BOSTON MANAGED
GROWTH FUND
Annual Report
June 30, 1996
<PAGE>
UNITED STATES TRUST COMPANY BOSTON INVESTMENT MANAGEMENT
July 1, 1996
Dear Shareholder,
Stock and bond values have moved in opposite directions since the
inception of the Fund on December 1, 1995, ending a pattern that had been in
place in the financial markets for over a year. The divergence reflected a
change in investor expectations for the 1996 economy from an environment of
negligible GDP growth to a period of improving economic results. This change
ended expectations of continued reductions in short term interest rates by the
Federal Reserve, leading to negative bond returns as prices adjusted to the
revised interest rate direction. Although stock prices were also restrained by
the upward movement in interest rates, equities continued to be aided by the
steady growth in corporate profits. All of the primary equity indexes reached
new highs through the first half of 1996.
Boston Managed Growth Fund was reasonably well positioned for the trends
in the financial markets. The high allocation to equities (65%) relative to
bonds (35%) aided performance, as did the gradual reduction in the average
maturity of the bond segment in the first quarter of the year. Moreover,
relative performance of the equity segment improved as 1996 progressed,
particularly toward the end of the second quarter when investor preference
returned to the higher quality growth companies that form the core of the
portfolio. Overall, the Fund's net asset value (NAV) increased to $77.25 on June
30, 1996, an increase of 3.8% since year end, and 5.1% since inception.
The pace of economic expansion over the next 6-12 months will determine
much of the general trend in stock and bond values. The best potential outcome
remains sustainable GDP growth of about 2 1/2%, with inflation remaining below
3%, a combination most often referred to as a "soft landing". Although periods
of rising inflation or economic recession will return at some point in the
future, in our view such gradual economic growth remains the most likely
environment for the months ahead. All of the catalysts that would lead us toward
either recession or sharply rising inflation in 1996 are not in place. Rising
inflation is usually preceded by rapid wage increases, industrial material
shortages and excessive government spending. Economic recessions over the past
30 years usually have been preceded by either restrictive Federal Reserve
policies or external events that lead to a drop in consumer and business
confidence. In short, over the next 6-12 months the economy is likely to
disappoint forecasters at both extremes of the growth/recession spectrum.
As stock indexes have moved to new highs the usual dichotomy of investment
opinions has intensified. One side takes a pessimistic view regarding future
prospects for stock prices, citing high valuations, record low dividend yields,
rising interest rates, and rampant speculation as evidence that we are near the
end of the cycle. While acknowledging these circumstances, more optimistic
investors note the record level of corporate profits, low inflation and the
still favorable economic trend as justification for further stock price gains in
the months ahead.
The Fund's still comparatively high allocation to equities of just under
65% reflects our position that higher quality stocks are unlikely to enter an
extended bear market as long as the economy progresses within the favorable
trend outlined above. That does not mean we will avoid normal and sometimes deep
short term market corrections. These are difficult to sidestep when managing a
portfolio without jeopardizing the potential to earn superior long term gains.
Nor does it mean that the current speculative frenzy, particularly among new
publicly traded issues, will last. Subjectively, I judge greed to have overtaken
logic in this area as much as anytime during my more than twenty-five years of
managing money. In many cases investor willingness to believe in future growth
appears
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BOSTON MANAGED GROWTH FUND
limitless, as literally hundreds of new companies with high and rising stock
prices have negligible current sales and earnings.
A few of these companies engaged in areas of telecommunication,
biotechnology, and computer equipment and software may indeed mature to become
the next Microsoft or Intel. Most will languish into obscurity or file for
bankruptcy. At the expense of some potential short-term performance, we have not
participated in this speculative sector of the market, but rather concentrated
the Fund's investments in established companies with proven records of sales,
earnings and dividend growth. We have always preferred a more stable, lower risk
route to achieve longer term capital growth. All of the Fund's individual
investments are outlined in this report.
On behalf of all of us at United States Trust, I thank you for your
continued confidence in our services. Please feel free to contact either me or
my colleagues at (617) 726-7252 should you have any questions about our
investment views or your individual account.
Sincerely,
Domenic Colasacco
President,
United States Trust Company of Boston
<PAGE>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE BOSTON MANAGED GROWTH FUND AND A BALANCED BENCHMARK.*
Date Boston Managed Growth Fund Balanced Benchmark*
12/1/95 10,000 10,000
12/31/95 10,127 10,165
3/31/96 10,265 10,332
6/30/96 10,514 10,592
*Balanced Benchmark ((50% S&P 500/ 45% L/B G/C/ 5% U.S. T-Bill)
Past performance is not predictive of future performance.
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BOSTON MANAGED GROWTH FUND
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS at June 30, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
Shares COMMON STOCKS: 64.9% Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Durables: 3.3%
<S> <C> <C>
12,500 Ford Motor Co........................................................... $ 404,687
10,100 General Motors Corp..................................................... 528,987
21,100 Leggett & Platt, Inc.................................................... 585,526
6,800 Tecumseh Products Co., Class A.......................................... 365,500
3,500 Tecumseh Products Co., Class B.......................................... 182,000
-------
2,066,700
---------
Consumer Products: 8.3%
20,000 Albertson's, Inc........................................................ 827,500
10,000 Anheuser Busch Companies, Inc........................................... 750,000
8,000 Gillette Co............................................................. 499,000
5,000 May Department Stores Co................................................ 218,750
9,600 McDonald's Corp......................................................... 448,800
22,100 Price/Costco, Inc....................................................... 477,912
13,100 Procter & Gamble Co..................................................... 1,187,188
7,000 Sysco Corp.............................................................. 239,750
6,000 UST, Inc................................................................ 205,500
4,800 Wm. Wrigley, Jr., Co.................................................... 242,400
-------
5,096,800
---------
Energy & Resources: 4.4%
10,500 Amoco Corp.............................................................. 759,937
5,400 Atlantic Richfield Co................................................... 639,900
15,000 Exxon Corp.............................................................. 1,303,125
---------
2,702,962
---------
Finance: 11.4%
17,000 Bank of Boston Corp..................................................... 841,500
17,500 Baybanks, Inc........................................................... 1,885,625
7,800 Boatmen's Bancshares, Inc............................................... 312,975
14,700 Cincinnati Financial Corp............................................... 843,412
22,900 Federal National Mortgage Association................................... 767,150
9,500 First Virginia Banks, Inc............................................... 380,000
32,800 T. Rowe Price Associates, Inc........................................... 1,008,600
42,000 United Asset Management Corp............................................ 1,029,000
---------
7,068,262
---------
<PAGE>
BOSTON MANAGED GROWTH FUND
PORTFOLIO OF INVESTMENTS at June 30, 1996, Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Healthcare: 10.5%
16,000 Becton Dickinson & Co................................................... $ 1,284,000
33,600 Johnson & Johnson....................................................... 1,663,200
12,600 Medtronic, Inc.......................................................... 705,600
9,000 Merck & Co., Inc........................................................ 581,625
12,000 Pfizer, Inc............................................................. 856,500
22,400 Schering-Plough Corp.................................................... 1,405,600
---------
6,496,525
---------
Industrial Materials: 4.0%
15,300 Consolidated Papers, Inc................................................ 795,600
5,100 PPG Industries, Inc..................................................... 248,625
25,900 Sealed Air Corp......................................................... 870,888
10,000 Sigma-Aldrich Corp...................................................... 535,000
-------
2,450,113
---------
Media & Publishing: 3.2%
16,200 Gannett Co., Inc........................................................ 1,146,150
6,000 Interpublic Corp. Companies, Inc......................................................281,250
9,000 The Walt Disney Co...................................................... 565,875
-------
1,993,275
---------
Multi Industry & Other: 1.7%
16,000 Millipore Corp.......................................................... 670,000
5,500 Minnesota Mining & Manufacturing Co..................................... 379,500
-------
1,049,500
---------
Producer Products: 7.7%
10,300 A.O. Smith Corp......................................................... 257,500
16,000 Donaldson Co., Inc...................................................... 412,000
4,500 Eaton Corp.............................................................. 263,812
17,200 Emerson Electric Co..................................................... 1,554,450
5,000 Honeywell, Inc.......................................................... 272,500
2,500 Hubbell, Inc., Class B.................................................. 165,625
20,200 Illinois Tool Works..................................................... 1,366,025
3,000 Johnson Controls, Inc................................................... 208,500
4,000 Nordson Corp............................................................ 226,000
-------
4,726,412
---------
<PAGE>
BOSTON MANAGED GROWTH FUND
PORTFOLIO OF INVESTMENTS at June 30, 1996, Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Technology: 6.2%
4,000 Applied Materials, Inc.................................................. $ 122,000
16,800 Automatic Data Processing Inc........................................... 648,900
3,600 Electronic Data Systems Corp............................................ 193,500
10,000 Hewlett-Packard Co...................................................... 996,250
4,000 Intel Corp.............................................................. 293,750
15,100 Lucent Technologies, Inc................................................ 571,913
4,000 Microsoft Corp.......................................................... 480,500
10,000 Xerox Corp.............................................................. 535,000
-------
3,841,813
---------
Utilities: 4.2%
13,800 Ameritech Corp.......................................................... 819,375
15,400 AT&T Corp............................................................... 954,800
20,000 Bellsouth Corp.......................................................... 847,500
-------
2,621,675
---------
Total Common Stocks (cost $37,233,525).................................. 40,114,037
----------
Principal Amount CORPORATE BONDS: 9.7%
- ------------------------------------------------------------------------------------------------------------------------------------
$ 925,000 American Home Products, 7.90%, 2/15/05.................................. 967,781
300,000 Atlantic Richfield Co., 8.50%, 4/1/12................................... 330,000
300,000 Chubb Capital Corp., 6.00%, 2/1/98...................................... 298,125
300,000 Deere & Co., 8.79%, 8/6/98.............................................. 313,206
400,000 Equitable Resources, 8.55%, 9/1/03...................................... 432,736
200,000 Ford Motor Credit Corp., 9.25%, 6/15/98................................. 210,250
425,000 Ford Motor Credit Corp., 7.75%, 11/15/02................................ 439,344
300,000 Ford Motor Credit Corp., 6.625%, 6/30/03................................ 293,625
825,000 GMAC, 9.625%, 12/15/01.................................................. 922,969
300,000 GMAC, 8.50%, 1/1/03..................................................... 321,750
300,000 Sears Roebuck Co., 9.46%, 6/20/00....................................... 326,250
300,000 Southwestern Bell Capital, 7.75%, 10/30/97.............................. 306,168
375,000 Sysco Corp., 6.50%, 6/15/05............................................. 359,531
200,000 Unum Corp., 5.88%, 10/15/03............................................. 186,482
300,000 Weyerhaeuser Co., 7.25%, 7/1/13 ....................................... 292,875
-------
Total Bonds (cost $6,230,506)........................................... 6,001,092
<PAGE>
BOSTON MANAGED GROWTH FUND
PORTFOLIO OF INVESTMENTS at June 30, 1996, Continued
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND GOVERNMENT AGENCY Principal
AmountOBLIGATIONS: 20.3% Market Value
$ 300,000 FHLBB, 9.20%, 8/25/97................................................... $ 310,569
285,000 FNMA, 9.20%, 6/10/97.................................................... 293,462
875,000 FNMA Medium Term Note, 5.49%, 10/2/03................................... 837,051
1,000,000 U.S. Treasury Bond, 7.50%, 11/15/16.................................................1,050,840
2,500,000 U.S. Treasury Note, 7.375%, 11/15/97.................................... 2,545,325
2,950,000 U.S. Treasury Note, 9.125%, 5/15/99..................................... 3,164,642
1,725,000 U.S. Treasury Note, 8.75%, 8/15/00...................................... 1,867,882
2,300,000 U.S. Treasury Note, 8.00%, 5/15/01...................................... 2,445,337
---------
Total U.S. Government and Government Agency Obligations
(cost $12,845,743)...................................................... 12,515,108
----------
SHORT TERM INVESTMENT: 4.6%
- ------------------------------------------------------------------------------------------------------------------------------------
2,841,010 SEI Daily Income Government Fund II (cost $2,841,010)................... 2,841,010
---------
Total Investment in Securities (cost $59,150,784+): 99.5%.............. 61,471,247
Other Assets less Liabilities: 0.5%..................................... 299,756
-------
Total Net Assets: 100.0%................................................ $61,771,003
===========
<FN>
+ At June 30, 1996, the cost of securities for Federal tax purposes was the same
as the basis for financial reporting. Unrealized appreciation and depreciation
of securities were as follows:
Gross unrealized appreciation........................................... $ 3,397,255
Gross unrealized depreciation........................................... (1,076,792)
----------
Net unrealized appreciation.................................... $ 2,320,463
</FN>
===========
</TABLE>
See accompanying notes to financial statements.
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BOSTON MANAGED GROWTH FUND
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES at June 30, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C>
Investments in securities, at value (identified cost $59,150,784) (Note 2-A) .......... $61,471,247
Dividends and interest receivable ..................................................... 359,982
Other assets........................................................................... 958
---
Total assets .............................................................. 61,832,187
----------
LIABILITIES
Advisory fee payable................................................................... 37,289
Other liabilities ..................................................................... 23,895
------
Total liabilities.......................................................... 61,184
------
NET ASSETS ................................................................... $61,771,003
===========
Net asset value, offering and redemption price per share
($61,771,003/799,612 shares outstanding;
unlimited number of shares authorized without par value) .............................. $77.25
======
COMPONENTS OF NET ASSETS
Paid-in capital ....................................................................... $59,123,940
Undistributed net investment income.................................................... 681,558
Accumulated net realized loss on investments........................................... (354,958)
Net unrealized appreciation of investments............................................. 2,320,463
---------
Net assets ...................................................................... $61,771,003
===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
BOSTON MANAGED GROWTH FUND
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS - For the Period December 1, 1995* through June 30, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
<S> <C>
Income
Interest ........................................................................ $ 656,297
Dividends........................................................................ 452,016
-------
Total investment income ................................................... 1,108,313
---------
Expenses
Advisory fees (Note 3) .......................................................... 241,607
Administration fee (Note 3)...................................................... 32,214
Custodian and accounting fees.................................................... 26,912
Transfer agent fees.............................................................. 1,365
Auditing fees.................................................................... 14,250
Trustees' fees................................................................... 1,751
Legal fees....................................................................... 1,075
Reports to shareholders.......................................................... 875
Miscellaneous.................................................................... 1,528
-----
Total expenses............................................................. 321,577
-------
Net investment income ................................................... 786,736
-------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss from security transactions .......................................... (354,958)
Net unrealized appreciation of investments ............................................ 2,320,463
---------
Net realized and unrealized gain on investments ................................. 1,965,505
---------
Net Increase in Net Assets Resulting from Operations ...................... $ 2,752,241
===========
<FN>
*Commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
BOSTON MANAGED GROWTH FUND
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
December 1, 1995*
through
June 30, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM:
<S> <C>
OPERATIONS
Net investment income........................................................................ $ 786,736
Net realized loss on security transactions .................................................. (354,958)
Net change in unrealized appreciation of investments......................................... 2,320,463
---------
Net increase in net assets resulting from operations .................................. 2,752,241
---------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ($0.148 per share)..................................................... (105,178)
--------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change in outstanding shares (a)................. 59,123,940
----------
Total increase in net assets .......................................................... 61,771,003
NET ASSETS
Beginning of period ......................................................................... -0-
-
End of period (including undistributed net investment income of $681,558)................... $61,771,003
===========
<FN>
(a) A summary of capital shares transactions is as follows:
December 1, 1995*
through June 30, 1996
Shares Value
Shares sold .............................................................. 827,127 $61,190,223
Shares issued in reinvestment of distribution............................. 1,414 105,178
Shares redeemed........................................................... (28,929) (2,171,461)
------- ----------
Net increase ............................................................. 799,612 $59,123,940
======= ===========
*Commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
BOSTON MANAGED GROWTH FUND
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout the period
- ------------------------------------------------------------------------------------------------------------------------------------
December 1, 1995* through
June 30, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period ......................................................... $73.62
------
Income from investment operations:
Net investment income .................................................................. 1.00
Net realized and unrealized gain on investments ........................................ 2.78
----
Total from investment operations.............................................................. 3.78
----
Less distributions:
Dividends from net investment income.................................................... (.15)
----
Net asset value, end of period ............................................................... $77.25
======
Total return ................................................................................. 5.14%++
Ratios/supplemental data:
Net assets, end of period (millions).......................................................... $ 61.8
Ratio of expenses to average net assets:
Before expense reimbursement ........................................................... 1.00%+
After expense reimbursement............................................................. 1.00%+
Ratio of net investment income to average net assets:
Before expense reimbursement ........................................................... 2.43%+
After expense reimbursement ............................................................ 2.43%+
Portfolio turnover rate ...................................................................... 17.69%
Average commission rate paid per share........................................................ $ 0.0500
<FN>
*Commencement of operations.
+Annualized.
++Not Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
BOSTON MANAGED GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The Boston Managed Growth Fund (the "Fund") is a diversified series of
shares of beneficial interest of Professionally Managed Portfolios (the
"Trust"), which is registered under the Investment Company Act of 1940 (the
"1940 Act") as an open-end management investment company. The Fund began
operations on December 1, 1995. The investment objective of the Fund is to seek
income and long-term capital growth through an actively managed portfolio of
stocks, bonds, and money market instruments.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund. These policies are in conformity with generally accepted
accounting principles.
A. Security Valuation. Investments in securities traded on a national
securities exchange or included in the NASDAQ National Market System
are valued at the last reported sale price at the close of regular
trading on the last business day of the period; securities traded on
an exchange or NASDAQ for which there has been no sale and other
over-the-counter securities are valued at the last reported bid
price. Securities for which quotations are not readily available are
valued at their respective fair values as determined in good faith by
the Board of Trustees. Short-term investments are stated at cost,
which when combined with accrued interest, approximates market value.
U.S. Government securities with less than 60 days remaining to
maturity when acquired by the Fund are valued on an amortized cost
basis. U.S. Government securities with more than 60 days remaining to
maturity are valued at the current market value (using the mean
between the bid and asked price) until the 60th day prior to
maturity, and are then valued at amortized cost based upon the value
on such date unless the Board determines during such 60 day period
that this amortized cost basis does not represent fair value.
B. Federal Income Taxes. The Fund intends to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable
income to its shareholders. Therefore, no federal income tax
provision is required.
C. Security Transactions, Investment Income and Distributions. As
is common in the industry, security transactions are
accounted for on the trade date. Dividend income and distributions
to shareholders are recorded on the ex-dividend date.
D. Use of Estimates. The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amount of assets and liabilities at the date of the financial
statements. Actual results could differ from those estimates.
NOTE 3 - INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
For the period ended June 30, 1996, United States Trust Company of Boston
(the "Adviser") provided the Fund with investment management services under an
Investment Advisory Agreement. The Adviser furnished all
<PAGE>
BOSTON MANAGED GROWTH FUND
NOTES TO FINANCIAL STATEMENTS, Continued
investment advice, office space, facilities, and most personnel needed by
the Fund. As compensation for its services, the Adviser was entitled to a
monthly fee at the annual rate of 0.75% based upon the average daily net assets
of the Fund. For the period ended June 30, 1996, the Fund incurred $241,607 in
advisory fees.
The Fund is responsible for its own operating expenses. The Adviser has
agreed to reduce fees payable to it by the Fund to the extent necessary to limit
the Fund's aggregate annual operating expenses to 1.00% of average net assets
annually. Any such reductions made by the Adviser in its fees or payments or
reimbursement of expenses which are the Fund's obligation are subject to
reimbursement by the Fund within the following three years provided the Fund is
able to effect such reimbursement and remain in compliance with applicable
expense limitations.
Investment Company Administration Corporation (the "Administrator") acts
as the Fund's Administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings, reports and returns for
the Fund; prepares reports and materials to be supplied to the trustees;
monitors the activities of the Fund's custodian, transfer agent and accountants;
coordinates the preparation and payment of Fund expenses and reviews the Fund's
expense accruals. For its services, the Administrator receives an annual fee
equal to the greater of 0.10% of average net assets or $30,000.
First Fund Distributors, Inc. (the "Distributor") acts as the Fund's
principal underwriter in a continuous public offering of the Fund's shares.
The Distributor is an affiliate of the Administrator.
Certain officers and Trustees of the Fund are also officers and/or
directors of the Administrator.
NOTE 4 - PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities, other than short-term investments,
for the period ended June 30, 1996 were $66,608,445 and
$9,781,919, respectively.
<PAGE>
BOSTON MANAGED GROWTH FUND
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Shareholders of
Boston Managed Growth Fund and
the Board of Trustees of
Professionally Managed Portfolios
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Boston Managed Growth Fund (a series
of Professionally Managed Portfolios) as of June 30, 1996, and the related
statements of operations and changes in net assets and the financial highlights
for the period from December 1, 1995 (commencement of operations) to June 30,
1996. These financial statements and financial highlights are the responsibility
of the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1996, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Boston Managed Growth Fund as of June 30, 1996, the results of its operations,
the changes in its net assets and the financial highlights for the period from
December 1, 1995 (commencement of operations) to June 30, 1996, in conformity
with generally accepted accounting principles.
ERNST & YOUNG LLP
Los Angeles, California
August 5, 1996
<PAGE>
Advisor and Shareholder Service Agent
United States Trust Company of Boston
40 Court Street
Boston, MA 02108
(617) 726-7250
o
Distributor
First Fund Distributors, Inc.
4455 E. Camelback Rd., Ste. 261E
Phoenix, AZ 85018
o
Custodian and Transfer Agent
The Provident Bank
One East Fourth Street
Cincinnati, Ohio 45202
o
Auditors
Ernst & Young LLP
515 South Flower Street
Los Angeles, CA 90071
o
Legal Counsel
Heller, Ehrman, White & McAuliffe
333 Bush Street
San Francisco, CA 94104
This report is intended for the shareholders of
the Boston Managed Growth Fund and should
not be used as sales literature unless accompanied
or preceded by the Fund's current prospectus.
