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Previous: LIBERTY ALL STAR EQUITY FUND, N-30B-2, 1998-06-01 |
Next: STANDISH AYER & WOOD INVESTMENT TRUST, N-30D, 1998-06-01 |
Standish, Ayer & Wood Investment Trust
Selected Financial Information
For the Six Months Ended March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Standish
Massachusetts Standish Standish
Intermediate Intermediate Small Cap Standish
Tax Exempt Tax Exempt Tax-Sensitive Tax-Sensitive
Bond Fund Bond Fund Equity Fund Equity Fund
- --------------------------------------------------------- --------------- ------------------------------------------
<S> <C> <C> <C> <C>
Net asset value - beginning of period $ 21.18 $ 21.78 $ 32.61 $ 35.24
Income from investment operations
Net investment income * 0.48 0.48 (0.05) 0.13
Net realized and unrealized gain (loss) 0.21 0.18 1.01 5.38
-------- ------- ------- --------
Total from investment operations 0.69 0.44 0.96 5.51
-------- ------- ------- --------
Less distributions declared to shareholders
From net investment income (0.48) (0.48) (0.01) (0.13)
From net realized gains -- (0.06) (0.14) --
-------- ------- ------- --------
Net asset value - end of period $ 21.39 $ 21.90 $ 33.42 $ 40.62
======== ======= ======= ========
Total return 3.26% 3.05% 3.02% 15.69%
Ratios to average net assets
Expenses * 0.65%+ 0.65%+ 0.75%+ 0.50%+
Net investment income * 4.46%+ 4.39%+ (0.47)%+ 0.86%+
Net assets, end of period (000's omitted) $ 45,803 $71,399 $56,215 $ 29,732
Portfolio turnover 15% 18% 59% 13%
Average broker commission paid per share -- -- $0.0410 $ 0.0494
</TABLE>
* The investment adviser voluntarily did not impose a portion of its fee
and/or reimbursed the Funds for their operating expenses. Please refer to
the Financial Highlights for additional disclosure regarding these ratios.
+ Computed on an annualized basis.
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
Standish, Ayer & Wood Investment Trust
Statements of Assets and Liabilities
March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Massachusetts
Intermediate Intermediate Small Cap
Tax Exempt Bond Tax Exempt Tax-Sensitive Tax-Sensitive
Fund Bond Fund Equity Fund Equity Fund
----------------- ---------------- -------------- -------------
<S> <C> <C> <C> <C>
Assets
Investments at value (Note 1A)* $ 47,081,599 $ 74,288,010 $ 54,058,289 $ 29,569,875
Cash -- -- 4,034,029 293,255
Receivable for investments sold -- 40,000 243,752 --
Receivable for Fund shares sold -- -- 24,958 --
Interest and dividends receivable 679,977 1,068,168 11,346 26,187
Miscellaneous receivable 16,320 -- -- --
Receivable from investment adviser (Note 3) -- 1,020 8,329 4,197
Deferred organization costs (Note 1E) -- -- 10,417 10,426
------------- ------------- -------------- -------------
Total assets 47,777,896 75,397,198 58,391,120 29,903,940
Liabilities
Payable for investments purchased 1,112,552 -- 2,163,565 168,750
Payable for when-issued securities (Note 8) 762,272 3,475,130 -- --
Payable for Fund shares redeemed -- 401,536 7,378 --
Distribution payable 91,083 116,378 -- --
Payable to investment adviser (Note 3) 1,664 -- -- --
Accrued accounting, custody and
transfer agent fees 3,120 3,984 3,843 2,707
Accrued expenses and other liabilities 3,996 1,396 1,255 552
------------- ------------- -------------- -------------
Total liabilities 1,974,687 3,998,424 2,176,041 172,009
------------- ------------- -------------- -------------
Net Assets $ 45,803,209 $ 71,398,774 $ 56,215,079 $ 29,731,931
============= ============= ============== =============
Net Assets consist of
Paid-in capital $ 44,805,002 $ 69,056,646 $ 45,059,174 $ 22,827,761
Undistributed net investment income -- 8,268 (92,222) 50,273
Accumulated net realized gain (loss) (308,017) 63,348 (243,956) 67,159
Net unrealized appreciation 1,306,224 2,270,512 11,492,083 6,786,738
------------- ------------- -------------- -------------
Total Net Assets $ 45,803,209 $ 71,398,774 $ 56,215,079 $ 29,731,931
============= ============= ============== =============
Shares of beneficial interest outstanding 2,141,593 3,260,268 1,682,282 732,027
============= ============= ============== =============
Net asset value, offering price and
redemption price per share
(Net assets/Shares outstanding) $ 21.39 $ 21.90 $ 33.42 $ 40.62
============= ============= ============== =============
* Identified cost of investments $ 45,775,375 $ 72,017,498 $ 42,566,206 $ 22,783,137
============= ============= ============== =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
Standish, Ayer & Wood Investment Trust
Statements of Operations
For the Six Months Ended March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Massachusetts Intermediate Small Cap
Intermediate Tax Tax Exempt Tax-Sensitive Tax-Sensitive
Exempt Bond Fund Bond Fund Equity Fund Equity Fund
------------------ --------------- --------------- --------------
<S> <C> <C> <C> <C>
Investment Income
Interest income $ 1,053,812 $ 1,497,216 $ 41,370 $ 18,891
Dividend income -- -- 11,908 104,914
------------ ------------- ------------ ------------
Total investment income 1,053,812 1,497,216 53,278 123,805
Expenses
Investment advisory fee (Note 3) 82,340 118,611 116,406 45,277
Accounting, custody and transfer agent fees 41,829 45,973 47,944 26,498
Audit services 9,460 10,552 9,229 8,731
Legal fees 4,986 4,986 4,986 4,986
Trustees fees (Note 3) 4,041 5,023 4,058 5,016
Insurance expense 2,428 2,832 1,613 1,013
Registration fees 2,140 9,646 9,612 8,612
Administration fees 1,419 2,056 1,235 614
Amortization of organization expenses (Note 1E) 234 309 1,882 1,882
Miscellaneous 4,771 5,085 2,450 3,377
------------ ------------- ------------ ------------
Total expenses 153,648 205,073 199,415 106,006
Deduct --
Waiver of investment advisory fee (Note 3) (19,847) (12,331) (53,920) (45,277)
Reimbursement of Fund operating expenses (Note 3) -- -- -- (15,452)
------------ ------------- ------------ ------------
Total waiver of investment advisory fee and
reimbursement of operating expenses (19,847) (12,331) (53,920) (60,729)
------------ ------------- ------------ ------------
Net expenses 133,801 192,742 145,495 45,277
------------ ------------- ------------ ------------
Net investment income 920,011 1,304,474 (92,217) 78,528
------------ ------------- ------------ ------------
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss)
Investment security transactions 92,402 72,303 (238,763) 188,170
Financial futures contracts 14,412 -- -- --
------------ ------------- ------------ ------------
Net realized gain (loss) 106,814 72,303 (238,763) 188,170
Change in unrealized appreciation (depreciation)
Investment securities 278,943 323,650 3,007,389 3,607,004
Financial futures contracts (8,940) -- -- --
------------ ------------- ------------ ------------
Net change in unrealized appreciation
(depreciation) 270,003 323,650 3,007,389 3,607,004
------------ ------------- ------------ ------------
Net realized and unrealized gain 376,817 395,953 2,768,626 3,795,174
------------ ------------- ------------ ------------
Net increase in net assets from operations $ 1,296,828 $ 1,700,427 $ 2,676,409 $ 3,873,702
============ ============= ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Massachusetts Intermediate Tax Exempt Bond Fund
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
March 31, 1998 September 30,
(Unaudited) 1997
-------------------- -----------------
<S> <C> <C>
Increase (decrease) in Net Assets
From operations
Net investment income $ 920,011 $ 1,618,620
Net realized gain 106,814 172,925
Change in net unrealized appreciation
(depreciation) 270,003 724,286
------------ ------------
Net increase in net assets from operations 1,296,828 2,515,831
------------ ------------
Distributions to Shareholders
From net investment income (920,011) (1,618,620)
------------ ------------
Total distributions to shareholders (920,011) (1,618,620)
------------ ------------
Fund share (principal) Transactions (Note 5)
Net proceeds from sale of shares 9,994,903 13,888,372
Net asset value of shares issued to shareholders in
payment of distributions declared 374,531 636,463
Cost of shares redeemed (3,343,670) (9,157,501)
------------ ------------
Increase in net assets from Fund share transactions 7,025,764 5,367,334
------------ ------------
Net increase in net assets 7,402,581 6,264,545
Net Assets
At beginning of period 38,400,628 32,136,083
------------ ------------
At end of period $45,803,209 $38,400,628
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Intermediate Tax Exempt Bond Fund
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
March 31, 1998 September 30,
(Unaudited) 1997
----------- -----------
<S> <C> <C>
Increase (decrease) in Net Assets
From operations
Net investment income $ 1,304,474 $ 2,055,758
Net realized gain 72,303 194,930
Change in net unrealized appreciation
(depreciation) 323,650 1,302,656
------------ ------------
Net increase in net assets from operations 1,700,427 3,553,344
------------ ------------
Distributions to Shareholders
From net investment income (1,304,474) (2,055,758)
From net realized gain (151,703) (61,613)
------------ ------------
Total distributions to shareholders (1,456,177) (2,117,371)
------------ ------------
Fund share (principal) Transactions (Note 5)
Net proceeds from sale of shares 25,581,958 23,342,391
Net asset value of shares issued to shareholders in
payment of distributions declared 712,443 828,068
Cost of shares redeemed (7,863,169) (7,725,852)
------------ ------------
Increase in net assets from Fund share transactions 18,431,232 16,444,607
------------ ------------
Net increase in net assets 18,675,482 17,880,580
Net Assets
At beginning of period 52,723,292 34,842,712
------------ ------------
At end of period (including undistributed net
investment income of $8,268 and $8,268, respectively) $71,398,774 $52,723,292
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Cap Tax-Sensitive Equity Fund
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
March 31, 1998 September 30,
(Unaudited) 1997
------------------ ----------------
<S> <C> <C>
Increase (decrease) in Net Assets
From operations
Net investment income (loss) $ (92,217) $ 14,061
Net realized gain (loss) (238,763) 454,628
Change in unrealized appreciation
(depreciation) 3,007,389 8,125,678
------------ ------------
Net increase in net assets from operations 2,676,409 8,594,367
------------ ------------
Distributions to Shareholders
From net investment income (7,582) (11,664)
From net realized gains on investments (170,781) --
------------ ------------
Total distributions to shareholders (178,363) (11,664)
------------ ------------
Fund Share (principal) Transactions (Note 5)
Net proceeds from sale of shares 22,007,889 18,625,615
Net asset value of shares issued to shareholders
in payment of distributions declared 164,809 9,364
Cost of shares redeemed (1,216,182) (1,353,032)
------------ ------------
Net increase in net assets from Fund share
transactions 20,956,516 17,281,947
------------ ------------
Net increase in net assets 23,454,562 25,864,650
Net Assets
At beginning of period 32,760,517 6,895,867
------------ ------------
At end of period (including distributions in
excess of net investment income and
undistributed net investment income of
$92,222 and $7,577, respectively) $56,215,079 $32,760,517
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Tax-Sensitive Equity Fund
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
March 31, 1998 September 30,
(Unaudited) 1997
------------------ ----------------
<S> <C> <C>
Increase (decrease) in Net Assets
From operations
Net investment income $ 78,528 $ 85,363
Net realized gain (loss) 188,170 (99,250)
Change in unrealized appreciation
(depreciation) 3,607,004 2,866,460
------------ ------------
Net increase in net assets from operations 3,873,702 2,852,573
------------ ------------
Distributions to Shareholders
From net investment income (52,664) (73,042)
------------ ------------
Total distributions to shareholders (52,664) (73,042)
------------ ------------
Fund Share (principal) Transactions (Note 5)
Net proceeds from sale of shares 13,987,520 7,241,231
Net asset value of shares issued to shareholders
in payment of distributions declared 45,574 61,187
Cost of shares redeemed (941,141) (105,951)
------------ ------------
Net increase in net assets from Fund share
transactions 13,091,953 7,196,467
------------ ------------
Net increase in net assets 16,912,991 9,975,998
Net Assets
At beginning of period 12,818,940 2,842,942
------------ ------------
At end of period (including undistributed net
investment income of $50,273 and $24,409,
respectively) $29,731,931 $12,818,940
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Massachusetts Intermediate Tax Exempt Bond Fund
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year
Six Months Ended Nine Months
Ended Sept. Ended Year ended December 31,
March 31, 1998 30, Sept. 30, -------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993 1992(1)(2)
------------- -------- --------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of
period $ 21.18 $ 20.63 $ 21.02 $ 19.55 $ 21.31 $ 20.32 $ 20.00
-------- -------- --------- -------- -------- -------- --------
Income from investment operations
Net investment income * 0.48 0.97 0.74 0.94 0.94 0.92 0.13
Net realized and unrealized
gain (loss) on investments 0.21 0.55 (0.39) 1.47 (1.75) 1.13 0.32
-------- -------- --------- -------- -------- -------- --------
Total from investment operations 0.69 1.52 0.35 2.41 (0.81) 2.05 0.45
-------- -------- --------- -------- -------- -------- --------
Less distributions to shareholders
From net investment income (0.48) (0.97) (0.74) (0.94) (0.94) (0.92) (0.13)
From net realized gains on
investments -- -- -- -- (0.01) (0.14) --
-------- -------- --------- -------- -------- -------- --------
Total distributions to
shareholders (0.48) (0.97) (0.74) (0.94) (0.95) (1.06) (0.13)
-------- -------- --------- -------- -------- -------- --------
Net asset value, end of period $ 21.39 $ 21.18 $ 20.63 $ 21.02 $ 19.55 $ 21.31 $ 20.32
======== ======== ========= ======== ======== ======== ========
Total return 3.26% 7.55% 1.70% 12.64% (3.84)% 10.24% 13.85%
Ratios (to average daily net assets)/Supplemental Data
Expenses * 0.65%+ 0.65% 0.65%+ 0.65% 0.65% 0.65% 0.65%+
Net investment income * 4.46%+ 4.67% 4.78%+ 4.71% 4.67% 4.35% 4.05%+
Portfolio Turnover 15%(3) 25%(3) 35%(3) 77% 84% 94% 31%
Net assets, end of period
(000's omitted) $45,803 $38,401 $ 32,136 $32,565 $27,776 $29,627 $ 6,537
- ----------
* The investment adviser voluntarily agreed not to impose a portion of its
investment advisory fee and/or reimbursed the Fund for a portion of its
operating expenses. In the absence of this agreement, the net investment
income per share and the ratios would have been:
Net investment income per share $ 0.47 $ 0.95 $ 0.72 $ 0.95 $ 0.91 $ 0.86 $ 0.11
Ratios (to average net assets):
Expenses 0.74%+ 0.75% 0.73%+ 0.72% 0.78% 0.95% 1.37%+
Net investment income 4.37%+ 4.57% 4.70%+ 4.64% 4.54% 4.05% 3.33%+
</TABLE>
+ Computed on an annualized basis.
(1) Audited by other auditors.
(2) For the period November 2, 1992 (commencement of operations) to December
31, 1992.
(3) Commencing in fiscal 1996, securities which are puttable daily have been
excluded from the portfolio turnover calculation.
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Intermediate Tax Exempt Bond Fund
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Nine Months
Ended Ended Ended Year ended December 31,
March 31, 1998 Sept. 30, Sept. 30, -----------------------------------------------
(Unaudited) 1997 1996 1995 1994 1993 1992(1)(2)
--------------- ---------- ---------- ---------- --------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of period $ 21.78 $ 21.12 $ 21.40 $ 19.91 $ 21.44 $ 20.42 $ 20.00
--------- ---------- ---------- --------- --------- ---------- --------
Income from investment operations
Net investment income * 0.48 1.01 0.79 0.98 0.95 0.93 0.14
Net realized and unrealized gain
(loss) on investments 0.18 0.74 (0.28) 1.49 (1.51) 1.24 0.42
--------- ---------- ---------- --------- --------- ---------- --------
Total from investment operations 0.66 1.75 0.51 2.47 (0.56) 2.17 0.56
--------- ---------- ---------- --------- --------- ---------- --------
Less distributions to shareholders
From net investment income (0.48) (1.01) (0.79) (0.98) (0.95) (0.93) (0.14)
From net realized gains on
investments (0.06) (0.08) -- -- (0.02) (0.22) --
--------- ---------- ---------- --------- --------- ---------- --------
Total distributions to shareholders (0.54) (1.09) (0.79) (0.98) (0.97) (1.15) (0.14)
--------- ---------- ---------- --------- --------- ---------- --------
Net asset value, end of period $ 21.90 $ 21.78 $ 21.12 $ 21.40 $ 19.91 $ 21.44 $ 20.42
========= ========== ========== ========= ========= ========== ========
Total return 3.05% 8.27% 2.43% 12.65% (2.68)% 10.78% 17.02%
Ratios (to average daily net assets)/Supplemental Data
Expenses * 0.65%+ 0.65% 0.65%+ 0.65% 0.65% 0.65% 0.65%+
Net investment income * 4.39%+ 4.74% 4.99%+ 4.75% 4.62% 4.36% 4.16%+
Portfolio Turnover 18%(3) 23%(3) 43%(3) 140% 157% 126% 62%
Net assets, end of period (000's
omitted) $ 71,399 $ 52,723 $ 34,843 $ 32,865 $ 20,514 $ 17,132 $ 5,577
- ----------
* The investment adviser voluntarily agreed not to impose a portion of its
investment advisory fee and/or reimbursed the Fund for a portion of its
operating expenses. In the absence of this agreement, the net investment
income per share and the ratios would have been:
Net investment income per share $ 0.47 $ 0.99 $ 0.76 $ 0.95 $ 0.90 $ 0.85 $ 0.12
Ratios (to average net assets):
Expenses 0.69%+ 0.74% 0.82%+ 0.79% 0.89% 1.15% 1.47%+
Net investment income 4.35%+ 4.65% 4.82%+ 4.61% 4.38% 3.86% 3.34%+
</TABLE>
+ Computed on an annualized basis.
(1) Audited by other auditors.
(2) For the period November 2, 1992 (commencement of operations) to December
31, 1992.
(3) Commencing in fiscal 1996, securities which are puttable daily have been
excluded from the portfolio turnover calculation.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Cap Tax-Sensitive Equity Fund
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period
Six Months January 2, 1996
Ended (commencement of
March 31, 1998 Year Ended operations) to
(Unaudited) September 30, 1997 September 30, 1996
---------------- -------------------- --------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 32.61 $ 23.57 $ 20.00
-------- -------- --------
Income from investment operations
Net investment income (loss) * (0.05) 0.02 0.04
Net realized and unrealized gain on investments 1.01 9.05 3.55
-------- -------- --------
Total from investment operations 0.96 9.07 3.59
-------- -------- --------
Less distributions to shareholders
From net investment income (0.01) (0.03) (0.02)
From net realized gains on investments (0.14) -- --
-------- -------- --------
Total distributions to shareholders (0.15) (0.03) (0.02)
-------- -------- --------
Net asset value, end of period $ 33.42 $ 32.61 $ 23.57
======== ======== ========
Total return 3.02% 38.50% 17.95%
Ratios (to average daily net assets)/Supplemental Data
Expenses * 0.75%+ 0.21% --+
Net investment income (loss) * (0.47)%+ 0.08% 0.41%+
Portfolio Turnover 59% 102% 57%
Average broker commission per share (1) $0.0410 $0.0429 $0.1058
Net assets, end of period (000's omitted) $56,215 $32,761 $ 6,896
- ----------
* The investment adviser voluntarily agreed not to impose a portion of its
investment advisory fee and/or reimbursed the Fund for a portion of its
operating expenses. In the absence of this agreement, the net investment
income per share and the ratios would have been:
Net investment loss per share $ (0.08) $ (0.16) $ (0.28)
Ratios (to average daily net assets):
Expenses 1.02%+ 1.24% 3.45%+
Net investment loss (0.74)%+ (0.95)% (3.04)%+
</TABLE>
+ Computed on an annualized basis.
(1) Amount represents the average commission per share paid to brokers on the
purchase and sale of equity securities.
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Tax-Sensitive Equity Fund
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period
Six Months January 2, 1996
Ended (commencement
March 31, 1998 Year Ended of operations) to
(Unaudited) September 30, 1997(1) September 30, 1996
----------- --------------------- ------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 35.24 $ 23.60 $ 20.00
-------- -------- --------
Income from investment operations
Net investment income * 0.13 0.39 0.28
Net realized and unrealized gain on investments 5.38 11.58 3.50
-------- -------- --------
Total from investment operations 5.51 11.97 3.78
-------- -------- --------
Less distributions to shareholders
From net investment income (0.13) (0.33) (0.18)
-------- -------- --------
Total distributions to shareholders (0.13) (0.33) (0.18)
-------- -------- --------
Net asset value, end of period $ 40.62 $ 35.24 $ 23.60
======== ======== ========
Total return 15.69% 51.19% 18.97%
Ratios (to average daily net assets)/Supplemental Data
Expenses * 0.50%+ 0.20% --+
Net investment income * 0.86%+ 1.31% 2.27%+
Portfolio Turnover 13% 25% 17%
Average broker commission per share (2) $0.0494 $0.0497 $0.0419
Net assets, end of period (000's omitted) $29,732 $12,819 $ 2,843
- ----------
* The investment adviser voluntarily agreed not to impose a portion of its
investment advisory fee and/or reimbursed the Fund for a portion of its
operating expenses. In the absence of this agreement, the net investment
income per share and the ratios would have been:
Net investment income (loss) per share $ 0.05 $ 0.04 $ (0.36)
Ratios (to average daily net assets):
Expenses 1.16%+ 1.73% 5.15%+
Net investment loss 0.20%+ (0.22)% (2.88)%+
</TABLE>
+ Computed on an annualized basis.
(1) Calculated based on average shares outstanding.
(2) Amount represents the average commission per share paid to brokers on the
purchase and sale of equity securities.
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Massachusetts Intermediate Tax Exempt Bond Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BOND -- 98.0%
General Obligations -- 25.4%
Amesbury MA State Qualified 5.30% 06/01/2003 $ 750,000 $ 774,375
Brockton MA State Qualified 5.55% 12/15/2003 270,000 277,763
Brockton MA State Qualified 5.65% 12/15/2004 300,000 310,500
Brockton MA State Qualified 5.70% 06/15/2002 160,000 167,800
Brockton MA State Qualified 6.13% 06/15/2018 250,000 263,438
Commonwealth of Massachusetts 7.50% 06/01/2004 700,000 811,125
Commonwealth of Massachusetts 5.40% 11/01/2006 600,000 638,250
Commonwealth of Massachusetts 5.00% 11/01/2009 1,000,000 1,026,250
Lawrence MA State Qualified 5.00% 09/15/2002 250,000 257,188
Lawrence MA State Qualified 5.13% 09/15/2003 1,500,000 1,552,500
Mass St College Bldg Authority Project 7.50% 05/01/2006 500,000 603,125
Mass St College Bldg Authority Project 7.50% 05/01/2007 450,000 547,875
Massachusetts Bay Transportation Authority 6.25% 03/01/2004 475,000 521,906
Massachusetts Bay Transportation Authority 6.00% 03/01/2005 550,000 600,875
Massachusetts Special Obligation 5.50% 06/01/2006 500,000 538,750
Massachusetts St Govt Ld Bk 5.25% 02/01/2007 1,000,000 1,050,000
Peabody MA 5.00% 08/01/2008 500,000 520,625
University of Mass Building Authority State Guarantee 6.63% 05/01/2007 1,000,000 1,165,000
--------------
Total General Obligations (Cost $11,163,159) 11,627,345
--------------
Government Backed -- 0.8%
Mass HEFA Melrose Wakefield Hospital 6.35% 07/01/2006 310,000 351,075
--------------
Total Government Backed (Cost $311,082) 351,075
--------------
Housing Revenue -- 12.7%
Mass HFA Residential Development FNMA 8.80% 08/01/2021 250,000 252,188
Mass HFA Residential Development FNMA 6.88% 11/15/2011 1,000,000 1,081,250
Mass HFA Residential Development FNMA 6.88% 11/15/2011 1,000,000 1,085,000
Mass HFA Residential Development FNMA 7.60% 12/01/2014 490,000 520,013
Mass HFA Residential Development FNMA 6.50% 12/01/2014 455,000 466,944
Massachusetts St Housing Finance Agency 6.30% 10/01/2013 950,000 1,005,813
Massachusetts St Housing Finance Agency 6.25% 11/15/2012 1,000,000 1,077,500
Massachusetts St Housing Finance Agency 5.75% 12/01/2017 350,000 350,000
--------------
Total Housing Revenue (Cost $5,789,659) 5,838,708
--------------
Insured Bond -- 27.6%
Brockton MA MBIA 6.00% 04/01/2007 1,010,000 1,110,356
Chelsea MA AMBAC 7.00% 06/15/2003 265,000 297,794
Chelsea MA School District AMBAC 6.00% 06/15/2004 750,000 816,563
Commonwealth of Massachusetts MBIA 6.90% 10/01/2000 200,000 212,250
Holyoke MA FSA 6.00% 06/15/2006 600,000 658,500
Holyoke MA FSA 6.00% 06/15/2007 800,000 883,000
Holyoke MA FSA 5.25% 08/01/2008 485,000 506,219
Lynn MA MBIA 5.00% 06/01/2006 485,000 501,975
Mass HEFA Cath Health AMBAC 5.00% 11/15/2007 300,000 309,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Massachusetts Intermediate Tax Exempt Bond Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured Bond (continued)
Mass HEFA Hallmark Health FSA 5.25% 07/01/2007 $1,000,000 $ 1,047,500
Mass HEFA NE Medical FGIC 6.00% 07/01/2003 500,000 537,500
Mass HEFA Partners FSA 5.50% 07/01/2007 635,000 677,069
Mass IFA Suffolk Univ AMBAC 5.50% 07/01/2008 500,000 538,125
Massachusetts Bay Transportation Authority FSA 5.25% 03/01/2012 500,000 511,250
Massachusetts Port Authority MBIA 5.75% 07/01/2007 500,000 540,000
Nantucket MA MBIA 6.00% 07/15/2007 400,000 445,000
New Bedford MA AMBAC 6.00% 10/15/2005 575,000 636,094
Springfield MA AMBAC 6.25% 08/01/2006 1,000,000 1,126,250
Springfield MA AMBAC 5.65% 09/01/2007 700,000 763,000
Springfield MA FSA 5.60% 09/01/2005 475,000 512,406
--------------
Total Insured Bond (Cost $12,280,807) 12,629,851
--------------
Lease Revenue -- 2.3%
Puerto Rico Housing Bank Appropriation 5.13% 12/01/2004 250,000 260,313
Puerto Rico Housing Bank Appropriation 5.13% 12/01/2005 750,000 780,000
--------------
Total Lease Revenue (Cost $984,626) 1,040,313
--------------
LOC GIC -- 6.2%
Mass IFA Amesbury LOC: State Street 5.35% 09/01/2000 410,000 421,788
Mass IFA Human Development LOC: Shawmut 6.25% 04/15/2009 765,000 778,388
Mass IFA Orchard Cove Project LOC: Fleet National Bank 5.00% 05/01/2026 415,000 424,338
Northborough MA IFA LOC: Bank of Boston 5.75% 09/01/2002+ 1,220,000 1,241,350
--------------
Total LOC GIC (Cost $2,816,307) 2,865,864
--------------
Revenue Bonds -- 23.0%
Mass Educational Loan Authority AMBAC 5.25% 07/01/1999 390,000 395,850
Mass HEFA Central New England Health Systems 5.75% 08/01/2003 500,000 508,750
Mass HEFA Charlton Hospital 7.10% 07/01/2001 300,000 326,625
Mass HEFA Charlton Hospital 7.00% 07/01/2000 300,000 318,750
Mass HEFA Milford Hospital 5.25% 07/15/2007 600,000 609,750
Mass HEFA Youville Hospital HFA Secured 6.13% 02/15/2015 770,000 825,825
Mass IFA Berkshire Retirement Development 5.13% 07/01/2018+ 530,000 536,625
Mass IFA Brooks School 5.60% 07/01/2005 245,000 263,069
Mass IFA Brooks School 5.90% 07/01/2013 410,000 429,988
Mass IFA Clark University 6.45% 07/01/2001 300,000 321,375
Mass IFA Loomis Project 6.50% 07/01/2002 350,000 364,000
Mass IFA Radcliffe 4.75% 07/01/2007 400,000 411,000
Mass IFA Resource Recovery 6.15% 07/01/2002 1,000,000 1,060,000
Mass IFA Tufts University# 5.25% 02/15/2003 730,000 760,113
Mass Water Resource Authority 7.25% 04/01/2001 200,000 216,750
Mass Water Resource Authority 5.25% 03/01/2013 500,000 508,750
Massachusetts Port Authority 5.75% 07/01/2012 700,000 762,125
Massachusetts Water Pollution Trust 5.25% 02/01/2008 500,000 531,250
New England Loan Marketing MA Student Loan 5.80% 03/01/2002 1,005,000 1,057,763
Virgin Islands Public Finance Authority 7.70% 10/01/2004 300,000 321,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Massachusetts Intermediate Tax Exempt Bond Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Revenue Bonds (continued)
--------------
Total Revenue Bonds (Cost $10,230,650) 10,529,358
--------------
Total Bond (Cost $43,576,290) 44,882,514
--------------
SHORT-TERM INVESTMENTS -- 4.8%
REPURCHASE AGREEMENTS -- 4.8%
Prudential Securities Inc. Repurchase Agreement, dated
3/31/98, due 4/1/98, with a maturity value of
$2,199,416 and an effective yield of 5.42%,
collateralized by a U.S. Government Agency Obligation
with a rate of 7.878%, with a maturity date of 3/1/27
and with a market value of $2,243,072. 2,199,085 2,199,085
--------------
Total Repurchase Agreements (Cost $2,199,085) 2,199,085
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,199,085) 2,199,085
--------------
TOTAL INVESTMENTS-- 102.8% (COST $45,775,375) $ 47,081,599
Other Assets, Less Liabilities-- (2.8)% (1,278,390)
--------------
NET ASSETS-- 100% $ 45,803,209
==============
Notes to the Schedule of Investments:
AMBAC - American Municipal Bond Assurance Corp. IBEW - International Brotherhood of Electrical Workers
FSA - Financial Security Association IFA - Industrial Finance Authority
HEFA - Health & Educational Facilities Authority LOC - Letter of Credit
HFA - Housing Finance Authority MBIA - Municipal Bond Insurance Association
FNMA - Federal National Mortgage Association
</TABLE>
+ Date shown reflects actual maturity date. Security puttable on a daily
basis.
# Delayed delivery contract. (Note 8)
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Intermediate Tax Exempt Bond Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BOND -- 98.8%
Forward -- 5.0%
Alabama St Docks MBIA# 5.50% 10/01/2004 $1,000,000 $ 1,052,500
Austin TX Utilities Systems# 5.75% 11/15/2003 1,000,000 1,061,250
California Housing Authority# 5.05% 02/01/2017 500,000 503,125
Kansas State Turnpike Authority AMBAC# 5.50% 09/01/2006 500,000 531,250
Pensacola FL Airport MBIA# 6.25% 10/01/2008 380,000 408,025
--------------
Total Forward (Cost $3,475,130) 3,556,150
--------------
General Obligations -- 11.5%
California State 6.60% 02/01/2009 1,000,000 1,171,249
California State 5.25% 06/01/2012 500,000 513,125
Commonwealth of Massachusetts 7.50% 06/01/2004 500,000 579,375
Commonwealth of Massachusetts 6.00% 11/01/2008 500,000 561,250
Detroit MI 6.00% 04/01/2000 315,000 324,450
District of Columbia 5.80% 06/01/2004 500,000 525,625
Honolulu HI 5.40% 09/27/2007 500,000 528,750
Lawrence MA State Qualified 5.38% 09/15/2005 500,000 520,625
Lowell MA State Qualified 7.20% 02/15/2000 500,000 526,875
Pennsylvania State 5.00% 05/01/1998 1,000,000 1,001,030
Seattle WA 5.00% 03/01/2002 1,285,000 1,323,549
Tuloso-Midway TX Independent School District 5.75% 08/15/2006 580,000 632,200
--------------
Total General Obligations (Cost $7,962,663) 8,208,103
--------------
Government Backed -- 3.5%
Cincinnati OH Public Schools 6.15% 06/15/2002 600,000 642,000
Mashantucket CT Western Pequot 6.50% 09/01/2005 995,000 1,133,055
Mashuntucket CT Western Pequot 6.25% 09/01/2003 140,000 153,825
Texas State Turnpike 12.63% 07/01/2002 400,000 534,500
--------------
Total Government Backed (Cost $2,359,671) 2,463,380
--------------
Housing Revenue -- 12.2%
California Housing Authority MBIA 5.65% 08/01/2025 355,000 361,213
Colorado HFA Multi Family Insured Mortgage 7.90% 10/01/2000 225,000 241,031
Colorado Housing Finance Agency 7.45% 11/01/2027 400,000 452,000
Delta CA Home Mortgage Finance 5.50% 06/01/2024+ 1,350,000 1,463,062
Florida Housing Finance Agency 0.00% 07/15/2016 780,000 101,400
Hawaii Housing Finance and Development Corp. 7.00% 07/01/2031 810,000 872,775
Houston TX Housing Finance Corp. 8.00% 06/01/2014 500,000 548,750
Mass HFA Residential Development FNMA 6.88% 11/15/2011 400,000 434,000
Mass HFA Residential Development FNMA 7.60% 12/01/2014 395,000 419,194
Michigan Housing Dev Authority AMBAC 6.40% 04/01/2005 250,000 270,625
Michigan Housing Development Authority 0.00% 04/01/2015 350,000 48,706
New Hampshire Housing Finance Agency 6.60% 01/01/2000 400,000 414,000
New Mexico Mortgage Finance Authority 5.75% 07/01/2014 435,000 442,613
North Carolina Housing Finance Agency 7.60% 03/01/2021 880,000 941,600
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Intermediate Tax Exempt Bond Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing Revenue (continued)
Pennsylvania Housing Finance Agency 5.35% 10/01/2008 $ 410,000 $ 425,888
Rhode Island Housing & Mortgage 4.95% 10/01/2016 485,000 491,669
Texas Dept Housing & Community 6.95% 07/01/2023 530,000 574,388
Texas Dept Housing & Community 0.00% 03/01/2015 265,000 85,463
Virginia Housing Development Authority 0.00% 11/01/2017 575,000 103,793
--------------
Total Housing Revenue (Cost $8,623,191) 8,692,170
--------------
Industrial Development -- 5.2%
Alaska Industrial Development and Export Authority 6.20% 04/01/2003 150,000 161,813
Alaska Industrial Development and Export Authority 5.25% 04/01/1998 215,000 215,000
Alaska Industrial Development and Export Authority 5.50% 04/01/2001 500,000 517,500
Dayton OH Special Facilities Emery 6.05% 10/01/2009 500,000 540,000
Eddyville IA Pollution Control Revenue Cargill 5.40% 10/01/2006 500,000 535,000
Henville TN Kroger 5.95% 12/15/2008 445,000 471,700
Mashantucket CT Western Pequot 6.25% 09/01/2003 160,000 172,800
Murray KY Industrial Development Kroger 7.25% 09/01/2012 350,000 393,313
OH Development Commission ABS Industries 5.45% 06/01/1999 100,000 101,375
Stanislaus CA Ogden 7.63% 01/01/2010 385,000 410,025
Weld County CO Industrial Development Conagra 6.75% 12/15/2001 200,000 215,000
--------------
Total Industrial Development (Cost $3,569,629) 3,733,526
--------------
Insured Bond -- 25.7%
Bakersfield CA Convention Center MBIA 5.40% 04/01/2008 1,000,000 1,066,249
Benton County WA School District AMBAC 6.70% 12/01/2006 580,000 671,350
Bloomington MN Port Authority FSA 5.30% 02/01/2007 375,000 376,406
California Health Authority Summit Medical Center FSA 5.50% 05/01/2005 615,000 654,975
Chicago IL Board of Education AMBAC 6.75% 12/01/2009 465,000 548,119
Chicago IL O'Hare Airport MBIA 6.75% 01/01/2006 500,000 570,625
Contra Costa CA Merrithew Hospital MBIA 6.00% 11/01/2006 750,000 834,375
Denver CO Airport MBIA 7.50% 11/15/2006 500,000 586,875
District of Columbia FSA 5.30% 06/01/2004 500,000 524,375
District of Columbia Medlantic Hospital MBIA 7.00% 08/15/2005 500,000 555,625
Florence SC MBIA 5.00% 11/01/2006 1,065,000 1,100,943
Grand Prairie TX Health AMBAC 6.00% 11/01/1999 565,000 577,713
Greater Detroit MI Resource Recovery AMBAC 6.25% 12/13/2007 400,000 452,500
Hot Springs AK Sales & Use Tax FSA 4.95% 12/01/2008 220,000 223,025
Jefferson County OH Asset Guaranty 6.63% 12/01/2005 315,000 338,231
Lubbock TX Health Methodist Hospital AMBAC 5.40% 12/01/2005 1,000,000 1,060,000
New York Dormitory Authority AMBAC 4.40% 08/01/2013 500,000 501,875
New York Dormitory Authority Asset Guaranty 5.25% 07/01/2005 1,000,000 1,033,750
Oklahoma IDA Baptist Med Center AMBAC 7.00% 08/15/2006 500,000 584,375
Orange County CA Recovery MBIA 5.80% 07/01/2016 400,000 428,000
Palm Beach County FL Solid Waste AMBAC 6.00% 10/01/2009 500,000 558,750
Rancho Mirage CA MBIA 5.25% 07/01/2010 750,000 780,938
South Dakota HEFA Mckennan Hosp MBIA 6.00% 07/01/2007 500,000 553,750
Tampa FL Health MBIA 5.50% 11/15/2012 1,000,000 1,055,000
Teton County WY St John Hospital 5.00% 12/01/2004 535,000 543,694
Tucson AZ COP Asset Guaranty 6.00% 07/01/2004 500,000 539,375
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Intermediate Tax Exempt Bond Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured Bond (continued)
Walnut Valley CA School District MBIA 6.75% 08/01/2006 $ 500,000 $ 584,375
Warren KY Bowling Green Hospital FSA 5.00% 04/01/2008 1,000,000 1,030,000
--------------
Total Insured Bond (Cost $17,599,021) 18,335,268
--------------
Lease Revenue -- 10.0%
Battery Park NY Authority Junior Lien 5.20% 11/01/2023 410,000 413,075
Los Angeles CA Building Authority 5.60% 05/01/2004 500,000 533,125
New York Dormitory Authority 6.00% 07/01/2006 500,000 543,125
New York Dormitory Authority 5.50% 02/15/2005 1,000,000 1,046,250
New York State Urban Development Corp. 5.00% 01/01/2005 1,155,000 1,176,655
New York Urban Development Corp. 6.25% 04/01/2002 500,000 533,125
New York Urban Development Corp. 6.00% 01/01/2004 750,000 803,438
NY Metropolitan Transportation Authority 5.75% 07/01/2015 500,000 514,375
Ohio State Building Authority 5.13% 10/01/2007 1,000,000 1,050,000
San Bernadino CA COP 5.25% 08/01/2004 500,000 516,250
--------------
Total Lease Revenue (Cost $6,987,558) 7,129,418
--------------
LOC GIC -- 2.0%
Emporia VA IDB LOC: Bank of Boston 5.80% 04/01/2004+ 50,000 50,116
Michigan Housing Authority LOC: Sumitomo Bank 5.50% 06/01/2018 480,000 483,000
New York Dormitory Authority LOC: Fleet Bank 5.50% 07/01/2003 500,000 525,625
Northborough MA IFA LOC: Bank of Boston 5.75% 09/01/2002+ 380,000 386,650
--------------
Total LOC GIC (Cost $1,419,060) 1,445,391
--------------
Revenue Bonds -- 19.4%
Camden NJ Cooper Hospitals 5.60% 02/15/2007 600,000 628,500
Denison TX Hospital Authority Tesoma Med Center 5.90% 08/15/2007 500,000 531,250
District of Columbia Medlantic Hospital 7.00% 08/15/2005 500,000 544,375
Florida State Mid-Bay Bridge Authority 4.00% 10/01/2001 1,000,000 1,005,000
Foothills CA Transportation Agency 0.00% 01/01/2007 500,000 362,500
Illinois EFA Northwestern University 5.05% 11/01/2032+ 500,000 513,125
Mass IFA Berkshire Retirement Development 5.13% 07/01/2018+ 500,000 506,250
Mass IFA Loomis Project 6.50% 07/01/2002 250,000 260,000
Mass IFA Resource Recovery 6.15% 07/01/2002 700,000 742,000
Met Govt Nashville & Davidson TN Vanderbilt 6.00% 05/01/2008 610,000 679,388
Michigan Hospital Authority Sinai Hospital 5.75% 01/01/2003 450,000 471,375
Montana Student Assistance Corp 5.95% 12/01/2012 305,000 314,150
New Hampshire HEFA Monadnock Hospital 5.25% 10/01/2007 550,000 552,750
New York Med Center Long Island FHA 6.40% 08/15/2014 475,000 521,906
New York Med Center Mt. Sinai FHA 5.95% 08/15/2009 175,000 185,063
New York Med Center St. Luke's FHA 5.60% 08/15/2013 460,000 480,700
New York Med Center St. Vincent FHA 6.13% 02/15/2014 445,000 477,819
NH Education Authority Brewster Acadamy 5.40% 06/01/2001 405,000 416,138
NH HEFA Nashua Hospital 6.25% 10/01/2008 750,000 805,313
Philadelphia PA HEFA Jefferson Health 5.50% 05/15/2006 1,000,000 1,068,749
Scranton PA Allied Rehabilitation 7.12% 07/15/2005 500,000 549,375
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Intermediate Tax Exempt Bond Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenue Bonds (continued)
Tyler TX Health Facilities Development Corp. 5.25% 07/01/2001 $ 835,000 $ 851,700
Utah Student Loan AMBAC 7.45% 11/01/2008 500,000 536,250
Volusia FL HEFA - Embry Riddle University 5.50% 10/15/2004 360,000 374,850
WA Public Power Supply Project 5.30% 07/01/2002 500,000 517,500
--------------
Total Revenue Bonds (Cost $13,334,174) 13,896,026
--------------
Special Revenues -- 4.3%
Castle Rock CO Import Authority 5.75% 12/01/2001 500,000 521,250
District of Columbia Redevelopment Agency 5.63% 11/01/2010 470,000 482,338
Long Beach CA Aquarium 5.75% 07/01/2005 200,000 211,500
Los Angeles CA Community Redevelopment 5.00% 11/15/2000 500,000 508,750
Los Angeles CA Community Redevelopment 4.60% 11/15/2003 500,000 500,445
Met Peioria IL 6.25% 07/01/2017 300,000 322,500
Orange County CA Transportation Sales Tax 6.00% 02/15/2007 500,000 556,875
--------------
Total Special Revenues (Cost $2,962,918) 3,103,658
--------------
Total Bond (Cost $68,293,015) 70,563,090
--------------
SHORT-TERM INVESTMENTS -- 5.2%
SHORT TERM BONDS -- 4.8%
Illinois St Sales Tax 4.90% 06/15/1998 1,400,000 1,403,318
Lone Star Airport Improvement Authority TX 3.45% 12/01/2014+ 230,000 230,000
Los Angeles International Airport 3.75% 12/01/2025+ 600,000 600,000
Los Angeles County CA 4.50% 06/30/1998 1,000,000 1,001,700
Orange County CA Water Dist 3.60% 08/15/2015+ 100,000 100,000
SC Jobs Economic Development Authority 3.75% 07/01/2022+ 100,000 100,000
--------------
Total Short Term Bonds (Cost $3,434,581) 3,435,018
--------------
REPURCHASE AGREEMENTS -- 0.4%
Prudential Securities Inc. Repurchase Agreement, dated 3/31/98, due 4/1/98, with
a maturity value of $289,946 and an effective yield 5.42%, collateralized by a
U.S. Government Agency Obligation with a rate of 7.878%, with a maturity date of
3/1/27 and with a market value
of $295,701. 289,902 289,902
--------------
Total Repurchase Agreements (Cost $289,902) 289,902
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $3,724,483) 3,724,920
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Intermediate Tax Exempt Bond Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
TOTAL INVESTMENTS -- 104.0% (COST $72,017,498) $ 74,288,010
Other Assets, Less Liabilities -- (4.0)% (2,889,236)
--------------
NET ASSETS-- 100% $ 71,398,774
==============
Notes to the Schedule of Investments:
AMBAC - American Municipal Bond Assurance Corp. HFA - Housing Finance Authority
COP - Certification of Participation IDA - Industrial Development Authority
FGIC - Financial Guaranty Insurance Co. IDB - Industrial Development Bond
FHA - Federal Housing Authority IFA - Industrial Finance Authority
FSA - Financial Security Association LOC - Letter of Credit
HEFA - Health & Educational Facilities Authority MBIA - Municipal Bond Insurance Association
FNMA - Federal National Mortgage Association GIC - Guarenteed Investment Contact
</TABLE>
# Delayed delivery contract. (Note 8)
+ Date shown reflects actual maturity date. Security puttable on a daily
basis.
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Cap Tax-Sensitive Equity Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQUITIES -- 96.2%
Capital Goods -- 6.9%
Aviation Sales Co.* 17,600 $ 721,599
Eagle USA Airfreight, Inc.* 15,100 407,700
Flextronics International Ltd.* 11,500 496,656
Hagler Bailly* 15,900 397,500
Kellstrom Industries, Inc.* 27,000 680,063
Service Experts, Inc.* 17,600 553,300
Triumph Group, Inc.* 13,500 599,063
--------------
3,855,881
--------------
Consumer Stable -- 3.9%
Barnett, Inc.* 30,600 657,900
Beringer Wine Estates* 13,900 717,587
Robert Mondavi Corp., Class A* 6,500 268,125
Suiza Foods Corp.* 4,700 289,050
Wilmar Industries, Inc.* 11,300 281,088
--------------
2,213,750
--------------
Early Cyclical -- 3.4%
Aftermarket Technology, Inc.* 27,300 604,013
Atlantic Coast Airlines, Inc.* 7,800 374,400
Excelsior-Henderson Motorcycle* 70,200 544,050
Midwest Express Holdings 7,450 365,050
--------------
1,887,513
--------------
Energy -- 4.5%
Cal Dive International, Inc.* 18,200 600,600
Friede Goldman Intl, Inc. 26,000 750,749
Newpark Resources, Inc. 34,000 620,500
Veritas DGC, Inc.* 11,500 581,469
--------------
2,553,318
--------------
Financial -- 4.6%
Bay View Capital Corp. 7,300 253,675
CCC Information Services Group* 18,100 497,750
First Republic Bank* 9,900 356,400
First Sierra Financial, Inc.* 7,000 182,000
Greater Bay Bancorp 9,200 570,400
Texas Regional Bancshares, Class A 7,700 258,431
West Coast Bancorp 17,300 438,988
--------------
2,557,644
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Cap Tax-Sensitive Equity Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Growth Cyclical -- 9.0%
American Coin Merchandising* 16,500 $ 330,000
Ashworth, Inc.* 30,300 518,888
Central Garden & Pet Co.* 15,900 621,094
Coach USA, Inc.* 21,400 930,899
Gadzooks, Inc.* 28,200 630,975
PC Connection, Inc.* 20,100 427,125
Stein Mart, Inc.* 14,300 509,438
Steiner Leisure Ltd. 12,750 647,859
Vans, Inc.* 43,100 457,938
--------------
5,074,216
--------------
Health Care -- 21.0%
Affymetrix, Inc.* 14,500 504,781
AXYS Pharmaceuticals, Inc.* 36,000 315,000
Chirex, Inc.* 36,900 698,794
CN Bioscience, Inc.* 20,500 533,000
Coulter Pharmaceutical, Inc.* 23,300 637,838
Daou Systems, Inc.* 27,100 530,144
Geron Corp.* 38,600 477,675
Guilford Pharmaceuticals, Inc.* 20,000 440,000
Ilex Oncology, Inc.* 54,600 552,825
Impath, Inc.* 19,000 726,749
Inhale Therapeutic Systems* 10,700 290,238
Leukosite, Inc.* 23,500 217,375
Ligand Pharmaceuticals, Class B* 28,500 454,219
Medimmune, Inc.* 6,400 352,800
Medquist, Inc. 16,250 598,203
National Surgery Centers, Inc. 22,450 573,878
Novoste Corp.* 20,600 534,313
Pharmaceutical Product Development* 38,200 892,924
Province Healthcare Co.* 7,400 194,250
Quadramed Corp.* 10,900 363,788
Sepracor, Inc.* 15,300 652,163
Specialty Care Network, Inc.* 21,000 255,938
Transition Systems, Inc.* 30,200 615,325
Vical, Inc.* 25,100 395,325
--------------
11,807,545
--------------
Other -- 0.9%
S&P 400 Mid-Cap Depository Receipt 7,300 520,467
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Cap Tax-Sensitive Equity Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Services -- 22.0%
Abacus Direct Corp.* 6,600 $ 344,850
Analysts International Corp. 10,500 307,125
Central Parking Corp. 10,275 490,631
Computer Horizons Corp. 5,600 281,400
Computer Task Group, Inc. 6,500 267,719
Devry, Inc.* 9,000 307,688
Emmis Broadcasting Corp., Class A* 12,200 643,550
F.Y.I., Inc.* 25,100 687,113
Gray Communications Systems, Class B 18,100 524,900
Harbinger Corp. 11,000 415,250
Heftel Broadcasting Corp. 11,000 492,250
Inspire Insurance Solutions* 17,500 581,875
Intelligroup, Inc.* 29,500 477,531
Intl Telecomm Data Systems 24,450 638,756
Metzler Group, Inc.* 5,300 263,675
On Assignment, Inc. 24,000 710,999
Pegasus Systems, Inc.* 10,900 280,675
Personnel Group of America, Inc. 22,800 518,700
Remedy Temp, Inc.* 11,700 378,788
Renaissance Worldwide, Inc. 9,800 268,888
Rental Service Corp.* 29,200 678,900
Scandinavian Broadcast Systems Corp.* 63,600 2,098,799
Startec Global Communication* 10,600 265,000
Telegroup, Inc.* 21,800 441,450
--------------
12,366,512
--------------
Technology -- 20.0%
Applied Micro Circuits Corp.* 11,100 249,750
Aspen Technologies, Inc.* 13,100 540,375
ATMI, Inc.* 26,800 810,699
Benchmarq Microelectronics* 23,100 398,475
Best Software, Inc.* 24,300 367,538
Datastream Systems, Inc. 16,600 367,275
Deltek Systems, Inc.* 24,700 438,425
Excite, Inc.* 4,900 249,594
Hyperion Software Corp.* 11,300 500,025
Infinium Software, Inc.* 47,500 947,030
Infoseek Corp.* 14,500 261,906
Level One Communications, Inc. 15,225 357,788
Lycos, Inc.* 10,700 473,475
Micrel, Inc. 12,800 485,600
N2K, Inc.* 2,800 83,650
National Computer System, Inc. 17,600 396,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Cap Tax-Sensitive Equity Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Technology (continued)
Parlex Corp. 30,400 $ 539,600
PCD, Inc.* 20,000 450,000
Photronics, Inc. 24,400 683,200
Radiant Systems, Inc.* 17,800 440,550
Sawtek, Inc.* 14,500 367,938
SBS Technologies, Inc.* 19,400 557,750
Semtech Corp. 23,800 606,900
Walsh International, Inc.* 41,800 647,900
--------------
11,221,443
--------------
TOTAL EQUITIES (COST $42,566,206) 54,058,289
--------------
TOTAL INVESTMENTS-- 96.2% (COST $42,566,206) $ 54,058,289
Other Assets, Less Liabilities-- 3.8% 2,156,790
==============
NET ASSETS-- 100% $ 56,215,079
==============
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing security.
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Tax-Sensitive Equity Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQUITIES -- 99.5%
Basic Industry -- 0.5%
Praxair, Inc. 2,900 $ 149,169
--------------
Capital Goods -- 13.8%
Crane Company 17,625 934,124
Deere & Co. 14,300 885,705
Dover Corp. 7,000 266,000
Kaydon Corp. 22,000 899,249
Textron, Inc. 2,800 215,600
United Technologies Corp. 9,900 913,893
--------------
4,114,571
--------------
Consumer Stable -- 14.4%
Kroger Co. 18,000 831,375
Lancaster Colony Corp. 20,850 884,821
Owens Illinois* 19,000 821,750
Richfood Holdings, Inc. 28,100 899,199
Universal Foods Corp. 17,000 833,000
--------------
4,270,145
--------------
Early Cyclical -- 2.5%
Leggett & Platt, Inc. 4,500 231,469
Oakwood Homes Corp. 13,800 505,425
--------------
736,894
--------------
Energy -- 7.0%
British Petroleum Co. PLC ADR 8,525 733,683
Mobil Corp. 8,300 635,988
Texaco, Inc. 11,800 710,950
--------------
2,080,621
--------------
Financial -- 23.5%
Ace Limited 8,400 316,575
Allied Group 24,250 782,063
AMBAC, Inc. 9,300 543,469
BankAmerica Corp. 7,200 594,900
BankBoston Corp. 1,200 132,300
Chase Manhattan Corp. 2,500 337,188
Citicorp 4,000 568,000
Conseco, Inc. 14,870 842,014
Delphi Financial Group, Inc. 16,500 878,625
Morgan Stanley Dean Witter 5,800 422,675
Northern Trust 1,400 104,650
Old Republic International Corp. 15,500 686,844
Reliastar Financial Corp. 16,500 760,031
--------------
6,969,334
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Tax-Sensitive Equity Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Growth Cyclical -- 10.9%
Carnival Corp. 5,500 $ 383,625
Claire's Stores, Inc. 15,000 344,063
Costco Companies, Inc.* 4,000 214,000
G Tech Holdings Corp.* 23,500 913,562
General Nutrition Companies* 4,700 186,825
Jones Apparel Group, Inc.* 6,200 341,388
Pier 1 Imports, Inc. 10,425 282,778
Ross Stores, Inc. 6,500 286,813
Tommy Hilfiger Corp.* 4,900 294,306
--------------
3,247,360
--------------
Health Care -- 5.3%
Bristol-Myers Squibb Co. 3,300 344,231
Schering-Plough Corp. 4,800 392,100
Sofamor Danek Group, Inc.* 3,000 255,750
Steris Corp.* 3,000 162,000
Watson Pharmaceutical, Inc. 12,000 432,000
--------------
1,586,081
--------------
Real Estate -- 2.8%
Equity Office Properties, REIT 4,875 149,297
General Growth Properties, REIT 4,600 169,625
Patriot Amer Hospitality, Inc., REIT 5,399 145,773
Prentiss Properties Trust, REIT 5,400 141,075
Starwood Lodging Trust, REIT 4,100 219,094
--------------
824,864
--------------
Services -- 5.0%
Ceridian Corp.* 5,300 285,869
Shared Medical Systems 4,100 321,338
Xerox Corp. 8,300 883,431
--------------
1,490,638
--------------
Technology -- 13.8%
American Power Conversion Corp.* 30,000 860,625
Belden, Inc. 20,150 843,781
Compaq Computer 10,500 271,688
Computer Associates International, Inc. 12,450 718,988
Harris Corp., Inc. 13,900 724,538
Intel Corp. 3,000 234,188
Sun Microsystems, Inc.* 10,700 446,390
--------------
4,100,198
--------------
TOTAL EQUITIES (COST $22,783,137) 29,569,875
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Tax-Sensitive Equity Fund
Schedule of Investments - March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
(Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
TOTAL INVESTMENTS -- 99.5% (COST $22,783,137) $ 29,569,875
Other Assets, Less Liabilities -- 0.6% 162,056
--------------
NET ASSETS -- 100% $ 29,731,931
==============
</TABLE>
Notes to the Schedule of Investments:
* Non-income producing security.
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
Standish, Ayer & Wood Investment Trust
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
(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 Massachusetts Intermediate Tax Exempt Bond Fund
(Massachusetts Intermediate Tax Exempt Bond Fund) is a separate
non-diversified investment series of the Trust. Standish Intermediate Tax
Exempt Bond Fund (Intermediate Tax Exempt Bond Fund), Standish Small Cap
Tax-Sensitive Equity Fund (Small Cap Tax-Sensitive Equity Fund) and
Standish Tax-Sensitive Equity Fund (Tax Sensitive Equity Fund) are
separate diversified investment series of the Trust (together with the
Massachusetts Intermediate Tax Exempt Bond Fund, individually a "Fund" and
collectively, the "Funds").
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their 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
Municipal bonds are normally valued on the basis of valuations furnished
by a pricing service. Taxable fixed income obligations, if any, for which
price quotations are readily available are normally valued at the last
sales prices on the exchange or market on which they are primarily traded,
or if not listed or no sale, at the last quoted bid prices. Equity
securities for which quotations are readily available are valued at the
last sale price or if no sale, at the closing bid prices 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 Funds are valued at amortized cost. If a Fund
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 each Fund 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 each Fund
to monitor on a daily basis, the market value of the repurchase
agreement's underlying investments to ensure the existence of a proper
level of collateral.
C. Securities transactions and income
Securities transactions are recorded as of 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.
D. Federal taxes
As qualified regulated investment companies under Subchapter M of the
Internal Revenue Code, the Funds are not subject to income taxes to the
extent that each Fund distributes all of its taxable income for its fiscal
year. Dividends paid by the Massachusetts Intermediate Tax Exempt Bond
Fund and the Intermediate Tax Exempt Bond Fund (collectively the "Bond
Funds") from net interest earned on tax-exempt municipal bonds are not
includable by shareholders as gross income for Federal income tax purposes
because the Bond Funds intend to meet certain requirements of the Internal
Revenue Code applicable to regulated investment companies which will
enable the Bond Funds to pay exempt-interest dividends. At March 31, 1998,
the following Funds, for federal income tax purposes, had capital loss
carryovers as follows:
29
<PAGE>
Standish, Ayer & Wood Investment Trust
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Expiration Date September 30,
----------------------------------------------
2002 2003 2004 Total
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
Massachusetts Intermediate Tax
Exempt Bond Fund $227,004 $178,890 ---- $405,894
Tax-Sensitive Equity Fund ---- ---- $117,114 $117,114
</TABLE>
Such carryovers will reduce each Fund's taxable income arising from future
net realized gain on investments, if any, to the extent permitted by the
Internal Revenue Code and thus will reduce the amount of distributions to
shareholders which would otherwise be necessary to relieve the Funds of
any liability for federal income tax.
E. Deferred organization expense
Costs associated with the Funds' organization and initial registration
were amortized, on a straight-line basis, through October, 1997 for the
Massachusetts Intermediate Tax Exempt Bond Fund and the Intermediate Tax
Exempt Bond Fund and through December, 2000 for the Small Cap
Tax-Sensitive Equity Fund and the Tax-Sensitive Equity Fund.
(2) Distributions to Shareholders:
Distributions on shares of the Bond Funds are declared daily from net
investment income and distributed monthly. Dividends from net investment
income, if any, will be distributed at least annually for the Small Cap
Tax-Sensitive Equity Fund and the Tax-Sensitive Equity Fund. Distributions
on capital gains, if any, will be distributed annually by all of the
Funds. Distributions from net investment income and capital gains, if any,
are automatically reinvested in additional shares of the applicable Fund
unless the shareholder elects to receive them in cash. Distributions 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. Permanent book and tax differences relating to shareholder
distributions will result in reclassifications to paid-in capital.
(3) Investment Advisory Fee:
The investment advisory fee paid to Standish, Ayer & Wood, Inc. (SA&W) for
overall investment advisory and administrative services, and general
office facilities, is paid at the following annual rates of each Fund's
average daily net assets: 0.40% for the Massachusetts Intermediate Tax
Exempt Bond Fund and the Intermediate Tax Exempt Bond Fund, 0.60% for the
Small Cap Tax-Sensitive Equity Fund and 0.50% for the Tax-Sensitive Equity
Fund. For the six months ended March 31, 1998, SA&W voluntarily agreed to
limit the total Fund operating expenses (excluding litigation,
indemnification and other extraordinary expenses) to the following
percentages of average daily net assets: 0.65% for the Massachusetts
Intermediate Tax Exempt Bond Fund and the Intermediate Tax Exempt Bond
Fund; 0.75% for the Small Cap Tax-Sensitive Equity Fund; and 0.50% for the
Tax-Sensitive Equity Fund. For the six months ended March 31, 1998, SA&W
voluntarily waived $19,847, $12,331, $53,920 and $45,277 of its advisory
fee to the Massachusetts Tax Exempt Bond Fund, Intermediate Tax Exempt
Bond Fund, Small Cap Tax-Sensitive Equity Fund and Tax-Sensitive Equity
Fund, respectively, and reimbursed operating expenses of $15,452 for the
Tax-Sensitive Equity Fund which is reflected as a reduction of expenses in
the Tax Sensitive Equity Fund's Statement of Operations. These agreements
are voluntary and temporary and may be discontinued or revised by SA&W at
any time. The Funds pay no compensation directly to the Trust's Trustees
who are affiliated with SA&W or to its officers, all of whom receive
remuneration for their services to the Funds from SA&W. Certain of the
Trustees and officers of the Trust are directors or officers of SA&W.
30
<PAGE>
Standish, Ayer & Wood Investment Trust
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
(4) Purchases and Sales of Investments:
Cost of purchases and proceeds from sales of investments, other than
short-term obligations, were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 1998 September 30, 1997
-------------------------------- -------------------------------
Purchases Sales Purchases Sales
---------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Massachusetts Intermediate Tax Exempt Bond Fund $16,343,316 $10,580,711 $14,344,251 $8,536,805
================ =============== =============== ===============
Intermediate Tax Exempt Bond Fund $45,773,492 $26,653,466 $44,667,863 $24,936,103
================ =============== =============== ===============
Small Cap Tax-Sensitive Equity Fund $42,066,637 $22,812,636 $33,633,673 $16,657,415
================ =============== =============== ===============
Tax-Sensitive Equity Fund $15,912,485 $2,365,624 $8,248,008 $1,571,491
================ =============== =============== ===============
</TABLE>
(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 each Fund's shares were as follows:
<TABLE>
<CAPTION>
Massachusetts Intermediate Tax Exempt Six Months Ended Year Ended
Bond Fund March 31, 1998 September 30, 1997
------------------------------- ---------------------------
<S> <C> <C>
Shares sold 467,710 664,860
Shares issued to shareholders in
payment of distributions declared 17,519 30,459
Shares redeemed (156,272) (440,478)
=============================== ===========================
Net increase 328,957 254,841
=============================== ===========================
Intermediate Tax Exempt Bond Fund
Shares sold 1,166,158 1,093,993
Shares issued to shareholders in
payment of distributions declared 32,492 38,642
Shares redeemed (358,850) (361,805)
=============================== ===========================
Net increase 839,800 770,830
=============================== ===========================
</TABLE>
31
<PAGE>
Standish, Ayer & Wood Investment Trust
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
Small Cap Tax-Sensitive Equity Fund March 31, 1998 September 30, 1997
------------------------------ -------------------------
<S> <C> <C>
Shares Sold 710,082 763,163
Shares issued to shareholders in
payment of distributions declared 5,771 387
Shares redeemed (38,072) (51,613)
------------------------------ -------------------------
Net increase 677,781 711,937
============================== =========================
Tax-Sensitive Equity Fund
Shares Sold 392,660 244,525
Shares issued to shareholders in
payment of distributions declared 1,326 2,135
Shares redeemed (25,689) (3,376)
============================== =========================
Net increase 368,297 243,284
============================== =========================
</TABLE>
At March 31, 1998, the Massachusetts Intermediate Tax Exempt Bond Fund had
two shareholders of record owning approximately 29% and 10% of the Fund's
outstanding voting shares. The Intermediate Tax Exempt Bond Fund had two
shareholders of record owning approximately 15% and 12% of the Fund's
outstanding voting shares. The Small Cap Tax-Sensitive Equity Fund and the
Tax-Sensitive Equity Fund each had one shareholder of record owning
approximately 15% and 45% of the respective Fund's outstanding voting
shares.
(6) Federal Income Tax Basis of Investment Securities:
The cost and unrealized appreciation (depreciation) in value of the
investment securities owned at March 31, 1998, as computed on a federal
income tax basis, were as follows:
<TABLE>
<CAPTION>
Gross Gross Net Unrealized
Unrealized Unrealized Appreciation
Aggregate Cost Appreciation Depreciation (Depreciation)
--------------- ---------------- --------------- -----------------
<S> <C> <C> <C> <C>
Massachusetts Intermediate
Tax Exempt Bond Fund $45,775,375 $1,332,689 $26,465 $1,306,224
Intermediate Tax Exempt Bond
Fund $72,017,498 $2,331,345 $60,833 $2,270,512
Small Cap Tax-Sensitive
Equity Fund $42,566,206 $12,014,687 $522,604 $11,492,083
Tax-Sensitive Equity Fund $22,783,137 $6,839,939 $53,201 $6,786,738
</TABLE>
32
<PAGE>
(7) Financial Instruments:
In general, the following instruments are used for hedging purposes as
described below. However, these instruments may also be used to seek to
enhance potential gain in circumstances where hedging is not involved. The
nature, risks and objectives of these investments are set forth more fully
in the Fund's Prospectus and Statement of Additional Information.
The Funds may trade the following financial instruments with off-balance
sheet risk:
Futures contracts
The Funds may enter into financial futures contracts for the delayed sale
or delivery of securities or contracts based on financial indices at a
fixed price on a future date. Pursuant to margin requirements, the Funds
deposit either in cash or securities in an amount equal to a certain
percentage of the contract amount. Subsequent payments are made or
received by the Funds each day, dependent on the daily fluctuations in the
value of the underlying security or index, and are recorded for financial
statement purposes as unrealized gains or losses by each Fund. 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 a Fund's exposure to the underlying instrument, while
selling futures tends to decrease a Fund's exposure to the underlying
instrument or hedge other Fund investments. In addition, there is the risk
that a Fund may not be able to enter into a closing transaction because of
an illiquid secondary market. Losses may arise if there is an illiquid
secondary market or if the counterparties do not perform under the
contracts terms. The Funds enter into financial futures transactions
primarily to manage their exposure to certain markets and to changes in
securities prices and, with respect to the Small Cap Tax-Sensitive Equity
Fund and the Tax-Sensitive Equity Fund, to changes in foreign currencies.
Gains and losses are realized upon the expiration or closing of the
futures contracts.
At March 31, 1998, the Funds had no open futures contracts.
Since the Massachusetts Intermediate Tax Exempt Bond Fund may invest a
substantial portion of its assets in issuers located in one state, it will
be more susceptible to factors adversely affecting issuers of that state
than would be a comparable general tax-exempt mutual fund.
(8) Delayed Delivery Transactions:
The Bond Funds may purchase securities on a when-issued or forward
commitment basis. Payment and delivery may take place a month or more
after the date of the transactions. The price of the underlying securities
and the date when the securities will be delivered and paid for are fixed
at the time the transaction is negotiated. The Funds either segregate on
their records, or instruct the custodian to segregate, securities having a
value at least equal to the amount of the purchase commitment.
At March 31, 1998, the Massachusetts Intermediate Tax Exempt Bond Fund had
entered into the following delayed delivery transactions:
<TABLE>
<CAPTION>
Type Security Settlement Date Trade Amount
------------ ----------------------------------------- ---------------- ----------------
<S> <C> <C> <C>
Buy Massachusetts St. Industrial Finance 05/05/98 $762,272
Agency ================
</TABLE>
33
<PAGE>
Delayed Delivery Transactions--continued
At March 31, 1998, the Intermediate Tax Exempt Bond Fund had entered into
the following delayed delivery transactions:
<TABLE>
<CAPTION>
Type Security Settlement Date Trade Amount
------------ ----------------------------------------- ---------------- ---------------
<S> <C> <C> <C>
Buy Alabama St. Docks 05/29/98 $1,026,400
Buy Austin TX Utilities Systems 08/17/98 1,041,150
Buy CA Housing Authority 05/06/98 500,000
Buy Kansas St. Tpk Authority 06/04/98 520,440
Buy Pensacola FL Airport 07/07/98 387,140
===============
$3,475,130
===============
</TABLE>
At March 31, 1998, the Small Cap Tax Sensitive Equity Fund and the Tax
Sensitive Equity Fund were not party to any delayed delivery transactions.
34
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