Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Fund
Financial Statements for the Year Ended
December 31, 1997
[STANDISH LOGO]
<PAGE>
Standish, Ayer & Wood Investment Trust
February 23, 1998
Dear Standish, Ayer & Wood Investment Trust Shareholder:
I am writing to provide you with a review of developments at Standish, Ayer &
Wood as they relate to the activities of the Investment Trust.
Investment returns were generally quite favorable during 1997. U.S. large
capitalization stocks as measured by the Standard & Poor's 500 Index registered
a return in 1997 of more than 33%, bringing the five-year annual average returns
for that Index to over 20%. During the last year, both U.S. bonds as reflected
in the Lehman Aggregate Index and hedged international bonds as reported by the
J.P. Morgan Non-U.S.Hedged Index recorded returns in the vicinity of 10-11%. It
has generally been an exceedingly favorable period for investors.
Standish, Ayer & Wood has also had a successful year. Our assets under
management grew from $30.6 billion at the beginning of the year to about $39.3
billion at the end of 1997. This growth reflected new assets under management,
market appreciation, and the absence of any significant turnover of existing
clients. The Standish Funds grew from $4.2 billion to $5.7 billion during the
year. We were particularly pleased that 75% of the mutual fund purchases during
the year represented additions from our existing clients.
We have also grown significantly as an enterprise. At the end of 1997, our
organization had 232 employees versus 213 at the beginning of the year. Our 82
investment officers have average experience of 16 years. Of the 82 officers, 46
hold advanced degrees (typically an MBA) and 55 have some advanced professional
accreditation (virtually all Chartered Financial Analysts).
While the corporate structure remains unchanged, a number of important
developments among new directors took place during the year. In March 1997, Jim
Sweeney elected to take early retirement. In November, Tom Sorbo joined Standish
as a shareholder/director in order to head up our marketing and sales
activities. Tom had previously served with distinction at Travelers and Stein,
Roe & Farnham.
Four other changes in our shareholders and directors were effective at the end
of 1997. Walter Cabot reached the age at which he must step down as a
shareholder, but we are pleased that he will continue as our Senior Advisor. We
elected three new shareholder/directors, namely Chuck Cook of our international
fixed income team, Joe Corrado as director of equity research, and Mike
Thompson, one of the senior members of our insurance company investment
management effort. We also elected six new associate directors, eighteen new
vice presidents, and twelve new assistant vice presidents.
During 1997 we introduced a number of new products including "diversified
income" portfolios that combine higher yielding domestic bonds, emerging market
bonds, and higher grade international bonds. By the end of the year, we managed
a number of separate accounts as well as the Standish Diversified Income Fund
with assets of about $27 million. We have also developed a growth equity
strategy and a global small cap discipline to complement the highly successful
start up on our international small cap style. Some of the disciplines we
introduced in 1996, such as duration neutral bonds and Small Cap Equity Fund II,
continue to be successful.
1
<PAGE>
As we look ahead, there are ample numbers of challenges for investors and
investment managers. We believe that we have a good understanding of what has
produced our past business and investment success and a clear vision of our
future. We consider that we have a set of competitive advantages that includes:
o A long history of stability of ownership, personnel, investment philosophy,
and clientele.
o Critical mass to enable us to provide risk control, compliance, technology,
and deep investment research.
o An exclusive focus on investment management and a dedication to serving our
existing clients.
o A team effort which ensures our clients are receiving not just the work of
one individual but the benefits of Standish as an organization.
o Well-defined and disciplined investment philosophies which have
historically added reasonably consistent increments of return.
o A dedication to in-depth communication with our clients.
We remain confident that we have the people, resources, investment technology,
and organizational stability to succeed. We are working hard to fulfill your
expectations in the years ahead, and we are optimistic that we can achieve our
mutual objectives.
Sincerely yours,
/s/ Ted Ladd
Edward H. Ladd
Chairman
Standish, Ayer & Wood, Inc.
2
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Fund
Management Discussion
Global bond markets posted high, positive returns on average during the year
with the J.P. Morgan Hedged Global Government Bond index returning 10.87%. We
are pleased to report that for the year, the Standish Global Fixed Income Fund
returned 11.68%, 81 basis points more than our benchmark index.
Economic conditions varied significantly across markets in 1997. The U.S.
economy was robust during its seventh consecutive year of expansion, growth in
Europe gained momentum from a very weak base, and the Japanese economy
stagnated. However, inflation performance across countries was uniformly good
and bond yields fell as a result. Expectations that the Asian currency crisis
would reduce global growth also benefited bonds in the second half of the year
and sparked a flight into the highest quality securities, U.S. Treasuries.
The U.K. market produced the highest returns in currency hedged terms during the
year. Despite relatively high growth in the U.K., bonds reacted positively to
the decision of the new Labour government to grant the central bank greater
autonomy. The Italian market also performed well: declining inflation and
dramatic improvement in the budget deficit improved Italy's chances of being
included in the first round of European Monetary Union. Japan, Australia,
Canada, and Denmark also produced better returns than the index during the year.
Japanese bond yields declined to the lowest level of any market this century in
response to their ongoing economic malaise. Core European markets and the U.S.
underperformed the index for the year. Despite excellent inflation performance,
relatively strong growth and expectations of higher interest rates dampened the
enthusiasm for bonds in these markets. The relative strength of the U.S. economy
and a flight to quality due to the Asian crisis, caused the U.S. dollar to
appreciate more than 12% versus the currencies in the index.
During the year the Fund benefited from our overweight positions in the U.K. and
Australia, duration modestly longer than the index, and our use of currency
options to increase our exposure to U.S. dollars, particularly relative to the
Japanese yen. Overweight positioins in Germany and New Zealand detracted from
performance during the year as did our underweight position in Japan. We had a
small position in emerging market securities that underperformed late in the
year. However, we successfully hedged a significant portion of our risk in those
markets by establishing a modest short position in the Korean won.
The fund is a feeder fund in the master-feeder fund structure and does not
invest directly in securities. Instead, the Fund invests its assets in a master
fund that has the same investment objective and policies as the Fund. The
foregoing Management's Discussion applies to investments by the master feeder.
We appreciate your support during 1997. We are working diligently in the new
year to achieve our goal of consistent and superior risk-adjusted returns. We
welcome your comments and suggestions and look forward to serving you in 1998.
Sincerely,
/s/ William C. Cook II /s/ Richard S. Wood
W. Charles Cook Richard S. Wood
3
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Fund
Comparison of Change in Value of $100,000 Investment in Standish
Global Fixed Income Fund and J.P. Morgan Global Hedged Index
- ---------------------------------------
Average Annual Total Return
Since
Inception
1 Year 3 Year 1/3/94
- ------ ------ ------
11.68% 14.25% 8.50%
- ---------------------------------------
[GRAPHIC OMITTED]
[The following information was represented by a line graph in the printed
materials.]
Standish J.P. Morgan
Global Fixed Global Hedged
Income Fund Index
Inception 1/3/94 100000 100000
1/31/94 101350 100330
2/28/94 97950 98203
3/31/94 95200 96828
4/30/94 94237 96112
5/31/94 92971 95487
6/30/94 91805 94895
7/30/94 93228 95929
8/30/94 92313 95459
9/30/94 91602 95001
10/31/94 92212 95181
11/30/94 92822 95829
12/31/94 92923 95953
1/31/95 93801 97268
2/28/95 94731 98863
3/31/95 95661 100297
4/30/95 97598 101741
5/31/95 101263 105251
6/30/95 100635 105377
7/31/95 102014 106083
8/31/95 103447 107080
9/30/95 104454 108472
10/31/95 106013 109807
11/30/95 108323 111904
12/31/95 109774 113124
1/31/96 111348 114266
2/29/96 109718 112632
3/31/96 109830 112869
4/30/96 111026 113478
5/31/96 111197 113898
6/30/96 112677 114980
7/31/96 113023 115624
8/31/96 114465 116549
9/30/96 118270 118764
10/31/96 120839 120889
11/30/96 124166 123150
12/31/96 124076 122854
1/31/97 125681 123899
2/28/97 126793 124456
3/31/97 125307 123585
4/30/97 127058 125093
5/31/97 128433 125931
6/30/97 130309 127795
7/31/97 133031 130517
8/31/97 132398 130060
9/30/97 135246 132245
10/31/97 135886 133700
11/30/97 136847 134555
12/31/97 138574 136210
4
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Fund
Statement of Assets and Liabilities
December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets
Investment in Standish Global Fixed Income Portfolio,
("Portfolio"), at value (Note 1A) $262,553,031
Receivable for Fund shares sold 662,928
Receivable from investment adviser (Note 3) 11,486
Prepaid expenses 11,802
Deferred organization costs (Note 1D) 2,259
-------------
Total assets 263,241,506
Liabilities
Distributions payable $6,975,626
Payable for Fund shares redeemed 469,845
Accrued trustees' fees (Note 3) 419
Accrued accounting and transfer agent fees 4,644
Accrued expenses and other liabilities 28,549
----------
Total liabilities 7,479,083
-------------
Net Assets $255,762,423
=============
Net Assets consist of:
Paid-in capital $249,924,233
Accumulated net realized gain 1,536,278
Distributions in excess of net investment income (667,896)
Net unrealized appreciation 4,969,808
-------------
Total Net Assets $255,762,423
=============
Shares of beneficial interest outstanding 12,540,458
=============
Net asset value, offering and redemption price per share
(Net assets/Shares outstanding) $ 20.39
=============
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Fund
Statement of Operations
Year Ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income (Note 1B)
Interest income allocated from Portfolio $14,121,346
Dividend income allocated from Portfolio (net of withholding
taxes, $17,682) 75,945
Expenses allocated from Portfolio (1,226,099)
-----------
Net investment income allocated from Portfolio 12,971,192
Expenses
Registration fees $ 64,122
Accounting and transfer agent fees 25,884
Legal and audit services 3,889
Amortization of organization expense (Note 1D) 2,256
Trustees fees (Note 3) 131
Miscellaneous 2,339
-----------
Total expenses 98,621
Deduct:
Reimbursement of Fund operating expenses (Note 3) (11,486)
------------
Net expenses 87,135
-----------
Net investment income 12,884,057
-----------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) allocated from Portfolio on:
Investment security transactions $(1,060,222)
Financial futures contracts 25,509
Written options transactions 708,516
Foreign currency transactions and forward foreign currency
exchange contracts 10,858,362
Interest rate swap contracts 14,826
-----------
Net realized gain 10,546,991
Change in unrealized appreciation (depreciation) allocated
from Portfolio on:
Investment securities (7,238,843)
Financial futures contracts 139,391
Written options (403,161)
Foreign currency and forward foreign currency exchange
contracts 6,370,158
Interest rate swap contracts (4,236)
------------
Change in net unrealized appreciation (depreciation) (1,136,691)
-----------
Net realized and unrealized gain on investments 9,410,300
-----------
Net increase in net assets resulting from operations $22,294,357
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Fund
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, December 31,
1997 1996
---------------- ------------
<S> <C> <C>
Increase (decrease) in Net Assets
From operations
Net investment income $ 12,884,057 $ 10,803,956
Net realized gain 10,546,991 7,333,996
Change in net unrealized appreciation (depreciation) (1,136,691) 825,965
------------- -------------
Net increase in net assets from operations 22,294,357 18,963,917
------------- -------------
Distributions to Shareholders
From net investment income (22,206,015) (14,538,791)
From net realized gain (226,916) --
------------- -------------
Total distributions to shareholders (22,432,931) (14,538,791)
------------- -------------
Fund share (principal) Transactions (Note 5)
Net proceeds from sale of shares 112,813,437 20,121,710
Net asset value of shares issued to shareholders in payment
of distributions declared 11,302,354 7,659,510
Cost of shares redeemed (23,945,357) (14,374,805)
------------- -------------
Increase in net assets from Fund share transactions 100,170,434 13,406,415
------------- -------------
Net increase in net assets 100,031,860 17,831,541
Net Assets
At beginning of year 155,730,563 137,899,022
------------- -------------
At end of year (including distributions in excess of net
investment income of $667,896 and undistributed net
investment income of $364,160, respectively) $ 255,762,423 $ 155,730,563
============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Fund
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
---------------------------------------------------
1997(1) 1996(1) 1995 1994(2)
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 20.09 $ 19.53 $ 17.99 $ 20.00
-------- -------- -------- --------
Income from investment operations:
Net investment income * 1.34 1.42 1.59 1.29
Net realized and unrealized gain (loss) on
investments 0.96 1.05 1.60 (2.70)
-------- -------- -------- --------
Total from investment operations 2.30 2.47 3.19 (1.41)
-------- -------- -------- --------
Less distributions to shareholders:
From net investment income (1.98) (1.91) (1.65) --
From net realized gain on investments (0.02) -- -- --
From tax return of capital -- -- -- (0.60)
-------- -------- -------- --------
Total distributions to shareholders (2.00) (1.91) (1.65) (0.60)
-------- -------- -------- --------
Net asset value, end of period $ 20.39 $ 20.09 $ 19.53 $ 17.99
======== ======== ======== ========
Total Return 11.68% 13.03% 18.13% (7.06)%
Ratios (to average daily net assets)
/Supplemental Data:
Net assets, end of period (000 omitted) $255,762 $155,731 $137,889 $135,232
Expenses * (3) 0.65% 0.65% 0.62% 0.65%+
Net investment income * 6.42% 7.11% 7.69% 7.73%+
Portfolio turnover (4) -- 73% 163% 140%
<CAPTION>
- ----------
* The investment adviser did not impose a portion of its investment advisory fee
and reimbursed the Fund for a portion of its operating expenses for the years
ended December 31, 1997 and December 31, 1994, respectively. If these
voluntary actions had not been taken, the net investment income per share and
the ratios would have been:
<S> <C> <C> <C> <C>
Net investment income per share $ 1.33 -- -- $ 1.27
Ratios (to average daily net assets):
Expenses (3) 0.66% -- -- 0.73%+
Net investment income 6.41% -- -- 7.65%+
</TABLE>
+ Computed on an annualized basis
(1) Calculated based on average shares outstanding.
(2) For the period from January 3, 1994 (start of business) to December 31,
1994.
(3) Includes the Fund's shares of Standish Global Fixed Income Portfolio's
allocated expenses for the year ended December 31, 1997 and for the period
from May 3, 1996 to December 31, 1996.
(4) Portfolio turnover represents the rate of portfolio activity for the
period while the Fund invested directly in securities, including the period
from January 1, 1996 through May 2, 1996. The portfolio turnover rates for
the period since the Fund transferred substantially all of its investable
assets to the Portfolio is shown in the Portfolio's financial statements
which are included elsewhere in this report.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income 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 Global Fixed Income Fund (the "Fund") is a separate
non-diversified investment series of the Trust.
The Fund invests all of its investable assets in an interest of Standish
Global Fixed Income 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
100% at December 31, 1997). 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.
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. Currently,
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. The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange
rates on investments from the fluctuations arising from changes in
market prices of securities held. Such fluctuations are included with
the net realized and unrealized gain or loss from investments.
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.
D. Deferred organization expense
Costs incurred by the Fund in connection with its organization and
initial registration are being amortized on a straight-line basis
through December, 1998.
E. Other
All net investment income and realized and unrealized gains and losses
of the Portfolio are allocated pro rata among all of the investors in
the Portfolio.
9
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Fund
Notes to Financial Statements
- --------------------------------------------------------------------------------
(2) Distributions to Shareholders:
Dividends from net investment income will be declared and distributed
quarterly. 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. 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. Distributions to
shareholders are recorded on the ex-dividend date. Income and capital
gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments
for foreign currency, forward foreign currency exchange contracts,
option and financial futures transactions. 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 International Management Company, L.P. ("SIMCO")
for such services. See Note 2 of the Portfolio's Notes to Financial
Statements which are included elsewhere in this report. For the year
ended December 31, 1997, SIMCO voluntarily agreed to limit total annual
operating expenses of the Fund and Portfolio (excluding brokerage
commissions, taxes and extraordinary expenses) to 0.65% of the Fund's
average daily net assets. Pursuant to this agreement, SIMCO voluntarily
reimbursed the Fund for $11,486 of operating expenses for the year ended
December 31, 1997. The Trust pays no compensation directly to its
trustees who are affiliated with SIMCO or to its officers, all of whom
receive remuneration for their services to the Trust from the SIMCO.
Certain of the trustees and officers of the Trust are limited partners
or officers of SIMCO.
(4) Investment Transactions:
Increases and decreases in the Fund's investment in the Portfolio for
the year ended December 31, 1997, aggregated $112,195,968 and
$31,838,814, respectively.
(5) Shares of Beneficial Interest:
The Declaration of Trust permits the trustees 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:
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, December 31,
1997 1996
---------------- ---------------
<S> <C> <C>
Shares sold............................... 5,385,323 1,015,265
Shares issued to shareholders in
payment of distributions declared...... 552,287 384,287
Shares redeemed........................... (1,149,790) (706,939)
---------- --------
Net increase.............................. 4,787,820 692,613
========== ========
At December 31, 1997, three shareholders were record owners of
approximately 31%, 13% and 11%, respectively, of the Fund's outstanding
shares.
</TABLE>
10
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Fund
- --------------------------------------------------------------------------------
Supplemental Tax Information (Unaudited)
The Fund paid distributions of $0.0187 from long term capital gains
during the year ended December 31, 1997. Pursuant to section 852 of the
Internal Revenue Code, the Fund designates $226,916 as capital gain
dividends for the year ended December 31, 1997. All of this amount
represents a 20% tax rate gain distribution.
11
<PAGE>
Report of Independent Accountants
To the Trustees of Standish, Ayer & Wood Investment Trust and the Shareholders
of Standish Global Fixed Income Fund:
We have audited the accompanying statement of assets and liabilities of
Standish, Ayer & Wood Investment Trust: Standish Global Fixed Income Fund (the
"Fund"), as of December 31, 1997, and the related statement of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the
periods stated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1997 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Standish, Ayer & Wood Investment Trust: Standish Global Fixed Income Fund as of
December 31, 1997, 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 periods stated therein, in conformity
with generally accepted accounting principles.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
February 19, 1998
12
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Portfolio
Schedule of Investments - December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (1) (Note 1A)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BONDS AND NOTES -- 80.2%
Asset Backed -- 2.4%
Advanta Mortgage Trust 97-4 M1 7.040% 01/25/2029 1,300,000 $ 1,304,875
GMAC Mortgage Corp. 1996-C1 7.860% 11/15/2006 1,000,000 956,250
IMC Home Equity 1997-7 A8 6.650% 02/20/2029 925,000 929,770
Residential Funding 97-hs5 M1 7.010% 05/25/2027 900,000 901,969
The Money Store Home Equity 1995-C A3 6.550% 09/15/2021 500,000 500,781
The Money Store Home Equity 1996-B A5 7.180% 02/15/2015 525,000 529,040
UCFC Home Equity Loan Trust 1996 BA-1 6.500% 04/15/2016 500,000 500,625
World Omni Auto Lease 7.300% 06/25/2003 750,000 763,945
--------------
Total Asset Backed (Cost $6,293,120) 6,387,255
--------------
Corporate -- 13.0%
Basic Industry -- 0.7%
Lilly Industries Inc. Notes 144A 7.750% 12/01/2007 550,000 557,513
USA Waste Services 6.500% 12/15/2002 1,200,000 1,198,440
--------------
1,755,953
--------------
Capital Goods -- 0.2%
Kaufman & Broad Home Corp.+ 7.750% 10/15/2004 500,000 495,625
--------------
Consumer Stable -- 0.6%
Revlon Worldwide+ 0.000% 03/15/2001 800,000 548,000
Southland Corp.+ 5.000% 12/15/2003 500,000 430,000
Stop & Shop Companies+ 9.750% 02/01/2002 500,000 556,877
--------------
1,534,877
--------------
Financial -- 6.5%
Aames Financial Corp.+ 9.125% 11/01/2003 250,000 243,750
Advanta Capital Trust I+ 8.990% 12/17/2026 1,250,000 1,139,792
Bank United Corp.+ 8.875% 05/01/2007 775,000 831,188
Centura Capital Trust 8.845% 06/01/2027 725,000 796,501
Chase Credit Card Master Trust 6.777% 05/15/2007 900,000 901,683
Compass Trust Capital+ 8.230% 01/15/2027 225,000 243,743
Conseco Finance Trust+ 8.796% 04/01/2027 250,000 280,353
Dime Bancorp Capital Trust+ 9.330% 05/06/2027 225,000 254,511
First Nationwide+ 9.125% 01/15/2003 500,000 525,000
First Nationwide Holdings+ 10.625% 10/01/2003 1,350,000 1,508,625
First Tennessee Notes+ 8.070% 01/06/2027 550,000 586,179
General Motors Acceptance Corp. 6.700% 04/30/2001 1,000,000 1,013,140
Goldman Sachs, Inc. Group L.P. 144A 6.200% 02/15/2001 1,000,000 996,580
Imperial Credit Capital Trust+ 9.980% 12/31/2026 375,000 426,256
Liberty Mutual Insurance Co. 144A 7.697% 10/15/2027 850,000 893,597
MMI Capital Trust Notes 144A 7.625% 12/15/2027 1,300,000 1,302,269
PNC Financial Capital 144A 8.315% 05/15/2027 250,000 270,848
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Portfolio
Schedule of Investments - December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (1) (Note 1A)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Financial (continued)
Providian 9.525% 02/01/2027 825,000 $ 908,812
Salomon Brothers, Inc.+ 7.250% 05/01/2001 500,000 513,160
Sovereign Capital Trust 9.000% 04/01/2027 600,000 665,976
Summit Bancorp Capital Trust I+ 8.400% 03/15/2027 500,000 546,590
Tig Holdings Capital 144A 8.597% 01/15/2027 250,000 269,278
Trizec Finance+ 10.875% 10/15/2005 335,000 375,619
United Companies Financial Corp.+ 9.350% 11/01/1999 1,000,000 1,036,470
United Companies Financial Corp.+ 8.375% 07/01/2005 425,000 410,299
--------------
16,940,219
--------------
Health Care -- 0.5%
Sun Healthcare Group Inc. 9.500% 07/01/2007 500,000 512,500
Tenet Healthcare Corp.+ 8.625% 12/01/2003 525,000 547,969
Tenet Healthcare Corp.+ 8.000% 01/15/2005 250,000 254,375
--------------
1,314,844
--------------
Media -- 1.6%
Century Communications+ 9.500% 08/15/2000 500,000 519,375
Chancellor Media 144A Notes 8.125% 12/15/2007 1,200,000 1,173,000
Sinclair Broadcast Group 8.750% 12/15/2007 750,000 746,250
Viacom, Inc.+ 7.750% 06/01/2005 575,000 584,827
Viacom, Inc.+ 7.625% 01/15/2016 225,000 223,448
Westinghouse Credit Corp.+ 8.875% 06/14/2014 975,000 1,083,050
--------------
4,329,950
--------------
Real Estate -- 2.3%
Crescent Real Estate, REIT 7.125% 09/15/2007 900,000 920,817
Criimi Mae Inc. Notes+ 9.125% 12/01/2002 1,075,000 1,077,688
Equity Residential Property
Operating LP 144A, REIT 8.500% 05/15/1999 500,000 514,015
Simon Debartolo Group LP+ 6.750% 07/15/2004 925,000 931,605
Simon Debartolo Group LP+ 6.875% 10/27/2005 425,000 427,359
Taubman Realty Group, REIT+ 8.000% 06/15/1999 1,000,000 1,022,400
Wellsford, REIT+ 9.375% 02/01/2002 1,000,000 1,099,920
--------------
5,993,804
--------------
Services -- 0.3%
Enterprise Corp. 7.000% 06/15/2000 500,000 509,980
Stage Stores, Inc. 8.500% 07/15/2005 400,000 407,000
--------------
916,980
--------------
Technology -- 0.3%
Paxson Communication+ 11.625% 10/01/2002 750,000 804,375
--------------
Total Corporate (Cost $33,236,729) 34,086,627
--------------
Government/Other -- 49.3%
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Portfolio
Schedule of Investments - December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (1) (Note 1A)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Argentina -- 1.2%
Bonos DEL Tesoro 8.750% 05/09/2002 1,700,000 $ 1,610,750
City of Buenos Aires 10.500% 05/28/2004 700,000 605,500
Cointel 10.375% 08/01/2004 1,000,000 847,500
--------------
3,063,750
--------------
Australia -- 5.0%
Australian Government 9.000% 09/15/2004 900,000 685,641
Australian Government 8.750% 08/15/2008 5,925,000 4,646,270
Australian Government 10.000% 10/15/2002 3,600,000 2,760,399
Australian Government 9.500% 08/15/2003 3,020,000 2,311,928
FNMA Global Bond+ 6.500% 07/10/2002 2,625,000 1,751,816
News America Holdings+ 8.625% 02/07/2014 1,650,000 1,110,896
--------------
13,266,950
--------------
Denmark -- 3.0%
Denmark Bullet 7.000% 11/15/2007 15,225,000 2,443,735
Denmark Nykredit 11.000% 10/01/2017 8,000 1,285
Denmark Nykredit 7.000% 10/01/2026 6,357,000 946,659
Denmark Realkredit 7.000% 10/01/2026 2,463,000 366,780
Kingdom of Denmark 6.000% 12/10/1999 14,600,000 2,188,881
Kingdom of Denmark 8.000% 11/15/2001 11,400,000 1,838,779
--------------
7,786,119
--------------
Finland -- 0.6%
Government of Finland 10.000% 09/15/2001 7,000,000 1,507,059
--------------
Germany -- 9.8%
Baden Wurttemburg+ 6.200% 11/22/2013 2,000,000 1,169,647
Deutschland Republic 7.250% 10/21/2002 4,745,000 2,906,583
Deutschland Republic 6.500% 07/15/2003 4,000,000 2,383,050
Deutschland Republic 6.000% 01/04/2007 13,275,000 7,733,045
Deutschland Republic 6.500% 07/04/2027 3,700,000 2,221,193
Die Bundrep Deutschland Dm1000+ 8.250% 09/20/2001 3,570,000 2,223,557
Federal Republic of Germany 8.000% 07/22/2002 550,000 345,042
Federal Republic of Germany 6.875% 05/12/2005 3,900,000 2,387,888
German Unity Fund 8.500% 02/20/2001 1,550,000 958,255
German Unity Fund 8.000% 01/21/2002 3,000,000 1,864,698
United Mexican States 10.375% 01/29/2003 2,350,000 1,470,220
--------------
25,663,178
--------------
Italy -- 0.3%
Deutsche Finance Notes 0.000% 01/20/2032 920,000,000 59,489
Deutsche Finance Notes 0.000% 10/15/2026 1,945,000,000 175,888
Government of Italy (Strip) 0.000% 03/07/2005 351,500 262,285
Government of Italy (Strip) 0.000% 03/07/2010 222,000 117,417
Morgan Guaranty Notes 0.000% 01/21/2027 1,835,000,000 162,518
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Portfolio
Schedule of Investments - December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (1) (Note 1A)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Italy (continued)
--------------
777,597
--------------
Jamaica -- 0.4%
Jamaica Government 144A Notes 9.625% 07/02/2002 1,000,000 $ 945,000
--------------
Japan -- 3.7%
Austria Republic+ 6.250% 10/16/2003 170,000,000 1,642,682
European Investment Bank 6.625% 03/15/2000 300,000,000 2,594,943
Government of Italy+ 5.125% 07/29/2003 190,000,000 1,733,295
Kingdom of Spain+ 5.750% 03/23/2002 428,000,000 3,893,652
--------------
9,864,572
--------------
Mexico -- 0.2%
Gruma SA 144A Notes 7.625% 10/15/2007 525,000 514,484
--------------
New Zealand -- 4.4%
Fernz Capital+ 9.800% 04/15/2002 4,100,000 2,450,061
Fletcher Challenge 14.500% 09/30/2000 500,000 326,755
Fletcher Challenge 10.000% 04/30/2005 1,000,000 616,752
Fletcher Challenge+ 11.250% 12/15/2002 1,900,000 1,202,685
FNMA Global+ 6.750% 10/29/2007 5,000,000 1,453,749
FNMA Global Bond+ 7.000% 09/26/2000 3,250,000 1,845,273
Government Property Services+ 7.250% 03/15/1999 2,000,000 1,138,645
International Bank Recon &
Dev World Bank 0.000% 08/20/2007 4,260,000 1,237,901
New Zealand Government 7.000% 07/15/2009 900,000 522,848
New Zealand Telecom 0.000% 07/15/1999 1,700,000 874,263
--------------
11,668,932
--------------
Norway -- 0.3%
Vital Forsikring+ 7.850% 09/22/2003 6,000,000 880,682
--------------
Sweden -- 3.0%
Kingdom of Sweden 13.000% 06/15/2001 6,300,000 975,594
Sweden Government Bond 6.500% 10/25/2006 23,000,000 3,005,931
Swedish Government #1037 8.000% 08/15/2007 27,600,000 3,983,231
--------------
7,964,756
--------------
United Kingdom -- 14.5%
Alliance and Leicester Building
Society+ 8.750% 12/07/2006 1,200,000 2,157,225
Bank of Greece 10.750% 09/06/2010 1,049,700 2,174,637
Birmingham Midshires Building
Society+ 9.125% 01/05/2006 750,000 1,366,756
CSW Investments+ 8.875% 09/27/2006 2,200,000 3,934,121
Deutsche Bank 0.000% 02/28/2001 410,000 544,047
FNMA Global Bond+ 6.875% 06/07/2002 400,000 659,281
GTD Export Finance Corp 0.000% 09/29/2000 940,000 1,282,568
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Portfolio
Schedule of Investments - December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (1) (Note 1A)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United Kingdom (continued)
Inco Ltd.+ 15.750% 07/15/2006 200,000 $ 493,491
Northern Rock Building Society+ 9.375% 10/17/2021 1,950,000 3,880,318
P & O Steam Navigation 11.500% 07/03/2014 900,000 2,030,257
Stagecoach Holdings PLC 7.625% 10/31/2007 1,150,000 1,847,687
UK Treasury 9.000% 07/12/2011 725,000 1,478,714
UK Treasury+ 8.500% 12/07/2005 430,000 798,846
UK Treasury+ 8.000% 12/07/2000 1,685,000 2,864,666
UK Treasury 7.750% 09/08/2006 1,435,000 2,569,363
UK Treasury+ 9.000% 03/03/2000 1,121,000 1,924,235
UK Treasury 8.000% 09/25/2009 3,200,000 5,990,922
UK Treasury 8.500% 07/16/2007 1,100,000 2,079,154
--------------
38,076,288
--------------
Yankee Bonds -- 2.9%
APP International Finance+ 11.750% 10/01/2005 425,000 387,124
Brascan Ltd.+ 7.375% 10/01/2002 500,000 516,670
Cominco Ltd.+ 6.875% 02/15/2006 525,000 529,205
Hutchison Whampoa Finance 7.450% 08/01/2017 900,000 833,040
Irsa Parcks Cvt 144A, REIT 4.500% 08/02/2003 440,000 448,800
Merita Bank 7.500% 12/29/2049 250,000 260,823
Merita Bank Ltd Corp. Bond 7.150% 12/29/2049 650,000 654,537
Methanex Corp.+ 7.400% 08/15/2002 250,000 258,900
Pindo Deli Fin 10.250% 10/01/2002 200,000 172,044
Se Banken 144A Euro Step Up 8.125% 09/06/2049 1,500,000 1,597,020
Societe Generale Step Up 7.640% 04/29/2049 750,000 750,600
Svenska Handelsbanken Step Up 7.125% 03/29/2049 500,000 501,095
Wharf International Finance+ 7.625% 03/13/2007 825,000 720,464
--------------
7,630,322
--------------
Total Government/Other (Cost $132,594,700) 129,609,689
--------------
Non-Agency -- 1.6%
Pass Thru Securities -- 1.6%
Chase Commercial Mortage Sec 6.6 6.600% 12/25/2007 500,000 482,200
GMAC Mortgage Corp. 1997-C1 E 7.085% 11/15/2010 900,000 910,195
Mortgage Capital Funding 97-mc2 D 7.117% 11/20/2007 725,000 728,852
Resolution Trust Corp. 7.100% 12/25/2024 1,551,837 1,547,957
Resolution Trust Corp. 1995 C1 Cl C 6.900% 02/25/2027 500,000 498,125
--------------
Total Non-Agency (Cost $4,135,563) 4,167,329
--------------
U.S. Government Agency -- 0.3%
Pass Thru Securities -- 0.3%
FHLMC Gold 15Yr+ 6.000% 04/01/2012 379,871 373,698
RFC Series 1996 HS2 Al 7.600% 09/25/2012 350,000 364,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Portfolio
Schedule of Investments - December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (1) (Note 1A)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
--------------
Total U.S. Government Agency (Cost $713,974) 737,698
--------------
U.S. Treasury Obligations -- 13.6%
Treasury Bonds -- 1.4%
U.S. Treasury Bond+ 8.125% 08/15/2019 2,845,000 $ 3,559,806
--------------
Treasury Notes -- 12.2%
U.S. Treasury Note++ 6.000% 06/30/1999 2,000,000 2,010,000
U.S. Treasury Note+ 6.250% 06/30/2002 5,025,000 5,124,696
U.S. Treasury Note+ 6.500% 05/15/2005 7,325,000 7,636,312
U.S. Treasury Note+ 6.500% 08/15/2005 12,010,000 12,531,713
U.S. Treasury Note+ 6.625% 06/30/2001 2,790,000 2,867,171
U.S. Treasury Note+ 6.250% 10/31/2001 1,875,000 1,906,931
--------------
32,076,823
--------------
Total U.S. Treasury Obligations (Cost $35,422,206) 35,636,629
--------------
TOTAL BONDS AND NOTES (COST $212,396,292) 210,625,227
--------------
<CAPTION>
Shares
---------------
<S> <C> <C>
PREFERRED STOCKS -- 0.7%
Equity Residential Properties 3,000 79,688
Pinto Totta Intl Finance Non Cumm 550 575,237
Time Warner, Inc. 736 824,140
Texaco Capital LLC 14,000 306,250
--------------
TOTAL PREFERRED STOCKS (COST $1,759,531) 1,785,315
--------------
<CAPTION>
Contract
Size (1)
---------------
<S> <C> <C>
PURCHASED OPTIONS -- 1.0%
HKD Put/USD Call, Strike Price 7.75, 2/5/98 3,200,000 14,720
JGB 5.5% Put, Strike Price 113.37, 3/5/98 350,000,000 --
JPY Put/USD Call, Strike Price 120.00, 5/14/98 5,000,000 341,500
JPY Put/NZD Call, Strike Price 73.75, 8/20/98 454,000,000 95,340
DBR 6% Call, Strike Price 105.01, 12/11/98 8,875,000 60,217
DBR 6% Call, Strike Price 105.63, 3/19/98 7,500,000 14,595
DBR 6.5% Call, Strike Price 109.53, 12/11/98 4,400,000 54,322
JGB 2.6% Call, Strike Price 102.52, 3/19/98 488,000,000 5,368
DBR 6% Call, Strike Price 106.00, 3/16/98 7,700,000 20,128
JPY Put/GBP Call, Strike Price 210.00, 10/9/98 2,390,000 132,184
JPY Put/ITL Call, Strike Price 13.50, 9/3/98 464,600,000 90,132
JPY Put/USD Call, Strike Price 120.75, 4/15/98 4,075,000 268,135
JPY Put/USD Call, Strike Price 126.50, 5/14/98 4,652,000 167,007
JPY Put/USD Call, Strike Price 120.00, 10/28/98 7,500,000 477,750
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Portfolio
Schedule of Investments - December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Contract Value
Security Rate Maturity Size (1) (Note 1A)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
JPY Put/USD Call, Strike Price 130.00, 11/16/98 4,650,000 $ 139,965
AUD 10% Put, Strike Price 128.283, 3/4/98 7,475,000 104,755
USD Put/Dem Call, Strike Price 1.71, 1/30/98 3,935,000 2,755
DBR 6% Call, Strike Price 103.97, 1/30/98 7,200,000 34,034
JGB 2.6% Call, Strike Price 107.095, 1/23/98 500,000,000 7,500
JGB 2.6% Call, Strike Price 107.357, 1/28/98 980,000,000 7,840
JGB 2.6% Call, Strike Price 107.35, 1/29/98 445,800,000 6,241
JGB #197 Put, Strike Price 104.583, 5/12/98 587,600,000 44,658
JGB 3.1% Call, Strike Price 108.979, 1/29/98 191,000,000 5,539
ACGB 10% Call, Strike Price 129.577, 2/6/98 6,650,000 57,429
JGB #167 Put, Strike Price 111.536, 5/13/98 587,600,000 52,884
JGB 2.6% Call, Strike Price 106.262, 1/6/98 465,000,000 5,115
JGB 2.6% Call, Strike Price 105.262, 4/6/98 465,000,000 37,665
JGB 2.6% Put, Strike Price 102.189, 3/30/98 727,940,000 3,640
JPY Put/USD Call, Strike Price 135.00, 12/14/98 12,650,000 250,470
JPY Put/USD Call, Strike Price 130.00, 12/22/98 4,000,000 103,200
UST Call 6.125%, Strike Price 104.2187, 3/19/98 60,000 39,375
------------
TOTAL PURCHASED OPTIONS (COST $2,333,671) 2,644,463
------------
SHORT-TERM INVESTMENTS -- 14.4%
<CAPTION>
COMMERCIAL PAPER -- 3.6% Par Value (1)
-------------
<S> <C> <C>
St. Paul Cos 144A, 1/12/98 2,500,000 2,478,812
Walt Disney, 1/15/98 7,000,000 6,956,699
------------
9,435,511
------------
U.S. GOVERNMENT -- 9.5%
FHLB, 1/14/98 2,500,000 2,478,514
FMC Discount Note, 1/14/98 5,000,000 4,972,389
FHLMC, 1/23/98 10,000,000 9,929,125
FNMA, 1/8/98 7,500,000 7,471,450
------------
24,851,478
------------
REPURCHASE AGREEMENTS -- 1.3%
Prudential-Bache Repurchase Agreement, dated 12/31/97, due 1/2/98, with a
maturity value of $3,517,727 and an effective yield of 6.07%, collateralized by
a U.S. Treasury Bond with a rate of 11.25%, with a maturity date of 2/15/15 and
with an aggregate market value of $3,586,883. 3,516,541
------------
3,516,541
------------
TOTAL SHORT-TERM INVESTMENTS (COST $37,803,530) 37,803,530
------------
TOTAL INVESTMENTS -- 96.3% (COST $254,293,024) $252,858,535
Other Assets, Less Liabilities -- 3.7% 9,694,622
------------
NET ASSETS -- 100% $262,553,157
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Global Fixed Income Portfolio
Schedule of Investments - December 31, 1997
- --------------------------------------------------------------------------------
Notes to the Schedule of Investments:
144A - Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration.
FNMA - Federal National Mortgage Association
FHLMC - Federal Home Loan Mortgage Corporation
FHLB - Federal Home Loan Bank
REIT - Real Estate Investment Trust
ACGB Australian Government Bond
DBR Deutsche Bundes Republik
JGB Japanese Government Bond
UST United States Treasury
AUD Australian Dollar
DEM German Deutsche Mark
GBP British Pound Sterling
HKD Hong Kong Dollar
ITL Italian Lira
JPY Japanese Yen
USD United States Dollar
(1)Denominated in United States currency except for foreign country specific
bonds which are denominated in their respective local currency.
+ Denotes all or part of security pledged as a margin deposit (Note 6).
++ 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.
20
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Global Fixed Income Portfolio
Statement of Assets and Liabilities
December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets
Investments, at value (Note 1A) (identified cost, $254,293,024) $252,858,535
Unrealized appreciation on forward foreign currency exchange contracts
(Note 5) 8,484,045
Interest and dividends receivable 4,616,449
Deferred organization costs (Note 1F) 49,831
Receivable for daily variation margin on open financial futures contracts
(Note 5) 45,594
Receivable from investment adviser 41,674
Receivable for investments sold 4,964
Other assets 6,539
------------
Total assets 266,107,631
------------
Liabilities
Options written, at value (premiums received $1,362,696)
(Note 5) 1,270,957
Unrealized depreciation on forward foreign currency exchange
contracts (Note 5) 2,219,042
Accrued trustees' fees 3,748
Accrued accounting and custody fees 36,865
Accrued expenses and other liabilities 23,862
----------
Total liabilities 3,554,474
------------
Net Assets (applicable to investors' beneficial interests) $262,553,157
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Global Fixed Income Portfolio
Statement of Operations
Year Ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income (Note 1C)
Interest income $ 14,121,353
Dividend income (net of foreign withholding taxes of $17,682) 75,945
-------------
Total income 14,197,298
Expenses
Investment advisory fee (Note 2) $ 802,027
Accounting and custody fees 287,068
Legal and audit services 72,771
Trustees fees (Note 2) 15,059
Amortization of organization expense (Note 1F) 14,772
Registration fees 13,488
Insurance expense 7,440
Miscellaneous 13,474
-----------
Total expenses 1,226,099
-------------
Net investment income 12,971,199
-------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Investment securities transactions (1,060,224)
Financial futures contracts 25,509
Written options transactions 708,516
Foreign currency transactions and forward foreign currency exchange
contracts 10,858,371
Interest rate swap contracts 14,826
-----------
Net realized gain 10,546,998
Change in unrealized appreciation (depreciation)
Investment securities (7,238,843)
Financial futures contracts 139,391
Written options (403,162)
Foreign currency and forward foreign currency exchange contracts 6,370,158
Interest rate swap contracts (4,236)
-----------
Change in net unrealized depreciation (1,136,692)
-------------
Net realized and unrealized gain 9,410,306
-------------
Net increase in net assets from operations $ 22,381,505
=============
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Global Fixed Income Portfolio
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period
May 3, 1996
(commencement
Year Ended of operations)
December 31, 1997 to December 31, 1996
----------------- --------------------
<S> <C> <C>
Increase (decrease) in Net Assets
From operations
Net investment income $ 12,971,199 $ 7,390,200
Net realized gain 10,546,998 4,871,948
Change in net unrealized
appreciation (depreciation) (1,136,692) 6,373,075
------------ ------------
Net increase in net assets
from operations 22,381,505 18,635,223
------------ ------------
Capital transactions
Assets contributed by Standish
Global Fixed Income Fund at
commencement (including
unrealized depreciation of
$266,576) -- 149,438,650
Contributions 112,195,968 3,371,618
Withdrawals (31,838,814) (11,630,993)
------------ ------------
Increase in net assets resulting
from capital transactions 80,357,154 141,179,275
------------ ------------
Total increase in net assets 102,738,659 159,814,498
Net Assets
At beginning of period 159,814,498 --
------------ ------------
At end of period $262,553,157 $159,814,498
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Global Fixed Income Portfolio
Supplementary Data
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period
May 3, 1996
(commencement
Year Ended of operations)
December 31, 1997 to December 31, 1996
----------------- --------------------
<S> <C> <C>
Ratios (to average daily net assets):
Expenses 0.61% 0.62%+
Net investment income 6.47% 7.17%+
Portfolio Turnover 176% 111%
Net assets, end of period (000s omitted) $262,553 $159,814
</TABLE>
+ Computed on an annualized basis.
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Global Fixed Income 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 Global Fixed Income Portfolio (the "Portfolio") is a separate
non-diversified investment series of the Portfolio Trust.
The following is a summary of significant accounting policies
consistently followed by the Portfolio in the preparation of its
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 price, 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 at amortized cost.
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 agreements' underlying investments to ensure the existence
of a proper level of collateral.
C. Securities transactions and income
Securities transactions are recorded as of trade date. Interest income
is determined on the basis of interest accrued, adjusted for
amortization of premium or discount on long-term debt securities when
required for federal income tax purposes. Realized gains and losses
from securities sold are recorded on the identified cost basis. The
Portfolio does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from
the fluctuations arising from changes in market prices of securities
held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
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.
25
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Global Fixed Income Portfolio
Notes to Financial Statements
- --------------------------------------------------------------------------------
E. Foreign currency transactions
Investment security valuations, other assets and liabilities initially
expressed in foreign currencies are converted into U.S. dollars based
upon current exchange rates. Purchases and sales of foreign investment
securities and income and expenses are converted into U.S. dollars
based upon currency exchange rates prevailing on the respective dates
of such transactions.
Section 988 of the Internal Revenue Code provides that gains or losses
on certain transactions attributable to fluctuations in foreign
currency exchange rates must be treated as ordinary income or loss. For
financial statement purposes, such amounts are included in net realized
gains or losses.
F. Deferred organization expense
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 International Management
Company, L.P. ("SIMCO") for overall investment advisory and
administrative services is paid monthly at the annual rate of 0.40% of
the Portfolio's average daily net assets. The advisory agreement
provides that if the total annual operating expenses of the Portfolio
(excluding brokerage commissions, taxes and extraordinary expenses) in
any fiscal year exceed 0.65% of the Portfolio's average daily net
assets, the compensation due the adviser shall be reduced by the amount
of the excess. The Portfolio Trust pays no compensation directly to its
trustees who are affiliated with SIMCO or to its officers, all of whom
receive remuneration for their services to the Portfolio Trust from
SIMCO. Certain of the trustees and officers of the Portfolio Trust are
limited partners or officers of SIMCO.
(3) Purchases and Sales of Investments:
Purchases and proceeds from sales of investments, other than short-term
investments, were as follows:
<TABLE>
<CAPTION>
Purchases Sales
-------------- -------------
<S> <C> <C>
U.S. Government Securities...................... $ 87,424,523 $ 52,634,475
============= ============
Investments (non-U.S. Government Securities).... $ 312,621,125 $272,840,534
============= ============
</TABLE>
(4) Federal Income Tax Basis of Investment Securities:
The cost and unrealized appreciation (depreciation) in value of the
investment securities owned at December 31, 1997, as computed on a
federal income tax basis, were as follows:
<TABLE>
<S> <C>
Aggregate Cost............................................. $ 254,428,245
=============
Gross unrealized appreciation.............................. $ 4,147,079
Gross unrealized depreciation.............................. (5,716,789)
-------------
Net unrealized appreciation (depreciation)................. $ (1,569,710)
=============
</TABLE>
26
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Global Fixed Income Portfolio
Notes to Financial Statements
- --------------------------------------------------------------------------------
(5) Financial Instruments:
In general, the following instruments are used for hedging purposes as
described below. However, these instruments may also be used 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 Master Portfolio registration statement.
The Portfolio trades the following financial instruments with
off-balance sheet risk:
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 to seek to hedge against
risks of market exposure and changes in security prices and foreign
currencies, as well as to seek to enhance returns. Writing put and
buying calls tend to increase the Portfolio's exposure to the
underlying instrument. Buying puts and writing calls tend to decrease
the Portfolio's exposure to the underlying instrument, or hedge the
Portfolio's investments. Options, both held and written by the
Portfolio, are reflected in the accompanying Statement of Assets and
Liabilities at market value. The underlying value of any open purchased
option is shown in the schedule of investments. This amount reflects
each contract's 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 contract's
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. A summary of such transactions for the year ended December 31,
1997 is as follows:
Written Put Option Transactions
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number of
Contracts Premiums
--------------- ---------------
<S> <C> <C>
Outstanding, beginning of period.......... 8 $379,889
Options written........................... 23 548,897
Options exercised......................... 0 0
Options expired........................... (11) (333,457)
Options closed............................ (18) (498,559)
--------------- ---------------
Outstanding, end of period................ 2 $96,770
=============== ===============
</TABLE>
27
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Global Fixed Income Portfolio
Notes to Financial Statements
- --------------------------------------------------------------------------------
Written Call Option Transactions
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number of
Contracts Premiums
--------------- ---------------
<S> <C> <C>
Outstanding, beginning of period........... 4 $43,360
Options written............................ 23 424,129
Options exercised.......................... (3) (69,450)
Options expired............................ (4) (25,120)
Options closed............................. (17) (273,290)
--------------- ---------------
Outstanding, end of period................. 3 $99,629
=============== ===============
</TABLE>
Written Cross Currency Option Transactions
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number of
Contracts Premiums
--------------- ---------------
<S> <C> <C>
Outstanding, beginning of period............ 10 $425,179
Options written............................. 33 2,233,358
Options exercised........................... (3) (55,240)
Options expired............................. (6) (185,075)
Options closed.............................. (20) (1,251,925)
--------------- ---------------
Outstanding, end of period.................. 14 $1,166,297
=============== ===============
</TABLE>
Forward currency exchange contracts
The Portfolio may enter into forward foreign currency and cross
currency exchange contracts for the purchase or sale of a specific
foreign currency at a fixed price on a future date. Risks may arise
upon entering these contracts from the potential inability of
counterparties to meet the terms of their contracts and from
unanticipated movements in the value of a foreign currency relative to
the U.S. dollar and other foreign currencies. The forward foreign
currency and cross currency exchange contracts are marked to market
using the forward foreign currency rate of the underlying currency and
any gains or losses are recorded for financial statement purposes as
unrealized until the contract settlement date or upon the closing of
the contract. Forward currency exchange contracts are used by the
Portfolio primarily to protect the value of the Portfolio's foreign
securities from adverse currency movements. Unrealized appreciation and
depreciation of forward currency exchange contracts is included in the
Statement of Assets and Liabilities.
28
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Global Fixed Income Portfolio
Notes to Financial Statements
- --------------------------------------------------------------------------------
At December 31, 1997, the Portfolio held the following forward foreign
currency and cross currency exchange contracts:
Forward Foreign Currency Exchange Contracts
<TABLE>
<CAPTION>
Local U.S.$ U.S.$
Principal Contract U.S.$ Market Aggregate Unrealized
Contracts to Deliver Amount Value Date Value Face Amount Gain/(Loss)
------------------------------- -------------- --------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C>
Argentinian Peso.............. 11,480,375 10/27-10/28/98 $ 10,971,343 $ 10,850,000 $ (121,343)
Australian Dollar............. 22,552,157 1/08-2/10/98 14,698,693 15,927,153 1,228,460
Belgian Franc................. 203,850,000 4/24-7/20/98 5,539,605 5,713,191 173,586
Brazilian Real................ 1,345,375 1/29/98 1,189,864 1,175,000 (14,864)
Canadian Dollar............... 6,877,018 2/26-2/27/98 4,818,375 4,945,436 127,061
German Deutsche Mark.......... 48,829,351 1/09-6/29/98 27,303,475 27,952,338 648,863
Danish Krone.................. 68,674,620 1/12-5/06/98 10,052,630 10,212,788 160,158
Finnish Markka................ 8,972,880 2/26/98 1,652,638 1,722,242 69,604
French Franc.................. 12,250,000 7/20/98 2,057,613 2,016,461 (41,152)
British Pound Sterling........ 23,251,229 1/07-7/20/98 38,019,154 38,194,269 175,115
Greek Drachma................. 272,000 1/12/98 955 995 40
Hong Kong Dollar.............. 70,878,392 12/29-10/14/99 8,582,440 8,755,000 172,560
Irish Punt.................... 2,056,824 7/20/98 2,934,403 2,981,161 46,758
Italian Lira.................. 11,413,374,555 1/12-5/29/98 6,453,317 6,590,027 136,710
Japanese Yen.................. 1,764,313,571 2/05-3/18/98 13,621,511 14,950,309 1,328,798
Republic of Korea Won......... 4,200,800,000 8/03/98 2,344,633 4,450,000 2,105,367
Norwegian Krone............... 6,546,837 1/16/98 886,516 876,451 (10,065)
New Zealand Dollar............ 35,675,743 1/28-3/17/98 20,617,418 21,893,200 1,275,782
Polish Zloty.................. 16,073,860 9/18/98 4,049,535 4,000,000 (49,535)
Swedish Krona................. 61,476,746 1/30-5/29/98 7,771,038 8,150,574 379,536
European Currency Unit........ 308,122 1/07/98 338,835 342,508 3,673
------------ ------------ -------------
$183,903,991 $191,699,103 $7,795,112
============ ============ =============
</TABLE>
<TABLE>
<CAPTION>
Local U.S.$ U.S.$
Principal Contract U.S.$ Market Aggregate Unrealized
Contracts to Receive Amount Value Date Value Face Amount Gain/(Loss)
------------------------------- -------------- --------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C>
Argentinian Peso................ 1,272,000 11/09/98 $ 1,213,496 $ 1,200,000 $ 13,496
Belgian Franc................... 110,500,000 7/20/98 3,011,248 2,981,161 30,087
Canadian Dollar................. 6,877,018 2/26-2/27/98 4,818,375 4,857,277 (38,902)
German Deutsche Mark............ 14,241,864 1/09-9/18/98 7,999,033 8,456,493 (457,460)
Danish Krone.................... 16,467,077 1/12-2/18/98 2,405,914 2,455,326 (49,412)
Spanish Peseta.................. 2,520,000 1/20/98 16,503 17,660 (1,157)
Finnish Markka.................. 99,470 1/21/98 18,282 20,104 (1,822)
Greek Drachma................... 251,561,250 6/03/98 852,250 880,909 (28,659)
Irish Punt...................... 2,763,059 7/20/98 3,941,964 3,984,231 (42,267)
Italian Lira.................... 7,771,726,540 1/12-5/29/98 4,395,271 4,478,801 (83,530)
Japanese Yen.................... 471,954,336 2/25/98 3,645,908 4,016,120 (370,212)
Republic of Korea Won........... 4,200,800,000 8/03/98 2,344,633 2,360,000 (15,367)
New Zealand Dollar.............. 14,945,318 1/28-3/16/98 8,637,971 9,145,414 (507,443)
------------ ------------ -------------
$43,300,848 $44,853,496 $(1,552,648)
============ ============ =============
</TABLE>
29
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Global Fixed Income Portfolio
Notes to Financial Statements
- --------------------------------------------------------------------------------
Forward Foreign Cross Currency Exchange Contracts
<TABLE>
<CAPTION>
U.S. $
U.S.$ Market U.S. $ Contract Unrealized
Contracts to Deliver Value In Exchange For Market Value Value Date Gain/(Loss)
-------------------------- ------------- ------------------ --------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
German Deutsche Mark........ $ 426,730 Greek Drachma $ 426,125 6/03/98 $ (605)
German Deutsche Mark........ 427,764 Greek Drachma 426,125 6/03/98 (1,639)
Irish Punt.................. 914,085 Belgian Franc 940,163 7/20/98 26,078
Spanish Peseta.............. 1,360,845 German Deutsche Mark 1,336,288 1/20/98 (24,557)
Italian lira................ 1,379,197 Deutsche Mark 1,336,288 1/20/98 (42,909)
German Deutsche Mark........ 1,336,288 Italian lira 1,361,357 1/20/98 25,069
German Deutsche Mark........ 1,336,288 Spanish Peseta 1,344,342 1/20/98 8,054
Greek Drachma............... 1,704,500 German Deutsche Mark 1,654,875 7/03/98 (49,625)
Belgian Franc............... 1,975,706 Irish Punt 1,894,384 7/20/98 (81,322)
Irish Punt.................. 1,987,860 French Franc 2,057,613 7/20/98 69,753
Greek Drachma............... 2,790,462 French Franc 2,659,902 1/12/98 (130,561)
Finnish Markka.............. 2,692,068 German Deutsche Mark 2,728,420 1/21/98 36,352
French Franc................ 2,659,902 Greek Drachma 2,791,418 1/12/98 131,516
German Deutsche Mark........ 2,728,420 Finnish Markka 2,673,785 1/21/98 (54,635)
German Deutsche Mark........ 3,912,914 Polish Zloty 4,024,483 9/18/98 111,569
--------------- --------------- ----------------
$27,633,029 $27,655,568 $22,539
=============== =============== ================
</TABLE>
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. The Portfolio is required to
deposit 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 the value of hedged
investments. Buying futures tends to increase the Portfolio's exposure
to the underlying instrument, while selling futures tends to decrease
the Portfolio'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 contract's terms. The Portfolio enters into financial futures
transactions primarily to manage its exposure to certain markets and to
changes in security prices and foreign currencies. Gains and losses are
realized upon the expiration or closing of the futures contracts. At
December 31, 1997, the Portfolio held the following futures contracts:
<TABLE>
<CAPTION>
Unrealized
Underlying Face Appreciation/
Contract Position Expiration Date Amount at Value (Depreciation)
---------------------------------- ---------------- ------------------ ------------------- ------------------
<S> <C> <C> <C> <C>
U.S. 10 Year Bond (106 Contracts) Long 3/20/98 $ 11,888,563 $ 112,694
U.S. Long Bond (21 Contracts) Long 3/20/98 2,529,844 26,697
-----------------
$ 139,391
=================
</TABLE>
At December 31, 1997 the Portfolio had segregated sufficient cash
and/or securities to cover margin requirements on open futures
contracts.
30
<PAGE>
Standish, Ayer & Wood Master Portfolio
Standish Global Fixed Income Portfolio
Notes to Financial Statements
- --------------------------------------------------------------------------------
Interest rate swap contracts
Interest rate swaps involve the exchange by the Portfolio with another
party of their respective commitments to pay or receive interest, e.g.,
an exchange of floating rate payments for fixed rate payments with
respect to a notional amount of principal. Credit and market risk exist
with respect to these instruments. If forecasts of interest rates and
other market factors are incorrect, investment performance will be
diminished compared to what performance would have been if these
investment techniques were not used. Even if the forecasts are correct,
there are risks that the positions may correlate imperfectly with the
asset or liability being hedged, a liquid secondary market may not
always exist, or a counterparty to a transaction may not perform. The
Portfolio expects to enter into these transactions primarily for
hedging purposes including, but not limited to, preserving a return or
spread on a particular investment or portion of its portfolio,
protecting against currency fluctuations, managing duration or
protecting against an increase in the price of securities the Portfolio
anticipates purchasing at a later date. Gains and losses are realized
upon the expiration or closing of the swap contracts.
At December 31, 1997, the Portfolio held no interest rate swap
contracts.
31
<PAGE>
Independent Auditors' Report
To the Trustees of Standish, Ayer & Wood Master Portfolio and Investors
of Standish Global Fixed Income Portfolio:
We have audited the accompanying statement of assets and liabilities of
Standish, Ayer & Wood Master Portfolio: Standish Global Fixed Income
Portfolio, including the schedule of investments as of December 31,
1997, and the related statement of operations for the year then ended
and the statements of changes in net assets and the supplementary data
for the year ended December 31, 1997 and for the period from May 3,
1996 (commencement of operations) to December 31, 1996. These financial
statements and supplementary data are the responsibility of the
Portfolio's management. Our responsibility is to express an opinion on
these financial statements and supplementary data based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that
we plan and perform the audit to obtain reasonable assurance about
whether the financial statements and supplementary data are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as
of December 31, 1997, by correspondence with the custodian and brokers;
where replies were not received from brokers we performed other
auditing procedures. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and supplementary data
referred to above present fairly, in all material respects, the
financial position of Standish, Ayer & Wood Master Portfolio: Standish
Global Fixed Income Portfolio as of December 31, 1997, the results of
its operations for the year then ended and the changes in its net
assets and supplementary data for the respective stated periods, in
conformity with United States generally accepted accounting principles.
Coopers & Lybrand
Chartered Accountants
Toronto, Canada
February 19, 1998
32
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Standish, Ayer & Wood Investment Trust
One Financial Center
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(800) 221-4795
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