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Previous: STANDISH AYER & WOOD INVESTMENT TRUST, N-30D, 1999-05-25 |
Next: CHESAPEAKE BIOLOGICAL LABORATORIES INC, 8-K, 1999-05-25 |
STANDISH, AYER & WOOD INVESTMENT TRUST
STANDISH MASSACHUSETTS INTERMEDIATE TAX EXEMPT BOND
STANDISH TAX-SENSITIVE EQUITY FUND
STANDISH SMALL CAP TAX-SENSITIVE EQUITY FUND
STANDISH TAX-SENSITIVE EQUITY FUND
Financial Statements for the
Six Months Ended March 31, 1999
(Unaudited)
STANDISH, AYER & WOOD INVESTMENT TRUST
Financial Statements
Table of Contents
Page
Selected Financial Information.................................3
Statements of Assets and Liabilities...........................4
Statements of Operations.......................................5
Statements of Changes in Net Assets:
Standish Massachusetts Intermediate Tax Exempt Bond Fund...6
Standish Intermediate Tax Exempt Bond Fund.................7
Standish Small Cap Tax-Sensitive Equity Fund...............8
Standish Tax-Sensitive Equity Fund.........................9
Financial Highlights:
Standish Massachusetts Intermediate Tax Exempt Bond Fund..10
Standish Intermediate Tax Exempt Bond Fund................11
Standish Small Cap Tax-Sensitive Equity Fund..............12
Standish Tax-Sensitive Equity Fund........................13
Schedule of Investments:
Standish Massachusetts Intermediate Tax Exempt Bond Fund..14
Standish Intermediate Tax Exempt Bond Fund................18
Standish Small Cap Tax-Sensitive Equity Fund..............23
Standish Tax-Sensitive Equity Fund........................27
Notes to Financial Statements.................................30
<PAGE>
Standish, Ayer & Wood Investment Trust
Selected Financial Information
For the Six Months Ended
March 31, 1999 (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 $ 21.78 $ 22.30 $ 25.89 $ 32.50
Income from investment operations
Net investment income * 0.45 0.47 (0.08) 0.10
Net realized and unrealized gain (loss) (0.19) (0.24) 11.30 4.95
--------- -------- --------- ---------
Total from investment operations 0.26 0.23 11.22 5.05
--------- -------- --------- ---------
Less distributions declared to shareholders
From net investment income (0.45) (0.47) -- (0.11)
From net realized gains -- (0.20) -- --
--------- -------- --------- ---------
Net Asset Value - End of Period $ 21.59 $ 21.86 $ 37.11 $ 37.44
========= ======== ========= =========
Total Return 1.21% 1.02% 43.20% 15.53%
Ratios to average net assets
Expenses * 0.65%+ 0.63%+ 0.79%+ 0.50%+
Net investment income * 4.19%+ 4.22%+ (0.53)%+ 0.61%+
Net Assets, End of Period (000's omitted) $ 60,660 $88,070 $119,125 $ 40,716
Portfolio turnover 0%** 7% 81% 26%
</TABLE>
- -----------------------
* The investment adviser voluntarily did not impose a portion of its fee and/or
reimbursed the Funds for a portion of their operating expenses. Please refer
to the Financial Highlights for additional disclosure regarding these ratios.
** Amount is less than 1%.
+ 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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Massachusetts
Intermediate Intermediate Small Cap Tax-
Tax Exempt Tax Exempt Tax-Sensitive Sensitive
Bond Fund Bond Fund Equity Fund Equity Fund
-------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
Assets
Investments at value (Note 1A)* $ 58,015,133 $ 87,485,950 $ 119,269,655 $ 40,696,024
Receivable for investments sold -- 260,083 2,732,398 --
Receivable for Fund shares sold 2,000,000 300,000 -- 5,000
Interest and dividends receivable 878,446 1,336,250 11,815 39,548
Receivable for variation margin on open
financial futures contracts -- -- 17,850 --
Receivable for foreign dividend tax
reclaims -- -- -- 332
Deferred organization costs (Note 1E) -- -- 6,643 6,652
Prepaid expenses 418 424 346 275
------------- ------------- --------------- -------------
Total assets 60,893,997 89,382,707 122,038,707 40,747,831
Liabilities
Payable for investments purchased 70,487 1,049,120 2,888,056 --
Payable for Fund shares redeemed 8,900 -- -- 12,574
Distribution payable 113,215 165,981 -- --
Due to custodian 10,748 68,744 -- --
Accrued trustees' fees and expenses (Note 3) 1,929 1,967 1,932 1,270
Accrued accounting, custody and
transfer agent fees 12,905 14,738 12,997 9,089
Accrued expenses and other liabilities 15,965 12,359 10,931 8,988
------------- ------------- --------------- -------------
Total liabilities 234,149 1,312,909 2,913,916 31,921
------------- ------------- --------------- -------------
Net Assets $ 60,659,848 $ 88,069,798 $ 119,124,791 $ 40,715,910
============= ============= =============== =============
Net Assets consist of:
Paid-in capital $ 59,241,539 $ 86,103,270 $ 88,175,700 $ 37,192,480
Accumulated undistributed net investment
income (loss) 1,180 5,264 (242,274) 62,272
Accumulated net realized gain (loss) (117,439) 216,934 7,244,216 (1,632,117)
Net unrealized appreciation 1,534,568 1,744,330 23,947,149 5,093,275
------------- ------------- --------------- -------------
Total Net Assets $ 60,659,848 $ 88,069,798 $ 119,124,791 $ 40,715,910
============= ============= =============== =============
Shares of beneficial interest outstanding 2,809,343 4,029,180 3,209,699 1,087,383
============= ============= =============== =============
Net Asset Value, offering price and
redemption price per share
(Net Assets/Shares outstanding) $ 21.59 $ 21.86 $ 37.11 $ 37.44
============= ============= =============== =============
* Identified cost of investments $ 56,480,565 $ 85,741,620 $ 95,381,416 $ 35,602,749
============= ============= =============== =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
Standish, Ayer & Wood Investment Trust
Statements of Operations
Six Months Ended March 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Massachusetts
Intermediate Intermediate Small Cap
Tax Exempt Tax Exempt Tax-Sensitive Tax-Sensitive
Bond Fund Bond Fund Equity Fund Equity Fund
--------------- --------------- --------------- -------------
<S> <C> <C> <C> <C>
Investment Income
Interest income $1,358,411 $1,987,196 $ 56,829 $ 17,810
Dividend income -- -- 63,427 190,153
----------- ----------- ------------- ------------
Total investment income 1,358,411 1,987,196 120,256 207,963
Expenses
Investment advisory fee (Note 3) 112,306 163,808 274,250 93,607
Accounting, custody and transfer agent fees 49,994 58,056 59,685 35,033
Audit services 10,371 14,978 12,870 12,005
Trustees' fees and expenses (Note 3) 3,716 3,980 4,711 2,344
Insurance expense 2,643 3,092 2,593 1,695
Legal fees 2,397 2,243 2,003 127
Registration fees 2,341 8,972 12,029 6,701
Administration fees 1,730 2,506 2,700 1,120
Amortization of organization expenses (Note 1E) -- -- 1,882 1,882
Miscellaneous 1,081 1,564 3,411 3,449
----------- ----------- ------------- ------------
Total expenses 186,579 259,199 376,134 157,963
Deduct --
Waiver of investment advisory fee (Note 3) (4,082) -- (13,604) (64,354)
----------- ----------- ------------- ------------
Net expenses 182,497 259,199 362,530 93,609
----------- ----------- ------------- ------------
Net investment income (loss) 1,175,914 1,727,997 (242,274) 114,354
----------- ----------- ------------- ------------
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss)
Investment security transactions 159,048 486,627 8,797,879 (784,184)
Financial futures contracts -- -- (102,176) --
----------- ----------- ------------- ------------
Net realized gain (loss) 159,048 486,627 8,695,703 (784,184)
Change in unrealized appreciation (depreciation)
Investment securities (671,014) (1,389,314) 24,604,886 5,148,200
Financial futures contracts -- -- 58,910 --
----------- ----------- ------------- ------------
Net change in unrealized appreciation
(depreciation) (671,014) (1,389,314) 24,663,796 5,148,200
----------- ----------- ------------- ------------
Net realized and unrealized gain (loss) (511,966) (902,687) 33,359,499 4,364,016
----------- ----------- ------------- ------------
Net Increase in Net Assets from Operations $ 663,948 $ 825,310 $ 33,117,225 $ 4,478,370
=========== =========== ============= ============
</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
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
-------------------------- ------------------------
<S> <C> <C>
Increase (decrease) in Net Assets
From Investment Operations
Net investment income $ 1,175,914 $ 1,972,853
Net realized gain 159,048 138,343
Change in net unrealized appreciation (depreciation) (671,014) 1,169,361
-------------- --------------
Net increase in Net Assets from Investment Operations 663,948 3,280,557
-------------- --------------
Distributions to Shareholders
From net investment income (1,175,914) (1,972,853)
-------------- --------------
Total distributions to shareholders (1,175,914) (1,972,853)
-------------- --------------
Fund Share (principal) Transactions (Note 5)
Net proceeds from sale of shares 9,872,450 18,573,069
Value of shares issued to shareholders in payment of
distributions declared 501,884 831,218
Cost of shares redeemed (2,802,576) (5,512,563)
-------------- --------------
Increase in Net Assets from Fund share transactions 7,571,758 13,891,724
-------------- --------------
Total Increase in Net Assets 7,059,792 15,199,428
Net Assets
At beginning of period 53,600,056 38,400,628
-------------- --------------
At end of period (including accumulated undistributed net
investment income of $1,180 and $1,180, respectively) $ 60,659,848 $ 53,600,056
============== ==============
</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
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
------------------------ ----------------------
<S> <C> <C>
Increase (decrease) in Net Assets
From Investment Operations
Net investment income $ 1,727,997 $ 2,894,070
Net realized gain 486,627 589,639
Change in net unrealized appreciation (depreciation) (1,389,314) 1,186,782
--------------- ---------------
Net increase in Net Assets from Investment Operations 825,310 4,670,491
--------------- ---------------
Distributions to Shareholders
From net investment income (1,730,999) (2,894,070)
From net realized gain (723,687) (151,703)
--------------- ---------------
Total distributions to shareholders (2,454,686) (3,045,773)
--------------- ---------------
Fund Share (principal) Transactions (Note 5)
Net proceeds from sale of shares 21,196,431 40,952,159
Value of shares issued to shareholders in payment of
distributions declared 1,466,721 1,514,041
Cost of shares redeemed (11,543,154) (18,235,034)
--------------- ---------------
Increase in Net Assets from Fund share transactions 11,119,998 24,231,166
--------------- ---------------
Total Increase in Net Assets 9,490,622 25,855,884
Net Assets
At beginning of period 78,579,176 52,723,292
--------------- ---------------
At end of period (including accumulated undistributed net
investment income of $5,264 and $8,266, respectively) $ 88,069,798 $ 78,579,176
=============== ===============
</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
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
-------------------------- ------------------------
<S> <C> <C>
Increase (decrease) in Net Assets
From Investment Operations
Net investment loss $ (242,274) $ (246,456)
Net realized gain (loss) 8,695,703 (1,446,306)
Change in unrealized appreciation (depreciation) 24,663,796 (9,201,341)
---------------- ---------------
Net increase (decrease) in Net Assets from Investment
Operations 33,117,225 (10,894,103)
---------------- ---------------
Distributions to Shareholders
From net investment income -- (7,582)
From net realized gains on investments -- (170,781)
---------------- ---------------
Total distributions to shareholders -- (178,363)
---------------- ---------------
Fund Share (principal) Transactions (Note 5)
Net proceeds from sale of shares 24,413,608 54,482,660
Value of shares issued to shareholders in payment of
distributions declared -- 164,809
Cost of shares redeemed (4,864,324) (9,877,238)
---------------- ---------------
Increase in Net Assets from Fund share transactions 19,549,284 44,770,231
---------------- ---------------
Total Increase in Net Assets 52,666,509 33,697,765
Net Assets
At beginning of period 66,458,282 32,760,517
---------------- ---------------
At end of period (including accumulated undistributed net
investment income (loss) of ($242,274) and $0,
respectively) $ 119,124,791 $ 66,458,282
================ ===============
</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
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
-------------------------- ------------------------
<S> <C> <C>
Increase (decrease) in Net Assets
From Investment Operations
Net investment income $ 114,354 $ 199,875
Net realized loss (784,184) (726,922)
Change in unrealized appreciation (depreciation) 5,148,200 (3,234,659)
-------------- --------------
Increase (decrease) in Net Assets from Investment
Operations 4,478,370 (3,761,706)
-------------- --------------
Distributions to Shareholders
From net investment income (115,061) (161,305)
-------------- --------------
Total distributions to shareholders (115,061) (161,305)
-------------- --------------
Fund Share (principal) Transactions (Note 5)
Net proceeds from sale of shares 11,948,011 26,303,287
Value of shares issued to shareholders in payment of
distributions declared 96,993 139,790
Cost of shares redeemed (7,351,009) (3,680,400)
-------------- --------------
Increase in Net Assets from Fund share transactions 4,693,995 22,762,677
-------------- --------------
Total Increase in Net Assets 9,057,304 18,839,666
Net Assets
At beginning of period 31,658,606 12,818,940
-------------- --------------
At end of period (including accumulated undistributed net
investment income of $62,272 and $62,979, respectively) $ 40,715,910 $ 31,658,606
============== ==============
</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>
Six Months
Ended
March 31, Year Ended September 30, Year Ended December 31,
1999 ------------------------------------ --------------------------------------
(Unaudited) 1998 1997 1996 (1) 1995 1994 1993
------------- ----------- ----------- ---------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 21.78 $ 21.18 $ 20.63 $ 21.02 $ 19.55 $ 21.31 $ 20.32
---------- ---------- ---------- ---------- ---------- ----------- ----------
Investment Operations
Net investment income ** 0.45 0.94 0.97 0.74 0.94 0.94 0.92
Net realized and unrealized gain
(loss) on investments (0.19) 0.60 0.55 (0.39) 1.47 (1.75) 1.13
---------- ---------- ---------- ---------- ---------- ----------- ----------
Total from investment operations 0.26 1.54 1.52 0.35 2.41 (0.81) 2.05
---------- ---------- ---------- ---------- ---------- ----------- ----------
Less distributions to shareholders
From net investment income (0.45) (0.94) (0.97) (0.74) (0.94) (0.94) (0.92)
From net realized gains on
investments -- -- -- -- -- (0.01) (0.14)
---------- ---------- ---------- ---------- ---------- ----------- ----------
Total distributions to shareholders (0.45) (0.94) (0.97) (0.74) (0.94) (0.95) (1.06)
---------- ---------- ---------- ---------- ---------- ----------- ----------
Net Asset Value, End of Period $ 21.59 $ 21.78 $ 21.18 $ 20.63 $ 21.02 $ 19.55 $ 21.31
========== ========== ========== ========== ========== =========== ==========
Total Return 1.21% 7.45% 7.55% 1.70% 12.64% (3.84)% 10.24%
Ratios/Supplemental Data
Expenses (to average daily net
assets) ** 0.65%+ 0.65% 0.65% 0.65%+ 0.65% 0.65% 0.65%
Net investment income (to average
daily net assets) ** 4.19%+ 4.40% 4.67% 4.78%+ 4.71% 4.67% 4.35%
Portfolio Turnover 0%* 19% 25% 35% 77% 84% 94%
Net Assets, End of Period (000's
omitted) $ 60,660 $ 53,600 $ 38,401 $ 32,136 $ 32,565 $ 27,776 $ 29,627
</TABLE>
- -------------------------------------------
** For the periods indicated, 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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income per share $ 0.45 $ 0.92 $ 0.95 $ 0.72 $ 0.95 $ 0.91 $ 0.86
Ratios (to average net assets):
Expenses 0.67%+ 0.77% 0.75% 0.73%+ 0.72% 0.78% 0.95%
Net investment income 4.17%+ 4.28% 4.57% 4.70%+ 4.64% 4.54% 4.05%
</TABLE>
(1) For the nine months ended September 30, 1996.
+ Computed on an annualized basis.
* Amount is less than 1%.
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
Ended
March 31, Year Ended September 30, Year Ended December 31,
1999 ----------------------------------- -----------------------------------
(Unaudited) 1998 1997 1996 (1) 1995 1994 1993
-------------- ---------- ---------- --------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 22.30 $ 21.78 $ 21.12 $ 21.40 $ 19.91 $ 21.44 $ 20.42
---------- ---------- ---------- ---------- ---------- ----------- ----------
Investment Operations
Net investment income * 0.47 0.96 1.01 0.79 0.98 0.95 0.93
Net realized and unrealized gain
(loss) on investments (0.24) 0.58 0.74 (0.28) 1.49 (1.51) 1.24
---------- ---------- ---------- ---------- ---------- ----------- ----------
Total from investment operations 0.23 1.54 1.75 0.51 2.47 (0.56) 2.17
---------- ---------- ---------- ---------- ---------- ----------- ----------
Less distributions to shareholders
From net investment income (0.47) (0.96) (1.01) (0.79) (0.98) (0.95) (0.93)
From net realized gains on
investments (0.20) (0.06) (0.08) -- -- (0.02) (0.22)
---------- ---------- ---------- ---------- ---------- ----------- ----------
Total distributions to shareholders (0.67) (1.02) (1.09) (0.79) (0.98) (0.97) (1.15)
---------- ---------- ---------- ---------- ---------- ----------- ----------
Net Asset Value, End of Period $ 21.86 $ 22.30 $ 21.78 $ 21.12 $ 21.40 $ 19.91 $ 21.44
========== ========== ========== ========== ========== =========== ==========
Total Return 1.02% 7.24% 8.27% 2.43% 12.65% (2.68)% 10.78%
Ratios/Supplemental Data
Expenses (to average daily net
assets)* 0.63%+ 0.65% 0.65% 0.65%+ 0.65% 0.65% 0.65%
Net investment income (to average
daily net assets)* 4.22%+ 4.37% 4.74% 4.99%+ 4.75% 4.62% 4.36%
Portfolio Turnover 7% 29% 23% 43% 140% 157% 126%
Net Assets, End of Period (000's
omitted) $ 88,070 $ 78,579 $ 52,723 $ 34,843 $ 32,865 $ 20,514 $ 17,132
</TABLE>
- -------------------------------------------
* For the periods indicated, 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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income per share -- $ 0.95 $ 0.99 $ 0.76 $ 0.95 $ 0.90 $ 0.85
Ratios (to average net assets):
Expenses -- 0.69% 0.74% 0.82%+ 0.79% 0.89% 1.15%
Net investment income -- 4.33% 4.65% 4.82%+ 4.61% 4.38% 3.86%
</TABLE>
(1) For the nine months ended September 30, 1996.
+ Computed on an annualized basis.
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>
Six Months
Ended
March 31, Year Ended September 30,
1999 --------------------------------------------------
(Unaudited) 1998 (1) 1997 1996 (2)
------------------- --------------- --------------- ------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 25.89 $ 32.61 $ 23.57 $ 20.00
----------- --------- ---------- ---------
Investment Operations
Net investment income (loss) * (0.08) (0.15) 0.02 0.04
Net realized and unrealized gain (loss) on
investments 11.30 (6.42) 9.05 3.55
----------- --------- ---------- ---------
Total from investment operations 11.22 (6.57) 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 $ 37.11 $ 25.89 $ 32.61 $ 23.57
=========== ========= ========== =========
Total Return 43.20% (20.16)% 38.50% 17.95%
Ratios/Supplemental Data
Expenses (to average daily net assets)* 0.79%+ 0.75% 0.21% 0.00%+
Net investment income (loss) (to average daily
net assets) * (0.53)%+ (0.51)% 0.08% 0.41%+
Portfolio Turnover 81% 102% 102% 57%
Net Assets, End of Period (000's omitted) $ 119,125 $ 66,458 $ 32,761 $ 6,896
</TABLE>
- -----------------------------------------------------
* For the periods indicated, 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:
<TABLE>
<S> <C> <C> <C> <C>
Net investment loss per share $ (0.08) $ (0.22) $ (0.16) $ (0.28)
Ratios (to average daily net assets):
Expenses 0.82%+ 0.97% 1.24% 3.45%+
Net investment loss (0.56)%+ (0.73)% (0.95)% (3.04)%+
</TABLE>
(1) Calculated based on average shares outstanding.
(2) For the period January 2, 1996, commencement of operations, to September 30,
1996.
+ Computed on an annualized basis.
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>
Six Months
Ended
March 31, Year Ended September 30,
1999 -----------------------------------------------
(Unaudited) 1998 (1) 1997 (1) 1996 (2)
------------------- ---------------- --------------- ---------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 32.50 $ 35.24 $ 23.60 $ 20.00
---------- ---------- --------- --------
Investment Operations
Net investment income * 0.10 0.29 0.39 0.28
Net realized and unrealized gain (loss) on
investments 4.95 (2.77) 11.58 3.50
---------- ---------- --------- --------
Total from investment operations 5.05 (2.48) 11.97 3.78
---------- ---------- --------- --------
Less distributions to shareholders
From net investment income (0.11) (0.26) (0.33) (0.18)
---------- ---------- --------- --------
Total distributions to shareholders (0.11) (0.26) (0.33) (0.18)
---------- ---------- --------- --------
Net Asset Value, End of Period $ 37.44 $ 32.50 $ 35.24 $ 23.60
========== ========== ========= ========
Total Return 15.53% (7.13)% 51.19% 18.97%
Ratios/Supplemental Data
Expenses (to average daily net assets)* 0.50%+ 0.50% 0.20% 0.00%+
Net investment income (to average daily net
assets)* 0.61%+ 0.78% 1.31% 2.27%+
Portfolio Turnover 26% 33% 25% 17%
Net Assets, End of Period (000's omitted) $ 40,716 $ 31,659 $ 12,819 $ 2,843
</TABLE>
- -------------------------------------------------------
* For the periods indicated, 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:
<TABLE>
<S> <C> <C> <C> <C>
Net investment income (loss) per share $ 0.04 $ 0.09 $ (0.07) $ (0.36)
Ratios (to average daily net assets):
Expenses 0.84%+ 1.05% 1.73% 5.15%+
Net investment income (loss) 0.27%+ 0.23% (0.22)% (2.88)%+
</TABLE>
(1) Calculated based on average shares outstanding.
(2) For the period January 2, 1996, commencement of operations, to September 30,
1996.
+ Computed on an annualized basis.
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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BONDS -- 95.3%
General Obligations -- 22.3%
Amesbury MA State Qualified 5.30% 06/01/2003 $ 750,000 $ 782,813
Brockton MA State Qualified 5.55% 12/15/2003 270,000 286,200
Brockton MA State Qualified 5.65% 12/15/2004 300,000 321,000
Brockton MA State Qualified 5.70% 06/15/2002 160,000 167,600
Brockton MA State Qualified 6.13% 06/15/2018 250,000 271,563
Commonwealth of Massachusetts 7.50% 06/01/2004 700,000 798,000
Commonwealth of Massachusetts 5.40% 11/01/2006 600,000 647,250
Commonwealth of Massachusetts 5.00% 11/01/2009 1,000,000 1,043,750
Lawrence MA State Qualified 5.00% 09/15/2002 250,000 260,000
Lawrence MA State Qualified 5.13% 09/15/2003 1,500,000 1,578,750
Mass St College Bldg Authority Project 7.50% 05/01/2006 500,000 598,750
Mass St College Bldg Authority Project 7.50% 05/01/2007 450,000 545,625
Mass State Conservation Loan 5.25% 08/01/2009 1,100,000 1,175,625
Massachusetts 6.00% 11/01/2011 850,000 963,688
Massachusetts Bay Transportation Authority 6.00% 03/01/2005 550,000 604,313
Massachusetts Bay Transportation Authority 5.25% 03/01/2007 775,000 825,375
Massachusetts St Govt Ld Bk 5.25% 02/01/2007 900,000 958,500
Peabody MA 5.00% 08/01/2008 500,000 529,375
University of Mass Building Authority State Guarantee 6.63% 05/01/2007 1,000,000 1,160,000
---------------
Total General Obligations (Cost $12,980,524) 13,518,177
---------------
Housing Revenue -- 9.7%
Mass HFA Residential Development FNMA 6.25% 11/15/2012 1,000,000 1,076,250
Mass HFA Residential Development FNMA 6.88% 11/15/2011 1,000,000 1,087,500
Mass HFA Residential Development FNMA 6.88% 11/15/2011 1,000,000 1,087,500
Mass HFA SFM 6.50% 12/01/2014 10,000 10,250
Massachusetts St Housing Finance Agency 6.30% 10/01/2013 950,000 1,014,125
Massachusetts St Housing Finance Agency 5.75% 12/01/2017 60,000 60,000
Massachusetts St Housing Finance Agency MFU FNMA 6.25% 11/15/2012 1,000,000 1,076,250
Virgin Islands HFA 4.00% 06/01/2000 500,000 503,125
---------------
Total Housing Revenue (Cost $5,809,637) 5,915,000
---------------
Industrial Development -- 1.5%
City of Boston Industrial Development Finance Authority 7.38% 05/15/2015 865,000 923,388
---------------
Total Industrial Development (Cost $928,920) 923,388
---------------
Insured Bonds -- 32.3%
Brockton MA MBIA 6.00% 04/01/2007 1,010,000 1,127,413
Chelsea MA School District AMBAC 7.00% 06/15/2003 265,000 296,794
Chelsea MA School District AMBAC 6.00% 06/15/2004 750,000 821,250
Holyoke MA FSA 6.00% 06/15/2006 600,000 667,500
Holyoke MA FSA 6.00% 06/15/2007 800,000 895,000
Holyoke MA FSA 5.25% 08/01/2008 485,000 519,556
Mass HEFA Cath Health AMBAC 5.00% 11/15/2007 300,000 314,625
Mass HEFA Hallmark Health FSA 5.25% 07/01/2007 1,000,000 1,063,750
</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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured Bonds (continued)
Mass HEFA Harvard Pilgrim FSA 5.25% 07/01/2006 $ 1,100,000 $ 1,170,125
Mass HEFA Mass Eye and Ear ACA 5.00% 07/01/2005 660,000 683,925
Mass HEFA NE Medical FGIC 6.00% 07/01/2003 500,000 540,000
Mass HEFA Northeastern University MBIA 5.50% 10/01/2009 500,000 546,250
Mass HEFA Partners FSA 5.50% 07/01/2007 635,000 686,594
Mass IFA Suffolk University AMBAC 5.50% 07/01/2008 500,000 544,375
Mass St Turnpike Authority AMBAC 5.13% 01/01/2009 775,000 819,563
Massachusetts Bay Transportation Authority FSA 5.25% 03/01/2012 500,000 538,750
Massachusetts IFA Tufts University MBIA 5.50% 02/15/2005 935,000 1,003,956
Massachusetts Port Authority MBIA 5.75% 07/01/2007 500,000 545,625
Nantucket MA MBIA 4.75% 07/01/2007 250,000 258,438
Nantucket MA MBIA 6.00% 07/15/2007 500,000 560,000
New Bedford MA AMBAC 6.00% 10/15/2005 575,000 638,250
Puerto Rico Commonwealth FSA 5.50% 07/01/2012 1,400,000 1,540,000
Puerto Rico Commonwealth Highway & Transportation
Authority MBIA 5.50% 07/01/2013 1,140,000 1,252,575
Springfield MA AMBAC 6.25% 08/01/2006 1,000,000 1,130,000
Springfield MA FSA 5.65% 09/01/2007 700,000 767,375
Worcester Mass Municipal Purp Ln FSA 5.25% 07/01/2007 610,000 651,175
---------------
Total Insured Bonds (Cost $19,084,574) 19,582,864
---------------
Lease Revenue -- 1.3%
Puerto Rico Housing Bank Appropriation 5.13% 12/01/2005 750,000 784,688
---------------
Total Lease Revenue (Cost $742,636) 784,688
---------------
LOC GIC -- 4.2%
Mass IFA Amesbury LOC: State Street 5.35% 09/01/2005 365,000 372,300
Mass IFA Human Development LOC: Shawmut 6.25% 04/15/2009 720,000 738,000
Mass IFA Orchard Cove Project LOC: Fleet National Bank 5.00% 05/01/2026 415,000 423,300
Northborough MA IFA LOC: Bank of Boston 5.75% 09/01/2002 1,015,000 1,021,750
---------------
Total LOC GIC (Cost $2,520,232) 2,555,350
---------------
PreRefunded -- 0.7%
Mass Bay Transportation Authority 7.00% 03/01/2022 65,000 70,281
Mass HEFA Melrose Wakefield Hospital 6.35% 07/01/2006 310,000 349,138
---------------
Total PreRefunded (Cost $381,030) 419,419
---------------
Revenue Bonds -- 19.5%
MA DFA Williston School 6.00% 10/01/2013 500,000 499,375
Mass Educational Loan Authority AMBAC 5.25% 07/01/1999 350,000 351,313
Mass HEFA Cape Cod Healthcare 5.13% 11/15/2009 600,000 613,500
Mass HEFA Central New England Health Systems 5.75% 08/01/2003 500,000 509,375
Mass HEFA Jordan Hospital 5.00% 10/01/2005 325,000 333,125
Mass HEFA Jordan Hospital 5.00% 10/01/2008 665,000 677,469
Mass HEFA Milford Hospital 5.25% 07/15/2007 600,000 616,500
Mass HEFA No. Adams Regional Hospital 6.75% 07/01/2009 600,000 662,250
Mass HEFA Youville Hospital FHA Secured 6.13% 02/15/2015 700,000 747,250
</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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenue Bonds (continued)
Mass IFA Berkshire Retirement Development 5.13% 07/01/2018 $ 530,000 $ 535,480
Mass IFA Brooks School 5.60% 07/01/2005 245,000 266,131
Mass IFA Brooks School 5.90% 07/01/2013 410,000 450,488
Mass IFA Clark University 6.45% 07/01/2001 300,000 316,500
Mass IFA Loomis Project 6.50% 07/01/2002 350,000 358,873
Mass IFA Resource Recovery 6.15% 07/01/2002 1,000,000 1,050,000
Mass IFA Resource Recovery Ogden 4.80% 12/01/2004 1,000,000 1,010,000
Mass IFA Wentworth Institute 5.05% 10/01/2005 290,000 295,800
Mass IFA Wentworth Institute 5.10% 10/01/2006 305,000 311,481
Mass Water Resource Authority 7.25% 04/01/2001 200,000 211,212
Mass Water Resource Authority 5.25% 03/01/2013 500,000 510,625
Massachusetts Port Authority 5.75% 07/01/2012 700,000 777,875
Massachusetts State Water Resources Authority 7.00% 04/01/1999 20,000 20,000
Massachusetts Water Pollution Trust 5.25% 02/01/2008 650,000 697,125
---------------
Total Revenue Bonds (Cost $11,521,457) 11,821,747
---------------
Special Revenues -- 3.8%
Massachusetts Grant Anticipation Notes 5.00% 12/15/2005 400,000 419,500
Massachusetts Grant Anticipation Notes 5.00% 12/15/2008 750,000 791,250
Massachusetts St Special Obligation 5.50% 06/01/2013 1,000,000 1,083,750
---------------
Total Special Revenues (Cost $2,311,555) 2,294,500
---------------
TOTAL BONDS (COST $56,280,565) 57,815,133
---------------
SHORT-TERM INVESTMENTS -- 0.3%
Short Term Bonds -- 0.3%
Mass HEFA GS MBIA LOC Suisse 3.20% 07/01/2005+ 200,000 200,000
---------------
Total Short Term Bonds (Cost $200,000) 200,000
---------------
TOTAL SHORT-TERM INVESTMENTS (COST $200,000) 200,000
---------------
TOTAL INVESTMENTS -- 95.6% (COST $56,480,565) $ 58,015,133
Other Assets, Less Liabilities -- 4.4% 2,644,715
---------------
NET ASSETS -- 100% $ 60,659,848
===============
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Massachusetts Intermediate Tax Exempt Bond Fund
Schedule of Investments - March 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Notes to the Schedule of Investments:
ACA - American Capital Access Corp.
AMBAC - American Municipal Bond Assurance Corp
DFA - Development Finance Agency
FGIC - Financial Guaranty Insurance Co.
FHA - Federal Housing Authority
FNMA - Federal National Mortgage Association
FSA - Financial Security Association
GIC - Guaranteed Investment Contract
HEFA - Health & Educational Facilities Authority
HFA - Housing Finance Authority
IFA - Industrial Finance Authority
LOC - Letter of Credit
MBIA - Municipal Bond Insurance Association
MFU - Multi-Family Unit
SFM - Single Family Mortgage
+ Date shown reflects actual maturity date. Security puttable on a daily or
weekly basis.
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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BONDS -- 97.0%
General Obligations -- 20.3%
Alpine Utah School District 5.00% 03/15/2011 $ 25,000 $ 25,906
Alpine Utah School District 5.00% 03/15/2012 1,000,000 1,030,000
California NC 06/101 5.25% 06/01/2012 500,000 525,625
California State 6.60% 02/01/2009 1,000,000 1,182,500
California State 5.00% 12/01/2004 1,400,000 1,489,249
California State 5.00% 02/01/2005 1,000,000 1,058,750
Commonwealth of Massachusetts 7.50% 06/01/2004 500,000 570,000
Commonwealth of Massachusetts 6.00% 11/01/2008 500,000 566,250
Dallas TX 5.00% 02/15/2006 1,000,000 1,052,500
Detroit MI 6.00% 04/01/2000 315,000 322,475
District of Columbia 5.80% 06/01/2004 460,000 487,025
Florida Board of Education 6.00% 06/01/2008 1,000,000 1,132,500
Georgia 6.25% 04/01/2006 1,500,000 1,694,999
Grand Central NY District Management 5.00% 01/01/2006 25,000 26,063
Honolulu HI City & County 5.40% 09/27/2007 500,000 531,875
Hudson County NJ Import Authority 7.60% 08/01/2025 885,000 946,950
King County WA 412 School District 5.25% 12/01/2010 1,495,000 1,586,568
Klein TX Independent School District 5.25% 08/01/2006 1,000,000 1,071,250
Lawrence MA State Qualified 5.38% 09/15/2005 500,000 532,500
Massachusetts 6.00% 11/01/2011 750,000 850,313
New York 5.00% 03/01/2005 15,000 15,731
Northeast TX Independent School District 5.25% 10/01/2008 1,000,000 1,072,500
Tuloso-Midway TX Independent School District 5.75% 08/15/2006 80,000 87,700
-----------------
Total General Obligations (Cost $17,606,101) 17,859,229
-----------------
Housing Revenue -- 10.1%
California Housing Authority 5.05% 02/01/2017 445,000 452,231
California Housing Authority MBIA 5.65% 08/01/2025 290,000 295,438
Colorado HFA Multi Family Insured Mortgage 7.90% 10/01/2000 225,000 235,406
Colorado Housing Finance Agency 7.45% 11/01/2027 400,000 441,500
Florida Housing Finance Agency 0.00% 07/15/2016 405,000 53,663
Hawaii Housing Finance and Development Corp 7.00% 07/01/2031 550,000 582,313
Mass HFA Residential Development FNMA 6.88% 11/15/2011 400,000 435,000
Michigan Housing Development Authority 0.00% 04/01/2015 350,000 51,485
Michigan Housing Development Authority AMBAC 6.40% 04/01/2005 250,000 269,688
New Hampshire Housing Finance Agency 6.60% 01/01/2000 400,000 407,436
New Mexico Mortgage Finance Authority 5.75% 07/01/2014 365,000 371,844
New Mexico Mortgage Finance Authority 6.25% 07/01/2029 1,000,000 1,083,750
New York Mortgage Agency 5.75% 04/01/2004 650,000 689,000
North Carolina Housing Finance Agency 7.60% 03/01/2021 760,000 801,800
Pennsylvania Housing Finance Agency 5.35% 10/01/2008 355,000 365,650
Rhode Island Housing & Mortgage 4.95% 10/01/2016 385,000 390,294
Texas Dept Housing & Community 6.95% 07/01/2023 500,000 532,500
Virginia Housing Development Authority 0.00% 11/01/2017 180,000 34,385
Virginia Housing Development Authority Commission 6.10% 07/01/2001 1,300,000 1,347,124
Washington Housing Finance Agency 7.10% 07/01/2022 70,000 72,888
-----------------
Total Housing Revenue (Cost $8,901,970) 8,913,395
-----------------
</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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Industrial Development -- 4.5%
Alaska Industrial Development and Export Authority 6.20% 04/01/2003 $ 150,000 $ 161,438
Alaska Industrial Development and Export Authority 5.50% 04/01/2001 500,000 516,875
Dayton OH Special Facilities Emery 6.05% 10/01/2009 500,000 538,125
Dayton OH Special Facilities Emery 6.05% 10/01/2009 1,000,000 1,076,250
Eddyville IA Pollution Control Revenue Cargill 5.40% 10/01/2006 500,000 533,750
Hendersonville TN Kroger 5.95% 12/15/2008 420,000 445,200
Murray KY Industrial Development Kroger 7.25% 09/01/2012 350,000 385,875
OH Development Commission ABS Industries 5.45% 06/01/1999 35,000 35,084
Weld County CO Industrial Development Conagra 6.75% 12/15/2001 275,000 291,500
-----------------
Total Industrial Development (Cost $3,854,093) 3,984,097
-----------------
Insured Bonds -- 30.4%
Chicago IL Board of Education AMBAC 6.75% 12/01/2009 465,000 552,188
Chicago IL FGIC 5.25% 01/01/2012 1,000,000 1,049,120
Cow Creek Band Umpqua OR AMBAC 4.25% 07/01/2003 1,000,000 1,017,500
Denver CO Airport MBIA 7.50% 11/15/2006 500,000 585,625
District of Columbia MBIA 5.75% 06/01/2010 25,000 27,500
District of Columbia MBIA 6.00% 06/01/2011 1,275,000 1,431,187
District of Columbia Medlantic Hospital MBIA 7.00% 08/15/2005 500,000 550,625
Florida Gas Utilities FSA 5.00% 12/01/2008 1,000,000 1,061,250
Georgia Municipal Electric Authority Power FGIC 6.25% 01/01/2012 1,150,000 1,325,374
Grand River Dam Authority Oklahoma AMBAC 5.50% 06/01/2013 385,000 418,206
Greater Detroit MI Resource Recovery AMBAC 6.25% 12/13/2007 400,000 455,500
Henderson, Nevada FGIC 5.00% 09/01/2016 1,000,000 1,001,250
Hot Springs AK Sales & Use Tax FSA 4.95% 12/01/2008 175,000 176,531
Illinois Health Facilities Authority Revenue Asset Guaranty 6.25% 05/01/2011 1,300,000 1,376,374
Intercommunity HFA ACA 5.00% 11/01/2005 2,020,000 2,093,224
Jefferson County OH Asset Guaranty 6.63% 12/01/2005 285,000 313,144
Long Island NY Power MBIA 5.00% 04/01/2011 1,000,000 1,040,000
Nassau County NY FGIC 6.00% 07/01/2010 25,000 28,188
NC Eastern Municipal Power Agency ACA 6.00% 01/01/2006 1,000,000 1,082,500
New York Dormitory Authority AMBAC 4.40% 08/01/2013 500,000 504,375
New York Dormitory Authority AMBAC 5.25% 07/01/2008 1,890,000 2,015,212
New York Dormitory Authority Asset Guaranty 5.25% 07/01/2005 1,000,000 1,052,500
New York Methodist Hospital AMBAC 5.00% 07/01/2008 1,000,000 1,047,500
Oklahoma IDA Baptist Med Center AMBAC 7.00% 08/15/2006 500,000 587,500
Orange County CA Recovery MBIA 5.80% 07/01/2016 400,000 437,500
Palm Beach County FL Solid Waste AMBAC 6.00% 10/01/2009 60,000 68,550
Palm Beach County FL Solid Waste AMBAC 6.00% 10/01/2009 440,000 499,400
Philadelphia PA AMBAC 5.13% 02/01/2008 1,050,000 1,111,688
Tampa FL Health MBIA 5.50% 11/15/2012 1,000,000 1,093,750
Teton County WY St John Hospital ACA 5.00% 12/01/2004 535,000 554,394
Tucson AZ COP Asset Guaranty 6.00% 07/01/2004 500,000 541,875
Washington DC Convent Center Authority AMBAC 5.25% 10/01/2014 1,000,000 1,038,750
Washington HCFA MBIA 5.00% 08/15/2018 700,000 684,250
-----------------
Total Insured Bonds (Cost $26,357,886) 26,822,530
-----------------
</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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Lease Revenue -- 6.9%
Battery Park NY Authority Junior Lien 5.20% 11/01/2023 315,000 316,969
New York Dormitory Authority 6.00% 07/01/2006 500,000 551,250
New York Dormitory Authority 5.50% 02/15/2005 $ 1,000,000 $ 1,063,750
New York State Urban Development Corp. 5.00% 01/01/2005 1,155,000 1,199,756
New York Urban Development Corp. 6.25% 04/01/2002 500,000 532,500
New York Urban Development Corp. 6.00% 01/01/2004 750,000 810,000
NY Metropolitan Transportation Authority 5.75% 07/01/2015 500,000 526,250
Ohio State Building Authority 5.13% 10/01/2007 1,000,000 1,057,500
-----------------
Total Lease Revenue (Cost $5,862,617) 6,057,975
-----------------
LOC GIC -- 1.6%
Michigan Housing Authority LOC: Sumitomo Bank 5.50% 06/01/2018 535,000 537,006
New York Dormitory Authority LOC: Fleet Bank 5.50% 07/01/2003 500,000 523,750
Northborough MA IFA LOC: Bank of Boston 5.75% 09/01/2002 315,000 317,095
-----------------
Total LOC GIC (Cost $1,357,818) 1,377,851
-----------------
PreRefunded -- 2.6%
Cincinnati OH Public Schools 6.15% 06/15/2002 600,000 636,750
District of Columbia 5.80% 06/01/2004 40,000 43,250
Mashantucket CT Western Pequot 6.50% 09/01/2005 995,000 1,126,838
Texas State Turnpike 2.63% 01/01/2020 400,000 513,000
-----------------
Total PreRefunded (Cost $2,216,000) 2,319,838
-----------------
Revenue Bonds -- 17.1%
Camden NJ Cooper Hospitals 5.60% 02/15/2007 240,000 203,700
District of Columbia Medlantic Hospital 7.00% 08/15/2005 500,000 539,375
Florida State Mid-Bay Bridge Authority 4.00% 10/01/2022 1,000,000 1,026,250
Foothills CA Transportation Agency 0.00% 01/01/2007 500,000 397,500
Illinois Educational Facilities Authority Revenues
University of Chicago 5.00% 07/01/2008 685,000 721,819
Illinois HEFA Northwestern University 5.05% 11/01/2032 500,000 523,750
MA DFA Williston School 6.00% 10/01/2013 300,000 299,625
Mass IFA Berkshire Retirement Development 5.13% 07/01/2018 500,000 505,170
Mass IFA Loomis Project 6.50% 07/01/2002 250,000 256,338
Mass IFA Resource Recovery 6.15% 07/01/2002 700,000 735,000
Met Govt Nashville & Davidson TN Vanderbilt 6.00% 05/01/2008 610,000 683,963
Met Govt Nashville TN Charity 5.00% 11/01/2007 1,000,000 1,038,750
Montana Student Assistance Corp. 5.95% 12/01/2012 230,000 235,175
New Hampshire HEFA Monadnock Hospital 5.25% 10/01/2007 550,000 557,563
New York Med Center Long Island FHA 6.40% 08/15/2014 455,000 497,088
New York Med Center Mt. Sinai FHA 5.95% 08/15/2009 160,000 168,600
New York Med Center St. Luke's FHA 5.60% 08/15/2013 450,000 468,563
NH Education Authority Brewster Acadamy 5.40% 06/01/2001 305,000 313,006
NH HEFA Nashua Hospital 6.25% 10/01/2008 750,000 804,375
Philadelphia PA HEFA Jefferson Health 5.50% 05/15/2006 1,000,000 1,072,500
Port Jervis NY IDA 5.25% 11/01/2006 100,000 104,000
Scranton PA Allied Rehabilitation 7.12% 07/15/2005 500,000 543,750
</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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenue Bonds (continued)
Scranton-Lackawanna PA Health 6.60% 07/15/2000 200,000 203,250
Stanislaus CA Ogden 7.63% 01/01/2010 375,000 391,594
Tyler TX Health Facilities Development Corp. 5.25% 07/01/2001 835,000 854,831
Utah Student Loan AMBAC 7.45% 11/01/2008 500,000 533,125
Volusia FL HEFA - Embry Riddle University 5.50% 10/15/2004 320,000 335,200
Wisconsin State Transportation 5.00% 07/01/2008 $ 1,000,000 $ 1,048,750
Wisconsin State Transportation 5.50% 07/01/2010 15,000 16,200
-----------------
Total Revenue Bonds (Cost $14,603,085) 15,078,810
-----------------
Special Revenues -- 3.5%
Castle Rock CO Import Authority 5.75% 12/01/2001 500,000 523,125
District of Columbia Redevelopment Agency 5.63% 11/01/2010 340,000 351,475
Long Beach CA Aquarium 5.75% 07/01/2005 200,000 215,500
Los Angeles CA Community Redevelopment 5.00% 11/15/2000 500,000 510,625
Met Peoria IL 6.25% 07/01/2017 300,000 327,750
Municipal Assistance Corp. NY NC '07 6.25% 07/01/2008 1,000,000 1,143,750
-----------------
Total Special Revenues (Cost $2,982,050) 3,072,225
-----------------
TOTAL BONDS (COST $83,741,620) 85,485,950
-----------------
SHORT-TERM INVESTMENTS -- 2.3%
Short Term Bonds -- 2.3%
Long Island Power Authority 3.00% 05/01/2033+ 800,000 800,000
New York Energy Research & Development 2.90% 06/01/2029+ 400,000 400,000
California Statewide Communities 2.95% 04/01/2028+ 500,000 500,000
Mass HEFA Daily GS MBIA LOC Suisse 3.00% 07/01/2005+ 100,000 100,000
Orange County CA Water Dist 2.95% 08/15/2015+ 200,000 200,000
-----------------
Total Short Term Bonds (Cost $2,000,000) 2,000,000
-----------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,000,000) 2,000,000
-----------------
TOTAL INVESTMENTS -- 99.3% (COST $85,741,620) $ 87,485,950
Other Assets, Less Liabilities -- 0.7% 583,848
-----------------
NET ASSETS -- 100% $ 88,069,798
=================
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Intermediate Tax Exempt Bond Fund
Schedule of Investments - March 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Notes to the Schedule of Investments:
ACA - American Capital Access Corp.
AMBAC - American Municipal Bond Assurance Corp.
COP - Certification of Participation
FGIC - Financial Guaranty Insurance Co.
FHA - Federal Housing Authority
FNMA - Federal National Mortgage Association
FSA - Financial Security Association
GIC - Guaranteed Investment Contract
HEFA - Health & Educational Facilities Authority
HFA - Housing Finance Authority
IFA - Industrial Finance Authority
LOC - Letter of Credit
MBIA - Municipal Bond Insurance Association
+ Date shown reflects actual maturity date. Security puttable on a daily or
weekly basis.
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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQUITIES -- 95.9%
Capital Goods -- 4.6%
Aviation Sales Co.* 26,700 $ 1,188,150
Eagle USA Airfreight, Inc.* 46,000 1,495,000
Heico Corp. 30,200 724,800
Kellstrom Industries, Inc.* 49,900 792,163
Kroll-Ogara Co.* 44,000 1,193,500
----------------
5,393,613
----------------
Consumer Stable -- 1.5%
United Natural Foods, Inc.* 77,400 1,809,225
----------------
Early Cyclical -- 3.5%
Excelsior-Henderson Motorcycle* 134,900 1,045,475
Forward Air Corp.* 81,600 1,071,000
Safeguard Scientifics, Inc.* 8,900 603,531
Skywest Inc. 51,200 1,478,400
----------------
4,198,406
----------------
Energy -- 1.6%
Cal Dive International, Inc.* 44,300 924,763
Cooper Cameron Corp.* 28,500 965,438
----------------
1,890,201
----------------
Financial -- 4.3%
FPIC Insurance Group, Inc.* 37,500 1,556,250
Realty Information Group, Inc.* 43,000 1,257,750
Telebanc Financial Corp.* 20,600 1,642,850
Wintrust Financial Corp.* 38,000 665,000
----------------
5,121,850
----------------
Growth Cyclical -- 5.2%
Cinar Corp.* 85,800 1,973,400
Coach USA, Inc.* 60,800 1,672,000
Steiner Leisure Ltd.* 37,025 1,138,519
Wet Seal, Inc., Class A* 38,800 1,430,750
----------------
6,214,669
----------------
Health Care -- 19.9%
Alkermes, Inc.* 46,000 1,253,500
Brookdale Living Communities, Inc.* 71,200 1,228,200
Chirex, Inc.* 79,200 1,940,400
Closure Medical Corp.* 37,800 1,436,400
Coulter Pharmaceutical, Inc.* 48,300 1,050,525
</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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Health Care (continued)
Cytyc Corp.* 63,800 $ 885,225
Emisphere Technologies, Inc.* 69,300 623,700
Henry Schein, Inc.* 56,900 1,436,725
Ilex Oncology Inc.* 108,300 1,103,306
Impath, Inc.* 31,300 766,850
Inhale Therapeutic Systems* 54,700 1,483,738
Ligand Pharmaceuticals, Class B* 48,200 394,638
Medimmune, Inc.* 32,800 1,941,350
Medquist, Inc.* 15,200 456,000
Novoste Corp.* 61,500 1,476,000
Parexel International Corp.* 63,500 1,313,656
Pharmaceutical Product Development* 19,000 637,688
Pharmacyclics, Inc.* 44,700 737,550
Sepracor, Inc.* 11,500 1,290,875
Transkaryotic Therapies, Inc.* 45,100 1,431,925
Vical, Inc.* 78,400 803,600
----------------
23,691,851
----------------
Other -- 2.6%
Nasdaq-100 Shares* 20,700 2,173,500
S&P 400 Mid-Cap Depository Receipt 13,700 941,019
----------------
3,114,519
----------------
Services -- 26.3%
Abacus Direct Corp.* 23,900 1,959,800
AboveNet Communications, Inc* 25,100 3,284,963
Automobile Protection Corp.* 53,600 428,800
Bright Horizons, Inc.* 50,100 1,095,938
Central Parking Corp. 41,975 1,448,138
Charles River Associates, Inc.* 32,800 791,300
CN Maximus, Inc.* 32,900 958,213
Concentric Network Corp.* 17,800 1,330,550
Devry, Inc.* 72,300 2,096,700
Diamond Tech Partners, Inc.* 29,000 668,813
Doubleclick, Inc.* 9,100 1,656,769
Exodus Communications, Inc.* 7,400 995,300
F.Y.I., Inc.* 33,700 1,078,400
First Consulting Group, Inc.* 120,900 1,345,013
Gray Communications Systems, Class B 21,750 290,906
Heftel Broadcasting Corp., Class A* 30,500 1,322,938
Metro Networks, Inc.* 33,200 1,826,000
</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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Services (continued)
Metzler Group, Inc.* 19,550 $ 613,381
On Assignment, Inc.* 33,700 863,563
Paxson Communications Corp.* 117,200 1,003,525
Saga Communications Inc., Class A* 78,900 1,410,338
Scandinavian Broadcast Systems* 99,100 3,183,588
Superior Consultant Holdings* 18,500 631,313
Valley Media, Inc.* 13,300 302,564
Wilmar Industries, Inc.* 51,500 762,844
----------------
31,349,657
----------------
Technology -- 26.4%
Applied Micro Circuits Corp.* 30,800 1,316,700
ATMI, Inc.* 79,600 1,592,000
Bea Systems, Inc.* 50,500 789,063
Best Software, Inc.* 49,200 664,200
C-Net, Inc.* 15,600 1,437,150
CMG Information Services, Inc.* 2,600 475,963
Digital River, Inc.* 19,700 788,000
Earthweb Inc.* 13,700 750,931
Entrust Technologies, Inc.* 42,400 1,431,000
Infoseek Corp.* 11,000 814,000
Infospace.com, Inc.* 18,300 1,620,694
IVillage Inc.* 3,700 371,850
Landmark Systems Corp.* 49,800 451,313
Level One Communications, Inc.* 34,125 1,659,328
Miningco.com, Inc.* 3,900 349,050
National Computer System, Inc. 31,600 774,200
Neon Systems* 6,000 330,000
New Era Of Networks, Inc. 23,600 1,598,900
Pervasive Software, Inc.* 65,700 1,174,388
Photronics, Inc.* 83,600 1,557,050
PRI Automation, Inc.* 53,700 1,127,700
Priceline.com Inc.* 1,200 99,450
Qlogic Corp.* 29,300 1,966,763
Rowecom Inc.* 48,100 2,098,363
SBS Technologies, Inc.* 20,100 361,800
Security First Technologies* 14,300 1,051,050
Semtech Corp.* 30,000 956,250
TSI International Software Ltd.* 21,900 1,068,994
Verisign, Inc.* 10,900 1,678,600
VerticalNet, Inc.* 10,600 1,101,075
----------------
31,455,825
----------------
TOTAL EQUITIES (COST $90,351,544) 114,239,816
----------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Small Cap Tax-Sensitive Equity Fund
Schedule of Investments - March 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
Security Rate Maturity Value (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS -- 4.2%
Repurchase Agreements -- 3.9%
Prudential-Bache Repurchase Agreement, dated
3/31/99, due 4/1/99, with a maturity value of
$4,684,299 and an effective yield of 4.15%,
collateralized by a U.S. Government Agency
Obligation with a rate of 5.941%, a maturity
date of 4/01/22 and a market value of $4,777,782. $ 4,683,759
----------------
Total Repurchase Agreements (Cost $4,683,759) 4,683,759
----------------
U.S. Government Agency -- 0.3%
FHLMC Discount Note+ 0.00% 6/24/99 350,000 346,080
----------------
Total U.S. Government Agency (Cost $346,113) 346,080
----------------
TOTAL SHORT-TERM INVESTMENTS (COST $5,029,872) 5,029,839
----------------
TOTAL INVESTMENTS -- 100.1% (COST $95,381,416) $ 119,269,655
Other Assets, Less Liabilities -- (0.1)% (144,864)
----------------
NET ASSETS -- 100% $ 119,124,791
================
</TABLE>
Notes to the Schedule of Investments:
FHLMC - Federal Loan Mortgage Corp.
* Non-income producing security.
+ Denotes all or part of security pledged as collateral to cover margin
requirements on open financial futures contracts (Note 7).
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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
EQUITIES -- 98.5%
Capital Goods -- 10.2%
Crane Co. 35,937 $ 869,226
Ingersoll Rand Co. 17,000 843,625
Kaydon Corp. 27,000 781,313
United Technologies Corp. 12,400 1,679,424
--------------
4,173,588
--------------
Consumer Stable -- 14.2%
Fort James Corp. 23,000 728,813
Kroger Co.* 20,000 1,197,499
Owens Illinois* 27,000 675,000
Rexall Sundown Inc.* 40,000 767,500
Richfood Holdings, Inc. 34,100 735,281
Stewart Enterprises, Inc., Class A 58,000 931,625
Universal Foods Corp. 36,000 742,500
--------------
5,778,218
--------------
Early Cyclical -- 3.0%
Clayton Homes, Inc. 76,250 843,516
Leggett & Platt, Inc. 18,000 360,000
--------------
1,203,516
--------------
Energy -- 5.9%
BP Amoco PLC ADR 9,363 945,078
Mobil Corp. 9,800 862,400
Texaco Inc. 10,300 584,525
--------------
2,392,003
--------------
Financial -- 18.9%
Ace Limited 19,900 620,631
AMBAC Inc. 12,800 691,200
Chase Manhattan Corp. 9,000 731,813
Citigroup, Inc. 10,000 638,750
Conseco, Inc. 33,370 1,030,298
Delphi Financial Group, Inc., Class A* 20,226 685,156
Enhance Financial Service Group Inc. 17,000 386,750
Federal National Mortgage Association 8,500 588,625
Morgan Stanley Dean Witter 5,800 579,638
Provident Companies Inc. 23,000 794,938
Reliastar Financial Corp. 22,500 959,062
--------------
7,706,861
--------------
Growth Cyclical -- 9.5%
Carnival Corp. 15,000 728,438
Costco Companies, Inc.* 4,000 366,250
G Tech Holdings Corp.* 12,500 304,688
</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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security Shares (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Growth Cyclical (continued)
International Game Technology 41,000 $ 597,063
Jones Apparel Group, Inc.* 16,400 458,175
Pier 1 Imports, Inc. 48,138 391,117
Ross Stores, Inc. 9,500 416,219
Tommy Hilfiger Corp.* 8,900 612,988
--------------
3,874,938
--------------
Health Care -- 10.1%
Amgen, Inc.* 27,000 2,021,624
Bristol-Myers Squibb, Inc. 6,600 424,463
Medtronics, Inc. 4,955 355,521
Schering-Plough Corp. 9,600 531,000
Steris Corp.* 9,000 239,625
Watson Pharmaceutical, Inc.* 12,000 529,500
--------------
4,101,733
--------------
Real Estate -- 2.2%
Equity Office Properties, REIT 7,075 179,970
General Growth Properties, REIT 7,400 240,038
Prentiss Properties Trust, REIT 9,400 175,075
Starwood Hotels and Resorts, REIT 10,600 302,763
--------------
897,846
--------------
Services -- 8.6%
Bell Atlantic Corp. 10,000 516,875
Ceridian Corp.* 10,600 387,563
Interim Services, Inc.* 45,400 681,000
Shared Medical Systems Corp. 17,100 952,255
Xerox Corp. 18,400 982,099
--------------
3,519,792
--------------
Technology -- 15.9%
American Power Conversion Corp.* 32,000 864,000
BMC Software, Inc.* 25,000 926,563
Computer Associates International, Inc. 23,450 833,941
Diebold, Inc. 30,000 720,000
Intel Corp. 3,000 357,375
Sci Sys, Inc.* 27,000 799,875
Sun Microsystems, Inc.* 15,700 1,961,518
--------------
6,463,272
--------------
TOTAL EQUITIES (COST $35,018,492) 40,111,767
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
Standish, Ayer & Wood Investment Trust
Standish Tax-Sensitive Equity Fund
Schedule of Investments - March 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Security (Note 1A)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
SHORT-TERM INVESTMENTS -- 1.5%
Repurchase Agreements -- 1.5%
Prudential-Bache Repurchase Agreement, dated 3/31/99, due 4/1/99, with a
maturity value of $584,325 and an effective yield of 4.15%, collateralized by a
U.S. Government Agency Obligation with a rate of 5.25%, a maturity date of 1/15/03
and a market value of $605,836. $ 584,257
--------------
Total Repurchase Agreements (Cost $584,257) 584,257
--------------
TOTAL SHORT-TERM INVESTMENTS (COST $584,257) 584,257
--------------
TOTAL INVESTMENTS-- 100.0% (COST $35,602,749) $ 40,696,024
Other Assets, Less Liabilities-- 0.1% 19,886
--------------
NET ASSETS-- 100% $ 40,715,910
==============
</TABLE>
Notes to the Schedule of Investments:
REIT - Real Estate Investment Trust
* Non-income producing security.
The accompanying notes are an integral part of the financial statements.
29
<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, 1999, the following Funds, for
federal income tax purposes, had capital loss carryovers as follows:
30
<PAGE>
Standish, Ayer & Wood Investment Trust
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Expiration Date September 30,
-----------------------------------------------------------
2002 2003 2004 2005 2006 Total
----------- ----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Massachusetts Intermediate Tax
Exempt Bond Fund $97,598 $178,890 ---- ---- ---- $ 276,488
Tax-Sensitive Equity Fund ---- ---- $2,179 $95,353 ---- $ 97,532
Small Cap Tax-Sensitive Equity
Fund ---- ---- ---- ---- $152,611 $ 152,611
</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.
The Small Cap Tax Sensitive Equity Fund and the Tax Sensitive Equity
Fund elected to defer to their fiscal year ending September 30, 1999
losses of $969,482 and $728,903, respectively, recognized during the
period from November 1, 1997 to September 30, 1998.
E. Deferred organization expense
Costs associated with the organization and initial registration of the
Small Cap Tax-Sensitive Equity Fund and Tax-Sensitive Equity Fund are
being amortized, on a straight-line basis, through December, 2000.
(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, 1999,
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; 0.50% for the Tax-Sensitive Equity
Fund. For the Small Cap Tax-Sensitive Equity Fund total operating
expenses were limited by SA&W to 0.75% of average daily net assets
through December 31, 1998; commencing January 1, 1999 total operating
expenses were limited to 1.00% of average daily net assets. For the six
months ended March 31, 1999, SA&W voluntarily waived $4,082, $13,604
and $64,354 of its advisory fee to the Massachusetts Tax Exempt Bond
Fund, Small Cap Tax-Sensitive Equity Fund and Tax-Sensitive Equity
Fund, respectively. There was no amount waived for the Intermediate Tax
Exempt Bond Fund. These agreements are voluntary and temporary and may
be discontinued or revised by SA&W at any time.
31
<PAGE>
Standish, Ayer & Wood Investment Trust
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
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.
(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, 1999 September 30, 1998
--------------------------------- --------------------------------
Purchases Sales Purchases Sales
---------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Massachusetts Intermediate Tax Exempt Bond Fund $15,156,051 $9,351,936 $28,223,961 $15,542,356
================ =============== =============== ===============
Intermediate Tax Exempt Bond Fund $40,960,793 $32,803,354 $84,121,146 $55,019,644
================ =============== =============== ===============
Small Cap Tax-Sensitive Equity Fund $89,517,767 $74,472,207 $93,341,829 $48,543,729
================ =============== =============== ===============
Tax-Sensitive Equity Fund $11,823,846 $9,518,110 $31,483,795 $8,153,582
================ =============== =============== ===============
</TABLE>
(5) Shares of Beneficial Interest:
The Declaration of Trust permits the Trust to issue an unlimited number
of full and fractional shares of beneficial interest having a par value
of one cent per share. Transactions in each Fund's shares were as
follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
Massachusetts Intermediate Tax Exempt Bond Fund March 31, 1999 September 30, 1998
------------------------ ------------------------
<S> <C> <C>
Shares sold 454,736 866,950
Shares issued to shareholders in
payment of distributions declared 23,125 38,776
Shares redeemed (129,344) (257,536)
------------------------ ------------------------
Net increase 348,517 648,190
======================== ========================
Intermediate Tax Exempt Bond Fund
Shares sold 963,113 1,865,702
Shares issued to shareholders in
payment of distributions declared 66,716 68,939
Shares redeemed (524,153) (831,605)
------------------------ ------------------------
Net increase 505,676 1,103,036
======================== ========================
</TABLE>
32
<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, 1999 September 30, 1998
------------------------ ------------------------
<S> <C> <C>
Shares Sold 822,279 1,919,939
Shares issued to shareholders in
payment of distributions declared -- 5,771
Shares redeemed (179,741) (363,050)
------------------------ ------------------------
Net increase 642,538 1,562,660
======================== ========================
Tax-Sensitive Equity Fund
Shares Sold 317,112 706,407
Shares issued to shareholders in
payment of distributions declared 2,469 3,722
Shares redeemed (206,323) (99,734)
------------------------ ------------------------
Net increase 113,258 610,395
======================== ========================
</TABLE>
At March 31, 1999, the Massachusetts Intermediate Tax Exempt Bond Fund
had one shareholder of record owning approximately 30% of the Fund's
outstanding shares. The Intermediate Tax Exempt Bond Fund had one
shareholder of record owning approximately 19% of the Fund's
outstanding shares. The Small Cap Tax-Sensitive Equity Fund had two
shareholders of record owning approximately 14% and 15%, respectively,
of the Fund's outstanding shares. The Tax Sensitive Equity Fund had one
shareholder of record owning approximately 43% of the Fund's
outstanding 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, 1999, 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 $56,480,565 $1,687,134 $152,566 $1,534,568
Intermediate Tax Exempt Bond
Fund $85,741,620 $1,976,665 $232,335 $1,744,330
Small Cap Tax-Sensitive
Equity Fund $95,381,416 $27,701,289 $3,813,050 $23,888,239
Tax-Sensitive Equity Fund $35,602,749 $8,647,626 $3,554,351 $5,093,275
</TABLE>
33
<PAGE>
Standish, Ayer & Wood Investment Trust
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
(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.
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.
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, 1999, the Small Cap Tax-Sensitive Equity Fund held the
following futures contracts:.
<TABLE>
<CAPTION>
Underlying
Expiration Face/amount at Unrealized
Contract Position Date value Gain/(Loss)
------------------------------- --------- ------------- ---------------- --------------------
<S> <C> <C> <C> <C>
S&P Mid Cap 400 (34 contracts) Long 6/18/99 $ 6,261,100 $ 58,910
--------------------
$ 58,910
====================
</TABLE>
At March 31, 1999, the Small Cap Tax-Sensitive Equity Fund had
segregated sufficient cash and/or securities to cover margin
requirements on open future contracts.
At March 31, 1999, the Massachusetts Intermediate Tax Exempt Bond Fund,
the Intermediate Tax Exempt Bond Fund and the Tax-Sensitive Equity Fund
had no open futures contracts.
34
<PAGE>
Standish, Ayer & Wood Investment Trust
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40
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