THE
SHAWMUT
FUNDS
ANNUAL REPORT
October 31, 1994
Table of Contents
- --------------------------------------------------------------------------------
PRESIDENT'S MESSAGE........................................................ 1
- --------------------------------------------------------------------------------
OVERVIEW OF FINANCIAL MARKETS.............................................. 2
- --------------------------------------------------------------------------------
INVESTMENT REVIEWS......................................................... 3
- --------------------------------------------------------------------------------
PORTFOLIOS OF INVESTMENTS.................................................. 11
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES....................................... 28
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS................................................... 30
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS........................................ 32
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--INVESTMENT SHARES.................................... 36
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--TRUST SHARES......................................... 38
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS.............................................. 40
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS................................... 50
- --------------------------------------------------------------------------------
PERFORMANCE LINE GRAPHS.................................................... 51
- --------------------------------------------------------------------------------
President's Message
Dear Shareholder:
I am pleased to present your Annual Report for The Shawmut Funds for the
twelve-month period ended October 31, 1994. This report contains complete
financial information including an Investment Review and Portfolio of
Investments for each portfolio of The Shawmut Funds. In addition, Financial
Highlights have been included for Trust Shares and Investment Shares.
To achieve a high level of efficiency and reduce fund expenses, we have now
combined information for Investment Shares and Trust Shares in one Annual
Report.
Thank you for choosing one or more of The Shawmut Funds to pursue your financial
goals. Your comments and questions are always welcome.
Sincerely,
/s/Edward C. Gonzales
Edward C. Gonzales
President
December 15, 1994
Overview of the Financial Markets
A year ago, the market consensus was that, while the recession was over at last,
economic activity would remain subdued and inflation would not be a problem due
to the fiscal drag of a shrinking federal budget deficit and excess productive
capacity in the global economy. In February 1994, the Federal Reserve Board (the
"Fed") shattered this comfortable consensus by raising the Federal Funds rate
for the first time in five years. Shortly thereafter, the rationale for the
Fed's shift in monetary policy became clear. Real economic activity for the
final quarter of 1993 was much stronger than expectations at 6.30%. From the
Fed's point of view, the economy was firmly established on a self-sustaining
growth track and no longer required the stimulus of an accommodative monetary
regime.
The ensuing selloff in the domestic and global bond markets was more severe than
the Fed policymakers could possibly have contemplated. Though they had
anticipated a negative reaction in the equity markets, the Fed policymakers had
expected long-term interest rates to decline in response to this demonstration
of forward-looking monetary discipline. The severity of the market's reaction,
we believe, has had much more to do with the unwinding of highly leveraged
positions built up over a five-year bull market cycle, in which risk-taking had
been consistently rewarded, than it did with rising inflationary expectations,
the traditional fear of long-term bond investors.
At this stage, our view is that the normal workings of the business cycle have
been exacerbated by the ongoing unwinding of financial market leverage carrying
interest rates above their fair value based on long-term fundamental trends.
Values in the bond market have become compelling in real return terms, though we
have yet to see the strains and excesses which have characterized market peaks
in prior cycles. The chief challenge for the Fed policymakers is to rein in
growth just enough to settle the economy onto a stable, non-inflationary growth
track and avoid the cycle of "boom-and-bust" which has characterized economic
history for the past two decades. Under Chairman Alan Greenspan, the Fed has
gotten a much earlier start on the cycle than prior regimes, which bodes well
for long-term investors in 1995 and beyond.
The fiscal year ending October 31, 1994, was one of the most difficult periods
for bond investors in the post-World War II period. Interest rates, as measured
by the yield of thirty-year U.S. Treasury bonds, rose over 200 basis points from
levels not seen in a generation to close the reporting period at a cyclical high
of 8.05%. This translates into a market value loss of some 23%, a total return
reminiscent of the great 1979-1981 bear market.
Rising interest rates prevented the domestic equity market from generating
meaningful price appreciation between October 1993, and October 1994, but
strong earnings growth protected equity investors from serious losses. The
Standard & Poor's Composite Stock Index ("S&P 500")* earned a total return of
3.90% for the year ended October 31, 1994 and smaller capitalization stocks
lagged the S&P 500 by a modest amount. The Russell 2000 Stock Index ("Russell
2000")* showed a total return of (0.31%). Companies with unexpectedly strong
earnings momentum did relatively well, as investors focused on avoiding issues
that would suffer from a contraction in price per earnings multiples.
We expect earnings for the S&P 500 to rise to $29 in calendar 1994 from $21.88
in 1993. While this consensus estimate may be a bit optimistic, earnings growth
is likely to exceed 20%. During the fiscal year ended October 31, 1994, the
technology and basic materials sectors of the market appreciated by more than
15% and the utility and transportation sectors declined by more than 10%. This
disparity in relative performance is not coincidental. The basic material and
technology sectors are expected to realize the best earnings growth of any of
the major sectors in 1995, and the transportation and utility groups have the
most sluggish prospects.
Although rising interest rates will ultimately lead to slowing economic
activity, a rally in bond prices and a decline in corporate earnings, we believe
that it is premature to anticipate this transition. Currently, our equity
strategy continues to emphasize prudent diversification and the selection of
stocks with above average earnings growth prospects and reasonable valuations.
* This index is unmanaged.
Investment Reviews
Prime Money Market Fund
A year ago, in late October and early November, 1993, the markets were volatile,
responding to each new economic release as market policymakers tried to glean
some insight into the future direction of monetary policy and interest rates.
For the preceding five years, money market yields had declined with the Federal
Funds rate falling from 9.75% in 1989 to 3.00% in early 1994. In November 1993,
most market participants were forecasting a stable interest rate environment,
resulting in a relatively flat money market yield curve. The spread between
thirty-day and ninety-day commercial paper was only 5 basis points.
In early February 1994, following a 7.00% fourth quarter Gross Domestic Product,
the Fed shifted gears, boosting the Federal Funds rate from 3.00% to 3.25%.
Since then, in an attempt to slow Gross Domestic Product growth to a
non-inflationary 2.50%, the Fed raised the Federal Funds rate in four
consecutive steps an additional 150 basis points to 4.75%. Other short-term
interest rates followed. Thirty day commercial paper rose 2.05 basis points to
5.20% and ninety-day Treasury bills rose 227 basis points to 5.39%. Shawmut
Prime Money Market Fund responded to these shifts in monetary policy by reducing
its average maturity from 57 to 37 days and increasing its holdings of variable
rate instruments to 15%. The shorter average maturity and the increase in
variable rate holdings enabled the Fund's yield to respond quickly to the rise
in interest rates. Since October 1993, the seven-day net yield on the Fund has
risen 211 basis points. The Fund size increased significantly. Investment shares
and Trust shares grew 129% to $655 million.* Moving into the new fiscal year, we
believe the Fed remains fully committed to its objective of non-inflationary
economic growth. In response, the Fund will continue to increase holdings of
variable rate paper and maintain a relatively short average maturity. The Fund
will remain 100% invested in tier I credit quality issuers.
Connecticut Municipal Money Market Fund
Over the past year, short-term interest rates have risen, especially beginning
in February 1994, when the Fed boosted the Federal Funds rate 175 basis points
in five consecutive steps attempting to slow the Gross Domestic Product to a
sustainable non-inflationary 2.50%. The Bond Buyer One Year Note Index** rose
135 basis points to 4.13%. The Public Securities Association Municipal Swap
Index**, a measure of seven-day variable rate demand notes, rose 90 basis points
to 3.41%. As a result, the seven-day to one year municipal yield curve steepened
from 25 to 72 basis points.
Yields on short-term Connecticut issues reflected this general rise. In October,
1993 six month Town of North Stonington, Connecticut Bond Anticipation Notes
were priced to yield 2.53%. Twelve months later, in October 1994, six month Town
of Columbia, Connecticut Bond Anticipation Notes were priced to yield at 3.72%,
119 basis points higher.
Shawmut Connecticut Municipal Money Market Fund benefited from this general rise
in interest rates. At the October 1993, fiscal year end, The Fund was relatively
new, showing combined assets (Trust Shares plus Investment Shares) of $6.5
million. The average maturity was three days. Since then, the Fund has grown to
$115 million. Taking advantage of the steep short-term municipal yield curve,
the average maturity of the Fund was increased to 58 days. The Fund also
maintained at least 50% of its assets in short-term variable rate instruments.
The Fund's seven-day, net yield, benefiting from this strategy, rose 94 basis
points. The Fund remains committed to maintaining a high quality portfolio
limiting purchases exclusively to tier I credit quality. During the period ended
October 31, 1994, the holdings grew from 2 to 29 different issues. Before a
security is purchased, our credit analysts review and rate the issue. Then our
approval committee must pre-approve the issue. Only then may the issue be
purchased.
Moving into the new fiscal year, we foresee increases in short-term interest
rates as the Fed remains committed to its objective of non-inflationary economic
growth. In response the Fund will target 50% of its holdings to variable rate
demand notes and target an average maturity of sixty days. This strategy, the
equivalent of a barbell for a non-municipal money market fund, may allow the
Fund to quickly benefit from any general market rise in interest rates and also
take advantage of the steep short-term yield curve.
* Past performance is not indicative of future results.
** This index is unmanaged.
Massachusetts Municipal Money Market Fund
Over the past year, short-term interest rates have risen, especially beginning
in February 1994, when the Fed boosted the Federal Funds rate 175 basis points
in five consecutive steps attempting to slow the Gross Domestic Product to a
sustainable non-inflationary 2.50%. The Bond Buyer One Year Note Index* rose 135
basis points to 4.13%. The Public Securities Association Municipal Swap Index*,
a measure of seven-day variable rate demand notes, rose 90 basis points to
3.41%. As a result, the seven-day to one year municipal yield curve steepened
from 25 to 72 basis points.
Yields on short-term Massachusetts issues reflected this general rise in
interest rates. In October 1993, Framingham 10-month Bond Anticipation Notes
were priced to yield 2.75%. Twelve months later in October 1994, ten-month
Framingham, Massachusetts Bond Anticipation Notes were again competitively
priced. This time the yield was 4.15%, 140 basis points higher.
Shawmut Massachusetts Municipal Money Market Fund benefited from this general
rise in interest rates. At the October 1993, fiscal year end, The Fund was
relatively new with assets of only $1.2 million. The average maturity was three
days. Since then, the Fund has grown to $31.5 million. Taking advantage of the
steep short-term municipal yield curve, the average maturity of the Fund was
increased to 36 days. The Fund also maintained at least 30% of its assets in
short-term variable rate paper. The Fund's seven-day net yield benefitted from
this strategy, increasing by 90 basis points.** The Fund remains committed to
maintaining a high quality portfolio limiting purchases exclusively to tier I
credit quality. For the fiscal year ended October 31, 1994, the holdings have
grown from 2 to 24 different issues. Before a security is purchased, our credit
analysts review and rate the issue. Then our approval committee must pre-approve
the issue. Only then may the issue be purchased.
Moving into the new fiscal year, we foresee increases in short-term interest
rates as the Fed remains committed to its objective of non-inflationary economic
growth. In response, the Fund will target 50% of its holdings to variable rate
demand notes and target an average maturity of sixty days. This strategy, the
equivalent of a barbell for a non-municipal money market fund, may allow the
Fund to quickly benefit from any general market rise in interest rates and the
steep short-term yield curve.
Limited Term Income Fund
Yield levels of all fixed income securities increased dramatically over the past
year. For example, the yield on U.S. Treasury two-year securities went from a
low of 3.77% in October 1993, to a high of 7.05% as of October 31, 1994. During
most of this time, the interest rate risk exposure of Shawmut Limited Term
Income Fund was equal to or slightly less than that of its benchmark, the
Merrill Lynch one to five year Government-Corporate Bond Index.* During this
period of almost uniformly rising interest rates, this strategy proved
effective.
Throughout the year, the Fund increased its holdings of corporate securities,
which tend to do well in a strong economic environment. In the first and second
quarters of 1994, however, corporate yield spreads widened as the Fed initiated
its tightening of short-term interest rates and some investors were forced to
liquidate holdings due to either mutual fund redemptions or the unwinding of
leveraged positions. The Fund used this widening of spreads as a strategic
opportunity to increase its holdings of short-term corporate securities with
maturities of between two and three and one-half years, where the market fairly
compensated investors for the risk of further tightening.
For the first three quarters of the period the Fund concentrated its holdings in
relatively long (i.e., five year) and short (i.e., less than one year) maturity
securities to create what is commonly referred to as a "barbell" position while
maintaining a portfolio duration equal to that of its benchmark. This is a
defensive position in a rising interest rate environment because it increases
the frequency at which the short-term maturity securities can be reinvested at
higher rates. The Fund's performance benefited from this position as the Fed's
moves to raise short-term interest rates exceeded expectations. Currently, the
Fund is still slightly barbelled, but it is being moved to what is commonly
referred to as a "bulleted" position, the market having already discounted an
aggressive monetary policy posture by the Fed over the course of the next year.
The steep slope of the yield curve at the short end, therefore, adequately
compensates investors for assuming the risk of further Fed tightening.
* This index is unmanaged.
** Past performance is not indicative of future results.
For most of the period, the Fund maintained an interest rate risk weighting
which was neutral to its one to five year maturity benchmark. This weighting was
extended slightly to capitalize on the opportunity to "rolldown" the extremely
steep yield curve after the August 1994 increase in the Federal Funds rate
because another increase was not expected until the Fed policymakers had time to
evaluate the economic impact of the latest action. The Fund intends to allow its
maturities to rolloff to a neutral weighting prior to the next Federal Reserve
Open Market Committee meeting. This neutral weighting will be maintained until
it is evident that the economy's average growth rate is slowing to a level
consistent with its long-term non-inflationary growth rate which the Fed has
identified as its goal.
The turmoil in the fixed income market since February 1994 has pushed bond
prices to deeply undervalued levels which historically have led to significant
bond rallies. These attractive valuations and the pervasive negative sentiment
suggest that the bond bear market is drawing to a close and that a rally will
take hold when cyclical economic conditions show signs of softening. However,
there remains a significant risk that the Fed may have to move from a neutral
monetary policy to a restrictive monetary policy as a means of slowing the
economy and thereby controlling inflationary pressures. In this case, the short
end of the yield curve will continue to bear the brunt of this policy. For these
reasons, and because high real yields provide insulation against potential
capital loss, we are maintaining a duration weighting neutral to the benchmark,
but we are remaining poised to extend the Fund's duration when signs of economic
slowing become apparent.
Intermediate Government Income Fund
Shawmut Intermediate Government Income Fund was established in December 1992 to
provide the opportunity for current income consistent with total return from a
professionally managed portfolio of fixed income securities composed primarily
of U.S. government securities of intermediate maturity. The Fund uses investment
disciplines which Shawmut Bank has used successfully since 1984. The emphasis of
these disciplines is to closely monitor the risk of the Fund's investment
relative to an appropriate broad-based securities market index. The total risk
of the Fund is limited to conform to a level which is no greater than 120% of
the broad-based securities market index and no less than 80% of that index. For
the Fund, the market index used is the Lehman Brothers Government/Corporate Bond
Index.*
During the general rise in interest rates during the past year, the intermediate
part of the bond market, on a risk adjusted basis, has been hit particularly
hard. Since 55% of the present value of the intermediate market is between one
and three years, rising short-term interest rates (which tend to push up
interest rates in the one to three year area commensurably) had a ripple effect
on the entire intermediate sector. This effect is even more pronounced when the
rising interest rates on the short end are not matched by rising interest rates
on the long end and the yield curve flattens. This was the case in the last year
and it is expected to continue until the business cycle rolls over into sluggish
growth or outright recession. The strategy adopted to deal with this change in
the yield curve was to "barbell" the portfolio maturity structure, avoiding the
two to five year area of the curve, during the first and second quarters of
1994. During the second quarter of 1994, the flattening pattern reached our
objective and the Fund returned to a more neutral distribution of cash flows.
However, since we expect the yield curve to flatten further during the rest of
1994 and into early 1995, the Fund is underweighting the one to three year area
of the curve and overweighting the seven to ten year part of the curve. This
also produces a duration, or interest rate risk exposure, greater than the
market as a whole. This duration reflects both our expected yield curve
movements and the extreme valuation levels the bear market in bonds has brought
about. Even at a cyclical inflation peak of 4.5% (higher than we believe it will
be) ten year Treasury bonds would offer an attractive real yield of over 4%. The
strategy will perform optimally if the short end of the yield curve rises in
yield and the long end of the curve stays the same or falls in yield.
The Fund continued to purchase government guaranteed securities offering higher
yields than Treasury securities during the period ended October 31, 1994.
Especially pronounced was the decision to hold an increasingly active positive
position in mortgage-backed securities during the last year. This strategy has
proven to generate positive returns over the last year, and, as most of the
mortgage-backed securities held by the Fund will provide capital gains if
prepayments accelerate, we believe they may continue to provide positive
incremental returns.
The Fund remains an extremely high quality investment with high current yields
from securities primarily guaranteed by the U.S. government or its agencies.
* This index is unmanaged.
Fixed Income Fund
Shawmut Fixed Income Fund was established in December of 1992 to provide current
income consistent with total return from a professionally managed portfolio of
investment grade fixed income securities. The Fund uses investment disciplines
which Shawmut Bank has used successfully since 1984. The emphasis of the process
is to constantly monitor the risk of the Fund relative to an appropriate broad
based securities index. The risk on the Fund's returns is controlled by limiting
the fund's exposure to conform with a level which is no less than 80% or no more
than 120% of the broad-based securities market index. The market index used for
the Fund is the Lehman Brothers Government/Corporate Bond Index.*
During the fiscal year the fixed income market sold off sharply. The Fed has
raised the Federal Funds rate significantly with more increases expected soon.
At the end of October 1994, the Federal Funds rate was at 4.75%, up from 3.00%
at the end of October 1993. These increases in short-term yields caused
increases in long-term yields that are among the sharpest over the last 50
years.
The Fund's duration was lower relative to the Lehman Government/Corporate Bond
Index* in November 1993. Duration is a measure of price sensitivity to changes
in interest rates. As interest rates rose, the Fund began to increase its
duration. Ten year interest rates close to 8.00% represent fundamental value.
Inflation is less than 3.50% and even if it accelerates to 4.00%, a 8.00% ten
year interest rate will give a 4.00% inflation premium. A 4.00% inflation
premium historically is wider than normal.
The Fund has positioned its maturity structure to benefit from rising interest
rates. The yield on short-term maturities will move up faster than the yield on
long-term maturities. The Fund has increased its exposure to both the short end
and the long end of the maturity spectrum. At the same time, the exposure to the
two to seven year maturities was reduced. This strategy has worked well as the
curve has flattened. We continue to believe that there may be a further increase
in short-term interest rates and continue to de-emphasize the two to seven year
maturities.
Management of the Fund believes that long-term bonds offer good value at these
levels and overexposure is warranted. We continue to look for securities that
offer the potential for good yields relative to the credit and maturity risk.
Early in the year, the Fund's exposure to corporate and Canadian bonds was
increased. Recently, the yield spreads between corporates and U.S. Treasury
issues have narrowed, and the Fund has started to reduce its exposure to
corporates and particularly medium grade credits with maturities longer than ten
years. The proceeds of these sales are being reinvested in long-term U.S.
Treasury issues and short-term corporate issues. This strategy will benefit the
Fund as we expect quality spreads to widen in the coming months.
Although 1994 has been an extremely disappointing year, the Fund is well
positioned to take advantage of the opportunities that the sell-off in the fixed
income markets have presented.
* This index is unmanaged.
Connecticut Intermediate Municipal Income Fund
Shawmut Connecticut Intermediate Municipal Income Fund was created to provide a
high level of current income exempt from Federal and Connecticut state income
taxes.* At the close of the Fund's fiscal year, the portfolio was comprised of
bonds with an average maturity of approximately 8.4 years. It is the policy of
the Fund to maintain a weighted average maturity no longer than 10 years. A high
credit quality standard is being maintained with nearly 90% of assets rated AA
or higher, with the balance of the portfolio being A rated. These standards are
based on the highest ratings supplied to portfolio securities by Standard &
Poor's Ratings Group and Moody's Investors Service, Inc.
The Fund is widely diversified, encompassing twenty separate issues of the
state, its agencies, cities and towns, hospitals, higher education institutions
and clean water obligations, spreading credit risk over a broad universe. The
largest positions in the Fund are Connecticut Transportation Infrastructure
bonds and direct state obligations, representing 21% and 19%, respectively, of
the Fund's market value.
The average duration, or interest rate risk position, of the Fund as of October
31, 1994, was 6.3 years, roughly one-half year shorter than a year ago. As a
comparison, a broad market index of ten year general obligation bonds has a
duration of 7.1 years.
During the year, the economy showed signs of stronger growth, which sparked
fears of higher inflation rates. The Bond Buyer 20 Bond Index** increased from a
5.31% on October 28, 1993, to a 6.64% on October 27, 1994, which translates into
a price decline of 9.00% for AA-rated ten-year general obligations.
During the fiscal year, concerted effort has been exerted to moderate the impact
of market volatility as interest rates have moved rapidly in a very short time.
Most of our efforts have been directed toward upgrading lower coupon holdings to
higher coupons, which have provided better retention of value in falling bond
markets. Compared to a year ago, we have raised the weighted average coupon from
4.60% to 5.26%. 70% of the Fund's assets bear weighted coupons of 5.00% or
higher. Whenever municipal bond market sentiment reverses, we believe we may be
well positioned to take advantage of whatever recovery takes place.
Massachusetts Intermediate Municipal Income Fund
Shawmut Massachusetts Municipal Income Fund was created to provide a high level
of current income exempt from Federal and Massachusetts state income taxes.* At
the close of the Fund's fiscal year, the portfolio was comprised of bonds with
an average maturity of approximately 9.0 years. It is the policy of the Fund to
maintain a weighted average maturity no longer than ten years. A high credit
quality standard is being maintained with approximately 68% of the municipal
securities rated AA or higher, with the balance of the portfolio being A rated.
These standards are based on the highest ratings supplied to portfolio
securities by Standard & Poor's Ratings Group and Moody's Investors Service,
Inc.
The Fund is widely diversified, encompassing 30 separate issues of the state,
its agencies, cities and towns, hospitals, higher education institutions and
clean water obligations, spreading credit risk over a broad universe. The
largest positions in the Fund are direct obligations of the Commonwealth of
Massachusetts and insured Massachusetts Municipal Wholesale Electric Co. bonds,
representing 13.00% and 9.00%, respectively, of the Fund's total market value.
The average duration, or interest rate risk position, of the Fund as of October
31, 1994, was 6.7 years, roughly one-half year shorter than a year ago. As a
comparison, a broad market index of ten year general obligation bonds has a
duration of 7.1 years.
During the fiscal year, the economy showed signs of stronger growth, which
sparked fears of higher inflation rates. The Bond Buyer 20 Bond Index**
increased from a 5.31% on October 28, 1993, to 6.64% on October 27, 1994, which
translates into a price decline of 9.00% for a AA-rated ten-year general
obligations.
* Income may be subject to the Federal alternative minimum tax.
** This index is unmanaged.
During the fiscal year, concerted effort has been exerted to moderate the impact
of market volatility as interest rates have moved rapidly in a very short time.
Most of our efforts have been directed toward upgrading lower coupon holdings to
higher coupons, which have provided better retention of value in falling bond
markets. Compared to a year ago, we have raised the weighted average coupon from
4.85% to 5.26%. Whenever municipal bond market sentiment reverses, we believe we
may be well positioned to take advantage of whatever recovery takes place.
Growth and Income Equity Fund
October 31, 1994, Shawmut Growth and Income Equity Fund was approximately 93%
invested in common and convertible preferred stocks, with the remainder held in
money market instruments. As of October 31, 1994, the Fund's portfolio, in
keeping with its long-term objective, generated annual income at a rate of 3.2%,
almost 15% higher than the 2.8% rate of the S&P 500.* For the fiscal year ended
October 31, 1994, the Fund reported a total return of 9.45%** for Trust Shares,
substantially outperforming the 3.93% return of the S&P 500.* For the same
period, the total return for Investment Shares of the Fund was 4.71%**. This
performance was achieved during a difficult stock market environment impacted by
rising interest rates. During this period, underweighting of electric utility
and financial stocks by management of the Fund contributed to its stronger than
market performance.
Also contributing to the Fund's stronger than market performance were reduction
of basic industry stocks into market strength (i.e., stocks that were
outperforming the market index) and overweighting of technology and health care
stocks relative to the S&P 500. Finally, stocks selected in the consumer
cyclical and transportation sectors considerably outperformed their respective
S&P 500 benchmarks and contributed to the Fund's stronger than market results.
Due to positions in American Cyanamid Co. and NBB Bancorp, the Fund is currently
more defensive than its 93% invested level would indicate. These very defensive
positions, representing approximately 2.00% of the total Fund portfolio, could
be considered investment reserves. Additionally, the Fund portfolio is
characterized by above-average growth potential combined with a more defensive
value orientation. At 10.90%, the estimated annual long-term earnings growth of
the Fund portfolio is well ahead of the 8.00% estimated annual long-term
earnings growth of the S&P 500. Moreover, the average trailing twelve month
price per earnings ratio of the Fund portfolio is 19.2 times earnings compared
to 20.7 times earnings for the S&P 500.
Management continues to redirect the Fund portfolio to meet the changing
environment. As the economic expansion begins to slow, established companies
with predictable earnings growth will be in demand. McDonald's and Toys R Us
have been added to the Fund portfolio to increase its weighting in growth
stocks. Interest rate-sensitive stocks have been battered since the Fed began to
tighten credit in February 1994. While further tightening by the Fed is
expected, the prices of many interest rate-sensitive stocks already reflect this
prospect. At current levels, Fleet Financial Group, Masco Corp., and Niagara
Mohawk Power are considered reasonably valued by management and have been added
to the Fund portfolio. Aided by a dollar conveniently weakening during a
world-wide recovery, leaner and more efficient American corporations are poised
to satisfy the demand of growing world markets for wide-ranging goods and
services. In the Fund portfolio, General Electric, Procter & Gamble, and
Minnesota Mining & Manufacturing are well positioned to benefit from these
developments.
Growth Equity Fund
Shawmut Growth Equity Fund was established in December 1992 to provide the
opportunity for investment in a diversified portfolio of stocks of companies
with superior growth potential. The typical company in the Fund's portfolio has
an earnings growth rate that is at least 150% of the typical company represented
in the S&P 500.* During the fiscal year ended October 31, 1994, the Fund's value
benefitted from the investment in such fundamentally strong companies.
At this time last year, long-term interest rates had fallen below 6.00%, a
level that had not been seen in over 22 years. Such a falling interest rate
environment is typically good for the stock market. This environment did not
continue in this fiscal year. To the contrary, in a dramatic twelve month
reversal, long-term interest rates rose above 8.00%, a rate of change that has
not occurred since the late sixties. As one would expect, such a rapidly rising
interest rate environment is harmful to the stock market.
* This index is unmanaged.
** Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
While the stock market, as represented by the S&P 500, significantly
outperformed the bond market, its 3.93% return for the year barely managed to
beat holding cash. The effect of good corporate earnings narrowly outweighed the
effect of rising interest rates. However, the battle over the last twelve months
was harsh, and not without severe casualties among some individual securities
and periods of extreme volatility for the market as a whole.
Within this backdrop, the Trust Shares of the Fund performed well. For the
fiscal year ended October 31, 1994, the Growth Equity Fund Trust Shares' 4.16%**
total return was 23 basis points ahead of the S&P 500's 3.93% total return. This
6.00% performance advantage was in keeping with the Fund's growth
characteristics, which had a portfolio of companies whose 15.70% five-year
earnings growth expectation was 95% greater than the 8.00% five-year growth
expected for the companies in the S&P 500. For the fiscal year ended October 31,
1994, the total return for Investment Shares of the Growth Equity Fund was
(.33%)**
The industry sectors most responsible for the Fund's Trust Shares'
outperformance, for the fiscal year ending October 31, 1994, were the Energy,
Finance, Healthcare, and Technology sectors. While corporations investment in
productivity-enhancing technologies and the unraveling of President Clinton's
Healthcare agenda were key to the performance of the Healthcare and Technology
sectors, individual stock selections and the timing of such selections were key
to the performance of the Shares' Energy and Finance sectors, which rose in the
face of falling oil and gas prices and rising interest rates.
We believe the stock market may continue to be as volatile in fiscal year 1995
as it has been in fiscal year 1994. This volatility may continue as a result of
an ongoing battle between good corporate earnings reports and the upward
pressure on interest rates associated with an expanding economy. We will
continue to seek out companies whose prospects are significantly greater than
that of the market and, therefore, we may mitigate the potential impact of
rising interest rates.
Small Capitalization Equity Fund
For the fiscal year ended October 31, 1994, the total return for Investment
Shares of the Shawmut Small Capitalization Fund was (2.45%).** For the same
period, the total return for Trust Shares of the Fund was 1.86%.** These total
return figures were in line with the return of (0.31%) for the Russell 2000* for
the same period.
The year was difficult for many investors as we saw considerable volatility in
the stock market. The Fund lagged the Russell 2000 returns for the first six
months of the fiscal year. The Fund posted strong results vs. the Russell 2000
for the most recent six months. The Fund tends to perform well in poor markets
or markets that are not moving up aggressively. The fiscal year saw periods
where the Fund had strong outperformance and other periods where aggressive
growth funds did much better.
The Fund has carried significant overweighting in the technology sector as we
have found considerable value in many companies in this area. The mainframe
software area has also been a focus of our investment. While the growth rate for
mainframe computers is slowing sharply, the software companies selling into this
market are valued attractively. Most of these companies are working to transfer
their software to the new client server market. We feel that the low valuations,
along with the potential for accelerated growth due to the software conversions,
will provide the opportunity for strong gains. We have seen this become a
reality with holdings such as Legent and Boole & Babbage.
The Fund participates in what many call the micro cap market. Our average market
capitalization is $250 million. This is on the small side for most funds. Many
of the companies of this size have not had strong market recognition due to lack
of market liquidity. Of late we have seen growing interest in this segment of
the market as both the public and institutions are putting money into this area.
In the last few months, we detect a change in the market attitude towards this
market segment with investors showing a willingness to make investments in
smaller companies. This trend may help the performance of the Fund.
* This index is unmanaged.
** Performance quoted represents past performance. Investment return and
principal value will fluctuate so that an investors' shares, when redeemed,
may be worth more or less than their original cost.
With the sharp market correction in the first half of 1994, we have identified
many opportunities to invest cash reserves. Purchases have tended to be
specifically related to individual stocks rather than sectors. Our feeling is
that successful returns in the future will come from good stock selection rather
than sector emphasis. While there are many small cap stocks at very high
valuations, we feel our portfolio represents significant value and should fare
well as valuations on our holdings improve.
Quantitative Equity Fund
Shawmut Quantitative Equity Fund had been in existence for only four months as
of the Fund's fiscal year ended October 31, 1994. Significant investments in the
Fund beyond its initial funding were made in August 1994. Over its short life
span, the Fund has invested 43.3% of its assets in 24 stocks. In accordance with
the Fund's discipline, positions ranging from 1.00% to 2.50% of the portfolio
were established.
Since inception, the total return reported for Trust and Investment Shares of
the Fund were 0.94% and (3.11%), respectively,* relating to the Fund's large
cash position in a market that has risen.
The five largest stock positions of the Fund at fiscal year end were Home Depot,
Inc., Maytag Corp., Federal Home Loan Mortgage Corp., AT&T Corp., and Federal
National Mortgage Association. These and the other stocks in the portfolio were
selected because extensive quantitative analysis showed that they were about to
reverse recent price declines or would continue recent price advances and
represented sound long-term fundamental value.
The key factor in the investment strategy of the Fund is a consistent analysis
of the universe of stocks incorporated into a strict investment discipline. The
discipline governs both the buying and selling sides. Stocks are sold in
accordance with certain quantitative signals or after certain price movements.
On a long-term basis, the portfolio will consist of mid to large capitalization
stocks that are less volatile than the market as a whole and have lower price
per earnings ratios than the market. The average holding period for portfolio
stocks will be about one year.
The conservative pace of the initial investment of the Fund will serve the
initial investors well as the investment disciplines applied have had the Fund
maintaining a significant cash position as cross currents of perceptions of
various fundamental developments have sent the equity markets cascading lower.
We would anticipate taking advantage of investor overreaction to even the best
companies and building a diversified portfolio of equities, poised for
significant future appreciation.
* Performance quoted represents past performance. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
THE SHAWMUT FUNDS
Portfolios of Investments October 31, 1994
PRIME MONEY MARKET FUND
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
CERTIFICATES OF DEPOSIT_6.4%
$25,000,000 Harris Trust & Savings Bank of
Chicago, 4.90%, 12/1/94 $25,000,000
12,000,000 Old Kent Bank & Trust Co.,
4.90%, 11/16/94 12,000,000
5,000,000 Southtrust Bank of Alabama,
4.95%, 11/2/94 5,000,000
----------
TOTAL CERTIFICATES OF DEPOSIT 42,000,000
----------
(a)COMMERCIAL PAPER_65.4%
Automotive_4.5%
30,000,000 General Motors Acceptance Corp.,
4.85%-5.40%, 11/21/94-1/12/95 29,737,061
----------
Computer_3.8%
25,000,000 International Business Machines,
5.42%, 1/19/95 24,702,653
----------
Finance-Automotive_11.9%
28,000,000 Ford Motor Credit Co., 5.00%-5.40%,
11/3/94-1/4/95 27,853,258
20,000,000 General Electric Capital Corp.,
4.75%-5.46%, 11/1/94-1/17/95 19,854,029
30,000,000 Toyota Motor Credit Corp.,
4.97%-5.40%, 11/1/94-1/10/95 29,973,486
----------
Total 77,680,773
----------
Finance-Commercial_4.2%
27,300,000 Cargill, Inc., 4.80%-4.95%,
11/7/94-11/10/94 27,274,740
----------
Finance-Receivables_0.9%
6,000,000 IBM Credit Corp., 5.45%, 1/6/95 5,940,050
----------
Finance-Retail_9.2%
29,000,000 Beneficial Corp., 4.78%-5.40%,
11/7/94-1/17/95 28,790,992
30,000,000 Commercial Credit Corp.,
4.77%-5.40%,
11/16/94-1/19/95 29,837,555
2,000,000 Merrill Lynch & Co., Inc., 5.47%,
1/10/95 1,978,728
----------
Total 60,607,275
----------
Food & Beverage_2.4%
16,000,000 PepsiCo, Inc., 5.02%, 11/2/94 15,997,769
----------
Funding Corporation_6.1%
15,000,000 B.A.T. Capital Corp., 5.05%,
11/10/94 14,981,063
25,000,000 Barclays U.S. Funding Corp.,
5.34%, 1/20/95 24,703,333
----------
Total 39,684,396
----------
Healthcare4_.4%
29,000,000 Smithkline Beecham Corp.,
5.33%-5.40%, 1/9/95-1/17/95 28,682,638
----------
Insurance_3.0%
20,000,000 AIG Funding, Inc., 5.35%-5.43%,
1/10/95-1/17/95 19,775,562
----------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
Oil and Finance_4.4%
$29,000,000 Chevron Oil Finance Co.,
4.75%-5.40%,
11/1/94-1/11/95 $28,944,550
----------
Real Estate_3.8%
18,000,000 Hilton Hotels Corp., 4.92%-5.38%,
11/3/94-1/18/95 17,904,013
7,000,000 PHH Corp. 4.98%, 11/4/94 6,997,095
----------
Total 24,901,108
----------
Telecommunications_4.5%
30,000,000 American Telephone & Telegraph Co.,
4.78%-5.42%, 11/3/94-1/17/95 29,778,478
----------
Utilities_2.3%
15,000,000 Baltimore Gas & Electric Co.,
4.82%, 11/10/94 14,981,925
----------
TOTAL COMMERCIAL PAPER 428,688,978
----------
GOVERNMENT OBLIGATIONS_6.5%
5,000,000 Federal Farm Credit Bank, 3.83%,
3/1/95 4,992,231
4,875,000 Federal Home Loan Bank, 9.00%,
3/27/95 4,957,869
28,000,000 Federal Home Loan Bank
Discount Notes, 4.29%-5.31%,
1/23/95-3/23/95 27,643,172
5,000,000 U.S. Treasury Bills, 11/17/94 4,992,267
----------
TOTAL GOVERNMENT OBLIGATIONS 42,585,539
----------
(b)VARIABLE RATE
INSTRUMENTS_13.7%
Banking-Commercial_6.9%
5,000,000 Old Kent Bank & Trust Co.,
4.152%, 11/21/94 5,000,000
20,000,000 PNC Bank N.A., 5.335%, 11/1/94 19,991,739
20,000,000 Southtrust Bank of Alabama, 5.00%-
5.125%, 11/14/94-11/28/94 20,000,000
----------
Total 44,991,739
----------
Finance-Automotive_1.3%
8,607,000 General Electric Capital Corp.,
4.648%, Master Note, 11/7/94 8,607,000
----------
Finance-Retail_4.0%
26,000,000 Merrill Lynch & Co., Inc.,
4.94%-5.35%, Medium Term Note,
11/1/94 26,011,000
----------
Food & Beverages_1.5%
10,000,000 PepsiCo, Inc., 5.335%, Medium Term
Notes, 11/1/94 10,000,000
----------
TOTAL VARIABLE RATE INSTRUMENTS 89,609,739
----------
CORPORATE NOTE_0.6%
3,926,072 Caterpillar Financial Services,
4.688%, 6/25/95 3,926,072
----------
</TABLE>
PRIME MONEY MARKET FUND (cont'd)
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value
<C> <S> <C>
MUTUAL FUND SHARES_3.9%
865,778 Dreyfus Cash Management $ 865,778
24,803,907 Fidelity Institutional Cash Money
Market Fund 24,803,907
----------
TOTAL MUTUAL FUND SHARES
(AT NET ASSET VALUE) 25,669,685
----------
(c)REPURCHASE AGREEMENT_3.8%
$25,000,000 HSBC Securities, Inc., 4.75%, dated
10/31/94, due 11/1/94 25,000,000
----------
TOTAL INVESTMENTS,
AMORTIZED COST AND VALUE $657,480,013(D)
----------
----------
</TABLE>
CONNECTICUT MUNICIPAL
MONEY MARKET FUND
<TABLE>
<CAPTION>
Credit
Ratings:
Moody's
Principal or
Amount S&P's(e) Value
<C> <S> <C> <C>
SHORT-TERM MUNICIPAL
SECURITIES_90.3%
Connecticut_85.8%
$2,000,000 Chesire, CT, 4.25% GO UT
Bonds, BANs, 8/10/95 NR $2,003,665
1,055,000 Connecticut State, HFA,
HMFP, 2.80%, (Sub-series E-1),
11/15/94 Aa 1,055,000
900,000 Connecticut State, 3.90%
GO UT Refunding Bonds,
(Series C), 3/15/95 Aa 902,419
2,600,000 Connecticut State, 4.90%
GO UT Refunding Bonds,
(Series B), 5/15/95 Aa 2,621,645
1,500,000 Connecticut State, 5.25%
GO UT Economic Recovery
Bonds, (Series A),
12/15/94 Aa 1,504,518
1,700,000 Connecticut State, 7.00%
GO UT Refunding Bonds,
(Series B), 3/15/95 Aa 1,720,043
700,000 Connecticut State, 8.25%
GO UT Bonds, (Series A),
3/15/95 Aa 712,541
7,700,000 Connecticut State, Weekly
VRDNs, GO UT Economic
Recovery Refunding Bonds,
(Series B)/(Sink 12/1/94 6
100)/(Industrial Bank of
Japan SPA) VMIG1 7,700,000
3,000,000 Connecticut State
Development Authority,
3.50% General Accident
Insurance Co. Revenue
Bonds, 12/1/2013 AA 3,000,000
<CAPTION>
Credit
Ratings:
Moody's
Principal or
Amount S&P's(e) Value
<C> <S> <C> <C>
$3,100,000 Connecticut State
Development Authority,
Monthly VRDNs, Revenue
Refunding Bonds, (Allen
Group, Inc.)/(Union Bank
of Bavaria LOC) Aaa $3,100,000
1,300,000 Connecticut State
Development Authority,
Weekly VRDNs, Revenue
Bonds, (Conco Pro-
ject)/(Bayerische
Vereinsbank LOC) Aaa 1,300,000
700,000 Connecticut State
Development Authority,
Weekly VRDNs,
(Martin-Brower Co.
Project)/ (Chemical Bank
LOC) A1 700,000
17,200,000 Connecticut State
Development Authority PCR,
Weekly VRDNs, Refunding
Bonds, (Connecticut
Lighting & Power
Co.-Project A)/ (Deutsche
Bank LOC) VMIG1 17,200,000
4,000,000 Connecticut State
Development Authority,
Monthly VRDNs, (Zotos
International, Inc. Pro-
ject)/(Dai-Ichi Kangyo LOC) A+ 4,000,000
1,300,000 Connecticut State
Development Authority,
Monthly VRDNs, (Trudy
Corp. Project-1984)/
(Citibank LOC) A+ 1,300,000
725,000 Connecticut State
Development Authority,
Monthly VRDNs, Revenue
Bonds, (Jewish Community
Center Project)/(Sink
9/1/95 6 100)/(Subject to
AMT)/(Fleet National Bank
LOC) A 725,000
2,600,000 Connecticut State
Development Authority PCR,
Monthly VRDNs, (Central
Vermont Public
Service)/(Toronto Dominion
Bank LOC) AA 2,600,000
8,300,000 Connecticut State
Development Authority
Health Care, Weekly VRDNs,
Revenue Refunding Bonds,
(Corporate Independent
Living Project)/(Sink
7/1/95 6 100)/(Credit
Commercial de France LOC) VMIG1 8,300,000
400,000 Connecticut State HEFA,
Weekly VRDNs, Revenue
Bonds, (Charlotte Hunger-
ford)/(Series B)/(Sink
7/1/95 6 100)/(Mitsubishi
Ltd. LOC) VMIG1 400,000
</TABLE>
CONNECTICUT MUNICIPAL MONEY MARKET FUND (cont'd)
<TABLE>
<CAPTION>
Credit
Ratings:
Moody's
Principal or
Amount S&P's(e) Value
<C> <S> <C> <C>
$1,000,000 Connecticut State HEFA,
Weekly VRDNs, Revenue
Bonds, (Kent
School)/(Series
A)/(Barclays Bank PLC LOC) AA $1,000,000
1,300,000 Connecticut State HEFA,
Monthly VRDNs, Revenue
Bonds, (Yale-New Haven
Hospital)/(Series
E)/(Callable
12/16/94 6 100.125)/(FGIC
Insured)/(Mellon Bank SPA) VMIG1 1,300,000
95,000 Connecticut State HFA,
5.30% Revenue Bonds,
11/15/94 Aa 95,046
2,600,000 Connecticut State HFA,
3.55% Revenue Refunding
Bonds, (Housing Mortgage
Finance)/ (Series D),
Mandatory Put
5/16/95 VMIG1 2,600,000
4,000,000 Connecticut State Special
Assessment Unemployment
Compensation Advance Fund,
3.85% Revenue Bonds,
(Series C)/(FGIC Insured),
Mandatory Put 7/1/95 AAA 4,000,000
4,300,000 Connecticut State Special
Assessment Unemployment
Compensation Advance Fund,
Weekly VRDNs, (Series B)/
(Sink 11/1/99 6 100)/(Mit-
subishi Bank Ltd. LOC) VMIG1 4,300,000
6,500,000 Connecticut State Special
Tax Obligations, Weekly
VRDNs, Revenue Bonds,
(Sink
12/1/94 6 100)/(Industrial
Bank of Japan LOC) VMIG1 6,500,000
3,514,000 Danbury, CT, 3.17% GO UT
Bonds, BANs, 1/9/95 NR 3,514,446
445,000 Danbury, CT, 6.40% GO UT
Improvement Bonds, 2/1/95 Aa 448,024
1,940,000 Farmington, CT, 3.63% GO
UT Bonds, BANs, 7/20/95 NR 1,940,391
400,000 Killingly, CT, 3.29% BANs,
(Series B), 12/15/94 NR 400,089
1,818,000 Litchfield, CT, 4.25% GO
UT Bonds, BANs, 10/25/95 NR 1,822,273
2,500,000 Madison, CT, 3.60% BANs,
4/12/95 NR 2,500,541
2,300,000 New Britain, CT, 2.35% GO
UT Refunding Bonds, BANs,
2/8/95 NR 2,300,181
530,000 Norwalk, CT, 8.00%
Refunding Bonds, 1/1/95 AA+ 533,764
<CAPTION>
Credit
Ratings:
Principal Moody's
Amount or
or Shares S&P's(e) Value
<C> <S> <C> <C>
$4,000,000 Stamford, CT, 3.34% BANs,
3/22/95 NR $4,000,596
550,000 Thompson, CT, 3.94% GO UT
Bonds, BANs, 7/20/95 NR 550,529
----------
Total 98,650,711
----------
Puerto Rico4.5%
5,200,000 Puerto Rico Commonwealth
Highway & Transportation,
Weekly VRDNs, Revenue
Refunding Bonds, (Series
X)/ (Union Bank of
Switzerland/ Swiss Bank
Corp., NY/ Landesbank
Hessen-Thuringen
Girozentrale, NY LOCs) VMIG1 5,200,000
----------
TOTAL SHORT-TERM MUNICIPAL
SECURITIES 103,850,711
----------
Mutual Fund Shares_9.3%
5,186,990 CMA Connecticut Municipal
Money Market Fund 5,162,990
5,522,287 Dreyfus Connecticut
Municipal Money Market
Fund 5,522,287
----------
TOTAL MUTUAL FUND SHARES
(AT NET ASSET VALUE) 10,685,277
----------
TOTAL INVESTMENTS
(AT AMORTIZED COST AND
VALUE) $114,535,988(D)
----------
----------
</TABLE>
MASSACHUSETTS MUNICIPAL
MONEY MARKET FUND
<TABLE>
<CAPTION>
Credit
Ratings:
Moody's
Principal or
Amount S&P's(e) Value
<C> <S> <C> <C>
SHORT-TERM MUNICIPAL
SECURITIES_93.5%
Massachusetts_93.5%
$1,000,000 Avon, MA, 3.18%, RANs,
11/23/94 NR $1,000,105
519,207 Belmont, MA, 3.50%, BANs,
12/1/94 NR 519,478
1,000,000 Boston, MA, Water & Sewer
Commission, Weekly VRDNs
(Series A)/(State Street
Bank & Trust LOC) VMIG1 1,000,000
250,000 Chelsea, MA, 4.00%, GO LT
Bonds (School Project Loan
Act 1948)/(AMBAC Insured),
6/15/95 AAA 250,065
1,500,000 Foxborough, 3.21%, BANs,
11/15/94 NR 1,500,117
</TABLE>
MASSACHUSETTS MUNICIPAL MONEY MARKET FUND (cont'd)
<TABLE>
<CAPTION>
Credit
Ratings:
Moody's
Principal or
Amount S&P's(e) Value
<C> <S> <C> <C>
$ 500,000 Gloucester, MA, 4.50%, GO
LT Refunding Bonds (FSA
Insured), 11/15/94 AAA $ 500,298
1,500,000 Groton, MA, 3.04%, GO UT
Bonds, RANs, 11/15/94 NR 1,500,028
1,000,000 Massachusetts Bay
Transportation Authority,
2.70%, CP, (ABN AMRO Bank
LOC),
11/2/94 NR 1,000,000
1,000,000 Massachusetts Bay
Transportation Authority,
3.25%, CP, (ABN AMRO Bank
LOC),
12/1/94 NR 1,000,000
1,000,000 Massachusetts Bay
Transportation Authority,
3.35%, CP, (ABN AMRO Bank
LOC),
12/1/94 NR 1,000,000
2,000,000 Massachusetts Bay
Transportation Authority,
3.60%, CP, (ABN AMRO Bank
LOC),
1/3/95 NR 2,000,000
1,500,000 Massachusetts State, Daily
VRDNs, GO UT Refunding
Bonds (Series B)/(National
Westminster USA LOC) AAA 1,500,000
900,000 Massachusetts State, Daily
VRDNs, GO UT Refunding
Bonds (Series D)/(ABN AMRO
Bank LOC) VMIG1 900,000
5,000,000 Massachusetts State HEFA,
Daily & Weekly VRDNs, Rev-
enue Bonds (Brigham &
Women's Hospital)/(Series
A)/ (Sanwa Bank Ltd. LOC) A1 5,000,000
700,000 Massachusetts State HEFA,
Weekly VRDNs, CP, Revenue
Refunding Bonds (Tufts
University)/(Series
E)/(Sink 8/1/ 95 6
100)/(First National Bank
of Chicago LOC) VMIG1 700,000
1,000,000 Massachusetts State HEFA,
Weekly VRDNs (Capital
Asset Program)/(Series
G-1)/(MBIA
Insured)/(Credit Suisse,
NY SPA) VMIG1 1,000,000
</TABLE>
<TABLE>
<CAPTION>
Credit
Ratings:
Principal Moody's
Amount or
or Shares S&P's(e) Value
<C> <S> <C> <C>
$ 100,000 Massachusetts State HEFA,
Daily VRDNs, Revenue
Refunding Bonds (Williams
College)/(Series E)/(Sink
8/1/95 6 100) AA $ 100,000
2,700,000 Massachusetts State
Industrial Finance Agency,
Weekly VRDNs, Resource
Recovery Revenue Refunding
Bonds (Ogden
Haverhill)/(Project A)/
(Sink 12/1/99 6
100)/(Union Bank of
Switzerland LOC) VMIG1 2,700,000
365,000 Massachusetts State Port
Authority, 7.75%, Revenue
Bonds (Series
A)/(Prerefunded 7/1/95 6
102)/(Subject to
AMT)/(Original Issue Dis-
count: 7.773%), 7/1/95 AAA 380,681
475,000 Plymouth, MA, 3.33%, BANs,
11/18/94 NR 475,023
1,000,000 Reading, MA, 3.15%, GO LT
Bonds, BANs, 12/15/94 NR 1,000,175
847,000 North Reading, MA, 2.98%,
BANs, 12/16/94 NR 847,080
1,000,000 Southampton, MA, 3.94%,
BANs, 8/1/95 NR 1,000,284
1,000,000 Townsend, MA, 3.48%, RANs,
2/17/95 NR 1,000,378
1,319,231 Westborough, MA, 3.50%,
State Aid Anticipation
Notes,
1/20/95 NR 1,319,952
265,000 Williamstown, MA, 3.93%,
BANs, 8/3/95 NR 265,114
----------
TOTAL SHORT-TERM MUNICIPAL
SECURITIES 29,458,778
----------
MUTUAL FUND SHARES_6.2%
1,359,582 CMA Massachusetts
Municipal Money Market
Fund 1,359,582
606,253 Dreyfus Massachusetts
Municipal Money Market
Fund 606,253
----------
TOTAL MUTUAL FUND SHARES
(AT NET ASSET VALUE) 1,965,835
----------
TOTAL INVESTMENTS
(AT AMORTIZED COST &
VALUE) $31,424,613(D)
----------
----------
</TABLE>
LIMITED TERM INCOME FUND
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
LONG-TERM U.S. TREASURY
OBLIGATIONS_11.0%
U.S. Treasury Notes
$2,000,000 5.625%, 8/31/97 $1,925 620
2,000,000 6.25%, 1/31/97 1,973,120
2,000,000 6.875%, 4/30/97 1,995,000
1,000,000 6.875%, 7/31/99 976,410
----------
TOTAL LONG-TERM U.S. TREASURY
OBLIGATIONS (IDENTIFIED COST
$7,087,971) 6,870,150
----------
LONG-TERM GOVERNMENT
OBLIGATIONS_19.5%
Federal Home Loan Bank_2.9%
633,656 7.00%, 6/1/2010 604,653
607,363 7.00%, 5/1/2019 588,613
606,275 7.50%, 8/1/97 604 947
----------
Total 1,798,213
----------
Federal Home Loan Mortgage
Corp._3.0%
1,000,000 4.60%, 7/13/98 930,156
1,000,000 7.00%, (Series 1204G), 11/15/2005 979,370
----------
Total 1,909,526
----------
Federal National Mortgage
Association_9.0%
5,049,999 6.00%, 9/1/2009 4,571,827
840,036 6.50%, 7/1/2000 801,445
150,006 9.00%, 10/1/97 154,131
101,728 9.00%, 9/1/98 104,526
----------
Total 5,631,929
----------
Federal National Mortgage
Association--REMIC_3.7%
716,791 6.00%, (Series 1993-174KB),
5/25/2008 659,218
1,500,000 7.50%, (Series 1991-160VB),
12/25/98 1,493,970
136,591 8.95%, (Series 1988-10B), 5/25/2003 140,133
----------
Total 2,293,321
----------
Military Housing_0.9%
555,653 8.70%, 4/15/97 559,126
----------
TOTAL LONG-TERM GOVERNMENT
OBLIGATIONS (IDENTIFIED COST
$13,017,916) 12,192,115
----------
CORPORATE BONDS_61.3%
Banking_0.7%
440,000 Security Pacific Corp., 8.49%,
Medium Term Note, 12/27/96 450,802
----------
Finance-Asset Backed_7.3%
83,612 Chase Manhattan Bank, 6.90%,
(Series 1991-A), 9/15/97 83,481
1,065,841 Chase Mortgage Finance Corp.,
6.75%,
(Series 1993-A1), 11/25/2024 1,060,179
1,000,000 CMC Securities Corp., 6.75%,
(Series 1993-A2), 11/25/2023 952,031
1,693,492 Contimortgage Home Equity, 5.125%,
(Series 1994-A1), 3/15/96 1,685,024
<CAPTION>
Principal
Amount Value
<C> <S> <C>
$ 37,696 GMAC Grantor Trust, 5.55%,
(Series 1992-A), 5/15/97 $ 37,448
718,120 ML Asset Back Corp., 5.50%,
(Series 1992-1), 5/15/98 711,384
----------
Total 4,529,547
----------
Finance-Automotive_10.9%
3,000,000 General Motors Acceptance Corp.,
5.625%, Medium Term Note, 10/22/98 2,761,470
1,500,000 General Motors Acceptance Corp.,
6.25%, Medium Term Note 9/12/97 1,444,560
1,000,000 General Motors Acceptance Corp.,
8.00%, Medium Term Note 9/20/96 1,009,460
1,203,344 Premier Auto Trust, 4.65%, 2/2/99 1,163,105
18,430 U.S. Auto Receivables Trust, 8.00%,
3/15/96 18,511
380,901 Volvo Auto Receivables, 4.65%
Grantor Trust 6/15/98 374,711
----------
Total 6,771,817
----------
Finance-Insurance_2.2%
1,500,000 AIG Matched Funding Corp., 5.314%,
9/25/98 1,372,500
----------
Finance-Leasing_8.4%
1,500,000 Comdisco, Inc., 6.20%, 3/5/96 1,480,125
1,500,000 Comdisco, Inc., 7.41%, Medium Term
Note, 6/14/96 1,498,455
300,000 Comdisco, Inc., 9.45%, Medium Term
Note, 4/9/96 308,427
2,000,000 Dr Structured Finance Corp., 8.35%,
2/1/2004 1,962,500
----------
Total 5,249,507
----------
Finance-Mortgage Pass-Through
CMO_1.5%
119,463 Lomas Mortgage Funding Corp.,
9.00%, Collateralized Mortgage
Obligation,
9/20/2015 119,314
864,273 Saxon Mortgage Securities Corp.,
7.375%, 9/25/2023 821,600
----------
Total 940,914
----------
Finance-Service_3.1%
500,000 American Express Co., 7.75%, 3/1/97 504,105
500,000 Smith Barney Holding Corp., 5.375%,
6/1/96 487,215
1,000,000 Smith Barney Holdings Corp.,
5.625%,
11/15/98 920,540
----------
Total 1,911,860
----------
Foreign_0.3%
200,000 International Bank for
Reconciliation & Development,
8.625%, 10/1/95 203,688
----------
Industrial_5.1%
3,000,000 Tenneco Corp., 10.125%, 12/1/97 3,185,550
----------
Railroads_0.4%
245,000 CSX Corp., 8.25%, 11/1/96 249,378
----------
</TABLE>
LIMITED TERM INCOME FUND (cont'd)
<TABLE>
<CAPTION>
Principal
Amount Value
or Shares
<C> <S> <C>
Retail Store_4.2%
$1,500,000 Reebok International, Ltd., 9.75%,
9/15/98 $1,535,205
1,150,000 TJX Cos, Inc., 4.55%, 10/21/96 1,089,464
----------
Total 2,624,669
----------
Securities_1.6%
1,000,000 Lehman Brothers Holdings, Inc.,
6.80%,
1/12/99 1,000,420
----------
Transportation Services_3.2%
1,000,000 Penske Trucking Leasing Co., 7.75%,
Senior Note, 5/15/99 981,520
1,000,000 Ryder System, Inc., 9.375%, 1/15/98 1,005,520
----------
Total 1,987,040
----------
Utilities_12.4%
1,000,000 Commonwealth Edison Co., 6.00%,
3/15/98 942,040
1,000,000 Public Service Electric & Gas Co.,
9.00%, 11/27/96 1,027,250
3,000,000 Texas Utilities Electric Co.,
5.875%, 4/1/98 2,828,580
3,000,000 Virginia Electric & Power Co.,
6.35%,
5/30/96 2,973,570
----------
Total 7,771,440
----------
TOTAL CORPORATE BONDS (IDENTIFIED
COST $39,153,037) 38,249,132
----------
CERTIFICATES OF DEPOSIT_0.7%
500,000 First USA Bank of Wilmington,
5.75%,
1/15/99 (identified cost $498,080) 458,155
----------
Mutual Fund Shares_6.1%
1,334,988 Dreyfus Cash Management 1,334,988
2,491,285 Fidelity Institutional Cash Money
Market Fund 2,491,285
----------
TOTAL MUTUAL FUND SHARES
(AT NET ASSET VALUE) 3,826,273
----------
TOTAL INVESTMENTS
(IDENTIFIED COST $63,583,277) $61,595,825
----------
----------
</TABLE>
INTERMEDIATE GOVERNMENT INCOME FUND
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
LONG-TERM U.S. TREASURY
OBLIGATIONS_28.1%
U.S. Treasury Notes
$2,000,000 8.50%, 7/15/97 $2,070,940
1,000,000 7.875%, 1/15/98 1,018,750
1,000,000 7.25%, 11/15/96 1,007,660
3,000,000 6.75%, 5/31/99 2,920,320
1,000,000 6.25%, 2/15/2003 909,530
1,000,000 6.125%, 7/31/96 990,310
<CAPTION>
Principal
Amount Value
<C> <S> <C>
$2,000,000 6.00%, Treasury Linked Custody
Receipts (Series 1994-A), 8/15/2009 $1,637,700
1,500,000 6.00%, 12/31/97 1,451,010
2,000,000 5.75%, Reconstituted Receipts,
2/15/2005 1,680,740
1,000,000 5.75%, 10/31/97 962,810
1,500,000 5.625%, 8/31/97 1,444,215
1,800,000 5.25%, 7/31/98 1,679,058
1,500,000 4.625%, 2/15/96 1,466,715
----------
TOTAL LONG-TERM U.S. TREASURY
OBLIGATIONS (IDENTIFIED COST
$20,535,027) 19,239,758
----------
LONG-TERM GOVERNMENT
OBLIGATIONS_43.8%
Aid to Peru_3.7%
2,356,666 9.98%, 8/1/2008 2,559,339
----------
Federal Agriculture Mortgage Corp.,
Medium Term Note_1.9%
1,300,000 7.74%, 11/25/2003 1,277,653
----------
Federal Home Loan Bank_4.4%
71,339 7.50%, 8/1/97 71,183
256,788 7.50%, 9/1/97 256,226
165,346 6.50%, 7/1/98 161,264
711,998 6.50%, 9/1/98 694,419
1,296,114 7.00%, 6/1/2010 1,236,791
607,363 7.00%, 5/1/2019 588,613
----------
Total 3,008,496
----------
Federal Home Loan Mortgage Corp.-
ARM_4.1%
3,000,000 4.60%, 7/13/98 2,790,469
----------
Federal Home Loan Mortgage Corp.-
REMIC_5.0%
3,500,000 7.00%, 11/15/2005 3,427,795
----------
Federal National Mortgage
Association_7.1%
14,270 8.50%, 12/1/97 14,507
58,232 8.50%, 4/1/98 59,196
146,028 8.50%, 5/1/98 148,446
84,631 9.00%, 9/1/98 86,959
5,049,999 6.00%, 9/1/2009 4,571,827
----------
Total 4,880,935
----------
Federal National Mortgage
Association--REMIC_8.1%
4,000,000 7.40%, 7/25/2017 4,020,000
2,000,000 4.00%, 6/25/2018 1,567,812
----------
Total 5,587,812
----------
Government National Mortgage
Association_2.2%
13,761 9.00%, 7/15/2001 14,281
144,406 9.00%, 8/15/2001 149,866
358,845 9.00%, 10/15/2001 372,413
</TABLE>
INTERMEDIATE GOVERNMENT INCOME FUND (cont'd)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
$ 221,714 9.00%, 11/15/2001 $ 230,097
55,110 9.00%, 12/15/2001 57,193
70,881 9.00%, 2/15/2002 73,561
29,738 9.00%, 6/15/2002 30,862
255,422 9.00%, 8/15/2002 265,080
53,803 9.00%, 6/15/2003 55,837
30,945 9.00%, 11/15/2004 32,115
222,457 9.00%, 8/15/2017 227,097
12,305 9.00%, 10/15/2018 12,546
----------
Total 1,520,948
----------
Guaranteed Trade Trust_2.4%
1,750,000 4.86%, (Series 1993-A)/(Guaranteed
Trade Certificates), 4/1/98 1,645,508
----------
North Star Alaska Housing Corp._1.2%
900,000 5.99%, 5/15/98 849,375
----------
SSMC, Inc. N.V._3.7%
2,953,621 6.625%, 5/15/2013 2,521,654
----------
TOTAL LONG-TERM GOVERNMENT
OBLIGATIONS (IDENTIFIED COST
$32,245,264) 30,069,984
----------
CORPORATE BONDS_26.4%
Banking_2.2%
1,000,000 Chemical Banking Corp., 7.375%,
6/15/97 998,050
500,000 National City Corp., 8.375%, Notes,
3/15/96 507,555
----------
Total 1,505,605
----------
Finance-Asset Backed_4.6%
158,863 Chase Manhattan Corp., 6.90%,
Grantor Trust Certificate, (Series
1991-A), 9/15/97 158,613
2,000,000 Citicorp Mortgage Securities, Inc.,
8.00%, REMIC, 5/25/2000 1,990,937
1,000,000 SPNB Home Equity Loan, 8.85%,
(Series 1991-B), 5/15/98 1,007,500
----------
Total 3,157,050
----------
Finance--Automotive_2.9%
1,000,000 General Motors Acceptance Corp.,
7.50%, Medium Term Notes, 6/1/99 974,920
1,000,000 General Motors Corp., 7.625%,
2/15/97 998,270
----------
Total 1,973,190
----------
Finance-Insurance_2.7%
1,000,000 AIG Matched Funding Corp., 5.314%,
9/25/98 915,000
1,000,000 Liberty Mutual Capital Corp.,
7.08%,
6/2/2003 906,270
----------
Total 1,821,270
----------
Foreign_1.3%
515,000 Columbia Rep., 7.25%, 2/23/2004 438,394
500,000 Industrias Penoles DE CV, 7.74%,
12/31/99 452,125
----------
Total 890,519
----------
<CAPTION>
Principal
Amount Value
or Shares
<C> <S> <C>
Industrial_6.8%
$2,810,000 Armstrong Steamship Co., 5.68%,
4/15/2002 $2,634,375
2,000,000 Tenneco Corp., 10.75%, 6/15/95 2,052,500
----------
Total 4,686,875
----------
Retail Store_4.5%
1,000,000 Charming Shoppes Master Trust,
7.00%,
4/15/2003 972,344
2,000,000 Wal-Mart Stores, Inc., 9.10%,
7/15/2000 2,098,700
----------
Total 3,071,044
----------
Telecommunications_1.4%
956,510 Nynex Corp., 9.55%, 5/1/2010 1,004,441
----------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $19,104,559) 18,109,994
----------
MUTUAL FUND SHARES_0.3%
199,590 Fidelity Institutional Cash Money
Market Fund (at net asset value) 199,590
----------
TOTAL INVESTMENTS
(IDENTIFIED COST $72,084,440) $67,619,326
----------
----------
</TABLE>
FIXED INCOME FUND
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
LONG-TERM U.S. TREASURY
OBLIGATIONS_28.9%
U.S. Treasury Notes_8.4%
$3,500,000 5.50%, 7/31/97 $3,367,105
2,000,000 5.75%, 8/15/2003 1,745,000
1,050,000 6.00%, 12/31/97 1,015,707
500,000 7.50%, 2/29/96 506,405
1,000,000 7.50%, 5/15/2002 990,470
----------
Total 7,624,687
----------
U.S. Treasury Bonds_20.5%
12,350,000 7.125%, 2/15/2023 11,078,321
1,000,000 7.25%, 5/15/2016 913,590
2,000,000 8.125%, 8/15/2019 2,000,000
2,000,000 9.375%, 2/15/2006 2,222,180
2,000,000 11.625%, 11/15/2002 2,461,880
----------
Total 18,675,971
----------
TOTAL LONG-TERM U.S. TREASURY
OBLIGATIONS (IDENTIFIED COST
$29,081,875) 26,300,658
----------
Long-Term Government
Obligations_25.0%
Agency for International
Development Indonesia_3.4%
3,300,000 7.80%, 10/15/2022 3,089,625
----------
Federal Farm Credit Bank_0.5%
400,000 8.40%, 11/14/94 400,428
----------
</TABLE>
FIXED INCOME FUND (cont'd)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
Federal Home Loan Mortgage
Corp._1.1%
$ 214,773 7.00%, 6/1/2004 $ 205,682
196,086 7.50%, 8/1/2008 189,486
80,084 8.75%, 8/1/2001 78,882
545,954 8.90%, 5/15/2019 556,016
----------
Total 1,030,066
----------
Federal Home Loan Mortgage Corp.-
REMIC_1.8%
700,000 7.00%, (Series 1156), 1/15/2004 644,342
1,000,000 7.00%, (Series 1204), 11/15/2005 979,370
----------
Total 1,623,712
----------
Federal National Mortgage
Association_5.0%
5,049,999 6.00%, 9/1/2009 4,571,827
----------
Federal National Mortgage
Association-REMIC_5.1%
2,000,000 7.40%, (Series 1992-10), 7/25/2017 2,010,000
1,756,705 8.95%, (Series 1990-117), 7/25/2017 1,775,361
800,000 9.50%, (Series 1990-63), 6/25/2020 831,248
----------
Total 4,616,609
----------
Government National Mortgage
Association_1.5%
231,178 9.00%, 9/15/2004 240,567
113,631 9.00%, 12/15/2008 117,654
214,578 9.00%, 6/15/2017 219,657
106,716 9.00%, 11/15/2018 108,830
229,616 10.50%, 5/15/2019 250,137
197,045 10.50%, 6/15/2019 214,655
199,902 10.50%, 6/15/2019 217,767
----------
Total 1,369,267
----------
Guaranteed Export Trust_1.8%
1,829,787 5.23%, (Series 93-D), 5/15/2005 1,617,074
----------
Guaranteed Trade Trust_1.8%
1,750,000 4.86%, (Series 93-A), 4/1/98 1,645,508
----------
U.S. Government, Department of
Navy_1.1%
1,000,000 8.625%, 12/15/2013 961,250
----------
U.S. Government Department of Air
Force, Army & Navy_1.0%
980,376 8.50%, 7/15/2013 942,386
----------
Long-Term Government
Obligations_0.9%
1,000,000 SSMC GSA, 6.875%, 5/15/2013 840,000
----------
TOTAL LONG-TERM GOVERNMENT
OBLIGATIONS (IDENTIFIED COST
$24,790,514) 22,707,752
----------
Corporate Bonds_42.0%
Banking_4.2%
1,500,000 Bankers Trust New York Corp.,
6.00%,
10/15/2008 1,160,835
<CAPTION>
Principal
Amount Value
<C> <S> <C>
$ 400,000 Bankers Trust New York Corp.,
9.50%,
6/14/2000 $ 421,856
500,000 First Chicago Corp., 8.85%, Medium
Term Note, 5/30/95 507,110
1,000,000 Manufacturers & Traders Trust,
8.125%, 12/1/2002 975,220
710,000 Security Pacific Corp., 9.625%,
Medium Term Note, 3/15/95 719,471
----------
Total 3,784,492
----------
Finance_5.7%
1,000,000 Comdisco Inc., 7.41%, Medium Term
Notes, 6/14/96 998,970
3,000,000 Dr Structured Finance Corp., 8.55%,
8/15/2019 2,628,750
1,000,000 Dr Structured Finance Corp., 9.35%,
5/15/2019 946,250
300,000 National Rural Utilities Co-op ,
8.80%,
12/22/94 301,230
250,000 Pitney Bowes Credit Corp., 8.55%,
9/15/2009 250,848
----------
Total 5,126,048
----------
Finance-Asset Backed_1.4%
1,000,000 Charming Shoppes Master Trust,
7.00%, (Series 1994-1), 4/15/2003 972,344
282,369 Rochester Community Savings Bank,
5.70%, (Series 1992-A), 12/15/97 280,339
----------
Total 1,252,683
----------
Finance-Automotive_5.2%
750,000 Ford Motor Credit Co., 8.00%,
12/1/96 759,345
1,800,000 General Motors Acceptance Corp.,
7.50%, Medium Term Notes, 6/1/99 1,754,856
300,000 General Motors Acceptance Corp.,
7.75%, Medium Term Notes, 12/10/96 301,137
500,000 General Motors Acceptance Corp.,
7.75%, 4/15/97 501,210
1,300,000 General Motors Acceptance Corp.,
8.875%, 6/1/2010 1,369,537
----------
Total 4,686,085
----------
Finance-Services_2.2%
1,000,000 Smith Barney Holdings, Inc.,
5.375%,
6/1/96 974,430
1,000,000 Xerox Credit Corp., 10.125%,
4/15/99 1,038,850
----------
Total 2,013,280
----------
Foreign_5.4%
625,000 Columbia Rep. 7.25%, 2/23/2004 532,031
500,000 Export-Import Bank of Japan,
10.125%, Guaranteed Note, 10/28/97 533,880
1,000,000 Industrias Penoles, S.A. De C.V.,
7.74%, 12/31/99 904,250
1,000,000 Newfoundland Province CDA, 7.32%,
10/13/2023 806,290
</TABLE>
FIXED INCOME FUND (cont'd)
<TABLE>
<CAPTION>
Principal
Amount Value
or Shares
<C> <S> <C>
$2,500,000 Quebec Provinces CDA, 7.50%,
7/15/2023 $2,107,100
----------
Total 4,883,551
----------
Industrial_7.0%
818,000 Fischbach & Moore Corp., 4.75%,
4/1/97 762,785
1,150,000 Occidental Petroleum Corp., 10.75%,
5/1/98 1,173,759
1,350,000 Occidental Petroleum Corp., 5.37%,
Medium Term Notes, 9/11/95 1,333,989
1,000,000 Syntex USA Inc., 6.00%, 8/15/2000 910,500
1,800,000 Tenneco Corp., 10.75%, 6/15/95 1,847,250
300,000 Tenneco Corp., 11.00%, 11/15/95 312,750
----------
Total 6,341,033
----------
Insurance_6.1%
2,500,000 AIG Matched Funding Corp., 5.314%,
9/25/98 2,287,500
1,600,000 Allstate Corp., 7.50%, 6/15/2013 1,367,232
1,000,000 Integon Corp., 9.50%, 10/15/2001 995,360
1,000,000 Liberty Mutual Capital Corp.,
7.08%,
6/2/2003 906,270
----------
Total 5,556,362
----------
Retail Store_1.0%
1,000,000 Sears Roebuck & Co., 5.21%, 2/18/97 952,630
----------
Retail-Auto_2.8%
2,500,000 Ryder System, Inc., 9.375%, 1/15/98 2,513,800
----------
Utilities_1.0%
1,000,000 Commonwealth Edison Co., 8.375%,
10/15/2006 948,820
----------
TOTAL CORPORATE BONDS (IDENTIFIED
COST $40,449,628) 38,058,784
----------
Mutual Fund Shares_2.6%
2,360,858 Fidelity Institutional Cash Money
Market Fund (at net asset value) 2,360,858
----------
TOTAL INVESTMENTS (IDENTIFIED COST
$96,682,875) $89,428,052
----------
</TABLE>
CONNECTICUT INTERMEDIATE
MUNICIPAL INCOME FUND
<TABLE>
<CAPTION>
Credit
Rating:
Moody's
Principal or
Amount S&P's(e) Value
<C> <S> <C> <C>
LONG-TERM MUNICIPAL
SECURITIES_96.6%
Connecticut_93.6%
$ 250,000 Connecticut State, 5.00%
Refunding Bonds, (Series
A), 11/15/2003 AA- $ 234,070
275,000 Connecticut State, 5.40%
Refunding Bonds, (Series
A), 12/15/1995 AA- 277,934
<CAPTION>
Credit
Rating:
Moody's
Principal or
Amount S&P's(e) Value
<C> <S> <C> <C>
$ 200,000 Connecticut State, 6.50%
Refunding Bonds, (Series
A), 3/15/2009
(Pre-refunded
3/15/2002 6 102) AA- $ 212,348
200,000 Connecticut State, 6.50%
Refunding Bonds, (Series
A), 3/15/2010
(Pre-refunded
3/15/2002 6 102) AA- 212,348
200,000 Connecticut State, 6.50%
Refunding Bonds, (Series
A), 3/15/2012
(Pre-refunded
3/15/2002 6 102) AA- 212,594
200,000 Connecticut State, 4.75%
Refunding Bonds, (Series
D), 8/1/2004 AA- 178,862
200,000 Connecticut State, 4.50%
Refunding Bonds, (Series
E), 3/15/2004 AA- 174,022
375,000 Connecticut State, 5.65%
HEFA, Revenue Bonds,
(Newington Childrens
Hospital)/(Series A),
7/1/2005 AAA 360,735
100,000 Connecticut State, 4.80%
HEFA, Revenue Bonds, (Taft
School)/ (Series B),
7/1/2004 A 89,344
400,000 Connecticut State, 4.05%
HEFA, Revenue Bonds,
(Fairfield Uni-
versity)/(Series G)/(MBIA
Insured), 7/1/2000 AAA 361,356
200,000 Connecticut State, 4.30%
HEFA, Revenue Bonds, (St.
Francis Hospital & Medical
Center)/ (Series C)/(FGIC
Insured),
7/1/2002 AAA 174,736
200,000 Connecticut State, 4.80%
HEFA, Revenue Bonds, (St.
Francis Hospital & Medical
Center)/ (Series C)/(FGIC
Insured),
7/1/2007 AAA 169,018
400,000 Connecticut Housing
Finance Authority, 6.25%
(Series B), 11/15/2005 AA 403,244
105,000 Connecticut Housing
Finance Authority, 5.60%
(Series A),
5/15/2005 AA 100,762
200,000 Connecticut Housing
Finance Authority, 5.40%
(Series A),
5/15/2004 AA 192,074
300,000 Connecticut State Resource
Recovery Authority, 5.60%
Revenue Refunding Bonds,
(Series A), 11/15/99 AA- 298,842
</TABLE>
CONNECTICUT INTERMEDIATE MUNICIPAL INCOME FUND (cont'd)
<TABLE>
<CAPTION>
Credit
Ratings:
Moody's
Principal or
Amount S&P's(e) Value
<C> <S> <C> <C>
$ 220,000 Connecticut State, 4.60%
Special Assessment
Unemployment, (Series
A)/(AMBAC Insured),
11/15/2000 AAA 207,559
400,000 Connecticut State Special
Tax Obligations, 6.80%
Revenue Refunding Bonds,
(Series A), 6/1/1999 AA- $ 422,860
200,000 Connecticut State Special
Tax Obligations, 4.75%
Revenue Refunding Bonds,
9/1/2001 A1 186,882
100,000 Connecticut State Special
Tax Obligations, 5.00%
Revenue Refunding Bonds,
9/1/2003 A1 92,693
700,000 Connecticut State Special
Tax Obligations, 5.125%
Revenue Refunding Bonds,
9/1/2005 A1 638,106
400,000 Connecticut State Special
Tax Obligations, 5.25%
Revenue Refunding Bonds,
9/1/2007 A1 366,004
325,000 Connecticut State Clean
Water Fund, 5.50% Revenue
Bonds, 10/1/2004 AA 313,908
400,000 Meriden, CT, 5.75% UT GO
Bonds, 10/15/2004 AAA 394,924
100,000 Middletown, CT, 6.50% UT
GO Bonds, 4/15/98 AA- 104,606
100,000 New Milford, CT, 5.80% UT
GO Bonds, 10/1/2001 Aa 101,643
430,000 Regional School District
No. 5, 5.05% LT GO Bonds,
5/15/2004 A1 396,817
100,000 South Central, CT,
Regional Water Authority,
5.00% Water System Revenue
Bonds, (FGIC Insured),
8/1/2005 AAA 91,115
100,000 Southington CT, 4.60% UT
GO Bonds, (MBIA Insured)
6/15/2003 AAA 90,738
110,000 Stonington, CT, 5.00% UT
GO Bonds, 6/15/2006 Aa 100,194
100,000 Trumbull, CT, 6.00% UT GO
Bonds, 5/15/2004 AA 101,008
260,000 Weston, CT, 4.35% BQ UT GO
Bonds, 8/1/2003 Aaa 231,756
----------
Total 7,493,102
----------
Puerto Rico_3.0%
250,000 Puerto Rico, 4.80%
Telephone Authority
Revenue Bonds, (Series M),
1/1/2001 A+ 235,935
----------
<CAPTION>
Credit
Ratings:
Moody's
or
Shares S&P's(e) Value
<C> <S> <C> <C>
TOTAL LONG-TERM MUNICIPAL
SECURITIES (IDENTIFIED
COST $8,287,473) 7,729,037
----------
MUTUAL FUND SHARES_2.2%
176,561 Dreyfus Connecticut
Municipal Money Market
Fund
(AT NET ASSET VALUE) $ 176,561
----------
TOTAL INVESTMENTS
(IDENTIFIED COST
$8,464,034) $7,905,598
----------
----------
</TABLE>
MASSACHUSETTS INTERMEDIATE
MUNICIPAL INCOME FUND
<TABLE>
<CAPTION>
Credit
Rating:
Moody's
Principal or
Amount S&P's(e) Value
<C> <S> <C> <C>
LONG-TERM MUNICIPAL
SECURITIES_95.4%
Massachusetts_95.4%
$ 300,000 Attleboro, MA, 5.20% GO LT
Bonds, (AMBAC Insured),
7/1/2002 Aaa $ 288,243
250,000 Brookline, MA, 4.50%
Refunding Bonds, (Series
1994), 1/15/2006 Aa1 215,100
100,000 Carlisle, MA, 4.50%
Refunding Bonds, UT GO
Bonds,
6/15/2001 Aa 93,085
155,000 Chatham, MA, 4.60%
Refunding Bonds, 1/15/2005 A1 133,264
100,000 Dedham Westwood Water Dis-
trict, MA, 4.30% Refunding
Bonds, (MBIA Insured),
10/15/2002 AAA 87,689
100,000 Massachusetts Municipal
Wholesale Electric Co.,
5.75% Revenue Bonds,
(Power Supply Sys-
tem)/(Series E)/(AMBAC
Insured), 7/1/2002 AAA 100,298
300,000 Massachusetts Municipal
Wholesale Electric Co.,
4.80% Revenue Bonds,
(Power Supply Sys-
tem)/(Series B)/(MBIA
Insured), 7/1/2007 AAA 255,711
200,000 Massachusetts Municipal
Wholesale Electric Co.,
6.50% Revenue Refunding
Bonds, (Power Supply
Systems)/(Series A)/
(AMBAC Insured), 7/1/2002 Aaa 209,300
</TABLE>
MASSACHUSETTS INTERMEDIATE MUNICIPAL INCOME FUND (cont'd)
<TABLE>
<CAPTION>
Credit
Ratings:
Moody's
Principal or
Amount S&P's(e) Value
<C> <S> <C> <C>
$ 200,000 Massachusetts State, 6.20%
GO UT Bonds, (Series
A)/(Callable 6/1/2002 6
101), 6/1/2003 A $ 203,848
500,000 Massachusetts State, 4.90%
GO Refunding Bonds,
(Series C), 8/1/2004 A+ 446,165
200,000 Massachusetts State, 7.00%
GO
UT Bonds, (Series C)/(Pre-
refunded 12/1/2000 6 100),
12/1/2010 AAA 215,320
150,000 Massachusetts State, 5.00%
HEFA, Revenue Refunding
Bonds, (Youville
Hospital)/ (Series B)/(FHA
Insured),
2/15/99 Aa 146,933
200,000 Massachusetts State, 4.50%
HEFA, Revenue Bonds, (New
England Medical Center)/
(Series G)/(MBIA Insured),
7/1/2002 AAA 179,598
100,000 Massachusetts State, 4.70%
HEFA, Revenue Bonds, (Mas-
sachusetts Institute
Technology)/(Series H),
7/1/2004 Aaa 90,560
200,000 Massachusetts State, 4.80%
HEFA, Revenue Refunding
Bonds, (Baystate Medical
Center)/(Series
1993D)/(FGIC Insured),
7/1/2004 AAA 176,914
300,000 Massachusetts State, 4.90%
HEFA, Revenue Refunding
Bonds, (Boston College),
6/1/2005 A1 267,468
150,000 Massachusetts State, 4.90%
HEFA, Revenue Refunding
Bonds, (Baystate Medical
Center)/(Series D)/(FGIC
Insured), 7/1/2005 AAA 132,149
500,000 Massachusetts State, 5.40%
HEFA, Revenue Bonds, (Wil-
liams College)/(Series
1993D), 7/1/2005 Aa1 476,190
135,000 Massachusetts State, 5.70%
HEFA, Revenue Bonds, (New
England Deaconess
Hospital), 7/1/2005
(Escrow to Maturity) AAA 133,384
<CAPTION>
Credit
Ratings:
Principal Moody's
Amount or
or Shares S&P's(e) Value
<C> <S> <C> <C>
$ 400,000 Massachusetts State, 5.70%
HEFA, Revenue Bonds, (Beth
Israel Hospital)/(Series
G)/ (Callable 7/1/2002 6
102)/ (AMBAC Insured),
7/1/2005 Aaa $ 389,684
100,000 Massachusetts State, 6.20%
Housing Finance Agency
Revenue Bonds, (Series
31)/(Callable 6/1/2004 6
102),
6/1/2009 Aa 96,193
150,000 Massachusetts State, 5.80%
Special Obligations
Revenue Bonds, (Series A),
6/1/2000 A1 151,770
300,000 Massachusetts State, 7.00%
Special Obligations
Revenue Bonds, (Series A),
6/1/2002 A1 323,529
200,000 Massachusetts State
Turnpike Authority, 4.625%
Revenue Refunding Bonds,
(Series A), 1/1/2002 A+ 181,870
200,000 Massachusetts State Water
Pollution Abatement, 4.85%
Revenue Bonds, 8/1/2005 AA 176,150
300,000 Massachusetts State Water
Resources Authority,
5.875% Revenue Refunding
Bonds, (Series
B)/(Callable 11/1/2002 6
102), 11/1/2004 A 294,123
400,000 New England Education Loan
Marketing Corp., MA, 5.80%
Student Loan Revenue
Bonds, (Issue A), 3/1/2002 Aaa 396,672
100,000 Northampton, MA, 4.90%
(AMBAC Insured), 9/1/2006 AAA 88,512
150,000 Salem, MA, 5.80% LT GO
Bonds, (AMBAC Insured),
7/15/2006 AAA 145,891
200,000 Sharon, MA, 4.65% BQ
Bonds, 7/15/2006 Aa 173,242
----------
TOTAL LONG-TERM MUNICIPAL
SECURITIES (IDENTIFIED
COST $6,773,845) 6,268,855
----------
Mutual Fund Shares_3.3%
214,319 Dreyfus Massachusetts
Municipal Money Market
Fund
(AT NET ASSET VALUE) 214,319
----------
TOTAL INVESTMENTS
(IDENTIFIED COST
$6,988,164) $6,483,174
----------
----------
</TABLE>
GROWTH AND INCOME EQUITY FUND
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS_91.8%
Basic Materials_4.5%
37,000 Burlington Northern, Inc. $1,845,375
100,000 Dexter Corp. 2,062,500
25,000 Georgia-Pacific Corp. 1,846,875
80,000 Lubrizol Corp. 2,580,000
----------
Total 8,334,750
----------
Capital Goods/Construction_9.1%
46,000 Boeing Co. 2,018,250
28,000 Emerson Electric Co. 1,701,000
68,000 General Electric Co. 3,323,500
68,000 Hubbell, Inc. 3,621,000
80,000 Masco Corp. 1,900,000
36,000 (f)Thermo Electron Corp. 1,642,500
70,000 WMX Technologies, Inc. 2,056,250
----------
Total 16,262,500
----------
Consumer Cyclical_12.0%
74,000 Arvin Industries, Inc. 1,803,750
70,000 Circuit City Stores, Inc. 1,785,000
26,000 Dayton Hudson Corp. 2,015,000
46,000 Disney (Walt) Co. 1,811,250
70,000 Donnelley (R.R.) & Sons Co. 2,196,250
32,000 Eastman Chemical Co. 1,728,000
50,000 Eastman Kodak Co. 2,406,250
36,000 Lilly (Eli) & Co. 2,232,000
48,000 Melville Corp. 1,602,000
70,000 Morrison Restaurants, Inc. 2,047,500
75,000 Rite Aid Corp. 1,800,000
----------
Total 21,427,000
----------
Consumer Staples_19.6%
78,000 Alberto Culver Co. 1,842,750
18,500 American Cyanamid Co. 1,826,875
48,000 American Home Products Corp. 3,048,000
38,000 Anheuser-Busch Companies, Inc. 1,928,500
66,000 Baxter International, Inc. 1,716,000
30,000 Dun & Bradstreet Corp. 1,758,750
34,000 General Mills, Inc. 1,904,000
40,000 General Motors Corp. 1,580,000
32,000 Johnson & Johnson 1,748,000
68,000 McDonalds Corp. 1,955,000
64,000 Merck and Co., Inc. 2,288,000
68,000 PepsiCo, Inc. 2,380,000
36,000 Pfizer, Inc. 2,668,500
40,000 Philip Morris Cos., Inc. 2,450,000
34,000 Proctor & Gamble Co. 2,125,000
80,000 Super Valu Stores, Inc. 1,940,000
50,000 (f)Toy's R Us, Inc. 1,925,000
----------
Total 35,084,375
----------
Energy_9.9%
38,000 Amoco Corp. 2,408,250
22,000 Atlantic Richfield Co. 2,384,250
32,000 Mobil Corp. 2,752,000
22,000 Royal Dutch Petroleum Corp. 2,563,000
<CAPTION>
Shares Value
<C> <S> <C>
32,000 Schlumberger, Ltd. $1,880,000
54,000 Texaco, Inc. 3,530,250
115,000 USX Marathon Group 2,156,250
----------
Total 17,674,000
----------
Financia_l7.9%
32,000 Chubb Corp. 2,236,000
92,000 Comerica, Inc. 2,541,500
54,000 Fleet Financial Group, Inc. 1,849,500
100,000 Huntington Bancshares, Inc. 1,750,000
32,000 Morgan (J.P.) & Co., Inc. 1,980,000
35,000 NBB Bancorp, Inc. 1,671,250
80,000 National City Corp. 2,170,000
----------
Total 14,198,250
----------
Insurance_2.2%
41,000 Aetna Life & Casualty Co. 1,891,125
180,000 Ethyl Corp. 2,047,500
----------
Total 3,938,625
----------
Technology_10.2%
22,000 AMP, Inc. 1,663,750
40,000 AT & T Corp. 2,200,000
42,000 (f)Computer Sciences Corp. 1,953,000
54,000 General Motors Corp. Class E 1,977,750
27,000 International Business Machines
Corp. 2,011,500
31,000 Motorola, Inc. 1,825,125
62,000 Pitney Bowes, Inc. 2,092,500
39,000 Raytheon Co. 2,486,250
114,000 (f)Tandem Computers, Inc. 2,009,250
----------
Total 18,219,125
----------
Transportation & Services_2.7%
34,000 British Airways, ADR 1,989,000
18,000 Delta Air Lines, Inc. 938,250
30,000 Norfolk Southern Corp. 1,890,000
----------
Total 4,817,250
----------
Utilities_7.7%
112,000 Entergy Corp. 2,618,000
92,000 GTE Corp. 2,829,000
120,000 Niagara Mohawk Power Corp. 1,650,000
58,000 Sprint Corp. 1,892,250
76,000 U.S. West, Inc. 2,859,500
56,000 Vodafone Group PLC, ADR 1,946,000
----------
Total 13,794,750
----------
Miscellaneous_6.0%
68,000 Corning, Inc. 2,312,000
38,000 Minnesota Mining & Manufacturing Co. 2,104,250
84,000 Ogden Corp. 1,806,000
64,000 PHH Corp. 2,400,000
66,000 Providian Corp. 2,095,500
----------
Total 10,717,750
----------
TOTAL COMMON STOCK
(IDENTIFIED COST $155,247,900) 164,468,375
----------
</TABLE>
GROWTH AND INCOME EQUITY FUND (cont'd)
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value
<C> <S> <C>
CONVERTIBLE PREFERRED STOCK_1.7%
22,000 Delta Air Lines, Inc., Series C, 7%,
Cum. Cv. Pfd. $1,053,250
20,000 Ford Motor Co., Series A, Cum. Cv.
Pfd. 1,935,000
----------
TOTAL CONVERTIBLE-PREFERRED STOCK
(IDENTIFIED COST $3,008,363) 2,988,250
----------
Mutual Fund Shares_8.1%
6,589,583 Dreyfus Cash Management 6,589,583
7,900,000 Fidelity Institutional Cash Money
Market Fund 7,900,000
----------
TOTAL MUTUAL FUND SHARES
(AT NET ASSET VALUE) 14,489,583
----------
TOTAL INVESTMENTS
(IDENTIFIED COST $172,745,846) $181,946,208
----------
----------
</TABLE>
GROWTH EQUITY FUND
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCK9_3.5%
Basic Materials_7.6%
6,600 Apache Corp. $ 185,625
8,000 Avery Dennison Corp. 269,000
6,000 du Pont (E.I.) deNemours & Co. 357,750
7,000 Ferro Corp. 179,375
5,000 Georgia Pacific Corp. 369,375
13,000 Morton International, Inc. 370,500
----------
Total 1,731,625
----------
Capital Goods/Construction_9.6%
6,000 Caterpillar, Inc. 358,500
2,200 Dow Chemical Co. 161,700
4,000 General Electric Co. 195,500
14,000 General Signal Corp. 504,000
4,700 Masco Corp. 111,625
2,600 Raytheon Co. 165,750
12,000 Trinity Industries, Inc. 411,000
20,000 Wheelabrator Technologies 277,500
----------
Total 2,185,575
----------
Consumer Cyclical_22.6%
13,200 Arvin Industries, Inc. 321,750
3,200 Carnival Cruise Lines, Inc. 145,600
11,000 (f)Circus Circus Enterprises, Inc. 244,750
32,000 (f)Consolidated Stores Corp. 580,000
6,000 (f)CUC International, Inc. 192,750
6,200 Disney (Walt) Co. 244,125
5,000 Dun & Bradstreet Corp. 293,125
14,000 Echlin, Inc. 430,500
3,100 Home Depot, Inc. 141,050
6,000 Houghton Mifflin Co. 276,000
12,000 International Game Techology 222,000
9,000 Mattel, Inc. 263,250
15,000 Morrison Restaurants, Inc. 438,750
<CAPTION>
Shares Value
<C> <S> <C>
6,000 (f)Office Depot, Inc. $ 148,500
4,200 Pep Boys Manny, Moe, & Jack 150,150
16,200 (f)Tele Communications, Inc. 366,525
9,000 (f)Toys "R" Us, Inc. 346,500
3,400 Xerox Corp. 348,500
----------
Total 5,153,825
----------
Consumer Staples_16.5%
11,400 Albertson's, Inc. 342,000
7,000 (f)Amgen, Inc. 390,250
7,000 (f)Chiron Corp. 471,625
2,500 Gillette Co. 185,938
14,000 (f)Healthtrust, Inc. 490,000
6,000 Johnson & Johnson 327,750
24,000 (f)Ornda Healthcorp. 381,000
10,000 PepsiCo, Inc. 350,000
3,000 Pfizer 222,375
2,000 Schering Plough Corp. 142,500
10,000 (f)Science Med Life System, Inc. 477,500
----------
Total 3,780,938
----------
Energy_7.7%
4,000 Anadarko Petroleum Corp. 195,500
17,000 Camco International, Inc. 350,625
8,300 Coastal Corp. 236,550
9,000 Halliburton Co. 333,000
7,500 Pennzoil Co. 386,250
7,000 (f)Triton Energy Corp. 248,500
----------
Total 1,750,425
----------
Financial_10.8%
4,100 AFLAC, Inc. 139,913
4,400 American International Group, Inc. 411,950
7,000 Bank of New York, Inc. 222,250
8,000 Comerica, Inc. 221,000
5,600 Federal National Mortgage Association 425,600
9,000 First Financial Management Corp. 504,000
7,000 Midlantic Corp. 196,000
6,000 Norwest Corp. 147,000
6,000 United Companies Financial 199,500
----------
Total 2,467,213
----------
Technology_12.6%
5,000 AMP, Inc. 378,125
4,700 AT & T Corp. 258,500
10,000 (f)BMC Software, Inc. 452,500
5,300 Intel Corp. 329,262
3,000 (f)Microsoft Corp. 189,000
23,000 (f)Novell, Inc. 425,500
29,400 (f)Tandem Computers, Inc. 518,175
9,000 Vodafone Group Plc. 312,750
----------
Total 2,863,812
----------
Transport & Services_4.0%
7,000 Delta Air Lines, Inc. 364,875
14,000 Ryder Systems, Inc. 329,000
2,400 (f)UAL Corp. 226,800
----------
Total 920,675
----------
</TABLE>
GROWTH EQUITY FUND (cont'd)
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value
<C> <S> <C>
Utilities_2.1%
16,000 Century Telephone Enterprises, Inc. $ 480,000
----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $19,547,742) 21,334,088
----------
MUTUAL FUND SHARES_4.2%
957,160 Fidelity Institutional Cash Money
Market Fund (at net asset value) 957,160
----------
TOTAL INVESTMENTS
(IDENTIFIED COST $20,504,902) $22,291,248
----------
----------
</TABLE>
SMALL CAPITALIZATION EQUITY FUND
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS_95.9%
Basic Materials_7.2%
25,000 (f)AK Steel Holdings Corp. $ 818,750
4,000 Butler Manufacturing Co. 138,000
5,600 Calgon Carbon Corp. 63,000
15,000 Caraustar Industries, Inc. 292,500
18,480 Chemi-Trol Chemical Co. 210,210
26,700 Chesapeake Corp. 827,700
27,200 Dexter Corp. 561,000
20,500 Fuller HB Co. 681,625
41,000 Grow Group, Inc. 589,375
21,512 Guardsman Products, Inc. 239,321
36,500 (f)Johnstown America Industries,
Inc. 720,875
25,000 Petrolite Corp. 743,750
43,900 Quaker Chemical 801,175
26,700 (f)Steel of West Virginia, Inc. 317,063
46,500 (f)Sybron Chemicals Industries, Inc. 941,625
35,600 Varlen Corp. 818,800
----------
Total 8,764,769
----------
Capital Goods/Construction_6.9%
21,000 Analysis & Technology, Inc. 325,500
20,000 (f)Atchinson Casting Corp. 335,000
38,100 (f)Beazer Home USA, Inc. 457,200
14,600 (f)Centex Construction Products,
Inc. 153,300
49,528 (f)D.R. Horton, Inc. 650,055
26,500 Duriron, Inc. 477,000
35,000 (f)Foster L.B. Co., Class A 129,062
27,300 Insituform Mid American, Inc. 271,294
51,600 Instron Corp. 586,950
25,000 (f)Jason, Inc. 237,500
13,500 Pope & Talbot, Inc. 239,625
47,000 (f)Redman Industries, Inc. 804,875
23,500 Schult Homes Corp. 305,500
49,600 Toro Co. 1,376,400
70,000 (f)Triangle Pacific Corp. 953,750
24,400 (f)Varitronic System, Inc. 207,400
40,000 (f)Willcox & Gibbs, Inc. 275,000
25,000 Wolverine World Wide, Inc. 612,500
----------
Total 8,397,911
----------
Consumer Cyclical_14.3%
23,200 (f)American City Business Journals 371,200
<CAPTION>
Shares Value
<C> <S> <C>
14,750 Bassett Furniture Industries, Inc. $ 401,939
51,900 (f)Brauns Fashions Corp. 171,919
31,000 Casey's General Stores, Inc. 408,812
79,300 Cash America International, Inc. 654,225
82,100 (f)ClothesTime, Inc. 318,138
21,000 (f)Coherent, Inc. 304,500
10,200 (f)Designs, Inc. 75,225
42,400 (f)Dimark, Inc. 710,200
58,600 (f)El Chico Restaurants, Inc. 754,475
43,500 Falcon Products, Inc. 500,250
71,000 (f)Fieldcrest Cannon, Inc. 1,810,500
12,800 (f)Galey & Lord, Inc. 199,200
24,000 Gibson Greetings, Inc. 357,000
32,700 (f)Hi-Lo Automotive, Inc. 367,875
20,000 Houghton Mifflin Co. 920,000
18,600 (f)Jones Apparel Group, Inc. 509,175
55,000 LADD Furniture, Inc. 343,750
48,000 (f)Monaco Coach Corp. 732,000
40,450 Morrison Restaurants, Inc. 1,183,162
17,600 (f)Mothers Work, Inc. 220,000
26,500 (f)Optical Data Systems, Inc. 543,250
51,700 (f)Payless Cashways, Inc. 484,687
22,000 PCA International, Inc. 261,250
51,000 (f)R & B, Inc. 331,500
72,400 Richfood Holdings, Inc. 1,176,500
64,800 Rival Co. 1,652,400
76,000 (f)Ryans Family Steak Houses 475,000
10,750 (f)Sierra On-Line, Inc. 258,000
21,000 (f)Spaghetti Warehouse, Inc. 128,625
18,500 (f)Value City Department Stores,
Inc. 210,437
18,000 (f)Winston Furniture, Inc. 148,500
89,900 (f)Worldtex, Inc. 449,500
----------
Total 17,433,194
----------
Consumer Staples_11.7%
15,000 Avalon Properties, Inc. 292,500
55,600 Ballard Medical Products 542,100
14,500 Bindley Western Industries, Inc. 188,500
47,900 Biocraft Labs, Inc. 856,213
12,000 (f)Cephalon, Inc. 114,000
52,600 Delta & Pine Land Co. 874,475
15,500 (f)Dorsey Trailers, Inc. 244,125
32,000 Focus Surgery, Inc. 22,000
36,000 (f)Gish Biomedical, Inc. 207,000
24,800 Hannaford Brothers Co. 613,800
35,500 (f)Health Management Systems, Inc. 1,007,312
25,000 (f)International Cabletel, Inc. 775,000
40,000 Interstate Bakeries Corp. 515,000
76,000 Kinetic Concepts, Inc. 465,500
56,900 (f)Lifecore Biomedical, Inc. 263,163
31,800 (f)Lincare Holdings, Inc. 866,550
53,875 Minntech Corp. 781,187
58,000 (f)Noven Pharmaceuticals, Inc. 884,500
32,000 (f)OEC Medical Systems, Inc. 208,000
15,500 (f)OPTI, Inc. 224,750
41,100 (f)Paragon Trade Brands, Inc. 986,400
79,500 (f)Pharmaceutical Marketing
Services, Inc. 914,250
</TABLE>
SMALL CAPITALIZATION EQUITY FUND (cont'd)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
41,600 (f)ReadiCare, Inc. $ 59,800
23,500 Sanfilippo, John B & Son, Inc. 205,625
22,900 (f)Somatix Therapy Corp. 114,500
5,500 (f)Spacelabs Medical, Inc. 115,500
109,800 (f)Syntro Corp. 260,775
21,400 TCA Cable TV, Inc. 502,900
27,900 Unifirst Corp 331,313
56,500 (f)Unilab Corp. 282,500
20,000 (f)United American Healthcare Co. 575,000
----------
Total 14,294,238
----------
Energy_6.4%
75,000 (f)Alamco, Inc. 496,875
32,000 (f)Belden & Blake Corp. 440,000
75,000 (f)Bellwether Exploration Co. 421,875
44,200 Berry Petroleum Co., Class A 419,900
21,300 Cascade Natural Gas Corp. 292,875
38,000 Cross Timbers Oil Co. 608,000
25,200 Devon Energy Corp. 551,250
31,500 (f)Dual Drilling Co. 417,375
22,500 (f)Gulfmark International, Inc. 365,625
45,000 (f)Kelley Oil Corp. 286,875
33,800 (f)Oceaneering International, Inc. 435,175
5,000 Penn Virginia Corp. 175,000
15,000 Plains Petroleum Co. 405,000
32,000 Pogo Producing Co. 716,000
20,400 (f)Seagull Energy Corp. 530,400
12,250 (f)Tejas Gas Corp. 554,313
10,000 Tidelands Realty Trust 93,125
40,000 (f)United Meridian Corp. 585,000
----------
Total 7,794,663
----------
Financial_15.2%
58,000 American Annuity Group, Inc. 551,000
31,000 American Eagle Group, Inc. 286,750
28,500 American Federal Bank--FSB 342,000
37,500 (f)Amvestors Financial Corp. 356,250
7,000 (f)Bay Ridge Bancorp, Inc. 101,500
22,500 BSB Bancorp, Inc. 624,375
47,000 Coast Savings Financial, Inc. 669,750
22,400 Co-operative Bank, Concord 347,200
65,000 (f)Crown American Realty 893,750
24,700 (f)D & N Financial Corp., Warrants 81,819
74,000 (f)D & N Savings Financial Corp. 638,250
22,300 (f)Eagle Finance Corp. 345,650
15,000 Eaton Vance Corp. 474,375
21,000 First Federal Michigan Corp. 435,750
45,900 Foothill Group, Inc. 688,500
39,800 (f)Home State Holdings, Inc. 567,150
23,780 Integon Corp. 356,700
12,200 Kansas City Life Insurance Co. 524,600
45,200 (f)KBK Capital Corp. 299,450
33,800 Life Partners Group, Inc. 735,150
15,700 (f)Long Island Bancorp, Inc. 235,500
21,972 (f)National Auto Credit, Inc. 263,664
31,710 North Side Savings Bank of the Bronx 618,345
24,000 ONBANCORP, Inc. 624,000
74,400 (f)Payco American Corp. 623,100
<CAPTION>
Shares Value
<C> <S> <C>
30,000 Penncorp Financial Group, Inc. $ 472,500
41,500 Poe & Brown, Inc. 902,625
17,946 Portsmouth BankShares, Inc. 215,352
40,000 Security Connecticut Corp. 835,000
30,900 SEI Corp. 648,900
40,000 Selective Insurance Group, Inc. 1,010,000
36,750 Southwest Securities Group, Inc. 266,437
18,700 UMB Financial Corp. 598,400
41,000 USBancorp, Inc. 984,000
34,000 Victoria Bankshares, Inc. 867,000
----------
Total 18,484,792
----------
Miscellaneous_6.8%
1,000 (f)Accustaff, Inc. 13,875
63,750 ADVO, Inc. 1,131,562
13,000 American Classic Voyages Corp. 227,500
18,200 (f)CDI Corp. 309,400
42,200 (f)DIMAC Corp. 511,675
20,000 Gilbert Associates, Inc. 270,000
11,000 (f)Harding Associates, Inc. 79,750
39,500 (f)Layne, Inc. 286,375
40,000 (f)Merix Corp. 540,000
7,000 Northland Cranberries, Inc. 118,125
26,100 (f)Pronet, Inc. 417,600
25,000 (f)Res Care, Inc. 425,000
25,000 (f)Rural/MetroCorp. 525,000
65,000 (f)Sterile Concepts Holdings, Inc. 1,023,750
44,500 (f)Thomas Group, Inc. 389,375
106,050 Unitog Co. 1,948,669
----------
Total 8,217,656
----------
Technology_25.5%
6,400 (f)Acxiom Corp. 187,200
32,500 (f)Alliance Semi-conductor Corp. 836,875
60,000 (f)American Management Systems, Inc. 952,500
54,600 (f)Analogic Corp. 969,150
43,200 (f)Autoinfo, Inc. 118,800
15,500 (f)Babbage's, Inc. 213,125
47,700 (f)BancTec, Inc. 954,000
20,000 (f)Benchmark Electronics, Inc. 510,000
26,000 BGS Systems, Inc. 578,500
34,000 (f)Bisys Group, Inc. 743,750
51,700 (f)Boole & Babbage, Inc. 1,654,400
35,000 (f)CEM Corp. 437,500
75,400 (f)Cognos, Inc. 1,102,725
10,000 (f)Colonial Data Technologies 92,500
54,000 (f)Comptek Research, Inc. 796,500
117,000 Computer Task Group, Inc. 979,875
41,400 (f)Comshare, Inc. 589,950
40,000 (f)Continuum, Inc. 1,075,000
14,500 (f)Cycare Systems, Inc. 172,188
18,360 (f)Detection Systems, Inc. 167,535
20,900 (f)Emulex Corp. 229,900
14,500 (f)Evans & Sutherland Computer Co. 170,375
37,500 (f)Gelman Sciences, Inc. 496,875
75,000 (f)Giga Tronics, Inc. 468,750
12,000 Greiner Engineering, Inc. 148,500
87,500 Hogan Systems, Inc. 546,875
</TABLE>
SMALL CAPITALIZATION EQUITY FUND (cont'd)
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value
<C> <S> <C>
16,300 (f)IMRS, Inc. $ 647,925
46,200 (f)Information Resources, Inc. 693,000
30,000 Intercargo Corp. 243,750
40,000 (f)Interleaf, Inc. 157,500
22,700 (f)Interphase Corp. 272,400
60,000 (f)Intersolv, Inc. 1,005,000
37,700 (f)K-Tron International, Inc. 447,685
25,500 Keithley Instruments, Inc. 248,626
33,500 (f)Kent Electronics Corp. 1,235,313
31,950 (f)Lattice Semi-conductor Corp. 539,156
43,000 (f)Legent Corp. 1,225,500
28,800 Mac-Neal Schwendler Corp. 313,200
32,000 (f)MDL Information Systems, Inc. 276,000
30,000 (f)Microcom, Inc. 270,000
38,500 Nashua Corp. 875,875
24,000 National Computer Systems, Inc. 348,000
55,000 National Data Corp. 1,141,250
38,500 (f)NetFRAME Systems, Inc. 298,375
96,200 (f)Network Systems Corp. 667,388
42,000 (f)Phoenix Technology Ltd. 301,875
20,900 (f)Qlogic Corp. 128,012
32,600 (f)Softech, Inc. 236,350
76,701 (f)Sterling Software, Inc. 2,396,905
14,700 (f)Symix Systems, Inc. 117,600
61,600 (f)Unitrode Corp. 1,185 800
17,500 (f)Verifone Inc 393,750
25,000 (f)Zygo Corp. 193,750
----------
Total 31,053,333
----------
Transportation_1.6%
20,000 Arnold Industries, Inc. 466,250
19,300 (f)Builders Transportation, Inc. 217,125
28,875 (f)Cannon Express, Inc., Class A 360,938
16,875 (f)Cannon Express, Inc., Class B 202,500
50,000 Intertrans Corp. 675,000
----------
Total 1,921,813
----------
Utilities_0.3%
20,000 Middlesex Water Co. 360,000
----------
Total 360,000
----------
TOTAL COMMON STOCKS
(IDENTIFIED COST $112,298,173) 116,722,369
----------
CORPORATE BOND_0.3%
$ 369,900 Mac-Neal Schwendler Corp., 7.875%,
Sub. Deb. Conv., 8/18/2004 369,900
----------
MUTUAL FUND SHARES_4.9%
526,816 Dreyfus Cash Management Trust 526,816
5,398,149 Fidelity Institutional Cash Money
Market Fund 5,398,149
----------
TOTAL MUTUAL FUND SHARES (AT NET
ASSET VALUE) 5,924,965
----------
TOTAL INVESTMENTS
(IDENTIFIED COST, $118,593,038) $123,017,234
----------
----------
</TABLE>
QUANTITATIVE EQUITY FUND
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value
<C> <S> <C>
COMMON STOCKS_43.3%
Basic Materials_2.9%
1,500 Morton International, Inc. $ 42,750
4,000 Pegasus Gold, Inc. 58,500
---------
Total 101,250
---------
Capital Goods/Construction_4.8%
800 Briggs & Stratton Corp. 55,600
2,000 Centex Corp. 44,500
1,400 General Electric Co. 68,425
---------
Total 168,525
---------
Consumer Cyclical_16.9%
3,000 (f)Brinker International, Inc. 69,375
2,000 Dow Jones & Co., Inc. 59,750
2,000 Home Depot, Inc. 91,000
800 Houghton Mifflin Co. 36,800
5,500 Maytag Corp. 87,313
3,000 New York Times Co., Class A 67,875
2,000 Time Warner, Inc. 71,000
1,200 Tribune Co. 63,150
1,000 Whirlpool Corp. 52,000
---------
Total 598,263
---------
Consumer Staples_7.0%
1,500 Campbell Soup Co. 61,875
1,400 General Motors Corp. 55,300
2,000 Hasbro, Inc. 66,000
1,200 Johnson & Johnson 65,550
---------
Total 248,725
---------
Energy_1.5%
500 Atlantic Richfield Co. 54,187
---------
Financial_6.1%
1,600 Federal Home Loan Mortgage Corp. 87,200
1,000 Federal National Mortgage Association 76,000
1,000 MBIA, Inc. 54,125
---------
Total 217,325
---------
Technology_2.2%
1,400 AT & T Corp. 77,000
---------
Transportation_1.9%
2,800 Southwest Airlines Co. 66,150
---------
TOTAL COMMON STOCKS
(IDENTIFIED COST $1,524,166) 1,531,425
---------
U.S. TREASURY BILL_48.4%
$1,711,000 4.10%, 11/3/94 1,710,610
---------
MUTUAL FUND SHARES_8.9%
157,075 Dreyfus Cash Management Trust 157,075
157,327 Fidelity Institutional Cash Money
Market Fund 157,327
---------
TOTAL MUTUAL FUND SHARES (AT NET ASSET
VALUE) 314,402
---------
TOTAL INVESTMENTS
(IDENTIFIED COST $3,549,178) $3,556,437
---------
---------
</TABLE>
THE SHAWMUT FUNDS
Notes to Portfolios of Investments October 31, 1994
(a) Each issue shows the rate of discount at the time of purchase for discount
issues.
(b) Current rate and next demand date shown.
(c) The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
(d) Also represents cost for federal tax purposes.
(e) Please refer to the Appendix of the Statement of Additional Information for
an explanation of the credit ratings. Current credit ratings are unaudited.
(f) Non-incoming producing securities.
The following abbreviations are used in these portfolios:
<TABLE>
<S> <C> <C> <C>
ADR -- American Depository Receipts HEFA -- Health and Education Facilities Authority
AMBAC -- American Municipal Bond Assurance Corporation HFA -- Housing Finance Authority/Agency
AMT -- Alternative Minimum Tax HMFP -- Housing Mortgage Finance Program
ARM -- Adjustable Rate Mortgage LOC -- Letter of Credit
BANs -- Bond Anticipation Notes LT -- Limited Tax
BQ -- Bank Qualified MBIA -- Municipal Bond Investors Assurance
CMO -- Collateralized Mortgage Obligation PCR -- Pollution Control Revenue
CP -- Commercial Paper RANs -- Revenue Anticipation Notes
FGIC -- Financial Guaranty Insurance Company REMIC -- Real Estate Mortgage Investment Conduit
FHA -- Federal Housing Administration SPA -- Standby Purchase Agreement
FSA -- Financial Security Assurance UT -- Unlimited Tax
GO -- General Obligation VRDNs -- Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
NET UNREALIZED GROSS GROSS
COST OF APPRECIATION/ UNREALIZED UNREALIZED
INVESTMENTS (DEPRECIATION) APPRECIATION DEPRECIATION
FOR FEDERAL TAX FOR FEDERAL FOR FEDERAL FOR FEDERAL
SHAWMUT FUNDS PURPOSES TAX PURPOSES TAX PURPOSES TAX PURPOSES
<S> <C> <C> <C> <C>
Prime Money Market Fund $ 657,480,013* $ 0 $ 0 $ 0
Connecticut Muncipal Money Market Fund 114,535,988* 0 0 0
Massachusetts Municipal Money Market Fund 31,424,613* 0 0 0
Limited Term Income Fund 63,629,215 (2,033,390) 11,665 (2,045,055)
Intermediate Government Income Fund 72,084,440 (4,465,114) 0 (4,465,114)
Fixed Income Fund 96,805,355 (7,377,303) 1,403 (7,378,706)
Connecticut Intermediate Municipal Income Fund 8,464,034 (558,436) 0 (558,436)
Massachusetts Intermediate Municipal Income Fund 6,988,164 (504,990) 0 (504,990)
Growth and Income Equity Fund 173,435,414 8,510,794 14,232,126 (5,721,332)
Growth Equity Fund 21,118,747 1,172,501 2,269,386 (1,096,885)
Small Capitalization Equity Fund 118,593,563 4,423,671 16,753,975 (12,330,304)
Quantitative Equity Fund 3,549,178 7,259 42,358 (35,099)
<CAPTION>
TOTAL
NET
SHAWMUT FUNDS ASSETS**
<S> <C>
Prime Money Market Fund $ 655,510,496
Connecticut Muncipal Money Market Fund 115,016,804
Massachusetts Municipal Money Market Fund 31,516,428
Limited Term Income Fund 62,406,423
Intermediate Government Income Fund 68,583,343
Fixed Income Fund 90,882,514
Connecticut Intermediate Municipal Income Fund 8,001,512
Massachusetts Intermediate Municipal Income Fund 6,567,998
Growth and Income Equity Fund 179,071,132
Growth Equity Fund 22,816,344
Small Capitalization Equity Fund 121,668,818
Quantitative Equity Fund 3,536,267
</TABLE>
* At Amortized Cost.
** The categories of investments are shown as a percentage of net assets at
October 31, 1994.
(See Notes which are an integral part of the Financial Statements)
THE SHAWMUT FUNDS
Statements of Assets and Liabilities October 31, 1994
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS
MUNICIPAL MUNICIPAL
PRIME MONEY MONEY MARKET MONEY MARKET
MARKET FUND FUND FUND
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value $ 657,480,013 $ 114,535,988 $ 31,424,613
Cash 34,920 -- --
Dividends and interest receivable 781,662 695,527 169,024
Receivable for Fund shares sold 2,150 -- --
Receivable for investments sold -- 24,000 --
Deferred expenses 79,731 2,619 1,084
--------------- --------------- ---------------
Total assets 658,378,476 115,258,134 31,594,721
--------------- --------------- ---------------
LIABILITIES:
Payable for Fund shares redeemed -- 11,303 3,677
Payable for investments purchased -- -- --
Payable to Adviser -- -- --
Payable to Bank -- 9,768 2,759
Accrued expenses 367,973 138,653 45,119
Dividends payable 2,500,007 81,606 26,738
--------------- --------------- ---------------
Total liabilities 2,867,980 241,330 78,293
--------------- --------------- ---------------
NET ASSETS CONSIST OF:
Paid-in capital 655,510,496 115,016,804 31,516,428
Net unrealized appreciation (depreciation) of investments -- -- --
Accumulated net realized gain (loss) on investments -- -- --
Undistributed net investment income -- -- --
--------------- --------------- ---------------
Total Net Assets $ 655,510,496 $ 115,016,804 $ 31,516,428
--------------- --------------- ---------------
NET ASSETS:
Trust Shares $ 499,318,749 $ 34,354,016 N/A
Investment Shares $ 156,191,747 $ 80,662,788 $ 31,516,428
--------------- --------------- ---------------
NET ASSET VALUE and Redemption Proceeds Per Share:
Trust Shares $1.00 $1.00 N/A
Investment Shares $1.00 $1.00 $1.00
------ ------ ------
OFFERING PRICE PER SHARE+:
Trust Shares $1.00 $1.00 N/A
Investment Shares $1.00 $1.00 $1.00
------ ------ ------
SHARES OUTSTANDING:
Trust Shares 499,318,749 34,354,016 N/A
Investment Shares 156,191,747 80,662,788 31,516,428
--------------- --------------- ---------------
TOTAL SHARES OUTSTANDING 655,510,496 115,016,804 31,516,428
--------------- --------------- ---------------
--------------- --------------- ---------------
INVESTMENTS, AT IDENTIFIED COST $ 657,480,013 $ 114,535,988 $ 31,424,613
--------------- --------------- ---------------
--------------- --------------- ---------------
<CAPTION>
LIMITED
TERM
INCOME
FUND
<S> <C>
ASSETS:
Investments in securities, at value $ 61,595,825
Cash --
Dividends and interest receivable 742,568
Receivable for Fund shares sold 224,574
Receivable for investments sold --
Deferred expenses 24,453
---------------
Total assets 62,587,420
---------------
LIABILITIES:
Payable for Fund shares redeemed 112,000
Payable for investments purchased --
Payable to Adviser --
Payable to Bank 5,376
Accrued expenses 63,621
Dividends payable --
---------------
Total liabilities 180,997
---------------
NET ASSETS CONSIST OF:
Paid-in capital 66,292,431
Net unrealized appreciation (depreciation) of investments (1,987,452)
Accumulated net realized gain (loss) on investments (2,010,716)
Undistributed net investment income 112,160
---------------
Total Net Assets $ 62,406,423
---------------
NET ASSETS:
Trust Shares $ 55,187,170
Investment Shares $ 7,219,253
---------------
NET ASSET VALUE and Redemption Proceeds Per Share:
Trust Shares $9.45
Investment Shares $9.45
------
OFFERING PRICE PER SHARE+:
Trust Shares $9.45
Investment Shares $9.64
------
SHARES OUTSTANDING:
Trust Shares 5,838,074
Investment Shares 763,700
---------------
TOTAL SHARES OUTSTANDING 6,601,774
---------------
---------------
INVESTMENTS, AT IDENTIFIED COST $ 63,583,277
---------------
---------------
</TABLE>
+ See "What Shares Cost" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
<TABLE>
<CAPTION>
INTERMEDIATE CONNECTICUT MASSACHUSETTS GROWTH AND SMALL
GOVERNMENT FIXED INTERMEDIATE INTERMEDIATE INCOME GROWTH CAPITALIZATION
INCOME INCOME MUNCIPAL MUNCIPAL EQUITY EQUITY EQUITY
FUND FUND INCOME FUND INCOME FUND FUND FUND] FUND
<S> <C> <C> <C> <C> <C> <C>
$ 67,619,326 $ 89,428,052 $ 7,905,598 $ 6,483,174 $ 181,946,208 $ 22,291,248 $ 123,017,234
-- -- -- -- 7,696 127,225 --
1,016,813 1,528,704 121,176 119,738 265,949 20,381 82,828
29,767 140,941 10,081 -- 426,348 5,256 68,904
2,636,141 -- -- -- 2,810,118 868,036 70,965
24,200 32,237 2,756 1,675 45,869 12,861 32,988
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
71,326,247 91,129,934 8,039,611 6,604,587 185,502,188 23,325,007 123,272,919
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
40,261 154,372 9,521 -- 98,627 56,545 368,735
2,618,374 -- -- -- 6,151,473 414,804 1,112,791
-- -- -- -- -- -- 76,987
6,014 7,991 6,425 5,004 -- -- 342
78,255 85,057 22,153 31,585 180,956 37,314 45,246
-- -- -- -- -- -- --
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
2,742,904 247,420 38,099 36,589 6,431,056 508,663 1,604,101
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
74,448,055 99,123,210 8,723,515 7,108,014 162,378,516 21,205,610 111,012,560
(4,465,114) (7,254,823) (558,436) (504,990) 9,200,362 1,786,346 4,424,196
(1,515,799) (1,147,333) (180,165) (42,418) 7,188,162 (195,968) 6,218,972
116,201 161,460 16,598 7,392 304,092 20,356 13,090
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
$ 68,583,343 $ 90,882,514 $ 8,001,512 $ 6,567,998 $ 179,071,132 $ 22,816,344 $ 121,668,818
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
$ 57,550,763 $ 82,468,341 N/A N/A $ 156,827,034 $ 16,970,478 $ 101,904,955
$ 11,032,580 $ 8,414,173 $ 8,001,512 $ 6,567,998 $ 22,244,098 $ 5,845,866 $ 19,763,863
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
$9.37 $9.32 N/A N/A $11.15 $10.69 $11.07
$9.37 $9.32 $9.32 $9.31 $11.15 $10.69 $11.06
------ ------ ------- ------- ------- ------- -------
$9.37 $9.32 N/A N/A $11.15 $10.69 $11.07
$9.56 $9.51 $9.51 $9.50 $11.61 $11.14 $11.52
------ ------ ------- ------- ------- ------- -------
6,143,929 8,850,245 N/A N/A 14,062,271 1,587,369 9,207,012
1,177,115 903,200 858,269 705,262 1,994,587 546,967 1,787,767
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
7,321,044 9,753,445 858,269 705,262 16,056,858 2,134,336 10,994,779
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
$ 72,084,440 $ 96,682,875 $ 8,464,034 $ 6,988,164 $ 172,745,846 $ 20,504,902 $ 118,593,038
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
<CAPTION>
QUANTITATIVE
EQUITY
FUND
<C>
$ 3,556,437
--
2,821
14,467
--
2,042
- ---------------
3,575,767
- ---------------
--
--
--
--
39,500
--
- ---------------
39,500
- ---------------
3,527,653
7,259
--
1,355
- ---------------
$ 3,536,267
- ---------------
$ 3,160,918
$ 375,349
- ---------------
$10.06
$10.06
- ----------------
$10.06
$10.48
- ----------------
314,297
37,301
- ---------------
351,598
- ---------------
- ---------------
$ 3,549,178
- ---------------
- ---------------
</TABLE>
THE SHAWMUT FUNDS
Statements of Operations Year Ended October 31, 1994
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS
MUNCIPAL MUNICIPAL
PRIME MONEY MONEY MARKET MONEY MARKET
MARKET FUND FUND FUND
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 20,520,973 $ 1,691,516 $ 682,198
Dividend income -- -- --
--------------- --------------- ---------------
Total income 20,520,973 1,691,516 682,198
--------------- --------------- ---------------
EXPENSES:
Investment advisory fees 2,555,606 305,260 136,636
Trustees' fees 1,894 58 173
Administrative personnel and services fees 545,008 77,039 50,000
Custodian fees 88,732 12,215 12,000
Portfolio accounting fees 102,552 54,416 40,086
Transfer and dividend disbursing agent fees and expenses 102,715 47,342 22,769
Fund share registration costs 147,537 64,341 23,017
Auditing fees 19,053 11,126 14,030
Legal fees 45,334 5,000 4,714
Printing and postage 24,984 23,184 17,735
Insurance premiums 7,881 6,204 5,152
Distribution services fees 426,103 217,698 --
Miscellaneous 14,914 3,848 836
--------------- --------------- ---------------
Total expenses 4,082,313 827,731 327,148
--------------- --------------- ---------------
Deduct--
Waiver of investment advisory fee and custodian fees 1,165,008 62,289 33,600
Waiver of administrative personnel and services fees 128,868 3,405 --
Reimbursement of other operating expenses 188,682 222,800 149,809
Waiver of distribution services fees 213,051 108,849 --
--------------- --------------- ---------------
NET EXPENSES 2,386,704 430,388 143,739
--------------- --------------- ---------------
NET INVESTMENT INCOME 18,134,269 1,261,128 538,459
--------------- --------------- ---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments (identified cost basis) -- -- --
Net realized gain (loss) on options (identified cost basis) -- -- --
Net change in unrealized appreciation (depreciation)
on investments -- -- --
--------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- -- --
--------------- --------------- ---------------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ 18,134,269 $ 1,261,128 $ 538,459
--------------- --------------- ---------------
--------------- --------------- ---------------
<CAPTION>
LIMITED
TERM
INCOME
FUND
<S> <C>
INVESTMENT INCOME:
Interest income $ 4,294,323*
Dividend income --
---------------
Total income 4,294,323
---------------
EXPENSES:
Investment advisory fees 546,634
Trustees' fees 1,349
Administrative personnel and services fees 73,627
Custodian fees 13,645
Portfolio accounting fees 64,879
Transfer and dividend disbursing agent fees and expenses 65,237
Fund share registration costs 27,738
Auditing fees 18,013
Legal fees 9,980
Printing and postage 26,041
Insurance premiums 6,556
Distribution services fees 31,201
Miscellaneous 8,239
---------------
Total expenses 893,139
---------------
Deduct--
Waiver of investment advisory fee and custodian fees 155,654
Waiver of administrative personnel and services fees --
Reimbursement of other operating expenses --
Waiver of distribution services fees 15,600
---------------
NET EXPENSES 721,885
---------------
NET INVESTMENT INCOME 3,572,438
---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments (identified cost basis) (1,968,004)
Net realized gain (loss) on options (identified cost basis) 4,439
Net change in unrealized appreciation (depreciation)
on investments (2,193,724)
---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (4,157,289)
---------------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS ($ 584,851)
---------------
---------------
</TABLE>
* Net of interest expense of $101,458.
** For the period from August 4, 1994 (date of initial public investment) to
October 31, 1994.
(See Notes which are an integral part of the Financial Statements)
<TABLE>
<CAPTION>
INTERMEDIATE CONNECTICUT MASSACHUSETTS GROWTH AND SMALL
GOVERNMENT FIXED INTERMEDIATE INTERMEDIATE INCOME GROWTH CAPITALIZATION
INCOME INCOME MUNICIPAL MUNICIPAL EQUITY EQUITY EQUITY
FUND FUND INCOME FUND INCOME FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
$ 5,034,451* $ 7,054,582* $ 390,937 $ 281,014 $ 588,124 $ 40,525 $ 325,478
-- -- 624 -- 5,171,312 323,828 1,103,843
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
5,034,451 7,054,582 391,561 281,014 5,759,436 364,353 1,429,321
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
615,460 789,707 58,691 40,530 1,720,866 239,796 1,180,502
1,471 960 84 158 2,172 825 544
82,788 106,280 50,000 50,000 184,829 50,000 126,698
15,380 19,744 12,000 12,000 34,400 12,000 23,598
63,823 63,672 50,796 49,897 63,324 59,617 72,515
79,247 72,103 33,003 33,580 92,444 69,426 94,993
27,375 30,417 12,294 12,760 37,989 20,161 27,554
16,763 18,441 17,221 16,560 16,169 14,013 15,406
11,545 16,113 2,116 4,921 7,461 3,388 6,317
25,107 28,283 19,412 17,357 11,493 26,487 26,071
6,762 5,645 -- 5,951 1,138 5,109 --
68,227 49,392 -- -- 96,587 26,500 89,974
7,211 15,185 1,337 183 10,608 4,837 7,968
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
1,021,159 1,215,942 256,954 243,897 2,279,480 532,159 1,672,140
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
175,780 233,458 70,691 52,530 389,293 137,313 326,550
-- -- -- -- -- -- --
-- -- 145,926 161,962 -- 86,267 --
34,113 24,696 -- -- 48,294 13,250 44,987
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
811,266 957,788 40,337 29,405 1,841,893 295,329 1,300,603
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
4,223,185 6,096,794 351,224 251,609 3,917,543 69,024 128,718
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
(1,567,146) (1,388,124) (180,165) (42,418) 7,261,816 (165,719) 6,221,566
(62,226) 46,478 -- -- -- -- --
(5,747,623) (10,853,861) (631,282) (573,616) 4,439,073 974,203 (4,130,546)
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
(7,376,995) (12,195,507) (811,447) (616,034) 11,700,889 808,484 2,091,020
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
($ 3,153,810) ($ 6,098,713) ($ 460,223) ($ 364,425) $ 15,618,432 $ 877,508 $ 2,219,738
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
<CAPTION>
QUANTITATIVE**
EQUITY
FUND
<C>
$ 32,681
2,638
- ---------------
35,319
- --------------
8,318
--
17,808
5,000
19,337
8,116
--
--
2,130
3,296
4,842
241
2,830
- ---------------
71,918
- ---------------
13,318
17,808
28,064
125
- ---------------
12,603
- ---------------
22,716
- ---------------
--
--
7,259
- --------------
7,259
- --------------
$ 29,975
- --------------
- --------------
</TABLE>
THE SHAWMUT FUNDS
Statements of Changes in Net Assets Year Ended October 31, 1994
<TABLE>
<CAPTION>
CONNECTICUT
MUNICIPAL
PRIME MONEY MONEY MARKET
MARKET FUND FUND
1994 1993* 1994
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS--
Net investment income $ 18,134,269 $ 6,088,864 $ 1,261,128
Net realized gain (loss) on investment transactions -- -- --
Change in net unrealized appreciation (depreciation)
of investments -- -- --
---------------- ---------------- ---------------
Change in net assets resulting from operations 18,134,269 6,088,864 1,261,128
---------------- ---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS--
Dividends to shareholders from net investment income:
Trust Shares (15,122,816) (5,990,070) (392,561)
Investment Shares (3,011,453) (98,794) (868,567)
Distributions to shareholders from net realized gain
on investments:
Trust Shares -- -- --
Investment Shares -- -- --
---------------- ---------------- ---------------
Change in net assets from distributions to shareholders (18,134,269) (6,088,864) (1,261,128)
---------------- ---------------- ---------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
Proceeds from sales of shares 1,358,180,192 651,556,019 214,871,629
Net asset value of shares issued to shareholders in payment
of dividends declared 2,374,749 94,351 846,013
Cost of shares redeemed (991,654,083) (365,140,732) (107,282,901)
---------------- ---------------- ---------------
Change in net assets from Fund share transactions 368,900,858 286,509,638 108,434,741
---------------- ---------------- ---------------
Change in net assets 368,900,858 286,509,638 108,434,741
NET ASSETS:
Beginning of period 286,609,638 100,000 6,582,063
---------------- ---------------- ---------------
End of period $ 655,510,496 $ 286,609,638 $ 115,016,804
---------------- ---------------- ---------------
---------------- ---------------- ---------------
Undistributed net investment income included in net assets
at end of period $ -- $ -- $ --
---------------- ---------------- ---------------
---------------- ---------------- ---------------
<CAPTION>
1993**
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS--
Net investment income $ 4,674
Net realized gain (loss) on investment transactions --
Change in net unrealized appreciation (depreciation)
of investments --
---------------
Change in net assets resulting from operations 4,674
---------------
DISTRIBUTIONS TO SHAREHOLDERS--
Dividends to shareholders from net investment income:
Trust Shares --
Investment Shares (4,674)
Distributions to shareholders from net realized gain
on investments:
Trust Shares --
Investment Shares --
---------------
Change in net assets from distributions to shareholders (4,674)
---------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
Proceeds from sales of shares 6,678,827
Net asset value of shares issued to shareholders in payment
of dividends declared 3,772
Cost of shares redeemed (100,536)
---------------
Change in net assets from Fund share transactions 6,582,063
---------------
Change in net assets 6,582,063
NET ASSETS:
Beginning of period --
---------------
End of period $ 6,582,063
---------------
---------------
Undistributed net investment income included in net assets
at end of period $ --
---------------
---------------
</TABLE>
* For the period from December 14, 1992 (date of initial public investment)
to October 31, 1993. For the period from October 21, 1992 (start of
business) to December 13, 1992, net investment income aggregating $0.004
per share ($400) was distributed to Federated Administrative Services.
** For the period from October 4, 1993 (date of initial public investment) to
October 31, 1993.
*** For the period from October 5, 1993 (date of initial public investment) to
October 31, 1993.
**** For the period from December 14, 1992 (date of initial public investment)
to October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
<TABLE>
<CAPTION>
MASSACHUSETTS MUNICIPAL LIMITED TERM INTERMEDIATE GOVERNMENT FIXED
MONEY MARKET FUND INCOME FUND INCOME FUND INCOME FUND
1994 1993*** 1994 1993**** 1994 1993**** 1994
<S> <C> <C> <C> <C> <C> <C>
$ 538,459 $ 735 $ 3,572,438 $ 2,844,797 $ 4,223,185 $ 3,210,248 $ 6,096,794
-- -- (1,963,565) (310,753) (1,629,372) (54,371) (1,341,646)
-- -- (2,193,724) 206,272 (5,747,623) 1,282,509 (10,853,861)
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
538,459 735 (584,851) 2,740,316 (3,153,810) 4,438,386 (6,098,713)
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
(538,459) (735) (3,054,920) (2,785,883) (3,318,862) (2,921,736) (5,236,662)
-- -- (288,271) (57,911) (678,800) (257,766) (559,260)
-- -- -- -- -- -- (436,120)
-- -- -- -- -- -- (49,491)
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
(538,459) (735) (3,343,191) (2,843,794) (3,997,662) (3,179,502) (6,281,533)
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
74,726,599 1,236,303 32,878,138 93,789,581 21,327,554 88,073,925 25,515,479
282,954 580 172,029 45,663 587,902 219,922 951,432
(44,730,008) -- (37,573,157) (22,874,311) (22,391,852) (13,341,520) (25,238,719)
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
30,279,545 1,236,883 (4,522,990) 70,960,933 (476,396) 74,952,327 1,228,192
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
30,279,545 1,236,883 (8,451,032) 70,857,455 (7,627,868) 76,211,211 (11,152,054)
1,236,883 -- 70,857,455 -- 76,211,211 -- 102,034,568
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
$ 31,516,428 $ 1,236,883 $ 62,406,423 $ 70,857,455 $ 68,583,343 $ 76,211,211 $ 90,882,514
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
$ -- $ -- $ 112,160 $ 1,003 $ 116,201 $ 30,746 $ 161,460
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
<CAPTION>
1993****
<C>
$ 4,568,605
483,546
3,599,038
- ---------------
8,651,189
- ---------------
(4,330,490)
(185,345)
--
--
- ---------------
(4,515,835)
- ---------------
113,243,761
150,258
(15,494,805)
- ---------------
97,899,214
- --------------
102,034,568
--
- ---------------
$ 102,034,568
- ---------------
- ---------------
$ 52,770
- ---------------
- ---------------
</TABLE>
THE SHAWMUT FUNDS
Statements of Changes in Net Assets--Continued Year Ended October 31, 1994
<TABLE>
<CAPTION>
MASSACHUSETTS
CONNECTICUT INTERMEDIATE INTERMEDIATE
MUNICIPAL MUNICIPAL
INCOME FUND INCOME FUND
1994 1993* 1994
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS--
Net investment income $ 351,224 $ 59,881 $ 251,609
Net realized gain (loss) on investment transactions (180,165) 6,714 (42,418)
Change in net unrealized appreciation (depreciation)
of investments (631,282) 72,846 (573,616)
--------------- --------------- ---------------
Change in net assets resulting from operations (460,223) 139,441 (364,425)
--------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM--
Dividends to shareholders from net investment income:
Trust Shares -- -- --
Investment Shares (336,798) (59,455) (248,443)
Distributions to shareholders from net realized gain
on investments:
Trust Shares -- -- --
Investment Shares (6,714) -- --
--------------- --------------- ---------------
Change in net assets from distributions to shareholders (343,512) (59,455) (248,443)
--------------- --------------- ---------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
Proceeds from sales of shares 4,718,416 7,254,696 4,291,184
Net asset value of shares issued to shareholders in payment
of dividends declared 205,330 28,457 138,571
Cost of shares redeemed (3,406,343) (75,295) (1,258,310)
--------------- --------------- ---------------
Change in net assets from Fund share transactions 1,517,403 7,207,858 3,171,445
--------------- --------------- ---------------
Change in net assets 713,668 7,287,844 2,558,577
NET ASSETS:
Beginning of period 7,287,844 -- 4,009,421
--------------- --------------- ---------------
End of period $ 8,001,512 $ 7,287,844 $ 6,567,998
--------------- --------------- ---------------
--------------- --------------- ---------------
Undistributed net investment income included in net assets
at end of period $ 16,598 $ 426 $ 7,392
--------------- --------------- ---------------
--------------- --------------- ---------------
<CAPTION>
1993*
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS--
Net investment income $ 38,103
Net realized gain (loss) on investment transactions --
Change in net unrealized appreciation (depreciation)
of investments 68,626
---------------
Change in net assets resulting from operations 106,729
---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM--
Dividends to shareholders from net investment income:
Trust Shares --
Investment Shares (35,666)
Distributions to shareholders from net realized gain
on investments:
Trust Shares --
Investment Shares --
---------------
Change in net assets from distributions to shareholders (35,666)
---------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
Proceeds from sales of shares 3,946,103
Net asset value of shares issued to shareholders in payment
of dividends declared 18,392
Cost of shares redeemed (26,137)
---------------
Change in net assets from Fund share transactions 3,938,358
---------------
Change in net assets 4,009,421
NET ASSETS:
Beginning of period --
---------------
End of period $ 4,009,421
---------------
---------------
Undistributed net investment income included in net assets
at end of period $ 2,437
---------------
---------------
</TABLE>
* For the period from June 17, 1993 (date of initial public investment) to
October 31, 1993.
** For the period from December 14, 1992 (date of initial public investment) to
October 31, 1993.
*** For the period from August 4, 1994 (date of initial public investment) to
October 31, 1994.
(See Notes which are an integral part of the Financial Statements)
<TABLE>
<CAPTION>
QUANTATITIVE
GROWTH AND INCOME GROWTH EQUITY SMALL CAPITALIZATION EQUITY
EQUITY FUND FUND EQUITY FUND FUND
1994 1993** 1994 1993** 1994 1993** 1994***
<S> <C> <C> <C> <C> <C> <C>
$ 3,917,543 $ 2,496,184 $ 69,024 $ 51,244 $ 128,718 $ 7,644 $ 22,716
7,261,816 4,324,678 (165,719) 448,318 6,221,566 3,369,998 --
4,439,073 4,761,289 974,203 812,143 (4,130,546) 8,554,742 7,259
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
15,618,432 11,582,151 877,508 1,311,705 2,219,738 11,932,384 29,975
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
(3,281,259) (2,334,825) (58,158) (43,156) (119,464) (7,644) (20,748)
(357,326) (140,395) (1,090) (1,522) (33) -- (1,294)
(3,938,454) -- (384,883) -- (2,899,114) (7,435) --
(459,878) -- (93,684) -- (466,043) -- --
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
(8,036,917) (2,475,220) (537,815) (44,678) (3,484,654) (15,079) (22,042)
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
45,022,703 173,784,764 4,449,448 40,120,471 22,848,417 109,180,277 3,577,118
4,732,196 134,568 478,579 1,520 3,361,444 -- 2,580
(41,634,892) (19,656,653) (7,869,468) (15,970,926) (18,672,111) (5,701,598) (51,364)
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
8,120,007 154,262,679 (2,941,441) 24,151,065 7,537,750 103,478,679 3,528,334
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
15,701,522 163,369,610 (2,601,748) 25,418,092 6,272,834 115,395,984 3,536,267
163,369,610 -- 25,418,092 -- 115,395,984 -- --
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
$ 179,071,132 $ 163,369,610 $ 22,816,344 $ 25,418,092 $ 121,668,818 $ 115,395,984 $ 3,536,267
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
$ 304,092 $ 20,964 $ 20,356 $ 6,566 $ 13,090 $ -- $ 1,355
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
</TABLE>
Financial Highlights
<TABLE>
<CAPTION>
NET REALIZED DIVIDENDS
AND TO DISTRIBUTIONS TO
YEAR NET ASSET UNREALIZED SHAREHOLDERS SHAREHOLDERS FROM
ENDED VALUE, NET GAIN/(LOSS) TOTAL FROM FROM NET NET REALIZED GAIN
OCTOBER BEGINNING INVESTMENT ON INVESTMENT INVESTMENT ON INVESTMENT TOTAL
31, OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME TRANSACTIONS DISTRIBUTIONS
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT SHARES
PRIME MONEY MARKET
1993* $ 1.00 $ 0.02 $ -- $ -- $ (0.02) $ -- $ (0.02)
1994 1.00 0.03 -- -- (0.03) -- (0.03)
CONNECTICUT MUNICIPAL MONEY MARKET
1993** 1.00 0.001 -- -- (0.001) -- (0.001)
1994 1.00 0.02 -- -- (0.02) -- (0.02)
MASSACHUSETTS MUNICIPAL MONEY MARKET++
1993*** 1.00 0.001 -- -- (0.001) -- (0.001)
1994 1.00 0.02 -- -- (0.02) -- (0.02)
LIMITED TERM INCOME
1993* 10.09 0.34 (0.09) 0.25 (0.34) -- (0.34)
1994 10.00 0.49 (0.58) (0.09) (0.46) -- (0.46)
INTERMEDIATE GOVERNMENT INCOME
1993* 10.18 0.37 0.08 0.45 (0.37) -- (0.37)
1994 10.26 0.52 (0.92) (0.40) (0.49) -- (0.49)
FIXED INCOME
1993* 10.23 0.40 0.31 0.71 (0.39) -- (0.39)
1994 10.55 0.59 (1.21) (0.62) (0.56) (0.05) (0.61)
CONNECTICUT INTERMEDIATE MUNICIPAL INCOME++
1993**** 10.00 0.13 0.24 0.37 (0.13) -- (0.13)
1994 10.24 0.42 (0.93) (0.51) (0.40) (0.01) (0.41)
MASSACHUSETTS INTERMEDIATE MUNICIPAL INCOME++
1993**** 10.00 0.14 0.29 0.43 (0.13) -- (0.13)
1994 10.30 0.42 (0.99) (0.57) (0.42) -- (0.42)
GROWTH AND INCOME EQUITY
1993* 10.23 0.15 0.48 0.63 (0.17) -- (0.17)
1994 10.69 0.22 0.72 0.94 (0.20) (0.28) (0.48)
GROWTH EQUITY
1993* 10.01 0.004 0.480 0.484 (0.004) -- (0.004)
1994 10.49 0.010 0.390 0.400 (0.002) (0.196) (0.198)
SMALL CAPITALIZATION EQUITY
1993* 10.52 (0.008) 0.698 0.690 0.000 -- 0.000
1994 11.21 (0.01) 0.18 0.17 0.00 (0.32) (0.32)
QUANTITATIVE EQUITY
1994***** 10.03 0.07 0.03 0.10 (0.07) -- (0.07)
</TABLE>
* For the period from February 12, 1993 (date of initial public offering) to
October 31, 1993.
** For the period from October 4, 1993 (date of initial public investment) to
October 31, 1993.
*** For the period from October 5, 1993 (date of initial public investment) to
October 31, 1993.
**** For the period from June 17, 1993 (date of initial public investment) to
October 31, 1993.
***** For the period from August 4, 1994 (date of initial public investment) to
October 31, 1994.
+ Based on net asset value which does not reflect the sales load or contingent
deferred sales charge, if applicable.
++ Massachusetts Municipal Money Market Fund, Connecticut Intermediate
Municipal
Income Fund and Massachusetts Intermediate Municipal Income Fund sell their
shares without class designation.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
<TABLE>
<CAPTION>
NET ASSETS,
END
NET ASSET NET OF PERIOD PORTFOLIO
VALUE, END TOTAL INVESTMENT EXPENSE WAIVER/ (000 TURNOVER
OF PERIOD RETURN+ EXPENSES INCOME REIMBURSEMENT (B) OMITTED) RATE
<C> <C> <C> <C> <C> <C> <C>
$ 1.00 1.73% 0.85%(a) 2.36%(a) 0.37%(a) $ 28,758 --
1.00 3.28% 0.68% 3.33% 0.54% 156,192 --
1.00 0.14% 0.36%(a) 2.12%(a) 5.46%(a) 6,582 --
1.00 1.83% 0.78% 1.99% 0.72% 80,663 --
1.00 0.12% 0.11%(a) 2.75%(a) 35.31%(a) 1,237 --
1.00 1.99% 0.53% 2.00% 0.68% 31,516 --
10.00 2.57% 1.13%(a) 5.07%(a) 0.48%(a) 3,859 53%
9.45 (0.96%) 1.28% 5.01% 0.48% 7,219 144%
10.26 4.45% 1.15%(a) 5.41%(a) 0.50%(a) 13,812 30%
9.37 (3.99%) 1.26% 5.29% 0.48% 11,032 84%
10.55 7.02% 1.12%(a) 5.61%(a) 0.48%(a) 9,550 33%
9.32 (6.08%) 1.19% 5.95% 0.49% 8,414 73%
10.24 3.75% 0.50%(a) 3.80%(a) 2.33%(a) 7,288 8%
9.32 (5.17%) 0.48% 4.23% 2.61% 8,002 59%
10.30 4.35% 0.50%(a) 4.07%(a) 3.57%(a) 4,009 0%
9.31 (5.71%) 0.51% 4.35% 3.70% 6,568 41%
10.69 6.20% 1.25%(a) 1.77%(a) 0.53%(a) 16,280 38%
11.15 9.12% 1.29% 2.06% 0.45% 22,244 73%
10.49 4.84% 1.37%(a) (0.10%)(a) 0.72%(a) 4,631 71%
10.69 3.86% 1.43% 0.09% 1.18% 5,846 73%
11.21 6.56% 1.33%(a) (0.19%)(a) 0.54%(a) 15,014 29%
11.06 1.64% 1.31% (0.10%) 0.53% 19,764 29%
10.06 0.94% 1.75%(a) 2.50%(a) 7.37%(a) 375 0%
</TABLE>
Financial Highlights
<TABLE>
<CAPTION>
NET REALIZED DIVIDENDS
AND TO DISTRIBUTIONS TO
YEAR NET ASSET UNREALIZED SHAREHOLDERS SHAREHOLDERS FROM
ENDED VALUE, NET GAIN/(LOSS) TOTAL FROM FROM NET NET REALIZED GAIN
OCTOBER BEGINNING INVESTMENT ON INVESTMENT INVESTMENT ON INVESTMENT TOTAL
31, OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME TRANSACTIONS DISTRIBUTIONS
<S> <C> <C> <C> <C> <C> <C> <C>
TRUST SHARES
PRIME MONEY MARKET++
1993* $ 1.00 $ 0.02 $ -- $ -- $ (0.02) $ -- $ (0.02)
1994 1.00 0.03 -- -- (0.03) -- (0.03)
CONNECTICUT MUNICIPAL MONEY MARKET
1994** 1.00 0.02 -- -- (0.02) -- (0.02)
MASSACHUSETTS MUNICIPAL MONEY MARKET+++
1993*** 1.00 0.001 -- -- (0.001) -- (0.001)
1994 1.00 0.02 -- -- (0.02) -- (0.02)
LIMITED TERM INCOME
1993* 10.00 0.49 -- 0.49 (0.49) -- (0.49)
1994 10.00 0.52 (0.59) (0.07) (0.48) -- (0.48)
INTERMEDIATE GOVERNMENT INCOME
1993* 10.00 0.52 0.26 0.78 (0.52) -- (0.52)
1994 10.26 0.54 (0.92) (0.38) (0.51) -- (0.51)
FIXED INCOME
1993* 10.00 0.55 0.55 1.10 (0.55) -- (0.55)
1994 10.55 0.62 (1.22) (0.60) (0.58) (0.05) (0.63)
CONNECTICUT INTERMEDIATE MUNICIPAL INCOME+++
1993**** 10.00 0.13 0.24 0.37 (0.13) -- (0.13)
1994 10.24 0.42 (0.93) (0.51) (0.40) (0.01) (0.41)
MASSACHUSETTS INTERMEDIATE MUNICIPAL INCOME+++
1993**** 10.00 0.14 0.29 0.43 (0.13) -- (0.13)
1994 10.30 0.42 (0.99) (0.57) (0.42) -- (0.42)
GROWTH AND INCOME EQUITY
1993* 10.00 0.18 0.69 0.87 (0.18) -- (0.18)
1994 10.69 0.25 0.72 0.97 (0.23) (0.28) (0.51)
GROWTH EQUITY
1993* 10.00 0.023 0.487 0.510 (0.019) -- (0.019)
1994 10.49 0.037 0.390 0.427 (0.032) (0.196) (0.228)
SMALL CAPITALIZATION EQUITY
1993* 10.00 0.002 1.210 1.212 (0.002) -- (0.002)
1994 11.21 0.02 0.17 0.19 (0.01) (0.32) (0.33)
QUANTITATIVE EQUITY
1994***** 10.03 0.07 0.03 0.10 (0.07) -- (0.07)
</TABLE>
* For the period from December 14, 1992 (date of initial public investment)
to October 31, 1993.
** For the period from December 16, 1993 (date of initial public investment)
to October 31, 1994.
*** For the period from October 5, 1993 (date of initial public investment) to
October 31, 1993.
**** For the period from June 17, 1993 (date of initial public investment) to
October 31, 1993.
***** For the period from August 4, 1994 (date of initial public investment) to
October 31, 1994.
+ Based on net asset value which does not reflect the sales load or contingent
deferred sales charge, if applicable.
++ For the period from October 21, 1992 (start of business) to
December 13, 1992 ,
net investment income aggregating $0.004 per share ($400) was distributed to
Federated Administrative Services.
+++ Massachusetts Municipal Money Market Fund, Connecticut Intermediate
Municipal
Income Fund and Massachusetts Intermediate Municipal Income Fund sell their
shares without class designation.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
<TABLE>
<CAPTION>
NET ASSETS,
END
NET ASSET NET OF PERIOD PORTFOLIO
VALUE, END TOTAL INVESTMENT EXPENSE WAIVER/ (000 TURNOVER
OF PERIOD RETURN+ EXPENSES INCOME REIMBURSEMENT (B) OMITTED) RATE
<C> <C> <C> <C> <C> <C> <C>
$ 1.00 2.41% 0.58%(a) 2.71%(a) 0.12%(a) $ 257,851 --
1.00 3.54% 0.43% 3.58% 0.29% 499,319 --
1.00 2.08% 0.53%(a) 2.24%(a) 0.47%(a) 34,354 --
1.00 0.12% 0.11%(a) 2.75%(a) 35.31%(a) 1,237 --
1.00 1.99% 0.53% 2.00% 0.68% 31,516 --
10.00 5.02% 0.88%(a) 5.54%(a) 0.23%(a) 66,998 53%
9.45 (0.69%) 1.03% 5.26% 0.23% 55,187 144%
10.26 7.97% 0.88%(a) 5.83%(a) 0.26%(a) 62,399 30%
9.37 (3.75%) 1.01% 5.54% 0.23% 57,551 84%
10.55 11.26% 0.85%(a) 6.06%(a) 0.22%(a) 92,485 33%
9.32 (5.85%) 0.94% 6.20% 0.24% 82,468 73%
10.24 3.75% 0.50%(a) 3.80%(a) 2.33%(a) 7,288 8%
9.32 (5.17%) 0.48% 4.23% 2.61% 8,002 59%
10.30 4.35% 0.50%(a) 4.07%(a) 3.57%(a) 4,009 0%
9.31 (5.71%) 0.51% 4.35% 3.70% 6,568 41%
10.69 8.80% 0.98%(a) 2.11%(a) 0.27%(a) 147,090 38%
11.15 9.45% 1.04% 2.31% 0.20% 156,827 73%
10.49 5.09% 1.06%(a) 0.26%(a) 0.47%(a) 20,787 71%
10.69 4.16% 1.18% 0.34% 0.93% 16,970 73%
11.21 12.12% 1.01%(a) 0.02%(a) 0.28%(a) 100,382 29%
11.07 1.86% 1.06% 0.15% 0.28% 101,905 29%
10.06 0.94% 1.50%(a) 2.75%(a) 7.12%(a) 3,161 0%
</TABLE>
THE SHAWMUT FUNDS
NOTES TO FINANCIAL STATEMENTS October 31, 1994
(1) ORGANIZATION
The Shawmut Funds (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "Act"), as an open-end management investment company.
The Trust consists of eight diversified portfolios and four non-diversified
portfolios (individually referred to as the "Fund", or collectively as the
"Funds") at October 31, 1994, as follows:
Shawmut Prime Money Market Fund ("Prime Money Market Fund")
Shawmut Connecticut Municipal Money Market Fund ("Connecticut Municipal Money
Market Fund")*
Shawmut Massachusetts Municipal Money Market Fund ("Massachusetts Municipal
Money Market Fund")*
Shawmut Limited Term Income Fund ("Limited Term Income Fund")
Shawmut Intermediate Government Income Fund ("Intermediate Government Income
Fund")
Shawmut Fixed Income Fund ("Fixed Income Fund")
Shawmut Connecticut Intermediate Municipal Income Fund ("Connecticut
Intermediate Municipal Income Fund")*
Shawmut Massachusetts Intermediate Municipal Income Fund ("Massachusetts
Intermediate Municipal Income Fund")*
Shawmut Growth and Income Equity Fund ("Growth and Income Equity Fund")
Shawmut Growth Equity Fund ("Growth Equity Fund")
Shawmut Small Capitalization Equity Fund ("Small Capitalization Equity Fund")
Shawmut Quantitative Equity Fund ("Quantitative Equity Fund")
-----------
*non-diversified portfolios
All Funds except Massachusetts Municipal Money Market Fund, Connecticut
Intermediate Municipal Income Fund, and Massachusetts Intermediate Municipal
Income Fund, provide two classes of shares: Investment Shares and Trust
Shares. Shares of the Massachusetts Municipal Money Market Fund, Connecticut
Intermediate Municipal Income Fund, and Massachusetts Intermediate Municipal
Income Fund are offered without class designation, the funds are presented as
Investment Shares for financial statement purposes. The assets of each Fund
are segregated and a shareholder's interest is limited to the Fund in which
shares are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS--Listed equity securities, corporate bonds (and
other fixed income and asset backed securities) are valued at the last
sale price reported on national securities exchanges. Unlisted securities
and short-term securities are generally valued at the price provided by an
independent pricing service. U.S. government securities are generally
valued at the bid prices as furnished by an independent pricing service.
Municipal bonds are valued by an independent pricing service, taking into
consideration yield, liquidity, risk, credit, quality, coupon, maturity,
type of issue, and any other factors or market data it deems relevant in
determining valuations for normal institutional-size trading units of debt
securities. The independent pricing service does not rely exclusively on
quoted prices. Short-term securities with remaining maturities of sixty
days or less may be valued at amortized cost, which approximates fair
market value. Investments in other regulated investment companies are
valued at net asset value. The money market funds' use of the amortized
cost method to value their portfolio securities is in accordance with Rule
2a-7 under the Act.
B. REPURCHASE AGREEMENTS--It is the policy of the Funds to require the
custodian bank to take possession, to have legally segregated in the
Federal Reserve Book Entry System, or to have segregated within the
custodian bank's vault, all securities held as collateral in support of
repurchase agreement investments. Additionally, procedures have been
established by the Funds to monitor, on a daily basis, the market value of
each repurchase agreement's underlying collateral to ensure the value of
collateral at least equals the principal amount of the repurchase
agreement, including accrued interest.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are
deemed by the Funds' adviser to be creditworthy pursuant to the guidelines
established by the Board of Trustees (the "Trustees"). Risks may arise
from the potential inability of counterparties to honor the terms of the
repurchase agreement. Accordingly, the Funds could receive less than the
repurchase price on the sale of collateral securities.
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Dividend income and
distributions to shareholders are recorded on the ex-dividend date.
Interest income and expenses are accrued daily. Bond premium and discount,
if applicable, are amortized as required by the Internal Revenue Code, as
amended (the "Code").
D. FEDERAL TAXES--It is the Funds' policy to comply with the provisions of
the Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of their taxable or tax-exempt
income. Accordingly, no provisions for federal tax are necessary.
At October 31, 1994, The Shawmut Funds, for federal tax purposes, had
capital loss carry forwards, which will reduce the Fund's taxable income
arising from future net realized gain on investments, if any, to the
extent permitted by the 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 tax.
<TABLE>
<CAPTION>
1994 1993
Carry Carry
Forwards Forwards
to Expire in to Expire in
2002 2001
<S> <C> <C>
Limited Term Income Fund $ 1,797,977 $ 166,802
Intermediate Government Income Fund 1,515,800 --
Fixed Income Fund 1,024,854 --
Connecticut Intermediate Municipal Income Fund 180,165 --
Massachusetts Intermediate Municipal Income Fund 42,418 --
</TABLE>
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in
when-issued or delayed delivery transactions. The Funds record when-issued
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on
the settlement date.
F. DEFERRED EXPENSES--The costs incurred by each Fund with respect to
registration of their shares in its first fiscal year, excluding the
initial expense of registering its shares, have been deferred and are
being amortized using the straight-line method not to exceed a period of
five years from each Fund's commencement date.
G. DOLLAR ROLL TRANSACTIONS--The Fixed Income Fund, Intermediate Government
Income Fund, and Limited Term Income Fund enter into dollar roll
transactions, with respect to mortgage securities issued by GNMA, FNMA and
FHLMC, in which the Funds loan mortgage securities to financial
institutions and simultaneously agree to accept substantially similar
(same type, coupon and maturity) securities at a later date at an agreed
upon price. Dollar roll transactions are short-term financing arrangements
which will not exceed twelve months. These Funds will use the proceeds
generated from the transactions to invest in short-term investments which
may enhance the Funds' current yield and total return.
H. OPTIONS CONTRACTS--Fixed Income Fund, Intermediate Government Income Fund
and Limited Term Income Fund may write or purchase option contracts. A
written option obligates the Funds to deliver (a call), or to receive (a
put), the contract amount upon exercise by the holder of the option. The
value of the option contract written is recorded as a
liability and unrealized
gain or loss is measured by the difference between the
current value and the premium received.
Written option transactions during the period are summarized as follows:
<TABLE>
<CAPTION>
Proceeds* 10/31/93 Opened Exercised Closed
<S> <C> <C> <C> <C> <C>
Fixed Income Fund $ 129,396 0 280 0 190
Intermediate Government Income Fund 47,218 0 110 0 110
Limited Term Income Fund 53,802 0 100 0 100
<CAPTION>
Expired 10/31/94
<S> <C> <C>
Fixed Income Fund 90 0
Intermediate Government Income Fund 0 0
Limited Term Income Fund 0 0
</TABLE>
*Represents premium received less commissions paid.
I. RECLASSIFICATION OF CAPITAL ACCOUNTS
During the fiscal year ended October 31, 1994, The Shawmut Funds adopted
Statement of Position 93-2, Determination, Disclosure and Financial
Statement Presentation of Income, Capital Gain and Return of Capital
Distributions by Investment Companies. Permanent book and tax differences,
which resulted from non-deductible organizational expenses, have been
reclassified from undistributed net investment income to paid-in capital
in accordance with SOP 93-2. In addition, permanent book and tax
differences resulting from the treatment of paydowns on mortgage-backed
securities have been reclassified from accumulated net realized gain
(loss) on investments to undistributed net investment income.
Undistributed net investment income and accumulated net realized gain
(loss) on investments have been adjusted to reflect the tax nature of
distributions. Adjustments to paid-in capital have been made to reflect a
prior year tax return of capital which resulted from distributions in
excess of the aggregate amount of taxable income. Net investment income,
net realized gain (loss) on investments and net assets were not affected
by these changes. These reclassifications have been made in accordance
with SOP 93-2 as follows:
<TABLE>
<CAPTION>
Prior
year
Return of Organizational
Capital Distributions Paydowns Expenses
<S> <C> <C> <C> <C>
Limited Term Income Fund $ 141,666 $ -- $ 263,602 $ 3,846
Intermediate Government Income Fund 23,625 91,351 259,295 4,252
Fixed Income Fund -- 122,993 319,371 4,196
Connecticut Intermediate Municipal Income Fund -- -- -- 1,746
Massachusetts Intermediate Municipal Income Fund -- -- -- 1,789
Growth and Income Equity Fund -- -- -- 4,170
Growth Equity Fund -- -- -- 4,014
Small Capitalization Equity Fund -- 7,435 -- 3,869
Quantitative Equity Fund -- -- -- 681
</TABLE>
J. OTHER--Investment transactions are accounted for on the trade date.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
For the period ended October 31:
Connecticut Massachusetts
Municipal Municipal
Prime Money Money Market Money Market
Market Fund Fund Fund
1994 1993* 1994 1993** 1994 1993***
<S> <C> <C> <C> <C> <C> <C>
TRUST SHARES
Shares sold 1,096,945,801 615,788,528 73,243,617 150 -- --
Shares issued to shareholders in payment
of dividends declared 3 2 18 -- -- --
Shares redeemed (855,478,380) (358,037,205) (38,889,769) -- -- --
------------- ------------- ------------ ---------- ----------- ----------
241,467,424 257,751,325 34,353,866 150 -- --
------------- ------------- ------------ ---------- ----------- ----------
INVESTMENT SHARES
Shares sold 261,234,391 35,767,491 141,628,012 6,678,677 74,726,599 1,236,303
Shares issued to shareholders in payment
of dividends declared 2,374,746 94,349 845,995 3,772 282,954 580
Shares redeemed (136,175,703) (7,103,527) (68,393,132) (100,536) (44,730,008) --
------------- ------------- ------------ ---------- ----------- ----------
127,433,434 28,758,313 74,080,875 6,581,913 30,279,545 1,236,883
------------- ------------- ------------ ---------- ----------- ----------
Net change resulting from Fund share
transactions 368,900,858 286,509,638 108,434,741 6,582,063 30,279,545 1,236,883
------------- ------------- ------------ ---------- ----------- ----------
------------- ------------- ------------ ---------- ----------- ----------
</TABLE>
*Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
**For the period from October 4, 1993 (date of initial public investment) to
October 31, 1993.
***For the period from October 5, 1993 (date of initial public investment) to
October 31, 1993.
<TABLE>
<CAPTION>
For the year ended October 31, 1994:
Limited Term Intermediate Government
Income Fund Income Fund Fixed Income Fund
Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C>
TRUST SHARES
Shares sold 2,767,724 $ 27,063,722 1,773,695 $ 17,669,269 2,241,082 $ 22,256,955
Shares issued to shareholders in payment
of dividends declared -- -- -- -- 42,297 436,081
Shares redeemed (3,627,778) (35,273,732) (1,713,155) (16,642,730) (2,198,827) (21,589,033)
---------- ------------- ---------- ------------- ---------- -------------
(860,054) (8,210,010) 60,540 1,026,539 84,552 1,104,003
---------- ------------- ---------- ------------- ---------- -------------
INVESTMENT SHARES
Shares sold 598,969 5,814,416 362,801 3,658,285 320,868 3,258,524
Shares issued to shareholders in payment
of dividends declared 17,756 172,029 60,087 587,902 52,197 515,351
Shares redeemed (238,838) (2,299,425) (592,453) (5,749,122) (375,060) (3,649,686)
---------- ------------- ---------- ------------- ---------- -------------
377,887 3,687,020 (169,565) (1,502,935) (1,995) 124,189
---------- ------------- ---------- ------------- ---------- -------------
Net change resulting from Fund share
transactions (482,167) ($4,522,990) (109,025) ($476,396) 82,557 $ 1,228,192
---------- ------------- ---------- ------------- ---------- -------------
---------- ------------- ---------- ------------- ---------- -------------
</TABLE>
<TABLE>
<CAPTION>
For the period ended October 31, 1993:
Limited Term Intermediate Government
Income Fund* Income Fund* Fixed Income Fund*
Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C>
TRUST SHARES
Shares sold 8,951,067 $ 89,744,129 7,286,148 $ 73,447,437 10,214,367 $ 103,565,799
Shares issued to shareholders in payment
of dividends declared -- -- -- -- -- --
Shares redeemed (2,252,939) (22,657,941) (1,202,759) (12,271,381) (1,448,674) (15,079,076)
---------- ------------- ---------- ------------- ----------- -------------
6,698,128 67,086,188 6,083,389 61,176,056 8,765,693 88,486,723
---------- ------------- ---------- ------------- ----------- -------------
INVESTMENT SHARES
Shares sold 402,814 4,045,452 1,429,918 14,626,488 930,761 9,677,962
Shares issued to shareholders in payment
of dividends declared 4,558 45,663 21,484 219,918 14,366 150,258
Shares redeemed (21,559) (216,370) (104,722) (1,070,135) (39,932) (415,729)
---------- ------------- ---------- ------------- ----------- -------------
385,813 3,874,745 1,346,680 13,776,271 905,195 9,412,491
---------- ------------- ---------- ------------- ----------- -------------
Net change resulting from Fund share
transactions 7,083,941 $ 70,960,933 7,430,069 $ 74,952,327 9,670,888 $ 97,899,214
---------- ------------- ---------- ------------- ----------- -------------
---------- ------------- ---------- ------------- ----------- -------------
</TABLE>
*For the period from December 14, 1992 (date of initial public investment) to
October 31, 1993.
<TABLE>
<CAPTION>
For the year ended October 31, 1994:
Connecticut Massachusetts
Intermediate Intermediate Growth and Income
Municipal Income Fund Municipal Income Fund Equity Fund
Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C>
TRUST SHARES
Shares sold -- -- -- -- 3,516,115 $ 37,606,058
Shares issued to shareholders in payment of
dividends declared -- -- -- -- 377,823 3,936,919
Shares redeemed -- -- -- -- (3,589,377) (38,467,504)
--------- ----------- --------- ----------- ---------- -------------
-- -- -- -- 304,561 3,075,473
--------- ----------- --------- ----------- ---------- -------------
INVESTMENT SHARES
Shares sold 473,934 $ 4,718,416 431,195 $ 4,291,184 692,705 7,416,645
Shares issued to shareholders in payment of
dividends declared 20,919 205,330 14,141 138,571 75,351 795,277
Shares redeemed (348,269) (3,406,343) (129,428) (1,258,310) (296,338) (3,167,388)
--------- ----------- --------- ----------- ---------- -------------
146,584 1,517,403 315,908 3,171,445 471,718 5,044,534
--------- ----------- --------- ----------- ---------- -------------
Net change resulting from Fund share trans-
actions 146,584 $ 1,517,403 315,908 $ 3,171,445 776,279 $ 8,120,007
--------- ----------- --------- ----------- ---------- -------------
--------- ----------- --------- ----------- ---------- -------------
</TABLE>
<TABLE>
<CAPTION>
For the period ended October 31, 1993:
Connecticut Massachusetts
Intermediate Intermediate
Municipal Income Fund* Municipal Income Growth and Income
Fund* Equity Fund**
Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C>
TRUST SHARES
Shares sold -- -- -- -- 15,585,818 $ 157,356,704
Shares issued to shareholders in payment of
dividends declared -- -- -- -- -- --
Shares redeemed -- -- -- -- (1,828,108) (18,850,279)
--------- ----------- --------- ----------- ----------- -------------
-- -- -- -- 13,757,710 138,506,425
--------- ----------- --------- ----------- ----------- -------------
INVESTMENT SHARES
Shares sold 716,256 $ 7,254,696 390,132 $ 3,946,103 1,587,317 16,428,060
Shares issued to shareholders in payment of
dividends declared 2,772 28,457 1,791 18,392 12,941 134,568
Shares redeemed (7,343) (75,295) (2,569) (26,137) (77,389) (806,374)
--------- ----------- --------- ----------- ----------- -------------
711,685 $ 7,207,858 389,354 3,938,358 1,522,869 15,756,254
--------- ----------- --------- ----------- ----------- -------------
Net change resulting from Fund share transactions 711,685 $ 7,207,858 389,354 $ 3,938,358 15,280,579 $ 154,262,679
--------- ----------- --------- ----------- ----------- -------------
--------- ----------- --------- ----------- ----------- -------------
</TABLE>
*For the period from June 17, 1993 (date of initial public investment) to
October 31, 1993.
**For the period from December 14, 1992 (date of initial public investment) to
October 31, 1993.
<TABLE>
<CAPTION>
For the year ended October 31, 1994:
Small Capitalization Quantitative
Growth Equity Fund Equity Fund Equity Fund***
Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C>
TRUST SHARES
Shares sold 250,398 $ 2,578,510 1,467,595 $ 15,906,772 319,168 $ 3,201,250
Shares issued to shareholders in payment of
dividends declared 37,172 383,982 273,939 2,898,278 129 1,305
Shares redeemed (681,047) (7,002,047) (1,487,415) (16,147,839) (5,000) (50,000)
--------- ----------- ---------- ------------- --------- -----------
(393,477) (4,039,555) 254,119 2,657,211 314,297 3,152,555
--------- ----------- ---------- ------------- --------- -----------
INVESTMENT SHARES
Shares sold 181,094 1,870,938 638,429 6,941,644 37,310 375,868
Shares issued to shareholders in payment of
dividends declared 9,156 94,597 43,778 463,167 126 1,275
Shares redeemed (84,829) (867,421) (233,644) (2,524,272) (135) (1,364)
--------- ----------- ---------- ------------- --------- -----------
105,421 1,098,114 448,563 4,880,539 37,301 375,779
--------- ----------- ---------- ------------- --------- -----------
Net change resulting from Fund share transactions (288,056) $(2,941,441) 702,682 $ 7,537,750 351,598 $ 3,528,334
--------- ----------- ---------- ------------- --------- -----------
--------- ----------- ---------- ------------- --------- -----------
</TABLE>
***For the period from August 4, 1994 (date of initial public investment) to
October 31, 1994.
<TABLE>
<CAPTION>
For the period ended October 31, 1993:
Small Capitalization
Growth Equity Fund* Equity Fund*
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
TRUST SHARES
Shares sold 3,558,465 $ 35,585,725 9,429,143 $ 94,833,359
Shares issued to shareholders in payment of dividends declared -- -- -- --
Shares redeemed (1,577,619) (15,770,615) (476,251) (5,009,041)
---------- ------------- ----------- -------------
1,980,846 19,815,110 8,952,892 89,824,318
---------- ------------- ----------- -------------
INVESTMENT SHARES
Shares sold 461,439 4,534,746 1,406,367 14,346,918
Shares issued to shareholders in payment of dividends declared 151 1,520 -- --
Shares redeemed (20,044) (200,311) (67,162) (692,557)
---------- ------------- ----------- -------------
441,546 4,335,955 1,339,205 13,654,361
---------- ------------- ----------- -------------
Net change resulting from Fund share transactions 2,422,392 $ 24,151,065 10,292,097 $ 103,478,679
---------- ------------- ----------- -------------
---------- ------------- ----------- -------------
</TABLE>
*For the period from December 14, 1992 (date of initial public investment) to
October 31, 1993.
(4) INVESTMENT ADVISORY FEE AND OTHER
TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE. Shawmut Bank, N.A., the Trust's investment adviser
(the "Adviser"), receives for its services an annual investment advisory fee
based upon a percentage of each Fund's average daily net assets (see below).
The Adviser may voluntarily choose to waive a portion of its fee and reimburse
certain operating expenses of the Funds. The Adviser can modify or terminate
this voluntary waiver and reimbursement at any time at its sole discretion.
<TABLE>
<CAPTION>
Annual
Fund Rate*
<S> <C>
Prime Money Market Fund 0.50%
Connecticut Municipal Money Market Fund 0.50%
Massachusetts Municipal Money Market Fund 0.50%
Limited Term Income Fund 0.80%
Intermediate Government Income Fund 0.80%
Fixed Income Fund 0.80%
Connecticut Intermediate Municipal Income Fund 0.70%
Massachusetts Intermediate Municipal Income Fund 0.70%
Growth and Income Equity Fund 1.00%
Growth Equity Fund 1.00%
Small Capitalization Equity Fund 1.00%
Quantitative Equity Fund 1.00%
</TABLE>
*As a percentage of daily net assets
SUB-ADVISORY FEE. Pursuant to the terms of an investment sub-advisory
agreement between the Adviser and Marque Millennium Group Limited (the
"Sub-Adviser"), Marque Millennium furnishes certain investment advisory
services to the Adviser on behalf of the Quantitative Equity Fund. For the
services provided and the expenses incurred by the Sub-Adviser pursuant to the
sub-advisory agreement, the sub-adviser is entitled to receive an annual fee
of one-half of the total advisory fee being charged (up to .50 of 1.00% of the
Quantitative Equity Fund's average daily net assets being paid to the
Sub-Adviser), payable by the Adviser. The sub-adviser may elect to waive some
or all of its fee. In no event shall the Quantitative Equity Fund be
responsible for any fees due to the Sub-Adviser for its services to the
Adviser.
ADMINISTRATION FEE. Administrative personnel and services are provided by
Federated Administrative Services ("FAS" or "Administrator") at an annual rate
of .15 of 1% on the first $250 million of average aggregate net assets of the
Trust; .125 of 1% on the next $250 million; .10 of 1% on the next $250
million; and .075 of 1% on average aggregate net assets in excess of $750
million. FAS may voluntarily waive a portion of its fee.
DISTRIBUTION PLAN. The Funds have adopted a Distribution Plan (the "Plan")
pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Funds
will compensate Federated Securities Corp. ("FSC"), the principal distributor,
from the net assets of the Funds, to finance activities intended to result in
the sale of the Funds' Investment Shares. The Plan provides that the Funds may
incur distribution expenses up to .50 of 1% of the average daily net assets of
the Investment Shares, if applicable, and including the shares of
Massachusetts Municipal Money Market Fund, Connecticut Intermediate Municipal
Income Fund and Massachusetts Intermediate Municipal Income Fund. The fee is
paid annually, to compensate FSC.
TRANSFER AND DIVIDEND DISBURSING AGENT, PORTFOLIO ACCOUNTING AND CUSTODY
FEES. Federated Services Company ("FServ") serves as transfer and dividend
disbursing agent for the Funds. The FServ fee is based on the size, type and
number of accounts and transactions made by shareholders. FServ also maintains
the Funds' accounting records. The fee is based on the level of each Fund's
average net assets for the period, plus out-of-pocket expenses.
Shawmut Bank, N.A., is the Trust's custodian. The fee is based on the level of
each Fund's average net assets for the period, plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES. Organizational expenses were borne initially by FAS.
The Funds have agreed to reimburse the Administrator for the organizational
expenses during the five year period following December 1, 1992, (date the
Trust first became effective). For the year ended October 31, 1994, the Funds
paid FAS as follows:
<TABLE>
<CAPTION>
Initial Organizational
Organizational Expenses
Fund Expenses Reimbursed
<S> <C> <C>
Prime Money Market Fund $ 37,081 $ 4,944
Connecticut Municipal Money Market Fund 37,463 2,786
Massachusetts Municipal Money Market Fund 20,617 1,117
Limited Term Income Fund 38,183 5,091
Intermediate Government Income Fund 39,950 5,327
Fixed Income Fund 40,086 5,335
Connecticut Intermediate Municipal Income Fund 35,706 4,629
Massachusetts Intermediate Municipal Income Fund 28,555 3,702
Growth and Income Equity Fund 39,753 5,301
Growth Equity Fund 38,503 5,114
Small Capitalization Equity Fund 37,360 4,981
Quantitative Equity Fund 25,403 972
</TABLE>
During the year ended October 31, 1994, the Connecticut Municipal Money Market
Fund engaged in purchase and sale transactions with other affiliated funds at
current value pursuant to Rule 17a-7 under the Act amounting to $32,322,402
and $14,800,621, respectively.
Certain of the Officers and Trustees of the Trust are Officers and Directors
or Trustees of FSC, FServ and FAS.
(5) CONCENTRATION OF CREDIT RISK
Since the Connecticut Intermediate Municipal Income Fund, Connecticut
Municipal Money Market Fund, Massachusetts Intermediate Municipal Income Fund
and Massachusetts Municipal Money Market Fund invest a substantial portion of
their assets in issuers located in one state, they will be more susceptible to
factors adversely affecting issuers of that state than would be a comparable
general tax-exempt mutual fund.
In order to reduce the credit risk associated with such factors, at October
31, 1994, 23.4% of the securities in the Connecticut Intermediate Municipal
Income Fund's portfolio of investments are backed by letters of credit or bond
insurance of various financial institutions and financial guaranty assurance
agencies. The aggregate percentages by financial institutions and agencies
ranged from 1.1% to 5.0% of total investments.
At October 31, 1994, 63% of the securities in the Connecticut Municipal Money
Market Fund's portfolio of investments are backed by letters of credit or bond
insurance of various financial institutions and financial guaranty assurance
agencies. The aggregate percentages by financial institutions and agencies
ranged from 0.6% and 15.0% of total investments.
At October 31, 1994, 33.9% of the securities in the Massachusetts Intermediate
Municipal Income Fund's portfolio of investments are backed by letters of
credit or bond insurance of various financial institutions and financial
guaranty assurance agencies. The aggregate percentages by financial
institutions and agencies ranged from 2.3% and 18.8% of total investments.
At October 31, 1994, 59.0% of the securities in the Massachusetts Municipal
Money Market Fund's portfolio of investments are backed by letters of credit
or bond insurance of various institutions and financial guaranty assurance
agencies. The aggregate percentages by financial institutions and agencies
ranged from 0.8% and 18.8% of total investments.
(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
year ended October 31, 1994 were as follows:
<TABLE>
<CAPTION>
Connecticut Massachusetts
Intermediate Intermediate Intermediate
Limited Term Government Fixed Income Municipal Municipal
Income Fund Income Fund Fund Income Fund Income Fund
<S> <C> <C> <C> <C> <C>
Purchases $ 95,136,041 $63,716,154 $ 102,025,329 $6,250,877 $ 5,421,245
Sales $ 95,946,080 $61,064,538 $ 97,763,092 $4,742,846 $ 2,255,493
</TABLE>
<TABLE>
<CAPTION>
Growth and Small
Income Equity Growth Capitalization Quantitative
Fund Equity Fund Equity Fund Equity Fund
<S> <C> <C> <C> <C>
Purchases $ 121,279,082 $ 16,752,914 $ 37,865,938 $ 1,524,166
Sales $ 114,488,934 $ 20,798,753 $ 31,903,440 $ 0
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
THE SHAWMUT FUNDS:
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments (excluding the credit ratings), and
the related statements of operations and of changes in net assets and the
financial highlights, present fairly, in all material respects, the financial
position of Shawmut Prime Money Market Fund, Shawmut Connecticut Municipal
Money Market Fund, Shawmut Massachusetts Municipal Money Market Fund, Shawmut
Limited Term Income Fund, Shawmut Intermediate Government Income Fund, Shawmut
Fixed Income Fund, Shawmut Connecticut Intermediate Municipal Income Fund,
Shawmut Massachusetts Intermediate Municipal Income Fund, Shawmut Growth and
Income Equity Fund, Shawmut Growth Equity Fund, Shawmut Small Capitalization
Equity Fund, and Shawmut Quantitative Equity Fund (portfolios of The Shawmut
Funds, hereafter referred to as the "Funds") at October 31, 1994, and the
results of each of their operations, the changes in each of their net assets
and the financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at October 31, 1994 by
correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
Price Waterhouse LLP
Boston, Massachusetts
December 16, 1994
Shawmut Limited Term Income Fund--Trust/Investment Shares
GROWTH OF $10,000 INVESTED IN SHAWMUT LIMITED TERM INCOME FUND--TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Limited Term Income Fund--Trust Shares (the "Fund") from December 14,
1992 (start of performance) to October 31, 1994 compared to the Merrill Lynch
1-3 Year U.S. Treasury Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "A"
GROWTH OF $10,000 INVESTED IN SHAWMUT LIMITED TERM INCOME FUND--INVESTMENT
SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Limited Term Income Fund--Investment Shares (the "Fund") from February
12, 1993 (start of performance) to October 31, 1994 compared to the Merrill
Lynch 1-3 Year U.S. Treasury Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "B"
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The Merrill Lynch 1-3 Year U.S. Treasury Index has been
adjusted to reflect reinvestment of dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 2.00% ($10,000 investment minus $200 sales charge
= $9,800). The Fund's performance assumes the reinvestment of all dividends
and distributions. The Merrill Lynch 1-3 Year U.S. Treasury Index has been
adjusted to reflect reinvestment of dividends on securities in the index.
The Merrill Lynch 1-3 Year U.S. Treasury Index is not adjusted to reflect
sales loads, expenses, or other fees that the Securities and Exchange
Commission requires to be reflected in the Fund's performance. This index is
unmanaged.
Shawmut Intermediate Government Income Fund--Trust/Investment Shares
GROWTH OF $10,000 INVESTED IN SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND--TRUST
SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Intermediate Government Income Fund--Trust Shares (the "Fund"), from
December 14, 1992 (start of performance) to October 31, 1994 compared to the
Lehman Brothers Intermediate Government Corporate Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "C"
GROWTH OF $10,000 INVESTED IN SHAWMUT INTERMEDIATE GOVERNMENT INCOME
FUND--INVESTMENT SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Intermediate Government Income Fund--Investment Shares (the "Fund") from
February 12, 1993 (start of performance) to October 31, 1994 compared to the
Lehman Brothers Intermediate Government Corporate Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "D"
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The Lehman Brothers Intermediate Government Corporate Index has
been adjusted to reflect reinvestment of dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 2.00% ($10,000 investment minus $200 sales charge
= $9,800). The Fund's performance assumes the reinvestment of all dividends
and distributions. The Lehman Brothers Intermediate Government Corporate Index
has been adjusted to reflect reinvestment of dividends on securities in the
index.
The Lehman Brothers Intermediate Government Corporate Index is not adjusted to
reflect sales loads, expenses, or other fees that the Securities and Exchange
Commission requires to be reflected in the Fund's performance. This index is
unmanaged.
Shawmut Fixed Income Fund--Trust/Investment Shares
GROWTH OF $10,000 INVESTED IN SHAWMUT FIXED INCOME FUND--TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Fixed Income Fund--Trust Shares (the "Fund") from December 14, 1992
(start of performance) to October 31, 1994 compared to the Lehman Brothers
Government Corporate Total Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "E"
GROWTH OF $10,000 INVESTED IN SHAWMUT FIXED INCOME FUND--INVESTMENT SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Fixed Income Fund--Investment Shares (the "Fund") from February 12, 1993
(start of performance) to October 31, 1994 compared to the Lehman Brothers
Government Corporate Total Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "F"
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The Lehman Brothers Government Corporate Total Index has been
adjusted to reflect reinvestment of dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 2.00% ($10,000 investment minus $200 sales charge
= $9,800). The Fund's performance assumes the reinvestment of all dividends
and distributions. The Lehman Brothers Government Corporate Total Index has
been adjusted to reflect reinvestment of dividends on securities in the index.
The Lehman Brothers Government Corporate Total Index is not adjusted to
reflect sales loads, expenses, or other fees that the Securities and
Exchange Commission requires to be reflected in the Fund's performance. This
index is unmanaged.
Shawmut Connecticut Intermediate Municipal Income Fund
GROWTH OF $10,000 INVESTED IN SHAWMUT CONNECTICUT INTERMEDIATE MUNICIPAL INCOME
FUND
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Connecticut Intermediate Municipal Income Fund (the "Fund") from June
17, 1993 (start of performance) to October 31, 1994 compared to the Lehman
Brothers 7 Year Municipal Bond Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "G"
Shawmut Massachusetts Intermediate Municipal Income Fund
GROWTH OF $10,000 INVESTED IN SHAWMUT MASSACHUSETTS INTERMEDIATE MUNICIPAL
INCOME FUND
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Massachusetts Intermediate Municipal Income Fund (the "Fund") from June
17, 1993 (start of performance) to October 31, 1994 compared to the Lehman
Brothers 7 Year Municipal Bond Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "H"
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The Lehman Brothers 7 Year Municipal Bond Index has been
adjusted to reflect reinvestment of dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 2.00% ($10,000 investment minus $200 sales
charge = $9,800) for retail investors. The Fund's performance assumes the
reinvestment of all dividends and distributions. The Lehman Brothers 7 Year
Municipal Bond Index has been adjusted to reflect reinvestment of dividends
on securities in the index.
The Lehman Brothers 7 Year Municipal Bond Index is not adjusted to reflect
sales loads, expenses, or other fees that the Securities and Exchange
Commission requires to be reflected in the Fund's performance. This index is
unmanaged.
Shawmut Growth and Income Equity Fund--Trust/Investment Shares
GROWTH OF $10,000 INVESTED IN SHAWMUT GROWTH AND INCOME EQUITY FUND--TRUST
SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Growth and Income Equity Fund-- Trust Shares (the "Fund") from December
14, 1992 (start of performance) to October 31, 1994 compared to the Standard &
Poor's 500 Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "I"
GROWTH OF $10,000 INVESTED IN SHAWMUT GROWTH AND INCOME EQUITY FUND--INVESTMENT
SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Growth and Income Equity Fund-- Investment Shares (the "Fund") from
February 12, 1993 (start of performance) to October 31, 1994 compared to the
Standard & Poor's 500 Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "J"
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The Standard & Poor's 500 Index has been adjusted to reflect
reinvestment of dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 4.00% ($10,000 investment minus $400 sales charge
= $9,600). The Fund's performance assumes the reinvestment of all dividends
and distributions. The Standard & Poor's 500 Index has been adjusted to
reflect reinvestment of dividends on securities in the index.
The Standard & Poor's 500 Index is not adjusted to reflect sales loads,
expenses, or other fees that the Securities and Exchange Commission requires
to be reflected in the Fund's performance. This index is unmanaged.
Shawmut Growth Equity Fund--Trust/Investment Shares
GROWTH OF $10,000 INVESTED IN SHAWMUT GROWTH EQUITY FUND--TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Growth Equity Fund--Trust Shares (the "Fund") from December 14, 1992
(start of performance) to October 31, 1994 compared to the Standard & Poor's 500
Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "K"
GROWTH OF $10,000 INVESTED IN SHAWMUT GROWTH EQUITY FUND--INVESTMENT SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Growth Equity Fund--Investment Shares (the "Fund") from February 12,
1993 (start of performance) to October 31, 1994 compared to the Standard &
Poor's 500 Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "L"
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The Standard & Poor's Index has been adjusted to reflect
reinvestment of dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 4.00% ($10,000 investment minus $400 sales charge
= $9,600). The Fund's performance assumes the reinvestment of all dividends
and distributions. The Standard & Poor's 500 Index has been adjusted to
reflect reinvestment of dividends on securities in the index.
The Standard & Poor's 500 Index is not adjusted to reflect sales loads,
expenses, or other fees that the Securities and Exchange Commission requires
to be reflected in the Fund's performance. This index is unmanaged.
Shawmut Small Capitalization Equity Fund--Trust/Investment Shares
GROWTH OF $10,000 INVESTED IN SHAWMUT SMALL CAPITALIZATION EQUITY FUND--TRUST
SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Small Capitalization Equity Fund-- Trust Shares (the "Fund") from
December 14, 1992 (start of performance) to October 31, 1994 compared to the
Standard & Poor's 500 Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "M"
GROWTH OF $10,000 INVESTED IN SHAWMUT SMALL CAPITALIZATION EQUITY
FUND--INVESTMENT SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Small Capitalization Equity Fund-- Investment Shares (the "Fund") from
February 12, 1993 (start of performance) to October 31, 1994 compared to the
Standard & Poor's 500 Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "N"
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The Standard & Poor's 500 Index has been adjusted to reflect
reinvestment of dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 4.00% ($10,000 investment minus $400 sales charge
= $9,600). The Fund's performance assumes the reinvestment of all dividends
and distributions. The Standard & Poor's 500 Index has been adjusted to
reflect reinvestment of dividends on securities in the index.
The Standard & Poor's 500 Index is not adjusted to reflect sales loads,
expenses, or other fees that the Securities and Exchange Commission requires
to be reflected in the Fund's performance. This index is unmanaged.
Shawmut Quantitative Equity Fund--Trust/Investment Shares
GROWTH OF $10,000 INVESTED IN SHAWMUT QUANTITATIVE EQUITY FUND--TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Quantitative Equity Fund--Trust Shares (the "Fund") from August 4, 1994
(start of performance) to October 31, 1994 compared to the Standard & Poor's 500
Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "O"
GROWTH OF $10,000 INVESTED IN SHAWMUT QUANTITATIVE EQUITY FUND--INVESTMENT
SHARES
The graph below illustrates the hypothetical investment of $10,000 in the
Shawmut Quantitative Equity Fund--Investment Shares (the "Fund") from August 4,
1994 (start of performance) to October 31, 1994 compared to the Standard &
Poor's 500 Index.+
GRAPHIC REPRESENTATION OMITTED SEE APPENDIX "P"
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The Standard & Poor's 500 Index has been adjusted to reflect
reinvestment of dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 4.00% ($10,000 investment minus $400 sales charge
= $9,600). The Fund's performance assumes the reinvestment of all dividends
and distributions. The Standard & Poor's 500 Index has been adjusted to
reflect reinvestment of dividends on securities in the index.
The Standard & Poor's 500 Index is not adjusted to reflect sales loads,
expenses, or other fees that the Securities and Exchange Commission requires
to be reflected in the Fund's performance. This index is unmanaged.
SHAWMUT MUTUAL FUNDS
TRUSTEES AND OFFICERS
<TABLE>
<S> <C> <C>
TRUSTEES OFFICERS
JOHN F. DONAHUE JOHN F. DONAHUE
THOMAS G. BIGLEY Chairman
JOHN T. CONROY, JR. EDWARD C. GONZALES
WILLIAM J. COPELAND President and Treasurer
JAMES E. DOWD J. CHRISTOPHER DONAHUE
LAWRENCE D. ELLIS, M.D. Vice President
EDWARD L. FLAHERTY, JR. RICHARD B. FISHER
EDWARD C. GONZALES Vice President
PETER E. MADDEN JOHN W. MCGONIGLE
GREGOR F. MEYER Vice President and Secretary
WESLEY W. POSVAR JEFFREY W. STERLING
MARJORIE P. SMUTS Vice President and Assistant Treasurer
DAVID M. TAYLOR
Assistant Treasurer
ROBERT C. ROSSELOT
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are
not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation,
the Federal Reserve Board, or any other governmental agency. Investment in mutual funds
involves risk, including possible loss of principal. Although money market funds seek to
maintain a stable net asset value of $1.00 per share, there is no assurance that they will
be able to do so.
This report is authorized for distribution to prospective investors only when preceded or
accompanied by The Shawmut Funds' prospectuses which contain facts concerning the Funds'
objectives and policies, management fees, expenses, and other
information.
INVESTMENT ADVISER
Shawmut Bank, N.A.
One Federal Street
Boston, MA 02211
ADMINISTRATOR
Federated Administrative Services
Federated Investors Tower
Pittsburgh, PA 15222-3779
CUSTODIAN
Shawmut Bank, N.A.
One Federal Street
Boston, MA 02211
TRANSFER AGENT
Federated Services Company
Federated Investors Tower
Pittsburgh, PA 15222-3779
DISTRIBUTOR
Federated Securities Corporation
Federated Investors Tower
Pittsburgh, PA 15222-3779
LEGAL COUNSEL
Dickstein, Shapiro & Morin, L.L.P.
2101 L Street N.W.
Washington, D.C. 20037
Houston, Houston & Donnelly
2510 Centre City Tower
Pittsburgh, PA 15222
SHAWMUT
MONEY MARKET FUNDS
PRIME MONEY MARKET
CONNECTICUT MUNICIPAL MONEY MARKET
MASSACHUSETTS MUNICIPAL MONEY MARKET
SHAWMUT INCOME FUNDS
LIMITED TERM INCOME
INTERMEDIATE GOVERNMENT INCOME
FIXED INCOME
CONNECTICUT INTERMEDIATE MUNICIPAL INCOME
MASSACHUSETTS INTERMEDIATE MUNICIPAL INCOME
SHAWMUT EQUITY FUNDS
GROWTH AND INCOME EQUITY
GROWTH EQUITY
SMALL CAPITALIZATION EQUITY
QUANTITATIVE EQUITY
CALL 1-800-SHAWMUT FOR MORE INFORMATION
ON THE SHAWMUT FAMILY OF FUNDS
820482859 820482842 820482834
820482701 820482750 820482768
820482693 820482776 820482792
820482107 820482404 820482503
820482818 820482826 820482784
820482800 820482875 820482305
820482833 820482206 820482867
3110404 (12/94)
THE SHAWMUT FUNDS
APPENDIX
A. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Investment Shares of Limited
Term Income Fund are represented by a broken line. Merrill
Lynch 1-3 Year U.S. Treasury Index is represented by a solid
line. The line graph is a visual representation of a
comparison of change in value of a hypothetical investment
of $10,000 in Investment Shares of Limited Term Income Fund
and Merrill Lynch 1-3 Year U.S. Treasury Index for the
fiscal year ended October 31, 1994 and since the start of
performance on February 12, 1993. The "y" axis reflects the
cost of investment. The "x" axis reflects computation
periods in yearly increments from February 12, 1993 (start
of performance) to October 31, 1994. The right margin of
the chart reflects the ending value of the hypothetical
investment in the Investment Shares of Limited Term Fund as
compared to the Merrill Lynch 1-3 Year U.S. Treasury Index.
The ending values are $9,956 and $10,516, respectively.
B. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Trust Shares of Limited Term
Income Fund are represented by a broken line. Merrill Lynch
1-3 Year U.S. Treasury Index is represented by a solid line.
The line graph is a visual representation of a comparison of
change in value of a hypothetical investment of $10,000 in
Trust Shares of Limited Term Income Fund and Merrill Lynch 1-
3 Year U.S. Treasury Index for the fiscal year ended October
31, 1994 and since the start of performance on December 14,
1992. The "y" axis reflects the cost of investment. The
"x" axis reflects computation periods in yearly increments
from December 14, 1992 (start of performance) to October 31,
1994. The right margin of the chart reflects the ending
value of the hypothetical investment in the Trust Shares of
Limited Term Fund as compared to the Merrill Lynch 1-3 Year
U.S. Treasury Index. The ending values are $10,430 and
$10,726, respectively.
C. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Investment Shares of
Intermediate Government Income Fund are represented by a
broken line. Lehman Brothers Intermediate Government
Corporate Index is represented by a solid line. The line
graph is a visual representation of a comparison of change
in value of a hypothetical investment of $10,000 in
Investment Shares of Intermediate Government Income Fund and
Lehman Brothers Intermediate Government Corporate Index for
the fiscal year ended October 31, 1994 and since the start
of performance on February 12, 1993. The "y" axis reflects
the cost of investment. The "x" axis reflects computation
periods in yearly increments from February 12, 1993 (start
of performance) to October 31, 1994. The right margin of
the chart reflects the ending value of the hypothetical
investment in the Investment Shares of Intermediate
Government Income Fund as compared to the Lehman Brothers
Intermediate Government Corporate Index. The ending values
are $9,828 and $10,476, respectively.
D. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Trust Shares of Intermediate
Government Income Fund are represented by a broken line.
Lehman Brothers Intermediate Government Corporate Index is
represented by a solid line. The line graph is a visual
representation of a comparison of change in value of a
hypothetical investment of $10,000 in Trust Shares of
Intermediate Government Income Fund and Lehman Brothers
Intermediate Government Corporate Index for the fiscal year
ended October 31, 1994 and since the start of performance on
December 14, 1992. The "y" axis reflects the cost of
investment. The "x" axis reflects computation periods in
yearly increments from December 14, 1992 (start of
performance) to October 31, 1994. The right margin of the
chart reflects the ending value of the hypothetical
investment in the Trust Shares of Intermediate Government
Income Fund as compared to the Lehman Brothers Intermediate
Government Corporate Index. The ending values are $10,392
and $10,822, respectively.
E. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Investment Shares of Fixed
Income Fund are represented by a broken line. Lehman
Brothers Government Corporate Total Index is represented by
a solid line. The line graph is a visual representation of
a comparison of change in value of a hypothetical investment
of $10,000 in Investment Shares of Fixed Income Fund and
Lehman Brothers Government Corporate Total Index for the
fiscal year ended October 31, 1994 and since the start of
performance on February 12, 1993. The "y" axis reflects the
cost of investment. The "x" axis reflects computation
periods in yearly increments from February 12, 1993 (start
of performance) to October 31, 1994. The right margin of
the chart reflects the ending value of the hypothetical
investment in the Investment Shares of Fixed Income Fund as
compared to the Lehman Brothers Government Corporate Total
Index. The ending values are $9,850 and $10,437,
respectively.
F. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Trust Shares of Fixed Income
Fund are represented by a broken line. Lehman Brothers
Government Corporate Total Index is represented by a solid
line. The line graph is a visual representation of a
comparison of change in value of a hypothetical investment
of $10,000 in Trust Shares of Fixed Income Fund and Lehman
Brothers Government Corporate Total Index for the fiscal
year ended October 31, 1994 and since the start of
performance on December 14, 1992. The "y" axis reflects the
cost of investment. The "x" axis reflects computation
periods in yearly increments from December 14, 1992 (start
of performance) to October 31, 1994. The right margin of
the chart reflects the ending value of the hypothetical
investment in the Trust Shares of Fixed Income Fund as
compared to the Lehman Brothers Government Corporate Total
Index. The ending values are $10,475 and $10,848,
respectively.
G. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Shares of Connecticut
Intermediate Municipal Income Fund are represented by a
broken line. Lehman Brothers 7 Year Municipal Bond Index is
represented by a solid line. The line graph is a visual
representation of a comparison of change in value of a
hypothetical investment of $10,000 in Shares of Connecticut
Intermediate Municipal Income Fund and Lehman Brothers 7
Year Municipal Bond Index for the fiscal year ended October
31, 1994 and since the start of performance on June 17,
1993. The "y" axis reflects the cost of investment. The
"x" axis reflects computation periods in yearly increments
from June 17, 1993 (start of performance) to October 31,
1994. The right margin of the chart reflects the ending
value of the hypothetical investment in the Shares of
Connecticut Intermediate Municipal Income Fund as compared
to the Lehman Brothers 7 Year Municipal Bond Index. The
ending values are $9,642 and $10,165, respectively.
H. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Shares of Massachusetts
Intermediate Municipal Income Fund are represented by a
broken line. Lehman Brothers 7 Year Municipal Bond Index is
represented by a solid line. The line graph is a visual
representation of a comparison of change in value of a
hypothetical investment of $10,000 in Shares of
Massachusetts Intermediate Municipal Income Fund and Lehman
Brothers 7 Year Municipal Bond Index for the fiscal year
ended October 31, 1994 and since the start of performance on
June 17, 1993. The "y" axis reflects the cost of
investment. The "x" axis reflects computation periods in
yearly increments from June 17, 1993 (start of performance)
to October 31, 1994. The right margin of the chart reflects
the ending value of the hypothetical investment in the
Shares of Massachusetts Intermediate Municipal Income Fund
as compared to the Lehman Brothers 7 Year Municipal Bond
Index. The ending values are $9,642 and $10,165,
respectively.
I. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Investment Shares of Growth and
Income Equity Fund are represented by a broken line.
Standard & Poor's 500 Index is represented by a solid line.
The line graph is a visual representation of a comparison of
change in value of a hypothetical investment of $10,000 in
Investment Shares of Growth and Income Equity Fund and
Standard & Poor's 500 Index for the fiscal year ended
October 31, 1994 and since the start of performance on
February 12, 1993. The "y" axis reflects the cost of
investment. The "x" axis reflects computation periods in
yearly increments from February 12, 1993 (start of
performance) to October 31, 1994. The right margin of the
chart reflects the ending value of the hypothetical
investment in the Investment Shares of Growth and Income
Equity Fund as compared to the Standard & Poor's 500 Index.
The ending values are $11,125 and $11,297, respectively.
J. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Trust Shares of Growth and
Income Equity Fund are represented by a broken line.
Standard & Poor's 500 Index is represented by a solid line.
The line graph is a visual representation of a comparison of
change in value of a hypothetical investment of $10,000 in
Trust Shares of Growth and Income Equity Fund and Standard &
Poor's 500 Index for the fiscal year ended October 31, 1994
and since the start of performance on December 14, 1992.
The "y" axis reflects the cost of investment. The "x" axis
reflects computation periods in yearly increments from
December 14, 1992 (start of performance) to October 31,
1994. The right margin of the chart reflects the ending
value of the hypothetical investment in the Trust Shares of
Growth and Income Equity Fund as compared to the Standard &
Poor's 500 Index. The ending values are $11,548 and
$11,908, respectively.
K. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Investment Shares of Growth
Equity Fund are represented by a broken line. Standard &
Poor's 500 Index is represented by a solid line. The line
graph is a visual representation of a comparison of change
in value of a hypothetical investment of $10,000 in
Investment Shares of Growth Equity Fund and Standard &
Poor's 500 Index for the fiscal year ended October 31, 1994
and since the start of performance on February 12, 1993.
The "y" axis reflects the cost of investment. The "x" axis
reflects computation periods in yearly increments from
February 12, 1993 (start of performance) to October 31,
1994. The right margin of the chart reflects the ending
value of the hypothetical investment in the Investment
Shares of Growth Equity Fund as compared to the Standard &
Poor's 500 Index. The ending values are $10,453 and
$11,297, respectively.
L. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Trust Shares of Growth Equity
Fund are represented by a broken line. Standard & Poor's
500 Index is represented by a solid line. The line graph is
a visual representation of a comparison of change in value
of a hypothetical investment of $10,000 in Trust Shares of
Growth Equity Fund and Standard & Poor's 500 Index for the
fiscal year ended October 31, 1994 and since the start of
performance on December 14, 1992. The "y" axis reflects the
cost of investment. The "x" axis reflects computation
periods in yearly increments from December 14, 1992 (start
of performance) to October 31, 1994. The right margin of
the chart reflects the ending value of the hypothetical
investment in the Trust Shares of Growth Equity Fund as
compared to the Standard & Poor's 500 Index. The ending
values are $11,548 and $10,946, respectively.
M. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Investment Shares of Small
Capitalization Equity Fund are represented by a broken line.
Standard & Poor's 500 Index is represented by a solid line.
The line graph is a visual representation of a comparison of
change in value of a hypothetical investment of $10,000 in
Investment Shares of Small Capitalization Equity Fund and
Standard & Poor's 500 Index for the fiscal year ended
October 31, 1994 and since the start of performance on
February 12, 1993. The "y" axis reflects the cost of
investment. The "x" axis reflects computation periods in
yearly increments from February 12, 1993 (start of
performance) to October 31, 1994. The right margin of the
chart reflects the ending value of the hypothetical
investment in the Investment Shares of Small Capitalization
Equity Fund as compared to the Standard & Poor's 500 Index.
The ending values are $10,398 and $11,297, respectively.
N. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Trust Shares of Small
Capitalization Equity Fund are represented by a broken line.
Standard & Poor's 500 Index is represented by a solid line.
The line graph is a visual representation of a comparison of
change in value of a hypothetical investment of $10,000 in
Trust Shares of Small Capitalization Equity Fund and
Standard & Poor's 500 Index for the fiscal year ended
October 31, 1994 and since the start of performance on
December 14, 1992. The "y" axis reflects the cost of
investment. The "x" axis reflects computation periods in
yearly increments from December 14, 1992 (start of
performance) to October 31, 1994. The right margin of the
chart reflects the ending value of the hypothetical
investment in the Trust Shares of Small Capitalization
Equity Fund as compared to the Standard & Poor's 500 Index.
The ending values are $11,421 and $11,548, respectively.
O. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Investment Shares of
Quantitative Equity Fund are represented by a broken line.
Standard & Poor's 500 Index is represented by a solid line.
The line graph is a visual representation of a comparison of
change in value of a hypothetical investment of $10,000 in
Investment Shares of Quantitative Equity Fund and Standard &
Poor's 500 Index from the August 4, 1994 (start of
performance) to October 31, 1994. The "y" axis reflects the
cost of investment. The "x" axis reflects computation
periods in yearly increments from August 4, 1994 (start of
performance) to October 31, 1994. The right margin of the
chart reflects the ending value of the hypothetical
investment in the Investment Shares of Quantitative Equity
Fund as compared to the Standard & Poor's 500 Index. The
ending values are $9,681 and $10,382, respectively.
P. The graphic representation here displayed consists of a
line graph. The corresponding components of the line graph
are listed underneath. The Trust Shares of Quantitative
Equity Fund are represented by a broken line. Standard &
Poor's 500 Index is represented by a solid line. The line
graph is a visual representation of a comparison of change
in value of a hypothetical investment of $10,000 in Trust
Shares of Quantitative Equity Fund and Standard & Poor's 500
Index from the August 4, 1994 (start of performance) to
October 31, 1994. The "y" axis reflects the cost of
investment. The "x" axis reflects computation periods in
yearly increments from August 4, 1994 (start of performance)
to October 31, 1994. The right margin of the chart reflects
the ending value of the hypothetical investment in the Trust
Shares of Quantitative Equity Fund as compared to the
Standard & Poor's 500 Index. The ending values are $10,094
and $10,382, respectively.
</TABLE>
