<PAGE>
- ------------------------
- ------------------------
[ARTWORK APPEARS HERE]
- --------------------------------------------------------------------------------
Shawmut Funds Report
- --------------------------------------------------------------------------------
Connecticut Municipal Money Market Fund . Massachusetts Municipal Money
Market Fund . Growth and Income Fund . Small Capitalization Equity Fund .
- ------------------------
Annual
Report
For the Year Ended
October 31, 1995
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<PAGE>
- ------------------------
CHAIRMAN'S
MESSAGE
- ------------------------
- --------------------------------------
MUTUAL FUNDS:
.. ARE NOT BANK DEPOSITS
.. ARE NOT FDIC INSURED
.. ARE NOT OBLIGATIONS OF SHAWMUT BANK
.. ARE NOT GUARANTEED BY SHAWMUT BANK
.. ARE SUBJECT TO INVESTMENT RISK
INCLUDING POSSIBLE LOSS OF PRINCIPAL
AMOUNT INVESTED
- --------------------------------------
Dear Shareholder:
Enclosed is your performance report for the 12 months ended October 31, 1995.
The Market Overview and Portfolio Reviews that follow explore the various
factors influencing equity and income investments during this period and discuss
the strategies used to make the most of these factors. In addition, this report
looks at where the markets may be headed in the months to come.
In the past year, slower economic growth caused a dramatic decline in
interest rates. After rising for the first four months of the period, money
market yields fell in the latter portion of the period to end just about where
they began. Stock prices rose sharply higher, to deliver gains that were
exceptional by historical standards. During the period, stocks, as measured by
the Standard & Poor's 500 Index, produced a return of approximately 26%. This
was the 10th best 12-month return for stocks in the last 50 years and more than
made up for the weak stock returns of 1994.
Although past results do not guarantee future performance, the experience
of the last two years underscores the importance of taking a long-term approach
toward investing. Investors who move to the sidelines in times of temporary
market corrections often miss out on market rallies. During the stock rally of
1982-87, for example, when the average annual return was 25.3%, investors who
did not participate in the 40 best days of the rally averaged an annual return
of just 4.3%.
The lower interest rates of the past year produced exceptional returns for
bonds as well. This demonstrates the advantage of a well-diversified investment
plan that includes stocks, bonds and money market securities. Although stocks
and bonds tend to fluctuate more in value in the short term than money market
securities do, stocks and bonds have historically delivered significantly better
returns over time.
As of December 4, the Shawmut Funds will merge with the Galaxy Funds and
will be managed by Fleet Investment Advisors Inc. If you have questions after
reading this report, you can discuss them with an Investment Specialist, at any
time, by calling 800-628-0414.
Sincerely,
The Shawmut Funds
<PAGE>
- ------------------------
MARKET OVERVIEW
- ------------------------
"When the period began, the economy was growing rapidly. Worried that this could
mean higher inflation, the Federal Reserve Board (the "Fed") attempted to
dampen further growth by raising short-term interest rates."
ECONOMIC OVERVIEW
After rising sharply in 1994, interest rates declined in 1995 as growth in the
economy started to slow. This resulted in reduced yields for money market
securities and other fixed-income investments during the 12 months ended
October 31, 1995, but delivered strong price gains for most stocks.
When the period began, the economy was growing rapidly. Concerned that this
could mean higher inflation, the Federal Reserve Board (the "Fed") attempted to
slow further growth by raising short-term interest rates. Between November of
1994 and February 1995 the Fed Funds rate rose from 4.75% to 6%.
Although money market yields rose in response to increased interest rates,
the yields on longer-term instruments began to fall as investors felt the rate
hikes might achieve an economic "soft landing." Lower bond yields, combined with
unexpectedly strong gains in corporate earnings, made stock investments more
appealing. After languishing for most of 1994, stock prices moved significantly
higher in the first quarter of 1995.
In the second quarter, as the economy suddenly showed signs of slowing,
investors began to believe that the Fed would have to cut interest rates to
prevent a recession. The prospect for lower rates became greater as Congress
increased efforts to balance the federal budget. Yields of short- and long-term
income investments fell, and stock prices continued to rise. In July, the Fed
lowered its Fed Funds rate to 5.75%.
Mixed news on the economy renewed fears of inflation in July and August,
causing yields and stock prices to reverse course temporarily. By September,
however, investors saw that inflation was under control and believed that a
balanced budget agreement was near. Yields fell once again, and stock prices
rose further. By the end of October, the Dow Jones Industrial Average had risen
to 4755 for a 12-month gain, without reinvested dividends, of 23.1%. The yields
on 30-year Treasury bonds had fallen from a peak of 8.19% in October of 1994 to
6.33% as of October 31, 1995. Three-month Treasury bills dropped from 5.97% in
February of 1995 to 5.32% in October 1995.
INVESTMENT STRATEGIES
During this time our equity funds continued to focus on stocks that were
attractively priced compared to the earnings potential of their companies. As
the economy slowed and interest rates fell,
1
<PAGE>
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MARKET OVERVIEW
- ------------------------
"Sluggish spending by consumers should keep the economy growing near a rate of
2.5% in 1996 and inflation below 3%."
[A TABLE SHOWING THE AVERAGE ANNUAL RETURNS FOR INVESTMENT AND TRUST SHARES AS
OF 10/31/95 APPEARS ON THIS PAGE.]
PERFORMANCE AT-A-GLANCE Average Annual Total Returns As of October 31, 1995
<TABLE>
<CAPTION>
INVESTMENT TRUST
SHARES SHARES
------ ------
<S> <C> <C>
SHAWMUT GROWTH AND INCOME EQUITY FUND
One Year..................................... 18.52% 18.80%
Since Inception.............................. 12.40% 12.63%
SHAWMUT SMALL CAPITALIZATION EQUITY FUND
One Year..................................... 21.27% 21.52%
Since Inception.............................. 11.73% 11.89%
</TABLE>
the Funds benefited from investments in the consumer staples, financial
technology and transportation sectors.
Although taxable money market yields declined for much of the period,
seasonal changes in supply and demand temporarily boosted the yields of tax-
exempt money market instruments. By adjusting the maturities of their
investments to make the most of these changes, both of our tax-free money market
funds were able to enhance their yields.
MARKET OUTLOOK
Sluggish spending by consumers should keep the economy growing near a rate of
2.5% in 1996 and inflation below 3%. This combined with a balanced budget, could
allow the Fed to cut short-term interest rates again. A decline in interest
rates would make stocks more attractive -- especially since lower rates tend to
improve company profits.
Because stocks are quite expensive compared to dividend yields, however,
new worries about inflation or disappointments in earnings may cause a temporary
correction in prices. To take advantage of any new investment opportunities that
a correction might bring, each of the equity funds will probably maintain strong
cash reserves.
Given the likelihood for lower interest rates, the average maturities for
investments in both tax-free money market funds will probably stay relatively
long. This should help to maximize the Funds' yields as interest rates fall.
2
<PAGE>
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PORTFOLIO REVIEWS
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SHAWMUT CONNECTICUT MUNICIPAL
MONEY MARKET FUND *
By Bob Gleason
Portfolio Manager
In the past year, the yields on short-term municipal securities were influenced
more by customary seasonal adjustments in supply and demand than by changes in
short-term interest rates. By choosing maturities that could make the most of
these adjustments, the Shawmut Connecticut Municipal Money Market Fund earned a
competitive return for the 12 months ended October 31, 1995.
SHAWMUT CONNECTICUT
MUNICIPAL MONEY
MARKET FUND
Distribution of Investments
as of October 31, 1995
[A PIE CHART LISTING SHAWMUT CONNECTICUT MUNICIPAL MONEY MARKET FUND INVESTMENTS
BY REGION AND TYPE APPEARS HERE:]
<TABLE>
<S> <C>
Cash Equivalents 5%
Puerto Rico 5%
Connecticut 90%
</TABLE>
- --------------------------------------------------------------------------------
* As of December 4, 1995, this Fund was renamed the Galaxy Connecticut Municipal
Money Market Fund
During that time, the Fund's Investment and Trust shares had net total
returns of 2.93% and 3.19%, respectively, after deduction of fund expenses. That
compares to an average return of 3.15% for other Connecticut tax-exempt money
market funds tracked by Lipper Analytical Services.
ADDRESSING CHANGES
IN SUPPLY AND DEMAND
As the period began, the market for short-term municipal securities was entering
a time of reduced demand. Demand for municipal issues typically wanes at the end
of each calendar year, when investors have less need for the tax benefits these
instruments provide. As demand drops, there is downward pressure on the prices
of municipals, which enhances their yields.
The yields of short-term tax-exempt securities strengthened again in June
and July, although yields for short-term taxable instruments were falling. At
that time -- which is the start of new fiscal years for most states, cities and
towns -- there is usually an increase in supply of new tax-exempt securities.
Like reduced demand, stronger supply put downward pressure on the prices of
short-term municipals and boost their yields.
3
<PAGE>
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PORTFOLIO REVIEWS
- ------------------------
By emphasizing investments with shorter maturities when interest rates were
rising, we were able to re-invest more quickly in higher-yielding securities.
Conversely, when interest rates were falling, we focused on longer-term issues,
which allowed us to lock in at higher yields. These strategies helped to
maximize the Fund's total return.
GOING FORWARD
The average maturity of the Fund's investments should remain relatively long in
the months ahead since a reduction in interest rates is anticipated. In addition
to another year-end decrease in demand, there should be downward pressure on
yields for short-term tax-exempt issues from further slowing in the growth of
the economy. As always, the Fund will continue to emphasize issues of the
strongest credit quality and, wherever possible, invest in issues that are
exempt from both Federal and Connecticut state income taxes.
Bob Gleason has managed the Connecticut Municipal Money Market Fund since its
inception in 1993. He has managed portfolios of fixed income securities for
Shawmut since 1976.
SHAWMUT MASSACHUSETTS MUNICIPAL
MONEY MARKET FUND*
By Bob Gleason
Portfolio Manager
The Shawmut Massachusetts Municipal Money Market Fund earned a solid return for
the 12 months ended October 31, 1995, by adjusting the maturities of its
investments for seasonal changes in the supply of and demand for short-term
municipal securities.
During the period, the Fund had a net total return of 3.21%, after
deduction of fund expenses. That compares to an average return of 3.24% for
Massachusetts tax-exempt money market funds tracked by Lipper Analytical
Services.
ENHANCING FUND YIELDS
For much of the period, customary changes in supply and demand played a greater
role in the direction of yields for short-term tax-exempt securities than
adjustments in short-term interest rates by the Federal Reserve Board. At the
end of 1994, demand for short-term municipals was declining. This typically
happens late in each calendar year, when investors tend to have less need for
tax-exempt securities. With reduced demand, there was downward pressure on the
prices of short-term municipal instruments and upward pressure on their yields.
4
<PAGE>
- ------------------------
PORTFOLIO REVIEWS
- ------------------------
As interest rates rose, we focused on investments with shorter maturities
so we could invest more rapidly in higher-yielding issues. We used the same
strategy in June and July. At that time, many states, cities and towns began new
fiscal years, and there was a typical increase in the supply of new municipals
that put downward pressure on their prices and upward pressure on their yields.
When interest rates fell during the period, we emphasized instruments with
longer maturities. This let us lock in yields at levels that were more
attractive.
SHAWMUT MASSACHUSETTS
MUNICIPAL MONEY MARKET
FUND
Distribution of Investments
as of October 31, 1995
[A PIE CHART LISTING SHAWMUT MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
INVESTMENTS BY REGION AND TYPE APPEARS HERE:]
<TABLE>
<S> <C>
Cash Equivalents 5%
Puerto Rico 9%
Massachusetts 86%
</TABLE>
- --------------------------------------------------------------------------------
* As of December 4, 1995, this Fund was renamed the Galaxy Massachusetts
Municipal Money Market Fund
FUTURE STRATEGIES
In the months ahead, there should be further downward pressure on the yields of
short-term municipal issues as economic growth continues to slow and the tax-
exempt market encounters another year-end slowdown in demand. For this reason,
the average maturity for the Fund's investments should remain relatively long.
Wherever possible, the Fund will continue to invest in issues that are exempt
from both Federal and Massachusetts state income taxes and focus on securities
of high credit quality.
Bob Gleason has managed the Massachusetts Municipal Money Market Fund since its
inception. He has managed portfolios of fixed income securities for Shawmut
since 1976.
SHAWMUT GROWTH AND INCOME EQUITY
FUND**
By Brendan Henebry
Portfolio Manager
Strong performances by financial, consumer staples and transportation stocks
helped the Shawmut Growth and Income Equity Fund produce a solid
- --------------------------------------------------------------------------------
** As of December 4, 1995, this Fund was renamed the Galaxy Growth and Income
Equity Fund
5
<PAGE>
- ------------------------
PORTFOLIO REVIEWS
- ------------------------
SHAWMUT GROWTH AND
INCOME EQUITY FUND
Distribution of Investments
as of October 31, 1995
[A PIE CHART LISTING SHAWMUT GROWTH AND EQUITY FUND INVESTMENTS BY TYPE
APPEARS HERE:]
<TABLE>
<S> <C>
Other Common & Preferred Stocks 27%
Consumer Staples 18%
Consumer Cyclicals 10%
Energy 9%
Technology 9%
Utilities 9%
Capital Goods 9%
Cash Equivalents 9%
</TABLE>
return for the 12 months ended October 31, 1995. During that time, the Fund's
Investment and Trust shares had net returns of 18.52% and 18.80%, respectively,
after deducting expenses, and generated a dividend yield of 3.2%. For the same
period, Standard and Poor's 500 Index had a return of 26.44% and delivered a
dividend yield of 2.4%, while the average growth and income fund tracked by
Lipper Analytical Services had a return of 20.23%.
LOOKING FOR VALUE
In choosing investments for the Fund, we looked for stocks whose prices are
attractive compared to their potential for high rates of return and above-
average income. We invested a nominal portion of Fund assets in those sectors
that tend to offer little income, such as the technology sector. It was this
sector that led the recent market rally. This strategy did cause us to emphasize
financial and consumer staples stocks, which benefited from falling interest
rates and slower growth in the economy.
Among the Fund's top performing holdings in these groups were Pfizer,
Merck, Comerica Inc. and Aetna Life and Casualty. The Fund also enjoyed strong
gains from selected investments in technology stocks, such as Computer Sciences
and IBM, and from transportation stocks like British Air.
As the economy slowed and interest rates fell, we added new investments in
growth-oriented companies such as Elan Corp., Humana Inc. and Vodafone and in
financial firms like Lincoln National and PNC Banking Corp. We also added shares
of companies that were in the process of restructuring such as E.I. duPont and
Occidental Petroleum.
SHAWMUT GROWTH AND
INCOME EQUITY FUND
Growth of $10,000 investment*
[A MOUNTAIN CHART COMPARING THE GROWTH OF $10,000 INVESTED IN INVESTMENT SHARES
OF THE SHAWMUT GROWTH AND EQUITY FUND AND THE STANDARD & POOR'S 500 INDEX
APPEARS HERE:]
<TABLE>
<CAPTION>
Start End
<S> <C> <C>
Investment Shares $9,600 $13,185
Index $10,000 14,284
</TABLE>
- --------------------------------------------------------------------------------
* Since inception on 2/12/93. The S&P 500 is an unmanaged index in which
investors cannot invest. Results for the index do not reflect the expenses and
investment management fees incurred by the Fund. The initial investment of
$10,000 reflects the Fund's 4% sales charge, resulting in the $9,600 beginning
balance.
SHAWMUT GROWTH AND
INCOME EQUITY FUND
Growth of $10,000 investment*
[A MOUNTAIN CHART COMPARING THE GROWTH OF $10,000 INVESTED IN TRUST SHARES OF
THE SHAWMUT GROWTH AND EQUITY FUND AND THE STANDARD & POOR'S INDEX APPEARS
HERE:]
<TABLE>
<CAPTION>
Start End
<S> <C> <C>
Trust Shares $10,000 $14,147
Index $10,000 14,601
</TABLE>
- --------------------------------------------------------------------------------
* Since inception on 12/14/92. The S&P 500 is an unmanaged index in which
investors cannot invest. Results for the index do not reflect the expenses and
investment management fees incurred by the Fund.
6
<PAGE>
- ------------------------
PORTFOLIO REVIEWS
- ------------------------
THE ROAD AHEAD
Once stock prices had risen significantly, we reduced positions in selected
financial and transportation stocks that became fully valued and increased the
Fund's cash reserves to 10%. If a slower economy brings disappointments in
earnings and declines in stock prices, this cash could be used for any new
investment opportunities that occur.
The Fund will likely maintain strong positions in health care and financial
stocks, which remain attractively priced and should continue to benefit from
slow growth and low interest rates. In addition, the Fund will probably keep a
position in consumer cyclical stocks. Although these stocks lagged the market
for most of the rally, they represent good value and could respond well as the
economy improves.
Brendan Henebry has managed the Shawmut Growth and Income Equity Fund since
inception. He has managed equity portfolios since 1969.
SHAWMUT SMALL
CAPITALIZATION EQUITY
FUND
Distribution of Investments
as of October 31, 1995
[A PIE CHART LISTING SHAWMUT SMALL CAPITALIZATION EQUITY FUND INVESTMENTS BY
TYPE APPEARS HERE:]
<TABLE>
<S> <C>
Other Common Stocks 18%
Financial 14%
Consumer Cyclicals 10%
Energy 8%
Technology 23%
Consumer Staples 11%
Capital Goods 7%
Cash Equivalents and Other Investments 9%
</TABLE>
SHAWMUT SMALL CAPITALIZATION
EQUITY FUND*
By Peter Larson
Portfolio Manager
The Small Capitalization Equity Fund seeks long-term capital appreciation by
investing in stocks of small companies offering potential for significant gains.
For several years, this strategy has caused us to invest heavily in technology
stocks, which led the market in the recent rally. By also emphasizing the
strongly performing health care and financial sectors, the Shawmut Small
Capitalization Equity Fund delivered attractive returns for the 12 months ended
October 31, 1995.
During that time, the Fund's Investment and Trust shares had net returns of
21.27% and 21.52%, respectively, after deducting expenses. For the same period,
the average small company growth fund tracked by Lipper Analytical Services had
a return of 22.72%, and the Russell 2000 Index had a return of 18.33%.
SHAWMUT SMALL CAPITALIZATION
EQUITY FUND
Growth of $10,000 investment*
[A MOUNTAIN CHART COMPARING THE GROWTH OF $10,000 INVESTED IN INVESTMENT SHARES
OF THE SHAWMUT SMALL CAPITALIZATION EQUITY FUND AND THE STANDARD AND POOR'S 500
INDEX APPEARS HERE:]
<TABLE>
<CAPTION>
Start End
<S> <C> <C>
Investment Shares $9,600 $12,610
Index $10,000 14,284
</TABLE>
* Since inception on 2/12/93. The S&P 500 is an unmanaged index in which
investors cannot invest. Results for the index do not reflect the expenses and
investment management fees incurred by the Fund. The initial investment of
$10,000 reflects the Fund's 4% sales charge, resulting in the $9,600 beginning
balance.
- --------------------------------------------------------------------------------
* As of December 4, 1995, this Fund was renamed the Galaxy Small Cap Value Fund.
7
<PAGE>
TOP PERFORMERS
Top performers in the technology group included Computer Task Group, Coherent,
Sterling Software, Alliance Semiconductor and Lattice Semiconductor. Among
financial and health care stocks with the strongest gains were Coast Savings and
Loan, U.S. Bancorp, Bay Ridge Bancorp, Surgical Care Affiliates, and Lifecore
Biomedical.
Early in 1995, we began a program to gradually reduce shares of technology
stocks in order to lock in gains achieved in this sector. We added to holdings
in energy stocks such as Vintage Petroleum, Coda Energy and Southwest Gas Corp.
which we expected to benefit from increased energy demand. We also found
attractive values in consumer staples stocks such as ICN Pharmaceuticals,
Northland Cranberries and Rykoff Sexton, a food wholesaler.
NEW OPPORTUNITIES
We've used some sales proceeds to raise the Fund's cash reserves to 10%. This
should help the Fund make the most of new investment opportunities that might
occur if slower economic growth causes earnings and stock prices to fall. Some
of these opportunities may come from life insurance companies which may be the
next group to benefit from a trend toward consolidation among financial services
firms.
Peter Larson has managed the Shawmut Small Capitalization Equity Fund, and its
predecessor, since 1992. He has managed small company portfolios since 1981.
SHAWMUT SMALL CAPITALIZATION
EQUITY FUND
Growth of $10,000 investment*
[A MOUNTAIN CHART COMPARING THE GROWTH OF $10,000 INVESTED IN TRUST SHARES OF
THE SHAWMUT SMALL CAPITALIZATION EQUITY FUND AND THE STANDARD & POOR'S 500 INDEX
APPEARS HERE:]
<TABLE>
<CAPTION>
Start End
<S> <C> <C>
Trust Shares $10,000 $13,878
Index $10,000 14,601
</TABLE>
* Since inception on 12/14/92. The S&P 500 is an unmanaged index in which
investors cannot invest. Results for the index do not reflect the expenses and
investment management fees incurred by the Fund.
- --------------------------------------------------------------------------------
Investment returns and principal values will vary with market conditions so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Past performance is no guarantee of future results. Total return
figures in this report include changes in share price, and reinvestment of
dividends and capital gains distributions, if any.
8
<PAGE>
- ------------------------
CONNECTICUT MUNICIPAL MONEY MARKET
THE SHAWMUT PORTFOLIO OF INVESTMENTS
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATING* (NOTE 2)
- ------------ -------- -------------
<C> <S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--94.6%
CONNECTICUT--89.9%
$ 4,800,000 Connecticut State Development Authority Health Care,
Weekly VRDN, Revenue Refunding Bond, 3.80%, 7/1/15
(Corporate Independent Living Project)/(Chemical Bank LOC)............. VMIG1........ $ 4,800,000
2,600,000 Connecticut State Development Authority PCR,
Monthly VRDN, 3.65%, 12/1/15
(Central Vermont Public Service)/(Toronto Dominion Bank LOC)........... AA........... 2,600,000
15,500,000 Connecticut State Development Authority PCR,
Weekly VRDN, 3.90%, 9/1/28
(Connecticut Light & Power Project)/(Deutsche Bank A.G. LOC)........... VMIG1........ 15,500,000
1,200,000 Connecticut State Development Authority,
Monthly VRDN, 3.70%, 9/1/09
(Trudy Corp. Project-1984)/(Citibank LOC).............................. A-1.......... 1,200,000
1,300,000 Connecticut State Development Authority,
Weekly VRDN, Revenue Bond, 3.85%, 11/1/05
(Conco Project)/(Bayerische Vereinsbank LOC)........................... Aaa.......... 1,300,000
3,100,000 Connecticut State Development Authority,
Monthly VRDN, Revenue Refunding Bond, 3.80%, 2/1/13
(Allen Group, Inc.)/(Bayerische Vereinsbank LOC)....................... Aaa.......... 3,100,000
600,000 Connecticut State Development Authority,
Weekly VRDN, 3.60%, 5/1/05
(Martin-Brower Co. Project)/(Chemical Bank LOC)........................ A-1.......... 600,000
3,000,000 Connecticut State Development Authority, VRDN,
4.25%, 12/1/2013
(Life Care - McAuley Center Inc.)/(National Australia Bank LOC)........ Aa3.......... 3,000,000
1,000,000 Connecticut State HEFA,
Weekly VRDN, Revenue Bond, 3.80%, 7/1/24
(Pomfret School, Inc.)/(Series A)/(Credit Local de France LOC)......... Aaa.......... 1,000,000
1,205,000 Connecticut State HEFA,VRDN,
Revenue Bond, 4.00%, 6/1/12
(Trinity College)...................................................... A1........... 1,205,000
2,030,000 Connecticut State HFA,
Revenue Bond, 4.2%, 5/15/1996
(Housing Mortgage Finance Program)/(Series A).......................... Aa........... 2,031,034
1,500,000 Connecticut State Municipal Electric Energy
CoOp Power Supply Systems,
Revenue Bond, 3.5%, 1/1/1996
(Series A)/(MBIA Insured).............................................. Aaa.......... 1,499,614
5,000,000 Connecticut State Special Assesment Unemployment Compensation,
VRDN, Revenue Bond, 3.90%, 11/15/01
(FGIC Insured)......................................................... VMIG1........ 5,000,000
5,000,000 Connecticut State Special Tax Obligations,
Weekly VRDN, Revenue Bond, 3.90%, 12/1/10
(Industrial Bank of Japan LOC)......................................... VMIG1........ 5,000,000
630,000 Connecticut State HFA, HMFP,
Revenue Refunding Bond, 7.70%, 11/15/1995
(Series B)............................................................. AA........... 630,870
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
- ------------------------
CONNECTICUT MUNICIPAL MONEY MARKET
THE SHAWMUT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATING* (NOTE 2)
- ------------ -------- -------------
<C> <S> <C> <C>
CONNECTICUT (CONTINUED)
$ 3,300,000 Connecticut State,
Weekly VRDN, GO UT
Economic Recovery Refunding Bond, 3.90%, 6/1/96
(Series B)/(Industrial Bank of Japan SPA).............................. VMIG1........ $ 3,300,000
1,025,000 Branford, CT,
4.08% GO UT Note,
4/11/1996.............................................................. NR........... 1,026,989
2,175,000 Branford, CT,
3.49% BAN,
4/11/1996.............................................................. NR........... 2,175,091
5,000,000 East Hartford, CT,
3.5% GO UT BAN,
1/30/1996.............................................................. NR........... 5,000,460
1,000,000 East Haven, CT,
3.75% GO UT BAN,
9/4/1996............................................................... NR........... 1,000,320
2,000,000 Fairfield, CT,
5.00% GO UT BAN,
1/16/1996.............................................................. NR........... 2,000,793
900,000 Fairfield, CT
3.87% GO UT Sewer Assesment Note,
6/7/1996............................................................... NR........... 900,363
450,000 Litchfield, CT,
3.56% GO UT BAN,
4/25/1996.............................................................. NR........... 450,234
914,000 Manchester, CT,
3.65% GO UT Note,
7/11/1996.............................................................. NR........... 914,291
1,000,000 Meriden, CT,
6.40% GO UT Bond,
(AMBAC Insured),
1/15/1996.............................................................. Aaa.......... 1,004,529
4,000,000 Meriden, CT,
3.5% GO UT BAN,
2/14/1996.............................................................. A............ 4,000,438
2,000,000 Middletown, CT,
4.04% GO UT BAN,
4/15/1996.............................................................. NR........... 2,003,878
2,000,000 Milford, CT,
4.75% GO UT BAN,
11/15/1995............................................................. NR........... 2,000,185
2,000,000 Montville, CT,
5.10% GO UT BAN,
1/29/1996.............................................................. NR........... 2,001,394
3,600,000 New Canaan, CT,
4% BAN,
11/8/1995.............................................................. NR........... 3,600,201
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
- ------------------------
CONNECTICUT MUNICIPAL MONEY MARKET
THE SHAWMUT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATING* (NOTE 2)
- ------------ -------- -------------
<C> <S> <C> <C>
CONNECTICUT (CONTINUED)
$ 1,500,000 New Canaan, CT,
3.39% GO UT BAN,
11/8/1995.............................................................. NR........... $ 1,500,011
450,000 Norwalk, CT,
5.3% GO UT,
1/15/1996.............................................................. Aa1.......... 451,294
4,085,000 Norwich, CT,
3.54% BAN,
2/1/1996............................................................... NR........... 4,085,379
4,850,000 Regional School District No 13, CT,
3.58%, GO UT BAN,
12/21/1995............................................................. NR........... 4,850,255
1,000,000 Stamford, CT,
6.00% GO UT Bond,
1/15/1996.............................................................. Aaa.......... 1,003,773
580,000 Windsor Locks, CT,
4% GO UT BAN,
5/15/1996.............................................................. NR........... 580,208
-------------
92,316,604
-------------
PUERTO RICO--4.7%
3,295,000 Puerto Rico Commonwealth Highway & Transportation,
Weekly VRDN, Revenue Refunding Bond, 3.65%, 7/1/99
(Series X)/(Union Bank of Switzerland/Swiss Bank Corp.,
NY/Landesbank Hessen-Thuringen Girozentrale, NY LOC)................... VMIG1........ 3,295,000
1,500,000 Puerto Rico Commonwealth Government Development Bank,
Weekly VRDN, Revenue Refunding Bond, 3.65%, 12/1/15
(Credit Suisse, LOC)................................................... VMIG1........ 1,500,000
-------------
4,795,000
-------------
TOTAL SHORT-TERM MUNICIPAL SECURITIES (identified cost $97,111,604)..................... 97,111,604
-------------
MUTUAL FUND SHARES--5%
7,186 CMA Connecticut Municipal Money Market Fund............................................. 7,186
4,151,522 Dreyfus Connecticut Municipal Money Market Fund......................................... 4,151,522
962,199 Fidelity Tax Exempt Money Market Fund................................................... 962,199
-------------
TOTAL MUTUAL FUND SHARES (indentified cost $5,120,907).................................. 5,120,907
-------------
TOTAL INVESTMENTS (identified cost $102,232,511)........................................ $ 102,232,511**
=============
</TABLE>
Note: The categories of investments are shown as a percentage of net assets
($102,636,161) at October 31, 1995.
** Also represents cost for federal tax purposes.
* Please refer to the Appendix of the Statement of Additional Information for
an explanation of the credit ratings. Current credit ratings are unaudited.
The following abbreviations are used throughout this portfolio:
AMBAC American Municipal Bond Assurance Corp.
BAN Bond Anticipation Note
FGIC Financial Guarantee Insurance Corp.
GO General Obligation
HEFA Health and Educational Facilities Authority
HFA Hospital Finance Authority
HMFP Housing Mortgage Finance Program
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
PCR Pollution Control Revenue
SPA Stand-By Purchase Agreement
UT Unlimited Tax
VRDN Variable Rate Demand Notes are payable on not more than one, seven
or thirty business days notice. Put bonds and notes have demand
features which mature within one year. The interest rate shown
reflects the rate in effect.
See Notes to Financial Statements.
11
<PAGE>
- ------------------------
MASSACHUSETTS MUNICIPAL MONEY MARKET
THE SHAWMUT PORTFOLIO OF INVESTMENTS
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATING* (NOTE 2)
- ------------ -------- -------------
<C> <S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--95.0%
MASSACHUSETTS--86.3%
$ 350,000 Amherst, MA,
3.72%, GO UT State Aid Anticipation Note,
12/15/1995.............................................................. NR........... $ 350,088
1,500,000 Arlington, MA,
3.60%, GO UT BAN,
12/22/1995.............................................................. NR........... 1,500,413
1,000,000 Boston, MA,
6.625%, GO UT
(Series A)/(AMBAC Insured),
2/1/1996................................................................ AAA.......... 1,006,988
400,000 Boston, MA,
4.00%, GO UT
(Series A)/(AMBAC Insured),
7/1/1996................................................................ AAA.......... 400,242
1,000,000 Boston Massachusetts Water and Sewage,
Weekly VRDN, Revenue Bond, 6.625%, 2/1/96
(Series A)/(State Street Bank and Trust LOC)............................ AA........... 1,000,000
950,000 Bedford, MA,
4.09% GO UT BAN,
12/27/1995.............................................................. NR........... 950,377
983,000 Falmouth, MA,
4.00%, BAN,
8/30/1996............................................................... NR........... 983,723
1,235,000 Foxborough, MA,
3.90%, BAN,
11/16/1995.............................................................. NR........... 1,235,035
500,000 Framingham, MA,
3.80%, Revenue Bond,
1/19/1996............................................................... NR........... 500,062
1,074,000 Franklin, MA,
4.08%, BAN,
11/15/1995.............................................................. NR........... 1,074,072
1,400,000 Groton, MA,
3.90%, RAN,
11/15/1995.............................................................. NR........... 1,400,050
850,000 Heath, MA,
4.08% BAN,
2/23/1996............................................................... NA........... 850,205
1,000,000 Ipswich, MA,
3.95% TAN,
12/8/1995............................................................... NA........... 1,000,352
600,000 Kingston, MA,
3.95% BAN,
1/17/1996............................................................... NR........... 600,244
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
- ------------------------
MASSACHUSETTS MUNICIPAL MONEY MARKET
THE SHAWMUT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATING* (NOTE 2)
- ------------ -------- -------------
<C> <S> <C> <C>
MASSACHUSETTS (CONTINUED)
$ 165,056 Marshfield, MA,
3.97%, State Aid Anticipation Note
4/16/1996............................................................... NA........... $ 165,145
1,500,000 Massachusetts Municipal Wholesale Electric Co.,
Weekly VRDN, 3.65%, 7/1/19
(Series C)/(Power Supply Systems)/(Canadian Imperial Bank LOC).......... AA-.......... 1,500,000
6,800,000 Massachusetts State HEFA,
Weekly VRDN, 3.55%, 1/11/19
(Series G-1)/(Capital Asset Program)/(MBIA Insured)/
(Credit Suisse, NY SPA)................................................. AAA.......... 6,800,000
1,700,000 Massachusetts State Industrial Finance Agency,
Weekly VRDN, Resource Recovery Revenue Refunding Bond
3.70%, 12/1/06,
(Series A)/(Ogden Haverhill Project)/(Union Bank of Switzerland LOC).... AAA.......... 1,700,000
600,000 Massachusetts State Resource Recovery,
Weekly VRDN, Revenue Bond, 3.70%, 4/1/23
(New England Deaconess Project)/(Banque Paribas LOC).................... VMIG1........ 600,000
1,000,000 Massachusetts State,
Daily VRDN, GO UT Refunding Bond, 3.70%, 12/1/97
(Series E)/(ABN Amro Bank LOC).......................................... AA........... 1,000,000
950,000 Massachusetts State,
Weekly VRDN, GO UT Refunding Bond, 3.70%, 12/1/97
(Series B)/ (National Westminster LOC).................................. AA........... 950,000
800,000 Milford, MA,
3.90% BAN,
12/21/1995.............................................................. NR........... 800,153
300,000 Milford, MA,
4.10% BAN,
12/21/1995.............................................................. NR........... 300,118
200,000 Milford, MA,
3.84% BAN,
12/21/1995.............................................................. NR........... 200,046
1,400,000 Needham, MA,
3.89% BAN,
3/11/1996............................................................... NR........... 1,400,242
700,000 Norfolk, MA,
3.99% GO UT BAN,
2/13/1996............................................................... NR........... 700,368
275,000 Pepperell, MA,
4.90% GO UT,
6/15/1996............................................................... A............ 276,900
1,500,000 Saugus, MA,
3.87% BAN,
12/21/1995.............................................................. NR........... 1,500,313
466,000 Sudbury, MA,
3.89% GO UT State Aid Anticipation Note,
3/29/1996............................................................... NR........... 466,263
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
- ------------------------
MASSACHUSETTS MUNICIPAL MONEY MARKET
THE SHAWMUT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT VALUE
AMOUNT RATING* (NOTE 2)
- ------------ -------- -------------
<C> <S> <C> <C>
MASSACHUSETTS (CONTINUED)
$ 1,500,000 Wayland, MA,
3.72%, BAN,
12/21/1995.............................................................. NR........... $ 1,500,220
500,000 Webster, MA,
3.99%, GO UT BAN,
12/1/1995............................................................... NR........... 500,077
650,000 Weston, MA,
3.88%, RAN,
12/29/1995.............................................................. NA........... 650,078
950,000 Yarmouth, MA,
3.75%, BAN,
6/19/1996............................................................... NA........... 950,279
------------
34,812,053
------------
PUERTO RICO--8.7%
1,750,000 Puerto Rico Commonwealth Government Development Bank,
Weekly VRDN, Revenue Refunding Bond, 3.65%, 12/1/15
(Credit Suisse LOC)..................................................... VMIG1........ 1,750,000
1,735,000 Puerto Rico Commonwealth Highway & Transportation Authority,
Weekly VRDN, 3.65%, 7/1/99,
(Series X)/(Union Bank of Switzerland LOC).............................. VMIG1........ 1,735,000
------------
3,485,000
------------
TOTAL SHORT-TERM MUNICIPAL SECURITIES (identified cost $38,297,053)..................... 38,297,053
------------
MUTUAL FUND SHARES--5%
1,750,997 Dreyfus Massachusetts Municipal Money Market Fund....................................... 1,750,997
271,760 Fidelity Tax Exempt Money Market Fund................................................... 271,760
------------
TOTAL MUTUAL FUND SHARES (identified cost $2,022,757)............................... 2,022,757
------------
TOTAL INVESTMENTS (identified cost $40,319,810)..................................... $ 40,319,810**
============
</TABLE>
Note: The categories of investments are shown as a percentage of net assets
($40,326,146) at October 31, 1995.
** Also represents cost for federal tax purposes.
* Please refer to the Appendix of the Statement of Additional Information for
an explanation of the credit ratings. Current credit ratings are unaudited.
The following abbreviations are used throughout this portfolio:
AMBAC American Municipal Bond Assurance Corp.
BAN Bond Anticipation Note
FGIC Financial Guarantee Insurance Corp.
GO General Obligation
HEFA Health and Educational Facilities Authority
HMFP Housing Mortgage Finance Program
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
RAN Revenue Anticipation Note
SPA Stand - By Purchase Agreement
TAN Tax Anticipation Note
UT Unlimited Tax
VRDN Variable Rate Demand Notes are payable on not more than one, seven
or thirty business days notice. Put bonds and notes have demand
features which mature within one year. The interest rate shown
reflects the rate in effect.
See Notes to Financial Statements.
14
<PAGE>
- ------------------------
GROWTH AND INCOME EQUITY FUND
THE SHAWMUT PORTFOLIO OF INVESTMENTS
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ----------- -------------
<C> <S> <C>
COMMON STOCKS - 88.4%
BASIC MATERIALS - 8.0%
100,000 Dexter Corp.................................................................................... $ 2,387,500
44,000 Dow Chemical Co................................................................................ 3,019,500
68,000 Du Pont (E.I.) de Nemours...................................................................... 4,241,500
245,000 Ethyl Corp..................................................................................... 2,725,625
27,000 Georgia-Pacific Corp........................................................................... 2,227,500
86,000 Lubrizol Corp.................................................................................. 2,472,500
50,000 Weyerhaeuser Co................................................................................ 2,206,250
-------------
19,280,375
-------------
CAPITAL GOODS/CONSTRUCTION - 8.4%
36,000 Boeing Co...................................................................................... 2,362,500
50,000 General Electric Co............................................................................ 3,162,500
86,000 Hubbell, Inc., Class A......................................................................... 5,009,500
84,000 Masco Corp..................................................................................... 2,362,500
57,000 Raytheon Co.................................................................................... 2,486,625
52,000 (a)Thermo Electron Corp........................................................................... 2,392,000
86,000 WMX Technologies, Inc.......................................................................... 2,418,750
-------------
20,194,375
-------------
CONSUMER CYCLICAL - 9.9%
88,000 Arvin Industries, Inc.......................................................................... 1,562,000
80,000 Circuit City Stores, Inc....................................................................... 2,670,000
33,000 Dayton Hudson Corp............................................................................. 2,268,750
48,000 Dun & Bradstreet Corp.......................................................................... 2,868,000
46,000 Eastman Kodak Co............................................................................... 2,880,750
57,000 McDonalds Corp................................................................................. 2,337,000
70,000 Melville Corp.................................................................................. 2,240,000
146,000 Morrison Restaurants, Inc...................................................................... 2,281,250
54,000 Penney (J.C.) Co., Inc......................................................................... 2,274,750
108,000 Wal Mart Stores, Inc........................................................................... 2,335,500
-------------
23,718,000
-------------
CONSUMER STAPLES - 17.5%
94,000 Alberto Culver Co.............................................................................. 2,538,000
50,000 American Home Products Corp.................................................................... 4,431,250
37,000 Anheuser-Busch Companies, Inc.................................................................. 2,442,000
57,000 Baxter International, Inc...................................................................... 2,201,625
68,000 (a)Elan, Corp. PLC, ADR........................................................................... 2,728,500
68,000 Goodyear Tire & Rubber Co...................................................................... 2,584,000
30,000 Johnson & Johnson.............................................................................. 2,445,000
25,000 Lilly (Eli) & Co............................................................................... 2,415,625
52,000 McKesson Corp.................................................................................. 2,483,000
41,000 Merck and Co., Inc............................................................................. 2,357,500
46,000 PepsiCo, Inc................................................................................... 2,426,500
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
- ------------------------
GROWTH AND INCOME EQUITY FUND
THE SHAWMUT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ----------- -------------
<C> <S> <C>
CONSUMER STAPLES (CONTINUED)
44,000 Pfizer, Inc.................................................................................... $ 2,524,500
33,000 Philip Morris Cos., Inc........................................................................ 2,788,500
34,000 Proctor & Gamble Co............................................................................ 2,754,000
80,000 Supervalu Stores, Inc.......................................................................... 2,460,000
29,000 Warner Lambert Co.............................................................................. 2,468,625
-------------
42,048,625
-------------
ENERGY - 9.2%
56,000 Amoco Corp..................................................................................... 3,577,000
23,000 Atlantic Richfield Co.......................................................................... 2,455,250
24,000 Mobil Corp..................................................................................... 2,418,000
30,000 Royal Dutch Petroleum Corp..................................................................... 3,686,250
114,000 Occidental Petroleum Corp...................................................................... 2,451,000
32,000 Schlumberger, Ltd.............................................................................. 1,992,000
50,000 Texaco, Inc.................................................................................... 3,406,250
116,000 USX Marathon Group............................................................................. 2,059,000
-------------
22,044,750
-------------
FINANCIAL - 7.8%
65,000 Comerica, Inc.................................................................................. 2,185,625
80,000 Fleet Financial Group, Inc..................................................................... 3,100,000
54,000 GATX Corp...................................................................................... 2,565,000
72,000 Lincoln National Corp., Inc.................................................................... 3,213,000
31,000 Morgan (J.P.) & Co., Inc....................................................................... 2,390,875
77,000 National City Corp............................................................................. 2,377,375
113,000 PNC Bank Corp.................................................................................. 2,966,250
-------------
18,798,125
-------------
INSURANCE - 2.9%
35,000 Aetna Life & Casuality Co...................................................................... 2,463,125
27,000 Chubb Corp..................................................................................... 2,426,625
40,000 Exel Limited................................................................................... 2,140,000
-------------
7,029,750
-------------
TECHNOLOGY - 9.0%
67,000 AMP, Inc....................................................................................... 2,629,750
50,000 Avnet, Inc..................................................................................... 2,518,750
37,000 (a)Computer Sciences Corp......................................................................... 2,474,375
60,000 General Motors Corp., Class E.................................................................. 2,827,500
27,000 International Business Machines Corp........................................................... 2,625,750
39,000 Motorola, Inc.................................................................................. 2,559,375
90,000 Pitney Bowes, Inc.............................................................................. 3,926,250
166,000 (a)Tandem Computers, Inc.......................................................................... 1,867,500
-------------
21,429,250
-------------
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
- ------------------------
GROWTH AND INCOME EQUITY FUND
THE SHAWMUT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ----------- -------------
<C> <S> <C>
TRANSPORTATION & SERVICES - 2.6%
48,000 British Airways PLC, ADR....................................................................... $ 3,432,000
37,000 Norfolk Southern Corp.......................................................................... 2,858,250
-------------
6,290,250
-------------
UTILITIES - 8.4%
61,000 AT & T Corp.................................................................................... 3,904,000
86,000 Entergy Corp................................................................................... 2,451,000
86,000 GTE Corp....................................................................................... 3,547,500
192,000 Niagara Mohawk Power Corp...................................................................... 2,064,000
68,000 Southern New England Telecommunications Corp................................................... 2,456,500
65,000 U.S. West, Inc................................................................................. 3,095,625
66,000 Vodafone Group PLC, ADR........................................................................ 2,697,750
-------------
20,216,375
-------------
MISCELLANEOUS - 4.7%
130,000 Corning, Inc................................................................................... 3,396,250
120,000 Humana, Inc.................................................................................... 2,535,000
52,000 Minnesota Mining & Manufacturing Co............................................................ 2,957,500
54,000 PHH Corp....................................................................................... 2,362,500
-------------
11,251,250
-------------
TOTAL COMMON STOCK (identified cost $183,548,908)............................................ 212,301,125
-------------
CONVERTIBLE PREFERRED STOCK - 2.7%
48,000 Delta Air Lines, Inc., Series C, 7%............................................................ 2,658,000
40,000 Ford Motor Co., Series A, $4.20................................................................ 3,760,000
-------------
TOTAL CONVERTIBLE PREFERRED STOCK (identified cost $6,257,682)............................... 6,418,000
-------------
MUTUAL FUND SHARES - 8.9%
10,695,500 Dreyfus Cash Management........................................................................ 10,695,500
10,719,665 Fidelity Institutional Cash Money Market Fund.................................................. 10,719,665
-------------
TOTAL MUTUAL FUND SHARES (identified cost $21,415,165)...................................... 21,415,165
-------------
<CAPTION>
PRINCIPAL AMOUNT
- ----------------
REPURCHASE AGREEMENTS - 0.4%
<C> <S> <C>
$1,000,000 HSBC Securities, Inc., 5.82%, dated 10/31/1995, due 11/1/1995 (identified cost $1,000,000)..... 1,000,000
-------------
TOTAL INVESTMENTS (identified cost $212,221,755)............................................ $ 241,134,290**
=============
</TABLE>
Note: The categories of investments are shown as a percentage of net assets
($240,089,195) at October 31, 1995.
(a) Non-income producing securities
** The cost of investments for federal tax purposes amounts to $212,886,420.
The net unrealized appreciation of investments on a federal tax basis
amounts to $28,247,870, which is comprised of $33,949,006 appreciation and
$5,701,136 depreciation at October 31, 1995.
The following abbreviation(s) are used throughout this portfolio:
ADR - American Depository Receipts
See Notes to Financial Statements.
17
<PAGE>
- ------------------------
SMALL CAPITALIZATION EQUITY FUND
THE SHAWMUT PORTFOLIO OF INVESTMENTS
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ----------- -------------
<C> <S> <C>
COMMON STOCKS - 90.1%
BASIC MATERIALS - 4.5%
5,600 Calgon Carbon Corp............................................................................. $ 63,700
15,000 Caraustar Industries, Inc...................................................................... 281,250
20,328 Chemi-Trol Chemical Co......................................................................... 233,772
27,200 Dexter Corp.................................................................................... 649,400
20,000 Elcor Chemical Corp............................................................................ 420,000
20,500 Fuller HB Co................................................................................... 645,750
21,512 Guardsman Products, Inc........................................................................ 244,699
41,700 Petrolite Corp................................................................................. 979,950
43,900 Quaker Chemical................................................................................ 702,400
26,700 (a)Steel of West Virginia, Inc.................................................................... 226,950
49,500 (a)Sybron Chemicals Industries, Inc............................................................... 637,313
28,090 Varlen Corp.................................................................................... 751,408
40,000 Westpoint Stevens, Inc., Class A............................................................... 845,000
-------------
6,681,592
-------------
CAPITAL GOODS/CONSTRUCTION - 6.4%
31,000 Analysis & Technology, Inc..................................................................... 496,000
20,000 (a)Atchenson Casting Corp......................................................................... 317,500
41,600 (a)Beazer Homes USA, Inc.......................................................................... 728,000
14,600 (a)Centex Construction Products, Inc.............................................................. 184,325
75,579 (a)D.R. Horton, Inc............................................................................... 840,816
20,300 Duriron, Inc................................................................................... 543,025
35,000 (a)Foster L.B. Co., Class A....................................................................... 144,375
55,600 Instron Corp................................................................................... 674,150
15,000 Osmonics, Inc.................................................................................. 255,000
47,000 (a)Redman Industries, Inc......................................................................... 1,222,000
49,600 Toro Co........................................................................................ 1,432,200
62,600 (a)Triangle Pacific Corp.......................................................................... 993,775
17,000 Valmont Industries, Inc........................................................................ 416,500
26,900 (a)Varitronic Systems, Inc........................................................................ 242,100
37,500 Wolverine World Wide, Inc...................................................................... 1,125,000
-------------
9,614,766
-------------
CONSUMER CYCLICAL - 9.7%
36,500 Anthony Industries, Inc........................................................................ 679,813
22,000 Arctco, Inc.................................................................................... 247,500
79,300 Cash America International, Inc................................................................ 406,413
22,100 (a)Coherent, Inc.................................................................................. 624,325
10,200 (a)Designs, Inc................................................................................... 70,284
48,750 (a)Dimark, Inc.................................................................................... 670,313
58,600 (a)El Chico Restaurants, Inc...................................................................... 578,675
43,500 Falcon Products, Inc........................................................................... 609,000
71,000 (a)Fieldcrest Cannon, Inc......................................................................... 1,366,750
46,500 Gibson Greetings, Inc.......................................................................... 645,188
19,900 (a)Hi-Lo Automotive, Inc.......................................................................... 116,913
24,000 Houghton Mifflin Co............................................................................ 984,000
12,300 (a)Jones Apparel Group, Inc....................................................................... 421,275
</TABLE>
See Notes to Financial Statements.
18
<PAGE>
- ------------------------
SMALL CAPITALIZATION EQUITY FUND
THE SHAWMUT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ----------- -------------
<C> <S> <C>
CONSUMER CYCLICAL (CONTINUED)
18,333 LADD Furniture, Inc............................................................................ $ 242,912
48,000 (a)Monaco Coach Corp.............................................................................. 438,000
22,750 Morrison Restaurants, Inc...................................................................... 355,469
17,600 (a)Mothers Work, Inc.............................................................................. 228,800
22,000 PCA International, Inc......................................................................... 228,250
37,900 Protection One, Inc............................................................................ 298,463
70,500 (a)R & B, Inc..................................................................................... 555,188
80,000 Richfood Holdings, Inc......................................................................... 2,000,000
61,800 Rival Co....................................................................................... 1,205,100
83,500 (a)Ryans Family Steak Houses...................................................................... 647,125
61,000 (a)Spaghetti Warehouse, Inc....................................................................... 289,750
8,800 (a)Value City Department Stores, Inc.............................................................. 52,800
89,900 (a)Worldtex, Inc.................................................................................. 494,450
-------------
14,456,756
-------------
CONSUMER STAPLES - 11.4%
8,000 American Radio Systems Corp., Class A.......................................................... 180,000
15,000 Avalon Properties, Inc., REIT.................................................................. 292,500
69,800 Ballard Medical Products....................................................................... 1,204,050
14,500 Bindley Western Industries, Inc................................................................ 226,563
47,900 Biocraft Labs, Inc............................................................................. 742,450
41,500 Delta & Pine Land Co........................................................................... 1,608,125
15,500 (a)Dorsey Trailers, Inc........................................................................... 104,625
10,000 EchoStar Communications Corp., Class A......................................................... 145,000
36,000 (a)Gish Biomedical, Inc........................................................................... 306,000
24,800 Hannaford Brothers Co.......................................................................... 647,900
50,000 Innkeepers USA Trust, REIT..................................................................... 456,250
33,333 (a)International Cabletel, Inc.................................................................... 883,325
40,000 Interstate Bakeries Corp....................................................................... 855,000
85,000 Kinetic Concepts, Inc.......................................................................... 945,625
61,900 (a)Lifecore Biomedical, Inc....................................................................... 611,263
31,800 (a)Lincare Holdings, Inc.......................................................................... 791,025
53,875 Minntech Corp.................................................................................. 1,090,969
58,000 (a)Noven Pharmaceuticals, Inc..................................................................... 594,500
32,000 (a)OEC Medical Systems, Inc....................................................................... 296,000
35,000 (a)OPTI, Inc...................................................................................... 350,000
41,100 (a)Paragon Trade Brands, Inc...................................................................... 652,463
87,500 (a)Pharmaceutical Marketing Services, Inc......................................................... 1,006,250
40,000 Physician Corp. of America..................................................................... 615,000
41,600 (a)ReadiCare, Inc................................................................................. 130,000
23,500 Sanfilippo, John B & Son, Inc.................................................................. 246,750
5,500 (a)Spacelabs Medical, Inc......................................................................... 141,625
23,900 TCA Cable TV, Inc.............................................................................. 708,038
37,900 Unifirst Corp.................................................................................. 530,600
122,100 (a)Unilab Corp.................................................................................... 381,563
20,000 (a)United American Healthcare Co.................................................................. 220,000
-------------
16,963,459
-------------
</TABLE>
See Notes to Financial Statements.
19
<PAGE>
- ------------------------
SMALL CAPITALIZATION EQUITY FUND
THE SHAWMUT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ----------- -------------
<C> <S> <C>
ENERGY - 8.0%
75,000 (a)Alamco, Inc.................................................................................... $ 600,000
19,500 Barrett Resources Corp......................................................................... 453,375
41,000 (a)Belden & Blake Corp............................................................................ 595,141
75,000 (a)Bellwether Exploration Co...................................................................... 403,125
44,200 Berry Petroleum Co., Class A................................................................... 453,050
30,000 Cairn Energy USA, Inc.......................................................................... 360,000
2,500 Carbide/Graphite Group, Inc.................................................................... 32,969
21,300 Cascade Natural Gas Corp....................................................................... 316,838
97,300 Coda Energy, Inc............................................................................... 729,750
38,000 Cross Timbers Oil Co........................................................................... 551,000
32,200 Devon Energy Corp.............................................................................. 700,350
31,500 (a)Dual Drilling Co............................................................................... 307,125
29,500 (a)Gulfmark International, Inc.................................................................... 678,500
50,000 Newpark Resources, Inc......................................................................... 793,750
40,800 (a)Oceaneering International, Inc................................................................. 387,600
68,000 Parker & Parsley Petroleum Co.................................................................. 1,258,000
23,400 Pogo Producing Co.............................................................................. 470,925
20,400 (a)Seagull Energy Corp............................................................................ 349,350
7,975 (a)Tejas Gas Corp................................................................................. 373,828
10,000 Tidelands Realty Trust......................................................................... 70,000
40,000 (a)United Meridian Corp........................................................................... 675,000
65,000 Vintage Petroleum, Inc......................................................................... 1,308,125
-------------
11,867,801
-------------
FINANCIAL - 13.6%
58,000 American Annuity Group, Inc.................................................................... 623,500
31,000 American Eagle Group, Inc...................................................................... 360,375
28,500 American Federal Bank - FSB.................................................................... 420,375
37,500 (a)Amvestors Financial Corp....................................................................... 421,875
49,100 Bay Ridge Bancorp, Inc......................................................................... 1,049,513
19,000 Benson Financial Corp.......................................................................... 337,250
22,500 BSB Bancorp, Inc............................................................................... 759,375
24,500 CENFED Financial Corp.......................................................................... 569,625
20,100 Coast Savings Financial, Inc................................................................... 530,138
29,700 (a)D & N Financial Corp. (Warrants)............................................................... 137,363
87,000 (a)D & N Financial Corp........................................................................... 1,033,125
15,000 Eaton Vance Corp............................................................................... 547,500
39,800 (a)Home State Holdings, Inc....................................................................... 358,200
21,680 Integon Corp................................................................................... 355,010
12,200 Kansas City Life Insurance Co.................................................................. 622,200
45,200 (a)KBK Capital Corp............................................................................... 271,200
35,600 Life Partners Group, Inc....................................................................... 645,250
24,300 Mountain Parks Financial Corp.................................................................. 564,975
16,072 (a)National Auto Credit, Inc...................................................................... 261,170
30,795 North Side Savings Bank of the Bronx........................................................... 900,754
</TABLE>
See Notes to Financial Statements.
20
<PAGE>
- ------------------------
SMALL CAPITALIZATION EQUITY FUND
THE SHAWMUT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ----------- -------------
<C> <S> <C>
FINANCIAL (CONTINUED)
12,500 Oriental Bank & Trust.......................................................................... $ 184,375
74,400 (a)Payco American Corp............................................................................ 632,400
22,700 Penncorp Financial Group, Inc.................................................................. 541,963
41,500 Poe & Brown, Inc............................................................................... 1,011,563
18,304 Portsmouth BankShares, Inc..................................................................... 274,560
40,000 Security Connecticut Corp...................................................................... 1,040,000
66,700 SEI Corp....................................................................................... 1,417,375
40,000 Selective Insurance Group, Inc................................................................. 1,490,000
36,750 Southwest Securities Group, Inc................................................................ 358,313
18,700 UMB Financial Corp............................................................................. 799,425
38,500 USBancorp, Inc................................................................................. 1,241,625
18,200 Victoria Bankshares, Inc....................................................................... 523,250
-------------
20,283,622
-------------
HEALTHCARE - 2.6%
15,000 Allied Healthcare Products, Inc................................................................ 285,000
7,000 Alpharma, Inc., Class A........................................................................ 168,000
40,000 Amylin Pharmaceuticals, Inc.................................................................... 295,000
10,000 Community Psychiatric Centers.................................................................. 108,750
62,250 ICN Pharmaceuticals, Inc....................................................................... 1,276,107
10,000 Immulogic Pharmaceutical Corp.................................................................. 117,500
21,000 Respironics, Inc............................................................................... 456,750
20,000 Staar Surgical Co.............................................................................. 212,500
5,000 Total Renal Care Holdings, Inc................................................................. 77,500
41,000 Ventritex, Inc................................................................................. 804,625
-------------
3,801,732
-------------
MISCELLANEOUS - 9.3%
82,450 ADVO, Inc...................................................................................... 2,102,475
13,000 American Classic Voyages Corp.................................................................. 156,000
40,000 Business Resource Group........................................................................ 190,000
19,000 Career Horizons, Inc........................................................................... 508,250
28,900 (a)DIMAC Corp..................................................................................... 755,013
20,000 Gilbert Associates, Inc., Class A.............................................................. 280,938
11,000 (a)Harding Associates, Inc........................................................................ 75,625
51,500 (a)Layne, Inc..................................................................................... 463,500
40,000 NHP, Inc....................................................................................... 570,000
52,000 Northland Cranberries, Inc..................................................................... 897,000
12,500 Pet Practice, Inc.............................................................................. 156,250
30,200 Pride Petroleum Services, Inc.................................................................. 264,250
20,000 Prime Hospitality Corp......................................................................... 197,500
8,300 (a)Pronet, Inc.................................................................................... 211,650
53,500 (a)Res Care, Inc.................................................................................. 882,750
40,000 Rexel, Inc..................................................................................... 460,000
11,000 (a)Rural/Metro Corp............................................................................... 264,000
47,000 Rykoff-Sexton, Inc............................................................................. 1,057,500
</TABLE>
See Notes to Financial Statements.
21
<PAGE>
- ------------------------
SMALL CAPITALIZATION EQUITY FUND
THE SHAWMUT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ----------- -------------
<C> <S> <C>
MISCELLANEOUS (CONTINUED)
11,500 Seda Specialty Packaging Corp.................................................................. $ 127,938
20,000 SOS Staffing Services, Inc..................................................................... 160,000
67,500 (a)Sterile Concepts Holdings, Inc................................................................. 953,438
44,500 (a)Thomas Group, Inc.............................................................................. 556,250
106,050 Unitog Co...................................................................................... 2,492,175
-------------
13,782,502
-------------
TECHNOLOGY - 23.2%
42,300 Aviall, Inc.................................................................................... 354,263
28,200 (a)American Management Systems, Inc............................................................... 814,275
56,200 Analogic Corp.................................................................................. 1,053,750
38,600 Andros, Inc.................................................................................... 665,850
42,000 (a)BancTec, Inc................................................................................... 787,500
10,000 BDM International, Inc......................................................................... 250,000
20,000 (a)Benchmark Electronics, Inc..................................................................... 515,000
32,600 BGS Systems, Inc............................................................................... 1,246,950
34,000 (a)Bisys Group, Inc............................................................................... 952,000
79,050 (a)Boole & Babbage, Inc........................................................................... 2,826,038
24,500 Burr-Brown Corp................................................................................ 796,250
35,000 (a)CEM Corp....................................................................................... 459,375
38,200 (a)Cognos, Inc.................................................................................... 1,217,625
55,200 (a)Comptek Research, Inc.......................................................................... 869,400
117,000 Computer Task Group, Inc....................................................................... 2,018,250
52,000 (a)Comshare, Inc.................................................................................. 1,495,000
27,100 (a)Continuum, Inc................................................................................. 1,067,063
26,000 Data General Corp.............................................................................. 299,000
5,000 Dawson Geophysical Co.......................................................................... 50,000
18,360 (a)Detection Systems, Inc......................................................................... 121,635
14,500 (a)Evans & Sutherland Computer Co................................................................. 304,500
15,000 Exabyte Corp................................................................................... 194,063
30,000 Flextronics International...................................................................... 697,500
30,500 (a)Gelman Sciences, Inc........................................................................... 651,938
75,000 (a)Giga Tronics, Inc.............................................................................. 600,000
100,500 Hogan Systems, Inc............................................................................. 891,938
50,500 (a)Information Resources, Inc..................................................................... 549,188
30,000 Intercargo Corp................................................................................ 360,000
22,700 (a)Interphase Corp................................................................................ 261,050
15,700 (a)Intersolv, Inc................................................................................. 247,275
37,700 (a)K-Tron International, Inc...................................................................... 263,900
26,500 Keithley Instruments, Inc...................................................................... 761,875
18,800 (a)Kent Electronics Corp.......................................................................... 916,500
57,600 Mac-Neal Schwendler Corp....................................................................... 878,400
39,800 (a)MDL Information Systems, Inc................................................................... 751,225
10,000 Micrion Corp................................................................................... 127,500
38,500 Nashua Corp.................................................................................... 486,063
24,000 National Computer Systems, Inc................................................................. 456,000
16,200 National Data Corp............................................................................. 429,300
42,000 (a)Phoenix Technology Ltd......................................................................... 488,250
</TABLE>
See Notes to Financial Statements.
22
<PAGE>
- ------------------------
SMALL CAPITALIZATION EQUITY FUND
THE SHAWMUT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
- ----------- -------------
<C> <S> <C>
TECHNOLOGY (CONTINUED)
32,600 (a)Softech, Inc................................................................................... $ 136,513
15,000 SPSS, Inc...................................................................................... 253,125
56,201 (a)Sterling Software, Inc......................................................................... 2,592,271
25,185 Storage Technology Corp........................................................................ 620,181
14,700 (a)Symix Systems, Inc............................................................................. 154,350
66,600 (a)Unitrode Corp.................................................................................. 1,789,875
23,600 (a)Verifone Inc................................................................................... 637,200
24,000 VMark Software, Inc............................................................................ 165,000
-------------
34,524,204
-------------
TRANSPORTATION - 0.7%
20,000 Arnold Industries, Inc......................................................................... 325,000
19,300 (a)Builders Transportation, Inc................................................................... 173,700
28,875 (a)Cannon Express, Inc., Class A.................................................................. 339,281
16,875 (a)Cannon Express, Inc., Class B.................................................................. 130,781
4,000 Midwest Express Holdings, Inc.................................................................. 100,500
-------------
1,069,262
-------------
UTILITIES - 0.7%
15,000 ACC Corp....................................................................................... 281,250
20,000 Middlesex Water Co............................................................................. 340,000
30,800 Southwest Gas Corp............................................................................. 465,850
-------------
1,087,100
-------------
TOTAL COMMON STOCKS (identified cost $114,724,606)............................................. 134,132,796
-------------
CORPORATE BOND - 0.3%
$369,900 Mac-Neal Schwendler Corp.,
7.875%, Sub. Deb. Conv., 8/18/2004
(identified cost $369,900)..................................................................... 417,987
-------------
MUTUAL FUND SHARES - 9.2%
6,955,511 Dreyfus Cash Management Trust.................................................................. 6,955,511
6,724,909 Fidelity Institutional Cash Money Market Fund.................................................. 6,724,909
-------------
TOTAL MUTUAL FUND SHARES (identified cost $13,680,420)....................................... 13,680,420
-------------
TOTAL INVESTMENTS (identified cost, $128,774,926)............................................ $ 148,231,203**
=============
</TABLE>
Note: The categories of investments are shown as a percentage of net assets
($148,910,020) at October 31, 1995
(a) Non-income producing
** The cost of investments for federal tax purposes amounts to $128,774,926.
The net unrealized appreciation amounts to $19,456,277, which is comprised
of $30,284,002 appreciation and $10,827,725 depreciation at October 31,
1995.
The following abbreviation is used in this portfolio:
REIT - Real Estate Investment Trust
See Notes to Financial Statements.
23
<PAGE>
- ------------------------
THE SHAWMUT STATEMENTS OF ASSETS AND LIABILITIES
FUNDS OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
Connecticut Massachusetts Small
Municipal Municipal Growth and Income Capitalization
Money Market Money Market Equity Equity
Fund Fund* Fund Fund
------------ ------------- ----------------- --------------
<S> <C> <C> <C> <C>
Assets:
Investments in securities, at value.................. $102,232,511 $40,319,810 $241,134,290 $148,231,203
Income receivable.................................... 911,208 248,141 439,971 95,947
Receivable for investments sold...................... 626,966 ---- 2,836,579 958,265
Receivable for shares sold........................... ---- ---- 432,817 193,457
Deferred expenses.................................... 1,992 801 28,970 21,992
------------ ----------- ------------ ------------
Total assets...................................... 103,772,677 40,568,752 244,872,627 149,500,864
------------ ----------- ------------ ------------
Liabilities:
Payable for investments purchased.................... 1,000,320 165,163 4,049,801 416,890
Payable for shares redeemed.......................... 1,300 7,800 431,793 51,295
Income distribution payable.......................... 78,644 45,963 ---- ----
Payable to Bank...................................... ---- ---- 230,062 61,877
Accrued expenses..................................... 56,252 23,680 71,776 60,782
------------ ----------- ------------ ------------
Total liabilities................................. 1,136,516 242,606 4,783,432 590,844
------------ ----------- ------------ ------------
Net Assets Consists of:
Paid in capital...................................... 102,636,161 40,326,146 199,893,725 118,902,166
Net unrealized appreciation
(depreciation) of investments..................... ---- ---- 28,912,535 19,456,277
Accumulated net realized gain
(loss) on investments............................. ---- ---- 10,900,461 10,570,008
Undistributed (Distributions in excess of)
net investment income............................. ---- ---- 382,474 (18,431)
------------ ----------- ------------ ------------
Total Net Assets............................... $102,636,161 $40,326,146 $240,089,195 $148,910,020
------------ ----------- ------------ ------------
Net Assets:
Trust Shares...................................... $ 31,164,389 N/A $189,011,072 $121,364,023
Investment Shares................................. $ 71,471,772 $40,326,146 $ 51,078,123 $ 27,545,997
------------ ----------- ------------ ------------
Net Asset Value and Redemption Proceeds Per Share:
Trust Shares...................................... $ 1.00 N/A $ 12.35 $ 12.71
Investment Shares................................. $ 1.00 $1.00 $ 12.35 $ 12.68
Offering Price Per Share**:
Trust Shares...................................... $ 1.00 N/A $ 12.35 $ 12.71
Investment Shares................................. $ 1.00 $1.00 $ 12.86 $ 13.21
Shares Outstanding:
Trust Shares...................................... 31,164,389 N/A 15,299,855 9,545,199
Investment Shares................................. 71,471,772 40,326,146 4,136,925 2,173,105
------------ ----------- ------------ ------------
Total Shares Outstanding:............................ 102,636,161 40,326,146 19,436,780 11,718,304
============ =========== ============ ============
Investments, at identified cost...................... $102,232,511 $40,319,810 $212,221,755 $128,774,926
============ =========== ============ ============
</TABLE>
* This Fund is not sold with separate class designations. However, this Fund
has both trust and retail shareholders.
** See 'What Shares Cost' in the Prospectus.
See Notes to Financial Statements.
24
<PAGE>
- ------------------------
THE SHAWMUT STATEMENTS OF OPERATIONS
FUNDS FOR THE YEAR ENDED OCTOBER 31, 1995
- ------------------------
<TABLE>
<CAPTION>
Connecticut Massachusetts Small
Municipal Municipal Growth and Income Capitalization
Money Market Money Market Equity Equity
Fund Fund Fund Fund
------------ ------------- ----------------- --------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income..................................... $4,027,508 $1,256,466 $ 1,085,427 $ 469,071
Dividend income..................................... ---- ----- 6,121,035 1,057,112
---------- ---------- ----------- -----------
Total income..................................... 4,027,508 1,256,466 7,206,462 1,526,183
---------- ---------- ----------- -----------
Expenses:
Investment advisory fee............................. 544,556 168,602 2,067,505 1,304,952
Directors'/Trustees' fees........................... 2,449 1,350 2,872 2,372
Administrative personnel
and services fee................................. 109,347 50,000 207,280 131,149
Custodian fees...................................... 21,791 12,000 41,361 26,112
Portfolio accounting fees........................... 49,258 39,823 72,325 83,853
Transfer and dividend disbursing
agent fees and expenses.......................... 63,466 37,012 121,118 118,155
Share registration costs............................ 17,447 8,244 52,083 44,883
Auditing fees....................................... 19,656 16,547 17,349 17,177
Legal fees.......................................... 2,108 2,958 6,942 1,615
Printing and postage................................ 14,022 10,928 12,457 12,871
Insurance premiums.................................. 2,861 3,702 4,098 11,975
Distribution services fee........................... 377,953 ---- 166,932 111,535
Miscellaneous....................................... 6,190 6,534 21,031 16,453
---------- ---------- ----------- -----------
Total expenses................................... 1,231,104 357,700 2,793,353 1,883,102
---------- ---------- ----------- -----------
Deduct:
Waiver of investment advisory fee................ 177,977 108,318 365,382 304,915
Waiver of custodian fees......................... 21,791 12,000 41,361 26,112
Reimbursement of other operating expenses
by the Adviser................................ 35,932 46,320 ---- ----
Waiver of distribution services fee.............. 188,976 ---- 83,466 55,768
---------- ---------- ----------- -----------
Net expenses.................................. 806,428 191,062 2,303,144 1,496,307
---------- ---------- ----------- -----------
Net investment income.................................. 3,221,080 1,065,404 4,903,318 29,876
---------- ---------- ----------- -----------
Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) on investments................ ---- ----- 11,589,259 10,568,906
Net change in unrealized appreciation
(depreciation) of investments....................... ---- ----- 19,333,241 15,032,081
---------- ---------- ----------- -----------
Net realized and unrealized gain
(loss) on investments............................... ---- ----- 30,922,500 25,600,987
---------- ---------- ----------- -----------
Change in net assets resulting
from operations..................................... $3,221,080 $1,065,404 $35,825,818 $25,630,863
========== ========== =========== ===========
</TABLE>
See Notes to Financial Statements.
25
<PAGE>
- ------------------------
THE SHAWMUT
FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------
<TABLE>
<CAPTION>
Connecticut Municipal Massachusetts Municipal
Money Market Fund Money Market Fund*
------------------------------ ------------------------------
Years ended October 31, Years ended October 31,
------------------------------ ------------------------------
1995 1994 1995 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Net investment income.................................... $ 3,221,080 $ 1,261,128 $ 1,065,404 $ 538,459
Net realized gain (loss) on investments.................. ------ ------ ----- ----
Net change in unrealized appreciation
(depreciation) of investments......................... ------ ------ ----- ----
------------- ------------- ------------ ------------
Net change in assets resulting from operations........... 3,221,080 1,261,128 1,065,404 538,459
------------- ------------- ------------ ------------
Distributions to Shareholders:
Net investment income:
Trust Shares........................................ (1,044,630) (392,561) ----- -----
Investment Shares................................... (2,176,450) (868,567) (1,065,404) (538,459)
Net realized gain on investments:
Trust Shares........................................ ------ ------ ----- -----
Investment Shares................................... ------ ------ ----- -----
------------- ------------- ------------ ------------
Change in net assets from
distributions to shareholders................... (3,221,080) (1,261,128) (1,065,404) (538,459)
------------- ------------- ------------ ------------
Share Transactions:
Proceeds from sale of shares............................. 155,501,462 214,871,629 81,833,286 74,726,599
Net asset value of shares issued to
shareholders in payment of distributions declared..... 2,171,244 846,013 562,598 282,954
Cost of shares redeemed.................................. (170,053,349) (107,282,901) (73,586,166) (44,730,008)
------------- ------------- ------------ ------------
Change in net assets resulting from
share transactions................................. (12,380,643) 108,434,741 8,809,718 30,279,545
------------- ------------- ------------ ------------
Change in net assets............................ (12,380,643) 108,434,741 8,809,718 30,279,545
------------- ------------- ------------ ------------
Net Assets:
Beginning of period...................................... 115,016,804 6,582,063 31,516,428 1,236,883
------------- ------------- ------------ ------------
End of period............................................ $ 102,636,161 $ 115,016,804 $ 40,326,146 $ 31,516,428
============= ============= ============ ============
Undistributed net investment
income included in net assets at end of period........ $ ---- $ ---- $ ---- $ ----
============= ============= ============ ============
</TABLE>
- --------------------------------------------------------------------------------
*This Fund is not sold with separate class designation. However, this Fund has
both trust and retail shareholders.
See Notes to Financial Statements.
26
<PAGE>
- ------------------------
THE SHAWMUT
FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------
<TABLE>
<CAPTION>
Growth and Income Small Capitalization
Equity Fund Equity Fund
------------------------------ ------------------------------
Years ended October 31, Years ended October 31,
------------------------------ ------------------------------
1995 1994 1995 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net investment income (loss)............................. $ 4,903,318 $ 3,917,543 $ 29,876 $ 128,718
Net realized gain (loss) on investment................... 11,589,259 7,261,816 10,568,906 6,221,566
Net change in unrealized appreciation
(depreciation) of investments.......................... 19,333,241 4,439,073 15,032,081 (4,130,546)
------------ ------------ ------------ ------------
Net change in assets resulting from operations......... 35,825,818 15,618,432 25,630,863 2,219,738
------------ ------------ ------------ ------------
Distributions to Shareholders:
Net investment income:
Trust Shares........................................ (4,129,453) (3,281,259) (65,165) (119,464)
Investment Shares................................... (699,536) (357,326) ----- (33)
Net realized gain on investments:
Trust Shares........................................ (6,867,309) (3,938,454) (5,187,651) (2,899,114)
Investment Shares................................... (1,009,651) (459,878) (1,030,219) (466,043)
------------ ------------ ------------ ------------
Change in net assets from
distributions to shareholders................... (12,705,949) (8,036,917) (6,283,035) (3,484,654)
------------ ------------ ------------ ------------
Share Transactions:
Proceeds from sales of shares*........................... 73,256,800 45,022,703 23,740,101 22,848,417
Net assets value of shares issued to
shareholders in payment of distributions declared..... 8,554,344 4,732,196 6,212,938 3,361,444
Cost of shares redeemed.................................. (43,912,950) (41,634,892) (22,059,665) (18,672,111)
------------ ------------ ------------ ------------
Change in net assets resulting from
share transactions................................. 37,898,194 8,120,007 7,893,374 7,537,750
------------ ------------ ------------ ------------
Change in net assets............................ 61,018,063 15,701,522 27,241,202 6,272,834
------------ ------------ ------------ ------------
Net Assets:
Beginning of period...................................... 179,071,132 163,369,610 121,668,818 115,395,984
------------ ------------ ------------ ------------
End of period............................................ $240,089,195 $179,071,132 $148,910,020 $121,668,818
============ ============ ============ ============
Undistributed (distributions in excess of) net investment
income included in net assets at end of period........... $ 382,474 $ 304,092 $ (18,431) $ 13,090
============ ============ ============ ============
</TABLE>
- --------------------------------------------------------------------------------
* Includes 337,796 shares (valued at $4,095,890) issued in connection with the
acquisition of Shawmut Quantitative Equity Fund by Shawmut Growth & Income
Equity Fund.
See Notes to Financial Statements.
27
<PAGE>
- ------------------------
CONNECTICUT MUNICIPAL MONEY MARKET FUND
THE SHAWMUT FINANCIAL HIGHLIGHTS
FUNDS FOR A SHARE OUTSTANDING THROUGH EACH PERIOD.
- ------------------------
<TABLE>
<CAPTION>
Years ended October 31,
----------------------------------------------------------------
1995 1994 (2) 1993 (1)
----------------------- ----------------------- ----------
Investment Trust Investment Trust Investment
---------- --------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- -------- -------
Income from Investment Operations
Net investment income (A)............................. 0.03 0.03 0.02 0.02 --
Net realized gain (loss) on investments............... -- -- -- -- --
------- ------- ------- -------- -------
Total from Investment Operations: (A)........ 0.03 0.03 0.02 0.02 --
------- ------- ------- -------- -------
Less Dividends:
Dividends from
net investment income (A).......................... (0.03) (0.03) (0.02) (0.02) --
Dividends from
net realized capital gains......................... -- -- -- -- --
------- ------- ------- -------- -------
Total Dividends: (A)......................... (0.03) (0.03) (0.02) (0.02) --
------- ------- ------- -------- -------
Net increase (decrease) net asset value.................. -- -- -- -- --
------- ------- ------- -------- -------
Net Asset Value, end of period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======== =======
Total Return (B)......................................... 2.94% 3.19% 1.83% 2.08%** 0.14%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's)........................ $71,472 $31,164 $80,663 $ 34,354 $ 6,582
Ratios to average net assets:
Net investment income
including reimbursement/waiver..................... 2.88% 3.14% 1.99% 2.24%* 2.12%*
Operating expenses
including reimbursement/waiver..................... 0.82% 0.57% 0.78% 0.53%* 0.36%*
Operating expenses
excluding reimbursement/waiver..................... 1.29% 0.79% 1.50% 1.00%* 5.82%*
</TABLE>
- --------------------------------------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on October 4, 1993.
(2) The Fund began offering Trust Shares on December 16, 1993.
(A) Represents less than $0.01 per Investment Share for year 1993.
(B) Calculation does not include sales charge for the Investment Shares.
See Notes to Financial Statements.
28
<PAGE>
- ------------------------
MASSACHUSSETS MUNICIPAL MONEY MARKET FUND
THE SHAWMUT FINANCIAL HIGHLIGHTS
FUNDS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------
<TABLE>
<CAPTION>
Years ended October 31,
---------------------------------------
1995 1994 1993 (1)
------- ------- ---------
<S> <C> <C> <C>
Net Asset Value, beginning of period...................... $ 1.00 $ 1.00 $ 1.00
------- ------- -------
Income from Investment Operations
Net investment income (A).............................. 0.03 0.02 --
Net realized gain (loss) on investments................ -- -- --
------- ------- -------
Total from Investment Operations: (A)............ 0.03 0.02 --
------- ------- -------
Less Dividends:
Dividends from net investment income (A)............... (0.03) (0.02) --
Dividends from net realized capital gains.............. -- -- --
------- ------- -------
Total Dividends: (A)............................. (0.03) (0.02) --
------- ------- -------
Net increase (decrease) net asset value................... -- -- --
------- ------- -------
Net Asset Value, end of period............................ $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Total Return.............................................. 3.21% 1.99% 0.12%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's)......................... $40,326 $31,516 $ 1,237
Ratios to average net assets:
Net investment income
including reimbursement/waiver...................... 3.16% 2.00% 2.75%*
Operating expenses including
reimbursement/waiver.................................. 0.57% 0.53% 0.11%*
Operating expenses excluding
reimbursement/waiver.................................. 1.06% 1.21% 35.42%*
</TABLE>
- --------------------------------------------------------------------------------
* Annualized
** Not Annualized
(1) The fund commenced operations on October 5, 1993.
(A) Represents less than $0.01 per share for year 1993.
Note: Massachusetts Municipal Money Market Fund sells its shares without class
designation.
See Notes to Financial Statements.
29
<PAGE>
- ------------------------
GROWTH AND INCOME EQUITY FUNDS
THE SHAWMUT FINANCIAL HIGHLIGHTS
FUNDS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
- ------------------------
<TABLE>
<CAPTION>
Years ended October 31,
----------------------------------------------------------------------------
1995 1994 1993 (1)(2)
---------------------- ---------------------- ----------------------
Investment Trust Investment Trust Investment Trust
---------- --------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period........... $ 11.15 $ 11.15 $ 10.69 $ 10.69 $ 10.23 $ 10.00
------- -------- ------- -------- -------- --------
Income from Investment Operations
Net investment income (A).................... 0.24 0.28 0.22 0.25 0.15 0.18
Net realized gain (loss) on investments...... 1.70 1.69 0.72 0.72 0.48 0.69
------- -------- ------- -------- -------- --------
Total from Investment Operations:......... 1.94 1.97 0.94 0.97 0.63 0.87
------- -------- ------- -------- -------- --------
Less Dividends:
Dividends from
net investment income..................... (0.25) (0.28) (0.20) (0.23) (0.17) (0.18)
Dividends from
net realized capital gains................ (0.49) (0.49) (0.28) (0.28) -- --
------- -------- ------- -------- -------- --------
Total Dividends:....................... (0.74) (0.77) (0.48) (0.51) (0.17) (0.18)
------- -------- ------- -------- -------- --------
Net increase (decrease) net asset value........ 1.20 1.20 0.46 0.46 0.46 0.69
------- -------- ------- -------- -------- --------
Net Asset Value, end of period................. $ 12.35 $ 12.35 $ 11.15 $ 11.15 $ 10.69 $ 10.69
======= ======== ======= ======== ======== ========
Total Return (B)............................... 18.52% 18.80% 9.12% 9.45% 6.20%** 8.80%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's).............. $51,078 $189,011 $22,244 $156,827 $ 16,280 $147,090
Ratios to average net assets:
Net investment income
including reimbursement/waiver............ 2.10% 2.42% 2.06% 2.31% 1.77%* 2.11%*
Operating expenses
including reimbursement/waiver............ 1.32% 1.07% 1.29% 1.04% 1.25%* 0.98%*
Operating expenses
excluding reimbursement/waiver............ 1.77% 1.27% 1.74% 1.24% 1.78%* 1.25%*
Portfolio Turnover............................. 51% 51% 73% 73% 38%** 38%**
</TABLE>
- --------------------------------------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 14, 1992.
(2) The Fund began offering Investment Shares on February 12, 1993.
(A) Net investment income per share does not reflect tax reclassifications
arising in the current period.
(B) Calculation does not include sales charge for the Investment Shares.
See Notes to Financial Statements.
30
<PAGE>
- ------------------------
SMALL CAPITALIZATION EQUITY FUND
THE SHAWMUT FINANCIAL HIGHLIGHTS
FUNDS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
- ------------------------
<TABLE>
<CAPTION>
Years ended October 31,
----------------------------------------------------------------------------
1995 1994 1993 (1)(2)
---------------------- ---------------------- ----------------------
Investment Trust Investment Trust Investment Trust
---------- --------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period........... $ 11.06 $ 11.07 $ 11.21 $ 11.21 $ 10.52 $ 10.00
------- -------- ------- -------- -------- --------
Income from Investment Operations
Net investment income (A & C)................ (0.02) 0.01 (0.01) 0.02 (0.01) --
Net realized gain (loss) on investments...... 2.21 2.21 0.18 0.17 0.70 1.21
------- -------- ------- -------- -------- --------
Total from Investment Operations:......... 2.19 2.22 0.17 0.19 0.69 1.21
------- -------- ------- -------- -------- --------
Less Dividends:
Dividends from
net investment income (A)................. -- (0.01) -- (0.01) -- --
Dividends from
net realized capital gains................ (0.57) (0.57) (0.32) (0.32) -- --
------- -------- ------- -------- -------- --------
Total Dividends: (A)................... (0.57) (0.58) (0.32) (0.33) -- --
------- -------- ------- -------- -------- --------
Net increase (decrease) net asset value........ 1.62 1.64 (0.15) (0.14) 0.69 1.21
------- -------- ------- -------- -------- --------
Net Asset Value, end of period................. $ 12.68 $ 12.71 $ 11.06 $ 11.07 $ 11.21 $ 11.21
======= ======== ======= ======== ======== ========
Total Return (B)............................... 21.27% 21.52% 1.64% 1.86% 6.56%** 12.12%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's).............. $27,546 $121,364 $19,764 $101,905 $ 15,014 $100,382
Ratios to average net assets:
Net investment income
including reimbursement/waiver............ (0.19)% 0.07% (0.10)% 0.15% (0.19)%* 0.02%*
Operating expenses
including reimbursement/waiver............ 1.35% 1.10% 1.31% 1.06% 1.33% * 1.01%*
Operating expenses
excluding reimbursement/waiver............ 1.85% 1.35% 1.84% 1.34% 1.87%* 1.29%*
Portfolio Turnover Rate........................ 32% 32% 29% 29% 29%** 29%**
</TABLE>
- --------------------------------------------------------------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 14, 1992.
(2) The Fund began offering Investment Shares on February 12, 1993.
(A) Represents less than $0.01 per Trust Share for year 1993.
(B) Calculation does not include sales charge for the Investment Shares.
(C) Net investment income per share does not reflect tax reclassifications
arising in the current period.
See Notes to Financial Statements.
31
<PAGE>
- ------------------------
THE SHAWMUT
FUNDS NOTES TO FINANCIAL STATEMENTS
- ------------------------
(1) Organization
The Shawmut Funds (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "Act"), as an open-end management investment company.
The Trust consists of seven diversified and four non-diversified portfolios
(individually referred to as the "Fund", or collectively as the "Funds") at
October 31, 1995, including:
Shawmut Connecticut Municipal Money Market Fund
("Connecticut Municipal Money Market Fund")*
Shawmut Massachusetts Municipal Money Market
Fund ("Massachusetts Municipal Money Market Fund")*
Shawmut Growth and Income Equity Fund
("Growth and Income Equity Fund")
Shawmut Small Capitalization Equity Fund
("Small Capitalization Equity Fund")
- ------------------------------------------------------------
*non-diversified portfolio
The financial statements of the remaining portfolios are presented in a separate
report.
All portfolios, except Massachusetts Municipal Money Market Fund, provide two
classes of shares: Investment Shares and Trust Shares. Shares of Massachusetts
Municipal Money Market Fund are offered without class designation. The assets of
each Fund are segregated and a shareholder's interest is limited to the
portfolio in which shares are held.
(2) Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by each Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
Investment Valuations: Listed equity securities, corporate bonds, (other fixed
income and asset backed securities) are valued at the last sale price reported
on national securities exchanges. Unlisted securities are generally valued using
dealer supplied valuations. U.S. Government securities are generally valued at
the bid prices furnished by an independent pricing service. Securities for which
market quotations are not readily available are valued at their fair value as
determined in good faith under consistently applied procedures under the general
supervision of the Board of Trustees. Short-term securities with remaining
maturities of sixty days or less may be valued at amortized cost, which
approximates fair market value. Investments in other regulated investment
companies are valued at net asset value. The money market funds' use of the
amortized cost method to value their portfolio securities in accordance with
Rule 2a-7 under the Act.
Repurchase Agreements: It is the policy of the Funds to require the custodian
bank to take possession, to have legally segregated in the Federal Reserve Book
Entry System, or to have segregated within the custodian bank's vault, all
securities held as collateral under repurchase agreement transactions.
Additionally, procedures have been established by the Funds to monitor, on a
daily basis, the market value of each repurchase agreement's collateral to
ensure that the value of collateral at least equals the repurchase price to be
paid under the repurchase agreement transaction.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Funds' adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Funds could receive less
than the repurchase price on the sale of collateral securities.
32
<PAGE>
- ------------------------
THE SHAWMUT
FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------------------
Investment Income, Expenses and Distributions: Dividend income and distributions
to shareholders are recorded on the ex-dividend date. Dividends of Connecticut
Municipal Money Market Fund and Massachusetts Municipal Money Market Fund are
declared daily and paid monthly. Interest income and expenses are accrued daily.
Bond premium and discount, if applicable, are amortized as earned.
In addition, expenses of a Fund not directly attributable to the operations of a
particular class of shares of a Fund are allocated to the separate class based
upon the relative net assets of each class. Operating expenses directly
attributable to a class of shares of a Fund are charged to the operations of
that class.
Federal Taxes: It is the Funds' policy to comply with the provisions of the
Internal Revenue Code (the "Code") applicable to regulated investment companies
and to distribute to shareholders each year substantially all of their income.
Accordingly, no provisions for federal tax are necessary.
When-Issued and Delayed Delivery Transactions: The Funds may engage in when-
issued or delayed delivery transactions. The Funds record when-issued securities
on the trade date and maintain security positions such that sufficient liquid
assets will be available to make payment for the securities purchased.
Securities purchased on a when-issued or delayed delivery basis are marked to
market daily and begin earning interest on the settlement date.
Deferred Expenses: The costs incurred by each Fund with respect to registration
of its shares in its first fiscal year, excluding the initial expense of
registering its shares, have been deferred and are being amortized using the
straight-line method not to exceed a period of five years from each Fund's
commencement date.
Reclassification of Capital Accounts: During the fiscal year ended October 31,
1995, permanent book and tax differences, which resulted from non-deductible
organizational expenses, have been reclassified from undistributed net
investment income to paid-in capital in accordance with SOP 93-2. Undistributed
net investment income has been adjusted to reflect the tax nature of
distributions. Net investment income, net realized gain (loss) on investments
and net assets were not affected by these changes. These reclassifications have
been made in accordance with SOP 93-2 as follows:
<TABLE>
<CAPTION>
Organizational
Expenses
--------------
<S> <C>
Growth
and Income
Equity Fund........................... $ 4,053
Small
Capitalization
Equity Fund........................... 3,768
</TABLE>
Other: Investment transactions are accounted for on the trade date.
33
<PAGE>
- ------------------------
THE SHAWMUT
FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------------------
(3) Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value) for each
class of shares. Transactions in shares were as follows:
<TABLE>
<CAPTION>
Connecticut Municipal Massachusetts Municipal
Money Market Fund Money Market Fund
------------------------------------- ------------------------------------
Year ended Year ended Year ended Year ended
October 31, 1995 October 31, 1994 October 31, 1995 October 31, 1994
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Trust Shares ($1.00 per share)
Shares sold....................................... 64,377,465 73,243,617 ----- -----
Shares issued to shareholders in
payment of distributions declared............. ----- 18 ----- -----
Shares redeemed................................... (67,567,082) (38,889,769) ----- -----
------------- ------------ ------------ ------------
(3,189,617) 34,353,866 ----- -----
------------- ------------ ------------ ------------
Investment Shares ($1.00 per share)
Shares sold....................................... 91,123,997 141,628,012 81,833,286 74,726,599
Shares issued to shareholders in
payment of distributions declared............. 2,171,244 845,995 562,598 282,954
Shares redeemed................................... (102,486,267) (68,393,132) (73,586,166) (44,730,008)
------------- ------------ ------------ ------------
(9,191,026) 74,080,875 8,809,718 30,279,545
------------- ------------ ------------ ------------
Net change resulting from
share transactions............................. (12,380,643) 108,434,741 8,809,718 30,279,545
============= ============ ============ ============
</TABLE>
For the Year ended October 31, 1995:
<TABLE>
<CAPTION>
Growth and Income Small Capitalization
Equity Fund Equity Fund
------------------------------------- ------------------------------------
Shares Amount Shares Amount
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Trust Shares
Shares sold*...................................... 3,945,263 $ 45,663,174 1,484,558 $ 16,891,602
Shares issued to shareholders in
payment of distributions declared............. 667,376 6,867,312 522,421 5,187,643
Shares redeemed................................... (3,375,055) (39,605,441) (1,668,792) (18,667,574)
------------- ------------ ------------ ------------
1,237,584 12,925,045 338,187 3,411,671
------------- ------------ ------------ ------------
Investment Shares
Shares sold....................................... 2,358,286 27,593,626 582,289 6,848,499
Shares issued to shareholders in
payment of distributions declared............. 156,717 1,687,032 103,356 1,025,295
Shares redeemed................................... (372,665) (4,307,509) (300,307) (3,392,091)
------------- ------------ ------------ ------------
2,142,338 24,973,149 385,338 4,481,703
------------- ------------ ------------ ------------
Net change resulting from
share transactions............................ 3,379,922 $ 37,898,194 723,525 $ 7,893,374
============= ============ ============ ============
</TABLE>
- --------------------------------------------------------------------------------
* Includes 337,796 shares issued in connection with the acquisition of
Shawmut Quantitative Equity Fund by Shawmut Growth and Income Equity Fund.
(See Note 8).
34
<PAGE>
- ------------------------
THE SHAWMUT
FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------------------
For the Year Ended October 31, 1994:
<TABLE>
<CAPTION>
Growth and Income Small Capitalization
Equity Fund Equity Fund
------------------------------------- ------------------------------------
Shares Amount Shares Amount
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Trust Shares
Shares sold....................................... 3,516,115 $ 37,606,058 1,467,595 $ 15,906,772
Shares issued to shareholders in
payment of distributions declared............. 377,823 3,936,919 273,939 2,898,278
Shares redeemed................................... (3,589,377) (38,467,504) (1,487,415) (16,147,839)
------------- ------------ ------------ ------------
304,561 3,075,473 254,119 2,657,211
------------- ------------ ------------ ------------
Investment Shares
Shares sold....................................... 692,705 7,416,645 638,429 6,941,644
Shares issued to shareholders in
payment of distributions declared............. 75,351 795,277 43,778 463,167
Shares redeemed................................... (296,338) (3,167,388) (233,644) (2,524,272)
------------- ------------ ------------ ------------
471,718 5,044,534 448,563 4,880,539
------------- ------------ ------------ ------------
Net change resulting from
share transactions............................ 776,279 $ 8,120,007 702,682 $ 7,537,750
============= ============ ============ ============
</TABLE>
(4) Investment Advisory Fee and Other Transactions with Affiliates
Investment Advisory Fee: Shawmut Bank, N.A., the Trust's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee based
upon a percentage of each Fund's average daily net assets (see below). The
Adviser may voluntarily choose to waive a portion of its fee and reimburse
certain operating expenses of the Funds. The Adviser can modify or terminate
this voluntary waiver and reimbursement at any time at its sole discretion.
<TABLE>
<CAPTION>
Annual
Fund Rate*
- ------------------- ------
<S> <C>
Connecticut Municipal Money Market Fund.......................... 0.50%
Massachusetts Municipal Money Market Fund........................ 0.50%
Growth and Income Equity Fund.................................... 1.00%
Small Capitalization Equity Fund................................. 1.00%
</TABLE>
- --------------------------------------------------------------------------------
*As a percentage of daily net assets.
Administrative Fee: Federated Administrative Services ("FAS") provides the Trust
with certain administrative personnel and services. The FAS fee is based on the
level of average aggregate net assets of the Trust for the period. FAS may
voluntarily choose to waive a portion of its fee.
Distribution Plan: The Funds have adopted a Distribution Plan (the "Plan")
pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Funds
will compensate Federated Securities Corp. ("FSC"), the principal distributor,
from the net assets of the Funds, to finance activities intended to result in
the sale of the Funds' Investment Shares. The Plan provides that the Funds may
incur distribution expenses up to .50 of 1% of the average daily net assets of
the Investment Shares, if applicable, including the shares of Massachusetts
Municipal Money Market Fund. The fee is paid monthly to compensate FSC.
35
<PAGE>
- ------------------------
THE SHAWMUT
FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------------------
Transfer and Dividend Disbursing Agent, Portfolio Accounting, and Custody Fees:
Federated Services Company ("FServ") serves as transfer and dividend disbursing
agent for the Funds. The FServ fee is based on the size, type, and number of
accounts and transactions made by shareholders.
FServ also maintains the Funds' accounting records for which it receives a fee.
The fee is based on the level of each Fund's average net assets for the period
plus out-of-pocket expenses.
Shawmut Bank, N.A., is the Funds' custodian. The fee is based on the level of
each Funds' average net assets for the period plus out-of-pocket expenses.
Organizational Expenses: Organizational expenses were initially borne by FAS.
The Funds have agreed to reimburse FAS for the organizational expenses during
the five year period following December 1, 1992 (date the Trust became
effective). For the year ended October 31, 1995, the Funds paid FAS as follows:
<TABLE>
<CAPTION>
Initial Organizational
Organizational Expenses
Fund Expenses Reimbursed
- ---------------- -------------- --------------
<S> <C> <C>
Connecticut Municipal
Money Market Fund...................... $ 37,463 $ 5,278
Massachusetts Municipal
Money Market Fund...................... 20,617 3,276
Growth and Income
Equity Fund............................ 39,753 7,730
Small Capitalization
Equity Fund............................ 37,360 7,264
</TABLE>
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
Interfund Transactions: During the year ended October 31, 1995, the Connecticut
Municipal Money Market Fund and the Massachusetts Municipal Money Market Fund
engaged in purchase and sale transactions with funds that have a common
investment adviser (or affiliated investment advisers), common Directors/
Trustees, and/or common Officers. These transactions were made at current market
value pursuant to Rule 17a-7 under the Act amounting to $46,005,000 and
$41,355,000, respectively, for Connecticut Municipal Money Market Fund, and
$33,757,140 and $30,999,969, respectively, for Massachusetts Municipal Money
Market Fund.
(5) Investment Transactions
Purchases and sales of investments, excluding short-term securities, for the
year ended October 31, 1995, were as follows:
<TABLE>
<CAPTION>
Purchases Sales
------------- ------------
<S> <C> <C>
Growth and Income
Equity Fund................................. $ 116,031,535 $ 95,262,304
Small Capitalization
Equity Fund................................. 39,073,185 47,195,441
</TABLE>
(6) Concentration of Credit Risk
Since the Connecticut Municipal Money Market Fund and the Massachusetts
Municipal Money Market Fund invest a substantial portion of their assets in
issuers located in one state, they will be more susceptible to factors adversely
affecting issuers of those states than would be a comparable general tax-exempt
mutual fund. In order to reduce the credit risk associated with such factors, at
October 31, 1995, 44.41% and 45.74% of the securities in the portfolio of
investments of Connecticut Municipal Money Market Fund and the Massachusetts
Municipal Money Market Fund, respectively, were backed by letters of credit or
bond insurance of various financial institutions and financial guaranty
assurance agencies. The value of investments insured by or supported (backed) by
a letter of credit for any one institution or agency did not exceed 15.16%
and 16.87%, respectively, for the Connecticut Municipal Money Market Fund and
the Massachusetts Municipal Money Market Fund.
36
<PAGE>
- ------------------------
THE SHAWMUT
FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------------------
(7) Line of Credit
Shawmut Bank, N.A. has obtained lines of credit ("LOCs") on behalf of the Growth
and Income Equity and the Small Capitalization Equity Fund in the amount of
$7,000,000 for each Fund. The LOCs, issued by the Bank of America, Illinois,
are available to help the Funds meet short term liquidity needs. Drawings from
the LOCs are subject to interest charges based on prevailing market rates as
defined in the agreement. There were no borrowings from the LOCs during the
fiscal year ended October 31, 1995.
(8) Reorganization
On August 11, 1995, Shawmut Quantitative Equity Fund merged into Shawmut Growth
and Income Equity Fund pursuant to an agreement and plan of reorganization
whereby Growth and Income Equity Fund acquired the net assets of Quantitative
Equity Fund (including $378,932 of unrealized appreciation) in exchange for
shares of Growth and Income Equity Fund. The aggregate net assets of Growth and
Income Equity Fund and Quantitative Equity Fund immediately before acquisition
were $229,716,360 and $4,095,890, respectively. Shares in the amount of 337,796
(valued at 4,095,890) were distributed to Quantitative Equity shareholders on a
pro rata basis through a non-taxable exchange. Quantitative Equity Fund was
liquidated and dissolved at the close of business on August 11, 1995.
(9) Reorganization Agreement
An Agreement and Plan of Reorganization was approved by both the Shawmut and
Galaxy Funds' Boards of Trustees and shareholders of The Shawmut Funds. Pursuant
to this agreement, The Shawmut Funds will be merged into The Galaxy Funds.
All of the net assets of The Shawmut Funds will be acquired by The Galaxy Funds
in exchange for shares of The Galaxy Funds. These shares will be distributed to
The Shawmut Fund shareholders on a pro rata basis through a non-taxable
exchange. The effective date of this merger is scheduled for December 4, 1995.
However, this is contingent upon the effective date of a merger between Fleet
Bank and Shawmut Bank.
(10) Subsequent Event
The merger described in Note 9 occurred on December 4, 1995.
37
<PAGE>
- ------------------------
THE SHAWMUT
FUNDS
- ------------------------
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 (other than credit ratings), and the
related statements of operations and of changes in net assets and 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 Growth and Income Equity Fund and Shawmut Small
Capitalization Equity Fund (portfolios of The Shawmut Funds, hereafter referred
to as the "Funds") at October 31, 1995, and the results of each of their
operations, the changes in each of their net assets and the financial highlights
for the periods indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
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 from 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, 1995, by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmation from brokers were not received, provide a reasonable basis
for the opinion expressed above.
In accordance with the agreement and plan of reorganization discussed in Note 9,
the funds will merge with the Galaxy Funds on December 4, 1995.
Price Waterhouse LLP
Boston, Massachusetts
November 27, 1995 (except for Note 10 which is as of December 4, 1995)
38
<PAGE>
- ------------------------
THE SHAWMUT
FUNDS
- ------------------------
Special Meeting of Shareholders (Unaudited):
A special meeting of the Trust's shareholders was held on October 30, 1995 to
consider the following proposal. The proposal voted upon and the votes cast on
the proposal are as follows:
A majority of the outstanding shares of each of the Shawmut Growth Equity
Fund, Prime Money Market Fund, Limited Term Income Fund, Fixed Income Fund,
Intermediate Government Income Fund, Connecticut Intermediate Municipal
Income Fund, Massachusetts Intermediate Municipal Income Fund, Growth and
Income Equity Fund, Connecticut Municipal Money Market Fund, Massachusetts
Municipal Money Market Fund and Small Capitalization Equity Fund
(collectively, the "Shawmut Funds") voted to approve (a) an Agreement and
Plan of Reorganization between the Trust and The Galaxy Fund ("Galaxy"),
providing for the transfer of substantially all of the assets and
liabilities of the Shawmut Funds to corresponding investment funds of
Galaxy (the "Galaxy Funds") in exchange for shares of the Galaxy Funds; (b)
the distribution of the Galaxy Funds' shares so received to shareholders of
the Shawmut Funds; and (c) the termination under state law of the Trust.
Shareholders of each of the Shawmut Funds voted on this proposal as follows:
<TABLE>
<CAPTION>
For Against Abstain
----------- ---------- ----------
<S> <C> <C> <C>
Growth Equity Fund............................... 1,103,318 71,603 15,841
Prime Money Market............................... 396,141,174 24,647,491 23,088,940
Limited Term Income.............................. 2,238,167 32,466 26,238
Fixed Income..................................... 4,610,322 95,338 86,052
Intermediate Government Income................... 3,605,593 40,119 95,688
Connecticut Intermediate Municipal Income........ 463,011 2,408 8,811
Massachusetts Intermediate Municipal Income...... 661,123 40,385 28,107
Growth and Income Equity......................... 10,056,174 118,762 111,651
Connecticut Municipal Money Market............... 58,957,667 2,295,595 1,338,147
Massachusetts Municipal Money Market............. 23,510,615 529,961 151,335
Small Capitalization Equity...................... 7,905,333 68,611 39,946
</TABLE>
The reorganization was completed on December 4, 1995.
39
<PAGE>
This page left blank intentionally.
<PAGE>
This report is submitted for the general information of shareholders of The
Shawmut Funds. It is not authorized for distribution to prospective investors
unless accompanied or preceded by an effective prospectus for the Fund, which
contains more information concerning the Fund's investment policies, as well as
fees and expenses and other pertinent information. Read the prospectus carefully
before you invest.
Shares of the Funds are not federally insured by the U.S. Government, the
Federal Deposit Insurance Corporation, the Federal Reserve Board or any other
agency. Investment return and principal value will vary as a result of market
conditions or other factors so that shares of the Funds, when redeemed, may be
worth more or less than their original cost. An investment in the Funds involves
investment risks, including the possible loss of principal. There can be no
guarantee that the money market funds will be able to maintain a net asset
value of $1.00.
[PRINTED ON RECYCLED PAPER LOGO APPEARS HERE]
This report was printed on recycled paper.
<PAGE>
- ------------------------ ----------------
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- ------------------------ ----------------
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