,662,680
Mindspeed Technologies Inc.(1) 44,724 306,359
Skyworks Solutions, Inc.(1) 98,685 858,560
Taiwan Semiconductor ADR(1) 1,000,000 10,240,000
Teradyne, Inc.(1) 27,996 712,498
Texas Instruments, Inc. 1,970,330 57,888,295
Xilinx, Inc.(1) 68,518 2,654,387
- --------------------------------------------------------------------------------------
$ 454,435,265
- --------------------------------------------------------------------------------------
SOFTWARE -- 2.5%
Adobe Systems, Inc. 261,994 $ 10,296,364
BMC Software, Inc.(1) 27,000 503,550
Cadence Design Systems, Inc.(1) 900,000 16,182,000
Cognos, Inc.(1) 77,000 2,357,740
Computer Associates International, Inc. 33,070 904,134
Compuware Corp.(1) 150,944 911,702
Fair, Isaac and Co., Inc. 707,571 34,784,190
Henry (Jack) & Associates 201,006 4,136,703
I2 Technologies, Inc.(1) 233,752 388,028
Intuit, Inc.(1) 1,108,389 58,644,862
Microsoft Corp. 9,489,802 261,349,147
Oracle Corp.(1) 737,178 9,730,750
PalmSource, Inc.(1) 20,208 440,332
Parametric Technology Corp.(1) 94,600 372,724
PeopleSoft, Inc.(1) 300,680 6,855,504
Reynolds & Reynolds, Co. 451,043 13,102,799
Siebel Systems, Inc.(1) 816,061 11,318,766
Symantec Corporation(1) 30,450 1,055,093
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------------
SOFTWARE (CONTINUED)
VERITAS Software Corp.(1) 43,942 $ 1,632,885
Wind River Systems, Inc.(1) 91,910 805,132
- --------------------------------------------------------------------------------------
$ 435,772,405
- --------------------------------------------------------------------------------------
SPECIALTY RETAIL -- 2.2%
Abercrombie & Fitch Co.(1) 14,915 $ 368,550
AutoNation, Inc.(1) 3,744,851 68,792,913
Best Buy Co., Inc. 313,610 16,382,986
Boise Cascade Corporation 2,192 72,029
Burlington Coat Factory Warehouse Corp. 609,010 12,886,652
Carmax, Inc.(1) 67,797 2,096,961
Circuit City Stores, Inc. 216,000 2,188,080
Gap, Inc. (The) 541,012 12,556,889
Home Depot, Inc. (The) 3,469,933 123,147,922
Limited Brands, Inc. 813,017 14,658,697
Lowe's Companies 963,356 53,360,289
Office Depot, Inc.(1) 238,664 3,988,075
Payless Shoesource, Inc.(1) 23,100 309,540
Pep Boys - Manny, Moe & Jack (The) 83,415 1,907,701
Pier 1 Imports, Inc. 44,982 983,307
RadioShack Corp. 677,904 20,798,095
Sherwin-Williams Co. (The) 80,569 2,798,967
Staples, Inc.(1) 92,500 2,525,250
Tiffany & Co. 88,000 3,977,600
TJX Companies, Inc. (The) 2,016,834 44,471,190
Too, Inc.(1) 38,284 646,234
- --------------------------------------------------------------------------------------
$ 388,917,927
- --------------------------------------------------------------------------------------
TEXTILES, APPAREL AND LUXURY GOODS -- 0.5%
Coach, Inc.(1) 365,720 $ 13,805,930
Nike Inc., Class B 1,079,222 73,883,538
Unifi, Inc.(1) 42,921 276,840
- --------------------------------------------------------------------------------------
$ 87,966,308
- --------------------------------------------------------------------------------------
THRIFTS AND MORTGAGE FINANCE -- 0.8%
Countrywide Financial Corp. 133,333 $ 10,113,308
Fannie Mae 406,147 30,485,394
Freddie Mac 135,586 7,907,376
Golden West Financial Corporation 21,845 2,254,186
GreenPoint Financial Corp. 1,081,474 38,197,662
MGIC Investment Corp. 85,000 4,839,900
Radian Group, Inc. 30,800 1,501,500
Sovereign Bancorporation, Inc. 23,766 $ 564,443
Washington Mutual, Inc. 1,204,074 48,307,449
- --------------------------------------------------------------------------------------
$ 144,171,218
- --------------------------------------------------------------------------------------
TOBACCO -- 0.2%
Altria Group Inc. 593,732 $ 32,310,895
UST, Inc. 439 15,668
- --------------------------------------------------------------------------------------
$ 32,326,563
- --------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES -- 0.1%
AT&T Wireless Services, Inc.(1) 1,321,244 $ 10,556,740
Nextel Communications, Inc., Class A(1) 73,122 2,051,803
Sprint Corp. - PCS Group(1) 19,754 111,017
Telephone and Data Systems, Inc. 70,844 4,431,292
Vodafone Group plc ADR 116,617 2,920,090
- --------------------------------------------------------------------------------------
$ 20,070,942
- --------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $14,558,336,419) $17,461,971,848
- --------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS -- 0.0%
MULTI-UTILITIES AND UNREGULATED POWER -- 0.0%
Enron Corp.(1)(2) 11,050 $ 8,448
- --------------------------------------------------------------------------------------
$ 8,448
- --------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $4,500,777) $ 8,448
- --------------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.0%
COMMERCIAL BANKS -- 0.0%
Wachovia Corp. (Dividend
Equalization Preferred Shares)(1) 166,518 $ 832
- --------------------------------------------------------------------------------------
$ 832
- --------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS
(IDENTIFIED COST $39,407) $ 832
- --------------------------------------------------------------------------------------
RIGHTS -- 0.0%
BANKS -- 0.0%
Bank United Corp. (Litigation
Contingent Payment Rights)(1) 102,072 $ 12,249
- --------------------------------------------------------------------------------------
$ 12,249
- --------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<Page>
<Table>
<Caption>
SECURITY SHARES VALUE
- --------------------------------------------------------------------------------------
COMPUTERS AND BUSINESS EQUIPMENT -- 0.0%
Seagate Technology, Inc. (Tax Refund Rights)(1)(2) 197,392 $ 0
- --------------------------------------------------------------------------------------
$ 0
- --------------------------------------------------------------------------------------
INTEGRATED TELECOMMUNICATION SERVICES -- 0.0%
McLeodUSA (Escrow Rights)(1)(2) 1,592,200 $ 0
- --------------------------------------------------------------------------------------
$ 0
- --------------------------------------------------------------------------------------
TOTAL RIGHTS
(IDENTIFIED COST $50,596) $ 12,249
- --------------------------------------------------------------------------------------
</Table>
SHORT-TERM INVESTMENTS -- 0.3%
<Table>
<Caption>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
- --------------------------------------------------------------------------------------
Investors Bank & Trust Company -
Time Deposit, 1.01%, 1/2/04 $ 47,415 $ 47,415,330
- --------------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(AT AMORTIZED COST, $47,415,330) $ 47,415,330
- -------------------------------------------------------------------------------------
</Table>
COMMERCIAL PAPER -- 0.4%
<Table>
<Caption>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
- --------------------------------------------------------------------------------------
Old Line Funding Corp., 1.09%, 1/9/04 $ 25,000 $ 24,993,944
Transamerica Finance Corp., 1.07%, 1/9/04 50,000 49,988,111
- --------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(AT AMORTIZED COST, $74,982,055) $ 74,982,055
- --------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.9%
(IDENTIFIED COST $14,685,324,584) $17,584,390,762
- --------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 0.1% $ 25,198,243
- --------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $17,609,589,005
- --------------------------------------------------------------------------------------
</Table>
ADR - American Depositary Receipt
(1) Non-income producing security.
(2) Security valued at fair value using methods determined in good faith by or
at the direction of the Trustees.
(3) Security restricted from resale for a period not exceeding two years. At
December 31, 2003, the value of these securities totaled $49,748,189 or 0.3%
of net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
28
<Page>
TAX-MANAGED GROWTH PORTFOLIO AS OF DECEMBER 31, 2003
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 2003
<Table>
ASSETS
Investments, at value
(identified cost, $14,685,324,584) $ 17,584,390,762
Cash 5,669
Receivable for investments sold 2,552,453
Dividends and interest receivable 22,326,200
Tax reclaim receivable 578,423
- -------------------------------------------------------------------------------------------
TOTAL ASSETS $ 17,609,853,507
- -------------------------------------------------------------------------------------------
LIABILITIES
Payable to affiliate for Trustees' fees $ 8,252
Accrued expenses 256,250
- -------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 264,502
- -------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO $ 17,609,589,005
- -------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Net proceeds from capital contributions and withdrawals $ 14,710,453,882
Net unrealized appreciation (computed on the basis of identified cost) 2,899,135,123
- -------------------------------------------------------------------------------------------
TOTAL $ 17,609,589,005
- -------------------------------------------------------------------------------------------
</Table>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
DECEMBER 31, 2003
<Table>
INVESTMENT INCOME
Dividends (net of foreign taxes, $2,599,762) $ 229,304,460
Interest 3,621,452
- -------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 232,925,912
- -------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 67,584,543
Trustees' fees and expenses 30,403
Custodian fee 1,909,174
Legal and accounting services 85,806
Miscellaneous 270,270
- -------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 69,880,196
- -------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 163,045,716
- -------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 73,809,988
Securities sold short (2,985,249)
Foreign currency transactions 85,031
- -------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 70,909,770
- -------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 3,174,871,573
Securities sold short (203,701)
Foreign currency 41,238
- -------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 3,174,709,110
- -------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 3,245,618,880
- -------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,408,664,596
- -------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
INCREASE (DECREASE) YEAR ENDED YEAR ENDED
IN NET ASSETS DECEMBER 31, 2003 DECEMBER 31, 2002
- -------------------------------------------------------------------------------------------
From operations --
Net investment income $ 163,045,716 $ 139,150,041
Net realized gain (loss) 70,909,770 (459,996,840)
Net change in unrealized
appreciation (depreciation) 3,174,709,110 (3,312,547,564)
- -------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS $ 3,408,664,596 $ (3,633,394,363)
- -------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 1,351,483,956 $ 2,786,165,872
Withdrawals (1,722,081,135) (2,917,114,901)
- -------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ (370,597,179) $ (130,949,029)
- -------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 3,038,067,417 $ (3,764,343,392)
- -------------------------------------------------------------------------------------------
NET ASSETS
At beginning of year $ 14,571,521,588 $ 18,335,864,980
- -------------------------------------------------------------------------------------------
AT END OF YEAR $ 17,609,589,005 $ 14,571,521,588
- -------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<Page>
SUPPLEMENTARY DATA
<Table>
<Caption>
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------
2003 2002 2001 2000 1999
----------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Ratios (As a percentage of average daily net assets):
Expenses 0.45% 0.45% 0.45% 0.45% 0.46%
Net investment income 1.05% 0.85% 0.64% 0.67% 0.72%
Portfolio Turnover 15% 23% 18% 13% 11%
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(1) 23.88% (19.52)% (9.67)% -- --
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 17,609,589 $ 14,571,522 $ 18,335,865 $ 18,385,069 $ 15,114,649
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Total return is required to be disclosed for fiscal years beginning after
December 15, 2000.
SEE NOTES TO FINANCIAL STATEMENTS.
31
<Page>
TAX-MANAGED GROWTH PORTFOLIO AS OF DECEMBER 31, 2003
NOTES TO FINANCIAL STATEMENTS
1 SIGNIFICANT ACCOUNTING POLICIES
Tax-Managed 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 December 1, 1995, seeks to provide
long-term after-tax returns by investing in a diversified portfolio of equity
securities. The Declaration of Trust permits the Trustees to issue interests
in the Portfolio. At December 31, 2003, the Eaton Vance Tax-Managed Growth
Fund 1.1 held an approximate 23.7% interest in the Portfolio and one other
investor owned an interest greater than 10% that equaled 63.1%. 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 VALUATIONS -- Marketable securities, including options, that are
listed on foreign or U.S. securities exchanges are valued at closing sale
prices on the exchange where such securities are principally traded.
Marketable securities listed in the NASDAQ National Market System are valued
at the NASDAQ official closing price. Unlisted or listed securities for which
closing sale prices are not available are generally valued at the mean
between the latest bid and asked prices. Futures positions on securities or
currencies are generally valued at closing settlement prices. Short-term debt
securities with a remaining maturity of 60 days or less are valued at
amortized cost, which approximates fair value. Other fixed income and debt
securities, including listed securities and securities for which price
quotations are available, will normally be valued on the basis of valuations
furnished by a pricing service. Over-the-counter options are normally valued
at the mean between the latest bid and asked price. Investments for which
valuations or market quotations are unavailable are valued at fair value
using methods determined in good faith by or at the direction of the
Trustees.
B INCOME 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 such
taxable income. Since some of the Portfolio's investors are 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 or losses, and
any other items of income, gain, loss, deduction or credit.
C FUTURES CONTRACTS -- Upon the entering of 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 (margin maintenance) 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 the 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.
D PUT OPTIONS -- Upon the purchase of a put option by the Portfolio, the
premium paid is recorded as an asset in the Statement of Assets and
Liabilities, the value of which is marked-to-market daily. When a purchased
option expires, the Portfolio will realize a loss in the amount of the
premium paid. When the Portfolio enters into a closing sale transaction, the
Portfolio will realize a gain or loss depending on whether the sales proceeds
from the closing sale transaction are greater or less than the premium paid.
When the Portfolio exercises a put option, settlement is made in cash. The
risk associated with purchasing options is limited to the premium originally
paid.
E 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 in 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 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
32
<Page>
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.
F 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.
G INDEMNIFICATIONS -- Under the Portfolio's organizational documents, its
officers and Trustees may be indemnified against certain liabilities and
expenses arising out of the performance of their duties to the Portfolio.
Interestholders in the Portfolio are jointly and severally liable for the
liabilities and obligations of the Portfolio in the event that the Portfolio
fails to satisfy such liabilities and obligations; provided, however, that,
to the extent assets are available in the Portfolio, the Portfolio may, under
certain circumstances, indemnify interestholders from and against any claim
or liability to which such holder may become subject by reason of being or
having been an interestholder in the Portfolio. Additionally, in the normal
course of business, the Fund enters into agreements with service providers
that may contain indemnification clauses. The Portfolio's maximum exposure
under these arrangements is unknown as this would involve future claims that
may be made against the Portfolio that have not yet occurred.
H OTHER -- Investment transactions are accounted for on a trade-date basis.
Dividend income is recorded on the ex-dividend date. 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.
I 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 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.
Under the advisory agreement, BMR receives a monthly advisory fee in the
amount of 0.625% annually of average daily net assets of the Portfolio up to
$500,000,000 and at reduced rates as daily net assets exceed that level. For
the year ended December 31, 2003, the advisory fee was 0.44% of the
Portfolio's average daily net assets. 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 such
investment adviser fee. Trustees of the Portfolio who are not affiliated with
the Investment Adviser 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 December 31, 2003, no significant
amounts have been deferred.
Certain officers and Trustees of the Portfolio are officers of the above
organizations.
3 INVESTMENT TRANSACTIONS
For the year ended December 31, 2003, purchases and sales of investments,
other than short-term obligations, aggregated $2,315,531,044 and
$2,601,576,258, respectively. In addition, investments having an aggregate
market value of $701,210,532 at dates of withdrawal were distributed in
payment for capital withdrawals. During the year ended December 31, 2003,
investors contributed securities with a value of $789,740,742.
4 FEDERAL INCOME TAX BASIS OF UNREALIZED APPRECIATION (DEPRECIATION)
The cost and unrealized appreciation (depreciation) in value of the
investments owned at December 31, 2003 as computed on a federal income tax
basis, were as follows:
<Table>
AGGREGATE COST $ 5,191,822,303
--------------------------------------------------
Gross unrealized appreciation $ 12,396,006,523
Gross unrealized depreciation (3,438,064)
--------------------------------------------------
NET UNREALIZED APPRECIATION $ 12,392,568,459
--------------------------------------------------
</Table>
33
<Page>
5 FINANCIAL INSTRUMENTS
The Portfolio may trade in financial instruments with off-balance sheet risk
in the normal course of its investing activities to assist in managing
exposure to various market risks. These financial instruments include written
options, forward foreign currency exchange 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 December 31, 2003.
6 LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $150 million unsecured line of credit agreement
with a group of banks. Borrowings will be made by the Portfolio solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each participating portfolio or fund
based on its borrowings at an amount above either the Eurodollar rate or
Federal Funds rate. In addition, a fee computed at an annual rate of 0.10% on
the daily unused portion of the line of credit is allocated among the
participating portfolios and funds at the end of each quarter. The Portfolio
did not have any significant borrowings or allocated fees during the year
ended December 31, 2003.
7 RESTRICTED SECURITIES
At December 31, 2003, the Portfolio owned the following securities
(representing 0.3% of net assets) which were restricted as to public resale
and not registered under the Securities Act of 1933. The securities are
valued at fair value using methods determined in good faith by or at the
direction of the Trustees.
<Table>
<Caption>
DATE OF
DESCRIPTION ACQUISITION SHARES COST FAIR VALUE
-----------------------------------------------------------------------------------------
Applied Materials, Inc. 12/17/03 543,250 $ 11,575,935 $ 12,183,767
eBay, Inc 5/13/03 200,000 9,466,769 12,909,926
eBay, Inc. 2/19/03 318,000 12,143,667 20,534,485
KLA-Tencor Corp. 12/17/03 50,000 2,744,377 2,929,100
Sysco Corp. 12/17/03 32,036 1,157,644 1,190,911
-----------------------------------------------------------------------------------------
$ 37,088,392 $ 49,748,18934
-----------------------------------------------------------------------------------------
</Table>
34
<Page>
TAX-MANAGED GROWTH PORTFOLIO AS OF DECEMBER 31, 2003
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS
OF TAX-MANAGED GROWTH PORTFOLIO:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Tax-Managed Growth Portfolio (the Portfolio) as
of December 31, 2003, and the related statement of operations for the year then
ended, the statements of changes in net assets for the two years in the period
then ended and the supplementary data for each of the five years ended in the
period then ended. 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 owned as of December 31, 2003 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and supplementary data present fairly,
in all material respects, the financial position of Tax-Managed Growth Portfolio
at December 31, 2003, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended and
its supplementary data for each of the five years in the period then ended in
conformity with accounting principles generally accepted in the United States of
America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 20, 2004
35
<Page>
EATON VANCE TAX-MANAGED GROWTH FUND 1.1 AS OF DECEMBER 31, 2003
MANAGEMENT AND ORGANIZATION
FUND MANAGEMENT. The Trustees of Eaton Vance Mutual Funds Trust (the Trust) and
Tax-Managed 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, 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 Corporation, "EV" refers to Eaton Vance,
Inc., "EVM" refers to Eaton Vance Management, "BMR" refers to Boston Management
and Research and "EVD" refers to Eaton Vance Distributors, Inc. EVC and EV are
the corporate parent and trustee, respectively, of EVM and BMR. EVD is the
Fund's principal underwriter, the Portfolio's placement agent and a wholly-owned
subsidiary of EVM.
<Table>
<Caption>
POSITION(S) TERM OF NUMBER OF PORTFOLIOS
WITH THE OFFICE AND IN FUND COMPLEX
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER
DATE OF BIRTH THE PORTFOLIOS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) DIRECTORSHIPS HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE(S)
Jessica M. Bibliowicz Trustee Since 1998 Chairman, President and 193 None
11/28/59 Chief Executive Officer of
National Financial
Partners (financial
services company) (since
April 1999). President and
Chief Operating Officer of
John A. Levin & Co.
(registered investment
adviser) (July 1997 to
April 1999) and a Director
of Baker, Fentress &
Company which owns John A.
Levin & Co. (July 1997 to
April 1999). Ms. Bibliowicz
is an interested person
because of her affiliation
with a brokerage firm.
James B. Hawkes Trustee Trustee of the Chairman, President and 195 Director of EVC
11/9/41 Trust since 1991; Chief Executive Officer of
of the Portfolio BMR, EVC, EVM and EV;
since 1997 Director of EV; Vice
President and Director of
EVD. Trustee and/or
officer of 195 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 195 Director of Tiffany
2/23/35 Trust since 1986; of Investment Banking & Co. (specialty
of the Portfolio Emeritus, Harvard retailer) and
since 1995 University Graduate School Telect, Inc.
of Business (telecommunication
Administration. services company)
Norton H. Reamer Trustee Trustee of the President, Chief Executive 195 None
9/21/35 Trust since 1986; Officer and a Director of
of the Portfolio Asset Management Finance
since 1995 Corp. (a specialty finance
company serving the
investment management
industry) (since October
2003). President, Unicorn
Corporation (an investment
and financial advisory
services company) (since
September 2000). Formerly,
Chairman, Hellman, Jordan
Management Co., Inc. (an
investment management
company) (2000-2003).
Formerly, Advisory
Director of Berkshire
Capital Corporation
(investment banking firm)
(2002-2003). Formerly,
Chairman of the Board,
United Asset Management
Corporation (a holding
company owning
institutional investment
management firms) and
Chairman, President and
Director, UAM Funds
(mutual funds)
(1980-2000).
</Table>
36
<Page>
<Table>
<Caption>
POSITION(S) TERM OF NUMBER OF PORTFOLIOS
WITH THE OFFICE AND IN FUND COMPLEX
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER
DATE OF BIRTH THE PORTFOLIOS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) DIRECTORSHIPS HELD
- ------------------------------------------------------------------------------------------------------------------------------------
NONINTERESTED TRUSTEE(S) (CONTINUED)
Lynn A. Stout Trustee Trustee of the Professor of Law, 195 None
9/14/57 Trust since 1998; University of California
of the Portfolio at Los Angeles School of
since 2003 Law (since July 2001).
Formerly, Professor of
Law, Georgetown University
Law Center.
William H. Park Trustee Since 2003 President and Chief 192 None
9/19/47 Executive Officer, Prizm
Capital Management, LLC
(investment management
firm) (since 2002).
Executive Vice President
and Chief Financial
Officer, United Asset
Management Corporation (a
holding company owning
institutional investment
management firms)
(1982-2001).
Ronald A. Pearlman Trustee Since 2003 Professor of Law, 192 None
7/10/40 Georgetown University Law
Center (since 1999). Tax
Partner, Covington &
Burling, Washington, DC
(1991-2000).
<Caption>
POSITION(S) TERM OF
WITH THE OFFICE AND
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH THE PORTFOLIOS SERVICE DURING PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES
William H. Ahern, Jr.
7/28/59 Vice President of the Trust Since 1995 Vice President of EVM and BMR. Officer of 35
registered investment companies managed by EVM or
BMR.
Thomas E. Faust Jr. President of the Trust; Vice Since 2002 Executive Vice President of EVM, BMR, EVC and EV;
5/31/58 President of the Portfolio 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 54 registered
investment companies managed by EVM or BMR.
Thomas J. Fetter Vice President of the Trust Since 1997 Vice President of EVM and BMR. Officer of 127
8/20/43 registered investment companies managed by EVM or
BMR.
Michael R. Mach Vice President of the Trust Since 1999 Vice President of EVM and BMR. Previously, Managing
7/15/47 Director and Senior Analyst for Robertson Stephens
(1998-1999). Officer of 26 registered investment
companies managed by EVM or BMR.
Robert MacIntosh Vice President of the Trust Since 1998 Vice President of EVM and BMR. Officer of 127
1/22/57 registered investment companies managed by EVM or
BMR.
Cliff Quisenberry Vice President of the Trust Since 2003 Vice President and Global Portfolio Manager of
1/1/65 Parametric Portfolio Associates ("Parametric").
Officer of 23 registered investment companies
managed by EVM or BMR.
Duncan W. Richardson Vice President of the Trust; Vice President of Senior Vice President and Chief Equity Investment
10/26/57 President of the Portfolio the Trust since Officer of EVM and BMR. Officer of 42 registered
2001; President of investment companies managed by EVM or BMR.
the Portfolio since
2002
Walter A. Row, III Vice President of the Trust Since 2001 Director of Equity Reserch and a Vice President
7/20/57 of EVM and BMR. Officer of 22 registered
investment companies managed by EVM or BMR.
Judith A. Saryan Vice President of the Trust Since 2003 Vice President of EVM and BMR. Previously,
8/21/54 Portfolio Manager and Equity Analyst for State
Street Global Advisors (1980-1999). Officer of 25
registered investment companies managed by EVM or
BMR.
Susan Schiff Vice President of the Trust Since 2002 Vice President of EVM and BMR. Officer of 26
3/13/61 registered investment companies managed by EVM or
BMR.
</Table>
37
<Page>
<Table>
<Caption>
POSITION(S) TERM OF
WITH THE OFFICE AND
NAME AND TRUST AND LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH THE PORTFOLIOS SERVICE DURING PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OFFICERS WHO ARE
NOT TRUSTEES (CONTINUED)
Alan R. Dynner Secretary Since 1997 Vice President, Secretary and Chief Legal Officer
10/10/40 of BMR, EVM, EVD, EV and EVC. Officer of 195
registered investment companies managed by EVM or
BMR.
Michelle A. Alexander Treasurer of the Portfolio Since 2002(2) Vice President of EVM and BMR. Chief Financial
8/25/69 Officer of Belair Capital Fund LLC, Belcrest
Capital Fund LLC, Belmar Capital Fund LLC,
Belport Capital Fund LLC and Belrose Capital Fund
LLC (private investment companies sponsored by
EVM). Officer of 85 registered investment
companies managed by EVM or BMR.
James L. O'Connor Treasurer of the Trust Since 1989 Vice President of BMR, EVM and EVD. Officer of
4/1/45 116 registered investment companies managed by
EVM or BMR.
</Table>
(1) Includes both master and feeder funds in a master-feeder structure.
(2) Prior to 2002, Ms. Alexander served as Assistant Treasurer of the Portfolio
since 1998.
The SAI for the Fund includes additional information about the Trustee and
officers of the Fund and the Portfolio and can be obtained without charge
calling 1-800-225-6265.
38
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INVESTMENT ADVISER OF TAX-MANAGED GROWTH PORTFOLIO
BOSTON MANAGEMENT AND RESEARCH
The Eaton Vance Building
255 State Street
Boston, MA 02109
ADMINISTRATOR OF EATON VANCE TAX-MANAGED 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 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>
1096-2/04 TGSRC1.1
<Page>
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics applicable to its Principal
Executive Officer, Principal Financial Officer and Principal Accounting Officer.
The registrant undertakes to provide a copy of such code of ethics to any person
upon request, without charge, by calling 1-800-262-1122.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The registrant's Board has designated William H. Park, Samuel L. Hayes, III and
Norton H. Reamer, each an independent trustee, as its audit committee financial
experts. Mr. Park is a certified public accountant who is the President and
Chief Executive Officer of Prizm Capital Management, LLC (a fixed income
investment management firm). Previously, he served as Executive Vice President
and Chief Financial Officer of United Asset Management Corporation ("UAM") (a
holding company 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, Chief Executive Officer and a Director of Asset Management Finance
Corp. (a specialty finance company serving the investment management industry)
and is President of Unicorn Corporation (an investment and financial advisory
services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan
Management Co., Inc. (an investment management company) and Advisory Director of
Berkshire Capital Corporation (an investment banking firm), Chairman of the
Board of UAM and Chairman, President and Director of the UAM Funds (mutual
funds).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) -(d)
EATON VANCE TAX MANAGED GROWTH FUND 1.1 (the "Fund") is a series of Eaton Vance
Mutual Funds Trust (the "Trust"), a Massachusetts business trust. The Trust is
registered under the Investment Company Act of 1940 as an open-end management
investment company. Including the Fund, the Trust contains a total of 22 series
(collectively, the "Series"). This Form N-CSR/A relates to the Fund's annual
report.
The following table presents the aggregate fees billed to the Fund for the
Fund's fiscal years ended December 31, 2002 and December 31, 2003 by the Fund's
principal accountant for professional services rendered for the audit of the
Fund's annual financial statements and fees billed for other services rendered
by the principal accountant during those periods.
<Page>
EATON VANCE TAX MANAGED GROWTH FUND 1.1
<Table>
<Caption>
FISCAL YEARS ENDED 12/31/02 12/31/03
- -------------------------------------------------------------------------------
Audit Fees $ 10,990 $ 11,845
Audit-Related Fees(1) 0 0
Tax Fees(2) 5,100 5,200
All Other Fees(3) 0 0
----------------------------------------
Total $ 16,090 $ 17,045
========================================
</Table>
(1) Audit-related fees consist of the aggregate fees billed for assurance and
related services that are reasonably related to the performance of the
audit of financial statements and are not reported under the category of
audit fees.
(2) Tax fees consist of the aggregate fees billed for professional services
rendered by the principal accountant relating to tax compliance, tax
advice, and tax planning and specifically include fees for tax return
preparation.
(3) All other fees consist of the aggregate fees billed for products and
services provided by the principal accountant other than audit,
audit-related, and tax services.
<Page>
The various Series comprising the Trust have differing fiscal year ends (April
30, October 31, or December 31). In addition, the Series differ as to principal
accountant; i.e., certain Series have PricewaterhouseCoopers LLP ("PWC") as a
principal accountant and other Series have Deloitte & Touche LLP ("D&T") as a
principal accountant. The following table presents the aggregate audit,
audit-related, tax, and other fees billed to all of the Series in the Trust by
each Series's respective principal accountant for the last two fiscal years of
each Series.
<Table>
<Caption>
FISCAL YEARS
ENDED 4/30/02* 10/31/02 12/31/02 4/30/03* 10/31/03 12/31/03
PWC D&T PWC D&T PWC D&T PWC D&T PWC D&T PWC D&T
- ------------------------------------------------------------------------------------------------------------------------------------
AUDIT FEES $ 0 $ 0 $ 27,850 $ 106,284 $ 61,325 $ 48,131 $ 0 $ 0 $ 41,150 $ 135,218 $ 77,175 $ 60,955
AUDIT-RELATED
FEES(1) 0 0 0 0 0 0 0 0 0 0 0 0
TAX FEES(2) 0 0 18,620 68,900 31,190 15,500 0 0 23,735 72,900 38,605 15,800
ALL OTHER
FEES(3) 0 0 0 0 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------------------------
TOTAL $ 0 $ 0 $ 46,470 $ 175,184 $ 92,515 $ 63,631 $ 0 $ 0 $ 64,885 $ 208,118 $ 115,780 $ 76,755
====================================================================================================================
</Table>
(1) Audit-related fees consist of the aggregate fees billed for assurance and
related services that are reasonably related to the performance of the
audit of financial statements and are not reported under the category of
audit fees.
(2) Tax fees consist of the aggregate fees billed for professional services
rendered by the principal accountant relating to tax compliance, tax
advice, and tax planning and specifically include fees for tax return
preparation.
(3) All other fees consist of the aggregate fees billed for products and
services provided by the principal accountant other than audit,
audit-related, and tax services.
* Eaton Vance Tax-Managed Dividend Income Fund, the only Series with an April 30
fiscal year end, commenced operations on May 30, 2003.
(e)(1) The registrant's audit committee has adopted policies and procedures
relating to the pre-approval of services provided by the registrant's principal
accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a
framework intended to assist the audit committee in the proper discharge of its
pre-approval responsibilities. As a general matter, the Pre-Approval Policies
(i) specify certain types of audit, audit-related, tax, and other services
determined to be pre-approved by the audit committee; and (ii) delineate
specific procedures governing the mechanics of the pre-approval process,
including the approval and monitoring of audit and non-audit service fees.
Unless a service is specifically pre-approved under the Pre-Approval Policies,
it must be separately pre-approved by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services
pre-approved therein must be reviewed and ratified by the registrant's audit
committee at least annually. The registrant's audit committee maintains full
responsibility for the appointment, compensation, and oversight of the work of
the registrant's principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the
registrant's audit committee pursuant to the "de minimis exception" set forth in
Rule 2-01(c)(7)(i)(C) of Regulation S-X.
<Page>
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees
for audit-related, tax, and other services) billed to all of the Series in the
Trust by each Series's respective principal accountant (either PWC or D&T) for
the last two fiscal years of each Series; and (ii) the aggregate non-audit fees
(i.e., fees for audit-related, tax, and other services) billed to the Eaton
Vance organization by PWC and D&T for the last two fiscal years of each Series.
<Table>
<Caption>
FISCAL YEARS
ENDED 4/30/02 10/31/02 12/31/02 4/30/03 10/31/03 12/31/03
PWC D&T PWC D&T PWC D&T PWC D&T PWC D&T PWC D&T
- ------------------------------------------------------------------------------------------------------------------------------------
REGISTRANT(1) $ 0 $ 0 $ 18,620 $ 68,900 $ 31,190 $ 15,500 $ 0 $ 0 $ 23,735 $ 72,900 $ 38,605 $ 15,800
EATON VANCE(2) $ 0 $ 645,049 $ 0 $ 389,924 $ 0 $ 336,546 $ 0 $ 198,709 $ 0 $ 440,918 $ 0 $ 458,168
</Table>
(1) Includes all of the Series in the Trust.
(2) Various subsidiaries of Eaton Vance Corp. act in either an investment
advisory and/or service provider capacity with respect to the Series.
(h) The registrant's audit committee has considered whether the provision by the
registrant's principal accountant of non-audit services to the registrant's
investment adviser and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant that
were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is
compatible with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not required in this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
Not required in this filing.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not required in this filing.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not required in this filing.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable
<Page>
ITEM 10. 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 changes in the registrant's internal controls over
financial reporting during the period that has materially affected, or is
reasonably likely to materially affect the registrant's internal control over
financial reporting.
ITEM 11. 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 GROWTH
FUND 1.1))
By: /s/ Thomas E. Faust Jr.
--------------------------------------------
Thomas E. Faust Jr.
President
Date: June 8, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ James L. O'Connor
--------------------------------------------
James L. O'Connor
Treasurer
Date: June 8, 2004
By: /s/ Thomas E. Faust Jr.
--------------------------------------------
Thomas E. Faust Jr.
President
Date: June 8, 2004