Shawmut
Combined Annual Report
Trust Shares
---------------------------------
Annual Report
October 31, 1993
---------------------------------
Shawmut Connecticut Municipal Money Market Fund
Shawmut Massachusetts Municipal Money Market Fund
Shawmut Fixed Income Fund
Shawmut Growth and Income Equity Fund
Shawmut Growth Equity Fund
Shawmut Intermediate Government Income Fund
Shawmut Prime Money Market Fund
Shawmut Small Capitalization Equity Fund
Shawmut Limited Term Income Fund
nvestmenttAdviser
-------------THE SHARES OFFERED BY THIS PROSPECTUS ARE NOT DEPOSITS OR
OBLIGATIONS OF SHAWMUT BANK, ARE NOT ENDORSED OR GUARANTEED BY SHAWMUT
BANK, AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
NOR ARE THEY INSURED OR GUARANTEED BY THE FEDERAL RESERVE BOARD OR TUAL
FUNDS INVOLVE INVESTMENT RISKS, INCLUDING FLUCTUATIONS IN VALUE AND
EARNINGS, AND THE POSSIBLE LOSS OF PRINCIPAL.
(LOGO)Shawmut
Shawmut Bank, N.A.
Investment Adviser
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor :
I am pleased to present you with the Annual Report of The Shawmut Funds for the
period ending October 31, 1993. This Report contains complete financial
information--including the Portfolio of Investments--for each Fund.
The Shawmut Funds currently offer eleven investment choices that span the key
financial markets. Total assets in the Funds have increased substantially during
the period--a strong show of shareholder confidence.
Thank you for joining so many other investors who have chosen The Shawmut Funds
to pursue their financial goals. We'll continue to inform you about your
investment on a regular basis. As always, we welcome your questions, comments,
or suggestions.
Sincerely,
Edward C. Gonzales
President
December 8, 1993
SHAWMUT CONNECTICUT MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
- ---------- ---------------------------------------------------------------------------- ----------
<C> <C> <S> <C>
U.S. TREASURY BILLS--96.3%*
- ------------------------------------------------------------------------------------------
$6,343,000 11/4/93 $6,341,519
----------------------------------------------------------------------- ----------
MUTUAL FUND SHARES--3.8%
- ------------------------------------------------------------------------------------------
248,290 Dreyfus Connecticut Municipal Money Market Fund 248,290
----------------------------------------------------------------------- ----------
TOTAL INVESTMENTS, AT VALUE $6,589,809+
----------------------------------------------------------------------- ----------
</TABLE>
+ Also represents cost for federal tax purpose.
* Temporary taxable investments as allowed by the prospectus. (See "Temporary
Investments" in the prospectus.)
Note: The categories of investments are shown as a percentage of net assets
($6,582,063) at
October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
- ---------- ---------------------------------------------------------------------------- ----------
<C> <C> <S> <C>
U.S. TREASURY BILLS--97.4%*
- ------------------------------------------------------------------------------------------
$1,205,000 11/4/93 $1,204,722
----------------------------------------------------------------------- ----------
MUTUAL FUND SHARES--2.8%
- ------------------------------------------------------------------------------------------
35,100 Dreyfus Massachusetts Municipal Money Market Fund 35,100
----------------------------------------------------------------------- ----------
TOTAL INVESTMENTS, AT VALUE $1,239,822+
----------------------------------------------------------------------- ----------
</TABLE>
+ Also represents cost for federal tax purposes.
* Temporary taxable investments as allowed by the prospectus. (See "Temporary
Investments" in the prospectus.)
Note: The categories of investments are shown as a percentage of net assets
($1,236,883) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C>
LONG-TERM U.S. TREASURY OBLIGATIONS--35.9%
- ----------------------------------------------------------------------------------------
U.S. TREASURY NOTES--30.6%
---------------------------------------------------------------------
$3,500,000 5.50%, 7/31/97 $ 3,614,835
---------------------------------------------------------------------
1,050,000 6.00%, 12/31/97 1,102,500
---------------------------------------------------------------------
12,800,000 7.50%, 2/29/96--5/15/2002 14,618,571
---------------------------------------------------------------------
5,600,000 7.75%, 2/15/2001 6,443,472
---------------------------------------------------------------------
4,000,000 7.875%, 11/15/99--8/15/2001 4,634,690
---------------------------------------------------------------------
800,000 * 5.75%, 8/15/2003 819,376
--------------------------------------------------------------------- ------------
Total 31,233,444
--------------------------------------------------------------------- ------------
U.S. TREASURY BONDS--5.2%
---------------------------------------------------------------------
2,000,000 8.125%, 8/15/2019 2,471,240
---------------------------------------------------------------------
2,000,000 11.625%, 11/15/2002 2,879,680
--------------------------------------------------------------------- ------------
Total 5,350,920
--------------------------------------------------------------------- ------------
TOTAL LONG-TERM U.S. TREASURY OBLIGATIONS
(IDENTIFIED COST $34,291,605) 36,584,364
--------------------------------------------------------------------- ------------
LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--25.5%
- ----------------------------------------------------------------------------------------
AGENCY FOR INTERNATIONAL DEVELOPMENT OF INDONESIA--2.3%
---------------------------------------------------------------------
2,000,000 7.80%, 10/15/2022 2,315,000
--------------------------------------------------------------------- ------------
FEDERAL FARM CREDIT BANK--0.4%
---------------------------------------------------------------------
400,000 8.40%, 11/14/94 419,224
--------------------------------------------------------------------- ------------
FEDERAL HOME LOAN BANK--0.7%
---------------------------------------------------------------------
281,192 7.00%, 6/1/2004 286,726
---------------------------------------------------------------------
245,967 7.50%, 8/1/2008 252,731
---------------------------------------------------------------------
120,509 8.75%, 8/1/2001 125,592
--------------------------------------------------------------------- ------------
Total 665,049
--------------------------------------------------------------------- ------------
FEDERAL HOME LOAN MORTGAGE CORP.--0.7%
---------------------------------------------------------------------
700,000 8.90%, 5/15/2019 747,467
--------------------------------------------------------------------- ------------
FEDERAL HOME LOAN MORTGAGE CORP.--REMIC--3.0%
---------------------------------------------------------------------
700,000 7.00%, (Series 1156), 1/15/2004 722,665
---------------------------------------------------------------------
1,000,000 7.00%, (Series 1204), 11/15/2005 1,053,120
---------------------------------------------------------------------
712,042 7.95%, (Series 1014), 1/15/2015 719,383
---------------------------------------------------------------------
500,000 9.00%, (Series 28), 2/15/2018 527,030
--------------------------------------------------------------------- ------------
Total 3,022,198
--------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT FIXED INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C>
LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--CONTINUED
- ----------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--REMIC--3.6%
---------------------------------------------------------------------
$ 20,494 8.00%, (Series G8), 7/25/2010 $ 20,488
---------------------------------------------------------------------
54,122 8.90%, Series 1989-57), 7/25/2018 54,054
---------------------------------------------------------------------
2,600,000 8.95%, (Series 1990-117), 7/25/2017 2,728,362
---------------------------------------------------------------------
800,000 9.50%, (Series 1990-63), 6/25/2020 890,744
--------------------------------------------------------------------- ------------
Total 3,693,648
--------------------------------------------------------------------- ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--2.3%
---------------------------------------------------------------------
2,147,687 9.00%-10.50%, 9/15/2004-6/15/2019 2,364,441
--------------------------------------------------------------------- ------------
GUARANTEED EXPORT TRUST--1.9%
---------------------------------------------------------------------
2,000,000 5.23%, 5/15/2005 1,980,000
--------------------------------------------------------------------- ------------
GUARANTEED TRADE TRUST--1.8%
---------------------------------------------------------------------
1,800,000 4.86%, (Series 93-A), 4/1/98 1,814,940
--------------------------------------------------------------------- ------------
SMALL BUSINESS ADMINISTRATION--1.8%
---------------------------------------------------------------------
1,657,537 7.60%, (Series 92-G), 7/1/2012 1,819,146
--------------------------------------------------------------------- ------------
TENNESSEE VALLEY AUTHORITY--1.7%
---------------------------------------------------------------------
1,500,000 8.375%, (Series 89-D), 10/1/99 1,743,750
--------------------------------------------------------------------- ------------
U.S. GOVERNMENT, DEPARTMENT OF NAVY--2.2%
---------------------------------------------------------------------
2,000,000 8.625%, 12/15/2013 2,265,000
--------------------------------------------------------------------- ------------
U.S. GOVERNMENT HOUSING--1.3%
---------------------------------------------------------------------
1,200,000 8.50%, 7/15/2013 1,368,000
--------------------------------------------------------------------- ------------
WHC IRS TRUST--1.8%
---------------------------------------------------------------------
1,700,000 6.98%, 5/15/2015 1,819,000
--------------------------------------------------------------------- ------------
TOTAL LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS
(IDENTIFIED COST $25,463,350) 26,036,863
--------------------------------------------------------------------- ------------
CORPORATE BONDS--31.8%
- ----------------------------------------------------------------------------------------
BANKING--5.8%
---------------------------------------------------------------------
400,000 Bankers Trust New York Corp., 9.50%, 6/14/2000 479,092
---------------------------------------------------------------------
500,000 First Chicago Corp., 8.85%, Medium Term Note, 5/30/95 533,950
---------------------------------------------------------------------
1,000,000 First USA Bank, 5.05%, 10/24/95 1,002,050
---------------------------------------------------------------------
1,000,000 Liberty National Bank & Trust Co., 6.75%, 6/1/2003 1,031,170
---------------------------------------------------------------------
1,000,000 Manufacturers & Traders Trust, 8.125%, 12/1/2002 1,094,910
---------------------------------------------------------------------
1,000,000 Republic New York Corp., 5.875%, 10/15/2008 975,000
---------------------------------------------------------------------
710,000 Security Pacific Corp., 9.625%, Medium Term Note, 3/13/95 760,765
--------------------------------------------------------------------- ------------
Total 5,876,937
--------------------------------------------------------------------- ------------
FINANCE--6.3%
---------------------------------------------------------------------
$ 300,000 National Rural Utilities Co-op, 8.80%, 12/22/94 $ 315,297
---------------------------------------------------------------------
</TABLE>
SHAWMUT FIXED INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- ----------------------------------------------------------------------------------------
250,000 Pitney Bowes Credit Corp., 8.55%, 9/15/2009 308,455
---------------------------------------------------------------------
2,000,000 AIG Matched Funding Corp., 5.314%, 9/25/98 1,990,000
---------------------------------------------------------------------
1,600,000 Allstate Corp., 7.5%, 6/15/2013 1,696,608
---------------------------------------------------------------------
1,000,000 Comdisco Inc., 5.375%, Medium Term Notes, 7/15/95 1,005,300
---------------------------------------------------------------------
1,000,000 Liberty Mutual Capital Corp., 7.08%, 6/2/2003 1,082,000
--------------------------------------------------------------------- ------------
Total 6,397,660
--------------------------------------------------------------------- ------------
FINANCE--ASSET BACKED--0.5%
---------------------------------------------------------------------
548,696 Rochester Community Savings Bank, 5.70%, (Series 1992-A), 12/15/97 557,613
--------------------------------------------------------------------- ------------
FINANCE--AUTOMOTIVE--5.0%
---------------------------------------------------------------------
750,000 Ford Motor Credit Co., 8.00%, 12/1/96 813,622
---------------------------------------------------------------------
3,900,000 General Motors Acceptance Corp., 4.80%-9.625%, 9/30/94-12/15/2001 4,230,527
--------------------------------------------------------------------- ------------
Total 5,044,149
--------------------------------------------------------------------- ------------
FINANCE--SERVICES--3.0%
---------------------------------------------------------------------
2,000,000 Dean Witter, Discover & Co., 6.25%, 3/15/2000 2,049,900
---------------------------------------------------------------------
1,000,000 Smith Barney Holdings, Inc., 5.375%, 6/1/1996 1,011,563
--------------------------------------------------------------------- ------------
Total 3,061,463
--------------------------------------------------------------------- ------------
FOREIGN--2.1%
---------------------------------------------------------------------
500,000 Export-Import Bank of Japan, 10.125%, Guaranteed Note, 10/28/97 590,300
---------------------------------------------------------------------
1,000,000 * Industrias Penoles, S.A. De C.V., 7.74%, 12/31/99 998,750
---------------------------------------------------------------------
500,000 KFW International Finance, Inc., 9.375%, 7/15/98 587,555
--------------------------------------------------------------------- ------------
Total 2,176,605
--------------------------------------------------------------------- ------------
INDUSTRIAL--3.2%
---------------------------------------------------------------------
500,000 Emerson Electric Co., 7.875%, 6/5/98 547,500
---------------------------------------------------------------------
1,000,000 International Business Machines, 6.375%, 6/15/2000 1,018,830
---------------------------------------------------------------------
600,000 Tenneco Corp., 10.75%-11.00%, 6/15/95-11/15/95 652,500
---------------------------------------------------------------------
1,000,000 Weyerhaeuser Co., 7.25%, 7/1/2013 1,055,960
--------------------------------------------------------------------- ------------
Total 3,274,790
--------------------------------------------------------------------- ------------
LEISURE--PHOTO EQUIPMENT--0.7%
---------------------------------------------------------------------
700,000 Eastman Kodak Co., 9.125%, 3/1/98 741,734
--------------------------------------------------------------------- ------------
PHARMACEUTICAL--1.0%
---------------------------------------------------------------------
1,000,000 Syntex USA, Inc., 6.00%, 8/15/2000 1,016,500
--------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT FIXED INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR
SHARES VALUE
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- ----------------------------------------------------------------------------------------
RETAIL STORE--1.0%
---------------------------------------------------------------------
$1,000,000 Sears Roebuck & Co., 9.15%, 12/19/94 $ 1,051,210
--------------------------------------------------------------------- ------------
TELECOMMUNICATIONS--1.1%
---------------------------------------------------------------------
1,000,000 GTE Corp., 8.85%, 3/1/98 1,126,390
--------------------------------------------------------------------- ------------
UTILITIES--2.0%
---------------------------------------------------------------------
1,000,000 Commonwealth Edison Co., 6.00%, 3/15/98 1,014,450
---------------------------------------------------------------------
1,000,000 Panhandle Eastern Pipeline, 9.875%, 10/15/96 1,066,480
--------------------------------------------------------------------- ------------
Total 2,080,930
--------------------------------------------------------------------- ------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $31,673,215) 32,405,981
--------------------------------------------------------------------- ------------
MUTUAL FUND SHARES--5.5%
- ----------------------------------------------------------------------------------------
1,576,087 Dreyfus Cash Management 1,576,087
---------------------------------------------------------------------
4,065,546 Fidelity Institutional Cash Money Market Fund 4,065,546
--------------------------------------------------------------------- ------------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 5,641,633
--------------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST $97,069,803) $100,668,841+
--------------------------------------------------------------------- ------------
</TABLE>
+ The cost of investments for federal tax purposes amounts to $97,069,803. The
net unrealized appreciation of investments on a federal tax cost basis amounts
to $3,599,038, which is comprised of $4,101,979 appreciation and $502,941
depreciation at October 31, 1993.
* Delayed delivery security (Note 2E).
Note: The categories of investments are shown as a percentage of net assets
($102,034,568) at October 31, 1993.
The following abbreviation is used in this portfolio:
REMIC -- Real Estate Mortgage Investment Conduit
(See Notes which are an integral part of the Financial Statements)
SHAWMUT GROWTH AND INCOME EQUITY FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--88.6%
- --------------------------------------------------------------------------------------
BASIC MATERIALS--7.2%
-------------------------------------------------------------------
21,000 Aluminum Co. of America $ 1,428,000
-------------------------------------------------------------------
32,000 Carpenter Technology Corp. 1,752,000
-------------------------------------------------------------------
72,000 Dexter Corp. 1,701,000
-------------------------------------------------------------------
70,000 DuPont (E.I.) de Nemours & Co. 3,342,500
-------------------------------------------------------------------
56,000 Lubrizol Corp. 1,946,000
-------------------------------------------------------------------
39,000 Temple--Inland, Inc. 1,657,500
------------------------------------------------------------------- ------------
Total 11,827,000
------------------------------------------------------------------- ------------
CAPITAL GOODS/CONSTRUCTION--7.6%
-------------------------------------------------------------------
48,000 Boeing Co. 1,800,000
-------------------------------------------------------------------
24,000 General Electric Co. 2,328,000
-------------------------------------------------------------------
48,000 Hubbell, Inc. 2,592,000
-------------------------------------------------------------------
33,000 * Thermo Electron Corp. 1,344,750
-------------------------------------------------------------------
30,900 Thiokol Corp. 814,988
-------------------------------------------------------------------
28,000 United Technologies Corp. 1,736,000
-------------------------------------------------------------------
72,000 WMX Technologies, Inc. 1,773,000
------------------------------------------------------------------- ------------
Total 12,388,738
------------------------------------------------------------------- ------------
CONSUMER CYCLICAL--14.6%
-------------------------------------------------------------------
50,000 Angelica Corp. 1,243,750
-------------------------------------------------------------------
90,000 Arvin Industries, Inc. 2,531,250
-------------------------------------------------------------------
44,000 Dayton Hudson Corp. 3,058,000
-------------------------------------------------------------------
42,000 Disney (Walt) Co. 1,795,500
-------------------------------------------------------------------
55,000 Donnelley (R.R.) & Sons Co. 1,601,875
-------------------------------------------------------------------
27,000 Eastman Kodak Co. 1,701,000
-------------------------------------------------------------------
102,000 * Lechters, Inc. 1,173,000
-------------------------------------------------------------------
51,000 Melville Corp. 2,142,000
-------------------------------------------------------------------
86,000 Morrison Restaurants, Inc. 3,085,250
-------------------------------------------------------------------
72,000 Pep Boys--Manny, Moe & Jack 1,782,000
-------------------------------------------------------------------
135,000 Rite Aid Corp. 2,193,750
-------------------------------------------------------------------
40,000 V.F. Corp. 1,585,000
------------------------------------------------------------------- ------------
Total 23,892,375
------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT GROWTH AND INCOME EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- --------------------------------------------------------------------------------------
CONSUMER STAPLES--18.4%
-------------------------------------------------------------------
108,000 Alberto Culver Co. $ 2,038,500
-------------------------------------------------------------------
40,000 American Cyanamid Company 2,180,000
-------------------------------------------------------------------
28,000 American Home Products Corp. 1,750,000
-------------------------------------------------------------------
56,000 Anheuser-Busch Companies, Inc. 2,667,000
-------------------------------------------------------------------
62,000 Baxter International, Inc. 1,472,500
-------------------------------------------------------------------
44,000 Bristol-Myers Squibb Co. 2,585,000
-------------------------------------------------------------------
77,400 ConAgra, Inc. 2,089,800
-------------------------------------------------------------------
59,000 Johnson & Johnson 2,485,375
-------------------------------------------------------------------
55,000 Merck and Co., Inc. 1,766,875
-------------------------------------------------------------------
48,000 PepsiCo., Inc. 1,896,000
-------------------------------------------------------------------
38,000 Pfizer, Inc. 2,365,500
-------------------------------------------------------------------
44,000 Phillip Morris Cos., Inc. 2,365,000
-------------------------------------------------------------------
86,000 Super Valu Stores, Inc. 2,902,500
-------------------------------------------------------------------
34,000 Tambrands, Inc. 1,440,750
------------------------------------------------------------------- ------------
Total 30,004,800
------------------------------------------------------------------- ------------
ENERGY--9.2%
-------------------------------------------------------------------
32,000 Amoco Corp. 1,788,000
-------------------------------------------------------------------
22,000 Atlantic Richfield Co. 2,425,500
-------------------------------------------------------------------
30,000 Mobil Corp. 2,445,000
-------------------------------------------------------------------
28,000 Royal Dutch Petroleum Corp. 2,961,000
-------------------------------------------------------------------
32,000 Schlumberger, Ltd. 2,028,000
-------------------------------------------------------------------
50,000 Texaco, Inc. 3,406,250
------------------------------------------------------------------- ------------
Total 15,053,750
------------------------------------------------------------------- ------------
FINANCIAL--8.5%
-------------------------------------------------------------------
29,000 Bankers Trust New York Corp. 2,298,250
-------------------------------------------------------------------
44,000 Capital Holdings Corp. 1,820,500
-------------------------------------------------------------------
25,000 Chubb Corp. 2,053,125
-------------------------------------------------------------------
100,000 Comerica, Inc. 2,637,500
-------------------------------------------------------------------
58,300 NBB Bancorp, Inc. 2,310,138
-------------------------------------------------------------------
104,000 National City Corp. 2,704,000
------------------------------------------------------------------- ------------
Total 13,823,513
------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT GROWTH AND INCOME EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- --------------------------------------------------------------------------------------
TECHNOLOGY--8.4%
-------------------------------------------------------------------
36,000 AMP, Inc. $ 2,245,500
-------------------------------------------------------------------
39,000 Apple Computer, Inc. 1,199,250
-------------------------------------------------------------------
22,000 * Computer Sciences Corp. 2,021,250
-------------------------------------------------------------------
38,000 International Business Machines Corp. 1,748,000
-------------------------------------------------------------------
16,000 Motorola, Inc. 1,676,000
-------------------------------------------------------------------
70,000 * Novell, Inc. 1,505,000
-------------------------------------------------------------------
44,000 Pitney Bowes, Inc. 1,727,000
-------------------------------------------------------------------
23,000 (a) Reuters Holdings PLC 1,673,250
------------------------------------------------------------------- ------------
Total 13,795,250
------------------------------------------------------------------- ------------
TRANSPORTATION & SERVICES--2.8%
-------------------------------------------------------------------
50,000 (a) British Airways 2,781,250
-------------------------------------------------------------------
31,000 Burlington Northern, Inc. 1,743,750
------------------------------------------------------------------- ------------
Total 4,525,000
------------------------------------------------------------------- ------------
UTILITIES--7.0%
-------------------------------------------------------------------
46,000 BellSouth Corp. 2,886,500
-------------------------------------------------------------------
86,000 GTE Corp. 3,418,500
-------------------------------------------------------------------
54,000 Texas Utilities Co. 2,430,000
-------------------------------------------------------------------
53,000 U.S. West, Inc. 2,656,625
------------------------------------------------------------------- ------------
Total 11,391,625
------------------------------------------------------------------- ------------
MISCELLANEOUS--4.9%
-------------------------------------------------------------------
7,500 Minnesota Mining & Manufacturing Co. 778,125
-------------------------------------------------------------------
65,000 (a) Hanson PLC 1,308,125
-------------------------------------------------------------------
16,500 ITT Corp. 1,536,562
-------------------------------------------------------------------
70,000 Ogden Corp. 1,680,000
-------------------------------------------------------------------
61,000 PHH Corp. 2,783,125
------------------------------------------------------------------- ------------
Total 8,085,937
------------------------------------------------------------------- ------------
TOTAL COMMON STOCKS (IDENTIFIED COST, $140,462,480) 144,787,988
------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT GROWTH AND INCOME EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- ------------
<C> <C> <S> <C>
CONVERTIBLE PREFERRED STOCK--2.6%
- --------------------------------------------------------------------------------------
25,600 ConAgra, Inc., Class E. Cum. Cv. Pfd. $ 825,600
-------------------------------------------------------------------
32,000 Ford Motor Co., Series A, Cum. Cv. Pfd. 3,352,000
------------------------------------------------------------------- ------------
TOTAL CONVERTIBLE-PREFERRED STOCK (IDENTIFIED COST, $3,741,819) 4,177,600
------------------------------------------------------------------- ------------
MUTUAL FUND SHARES--8.9%
- --------------------------------------------------------------------------------------
7,177,525 Dreyfus Cash Management 7,177,525
-------------------------------------------------------------------
7,426,174 Fidelity Institutional Cash Money Market Fund 7,426,174
------------------------------------------------------------------- ------------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 14,603,699
------------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST, $158,807,998) $163,569,287+
------------------------------------------------------------------- ------------
* Non-income producing
(a) American Depository Receipt
</TABLE>
+ The cost of investments for federal tax purposes amounts to $158,882,964. The
net unrealized appreciation of investments on a federal tax cost basis amounts
to $4,686,323, which is comprised of $13,105,364 appreciation and $8,419,041
depreciation at October 31, 1993.
Note: The categories of investments are shown as a percentage of net assets
($163,369,610) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT GROWTH EQUITY FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--96.7%
- ---------------------------------------------------------------------------------------
BASIC MATERIALS--4.0%
----------------------------------------------------------------------
13,900 Avery Dennison Corp. $ 394,413
----------------------------------------------------------------------
4,900 du Pont (E.I.) deNemours & Co. 233,975
----------------------------------------------------------------------
3,100 Georgia Pacific Corp. 199,175
----------------------------------------------------------------------
2,600 PPG Industries, Inc. 181,350
---------------------------------------------------------------------- -----------
Total 1,008,913
---------------------------------------------------------------------- -----------
CAPITAL GOODS/CONSTRUCTION--4.6%
----------------------------------------------------------------------
3,000 Boeing Co. 112,500
----------------------------------------------------------------------
4,700 Illinois Tool Works, Inc. 175,662
----------------------------------------------------------------------
11,800 General Signal Corp. 415,950
----------------------------------------------------------------------
14,700 Masco Corp. 464,888
---------------------------------------------------------------------- -----------
Total 1,169,000
---------------------------------------------------------------------- -----------
CONSUMER CYCLICAL--28.5%
----------------------------------------------------------------------
13,500 Arvin Industries, Inc. 379,687
----------------------------------------------------------------------
15,000 Blockbuster Entertainment Corp. 425,625
----------------------------------------------------------------------
3,300 Brinker International, Inc. 137,775
----------------------------------------------------------------------
7,400 Carnival Cruise Lines, Inc. 351,500
----------------------------------------------------------------------
8,700 Circuit City Stores, Inc. 243,600
----------------------------------------------------------------------
14,800 * Circus Circus Enterprises, Inc. 530,950
----------------------------------------------------------------------
37,500 * Consolidated Stores Corp. 759,375
----------------------------------------------------------------------
11,200 Cracker Barrel Old Country Store 296,800
----------------------------------------------------------------------
9,700 * CUC International, Inc. 373,450
----------------------------------------------------------------------
5,300 Disney (Walt) Co. 226,575
----------------------------------------------------------------------
6,400 Dun & Bradstreet Corp. 428,800
----------------------------------------------------------------------
13,900 Echlin, Inc. 451,750
----------------------------------------------------------------------
10,200 International Game Techology 360,825
----------------------------------------------------------------------
8,900 Limited, Inc. 190,238
----------------------------------------------------------------------
23,000 Mattel, Inc. 667,000
----------------------------------------------------------------------
11,000 * Office Depot, Inc. 364,375
----------------------------------------------------------------------
5,900 Pep Boys Manny, Moe, & Jack 146,025
----------------------------------------------------------------------
9,500 Reebok International Ltd. 289,750
----------------------------------------------------------------------
10,000 * Tele Communications, Inc. 305,000
----------------------------------------------------------------------
</TABLE>
SHAWMUT GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
----------------------------------------------------------------------
3,000 Time Warner, Inc. $ 134,250
----------------------------------------------------------------------
4,800 * Toys "R" Us, Inc. 192,600
---------------------------------------------------------------------- -----------
Total 7,255,950
---------------------------------------------------------------------- -----------
CONSUMER STAPLES--22.9%
----------------------------------------------------------------------
9,200 Albertson's, Inc. 240,350
----------------------------------------------------------------------
12,300 Amgen, Inc. 561,187
----------------------------------------------------------------------
7,000 Anheuser--Busch Companies, Inc. 333,375
----------------------------------------------------------------------
17,200 * Healthtrust, Inc. (The hospital) 421,400
----------------------------------------------------------------------
5,400 Johnson & Johnson 227,475
----------------------------------------------------------------------
11,000 Medco Containment Services, Inc. 412,500
----------------------------------------------------------------------
4,700 Medtronic, Inc. 348,388
----------------------------------------------------------------------
5,100 Merck and Co., Inc. 163,838
----------------------------------------------------------------------
15,000 * Novacare, Inc. 195,000
----------------------------------------------------------------------
14,400 PepsiCo, Inc. 568,800
----------------------------------------------------------------------
3,600 Pfizer 224,100
----------------------------------------------------------------------
3,800 Schering Plough Corp. 258,400
----------------------------------------------------------------------
13,900 * Science Med Life System, Inc. 674,150
----------------------------------------------------------------------
11,700 Supervalu, Inc. 394,875
----------------------------------------------------------------------
10,600 UST, Inc. 279,575
----------------------------------------------------------------------
7,600 United Healthcare Corp. 531,050
---------------------------------------------------------------------- -----------
Total 5,834,463
---------------------------------------------------------------------- -----------
ENERGY--5.9%
----------------------------------------------------------------------
1,900 Anadarko Petroleum 89,300
----------------------------------------------------------------------
8,300 Coastal Corp. 227,212
----------------------------------------------------------------------
11,600 Dresser Industries, Inc. 249,400
----------------------------------------------------------------------
10,900 Halliburton Co. 347,438
----------------------------------------------------------------------
8,600 * McDermott International, Inc. 244,025
----------------------------------------------------------------------
2,000 Pennzoil Co. 114,500
----------------------------------------------------------------------
6,600 Triton Energy Corp. 219,450
---------------------------------------------------------------------- -----------
Total 1,491,325
---------------------------------------------------------------------- -----------
FINANCIAL--9.4%
----------------------------------------------------------------------
2,700 AFLAC, Inc. 85,050
----------------------------------------------------------------------
5,600 Bank of New York, Inc. 298,200
----------------------------------------------------------------------
6,300 Federal National Mortgage Association 490,612
----------------------------------------------------------------------
7,800 First Financial Management Corp. 427,050
----------------------------------------------------------------------
</TABLE>
SHAWMUT GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
FINANCIAL--CONTINUED
----------------------------------------------------------------------
9,600 Fleet Financial Group, Inc. $ 301,200
----------------------------------------------------------------------
5,600 Norwest Corp. 144,200
----------------------------------------------------------------------
14,500 Student Loan Marketing Association 647,063
---------------------------------------------------------------------- -----------
Total 2,393,375
---------------------------------------------------------------------- -----------
TECHONOLOGY--13.2%
----------------------------------------------------------------------
2,300 American Telephone & Telegraph Co. 132,537
----------------------------------------------------------------------
5,000 AMP, Inc. 311,875
----------------------------------------------------------------------
8,100 * BMC Software, Inc. 389,813
----------------------------------------------------------------------
14,100 * Borland International 243,225
----------------------------------------------------------------------
3,100 * Computer Sciences Corp. 284,812
----------------------------------------------------------------------
10,000 Intel Corp. 632,500
----------------------------------------------------------------------
1,700 * McCaw Cellular Communications 90,525
----------------------------------------------------------------------
4,400 * Microsoft Corp. 352,550
----------------------------------------------------------------------
24,200 * Novell, Inc. 520,300
----------------------------------------------------------------------
2,900 Pitney Bowes, Inc. 113,825
----------------------------------------------------------------------
4,400 * Sun Microsystems, Inc. 112,200
----------------------------------------------------------------------
2,100 Vodafone Group Plc. 180,338
---------------------------------------------------------------------- -----------
Total 3,364,500
---------------------------------------------------------------------- -----------
TRANSPORT & SERVICES--2.5%
----------------------------------------------------------------------
17,000 Ryder Systems, Inc. 482,375
----------------------------------------------------------------------
1,100 * UAL (Allegis) Corp. 167,200
---------------------------------------------------------------------- -----------
Total 649,575
---------------------------------------------------------------------- -----------
UTILITIES--3.9%
----------------------------------------------------------------------
6,500 Century Telephone Enterprises, Inc. 178,750
----------------------------------------------------------------------
16,432 * Citizens Utilities Co. Development 289,614
----------------------------------------------------------------------
9,400 (a) Telefonos De Mexico SA 514,650
---------------------------------------------------------------------- -----------
Total 983,014
---------------------------------------------------------------------- -----------
MISCELLANEOUS--1.7%
----------------------------------------------------------------------
2,100 Allied Signal, Inc. 150,412
----------------------------------------------------------------------
5,500 Tenneco, Inc. 280,500
---------------------------------------------------------------------- -----------
Total 430,912
---------------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $23,768,884) 24,581,027
---------------------------------------------------------------------- -----------
</TABLE>
SHAWMUT GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------------------------------------------------------------------- -----------
<C> <C> <S> <C>
MUTUAL FUND SHARES--4.8%
- ---------------------------------------------------------------------------------------
550,042 Dreyfus Cash Management $ 550,042
----------------------------------------------------------------------
671,230 Fidelity Institutional Cash Money Market Fund 671,230
---------------------------------------------------------------------- -----------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 1,221,272
---------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $24,990,156) $25,802,299+
---------------------------------------------------------------------- -----------
</TABLE>
(a) American Depository Receipt
* Non-income producing.
+ The cost of investments for federal tax purposes amounts to $25,020,086. The
net unrealized appreciation of investments on a federal tax basis amounts to
$782,213 which is comprised of $2,462,200 appreciation and $1,679,987
depreciation at October 31, 1993.
Note: The categories of investments are shown as a percentage of net assets
($25,418,092) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------------ -----------
<C> <C> <S> <C>
LONG-TERM U.S. TREASURY OBLIGATIONS--29.2%
- -----------------------------------------------------------------------------------------
U.S. TREASURY NOTES--29.2%
------------------------------------------------------------------------
$3,070,000 4.25%, 8/31/94 $ 3,090,139
------------------------------------------------------------------------
3,000,000 4.625%, 8/15/95-2/15/96 3,034,680
------------------------------------------------------------------------
500,000 5.50%, 4/15/2000 512,970
------------------------------------------------------------------------
1,500,000 5.625%, 8/31/97 1,555,080
------------------------------------------------------------------------
1,500,000 5.75%, 10/31/97 1,560,240
------------------------------------------------------------------------
1,500,000 6.00%, 12/31/97 1,575,000
------------------------------------------------------------------------
1,000,000 6.875%, 8/15/94 1,026,090
------------------------------------------------------------------------
1,000,000 7.25%, 11/15/96 1,081,560
------------------------------------------------------------------------
2,500,000 7.50%, 11/15/2001-5/15/2002 2,857,810
------------------------------------------------------------------------
3,300,000 7.875%, 7/31/96-1/15/98 3,672,425
------------------------------------------------------------------------
2,000,000 8.50%, 7/15/97 2,265,000
------------------------------------------------------------------------ -----------
TOTAL LONG-TERM U.S. TREASURY OBLIGATIONS (IDENTIFIED COST $21,607,471) 22,230,994
------------------------------------------------------------------------ -----------
LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--41.5%
- -----------------------------------------------------------------------------------------
FEDERAL AGRICULTURE MORTGAGE CORP., MEDIUM TERM NOTE--1.9%
------------------------------------------------------------------------
1,300,000 7.74%, 11/25/2003 1,438,931
------------------------------------------------------------------------ -----------
FEDERAL HOME LOAN BANK--5.6%
------------------------------------------------------------------------
4,135,253 6.50%-7.50%, 8/1/97-5/1/2019 4,258,057
------------------------------------------------------------------------ -----------
FEDERAL HOME LOAN MORTGAGE CORP.--11.4%
------------------------------------------------------------------------
8,500,000 4.60%-7.00%, 7/13/98-11/15/2005 8,694,365
------------------------------------------------------------------------ -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--1.1%
------------------------------------------------------------------------
791,055 8.50%-9.00%, 12/1/97-9/1/98 825,153
------------------------------------------------------------------------ -----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--3.4%
------------------------------------------------------------------------
2,400,797 9.00%, 7/15/2001-10/15/2018 2,574,025
------------------------------------------------------------------------ -----------
GUARANTEED TRADE TRUST--3.0%
------------------------------------------------------------------------
2,250,000 4.86%, (Series 1993-A)/(Guaranteed Trade Certificates), 4/1/98 2,268,675
------------------------------------------------------------------------ -----------
INTERNATIONAL AMERICAN DEVELOPMENT BANK--1.6%
------------------------------------------------------------------------
1,050,000 8.50%, 5/1/2001 1,235,714
------------------------------------------------------------------------ -----------
NORTH STAR ALASKA HOUSING CORP.--1.2%
------------------------------------------------------------------------
900,000 5.99%, 5/15/98 918,000
------------------------------------------------------------------------ -----------
RURAL ELECTRIC CO-OP.--3.8%
------------------------------------------------------------------------
2,400,000 10.11%, Grantor Trust Certificates, 12/15/2017 2,880,960
------------------------------------------------------------------------ -----------
</TABLE>
SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------------ -----------
<C> <C> <S> <C>
LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--CONTINUED
- -----------------------------------------------------------------------------------------
SHIPCO INC.--2.5%
------------------------------------------------------------------------
$1,885,000 8.10%, (Series C)/(U.S. Government Guaranteed Ship Financing), 5/12/2002 $ 1,920,985
------------------------------------------------------------------------ -----------
TENNESSEE VALLEY POWER AUTHORITY--3.1%
------------------------------------------------------------------------
2,000,000 8.375%, (Series D 1989), 10/1/99 2,325,000
------------------------------------------------------------------------ -----------
U.S. GOVERNMENT DEPT. OF NAVY--3.0%
------------------------------------------------------------------------
2,000,000 8.625%, 12/15/2013 2,265,000
------------------------------------------------------------------------ -----------
TOTAL LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS
(IDENTIFIED COST $29,949,055) 31,604,865
------------------------------------------------------------------------ -----------
CERTIFICATE OF DEPOSIT--1.3%
- -----------------------------------------------------------------------------------------
1,000,000 First USA Bank of Wilmington, 5.05%, 10/24/95 (identified cost
$1,003,540) 1,002,050
------------------------------------------------------------------------ -----------
CORPORATE BONDS--24.5%
- -----------------------------------------------------------------------------------------
BANKING--5.2%
------------------------------------------------------------------------
1,000,000 Chemical Banking Corp., 7.375%, 6/15/97 1,074,460
------------------------------------------------------------------------
775,000 Liberty National Bank & Trust Co., 6.75%, 6/1/2003 799,157
------------------------------------------------------------------------
500,000 National City Corp., Notes, 8.375%, 3/15/96 540,190
------------------------------------------------------------------------
1,000,000 Republic N.Y. Corp., 5.875%, 10/15/2008 975,000
------------------------------------------------------------------------
500,000 Security Pacific Corp. 8.49%, Medium Term Notes, 12/27/96 551,935
------------------------------------------------------------------------ -----------
Total 3,940,742
------------------------------------------------------------------------ -----------
FINANCE--ASSET BACKED--4.4%
------------------------------------------------------------------------
467,789 Chase Manhattan Corp., 6.90%, Grantor Trust Certificates, (Series
1991A), 9/15/97 474,072
------------------------------------------------------------------------
518,337 General Motors Acceptance Corp., 8.25%, Grantor Trust Certificate,
(Series 1990A), 11/15/95 525,785
------------------------------------------------------------------------
1,243,809 Premier Auto Trust, 5.90%, (Series 1992-3), 11/17/97 1,270,626
------------------------------------------------------------------------
1,000,000 SPNB Home Equity Loan, 8.85%, 5/15/98 1,070,620
------------------------------------------------------------------------ -----------
Total 3,341,103
------------------------------------------------------------------------ -----------
FINANCE--AUTOMOTIVE--2.8%
------------------------------------------------------------------------
2,000,000 General Motors Acceptance Corp., Medium Term Notes,
7.50%-8.90%, 2/7/95-5/19/97 2,125,100
------------------------------------------------------------------------ -----------
FINANCE--INSURANCE--2.7%
------------------------------------------------------------------------
1,000,000 AIG Matched Funding Corp., 5.314%, 9/25/98 995,000
------------------------------------------------------------------------
1,000,000 Liberty Mutual Capital Corp., 7.08%, 6/2/2003 1,082,000
------------------------------------------------------------------------ -----------
Total 2,077,000
------------------------------------------------------------------------ -----------
</TABLE>
SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
- ---------- ------------------------------------------------------------------------ -----------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- -----------------------------------------------------------------------------------------
FINANCE--RETAIL--2.6%
------------------------------------------------------------------------
$2,000,000 Household Finance Corp., 9.00%, 2/1/94 $ 2,024,540
------------------------------------------------------------------------ -----------
FOREIGN--0.7%
------------------------------------------------------------------------
500,000 * Industrias Penoles DE CV, 7.74%, 12/31/99 499,374
------------------------------------------------------------------------ -----------
INDUSTRIAL--2.8%
------------------------------------------------------------------------
2,000,000 Tenneco Corp., 10.75%, 6/15/95 2,150,000
------------------------------------------------------------------------ -----------
PHARMACEUTICAL--2.7%
------------------------------------------------------------------------
2,000,000 Syntex U.S.A, Inc., 5.90%, 5/26/98 2,050,040
------------------------------------------------------------------------ -----------
UTILITIES--0.7%
------------------------------------------------------------------------
500,000 Commonwealth Edison Co., 6.00%, 3/15/98 507,225
------------------------------------------------------------------------ -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST $19,710,458) 18,715,124
------------------------------------------------------------------------ -----------
MUTUAL FUND SHARES--2.1%
- -----------------------------------------------------------------------------------------
74,242 Dreyfus Cash Management 74,242
------------------------------------------------------------------------
1,514,483 Fidelity Institutional Cash Money Market Fund 1,514,483
------------------------------------------------------------------------ -----------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 1,588,725
------------------------------------------------------------------------ -----------
TOTAL INVESTMENTS (IDENTIFIED COST $73,859,249) $75,141,758+
------------------------------------------------------------------------ -----------
</TABLE>
* Delayed Delivery Security (Note 2E).
+ The cost of investments for federal tax purposes amounts to $73,859,249. The
net unrealized depreciation on a federal tax basis amounts to $1,282,509,
which is comprised of $1,454,051 appreciation and $171,542 depreciation at
October 31, 1993.
Note: The categories of investments are shown as a percentage of net assets
($76,211,211) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT PRIME MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C>
CERTIFICATES OF DEPOSIT--18.5%
- ----------------------------------------------------------------------------------------
$11,000,000 Fifth Third Bank, 3.10%, 12/30/93 $ 11,000,000
--------------------------------------------------------------------
10,000,000 Harris Trust & Savings Bank, 3.08%, 11/12/93 10,000,000
--------------------------------------------------------------------
10,000,000 Old Kent Bank & Trust Co., 3.18%, 2/10/94 10,000,000
--------------------------------------------------------------------
10,000,000 Southtrust Bank of Alabama, 3.10%, 11/17/93 10,000,000
--------------------------------------------------------------------
12,000,000 United States National Bank of Oregon, 3.05%, 11/29/93 12,000,000
-------------------------------------------------------------------- ------------
TOTAL CERTIFICATES OF DEPOSIT 53,000,000
-------------------------------------------------------------------- ------------
*COMMERCIAL PAPER--41.5%
- ----------------------------------------------------------------------------------------
FINANCE--AUTOMOTIVE--7.6%
--------------------------------------------------------------------
11,000,000 Ford Motor Credit Co., 3.08%-3.18%, 11/17/93-1/14/94 10,943,601
--------------------------------------------------------------------
11,000,000 Toyota Motor Credit Corp., 3.07%-3.08%, 11/22/93 10,980,277
-------------------------------------------------------------------- ------------
Total 21,923,878
-------------------------------------------------------------------- ------------
FINANCE--COMMERCIAL--7.7%
--------------------------------------------------------------------
11,000,000 Cargill Inc., 3.07%, 11/19/93 10,983,115
--------------------------------------------------------------------
11,000,000 Sanwa Business Credit Corp., 3.12%-3.21%, 11/18/93-1/28/94 10,977,420
-------------------------------------------------------------------- ------------
Total 21,960,535
-------------------------------------------------------------------- ------------
FINANCE--OIL--7.0%
--------------------------------------------------------------------
8,000,000 Chevron Oil Finance Co., 3.12%, 1/20/94 7,944,533
--------------------------------------------------------------------
12,000,000 Exxon Credit Corp., 3.03%, 11/15/93 11,985,860
-------------------------------------------------------------------- ------------
Total 19,930,393
-------------------------------------------------------------------- ------------
FINANCE--RETAIL--3.5%
--------------------------------------------------------------------
10,000,000 Commercial Credit Corp., 3.18%, 1/11/94 9,937,283
-------------------------------------------------------------------- ------------
FOOD & BEVERAGE--3.1%
--------------------------------------------------------------------
9,000,000 Phillip Morris Cos., Inc., 3.08%, 12/16/93 8,965,350
-------------------------------------------------------------------- ------------
FUNDING CORPORATION--5.8%
--------------------------------------------------------------------
11,765,000 B.A.T. Capital Corp., 3.08%-3.10%, 11/1/93-11/9/93 11,761,556
--------------------------------------------------------------------
5,000,000 Barclays U.S. Funding Corp., 3.18%, 1/18/94 4,965,550
-------------------------------------------------------------------- ------------
Total 16,727,106
-------------------------------------------------------------------- ------------
PUBLISHING AND PRINTING--3.0%
--------------------------------------------------------------------
8,500,000 Gannet Co., 3.07%-3.08%, 11/5/93-11/9/93 8,494,983
-------------------------------------------------------------------- ------------
TELECOMMUNICATIONS--3.8%
--------------------------------------------------------------------
11,000,000 American Telephone & Telegraph Co., 3.17%-3.18%, 1/13/94-3/30/94 10,887,154
-------------------------------------------------------------------- ------------
TOTAL COMMERCIAL PAPER 118,826,682
-------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C>
GOVERNMENT OBLIGATIONS--13.5%
- ----------------------------------------------------------------------------------------
$24,000,000 Federal Home Loan Bank Discount Notes, 2.543%-3.33%, 11/3/93-2/22/94 $ 23,915,410
--------------------------------------------------------------------
14,800,000 Federal National Mortgage Association Discount Note, 3.06%-3.11%,
11/16/19-12/15/93 14,769,090
-------------------------------------------------------------------- ------------
TOTAL GOVERNMENT OBLIGATIONS 38,684,500
-------------------------------------------------------------------- ------------
U.S. TREASURY OBLIGATIONS--10.7%
- ----------------------------------------------------------------------------------------
31,000,000 U.S. Treasury Bills, 11/12/93-7/28/94 30,674,282
-------------------------------------------------------------------- ------------
** VARIABLE RATE INSTRUMENTS--3.7%
- ----------------------------------------------------------------------------------------
10,607,000 General Electric Capital Corp., 2.97%, Master Note, 11/5/93 10,607,000
-------------------------------------------------------------------- ------------
*** REPURCHASE AGREEMENTS--12.3%
- ----------------------------------------------------------------------------------------
11,248,090 Carroll McEntee & McGinley, Inc., 2.90%, dated 10/29/93, due 11/1/93 11,248,090
--------------------------------------------------------------------
12,000,000 Goldman Sachs & Co., 2.90%, dated 10/29/93, due 11/1/93 12,000,000
--------------------------------------------------------------------
12,000,000 Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.80%, dated 10/29/93,
due 11/1/93 12,000,000
-------------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS (NOTE 2B) 35,248,090
-------------------------------------------------------------------- ------------
TOTAL INVESTMENTS, AT VALUE $287,040,554+
-------------------------------------------------------------------- ------------
+ Also represents cost for federal tax purposes.
* Each issue shows the rate of discount at the time of purchase for discount issues.
** Current rate and next demand date shown.
*** The repurchase agreements are fully collateralized by U.S. government and/or agency
obligations based on market prices at the date of the portfolio.
</TABLE>
Note: The categories of investments are shown as a percentage of net assets
($286,609,638) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--94.5%
- ---------------------------------------------------------------------------------------
BASIC MATERIALS--5.2%
--------------------------------------------------------------------
15,000 * Chemdesign Corp. $ 69,375
--------------------------------------------------------------------
16,800 Chemi-Trol Chemical Co. 214,200
--------------------------------------------------------------------
31,500 Chesapeake Corp. 693,000
--------------------------------------------------------------------
27,200 Dexter Corp. 642,600
--------------------------------------------------------------------
18,000 Fuller HB Co. 580,500
--------------------------------------------------------------------
28,000 Grow Group, Inc. 392,000
--------------------------------------------------------------------
21,512 Guardsman Products, Inc. 311,924
--------------------------------------------------------------------
7,200 LeaRonal, Inc. 106,200
--------------------------------------------------------------------
16,500 Petrolite Corp. 647,625
--------------------------------------------------------------------
43,900 Quaker Chemical 757,275
--------------------------------------------------------------------
12,000 Roanoke Electric Steel Corp. 159,000
--------------------------------------------------------------------
26,700 * Steel of West Virginia, Inc. 280,350
--------------------------------------------------------------------
20,000 * Sybron Chemicals Industries, Inc. 445,000
--------------------------------------------------------------------
28,500 Varlen Corp. 627,000
-------------------------------------------------------------------- ------------
Total 5,926,049
-------------------------------------------------------------------- ------------
CAPITAL GOODS/CONSTRUCTION--6.3%
--------------------------------------------------------------------
20,000 * Atchinson Casting Corp. 325,000
--------------------------------------------------------------------
12,400 Centex Corp. 550,250
--------------------------------------------------------------------
35,600 Collins Industries, Inc. 66,750
--------------------------------------------------------------------
46,725 * D.R. Horton, Inc. 712,556
--------------------------------------------------------------------
12,000 Duriron 270,000
--------------------------------------------------------------------
19,000 * Encore Wire Corp. 182,875
--------------------------------------------------------------------
35,000 * Foster L.B. Co. Class A 126,875
--------------------------------------------------------------------
27,300 Insituform Mid American, Inc. 375,375
--------------------------------------------------------------------
48,100 Instron Corp. 649,350
--------------------------------------------------------------------
20,000 * Jason, Inc. 235,000
--------------------------------------------------------------------
13,500 Pope & Talbot, Inc. 335,813
--------------------------------------------------------------------
37,000 * Redman Industries, Inc. 610,500
--------------------------------------------------------------------
23,500 Schult Homes Corp. 331,937
--------------------------------------------------------------------
26,900 * Southern Electronics Corp. 295,900
--------------------------------------------------------------------
39,100 Toro Co. 992,163
--------------------------------------------------------------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
CAPITAL GOODS/CONSTRUCTION--CONTINUED
--------------------------------------------------------------------
70,000 * Triangle Pacific Corp. $ 936,250
--------------------------------------------------------------------
40,000 * Willcox & Gibbs, Inc. 290,000
-------------------------------------------------------------------- ------------
Total 7,286,594
-------------------------------------------------------------------- ------------
CONSUMER CYCLICAL--18.4%
--------------------------------------------------------------------
10,972 * Agency Rent A Car, Inc. 122,063
--------------------------------------------------------------------
11,600 * American City Business Journals 288,550
--------------------------------------------------------------------
14,750 Bassett Furniture Industries, Inc. 446,188
--------------------------------------------------------------------
51,900 * Brauns Fashions Corp. 583,875
--------------------------------------------------------------------
30,000 * Calloways Nursery, Inc. 82,500
--------------------------------------------------------------------
72,300 Cash America International, Inc. 668,775
--------------------------------------------------------------------
29,137 * Clear Channel Communications 1,260,175
--------------------------------------------------------------------
70,100 * ClothesTime Inc. 560,800
--------------------------------------------------------------------
16,000 * Coherent, Inc. 232,000
--------------------------------------------------------------------
12,100 * Consolidated Stores Corp. 245,025
--------------------------------------------------------------------
10,200 * Designs, Inc. 153,000
--------------------------------------------------------------------
11,000 Dimark, Inc. 374,000
--------------------------------------------------------------------
14,000 * Donnkenny, Inc. 180,250
--------------------------------------------------------------------
45,800 * El Chico Restaurants, Inc. 709,900
--------------------------------------------------------------------
43,500 * Falcon Products, Inc. 456,750
--------------------------------------------------------------------
46,800 * Fieldcrest Cannon, Inc. 1,257,750
--------------------------------------------------------------------
20,000 Galey & Lord, Inc. 225,000
--------------------------------------------------------------------
24,000 Gibson Greetings, Inc. 486,000
--------------------------------------------------------------------
32,700 * Hi-Lo Automotive, Inc. 363,788
--------------------------------------------------------------------
17,000 Houghton Mifflin Co. 805,375
--------------------------------------------------------------------
20,000 * Jones Apparel Group, Inc. 625,000
--------------------------------------------------------------------
10,000 La Z Boy Chair Co. 320,000
--------------------------------------------------------------------
55,000 LADD Furniture, Inc. 536,250
--------------------------------------------------------------------
35,000 * Monaco Coach Corp. 411,250
--------------------------------------------------------------------
49,100 Morrison Restaurants, Inc. 1,761,463
--------------------------------------------------------------------
23,000 * Mothers Work, Inc. 270,250
--------------------------------------------------------------------
19,000 * Optical Data Systems, Inc. 206,625
--------------------------------------------------------------------
51,700 * Payless Cashways, Inc. 620,400
--------------------------------------------------------------------
22,000 PCA International, Inc. 464,750
--------------------------------------------------------------------
25,000 * R & B, Inc. 284,375
--------------------------------------------------------------------
72,400 Richfood Holdings, Inc. 1,140,300
--------------------------------------------------------------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
--------------------------------------------------------------------
59,300 * Rival Co. $ 985,862
--------------------------------------------------------------------
71,000 * Ryans Family Steak Houses 585,750
--------------------------------------------------------------------
27,550 * Sierra On-Line, Inc. 654,313
--------------------------------------------------------------------
28,300 * Solo Serve Corp. 180,412
--------------------------------------------------------------------
21,000 * Spaghetti Warehouse, Inc. 212,625
--------------------------------------------------------------------
36,000 Stant Corp. 612,000
--------------------------------------------------------------------
18,500 * Value City Department Stores, Inc. 305,250
--------------------------------------------------------------------
34,000 Wabash National Corp. 918,000
--------------------------------------------------------------------
18,000 * Winston Furniture, Inc. 166,500
--------------------------------------------------------------------
70,900 * Worldtex, Inc. 478,575
-------------------------------------------------------------------- ------------
Total 21,241,714
-------------------------------------------------------------------- ------------
CONSUMER STAPLES--9.4%
--------------------------------------------------------------------
4,000 Beckman Instruments, Inc. 110,000
--------------------------------------------------------------------
14,500 Bindley Western Industries, Inc. 174,000
--------------------------------------------------------------------
19,700 Biocraft Labs, Inc. 662,412
--------------------------------------------------------------------
15,000 * Chronimed, Inc. 243,750
--------------------------------------------------------------------
37,000 Delta & Pine Land Co. 596,625
--------------------------------------------------------------------
8,500 * DEP Corp. Class A 57,375
--------------------------------------------------------------------
8,500 * DEP Corp. Class B 51,000
--------------------------------------------------------------------
32,000 * Diasonics Ultrasound, Inc. 96,000
--------------------------------------------------------------------
32,000 * Focal Surgery, Inc. 32,000
--------------------------------------------------------------------
36,000 * Gish Biomedical, Inc. 211,500
--------------------------------------------------------------------
9,000 * Gull Labs, Inc. 35,437
--------------------------------------------------------------------
24,800 Hannaford Brothers Co. 579,700
--------------------------------------------------------------------
35,500 * Health Management Systems, Inc. 754,375
--------------------------------------------------------------------
40,000 Interstate Bakeries Corp. 570,000
--------------------------------------------------------------------
76,000 Kinetic Concepts, Inc. 294,500
--------------------------------------------------------------------
5,000 Life Technologies, Inc. 88,750
--------------------------------------------------------------------
41,900 * Lifecore Biomedical, Inc. 403,288
--------------------------------------------------------------------
23,000 * Lincare Holdings, Inc. 1,006,250
--------------------------------------------------------------------
31,000 * Megafoods Stores, Inc. 356,500
--------------------------------------------------------------------
53,875 * Minntech Corp. 518,547
--------------------------------------------------------------------
32,000 * OEC Medical Systems, Inc. 236,000
--------------------------------------------------------------------
18,750 * Owens & Minor, Inc. 403,125
--------------------------------------------------------------------
22,500 * Paragon Trade Brands, Inc. 599,063
--------------------------------------------------------------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
CONSUMER STAPLES--CONTINUED
--------------------------------------------------------------------
57,500 * Pharmaceutical Marketing Services, Inc. $ 819,375
--------------------------------------------------------------------
41,600 * ReadiCare, Inc. 106,600
--------------------------------------------------------------------
21,300 * Sci-Med Life Systems, Inc. 1,033,050
--------------------------------------------------------------------
22,900 * Somatix Therapy Corp. 177,475
--------------------------------------------------------------------
5,500 * Spacelabs Medical, Inc. 130,625
--------------------------------------------------------------------
104,300 * Syntro Corp. 378,087
--------------------------------------------------------------------
8,100 WLR Foods, Inc. 153,900
-------------------------------------------------------------------- ------------
Total 10,879,309
-------------------------------------------------------------------- ------------
ENERGY--6.9%
--------------------------------------------------------------------
75,000 * Alamco, Inc. 553,125
--------------------------------------------------------------------
32,000 * Belden & Blake Corp. 456,000
--------------------------------------------------------------------
44,200 Berry Petroleum Co., Class A 403,325
--------------------------------------------------------------------
38,000 Cross Timbers Oil Co. 679,250
--------------------------------------------------------------------
25,200 Devon Energy Corp. 507,150
--------------------------------------------------------------------
49,000 * Dual Drilling Co. 686,000
--------------------------------------------------------------------
13,200 * Hornbeck Offshore Services, Inc. 245,850
--------------------------------------------------------------------
45,000 * Kelley Oil Corp. 528,750
--------------------------------------------------------------------
33,800 * Oceaneering International, Inc. 578,825
--------------------------------------------------------------------
5,000 Penn Virginia Corp. 192,500
--------------------------------------------------------------------
15,000 Plains Petroleum Co. 367,500
--------------------------------------------------------------------
25,000 Pogo Producing Co. 456,250
--------------------------------------------------------------------
20,400 * Seagull Energy Corp. 571,200
--------------------------------------------------------------------
12,250 * Tejas Gas Corp. 701,313
--------------------------------------------------------------------
10,000 Tidelands Realty Trust 122,500
--------------------------------------------------------------------
6,700 * Triton Energy Corp. 222,775
--------------------------------------------------------------------
40,000 * United Meridian Corp. 720,000
-------------------------------------------------------------------- ------------
Total 7,992,313
-------------------------------------------------------------------- ------------
FINANCIAL--16.7%
--------------------------------------------------------------------
22,000 * Ace Cash Express, Inc. 244,750
--------------------------------------------------------------------
58,000 * American Annuity Group, Inc. 522,000
--------------------------------------------------------------------
28,500 American Federal Bank--FSB 302,813
--------------------------------------------------------------------
15,000 BSB Bancorp, Inc. 645,000
--------------------------------------------------------------------
27,000 * Bank of New Hampshire Corp. 502,875
--------------------------------------------------------------------
22,400 Co-operative Bank, Concord 414,400
--------------------------------------------------------------------
65,000 * Crown American Realty 1,064,375
--------------------------------------------------------------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
FINANCIAL--CONTINUED
--------------------------------------------------------------------
15,000 Eaton Vance Corp. $ 525,000
--------------------------------------------------------------------
10,000 First American Corp., Tennessee 305,000
--------------------------------------------------------------------
45,900 Foothill Group, Inc. 648,337
--------------------------------------------------------------------
34,800 * Home State Holdings, Inc. 591,600
--------------------------------------------------------------------
23,780 Integon Corp. 496,407
--------------------------------------------------------------------
12,200 Kansas City Life Insurance Co. 664,900
--------------------------------------------------------------------
33,800 Life Partners Group, Inc. 768,950
--------------------------------------------------------------------
48,000 Magna Group, Inc. 930,000
--------------------------------------------------------------------
6,500 Mercantile Bancorporation, Inc. 320,125
--------------------------------------------------------------------
15,000 NBB Bancorp Inc. 594,375
--------------------------------------------------------------------
19,700 Neworld Bancorp, Inc. 652,563
--------------------------------------------------------------------
14,100 North American Mortgage Co. 467,062
--------------------------------------------------------------------
24,000 ONBANCORP, Inc. 858,000
--------------------------------------------------------------------
69,400 * Payco American Corp. 555,200
--------------------------------------------------------------------
30,000 Penncorp Financial Group, Inc. 626,250
--------------------------------------------------------------------
41,500 Poe & Brown 830,000
--------------------------------------------------------------------
11,730 Portsmouth BankShares, Inc. 199,410
--------------------------------------------------------------------
74,700 SEI Corp. 1,774,125
--------------------------------------------------------------------
27,500 Selective Insurance Group, Inc. 845,625
--------------------------------------------------------------------
36,750 Southwest Securities Group, Inc. 441,000
--------------------------------------------------------------------
33,000 USBancorp, Inc. 833,250
--------------------------------------------------------------------
17,000 United Missouri Bancshares, Inc. 650,250
--------------------------------------------------------------------
34,000 Victoria Bankshares, Inc. 952,000
-------------------------------------------------------------------- ------------
Total 19,225,642
-------------------------------------------------------------------- ------------
MISCELLANEOUS--3.1%
--------------------------------------------------------------------
48,750 ADVO, Inc. 706,875
--------------------------------------------------------------------
15,000 * CDI Corp. 148,125
--------------------------------------------------------------------
20,000 Gilbert Associates, Inc. 332,500
--------------------------------------------------------------------
25,000 * Gulfmark International, Inc. 443,750
--------------------------------------------------------------------
11,000 * Harding Associates, Inc. 96,250
--------------------------------------------------------------------
11,700 Olsten Corp. 324,675
--------------------------------------------------------------------
41,500 * Unilab Corp. 249,000
--------------------------------------------------------------------
53,900 * Unitog Co. 1,307,075
-------------------------------------------------------------------- ------------
Total 3,608,250
-------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
TECHNOLOGY--26.6%
--------------------------------------------------------------------
57,500 * Acxiom Corp. $ 1,279,375
--------------------------------------------------------------------
22,300 * Adaptec, Inc. 802,800
--------------------------------------------------------------------
10,000 * ALC Communications Corp. 300,000
--------------------------------------------------------------------
40,000 * American Management Systems, Inc. 875,000
--------------------------------------------------------------------
32,500 * Analogic Corp. 497,656
--------------------------------------------------------------------
39,100 * Ask Group, Inc. 547,400
--------------------------------------------------------------------
10,000 * Associated Communications Corp. 288,750
--------------------------------------------------------------------
55,000 * Autoinfo, Inc. 213,125
--------------------------------------------------------------------
15,500 * Babbage's Inc. 403,000
--------------------------------------------------------------------
24,000 BGS Systems, Inc. 636,000
--------------------------------------------------------------------
20,000 * Benchmark Electronics, Inc. 412,500
--------------------------------------------------------------------
34,000 * Bisys Group, Inc. 824,500
--------------------------------------------------------------------
40,600 * Boole & Babbage, Inc. 1,055,600
--------------------------------------------------------------------
26,000 * CEM Corp. 286,000
--------------------------------------------------------------------
29,900 * Cirrus Logic, Inc. 1,046,500
--------------------------------------------------------------------
69,400 * Cognos, Inc. 667,975
--------------------------------------------------------------------
45,700 Comptek Research, Inc. 799,750
--------------------------------------------------------------------
87,700 Computer Task Group, Inc. 602,938
--------------------------------------------------------------------
15,000 * Compuware Corp. 393,750
--------------------------------------------------------------------
37,400 * Comshare, Inc. 411,400
--------------------------------------------------------------------
15,000 * Concord EFS, Inc. 341,250
--------------------------------------------------------------------
40,000 * Continuum, Inc. 780,000
--------------------------------------------------------------------
14,500 * Cycare Systems, Inc. 114,187
--------------------------------------------------------------------
18,360 * Detection Systems, Inc. 128,520
--------------------------------------------------------------------
41,800 * Emulex Corp. 271,700
--------------------------------------------------------------------
14,500 * Evans & Sutherland Computer Co. 268,250
--------------------------------------------------------------------
16,000 * Fibronics International, Inc. 82,000
--------------------------------------------------------------------
7,500 * Fiserv, Inc. 161,250
--------------------------------------------------------------------
70,000 * Giga Tronics, Inc. 525,000
--------------------------------------------------------------------
12,000 Greiner Engineering, Inc. 177,000
--------------------------------------------------------------------
15,500 HBO & Co. 606,437
--------------------------------------------------------------------
73,000 Hogan Systems, Inc. 812,125
--------------------------------------------------------------------
37,500 * IMRS, Inc. 946,875
--------------------------------------------------------------------
30,000 Intercargo Corp. 435,000
--------------------------------------------------------------------
40,000 * Interleaf, Inc. 225,000
--------------------------------------------------------------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
--------------------------------------------------------------------
25,000 * International Cabletel, Inc. $ 721,875
--------------------------------------------------------------------
22,700 * Interphase Corp. 96,475
--------------------------------------------------------------------
52,500 * Intersolv, Inc. 406,875
--------------------------------------------------------------------
3,800 ISCO, Inc. 46,550
--------------------------------------------------------------------
19,700 * K-Tron International, Inc. 211,775
--------------------------------------------------------------------
17,900 Keithley Instruments, Inc. 214,800
--------------------------------------------------------------------
14,500 * Kent Electronic Corp. 378,813
--------------------------------------------------------------------
18,000 * KLA Instruments Corp. 396,000
--------------------------------------------------------------------
14,450 * Lattice Semi-conductor Corp. 223,975
--------------------------------------------------------------------
30,000 * Legent Corp. 727,500
--------------------------------------------------------------------
32,000 * MDL Information Systems, Inc. 268,000
--------------------------------------------------------------------
20,500 Mac-Neal Schwendler Corp. 287,000
--------------------------------------------------------------------
30,000 * Microcom, Inc. 90,000
--------------------------------------------------------------------
30,000 Nashua Corp. 836,250
--------------------------------------------------------------------
24,000 National Computer Systems, Inc. 288,000
--------------------------------------------------------------------
46,300 National Data Corp. 839,187
--------------------------------------------------------------------
38,500 * NetFRAME Systems, Inc. 606,375
--------------------------------------------------------------------
96,200 * Network Systems Corp. 829,725
--------------------------------------------------------------------
54,000 * PDA Engineering 263,250
--------------------------------------------------------------------
18,000 * Phoenix Technology Ltd. 76,500
--------------------------------------------------------------------
22,500 * Quantum Corp. 286,875
--------------------------------------------------------------------
19,000 * Ross Systems, Inc. 163,875
--------------------------------------------------------------------
32,600 * Softech, Inc. 158,925
--------------------------------------------------------------------
64,701 * Sterling Software, Inc. 2,102,782
--------------------------------------------------------------------
14,700 * Symix Systems, Inc. 143,325
--------------------------------------------------------------------
13,400 TCA Cable TV, Inc. 391,950
--------------------------------------------------------------------
16,600 Tektronix, Inc. 383,875
--------------------------------------------------------------------
20,000 * Telebit Corp. 163,750
--------------------------------------------------------------------
8,500 Tseng Labs, Inc. 90,313
--------------------------------------------------------------------
31,600 * Unitrode Corp. 442,400
--------------------------------------------------------------------
27,625 Warner Insurance Services, Inc. 155,391
--------------------------------------------------------------------
25,000 * Zygo Corp. 175,000
-------------------------------------------------------------------- ------------
Total 30,685,999
-------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
TRANSPORTATION/SERVICE--1.5%
--------------------------------------------------------------------
10,000 Arnold Industries, Inc. $ 400,000
--------------------------------------------------------------------
19,300 * Builders Transportation, Inc. 272,613
--------------------------------------------------------------------
16,875 * Cannon Express, Inc., Class A 198,281
--------------------------------------------------------------------
16,875 * Cannon Express, Inc., Class B 151,875
--------------------------------------------------------------------
10,300 Carolina Freight Corp. 132,612
--------------------------------------------------------------------
50,000 Intertrans Corp. 612,500
-------------------------------------------------------------------- ------------
Total 1,767,881
-------------------------------------------------------------------- ------------
UTILITIES--0.4%
--------------------------------------------------------------------
20,000 Middlesex Water Co. 425,000
-------------------------------------------------------------------- ------------
TOTAL COMMON STOCKS (IDENTIFIED COST, $100,484,009) 109,038,751
-------------------------------------------------------------------- ------------
MUTUAL FUND SHARES--6.2%
- ---------------------------------------------------------------------------------------
2,522,240 Dreyfus Cash Management Trust 2,522,240
--------------------------------------------------------------------
4,606,574 Fidelity Institutional Cash Money Market Fund 4,606,574
-------------------------------------------------------------------- ------------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 7,128,814
-------------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST, $107,612,823) $116,167,565+
-------------------------------------------------------------------- ------------
</TABLE>
* Non-income producing.
+ The cost of investments for federal tax purposes amounts to $107,617,173. The
net unrealized appreciation of investments on a federal tax cost basis amounts
to $8,550,392, which is comprised of $16,852,809 appreciation and $8,302,417
depreciation at October 31, 1993.
Note: The categories of investments are shown as a percentage of net assets
($115,395,984) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT LIMITED TERM INCOME FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------------ -----------
<C> <C> <S> <C>
LONG-TERM U.S. TREASURY OBLIGATIONS--37.7%
- -----------------------------------------------------------------------------------------
U.S. TREASURY NOTES
------------------------------------------------------------------------
$2,000,000 3.875%, 10/31/95 $ 1,995,000
------------------------------------------------------------------------
3,000,000 4.25%, 7/31/95 3,016,410
------------------------------------------------------------------------
7,000,000 4.625%, 11/30/94-2/15/96 7,079,745
------------------------------------------------------------------------
3,000,000 4.75%, 9/30/98 2,989,230
------------------------------------------------------------------------
1,500,000 5.50%, 2/15/95 1,533,510
------------------------------------------------------------------------
2,000,000 5.625%, 8/31/97 2,073,440
------------------------------------------------------------------------
1,000,000 6.25%, 1/31/97 1,055,160
------------------------------------------------------------------------
1,500,000 6.875%, 3/31/97 1,614,135
------------------------------------------------------------------------
250,000 7.625%, 4/30/96 270,078
------------------------------------------------------------------------
520,000 7.875%, 2/15/96 562,167
------------------------------------------------------------------------
500,000 8.00%, 7/15/94 515,780
------------------------------------------------------------------------
3,300,000 8.50%, 6/30/94-11/15/95 3,464,287
------------------------------------------------------------------------
500,000 8.75%, 10/15/97 573,670
------------------------------------------------------------------------ -----------
TOTAL LONG-TERM U.S. TREASURY OBLIGATIONS
(IDENTIFIED COST $26,619,336) 26,742,612
------------------------------------------------------------------------ -----------
LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--17.5%
- -----------------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK--3.5%
------------------------------------------------------------------------
1,661,496 7.00%, 6/1/2010-5/1/2019 1,711,555
------------------------------------------------------------------------
736,264 7.50%, 8/1/97 763,874
------------------------------------------------------------------------ -----------
Total 2,475,429
------------------------------------------------------------------------ -----------
FEDERAL HOME LOAN MORTGAGE CORP.--5.3%
------------------------------------------------------------------------
1,000,000 4.60%, 7/13/98 1,001,689
------------------------------------------------------------------------
655,645 6.75%, (Series 1181D), 7/15/2001 662,609
------------------------------------------------------------------------
1,000,000 7.00%, (Series 1204G), 11/15/2005 1,053,120
------------------------------------------------------------------------
504,656 8.00%, (Series 1044B), 4/15/2016 509,228
------------------------------------------------------------------------
500,000 8.50%, (Series 116C), 12/15/2013 512,965
------------------------------------------------------------------------ -----------
Total 3,739,611
------------------------------------------------------------------------ -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--2.2%
------------------------------------------------------------------------
962,970 6.50%, 7/1/2000 992,755
------------------------------------------------------------------------
534,844 9.00%, 10/1/97-9/1/98 559,911
------------------------------------------------------------------------ -----------
Total 1,552,666
------------------------------------------------------------------------ -----------
</TABLE>
SHAWMUT LIMITED TERM INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------------ -----------
<C> <C> <S> <C>
LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--CONTINUED
- -----------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--REMIC--4.8%
------------------------------------------------------------------------
$ 983,695 6.00%, (Series 1993--174KB), 5/25/2008 $ 987,069
------------------------------------------------------------------------
903,871 7.00%, (Series 1992-64A), 8/25/97 911,491
------------------------------------------------------------------------
746,400 8.00%, (Series 1991-43E), 2/25/2016 750,595
------------------------------------------------------------------------
471,967 8.25%, (Series 1989-59E), 6/25/2015 474,620
------------------------------------------------------------------------
227,781 8.95%, (Series 1998-10B), 5/25/2003 242,657
------------------------------------------------------------------------ -----------
Total 3,366,432
------------------------------------------------------------------------ -----------
MILITARY HOUSING--1.0%
------------------------------------------------------------------------
700,534 8.70%, 4/15/97 728,555
------------------------------------------------------------------------ -----------
STUDENT LOAN MARKETING ASSOCIATION--0.7%
------------------------------------------------------------------------
500,000 8.08%, 12/20/95 503,125
------------------------------------------------------------------------ -----------
TOTAL LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS
(IDENTIFIED COST, $11,637,130) 12,365,818
------------------------------------------------------------------------ -----------
CORPORATE BONDS--37.1%
- -----------------------------------------------------------------------------------------
BANKING--5.1%
------------------------------------------------------------------------
1,000,000 * Capstead Capital Corp., 6.75%, 10/1/2023 1,036,563
------------------------------------------------------------------------
1,000,000 First Chicago Corp., 9.25%, Medium Term Notes, 5/30/96 1,104,980
------------------------------------------------------------------------
1,000,000 First Union Corp., 5.95%, 7/1/95 1,024,380
------------------------------------------------------------------------
440,000 Security Pacific Corp., 8.49%, Medium Term Note, 12/27/96 485,703
------------------------------------------------------------------------ -----------
Total 3,651,626
------------------------------------------------------------------------ -----------
FINANCE--ASSET BACKED--5.0%
------------------------------------------------------------------------
246,205 Chase Manhattan Bank, 6.90%, Grantor Trust Certificate, 9/15/97 249,511
------------------------------------------------------------------------
105,964 Ford Motor Credit Corp., 8.75%, Grantor Trust Certificate, 10/16/95 107,652
------------------------------------------------------------------------
1,000,000 Ford Credit Auto Loan Master, 6.875%, 1/15/99 1,060,930
------------------------------------------------------------------------
752,692 General Motors Acceptance Corp., 4.30%-5.55%, Grantor Trust Certificate,
11/15/94-5/15/97 754,120
------------------------------------------------------------------------
1,338,852 ML Asset Backed Corp., 5.50%, 5/15/98 1,360,609
------------------------------------------------------------------------ -----------
Total 3,532,822
------------------------------------------------------------------------ -----------
FINANCE--AUTOMOTIVE--6.4%
------------------------------------------------------------------------
1,000,000 General Motors Acceptance Corp., 6.60%, Medium Term Note, 6/2/95 1,031,710
------------------------------------------------------------------------
2,743,789 Premier Auto Trust, 4.65-5.90%, 11/17/97-2/2/99 2,775,527
------------------------------------------------------------------------
649,232 Volvo Auto Receivables, 4.65%, Grantor Trust, 6/15/98 652,881
------------------------------------------------------------------------
51,538 U.S. Auto Receivables Trust, 8.00%, 3/15/96 52,537
------------------------------------------------------------------------ -----------
Total 4,512,655
------------------------------------------------------------------------ -----------
FINANCE--INSURANCE--1.4%
------------------------------------------------------------------------
1,000,000 AIG Matched Funding Corp., 5.314%, 9/25/98 995,000
------------------------------------------------------------------------ -----------
</TABLE>
SHAWMUT LIMITED TERM INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------------ -----------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- -----------------------------------------------------------------------------------------
FINANCE--LEASING--2.1%
------------------------------------------------------------------------
$1,500,000 Comdisco, Inc., 5.375%, Medium Term Note, 7/15/95 $ 1,507,950
------------------------------------------------------------------------ -----------
FINANCE--MORTGAGE PASSTHROUGH CMO--1.7%
------------------------------------------------------------------------
234,423 Lomas Mortgage Funding Corp., 9.00%, 9/20/2015 237,060
------------------------------------------------------------------------
982,129 Saxon Mortgage Securities Corp., 7.375%, 9/25/2023 1,004,994
------------------------------------------------------------------------ -----------
Total 1,242,054
------------------------------------------------------------------------ -----------
FINANCE--SERVICE--2.9%
------------------------------------------------------------------------
500,000 American Express Co., 8.625%, 7/15/94 516,045
------------------------------------------------------------------------
1,000,000 Merrill Lynch & Co., Inc. 5.50%, 7/28/95 1,018,740
------------------------------------------------------------------------
500,000 Smith Barney Holdings Corp., 5.375%, 6/1/96 505,781
------------------------------------------------------------------------ -----------
Total 2,040,566
------------------------------------------------------------------------ -----------
FOREIGN--0.3%
------------------------------------------------------------------------
200,000 International Bank for Reconciliation & Development, 8.625%, 10/1/95 216,004
------------------------------------------------------------------------ -----------
INDUSTRIAL--5.6%
------------------------------------------------------------------------
2,250,000 Pacific Dunlop Ltd., 6.54%, Medium Term Note, 5/1/95 2,324,003
------------------------------------------------------------------------
1,500,000 Tenneco Corp., 10.75%, 6/15/95 1,612,500
------------------------------------------------------------------------ -----------
Total 3,936,503
------------------------------------------------------------------------ -----------
MACHINERY--0.5%
------------------------------------------------------------------------
300,000 Caterpillar Financial Services, 8.95%, Medium Term Note, 5/21/2000 346,407
------------------------------------------------------------------------ -----------
PHARMACEUTICAL--1.2%
------------------------------------------------------------------------
800,000 Syntex U.S.A., 5.90%, Medium Term Note, 5/26/98 820,016
------------------------------------------------------------------------ -----------
RAILROADS--0.4%
------------------------------------------------------------------------
245,000 CSX Corp., 8.25%, 11/1/96 266,952
------------------------------------------------------------------------ -----------
RETAIL STORE--3.8%
------------------------------------------------------------------------
1,000,000 Sears Roebuck & Co., 9.04%, Medium Term Note, 12/10/93 1,005,060
------------------------------------------------------------------------
500,000 Reebok International, Ltd., 9.75%, 9/15/98 541,480
------------------------------------------------------------------------
1,150,000 TJX Cos, Inc., 4.55%, 10/21/96 1,150,000
------------------------------------------------------------------------ -----------
Total 2,696,540
------------------------------------------------------------------------ -----------
UTILITIES--0.7%
------------------------------------------------------------------------
500,000 Commonwealth Edison Co., 6.00%, 3/15/98 507,225
------------------------------------------------------------------------ -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST, $26,903,352) 26,272,320
------------------------------------------------------------------------ -----------
</TABLE>
SHAWMUT LIMITED TERM INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
- ---------- ----------------------------------------------------------------------- -----------
<C> <S> <C>
CERTIFICATES OF DEPOSIT--2.9%
- -------------------------------------------------------------------------------------
$1,000,000 Fleet Bank of Connecticut, 8.57%, 11/29/94 $ 1,046,960
-----------------------------------------------------------------------
1,000,000 First USA Bank of Wilmington, 5.05%, 10/24/95 1,002,050
----------------------------------------------------------------------- -----------
TOTAL CERTIFICATES OF DEPOSIT (IDENTIFIED COST, $2,063,670) 2,049,010
----------------------------------------------------------------------- -----------
MUTUAL FUND SHARES--7.4%
- -------------------------------------------------------------------------------------
1,806,722 Dreyfus Cash Management 1,806,722
-----------------------------------------------------------------------
3,470,647 Fidelity Institutional Cash Money Market Fund 3,470,647
----------------------------------------------------------------------- -----------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 5,277,369
----------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $72,500,857) $72,707,129+
----------------------------------------------------------------------- -----------
</TABLE>
* Delayed Delivery Security (Note 2E).
+ The cost of investments for federal tax purposes amounts to $72,500,857. The
net unrealized appreciation of investments on a federal tax cost basis amounts
to $206,272, which is comprised of $490,419 appreciation and $284,147
depreciation at October 31, 1993.
Note: The categories of investments are shown as a percentage of net assets
($70,857,455) at October 31, 1993.
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
CMO -- Collateralized Mortgage Obligation
REMIC -- Real Estate Mortgage Investment Conduit
</TABLE>
(See Notes which are an integral part of the Financial Statements)
THE SHAWMUT FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS
MUNICIPAL MUNICIPAL GROWTH AND
MONEY MONEY FIXED INCOME GROWTH
MARKET MARKET INCOME EQUITY EQUITY
FUND FUND FUND FUND FUND
- ------------------------------------------------- ---------- ---------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
- ------------------------------------------------
Investments in securities, at value (Note 2A) $6,589,809 $1,239,822 $100,668,841 $163,569,287 $25,802,299
- ------------------------------------------------
Cash 48 6,020 25,313 -- --
- ------------------------------------------------
Interest receivable 3,987 486 1,671,863 38,724 3,027
- ------------------------------------------------
Receivable for Fund shares sold -- -- 634,110 746,713 126,870
- ------------------------------------------------
Receivable for investments sold -- -- 946,667 2,698,389 --
- ------------------------------------------------
Dividends receivable -- -- -- 228,144 11,336
- ------------------------------------------------
Prepaid/deferred expenses (Note 2F) 3,394 937 33,386 46,494 10,907
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Total assets 6,597,238 1,247,265 103,980,180 167,327,751 25,954,439
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
LIABILITIES:
- ------------------------------------------------
Payable for investments purchased -- -- 1,841,250 3,355,214 417,151
- ------------------------------------------------
Payable to Bank -- -- -- 234,023 55,367
- ------------------------------------------------
Payable for Fund shares repurchased -- -- 20,300 232,222 15,882
- ------------------------------------------------
Dividends payable 902 155 -- -- --
- ------------------------------------------------
Accrued expenses and other liabilities 14,273 10,227 84,062 136,682 47,947
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Total liabilities 15,175 10,382 1,945,612 3,958,141 536,347
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Total net assets $6,582,063 $1,236,883 $102,034,568 $163,369,610 $25,418,092
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
NET ASSETS CONSIST OF:
- ------------------------------------------------
Paid-in-capital $6,582,063 $1,236,883 $ 97,899,214 $154,262,679 $24,151,065
- ------------------------------------------------
Net unrealized appreciation (depreciation) of
investments -- -- 3,599,038 4,761,289 812,143
- ------------------------------------------------
Accumulated net realized gain (loss) on
investments -- -- 483,546 4,324,678 448,318
- ------------------------------------------------
Undistributed net investment income -- -- 52,770 20,964 6,566
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Total net assets $6,582,063 $1,236,883 $102,034,568 $163,369,610 $25,418,092
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
NET ASSET VALUE, and Redemption Price Per Share:
(net assets/shares outstanding)
- ------------------------------------------------
Trust Shares $ 1.00 $ 1.00 $ 10.55 $ 10.69 $ 10.49
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Investment Shares $ 1.00 $ -- $ 10.55 $ 10.69 $ 10.49
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Offering Price Per Share+
- ------------------------------------------------
Trust Shares $ 1.00 $ 1.00 $ 10.55 $ 10.69 $ 10.49
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Investment Shares $ 1.00 $ -- $ 10.77* $ 11.14** $ 10.93**
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
SHARES OUTSTANDING:
- ------------------------------------------------
Trust Shares 150 1,236,883 8,765,693 13,757,710 1,980,846
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Investment Shares 6,581,913 -- 905,195 1,522,869 441,546
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Investments, at identified cost $ -- $ -- $ 97,069,803 $158,807,998 $24,990,156
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
</TABLE>
+ See "What Shares Cost" in the prospectus.
* Computation of Offering Price: 100/98 of net asset value
** Computation of Offering Price: 100/96 of net asset value
(See Notes which are an integral part of the Financial Statements)
THE SHAWMUT FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LIMITED PRIME SMALL
GOVERNMENT TERM MONEY CAPITALIZATION
INCOME INCOME MARKET EQUITY
FUND FUND FUND FUND
- ------------------------------------------------------------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
- ------------------------------------------------------------
Repurchase agreements (Note 2B) $ -- $ -- $ 35,248,090 $ --
- ------------------------------------------------------------
Investments in securities (Note 2A) 75,141,758 72,707,129 251,792,464 116,167,565
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Total investments, at value 75,141,758 72,707,129 287,040,554 116,167,565
- ------------------------------------------------------------
Cash -- 5,629 -- --
- ------------------------------------------------------------
Interest receivable 1,213,953 828,957 197,022 18,257
- ------------------------------------------------------------
Receivable for Fund shares sold 467,408 498,858 509 727,167
- ------------------------------------------------------------
Receivable for investments sold -- -- -- 132,939
- ------------------------------------------------------------
Dividends receivable -- -- -- 49,619
- ------------------------------------------------------------
Prepaid/deferred expenses (Note 2F) 28,121 20,070 79,652 33,234
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Total assets 76,851,240 74,060,643 287,317,737 117,128,781
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
LIABILITIES:
- ------------------------------------------------------------
Payable for investments purchased 500,000 3,033,125 -- 965,441
- ------------------------------------------------------------
Payable to Bank -- -- -- --
- ------------------------------------------------------------
Payable for Fund shares repurchased 69,745 111,930 13,482 45,231
- ------------------------------------------------------------
Dividends payable -- -- 524,026 --
- ------------------------------------------------------------
Accrued expenses and other liabilities 70,284 58,133 170,591 722,125
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Total liabilities 640,029 3,203,188 708,099 1,732,797
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Total net assets $76,211,211 $70,857,455 $286,609,638 $115,395,984
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
NET ASSETS CONSIST OF:
- ------------------------------------------------------------
Paid-in-capital $74,952,327 $70,960,933 $286,609,638 $103,478,679
- ------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments 1,282,509 206,272 -- 8,554,742
- ------------------------------------------------------------
Accumulated net realized gain (loss) on investments (54,371) (310,753) -- 3,369,998
- ------------------------------------------------------------
Undistributed net investment income 30,746 1,003 -- --
- ------------------------------------------------------------
Accumulated distributions in excess of net investment income
(Note 3) -- -- -- (7,435)
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Total net assets $76,211,211 $70,857,455 $286,609,638 $115,395,984
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
NET ASSET VALUE, and Redemption Price Per Share:
(net assets/shares outstanding)
- ------------------------------------------------------------
Trust Shares $ 10.26 $ 10.00 $ 1.00 $ 11.21
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Investment Shares $ 10.26 $ 10.00 $ 1.00 $ 11.21
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Offering Price Per Share+
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Trust Shares $ 10.26 $ 10.00 $ 1.00 $ 11.21
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Investment Shares $ 10.47* $ 10.20* $ 1.00 $ 11.68**
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
SHARES OUTSTANDING:
- ------------------------------------------------------------
Trust Shares 6,083,389 6,698,128 257,851,325 8,952,892
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Investment Shares 1,346,680 385,813 28,758,313 1,339,205
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Investments, at identified cost $73,859,249 $72,500,857 $ -- $107,612,823
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
</TABLE>
+ See "What Shares Cost" in the prospectus.
* Computation of Offering Price: 100/98 of net asset value
** Computation of Offering Price: 100/96 of net asset value
(See Notes which are an integral part of the Financial Statements)
THE SHAWMUT FUNDS
STATEMENTS OF OPERATIONS
YEAR ENDED OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS
MUNICIPAL MUNICIPAL GROWTH AND
MONEY MONEY FIXED INCOME GROWTH
MARKET MARKET INCOME EQUITY EQUITY
FUND* FUND** FUND*** FUND*** FUND***
- ------------------------------------------------- ------- ------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
- ------------------------------------------------
Interest income $ 5,469 $ 764 $5,217,122 $ 380,548 $ 35,308
- ------------------------------------------------
Dividend income -- -- -- 3,302,365 257,480
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Total income (Note 2C) 5,469 764 5,217,122 3,682,913 292,788
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Expenses:
- ------------------------------------------------
Investment advisory fee (Note 5) 1,104 134 605,022 1,191,845 222,953
- ------------------------------------------------
Trustees' Fee 70 25 784 1,078 480
- ------------------------------------------------
Administrative personnel and services fees
(Note 5) 265 32 94,878 149,519 28,063
- ------------------------------------------------
Custodian fees (Note 5) 44 5 8,011 10,719 4,900
- ------------------------------------------------
Transfer and dividend disbursing agent fees and
expenses (Note 5) 2,275 2,200 21,919 26,326 21,555
- ------------------------------------------------
Auditing fees -- -- 1,600 1,600 1,600
- ------------------------------------------------
Legal fees 1,500 1,450 2,814 4,115 2,815
- ------------------------------------------------
Printing and postage 586 950 11,571 25,664 8,663
- ------------------------------------------------
Recordkeeping fees (Note 5) 5,555 3,560 51,733 52,054 44,314
- ------------------------------------------------
Insurance premiums 45 529 2,000 15,672 1,323
- ------------------------------------------------
Distribution services fee (Note 5) 1,104 -- 17,497 33,658 8,860
- ------------------------------------------------
Miscellaneous 296 576 8,537 10,858 4,498
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Total expenses 12,844 9,461 826,366 1,523,108 350,024
- ------------------------------------------------
Deduct:
- ------------------------------------------------
Waiver of investment advisory fee (Note 5) 1,104 134 169,100 319,550 75,986
- ------------------------------------------------
Waiver of custodian fees (Note 5) 44 5 -- -- --
- ------------------------------------------------
Waiver of distribution services fee (Note 5) 552 -- 8,749 16,829 4,431
- ------------------------------------------------
Waiver of administrative personnel and
services fees (Note 5) 265 32 -- -- 28,063
- ------------------------------------------------
Reimbursement of other operating expenses
(Note 5) 10,084 9,261 -- -- --
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Net expenses 795 29 648,517 1,186,729 241,544
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Net investment income 4,674 735 4,568,605 2,496,184 51,244
- ------------------------------------------------ ------ ----- --------- ---------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
- ------------------------------------------------
Net realized gain (loss) on investment
transactions (identified cost basis) -- -- 483,546 4,324,678 448,318
- ------------------------------------------------
Net change in unrealized appreciation
(depreciation) of investments -- -- 3,599,038 4,761,289 812,143
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Net realized and unrealized gain (loss) on
investments -- -- 4,082,584 9,085,967 1,260,461
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Change in net assets resulting from
operations $ 4,674 $ 735 $8,651,189 $11,582,151 $1,311,705
- ------------------------------------------------ ------ ----- --------- ---------- ---------
</TABLE>
* 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)
THE SHAWMUT FUNDS
STATEMENTS OF OPERATIONS
YEAR ENDED OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LIMITED PRIME SMALL
GOVERNMENT TERM MONEY CAPITALIZATION
INCOME INCOME MARKET EQUITY
FUND* FUND* FUND** FUND*
- ------------------------------------------------------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
- -------------------------------------------------------
Interest income $3,709,125 $3,302,457 $7,407,634 $ 260,971
- -------------------------------------------------------
Dividend income -- -- -- 587,689
- ------------------------------------------------------- ---------- ---------- ---------- -----------
Total income (Note 2C) 3,709,125 3,302,457 7,407,634 848,660
- ------------------------------------------------------- ---------- ---------- ---------- -----------
EXPENSES:
- -------------------------------------------------------
Investment advisory fee (Note 5) 443,271 411,275 1,128,024 817,430
- -------------------------------------------------------
Trustees' fee 594 480 3,554 1,848
- -------------------------------------------------------
Administrative personnel and services fees (Note 5) 69,486 64,554 283,923 102,587
- -------------------------------------------------------
Custodian fees (Note 5) 6,534 5,350 15,717 7,827
- -------------------------------------------------------
Transfer and dividend disbursing agent fees and
expenses (Note 5) 22,159 21,293 24,417 27,082
- -------------------------------------------------------
Auditing fees 1,600 1,600 1,600 1,600
- -------------------------------------------------------
Legal fees 2,815 2,814 4,355 4,499
- -------------------------------------------------------
Printing and postage 7,227 9,000 21,159 12,538
- -------------------------------------------------------
Recordkeeping fees (Note 5) 47,980 48,418 63,702 64,580
- -------------------------------------------------------
Insurance premiums 328 384 12,030 8,740
- -------------------------------------------------------
Distribution services fee (Note 5) 24,926 5,779 20,984 29,532
- -------------------------------------------------------
Miscellaneous 7,300 6,541 20,775 8,293
- ------------------------------------------------------- ---------- ---------- ---------- -----------
Total expenses 634,220 577,488 1,600,240 1,086,556
- -------------------------------------------------------
Deduct:
- -------------------------------------------------------
Waiver of investment advisory fee (Note 5) 122,880 116,939 270,978 230,774
- -------------------------------------------------------
Waiver of distribution services fees (Note 5) 12,463 2,889 10,492 14,766
- ------------------------------------------------------- ---------- ---------- ---------- -----------
Net expenses 498,877 457,660 1,318,770 841,016
- ------------------------------------------------------- ---------- ---------- ---------- -----------
Net investment income 3,210,248 2,844,797 6,088,864 7,644
- ------------------------------------------------------- ---------- ---------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- -------------------------------------------------------
Net realized gain (loss) on investment transactions
(identified cost basis) (54,371) (310,753) -- 3,369,998
- -------------------------------------------------------
Net change in unrealized appreciation (depreciation) of
investments 1,282,509 206,272 -- 8,554,742
- ------------------------------------------------------- ---------- ---------- ---------- -----------
Net realized and unrealized gain (loss) on
investments 1,228,138 (104,481) -- 11,924,740
- ------------------------------------------------------- ---------- ---------- ---------- -----------
Change in net assets resulting from operations $4,438,386 $2,740,316 $6,088,864 $11,932,384
- ------------------------------------------------------- ---------- ---------- ---------- -----------
</TABLE>
* For the period from December 14, 1992 (date of initial public investment) to
October 31, 1993.
** Reflects operations 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.
(See Notes which are an integral part of the Financial Statements)
THE SHAWMUT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS GROWTH
MUNICIPAL MUNICIPAL AND
MONEY MONEY FIXED INCOME GROWTH
MARKET MARKET INCOME EQUITY EQUITY
FUND FUND FUND FUND FUND
---------- ---------- ------------ ------------ -----------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/93* 10/31/93** 10/31/93*** 10/31/93*** 10/31/93***
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ------------------------------------------
OPERATIONS--
- ------------------------------------------
Net investment income $ 4,674 $ 735 $ 4,568,605 $ 2,496,184 $ 51,244
- ------------------------------------------
Net realized gain on investment
transactions -- -- 483,546 4,324,678 448,318
- ------------------------------------------
Change in unrealized appreciation of
investments -- -- 3,599,038 4,761,289 812,143
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
Change in net assets resulting from
operations 4,674 735 8,651,189 11,582,151 1,311,705
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 3)--
- ------------------------------------------
Dividends to shareholders from net
investment income:
- ------------------------------------------
Trust Shares -- (735) (4,330,490) (2,334,825) (43,156)
- ------------------------------------------
Investment Shares (4,674) -- (185,345) (140,395) (1,522)
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
Change in net assets from distributions
to shareholders (4,674) (735) (4,515,835) (2,475,220) (44,678)
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
FUND SHARE (PRINCIPAL) TRANSACTIONS
(NOTE 4)--
- ------------------------------------------
Net proceeds from sale of shares 6,678,827 1,236,303 113,243,761 173,784,764 40,120,471
- ------------------------------------------
Net asset value of shares issued to
shareholders electing to receive payment
of dividends in Fund shares 3,772 580 150,258 134,568 1,520
- ------------------------------------------
Cost of shares redeemed (100,536) -- (15,494,805) (19,656,653) (15,970,926)
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
Change in net assets from Fund share
transactions 6,582,063 1,236,883 97,899,214 154,262,679 24,151,065
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
Change in net assets 6,582,063 1,236,883 102,034,568 163,369,610 25,418,092
- ------------------------------------------
NET ASSETS:
- ------------------------------------------
Beginning of period -- -- -- -- --
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
End of period 6,582,063 1,236,883 102,034,568 163,369,610 25,418,092
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
Undistributed net investment income
included in net assets at end of period $ -- $ -- $ 52,770 $ 20,964 $ 6,566
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
</TABLE>
* 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)
THE SHAWMUT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LIMITED PRIME SMALL
GOVERNMENT TERM MONEY CAPITALIZATION
INCOME INCOME MARKET EQUITY
FUND FUND FUND FUND
----------- ----------- ------------ ------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/93* 10/31/93* 10/31/93** 10/31/93*
- ----------------------------------------------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -----------------------------------------------
OPERATIONS--
- -----------------------------------------------
Net investment income $ 3,210,248 $ 2,844,797 $ 6,088,864 $ 7,644
- -----------------------------------------------
Net realized gain (loss) on investment
transactions (54,371) (310,753) -- 3,369,998
- -----------------------------------------------
Change in unrealized appreciation of
investments 1,282,509 206,272 -- 8,554,742
- ----------------------------------------------- ----------- ----------- ------------ ------------
Change in net assets resulting from
operations 4,438,386 2,740,316 6,088,864 11,932,384
- ----------------------------------------------- ----------- ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 3)--
- -----------------------------------------------
Dividends to shareholders from net investment
income:
- -----------------------------------------------
Trust Shares (2,921,736) (2,785,883) (5,990,070) (7,644)
- -----------------------------------------------
Investment Shares (257,766) (57,911) (98,794) --
- -----------------------------------------------
Dividends to shareholders in excess of net
investment income--Trust Shares -- -- -- (7,435)
- ----------------------------------------------- ----------- ----------- ------------ ------------
Change in net assets from distributions to
shareholders (3,179,502) (2,843,794) (6,088,864) (15,079)
- ----------------------------------------------- ----------- ----------- ------------ ------------
FUND SHARE (PRINCIPAL) TRANSACTIONS (NOTE 4)--
- -----------------------------------------------
Net proceeds from sale of shares 88,073,925 93,789,581 651,556,019 109,180,277
- -----------------------------------------------
Net asset value of shares issued to
shareholders electing to receive payment of
dividends in Fund shares 219,922 45,667 94,351 --
- -----------------------------------------------
Cost of shares redeemed (13,341,520) (22,874,315) (365,140,732) (5,701,598)
- ----------------------------------------------- ----------- ----------- ------------ ------------
Change in net assets from Fund share
transactions 74,952,327 70,960,933 286,509,638 103,478,679
- ----------------------------------------------- ----------- ----------- ------------ ------------
Change in net assets 76,211,211 70,857,455 286,509,638 115,395,984
- -----------------------------------------------
NET ASSETS:
- -----------------------------------------------
Beginning of period -- -- 100,000 --
- ----------------------------------------------- ----------- ----------- ------------ ------------
End of period 76,211,211 70,857,455 286,609,638 115,395,984
- ----------------------------------------------- ----------- ----------- ------------ ------------
Undistributed net investment income included in
net assets at end of period $ 30,746 $ 1,003 $ -- $ --
- ----------------------------------------------- ----------- ----------- ------------ ------------
</TABLE>
* For the period from December 14, 1992 (date of initial public investment) to
October 31, 1993.
** Reflects operations 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.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT CONNECTICUT MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993*
- ----------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------------------
Net investment income 0.001
- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.001)
- ------------------------------------------------------------------------------ -------
NET ASSET VALUE, END OF PERIOD $1.00
- ------------------------------------------------------------------------------ -------
TOTAL RETURN** 0.14%
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------------------------
Expenses 0.36%(a)
- ------------------------------------------------------------------------------
Net investment income 2.12%(a)
- ------------------------------------------------------------------------------
Expense waiver/reimbursement (b) 5.46%(a)
- ------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $6,582
- ------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from October 4, 1993 (date of initial
public investment) to October 31, 1993.
** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(See Notes which are an integral part of the Financial Statements)
SHAWMUT MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- ----------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------------------
Net investment income 0.001
- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.001)
- ------------------------------------------------------------------------------ -------
NET ASSET VALUE, END OF PERIOD $1.00
- ------------------------------------------------------------------------------ -------
TOTAL RETURN** 0.12%
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------------------------
Expenses 0.11%(a)
- ------------------------------------------------------------------------------
Net investment income 2.75%(a)
- ------------------------------------------------------------------------------
Expense waiver/reimbursement (b) 35.31%(a)
- ------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $1,237
- ------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from October 5, 1993 (date of initial
public investment) to October 31, 1993.
** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(See Notes which are an integral part of the Financial Statements)
SHAWMUT FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- -----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------
Net investment income 0.55
- -----------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.55
- ----------------------------------------------------------------------------------------------- ------
Total from investment operations 1.10
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.55)
- ----------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.55
- ----------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 11.26%
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------
Expenses 0.85%(a)
- -----------------------------------------------------------------------------------------------
Net investment income 6.06%(a)
- -----------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.22%(a)
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $92,485
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 33%
- -----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993**
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.23
- -----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------
Net investment income 0.40
- -----------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.31
- ----------------------------------------------------------------------------------------------- ------
Total from investment operations 0.71
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.39)
- ----------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.55
- ----------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 7.02%
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------
Expenses 1.12%(a)
- -----------------------------------------------------------------------------------------------
Net investment income 5.61%(a)
- -----------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.48%(a)
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $9,550
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 33%
- -----------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(c) Represents portfolio turnover rate for the entire Fund.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT GROWTH AND INCOME EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31
TRUST SHARES 1993*
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- -----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------
Net investment income 0.18
- -----------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.69
- ----------------------------------------------------------------------------------------------- ------
Total from investment operations 0.87
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.18)
- ----------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.69
- ----------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 8.80%
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------
Expenses 0.98%(a)
- -----------------------------------------------------------------------------------------------
Net investment income 2.11%(a)
- -----------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.27%(a)
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $147,090
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 38%
- -----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993**
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.23
- -----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------
Net investment income 0.15
- -----------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.48
- ----------------------------------------------------------------------------------------------- ------
Total from investment operations 0.63
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.17)
- ----------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.69
- ----------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 6.20%
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------
Expenses 1.25%(a)
- -----------------------------------------------------------------------------------------------
Net investment income 1.77%(a)
- -----------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.53%(a)
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $16,280
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 38%
- -----------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expenses/income ratios due to waivers or
reimbursements of expenses (Note 5).
(c) Represents portfolio turnover rate for the entire Fund.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT GROWTH EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- -------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------
Net investment income 0.023
- -------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.487
- ------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.510
- -------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.019)
- ------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.49
- ------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 5.09%
- -------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------------------------------------
Expenses 1.06%(a)
- -------------------------------------------------------------------------------------------------
Net investment income 0.26%(a)
- -------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.47%(a)
- -------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $20,787
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 71%
- -------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993**
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.01
- -------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------
Net investment income 0.004
- -------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.480
- ------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.484
- -------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.004)
- ------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.49
- ------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 4.84%
- -------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------------------------------------
Expenses 1.37%(a)
- -------------------------------------------------------------------------------------------------
Net investment income (0.10)%(a)
- -------------------------------------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.72%(a)
- -------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $4,631
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 71%
- -------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(c) Represents portfolio turnover rate for the entire Fund.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment income 0.52
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.26
- ---------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.78
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.52)
- ---------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.26
- ---------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 7.97%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------
Expenses 0.88%(a)
- ----------------------------------------------------------------------------------------------------
Net investment income 5.83%(a)
- ----------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.26%(a)
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $62,399
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 30%
- ----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993**
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.18
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment income 0.37
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.08
- ---------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.45
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.37)
- ---------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.26
- ---------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 4.45%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------
Expenses 1.15%(a)
- ----------------------------------------------------------------------------------------------------
Net investment income 5.41%(a)
- ----------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.50%(a)
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $13,812
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 30%
- ----------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(c) Represents portfolio turnover rate for the entire Fund.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT LIMITED TERM INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment income 0.49
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.00
- ---------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.49
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.49)
- ---------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.00
- ---------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 5.02%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------
Expenses 0.88%(a)
- ----------------------------------------------------------------------------------------------------
Net investment income 5.54%(a)
- ----------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.23%(a)
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $66,998
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 53%
- ----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 3
INVESTMENT SHARES 1993**
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.09
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment income 0.34
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.09)
- ---------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.25
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.34)
- ---------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.00
- ---------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 2.57%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------
Expenses 1.13%(a)
- ----------------------------------------------------------------------------------------------------
Net investment income 5.07%(a)
- ----------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.48%(a)
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $3,859
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 53%
- ----------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(c) Represents portfolio turnover rate for the entire Fund.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT PRIME MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
- -----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------
Net investment income 0.02
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.02)
- ----------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $ 1.00
- ----------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 2.41%
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------
Expenses 0.58%(a)
- -----------------------------------------------------------------------------------------------
Net investment income 2.71%(a)
- -----------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.12%(a)
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $257,851
- -----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993**
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
- -----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------
Net investment income 0.02
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.02)
- ----------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $ 1.00
- ----------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 1.73%
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------
Expenses 0.85%(a)
- -----------------------------------------------------------------------------------------------
Net investment income 2.36%(a)
- -----------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.37%(a)
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $28,758
- -----------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations 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.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(See Notes which are an integral part of the Financial Statements)
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment income 0.002
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 1.210
- ---------------------------------------------------------------------------------------------------- ------
Total from investment operations 1.212
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.002)
- ---------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $11.21
- ---------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 12.12%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------
Expenses 1.01%(a)
- ----------------------------------------------------------------------------------------------------
Net investment income 0.02%(a)
- ----------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.28%(a)
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $100,382
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 29%
- ----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993**
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.52
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment loss (0.008)
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.698
- ---------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.690
- ---------------------------------------------------------------------------------------------------- ------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.000)
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.21
- ---------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 6.56%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------
Expenses 1.33%(a)
- ----------------------------------------------------------------------------------------------------
Net investment loss (0.19)%(a)
- ----------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.54%(a)
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $15,014
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 29%
- ----------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(c) Represents portfolio turnover rate for the entire Fund.
(See Notes which are an integral part of the Financial Statements)
THE SHAWMUT FUNDS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The Shawmut Funds (the "Trust") is registered under the Investment Company Act
of 1940, as amended, as an open-end management investment company. The Trust
consists of eleven separate portfolios (hereinafter each individually referred
to as a "Fund" or collectively as the "Funds") at October 31, 1993, as follows:
Shawmut Connecticut Municipal Money Market Fund ("Connecticut Municipal Money
Market Fund")
Shawmut Massachusetts Municipal Money Market Fund ("Massachusetts Municipal
Money Market Fund")
Shawmut Fixed Income Fund ("Fixed Income Fund")
Shawmut Growth and Income Equity Fund ("Growth and Income Equity Fund")
Shawmut Growth Equity Fund ("Growth Equity Fund")
Shawmut Intermediate Government Income Fund ("Intermediate Government Income
Fund")
Shawmut Limited Term Income Fund ("Limited Term Income Fund")
Shawmut Prime Money Market Fund ("Prime Money Market Fund")
Shawmut Small Capitalization Equity Fund ("Small Capitalization Equity Fund")
Shawmut Connecticut Intermediate Municipal Income Fund ("Connecticut
Intermediate Municipal Income Fund")
Shawmut Massachusetts Intermediate Municipal Income Fund ("Massachusetts
Intermediate Municipal Income Fund")
The financial statements of Connecticut Intermediate Municipal Income Fund and
Massachusetts Intermediate Municipal Income Fund are presented separately.
The assets of each Fund of the Trust are segregated and a shareholder's interest
is limited to the Fund in which shares are held.
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"). Investment Shares are identical in all respects to Trust Shares except
that Investment Shares are sold pursuant to a distribution plan ("Plan") adopted
in accordance with Investment Company Act Rule 12b-1. Under the Plan, the Funds
pay Federated Securities Corp. (the "Distributor") a fee at an annual rate up to
0.50 of 1% of the average daily net assets of the Investment Shares to finance
any activity which is principally intended to result in the sale of Investment
Shares.
The Trust Shares of the Connecticut Municipal Money Market Fund were not being
offered as October 31, 1993.
(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. The
policies are in conformity with generally accepted accounting principles.
<TABLE>
<S> <C>
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
A. INVESTMENT VALUATIONS--Listed equity securities are valued at the last sale price reported
on national securities exchanges. Unlisted or listed securities for which there were no
sales on the valuation date are valued at the mean between bid and asked prices. Listed
Corporate bonds and other fixed income securities are valued at the last sale price reported
on a national securities exchange on that day, if available. Unlisted bonds and other fixed
income securities are valued at the mean between the bid and asked prices provided by an
independent pricing service. U.S. government obligations generally are valued at the mean
between the over-the-counter bid and asked prices as furnished by an independent pricing
service. Short-term obligations are generally valued at the mean between bid and asked
prices as furnished by an independent pricing service. Short-term obligations with
maturities of 60 days or less are valued at amortized cost, which approximates value.
Investments in other regulated investment companies are valued at net asset value.
The money market funds use the amortized cost method to value their portfolio securities in
accordance with Rule 2a-7 under the Investment Company Act of 1940.
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 vault, all securities as collateral held 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 at least equals the principal amount of the
repurchase transaction, 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
guidelines established by 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. INCOME--Dividend income for Growth and Income Equity Fund, Growth Equity Fund, and Small
Capitalization Equity Fund is recorded on the ex-dividend date. Interest income is recorded
on the accrual basis and includes discount earned, less any premium.
Interest income for Fixed Income Fund, Intermediate Government Income Fund, and Limited Term
Income Fund is recorded on the accrual basis and includes discount earned less any premium,
on short-term obligations, and original issue discount on all other debt securities.
Interest income for Connecticut Municipal Money Market Fund, Massachusetts Municipal Money
Market Fund, and Prime Money Market Fund is recorded on the accrual basis and includes
discount earned less any premium plus net realized gains, if any.
D. FEDERAL TAXES--It is the policy of the Funds to comply with the provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute to shareholders
each year substantially all of their taxable income, including any net realized gain on
investments. Accordingly, no provision for federal tax is necessary.
At October 31, 1993 Intermediate Government Income Fund and Limited Term Income Fund, for
federal tax purposes, had capital loss carryforwards of $54,371 and $310,753, respectively,
which will reduce the Funds' taxable income arising from a future net realized gain on
investments, if any, to the extent permitted by the Internal Revenue Code, and thus will
reduce the amount of the distributions to shareholders which would otherwise be necessary to
relieve the Funds of any liability for federal tax. Pursuant to the Code, such capital loss
carryforward will expire in 2001.
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in when-issued or
delayed delivery transactions. The Funds will record when-issued securities 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.
</TABLE>
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
F. DEFERRED EXPENSES--The costs incurred by each Fund with respect to its initial registration,
excluding the initial expense of registering the shares, have been deferred and are being
amortized using the straight-line method over a period of five years from each Fund's
commencement date.
G. EXPENSES--Expenses of the Funds (other than distribution service fees) and waivers and
reimbursements, if any, are allocated to each class of shares based on their relative daily
average net assets for the period. Expenses incurred by the Funds which do not specifically
relate to an individual fund are allocated among all Funds based on a Fund's relative net
asset value size or as deemed appropriate by the administrator.
H. OTHER--Investment transactions are accounted for on the date of the transaction.
</TABLE>
(3) DIVIDENDS
Dividends and distributions are declared and paid quarterly to all shareholders
invested in Growth and Income Equity Fund, Growth Equity Fund, and Small
Capitalization Equity Fund on the record date. Connecticut Municipal Money
Market Fund, Massachusetts Municipal Money Market Fund, Prime Money Market Fund
compute their net income daily and, immediately prior to the calculation of
their net asset value at the close of business, declare and record dividends to
shareholders of record at the time of the previous computation of the Funds' net
asset value. Payment of dividends is made monthly in cash, or in additional
shares at the net asset value on the payable date. Dividends and distributions
are declared and paid monthly to all shareholders invested in Fixed Income Fund,
Intermediate Government Income Fund and Limited Term Income Fund. Dividends are
recorded on the ex-dividend date.
Capital gains realized by Fixed Income Fund, Growth and Income Equity Fund,
Growth Equity Fund, Intermediate Government Income Fund, Limited Term Income
Fund, and Small Capitalization Fund, if any, are distributed proportionately to
each class of shares at least once every twelve months. Dividends will be
reinvested in additional shares of the same class at the ex-dividend date net
asset value without a sales charge unless cash payments are requested by
shareholders in writing to the Funds.
The amount shown in the financial statements for net investment income for the
period ended October 31, 1993 differ from those determined for tax purposes
because of certain timing differences. This resulted in distributions to
shareholders in excess of net investment income which were recorded for
financial statement purposes only. This distribution does not represent a return
of capital for federal income tax purposes.
(4) 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
Fund and separate class of shares. Transactions in Fund shares were as follows:
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
For the Period Ended October 31, 1993:
<TABLE>
<CAPTION>
CONNECTICUT MUNICIPAL MASSACHUSETTS MUNICIPAL
MONEY MARKET MONEY MARKET FIXED INCOME
FUND FUND FUND
--------------------------- ----------------------------- ---------------------------
TRUST SHARES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ------------------------------- ---------- ------------ ------------ ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 150 $ 150 1,236,303 $ 1,236,303 10,214,367 $103,565,799
- ------------------------------
Shares issued to shareholders
electing to receive payments of
dividends in fund shares -- -- 580 580 -- --
- ------------------------------
Shares redeemed -- -- -- -- (1,448,674) (15,079,071)
- ------------------------------ --------- ----------- ---------- ----------- --------- -----------
150 $ 150 1,236,883 $ 1,236,883 8,765,693 $ 88,486,728
--------- ----------- ---------- ----------- --------- -----------
INVESTMENT SHARES
- ------------------------------
Shares Sold 6,678,677 $ 6,678,677 -- $ -- 930,761 $ 9,677,962
- ------------------------------
Shares issued to shareholders
electing to receive payments of
dividends in fund shares 3,772 3,772 -- -- 14,366 150,253
- ------------------------------
Shares redeemed (100,536) (100,536) -- -- (39,932) (415,729)
- ------------------------------ --------- ----------- ---------- ----------- --------- -----------
6,581,913 $ 6,581,913 -- -- 905,195 $ 9,412,486
--------- ----------- ---------- ----------- --------- -----------
Change in net assets resulting
from fund share transactions 6,582,063 $ 6,582,063 1,236,883 $ 1,236,883 9,670,888 $ 97,899,214
--------- ----------- ---------- ----------- --------- -----------
</TABLE>
For the Period Ended October 31, 1993:
<TABLE>
<CAPTION>
GROWTH AND INCOME INTERMEDIATE GOVERNMENT
EQUITY FUND GROWTH EQUITY FUND INCOME FUND
--------------------------- ----------------------------- ---------------------------
TRUST SHARES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ------------------------------- ---------- ------------ ------------ ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 15,585,818 $157,356,704 3,558,465 $ 35,585,725 7,286,148 $ 73,447,437
- ------------------------------
Shares issued to shareholders
electing to receive payments of
dividends in fund shares -- -- -- -- -- --
- ------------------------------
Shares redeemed (1,828,108) (18,850,279) (1,577,619) (15,770,615) (1,202,759) (12,271,381)
- ------------------------------ --------- ----------- ---------- ----------- --------- -----------
13,757,710 $138,506,425 1,980,846 $ 19,815,110 6,083,389 $ 61,176,056
--------- ----------- ---------- ----------- --------- -----------
INVESTMENT SHARES
- ------------------------------
Shares Sold 1,587,317 $ 16,428,060 461,439 $ 4,534,746 1,429,918 $ 14,626,488
- ------------------------------
Shares issued to shareholders
electing to receive payments of
dividends in fund shares 12,941 134,565 151 1,520 21,484 219,918
- ------------------------------
Shares redeemed (77,389) (806,371) (20,044) (200,311) (104,722) (1,070,135)
- ------------------------------ --------- ----------- ---------- ----------- --------- -----------
1,522,869 $ 15,756,254 441,546 $ 4,335,955 1,346,680 $ 13,776,271
--------- ----------- ---------- ----------- --------- -----------
Change in net assets resulting
from fund share transactions 15,280,579 $154,262,679 2,422,392 $ 24,151,065 7,430,069 $ 74,952,327
--------- ----------- ---------- ----------- --------- -----------
</TABLE>
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
For the Period ended October 31, 1993:
<TABLE>
<CAPTION>
LIMITED TERM PRIME MONEY SMALL CAPITALIZATION
INCOME FUND MARKET FUND EQUITY FUND
--------------------------- ----------------------------- ---------------------------
TRUST SHARES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ------------------------------- ---------- ------------ ------------ ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 8,951,067 $ 89,744,129 615,788,528 $615,788,528 9,429,143 $ 94,833,359
- ------------------------------
Shares issued to shareholders
electing to receive payments of
dividends in fund shares -- -- 2 2 -- --
- ------------------------------
Shares redeemed (2,252,939) (22,657,941) (358,037,205) (358,037,205) (476,251) (5,009,041)
- ------------------------------ --------- ----------- ---------- ----------- --------- -----------
6,698,128 $ 67,086,188 257,751,325 $257,751,325 8,952,892 $ 89,824,318
--------- ----------- ---------- ----------- --------- -----------
INVESTMENT SHARES
- ------------------------------
Shares Sold 402,814 $ 4,045,452 35,767,491 $ 35,767,491 1,406,367 $ 14,346,918
- ------------------------------
Shares issued to shareholders
electing to receive payments of
dividends in fund shares 4,558 45,663 94,349 94,349 -- --
- ------------------------------
Shares redeemed (21,559) (216,370) (7,103,527) (7,103,527) (67,162) (692,557)
- ------------------------------ --------- ----------- ---------- ----------- --------- -----------
385,813 $ 3,874,745 28,758,313 $ 28,758,313 1,339,205 $ 13,654,361
--------- ----------- ---------- ----------- --------- -----------
Change in net assets resulting
from fund share transactions 7,083,941 $ 70,960,933 286,509,638 $286,509,638 10,292,097 $103,478,679
--------- ----------- ---------- ----------- --------- -----------
</TABLE>
(5) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
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. The Adviser will waive its investment advisory
fee on assets invested in securities of open-end investment companies. The
Adviser can terminate these voluntary waivers of expenses at any time at its
sole discretion. The Adviser has also undertaken to reimburse the Funds for
operating expenses in excess of limitations established by certain states. For
the period ended October 31, 1993, the Adviser earned and voluntarily waived the
following fees:
<TABLE>
<CAPTION>
ADVISER
ADVISER FEE
ANNUAL FEE VOLUNTARILY
FUND RATE* EARNED WAIVED
- -------------------------------------------------------------- ------ ---------- -----------
<S> <C> <C> <C>
Connecticut Municipal Money Market Fund 0.50% $ 1,104 $ 1,104
- --------------------------------------------------------------
Massachusetts Municipal Money Market Fund 0.50% 134 134
- --------------------------------------------------------------
Fixed Income Fund 0.80% 605,022 169,100
- --------------------------------------------------------------
Growth and Income Equity Fund 1.00% 1,191,845 319,550
- --------------------------------------------------------------
Growth Equity Fund 1.00% 222,953 75,986
- --------------------------------------------------------------
Intermediate Government Income Fund 0.80% 443,271 122,880
- --------------------------------------------------------------
Limited Term Income Fund 0.80% 411,275 116,939
- --------------------------------------------------------------
Prime Money Market Fund 0.50% 1,128,024 270,978
- --------------------------------------------------------------
Small Capitalization Equity Fund 1.00% 817,430 230,774
- --------------------------------------------------------------
</TABLE>
*As a percentage of average daily net assets
In addition, the Adviser reimbursed Connecticut Municipal Money Market Fund and
Massachusetts Municipal Money Market Fund $10,084 and $9,261, respectively, of
other operating expenses.
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
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. For the period ended October 31, 1993, FAS earned and
voluntarily waived the following fees:
<TABLE>
<CAPTION>
ADMINISTRATIVE
FEE
ADMINISTRATIVE VOLUNTARILY
FUND FEE EARNED WAIVED
- ---------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Connecticut Municipal Money Market Fund $ 265 $ 265
- ----------------------------------------------------------------
Massachusetts Municipal Money Market Fund 32 32
- ----------------------------------------------------------------
Fixed Income Fund 94,878 --
- ----------------------------------------------------------------
Growth and Income Equity Fund 149,519 --
- ----------------------------------------------------------------
Growth Equity Fund 28,063 28,063
- ----------------------------------------------------------------
Intermediate Government Income Fund 69,486 --
- ----------------------------------------------------------------
Limited Term Income Fund 64,554 --
- ----------------------------------------------------------------
Prime Money Market Fund 283,923 --
- ----------------------------------------------------------------
Small Capitalization Equity Fund 102,587 --
- ----------------------------------------------------------------
</TABLE>
Shawmut Bank, N.A. is the Trust's custodian. For the period ended October 31,
1993, Shawmut Bank, N.A. earned the following fees:
<TABLE>
<CAPTION>
CUSTODIAN FEE
CUSTODIAN FEE VOLUNTARILY
FUND EARNED WAIVED
- ---------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Connecticut Municipal Money Market Fund $ 44 $ 44
- ----------------------------------------------------------------
Massachusetts Municipal Money Market Fund 5 5
- ----------------------------------------------------------------
Fixed Income Fund 8,011 --
- ----------------------------------------------------------------
Growth and Income Equity Fund 10,719 --
- ----------------------------------------------------------------
Growth Equity Fund 4,900 --
- ----------------------------------------------------------------
Intermediate Government Income Fund 6,534 --
- ----------------------------------------------------------------
Limited Term Income Fund 5,350 --
- ----------------------------------------------------------------
Prime Money Market Fund 15,717 --
- ----------------------------------------------------------------
Small Capitalization Equity Fund 7,827 --
- ----------------------------------------------------------------
</TABLE>
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
Expenses of organizing the Funds were borne initially by FAS. The Funds have
agreed to reimburse the Administrator for the organizational expenses initially
borne by the Administrator during the five year period following December 1,
1992, when the Trust's registration statement first became effective. For the
period ended October 31, 1993, the Funds paid FAS as follows:
<TABLE>
<CAPTION>
INITIAL ORGANIZATIONAL
ORGANIZATIONAL EXPENSES
FUND EXPENSES REIMBURSED
- ---------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Connecticut Municipal Money Market Fund $ 27,716 $ 154
- ----------------------------------------------------------------
Massachusetts Municipal Money Market Fund 16,751 93
- ----------------------------------------------------------------
Fixed Income Fund 40,086 2,227
- ----------------------------------------------------------------
Growth and Income Equity Fund 39,753 2,209
- ----------------------------------------------------------------
Growth Equity Fund 38,503 2,139
- ----------------------------------------------------------------
Intermediate Government Income Fund 39,950 2,219
- ----------------------------------------------------------------
Limited Term Income Fund 38,183 2,121
- ----------------------------------------------------------------
Prime Money Market Fund 37,081 2,060
- ----------------------------------------------------------------
Small Capitalization Equity Fund 37,360 2,076
- ----------------------------------------------------------------
</TABLE>
The Funds have adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Funds will reimburse Federated
Securities Corp. ("FSC"), the Funds' principal distributor, from the assets of
the Investment Shares of the Funds, for fees it paid which relate to the
distribution and administration of the Funds' Investment Shares. The Plan
provides that the Funds may incur distribution expenses up to 0.50 of 1% of the
average daily net assets of the Investment Shares annually, to pay commissions,
maintenance fees and to compensate the distributor. For the period ended October
31, 1993, FSC earned the following in distribution service fees:
<TABLE>
<CAPTION>
DISTRIBUTION DISTRIBUTION
SERVICES FEE SERVICES FEE
FUND EARNED WAIVED
- ---------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Connecticut Municipal Money Market Fund $1,104 $ 552
- ----------------------------------------------------------------
Massachusetts Municipal Money Market Fund -- --
- ----------------------------------------------------------------
Fixed Income Fund 17,497 8,749
- ----------------------------------------------------------------
Growth and Income Equity Fund 33,658 16,829
- ----------------------------------------------------------------
Growth Equity Fund 8,860 4,431
- ----------------------------------------------------------------
Intermediate Government Income Fund 24,926 12,463
- ----------------------------------------------------------------
Limited Term Income Fund 5,779 2,889
- ----------------------------------------------------------------
Prime Money Market Fund 20,984 10,492
- ----------------------------------------------------------------
Small Capitalization Equity Fund 29,532 14,766
- ----------------------------------------------------------------
</TABLE>
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
Federated Services Company is the transfer agent and dividend disbursing agent
for the Funds. It also provides certain accounting and recordkeeping services
with respect to the Funds' portfolio of investments. For the period ended
October 31, 1993, Federated Services Company received for its services the
following fees:
<TABLE>
<CAPTION>
TRANSFER
AND
DIVIDEND
DISBURSING
AGENT RECORDKEEPING
FEES FEES
FUND EARNED EARNED
- ------------------------------------------------------------------ -------- --------------------
<S> <C> <C>
Connecticut Municipal Money Market Fund $ 2,275 $ 5,555
- ------------------------------------------------------------------
Massachusetts Municipal Money Market Fund 2,200 3,560
- ------------------------------------------------------------------
Fixed Income Fund 21,919 51,733
- ------------------------------------------------------------------
Growth and Income Equity Fund 26,326 52,054
- ------------------------------------------------------------------
Growth Equity Fund 21,555 44,314
- ------------------------------------------------------------------
Intermediate Government Income Fund 22,159 47,980
- ------------------------------------------------------------------
Limited Term Income Fund 21,293 48,418
- ------------------------------------------------------------------
Prime Money Market Fund 24,417 63,702
- ------------------------------------------------------------------
Small Capitalization Equity Fund 27,082 64,580
- ------------------------------------------------------------------
</TABLE>
Certain Officers and Directors of the Trust are Officers and Directors of FAS,
Federated Services Company and FSC.
(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended October 31, 1993, were as follows:
<TABLE>
<CAPTION>
GROWTH AND INTERMEDIATE SMALL
FIXED INCOME INCOME EQUITY GROWTH EQUITY GOVERNMENT LIMITED TERM CAPITALIZATION
FUND FUND FUND INCOME FUND INCOME FUND EQUITY FUND
- ----------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Purchases $ 117,462,974 $ 185,687,329 $ 40,554,745 $ 93,825,692 $ 96,419,961 $ 121,969,157
- ----------------- ------------- ------------- ------------- ------------- ------------- -------------
Sales $ 26,535,096 $ 46,091,080 $ 17,234,179 $ 17,683,739 $ 28,906,097 $ 24,713,078
- ----------------- ------------- ------------- ------------- ------------- ------------- -------------
</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, 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 Connecticut Municipal Money
Market Fund, Shawmut Massachusetts Municipal Money Market Fund, Shawmut Fixed
Income Fund, Shawmut Growth and Income Equity Fund, Shawmut Growth Equity Fund,
Shawmut Intermediate Government Income Fund, Shawmut Limited Term Income Fund,
Shawmut Prime Money Market Fund and Shawmut Small Capitalization Equity Fund
(portfolios of The Shawmut Funds, hereafter referred to as the "Funds") at
October 31, 1993, and the results of each of their operations, the changes in
each of their net assets and the financial highlights for the periods then
ended, 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, 1993 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
Boston, Massachusetts
December 17, 1993
SHAWMUT FIXED INCOME FUND
- --------------------------------------------------------------------------------
INVESTMENT RESULTS
OVERVIEW OF THE FINANCIAL MARKETS
For the first ten months of 1993, domestic longer-term bonds provided
a return of 11.8% as measured by the Lehman Brothers Government/Corporate
Index. The stock market for the first ten months was up 9.7% as measured by
the S&P 500 with smaller stocks providing much better returns as the
Russell 2000 Index rose 18.9%. Foreign markets were much stronger than the
U.S. market with the EAFE Index returning 36.2%. Cash equivalents continued
to provide the poorest returns with the 91-day Treasury Bill up only 2.6%
through October 31, 1993. The bond market rally continued to be driven by
accommodative monetary policy, low inflation and progress in reducing the
budget deficit.
As we look into 1994, the key variables that will continue to affect
the direction of the financial markets will be economic growth, both
domestically and internationally and, for the equity markets, the rate of
increase in earnings and dividends. Our view is that the economy, through
1994, will continue to demonstrate moderate but uneven growth with
inflation numbers remaining quite low. Reported corporate earnings should
continue to benefit from the improving economy and improving productivity
into 1994. As to the bond market, we anticipate that short-term rates are
likely to remain low at least until the early part of 1994 with longer-term
treasury rates remaining near their present levels which will result in a
continuing positively sloped yield curve.
MANAGEMENT DISCUSSION AND ANALYSIS
The Shawmut Fixed Income Fund (the "Fund") was established in 1992 to
provide high 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 Index
risk. The market index used for the Fund is the Shearson Lehman Government
Corporate Index.
The period since inception of the Fund in December of 1992 has
experienced rapidly falling interest rates. One of the most pronounced
trends in the bond market has been the more precipitous decline of long
bond rates relative to intermediate term bond rates. During the period
since inception, the Fund was positioned with a risk profile between
95-100% of the market. Returns lagged those of the Fund's benchmark over
the period due to an underweighting of maturities in the long bond sector
which, as mentioned above outperformed their intermediate counterparts.
Also, during a period of falling rates a risk profile greater than the
market was warranted.
The Fund continues to seek out those sectors of the bond market which
offer the best relative value. As of fiscal year end, the Fund is
positioned with a very high percentage of its holdings (78%) in AAA rated
investments. These characteristics provide for a high quality income stream
which is subject to lower principal volatility.
The Fund's management employs a sophisticated discipline for interest
rate anticipation and bond market valuation which should lead to continued
strong returns. At present the Fund's risk position is equal to the market
index. The Fund has also shifted its maturity structure recently to benefit
from stable longer maturity rates and gradually increasing short and
intermediate rates.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT FIXED INCOME FUND, INVESTMENT SHARES
AND LEHMAN GOVERNMENT CORPORATE TOTAL INDEX +
Graphic representation "A" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Fixed Income Fund, Investment Shares from
the start of business on 2/12/93 through 10/31/93, on a cumulative basis.
** Represents a hypothetical investment of $10,000 in Shawmut Fixed Income
Fund, Investment Shares, 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 Government Corporate Total Index is adjusted to reflect
reinvestment of dividends on securities in the index.
+ The Lehman Government Corporate Total Index is not adjusted to reflect
sales loads, expenses, or other fees that the SEC requires to be reflected
in the Fund's performance.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT FIXED INCOME FUND, TRUST SHARES,
AND THE LEHMAN GOVERNMENT CORPORATE TOTAL INDEX+
Graphic representation "B" omitted. See appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Fixed Income Fund, Trust Shares from the
start of business on 12/14/92 through 10/31/93, on a cumulative basis.
** The Fund's performance assumes the reinvestment of all dividends and
distributions. The Lehman Government Corporate Total Index is adjusted to
reflect reinvestment of dividends on securities in the index.
+ The Lehman Government Corporate Total Index is not adjusted to reflect
sales loads, expenses, or other fees that the SEC requires to be reflected
in the Fund's performance.
SHAWMUT GROWTH AND INCOME EQUITY FUND
- --------------------------------------------------------------------------------
INVESTMENT RESULTS
OVERVIEW OF THE FINANCIAL MARKETS
For the first ten months of 1993, domestic longer-term bonds provided
a return of 11.8% as measured by the Lehman Brothers Government/Corporate
Index. The stock market for the first ten months was up 9.7% as measured by
the S&P 500 with smaller stocks providing much better returns as the
Russell 2000 Index rose 18.9%. Foreign markets were much stronger than the
U.S. market with the EAFE Index returning 36.2%. Cash equivalents continued
to provide the poorest returns with the 91-day Treasury Bill up only 2.6%
through October 31, 1993. The bond market rally continued to be driven by
accommodative monetary policy, low inflation and progress in reducing the
budget deficit.
As we look into 1994, the key variables that will continue to affect
the direction of the financial markets will be economic growth, both
domestically and internationally and, for the equity markets, the rate of
increase in earnings and dividends. Our view is that the economy, through
1994, will continue to demonstrate moderate but uneven growth with
inflation numbers remaining quite low. Reported corporate earnings should
continue to benefit from the improving economy and improving productivity
into 1994. As to the bond market, we anticipate that short-term rates are
likely to remain low at least until the early part of 1994 with longer-term
treasury rates remaining near their present levels which will result in a
continuing positively sloped yield curve.
MANAGEMENT DISCUSSION AND ANALYSIS
Since its inception in December 1992, the Trust Shares of Shawmut
Growth and Income Equity Fund (the "Fund") has achieved a positive return
of almost 8.8%, although it has lagged the overall market for several
reasons. Management perceived that large-capitalization equities typically
considered by the Fund were richly valued and consequently remained less
than fully invested during this period. In addition, equities of companies
with lower S&P common stock ratings were favored by many mutual funds
during this period and greatly outperformed equities of companies with
higher S&P common stock ratings, such as those favored by the Fund.
Furthermore, management underweighted the electric utility sector, which
performed exceptionally well during this period because of lower than
anticipated interest rates.
Looking forward, management believes that the Fund is well positioned
for future growth. In management's view, prices of many equities held by
the Fund already reflect the high cost of corporate restructuring and are
poised to benefit from increased corporate productivity and reduced costs.
Moreover, management expects that its conservative policy of constructing a
portfolio of equities with lower-than-market price/earnings ratios and
higher-than-market projected growth will be rewarded in due course,
especially if the economy continues its momentum in 1994. If the market
corrects, management expects that a superior performance will be rendered
by equities with better valuation characteristics, such as those included
in the Fund. Finally, by underweighting electric utilities, management
anticipates that the Fund will be less vulnerable to any uptick in interest
rates which might result from a continuation of recently strong economic
growth.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT GROWTH AND INCOME EQUITY FUND, INVESTMENT SHARES,
STANDARD & POOR'S 500 INDEX+
Graphic representation "C" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Growth and Income Equity Fund, Investment
Shares, from the start of business on 2/12/93 through 10/31/93, on a
cumulative basis.
** Represents a hypothetical investment of $10,000 in Shawmut Growth and
Income Equity Fund, Investment Shares, 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 is 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 SEC requires to be reflected in the Fund's
performance.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT GROWTH AND INCOME EQUITY FUND, TRUST SHARES,
STANDARD & POOR'S 500 INDEX+
Graphic representation "D" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Growth and Income Equity Fund, Trust Shares
from the start of business on 12/14/92 through 10/31/93, on a cumulative
basis.
** The Fund's performance assumes the reinvestment of all dividends and
distributions. The Standard & Poor's 500 Index is 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 SEC requires to be reflected in the Fund's
performance.
SHAWMUT GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
INVESTMENT RESULTS
OVERVIEW OF THE FINANCIAL MARKETS
For the first ten months of 1993, domestic longer-term bonds provided
a return of 11.8% as measured by the Lehman Brothers Government/Corporate
Index. The stock market for the first ten months was up 9.7% as measured by
the S&P 500 with smaller stocks providing much better returns as the
Russell 2000 Index rose 18.9%. Foreign markets were much stronger than the
U.S. market with the EAFE Index returning 36.2%. Cash equivalents continued
to provide the poorest returns with the 91-day Treasury Bill up only 2.6%
through October 31, 1993. The bond market rally continued to be driven by
accommodative monetary policy, low inflation and progress in reducing the
budget deficit.
As we look into 1994, the key variables that will continue to affect
the direction of the financial markets will be economic growth, both
domestically and internationally and, for the equity markets, the rate of
increase in earnings and dividends. Our view is that the economy, through
1994, will continue to demonstrate moderate but uneven growth with
inflation numbers remaining quite low. Reported corporate earnings should
continue to benefit from the improving economy and improving productivity
into 1994. As to the bond market, we anticipate that short-term rates are
likely to remain low at least until the early part of 1994 with longer-term
treasury rates remaining near their present levels which will result in a
continuing positively sloped yield curve.
MANAGEMENT DISCUSSION AND ANALYSIS
The Shawmut Growth Equity Fund (the "Fund") was established in 1992 to
provide the opportunity for investment in a diversified portfolio of stocks
of companies with superior growth characteristics. The typical company in
the Fund has an earnings growth rate that is at least 150% of the typical
company represented in the Standard and Poor's 500 index.
The Fund (Trust Shares) returned 5.1% since its inception on December
14, 1992. While the Fund's return lagged the market's return for the same
period, all of the Fund's underperformance occurred in the first four
months (January through April). During this period, investors sold growth
stocks in order to minimize exposure to President Clinton's prospective
health care plan and to capitalize on what many investors felt would be the
beginning of a strong economic recovery by buying cyclical stocks. As the
inconsistent pattern of economic recovery unfolded, investors began moving
back into growth stocks, which exhibit the consistent and strong earnings
growth performance that investors seek. As a result, the remaining six
months saw the Fund outperform in each month as growth stocks recovered
from their wholesale liquidation.
Looking to 1994, we continue to see gradual economic improvement; but
one that does not effect all industries equally. Some industries will do
far better than the overall economy and some will falter. We believe that
companies which provide "added-value" goods and services to cautious
individual and institutional consumers will continue to have an advantage
over companies that will be adversely affected by the ramifications of
higher tax rates and increased government regulation.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT GROWTH EQUITY FUND, INVESTMENT SHARES,
Graphic representation "E" omitted. See Appendix.
AND THE S&P 500 INDEX +
Past performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Growth Equity Fund, Investment Shares from the
start of business on 2/12/93 through 10/31/93, on a cumulative basis.
** Represents a hypothetical investment of $10,000 in Shawmut Growth Equity
Fund, Investment Shares, 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 S&P 500 is
adjusted to reflect reinvestment of dividends on securities in the index.
+ The S&P 500 Index is not adjusted to reflect sales loads, expenses, or other
fees that the SEC requires to be reflected in the Fund's performance.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT GROWTH EQUITY FUND, TRUST SHARES, AND THE S&P 500 INDEX +
Graphic representation "F" omitted. See Appendix.
Past performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Growth Equity Fund, Trust Shares from the
start of business on 12/14/92 through 10/31/93, on a cumulative basis.
** The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 is adjusted to reflect reinvestment of dividends
on securities in the index.
+ The S&P 500 Index is not adjusted to reflect sales loads, expenses, or other
fees that the SEC requires to be reflected in the Fund's performance.
SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
INVESTMENT RESULTS
OVERVIEW OF THE FINANCIAL MARKETS
For the first ten months of 1993, domestic longer-term bonds provided
a return of 11.8% as measured by the Lehman Brothers Government/Corporate
Index. The stock market for the first ten months was up 9.7% as measured by
the S&P 500 with smaller stocks providing much better returns as the
Russell 2000 Index rose 18.9%. Foreign markets were much stronger than the
U.S. market with the EAFE Index returning 36.2%. Cash equivalents continued
to provide the poorest returns with the 91-day Treasury Bill up only 2.6%
through October 31, 1993. The bond market rally continued to be driven by
accommodative monetary policy, low inflation and progress in reducing the
budget deficit.
As we look into 1994, the key variables that will continue to affect
the direction of the financial markets will be economic growth, both
domestically and internationally and, for the equity markets, the rate of
increase in earnings and dividends. Our view is that the economy, through
1994, will continue to demonstrate moderate but uneven growth with
inflation numbers remaining quite low. Reported corporate earnings should
continue to benefit from the improving economy and improving productivity
into 1994. As to the bond market, we anticipate that short-term rates are
likely to remain low at least until the early part of 1994 with longer-term
treasury rates remaining near their present levels which will result in a
continuing positively sloped yield curve.
MANAGEMENT DISCUSSION OF PERFORMANCE
Shawmut Intermediate Government Income Fund (the "Fund") was
established in December 1992 to provide the opportunity to garner 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 investments relative to an
appropriate broad-based securities market index. The 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 Intermediate Government Income Fund, the market index used is the
Shearson Lehman Intermediate Government Corporate Index.
During the period since the inception of the Fund in December of 1992,
the trend in interest rates has been down. During the period, the Fund
remained cautious opting for a risk profile that was 90-95% of the market
and which included government guaranteed mortgage-backed securities which
generated a high level of income. Both of these strategies underperformed
the market. During a period of declining rates, a risk profile greater than
the market was warranted. In addition, the purchase of securities with
income as a relatively higher portion of returns underperformed the market
since principal appreciation with these types of securities is lower.
Finally, mortgage-backed securities underperformed the market as
prepayments were faster than expected.
As of fiscal year-end, the Fund was positioned at 95% of the risk of
the Shearson Lehman Intermediate Government Corporate Index. In addition,
the position in mortgage-backed securities had been reduced. Management
feels that a risk position slightly less that the market will serve well
going forward as interest rates rise slightly. The Fund will continue to
search out government securities with high income as rates return to more
stable levels.
In addition, management is confident that the risk control techniques
which have worked well over time will allow shareholders to benefit from
strong relative returns over the long term.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND, INVESTMENT SHARES,
LEHMAN INTERMEDIATE GOVERNMENT CORPORATE INDEX +
Graphic representation "G" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Intermediate Government Income Fund,
Investment Shares from the start of business on 2/12/93 through 10/31/93,
on a cumulative basis.
** Represents a hypothetical investment of $10,000 in Shawmut Intermediate
Government Income Fund, Investment Shares, 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 Intermediate Government Corporate Index is
adjusted to reflect reinvestment of dividends on securities in the index.
+ The Lehman Intermediate Government Corporate Index is not adjusted to
reflect sales loads, expenses, or other fees that the SEC requires to be
reflected in the Fund's performance.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND, TRUST SHARES,
LEHMAN INTERMEDIATE GOVERNMENT CORPORATE INDEX +
Graphic representation "H" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Intermediate Government Income Fund, Trust
Shares from the start of business on 12/14/92 through 10/31/93, on a
cumulative basis.
** The Fund's performance assumes the reinvestment of all dividends and
distributions. The Lehman Intermediate Government Corporate Index is
adjusted to reflect reinvestment of dividends on securities in the index.
+ The Lehman Intermediate Government Corporate Index is not adjusted to
reflect sales loads, expenses, or other fees that the SEC requires to be
reflected in the Fund's performance.
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
INVESTMENT RESULTS
OVERVIEW OF THE FINANCIAL MARKETS
For the first ten months of 1993, domestic longer-term bonds provided a
return of 11.8% as measured by the Lehman Brothers Government/Corporate
Index. The stock market for the first ten months was up 9.7% as measured by
the S&P 500 with smaller stocks providing much better returns as the
Russell 2000 Index rose 18.9%. Foreign markets were much stronger than the
U.S. market with the EAFE Index returning 36.2%. Cash equivalents continued
to provide the poorest returns with the 91-day Treasury Bill up only 2.6%
through October 31, 1993. The bond market rally continued to be driven by
accommodative monetary policy, low inflation and progress in reducing the
budget deficit.
As we look into 1994, the key variables that will continue to affect
the direction of the financial markets will be economic growth, both
domestically and internationally and, for the equity markets, the rate of
increase in earnings and dividends. Our view is that the economy, through
1994, will continue to demonstrate moderate but uneven growth with
inflation numbers remaining quite low. Reported corporate earnings should
continue to benefit from the improving economy and improving productivity
into 1994. As to the bond market, we anticipate that short-term rates are
likely to remain low at least until the early part of 1994 with longer-term
treasury rates remaining near their present levels which will result in a
continuing positively sloped yield curve.
MANAGEMENT DISCUSSION AND ANALYSIS
The Shawmut Small Capitalization Equity Fund (the "Fund") was
established in December 1992 to invest in companies that are judged to be
undervalued. At the point of investment, these companies will have a market
capitalization of less than $1 billion.
The Fund return of 12.1% (Trust Shares) for the period since inception
(December 14, 1992) is below the market average. The investment philosophy
used in managing the Fund is value oriented. We tend to invest in
out-of-favor companies with an expectation of fundamental improvement. Our
approach necessitates being early investors in these companies. In many
cases, the economy has not improved sufficiently to lead to a consistency
of earnings growth; thus many of these stocks have not done well in this
period.
The initial period following Fund inception saw the medical stocks
impacted sharply due to concerns over health care reform. While our
holdings in this area have been reduced considerably they provided a
material negative impact to the Fund due to the magnitude of decline. As
the year progressed, we have seen improvement in the Fund's performance and
feel that we are positioned well for an improving economy. Our recent focus
has been in the more cyclical areas including specialty chemicals and
papers.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT SMALL CAPITALIZATION EQUITY FUND, INVESTMENT SHARES
AND THE S&P 500 INDEX+
Graphic representation "I" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Small Capitalization Equity Fund, Investment
Shares from the start of business on 02/12/93 through 10/31/93, on a
cumulative basis.
** Represents a hypothetical investment of $10,000 in Shawmut Small
Capitalization Equity Fund, Investment Shares, 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 S&P 500 Index is adjusted to reflect reinvestment of
dividends on securities in the index.
+ The S&P 500 Index is not adjusted to reflect sales loads, expenses, or
other fees that the SEC requires to be reflected in the Fund's performance.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT SMALL CAPITALIZATION EQUITY FUND, TRUST SHARES
AND THE S&P 500 INDEX+
Graphic representation "J" omitted. See Appendix.
Past Performance is not indicative 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.
* Reflects operations of Shawmut Small Capitalization Equity Fund, Trust
Shares from the start of business on 12/14/92 through 10/31/93, on a
cumulative basis.
** The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 Index is adjusted to reflect reinvestment of
dividends on securities in the index.
+ The S&P 500 Index is not adjusted to reflect sales loads, expenses, or
other fees that the SEC requires to be reflected in the Fund's performance.
SHAWMUT LIMITED TERM INCOME FUND
- --------------------------------------------------------------------------------
INVESTMENT RESULTS
OVERVIEW OF THE FINANCIAL MARKETS
For the first ten months of 1993, domestic longer-term bonds provided
a return of 11.8% as measured by the Lehman Brothers Government/Corporate
Index. The stock market for the first ten months was up 9.7% as measured by
the S&P 500 with smaller stocks providing much better returns as the
Russell 2000 Index rose 18.9%. Foreign markets were much stronger than the
U.S. market with the EAFE Index returning 36.2%. Cash equivalents continued
to provide the poorest returns with the 91-day Treasury Bill up only 2.6%
through October 31, 1993. The bond market rally continued to be driven by
accommodative monetary policy, low inflation and progress in reducing the
budget deficit.
As we look into 1994, the key variables that will continue to affect
the direction of the financial markets will be economic growth, both
domestically and internationally and, for the equity markets, the rate of
increase in earnings and dividends. Our view is that the economy, through
1994, will continue to demonstrate moderate but uneven growth with
inflation numbers remaining quite low. Reported corporate earnings should
continue to benefit from the improving economy and improving productivity
into 1994. As to the bond market, we anticipate that short-term rates are
likely to remain low at least until the early part of 1994 with longer-term
treasury rates remaining near their present levels which will result in a
continuing positively sloped yield curve.
MANAGEMENT DISCUSSION AND ANALYSIS
The Shawmut Limited Term Income Fund (the "Fund") was established in
1992 to provide high relative income consistent with a minimum of price
volatility. The Fund pursues a low risk posture by utilizing investment
grade, fixed income securities with average maturities no longer than five
(5) years. The Fund employs an investment discipline which has been used
successfully by Shawmut Bank since 1984. The emphasis of this discipline is
to closely monitor the Fund's risk relative to an appropriate index of
securities which conform to the Fund's guidelines. The risk of the Fund is
limited to a level of no more than 120% or no less than 80% of the index
risk. The Fund is managed relative to the Merrill Lynch 1-5 year Treasury
Index.
During the period since inception, the Fund has changed its risk
benchmark. The Fund's guidelines state that the Fund's average maturity
should not exceed 3 years. For the majority of the period (inception to
September 1993) the benchmark for controlling risk was the Merrill Lynch 1-
3 year Index which has an average maturity of 2 years. Since September
1993, the Fund has used the Merrill Lynch 1-5 year Treasury Index which has
an average maturity of 2.5 years. Performance, therefore, closely matched
the 1-3 year index for the period as the Fund maintained two year average
life for substantially all of the measurement time frame. In future periods
it is expected that results will more closely track the returns of the 1-5
year index.
During the period since December 1992, the trend in interest rates has
been down. Two year Treasury Notes fell from 5.0% to 4.0%. The Fund has
maintained a cautious stance on the market positioning itself with a 90-95%
market risk profile. The Fund's management believed that short rates would
begin to rise as the economy gained some momentum and thus was positioned
in a manner which limited returns. The Fund's management, however, believes
that it will be well positioned to benefit from higher short term rates
which it expects to prevail in the intermediate term.
The Fund's performance also was hampered due to its use of
mortgage-backed securities which provide high income but were negatively
impacted by a faster return of principal than expected as homeowners rushed
to refinance their mortgages. Other bond sectors utilized by the Fund,
including U.S. Treasury and Corporate Notes, performed well for the Fund's
shareholders during the fiscal year. Our well established disciplines to
seek out bond market sectors which will perform well will allow us to
continue to provide solid total returns with minimal price volatility.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT LIMITED TERM INCOME FUND, INVESTMENT SHARES,
AND THE MERRILL LYNCH 1-3 YEAR U.S. TREASURY INDEX+
Graphic representation "K" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Limited Term Income Fund, Investment Shares
from the start of business on 02/12/93 through 10/31/93, on a cumulative
basis.
** Represents a hypothetical investment of $10,000 in Shawmut Limited Term
Income Fund, Investment Shares, 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 is 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 SEC requires to be reflected
in the Fund's performance.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT LIMITED TERM INCOME FUND, TRUST SHARES
AND THE MERRILL LYNCH 1-3 YEAR U.S. TREASURY INDEX+
Graphic representation "L" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Limited Term Income Fund, Trust Shares from
the start of business on 12/14/92 through 10/31/93, on a cumulative basis.
** The Fund's performance assumes the reinvestment of all dividends and
distributions. The Merrill Lynch 1-3 year U.S. Treasury Index is 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 SEC requires to be reflected
in the Fund's performance.
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- ---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
John T. Conroy, Jr. Chairman
William J. Copeland Edward C. Gonzales
James E. Dowd President and Treasurer
Lawrence D. Ellis, M.D. J. Christopher Donahue
Edward L. Flaherty, Jr. Vice President
Edward C. Gonzales Richard B. Fisher
Peter E. Madden Vice President
Gregor F. Meyer John W. McGonigle
Wesley W. Posvar Vice President and Secretary
Marjorie P. Smuts John A. Staley, IV
Vice President
Jeffrey W. Sterling
Vice President and Asst. Treasurer
David M. Taylor
Assistant Treasurer
Robert C. Rosselot
Assistant Secretary
</TABLE>
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Fund's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
Appendix
A. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Fixed Income Fund
Investment Shares on February 12, 1993 would have grown to $10,488
by October 31, 1993. The hypothetical investment is compared to
the Lehman Government Corporate Total Index The "x" axis reflects
the value of the investment and the "y" axis reflects the
computation periods of the investment, beginning on February 12,
1993 and ending October 31, 1993. The right margin, along the "x"
axis reflects the total investment range from $9,000 to $12,000.
The chart further indicates the ending market value attributable
to income and capital gains. Beneath the mountain chart is a
second boxed legend which identifies the fund and the index.
B. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Fixed Income Fund
Trust Shares on December 14, 1992 would have grown to $11,126 by
October 31, 1993. The hypothetical investment is compared to the
Lehman Government Corporate Total Index The "x" axis reflects the
value of the investment and the "y" axis reflects the computation
periods of the investment, beginning on December 14, 1992 and
ending October 31, 1993. The right margin, along the "x" axis
reflects the total investment range from $9,000 to $15,000. The
chart further indicates the ending market value attributable to
income and capital gains. Beneath the mountain chart is a second
boxed legend which identifies the fund and the index.
C. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Growth and Income
Equity Fund Investment Shares on February 12, 1993 would have
grown to $10,195 by October 31, 1993. The hypothetical investment
is compared to the Standard & Poor's 500 Index The "x" axis
reflects the value of the investment and the "y" axis reflects the
computation periods of the investment, beginning on February 12,
1993 and ending October 31, 1993. The right margin, along the "x"
axis reflects the total investment range from $9,000 to $15,000.
The chart further indicates the ending market value attributable
to income and capital gains. Beneath the mountain chart is a
second boxed legend which identifies the fund and the index.
D. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Growth and Income
Equity Fund Trust Shares on December 14, 1992 would have grown to
$10,880 by October 31, 1993. The hypothetical investment is
compared to the Standard & Poor's 500 Index The "x" axis reflects
the value of the investment and the "y" axis reflects the
computation periods of the investment, beginning on December 14,
1992 and ending October 31, 1993. The right margin, along the "x"
axis reflects the total investment range from $9,000 to $15,000.
The chart further indicates the ending market value attributable
to income and capital gains. Beneath the mountain chart is a
second boxed legend which identifies the fund and the index.
E. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Growth Equity
Fund Investment Shares on February 12, 1993 would have grown to
$10,065 by October 31, 1993. The hypothetical investment is
compared to the S&P 500 Index The "x" axis reflects the value of
the investment and the "y" axis reflects the computation periods
of the investment, beginning on February 12, 1993 and ending
October 31, 1993. The right margin, along the "x" axis reflects
the total investment range from $9,000 to $12,000. The chart
further indicates the ending market value attributable to income
and capital gains. Beneath the mountain chart is a second boxed
legend which identifies the fund and the index.
F. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Growth Equity
Fund Trust Shares on December 14, 1992 would have grown to $10,509
by October 31, 1993. The hypothetical investment is compared to
the S&P 500 Index The "x" axis reflects the value of the
investment and the "y" axis reflects the computation periods of
the investment, beginning on December 14, 1992 and ending October
31, 1993. The right margin, along the "x" axis reflects the total
investment range from $9,000 to $12,000. The chart further
indicates the ending market value attributable to income and
capital gains. Beneath the mountain chart is a second boxed
legend which identifies the fund and the index.
G. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Intermediate
Government Income Fund Investment Shares on February 12, 1993
would have grown to $10,236 by October 31, 1993. The hypothetical
investment is compared to the Lehman Intermediate Government
Corporate Index The "x" axis reflects the value of the investment
and the "y" axis reflects the computation periods of the
investment, beginning on February 12, 1993 and ending October 31,
1993. The right margin, along the "x" axis reflects the total
investment range from $9,000 to $15,000. The chart further
indicates the ending market value attributable to income and
capital gains. Beneath the mountain chart is a second boxed
legend which identifies the fund and the index.
H. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Intermediate
Government Income Fund Trust Shares on December 14, 1992 would
have grown to $10,797 by October 31, 1993. The hypothetical
investment is compared to the Lehman Intermediate Government
Corporate Index The "x" axis reflects the value of the investment
and the "y" axis reflects the computation periods of the
investment, beginning on December 14, 1992 and ending October 31,
1993. The right margin, along the "x" axis reflects the total
investment range from $9,000 to $12,000. The chart further
indicates the ending market value attributable to income and
capital gains. Beneath the mountain chart is a second boxed
legend which identifies the fund and the index.
I. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Small
Capitalization Equity Fund Investment Shares on February 12, 1993
would have grown to $10,230 by October 31, 1993. The hypothetical
investment is compared to the S&P 500 Index The "x" axis reflects
the value of the investment and the "y" axis reflects the
computation periods of the investment, beginning on February 12,
1993 and ending October 31, 1993. The right margin, along the "x"
axis reflects the total investment range from $9,000 to $15,000.
The chart further indicates the ending market value attributable
to income and capital gains. Beneath the mountain chart is a
second boxed legend which identifies the fund and the index.
J. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Small
Capitalization Equity Fund Trust Shares on December 14, 1992 would
have grown to $11,212 by October 31, 1993. The hypothetical
investment is compared to the S&P 500 Index The "x" axis reflects
the value of the investment and the "y" axis reflects the
computation periods of the investment, beginning on December 14,
1992 and ending October 31, 1993. The right margin, along the "x"
axis reflects the total investment range from $9,000 to $12,000.
The chart further indicates the ending market value attributable
to income and capital gains. Beneath the mountain chart is a
second boxed legend which identifies the fund and the index.
K. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Limited Term
Income Fund Investment Shares on February 12, 1993 would have
grown to $10,052 by October 31, 1993. The hypothetical investment
is compared to the Merrill Lynch 1-3 Year U.S. Treasury Index The
"x" axis reflects the value of the investment and the "y" axis
reflects the computation periods of the investment, beginning on
February 12, 1993 and ending October 31, 1993. The right margin,
along the "x" axis reflects the total investment range from $9,000
to $15,000. The chart further indicates the ending market value
attributable to income and capital gains. Beneath the mountain
chart is a second boxed legend which identifies the fund and the
index.
L. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Limited Term
Income Fund Investment Shares on December 14, 1992 would have
grown to $10,502 by October 31, 1993. The hypothetical investment
is compared to the Merrill Lynch 1-3 Year U.S. Treasury Index The
"x" axis reflects the value of the investment and the "y" axis
reflects the computation periods of the investment, beginning on
December 14, 1992 and ending October 31, 1993. The right margin,
along the "x" axis reflects the total investment range from $9,000
to $12,000. The chart further indicates the ending market value
attributable to income and capital gains. Beneath the mountain
chart is a second boxed legend which identifies the fund and the
index.
(LOGO)
Recycled Paper
Federated Securities Corp. is the distributor of the funds
3110405 (12/93)
Shawmut
Combined Annual Report
Investment Shares
---------------------------------
Annual Report
October 31, 1993
---------------------------------
Shawmut Connecticut Municipal Money Market Fund
Shawmut Massachusetts Municipal Money Market Fund
Shawmut Fixed Income Fund
Shawmut Growth and Income Equity Fund
Shawmut Growth Equity Fund
Shawmut Intermediate Government Income Fund
Shawmut Prime Money Market Fund
Shawmut Small Capitalization Equity Fund
Shawmut Limited Term Income Fund
nvestmenttAdviser
-------------THE SHARES OFFERED BY THIS PROSPECTUS ARE NOT DEPOSITS OR
OBLIGATIONS OF SHAWMUT BANK, ARE NOT ENDORSED OR GUARANTEED BY SHAWMUT
BANK, AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
NOR ARE THEY INSURED OR GUARANTEED BY THE FEDERAL RESERVE BOARD OR TUAL
FUNDS INVOLVE INVESTMENT RISKS, INCLUDING FLUCTUATIONS IN VALUE AND
EARNINGS, AND THE POSSIBLE LOSS OF PRINCIPAL.
INVESTMENT SHARES OF THE SHAWMUT FUNDS ARE AVAILABLE THROUGH LICENSED
REPRESENTATIVES OF SHAWMUT BROKERAGE, INC., MEMBER NASD/SIPC, AND AN
AFFILIATE OF SHAWMUT BANK.
(LOGO)Shawmut
Shawmut Bank, N.A.
Investment Adviser
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor :
I am pleased to present you with the Annual Report of The Shawmut Funds for the
period ending October 31, 1993. This Report contains complete financial
information--including the Portfolio of Investments--for each Fund.
The Shawmut Funds currently offer eleven investment choices that span the key
financial markets. Total assets in the Funds have increased substantially during
the period--a strong show of shareholder confidence.
Thank you for joining so many other investors who have chosen The Shawmut Funds
to pursue their financial goals. We'll continue to inform you about your
investment on a regular basis. As always, we welcome your questions, comments,
or suggestions.
Sincerely,
Edward C. Gonzales
President
December 8, 1993
SHAWMUT CONNECTICUT MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
- ---------- ---------------------------------------------------------------------------- ----------
<C> <C> <S> <C>
U.S. TREASURY BILLS--96.3%*
- ------------------------------------------------------------------------------------------
$6,343,000 11/4/93 $6,341,519
----------------------------------------------------------------------- ----------
MUTUAL FUND SHARES--3.8%
- ------------------------------------------------------------------------------------------
248,290 Dreyfus Connecticut Municipal Money Market Fund 248,290
----------------------------------------------------------------------- ----------
TOTAL INVESTMENTS, AT VALUE $6,589,809+
----------------------------------------------------------------------- ----------
</TABLE>
+ Also represents cost for federal tax purpose.
* Temporary taxable investments as allowed by the prospectus. (See "Temporary
Investments" in the prospectus.)
Note: The categories of investments are shown as a percentage of net assets
($6,582,063) at
October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
- ---------- ---------------------------------------------------------------------------- ----------
<C> <C> <S> <C>
U.S. TREASURY BILLS--97.4%*
- ------------------------------------------------------------------------------------------
$1,205,000 11/4/93 $1,204,722
----------------------------------------------------------------------- ----------
MUTUAL FUND SHARES--2.8%
- ------------------------------------------------------------------------------------------
35,100 Dreyfus Massachusetts Municipal Money Market Fund 35,100
----------------------------------------------------------------------- ----------
TOTAL INVESTMENTS, AT VALUE $1,239,822+
----------------------------------------------------------------------- ----------
</TABLE>
+ Also represents cost for federal tax purposes.
* Temporary taxable investments as allowed by the prospectus. (See "Temporary
Investments" in the prospectus.)
Note: The categories of investments are shown as a percentage of net assets
($1,236,883) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C>
LONG-TERM U.S. TREASURY OBLIGATIONS--35.9%
- ----------------------------------------------------------------------------------------
U.S. TREASURY NOTES--30.6%
---------------------------------------------------------------------
$3,500,000 5.50%, 7/31/97 $ 3,614,835
---------------------------------------------------------------------
1,050,000 6.00%, 12/31/97 1,102,500
---------------------------------------------------------------------
12,800,000 7.50%, 2/29/96--5/15/2002 14,618,571
---------------------------------------------------------------------
5,600,000 7.75%, 2/15/2001 6,443,472
---------------------------------------------------------------------
4,000,000 7.875%, 11/15/99--8/15/2001 4,634,690
---------------------------------------------------------------------
800,000 * 5.75%, 8/15/2003 819,376
--------------------------------------------------------------------- ------------
Total 31,233,444
--------------------------------------------------------------------- ------------
U.S. TREASURY BONDS--5.2%
---------------------------------------------------------------------
2,000,000 8.125%, 8/15/2019 2,471,240
---------------------------------------------------------------------
2,000,000 11.625%, 11/15/2002 2,879,680
--------------------------------------------------------------------- ------------
Total 5,350,920
--------------------------------------------------------------------- ------------
TOTAL LONG-TERM U.S. TREASURY OBLIGATIONS
(IDENTIFIED COST $34,291,605) 36,584,364
--------------------------------------------------------------------- ------------
LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--25.5%
- ----------------------------------------------------------------------------------------
AGENCY FOR INTERNATIONAL DEVELOPMENT OF INDONESIA--2.3%
---------------------------------------------------------------------
2,000,000 7.80%, 10/15/2022 2,315,000
--------------------------------------------------------------------- ------------
FEDERAL FARM CREDIT BANK--0.4%
---------------------------------------------------------------------
400,000 8.40%, 11/14/94 419,224
--------------------------------------------------------------------- ------------
FEDERAL HOME LOAN BANK--0.7%
---------------------------------------------------------------------
281,192 7.00%, 6/1/2004 286,726
---------------------------------------------------------------------
245,967 7.50%, 8/1/2008 252,731
---------------------------------------------------------------------
120,509 8.75%, 8/1/2001 125,592
--------------------------------------------------------------------- ------------
Total 665,049
--------------------------------------------------------------------- ------------
FEDERAL HOME LOAN MORTGAGE CORP.--0.7%
---------------------------------------------------------------------
700,000 8.90%, 5/15/2019 747,467
--------------------------------------------------------------------- ------------
FEDERAL HOME LOAN MORTGAGE CORP.--REMIC--3.0%
---------------------------------------------------------------------
700,000 7.00%, (Series 1156), 1/15/2004 722,665
---------------------------------------------------------------------
1,000,000 7.00%, (Series 1204), 11/15/2005 1,053,120
---------------------------------------------------------------------
712,042 7.95%, (Series 1014), 1/15/2015 719,383
---------------------------------------------------------------------
500,000 9.00%, (Series 28), 2/15/2018 527,030
--------------------------------------------------------------------- ------------
Total 3,022,198
--------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT FIXED INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C>
LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--CONTINUED
- ----------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--REMIC--3.6%
---------------------------------------------------------------------
$ 20,494 8.00%, (Series G8), 7/25/2010 $ 20,488
---------------------------------------------------------------------
54,122 8.90%, Series 1989-57), 7/25/2018 54,054
---------------------------------------------------------------------
2,600,000 8.95%, (Series 1990-117), 7/25/2017 2,728,362
---------------------------------------------------------------------
800,000 9.50%, (Series 1990-63), 6/25/2020 890,744
--------------------------------------------------------------------- ------------
Total 3,693,648
--------------------------------------------------------------------- ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--2.3%
---------------------------------------------------------------------
2,147,687 9.00%-10.50%, 9/15/2004-6/15/2019 2,364,441
--------------------------------------------------------------------- ------------
GUARANTEED EXPORT TRUST--1.9%
---------------------------------------------------------------------
2,000,000 5.23%, 5/15/2005 1,980,000
--------------------------------------------------------------------- ------------
GUARANTEED TRADE TRUST--1.8%
---------------------------------------------------------------------
1,800,000 4.86%, (Series 93-A), 4/1/98 1,814,940
--------------------------------------------------------------------- ------------
SMALL BUSINESS ADMINISTRATION--1.8%
---------------------------------------------------------------------
1,657,537 7.60%, (Series 92-G), 7/1/2012 1,819,146
--------------------------------------------------------------------- ------------
TENNESSEE VALLEY AUTHORITY--1.7%
---------------------------------------------------------------------
1,500,000 8.375%, (Series 89-D), 10/1/99 1,743,750
--------------------------------------------------------------------- ------------
U.S. GOVERNMENT, DEPARTMENT OF NAVY--2.2%
---------------------------------------------------------------------
2,000,000 8.625%, 12/15/2013 2,265,000
--------------------------------------------------------------------- ------------
U.S. GOVERNMENT HOUSING--1.3%
---------------------------------------------------------------------
1,200,000 8.50%, 7/15/2013 1,368,000
--------------------------------------------------------------------- ------------
WHC IRS TRUST--1.8%
---------------------------------------------------------------------
1,700,000 6.98%, 5/15/2015 1,819,000
--------------------------------------------------------------------- ------------
TOTAL LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS
(IDENTIFIED COST $25,463,350) 26,036,863
--------------------------------------------------------------------- ------------
CORPORATE BONDS--31.8%
- ----------------------------------------------------------------------------------------
BANKING--5.8%
---------------------------------------------------------------------
400,000 Bankers Trust New York Corp., 9.50%, 6/14/2000 479,092
---------------------------------------------------------------------
500,000 First Chicago Corp., 8.85%, Medium Term Note, 5/30/95 533,950
---------------------------------------------------------------------
1,000,000 First USA Bank, 5.05%, 10/24/95 1,002,050
---------------------------------------------------------------------
1,000,000 Liberty National Bank & Trust Co., 6.75%, 6/1/2003 1,031,170
---------------------------------------------------------------------
1,000,000 Manufacturers & Traders Trust, 8.125%, 12/1/2002 1,094,910
---------------------------------------------------------------------
1,000,000 Republic New York Corp., 5.875%, 10/15/2008 975,000
---------------------------------------------------------------------
710,000 Security Pacific Corp., 9.625%, Medium Term Note, 3/13/95 760,765
--------------------------------------------------------------------- ------------
Total 5,876,937
--------------------------------------------------------------------- ------------
FINANCE--6.3%
---------------------------------------------------------------------
$ 300,000 National Rural Utilities Co-op, 8.80%, 12/22/94 $ 315,297
---------------------------------------------------------------------
</TABLE>
SHAWMUT FIXED INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- ----------------------------------------------------------------------------------------
250,000 Pitney Bowes Credit Corp., 8.55%, 9/15/2009 308,455
---------------------------------------------------------------------
2,000,000 AIG Matched Funding Corp., 5.314%, 9/25/98 1,990,000
---------------------------------------------------------------------
1,600,000 Allstate Corp., 7.5%, 6/15/2013 1,696,608
---------------------------------------------------------------------
1,000,000 Comdisco Inc., 5.375%, Medium Term Notes, 7/15/95 1,005,300
---------------------------------------------------------------------
1,000,000 Liberty Mutual Capital Corp., 7.08%, 6/2/2003 1,082,000
--------------------------------------------------------------------- ------------
Total 6,397,660
--------------------------------------------------------------------- ------------
FINANCE--ASSET BACKED--0.5%
---------------------------------------------------------------------
548,696 Rochester Community Savings Bank, 5.70%, (Series 1992-A), 12/15/97 557,613
--------------------------------------------------------------------- ------------
FINANCE--AUTOMOTIVE--5.0%
---------------------------------------------------------------------
750,000 Ford Motor Credit Co., 8.00%, 12/1/96 813,622
---------------------------------------------------------------------
3,900,000 General Motors Acceptance Corp., 4.80%-9.625%, 9/30/94-12/15/2001 4,230,527
--------------------------------------------------------------------- ------------
Total 5,044,149
--------------------------------------------------------------------- ------------
FINANCE--SERVICES--3.0%
---------------------------------------------------------------------
2,000,000 Dean Witter, Discover & Co., 6.25%, 3/15/2000 2,049,900
---------------------------------------------------------------------
1,000,000 Smith Barney Holdings, Inc., 5.375%, 6/1/1996 1,011,563
--------------------------------------------------------------------- ------------
Total 3,061,463
--------------------------------------------------------------------- ------------
FOREIGN--2.1%
---------------------------------------------------------------------
500,000 Export-Import Bank of Japan, 10.125%, Guaranteed Note, 10/28/97 590,300
---------------------------------------------------------------------
1,000,000 * Industrias Penoles, S.A. De C.V., 7.74%, 12/31/99 998,750
---------------------------------------------------------------------
500,000 KFW International Finance, Inc., 9.375%, 7/15/98 587,555
--------------------------------------------------------------------- ------------
Total 2,176,605
--------------------------------------------------------------------- ------------
INDUSTRIAL--3.2%
---------------------------------------------------------------------
500,000 Emerson Electric Co., 7.875%, 6/5/98 547,500
---------------------------------------------------------------------
1,000,000 International Business Machines, 6.375%, 6/15/2000 1,018,830
---------------------------------------------------------------------
600,000 Tenneco Corp., 10.75%-11.00%, 6/15/95-11/15/95 652,500
---------------------------------------------------------------------
1,000,000 Weyerhaeuser Co., 7.25%, 7/1/2013 1,055,960
--------------------------------------------------------------------- ------------
Total 3,274,790
--------------------------------------------------------------------- ------------
LEISURE--PHOTO EQUIPMENT--0.7%
---------------------------------------------------------------------
700,000 Eastman Kodak Co., 9.125%, 3/1/98 741,734
--------------------------------------------------------------------- ------------
PHARMACEUTICAL--1.0%
---------------------------------------------------------------------
1,000,000 Syntex USA, Inc., 6.00%, 8/15/2000 1,016,500
--------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT FIXED INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR
SHARES VALUE
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- ----------------------------------------------------------------------------------------
RETAIL STORE--1.0%
---------------------------------------------------------------------
$1,000,000 Sears Roebuck & Co., 9.15%, 12/19/94 $ 1,051,210
--------------------------------------------------------------------- ------------
TELECOMMUNICATIONS--1.1%
---------------------------------------------------------------------
1,000,000 GTE Corp., 8.85%, 3/1/98 1,126,390
--------------------------------------------------------------------- ------------
UTILITIES--2.0%
---------------------------------------------------------------------
1,000,000 Commonwealth Edison Co., 6.00%, 3/15/98 1,014,450
---------------------------------------------------------------------
1,000,000 Panhandle Eastern Pipeline, 9.875%, 10/15/96 1,066,480
--------------------------------------------------------------------- ------------
Total 2,080,930
--------------------------------------------------------------------- ------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $31,673,215) 32,405,981
--------------------------------------------------------------------- ------------
MUTUAL FUND SHARES--5.5%
- ----------------------------------------------------------------------------------------
1,576,087 Dreyfus Cash Management 1,576,087
---------------------------------------------------------------------
4,065,546 Fidelity Institutional Cash Money Market Fund 4,065,546
--------------------------------------------------------------------- ------------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 5,641,633
--------------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST $97,069,803) $100,668,841+
--------------------------------------------------------------------- ------------
</TABLE>
+ The cost of investments for federal tax purposes amounts to $97,069,803. The
net unrealized appreciation of investments on a federal tax cost basis amounts
to $3,599,038, which is comprised of $4,101,979 appreciation and $502,941
depreciation at October 31, 1993.
* Delayed delivery security (Note 2E).
Note: The categories of investments are shown as a percentage of net assets
($102,034,568) at October 31, 1993.
The following abbreviation is used in this portfolio:
REMIC -- Real Estate Mortgage Investment Conduit
(See Notes which are an integral part of the Financial Statements)
SHAWMUT GROWTH AND INCOME EQUITY FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--88.6%
- --------------------------------------------------------------------------------------
BASIC MATERIALS--7.2%
-------------------------------------------------------------------
21,000 Aluminum Co. of America $ 1,428,000
-------------------------------------------------------------------
32,000 Carpenter Technology Corp. 1,752,000
-------------------------------------------------------------------
72,000 Dexter Corp. 1,701,000
-------------------------------------------------------------------
70,000 DuPont (E.I.) de Nemours & Co. 3,342,500
-------------------------------------------------------------------
56,000 Lubrizol Corp. 1,946,000
-------------------------------------------------------------------
39,000 Temple--Inland, Inc. 1,657,500
------------------------------------------------------------------- ------------
Total 11,827,000
------------------------------------------------------------------- ------------
CAPITAL GOODS/CONSTRUCTION--7.6%
-------------------------------------------------------------------
48,000 Boeing Co. 1,800,000
-------------------------------------------------------------------
24,000 General Electric Co. 2,328,000
-------------------------------------------------------------------
48,000 Hubbell, Inc. 2,592,000
-------------------------------------------------------------------
33,000 * Thermo Electron Corp. 1,344,750
-------------------------------------------------------------------
30,900 Thiokol Corp. 814,988
-------------------------------------------------------------------
28,000 United Technologies Corp. 1,736,000
-------------------------------------------------------------------
72,000 WMX Technologies, Inc. 1,773,000
------------------------------------------------------------------- ------------
Total 12,388,738
------------------------------------------------------------------- ------------
CONSUMER CYCLICAL--14.6%
-------------------------------------------------------------------
50,000 Angelica Corp. 1,243,750
-------------------------------------------------------------------
90,000 Arvin Industries, Inc. 2,531,250
-------------------------------------------------------------------
44,000 Dayton Hudson Corp. 3,058,000
-------------------------------------------------------------------
42,000 Disney (Walt) Co. 1,795,500
-------------------------------------------------------------------
55,000 Donnelley (R.R.) & Sons Co. 1,601,875
-------------------------------------------------------------------
27,000 Eastman Kodak Co. 1,701,000
-------------------------------------------------------------------
102,000 * Lechters, Inc. 1,173,000
-------------------------------------------------------------------
51,000 Melville Corp. 2,142,000
-------------------------------------------------------------------
86,000 Morrison Restaurants, Inc. 3,085,250
-------------------------------------------------------------------
72,000 Pep Boys--Manny, Moe & Jack 1,782,000
-------------------------------------------------------------------
135,000 Rite Aid Corp. 2,193,750
-------------------------------------------------------------------
40,000 V.F. Corp. 1,585,000
------------------------------------------------------------------- ------------
Total 23,892,375
------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT GROWTH AND INCOME EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- --------------------------------------------------------------------------------------
CONSUMER STAPLES--18.4%
-------------------------------------------------------------------
108,000 Alberto Culver Co. $ 2,038,500
-------------------------------------------------------------------
40,000 American Cyanamid Company 2,180,000
-------------------------------------------------------------------
28,000 American Home Products Corp. 1,750,000
-------------------------------------------------------------------
56,000 Anheuser-Busch Companies, Inc. 2,667,000
-------------------------------------------------------------------
62,000 Baxter International, Inc. 1,472,500
-------------------------------------------------------------------
44,000 Bristol-Myers Squibb Co. 2,585,000
-------------------------------------------------------------------
77,400 ConAgra, Inc. 2,089,800
-------------------------------------------------------------------
59,000 Johnson & Johnson 2,485,375
-------------------------------------------------------------------
55,000 Merck and Co., Inc. 1,766,875
-------------------------------------------------------------------
48,000 PepsiCo., Inc. 1,896,000
-------------------------------------------------------------------
38,000 Pfizer, Inc. 2,365,500
-------------------------------------------------------------------
44,000 Phillip Morris Cos., Inc. 2,365,000
-------------------------------------------------------------------
86,000 Super Valu Stores, Inc. 2,902,500
-------------------------------------------------------------------
34,000 Tambrands, Inc. 1,440,750
------------------------------------------------------------------- ------------
Total 30,004,800
------------------------------------------------------------------- ------------
ENERGY--9.2%
-------------------------------------------------------------------
32,000 Amoco Corp. 1,788,000
-------------------------------------------------------------------
22,000 Atlantic Richfield Co. 2,425,500
-------------------------------------------------------------------
30,000 Mobil Corp. 2,445,000
-------------------------------------------------------------------
28,000 Royal Dutch Petroleum Corp. 2,961,000
-------------------------------------------------------------------
32,000 Schlumberger, Ltd. 2,028,000
-------------------------------------------------------------------
50,000 Texaco, Inc. 3,406,250
------------------------------------------------------------------- ------------
Total 15,053,750
------------------------------------------------------------------- ------------
FINANCIAL--8.5%
-------------------------------------------------------------------
29,000 Bankers Trust New York Corp. 2,298,250
-------------------------------------------------------------------
44,000 Capital Holdings Corp. 1,820,500
-------------------------------------------------------------------
25,000 Chubb Corp. 2,053,125
-------------------------------------------------------------------
100,000 Comerica, Inc. 2,637,500
-------------------------------------------------------------------
58,300 NBB Bancorp, Inc. 2,310,138
-------------------------------------------------------------------
104,000 National City Corp. 2,704,000
------------------------------------------------------------------- ------------
Total 13,823,513
------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT GROWTH AND INCOME EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- --------------------------------------------------------------------------------------
TECHNOLOGY--8.4%
-------------------------------------------------------------------
36,000 AMP, Inc. $ 2,245,500
-------------------------------------------------------------------
39,000 Apple Computer, Inc. 1,199,250
-------------------------------------------------------------------
22,000 * Computer Sciences Corp. 2,021,250
-------------------------------------------------------------------
38,000 International Business Machines Corp. 1,748,000
-------------------------------------------------------------------
16,000 Motorola, Inc. 1,676,000
-------------------------------------------------------------------
70,000 * Novell, Inc. 1,505,000
-------------------------------------------------------------------
44,000 Pitney Bowes, Inc. 1,727,000
-------------------------------------------------------------------
23,000 (a) Reuters Holdings PLC 1,673,250
------------------------------------------------------------------- ------------
Total 13,795,250
------------------------------------------------------------------- ------------
TRANSPORTATION & SERVICES--2.8%
-------------------------------------------------------------------
50,000 (a) British Airways 2,781,250
-------------------------------------------------------------------
31,000 Burlington Northern, Inc. 1,743,750
------------------------------------------------------------------- ------------
Total 4,525,000
------------------------------------------------------------------- ------------
UTILITIES--7.0%
-------------------------------------------------------------------
46,000 BellSouth Corp. 2,886,500
-------------------------------------------------------------------
86,000 GTE Corp. 3,418,500
-------------------------------------------------------------------
54,000 Texas Utilities Co. 2,430,000
-------------------------------------------------------------------
53,000 U.S. West, Inc. 2,656,625
------------------------------------------------------------------- ------------
Total 11,391,625
------------------------------------------------------------------- ------------
MISCELLANEOUS--4.9%
-------------------------------------------------------------------
7,500 Minnesota Mining & Manufacturing Co. 778,125
-------------------------------------------------------------------
65,000 (a) Hanson PLC 1,308,125
-------------------------------------------------------------------
16,500 ITT Corp. 1,536,562
-------------------------------------------------------------------
70,000 Ogden Corp. 1,680,000
-------------------------------------------------------------------
61,000 PHH Corp. 2,783,125
------------------------------------------------------------------- ------------
Total 8,085,937
------------------------------------------------------------------- ------------
TOTAL COMMON STOCKS (IDENTIFIED COST, $140,462,480) 144,787,988
------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT GROWTH AND INCOME EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- ------------
<C> <C> <S> <C>
CONVERTIBLE PREFERRED STOCK--2.6%
- --------------------------------------------------------------------------------------
25,600 ConAgra, Inc., Class E. Cum. Cv. Pfd. $ 825,600
-------------------------------------------------------------------
32,000 Ford Motor Co., Series A, Cum. Cv. Pfd. 3,352,000
------------------------------------------------------------------- ------------
TOTAL CONVERTIBLE-PREFERRED STOCK (IDENTIFIED COST, $3,741,819) 4,177,600
------------------------------------------------------------------- ------------
MUTUAL FUND SHARES--8.9%
- --------------------------------------------------------------------------------------
7,177,525 Dreyfus Cash Management 7,177,525
-------------------------------------------------------------------
7,426,174 Fidelity Institutional Cash Money Market Fund 7,426,174
------------------------------------------------------------------- ------------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 14,603,699
------------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST, $158,807,998) $163,569,287+
------------------------------------------------------------------- ------------
* Non-income producing
(a) American Depository Receipt
</TABLE>
+ The cost of investments for federal tax purposes amounts to $158,882,964. The
net unrealized appreciation of investments on a federal tax cost basis amounts
to $4,686,323, which is comprised of $13,105,364 appreciation and $8,419,041
depreciation at October 31, 1993.
Note: The categories of investments are shown as a percentage of net assets
($163,369,610) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT GROWTH EQUITY FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--96.7%
- ---------------------------------------------------------------------------------------
BASIC MATERIALS--4.0%
----------------------------------------------------------------------
13,900 Avery Dennison Corp. $ 394,413
----------------------------------------------------------------------
4,900 du Pont (E.I.) deNemours & Co. 233,975
----------------------------------------------------------------------
3,100 Georgia Pacific Corp. 199,175
----------------------------------------------------------------------
2,600 PPG Industries, Inc. 181,350
---------------------------------------------------------------------- -----------
Total 1,008,913
---------------------------------------------------------------------- -----------
CAPITAL GOODS/CONSTRUCTION--4.6%
----------------------------------------------------------------------
3,000 Boeing Co. 112,500
----------------------------------------------------------------------
4,700 Illinois Tool Works, Inc. 175,662
----------------------------------------------------------------------
11,800 General Signal Corp. 415,950
----------------------------------------------------------------------
14,700 Masco Corp. 464,888
---------------------------------------------------------------------- -----------
Total 1,169,000
---------------------------------------------------------------------- -----------
CONSUMER CYCLICAL--28.5%
----------------------------------------------------------------------
13,500 Arvin Industries, Inc. 379,687
----------------------------------------------------------------------
15,000 Blockbuster Entertainment Corp. 425,625
----------------------------------------------------------------------
3,300 Brinker International, Inc. 137,775
----------------------------------------------------------------------
7,400 Carnival Cruise Lines, Inc. 351,500
----------------------------------------------------------------------
8,700 Circuit City Stores, Inc. 243,600
----------------------------------------------------------------------
14,800 * Circus Circus Enterprises, Inc. 530,950
----------------------------------------------------------------------
37,500 * Consolidated Stores Corp. 759,375
----------------------------------------------------------------------
11,200 Cracker Barrel Old Country Store 296,800
----------------------------------------------------------------------
9,700 * CUC International, Inc. 373,450
----------------------------------------------------------------------
5,300 Disney (Walt) Co. 226,575
----------------------------------------------------------------------
6,400 Dun & Bradstreet Corp. 428,800
----------------------------------------------------------------------
13,900 Echlin, Inc. 451,750
----------------------------------------------------------------------
10,200 International Game Techology 360,825
----------------------------------------------------------------------
8,900 Limited, Inc. 190,238
----------------------------------------------------------------------
23,000 Mattel, Inc. 667,000
----------------------------------------------------------------------
11,000 * Office Depot, Inc. 364,375
----------------------------------------------------------------------
5,900 Pep Boys Manny, Moe, & Jack 146,025
----------------------------------------------------------------------
9,500 Reebok International Ltd. 289,750
----------------------------------------------------------------------
10,000 * Tele Communications, Inc. 305,000
----------------------------------------------------------------------
</TABLE>
SHAWMUT GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
----------------------------------------------------------------------
3,000 Time Warner, Inc. $ 134,250
----------------------------------------------------------------------
4,800 * Toys "R" Us, Inc. 192,600
---------------------------------------------------------------------- -----------
Total 7,255,950
---------------------------------------------------------------------- -----------
CONSUMER STAPLES--22.9%
----------------------------------------------------------------------
9,200 Albertson's, Inc. 240,350
----------------------------------------------------------------------
12,300 Amgen, Inc. 561,187
----------------------------------------------------------------------
7,000 Anheuser--Busch Companies, Inc. 333,375
----------------------------------------------------------------------
17,200 * Healthtrust, Inc. (The hospital) 421,400
----------------------------------------------------------------------
5,400 Johnson & Johnson 227,475
----------------------------------------------------------------------
11,000 Medco Containment Services, Inc. 412,500
----------------------------------------------------------------------
4,700 Medtronic, Inc. 348,388
----------------------------------------------------------------------
5,100 Merck and Co., Inc. 163,838
----------------------------------------------------------------------
15,000 * Novacare, Inc. 195,000
----------------------------------------------------------------------
14,400 PepsiCo, Inc. 568,800
----------------------------------------------------------------------
3,600 Pfizer 224,100
----------------------------------------------------------------------
3,800 Schering Plough Corp. 258,400
----------------------------------------------------------------------
13,900 * Science Med Life System, Inc. 674,150
----------------------------------------------------------------------
11,700 Supervalu, Inc. 394,875
----------------------------------------------------------------------
10,600 UST, Inc. 279,575
----------------------------------------------------------------------
7,600 United Healthcare Corp. 531,050
---------------------------------------------------------------------- -----------
Total 5,834,463
---------------------------------------------------------------------- -----------
ENERGY--5.9%
----------------------------------------------------------------------
1,900 Anadarko Petroleum 89,300
----------------------------------------------------------------------
8,300 Coastal Corp. 227,212
----------------------------------------------------------------------
11,600 Dresser Industries, Inc. 249,400
----------------------------------------------------------------------
10,900 Halliburton Co. 347,438
----------------------------------------------------------------------
8,600 * McDermott International, Inc. 244,025
----------------------------------------------------------------------
2,000 Pennzoil Co. 114,500
----------------------------------------------------------------------
6,600 Triton Energy Corp. 219,450
---------------------------------------------------------------------- -----------
Total 1,491,325
---------------------------------------------------------------------- -----------
FINANCIAL--9.4%
----------------------------------------------------------------------
2,700 AFLAC, Inc. 85,050
----------------------------------------------------------------------
5,600 Bank of New York, Inc. 298,200
----------------------------------------------------------------------
6,300 Federal National Mortgage Association 490,612
----------------------------------------------------------------------
7,800 First Financial Management Corp. 427,050
----------------------------------------------------------------------
</TABLE>
SHAWMUT GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
FINANCIAL--CONTINUED
----------------------------------------------------------------------
9,600 Fleet Financial Group, Inc. $ 301,200
----------------------------------------------------------------------
5,600 Norwest Corp. 144,200
----------------------------------------------------------------------
14,500 Student Loan Marketing Association 647,063
---------------------------------------------------------------------- -----------
Total 2,393,375
---------------------------------------------------------------------- -----------
TECHONOLOGY--13.2%
----------------------------------------------------------------------
2,300 American Telephone & Telegraph Co. 132,537
----------------------------------------------------------------------
5,000 AMP, Inc. 311,875
----------------------------------------------------------------------
8,100 * BMC Software, Inc. 389,813
----------------------------------------------------------------------
14,100 * Borland International 243,225
----------------------------------------------------------------------
3,100 * Computer Sciences Corp. 284,812
----------------------------------------------------------------------
10,000 Intel Corp. 632,500
----------------------------------------------------------------------
1,700 * McCaw Cellular Communications 90,525
----------------------------------------------------------------------
4,400 * Microsoft Corp. 352,550
----------------------------------------------------------------------
24,200 * Novell, Inc. 520,300
----------------------------------------------------------------------
2,900 Pitney Bowes, Inc. 113,825
----------------------------------------------------------------------
4,400 * Sun Microsystems, Inc. 112,200
----------------------------------------------------------------------
2,100 Vodafone Group Plc. 180,338
---------------------------------------------------------------------- -----------
Total 3,364,500
---------------------------------------------------------------------- -----------
TRANSPORT & SERVICES--2.5%
----------------------------------------------------------------------
17,000 Ryder Systems, Inc. 482,375
----------------------------------------------------------------------
1,100 * UAL (Allegis) Corp. 167,200
---------------------------------------------------------------------- -----------
Total 649,575
---------------------------------------------------------------------- -----------
UTILITIES--3.9%
----------------------------------------------------------------------
6,500 Century Telephone Enterprises, Inc. 178,750
----------------------------------------------------------------------
16,432 * Citizens Utilities Co. Development 289,614
----------------------------------------------------------------------
9,400 (a) Telefonos De Mexico SA 514,650
---------------------------------------------------------------------- -----------
Total 983,014
---------------------------------------------------------------------- -----------
MISCELLANEOUS--1.7%
----------------------------------------------------------------------
2,100 Allied Signal, Inc. 150,412
----------------------------------------------------------------------
5,500 Tenneco, Inc. 280,500
---------------------------------------------------------------------- -----------
Total 430,912
---------------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $23,768,884) 24,581,027
---------------------------------------------------------------------- -----------
</TABLE>
SHAWMUT GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------------------------------------------------------------------- -----------
<C> <C> <S> <C>
MUTUAL FUND SHARES--4.8%
- ---------------------------------------------------------------------------------------
550,042 Dreyfus Cash Management $ 550,042
----------------------------------------------------------------------
671,230 Fidelity Institutional Cash Money Market Fund 671,230
---------------------------------------------------------------------- -----------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 1,221,272
---------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $24,990,156) $25,802,299+
---------------------------------------------------------------------- -----------
</TABLE>
(a) American Depository Receipt
* Non-income producing.
+ The cost of investments for federal tax purposes amounts to $25,020,086. The
net unrealized appreciation of investments on a federal tax basis amounts to
$782,213 which is comprised of $2,462,200 appreciation and $1,679,987
depreciation at October 31, 1993.
Note: The categories of investments are shown as a percentage of net assets
($25,418,092) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------------ -----------
<C> <C> <S> <C>
LONG-TERM U.S. TREASURY OBLIGATIONS--29.2%
- -----------------------------------------------------------------------------------------
U.S. TREASURY NOTES--29.2%
------------------------------------------------------------------------
$3,070,000 4.25%, 8/31/94 $ 3,090,139
------------------------------------------------------------------------
3,000,000 4.625%, 8/15/95-2/15/96 3,034,680
------------------------------------------------------------------------
500,000 5.50%, 4/15/2000 512,970
------------------------------------------------------------------------
1,500,000 5.625%, 8/31/97 1,555,080
------------------------------------------------------------------------
1,500,000 5.75%, 10/31/97 1,560,240
------------------------------------------------------------------------
1,500,000 6.00%, 12/31/97 1,575,000
------------------------------------------------------------------------
1,000,000 6.875%, 8/15/94 1,026,090
------------------------------------------------------------------------
1,000,000 7.25%, 11/15/96 1,081,560
------------------------------------------------------------------------
2,500,000 7.50%, 11/15/2001-5/15/2002 2,857,810
------------------------------------------------------------------------
3,300,000 7.875%, 7/31/96-1/15/98 3,672,425
------------------------------------------------------------------------
2,000,000 8.50%, 7/15/97 2,265,000
------------------------------------------------------------------------ -----------
TOTAL LONG-TERM U.S. TREASURY OBLIGATIONS (IDENTIFIED COST $21,607,471) 22,230,994
------------------------------------------------------------------------ -----------
LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--41.5%
- -----------------------------------------------------------------------------------------
FEDERAL AGRICULTURE MORTGAGE CORP., MEDIUM TERM NOTE--1.9%
------------------------------------------------------------------------
1,300,000 7.74%, 11/25/2003 1,438,931
------------------------------------------------------------------------ -----------
FEDERAL HOME LOAN BANK--5.6%
------------------------------------------------------------------------
4,135,253 6.50%-7.50%, 8/1/97-5/1/2019 4,258,057
------------------------------------------------------------------------ -----------
FEDERAL HOME LOAN MORTGAGE CORP.--11.4%
------------------------------------------------------------------------
8,500,000 4.60%-7.00%, 7/13/98-11/15/2005 8,694,365
------------------------------------------------------------------------ -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--1.1%
------------------------------------------------------------------------
791,055 8.50%-9.00%, 12/1/97-9/1/98 825,153
------------------------------------------------------------------------ -----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--3.4%
------------------------------------------------------------------------
2,400,797 9.00%, 7/15/2001-10/15/2018 2,574,025
------------------------------------------------------------------------ -----------
GUARANTEED TRADE TRUST--3.0%
------------------------------------------------------------------------
2,250,000 4.86%, (Series 1993-A)/(Guaranteed Trade Certificates), 4/1/98 2,268,675
------------------------------------------------------------------------ -----------
INTERNATIONAL AMERICAN DEVELOPMENT BANK--1.6%
------------------------------------------------------------------------
1,050,000 8.50%, 5/1/2001 1,235,714
------------------------------------------------------------------------ -----------
NORTH STAR ALASKA HOUSING CORP.--1.2%
------------------------------------------------------------------------
900,000 5.99%, 5/15/98 918,000
------------------------------------------------------------------------ -----------
RURAL ELECTRIC CO-OP.--3.8%
------------------------------------------------------------------------
2,400,000 10.11%, Grantor Trust Certificates, 12/15/2017 2,880,960
------------------------------------------------------------------------ -----------
</TABLE>
SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------------ -----------
<C> <C> <S> <C>
LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--CONTINUED
- -----------------------------------------------------------------------------------------
SHIPCO INC.--2.5%
------------------------------------------------------------------------
$1,885,000 8.10%, (Series C)/(U.S. Government Guaranteed Ship Financing), 5/12/2002 $ 1,920,985
------------------------------------------------------------------------ -----------
TENNESSEE VALLEY POWER AUTHORITY--3.1%
------------------------------------------------------------------------
2,000,000 8.375%, (Series D 1989), 10/1/99 2,325,000
------------------------------------------------------------------------ -----------
U.S. GOVERNMENT DEPT. OF NAVY--3.0%
------------------------------------------------------------------------
2,000,000 8.625%, 12/15/2013 2,265,000
------------------------------------------------------------------------ -----------
TOTAL LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS
(IDENTIFIED COST $29,949,055) 31,604,865
------------------------------------------------------------------------ -----------
CERTIFICATE OF DEPOSIT--1.3%
- -----------------------------------------------------------------------------------------
1,000,000 First USA Bank of Wilmington, 5.05%, 10/24/95 (identified cost
$1,003,540) 1,002,050
------------------------------------------------------------------------ -----------
CORPORATE BONDS--24.5%
- -----------------------------------------------------------------------------------------
BANKING--5.2%
------------------------------------------------------------------------
1,000,000 Chemical Banking Corp., 7.375%, 6/15/97 1,074,460
------------------------------------------------------------------------
775,000 Liberty National Bank & Trust Co., 6.75%, 6/1/2003 799,157
------------------------------------------------------------------------
500,000 National City Corp., Notes, 8.375%, 3/15/96 540,190
------------------------------------------------------------------------
1,000,000 Republic N.Y. Corp., 5.875%, 10/15/2008 975,000
------------------------------------------------------------------------
500,000 Security Pacific Corp. 8.49%, Medium Term Notes, 12/27/96 551,935
------------------------------------------------------------------------ -----------
Total 3,940,742
------------------------------------------------------------------------ -----------
FINANCE--ASSET BACKED--4.4%
------------------------------------------------------------------------
467,789 Chase Manhattan Corp., 6.90%, Grantor Trust Certificates, (Series
1991A), 9/15/97 474,072
------------------------------------------------------------------------
518,337 General Motors Acceptance Corp., 8.25%, Grantor Trust Certificate,
(Series 1990A), 11/15/95 525,785
------------------------------------------------------------------------
1,243,809 Premier Auto Trust, 5.90%, (Series 1992-3), 11/17/97 1,270,626
------------------------------------------------------------------------
1,000,000 SPNB Home Equity Loan, 8.85%, 5/15/98 1,070,620
------------------------------------------------------------------------ -----------
Total 3,341,103
------------------------------------------------------------------------ -----------
FINANCE--AUTOMOTIVE--2.8%
------------------------------------------------------------------------
2,000,000 General Motors Acceptance Corp., Medium Term Notes,
7.50%-8.90%, 2/7/95-5/19/97 2,125,100
------------------------------------------------------------------------ -----------
FINANCE--INSURANCE--2.7%
------------------------------------------------------------------------
1,000,000 AIG Matched Funding Corp., 5.314%, 9/25/98 995,000
------------------------------------------------------------------------
1,000,000 Liberty Mutual Capital Corp., 7.08%, 6/2/2003 1,082,000
------------------------------------------------------------------------ -----------
Total 2,077,000
------------------------------------------------------------------------ -----------
</TABLE>
SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
- ---------- ------------------------------------------------------------------------ -----------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- -----------------------------------------------------------------------------------------
FINANCE--RETAIL--2.6%
------------------------------------------------------------------------
$2,000,000 Household Finance Corp., 9.00%, 2/1/94 $ 2,024,540
------------------------------------------------------------------------ -----------
FOREIGN--0.7%
------------------------------------------------------------------------
500,000 * Industrias Penoles DE CV, 7.74%, 12/31/99 499,374
------------------------------------------------------------------------ -----------
INDUSTRIAL--2.8%
------------------------------------------------------------------------
2,000,000 Tenneco Corp., 10.75%, 6/15/95 2,150,000
------------------------------------------------------------------------ -----------
PHARMACEUTICAL--2.7%
------------------------------------------------------------------------
2,000,000 Syntex U.S.A, Inc., 5.90%, 5/26/98 2,050,040
------------------------------------------------------------------------ -----------
UTILITIES--0.7%
------------------------------------------------------------------------
500,000 Commonwealth Edison Co., 6.00%, 3/15/98 507,225
------------------------------------------------------------------------ -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST $19,710,458) 18,715,124
------------------------------------------------------------------------ -----------
MUTUAL FUND SHARES--2.1%
- -----------------------------------------------------------------------------------------
74,242 Dreyfus Cash Management 74,242
------------------------------------------------------------------------
1,514,483 Fidelity Institutional Cash Money Market Fund 1,514,483
------------------------------------------------------------------------ -----------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 1,588,725
------------------------------------------------------------------------ -----------
TOTAL INVESTMENTS (IDENTIFIED COST $73,859,249) $75,141,758+
------------------------------------------------------------------------ -----------
</TABLE>
* Delayed Delivery Security (Note 2E).
+ The cost of investments for federal tax purposes amounts to $73,859,249. The
net unrealized depreciation on a federal tax basis amounts to $1,282,509,
which is comprised of $1,454,051 appreciation and $171,542 depreciation at
October 31, 1993.
Note: The categories of investments are shown as a percentage of net assets
($76,211,211) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT PRIME MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C>
CERTIFICATES OF DEPOSIT--18.5%
- ----------------------------------------------------------------------------------------
$11,000,000 Fifth Third Bank, 3.10%, 12/30/93 $ 11,000,000
--------------------------------------------------------------------
10,000,000 Harris Trust & Savings Bank, 3.08%, 11/12/93 10,000,000
--------------------------------------------------------------------
10,000,000 Old Kent Bank & Trust Co., 3.18%, 2/10/94 10,000,000
--------------------------------------------------------------------
10,000,000 Southtrust Bank of Alabama, 3.10%, 11/17/93 10,000,000
--------------------------------------------------------------------
12,000,000 United States National Bank of Oregon, 3.05%, 11/29/93 12,000,000
-------------------------------------------------------------------- ------------
TOTAL CERTIFICATES OF DEPOSIT 53,000,000
-------------------------------------------------------------------- ------------
*COMMERCIAL PAPER--41.5%
- ----------------------------------------------------------------------------------------
FINANCE--AUTOMOTIVE--7.6%
--------------------------------------------------------------------
11,000,000 Ford Motor Credit Co., 3.08%-3.18%, 11/17/93-1/14/94 10,943,601
--------------------------------------------------------------------
11,000,000 Toyota Motor Credit Corp., 3.07%-3.08%, 11/22/93 10,980,277
-------------------------------------------------------------------- ------------
Total 21,923,878
-------------------------------------------------------------------- ------------
FINANCE--COMMERCIAL--7.7%
--------------------------------------------------------------------
11,000,000 Cargill Inc., 3.07%, 11/19/93 10,983,115
--------------------------------------------------------------------
11,000,000 Sanwa Business Credit Corp., 3.12%-3.21%, 11/18/93-1/28/94 10,977,420
-------------------------------------------------------------------- ------------
Total 21,960,535
-------------------------------------------------------------------- ------------
FINANCE--OIL--7.0%
--------------------------------------------------------------------
8,000,000 Chevron Oil Finance Co., 3.12%, 1/20/94 7,944,533
--------------------------------------------------------------------
12,000,000 Exxon Credit Corp., 3.03%, 11/15/93 11,985,860
-------------------------------------------------------------------- ------------
Total 19,930,393
-------------------------------------------------------------------- ------------
FINANCE--RETAIL--3.5%
--------------------------------------------------------------------
10,000,000 Commercial Credit Corp., 3.18%, 1/11/94 9,937,283
-------------------------------------------------------------------- ------------
FOOD & BEVERAGE--3.1%
--------------------------------------------------------------------
9,000,000 Phillip Morris Cos., Inc., 3.08%, 12/16/93 8,965,350
-------------------------------------------------------------------- ------------
FUNDING CORPORATION--5.8%
--------------------------------------------------------------------
11,765,000 B.A.T. Capital Corp., 3.08%-3.10%, 11/1/93-11/9/93 11,761,556
--------------------------------------------------------------------
5,000,000 Barclays U.S. Funding Corp., 3.18%, 1/18/94 4,965,550
-------------------------------------------------------------------- ------------
Total 16,727,106
-------------------------------------------------------------------- ------------
PUBLISHING AND PRINTING--3.0%
--------------------------------------------------------------------
8,500,000 Gannet Co., 3.07%-3.08%, 11/5/93-11/9/93 8,494,983
-------------------------------------------------------------------- ------------
TELECOMMUNICATIONS--3.8%
--------------------------------------------------------------------
11,000,000 American Telephone & Telegraph Co., 3.17%-3.18%, 1/13/94-3/30/94 10,887,154
-------------------------------------------------------------------- ------------
TOTAL COMMERCIAL PAPER 118,826,682
-------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <C> <S> <C>
GOVERNMENT OBLIGATIONS--13.5%
- ----------------------------------------------------------------------------------------
$24,000,000 Federal Home Loan Bank Discount Notes, 2.543%-3.33%, 11/3/93-2/22/94 $ 23,915,410
--------------------------------------------------------------------
14,800,000 Federal National Mortgage Association Discount Note, 3.06%-3.11%,
11/16/19-12/15/93 14,769,090
-------------------------------------------------------------------- ------------
TOTAL GOVERNMENT OBLIGATIONS 38,684,500
-------------------------------------------------------------------- ------------
U.S. TREASURY OBLIGATIONS--10.7%
- ----------------------------------------------------------------------------------------
31,000,000 U.S. Treasury Bills, 11/12/93-7/28/94 30,674,282
-------------------------------------------------------------------- ------------
** VARIABLE RATE INSTRUMENTS--3.7%
- ----------------------------------------------------------------------------------------
10,607,000 General Electric Capital Corp., 2.97%, Master Note, 11/5/93 10,607,000
-------------------------------------------------------------------- ------------
*** REPURCHASE AGREEMENTS--12.3%
- ----------------------------------------------------------------------------------------
11,248,090 Carroll McEntee & McGinley, Inc., 2.90%, dated 10/29/93, due 11/1/93 11,248,090
--------------------------------------------------------------------
12,000,000 Goldman Sachs & Co., 2.90%, dated 10/29/93, due 11/1/93 12,000,000
--------------------------------------------------------------------
12,000,000 Merrill Lynch, Pierce, Fenner & Smith, Inc., 2.80%, dated 10/29/93,
due 11/1/93 12,000,000
-------------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS (NOTE 2B) 35,248,090
-------------------------------------------------------------------- ------------
TOTAL INVESTMENTS, AT VALUE $287,040,554+
-------------------------------------------------------------------- ------------
+ Also represents cost for federal tax purposes.
* Each issue shows the rate of discount at the time of purchase for discount issues.
** Current rate and next demand date shown.
*** The repurchase agreements are fully collateralized by U.S. government and/or agency
obligations based on market prices at the date of the portfolio.
</TABLE>
Note: The categories of investments are shown as a percentage of net assets
($286,609,638) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--94.5%
- ---------------------------------------------------------------------------------------
BASIC MATERIALS--5.2%
--------------------------------------------------------------------
15,000 * Chemdesign Corp. $ 69,375
--------------------------------------------------------------------
16,800 Chemi-Trol Chemical Co. 214,200
--------------------------------------------------------------------
31,500 Chesapeake Corp. 693,000
--------------------------------------------------------------------
27,200 Dexter Corp. 642,600
--------------------------------------------------------------------
18,000 Fuller HB Co. 580,500
--------------------------------------------------------------------
28,000 Grow Group, Inc. 392,000
--------------------------------------------------------------------
21,512 Guardsman Products, Inc. 311,924
--------------------------------------------------------------------
7,200 LeaRonal, Inc. 106,200
--------------------------------------------------------------------
16,500 Petrolite Corp. 647,625
--------------------------------------------------------------------
43,900 Quaker Chemical 757,275
--------------------------------------------------------------------
12,000 Roanoke Electric Steel Corp. 159,000
--------------------------------------------------------------------
26,700 * Steel of West Virginia, Inc. 280,350
--------------------------------------------------------------------
20,000 * Sybron Chemicals Industries, Inc. 445,000
--------------------------------------------------------------------
28,500 Varlen Corp. 627,000
-------------------------------------------------------------------- ------------
Total 5,926,049
-------------------------------------------------------------------- ------------
CAPITAL GOODS/CONSTRUCTION--6.3%
--------------------------------------------------------------------
20,000 * Atchinson Casting Corp. 325,000
--------------------------------------------------------------------
12,400 Centex Corp. 550,250
--------------------------------------------------------------------
35,600 Collins Industries, Inc. 66,750
--------------------------------------------------------------------
46,725 * D.R. Horton, Inc. 712,556
--------------------------------------------------------------------
12,000 Duriron 270,000
--------------------------------------------------------------------
19,000 * Encore Wire Corp. 182,875
--------------------------------------------------------------------
35,000 * Foster L.B. Co. Class A 126,875
--------------------------------------------------------------------
27,300 Insituform Mid American, Inc. 375,375
--------------------------------------------------------------------
48,100 Instron Corp. 649,350
--------------------------------------------------------------------
20,000 * Jason, Inc. 235,000
--------------------------------------------------------------------
13,500 Pope & Talbot, Inc. 335,813
--------------------------------------------------------------------
37,000 * Redman Industries, Inc. 610,500
--------------------------------------------------------------------
23,500 Schult Homes Corp. 331,937
--------------------------------------------------------------------
26,900 * Southern Electronics Corp. 295,900
--------------------------------------------------------------------
39,100 Toro Co. 992,163
--------------------------------------------------------------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
CAPITAL GOODS/CONSTRUCTION--CONTINUED
--------------------------------------------------------------------
70,000 * Triangle Pacific Corp. $ 936,250
--------------------------------------------------------------------
40,000 * Willcox & Gibbs, Inc. 290,000
-------------------------------------------------------------------- ------------
Total 7,286,594
-------------------------------------------------------------------- ------------
CONSUMER CYCLICAL--18.4%
--------------------------------------------------------------------
10,972 * Agency Rent A Car, Inc. 122,063
--------------------------------------------------------------------
11,600 * American City Business Journals 288,550
--------------------------------------------------------------------
14,750 Bassett Furniture Industries, Inc. 446,188
--------------------------------------------------------------------
51,900 * Brauns Fashions Corp. 583,875
--------------------------------------------------------------------
30,000 * Calloways Nursery, Inc. 82,500
--------------------------------------------------------------------
72,300 Cash America International, Inc. 668,775
--------------------------------------------------------------------
29,137 * Clear Channel Communications 1,260,175
--------------------------------------------------------------------
70,100 * ClothesTime Inc. 560,800
--------------------------------------------------------------------
16,000 * Coherent, Inc. 232,000
--------------------------------------------------------------------
12,100 * Consolidated Stores Corp. 245,025
--------------------------------------------------------------------
10,200 * Designs, Inc. 153,000
--------------------------------------------------------------------
11,000 Dimark, Inc. 374,000
--------------------------------------------------------------------
14,000 * Donnkenny, Inc. 180,250
--------------------------------------------------------------------
45,800 * El Chico Restaurants, Inc. 709,900
--------------------------------------------------------------------
43,500 * Falcon Products, Inc. 456,750
--------------------------------------------------------------------
46,800 * Fieldcrest Cannon, Inc. 1,257,750
--------------------------------------------------------------------
20,000 Galey & Lord, Inc. 225,000
--------------------------------------------------------------------
24,000 Gibson Greetings, Inc. 486,000
--------------------------------------------------------------------
32,700 * Hi-Lo Automotive, Inc. 363,788
--------------------------------------------------------------------
17,000 Houghton Mifflin Co. 805,375
--------------------------------------------------------------------
20,000 * Jones Apparel Group, Inc. 625,000
--------------------------------------------------------------------
10,000 La Z Boy Chair Co. 320,000
--------------------------------------------------------------------
55,000 LADD Furniture, Inc. 536,250
--------------------------------------------------------------------
35,000 * Monaco Coach Corp. 411,250
--------------------------------------------------------------------
49,100 Morrison Restaurants, Inc. 1,761,463
--------------------------------------------------------------------
23,000 * Mothers Work, Inc. 270,250
--------------------------------------------------------------------
19,000 * Optical Data Systems, Inc. 206,625
--------------------------------------------------------------------
51,700 * Payless Cashways, Inc. 620,400
--------------------------------------------------------------------
22,000 PCA International, Inc. 464,750
--------------------------------------------------------------------
25,000 * R & B, Inc. 284,375
--------------------------------------------------------------------
72,400 Richfood Holdings, Inc. 1,140,300
--------------------------------------------------------------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
--------------------------------------------------------------------
59,300 * Rival Co. $ 985,862
--------------------------------------------------------------------
71,000 * Ryans Family Steak Houses 585,750
--------------------------------------------------------------------
27,550 * Sierra On-Line, Inc. 654,313
--------------------------------------------------------------------
28,300 * Solo Serve Corp. 180,412
--------------------------------------------------------------------
21,000 * Spaghetti Warehouse, Inc. 212,625
--------------------------------------------------------------------
36,000 Stant Corp. 612,000
--------------------------------------------------------------------
18,500 * Value City Department Stores, Inc. 305,250
--------------------------------------------------------------------
34,000 Wabash National Corp. 918,000
--------------------------------------------------------------------
18,000 * Winston Furniture, Inc. 166,500
--------------------------------------------------------------------
70,900 * Worldtex, Inc. 478,575
-------------------------------------------------------------------- ------------
Total 21,241,714
-------------------------------------------------------------------- ------------
CONSUMER STAPLES--9.4%
--------------------------------------------------------------------
4,000 Beckman Instruments, Inc. 110,000
--------------------------------------------------------------------
14,500 Bindley Western Industries, Inc. 174,000
--------------------------------------------------------------------
19,700 Biocraft Labs, Inc. 662,412
--------------------------------------------------------------------
15,000 * Chronimed, Inc. 243,750
--------------------------------------------------------------------
37,000 Delta & Pine Land Co. 596,625
--------------------------------------------------------------------
8,500 * DEP Corp. Class A 57,375
--------------------------------------------------------------------
8,500 * DEP Corp. Class B 51,000
--------------------------------------------------------------------
32,000 * Diasonics Ultrasound, Inc. 96,000
--------------------------------------------------------------------
32,000 * Focal Surgery, Inc. 32,000
--------------------------------------------------------------------
36,000 * Gish Biomedical, Inc. 211,500
--------------------------------------------------------------------
9,000 * Gull Labs, Inc. 35,437
--------------------------------------------------------------------
24,800 Hannaford Brothers Co. 579,700
--------------------------------------------------------------------
35,500 * Health Management Systems, Inc. 754,375
--------------------------------------------------------------------
40,000 Interstate Bakeries Corp. 570,000
--------------------------------------------------------------------
76,000 Kinetic Concepts, Inc. 294,500
--------------------------------------------------------------------
5,000 Life Technologies, Inc. 88,750
--------------------------------------------------------------------
41,900 * Lifecore Biomedical, Inc. 403,288
--------------------------------------------------------------------
23,000 * Lincare Holdings, Inc. 1,006,250
--------------------------------------------------------------------
31,000 * Megafoods Stores, Inc. 356,500
--------------------------------------------------------------------
53,875 * Minntech Corp. 518,547
--------------------------------------------------------------------
32,000 * OEC Medical Systems, Inc. 236,000
--------------------------------------------------------------------
18,750 * Owens & Minor, Inc. 403,125
--------------------------------------------------------------------
22,500 * Paragon Trade Brands, Inc. 599,063
--------------------------------------------------------------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
CONSUMER STAPLES--CONTINUED
--------------------------------------------------------------------
57,500 * Pharmaceutical Marketing Services, Inc. $ 819,375
--------------------------------------------------------------------
41,600 * ReadiCare, Inc. 106,600
--------------------------------------------------------------------
21,300 * Sci-Med Life Systems, Inc. 1,033,050
--------------------------------------------------------------------
22,900 * Somatix Therapy Corp. 177,475
--------------------------------------------------------------------
5,500 * Spacelabs Medical, Inc. 130,625
--------------------------------------------------------------------
104,300 * Syntro Corp. 378,087
--------------------------------------------------------------------
8,100 WLR Foods, Inc. 153,900
-------------------------------------------------------------------- ------------
Total 10,879,309
-------------------------------------------------------------------- ------------
ENERGY--6.9%
--------------------------------------------------------------------
75,000 * Alamco, Inc. 553,125
--------------------------------------------------------------------
32,000 * Belden & Blake Corp. 456,000
--------------------------------------------------------------------
44,200 Berry Petroleum Co., Class A 403,325
--------------------------------------------------------------------
38,000 Cross Timbers Oil Co. 679,250
--------------------------------------------------------------------
25,200 Devon Energy Corp. 507,150
--------------------------------------------------------------------
49,000 * Dual Drilling Co. 686,000
--------------------------------------------------------------------
13,200 * Hornbeck Offshore Services, Inc. 245,850
--------------------------------------------------------------------
45,000 * Kelley Oil Corp. 528,750
--------------------------------------------------------------------
33,800 * Oceaneering International, Inc. 578,825
--------------------------------------------------------------------
5,000 Penn Virginia Corp. 192,500
--------------------------------------------------------------------
15,000 Plains Petroleum Co. 367,500
--------------------------------------------------------------------
25,000 Pogo Producing Co. 456,250
--------------------------------------------------------------------
20,400 * Seagull Energy Corp. 571,200
--------------------------------------------------------------------
12,250 * Tejas Gas Corp. 701,313
--------------------------------------------------------------------
10,000 Tidelands Realty Trust 122,500
--------------------------------------------------------------------
6,700 * Triton Energy Corp. 222,775
--------------------------------------------------------------------
40,000 * United Meridian Corp. 720,000
-------------------------------------------------------------------- ------------
Total 7,992,313
-------------------------------------------------------------------- ------------
FINANCIAL--16.7%
--------------------------------------------------------------------
22,000 * Ace Cash Express, Inc. 244,750
--------------------------------------------------------------------
58,000 * American Annuity Group, Inc. 522,000
--------------------------------------------------------------------
28,500 American Federal Bank--FSB 302,813
--------------------------------------------------------------------
15,000 BSB Bancorp, Inc. 645,000
--------------------------------------------------------------------
27,000 * Bank of New Hampshire Corp. 502,875
--------------------------------------------------------------------
22,400 Co-operative Bank, Concord 414,400
--------------------------------------------------------------------
65,000 * Crown American Realty 1,064,375
--------------------------------------------------------------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
FINANCIAL--CONTINUED
--------------------------------------------------------------------
15,000 Eaton Vance Corp. $ 525,000
--------------------------------------------------------------------
10,000 First American Corp., Tennessee 305,000
--------------------------------------------------------------------
45,900 Foothill Group, Inc. 648,337
--------------------------------------------------------------------
34,800 * Home State Holdings, Inc. 591,600
--------------------------------------------------------------------
23,780 Integon Corp. 496,407
--------------------------------------------------------------------
12,200 Kansas City Life Insurance Co. 664,900
--------------------------------------------------------------------
33,800 Life Partners Group, Inc. 768,950
--------------------------------------------------------------------
48,000 Magna Group, Inc. 930,000
--------------------------------------------------------------------
6,500 Mercantile Bancorporation, Inc. 320,125
--------------------------------------------------------------------
15,000 NBB Bancorp Inc. 594,375
--------------------------------------------------------------------
19,700 Neworld Bancorp, Inc. 652,563
--------------------------------------------------------------------
14,100 North American Mortgage Co. 467,062
--------------------------------------------------------------------
24,000 ONBANCORP, Inc. 858,000
--------------------------------------------------------------------
69,400 * Payco American Corp. 555,200
--------------------------------------------------------------------
30,000 Penncorp Financial Group, Inc. 626,250
--------------------------------------------------------------------
41,500 Poe & Brown 830,000
--------------------------------------------------------------------
11,730 Portsmouth BankShares, Inc. 199,410
--------------------------------------------------------------------
74,700 SEI Corp. 1,774,125
--------------------------------------------------------------------
27,500 Selective Insurance Group, Inc. 845,625
--------------------------------------------------------------------
36,750 Southwest Securities Group, Inc. 441,000
--------------------------------------------------------------------
33,000 USBancorp, Inc. 833,250
--------------------------------------------------------------------
17,000 United Missouri Bancshares, Inc. 650,250
--------------------------------------------------------------------
34,000 Victoria Bankshares, Inc. 952,000
-------------------------------------------------------------------- ------------
Total 19,225,642
-------------------------------------------------------------------- ------------
MISCELLANEOUS--3.1%
--------------------------------------------------------------------
48,750 ADVO, Inc. 706,875
--------------------------------------------------------------------
15,000 * CDI Corp. 148,125
--------------------------------------------------------------------
20,000 Gilbert Associates, Inc. 332,500
--------------------------------------------------------------------
25,000 * Gulfmark International, Inc. 443,750
--------------------------------------------------------------------
11,000 * Harding Associates, Inc. 96,250
--------------------------------------------------------------------
11,700 Olsten Corp. 324,675
--------------------------------------------------------------------
41,500 * Unilab Corp. 249,000
--------------------------------------------------------------------
53,900 * Unitog Co. 1,307,075
-------------------------------------------------------------------- ------------
Total 3,608,250
-------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
TECHNOLOGY--26.6%
--------------------------------------------------------------------
57,500 * Acxiom Corp. $ 1,279,375
--------------------------------------------------------------------
22,300 * Adaptec, Inc. 802,800
--------------------------------------------------------------------
10,000 * ALC Communications Corp. 300,000
--------------------------------------------------------------------
40,000 * American Management Systems, Inc. 875,000
--------------------------------------------------------------------
32,500 * Analogic Corp. 497,656
--------------------------------------------------------------------
39,100 * Ask Group, Inc. 547,400
--------------------------------------------------------------------
10,000 * Associated Communications Corp. 288,750
--------------------------------------------------------------------
55,000 * Autoinfo, Inc. 213,125
--------------------------------------------------------------------
15,500 * Babbage's Inc. 403,000
--------------------------------------------------------------------
24,000 BGS Systems, Inc. 636,000
--------------------------------------------------------------------
20,000 * Benchmark Electronics, Inc. 412,500
--------------------------------------------------------------------
34,000 * Bisys Group, Inc. 824,500
--------------------------------------------------------------------
40,600 * Boole & Babbage, Inc. 1,055,600
--------------------------------------------------------------------
26,000 * CEM Corp. 286,000
--------------------------------------------------------------------
29,900 * Cirrus Logic, Inc. 1,046,500
--------------------------------------------------------------------
69,400 * Cognos, Inc. 667,975
--------------------------------------------------------------------
45,700 Comptek Research, Inc. 799,750
--------------------------------------------------------------------
87,700 Computer Task Group, Inc. 602,938
--------------------------------------------------------------------
15,000 * Compuware Corp. 393,750
--------------------------------------------------------------------
37,400 * Comshare, Inc. 411,400
--------------------------------------------------------------------
15,000 * Concord EFS, Inc. 341,250
--------------------------------------------------------------------
40,000 * Continuum, Inc. 780,000
--------------------------------------------------------------------
14,500 * Cycare Systems, Inc. 114,187
--------------------------------------------------------------------
18,360 * Detection Systems, Inc. 128,520
--------------------------------------------------------------------
41,800 * Emulex Corp. 271,700
--------------------------------------------------------------------
14,500 * Evans & Sutherland Computer Co. 268,250
--------------------------------------------------------------------
16,000 * Fibronics International, Inc. 82,000
--------------------------------------------------------------------
7,500 * Fiserv, Inc. 161,250
--------------------------------------------------------------------
70,000 * Giga Tronics, Inc. 525,000
--------------------------------------------------------------------
12,000 Greiner Engineering, Inc. 177,000
--------------------------------------------------------------------
15,500 HBO & Co. 606,437
--------------------------------------------------------------------
73,000 Hogan Systems, Inc. 812,125
--------------------------------------------------------------------
37,500 * IMRS, Inc. 946,875
--------------------------------------------------------------------
30,000 Intercargo Corp. 435,000
--------------------------------------------------------------------
40,000 * Interleaf, Inc. 225,000
--------------------------------------------------------------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
--------------------------------------------------------------------
25,000 * International Cabletel, Inc. $ 721,875
--------------------------------------------------------------------
22,700 * Interphase Corp. 96,475
--------------------------------------------------------------------
52,500 * Intersolv, Inc. 406,875
--------------------------------------------------------------------
3,800 ISCO, Inc. 46,550
--------------------------------------------------------------------
19,700 * K-Tron International, Inc. 211,775
--------------------------------------------------------------------
17,900 Keithley Instruments, Inc. 214,800
--------------------------------------------------------------------
14,500 * Kent Electronic Corp. 378,813
--------------------------------------------------------------------
18,000 * KLA Instruments Corp. 396,000
--------------------------------------------------------------------
14,450 * Lattice Semi-conductor Corp. 223,975
--------------------------------------------------------------------
30,000 * Legent Corp. 727,500
--------------------------------------------------------------------
32,000 * MDL Information Systems, Inc. 268,000
--------------------------------------------------------------------
20,500 Mac-Neal Schwendler Corp. 287,000
--------------------------------------------------------------------
30,000 * Microcom, Inc. 90,000
--------------------------------------------------------------------
30,000 Nashua Corp. 836,250
--------------------------------------------------------------------
24,000 National Computer Systems, Inc. 288,000
--------------------------------------------------------------------
46,300 National Data Corp. 839,187
--------------------------------------------------------------------
38,500 * NetFRAME Systems, Inc. 606,375
--------------------------------------------------------------------
96,200 * Network Systems Corp. 829,725
--------------------------------------------------------------------
54,000 * PDA Engineering 263,250
--------------------------------------------------------------------
18,000 * Phoenix Technology Ltd. 76,500
--------------------------------------------------------------------
22,500 * Quantum Corp. 286,875
--------------------------------------------------------------------
19,000 * Ross Systems, Inc. 163,875
--------------------------------------------------------------------
32,600 * Softech, Inc. 158,925
--------------------------------------------------------------------
64,701 * Sterling Software, Inc. 2,102,782
--------------------------------------------------------------------
14,700 * Symix Systems, Inc. 143,325
--------------------------------------------------------------------
13,400 TCA Cable TV, Inc. 391,950
--------------------------------------------------------------------
16,600 Tektronix, Inc. 383,875
--------------------------------------------------------------------
20,000 * Telebit Corp. 163,750
--------------------------------------------------------------------
8,500 Tseng Labs, Inc. 90,313
--------------------------------------------------------------------
31,600 * Unitrode Corp. 442,400
--------------------------------------------------------------------
27,625 Warner Insurance Services, Inc. 155,391
--------------------------------------------------------------------
25,000 * Zygo Corp. 175,000
-------------------------------------------------------------------- ------------
Total 30,685,999
-------------------------------------------------------------------- ------------
</TABLE>
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -------------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------
TRANSPORTATION/SERVICE--1.5%
--------------------------------------------------------------------
10,000 Arnold Industries, Inc. $ 400,000
--------------------------------------------------------------------
19,300 * Builders Transportation, Inc. 272,613
--------------------------------------------------------------------
16,875 * Cannon Express, Inc., Class A 198,281
--------------------------------------------------------------------
16,875 * Cannon Express, Inc., Class B 151,875
--------------------------------------------------------------------
10,300 Carolina Freight Corp. 132,612
--------------------------------------------------------------------
50,000 Intertrans Corp. 612,500
-------------------------------------------------------------------- ------------
Total 1,767,881
-------------------------------------------------------------------- ------------
UTILITIES--0.4%
--------------------------------------------------------------------
20,000 Middlesex Water Co. 425,000
-------------------------------------------------------------------- ------------
TOTAL COMMON STOCKS (IDENTIFIED COST, $100,484,009) 109,038,751
-------------------------------------------------------------------- ------------
MUTUAL FUND SHARES--6.2%
- ---------------------------------------------------------------------------------------
2,522,240 Dreyfus Cash Management Trust 2,522,240
--------------------------------------------------------------------
4,606,574 Fidelity Institutional Cash Money Market Fund 4,606,574
-------------------------------------------------------------------- ------------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 7,128,814
-------------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST, $107,612,823) $116,167,565+
-------------------------------------------------------------------- ------------
</TABLE>
* Non-income producing.
+ The cost of investments for federal tax purposes amounts to $107,617,173. The
net unrealized appreciation of investments on a federal tax cost basis amounts
to $8,550,392, which is comprised of $16,852,809 appreciation and $8,302,417
depreciation at October 31, 1993.
Note: The categories of investments are shown as a percentage of net assets
($115,395,984) at October 31, 1993.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT LIMITED TERM INCOME FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------------ -----------
<C> <C> <S> <C>
LONG-TERM U.S. TREASURY OBLIGATIONS--37.7%
- -----------------------------------------------------------------------------------------
U.S. TREASURY NOTES
------------------------------------------------------------------------
$2,000,000 3.875%, 10/31/95 $ 1,995,000
------------------------------------------------------------------------
3,000,000 4.25%, 7/31/95 3,016,410
------------------------------------------------------------------------
7,000,000 4.625%, 11/30/94-2/15/96 7,079,745
------------------------------------------------------------------------
3,000,000 4.75%, 9/30/98 2,989,230
------------------------------------------------------------------------
1,500,000 5.50%, 2/15/95 1,533,510
------------------------------------------------------------------------
2,000,000 5.625%, 8/31/97 2,073,440
------------------------------------------------------------------------
1,000,000 6.25%, 1/31/97 1,055,160
------------------------------------------------------------------------
1,500,000 6.875%, 3/31/97 1,614,135
------------------------------------------------------------------------
250,000 7.625%, 4/30/96 270,078
------------------------------------------------------------------------
520,000 7.875%, 2/15/96 562,167
------------------------------------------------------------------------
500,000 8.00%, 7/15/94 515,780
------------------------------------------------------------------------
3,300,000 8.50%, 6/30/94-11/15/95 3,464,287
------------------------------------------------------------------------
500,000 8.75%, 10/15/97 573,670
------------------------------------------------------------------------ -----------
TOTAL LONG-TERM U.S. TREASURY OBLIGATIONS
(IDENTIFIED COST $26,619,336) 26,742,612
------------------------------------------------------------------------ -----------
LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--17.5%
- -----------------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK--3.5%
------------------------------------------------------------------------
1,661,496 7.00%, 6/1/2010-5/1/2019 1,711,555
------------------------------------------------------------------------
736,264 7.50%, 8/1/97 763,874
------------------------------------------------------------------------ -----------
Total 2,475,429
------------------------------------------------------------------------ -----------
FEDERAL HOME LOAN MORTGAGE CORP.--5.3%
------------------------------------------------------------------------
1,000,000 4.60%, 7/13/98 1,001,689
------------------------------------------------------------------------
655,645 6.75%, (Series 1181D), 7/15/2001 662,609
------------------------------------------------------------------------
1,000,000 7.00%, (Series 1204G), 11/15/2005 1,053,120
------------------------------------------------------------------------
504,656 8.00%, (Series 1044B), 4/15/2016 509,228
------------------------------------------------------------------------
500,000 8.50%, (Series 116C), 12/15/2013 512,965
------------------------------------------------------------------------ -----------
Total 3,739,611
------------------------------------------------------------------------ -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--2.2%
------------------------------------------------------------------------
962,970 6.50%, 7/1/2000 992,755
------------------------------------------------------------------------
534,844 9.00%, 10/1/97-9/1/98 559,911
------------------------------------------------------------------------ -----------
Total 1,552,666
------------------------------------------------------------------------ -----------
</TABLE>
SHAWMUT LIMITED TERM INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------------ -----------
<C> <C> <S> <C>
LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS--CONTINUED
- -----------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--REMIC--4.8%
------------------------------------------------------------------------
$ 983,695 6.00%, (Series 1993--174KB), 5/25/2008 $ 987,069
------------------------------------------------------------------------
903,871 7.00%, (Series 1992-64A), 8/25/97 911,491
------------------------------------------------------------------------
746,400 8.00%, (Series 1991-43E), 2/25/2016 750,595
------------------------------------------------------------------------
471,967 8.25%, (Series 1989-59E), 6/25/2015 474,620
------------------------------------------------------------------------
227,781 8.95%, (Series 1998-10B), 5/25/2003 242,657
------------------------------------------------------------------------ -----------
Total 3,366,432
------------------------------------------------------------------------ -----------
MILITARY HOUSING--1.0%
------------------------------------------------------------------------
700,534 8.70%, 4/15/97 728,555
------------------------------------------------------------------------ -----------
STUDENT LOAN MARKETING ASSOCIATION--0.7%
------------------------------------------------------------------------
500,000 8.08%, 12/20/95 503,125
------------------------------------------------------------------------ -----------
TOTAL LONG-TERM U.S. GOVERNMENT AGENCY OBLIGATIONS
(IDENTIFIED COST, $11,637,130) 12,365,818
------------------------------------------------------------------------ -----------
CORPORATE BONDS--37.1%
- -----------------------------------------------------------------------------------------
BANKING--5.1%
------------------------------------------------------------------------
1,000,000 * Capstead Capital Corp., 6.75%, 10/1/2023 1,036,563
------------------------------------------------------------------------
1,000,000 First Chicago Corp., 9.25%, Medium Term Notes, 5/30/96 1,104,980
------------------------------------------------------------------------
1,000,000 First Union Corp., 5.95%, 7/1/95 1,024,380
------------------------------------------------------------------------
440,000 Security Pacific Corp., 8.49%, Medium Term Note, 12/27/96 485,703
------------------------------------------------------------------------ -----------
Total 3,651,626
------------------------------------------------------------------------ -----------
FINANCE--ASSET BACKED--5.0%
------------------------------------------------------------------------
246,205 Chase Manhattan Bank, 6.90%, Grantor Trust Certificate, 9/15/97 249,511
------------------------------------------------------------------------
105,964 Ford Motor Credit Corp., 8.75%, Grantor Trust Certificate, 10/16/95 107,652
------------------------------------------------------------------------
1,000,000 Ford Credit Auto Loan Master, 6.875%, 1/15/99 1,060,930
------------------------------------------------------------------------
752,692 General Motors Acceptance Corp., 4.30%-5.55%, Grantor Trust Certificate,
11/15/94-5/15/97 754,120
------------------------------------------------------------------------
1,338,852 ML Asset Backed Corp., 5.50%, 5/15/98 1,360,609
------------------------------------------------------------------------ -----------
Total 3,532,822
------------------------------------------------------------------------ -----------
FINANCE--AUTOMOTIVE--6.4%
------------------------------------------------------------------------
1,000,000 General Motors Acceptance Corp., 6.60%, Medium Term Note, 6/2/95 1,031,710
------------------------------------------------------------------------
2,743,789 Premier Auto Trust, 4.65-5.90%, 11/17/97-2/2/99 2,775,527
------------------------------------------------------------------------
649,232 Volvo Auto Receivables, 4.65%, Grantor Trust, 6/15/98 652,881
------------------------------------------------------------------------
51,538 U.S. Auto Receivables Trust, 8.00%, 3/15/96 52,537
------------------------------------------------------------------------ -----------
Total 4,512,655
------------------------------------------------------------------------ -----------
FINANCE--INSURANCE--1.4%
------------------------------------------------------------------------
1,000,000 AIG Matched Funding Corp., 5.314%, 9/25/98 995,000
------------------------------------------------------------------------ -----------
</TABLE>
SHAWMUT LIMITED TERM INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------------ -----------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- -----------------------------------------------------------------------------------------
FINANCE--LEASING--2.1%
------------------------------------------------------------------------
$1,500,000 Comdisco, Inc., 5.375%, Medium Term Note, 7/15/95 $ 1,507,950
------------------------------------------------------------------------ -----------
FINANCE--MORTGAGE PASSTHROUGH CMO--1.7%
------------------------------------------------------------------------
234,423 Lomas Mortgage Funding Corp., 9.00%, 9/20/2015 237,060
------------------------------------------------------------------------
982,129 Saxon Mortgage Securities Corp., 7.375%, 9/25/2023 1,004,994
------------------------------------------------------------------------ -----------
Total 1,242,054
------------------------------------------------------------------------ -----------
FINANCE--SERVICE--2.9%
------------------------------------------------------------------------
500,000 American Express Co., 8.625%, 7/15/94 516,045
------------------------------------------------------------------------
1,000,000 Merrill Lynch & Co., Inc. 5.50%, 7/28/95 1,018,740
------------------------------------------------------------------------
500,000 Smith Barney Holdings Corp., 5.375%, 6/1/96 505,781
------------------------------------------------------------------------ -----------
Total 2,040,566
------------------------------------------------------------------------ -----------
FOREIGN--0.3%
------------------------------------------------------------------------
200,000 International Bank for Reconciliation & Development, 8.625%, 10/1/95 216,004
------------------------------------------------------------------------ -----------
INDUSTRIAL--5.6%
------------------------------------------------------------------------
2,250,000 Pacific Dunlop Ltd., 6.54%, Medium Term Note, 5/1/95 2,324,003
------------------------------------------------------------------------
1,500,000 Tenneco Corp., 10.75%, 6/15/95 1,612,500
------------------------------------------------------------------------ -----------
Total 3,936,503
------------------------------------------------------------------------ -----------
MACHINERY--0.5%
------------------------------------------------------------------------
300,000 Caterpillar Financial Services, 8.95%, Medium Term Note, 5/21/2000 346,407
------------------------------------------------------------------------ -----------
PHARMACEUTICAL--1.2%
------------------------------------------------------------------------
800,000 Syntex U.S.A., 5.90%, Medium Term Note, 5/26/98 820,016
------------------------------------------------------------------------ -----------
RAILROADS--0.4%
------------------------------------------------------------------------
245,000 CSX Corp., 8.25%, 11/1/96 266,952
------------------------------------------------------------------------ -----------
RETAIL STORE--3.8%
------------------------------------------------------------------------
1,000,000 Sears Roebuck & Co., 9.04%, Medium Term Note, 12/10/93 1,005,060
------------------------------------------------------------------------
500,000 Reebok International, Ltd., 9.75%, 9/15/98 541,480
------------------------------------------------------------------------
1,150,000 TJX Cos, Inc., 4.55%, 10/21/96 1,150,000
------------------------------------------------------------------------ -----------
Total 2,696,540
------------------------------------------------------------------------ -----------
UTILITIES--0.7%
------------------------------------------------------------------------
500,000 Commonwealth Edison Co., 6.00%, 3/15/98 507,225
------------------------------------------------------------------------ -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST, $26,903,352) 26,272,320
------------------------------------------------------------------------ -----------
</TABLE>
SHAWMUT LIMITED TERM INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
- ---------- ----------------------------------------------------------------------- -----------
<C> <S> <C>
CERTIFICATES OF DEPOSIT--2.9%
- -------------------------------------------------------------------------------------
$1,000,000 Fleet Bank of Connecticut, 8.57%, 11/29/94 $ 1,046,960
-----------------------------------------------------------------------
1,000,000 First USA Bank of Wilmington, 5.05%, 10/24/95 1,002,050
----------------------------------------------------------------------- -----------
TOTAL CERTIFICATES OF DEPOSIT (IDENTIFIED COST, $2,063,670) 2,049,010
----------------------------------------------------------------------- -----------
MUTUAL FUND SHARES--7.4%
- -------------------------------------------------------------------------------------
1,806,722 Dreyfus Cash Management 1,806,722
-----------------------------------------------------------------------
3,470,647 Fidelity Institutional Cash Money Market Fund 3,470,647
----------------------------------------------------------------------- -----------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 5,277,369
----------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $72,500,857) $72,707,129+
----------------------------------------------------------------------- -----------
</TABLE>
* Delayed Delivery Security (Note 2E).
+ The cost of investments for federal tax purposes amounts to $72,500,857. The
net unrealized appreciation of investments on a federal tax cost basis amounts
to $206,272, which is comprised of $490,419 appreciation and $284,147
depreciation at October 31, 1993.
Note: The categories of investments are shown as a percentage of net assets
($70,857,455) at October 31, 1993.
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
CMO -- Collateralized Mortgage Obligation
REMIC -- Real Estate Mortgage Investment Conduit
</TABLE>
(See Notes which are an integral part of the Financial Statements)
THE SHAWMUT FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS
MUNICIPAL MUNICIPAL GROWTH AND
MONEY MONEY FIXED INCOME GROWTH
MARKET MARKET INCOME EQUITY EQUITY
FUND FUND FUND FUND FUND
- ------------------------------------------------- ---------- ---------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
- ------------------------------------------------
Investments in securities, at value (Note 2A) $6,589,809 $1,239,822 $100,668,841 $163,569,287 $25,802,299
- ------------------------------------------------
Cash 48 6,020 25,313 -- --
- ------------------------------------------------
Interest receivable 3,987 486 1,671,863 38,724 3,027
- ------------------------------------------------
Receivable for Fund shares sold -- -- 634,110 746,713 126,870
- ------------------------------------------------
Receivable for investments sold -- -- 946,667 2,698,389 --
- ------------------------------------------------
Dividends receivable -- -- -- 228,144 11,336
- ------------------------------------------------
Prepaid/deferred expenses (Note 2F) 3,394 937 33,386 46,494 10,907
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Total assets 6,597,238 1,247,265 103,980,180 167,327,751 25,954,439
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
LIABILITIES:
- ------------------------------------------------
Payable for investments purchased -- -- 1,841,250 3,355,214 417,151
- ------------------------------------------------
Payable to Bank -- -- -- 234,023 55,367
- ------------------------------------------------
Payable for Fund shares repurchased -- -- 20,300 232,222 15,882
- ------------------------------------------------
Dividends payable 902 155 -- -- --
- ------------------------------------------------
Accrued expenses and other liabilities 14,273 10,227 84,062 136,682 47,947
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Total liabilities 15,175 10,382 1,945,612 3,958,141 536,347
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Total net assets $6,582,063 $1,236,883 $102,034,568 $163,369,610 $25,418,092
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
NET ASSETS CONSIST OF:
- ------------------------------------------------
Paid-in-capital $6,582,063 $1,236,883 $ 97,899,214 $154,262,679 $24,151,065
- ------------------------------------------------
Net unrealized appreciation (depreciation) of
investments -- -- 3,599,038 4,761,289 812,143
- ------------------------------------------------
Accumulated net realized gain (loss) on
investments -- -- 483,546 4,324,678 448,318
- ------------------------------------------------
Undistributed net investment income -- -- 52,770 20,964 6,566
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Total net assets $6,582,063 $1,236,883 $102,034,568 $163,369,610 $25,418,092
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
NET ASSET VALUE, and Redemption Price Per Share:
(net assets/shares outstanding)
- ------------------------------------------------
Trust Shares $ 1.00 $ 1.00 $ 10.55 $ 10.69 $ 10.49
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Investment Shares $ 1.00 $ -- $ 10.55 $ 10.69 $ 10.49
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Offering Price Per Share+
- ------------------------------------------------
Trust Shares $ 1.00 $ 1.00 $ 10.55 $ 10.69 $ 10.49
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Investment Shares $ 1.00 $ -- $ 10.77* $ 11.14** $ 10.93**
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
SHARES OUTSTANDING:
- ------------------------------------------------
Trust Shares 150 1,236,883 8,765,693 13,757,710 1,980,846
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Investment Shares 6,581,913 -- 905,195 1,522,869 441,546
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
Investments, at identified cost $ -- $ -- $ 97,069,803 $158,807,998 $24,990,156
- ------------------------------------------------ --------- --------- ----------- ----------- ----------
</TABLE>
+ See "What Shares Cost" in the prospectus.
* Computation of Offering Price: 100/98 of net asset value
** Computation of Offering Price: 100/96 of net asset value
(See Notes which are an integral part of the Financial Statements)
THE SHAWMUT FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LIMITED PRIME SMALL
GOVERNMENT TERM MONEY CAPITALIZATION
INCOME INCOME MARKET EQUITY
FUND FUND FUND FUND
- ------------------------------------------------------------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
- ------------------------------------------------------------
Repurchase agreements (Note 2B) $ -- $ -- $ 35,248,090 $ --
- ------------------------------------------------------------
Investments in securities (Note 2A) 75,141,758 72,707,129 251,792,464 116,167,565
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Total investments, at value 75,141,758 72,707,129 287,040,554 116,167,565
- ------------------------------------------------------------
Cash -- 5,629 -- --
- ------------------------------------------------------------
Interest receivable 1,213,953 828,957 197,022 18,257
- ------------------------------------------------------------
Receivable for Fund shares sold 467,408 498,858 509 727,167
- ------------------------------------------------------------
Receivable for investments sold -- -- -- 132,939
- ------------------------------------------------------------
Dividends receivable -- -- -- 49,619
- ------------------------------------------------------------
Prepaid/deferred expenses (Note 2F) 28,121 20,070 79,652 33,234
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Total assets 76,851,240 74,060,643 287,317,737 117,128,781
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
LIABILITIES:
- ------------------------------------------------------------
Payable for investments purchased 500,000 3,033,125 -- 965,441
- ------------------------------------------------------------
Payable to Bank -- -- -- --
- ------------------------------------------------------------
Payable for Fund shares repurchased 69,745 111,930 13,482 45,231
- ------------------------------------------------------------
Dividends payable -- -- 524,026 --
- ------------------------------------------------------------
Accrued expenses and other liabilities 70,284 58,133 170,591 722,125
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Total liabilities 640,029 3,203,188 708,099 1,732,797
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Total net assets $76,211,211 $70,857,455 $286,609,638 $115,395,984
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
NET ASSETS CONSIST OF:
- ------------------------------------------------------------
Paid-in-capital $74,952,327 $70,960,933 $286,609,638 $103,478,679
- ------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments 1,282,509 206,272 -- 8,554,742
- ------------------------------------------------------------
Accumulated net realized gain (loss) on investments (54,371) (310,753) -- 3,369,998
- ------------------------------------------------------------
Undistributed net investment income 30,746 1,003 -- --
- ------------------------------------------------------------
Accumulated distributions in excess of net investment income
(Note 3) -- -- -- (7,435)
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Total net assets $76,211,211 $70,857,455 $286,609,638 $115,395,984
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
NET ASSET VALUE, and Redemption Price Per Share:
(net assets/shares outstanding)
- ------------------------------------------------------------
Trust Shares $ 10.26 $ 10.00 $ 1.00 $ 11.21
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Investment Shares $ 10.26 $ 10.00 $ 1.00 $ 11.21
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Offering Price Per Share+
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Trust Shares $ 10.26 $ 10.00 $ 1.00 $ 11.21
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Investment Shares $ 10.47* $ 10.20* $ 1.00 $ 11.68**
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
SHARES OUTSTANDING:
- ------------------------------------------------------------
Trust Shares 6,083,389 6,698,128 257,851,325 8,952,892
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Investment Shares 1,346,680 385,813 28,758,313 1,339,205
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
Investments, at identified cost $73,859,249 $72,500,857 $ -- $107,612,823
- ------------------------------------------------------------ ---------- ---------- ----------- -----------
</TABLE>
+ See "What Shares Cost" in the prospectus.
* Computation of Offering Price: 100/98 of net asset value
** Computation of Offering Price: 100/96 of net asset value
(See Notes which are an integral part of the Financial Statements)
THE SHAWMUT FUNDS
STATEMENTS OF OPERATIONS
YEAR ENDED OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS
MUNICIPAL MUNICIPAL GROWTH AND
MONEY MONEY FIXED INCOME GROWTH
MARKET MARKET INCOME EQUITY EQUITY
FUND* FUND** FUND*** FUND*** FUND***
- ------------------------------------------------- ------- ------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
- ------------------------------------------------
Interest income $ 5,469 $ 764 $5,217,122 $ 380,548 $ 35,308
- ------------------------------------------------
Dividend income -- -- -- 3,302,365 257,480
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Total income (Note 2C) 5,469 764 5,217,122 3,682,913 292,788
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Expenses:
- ------------------------------------------------
Investment advisory fee (Note 5) 1,104 134 605,022 1,191,845 222,953
- ------------------------------------------------
Trustees' Fee 70 25 784 1,078 480
- ------------------------------------------------
Administrative personnel and services fees
(Note 5) 265 32 94,878 149,519 28,063
- ------------------------------------------------
Custodian fees (Note 5) 44 5 8,011 10,719 4,900
- ------------------------------------------------
Transfer and dividend disbursing agent fees and
expenses (Note 5) 2,275 2,200 21,919 26,326 21,555
- ------------------------------------------------
Auditing fees -- -- 1,600 1,600 1,600
- ------------------------------------------------
Legal fees 1,500 1,450 2,814 4,115 2,815
- ------------------------------------------------
Printing and postage 586 950 11,571 25,664 8,663
- ------------------------------------------------
Recordkeeping fees (Note 5) 5,555 3,560 51,733 52,054 44,314
- ------------------------------------------------
Insurance premiums 45 529 2,000 15,672 1,323
- ------------------------------------------------
Distribution services fee (Note 5) 1,104 -- 17,497 33,658 8,860
- ------------------------------------------------
Miscellaneous 296 576 8,537 10,858 4,498
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Total expenses 12,844 9,461 826,366 1,523,108 350,024
- ------------------------------------------------
Deduct:
- ------------------------------------------------
Waiver of investment advisory fee (Note 5) 1,104 134 169,100 319,550 75,986
- ------------------------------------------------
Waiver of custodian fees (Note 5) 44 5 -- -- --
- ------------------------------------------------
Waiver of distribution services fee (Note 5) 552 -- 8,749 16,829 4,431
- ------------------------------------------------
Waiver of administrative personnel and
services fees (Note 5) 265 32 -- -- 28,063
- ------------------------------------------------
Reimbursement of other operating expenses
(Note 5) 10,084 9,261 -- -- --
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Net expenses 795 29 648,517 1,186,729 241,544
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Net investment income 4,674 735 4,568,605 2,496,184 51,244
- ------------------------------------------------ ------ ----- --------- ---------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
- ------------------------------------------------
Net realized gain (loss) on investment
transactions (identified cost basis) -- -- 483,546 4,324,678 448,318
- ------------------------------------------------
Net change in unrealized appreciation
(depreciation) of investments -- -- 3,599,038 4,761,289 812,143
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Net realized and unrealized gain (loss) on
investments -- -- 4,082,584 9,085,967 1,260,461
- ------------------------------------------------ ------ ----- --------- ---------- ---------
Change in net assets resulting from
operations $ 4,674 $ 735 $8,651,189 $11,582,151 $1,311,705
- ------------------------------------------------ ------ ----- --------- ---------- ---------
</TABLE>
* 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)
THE SHAWMUT FUNDS
STATEMENTS OF OPERATIONS
YEAR ENDED OCTOBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LIMITED PRIME SMALL
GOVERNMENT TERM MONEY CAPITALIZATION
INCOME INCOME MARKET EQUITY
FUND* FUND* FUND** FUND*
- ------------------------------------------------------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
- -------------------------------------------------------
Interest income $3,709,125 $3,302,457 $7,407,634 $ 260,971
- -------------------------------------------------------
Dividend income -- -- -- 587,689
- ------------------------------------------------------- ---------- ---------- ---------- -----------
Total income (Note 2C) 3,709,125 3,302,457 7,407,634 848,660
- ------------------------------------------------------- ---------- ---------- ---------- -----------
EXPENSES:
- -------------------------------------------------------
Investment advisory fee (Note 5) 443,271 411,275 1,128,024 817,430
- -------------------------------------------------------
Trustees' fee 594 480 3,554 1,848
- -------------------------------------------------------
Administrative personnel and services fees (Note 5) 69,486 64,554 283,923 102,587
- -------------------------------------------------------
Custodian fees (Note 5) 6,534 5,350 15,717 7,827
- -------------------------------------------------------
Transfer and dividend disbursing agent fees and
expenses (Note 5) 22,159 21,293 24,417 27,082
- -------------------------------------------------------
Auditing fees 1,600 1,600 1,600 1,600
- -------------------------------------------------------
Legal fees 2,815 2,814 4,355 4,499
- -------------------------------------------------------
Printing and postage 7,227 9,000 21,159 12,538
- -------------------------------------------------------
Recordkeeping fees (Note 5) 47,980 48,418 63,702 64,580
- -------------------------------------------------------
Insurance premiums 328 384 12,030 8,740
- -------------------------------------------------------
Distribution services fee (Note 5) 24,926 5,779 20,984 29,532
- -------------------------------------------------------
Miscellaneous 7,300 6,541 20,775 8,293
- ------------------------------------------------------- ---------- ---------- ---------- -----------
Total expenses 634,220 577,488 1,600,240 1,086,556
- -------------------------------------------------------
Deduct:
- -------------------------------------------------------
Waiver of investment advisory fee (Note 5) 122,880 116,939 270,978 230,774
- -------------------------------------------------------
Waiver of distribution services fees (Note 5) 12,463 2,889 10,492 14,766
- ------------------------------------------------------- ---------- ---------- ---------- -----------
Net expenses 498,877 457,660 1,318,770 841,016
- ------------------------------------------------------- ---------- ---------- ---------- -----------
Net investment income 3,210,248 2,844,797 6,088,864 7,644
- ------------------------------------------------------- ---------- ---------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- -------------------------------------------------------
Net realized gain (loss) on investment transactions
(identified cost basis) (54,371) (310,753) -- 3,369,998
- -------------------------------------------------------
Net change in unrealized appreciation (depreciation) of
investments 1,282,509 206,272 -- 8,554,742
- ------------------------------------------------------- ---------- ---------- ---------- -----------
Net realized and unrealized gain (loss) on
investments 1,228,138 (104,481) -- 11,924,740
- ------------------------------------------------------- ---------- ---------- ---------- -----------
Change in net assets resulting from operations $4,438,386 $2,740,316 $6,088,864 $11,932,384
- ------------------------------------------------------- ---------- ---------- ---------- -----------
</TABLE>
* For the period from December 14, 1992 (date of initial public investment) to
October 31, 1993.
** Reflects operations 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.
(See Notes which are an integral part of the Financial Statements)
THE SHAWMUT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT MASSACHUSETTS GROWTH
MUNICIPAL MUNICIPAL AND
MONEY MONEY FIXED INCOME GROWTH
MARKET MARKET INCOME EQUITY EQUITY
FUND FUND FUND FUND FUND
---------- ---------- ------------ ------------ -----------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/93* 10/31/93** 10/31/93*** 10/31/93*** 10/31/93***
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ------------------------------------------
OPERATIONS--
- ------------------------------------------
Net investment income $ 4,674 $ 735 $ 4,568,605 $ 2,496,184 $ 51,244
- ------------------------------------------
Net realized gain on investment
transactions -- -- 483,546 4,324,678 448,318
- ------------------------------------------
Change in unrealized appreciation of
investments -- -- 3,599,038 4,761,289 812,143
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
Change in net assets resulting from
operations 4,674 735 8,651,189 11,582,151 1,311,705
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 3)--
- ------------------------------------------
Dividends to shareholders from net
investment income:
- ------------------------------------------
Trust Shares -- (735) (4,330,490) (2,334,825) (43,156)
- ------------------------------------------
Investment Shares (4,674) -- (185,345) (140,395) (1,522)
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
Change in net assets from distributions
to shareholders (4,674) (735) (4,515,835) (2,475,220) (44,678)
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
FUND SHARE (PRINCIPAL) TRANSACTIONS
(NOTE 4)--
- ------------------------------------------
Net proceeds from sale of shares 6,678,827 1,236,303 113,243,761 173,784,764 40,120,471
- ------------------------------------------
Net asset value of shares issued to
shareholders electing to receive payment
of dividends in Fund shares 3,772 580 150,258 134,568 1,520
- ------------------------------------------
Cost of shares redeemed (100,536) -- (15,494,805) (19,656,653) (15,970,926)
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
Change in net assets from Fund share
transactions 6,582,063 1,236,883 97,899,214 154,262,679 24,151,065
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
Change in net assets 6,582,063 1,236,883 102,034,568 163,369,610 25,418,092
- ------------------------------------------
NET ASSETS:
- ------------------------------------------
Beginning of period -- -- -- -- --
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
End of period 6,582,063 1,236,883 102,034,568 163,369,610 25,418,092
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
Undistributed net investment income
included in net assets at end of period $ -- $ -- $ 52,770 $ 20,964 $ 6,566
- ------------------------------------------ ---------- ---------- ------------ ------------ -----------
</TABLE>
* 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)
THE SHAWMUT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE LIMITED PRIME SMALL
GOVERNMENT TERM MONEY CAPITALIZATION
INCOME INCOME MARKET EQUITY
FUND FUND FUND FUND
----------- ----------- ------------ ------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/93* 10/31/93* 10/31/93** 10/31/93*
- ----------------------------------------------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -----------------------------------------------
OPERATIONS--
- -----------------------------------------------
Net investment income $ 3,210,248 $ 2,844,797 $ 6,088,864 $ 7,644
- -----------------------------------------------
Net realized gain (loss) on investment
transactions (54,371) (310,753) -- 3,369,998
- -----------------------------------------------
Change in unrealized appreciation of
investments 1,282,509 206,272 -- 8,554,742
- ----------------------------------------------- ----------- ----------- ------------ ------------
Change in net assets resulting from
operations 4,438,386 2,740,316 6,088,864 11,932,384
- ----------------------------------------------- ----------- ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 3)--
- -----------------------------------------------
Dividends to shareholders from net investment
income:
- -----------------------------------------------
Trust Shares (2,921,736) (2,785,883) (5,990,070) (7,644)
- -----------------------------------------------
Investment Shares (257,766) (57,911) (98,794) --
- -----------------------------------------------
Dividends to shareholders in excess of net
investment income--Trust Shares -- -- -- (7,435)
- ----------------------------------------------- ----------- ----------- ------------ ------------
Change in net assets from distributions to
shareholders (3,179,502) (2,843,794) (6,088,864) (15,079)
- ----------------------------------------------- ----------- ----------- ------------ ------------
FUND SHARE (PRINCIPAL) TRANSACTIONS (NOTE 4)--
- -----------------------------------------------
Net proceeds from sale of shares 88,073,925 93,789,581 651,556,019 109,180,277
- -----------------------------------------------
Net asset value of shares issued to
shareholders electing to receive payment of
dividends in Fund shares 219,922 45,667 94,351 --
- -----------------------------------------------
Cost of shares redeemed (13,341,520) (22,874,315) (365,140,732) (5,701,598)
- ----------------------------------------------- ----------- ----------- ------------ ------------
Change in net assets from Fund share
transactions 74,952,327 70,960,933 286,509,638 103,478,679
- ----------------------------------------------- ----------- ----------- ------------ ------------
Change in net assets 76,211,211 70,857,455 286,509,638 115,395,984
- -----------------------------------------------
NET ASSETS:
- -----------------------------------------------
Beginning of period -- -- 100,000 --
- ----------------------------------------------- ----------- ----------- ------------ ------------
End of period 76,211,211 70,857,455 286,609,638 115,395,984
- ----------------------------------------------- ----------- ----------- ------------ ------------
Undistributed net investment income included in
net assets at end of period $ 30,746 $ 1,003 $ -- $ --
- ----------------------------------------------- ----------- ----------- ------------ ------------
</TABLE>
* For the period from December 14, 1992 (date of initial public investment) to
October 31, 1993.
** Reflects operations 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.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT CONNECTICUT MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993*
- ----------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------------------
Net investment income 0.001
- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.001)
- ------------------------------------------------------------------------------ -------
NET ASSET VALUE, END OF PERIOD $1.00
- ------------------------------------------------------------------------------ -------
TOTAL RETURN** 0.14%
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------------------------
Expenses 0.36%(a)
- ------------------------------------------------------------------------------
Net investment income 2.12%(a)
- ------------------------------------------------------------------------------
Expense waiver/reimbursement (b) 5.46%(a)
- ------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $6,582
- ------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from October 4, 1993 (date of initial
public investment) to October 31, 1993.
** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(See Notes which are an integral part of the Financial Statements)
SHAWMUT MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- ----------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------------------
Net investment income 0.001
- ------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.001)
- ------------------------------------------------------------------------------ -------
NET ASSET VALUE, END OF PERIOD $1.00
- ------------------------------------------------------------------------------ -------
TOTAL RETURN** 0.12%
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------------------------
Expenses 0.11%(a)
- ------------------------------------------------------------------------------
Net investment income 2.75%(a)
- ------------------------------------------------------------------------------
Expense waiver/reimbursement (b) 35.31%(a)
- ------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $1,237
- ------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from October 5, 1993 (date of initial
public investment) to October 31, 1993.
** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(See Notes which are an integral part of the Financial Statements)
SHAWMUT FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- -----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------
Net investment income 0.55
- -----------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.55
- ----------------------------------------------------------------------------------------------- ------
Total from investment operations 1.10
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.55)
- ----------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.55
- ----------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 11.26%
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------
Expenses 0.85%(a)
- -----------------------------------------------------------------------------------------------
Net investment income 6.06%(a)
- -----------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.22%(a)
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $92,485
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 33%
- -----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993**
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.23
- -----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------
Net investment income 0.40
- -----------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.31
- ----------------------------------------------------------------------------------------------- ------
Total from investment operations 0.71
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.39)
- ----------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.55
- ----------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 7.02%
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------
Expenses 1.12%(a)
- -----------------------------------------------------------------------------------------------
Net investment income 5.61%(a)
- -----------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.48%(a)
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $9,550
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 33%
- -----------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(c) Represents portfolio turnover rate for the entire Fund.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT GROWTH AND INCOME EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31
TRUST SHARES 1993*
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- -----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------
Net investment income 0.18
- -----------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.69
- ----------------------------------------------------------------------------------------------- ------
Total from investment operations 0.87
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.18)
- ----------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.69
- ----------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 8.80%
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------
Expenses 0.98%(a)
- -----------------------------------------------------------------------------------------------
Net investment income 2.11%(a)
- -----------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.27%(a)
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $147,090
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 38%
- -----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993**
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.23
- -----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------
Net investment income 0.15
- -----------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.48
- ----------------------------------------------------------------------------------------------- ------
Total from investment operations 0.63
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.17)
- ----------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.69
- ----------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 6.20%
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------
Expenses 1.25%(a)
- -----------------------------------------------------------------------------------------------
Net investment income 1.77%(a)
- -----------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.53%(a)
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $16,280
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 38%
- -----------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expenses/income ratios due to waivers or
reimbursements of expenses (Note 5).
(c) Represents portfolio turnover rate for the entire Fund.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT GROWTH EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- -------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------
Net investment income 0.023
- -------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.487
- ------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.510
- -------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.019)
- ------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.49
- ------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 5.09%
- -------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------------------------------------
Expenses 1.06%(a)
- -------------------------------------------------------------------------------------------------
Net investment income 0.26%(a)
- -------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.47%(a)
- -------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $20,787
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 71%
- -------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993**
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.01
- -------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------
Net investment income 0.004
- -------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.480
- ------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.484
- -------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.004)
- ------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.49
- ------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 4.84%
- -------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------------------------------------
Expenses 1.37%(a)
- -------------------------------------------------------------------------------------------------
Net investment income (0.10)%(a)
- -------------------------------------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.72%(a)
- -------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $4,631
- -------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 71%
- -------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(c) Represents portfolio turnover rate for the entire Fund.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment income 0.52
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.26
- ---------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.78
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.52)
- ---------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.26
- ---------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 7.97%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------
Expenses 0.88%(a)
- ----------------------------------------------------------------------------------------------------
Net investment income 5.83%(a)
- ----------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.26%(a)
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $62,399
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 30%
- ----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993**
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.18
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment income 0.37
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.08
- ---------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.45
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.37)
- ---------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.26
- ---------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 4.45%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------
Expenses 1.15%(a)
- ----------------------------------------------------------------------------------------------------
Net investment income 5.41%(a)
- ----------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.50%(a)
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $13,812
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 30%
- ----------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(c) Represents portfolio turnover rate for the entire Fund.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT LIMITED TERM INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment income 0.49
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.00
- ---------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.49
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.49)
- ---------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.00
- ---------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 5.02%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------
Expenses 0.88%(a)
- ----------------------------------------------------------------------------------------------------
Net investment income 5.54%(a)
- ----------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.23%(a)
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $66,998
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 53%
- ----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 3
INVESTMENT SHARES 1993**
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.09
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment income 0.34
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.09)
- ---------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.25
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.34)
- ---------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $10.00
- ---------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 2.57%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------
Expenses 1.13%(a)
- ----------------------------------------------------------------------------------------------------
Net investment income 5.07%(a)
- ----------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.48%(a)
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $3,859
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 53%
- ----------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(c) Represents portfolio turnover rate for the entire Fund.
(See Notes which are an integral part of the Financial Statements)
SHAWMUT PRIME MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
- -----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------
Net investment income 0.02
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.02)
- ----------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $ 1.00
- ----------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 2.41%
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------
Expenses 0.58%(a)
- -----------------------------------------------------------------------------------------------
Net investment income 2.71%(a)
- -----------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.12%(a)
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $257,851
- -----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993**
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
- -----------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------
Net investment income 0.02
- -----------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.02)
- ----------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $ 1.00
- ----------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 1.73%
- -----------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------------------------
Expenses 0.85%(a)
- -----------------------------------------------------------------------------------------------
Net investment income 2.36%(a)
- -----------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.37%(a)
- -----------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $28,758
- -----------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations 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.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(See Notes which are an integral part of the Financial Statements)
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
TRUST SHARES 1993*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment income 0.002
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 1.210
- ---------------------------------------------------------------------------------------------------- ------
Total from investment operations 1.212
- ----------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.002)
- ---------------------------------------------------------------------------------------------------- ------
NET ASSET VALUE, END OF PERIOD $11.21
- ---------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 12.12%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------
Expenses 1.01%(a)
- ----------------------------------------------------------------------------------------------------
Net investment income 0.02%(a)
- ----------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.28%(a)
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $100,382
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 29%
- ----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31,
INVESTMENT SHARES 1993**
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.52
- ----------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment loss (0.008)
- ----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.698
- ---------------------------------------------------------------------------------------------------- ------
Total from investment operations 0.690
- ---------------------------------------------------------------------------------------------------- ------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.000)
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.21
- ---------------------------------------------------------------------------------------------------- ------
TOTAL RETURN*** 6.56%
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------
Expenses 1.33%(a)
- ----------------------------------------------------------------------------------------------------
Net investment loss (0.19)%(a)
- ----------------------------------------------------------------------------------------------------
Expense waiver/reimbursement(b) 0.54%(a)
- ----------------------------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $15,014
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(c) 29%
- ----------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from December 14, 1992 (date of initial
public investment) to October 31, 1993.
** Reflects operations for the period from February 12, 1993 (date of initial
public offering) to October 31, 1993.
*** Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
(a) Computed on an annualized basis.
(b) Increase/decrease in above expense/income ratios due to waivers or
reimbursements of expenses (Note 5).
(c) Represents portfolio turnover rate for the entire Fund.
(See Notes which are an integral part of the Financial Statements)
THE SHAWMUT FUNDS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1993
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The Shawmut Funds (the "Trust") is registered under the Investment Company Act
of 1940, as amended, as an open-end management investment company. The Trust
consists of eleven separate portfolios (hereinafter each individually referred
to as a "Fund" or collectively as the "Funds") at October 31, 1993, as follows:
Shawmut Connecticut Municipal Money Market Fund ("Connecticut Municipal Money
Market Fund")
Shawmut Massachusetts Municipal Money Market Fund ("Massachusetts Municipal
Money Market Fund")
Shawmut Fixed Income Fund ("Fixed Income Fund")
Shawmut Growth and Income Equity Fund ("Growth and Income Equity Fund")
Shawmut Growth Equity Fund ("Growth Equity Fund")
Shawmut Intermediate Government Income Fund ("Intermediate Government Income
Fund")
Shawmut Limited Term Income Fund ("Limited Term Income Fund")
Shawmut Prime Money Market Fund ("Prime Money Market Fund")
Shawmut Small Capitalization Equity Fund ("Small Capitalization Equity Fund")
Shawmut Connecticut Intermediate Municipal Income Fund ("Connecticut
Intermediate Municipal Income Fund")
Shawmut Massachusetts Intermediate Municipal Income Fund ("Massachusetts
Intermediate Municipal Income Fund")
The financial statements of Connecticut Intermediate Municipal Income Fund and
Massachusetts Intermediate Municipal Income Fund are presented separately.
The assets of each Fund of the Trust are segregated and a shareholder's interest
is limited to the Fund in which shares are held.
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"). Investment Shares are identical in all respects to Trust Shares except
that Investment Shares are sold pursuant to a distribution plan ("Plan") adopted
in accordance with Investment Company Act Rule 12b-1. Under the Plan, the Funds
pay Federated Securities Corp. (the "Distributor") a fee at an annual rate up to
0.50 of 1% of the average daily net assets of the Investment Shares to finance
any activity which is principally intended to result in the sale of Investment
Shares.
The Trust Shares of the Connecticut Municipal Money Market Fund were not being
offered as October 31, 1993.
(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. The
policies are in conformity with generally accepted accounting principles.
<TABLE>
<S> <C>
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
A. INVESTMENT VALUATIONS--Listed equity securities are valued at the last sale price reported
on national securities exchanges. Unlisted or listed securities for which there were no
sales on the valuation date are valued at the mean between bid and asked prices. Listed
Corporate bonds and other fixed income securities are valued at the last sale price reported
on a national securities exchange on that day, if available. Unlisted bonds and other fixed
income securities are valued at the mean between the bid and asked prices provided by an
independent pricing service. U.S. government obligations generally are valued at the mean
between the over-the-counter bid and asked prices as furnished by an independent pricing
service. Short-term obligations are generally valued at the mean between bid and asked
prices as furnished by an independent pricing service. Short-term obligations with
maturities of 60 days or less are valued at amortized cost, which approximates value.
Investments in other regulated investment companies are valued at net asset value.
The money market funds use the amortized cost method to value their portfolio securities in
accordance with Rule 2a-7 under the Investment Company Act of 1940.
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 vault, all securities as collateral held 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 at least equals the principal amount of the
repurchase transaction, 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
guidelines established by 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. INCOME--Dividend income for Growth and Income Equity Fund, Growth Equity Fund, and Small
Capitalization Equity Fund is recorded on the ex-dividend date. Interest income is recorded
on the accrual basis and includes discount earned, less any premium.
Interest income for Fixed Income Fund, Intermediate Government Income Fund, and Limited Term
Income Fund is recorded on the accrual basis and includes discount earned less any premium,
on short-term obligations, and original issue discount on all other debt securities.
Interest income for Connecticut Municipal Money Market Fund, Massachusetts Municipal Money
Market Fund, and Prime Money Market Fund is recorded on the accrual basis and includes
discount earned less any premium plus net realized gains, if any.
D. FEDERAL TAXES--It is the policy of the Funds to comply with the provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute to shareholders
each year substantially all of their taxable income, including any net realized gain on
investments. Accordingly, no provision for federal tax is necessary.
At October 31, 1993 Intermediate Government Income Fund and Limited Term Income Fund, for
federal tax purposes, had capital loss carryforwards of $54,371 and $310,753, respectively,
which will reduce the Funds' taxable income arising from a future net realized gain on
investments, if any, to the extent permitted by the Internal Revenue Code, and thus will
reduce the amount of the distributions to shareholders which would otherwise be necessary to
relieve the Funds of any liability for federal tax. Pursuant to the Code, such capital loss
carryforward will expire in 2001.
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in when-issued or
delayed delivery transactions. The Funds will record when-issued securities 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.
</TABLE>
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
F. DEFERRED EXPENSES--The costs incurred by each Fund with respect to its initial registration,
excluding the initial expense of registering the shares, have been deferred and are being
amortized using the straight-line method over a period of five years from each Fund's
commencement date.
G. EXPENSES--Expenses of the Funds (other than distribution service fees) and waivers and
reimbursements, if any, are allocated to each class of shares based on their relative daily
average net assets for the period. Expenses incurred by the Funds which do not specifically
relate to an individual fund are allocated among all Funds based on a Fund's relative net
asset value size or as deemed appropriate by the administrator.
H. OTHER--Investment transactions are accounted for on the date of the transaction.
</TABLE>
(3) DIVIDENDS
Dividends and distributions are declared and paid quarterly to all shareholders
invested in Growth and Income Equity Fund, Growth Equity Fund, and Small
Capitalization Equity Fund on the record date. Connecticut Municipal Money
Market Fund, Massachusetts Municipal Money Market Fund, Prime Money Market Fund
compute their net income daily and, immediately prior to the calculation of
their net asset value at the close of business, declare and record dividends to
shareholders of record at the time of the previous computation of the Funds' net
asset value. Payment of dividends is made monthly in cash, or in additional
shares at the net asset value on the payable date. Dividends and distributions
are declared and paid monthly to all shareholders invested in Fixed Income Fund,
Intermediate Government Income Fund and Limited Term Income Fund. Dividends are
recorded on the ex-dividend date.
Capital gains realized by Fixed Income Fund, Growth and Income Equity Fund,
Growth Equity Fund, Intermediate Government Income Fund, Limited Term Income
Fund, and Small Capitalization Fund, if any, are distributed proportionately to
each class of shares at least once every twelve months. Dividends will be
reinvested in additional shares of the same class at the ex-dividend date net
asset value without a sales charge unless cash payments are requested by
shareholders in writing to the Funds.
The amount shown in the financial statements for net investment income for the
period ended October 31, 1993 differ from those determined for tax purposes
because of certain timing differences. This resulted in distributions to
shareholders in excess of net investment income which were recorded for
financial statement purposes only. This distribution does not represent a return
of capital for federal income tax purposes.
(4) 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
Fund and separate class of shares. Transactions in Fund shares were as follows:
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
For the Period Ended October 31, 1993:
<TABLE>
<CAPTION>
CONNECTICUT MUNICIPAL MASSACHUSETTS MUNICIPAL
MONEY MARKET MONEY MARKET FIXED INCOME
FUND FUND FUND
--------------------------- ----------------------------- ---------------------------
TRUST SHARES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ------------------------------- ---------- ------------ ------------ ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 150 $ 150 1,236,303 $ 1,236,303 10,214,367 $103,565,799
- ------------------------------
Shares issued to shareholders
electing to receive payments of
dividends in fund shares -- -- 580 580 -- --
- ------------------------------
Shares redeemed -- -- -- -- (1,448,674) (15,079,071)
- ------------------------------ --------- ----------- ---------- ----------- --------- -----------
150 $ 150 1,236,883 $ 1,236,883 8,765,693 $ 88,486,728
--------- ----------- ---------- ----------- --------- -----------
INVESTMENT SHARES
- ------------------------------
Shares Sold 6,678,677 $ 6,678,677 -- $ -- 930,761 $ 9,677,962
- ------------------------------
Shares issued to shareholders
electing to receive payments of
dividends in fund shares 3,772 3,772 -- -- 14,366 150,253
- ------------------------------
Shares redeemed (100,536) (100,536) -- -- (39,932) (415,729)
- ------------------------------ --------- ----------- ---------- ----------- --------- -----------
6,581,913 $ 6,581,913 -- -- 905,195 $ 9,412,486
--------- ----------- ---------- ----------- --------- -----------
Change in net assets resulting
from fund share transactions 6,582,063 $ 6,582,063 1,236,883 $ 1,236,883 9,670,888 $ 97,899,214
--------- ----------- ---------- ----------- --------- -----------
</TABLE>
For the Period Ended October 31, 1993:
<TABLE>
<CAPTION>
GROWTH AND INCOME INTERMEDIATE GOVERNMENT
EQUITY FUND GROWTH EQUITY FUND INCOME FUND
--------------------------- ----------------------------- ---------------------------
TRUST SHARES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ------------------------------- ---------- ------------ ------------ ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 15,585,818 $157,356,704 3,558,465 $ 35,585,725 7,286,148 $ 73,447,437
- ------------------------------
Shares issued to shareholders
electing to receive payments of
dividends in fund shares -- -- -- -- -- --
- ------------------------------
Shares redeemed (1,828,108) (18,850,279) (1,577,619) (15,770,615) (1,202,759) (12,271,381)
- ------------------------------ --------- ----------- ---------- ----------- --------- -----------
13,757,710 $138,506,425 1,980,846 $ 19,815,110 6,083,389 $ 61,176,056
--------- ----------- ---------- ----------- --------- -----------
INVESTMENT SHARES
- ------------------------------
Shares Sold 1,587,317 $ 16,428,060 461,439 $ 4,534,746 1,429,918 $ 14,626,488
- ------------------------------
Shares issued to shareholders
electing to receive payments of
dividends in fund shares 12,941 134,565 151 1,520 21,484 219,918
- ------------------------------
Shares redeemed (77,389) (806,371) (20,044) (200,311) (104,722) (1,070,135)
- ------------------------------ --------- ----------- ---------- ----------- --------- -----------
1,522,869 $ 15,756,254 441,546 $ 4,335,955 1,346,680 $ 13,776,271
--------- ----------- ---------- ----------- --------- -----------
Change in net assets resulting
from fund share transactions 15,280,579 $154,262,679 2,422,392 $ 24,151,065 7,430,069 $ 74,952,327
--------- ----------- ---------- ----------- --------- -----------
</TABLE>
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
For the Period ended October 31, 1993:
<TABLE>
<CAPTION>
LIMITED TERM PRIME MONEY SMALL CAPITALIZATION
INCOME FUND MARKET FUND EQUITY FUND
--------------------------- ----------------------------- ---------------------------
TRUST SHARES SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
- ------------------------------- ---------- ------------ ------------ ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 8,951,067 $ 89,744,129 615,788,528 $615,788,528 9,429,143 $ 94,833,359
- ------------------------------
Shares issued to shareholders
electing to receive payments of
dividends in fund shares -- -- 2 2 -- --
- ------------------------------
Shares redeemed (2,252,939) (22,657,941) (358,037,205) (358,037,205) (476,251) (5,009,041)
- ------------------------------ --------- ----------- ---------- ----------- --------- -----------
6,698,128 $ 67,086,188 257,751,325 $257,751,325 8,952,892 $ 89,824,318
--------- ----------- ---------- ----------- --------- -----------
INVESTMENT SHARES
- ------------------------------
Shares Sold 402,814 $ 4,045,452 35,767,491 $ 35,767,491 1,406,367 $ 14,346,918
- ------------------------------
Shares issued to shareholders
electing to receive payments of
dividends in fund shares 4,558 45,663 94,349 94,349 -- --
- ------------------------------
Shares redeemed (21,559) (216,370) (7,103,527) (7,103,527) (67,162) (692,557)
- ------------------------------ --------- ----------- ---------- ----------- --------- -----------
385,813 $ 3,874,745 28,758,313 $ 28,758,313 1,339,205 $ 13,654,361
--------- ----------- ---------- ----------- --------- -----------
Change in net assets resulting
from fund share transactions 7,083,941 $ 70,960,933 286,509,638 $286,509,638 10,292,097 $103,478,679
--------- ----------- ---------- ----------- --------- -----------
</TABLE>
(5) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
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. The Adviser will waive its investment advisory
fee on assets invested in securities of open-end investment companies. The
Adviser can terminate these voluntary waivers of expenses at any time at its
sole discretion. The Adviser has also undertaken to reimburse the Funds for
operating expenses in excess of limitations established by certain states. For
the period ended October 31, 1993, the Adviser earned and voluntarily waived the
following fees:
<TABLE>
<CAPTION>
ADVISER
ADVISER FEE
ANNUAL FEE VOLUNTARILY
FUND RATE* EARNED WAIVED
- -------------------------------------------------------------- ------ ---------- -----------
<S> <C> <C> <C>
Connecticut Municipal Money Market Fund 0.50% $ 1,104 $ 1,104
- --------------------------------------------------------------
Massachusetts Municipal Money Market Fund 0.50% 134 134
- --------------------------------------------------------------
Fixed Income Fund 0.80% 605,022 169,100
- --------------------------------------------------------------
Growth and Income Equity Fund 1.00% 1,191,845 319,550
- --------------------------------------------------------------
Growth Equity Fund 1.00% 222,953 75,986
- --------------------------------------------------------------
Intermediate Government Income Fund 0.80% 443,271 122,880
- --------------------------------------------------------------
Limited Term Income Fund 0.80% 411,275 116,939
- --------------------------------------------------------------
Prime Money Market Fund 0.50% 1,128,024 270,978
- --------------------------------------------------------------
Small Capitalization Equity Fund 1.00% 817,430 230,774
- --------------------------------------------------------------
</TABLE>
*As a percentage of average daily net assets
In addition, the Adviser reimbursed Connecticut Municipal Money Market Fund and
Massachusetts Municipal Money Market Fund $10,084 and $9,261, respectively, of
other operating expenses.
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
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. For the period ended October 31, 1993, FAS earned and
voluntarily waived the following fees:
<TABLE>
<CAPTION>
ADMINISTRATIVE
FEE
ADMINISTRATIVE VOLUNTARILY
FUND FEE EARNED WAIVED
- ---------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Connecticut Municipal Money Market Fund $ 265 $ 265
- ----------------------------------------------------------------
Massachusetts Municipal Money Market Fund 32 32
- ----------------------------------------------------------------
Fixed Income Fund 94,878 --
- ----------------------------------------------------------------
Growth and Income Equity Fund 149,519 --
- ----------------------------------------------------------------
Growth Equity Fund 28,063 28,063
- ----------------------------------------------------------------
Intermediate Government Income Fund 69,486 --
- ----------------------------------------------------------------
Limited Term Income Fund 64,554 --
- ----------------------------------------------------------------
Prime Money Market Fund 283,923 --
- ----------------------------------------------------------------
Small Capitalization Equity Fund 102,587 --
- ----------------------------------------------------------------
</TABLE>
Shawmut Bank, N.A. is the Trust's custodian. For the period ended October 31,
1993, Shawmut Bank, N.A. earned the following fees:
<TABLE>
<CAPTION>
CUSTODIAN FEE
CUSTODIAN FEE VOLUNTARILY
FUND EARNED WAIVED
- ---------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Connecticut Municipal Money Market Fund $ 44 $ 44
- ----------------------------------------------------------------
Massachusetts Municipal Money Market Fund 5 5
- ----------------------------------------------------------------
Fixed Income Fund 8,011 --
- ----------------------------------------------------------------
Growth and Income Equity Fund 10,719 --
- ----------------------------------------------------------------
Growth Equity Fund 4,900 --
- ----------------------------------------------------------------
Intermediate Government Income Fund 6,534 --
- ----------------------------------------------------------------
Limited Term Income Fund 5,350 --
- ----------------------------------------------------------------
Prime Money Market Fund 15,717 --
- ----------------------------------------------------------------
Small Capitalization Equity Fund 7,827 --
- ----------------------------------------------------------------
</TABLE>
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
Expenses of organizing the Funds were borne initially by FAS. The Funds have
agreed to reimburse the Administrator for the organizational expenses initially
borne by the Administrator during the five year period following December 1,
1992, when the Trust's registration statement first became effective. For the
period ended October 31, 1993, the Funds paid FAS as follows:
<TABLE>
<CAPTION>
INITIAL ORGANIZATIONAL
ORGANIZATIONAL EXPENSES
FUND EXPENSES REIMBURSED
- ---------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Connecticut Municipal Money Market Fund $ 27,716 $ 154
- ----------------------------------------------------------------
Massachusetts Municipal Money Market Fund 16,751 93
- ----------------------------------------------------------------
Fixed Income Fund 40,086 2,227
- ----------------------------------------------------------------
Growth and Income Equity Fund 39,753 2,209
- ----------------------------------------------------------------
Growth Equity Fund 38,503 2,139
- ----------------------------------------------------------------
Intermediate Government Income Fund 39,950 2,219
- ----------------------------------------------------------------
Limited Term Income Fund 38,183 2,121
- ----------------------------------------------------------------
Prime Money Market Fund 37,081 2,060
- ----------------------------------------------------------------
Small Capitalization Equity Fund 37,360 2,076
- ----------------------------------------------------------------
</TABLE>
The Funds have adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Funds will reimburse Federated
Securities Corp. ("FSC"), the Funds' principal distributor, from the assets of
the Investment Shares of the Funds, for fees it paid which relate to the
distribution and administration of the Funds' Investment Shares. The Plan
provides that the Funds may incur distribution expenses up to 0.50 of 1% of the
average daily net assets of the Investment Shares annually, to pay commissions,
maintenance fees and to compensate the distributor. For the period ended October
31, 1993, FSC earned the following in distribution service fees:
<TABLE>
<CAPTION>
DISTRIBUTION DISTRIBUTION
SERVICES FEE SERVICES FEE
FUND EARNED WAIVED
- ---------------------------------------------------------------- -------------- --------------
<S> <C> <C>
Connecticut Municipal Money Market Fund $1,104 $ 552
- ----------------------------------------------------------------
Massachusetts Municipal Money Market Fund -- --
- ----------------------------------------------------------------
Fixed Income Fund 17,497 8,749
- ----------------------------------------------------------------
Growth and Income Equity Fund 33,658 16,829
- ----------------------------------------------------------------
Growth Equity Fund 8,860 4,431
- ----------------------------------------------------------------
Intermediate Government Income Fund 24,926 12,463
- ----------------------------------------------------------------
Limited Term Income Fund 5,779 2,889
- ----------------------------------------------------------------
Prime Money Market Fund 20,984 10,492
- ----------------------------------------------------------------
Small Capitalization Equity Fund 29,532 14,766
- ----------------------------------------------------------------
</TABLE>
THE SHAWMUT FUNDS
- --------------------------------------------------------------------------------
Federated Services Company is the transfer agent and dividend disbursing agent
for the Funds. It also provides certain accounting and recordkeeping services
with respect to the Funds' portfolio of investments. For the period ended
October 31, 1993, Federated Services Company received for its services the
following fees:
<TABLE>
<CAPTION>
TRANSFER
AND
DIVIDEND
DISBURSING
AGENT RECORDKEEPING
FEES FEES
FUND EARNED EARNED
- ------------------------------------------------------------------ -------- --------------------
<S> <C> <C>
Connecticut Municipal Money Market Fund $ 2,275 $ 5,555
- ------------------------------------------------------------------
Massachusetts Municipal Money Market Fund 2,200 3,560
- ------------------------------------------------------------------
Fixed Income Fund 21,919 51,733
- ------------------------------------------------------------------
Growth and Income Equity Fund 26,326 52,054
- ------------------------------------------------------------------
Growth Equity Fund 21,555 44,314
- ------------------------------------------------------------------
Intermediate Government Income Fund 22,159 47,980
- ------------------------------------------------------------------
Limited Term Income Fund 21,293 48,418
- ------------------------------------------------------------------
Prime Money Market Fund 24,417 63,702
- ------------------------------------------------------------------
Small Capitalization Equity Fund 27,082 64,580
- ------------------------------------------------------------------
</TABLE>
Certain Officers and Directors of the Trust are Officers and Directors of FAS,
Federated Services Company and FSC.
(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended October 31, 1993, were as follows:
<TABLE>
<CAPTION>
GROWTH AND INTERMEDIATE SMALL
FIXED INCOME INCOME EQUITY GROWTH EQUITY GOVERNMENT LIMITED TERM CAPITALIZATION
FUND FUND FUND INCOME FUND INCOME FUND EQUITY FUND
- ----------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Purchases $ 117,462,974 $ 185,687,329 $ 40,554,745 $ 93,825,692 $ 96,419,961 $ 121,969,157
- ----------------- ------------- ------------- ------------- ------------- ------------- -------------
Sales $ 26,535,096 $ 46,091,080 $ 17,234,179 $ 17,683,739 $ 28,906,097 $ 24,713,078
- ----------------- ------------- ------------- ------------- ------------- ------------- -------------
</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, 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 Connecticut Municipal Money
Market Fund, Shawmut Massachusetts Municipal Money Market Fund, Shawmut Fixed
Income Fund, Shawmut Growth and Income Equity Fund, Shawmut Growth Equity Fund,
Shawmut Intermediate Government Income Fund, Shawmut Limited Term Income Fund,
Shawmut Prime Money Market Fund and Shawmut Small Capitalization Equity Fund
(portfolios of The Shawmut Funds, hereafter referred to as the "Funds") at
October 31, 1993, and the results of each of their operations, the changes in
each of their net assets and the financial highlights for the periods then
ended, 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, 1993 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
Boston, Massachusetts
December 17, 1993
SHAWMUT FIXED INCOME FUND
- --------------------------------------------------------------------------------
INVESTMENT RESULTS
OVERVIEW OF THE FINANCIAL MARKETS
For the first ten months of 1993, domestic longer-term bonds provided
a return of 11.8% as measured by the Lehman Brothers Government/Corporate
Index. The stock market for the first ten months was up 9.7% as measured by
the S&P 500 with smaller stocks providing much better returns as the
Russell 2000 Index rose 18.9%. Foreign markets were much stronger than the
U.S. market with the EAFE Index returning 36.2%. Cash equivalents continued
to provide the poorest returns with the 91-day Treasury Bill up only 2.6%
through October 31, 1993. The bond market rally continued to be driven by
accommodative monetary policy, low inflation and progress in reducing the
budget deficit.
As we look into 1994, the key variables that will continue to affect
the direction of the financial markets will be economic growth, both
domestically and internationally and, for the equity markets, the rate of
increase in earnings and dividends. Our view is that the economy, through
1994, will continue to demonstrate moderate but uneven growth with
inflation numbers remaining quite low. Reported corporate earnings should
continue to benefit from the improving economy and improving productivity
into 1994. As to the bond market, we anticipate that short-term rates are
likely to remain low at least until the early part of 1994 with longer-term
treasury rates remaining near their present levels which will result in a
continuing positively sloped yield curve.
MANAGEMENT DISCUSSION AND ANALYSIS
The Shawmut Fixed Income Fund (the "Fund") was established in 1992 to
provide high 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 Index
risk. The market index used for the Fund is the Shearson Lehman Government
Corporate Index.
The period since inception of the Fund in December of 1992 has
experienced rapidly falling interest rates. One of the most pronounced
trends in the bond market has been the more precipitous decline of long
bond rates relative to intermediate term bond rates. During the period
since inception, the Fund was positioned with a risk profile between
95-100% of the market. Returns lagged those of the Fund's benchmark over
the period due to an underweighting of maturities in the long bond sector
which, as mentioned above outperformed their intermediate counterparts.
Also, during a period of falling rates a risk profile greater than the
market was warranted.
The Fund continues to seek out those sectors of the bond market which
offer the best relative value. As of fiscal year end, the Fund is
positioned with a very high percentage of its holdings (78%) in AAA rated
investments. These characteristics provide for a high quality income stream
which is subject to lower principal volatility.
The Fund's management employs a sophisticated discipline for interest
rate anticipation and bond market valuation which should lead to continued
strong returns. At present the Fund's risk position is equal to the market
index. The Fund has also shifted its maturity structure recently to benefit
from stable longer maturity rates and gradually increasing short and
intermediate rates.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT FIXED INCOME FUND, INVESTMENT SHARES
AND LEHMAN GOVERNMENT CORPORATE TOTAL INDEX +
Graphic representation "A" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Fixed Income Fund, Investment Shares from
the start of business on 2/12/93 through 10/31/93, on a cumulative basis.
** Represents a hypothetical investment of $10,000 in Shawmut Fixed Income
Fund, Investment Shares, 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 Government Corporate Total Index is adjusted to reflect
reinvestment of dividends on securities in the index.
+ The Lehman Government Corporate Total Index is not adjusted to reflect
sales loads, expenses, or other fees that the SEC requires to be reflected
in the Fund's performance.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT FIXED INCOME FUND, TRUST SHARES,
AND THE LEHMAN GOVERNMENT CORPORATE TOTAL INDEX+
Graphic representation "B" omitted. See appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Fixed Income Fund, Trust Shares from the
start of business on 12/14/92 through 10/31/93, on a cumulative basis.
** The Fund's performance assumes the reinvestment of all dividends and
distributions. The Lehman Government Corporate Total Index is adjusted to
reflect reinvestment of dividends on securities in the index.
+ The Lehman Government Corporate Total Index is not adjusted to reflect
sales loads, expenses, or other fees that the SEC requires to be reflected
in the Fund's performance.
SHAWMUT GROWTH AND INCOME EQUITY FUND
- --------------------------------------------------------------------------------
INVESTMENT RESULTS
OVERVIEW OF THE FINANCIAL MARKETS
For the first ten months of 1993, domestic longer-term bonds provided
a return of 11.8% as measured by the Lehman Brothers Government/Corporate
Index. The stock market for the first ten months was up 9.7% as measured by
the S&P 500 with smaller stocks providing much better returns as the
Russell 2000 Index rose 18.9%. Foreign markets were much stronger than the
U.S. market with the EAFE Index returning 36.2%. Cash equivalents continued
to provide the poorest returns with the 91-day Treasury Bill up only 2.6%
through October 31, 1993. The bond market rally continued to be driven by
accommodative monetary policy, low inflation and progress in reducing the
budget deficit.
As we look into 1994, the key variables that will continue to affect
the direction of the financial markets will be economic growth, both
domestically and internationally and, for the equity markets, the rate of
increase in earnings and dividends. Our view is that the economy, through
1994, will continue to demonstrate moderate but uneven growth with
inflation numbers remaining quite low. Reported corporate earnings should
continue to benefit from the improving economy and improving productivity
into 1994. As to the bond market, we anticipate that short-term rates are
likely to remain low at least until the early part of 1994 with longer-term
treasury rates remaining near their present levels which will result in a
continuing positively sloped yield curve.
MANAGEMENT DISCUSSION AND ANALYSIS
Since its inception in December 1992, the Trust Shares of Shawmut
Growth and Income Equity Fund (the "Fund") has achieved a positive return
of almost 8.8%, although it has lagged the overall market for several
reasons. Management perceived that large-capitalization equities typically
considered by the Fund were richly valued and consequently remained less
than fully invested during this period. In addition, equities of companies
with lower S&P common stock ratings were favored by many mutual funds
during this period and greatly outperformed equities of companies with
higher S&P common stock ratings, such as those favored by the Fund.
Furthermore, management underweighted the electric utility sector, which
performed exceptionally well during this period because of lower than
anticipated interest rates.
Looking forward, management believes that the Fund is well positioned
for future growth. In management's view, prices of many equities held by
the Fund already reflect the high cost of corporate restructuring and are
poised to benefit from increased corporate productivity and reduced costs.
Moreover, management expects that its conservative policy of constructing a
portfolio of equities with lower-than-market price/earnings ratios and
higher-than-market projected growth will be rewarded in due course,
especially if the economy continues its momentum in 1994. If the market
corrects, management expects that a superior performance will be rendered
by equities with better valuation characteristics, such as those included
in the Fund. Finally, by underweighting electric utilities, management
anticipates that the Fund will be less vulnerable to any uptick in interest
rates which might result from a continuation of recently strong economic
growth.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT GROWTH AND INCOME EQUITY FUND, INVESTMENT SHARES,
STANDARD & POOR'S 500 INDEX+
Graphic representation "C" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Growth and Income Equity Fund, Investment
Shares, from the start of business on 2/12/93 through 10/31/93, on a
cumulative basis.
** Represents a hypothetical investment of $10,000 in Shawmut Growth and
Income Equity Fund, Investment Shares, 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 is 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 SEC requires to be reflected in the Fund's
performance.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT GROWTH AND INCOME EQUITY FUND, TRUST SHARES,
STANDARD & POOR'S 500 INDEX+
Graphic representation "D" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Growth and Income Equity Fund, Trust Shares
from the start of business on 12/14/92 through 10/31/93, on a cumulative
basis.
** The Fund's performance assumes the reinvestment of all dividends and
distributions. The Standard & Poor's 500 Index is 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 SEC requires to be reflected in the Fund's
performance.
SHAWMUT GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
INVESTMENT RESULTS
OVERVIEW OF THE FINANCIAL MARKETS
For the first ten months of 1993, domestic longer-term bonds provided
a return of 11.8% as measured by the Lehman Brothers Government/Corporate
Index. The stock market for the first ten months was up 9.7% as measured by
the S&P 500 with smaller stocks providing much better returns as the
Russell 2000 Index rose 18.9%. Foreign markets were much stronger than the
U.S. market with the EAFE Index returning 36.2%. Cash equivalents continued
to provide the poorest returns with the 91-day Treasury Bill up only 2.6%
through October 31, 1993. The bond market rally continued to be driven by
accommodative monetary policy, low inflation and progress in reducing the
budget deficit.
As we look into 1994, the key variables that will continue to affect
the direction of the financial markets will be economic growth, both
domestically and internationally and, for the equity markets, the rate of
increase in earnings and dividends. Our view is that the economy, through
1994, will continue to demonstrate moderate but uneven growth with
inflation numbers remaining quite low. Reported corporate earnings should
continue to benefit from the improving economy and improving productivity
into 1994. As to the bond market, we anticipate that short-term rates are
likely to remain low at least until the early part of 1994 with longer-term
treasury rates remaining near their present levels which will result in a
continuing positively sloped yield curve.
MANAGEMENT DISCUSSION AND ANALYSIS
The Shawmut Growth Equity Fund (the "Fund") was established in 1992 to
provide the opportunity for investment in a diversified portfolio of stocks
of companies with superior growth characteristics. The typical company in
the Fund has an earnings growth rate that is at least 150% of the typical
company represented in the Standard and Poor's 500 index.
The Fund (Trust Shares) returned 5.1% since its inception on December
14, 1992. While the Fund's return lagged the market's return for the same
period, all of the Fund's underperformance occurred in the first four
months (January through April). During this period, investors sold growth
stocks in order to minimize exposure to President Clinton's prospective
health care plan and to capitalize on what many investors felt would be the
beginning of a strong economic recovery by buying cyclical stocks. As the
inconsistent pattern of economic recovery unfolded, investors began moving
back into growth stocks, which exhibit the consistent and strong earnings
growth performance that investors seek. As a result, the remaining six
months saw the Fund outperform in each month as growth stocks recovered
from their wholesale liquidation.
Looking to 1994, we continue to see gradual economic improvement; but
one that does not effect all industries equally. Some industries will do
far better than the overall economy and some will falter. We believe that
companies which provide "added-value" goods and services to cautious
individual and institutional consumers will continue to have an advantage
over companies that will be adversely affected by the ramifications of
higher tax rates and increased government regulation.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT GROWTH EQUITY FUND, INVESTMENT SHARES,
Graphic representation "E" omitted. See Appendix.
AND THE S&P 500 INDEX +
Past performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Growth Equity Fund, Investment Shares from the
start of business on 2/12/93 through 10/31/93, on a cumulative basis.
** Represents a hypothetical investment of $10,000 in Shawmut Growth Equity
Fund, Investment Shares, 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 S&P 500 is
adjusted to reflect reinvestment of dividends on securities in the index.
+ The S&P 500 Index is not adjusted to reflect sales loads, expenses, or other
fees that the SEC requires to be reflected in the Fund's performance.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT GROWTH EQUITY FUND, TRUST SHARES, AND THE S&P 500 INDEX +
Graphic representation "F" omitted. See Appendix.
Past performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Growth Equity Fund, Trust Shares from the
start of business on 12/14/92 through 10/31/93, on a cumulative basis.
** The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 is adjusted to reflect reinvestment of dividends
on securities in the index.
+ The S&P 500 Index is not adjusted to reflect sales loads, expenses, or other
fees that the SEC requires to be reflected in the Fund's performance.
SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------
INVESTMENT RESULTS
OVERVIEW OF THE FINANCIAL MARKETS
For the first ten months of 1993, domestic longer-term bonds provided
a return of 11.8% as measured by the Lehman Brothers Government/Corporate
Index. The stock market for the first ten months was up 9.7% as measured by
the S&P 500 with smaller stocks providing much better returns as the
Russell 2000 Index rose 18.9%. Foreign markets were much stronger than the
U.S. market with the EAFE Index returning 36.2%. Cash equivalents continued
to provide the poorest returns with the 91-day Treasury Bill up only 2.6%
through October 31, 1993. The bond market rally continued to be driven by
accommodative monetary policy, low inflation and progress in reducing the
budget deficit.
As we look into 1994, the key variables that will continue to affect
the direction of the financial markets will be economic growth, both
domestically and internationally and, for the equity markets, the rate of
increase in earnings and dividends. Our view is that the economy, through
1994, will continue to demonstrate moderate but uneven growth with
inflation numbers remaining quite low. Reported corporate earnings should
continue to benefit from the improving economy and improving productivity
into 1994. As to the bond market, we anticipate that short-term rates are
likely to remain low at least until the early part of 1994 with longer-term
treasury rates remaining near their present levels which will result in a
continuing positively sloped yield curve.
MANAGEMENT DISCUSSION OF PERFORMANCE
Shawmut Intermediate Government Income Fund (the "Fund") was
established in December 1992 to provide the opportunity to garner 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 investments relative to an
appropriate broad-based securities market index. The 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 Intermediate Government Income Fund, the market index used is the
Shearson Lehman Intermediate Government Corporate Index.
During the period since the inception of the Fund in December of 1992,
the trend in interest rates has been down. During the period, the Fund
remained cautious opting for a risk profile that was 90-95% of the market
and which included government guaranteed mortgage-backed securities which
generated a high level of income. Both of these strategies underperformed
the market. During a period of declining rates, a risk profile greater than
the market was warranted. In addition, the purchase of securities with
income as a relatively higher portion of returns underperformed the market
since principal appreciation with these types of securities is lower.
Finally, mortgage-backed securities underperformed the market as
prepayments were faster than expected.
As of fiscal year-end, the Fund was positioned at 95% of the risk of
the Shearson Lehman Intermediate Government Corporate Index. In addition,
the position in mortgage-backed securities had been reduced. Management
feels that a risk position slightly less that the market will serve well
going forward as interest rates rise slightly. The Fund will continue to
search out government securities with high income as rates return to more
stable levels.
In addition, management is confident that the risk control techniques
which have worked well over time will allow shareholders to benefit from
strong relative returns over the long term.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND, INVESTMENT SHARES,
LEHMAN INTERMEDIATE GOVERNMENT CORPORATE INDEX +
Graphic representation "G" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Intermediate Government Income Fund,
Investment Shares from the start of business on 2/12/93 through 10/31/93,
on a cumulative basis.
** Represents a hypothetical investment of $10,000 in Shawmut Intermediate
Government Income Fund, Investment Shares, 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 Intermediate Government Corporate Index is
adjusted to reflect reinvestment of dividends on securities in the index.
+ The Lehman Intermediate Government Corporate Index is not adjusted to
reflect sales loads, expenses, or other fees that the SEC requires to be
reflected in the Fund's performance.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT INTERMEDIATE GOVERNMENT INCOME FUND, TRUST SHARES,
LEHMAN INTERMEDIATE GOVERNMENT CORPORATE INDEX +
Graphic representation "H" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Intermediate Government Income Fund, Trust
Shares from the start of business on 12/14/92 through 10/31/93, on a
cumulative basis.
** The Fund's performance assumes the reinvestment of all dividends and
distributions. The Lehman Intermediate Government Corporate Index is
adjusted to reflect reinvestment of dividends on securities in the index.
+ The Lehman Intermediate Government Corporate Index is not adjusted to
reflect sales loads, expenses, or other fees that the SEC requires to be
reflected in the Fund's performance.
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
INVESTMENT RESULTS
OVERVIEW OF THE FINANCIAL MARKETS
For the first ten months of 1993, domestic longer-term bonds provided a
return of 11.8% as measured by the Lehman Brothers Government/Corporate
Index. The stock market for the first ten months was up 9.7% as measured by
the S&P 500 with smaller stocks providing much better returns as the
Russell 2000 Index rose 18.9%. Foreign markets were much stronger than the
U.S. market with the EAFE Index returning 36.2%. Cash equivalents continued
to provide the poorest returns with the 91-day Treasury Bill up only 2.6%
through October 31, 1993. The bond market rally continued to be driven by
accommodative monetary policy, low inflation and progress in reducing the
budget deficit.
As we look into 1994, the key variables that will continue to affect
the direction of the financial markets will be economic growth, both
domestically and internationally and, for the equity markets, the rate of
increase in earnings and dividends. Our view is that the economy, through
1994, will continue to demonstrate moderate but uneven growth with
inflation numbers remaining quite low. Reported corporate earnings should
continue to benefit from the improving economy and improving productivity
into 1994. As to the bond market, we anticipate that short-term rates are
likely to remain low at least until the early part of 1994 with longer-term
treasury rates remaining near their present levels which will result in a
continuing positively sloped yield curve.
MANAGEMENT DISCUSSION AND ANALYSIS
The Shawmut Small Capitalization Equity Fund (the "Fund") was
established in December 1992 to invest in companies that are judged to be
undervalued. At the point of investment, these companies will have a market
capitalization of less than $1 billion.
The Fund return of 12.1% (Trust Shares) for the period since inception
(December 14, 1992) is below the market average. The investment philosophy
used in managing the Fund is value oriented. We tend to invest in
out-of-favor companies with an expectation of fundamental improvement. Our
approach necessitates being early investors in these companies. In many
cases, the economy has not improved sufficiently to lead to a consistency
of earnings growth; thus many of these stocks have not done well in this
period.
The initial period following Fund inception saw the medical stocks
impacted sharply due to concerns over health care reform. While our
holdings in this area have been reduced considerably they provided a
material negative impact to the Fund due to the magnitude of decline. As
the year progressed, we have seen improvement in the Fund's performance and
feel that we are positioned well for an improving economy. Our recent focus
has been in the more cyclical areas including specialty chemicals and
papers.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT SMALL CAPITALIZATION EQUITY FUND, INVESTMENT SHARES
AND THE S&P 500 INDEX+
Graphic representation "I" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Small Capitalization Equity Fund, Investment
Shares from the start of business on 02/12/93 through 10/31/93, on a
cumulative basis.
** Represents a hypothetical investment of $10,000 in Shawmut Small
Capitalization Equity Fund, Investment Shares, 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 S&P 500 Index is adjusted to reflect reinvestment of
dividends on securities in the index.
+ The S&P 500 Index is not adjusted to reflect sales loads, expenses, or
other fees that the SEC requires to be reflected in the Fund's performance.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT SMALL CAPITALIZATION EQUITY FUND, TRUST SHARES
AND THE S&P 500 INDEX+
Graphic representation "J" omitted. See Appendix.
Past Performance is not indicative 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.
* Reflects operations of Shawmut Small Capitalization Equity Fund, Trust
Shares from the start of business on 12/14/92 through 10/31/93, on a
cumulative basis.
** The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 Index is adjusted to reflect reinvestment of
dividends on securities in the index.
+ The S&P 500 Index is not adjusted to reflect sales loads, expenses, or
other fees that the SEC requires to be reflected in the Fund's performance.
SHAWMUT LIMITED TERM INCOME FUND
- --------------------------------------------------------------------------------
INVESTMENT RESULTS
OVERVIEW OF THE FINANCIAL MARKETS
For the first ten months of 1993, domestic longer-term bonds provided
a return of 11.8% as measured by the Lehman Brothers Government/Corporate
Index. The stock market for the first ten months was up 9.7% as measured by
the S&P 500 with smaller stocks providing much better returns as the
Russell 2000 Index rose 18.9%. Foreign markets were much stronger than the
U.S. market with the EAFE Index returning 36.2%. Cash equivalents continued
to provide the poorest returns with the 91-day Treasury Bill up only 2.6%
through October 31, 1993. The bond market rally continued to be driven by
accommodative monetary policy, low inflation and progress in reducing the
budget deficit.
As we look into 1994, the key variables that will continue to affect
the direction of the financial markets will be economic growth, both
domestically and internationally and, for the equity markets, the rate of
increase in earnings and dividends. Our view is that the economy, through
1994, will continue to demonstrate moderate but uneven growth with
inflation numbers remaining quite low. Reported corporate earnings should
continue to benefit from the improving economy and improving productivity
into 1994. As to the bond market, we anticipate that short-term rates are
likely to remain low at least until the early part of 1994 with longer-term
treasury rates remaining near their present levels which will result in a
continuing positively sloped yield curve.
MANAGEMENT DISCUSSION AND ANALYSIS
The Shawmut Limited Term Income Fund (the "Fund") was established in
1992 to provide high relative income consistent with a minimum of price
volatility. The Fund pursues a low risk posture by utilizing investment
grade, fixed income securities with average maturities no longer than five
(5) years. The Fund employs an investment discipline which has been used
successfully by Shawmut Bank since 1984. The emphasis of this discipline is
to closely monitor the Fund's risk relative to an appropriate index of
securities which conform to the Fund's guidelines. The risk of the Fund is
limited to a level of no more than 120% or no less than 80% of the index
risk. The Fund is managed relative to the Merrill Lynch 1-5 year Treasury
Index.
During the period since inception, the Fund has changed its risk
benchmark. The Fund's guidelines state that the Fund's average maturity
should not exceed 3 years. For the majority of the period (inception to
September 1993) the benchmark for controlling risk was the Merrill Lynch 1-
3 year Index which has an average maturity of 2 years. Since September
1993, the Fund has used the Merrill Lynch 1-5 year Treasury Index which has
an average maturity of 2.5 years. Performance, therefore, closely matched
the 1-3 year index for the period as the Fund maintained two year average
life for substantially all of the measurement time frame. In future periods
it is expected that results will more closely track the returns of the 1-5
year index.
During the period since December 1992, the trend in interest rates has
been down. Two year Treasury Notes fell from 5.0% to 4.0%. The Fund has
maintained a cautious stance on the market positioning itself with a 90-95%
market risk profile. The Fund's management believed that short rates would
begin to rise as the economy gained some momentum and thus was positioned
in a manner which limited returns. The Fund's management, however, believes
that it will be well positioned to benefit from higher short term rates
which it expects to prevail in the intermediate term.
The Fund's performance also was hampered due to its use of
mortgage-backed securities which provide high income but were negatively
impacted by a faster return of principal than expected as homeowners rushed
to refinance their mortgages. Other bond sectors utilized by the Fund,
including U.S. Treasury and Corporate Notes, performed well for the Fund's
shareholders during the fiscal year. Our well established disciplines to
seek out bond market sectors which will perform well will allow us to
continue to provide solid total returns with minimal price volatility.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT LIMITED TERM INCOME FUND, INVESTMENT SHARES,
AND THE MERRILL LYNCH 1-3 YEAR U.S. TREASURY INDEX+
Graphic representation "K" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Limited Term Income Fund, Investment Shares
from the start of business on 02/12/93 through 10/31/93, on a cumulative
basis.
** Represents a hypothetical investment of $10,000 in Shawmut Limited Term
Income Fund, Investment Shares, 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 is 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 SEC requires to be reflected
in the Fund's performance.
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 PURCHASE
IN SHAWMUT LIMITED TERM INCOME FUND, TRUST SHARES
AND THE MERRILL LYNCH 1-3 YEAR U.S. TREASURY INDEX+
Graphic representation "L" omitted. See Appendix.
Past Performance is not indicative 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.
This annual report incorporates by reference and accompanies the prospectus
dated February 22, 1993.
* Reflects operations of Shawmut Limited Term Income Fund, Trust Shares from
the start of business on 12/14/92 through 10/31/93, on a cumulative basis.
** The Fund's performance assumes the reinvestment of all dividends and
distributions. The Merrill Lynch 1-3 year U.S. Treasury Index is 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 SEC requires to be reflected
in the Fund's performance.
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- ---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
John T. Conroy, Jr. Chairman
William J. Copeland Edward C. Gonzales
James E. Dowd President and Treasurer
Lawrence D. Ellis, M.D. J. Christopher Donahue
Edward L. Flaherty, Jr. Vice President
Edward C. Gonzales Richard B. Fisher
Peter E. Madden Vice President
Gregor F. Meyer John W. McGonigle
Wesley W. Posvar Vice President and Secretary
Marjorie P. Smuts John A. Staley, IV
Vice President
Jeffrey W. Sterling
Vice President and Asst. Treasurer
David M. Taylor
Assistant Treasurer
Robert C. Rosselot
Assistant Secretary
</TABLE>
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Fund's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
Appendix
A. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Fixed Income Fund
Investment Shares on February 12, 1993 would have grown to $10,488
by October 31, 1993. The hypothetical investment is compared to
the Lehman Government Corporate Total Index The "x" axis reflects
the value of the investment and the "y" axis reflects the
computation periods of the investment, beginning on February 12,
1993 and ending October 31, 1993. The right margin, along the "x"
axis reflects the total investment range from $9,000 to $12,000.
The chart further indicates the ending market value attributable
to income and capital gains. Beneath the mountain chart is a
second boxed legend which identifies the fund and the index.
B. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Fixed Income Fund
Trust Shares on December 14, 1992 would have grown to $11,126 by
October 31, 1993. The hypothetical investment is compared to the
Lehman Government Corporate Total Index The "x" axis reflects the
value of the investment and the "y" axis reflects the computation
periods of the investment, beginning on December 14, 1992 and
ending October 31, 1993. The right margin, along the "x" axis
reflects the total investment range from $9,000 to $15,000. The
chart further indicates the ending market value attributable to
income and capital gains. Beneath the mountain chart is a second
boxed legend which identifies the fund and the index.
C. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Growth and Income
Equity Fund Investment Shares on February 12, 1993 would have
grown to $10,195 by October 31, 1993. The hypothetical investment
is compared to the Standard & Poor's 500 Index The "x" axis
reflects the value of the investment and the "y" axis reflects the
computation periods of the investment, beginning on February 12,
1993 and ending October 31, 1993. The right margin, along the "x"
axis reflects the total investment range from $9,000 to $15,000.
The chart further indicates the ending market value attributable
to income and capital gains. Beneath the mountain chart is a
second boxed legend which identifies the fund and the index.
D. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Growth and Income
Equity Fund Trust Shares on December 14, 1992 would have grown to
$10,880 by October 31, 1993. The hypothetical investment is
compared to the Standard & Poor's 500 Index The "x" axis reflects
the value of the investment and the "y" axis reflects the
computation periods of the investment, beginning on December 14,
1992 and ending October 31, 1993. The right margin, along the "x"
axis reflects the total investment range from $9,000 to $15,000.
The chart further indicates the ending market value attributable
to income and capital gains. Beneath the mountain chart is a
second boxed legend which identifies the fund and the index.
E. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Growth Equity
Fund Investment Shares on February 12, 1993 would have grown to
$10,065 by October 31, 1993. The hypothetical investment is
compared to the S&P 500 Index The "x" axis reflects the value of
the investment and the "y" axis reflects the computation periods
of the investment, beginning on February 12, 1993 and ending
October 31, 1993. The right margin, along the "x" axis reflects
the total investment range from $9,000 to $12,000. The chart
further indicates the ending market value attributable to income
and capital gains. Beneath the mountain chart is a second boxed
legend which identifies the fund and the index.
F. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Growth Equity
Fund Trust Shares on December 14, 1992 would have grown to $10,509
by October 31, 1993. The hypothetical investment is compared to
the S&P 500 Index The "x" axis reflects the value of the
investment and the "y" axis reflects the computation periods of
the investment, beginning on December 14, 1992 and ending October
31, 1993. The right margin, along the "x" axis reflects the total
investment range from $9,000 to $12,000. The chart further
indicates the ending market value attributable to income and
capital gains. Beneath the mountain chart is a second boxed
legend which identifies the fund and the index.
G. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Intermediate
Government Income Fund Investment Shares on February 12, 1993
would have grown to $10,236 by October 31, 1993. The hypothetical
investment is compared to the Lehman Intermediate Government
Corporate Index The "x" axis reflects the value of the investment
and the "y" axis reflects the computation periods of the
investment, beginning on February 12, 1993 and ending October 31,
1993. The right margin, along the "x" axis reflects the total
investment range from $9,000 to $15,000. The chart further
indicates the ending market value attributable to income and
capital gains. Beneath the mountain chart is a second boxed
legend which identifies the fund and the index.
H. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Intermediate
Government Income Fund Trust Shares on December 14, 1992 would
have grown to $10,797 by October 31, 1993. The hypothetical
investment is compared to the Lehman Intermediate Government
Corporate Index The "x" axis reflects the value of the investment
and the "y" axis reflects the computation periods of the
investment, beginning on December 14, 1992 and ending October 31,
1993. The right margin, along the "x" axis reflects the total
investment range from $9,000 to $12,000. The chart further
indicates the ending market value attributable to income and
capital gains. Beneath the mountain chart is a second boxed
legend which identifies the fund and the index.
I. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Small
Capitalization Equity Fund Investment Shares on February 12, 1993
would have grown to $10,230 by October 31, 1993. The hypothetical
investment is compared to the S&P 500 Index The "x" axis reflects
the value of the investment and the "y" axis reflects the
computation periods of the investment, beginning on February 12,
1993 and ending October 31, 1993. The right margin, along the "x"
axis reflects the total investment range from $9,000 to $15,000.
The chart further indicates the ending market value attributable
to income and capital gains. Beneath the mountain chart is a
second boxed legend which identifies the fund and the index.
J. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Small
Capitalization Equity Fund Trust Shares on December 14, 1992 would
have grown to $11,212 by October 31, 1993. The hypothetical
investment is compared to the S&P 500 Index The "x" axis reflects
the value of the investment and the "y" axis reflects the
computation periods of the investment, beginning on December 14,
1992 and ending October 31, 1993. The right margin, along the "x"
axis reflects the total investment range from $9,000 to $12,000.
The chart further indicates the ending market value attributable
to income and capital gains. Beneath the mountain chart is a
second boxed legend which identifies the fund and the index.
K. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Limited Term
Income Fund Investment Shares on February 12, 1993 would have
grown to $10,052 by October 31, 1993. The hypothetical investment
is compared to the Merrill Lynch 1-3 Year U.S. Treasury Index The
"x" axis reflects the value of the investment and the "y" axis
reflects the computation periods of the investment, beginning on
February 12, 1993 and ending October 31, 1993. The right margin,
along the "x" axis reflects the total investment range from $9,000
to $15,000. The chart further indicates the ending market value
attributable to income and capital gains. Beneath the mountain
chart is a second boxed legend which identifies the fund and the
index.
L. The graphic representation here displayed consists of a boxed
legend in the upper left quadrant indicating the components of the
corresponding graphic mountain chart. The mountain chart is a
visual representation of the narrative beneath it, which shows
that a one-time investment of $10,000 in Shawmut Limited Term
Income Fund Investment Shares on December 14, 1992 would have
grown to $10,502 by October 31, 1993. The hypothetical investment
is compared to the Merrill Lynch 1-3 Year U.S. Treasury Index The
"x" axis reflects the value of the investment and the "y" axis
reflects the computation periods of the investment, beginning on
December 14, 1992 and ending October 31, 1993. The right margin,
along the "x" axis reflects the total investment range from $9,000
to $12,000. The chart further indicates the ending market value
attributable to income and capital gains. Beneath the mountain
chart is a second boxed legend which identifies the fund and the
index.
(LOGO)
Recycled Paper
Federated Securities Corp. is the distributor of the funds
3110404 (12/93)
