STANDISH, AYER & WOOD INVESTMENT TRUST
STANDISH SMALL CAPITALIZATION EQUITY ASSET FUND
Financial Statements for the Period Ended
September 30, 1998
[STANDISH LOGO]
<PAGE>
STANDISH, AYER & WOOD INVESTMENT TRUST
November 25, 1998
Dear Standish Funds Shareholder:
Enclosed you will find the annual statement for your Standish Fund for the
fiscal year ending September 30, 1998.
As of that date, Standish, Ayer & Wood, Inc., the advisor, together with its
affiliate, Standish International Management Company, L.P., had approximately
$45 billion of assets under management including the $6.4 billion of assets
represented by the Standish Funds. Our principal clients are corporate pension
trusts, governmental pension funds, insurance companies, endowments and
foundations, and high net worth individuals. Standish, Ayer & Wood remains
independent and is owned by investment professionals active in the business.
Both assets under management and the professional staff grew considerably over
the past year, while the investment team and the clientele have remained
constant.
During the twelve months ending September 30, 1998, investment returns have
generally been positive. For example, larger capitalization U.S. common stocks
as reflected in the Standard and Poor's 500 Index provided a total return of
9.05%, while higher grade domestic taxable bonds as represented by the Lehman
Aggregate returned 11.49%. However, within the twelve-month period there has
been considerable volatility. The quarter ending September 30, 1998 was a
particularly difficult period for U.S. equities, especially smaller
capitalization U.S. stocks, emerging market bonds, and domestic bonds with
perceived credit risk.
Recent dramatic events have included Russia's de facto default on its debt,
extreme pressures on a very large hedge fund, trading losses by major financial
institutions, and disarray in the currency and credit markets. A major change
has taken place in investor perception of risk and in rapid deleveraging of the
global financial system.
Clearly all financial market participants are operating in a more difficult
environment. Standish, Ayer & Wood is devoted to producing superior long-term
returns through very disciplined investment philosophies designed to uncover
value. We remain confident we have the capability to do a superior job by
adhering to our disciplines.
We appreciate the opportunity to serve you and hope you will find the following
information helpful.
Sincerely yours,
/s/ Ted Ladd
Edward H. Ladd
Chairman
2
<PAGE>
STANDISH, AYER & WOOD INVESTMENT TRUST
STANDISH SMALL CAPITALIZATION EQUITY ASSET FUND
Management Discussion and Analysis
Small capitalization stocks began the year on the upswing, but since April have
turned in one of the weakest performance records in recent history. Not only
have small capitalization stocks performed poorly compared to the stocks of
larger companies, in absolute terms small caps have declined precipitously. From
April 1, 1998 through September 30, 1998 the Standish Small Cap Equity Asset
Fund declined 29.05% compared to a decline of 26.81% for the Russell 2000 Growth
Index.
Small cap stocks have underperformed large caps for more than five years, with
some notable sharp rallies as exceptions. In calendar year 1998, while earnings
forecasts have come down in concert with slower expected economic growth, the
stocks have experienced a more extreme correction. Investors have abandoned the
new issues market, raising the bar small companies must jump to raise equity
capital. Mutual fund cash inflows have slowed and in some weeks have been
outflows, offsetting the benefits of a slack IPO market. While these trends may
continue in the current risk-averse markets, we believe that small caps have
very attractive characteristics.
Small cap companies, while not isolated from world events, are primarily
domestic in their operations, can grow earnings more rapidly than large caps,
and are often more flexible and entrepreneurial. It is our opinion that small
caps are underowned, oversold, neglected, and subject to very low expectations.
Over the intermediate term we believe the prospects for small caps are
excellent.
Volatility has been above norms, and months like August make analysis of
performance for the year difficult. Our stock selection made a strong
contribution for most of the year, except for the very weakest periods, when the
impact of absolute size was of overriding importance. Our focus on smaller
companies within the small cap segment of the market has hurt performance during
the past year. Our sector emphasis continues to be technology, healthcare, and
business services. Our investments in technology include software, the Internet,
communications, and media companies. In healthcare we are focused on
biotechnology and service companies. Business services include a wide variety of
industries: transaction processing, broadcasting, publishing, transportation,
and education. We target the highest quality companies, defined by business
position, management focus and intensity, balance sheet strength, and
competitive advantage. We then look for favorable valuation to initiate an
investment position. We are very price sensitive in both investing and profit
taking.
The Standish Small Cap investment team is functioning smoothly. Portfolio
management responsibilities for this fund are performed by me, while research
efforts are led by Drew Beja and Jonathan Stone. We have considerable research
expertise in the key sectors mentioned above, and our team approach ensures that
every investment receives team review. This summer Sarah Griffin joined our team
as our expert in performance attribution, quantitative support, and client
liaison. Sarah has been at Standish in various capacities prior to joining the
Small Cap team. More recently, Michael Fechter has joined Standish and will be
part of the Small Cap team specializing in marketing and client communications.
Michael was at Putnam Investments for seven years where he specialized in client
service.
In closing, it is important to remind you of the volatility of small cap
investments, particularly in the growth part of the small cap market. We attempt
to offset this volatility through diversification, sector concentration limits,
and particular attention to business quality, balance sheet strength, and stock
valuation. Nonetheless, we are typically fully invested and therefore are
broadside to market volatility in the small cap arena. We remain optimistic
about the outlook for small cap stocks despite the recent challenges. We are
very appreciative of your support and thank you for your interest in the
Standish Small Cap Equity Asset Fund.
Sincerely,
/s/ Nicholas S. Battelle
Nicholas S. Battelle
3
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STANDISH, AYER & WOOD INVESTMENT TRUST
STANDISH SMALL CAPITALIZATION EQUITY ASSET FUND
Comparison of Change in Value of $100,000 Investment in
Standish Small Capitalization Equity Asset Fund
and the Russell 2000 Index
[The following table was originally a line graph in the printed materials.]
Standish Small
Capitalization Equity Russell 2000
Asset Fund Growth Index
--------------------- ------------
Inception 4/1/98 100000 100000
4/30/98 101300 100613
5/31/98 93700 93303
6/30/98 92500 94257
7/31/98 86850 86387
8/31/98 66500 66449
9/30/98 70950 73186
4
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Capitalization Equity Asset Fund
Statement of Assets and Liabilities
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets
Investment in Standish Small Capitalization Equity Portfolio ("Portfolio"), at value (Note 1A) $ 6,757,265
Receivable from investment adviser (Note 3) 14,045
Deferred organization cost (Note 1E) 5,042
Other assets 390
------------
Total assets 6,776,742
Liabilities
Payable for Fund shares redeemed $ 38,604
Accrued accounting, custody and transfer agent fees 1,638
Accrued expenses and other liabilities 13,558
------------
Total liabilities 53,800
------------
Net Assets $ 6,722,942
============
Net Assets consist of:
Paid-in capital $ 9,426,700
Accumulated net realized loss (950,192)
Net unrealized depreciation (1,753,566)
------------
Total Net Assets $ 6,722,942
============
Shares of beneficial interest outstanding 473,926
============
Net Asset Value, offering and redemption price per share
(Net Assets/Shares outstanding) $ 14.19
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Capitalization Equity Asset Fund
Statement of Operations
For the period April 1, 1998
(commencement of operations)
to September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income (Note 1B)
Interest income allocated from Portfolio $ 6,915
Dividend income allocated from Portfolio 1,156
Expenses allocated from Portfolio (31,707)
-------------
Total investment income allocated from Portfolio (23,636)
Expenses
Legal and audit services $ 11,000
Administration service fees 10,951
Registration fees 7,475
Accounting, custody and transfer agent fees 6,055
Amortization of organization cost (Note 1E) 562
Insurance expense 562
Miscellaneous 4,000
-----------
Total expenses 40,605
Deduct:
Reimbursement of Fund operating expenses (Note 3) (40,605)
-----------
Net expenses 0
-------------
Net investment loss (23,636)
-------------
Realized and Unrealized Gain (Loss)
Net realized loss allocated from Portfolio on:
Investment security transactions (1,058,650)
Financial futures contracts (34,099)
-----------
Net realized loss (1,092,749)
Change in unrealized appreciation (depreciation) allocated from Portfolio on:
Investment securities (1,743,803)
Financial futures contracts (9,763)
-----------
Change in net unrealized appreciation (depreciation) (1,753,566)
-------------
Net realized and unrealized loss on investments (2,846,315)
-------------
Net Decrease in Net Assets from Operations $ (2,869,951)
=============
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Capitalization Equity Asset Fund
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the period April 1, 1998
(commencement of operations)
to September 30, 1998
-------------------------------
<S> <C>
Increase (decrease) in Net Assets
From Investment Operations
Net investment loss $ (23,636)
Net realized gain (loss) (1,092,749)
Change in net unrealized depreciation (1,753,566)
------------
Net decrease in Net Assets from Investment Operations (2,869,951)
------------
Fund Share (principal) Transactions (Note 6)
Net proceeds from sale of shares 11,042,950
Net asset value of shares issued to shareholders in payment
of distributions declared --
Cost of shares redeemed (1,450,057)
------------
Increase in Net Assets from Fund share transactions 9,592,893
------------
Total Increase in Net Assets 6,722,942
Net Assets
At beginning of period --
------------
At end of period $ 6,722,942
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Capitalization Equity Asset Fund
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the period April 1, 1998
(commencement of operations)
to September 30, 1998 (1)
--------------------------------
<S> <C>
Net Asset Value, Beginning of Period $ 20.00
--------
Investment Operations:
Net investment loss * (0.05)
Net realized and unrealized loss on investments (5.76)
--------
Total from investment operations (5.81)
--------
Net Asset Value, End of Period $ 14.19
========
Total Return (29.05)%
Ratios/Supplemental Data
Expenses (to average daily net assets) * (2) 0.72%+
Net investment loss (to average daily net assets) * (0.53)%+
Net assets, end of period (000's omitted) $ 6,723
</TABLE>
- ---------------------
* For the period April 1, 1998 (commencement of operations) to September 30,
1998, the investment adviser reimbursed the Fund for all of its operating
expenses. If this voluntary reduction had not been taken, the net investment
income per share and the ratios would have been:
Net investment income per share $ (0.13)
Ratios (to average daily net assets):
Expenses (2) 1.64%+
Net investment loss (1.45)%+
(1) Calculated based on average shares outstanding.
(2) Includes the Fund's share of the Standish Small Capitalization Equity
Portfolio's allocated expenses for the period April 1, 1998 (commencement
of operations) to September 30, 1998.
+ Computed on an annualized basis.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Capitalization Equity Asset Fund
Notes to Financial Statements
- --------------------------------------------------------------------------------
(1) Significant Accounting Policies:
Standish, Ayer & Wood Investment Trust (the "Trust") is organized as a
Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as an open-end, management investment
company. Standish Small Capitalization Equity Asset Fund (the "Fund")
is a separate diversified investment series of the Trust.
The Fund invests all of its investable assets in an interest of the
Standish Small Capitalization Equity Portfolio ( the "Portfolio"), a
subtrust of Standish, Ayer & Wood Master Portfolio ( the "Portfolio
Trust"), which is organized as a New York trust, and has the same
investment objective as the Fund. The value of the Fund's investment in
the Portfolio reflects the Fund's proportionate interest in the net
assets of the Portfolio (approximately 4% at September 30, 1998). The
performance of the Fund is directly affected by the performance of the
Portfolio. The financial statements of the Portfolio are included
elsewhere in this report and should be read in conjunction with the
Fund's financial statements.
Shares of the Fund may be purchased by entities ("Account
Administrators") that provide omnibus accounting services for groups of
individuals who beneficially own Fund shares ("Omnibus Accounts").
Omnibus Accounts include pension and retirement plans (such as 401(k)
plans, 457 plans and 403(b) plans), and programs through which personal
and or account maintenance services are provided to groups of
individuals whether or not such individuals invest on a tax-deferred
basis. Individual investors may only purchase Fund shares through their
Omnibus Account Administrators.
The following is a summary of significant accounting policies followed
by the Fund in the preparation of the financial statements. The
preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
A. Investment security valuations
The Fund records its investment in the Portfolio at value. The method
by which the Portfolio values its securities is discussed in Note 1A of
the Portfolio's Notes to Financial Statements, which are included
elsewhere in this report.
B. Securities transactions and income
Securities transactions are recorded as of the trade date. The Fund's
net investment income consists of the Fund's pro rata share of the net
investment income of the Portfolio, less all actual and accrued
expenses of the Fund determined in accordance with generally accepted
accounting principles.
C. Federal taxes
As a qualified regulated investment company under Subchapter M of the
Internal Revenue Code, the Fund is not subject to income taxes to the
extent that it distributes all of its taxable income for its fiscal
year. The Fund elected to defer to its fiscal year ending September 30,
1999 losses of $931,404 recognized during the period from November 1,
1997 to September 30, 1998.
D. Other
All net investment income and realized and unrealized gains and losses
of the Portfolio are allocated pro rata among the respective investors
in the Portfolio.
E. Deferred organizational expenses
Costs associated with the Fund's organization and initial registration
are being amortized, on a straight-line basis, through March, 2003.
9
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Capitalization Equity Asset Fund
Notes to Financial Statements
- --------------------------------------------------------------------------------
(2) Distributions to Shareholders:
The Fund's dividends from short-term and long-term capital gains, if
any, after reduction of capital losses will be declared and distributed
at least annually, as will dividends from net investment income. In
determining the amounts of its dividends, the Fund will take into
account its share of the income, gains or losses, expenses, and any
other tax items of the Portfolio. Dividends from net investment income
and capital gains distributions, if any, are reinvested in additional
shares of the Fund unless a shareholder elects to receive them in cash.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted
accounting principles. Permanent book and tax basis differences
relating to shareholder distributions will result in reclassifications
between paid-in capital, undistributed net investment income and
accumulated net realized gain (loss).
(3) Investment Advisory Fee:
The Fund does not directly pay any investment advisory fees, but
indirectly bears its pro rata share of the compensation paid by the
Portfolio to Standish, Ayer & Wood (SA&W) for such services. See Note 2
of the Portfolio's Notes to Financial Statements which are included
elsewhere in this report.
SA&W has voluntarily agreed to limit the aggregate operating expenses
of the Fund and its pro-rata share of expenses allocated from the
Portfolio (excluding brokerage commissions, taxes and extraordinary
expenses) to 0.99% of the Fund's average daily net assets for the
period July 1, 1998 to September 30, 1998. Prior to July 1, 1998, SA&W
had voluntarily agreed to limit total Fund operating expenses and its
pro rata share of expenses allocated from the Portfolio to 0.74% of the
Fund's average daily net assets. This agreement is voluntary and
temporary and may be discontinued or revised by SA&W at any time.
Pursuant to this agreement, SA&W voluntarily reimbursed the Fund for
$40,605 of operating expenses for the period ended September 30, 1998.
The Fund pays no compensation directly to its trustees who are
affiliated with SA&W or to its officers, all of whom receive
remuneration for their services to the Trust from SA&W. Certain of the
trustees and officers of the Trust are directors or officers of SA&W.
(4) Administration Service Fee:
Pursuant to a service plan, the Fund pays the service fees at an
aggregate annual rate of up to 0.25% of the Fund's average daily net
assets. The service fee is payable for the benefit of the participants
in the Omnibus Accounts that are shareholders in the Fund and is
intended to be compensation to Account Administrators for providing
personal services and/or account maintenance services to participants
in Omnibus Accounts that are beneficial owners of Fund shares .
(5) Investment Transactions:
Increases and decrease in the Fund's investment in the Portfolio for
the period from April 1, 1998 (commencement of operations) to September
30, 1998 aggregated $11,069,510 and $1,442,294, respectively
(6) Shares of Beneficial Interest:
The Declaration of Trust permits the Trust to issue an unlimited number
of full and fractional shares of beneficial interest having a par value
of one cent per share. Transactions in Fund shares were as follows:
For the period April 1, 1998
(commencement of operations)
to September 30, 1998
-----------------------------
Shares sold 561,862
Shares issued to shareholders in
payment of distributions declared --
Shares redeemed (87,936)
=============================
Net increase 473,926
=============================
At September 30, 1998, a profit sharing plan on behalf of plan
participants was the sole shareholder of the Fund.
10
<PAGE>
Report of Independent Accountants
To the Trustees of Standish, Ayer & Wood Investment Trust and the Shareholders
of Standish Small Capitalization Equity Asset Fund:
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Standish, Ayer & Wood Investment Trust: Standish Small Capitalization Equity
Asset Fund (the "Fund"), at September 30, 1998; the result of its operations,
the changes in its net assets and the financial highlights for the period
indicated therein, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (herein referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these finanical statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 18, 1998
11
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Capitalization Equity Portfolio
Schedule of Investments - Year Ended September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQUITIES -- 94.0%
Capital Goods -- 7.0%
AFC Cable Systems, Inc.* 60,100 $ 1,427,375
Aviation Sales Co.* 43,800 1,267,463
Ballantyne Of Omaha, Inc.* 157,500 1,289,531
Eagle USA Airfreight, Inc.* 93,800 1,313,200
Kellstrom Industries, Inc.* 61,900 858,863
Kroll-Ogara Co.* 43,600 1,019,150
Service Experts Inc.* 59,500 1,654,844
Tristar Aerospace Co.* 54,700 526,488
Triumph Group Inc.* 47,300 1,407,175
----------------
10,764,089
----------------
Consumer Stable -- 1.5%
United Natural Foods Inc.* 89,400 2,279,700
----------------
Early Cyclical -- 4.5%
Atlantic Coast Airlines, Inc.* 123,700 2,891,488
Excelsior-Henderson Motorcycle* 298,600 2,202,175
Midwest Express Holdings* 53,800 1,802,300
----------------
6,895,963
----------------
Energy -- 1.0%
Cal Dive International, Inc.* 83,800 1,508,400
----------------
Financial -- 1.8%
First Sierra Financial, Inc.* 108,000 978,750
Indigo Aviation ADR* 141,300 1,218,713
Linc Capital Inc.* 66,600 641,025
----------------
2,838,488
----------------
Growth Cyclical -- 7.7%
Hibbet Sporting Goods Inc.* 65,700 1,646,606
North Face, Inc.* 195,600 2,542,800
PC Connection, Inc.* 183,300 1,878,825
ResortQuest International Inc.* 32,700 288,169
Stein Mart Inc.* 142,900 1,143,200
Steiner Leisure Ltd.* 106,475 1,663,672
Tweeter Home Entertainment* 120,400 1,640,450
Wet Seal, Inc., Class A* 56,200 972,963
----------------
11,776,685
----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Capitalization Equity Portfolio
Schedule of Investments - Year Ended September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Health Care -- 17.1%
Chirex, Inc.* 105,000 $ 1,253,438
CN Bioscience Inc.* 81,700 2,001,650
Coulter Pharmaceutical Inc.* 73,700 1,833,288
Cytyc Corp.* 173,600 1,757,700
Geron Corp.* 147,300 902,213
Guilford Pharmaceuticals Inc.* 99,400 1,391,600
Impath Inc.* 101,900 3,031,525
Inhale Therapeutic Systems* 85,800 2,402,400
Leukosite, Inc.* 146,400 1,098,000
Ligand Pharmaceuticals, Class B* 153,300 1,398,863
Neurogen Corp.* 107,900 1,780,350
Novoste Corp.* 135,100 1,739,413
Pharmaceutical Product Development* 29,000 812,000
Quadramed Corp.* 78,700 1,583,838
Res-Care Inc.* 116,300 2,180,625
Vical Inc.* 103,900 1,142,900
----------------
26,309,803
----------------
Services -- 33.6%
Abacus Direct Corp.* 54,400 2,774,392
Barnett, Inc.* 27,000 229,500
Billing Info Concepts Corp.* 173,000 2,422,000
CCC Information Services Group* 64,200 802,500
Charles River Associates, Inc.* 40,600 964,250
CKS Group, Inc.* 99,600 1,761,675
Computer Task Group, Inc. 46,000 1,348,375
CulturalAccessWorldWide, Inc.* 146,500 668,406
Data Processing Resources Corp.* 70,300 2,056,275
Emmis Broadcasting Corp., Class A* 63,700 2,404,675
F.Y.I. Inc.* 114,100 2,795,450
Gray Communications Systems, Class B 87,700 2,181,538
Hagler Bailly* 74,200 1,446,900
Inspire Insurance Solutions* 63,550 1,501,369
Intelligroup, Inc.* 132,000 2,244,000
Intl Telecomm Data Systems* 65,550 1,900,950
Metro Networks Inc.* 55,000 2,014,375
Metzler Group, Inc.* 91,450 3,132,163
NCO Group Inc.* 81,400 2,263,938
On Assignment Inc.* 75,900 2,808,300
Personnel Group of America, Inc.* 107,100 1,318,669
Rental Service Corp.* 86,200 1,551,600
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Capitalization Equity Portfolio
Schedule of Investments - Year Ended September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Services (continued)
Scandinavian Broadcast Systems Corp.* 264,400 $ 5,618,500
SPR Inc.* 113,400 2,608,200
Ultimate Software Group Inc.* 9,700 92,150
Wilmar Industries Inc.* 129,500 2,751,875
----------------
51,662,025
----------------
Technology -- 19.8%
Applied Micro Circuits Corp.* 64,300 956,463
Aspen Technologies, Inc.* 51,300 1,372,275
ATMI Inc.* 138,600 1,923,075
Best Software, Inc.* 93,700 2,248,800
C-Net Inc.* 20,800 951,600
Datastream Systems, Inc.* 125,700 2,191,894
Davox Corp.* 181,200 1,698,750
Deltek Systems, Inc.* 113,200 2,087,125
DSP Group Inc.* 84,000 1,239,000
Infinium Software, Inc.* 170,500 1,598,438
JDA Software Group Inc.* 123,600 1,707,225
Landmark Systems Corp.* 89,400 726,375
Lecroy Corp.* 88,600 1,196,100
Micrel, Inc.* 25,400 673,100
Parlex Corp.* 96,300 884,756
Pegasystems, Inc.* 71,800 1,103,925
Pervasive Software, Inc.* 208,600 2,268,525
Photronics Inc.* 85,000 1,083,750
SBS Technologies Inc.* 51,900 1,297,500
Semtech Corp.* 77,200 1,437,850
Unitrode Corp.* 169,400 1,799,875
----------------
30,446,401
----------------
TOTAL EQUITIES (COST $162,034,782) 144,481,554
----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Capitalization Equity Portfolio
Schedule of Investments - Year Ended September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS -- 5.9%
U.S. Government Agency -- 0.4%
FHLMC Discount+ 0.000% 12/08/1998 200,000 $ 197,866
FHLB Discount+ 0.000% 12/11/1998 200,000 197,870
FHLB Discount+ 0.000% 12/16/1998 150,000 148,335
FNMA Discount Note+ 0.000% 12/04/1998 100,000 99,063
----------------
Total U.S. Government Agency (Cost $643,303) 643,134
----------------
Repurchase Agreements -- 5.5%
Salomon Smith Barney Inc. Repurchase Agreement, dated 9/30/98, due 10/1/98, with
a maturity value of $761,234 and an effective yield of 4.75%, collateralized by a
U.S. Treasury obligation with a rate of 5.75%, a maturity date of 12/31/98 and a
market value of $776,356. 761,133
Prudential-Bache Repurchase Agreement, dated 9/30/98, due 10/1/98, with a
maturity value of $7,706,048 and an effective yield of 4.75%, collateralized by
U.S. Government Agency obligations with rates ranging from 5.5% to 8.5% with
maturity dates ranging from 12/01/10 to 2/01/31 and an aggregate market value of
$7,859,379. 7,705,031
----------------
Total Repurchase Agreements (Cost $8,466,164) 8,466,164
----------------
TOTAL SHORT-TERM INVESTMENTS (COST $9,109,467) 9,109,298
----------------
TOTAL INVESTMENTS -- 99.9% (COST $171,144,249) $ 153,590,852
Other Assets, Less Liabilities -- 0.1% 205,962
================
NET ASSETS -- 100% $ 153,796,814
================
</TABLE>
Notes to the Schedule of Investments:
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
* Non-income producing security.
+ Denotes all or part of security pledged as collateral to cover margin
requirements on open financial futures contracts (Note 5).
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Small Capitalization Equity Portfolio
Statement of Assets and Liabilities
September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets
Investments, at value (Note 1A) (identified cost, $171,144,249) $ 153,590,852
Cash 281,709
Receivable for investments sold 1,646,205
Interest and dividends receivable 1,154
Deferred organization costs (Note 1E) 38,660
Prepaid expenses 8,686
--------------
Total assets 155,567,266
Liabilities
Payable for investments purchased $ 1,259,785
Payable to Investment Advisor (Note 2) 282,559
Payable for daily variation margin on open financial futures contracts (Note 5) 175,275
Accrued accounting and custody fees 19,419
Accrued trustees' fees and expenses (Note 2) 2,852
Accrued expenses and other liabilities 30,562
------------
Total liabilities 1,770,452
--------------
Net Assets (applicable to investors' beneficial interests) $ 153,796,814
==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Small Capitalization Equity Portfolio
Statement of Operations
Year Ended September 30, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income (Note 1C)
Interest income $ 293,321
Dividend income 100,114
---------------
Total income 393,435
Expenses
Investment advisory fee (Note 2) $ 1,363,260
Accounting and custody fees 195,692
Legal and audit services 38,736
Licensing fees 21,058
Trustees fees and expenses (Note 2) 20,826
Amortization of organization expense (Note 1E) 14,936
Insurance expense 8,337
Miscellaneous 14,208
-------------
Total expenses 1,677,053
---------------
Net investment income (1,283,618)
---------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Investment security transactions 24,396,251
Financial futures contracts (320,775)
-------------
Net realized gain 24,075,476
Change in unrealized appreciation (depreciation)
Investment securities (85,951,770)
Financial futures contracts (231,590)
-------------
Change in net unrealized appreciation (depreciation) (86,183,360)
---------------
Net realized and unrealized loss (62,107,884)
---------------
Net Decrease in Net Assets from Operations $ (63,391,502)
===============
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Small Capitalization Equity Portfolio
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period
May 3, 1996
Nine Months (commencement of
Year Ended Ended operations) to
September 30, 1998 September 30, 1997 December 31, 1996
-------------------- --------------------- ----------------------
<S> <C> <C> <C>
Increase (decrease) in Net Assets
From Investment Operations
Net investment loss $ (1,283,618) $ (953,105) $ (654,065)
Net realized gain 24,075,476 24,823,815 21,512,706
Change in net unrealized appreciation
(depreciation) (86,183,360) 36,079,039 (23,038,475)
-------------- -------------- -------------
Net increase (decrease) in Net Assets
from Investment Operations (63,391,502) 59,949,749 (2,179,834)
-------------- -------------- -------------
Capital Transactions
Assets contributed by Standish Small
Capitalization Equity Fund at
commencement (including unrealized
appreciation of $55,359,029) -- -- 233,108,124
Contributions 39,862,755 23,224,550 39,060,115
Withdrawals (96,838,761) (55,662,397) (23,335,985)
-------------- -------------- -------------
Increase (decrease) in Net Assets
resulting from capital transactions (56,976,006) (32,437,847) 248,832,254
-------------- -------------- -------------
Total Increase (Decrease) in Net Assets (120,367,508) 27,511,902 246,652,420
Net Assets:
At beginning of year 274,164,322 246,652,420 --
-------------- -------------- -------------
At end of year $ 153,796,814 $ 274,164,322 $246,652,420
============== ============== =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Small Capitalization Equity Portfolio
Supplemental Data
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the period
May 3, 1996
(commencement of
Year Ended Nine Months Ended operations) to
September 30, 1998 September 30, 1997 December 31, 1996
--------------------- -------------------- --------------------
<S> <C> <C> <C>
Ratios:
Expenses (to average daily net assets) 0.74% 0.71%+ 0.73%+
Net investment loss (to average daily net assets)* (0.57)% (0.54)%+ (0.43)%+
Portfolio Turnover 107% 70% 76%
Net assets, end of year (000's omitted) $153,797 $ 274,164 $246,652
</TABLE>
- ------------------------------------
+ Computed on an annualized basis.
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Small Capitalization Equity Portfolio
Notes to Financial Statements
- --------------------------------------------------------------------------------
(1) Significant Accounting Policies:
Standish, Ayer & Wood Master Portfolio (the "Portfolio Trust") was
organized as a master trust fund under the laws of the State of New
York on January 18, 1996 and is registered under the Investment Company
Act of 1940, as amended, as an open-end, management investment company.
Standish Small Capitalization Equity Portfolio (the "Portfolio") is a
separate diversified investment series of the Portfolio Trust.
The following is a summary of significant accounting policies followed
by the Portfolio in the preparation of the financial statements. The
preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
A. Investment security valuations
Securities for which quotations are readily available are valued at the
last sale price, or if no sale, at the closing bid price in the
principal market in which such securities are normally traded.
Securities (including restricted securities) for which quotations are
not readily available are valued at their fair value as determined in
good faith under consistently applied procedures under the general
supervision of the Board of Trustees.
Short-term instruments with less than sixty-one days remaining to
maturity when acquired by the Portfolio are valued on an amortized cost
basis. If the Portfolio acquires a short-term instrument with more than
sixty days remaining to its maturity, it is valued at current market
value until the sixtieth day prior to maturity and will then be valued
at amortized cost based upon the value on such date unless the trustees
determine during such sixty-day period that amortized cost does not
represent fair value.
B. Repurchase agreements
It is the policy of the Portfolio to require the custodian bank to take
possession, to have legally segregated in the Federal Reserve Book
Entry System, or to have segregated within the custodian bank's vault,
all securities held as collateral in support of repurchase agreement
investments. Additionally, procedures have been established by the
Portfolio to monitor on a daily basis, the market value of the
repurchase agreement's underlying investments to ensure the existence
of a proper level of collateral.
C. Securities transactions and income
Securities transactions are recorded as of the trade date. Interest
income is determined on the basis of interest accrued. Dividend income
is recorded on the ex-dividend date. Realized gains and losses from
securities sold are recorded on the identified cost basis.
D. Income taxes
The Portfolio is treated as a partnership for federal tax purposes. No
provision is made by the Portfolio for federal or state taxes on any
taxable income of the Portfolio because each investor in the Portfolio
is ultimately responsible for the payment of any taxes. Since some of
the Portfolio's investors are regulated investment companies that
invest all or substantially all of their assets in the Portfolio, the
Portfolio normally must satisfy the source of income and
diversification requirements applicable to regulated investment
companies (under the Internal Revenue Code) in order for its investors
to satisfy them. The Portfolio will allocate at least annually among
its investors each investor's distributive share of the Portfolio's net
investment income, net realized capital gains, and any other items of
income, gain, loss deduction or credit.
20
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Small Capitalization Equity Portfolio
Notes to Financial Statements
- --------------------------------------------------------------------------------
E. Deferred organizational expenses
Costs incurred by the Portfolio in connection with its organization and
initial registration are being amortized, on a straight-line basis,
through April, 2001.
(2) Investment Advisory Fee:
The investment advisory fee paid to Standish, Ayer & Wood, Inc.
("SA&W") for overall investment advisory and administrative services is
paid monthly at the annual rate of 0.60% of the Portfolio's average
daily net assets. The Portfolio Trust pays no compensation directly to
its trustees who are affiliated with SA&W or to its officers, all of
whom receive remuneration for their services to the Portfolio Trust
from SA&W. Certain of the trustees and officers of the Portfolio Trust
are directors or officers of SA&W.
(3) Purchases and Sales of Investments:
Purchases and proceeds from sales of investments, other than short-term
obligations, were as follows:
<TABLE>
<CAPTION>
Year Ended
September 30, 1998
-------------------------------------
Purchases Sales
----------------- ------------------
<S> <C> <C>
U.S. Government Securities................ $ 1,601,959 $ --
================= ==================
Investments (non-U.S. Government
Securities)............................... $ 232,543,213 $ 298,435,425
================= ==================
</TABLE>
(4) Federal Income Tax Basis of Investment Securities:
The cost and unrealized appreciation (depreciation) in value of the
investment securities owned at September 30, 1998, as computed on a
federal income tax basis, were as follows:
Aggregate Cost....................................... $ 171,743,942
==============
Gross unrealized appreciation........................ $ 13,646,848
Gross unrealized depreciation........................ $ (31,799,938)
--------------
Net unrealized appreciation (depreciation)........... $ (18,153,090)
==============
(5) Financial Instruments:
In general, the following instruments are used for hedging purposes as
described below. However, these instruments may also be used to seek to
enhance potential gain in circumstances where hedging is not involved.
The nature, risks and objectives of these investments are set forth
more fully in Parts A and B of the Portfolio Trust's registration
statement.
The Portfolio trades the following financial instruments with
off-balance sheet risk:
21
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Small Capitalization Equity Portfolio
Notes to Financial Statements
- --------------------------------------------------------------------------------
Options
Call and put options give the holder the right to purchase or sell,
respectively, a security or currency at a specified price on or before
a certain date. The Portfolio may use options again to seek to hedge
against risks of market exposure and changes in securities prices and
foreign currencies, as well as to seek to enhance returns. Writing puts
and buying calls tend to increase the Portfolio's exposure to the
underlying instrument. Buying puts and writing calls tend to decrease
the exposure to the underlying instrument, or hedge other portfolio
investments. Options, both held and written by the Portfolio, are
reflected in the accompanying Statement of Assets and Liabilities at
market value. The underlying face amount at value of any open purchased
option is shown in the schedule of investments. This amount reflects
each contracts' exposure to the underlying instrument at period end.
Losses may arise from changes in the value of the underlying
instruments, if there is an illiquid secondary market for the
contracts, or if the counterparties do not perform under the contracts'
terms.
Premiums received from writing options which expire are treated as
realized gains. Premiums received from writing options which are
exercised or are closed are added to or offset against the proceeds or
amount paid on the transaction to determine the realized gain or loss.
Realized gains and losses on purchased options are included in realized
gains and losses on investment securities, except purchased options on
foreign currency which are included in realized gains and losses on
foreign currency transactions. If a put option written by the Portfolio
is exercised, the premium reduces the cost basis of the securities
purchased by the Portfolio. The Portfolio, as a writer of an option,
has no control over whether the underlying securities may be sold
(call) or purchased (put) and as a result bears the market risk of an
unfavorable change in the price of the security underlying the written
option. The Portfolio entered into no such transactions during the year
ended September 30, 1998.
Futures contracts
The Portfolio may enter into financial futures contracts for the
delayed sale or delivery of securities or contracts based on financial
indices at a fixed price on a future date. Pursuant to margin
requirements, the Portfolio deposits either in cash or securities an
amount equal to a certain percentage of the contract amount. Subsequent
payments are made or received by the Portfolio each day, dependent on
the daily fluctuations in the value of the underlying security, and are
recorded for financial statement purposes as unrealized gains or losses
by the Portfolio. There are several risks in connection with the use of
futures contracts as a hedging device. The change in value of futures
contracts primarily corresponds with the value of their underlying
instruments or indices, which may not correlate with changes in value
of the hedged investments. Buying futures tends to increase the
Portfolio's exposure to the underlying instrument, while selling
futures tends to decrease the fund's exposure to the underlying
instrument or hedge other portfolio investments. In addition, there is
the risk that the Portfolio may not be able to enter into a closing
transaction because of an illiquid secondary market. Losses may arise
if there is an illiquid secondary market or if the counterparties do
not perform under the contracts' terms. The Portfolio enters into
financial futures transactions primarily to seek to manage its exposure
to certain markets and to changes in securities prices and foreign
currencies. Gains and losses are realized upon the expiration or
closing of the futures contracts. The Portfolio had the following open
financial futures contracts at September 30, 1998.
<TABLE>
<CAPTION>
Underlying
Face Amount at Unrealized
Contract Position Expiration Date value Depreciation
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mid Cap 400 (57 contracts) Long 12/18/98 $ 8,869,200 $(230,370)
=========
</TABLE>
At September 30, 1998, the Portfolio had segregated sufficient cash
and/or securities to cover margin requirements on open futures
contracts.
22
<PAGE>
Independent Auditor's Report
To the Trustees of Standish, Ayer & Wood Master Portfolio and the
Investors of Standish Small Capitalization Equity Portfolio:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments and the related statements of
operations and of changes in net assets and the supplementary data
present fairly, in all material respects, the financial position of
Standish Small Capitalization Equity Portfolio at September 30, 1998,
the results of its operations, the changes in its net assets and the
supplementary data for each of the periods indicated therein, in
conformity with generally accepted accounting principles. These
financial statements and supplementary data (herein referred to as
"financial statements") are the responsibility of the Portfolio's
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of
these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at September 30, 1998, by correspondence
with the custodian and brokers, provide a reasonable basis for the
opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 18, 1998
23
<PAGE>
[LOGO] STANDISH FUNDS(R)
One Financial Center
Boston, MA 02111-2662
(800) 729-0066
www.standishfunds.com
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from Standish,
Ayer & Wood Investment Trust form N-SAR for the period ended September 30, 1998
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0001012705
<NAME> Standish Small Capitalization Equity Portfolio
<SERIES>
<NUMBER> 2
<NAME> Standish Small Capitalization Equity Portfolio
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 171,144,249
<INVESTMENTS-AT-VALUE> 153,590,852
<RECEIVABLES> 1,647,359
<ASSETS-OTHER> 281,709
<OTHER-ITEMS-ASSETS> 47,346
<TOTAL-ASSETS> 155,567,266
<PAYABLE-FOR-SECURITIES> 1,259,785
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 510,667
<TOTAL-LIABILITIES> 1,770,452
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 226,939,604
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (73,142,790)
<NET-ASSETS> 153,796,814
<DIVIDEND-INCOME> 100,114
<INTEREST-INCOME> 293,321
<OTHER-INCOME> 0
<EXPENSES-NET> 1,677,053
<NET-INVESTMENT-INCOME> (1,283,618)
<REALIZED-GAINS-CURRENT> 24,075,476
<APPREC-INCREASE-CURRENT> (86,183,360)
<NET-CHANGE-FROM-OPS> (63,391,502)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (120,367,508)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,363,260
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,677,053
<AVERAGE-NET-ASSETS> 226,880,316
<PER-SHARE-NAV-BEGIN> 0.00
<PER-SHARE-NII> 0.00
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 0.00
<EXPENSE-RATIO> 0.74
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from Standish,
Ayer & Wood Investment Trust form N-SAR for the period ended September 30, 1998
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0001012705
<NAME> Standish Small Capitalization Equity Asset Fund
<SERIES>
<NUMBER> 20
<NAME> Standish Small Capitalization Equity Asset Fund
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 6,757,265
<RECEIVABLES> 14,045
<ASSETS-OTHER> 5,432
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 6,776,742
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 53,800
<TOTAL-LIABILITIES> 53,800
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,426,700
<SHARES-COMMON-STOCK> 473,926
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (950,192)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,753,566)
<NET-ASSETS> 6,722,942
<DIVIDEND-INCOME> 1,156
<INTEREST-INCOME> 6,915
<OTHER-INCOME> (31,707)
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> (23,636)
<REALIZED-GAINS-CURRENT> (1,092,749)
<APPREC-INCREASE-CURRENT> (1,753,566)
<NET-CHANGE-FROM-OPS> (2,869,951)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 13,544,352
<PER-SHARE-NAV-BEGIN> 20.00
<PER-SHARE-NII> (0.05)
<PER-SHARE-GAIN-APPREC> (5.76)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 14.19
<EXPENSE-RATIO> 0.72
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
