UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED
SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04015
Eaton Vance Mutual Funds Trust
(Exact Name of Registrant as Specified in Charter)
One Post
Office Square, Boston, Massachusetts 02109
(Address of Principal Executive Offices)
Deidre E. Walsh
One
Post Office Square, Boston, Massachusetts 02109
(Address of Principal Executive Offices)
(617) 482-8260
(Registrants Telephone Number)
February 29
Date
of Fiscal Year End
February 29, 2024
Date of Reporting Period
Item 1. Reports to Stockholders
Parametric
Dividend Income Fund
Annual Report
February 29, 2024
Commodity Futures Trading Commission Registration. The Commodity Futures Trading Commission (“CFTC”) has adopted regulations that subject registered investment companies and advisers to regulation by the CFTC if a fund invests more than a
prescribed level of its assets in certain CFTC-regulated instruments (including futures, certain options and swap agreements) or markets itself as providing investment exposure to such instruments. The investment adviser has claimed an exclusion
from the definition of “commodity pool operator” under the Commodity Exchange Act with respect to its management of the Fund. Accordingly, neither the Fund nor the adviser with respect to the operation of the Fund is subject to CFTC
regulation. Because of its management of other strategies, the Fund's adviser and Parametric Portfolio Associates LLC (Parametric), sub-adviser to the Fund, are registered with the CFTC as commodity pool operators. The adviser and Parametric are
also registered as commodity trading advisors.
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.
This report must be preceded or accompanied by a current
summary prospectus or prospectus. Before investing, investors should consider carefully the investment objective, risks, and charges and expenses of a mutual fund. This and other important information is contained in the summary prospectus and
prospectus, which can be obtained from a financial intermediary. Prospective investors should read the prospectus carefully before investing. For further information, please call 1-800-260-0761.
Annual Report February 29, 2024
Parametric
Dividend Income Fund
Parametric
Dividend Income Fund
February 29, 2024
Management’s Discussion of Fund Performance†
Economic and Market Conditions
As the 12-month period opened in March 2023, U.S. equities were
in the midst of a market rally that would last through July. The initial tailwind was ChatGPT, an artificial intelligence (AI) application that led investors to perceive AI might become the next big innovation to drive the information technology
(IT) sector. As a result, IT -- one of the worst-performing sectors in 2022 -- became a standout sector during the period.
Meanwhile, earlier recession fears that had weighed on stock
prices receded as investors came to view the U.S. economy as doing surprisingly well. However, from August through October 2023, the bond market gained momentum as investors feared the U.S. Federal Reserve (the Fed) might keep short-term interest
rates higher for longer than previously anticipated and as longer-term bond rates rose sharply. Given the potential for relatively attractive returns with lower risk than stocks, many investors shifted asset allocations from equities to bonds.
In the closing months of 2023, investors again revised their
expectations of how the Fed might react to shifting economic conditions. Encouraged by declining inflation, investors began to conclude the Fed was done raising interest rates -- and might begin lowering rates during the first half of
2024.
In response, the U.S. stock market ended 2023
on a high note. The S&P 500® Index, a broad measure of U.S. stocks; the blue-chip Dow Jones Industrial Average®; and the technology-laden Nasdaq Composite Index each rose more than 9% in November, and more than 4% in December 2023.
Unlike the equity rally during the first half of 2023 -- driven by a handful of large-cap technology-related stocks -- the year-end rally extended across a wider range of market capitalizations, with the small-cap Russell 2000® Index keeping
pace with its large-cap brethren in November, and outperforming them in December.
While small-cap stocks lost some ground in January 2024,
large-cap stocks continued to rally. February returns were even stronger, with small-cap stocks also making gains. Meanwhile, investors were encouraged by improved corporate earnings and the overall health of the U.S. economy, which produced GDP
growth of 3.4% in the final quarter of 2023.
For
the period as a whole, U.S. equity performance was strong. The S&P 500® Index returned 30.45%, the Dow Jones Industrial Average® returned 22.03%, the Nasdaq Composite Index returned 41.63%, and the Russell 2000® Index returned
10.05%.
Fund Performance
For the 12-month period ended February 29, 2024, Parametric
Dividend Income Fund (the Fund) returned 4.81% for Class A shares at net asset value (NAV), underperforming its benchmark, the Russell 1000® Value Index (the Index), which returned 14.01%.
The Fund seeks broad diversification by allocating a relatively
equal weighting of its assets among multiple market sectors. The Fund also seeks to assign a generally equal weighting across selected securities -- those ranking highest on Parametric’s propriety combined low-risk/high-yield score
factor.
The Fund’s emphasis on
diversification, which seeks an equal-sector representation, detracted from returns relative to the Index during the period. An underweight exposure to the communication services sector -- the best-performing sector during the period -- was a key
detractor from Index-relative performance. The communication services sector benefited from solid returns by technology giants Meta Platforms, Inc. and Alphabet, Inc. -- neither of which the Fund owned -- despite both securities being removed from
the Index in June 2023.
In addition, the
Fund’s overweight exposure to the utilities sector -- the only sector within the Index to deliver negative returns during the period -- also hurt Index-relative performance.
The Fund’s security selections in the consumer
discretionary sector weighed on Index-relative returns, mainly due to the inclusion of brick-and-mortar retail and apparel stocks that trailed the Index during the period. Security selections in the industrials sector also detracted from
Index-relative returns during the period.
In
contrast, the Fund’s underweight exposure to the struggling real estate sector contributed to Index-relative performance, as real estate sales were hurt by elevated interest and mortgage rates during the period.
Security selections in the energy sector also contributed to
Index-relative performance during the period, partially the result of overweight positions in oil-field servicers and oil refiners, which performed well.
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are
historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Furthermore, returns do not reflect the deduction of taxes that shareholders may have to
pay on Fund distributions or upon the redemption of Fund shares. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance for periods less than or equal
to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to
eatonvance.com.
Parametric
Dividend Income Fund
February 29, 2024
Performance
Portfolio Manager(s) Thomas C.
Seto and Jennifer Sireklove, CFA, each of Parametric Portfolio Associates LLC
%
Average Annual Total Returns1,2 |
Class
Inception Date |
Performance
Inception Date |
One
Year |
Five
Years |
Since
Inception |
Class
A at NAV |
03/26/2014
|
03/26/2014
|
4.81%
|
7.80%
|
8.67%
|
Class
A with 5.25% Maximum Sales Charge |
—
|
—
|
(0.69)
|
6.65
|
8.09
|
Class
I at NAV |
03/26/2014
|
03/26/2014
|
5.06
|
8.08
|
8.94
|
|
Russell
1000® Value Index |
—
|
—
|
14.01%
|
9.37%
|
8.69%
|
%
Total Annual Operating Expense Ratios3 |
Class
A |
Class
I |
Gross
|
0.76%
|
0.51%
|
Net
|
0.65
|
0.40
|
Growth of $10,000
This graph shows the change in value of a hypothetical
investment of $10,000 in Class A of the Fund for the period indicated. For comparison, the same investment is shown in the indicated index.
Growth
of Investment |
Amount
Invested |
Period
Beginning |
At
NAV |
With
Maximum Sales Charge |
Class
I, at minimum investment |
$1,000,000
|
03/26/2014
|
$2,341,681
|
N.A.
|
See Endnotes and Additional Disclosures in this report.
Past performance is no guarantee of future results. Returns are
historical and are calculated by determining the percentage change in net asset value (NAV) or offering price (as applicable) with all distributions reinvested. Furthermore, returns do not reflect the deduction of taxes that shareholders may have to
pay on Fund distributions or upon the redemption of Fund shares. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance for periods less than or equal
to one year is cumulative. Performance is for the stated time period only; due to market volatility, current Fund performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to
eatonvance.com.
Parametric
Dividend Income Fund
February 29, 2024
Sector
Allocation (% of net assets)1 |
Top
10 Holdings (% of net assets)1 |
Juniper
Networks, Inc. |
0.7%
|
Texas
Roadhouse, Inc. |
0.7
|
Merck
& Co., Inc. |
0.7
|
Cencora,
Inc. |
0.7
|
AptarGroup,
Inc. |
0.7
|
Microsoft
Corp. |
0.7
|
Costco
Wholesale Corp. |
0.7
|
Gentex
Corp. |
0.6
|
Walmart,
Inc. |
0.6
|
Cummins,
Inc. |
0.6
|
Total
|
6.7%
|
Footnotes:
1 |
Excludes
cash and cash equivalents. |
Parametric
Dividend Income Fund
February 29, 2024
Endnotes and
Additional Disclosures
†
|
The views expressed in this
report are those of the portfolio manager(s) and are current only through the date stated at the top of this page. These views are subject to change at any time based upon market or other conditions, and Eaton Vance and the Fund(s) disclaim any
responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund.
This commentary may contain statements that are not historical facts, referred to as “forward-looking statements.” The Fund’s actual future results may differ significantly from those stated in any forward-looking statement,
depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of Fund shares, the continuation of investment advisory, administrative and service contracts, and other risks
discussed from time to time in the Fund’s filings with the Securities and Exchange Commission. |
|
|
1 |
Russell 1000® Value
Index is an unmanaged index of U.S. large-cap value stocks. Unless otherwise stated, index returns do not reflect the effect of any applicable sales charges, commissions, expenses, taxes or leverage, as applicable. It is not possible to invest
directly in an index. |
2 |
Total
Returns at NAV do not include applicable sales charges. If sales charges were deducted, the returns would be lower. Total Returns shown with maximum sales charge reflect the stated maximum sales charge. Unless otherwise stated, performance does not
reflect the deduction of taxes on Fund distributions or redemptions of Fund shares. Performance since inception for an index, if presented, is the performance since the Fund’s or oldest share class’s inception, as applicable. |
3 |
Source:
Fund prospectus. Net expense ratios reflect a contractual expense reimbursement that continues through 6/30/24. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report. Performance
reflects expenses waived and/or reimbursed, if applicable. Without such waivers and/or reimbursements, performance would have been lower. |
|
Fund profile subject to
change due to active management. |
|
Additional Information
|
|
S&P 500® Index is
an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance. Dow Jones Industrial Average® is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry. S&P Dow
Jones Indices are a product of S&P Dow Jones Indices LLC (“S&P DJI”) and have been licensed for use. S&P® and S&P 500® are registered trademarks of S&P DJI; Dow Jones® is a registered trademark of
Dow Jones Trademark Holdings LLC (“Dow Jones”); S&P DJI, Dow Jones and their respective affiliates do not sponsor, endorse, sell or promote the Fund, will not have any liability with respect thereto and do not have any liability for
any errors, omissions, or interruptions of the S&P Dow Jones Indices. Nasdaq Composite Index is a market capitalization-weighted index of all domestic and international securities listed on Nasdaq. Source: Nasdaq, Inc. The information is
provided by Nasdaq (with its affiliates, are referred to as the “Corporations”) and Nasdaq’s third party licensors on an “as is” basis and the Corporations make no guarantees and bear no liability of any kind with
respect to the information or the Fund. Russell 2000® Index is an unmanaged index of 2,000 U.S. small-cap stocks. |
|
Diversification
cannot ensure a profit or eliminate the risk of loss. |
Parametric
Dividend Income Fund
February 29, 2024
Example
As a Fund shareholder, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases; and (2) ongoing costs, including management fees; distribution and/or service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in
dollars) of Fund investing and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1,
2023 to February 29, 2024).
Actual Expenses
The first section of the table below provides information
about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this
period.
Hypothetical Example for Comparison Purposes
The second section of the table below provides information
about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual Fund return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with
the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant
to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.
|
Beginning
Account Value (9/1/23) |
Ending
Account Value (2/29/24) |
Expenses
Paid During Period* (9/1/23 – 2/29/24) |
Annualized
Expense Ratio |
Actual
|
|
|
|
|
Class
A |
$1,000.00
|
$1,043.40
|
$3.66**
|
0.72%
|
Class
I |
$1,000.00
|
$1,044.50
|
$2.39**
|
0.47%
|
|
Hypothetical
|
|
|
|
|
(5%
return per year before expenses) |
|
|
|
|
Class
A |
$1,000.00
|
$1,021.28
|
$3.62**
|
0.72%
|
Class
I |
$1,000.00
|
$1,022.53
|
$2.36**
|
0.47%
|
*
|
Expenses
are equal to the Fund’s annualized expense ratio for the indicated Class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at
the net asset value per share determined at the close of business on August 31, 2023. |
**
|
Absent
an allocation of certain expenses to affiliate(s), expenses would be higher. |
Parametric
Dividend Income Fund
February 29, 2024
Security
|
Shares
|
Value
|
Aerospace
& Defense — 1.6% |
General
Dynamics Corp. |
|
756
|
$
206,577 |
Lockheed
Martin Corp. |
|
390
|
167,014
|
RTX
Corp. |
|
1,966
|
176,291
|
|
|
|
$ 549,882
|
Automobile
Components — 0.6% |
Gentex
Corp. |
|
5,925
|
$
216,440 |
|
|
|
$ 216,440
|
Banks
— 2.4% |
Cadence
Bank |
|
6,261
|
$
173,305 |
CVB
Financial Corp. |
|
9,070
|
154,371
|
F.N.B.
Corp. |
|
13,682
|
182,518
|
First
Interstate BancSystem, Inc., Class A |
|
5,923
|
155,893
|
Prosperity
Bancshares, Inc. |
|
2,378
|
148,411
|
|
|
|
$ 814,498
|
Beverages
— 2.2% |
Brown-Forman
Corp., Class B |
|
2,990
|
$
180,088 |
Coca-Cola
Co. |
|
3,295
|
197,766
|
Keurig
Dr Pepper, Inc. |
|
5,825
|
174,226
|
PepsiCo,
Inc. |
|
1,125
|
186,007
|
|
|
|
$ 738,087
|
Biotechnology
— 1.7% |
AbbVie,
Inc. |
|
1,182
|
$
208,091 |
Amgen,
Inc. |
|
669
|
183,192
|
Gilead
Sciences, Inc. |
|
2,388
|
172,175
|
|
|
|
$ 563,458
|
Building
Products — 0.6% |
A.O.
Smith Corp. |
|
2,213
|
$
183,458 |
|
|
|
$ 183,458
|
Capital
Markets — 2.9% |
Artisan
Partners Asset Management, Inc., Class A |
|
4,239
|
$
182,574 |
CME
Group, Inc. |
|
913
|
201,179
|
Janus
Henderson Group PLC |
|
6,255
|
194,906
|
Northern
Trust Corp. |
|
2,244
|
184,300
|
T.
Rowe Price Group, Inc. |
|
1,725
|
195,529
|
|
|
|
$ 958,488
|
Security
|
Shares
|
Value
|
Chemicals
— 5.8% |
Air
Products and Chemicals, Inc. |
|
695
|
$
162,658 |
Corteva,
Inc. |
|
3,936
|
210,655
|
Dow,
Inc. |
|
3,430
|
191,668
|
DuPont
de Nemours, Inc. |
|
2,492
|
172,421
|
Eastman
Chemical Co. |
|
1,831
|
160,652
|
FMC
Corp. |
|
2,539
|
143,174
|
Huntsman
Corp. |
|
6,384
|
163,430
|
International
Flavors & Fragrances, Inc. |
|
2,001
|
151,076
|
Linde
PLC |
|
425
|
190,749
|
LyondellBasell
Industries NV, Class A |
|
1,988
|
199,357
|
RPM
International, Inc. |
|
1,695
|
195,518
|
|
|
|
$ 1,941,358
|
Communications
Equipment — 1.2% |
Cisco
Systems, Inc. |
|
3,406
|
$
164,748 |
Juniper
Networks, Inc. |
|
6,592
|
244,102
|
|
|
|
$ 408,850
|
Construction
& Engineering — 0.6% |
MDU
Resources Group, Inc. |
|
9,650
|
$
209,212 |
|
|
|
$ 209,212
|
Consumer
Staples Distribution & Retail — 1.9% |
Casey's
General Stores, Inc. |
|
667
|
$
203,095 |
Costco
Wholesale Corp. |
|
291
|
216,472
|
Walmart,
Inc. |
|
3,660
|
214,512
|
|
|
|
$ 634,079
|
Containers
& Packaging — 2.8% |
Amcor
PLC |
|
16,954
|
$
153,603 |
AptarGroup,
Inc. |
|
1,563
|
219,539
|
International
Paper Co. |
|
5,281
|
186,736
|
Packaging
Corp. of America |
|
1,107
|
200,578
|
Sonoco
Products Co. |
|
2,982
|
169,020
|
|
|
|
$ 929,476
|
Distributors
— 1.2% |
Genuine
Parts Co. |
|
1,379
|
$
205,829 |
LKQ
Corp. |
|
3,433
|
179,512
|
|
|
|
$ 385,341
|
Diversified
Telecommunication Services — 1.2% |
AT&T,
Inc. |
|
11,573
|
$
195,931 |
Verizon
Communications, Inc. |
|
5,148
|
206,023
|
|
|
|
$ 401,954
|
7
See Notes to Financial Statements.
Parametric
Dividend Income Fund
February 29, 2024
Portfolio of
Investments — continued
Security
|
Shares
|
Value
|
Electric
Utilities — 5.6% |
Alliant
Energy Corp. |
|
3,273
|
$
156,286 |
American
Electric Power Co., Inc. |
|
2,073
|
176,599
|
Avangrid,
Inc. |
|
5,159
|
160,600
|
Duke
Energy Corp. |
|
1,993
|
183,017
|
Evergy,
Inc. |
|
3,155
|
156,299
|
IDACORP,
Inc. |
|
1,667
|
146,879
|
OGE
Energy Corp. |
|
4,701
|
154,710
|
Pinnacle
West Capital Corp. |
|
2,695
|
184,149
|
Portland
General Electric Co. |
|
4,023
|
161,604
|
PPL
Corp. |
|
7,054
|
186,014
|
Southern
Co. |
|
2,737
|
184,063
|
|
|
|
$ 1,850,220
|
Electrical
Equipment — 1.2% |
Eaton
Corp. PLC |
|
706
|
$
204,034 |
Emerson
Electric Co. |
|
1,967
|
210,174
|
|
|
|
$ 414,208
|
Electronic
Equipment, Instruments & Components — 1.1% |
Amphenol
Corp., Class A |
|
1,695
|
$
185,162 |
Corning,
Inc. |
|
5,403
|
174,193
|
|
|
|
$ 359,355
|
Energy
Equipment & Services — 1.1% |
Baker
Hughes Co. |
|
5,539
|
$
163,899 |
Helmerich
& Payne, Inc. |
|
4,979
|
191,144
|
|
|
|
$ 355,043
|
Entertainment
— 0.6% |
Electronic
Arts, Inc. |
|
1,373
|
$
191,506 |
|
|
|
$ 191,506
|
Financial
Services — 1.2% |
MGIC
Investment Corp. |
|
9,816
|
$
195,240 |
Western
Union Co. |
|
15,408
|
206,622
|
|
|
|
$ 401,862
|
Food
Products — 4.4% |
Archer-Daniels-Midland
Co. |
|
2,653
|
$
140,901 |
Bunge
Global SA |
|
1,856
|
175,150
|
General
Mills, Inc. |
|
2,960
|
189,973
|
Hormel
Foods Corp. |
|
5,184
|
183,099
|
Ingredion,
Inc. |
|
1,768
|
207,970
|
Kellanova
|
|
3,440
|
189,716 |
Security
|
Shares
|
Value
|
Food
Products (continued) |
Kraft
Heinz Co. |
|
5,253
|
$
185,326 |
Mondelez
International, Inc., Class A |
|
2,673
|
195,316
|
|
|
|
$ 1,467,451
|
Gas
Utilities — 1.1% |
Atmos
Energy Corp. |
|
1,660
|
$
187,430 |
National
Fuel Gas Co. |
|
3,793
|
184,871
|
|
|
|
$ 372,301
|
Ground
Transportation — 0.6% |
Landstar
System, Inc. |
|
982
|
$
186,776 |
|
|
|
$ 186,776
|
Health
Care Equipment & Supplies — 2.4% |
Abbott
Laboratories |
|
1,755
|
$
208,213 |
Becton
Dickinson & Co. |
|
801
|
188,676
|
Medtronic
PLC |
|
2,351
|
195,979
|
Zimmer
Biomet Holdings, Inc. |
|
1,562
|
194,250
|
|
|
|
$ 787,118
|
Health
Care Providers & Services — 4.4% |
Cardinal
Health, Inc. |
|
1,860
|
$
208,283 |
Cencora,
Inc. |
|
952
|
224,291
|
Chemed
Corp. |
|
311
|
194,726
|
CVS
Health Corp. |
|
2,076
|
154,392
|
Patterson
Cos., Inc. |
|
6,701
|
181,530
|
Premier,
Inc., Class A |
|
7,416
|
154,698
|
Quest
Diagnostics, Inc. |
|
1,374
|
171,599
|
UnitedHealth
Group, Inc. |
|
371
|
183,126
|
|
|
|
$ 1,472,645
|
Hotels,
Restaurants & Leisure — 2.2% |
Cracker
Barrel Old Country Store, Inc.(1) |
|
1,941
|
$
128,358 |
Darden
Restaurants, Inc. |
|
1,202
|
205,193
|
Texas
Roadhouse, Inc. |
|
1,578
|
235,706
|
Vail
Resorts, Inc. |
|
760
|
175,036
|
|
|
|
$ 744,293
|
Household
Durables — 2.0% |
Garmin
Ltd. |
|
1,503
|
$
206,437 |
Leggett
& Platt, Inc. |
|
6,099
|
124,542
|
MDC
Holdings, Inc. |
|
3,102
|
194,495
|
Whirlpool
Corp. |
|
1,341
|
144,010
|
|
|
|
$ 669,484
|
8
See Notes to Financial Statements.
Parametric
Dividend Income Fund
February 29, 2024
Portfolio of
Investments — continued
Security
|
Shares
|
Value
|
Household
Products — 2.4% |
Church
& Dwight Co., Inc. |
|
2,091
|
$
209,351 |
Colgate-Palmolive
Co. |
|
2,449
|
211,888
|
Kimberly-Clark
Corp. |
|
1,395
|
169,032
|
Procter
& Gamble Co. |
|
1,330
|
211,390
|
|
|
|
$ 801,661
|
Industrial
Conglomerates — 1.0% |
3M
Co. |
|
1,475
|
$
135,877 |
Honeywell
International, Inc. |
|
916
|
182,037
|
|
|
|
$ 317,914
|
Insurance
— 4.7% |
Aflac,
Inc. |
|
2,359
|
$
190,466 |
Cincinnati
Financial Corp. |
|
1,859
|
211,926
|
Fidelity
National Financial, Inc. |
|
3,749
|
189,624
|
Hanover
Insurance Group, Inc. |
|
1,580
|
207,723
|
Old
Republic International Corp. |
|
6,446
|
186,676
|
Principal
Financial Group, Inc. |
|
2,426
|
196,166
|
Prudential
Financial, Inc. |
|
1,622
|
176,782
|
Travelers
Cos., Inc. |
|
881
|
194,666
|
|
|
|
$ 1,554,029
|
IT
Services — 2.4% |
Accenture
PLC, Class A |
|
530
|
$
198,633 |
Amdocs
Ltd. |
|
2,207
|
201,279
|
Cognizant
Technology Solutions Corp., Class A |
|
2,370
|
187,277
|
International
Business Machines Corp. |
|
1,125
|
208,159
|
|
|
|
$ 795,348
|
Leisure
Products — 0.5% |
Hasbro,
Inc. |
|
3,211
|
$
161,481 |
|
|
|
$ 161,481
|
Life
Sciences Tools & Services — 0.5% |
Agilent
Technologies, Inc. |
|
1,242
|
$
170,601 |
|
|
|
$ 170,601
|
Machinery
— 1.8% |
Cummins,
Inc. |
|
792
|
$
212,739 |
Donaldson
Co., Inc. |
|
2,942
|
210,706
|
Snap-on,
Inc. |
|
655
|
180,557
|
|
|
|
$ 604,002
|
Media
— 1.6% |
Interpublic
Group of Cos., Inc. |
|
5,654
|
$
177,536 |
Security
|
Shares
|
Value
|
Media
(continued) |
New
York Times Co., Class A |
|
3,962
|
$
175,437 |
Omnicom
Group, Inc. |
|
2,190
|
193,574
|
|
|
|
$ 546,547
|
Metals
& Mining — 2.0% |
Newmont
Corp. |
|
4,081
|
$
127,531 |
Reliance,
Inc. |
|
639
|
205,260
|
Royal
Gold, Inc. |
|
1,554
|
159,487
|
Southern
Copper Corp.(1) |
|
2,129
|
172,151
|
|
|
|
$ 664,429
|
Multi-Utilities
— 3.7% |
Avista
Corp. |
|
4,807
|
$
159,592 |
Consolidated
Edison, Inc. |
|
2,151
|
187,589
|
Dominion
Energy, Inc. |
|
3,570
|
170,753
|
DTE
Energy Co. |
|
1,735
|
187,987
|
Public
Service Enterprise Group, Inc. |
|
3,148
|
196,435
|
Sempra
|
|
2,578
|
182,007
|
WEC
Energy Group, Inc. |
|
1,954
|
153,370
|
|
|
|
$ 1,237,733
|
Oil,
Gas & Consumable Fuels — 10.2% |
Antero
Midstream Corp. |
|
15,212
|
$
203,841 |
Chevron
Corp. |
|
1,268
|
192,749
|
ConocoPhillips
|
|
1,638
|
184,340
|
Coterra
Energy, Inc. |
|
7,412
|
191,081
|
Devon
Energy Corp. |
|
3,514
|
154,827
|
DHT
Holdings, Inc. |
|
18,828
|
203,719
|
Diamondback
Energy, Inc. |
|
1,121
|
204,605
|
DT
Midstream, Inc. |
|
3,467
|
199,803
|
EOG
Resources, Inc. |
|
1,535
|
175,696
|
Exxon
Mobil Corp. |
|
1,881
|
196,602
|
HF
Sinclair Corp. |
|
3,324
|
184,482
|
Kinder
Morgan, Inc. |
|
10,802
|
187,847
|
ONEOK,
Inc. |
|
2,359
|
177,208
|
Phillips
66 |
|
1,394
|
198,659
|
Pioneer
Natural Resources Co. |
|
770
|
181,096
|
Texas
Pacific Land Corp. |
|
114
|
179,598
|
Valero
Energy Corp. |
|
1,402
|
198,327
|
Williams
Cos., Inc. |
|
5,452
|
195,945
|
|
|
|
$ 3,410,425
|
Pharmaceuticals
— 2.2% |
Bristol-Myers
Squibb Co. |
|
3,202
|
$
162,502 |
Johnson
& Johnson |
|
1,232
|
198,820 |
9
See Notes to Financial Statements.
Parametric
Dividend Income Fund
February 29, 2024
Portfolio of
Investments — continued
Security
|
Shares
|
Value
|
Pharmaceuticals
(continued) |
Merck
& Co., Inc. |
|
1,798
|
$
228,616 |
Pfizer,
Inc. |
|
6,004
|
159,466
|
|
|
|
$ 749,404
|
Professional
Services — 2.2% |
Automatic
Data Processing, Inc. |
|
837
|
$
210,196 |
ManpowerGroup,
Inc. |
|
2,398
|
173,040
|
Paychex,
Inc. |
|
1,411
|
173,017
|
Robert
Half, Inc. |
|
2,181
|
175,352
|
|
|
|
$ 731,605
|
Semiconductors
& Semiconductor Equipment — 1.6% |
Analog
Devices, Inc. |
|
905
|
$
173,597 |
Skyworks
Solutions, Inc. |
|
1,678
|
176,056
|
Texas
Instruments, Inc. |
|
1,142
|
191,091
|
|
|
|
$ 540,744
|
Software
— 1.8% |
Dolby
Laboratories, Inc., Class A |
|
2,264
|
$
183,384 |
Microsoft
Corp. |
|
525
|
217,161
|
Roper
Technologies, Inc. |
|
362
|
197,192
|
|
|
|
$ 597,737
|
Specialty
Retail — 1.8% |
Best
Buy Co., Inc. |
|
2,477
|
$
200,340 |
Home
Depot, Inc. |
|
488
|
185,738
|
TJX
Cos., Inc. |
|
2,025
|
200,758
|
|
|
|
$ 586,836
|
Textiles,
Apparel & Luxury Goods — 2.7% |
Carter's,
Inc. |
|
2,551
|
$
206,503 |
Columbia
Sportswear Co. |
|
2,377
|
196,554
|
Kontoor
Brands, Inc. |
|
2,951
|
174,434
|
Steven
Madden Ltd. |
|
4,320
|
184,982
|
VF
Corp. |
|
8,664
|
141,570
|
|
|
|
$ 904,043
|
Tobacco
— 0.6% |
Altria
Group, Inc. |
|
4,774
|
$
195,304 |
|
|
|
$ 195,304
|
Trading
Companies & Distributors — 1.7% |
Fastenal
Co. |
|
2,802
|
$
204,574 |
Security
|
Shares
|
Value
|
Trading
Companies & Distributors (continued) |
MSC
Industrial Direct Co., Inc., Class A |
|
1,885
|
$
190,272 |
Watsco,
Inc. |
|
435
|
171,442
|
|
|
|
$ 566,288
|
Total
Common Stocks (identified cost $24,133,960) |
|
|
$33,342,974
|
Short-Term
Investments — 0.5% |
Affiliated
Fund — 0.0%(2) |
Security
|
Shares
|
Value
|
Morgan
Stanley Institutional Liquidity Funds - Government Portfolio, Institutional Class, 5.22%(3) |
|
3,877
|
$
3,877 |
Total
Affiliated Fund (identified cost $3,877) |
|
|
$ 3,877
|
Securities
Lending Collateral — 0.5% |
Security
|
Shares
|
Value
|
State
Street Navigator Securities Lending Government Money Market Portfolio, 5.33%(4) |
|
167,741
|
$
167,741 |
Total
Securities Lending Collateral (identified cost $167,741) |
|
|
$ 167,741
|
Total
Short-Term Investments (identified cost $171,618) |
|
|
$ 171,618
|
Total
Investments — 100.5% (identified cost $24,305,578) |
|
|
$33,514,592
|
Other
Assets, Less Liabilities — (0.5)% |
|
|
$
(181,866) |
Net
Assets — 100.0% |
|
|
$33,332,726
|
The
percentage shown for each investment category in the Portfolio of Investments is based on net assets. |
(1) |
All or
a portion of this security was on loan at February 29, 2024. The aggregate market value of securities on loan at February 29, 2024 was $164,797. |
(2) |
Amount
is less than 0.05%. |
(3) |
May be
deemed to be an affiliated investment company. The rate shown is the annualized seven-day yield as of February 29, 2024. |
(4) |
Represents
investment of cash collateral received in connection with securities lending. |
10
See Notes to Financial Statements.
Parametric
Dividend Income Fund
February 29, 2024
Statement of Assets
and Liabilities
|
February 29,
2024 |
Assets
|
|
Unaffiliated
investments, at value (identified cost $24,301,701) — including $164,797 of securities on loan |
$
33,510,715 |
Affiliated
investments, at value (identified cost $3,877) |
3,877
|
Dividends
receivable |
92,794
|
Dividends
receivable from affiliated investments |
310
|
Receivable
for investments sold |
159,126
|
Receivable
for Fund shares sold |
859,357
|
Securities
lending income receivable |
47
|
Tax
reclaims receivable |
246
|
Receivable
from affiliates |
21,869
|
Trustees'
deferred compensation plan |
17,057
|
Total
assets |
$34,665,398
|
Liabilities
|
|
Demand
note payable |
$
30,000 |
Collateral
for securities loaned |
167,741
|
Payable
for Fund shares redeemed |
1,011,275
|
Payable
to affiliates: |
|
Investment adviser and administration fee
|
10,378
|
Distribution
and service fees |
836
|
Trustees'
deferred compensation plan |
17,057
|
Accrued
expenses |
95,385
|
Total
liabilities |
$
1,332,672 |
Net
Assets |
$33,332,726
|
Sources
of Net Assets |
|
Paid-in
capital |
$
29,072,030 |
Distributable
earnings |
4,260,696
|
Net
Assets |
$33,332,726
|
Class
A Shares |
|
Net
Assets |
$
4,273,200 |
Shares
Outstanding |
261,653
|
Net
Asset Value and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) |
$
16.33 |
Maximum
Offering Price Per Share (100 ÷ 94.75 of net asset value per share) |
$
17.23 |
Class
I Shares |
|
Net
Assets |
$
29,059,526 |
Shares
Outstanding |
1,775,329
|
Net
Asset Value, Offering Price and Redemption Price Per Share (net assets ÷ shares of beneficial interest outstanding) |
$
16.37 |
On
sales of $50,000 or more, the offering price of Class A shares is reduced. |
11
See Notes to Financial Statements.
Parametric
Dividend Income Fund
February 29, 2024
|
Year
Ended |
|
February
29, 2024 |
Investment
Income |
|
Dividend
income (net of foreign taxes withheld of $184) |
$
3,034,554 |
Dividend
income from affiliated investments |
21,057
|
Securities
lending income, net |
2,837
|
Total
investment income |
$
3,058,448 |
Expenses
|
|
Investment
adviser and administration fee |
$
268,601 |
Distribution
and service fees: |
|
Class
A |
9,670
|
Trustees’
fees and expenses |
5,623
|
Custodian
fee |
41,697
|
Transfer
and dividend disbursing agent fees |
36,568
|
Legal
and accounting services |
44,567
|
Printing
and postage |
8,768
|
Registration
fees |
58,602
|
Interest
expense and fees |
33,266
|
Miscellaneous
|
8,133
|
Total
expenses |
$
515,495 |
Deduct:
|
|
Waiver
and/or reimbursement of expenses by affiliates |
$
115,088 |
Total
expense reductions |
$
115,088 |
Net
expenses |
$
400,407 |
Net
investment income |
$
2,658,041 |
Realized
and Unrealized Gain (Loss) |
|
Net
realized gain (loss): |
|
Investment
transactions |
$
745,090 |
Net
realized gain |
$
745,090 |
Change
in unrealized appreciation (depreciation): |
|
Investments
|
$
(1,397,790) |
Net
change in unrealized appreciation (depreciation) |
$(1,397,790)
|
Net
realized and unrealized loss |
$
(652,700) |
Net
increase in net assets from operations |
$
2,005,341 |
12
See Notes to Financial Statements.
Parametric
Dividend Income Fund
February 29, 2024
Statements of Changes
in Net Assets
|
Year
Ended February 29, 2024 |
Year
Ended February 28, 2023 |
Increase
(Decrease) in Net Assets |
|
|
From
operations: |
|
|
Net
investment income |
$
2,658,041 |
$
2,773,924 |
Net
realized gain (loss) |
745,090
|
(1,643,145)
|
Net
change in unrealized appreciation (depreciation) |
(1,397,790)
|
602,367
|
Net
increase in net assets from operations |
$
2,005,341 |
$
1,733,146 |
Distributions
to shareholders: |
|
|
Class
A |
$
(117,821) |
$
(75,569) |
Class
I |
(2,911,037)
|
(2,209,944)
|
Total
distributions to shareholders |
$
(3,028,858) |
$
(2,285,513) |
Transactions
in shares of beneficial interest: |
|
|
Class
A |
$
189,883 |
$
1,102,953 |
Class
I |
(90,855,932)
|
85,989,031
|
Net
increase (decrease) in net assets from Fund share transactions |
$
(90,666,049) |
$
87,091,984 |
Net
increase (decrease) in net assets |
$
(91,689,566) |
$
86,539,617 |
Net
Assets |
|
|
At
beginning of year |
$125,022,292
|
$
38,482,675 |
At
end of year |
$
33,332,726 |
$125,022,292
|
13
See Notes to Financial Statements.
Parametric
Dividend Income Fund
February 29, 2024
|
Class
A |
|
Year
Ended February 29, 2024 |
Year
Ended February 28, |
Year
Ended February 29, 2020 |
|
2023
|
2022
|
2021
|
Net
asset value — Beginning of year |
$
16.07 |
$
16.23 |
$
14.13 |
$
11.95 |
$
12.87 |
Income
(Loss) From Operations |
|
|
|
|
|
Net
investment income(1) |
$
0.44 |
$
0.44 |
$
0.38 |
$
0.35 |
$
0.36 |
Net
realized and unrealized gain (loss) |
0.31
|
(0.21)
|
2.10
|
2.19
|
(0.95)
|
Total
income (loss) from operations |
$
0.75 |
$
0.23 |
$
2.48 |
$
2.54 |
$
(0.59) |
Less
Distributions |
|
|
|
|
|
From
net investment income |
$
(0.49) |
$
(0.39) |
$
(0.38) |
$
(0.36) |
$
(0.32) |
From
net realized gain |
—
|
—
|
—
|
—
|
(0.01)
|
Total
distributions |
$
(0.49) |
$
(0.39) |
$
(0.38) |
$
(0.36) |
$
(0.33) |
Net
asset value — End of year |
$16.33
|
$16.07
|
$16.23
|
$14.13
|
$11.95
|
Total
Return(2) |
4.81%
|
1.45%
|
17.74%
|
22.15%
|
(4.76)%
|
Ratios/Supplemental
Data |
|
|
|
|
|
Net
assets, end of year (000's omitted) |
$
4,273 |
$
3,998 |
$
2,943 |
$
3,140 |
$
3,612 |
Ratios
(as a percentage of average daily net assets):(3) |
|
|
|
|
|
Total
expenses |
0.82%
(4) |
0.76%
|
0.89%
|
0.99%
|
0.82%
|
Net
expenses |
0.69%
(4)(5) |
0.65%
(5) |
0.65%
|
0.65%
|
0.65%
|
Net
investment income |
2.78%
|
2.71%
|
2.39%
|
2.92%
|
2.78%
|
Portfolio
Turnover |
52%
|
38%
|
45%
|
61%
|
51%
|
(1) |
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 and do not reflect the effect of sales charges. |
(3) |
Total
expenses do not reflect amounts reimbursed and/or waived by the adviser and administrator and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
(4) |
Includes
interest expense of 0.04% for the year ended February 29, 2024. |
(5) |
Includes
a reduction by the investment adviser and administrator of a portion of its adviser and administration fee due to the Fund’s investment in the Liquidity Fund (equal to less than 0.005% of average daily net assets for the years ended
February 29, 2024 and February 28, 2023). |
14
See Notes to Financial Statements.
Parametric
Dividend Income Fund
February 29, 2024
Financial
Highlights — continued
|
Class
I |
|
Year
Ended February 29, 2024 |
Year
Ended February 28, |
Year
Ended February 29, 2020 |
|
2023
|
2022
|
2021
|
Net
asset value — Beginning of year |
$
16.11 |
$
16.26 |
$
14.15 |
$
11.97 |
$
12.89 |
Income
(Loss) From Operations |
|
|
|
|
|
Net
investment income(1) |
$
0.47 |
$
0.49 |
$
0.42 |
$
0.38 |
$
0.40 |
Net
realized and unrealized gain (loss) |
0.32
|
(0.23)
|
2.11
|
2.20
|
(0.95)
|
Total
income (loss) from operations |
$
0.79 |
$
0.26 |
$
2.53 |
$
2.58 |
$
(0.55) |
Less
Distributions |
|
|
|
|
|
From
net investment income |
$
(0.53) |
$
(0.41) |
$
(0.42) |
$
(0.40) |
$
(0.36) |
From
net realized gain |
—
|
—
|
—
|
—
|
(0.01)
|
Total
distributions |
$
(0.53) |
$
(0.41) |
$
(0.42) |
$
(0.40) |
$
(0.37) |
Net
asset value — End of year |
$
16.37 |
$
16.11 |
$
16.26 |
$
14.15 |
$
11.97 |
Total
Return(2) |
5.06%
|
1.68%
|
18.09%
|
22.47%
|
(4.50)%
|
Ratios/Supplemental
Data |
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
$29,060
|
$121,024
|
$35,539
|
$31,094
|
$43,096
|
Ratios
(as a percentage of average daily net assets):(3) |
|
|
|
|
|
Total
expenses |
0.57%
(4) |
0.51%
|
0.64%
|
0.74%
|
0.57%
|
Net
expenses |
0.44%
(4)(5) |
0.40%
(5) |
0.40%
|
0.40%
|
0.40%
|
Net
investment income |
2.99%
|
3.04%
|
2.66%
|
3.19%
|
3.01%
|
Portfolio
Turnover |
52%
|
38%
|
45%
|
61%
|
51%
|
(1) |
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) |
Total
expenses do not reflect amounts reimbursed and/or waived by the adviser and administrator and certain of its affiliates, if applicable. Net expenses are net of all reductions and represent the net expenses paid by the Fund. |
(4) |
Includes
interest expense of 0.04% for the year ended February 29, 2024. |
(5) |
Includes
a reduction by the investment adviser and administrator of a portion of its adviser and administration fee due to the Fund’s investment in the Liquidity Fund (equal to less than 0.005% of average daily net assets for the years ended
February 29, 2024 and February 28, 2023). |
15
See Notes to Financial Statements.
Parametric
Dividend Income Fund
February 29, 2024
Notes to Financial
Statements
1 Significant Accounting Policies
Parametric Dividend Income Fund (the Fund) is a diversified
series of Eaton Vance Mutual Funds Trust (the Trust). The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. The Fund’s
investment objective is total return and current income. The Fund offers two classes of shares. Class A shares are generally sold subject to a sales charge imposed at time of purchase. Class A shares are offered at net asset value to shareholders
who owned Investor Class shares, which were redesignated as Class A shares on April 29, 2022, and only for such shareholders’ accounts established prior to such date. Class I shares are sold at net asset value and are not subject to a sales
charge. Each class represents a pro rata interest in the Fund, but votes separately on class-specific matters and (as noted below) is subject to different expenses. Realized and unrealized gains and losses and net investment income and losses,
other than class-specific expenses, are allocated daily to each class of shares based on the relative net assets of each class to the total net assets of the Fund. Each class of shares differs in its distribution plan and certain other
class-specific expenses.
The following is a summary of
significant accounting policies of the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Fund is an investment company and follows accounting and reporting
guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946.
A Investment
Valuation—The following methodologies are used to determine the market value or fair value of
investments.
Equity Securities. Equity securities listed on a U.S. securities exchange generally are valued at the last sale or closing price on the day of valuation or, if no sales took place on such date, at the mean between the closing bid and
ask prices on the exchange where such securities are principally traded. Equity securities listed on the NASDAQ National Market System are valued at the NASDAQ official closing price. Unlisted or listed securities for which closing sales prices or
closing quotations are not available are valued at the mean between the latest available bid and ask prices.
Other. Investments in
management investment companies (including money market funds) that do not trade on an exchange are valued at the net asset value as of the close of each business day.
Fair Valuation. In
connection with Rule 2a-5 of the 1940 Act, the Trustees have designated the Fund’s investment adviser as its valuation designee. Investments for which valuations or market quotations are not readily available or are deemed unreliable are
valued by the investment adviser, as valuation designee, at fair value using methods that most fairly reflect the security’s “fair value”, which is the amount that the Fund might reasonably expect to receive for the security upon
its current sale in the ordinary course. Each such determination is based on a consideration of relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security,
the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies or entities, quotations or relevant information obtained from
broker/dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company’s or entity’s financial statements, and an
evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions—Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized
gains and losses on investments sold are determined on the basis of identified cost.
C Income—Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities.
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.
As of February 29, 2024, the Fund
had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the
Internal Revenue Service for a period of three years from the date of filing.
E 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.
F Use of
Estimates—The preparation of the financial statements in conformity with U.S. GAAP 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.
G 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. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust (such as the Trust) could be deemed to have personal
liability for the obligations of the Trust. However, the Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Trust shall assume, upon request by the
shareholder, the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or
expense arising from such liability. Additionally, in the normal course of business,
Parametric
Dividend Income Fund
February 29, 2024
Notes to Financial
Statements — continued
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.
2 Distributions to Shareholders and Income Tax
Information
It is the present policy of the Fund to make
quarterly distributions of all or substantially all of its net investment income and to distribute annually all or substantially all of its net realized capital gains. Distributions to shareholders are recorded on the ex-dividend date. Distributions
are declared separately for each class of shares. Shareholders may reinvest income and capital gain distributions in additional shares of the same class of the Fund at the net asset value as of the ex-dividend date or, at the election of the
shareholder, receive distributions in cash. Distributions to shareholders are determined in accordance with income tax regulations, which may differ from U.S. GAAP. As required by U.S. GAAP, only distributions in excess of tax basis earnings and
profits are 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. For tax purposes, distributions from short-term capital
gains are considered to be from ordinary income.
The tax
character of distributions declared for the years ended February 29, 2024 and February 28, 2023 was as follows:
|
Year
Ended February 29, 2024 |
Year
Ended February 28, 2023 |
Ordinary
income |
$3,028,858
|
$2,285,513
|
During the year ended February 29,
2024, distributable earnings was increased by $86,352 and paid-in capital was decreased by $86,352 due to the Fund’s use of equalization accounting. Tax equalization accounting allows the Fund to treat as a distribution that portion of
redemption proceeds representing a redeeming shareholder’s portion of undistributed taxable income and net capital gains. These reclassifications had no effect on the net assets or net asset value per share of the Fund.
As of February 29, 2024, the components of distributable
earnings (accumulated loss) on a tax basis were as follows:
Undistributed
ordinary income |
$
109,338 |
Deferred
capital losses |
(2,052,024)
|
Net
unrealized appreciation |
6,203,382
|
Distributable
earnings |
$
4,260,696 |
At February 29, 2024, the Fund, for federal income tax
purposes, had deferred capital losses of $2,052,024 which would reduce its taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus would 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. The deferred capital losses are treated as arising on the first day of the Fund’s next taxable
year and retain the same short-term or long-term character as when originally deferred. Of the deferred capital losses at February 29, 2024, $2,052,024 are short-term.
The cost and unrealized appreciation (depreciation) of
investments of the Fund at February 29, 2024, as determined on a federal income tax basis, were as follows:
Aggregate
cost |
$27,311,210
|
Gross
unrealized appreciation |
$
6,521,154 |
Gross
unrealized depreciation |
(317,772)
|
Net
unrealized appreciation |
$
6,203,382 |
Parametric
Dividend Income Fund
February 29, 2024
Notes to Financial
Statements — continued
3 Investment Adviser and Administration Fee and
Other Transactions with Affiliates
The investment adviser
and administration fee is earned by Eaton Vance Management (EVM), an indirect, wholly-owned subsidiary of Morgan Stanley, as compensation for investment advisory and administrative services rendered to the Fund. The fee is computed at an annual rate
as a percentage of the Fund’s average daily net assets as follows and is payable monthly:
Average
Daily Net Assets |
Annual
Fee Rate |
Up
to $1 billion |
0.3000%
|
$1
billion but less than $2.5 billion |
0.2875%
|
$2.5
billion but less than $5 billion |
0.2750%
|
$5
billion and over |
0.2675%
|
For the year ended February 29,
2024, the investment adviser and administration fee amounted to $268,601 or 0.30% of the Fund’s average daily net assets. Pursuant to an investment sub-advisory agreement, EVM has delegated the investment management of the Fund to Parametric
Portfolio Associates LLC (Parametric), an affiliate of EVM and an indirect, wholly-owned subsidiary of Morgan Stanley. EVM pays Parametric a portion of its investment adviser and administration fee for sub-advisory services provided to the
Fund.
The Fund may invest in a money market fund, the
Institutional Class of the Morgan Stanley Institutional Liquidity Funds - Government Portfolio (the “Liquidity Fund”), an open-end management investment company managed by Morgan Stanley Investment Management Inc., a wholly-owned
subsidiary of Morgan Stanley. The investment adviser and administration fee paid by the Fund is reduced by an amount equal to its pro rata share of the advisory and administration fee paid by the Fund due to its investment in the Liquidity Fund. For
the year ended February 29, 2024, the investment adviser and administration fee paid was reduced by $664 relating to the Fund’s investment in the Liquidity Fund.
EVM and Parametric have agreed to reimburse the Fund’s
expenses to the extent that total annual operating expenses (relating to ordinary operating expenses only and excluding such expenses as brokerage commissions, acquired fund fees and expenses of unaffiliated funds, borrowing costs, taxes or
litigation expenses) exceed 0.65% and 0.40% of the Fund’s average daily net assets for Class A and Class I, respectively. This agreement may be changed or terminated after June 30, 2024. Pursuant to this agreement, EVM and Parametric were
allocated $114,424 in total of the Fund's operating expenses for the year ended February 29, 2024.
EVM provides sub-transfer agency and related services to the
Fund pursuant to a Sub-Transfer Agency Support Services Agreement. For the year ended February 29, 2024, EVM earned $1,552 from the Fund pursuant to such agreement, which is included in transfer and dividend disbursing agent fees on the Statement of
Operations. Eaton Vance Distributors, Inc. (EVD), an affiliate of EVM and the Fund’s principal underwriter, received distribution and service fees from Class A shares (see Note 4).
Trustees and officers of the Fund who are members of
EVM’s organization receive remuneration for their services to the Fund out of the investment adviser and administration fee. Trustees of the Fund who are not affiliated with EVM may elect to defer receipt of all or a percentage of their annual
fees in accordance with the terms of the Trustees Deferred Compensation Plan. Certain officers and Trustees of the Fund are officers of EVM.
4 Distribution Plan
The Fund has in effect a distribution plan for Class A shares
(Class A Plan) pursuant to Rule 12b-1 under the 1940 Act. Pursuant to the Class A Plan, the Fund pays EVD a distribution and service fee of 0.25% per annum of its average daily net assets attributable to Class A shares for distribution services and
facilities provided to the Fund by EVD, as well as for personal services and/or the maintenance of shareholder accounts. Distribution and service fees paid or accrued to EVD for the year ended February 29, 2024 amounted to $9,670 for Class A
shares.
Distribution and service fees are subject to the
limitations contained in the Financial Industry Regulatory Authority Rule 2341(d).
5 Contingent Deferred Sales Charges
Class A shares may be subject to a 1.00% contingent deferred
sales charge (CDSC) if redeemed within 12 months of purchase (depending on the circumstances of purchase). Redemptions of Class A shares by former Investor Class shareholders are not subject to a CDSC. Generally, the CDSC is based upon the lower of
the net asset value at date of redemption or date of purchase. No charge is levied on shares acquired by reinvestment of dividends or capital gain distributions. For the year ended February 29, 2024, the Fund was informed that EVD received no CDSCs
paid by Class A shareholders.
6 Purchases and
Sales of Investments
Purchases and sales of investments,
other than short-term obligations, aggregated $45,783,057 and $135,002,858, respectively, for the year ended February 29, 2024.
Parametric
Dividend Income Fund
February 29, 2024
Notes to Financial
Statements — continued
7 Shares of Beneficial Interest
The Fund’s Declaration of Trust permits the Trustees to
issue an unlimited number of full and fractional shares of beneficial interest (without par value). Such shares may be issued in a number of different series (such as the Fund) and classes. Transactions in Fund shares were as follows:
|
Year
Ended February 29, 2024 |
|
Year
Ended February 28, 2023 |
|
Shares
|
Amount
|
|
Shares
|
Amount
|
Class
A |
|
|
|
|
|
Sales
|
115,897
|
$
1,823,910 |
|
95,974
|
$
1,560,658 |
Issued
to shareholders electing to receive payments of distributions in Fund shares |
7,459
|
117,821
|
|
4,796
|
75,569
|
Redemptions
|
(110,458)
|
(1,751,848)
|
|
(33,307)
|
(533,274)
|
Net
increase |
12,898
|
$
189,883 |
|
67,463
|
$ 1,102,953
|
Class
I |
|
|
|
|
|
Sales
|
1,452,189
|
$
22,908,330 |
|
6,492,492
|
$
104,729,807 |
Issued
to shareholders electing to receive payments of distributions in Fund shares |
56,601
|
889,584
|
|
45,506
|
715,398
|
Redemptions
|
(7,245,733)
|
(114,653,846)
|
|
(1,211,471)
|
(19,456,174)
|
Net
increase (decrease) |
(5,736,943)
|
$
(90,855,932) |
|
5,326,527
|
$ 85,989,031
|
8 Line of Credit
The Fund participates with other portfolios and funds managed
by EVM and its affiliates in a $650 million unsecured revolving line of credit agreement with a group of banks, which is in effect through October 22, 2024. In connection with the renewal of the agreement on October 24, 2023, the
borrowing limit was decreased from $725 million. Borrowings are made by the Fund solely for temporary purposes related to redemptions and other short-term cash needs. Interest is charged to the Fund based on its borrowings at an amount
above either the Secured Overnight Financing Rate (SOFR) or Federal Funds rate. In addition, a fee computed at an annual rate of 0.15% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the
end of each quarter. In connection with the renewal of the agreement in October 2023, an arrangement fee of $150,000 was incurred that was allocated to the participating portfolios and funds. Because the line of credit is not available exclusively
to the Fund, it may be unable to borrow some or all of its requested amounts at any particular time. At February 29, 2024, the Fund had a balance outstanding pursuant to this line of credit of $30,000 at an annual interest rate of 6.33%. Based on
the short-term nature of the borrowings under the line of credit and variable interest rate, the carrying value of the borrowings approximated its fair value at February 29, 2024. If measured at fair value, borrowings under the line of credit would
have been considered as Level 2 in the fair value hierarchy (see Note 11) at February 29, 2024. Average borrowings and the average annual interest rate (excluding fees) for the year ended February 29, 2024 were $523,825 and 6.35%,
respectively.
9 Securities Lending
Agreement
The Fund has established a securities lending
agreement with State Street Bank and Trust Company (SSBT) as securities lending agent in which the Fund lends portfolio securities to qualified borrowers in exchange for collateral consisting of either cash or
securities issued or guaranteed by the U.S. government or its agencies or instrumentalities in an amount at least equal to the market value of the securities on loan. The market value of securities loaned is determined daily and any additional
required collateral is delivered to the Fund on the next business day. Cash collateral is invested in the State Street Navigator Securities Lending Government Money Market Portfolio, a money market fund registered under the 1940 Act. The Fund earns
interest on the amount invested but it must pay (and at times receive from) the broker a loan rebate fee computed as a varying percentage of the collateral received. For security loans secured by non-cash collateral, the Fund earns a negotiated
lending fee from the borrower. A portion of the income earned by the Fund from its investment of cash collateral, net of rebate fees, and lending fees received is allocated to SSBT for its services as lending agent and the portion allocated to the
Fund is presented as securities lending income, net on the Statement of Operations. Non-cash collateral is held by the lending agent on behalf of the Fund and cannot be sold or re-pledged by the Fund; accordingly, such collateral is not reflected in
the Statement of Assets and Liabilities.
The Fund is
subject to possible delay in the recovery of loaned securities. Pursuant to the securities lending agreement, SSBT has provided indemnification to the Fund in the event of default by a borrower with respect to a loan. The Fund bears the risk of loss
with respect to the investment of cash collateral.
Parametric
Dividend Income Fund
February 29, 2024
Notes to Financial
Statements — continued
At
February 29, 2024, the value of the securities loaned and the value of the collateral received, which exceeded the value of the securities loaned, amounted to $164,797 and $167,741, respectively. Collateral received was comprised of cash. The
securities lending transactions have no contractual maturity date and each of the Fund and borrower has the option to terminate a loan at any time.
The following table provides a breakdown of securities lending
transactions accounted for as secured borrowings, the obligations by class of collateral pledged, and the remaining contractual maturity of those transactions as of February 29, 2024.
|
Remaining
Contractual Maturity of the Transactions |
|
Overnight
and Continuous |
<30
days |
30
to 90 days |
>90
days |
Total
|
Common
Stocks |
$167,741
|
$ —
|
$ —
|
$ —
|
$167,741
|
The carrying amount of the liability
for collateral for securities loaned at February 29, 2024 approximated its fair value. If measured at fair value, such liability would have been considered as Level 2 in the fair value hierarchy (see Note 11) at February 29, 2024.
10 Affiliated Investments
At February 29, 2024, the value of the Fund's investment in
funds that may be deemed to be affiliated was $3,877, which represents less than 0.05% of the Fund's net assets. Transactions in such investments by the Fund for the year ended February 29, 2024 were as follows:
Name
|
Value,
beginning of period |
Purchases
|
Sales
proceeds |
Net
realized gain (loss) |
Change
in unrealized appreciation (depreciation) |
Value,
end of period |
Dividend
income |
Shares,
end of period |
Short-Term
Investments |
Liquidity
Fund |
$1,601,137
|
$25,694,771
|
$(27,292,031)
|
$ —
|
$ —
|
$3,877
|
$21,057
|
3,877
|
11 Fair Value
Measurements
Under generally accepted accounting
principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels
listed below.
•
|
Level 1 – quoted prices
in active markets for identical investments |
•
|
Level 2 – other
significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
•
|
Level 3
– significant unobservable inputs (including a fund's own assumptions in determining the fair value of investments) |
In cases where the inputs used to measure fair value fall in
different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.
At February 29, 2024, the hierarchy of inputs used in valuing
the Fund's investments, which are carried at fair value, were as follows:
Asset
Description |
Level
1 |
Level
2 |
Level
3 |
Total
|
Common
Stocks |
$
33,342,974* |
$
— |
$
— |
$
33,342,974 |
Short-Term
Investments: |
|
|
|
|
Affiliated
Fund |
3,877
|
—
|
—
|
3,877
|
Securities
Lending Collateral |
167,741
|
—
|
—
|
167,741
|
Total
Investments |
$ 33,514,592
|
$ —
|
$ —
|
$33,514,592
|
*
|
The
level classification by major category of investments is the same as the category presentation in the Portfolio of Investments. |
Parametric
Dividend Income Fund
February 29, 2024
Report of Independent
Registered Public Accounting Firm
To the
Trustees of Eaton Vance Mutual Funds Trust and Shareholders of Parametric Dividend Income Fund:
Opinion on the Financial Statements and Financial
Highlights
We have audited the accompanying statement of
assets and liabilities of Parametric Dividend Income Fund (the "Fund") (one of the funds constituting Eaton Vance Mutual Funds Trust), including the portfolio of investments, as of February 29, 2024, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and
financial highlights present fairly, in all material respects, the financial position of the Fund as of February 29, 2024, and 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 the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We conducted our audits in accordance with the
standards of the PCAOB. 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, whether due to error or fraud. The
Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the
purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks
of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements and financial highlights. Our procedures included confirmation of securities owned as of February 29, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing
procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
April 18, 2024
We have served as the auditor of one or
more Eaton Vance investment companies since 1959.
Parametric
Dividend Income Fund
February 29, 2024
Federal Tax
Information (Unaudited)
The
Form 1099-DIV you receive in February 2025 will show the tax status of all distributions paid to your account in calendar year 2024. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their
investment in the Fund. As required by the Internal Revenue Code and/or regulations, shareholders must be notified regarding the status of qualified dividend income for individuals and the dividends received deduction for corporations.
Qualified Dividend Income. For
the fiscal year ended February 29, 2024, the Fund designates approximately $2,875,055, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as qualified dividend income eligible for the reduced tax rate of
15%.
Dividends Received Deduction. Corporate shareholders are generally entitled to take the dividends received deduction on the portion of the Fund’s dividend distribution that qualifies under tax law. For the Fund’s fiscal 2024 ordinary
income dividends, 100% qualifies for the corporate dividends received deduction.
Parametric
Dividend Income Fund
February 29, 2024
Management and
Organization
Fund
Management. The Trustees of Eaton Vance Mutual Funds Trust (the Trust) are responsible for the overall management and supervision of the Trust's affairs. The Board members and officers of the Trust are listed below.
Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Board members hold indefinite terms of office. Each Trustee holds office until his or her successor is elected and
qualified, subject to a prior death, resignation, retirement, disqualification or removal. Under the terms of the Fund’s current Trustee retirement policy, an Independent Trustee must retire and resign as a Trustee on the earlier of: (i) the
first day of July following his or her 74th birthday; or (ii), with limited exception, December 31st of the 20th year in which he or she has served as a Trustee. However, if such retirement and resignation would cause the Fund to be out of
compliance with Section 16 of the 1940 Act or any other regulations or guidance of the SEC, then such retirement and resignation will not become effective until such time as action has been taken for the Fund to be in compliance therewith. 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 Board member and officer is One Post Office Square,
Boston, Massachusetts 02109. As used below, “BMR” refers to Boston Management and Research, “EV” refers to EV LLC, “EVM” refers to Eaton Vance Management, “MSIM” refers to Morgan Stanley Investment
Management Inc. and “EVD” refers to Eaton Vance Distributors, Inc. EV is the trustee of each of EVM and BMR. Each of EVM, BMR, EVD and EV are indirect, wholly owned subsidiaries of Morgan Stanley. Each officer affiliated with EVM may
hold a position with other EVM affiliates that is comparable to his or her position with EVM listed below. Each Trustee oversees 127 funds in the Eaton Vance fund complex (including both funds and portfolios in a hub and spoke
structure).
Name
and Year of Birth |
Trust
Position(s) |
Length
of Service |
Principal
Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
Interested Trustee
|
Anchal
Pachnanda 1980 |
Trustee
|
Since
2023 |
Co-Head of
Strategy of MSIM (since 2019). Formerly, Head of Strategy of MSIM (2017-2019). Ms. Pachnanda is an interested person because of her position with MSIM, which is an affiliate of the Trust. Other
Directorships. None. |
Noninterested Trustees
|
Alan
C. Bowser 1962 |
Trustee
|
Since
2022 |
Private investor.
Formerly, Chief Diversity Officer, Partner and a member of the Operating Committee, and formerly served as Senior Advisor on Diversity and Inclusion for the firm’s chief executive officer, Co-Head of the Americas Region, and Senior Client
Advisor of Bridgewater Associates, an asset management firm (2011- 2023). Other Directorships. Independent Director of Stout Risius Ross (a middle market professional services advisory firm) (since 2021).
|
Mark
R. Fetting 1954 |
Trustee
|
Since
2016 |
Private investor.
Formerly held various positions at Legg Mason, Inc. (investment management firm) (2000-2012), including President, Chief Executive Officer, Director and Chairman (2008-2012), Senior Executive Vice President (2004-2008) and Executive Vice President
(2001-2004). Formerly, President of Legg Mason family of funds (2001-2008). Formerly, Division President and Senior Officer of Prudential Financial Group, Inc. and related companies (investment management firm) (1991-2000). Other Directorships. None. |
Cynthia
E. Frost 1961 |
Trustee
|
Since
2014 |
Private investor.
Formerly, Chief Investment Officer of Brown University (university endowment) (2000-2012). Formerly, Portfolio Strategist for Duke Management Company (university endowment manager) (1995-2000). Formerly, Managing Director, Cambridge Associates
(investment consulting company) (1989-1995). Formerly, Consultant, Bain and Company (management consulting firm) (1987-1989). Formerly, Senior Equity Analyst, BA Investment Management Company (1983-1985). Other
Directorships. None. |
George
J. Gorman 1952 |
Chairperson
of the Board and Trustee |
Since
2021 (Chairperson) and 2014 (Trustee) |
Principal
at George J. Gorman LLC (consulting firm). Formerly, Senior Partner at Ernst & Young LLP (a registered public accounting firm) (1974-2009). Other Directorships. None. |
Parametric
Dividend Income Fund
February 29, 2024
Management and
Organization — continued
Name
and Year of Birth |
Trust
Position(s) |
Length
of Service |
Principal
Occupation(s) and Other Directorships During Past Five Years and Other Relevant Experience |
Noninterested Trustees
(continued) |
Valerie
A. Mosley 1960 |
Trustee
|
Since
2014 |
Chairwoman
and Chief Executive Officer of Valmo Ventures (a consulting and investment firm). Founder of Upward Wealth, Inc., dba BrightUp, a fintech platform. Formerly, Partner and Senior Vice President, Portfolio Manager and Investment Strategist at
Wellington Management Company, LLP (investment management firm) (1992-2012). Formerly, Chief Investment Officer, PG Corbin Asset Management (1990-1992). Formerly worked in institutional corporate bond sales at Kidder Peabody (1986-1990). Other Directorships. Director of DraftKings, Inc. (digital sports entertainment and gaming company) (since September 2020). Director of Envestnet, Inc. (provider of intelligent systems for wealth management and
financial wellness) (since 2018). Formerly, Director of Dynex Capital, Inc. (mortgage REIT) (2013-2020) and Director of Groupon, Inc. (e-commerce provider) (2020-2022). |
Keith
Quinton 1958 |
Trustee
|
Since
2018 |
Private investor,
researcher and lecturer. Formerly, Independent Investment Committee Member at New Hampshire Retirement System (2017-2021). Formerly, Portfolio Manager and Senior Quantitative Analyst at Fidelity Investments (investment management firm)
(2001-2014). Other Directorships. Formerly, Director (2016-2021) and Chairman (2019-2021) of New Hampshire Municipal Bond Bank. |
Marcus
L. Smith 1966 |
Trustee
|
Since
2018 |
Private investor
and independent corporate director. Formerly, Chief Investment Officer, Canada (2012-2017), Chief Investment Officer, Asia (2010-2012), Director of Asian Research (2004-2010) and portfolio manager (2001-2017) at MFS Investment Management
(investment management firm). Other Directorships. Director of First Industrial Realty Trust, Inc. (an industrial REIT) (since 2021). Director of MSCI Inc. (global provider of investment decision support
tools) (since 2017). Formerly, Director of DCT Industrial Trust Inc. (logistics real estate company) (2017-2018). |
Susan
J. Sutherland 1957 |
Trustee
|
Since
2015 |
Private investor.
Director of Ascot Group Limited and certain of its subsidiaries (insurance and reinsurance) (since 2017). Formerly, Director of Hagerty Holding Corp. (insurance) (2015-2018) and Montpelier Re Holdings Ltd. (insurance and reinsurance) (2013-2015).
Formerly, Associate, Counsel and Partner at Skadden, Arps, Slate, Meagher & Flom LLP (law firm) (1982-2013). Other Directorships. Formerly, Director of Kairos Acquisition Corp. (insurance/InsurTech
acquisition company) (2021-2023). |
Scott
E. Wennerholm 1959 |
Trustee
|
Since
2016 |
Private investor.
Formerly, Trustee at Wheelock College (postsecondary institution) (2012-2018). Formerly, Consultant at GF Parish Group (executive recruiting firm) (2016-2017). Formerly, Chief Operating Officer and Executive Vice President at BNY Mellon Asset
Management (investment management firm) (2005-2011). Formerly, Chief Operating Officer and Chief Financial Officer at Natixis Global Asset Management (investment management firm) (1997-2004). Formerly, Vice President at Fidelity Investments
Institutional Services (investment management firm) (1994-1997). Other Directorships. None. |
Nancy
A. Wiser 1967 |
Trustee
|
Since
2022 |
Formerly,
Executive Vice President and the Global Head of Operations at Wells Fargo Asset Management (2011-2021). Other Directorships. None. |
Name
and Year of Birth |
Trust
Position(s) |
Length
of Service |
Principal
Occupation(s) During Past Five Years |
Principal
Officers who are not Trustees |
Kenneth
A. Topping 1966 |
President
|
Since
2023 |
Vice
President and Chief Administrative Officer of EVM and BMR and Chief Operating Officer for Public Markets at MSIM. Also Vice President of Calvert Research and Management (“CRM”) since 2021. Formerly, Chief Operating Officer for Goldman
Sachs Asset Management ‘Classic' (2009-2020). |
Deidre
E. Walsh 1971 |
Vice
President and Chief Legal Officer |
Since
2009 |
Vice
President of EVM and BMR. Also Vice President of CRM. |
James
F. Kirchner 1967 |
Treasurer
|
Since
2007 |
Vice
President of EVM and BMR. Also Vice President of CRM. |
Parametric
Dividend Income Fund
February 29, 2024
Management and
Organization — continued
Name
and Year of Birth |
Trust
Position(s) |
Length
of Service |
Principal
Occupation(s) During Past Five Years |
Principal
Officers who are not Trustees (continued) |
Nicholas
S. Di Lorenzo 1987 |
Secretary
|
Since
2022 |
Formerly,
associate (2012-2021) and counsel (2022) at Dechert LLP. |
Laura
T. Donovan 1976 |
Chief
Compliance Officer |
Since
2024 |
Vice
President of EVM and BMR. |
The SAI
for the Fund includes additional information about the Trustees and officers of the Fund and can be obtained without charge on Eaton Vance’s website at www.eatonvance.com or by calling 1-800-260-0761.
Privacy
Notice |
April 2021
|
FACTS
|
WHAT
DOES EATON VANCE DO WITH YOUR PERSONAL INFORMATION? |
Why?
|
Financial
companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read
this notice carefully to understand what we do. |
|
|
What?
|
The
types of personal information we collect and share depend on the product or service you have with us. This information can include:■ Social Security number and income ■ investment
experience and risk tolerance ■ checking account number and wire transfer instructions |
|
|
How?
|
All
financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eaton Vance
chooses to share; and whether you can limit this sharing. |
Reasons
we can share your personal information |
Does
Eaton Vance share? |
Can
you limit this sharing? |
For
our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus |
Yes
|
No
|
For
our marketing purposes — to offer our products and services to you |
Yes
|
No
|
For
joint marketing with other financial companies |
No
|
We
don’t share |
For
our investment management affiliates’ everyday business purposes — information about your transactions, experiences, and creditworthiness |
Yes
|
Yes
|
For
our affiliates’ everyday business purposes — information about your transactions and experiences |
Yes
|
No
|
For
our affiliates’ everyday business purposes — information about your creditworthiness |
No
|
We
don’t share |
For
our investment management affiliates to market to you |
Yes
|
Yes
|
For
our affiliates to market to you |
No
|
We
don’t share |
For
nonaffiliates to market to you |
No
|
We
don’t share |
To
limit our sharing |
Call
toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.comPlease note:If you are a new customer,
we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact
us at any time to limit our sharing. |
Questions?
|
Call
toll-free 1-800-262-1122 or email: EVPrivacy@eatonvance.com |
Privacy
Notice — continued |
April 2021
|
Who
we are |
Who
is providing this notice? |
Eaton
Vance Management, Eaton Vance Distributors, Inc., Eaton Vance Trust Company, Eaton Vance Management (International) Limited, Eaton Vance Advisers International Ltd., Eaton Vance Global Advisors Limited, Eaton Vance Management’s Real Estate
Investment Group, Boston Management and Research, Calvert Research and Management, Eaton Vance and Calvert Fund Families and our investment advisory affiliates (“Eaton Vance”) (see Investment Management Affiliates definition below)
|
What
we do |
How
does Eaton Vance protect my personal information? |
To
protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of
customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information. |
How
does Eaton Vance collect my personal information? |
We
collect your personal information, for example, when you■ open an account or make deposits or withdrawals from your account ■ buy securities from us or make a wire transfer
■ give us your contact informationWe also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
Why
can’t I limit all sharing? |
Federal
law gives you the right to limit only■ sharing for affiliates’ everyday business purposes — information about your creditworthiness ■ affiliates from using your information
to market to you ■ sharing for nonaffiliates to market to youState laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.
|
Definitions
|
Investment
Management Affiliates |
Eaton
Vance Investment Management Affiliates include registered investment advisers, registered broker- dealers, and registered and unregistered funds. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth
Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
Affiliates
|
Companies
related by common ownership or control. They can be financial and nonfinancial companies.■ Our affiliates include companies with a Morgan Stanley name and financial
companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co. |
Nonaffiliates
|
Companies
not related by common ownership or control. They can be financial and nonfinancial companies.■ Eaton Vance does not share with nonaffiliates so they can market to
you. |
Joint
marketing |
A
formal agreement between nonaffiliated financial companies that together market financial products or services to you.■ Eaton Vance doesn't jointly market.
|
Other
important information |
Vermont:
Except as permitted by law, we will not share personal information we collect about Vermont residents with Nonaffiliates unless you provide us with your written consent to share such
information.California: Except as permitted by law, we will not share personal information we collect about California residents with Nonaffiliates and we will limit sharing
such personal information with our Affiliates to comply with California privacy laws that apply to us. |
Delivery of Shareholder Documents. The Securities and Exchange Commission (SEC) 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 intermediary, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial intermediary, otherwise. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-260-0761, or contact your financial intermediary. Your instructions that householding not apply
to delivery of your Eaton Vance documents will typically be effective within 30 days of receipt by Eaton Vance or your financial intermediary.
Portfolio
Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) files a schedule of portfolio holdings on Part F to Form N-PORT with the
SEC. Certain information filed on Form N-PORT may be viewed on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-260-0761 or in the EDGAR database on the SEC’s website at www.sec.gov.
Proxy
Voting. 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 (if applicable) 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 and information on how the Funds or
Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request, by calling 1-800-260-0761 and by accessing the SEC’s website at www.sec.gov.
Tailored Shareholder Reports. Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging
streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of
charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Eaton
Vance Funds.
Investment Adviser and Administrator
Eaton Vance Management
One Post Office Square
Boston, MA 02109
Investment Sub-Adviser
Parametric Portfolio Associates LLC
800 Fifth Avenue, Suite 2800
Seattle, WA 98104
Principal Underwriter*
Eaton Vance Distributors, Inc.
One Post Office Square
Boston, MA 02109
(617) 482-8260
Custodian
State Street Bank and Trust Company
One Congress Street, Suite 1
Boston, MA 02114-2016
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
Attn: Eaton Vance Funds
P.O. Box 534439
Pittsburgh, PA 15253-4439
(800) 260-0761
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
Fund Offices
One Post Office
Square
Boston, MA 02109
* FINRA BrokerCheck. Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the
professional background of current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing this program is available to
investors at www.FINRA.org.
Item 2. Code of Ethics
The registrant (sometimes referred to as the Fund) 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. The registrant has not amended the code of ethics as described in Form N-CSR during the period covered by this report. The registrant has not
granted any waiver, including an implicit waiver, from a provision of the code of ethics as described in Form N-CSR during the period covered by this report.
Item 3. Audit Committee Financial Expert
The
registrants Board of Trustees (the Board) has designated George J. Gorman and Scott E. Wennerholm, each an independent trustee, as audit committee financial experts. Mr. Gorman is a certified public accountant who is the
Principal at George J. Gorman LLC (a consulting firm). Previously, Mr. Gorman served in various capacities at Ernst & Young LLP (a registered public accounting firm), including as Senior Partner. Mr. Gorman also has experience
serving as an independent trustee and audit committee financial expert of other mutual fund complexes. Mr. Wennerholm is a private investor. Previously, Mr. Wennerholm served as a Trustee at Wheelock College (postsecondary institution), as
a Consultant at GF Parish Group (executive recruiting firm), Chief Operating Officer and Executive Vice President at BNY Mellon Asset Management (investment management firm), Chief Operating Officer and Chief Financial Officer at Natixis Global
Asset Management (investment management firm), and Vice President at Fidelity Investments Institutional Services (investment management firm).
Item 4. Principal Accountant Fees and Services
Parametric Dividend Income Fund (the Fund(s)) is a series of Eaton Vance Mutual Funds Trust (the Trust), a Massachusetts business
trust, which, including the Fund, contains a total of 34 series (the Series). The Trust is registered under the Investment Company Act of 1940 as an open-end management investment company. This
Form N-CSR relates to the Funds annual report.
(a)-(d)
The following table presents the aggregate fees billed to the Fund for the Funds fiscal years ended February 28, 2023 and February 29, 2024 by
the Funds principal accountant, Deloitte & Touche LLP (D&T), for professional services rendered for the audit of the Funds annual financial statements and fees billed for other services rendered by D&T during
such periods.
Parametric Dividend Income Fund
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
2/28/23 |
|
|
2/29/24 |
|
Audit Fees |
|
$ |
27,150 |
|
|
$ |
27,600 |
|
Audit-Related Fees(1) |
|
$ |
0 |
|
|
$ |
0 |
|
Tax Fees(2) |
|
$ |
1,650 |
|
|
$ |
0 |
|
All Other Fees(3) |
|
$ |
0 |
|
|
$ |
0 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
28,800 |
|
|
$ |
27,600 |
|
|
|
|
|
|
|
|
|
|
(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 and other related tax compliance/planning matters. |
(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. |
The various Series comprising the Trust have differing fiscal year ends
(January 31, February 28/29, September 30, October 31, November 30 or December 31). The following table presents the aggregate audit, audit-related, tax, and other fees billed to all of the Series in the Trust by D&T for the last
two fiscal years of each Series.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
9/30/22 |
|
|
10/31/22 |
|
|
11/30/22 |
|
|
12/31/22 |
|
|
1/31/23 |
|
|
2/28/23 |
|
|
9/30/23 |
|
|
10/31/23 |
|
|
12/31/23 |
|
|
1/31/24 |
|
|
2/29/24 |
|
Audit Fees |
|
$ |
104,200 |
|
|
$ |
816,633 |
|
|
$ |
41,150 |
|
|
$ |
130,600 |
|
|
$ |
172,250 |
|
|
$ |
27,150 |
|
|
$ |
117,600 |
|
|
$ |
828,300 |
|
|
$ |
142,400 |
|
|
$ |
166,600 |
|
|
$ |
27,600 |
|
Audit-Related Fees(1) |
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
Tax Fees(2) |
|
$ |
5,000 |
|
|
$ |
44,100 |
|
|
$ |
0 |
|
|
$ |
16,150 |
|
|
$ |
14,695 |
|
|
$ |
1,650 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
All Other Fees(3) |
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
5,566 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
109,200 |
|
|
$ |
860,733 |
|
|
$ |
41,150 |
|
|
$ |
146,750 |
|
|
$ |
186,945 |
|
|
$ |
28,800 |
|
|
$ |
117,600 |
|
|
$ |
833,866 |
|
|
$ |
142,400 |
|
|
$ |
166,600 |
|
|
$ |
27,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. Includes consent fee for N-14
registration statements related to fund mergers. |
(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 and other related tax compliance/planning matters. |
(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. |
(e)(1) The registrants audit committee has adopted policies and
procedures relating to the pre-approval of services provided by the registrants 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 registrants audit committee at least annually. The registrants audit committee maintains full responsibility for the appointment,
compensation, and oversight of the work of the registrants principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were
approved by the registrants audit committee pursuant to the de minimis exception set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(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 for services rendered to all of the Series in the Trust by 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 D&T for the last two fiscal years of each Series.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Years Ended |
|
9/30/22 |
|
|
10/31/22 |
|
|
11/30/22 |
|
|
12/31/22 |
|
|
1/31/23 |
|
|
2/28/23 |
|
|
9/30/23 |
|
|
10/31/23 |
|
|
12/31/23 |
|
|
1/31/24 |
|
|
2/29/24 |
|
Registrant(1) |
|
$ |
5,000 |
|
|
$ |
44,100 |
|
|
$ |
0 |
|
|
$ |
16,150 |
|
|
$ |
14,695 |
|
|
$ |
1,650 |
|
|
$ |
0 |
|
|
$ |
5,566 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
0 |
|
Eaton Vance(2) |
|
$ |
52,836 |
|
|
$ |
52,836 |
|
|
$ |
52,836 |
|
|
$ |
52,836 |
|
|
$ |
52,836 |
|
|
$ |
52,836 |
|
|
$ |
52,836 |
|
|
$ |
52,836 |
|
|
$ |
52,836 |
|
|
$ |
52,836 |
|
|
$ |
52,836 |
|
(1) |
Includes all of the Series of the Trust. During the fiscal years reported above, certain of the Funds were
feeder funds in a master-feeder fund structure or funds of funds. |
(2) |
Various subsidiaries of Morgan Stanley act in either an investment advisory and/or service provider capacity
with respect to the Series and/or their respective master funds (if applicable). |
(h) The registrants audit committee
has considered whether the provision by the registrants principal accountant of non-audit services to the registrants 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 accountants independence.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed
Registrants
Not applicable.
Item 6. Schedule
of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for
Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities
by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
No material changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrants principal executive officer and principal financial officer that the effectiveness of the
registrants 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 Commissions rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to
the registrants principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrants internal controls over financial reporting during the
period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits
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
|
|
|
By: |
|
/s/ Kenneth A. Topping |
|
|
Kenneth A. Topping |
|
|
Principal Executive Officer |
Date: April 22, 2024
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 F. Kirchner |
|
|
James F. Kirchner |
|
|
Principal Financial Officer |
|
Date: April 22, 2024 |
|
|
By: |
|
/s/ Kenneth A. Topping |
|
|
Kenneth A. Topping |
|
|
Principal Executive Officer |
|
Date: April 22, 2024 |