<PAGE>
LETTER TO SHAREHOLDERS
MICHAEL J. VOGELZANG, CFA, PRESIDENT
TODD FINKELSTEIN, CFA, PORTFOLIO MANAGER
Since the inception of your funds in April and the funding of assets in June,
new cash flow has been strong, investment performance has been above
expectations and, above all, the safety of principal has remained rock solid. In
this, our first semi-annual report to shareholders, we will review the domestic
investing environment and discuss the nature and characteristics of the
portfolios within the Boston Advisors Trust.
ECONOMIC AND INVESTING ENVIRONMENTS
- Since early in the year, the economy has been showing signs of slowing down.
In the 4th quarter of 1999, the Gross Domestic Product of the U.S. grew at
more than an 8% annualized rate. This provoked much concern over inflation
and an economy expanding too quickly, prompting four rate hikes by the
Federal Reserve Board this year of the Federal Funds interest rate. This
economic equivalent of "sand in the gears", is now generating the desired
level of friction. GDP growth for the third quarter ended September 30th came
in at a much slower and more sustainable 2.4% annual rate.
- Over the last 18 months, inflation has moved up to the high end of its recent
decade-long range of between 1.5% to 3.5%, in large part due to the increased
price of energy. Whether the Federal Reserve's actions slow the economy and
quiet inflation pressures remains to be seen.
- The stock market has handled this news of higher inflation and weaker
economic profits poorly. After soaring for five years straight, 2000 could
well prove to be the first negative year for the broad market averages in
over a decade.
PORTFOLIO REVIEWS
CASH RESERVES FUND
- The Portfolio invests only in high-quality credits as ranked by nationally
recognized statistical rating organizations. This, coupled with broad
diversification among issuers and sectors, enhances stability and liquidity
in today's dynamic economic environment. As of October 31, the portfolio
consisted of commercial paper (51%), variable rate notes (21%), repurchase
agreements (16%), corporate bonds (7%) and certificates of deposit (5%). The
variable rate notes contributed strongly to the Fund's competitive returns.
U.S. GOVERNMENT FUND
- The Portfolio invests exclusively in short-term U.S. government securities,
including those guaranteed by any of its agencies or instrumentalities, and
repurchase agreements based upon these securities. As of October 31, the
portfolio consisted of U.S. government agency obligations (64%), of which
variable rates were 12% (8% of the portfolio), and repurchase agreements
(36%). Since the Fund's inception, the yield on overnight repurchase
agreements has rivaled or exceeded that available from alternatives.
Resultantly, the portfolio has maintained a heavy allocation to repurchase
agreements through the period which has helped support the Fund's competitive
yield.
TAX FREE FUND
- The Portfolio invests in high quality short-term municipal obligations as
ranked by nationally recognized statistical rating organizations. This high
quality, coupled with broad diversification among issuers and sectors, helps
lend stability and liquidity in today's dynamic economic environment. As of
October 31, the portfolio consisted of daily and weekly floating rate issues
(74%), notes and bonds (10%), and commercial paper (16%). During the period
since Fund inception, lack of supply (relative to demand) for short-term
tax-exempt paper has maintained downward pressure on municipal rates relative
to taxable alternatives.
<PAGE>
BOSTON ADVISORS TRUST
-------------------------------------------------------------------------
CASH RESERVES FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY RATE MATURITY PRINCIPAL VALUE
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT -- 5.8%
Barclays Bank Plc 5.950% 07/15/2001 $19,900,000 $ 20,128,987
Bayerische Landesbank Girozentrale NY 6.580% 11/17/2000 20,000,000 20,278,325
Commerzbank AG 7.145% 06/26/2001 10,000,000 10,268,295
------------
TOTAL CERTIFICATES OF DEPOSIT 50,675,607
------------
COMMERCIAL PAPER -- 50.6%
Alliance & Leicester Plc 6.520% 11/02/2000 15,000,000 14,997,284
American General Finance 6.670% 12/04/2000 15,000,000 14,908,288
Asset Securitization Co-Operative 6.550% 01/18/2001 20,000,000 19,716,167
AT&T Corporation 6.560% 11/09/2000 10,000,000 9,985,422
AT&T Corporation 7.270% 06/14/2001 15,000,000 15,424,084
BellSouth Telecommunications, Inc. 6.460% 11/14/2000 15,000,000 14,965,008
British Telecommunications Plc 6.510% 11/15/2000 5,600,000 5,585,823
Ciesco LP 6.470% 11/14/2000 25,000,000 24,941,590
Ciesco LP 6.480% 11/21/2000 5,000,000 4,982,000
Corporate Asset Funding Company, Inc. 6.520% 01/23/2001 20,000,000 19,699,356
DaimlerChrysler AG 6.450% 03/06/2001 15,000,000 14,664,062
Dresdner US Finance, Inc. 6.500% 11/09/2000 20,000,000 19,971,111
E.I. du Pont de Nemours & Company 6.460% 12/21/2000 14,000,000 13,874,389
Eureka Securities, Inc. 6.510% 11/02/2000 10,000,000 9,998,192
Falcon Asset Securitization Corporation 6.480% 12/08/2000 20,000,000 19,866,800
Fleet Funding Corporation 6.530% 01/11/2001 18,000,000 17,768,185
Fleet Funding Corporation 6.550% 01/04/2001 7,000,000 6,918,489
General Electric Capital Corporation 6.490% 02/01/2001 15,000,000 14,751,217
General Electric Capital Corporation 6.500% 01/26/2001 15,000,000 14,767,083
General Motors Acceptance Corporation 6.490% 11/02/2000 10,000,000 9,998,197
General Motors Acceptance Corporation 6.570% 01/23/2001 15,000,000 14,772,787
International Business Machines
Corporation 6.490% 11/09/2000 10,000,000 9,985,578
International Business Machines Credit
Corporation 6.470% 11/01/2000 15,000,000 15,000,000
Marsh USA, Inc. 6.520% 11/21/2000 15,000,000 14,945,667
Newell Rubbermaid, Inc. 6.520% 11/28/2000 20,000,000 19,902,200
Prudential Funding Corporation 6.490% 11/16/2000 20,000,000 19,945,917
Transamerica Financial Corporation 6.510% 02/01/2001 15,000,000 14,757,494
UBS Finance Delaware 6.480% 01/04/2001 20,000,000 19,769,600
UBS Finance Delaware 6.490% 01/16/2001 5,000,000 4,931,495
Verizon Global Funding Corporation 6.490% 11/09/2000 12,500,000 12,481,972
Verizon Global Funding Corporation 6.530% 11/09/2000 10,000,000 9,985,489
------------
TOTAL COMMERCIAL PAPER 444,260,946
------------
CORPORATE DEBT -- 7.0%
Chrysler Financial 5.150% 01/22/2001 10,000,000 10,030,464
Lucent Technologies, Inc. 6.900% 07/15/2001 5,000,000 5,102,966
Merrill Lynch & Company, Inc. 6.970% 08/01/2001 6,000,000 6,106,874
</TABLE>
1
<PAGE>
BOSTON ADVISORS TRUST
-------------------------------------------------------------------------
CASH RESERVES FUND (CONTINUED)
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
----------------------------------------------------------------------------------------
<CAPTION>
SECURITY RATE MATURITY PRINCIPAL VALUE
<S> <C> <C> <C> <C>
CORPORATE DEBT (CONTINUED)
Morgan Guaranty Trust Company 6.630% 03/19/2001 $25,000,000 $ 25,066,225
Westpac Banking Corporation Limited 9.125% 08/15/2001 15,000,000 15,608,422
------------
TOTAL CORPORATE DEBT 61,914,951
------------
VARIABLE RATE MUNICIPAL OBLIGATIONS -- 1.4%
National Rural Utilities Co-Operative
Finance 6.620% 06/15/2001 12,000,000 12,037,513
------------
VARIABLE RATE NOTES -- 19.9%
American Express Centurion Bank 6.590% 06/22/2001 15,000,000 15,024,712
American Honda Finance Corporation 6.630% 07/25/2001 10,000,000 10,012,892
Associates Corporation of North America 6.803% 10/05/2001 25,000,000 25,139,772
Bank of America Corporation 6.860% 07/19/2001 25,000,000 25,086,085
Bankers Trust Corporation 6.740% 03/15/2001 10,000,000 10,091,098
British Telecommunications Plc 6.853% 10/09/2001 20,000,000 20,083,753
Caterpillar Financial Services
Corporation 6.750% 05/22/2001 6,000,000 6,084,927
Caterpillar Financial Services
Corporation 6.953% 07/09/2001 15,000,000 15,085,279
Chase Manhattan Corporation 6.940% 11/24/2000 20,000,000 20,289,473
Merrill Lynch & Company, Inc. 6.730% 06/18/2001 13,450,000 13,571,299
Westpac Banking Corporation Limited 6.714% 10/26/2001 5,765,000 5,771,451
Westpac Banking Corporation Limited 6.734% 05/08/2001 8,000,000 8,130,973
------------
TOTAL VARIABLE RATE NOTES 174,371,714
------------
REPURCHASE AGREEMENTS -- 15.6%
Chase Securities Repurchase Agreement,
collateralized by Federal Home Loan
Mortgage Corporation with a rate of
0.00%, maturity date of 02/01/01 and an
aggregate market value of $45,900,194. 6.620% 11/01/2000 45,000,000 45,008,275
PaineWebber Repurchase Agreement,
collateralized by Federal Home Loan Bank
with rates ranging from 5.38% to 8.00%,
maturity dates ranging from 02/02/01 to
08/24/15 and an aggregate market value
of $32,788,809. 6.620% 11/01/2000 32,143,000 32,148,911
Salomon Smith Barney Repurchase
Agreement, collateralized by Federal
Home Loan Bank with a rate of 6.75%,
maturity date of 08/02/01 and an
aggregate market value of $46,993,784,
and Federal National Mortgage
Association with a rate of 0.00%,
maturity date of 4/26/01 and an
aggregate market value of $13,006,786. 6.610% 11/01/2000 60,000,000 60,011,016
------------
TOTAL REPURCHASE AGREEMENTS 137,168,202
------------
TOTAL INVESTMENTS -- 100.3% (COST $880,428,933) 880,428,933
NET OTHER ASSETS -- (0.3%) (2,587,236)
------------
NET ASSETS -- 100.0% $877,841,697
============
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
BOSTON ADVISORS TRUST
-------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY RATE MATURITY PRINCIPAL VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 56.2%
Federal Agricultural Mortgage
Corporation 6.390% 11/09/2000 $ 1,500,000 $ 1,497,870
Federal Agricultural Mortgage
Corporation 6.400% 12/07/2000 1,250,000 1,242,000
Federal Agricultural Mortgage
Corporation 6.410% 11/13/2000 3,000,000 2,993,590
Federal Agricultural Mortgage
Corporation 6.440% 11/01/2000 1,500,000 1,500,000
Federal Agricultural Mortgage
Corporation 6.460% 01/08/2001 915,000 903,835
Federal Farm Credit Bank 6.520% 12/11/2000 1,000,000 992,755
Federal Home Loan Bank 5.625% 03/19/2001 1,065,000 1,067,726
Federal Home Loan Bank 6.320% 04/06/2001 1,000,000 972,613
Federal Home Loan Bank 6.340% 03/28/2001 1,500,000 1,461,168
Federal Home Loan Bank 6.360% 11/21/2000 2,000,000 1,992,933
Federal Home Loan Bank 6.360% 02/23/2001 1,000,000 979,860
Federal Home Loan Bank 6.420% 11/07/2000 1,000,000 998,929
Federal Home Loan Bank 6.420% 01/05/2001 1,000,000 988,408
Federal Home Loan Bank 6.430% 01/24/2001 1,000,000 984,997
Federal Home Loan Bank 6.440% 01/10/2001 1,500,000 1,481,216
Federal Home Loan Bank 6.440% 01/26/2001 1,000,000 984,616
Federal Home Loan Bank 6.460% 01/17/2001 1,000,000 986,182
Federal Home Loan Bank 6.460% 08/17/2001 2,000,000 2,026,194
Federal Home Loan Mortgage Corporation 6.130% 10/11/2001 1,000,000 941,424
Federal Home Loan Mortgage Corporation 6.300% 04/26/2001 1,000,000 969,200
Federal Home Loan Mortgage Corporation 6.400% 11/09/2000 1,000,000 998,578
Federal Home Loan Mortgage Corporation 6.410% 01/04/2001 2,000,000 1,977,209
Federal Home Loan Mortgage Corporation 6.420% 01/11/2001 1,000,000 987,338
Federal Home Loan Mortgage Corporation 6.430% 11/02/2000 1,000,000 999,821
Federal Home Loan Mortgage Corporation 6.440% 07/19/2001 500,000 476,744
Federal Home Loan Mortgage Corporation 6.460% 01/04/2001 1,500,000 1,482,774
Federal Home Loan Mortgage Corporation 6.460% 02/01/2001 1,000,000 983,491
Federal National Mortgage Association 6.310% 03/15/2001 1,000,000 976,513
Federal National Mortgage Association 6.340% 02/15/2001 1,000,000 981,332
Federal National Mortgage Association 6.340% 03/08/2001 1,000,000 977,634
Federal National Mortgage Association 6.350% 02/15/2001 1,000,000 981,303
Federal National Mortgage Association 6.390% 01/09/2001 1,000,000 987,752
Federal National Mortgage Association 6.400% 01/19/2001 1,000,000 985,956
Federal National Mortgage Association 6.410% 11/21/2000 1,000,000 996,439
Federal National Mortgage Association 6.420% 12/04/2000 1,000,000 994,115
Federal National Mortgage Association 6.420% 01/25/2001 1,000,000 984,842
Federal National Mortgage Association 6.430% 01/19/2001 2,000,000 1,971,779
Federal National Mortgage Association 6.430% 01/25/2001 1,250,000 1,231,023
Federal National Mortgage Association 6.470% 06/06/2001 1,000,000 961,000
Federal National Mortgage Association 6.478% 12/14/2000 1,000,000 992,262
</TABLE>
3
<PAGE>
BOSTON ADVISORS TRUST
-------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND (CONTINUED)
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
---------------------------------------------------------------------------------------
<CAPTION>
SECURITY RATE MATURITY PRINCIPAL VALUE
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)
Federal National Mortgage Association 6.490% 11/07/2000 $ 1,000,000 $ 998,919
Federal National Mortgage Association 6.500% 03/12/2001 1,000,000 976,348
Federal National Mortgage Association 8.250% 12/18/2000 3,250,000 3,370,134
Student Loan Marketing Association 6.190% 06/15/2001 500,000 480,570
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 53,719,392
-----------
U.S. GOVERNMENT AGENCY VARIABLE RATES -- 7.6%
Federal Home Loan Bank 6.614% 03/22/2001 2,150,000 2,162,584
Federal National Mortgage Association 6.765% 05/10/2001 2,000,000 2,028,256
Student Loan Marketing Association 6.895% 12/21/2000 2,000,000 2,050,893
Student Loan Marketing Association 6.925% 10/11/2001 1,000,000 1,003,792
-----------
TOTAL U.S. GOVERNMENT AGENCY VARIABLE RATES 7,245,525
-----------
REPURCHASE AGREEMENTS -- 36.5%
Chase Securities Repurchase Agreement,
collateralized by Federal National
Mortgage Association with a rate of
0.00%, maturity dates ranging from
11/01/00 to 12/11/00 and an aggregate
market value of $20,400,655. 6.620% 11/01/2000 20,000,000 20,003,678
PaineWebber Repurchase Agreement,
collateralized by Federal Farm Credit
with a rate of 6.11%, maturity date of
06/12/03 and an aggregate market value
of $1,278,221, and Federal Home Loan
Bank with rates ranging from 6.18% to
8.00%, maturity dates ranging from
05/15/02 to 08/24/15 and an aggregate
market value of $13,985,945. 6.620% 11/01/2000 14,963,000 14,965,751
-----------
TOTAL REPURCHASE AGREEMENTS 34,969,429
-----------
TOTAL INVESTMENTS -- 100.3% (COST $95,934,346) 95,934,346
NET OTHER ASSETS -- (0.3%) (291,186)
-----------
NET ASSETS -- 100.0% $95,643,160
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
BOSTON ADVISORS TRUST
-------------------------------------------------------------------------
TAX FREE MONEY MARKET FUND
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY RATE MATURITY PRINCIPAL VALUE
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------
MUNICIPAL INTEREST BEARING COMMERCIAL PAPER -- 15.6%
Burke County Development Authority 4.150% 01/16/2001 $2,000,000 $ 2,013,142
Harris County Texas 4.500% 11/13/2000 1,000,000 1,006,463
Indianapolis Gas Indiana 4.100% 12/07/2000 1,500,000 1,509,567
Kentucky Asset/Liability Commission Road
Fund 4.050% 11/01/2000 1,000,000 1,006,300
State of Wisconsin 4.250% 02/13/2001 2,000,000 2,006,375
Sullivan Indiana Pollution Control
Revenue 4.150% 01/11/2001 2,000,000 2,012,911
-----------
TOTAL MUNICIPAL INTEREST BEARING COMMERCIAL PAPER 9,554,758
-----------
MUNICIPAL OBLIGATIONS -- 84.6%
Anchorage Alaska Certificates of
Participation 4.500% 02/15/2001 500,000 508,644
Capital Region Airport Commission 4.500% 07/01/2023 1,500,000 1,505,201
Chicago Metropolitan Water Reclamation
Distribution 4.800% 12/01/2000 500,000 510,268
Clark County Nevada Airport Improvement
Revenue 4.250% 07/01/2025 1,500,000 1,505,031
Clark County School District 7.000% 06/01/2001 400,000 420,601
Clark County School District # 37
Vancouver 6.850% 12/01/2000 1,000,000 1,030,713
Clayton County Development Authority 4.250% 06/01/2029 1,500,000 1,504,873
Cleveland Ohio Income Tax Revenue 4.300% 05/15/2024 1,500,000 1,505,032
Cobb County Housing Authority 4.300% 09/15/2026 1,500,000 1,503,194
Colorado State General Fund Revenue 5.000% 06/27/2001 500,000 504,229
Commmonwealth of Massachusetts 4.300% 09/01/2016 1,500,000 1,505,266
Community Development Administration of
Maryland 4.250% 06/15/2026 2,000,000 2,004,134
Connecticut State 4.150% 05/15/2014 1,500,000 1,502,760
Connecticut State Health & Educational
Facilities 4.200% 07/01/2029 1,000,000 1,003,511
De Kalb County Housing Authority 4.300% 06/15/2025 1,000,000 1,001,940
Delaware Transportation Authority 6.500% 07/01/2001 500,000 526,095
Durham North Carolina Water & Sewer
Utility 4.450% 12/01/2015 1,500,000 1,505,144
Fairbanks, North Star Boro Alaska 5.500% 11/01/2000 1,000,000 1,027,500
Florida Housing Finance Agency 4.350% 11/01/2007 1,500,000 1,505,533
Florida Housing Finance Agency 4.550% 12/01/2029 1,000,000 1,001,098
Gulf Coast Waste Disposal Authority 4.600% 06/01/2020 1,000,000 1,003,594
Hammond Indiana Pollution Control
Revenue 4.600% 02/01/2022 820,000 822,859
Harris County Housing Finance
Corporation 4.500% 06/01/2005 1,000,000 1,002,532
Illinois Development Finance Authority
Pollution 4.600% 11/01/2012 1,100,000 1,103,835
Illinois Educational Facilities
Authority 4.300% 06/01/2030 2,500,000 2,508,104
Illinois State Toll Highway Authority 4.400% 01/01/2016 1,500,000 1,521,457
Lake Charles Harbor & Revenue District 4.300% 09/01/2029 1,000,000 1,003,545
Louisville & Jefferson County Regional
Airport 4.700% 01/01/2029 1,000,000 1,003,546
Lower Neches Valley Authority Industrial
Developement 4.700% 04/01/2029 1,000,000 1,003,522
Maricopa County Arizona Pollution
Control Revenue 4.600% 05/01/2029 1,000,000 1,003,553
Metropolitan Government Nashville &
Davidson 4.300% 10/01/2030 500,000 501,790
New York City Municipal Water Finance
Authority 4.550% 06/15/2023 1,000,000 1,001,742
</TABLE>
5
<PAGE>
BOSTON ADVISORS TRUST
-------------------------------------------------------------------------
TAX FREE MONEY MARKET FUND (CONTINUED)
SCHEDULE OF INVESTMENTS - OCTOBER 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
--------------------------------------------------------------------------------------
<CAPTION>
SECURITY RATE MATURITY PRINCIPAL VALUE
<S> <C> <C> <C> <C>
MUNICIPAL OBLIGATIONS (CONTINUED)
North Carolina Educational Facilities
Finance 4.250% 09/01/2020 $1,000,000 $ 1,003,539
North Texas Higher Education Authority 4.400% 04/01/2005 1,500,000 1,507,214
Oklahoma City Oklahoma 4.950% 08/01/2001 1,000,000 1,018,165
Pennsylvania State Higher Educational
Facilities 4.550% 10/01/2009 1,000,000 1,003,603
Port Authority of New York & New Jersey 4.600% 08/01/2024 1,500,000 1,505,195
Raleigh Durham Airport Authority Special
Facilities 4.650% 11/01/2015 1,500,000 1,505,277
Seattle Washington Municipal Light &
Power Revenue 4.250% 06/01/2021 1,500,000 1,504,863
Seattle Washington Water System Revenue 4.400% 09/01/2025 1,400,000 1,404,970
Texas Tax & Revenue 5.250% 08/31/2001 1,000,000 1,016,673
University of North Carolina Revenue 4.300% 05/15/2027 1,180,000 1,182,769
Utah State 4.300% 07/01/2016 2,500,000 2,508,751
Whiting Indiana Industrial Sewage &
Solid Waste 4.750% 01/01/2026 185,000 185,665
-----------
TOTAL MUNICIPAL OBLIGATIONS 51,907,530
-----------
TOTAL INVESTMENTS -- 100.2% (COST $61,462,288) 61,462,288
NET OTHER ASSETS -- (0.2%) (97,792)
-----------
NET ASSETS -- 100.0% $61,364,496
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
BOSTON ADVISORS TRUST
-------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH U.S. GOVERNMENT TAX FREE
RESERVES FUND MONEY MARKET FUND MONEY MARKET FUND
------------- ----------------- -----------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at value
(Cost $743,260,731, $60,964,917 and
$61,462,288, respectively) $743,260,731 $60,964,917 $61,462,288
Repurchase agreements, at value
(Cost $137,168,202 and $34,969,429,
respectively) 137,168,202 34,969,429 --
Cash 376 900 2,931
Interest receivable 119,052 -- 5,720
Prepaid expenses 119,713 17,646 20,629
------------ ----------- -----------
TOTAL ASSETS 880,668,074 95,952,892 61,491,568
------------ ----------- -----------
LIABILITIES
Dividends payable 2,273,369 248,632 89,084
Payable to Investment Advisor 340,542 37,671 23,804
Payable to Distributor 188,756 20,822 12,992
Accrued expense and other payables 23,710 2,547 1,192
------------ ----------- -----------
TOTAL LIABILITIES 2,826,377 309,732 127,072
------------ ----------- -----------
NET ASSETS $877,841,697 $95,643,160 $61,364,496
============ =========== ===========
NET ASSETS CONSIST OF:
Paid-in capital 877,841,697 95,643,160 61,364,496
------------ ----------- -----------
TOTAL NET ASSETS $877,841,697 $95,643,160 $61,364,496
============ =========== ===========
NET ASSETS
Class 1 877,841,697 95,643,160 61,364,496
SHARES OUTSTANDING
Class 1 877,841,697 95,643,160 61,364,496
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(Net assets DIVIDED BY shares
outstanding)
Class 1 $1.00 $1.00 $1.00
</TABLE>
See Notes to Financial Statements
7
<PAGE>
BOSTON ADVISORS TRUST
-------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE PERIOD JUNE 5, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH OCTOBER 31,
2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH U.S. GOVERNMENT TAX FREE
RESERVES FUND MONEY MARKET FUND MONEY MARKET FUND
------------- ----------------- -----------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $22,519,683 $2,497,177 $1,057,219
EXPENSES
Investment advisor expense 1,840,425 206,387 138,643
Distribution expense
Class 1 836,557 93,812 63,018
Legal fees 19,221 19,220 19,221
Printing 62,392 4,203 1,765
Audit and tax fees 8,751 8,752 8,751
Custodian and fund accounting expense 143,884 9,553 3,975
Transfer agency expense 169,350 11,209 4,759
Registration expense 182,083 12,143 5,097
Insurance 75,762 5,053 2,103
Trustees fees and expenses 4,620 4,619 4,619
Miscellaneous 3,182 297 125
----------- ---------- ----------
Total expenses 3,346,227 375,248 252,076
Reduction of investment advisor
expense 334,623 37,525 25,207
----------- ---------- ----------
Net expenses 3,011,604 337,723 226,869
----------- ---------- ----------
Net investment income 19,508,079 2,159,454 830,350
----------- ---------- ----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $19,508,079 $2,159,454 $ 830,350
=========== ========== ==========
</TABLE>
See Notes to Financial Statements
8
<PAGE>
BOSTON ADVISORS TRUST
-------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH U.S. GOVERNMENT TAX FREE
RESERVES FUND MONEY MARKET FUND MONEY MARKET FUND
------------------- ------------------- -------------------
FOR THE PERIOD FROM FOR THE PERIOD FROM FOR THE PERIOD FROM
JUNE 05, 2000* JUNE 05, 2000* JUNE 05, 2000*
TO TO TO
OCTOBER 31, 2000 OCTOBER 31, 2000 OCTOBER 31, 2000
------------------- ------------------- -------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 19,508,079 $ 2,159,454 $ 830,350
--------------- ------------- ------------
Net increase in net assets resulting
from operations 19,508,079 2,159,454 830,350
--------------- ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income
Class 1 (19,508,079) (2,159,454) (830,350)
--------------- ------------- ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (19,508,079) (2,159,454) (830,350)
--------------- ------------- ------------
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST
Proceeds from sale of shares
Class 1 2,111,781,038 235,060,689 144,894,644
Net Asset Value of shares issued to
shareholders in payment of
distributions declared
Class 1 16,781,605 1,871,145 724,478
Cost of shares redeemed
Class 1 (1,250,770,946) (141,313,674) (84,279,626)
--------------- ------------- ------------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS 877,791,697 95,618,160 61,339,496
--------------- ------------- ------------
NET INCREASE IN NET ASSETS 877,791,697 95,618,160 61,339,496
NET ASSETS
At beginning of period 50,000 25,000 25,000
--------------- ------------- ------------
At end of period $ 877,841,697 $ 95,643,160 $ 61,364,496
=============== ============= ============
</TABLE>
* Commencement of Operations
See Notes to Financial Statements
9
<PAGE>
BOSTON ADVISORS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - CLASS 1
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT TAX FREE
CASH RESERVES FUND MONEY MARKET FUND MONEY MARKET FUND
------------------ ----------------- -----------------
FOR FOR FOR
PERIOD ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, 2000 OCTOBER 31, 2000 OCTOBER 31, 2000
(UNAUDITED)(1)(2) (UNAUDITED)(1)(2) (UNAUDITED)(1)(2)
------------------ ----------------- -----------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000
-------- ------- -------
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income 0.024 0.023 0.013
-------- ------- -------
Net increase from investment operations 0.024 0.023 0.013
-------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.024) (0.023) (0.013)
-------- ------- -------
Total distributions (0.024) (0.023) (0.013)
-------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000
======== ======= =======
TOTAL RETURN 2.40%(3) 1.35%(3) 1.35%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $877,842 $95,643 $61,364
Ratio of net operating expenses to
average net assets 0.90%(4) 0.90%(4) 0.90%(4)
Ratio of net investment income to
average net assets 5.83%(4) 5.83%(4) 3.29%(4)
Ratio of expense to average net assets
prior to waived fees and reimbursed
expenses 1.00%(4) 1.00%(4) 1.00%(4)
Ratio of net investment income to
average net assets prior to waived
fees and reimbursed expenses 5.73%(4) 5.73%(4) 3.19%(4)
</TABLE>
(1) For the period from commencement of offering of Class 1 shares, June 5,
2000 to October 31, 2000.
(2) On August 24, 2000, The MONY Group Inc., agreed in principle to acquire
The Advest Group, Inc., the parent company to the Fund's investment
advisor.
(3) Not annualized.
(4) Annualized.
See Notes to Financial Statements
10
<PAGE>
BOSTON ADVISORS TRUST
-------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
1 -- SIGNIFICANT ACCOUNTING POLICIES
Boston Advisors Trust (the Trust) is a diversified, open-end management
investment company registered under the Investment Company Act of 1940, as
amended. The Trust was established as a Massachusetts business trust on
September 30, 1999. The Trust currently offers three Funds: Boston Advisors Cash
Reserves Fund (Cash Reserves Fund), Boston Advisors U.S. Government Money Market
Fund (U.S. Government Money Market Fund), and Boston Advisors Tax Free Money
Market Fund (Tax Free Money Market Fund), (each, a Fund). The investment
objective of the Funds seeks to preserve capital and maintain liquidity,
consistent with seeking maximum current income. The following is a summary of
significant accounting policies consistently followed by the Funds in the
preparation of their financial statements. The policies are in conformity with
generally accepted accounting principles.
A. SECURITY VALUATION -- Each Fund values investment securities utilizing the
amortized cost valuation technique permitted by Rule 2a-7 of the Investment
Company Act of 1940, pursuant to which each fund must comply with certain
conditions. This technique involves initially valuing a fund security at its
cost and thereafter assuming a constant amortization to maturity of any
discount or premium.
B. INCOME -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or accretion of discount.
C. INCOME TAXES -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year substantially all of its net investment
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary.
D. USE OF ESTIMATES -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
E. OTHER -- Investment transactions are accounted for on a trade-date basis.
Gains and losses on securities are determined on the basis of identified
cost.
F. INTERIM FINANCIAL STATEMENTS -- The interim financial statements relating to
October 31, 2000 and for the period then ended have not been audited by
independent certified public accountants, but in the opinion of the Funds'
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial
statements.
2 -- DISTRIBUTIONS TO SHAREHOLDERS
The net investment income of each Fund is determined daily, and substantially
all of the net income and short term capital gain so determined is declared as a
dividend to shareholders of record at time of declaration. Such daily dividends
are paid monthly. Distributions of any long-term capital gains of the Funds' are
made annually. Distributions are paid in the form of additional shares of the
same fund or, at the election of the shareholder, in cash. For U.S. Government
Money Market Fund and Tax Free Money Market Fund, certain distributions may be
paid from net interest earned and designated as tax exempt interest. Such
distributions are not includable by shareholders as income subject to federal
and/or state taxes, but may be subject to federal alternative minimum tax.
11
<PAGE>
BOSTON ADVISORS TRUST
-------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
3 -- INVESTMENT ADVISER FEE
Boston Advisors, Inc. (the Advisor), a wholly owned subsidiary of The Advest
Group, Inc., serves as the investment advisor to the Funds, providing
management, investment advisory and other services. In exchange, the Funds have
agreed to pay the Advisor, a monthly advisory fee at an annual rate of 0.55%
(annualized) of each Fund's average daily net assets. The Advisor has agreed to
waive its advisory fee and reimburse each Fund for its expenses through April,
30, 2001, to the extent necessary that the total expenses of the Fund do not
exceed 0.90% (annualized) of the average daily net assets of Class 1. The
Advisor reserves the right to be reimbursed for management fees waived and fund
expenses paid by it during the prior two years to the extent that a Fund's
expense ratio falls below any expense limitations. On August 24, 2000, The MONY
Group Inc. agreed in principle to acquire The Advest Group, Inc.
4 -- DISTRIBUTION PLAN
Advest, Inc., a wholly owned subsidiary of The Advest Group, Inc., serves as the
distributor to the Funds. The Funds have adopted a Rule 12b-1 distribution plan
authorizing each Fund's Class 1 shares to pay service fees equal to 0.25% of the
Class 1 average daily net assets.
5 -- CAPITAL STOCK
<TABLE>
<CAPTION>
Transactions in capital stock for Cash Reserves Fund were as follows for the periods indicated:
-----------------------------------------------------------------------------------------------
PERIOD FROM JUNE 5, 2000*
TO OCTOBER 31, 2000
(UNAUDITED)
----------------------------------------------
SHARES AMOUNT
---------------------- ----------------------
<S> <C> <C>
Shares sold 2,111,781,038 $ 2,111,781,038
Shares issued upon reinvestment of dividends 16,781,605 16,781,605
Shares redeemed (1,250,770,946) (1,250,770,946)
-------------- ---------------
Net increase 877,791,697 $ 877,791,697
============== ===============
<CAPTION>
Transactions in capital stock for U.S. Government Money Market Fund were as follows for the periods
indicated:
-----------------------------------------------------------------------------------------------------
PERIOD FROM JUNE 5, 2000*
TO OCTOBER 31, 2000
(UNAUDITED)
--------------------------------------------------
SHARES AMOUNT
------------------------ ------------------------
<S> <C> <C>
Shares sold 235,060,689 $ 235,060,689
Shares issued upon reinvestment of dividends 1,871,145 1,871,145
Shares redeemed (141,313,674) (141,313,674)
-------------- ---------------
Net increase 95,618,160 $ 95,618,160
============== ===============
</TABLE>
12
<PAGE>
BOSTON ADVISORS TRUST
-------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Transactions in capital stock for Tax Free Money Market Fund were as follows for the periods indicated:
--------------------------------------------------------------------------------------------------------
PERIOD FROM JUNE 5, 2000*
TO OCTOBER 31, 2000
(UNAUDITED)
----------------------------------------------------
SHARES AMOUNT
------------------------- -------------------------
<S> <C> <C>
Shares sold 144,894,644 $ 144,894,644
Shares issued upon reinvestment of dividends 724,478 724,478
Shares redeemed (84,279,626) (84,279,626)
-------------- ---------------
Net increase 61,339,496 $ 61,339,496
============== ===============
</TABLE>
* Commencement of operations
13