<PAGE>
[LOGO]
SEMI-ANNUAL
REPORT
TO SHAREHOLDERS
---------------------
NOVEMBER 30, 1995
---------------------
<PAGE>
- ---------------------------------
TABLE OF CONTENTS
Letter to Shareholders 1
Fund Objectives 2
Performance Highlights 3
Investment Adviser's Report 4-7
Financial Statements 8-66
[LOGO]
SOUND CHOICES. STRAIGHT TALK.
INVESTMENT MANAGEMENT STRENGTH.
THE 1784 FUNDS:
- - are not insured by the FDIC or any other governmental agency;
- - are not guaranteed by The First National Bank of Boston or any of its
affiliates;
- - are not deposits or other obligations of The First National Bank of Boston or
any of its affiliates;
- - involve investment risks, including possible loss of the principal amount
invested.
The First National Bank of Boston serves as investment adviser, custodian and
fund accountant for the 1784 Funds. The 1784 Funds are distributed by SEI
Financial Services Company, a party independent of The First National Bank of
Boston or any of its affiliates.
<PAGE>
1784 FUNDS
[PHOTOGRAPH OF ALLEN W. CROESSMANN, MANAGING DIRECTOR AND ROBERT NESHER,
PRESIDENT]
LETTER TO SHAREHOLDERS
WE ARE PLEASED TO PROVIDE YOU WITH THIS SEMI-ANNUAL REPORT ON THE 1784
FUNDS. DURING THE PAST SIX MONTHS, THE PERFORMANCE OF THE FUNDS, AS WELL AS
OVERALL MARKET PERFORMANCE, CONTINUED TO PLAY A SIGNIFICANT PART IN THE GROWTH
OF THE FUND FAMILY, WHICH NOW INCLUDES 13 FUNDS WITH TOTAL ASSETS OF $2.5
BILLION.
THIS REPORT PROVIDES AN OVERVIEW OF THE ECONOMY, A REVIEW OF TRENDS IN
THE FINANCIAL MARKETS AND A FINANCIAL STATEMENT FOR EACH 1784 FUND. BEFORE
YOU TURN TO THIS INFORMATION, HOWEVER, WE WOULD LIKE TO HIGHLIGHT THE
TWELVE-MONTH RETURNS AS OF NOVEMBER 30, 1995, FOR SEVERAL FUNDS:
- THE 1784 ASSET ALLOCATION FUND RECORDED A TOTAL RETURN OF 28.86%,
RANKING IT IN THE TOP 20% (25 OUT OF 137 FUNDS) OF ALL ASSET
ALLOCATION FUNDS FOR THE PERIOD, ACCORDING TO MORNINGSTAR, A LEADING
MUTUAL FUND RATING SERVICE. THE FUND HAS HAD AN AVERAGE ANNUAL TOTAL
RETURN OF 10.52% SINCE ITS JUNE 14, 1993, INCEPTION.*
- THE 1784 INCOME FUND HAD A RETURN OF 17.62%, PLACING IT IN
THE TOP 15% (29 OUT OF 194 FUNDS) OF MORNINGSTAR-RANKED CORPORATE,
HIGH-QUALITY BOND FUNDS FOR THE PERIOD. THE FUND HAS HAD AN AVERAGE
ANNUAL TOTAL RETURN OF 11.48% SINCE ITS JULY 1, 1994, INCEPTION.*
- THE 1784 TAX-FREE MONEY MARKET FUND HAD A TOTAL RETURN OF 3.73%, AND WAS
RANKED EIGHTH OUT OF 157 TAX-FREE GENERAL PURPOSE FUNDS, ACCORDING TO
IBC/DONOGHUE. THE FUND HAS HAD AN AVERAGE ANNUAL TOTAL RETURN OF 3.02%
SINCE ITS JUNE 14, 1993, INCEPTION.*
WHEN INVESTMENT MARKETS HAVE PERFORMED SO WELL, IT IS EASY TO BECOME
OVERCONFIDENT, MAKING IT PARTICULARLY IMPORTANT NOT TO LOSE FOCUS ON YOUR
PERSONAL INVESTMENT STRATEGY. WE SUGGEST THAT YOU REVIEW YOUR GOALS AND
INVESTMENT OBJECTIVES AT LEAST YEARLY--MORE OFTEN IF YOUR CIRCUMSTANCES
CHANGE. REMEMBER THAT CONSISTENCY AND PATIENCE THROUGH DECLINING AS WELL AS
RISING MARKETS IS THE BEST ROUTE FOR THE LONG-TERM INVESTOR.
AS YOU EVALUATE YOUR INVESTMENT APPROACH AND PORTFOLIO, PLEASE FEEL FREE TO
CONTACT YOUR INVESTMENT COUNSELOR WITH QUESTIONS. OR, FOR INFORMATION ON
YOUR CURRENT 1784 FUNDS INVESTMENTS, PLEASE CALL 1-800-252-1784.
THANK YOU FOR INVESTING IN THE 1784 FUNDS. WE ARE PROUD THAT YOU HAVE CHOSEN
THEM TO MEET YOUR FINANCIAL GOALS.
SINCERELY,
/s/ Robert Nesher /s/ Allen W. Croessmann
Robert Nesher Allen W. Croessmann
1784 Funds Managing Director, Investment Services
The First National Bank of Boston
* THE RETURNS INDICATED FOR THE PERIOD WOULD HAVE BEEN LOWER IF CERTAIN FEES
HAD NOT BEEN WAIVED BY THE INVESTMENT ADVISER.
1
<PAGE>
FUND OBJECTIVES
MONEY MARKET FUNDS
- -------------------------------------------------------------------------------
1784 U.S. TREASURY MONEY MARKET FUND To preserve principal value and maintain
a high degree of liquidity while providing current income.
1784 TAX-FREE MONEY MARKET FUND To preserve principal value and maintain a
high degree of liquidity while providing current income exempt from Federal
income taxes.
BOND FUNDS
- -------------------------------------------------------------------------------
1784 SHORT-TERM INCOME FUND To maximize current income. Preservation of
capital is a secondary objective.
1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND To provide current income
consistent with the preservation of capital.
1784 INCOME FUND To maximize current income. Preservation of capital is a
secondary objective.
1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND To provide current income, exempt
from Federal income taxes, consistent with the preservation of capital.
1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND To provide current income, exempt
from both Federal and Massachusetts state income taxes, consistent with the
preservation of capital.
1784 RHODE ISLAND TAX-EXEMPT INCOME FUND To provide current income, exempt
from both Federal and Rhode Island state income taxes. Preservation of
capital is a secondary objective.
1784 CONNECTICUT TAX-EXEMPT INCOME FUND To provide current income, exempt
from both Federal and Connecticut state income taxes. Preservation of
capital is a secondary objective.
STOCK FUNDS
- -------------------------------------------------------------------------------
1784 GROWTH AND INCOME FUND To provide long-term growth of capital with a
secondary objective of income.
1784 ASSET ALLOCATION FUND To achieve a favorable total rate of return
through current income and capital appreciation consistent with preservation
of capital, derived from investing in fixed income and equity securities.
1784 INTERNATIONAL EQUITY FUND To provide long-term growth of capital.
Dividend income, if any, is a consideration incidental to the Fund's
investment objective of increasing the long-term value of its shareholders'
investment.
TERMS YOU NEED TO KNOW
TOTAL RETURN is the change in value of an investment from the beginning to
the end of a period, assuming the reinvestment of all distributions. This is
based on a formula set by the Securities and Exchange Commission.
NET ASSET VALUE (NAV) is the market worth of one share of a mutual fund.
This figure is derived by taking a fund's total assets -- securities, cash
and any accrued earnings -- deducting liabilities, and dividing by the number
of shares outstanding.
YIELD is the percentage rate at which a fund's portfolio earns income, based
on a formula set by the Securities and Exchange Commission.
PERFORMANCE DATA REPRESENT PAST RESULTS AND ARE NO GUARANTEE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN
INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. YIELD FLUCTUATES. YIELD REFLECTS THE PORTFOLIO'S EARNING
POWER, NET OF FUND EXPENSES. MONEY MARKET FUNDS SEEK TO MAINTAIN A STABLE NET
ASSET VALUE OF $1.00 PER SHARE, BUT THERE IS NO ASSURANCE THAT THEY WILL BE
ABLE TO DO SO ON A CONTINUING BASIS. INVESTMENTS IN THE FUNDS ARE NEITHER
INSURED NORGUARANTEED BY THE U.S. GOVERNMENT.
2
<PAGE>
1784 FUNDS
PERFORMANCE HIGHLIGHTS OF THE FUNDS
FOR THE PERIOD JUNE 1, 1995 THROUGH NOVEMBER 30, 1995
<TABLE>
<CAPTION>
INCOME
TOTAL NET ASSETS TOTAL RETURN NAV SHARE PRICE YIELD DISTRIBUTIONS
---------------- ------------ --------------- ---------------- -------------
(IN MILLIONS) FOR 6 MONTH 11-30-95 HIGH LOW 30-DAY 7-DAY PER SHARE
PERIOD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
1784 U.S. Treasury Money Market $ 76.1 2.68% $ 1.00 $ 1.00 $ 1.00 N/A 5.28% $ .03
1784 Tax-Free Money Market 576.5 1.84 1.00 1.00 1.00 N/A 3.56 .02
BOND FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
1784 Short-Term Income $ 75.3 4.20% $10.20 $10.20 $10.02 5.72% N/A $ .31
1784 U.S. Government
Medium-Term Income 154.8 5.82 9.81 9.81 9.49 5.60 N/A .31
1784 Income 210.5 5.37 10.61 10.61 10.20 5.80 N/A .33
1784 Tax-Exempt
Medium-Term Income 191.1 4.69 10.36 10.36 9.99 4.57 N/A .25
1784 Massachusetts
Tax-Exempt Income 90.2 4.36 10.09 10.09 9.76 4.62 N/A .24
1784 Rhode Island
Tax-Exempt Income 34.5 4.55 10.32 10.32 9.96 4.97 N/A .26
1784 Connecticut
Tax-Exempt Income 70.1 4.66 10.48 10.48 10.11 4.79 N/A .26
STOCK FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
1784 Growth and Income $ 272.0 11.82% $13.53 $13.89 $12.16 N/A N/A $ .02
1784 Asset Allocation 12.1 11.65 12.10 12.10 10.93 N/A N/A .16
1784 International Equity 232.4 5.36 10.94 11.13 10.33 N/A N/A .03
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1784 FUNDS TOTAL RETURN FROM JUNE 1, 1995 THROUGH
(INCEPTION DATE) NOVEMBER 30, 1995
U.S. TREASURY MONEY MARKET 2.68%
(6-7-93)
TAX-FREE MONEY MARKET 1.84%
(6-14-93)
SHORT-TERM INCOME 4.20%
(7-1-94)
U.S. GOVERNMENT MEDIUM-TERM INCOME 5.82%
(6-7-93)
INCOME 5.37%
(7-1-94)
TAX-EXEMPT MEDIUM-TERM INCOME 4.69%
(6-14-93)
MASSACHUSETTS TAX-EXEMPT INCOME 4.36%
(6-14-93)
RHODE ISLAND TAX-EXEMPT INCOME 4.55%
(8-1-94)
CONNECTICUT TAX-EXEMPT INCOME 4.66%
(8-1-94)
GROWTH AND INCOME 11.82%
(6-7-93)
ASSET ALLOCATION 11.65%
(6-14-93)
INTERNATIONAL EQUITY 5.36%
(1-3-95) 0 3 6 9 12
3
<PAGE>
NOVEMBER 30, 1995
INVESTMENT ADVISER'S REPORT
Two words may provide the key to understanding both the economy and the
financial markets during the past six months: "soft landing." The Federal
Reserve Board managed to avoid a recession while slowing an economy that, 12
months ago, was growing at an unsustainable rate and generating clear
inflationary signals.
To temper the pace of growth, the Federal Reserve Board began raising
interest rates in February 1994, a process that culminated in February 1995. As
it became apparent that this strategy might be too effective and drive the
economy into a recession, the Federal Reserve lowered interest rates in July
1995, dropping the Federal Funds rate by .25% to 5.75%.
Most business cycle indicators show that the economy has slowed
substantially, despite third quarter economic growth of 4.2%. With the pace of
growth slowing, it is unclear how long the economy can avoid a recession -- and
the financial markets a significant correction. Very heavy consumer debt,
slowing employment growth and the maturity of this five-year recovery raise
questions about 1996. The Federal Reserve may well need to adjust rates downward
two or three more times in the next 12 months.
These adjustments are a delicate balancing act. There is still ample
evidence that inflation is subdued; however, the bond market has become
increasingly sensitive to signs of inflation. Ordinarily, we would expect
upward pressure on wages, particularly since the unemployment rate is just 5.5%.
In fact, wage increases and slower productivity improvement -- both of which we
forecast for 1996 -- push costs up late in an economic cycle. The result: either
costs rise (inflation) or profits decline. In short, economic and financial
market conditions could be less favorable in the coming year.
[PHOTO OF EDWARD G. RILEY, JR., CHIEF INVESTMENT OFFICER]
STOCK MARKET REVIEW
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
During the past six months, the stock market has been supported by the
prevailing "best-of-all-worlds" scenario: low inflation, strong profits, an
easing of interest rates, and high availability of funds resulting from the
continued influx of individual-investor dollars into equity mutual funds. The
latter is the most powerful factor affecting stock market performance in 1995.
Since the beginning of 1995, investors have poured more than $110 billion into
stock funds -- and thereby, the stock market. The result: a 35.37% rise in the
Dow Jones Industrial Average since the beginning of the year, and 15.03% since
May 31 -- with the average rising above the 5000 level in November.
Stocks were largely responsible for the excellent performance of the 1784
Asset Allocation Fund, which posted a one-year total return of 28.86% as of
November 30, 1995, placing it in the top 20% (25 out of 137 funds) of asset
allocation funds ranked by Morningstar; average annual total return has been
10.52% since the Fund's June 14, 1993, inception.
4
<PAGE>
1784 FUNDS
[GRAPH]
At the end of the period, the Fund committed an average of 54% of its assets
to common stocks, with 39% allocated to bonds and 7% to cash.
Looking ahead, it is highly unlikely that the performance of the past six
months will be duplicated in the next six. Even without a recession, slower
economic growth next year will affect all companies, and particularly cyclical
companies, putting significant downward pressure on earnings, one of the
mainstays of the current bull market. Autos, retailing and other cyclical
industries have already slipped from their record peaks. This downward trend is
likely to be compounded by rising labor costs, moderating revenues and less
favorable currency trends.
On a more positive note, however, the continued focus on expense control,
productivity enhancement and reengineering should sustain the long-term upward
trend reflected in "higher lows" as well as "higher highs." Demographics
continue to support a strong case for stock investing, as Baby Boomers focus on
saving and investing rather than consumption and as 401(k) plan investors
continue to move assets into mutual funds.
BOND MARKET REVIEW
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Bond market investors also benefited from the cooling economy and
moderating fears of inflation. The 30-year Treasury Bond held relatively
steady, yielding between 6.30% and 7.25% since the Federal Reserve last
lowered interest rates in July 1995 -- allowing investors to focus on their
income objectives with less worry about erosion of principal.
Among the strongest of the 1784 Funds' performers was the 1784 Income Fund,
which had a one-year return of 17.62% through November 30, placing it in the top
15% (29 out of 194 funds) of Morningstar-ranked corporate, high-quality bond
funds for the period. The Fund has had an average annual total return of 11.48%
since its July 1, 1994, inception.
Investors could enjoy some capital appreciation in addition to their yields
in the coming months, as the dollar strengthens further against other
currencies, making U.S. fixed income securities increasingly attractive to
foreign investors. Moreover, a weakening
(CONTINUED) 5
<PAGE>
INVESTMENT ADVISER'S REPORT (CONTINUED)
[GRAPH]
economy could prompt the Federal Reserve to lower interest rates two or perhaps
three more times. A real uncertainty continues to be the possibility of a flat
tax, which would significantly impact both issuers and investors by removing the
tax exemption on income that makes municipal bonds so attractive.
Whether or not there is a rally in bond prices, it is important to remember
that fixed income investing is not fixed principal investing. The market value
of a bond is not guaranteed or insured; it will rise as interest rates decline,
and fall as interest rates rise -- a rule that became all too apparent to many
investors a year ago.
MONEY MARKET REVIEW
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Money market investors saw yields rise steadily through June 1995, until
the Federal Reserve changed course and lowered interest rates to stimulate the
increasingly sluggish economy. The relatively high level of short-term rates
(as compared to long-term rates) was particularly beneficial to investors in the
[GRAPH]
1784 Tax-Free Money Market Fund, which was among the top 10 performers in its
peer group. For the year ended November 30, the Fund had a total return of
3.73%, which placed it among the top ten performers within the 157 tax-free
general purpose funds tracked by IBC-Donoghue.
6
<PAGE>
1784 FUNDS
In general, all our money market funds also benefited from an approach that
emphasized investing in securities with a relatively longer maturity, which
typically offer higher yields. With the economy slowing even more, however,
additional Federal Reserve cuts in interest rates could make short-term
investing less productive in 1996.
/s/ Edward G. Riley, Jr.
Edward G. Riley, Jr.
Chief Investment Officer
The First National Bank of Boston
7
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
- --------------------------------------------
1784 U.S. TREASURY MONEY MARKET FUND
<TABLE>
<S> <C> <C>
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 37.6%
U.S. Treasury Bills
5.423%+, 12/07/95 $ 1,000 $ 999
5.603%+, 12/21/95 8,000 7,975
5.498%+, 01/04/96 6,000 5,970
6.254%+, 03/07/96 1,000 984
6.256%+, 04/04/96 3,500 3,429
6.110%+, 05/02/96 500 488
5.663%+, 05/30/96 4,000 3,890
5.717%+, 07/25/96 1,000 964
5.605%+, 08/22/96 1,000 961
5.602%+, 10/17/96 1,000 953
U.S. Treasury Notes
4.375%, 08/15/96 1,000 990
6.500%, 09/30/96 1,000 1,006
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $28,609) 28,609
----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 21.4%
Federal Farm Credit Bank Discount
Notes
5.690%+, 12/05/95 1,000 999
5.470%+, 12/07/95 1,000 999
Federal Home Loan Bank Discount
Notes
5.800%+, 12/01/95 5,000 5,000
5.690%+, 12/04/95 1,000 1,000
5.640%+, 12/06/95 7,000 6,995
Federal Home Loan Mortgage
Corporation Discount Note
5.680%+, 12/05/95 1,000 999
Student Loan Marketing
Association
5.830%, 12/05/95(A) 250 251
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $16,243) 16,243
----------
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
REPURCHASE AGREEMENTS -- 39.4%
Lehman Government Securities
5.820%, dated 11/30/95,
matures 12/01/95, repurchase
price $12,001,940
(collateralized by various
U.S. Treasury Bonds ranging
in par value
$53,100-$2,441,220,
8.125%-9.125%,
05/15/18-08/15/20; total
market value $12,240,000) $ 12,000 $ 12,000
Sanwa Securities
5.875%, dated 11/30/95,
matures 12/01/95, repurchase
price $18,002,938
(collateralized by various
U.S. Treasury Notes ranging
in par value
$4,620,980-$5,408,060,
5.625%-5.875%,
08/15/98-11/30/00, and
various U.S. Treasury Bills
ranging in par value
$2,884,420-$5,642,560,
09/19/96-11/14/96; total
market value of $18,360,000) 18,000 18,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $30,000) 30,000
----------
CASH EQUIVALENTS -- 2.0%
Dreyfus U.S. Treasury Cash
Management Money Market Fund 744 744
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
8
<PAGE>
1784 MONEY MARKET FUNDS
1784 U.S. TREASURY MONEY MARKET FUND 1784 TAX-FREE MONEY MARKET FUND
<TABLE>
<S> <C> <C>
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
Lehman Brothers Institutional
U.S. Treasury Instrument
Money Market Fund $ 744 $ 744
----------
TOTAL CASH EQUIVALENTS
(Cost $1,488) 1,488
----------
TOTAL INVESTMENTS -- 100.4%
(Cost $76,340) 76,340
----------
TOTAL OTHER ASSETS AND LIABILITIES,
NET -- (0.4)% (285 )
----------
NET ASSETS:
Capital Shares (unlimited authorization -- no
par value) based on 76,064,372 outstanding
shares of beneficial interest 76,064
Accumulated Net Realized Loss on Investments
(9 )
----------
TOTAL NET ASSETS -- 100.0% $ 76,055
----------
----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $1.00
----------
----------
</TABLE>
LEGEND
- ---------------------------------------------------------------
(A) VARIABLE RATE SECURITY -- THE RATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON NOVEMBER 30, 1995.
+ EFFECTIVE YIELD
- -------------------------------------------------
1784 TAX-FREE MONEY MARKET FUND
- -------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Variable Rate Notes 50%
General Obligation Bonds 12%
Cash Equivalents 10%
Tax-Exempt Commercial Paper 4%
Other Revenue Bonds 15%
Housing Bonds 1%
Alternative Minimum Tax Bonds 4%
Industrial Development & Pollution Control Bonds 2%
Education Bonds 1%
Transportation Bonds 1%
% of Total Portfolio Investments
</TABLE>
<TABLE>
<S> <C> <C>
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
MUNICIPAL BONDS -- 89.4%
ALABAMA -- 1.4%
Phenix City, Alabama
4.000%, 12/07/95(A)(B)(C)(D) $ 1,600 $ 1,600
Selma, Alabama, Industrial
Development Authority Revenue
Bond
4.000%, 07/15/96(A)(B)(C) 3,000 3,000
Selma, Alabama, Industrial
Development Revenue Bond,
International Paper Company
4.000%, 07/15/96(A)(B)(C) 3,300 3,300
----------
7,900
----------
ARIZONA -- 0.2%
Arizona State, Wastewater
Management Authority Revenue
Bond
5.400%, 07/01/96 1,005 1,014
----------
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
9
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<S> <C> <C>
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
ARKANSAS 0.9%
Crossett, Arkansas, Pollution
Control Revenue Bond
3.700%, 12/07/95(A)(B)(C)(D) $ 5,400 $ 5,400
----------
CALIFORNIA 6.0%
California State, Series C, GO
5.750%, 04/25/96 13,835 13,890
Contra Costa County, California
State Transportation
Authority Revenue Bond
4.500%, 07/03/96 4,000 4,019
Los Angeles, California,
American Airlines, Series C
3.850%, 12/07/95(A)(B)(C)(D) 4,200 4,200
Orange County, California, TRAN
5.450%, 06/30/96(B)(C) 7,500 7,500
San Diego, California, TRAN
4.750%, 07/03/96 5,000 5,024
----------
34,633
----------
COLORADO -- 4.0%
Colorado Health Facility
Authority Revenue Bond, North
Colorado Medical Center
3.700%, 12/07/95(A)(B)(C)(E) 8,400 8,400
Colorado Health Facility
Authority Revenue Bond,
Sisters Charity Health,
Series C
3.700%, 12/07/95(A)(B)(C) 14,300 14,300
----------
22,700
----------
CONNECTICUT -- 1.6%
Connecticut State Housing
Finance Authority, Series H-1
3.650%, 12/07/95(A)(B)(C) 9,465 9,465
----------
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
FLORIDA -- 3.0%
Dade County, Florida, Housing
Financial Authority Revenue
Bond
3.600%, 12/06/95(A)(B)(C) $ 3,900 $ 3,900
Florida Housing Financial
Agency, Multifamliy Revenue
Bond, Series Oaks-A
3.750%, 12/06/95(A)(B)(C) 3,455 3,455
</TABLE>
<TABLE>
<S> <C> <C>
Hillsborough County, Florida
Utility Bond, Tampa Electric
Project
3.800%, 12/07/95(A)(B)(C) 10,000 10,000
----------
17,355
----------
GEORGIA -- 1.8%
De Kalb County, Georgia,
Educational Facility
Authority Revenue Bond, Emory
University
3.800%, 12/15/95 3,260 3,260
Georgia Municipal Electric
Authority Revenue Bond,
Series C
4.900%, 03/01/96(A)(B)(C) 4,000 4,000
Georgia Tech Foundation
Facility Revenue Bond,
Wardlaw Project Series B
3.700%, 12/06/95(A)(B)(C) 2,800 2,800
----------
10,060
----------
ILLINOIS -- 6.3%
Chicago, Illinois, GO
3.750%, 10/31/96(B)(C) 5,300 5,300
Illinois Educational Facility
Authority Revenue Bond
3.750%, 12/07/95(A)(B)(C) 7,800 7,800
4.000%, 02/08/96(A)(B)(C) 6,000 6,000
Illinois Health Facility
Authority Revenue Bond,
Lutheran Institution, Series
C
3.750%, 12/07/95(A)(B)(C) 7,500 7,500
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
10
<PAGE>
1784 MONEY MARKET FUNDS
1784 TAX-FREE MONEY MARKET FUND
<TABLE>
<S> <C> <C>
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
</TABLE>
ILLINOIS (CONTINUED)
<TABLE>
<S> <C> <C>
Joliet, Illinois, Gas Supply
Revenue Bond, Peoples Gas
Project
6.350%, 10/02/96 $ 3,000 $ 3,000
Illinois Metro Fair &
Exposition Authority
8.000%, 06/01/96(B)(C) 6,500 6,874
----------
36,474
----------
INDIANA -- 1.1%
Indiana State Housing Financial
Authority Revenue Bond
3.900%, 07/01/96(A)(B)(C) 3,400 3,400
Indianapolis, Indiana, GO
4.250%, 01/11/96 3,000 3,002
----------
6,402
----------
IOWA -- 6.1%
Iowa Finance Authority,
Catholic Health Facility,
Series A
3.650%, 12/07/95(A)(B)(C)(E) 11,500 11,500
Iowa Schools, Series A, RAN
4.750%, 06/28/96(E) 8,250 8,291
Salix, Iowa, Pollution Control
Revenue Bond
3.800%, 12/06/95(A)(B)(C) 15,395 15,395
----------
35,186
----------
KENTUCKY -- 1.3%
Ashland, Kentucky, Pollution
Control Revenue Bond, Ashland
Oil
3.500%, 12/07/95(A)(B)(C)(D) 3,500 3,500
Boone County, Kentucky,
Pollution Control Revenue
Bond, Cincinnati Gas &
Electric
3.850%, 12/01/95(A)(B)(C)(D) 4,100 4,100
----------
7,600
----------
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
LOUISIANA -- 0.6%
West Feliciana Parish,
Louisiana, Gulf States
Utilities, Series D
3.800%, 12/07/95(A)(B)(C)(D) $ 3,200 $ 3,200
----------
MAINE -- 3.8%
Jay, Maine, Pollution Control
Revenue Bond, Solid Waste
Disposal AMT
4.500%, 06/01/96(A)(B)(C)(E) 16,000 16,000
Maine State, TAN
4.500%, 06/28/96 5,000 5,021
Portland, Maine, GO
4.750%, 06/01/96 1,110 1,115
----------
22,136
----------
MASSACHUSETTS -- 0.2%
Massachusetts State, Series A,
GO
7.250%, 06/01/96(E) 1,000 1,017
----------
MICHIGAN -- 4.6%
Delta County, Michigan,
Economic Development Revenue
Bond
3.800%, 12/07/95(A)(B)(C)(D) 3,200 3,200
Delta County, Michigan,
Economic Development Project
3.900%, 12/07/95(A)(B)(C)(D) 1,500 1,500
Detroit, Michigan, Downtown
Development Authority Revenue
Bond, Millender Center
Project
3.950%, 12/07/95(A)(B)(C)(D) 12,000 12,000
Grand Rapids, Michigan,
Economic Development Revenue
Bond, Amway Hotel, Series A
4.400%, 12/06/95(A)(B)(C)(D) 9,800 9,800
----------
26,500
----------
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
11
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<S> <C> <C>
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
MISSISSIPPI -- 0.6%
Jackson County, Mississippi,
Pollution Control Authority
Revenue Bond, Chevron USA
Project
3.650%, 12/07/95(A)(B)(C) $ 3,550 $ 3,550
----------
MISSOURI -- 3.9%
Kansas City, Missouri,
Industrial Development
Authority Revenue Bond
3.850%, 12/07/95(A)(B)(C) 7,200 7,200
Missouri State Housing Finance
Authority Revenue Bond
4.000%, 07/01/96(B)(C) 5,000 5,000
St Louis, Missouri, TRAN
4.500%, 06/20/96 10,000 10,040
----------
22,240
----------
NEW HAMPSHIRE -- 3.7%
New Hampshire Higher Education
& Health Facilities Revenue
Bond, Mary Hitchcock Project,
Series 85D
3.700%, 12/06/95(A)(B)(C)(E) 12,600 12,600
New Hampshire Higher Education
& Health Facilities Revenue
Bond, Mary Hitchcock, Series
85H
3.700%, 12/06/95(A)(B)(C)(E) 2,700 2,700
New Hampshire Higher Education
& Health Facilities Revenue
Bond, Veterans Hospital
Administration New England
Project, Series C
3.650%, 12/06/95(A)(B)(C)(E) 4,000 4,000
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
New Hampshire Higher Education
& Health Facilities Revenue
Bond, Veterans Hospital
Administration New England
Project, Series F
3.650%, 12/06/95(A)(B)(C)(E) $ 2,000 $ 2,000
----------
21,300
----------
NEW JERSEY -- 1.3%
Galloway Township, New Jersey,
GO
4.100%, 03/14/96 7,250 7,259
----------
NEW YORK -- 1.7%
New York State Revenue Bond,
Energy Research, Lilco
Project Series B
4.700%, 03/01/96(A)(B)(C)(D) 10,000 10,000
----------
NORTH CAROLINA -- 6.1%
Charlotte, North Carolina,
Mecklenburg Hospital
8.250%, 10/01/96(B)(C) 1,495 1,584
North Carolina Medical Center
Revenue Bond, Pooled
Financing Project, Series A-2
3.750%, 12/05/95(A)(B)(C) 1,970 1,970
North Carolina State
Educational Facility Revenue
Bond, Bowman Grey School
Medical Project
3.700%, 12/07/95(A)(B)(C) 11,600 11,600
Wake County, North Carolina,
Industrial Facilities &
Pollution Control Revenue
Bond, Carolina Power & Light
Project, Series C
4.150%, 12/06/95(A)(B)(C)(D) 9,800 9,800
Wake County, North Carolina,
Industrial Facilities and
Pollution Control Revenue
Bond, Carolina Power & Light
Project, Series B
4.150%, 12/06/95(A)(B)(C)(D) 10,400 10,400
----------
35,354
----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
12
<PAGE>
1784 MONEY MARKET FUNDS
1784 TAX-FREE MONEY MARKET FUND
<TABLE>
<S> <C> <C>
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
NORTH DAKOTA -- 0.4%
Oliver County, North Dakota,
Square Butte Electric
Project, Series B
4.500%, 09/01/96(B)(C) $ 2,000 $ 2,000
----------
OHIO -- 0.9%
Clermont County, Ohio, Hospital
Facilities Revenue Bond,
Mercy Health Care System,
Series B
3.550%, 12/06/95(A)(B)(C)(E) 5,145 5,145
----------
OKLAHOMA -- 1.7%
Oklahoma State Water & Resource
Board, State Loan Program
3.800%, 03/01/96(B)(C) 10,000 10,000
----------
OREGON -- 0.4%
Clackmas County, Oregon
Hospital Facility
3.700%, 04/01/96(B)(C)(D) 2,300 2,300
----------
PENNSYLVANIA -- 3.4%
Dauphin County, Pennsylvania,
General Authority Revenue
Bond
4.300%, 06/30/96(B)(C)(E) 1,000 1,002
Philadelphia, Pennsylvania,
TRAN
4.500%, 06/27/96 5,000 5,015
Quakertown, Pennsylvania,
Hospital Authority Revenue
Bond
3.700%, 12/05/95(A)(B)(C)(D) 13,800 13,800
----------
19,817
----------
RHODE ISLAND -- 1.5%
Rhode Island Housing & Mortgage
Finance
3.850%, 06/27/96(B)(C)(E) 5,340 5,340
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
Rhode Island, Landfill Lease
Note, BAN
4.750%, 08/01/96(E) $ 3,000 $ 3,007
----------
8,347
----------
SOUTH CAROLINA -- 3.2%
Berkeley County, South
Carolina, Pollution Control
Revenue Bond, Mobay Chemical
Project
3.750%, 12/01/95(A)(B)(C)(D) 4,300 4,300
Georgetown County, South
Carolina, GO
4.450%, 04/15/96(B)(C)(D) 2,000 2,000
Georgetown County, South
Carolina, Pollution Control
Revenue Bond, International
Paper Company, Series A
4.300%, 09/01/96(A)(B)(C) 11,955 11,955
----------
18,255
----------
SOUTH DAKOTA -- 1.9%
South Dakota Housing
Development Authority Revenue
Bond, Homeownership Mortgage,
Series C
3.900%, 05/01/96 1,000 1,000
South Dakota School District
Authority Revenue Bond
4.750%, 07/30/96(E) 10,000 10,054
----------
11,054
----------
TEXAS -- 9.7%
Brazos, Texas, Industrial
Development Revenue Bond,
Badische Corporate Port
Authority
3.750%, 12/01/95(A)(B)(C)(D) 6,300 6,300
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
13
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<S> <C> <C>
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
</TABLE>
TEXAS (CONTINUED)
<TABLE>
<S> <C> <C>
Grand Prairie, Texas, Housing
Finance Corporate Authority,
Multi-Family Housing Revenue
Bond, Lincoln Property
Company
3.700%, 12/06/95(A)(B)(C) $ 5,000 $ 5,000
Grand Prairie, Texas, Housing
Finance Corporate Authority,
Multi-Family Housing Revenue
Bond, Winridge Grand Prairie
Project
3.700%, 12/06/95(A)(B)(C) 7,200 7,200
Grapevine, Texas, Industrial
Development Revenue Bond
3.750%, 12/07/95(A)(B)(C)(D) 5,400 5,400
Harris County, Texas, GO
3.700%, 01/11/96 5,000 5,000
Irvine, Texas, GO
3.500%, 12/07/95(A)(B)(C)(D) 10,245 10,245
Lower Colorado River Texas
Authority
3.700%, 12/12/95 17,100 17,100
----------
56,245
----------
UTAH -- 1.0%
Utah County Environmental
Improvement Revenue Bond, USX
Corporation Project
3.700%, 05/01/96(A)(B)(C)(D) 2,000 2,000
Utah State Board Regents
Student Loan Revenue Bond
3.700%, 12/06/95(A)(B)(C)(E) 4,000 4,000
----------
6,000
----------
VERMONT -- 1.0%
Vermont Education & Health
Facilities Revenue Bond,
Series D
3.650%, 12/06/95(A)(B)(C)(E) 5,900 5,900
----------
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
WASHINGTON -- 1.4%
Washington State Health Care
Facility Authority Revenue
Bond, Sisters of Providence,
Series C
3.700%, 12/07/95(A) $ 6,800 $ 6,800
Washington State Public Power
Supply Revenue Bond
4.650%, 07/01/96 1,500 1,507
----------
8,307
----------
WASHINGTON, D.C. -- 1.3%
District of Columbia, GO
7.750%, 06/01/96(B)(C)(E) 1,000 1,052
District of Columbia, Series
B2, GO
4.000%, 12/07/95(A)(C)(D) 6,200 6,200
----------
7,252
----------
WISCONSIN -- 1.4%
Pleasant Prairie, Wisconson,
Electric Power Company
3.750%, 12/07/95(A)(B)(C) 8,000 8,000
----------
TOTAL MUNICIPAL BONDS
(Cost $515,367) 515,367
----------
CASH EQUIVALENTS -- 6.2%
Clipper Blue Tax-Exempt Trust 23,390 23,390
Clipper Tax-Exempt Trust 12,341 12,341
----------
TOTAL CASH EQUIVALENTS
(Cost $35,731) 35,731
----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
14
<PAGE>
1784 MONEY MARKET FUNDS
1784 TAX-FREE MONEY MARKET FUND
<TABLE>
<S> <C> <C>
- -----------------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------------
REPURCHASE AGREEMENT -- 4.0%
Paine Webber, Incorporated
5.730%, dated 11/30/95,
matures 12/01/95, repurchase
price $22,922,833
(collateralized by various
U.S. Treasury STRIPS
ranging in par value from
$4,000 - $14,054,401,
02/15/00 - 02/15/05; total
market value $23,377,569) $ 22,919 $ 22,919
----------
TOTAL REPURCHASE AGREEMENT
(Cost $22,919) 22,919
----------
TOTAL INVESTMENTS -- 99.6%
(Cost $574,017) 574,017
----------
TOTAL OTHER ASSETS AND LIABILITIES,
NET -- 0.4% 2,489
----------
- ----------------------------------------------------------
VALUE
DESCRIPTION (000)
- ----------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization -- no
par value) based on 576,517,332 outstanding
shares of beneficial interest $576,517
Accumulated Net Realized Loss on Investments
(6 )
Distributions in Excess of Net Investment
Income (5 )
---------
TOTAL NET ASSETS -- 100.0% $576,506
---------
---------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $1.00
---------
---------
</TABLE>
LEGEND
- ---------------------------------------------------------------
(A)VARIABLE RATE SECURITIES -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON NOVEMBER 30, 1995.
(B)PUT OR DEMAND FEATURES EXIST REQUIRING THE ISSUER TO REPURCHASE THE
INSTRUMENT PRIOR TO MATURITY.
(C)THE MATURITY DATE SHOWN IS THE LESSER OF THE PUT, DEMAND OR MATURITY DATE.
(D)SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY A MAJOR
COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
(E)SECURITIES ARE HELD IN CONNECTION WITH BOND INSURANCE ISSUED BY ALLIED
SIGNAL, AMBAC, FGIC, FSA, GENERAL ELECTRIC, GOLDMAN SACHS, INT'L PAPER, MBIA,
MORGAN GUARANTY TRUST, NATIONAL RURAL, SEMINOLE ELECTRIC, SLMA, SOCIETE
GENERALE, SQUARE BUTTE ELECTRIC, TAMPA ELECTRIC, OR TEXACO.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
AMT -- ALTERNATIVE MINIMUM TAX
BAN -- BOND ANTICIPATION NOTE
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
RAN -- REVENUE ANTICIPATION NOTE
SLMA -- STUDENT LOAN MARKETING ASSOCIATION
STRIPS -- SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES
TAN -- TAX ANTICIPATION NOTE
TRAN -- TAX AND REVENUE ANTICIPATION NOTE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
15
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
- --------------------------------------------
1784 SHORT-TERM INCOME FUND
- -------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Corporate Obligations 45%
U.S. Treasury Obligations 14%
U.S. Government Agency Obligations 8%
U.S. Government Mortgage-Backed Bonds 6%
Asset Backed-Securities 16%
Municipal Bonds 6%
Foreign Bonds 2%
Cash Equivalents 2%
Non-Agency Mortgage-Backed Bonds 1%
% of Total Portfolio Investments
</TABLE>
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 13.9%
U.S. Treasury Notes
6.125%, 07/31/96 $ 2,000 $ 2,009
5.625%, 06/30/97 2,000 2,007
6.875%, 08/31/99 2,500 2,612
7.125%, 02/29/00 1,200 1,271
6.125%, 07/31/00 2,500 2,558
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $10,335) 10,457
-----------
AGENCY NOTES & DEBENTURES -- 7.8%
Federal Home Loan Bank
5.339%, 10/08/97 194 193
6.000%, 12/01/00 1,000 1,001
Federal Home Loan Mortgage
Corporation
4.550%, 04/01/96 1,000 997
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Federal National Mortgage
Association
9.550%, 12/10/97 $ 1,000 $ 1,075
6.080%, 09/25/00 1,000 1,012
Providence, Rhode Island,
Housing and Urban Development
Revenue Bond
6.280%, 08/01/97 1,600 1,610
-----------
TOTAL AGENCY NOTES & DEBENTURES
(Cost $5,828) 5,888
-----------
MUNICIPAL BONDS -- 6.1%
Alaska State Housing Finance
Authority Revenue Bond
9.250%, 06/01/01 1,400 1,435
New York, New York GO
10.000%, 11/15/96 2,000 2,069
Richmond County, Georgia,
Development Authority Revenue
Bond
6.270%, 06/01/20(A) 1,100 1,103
-----------
TOTAL MUNICIPAL BONDS
(Cost $4,580) 4,607
-----------
U.S. MORTGAGE-BACKED SECURITIES -- 5.5%
Federal Home Loan Mortgage
Corporation
7.500%, 05/15/97 704 710
5.000%, 02/15/00 736 732
Federal Home Loan Mortgage
Corporation REMIC
7.250%, 04/25/24 1,000 1,021
Federal National Mortgage
Association
8.950%, 05/23/03 1,661 1,729
-----------
TOTAL U.S. MORTGAGE-BACKED SECURITIES
(Cost $4,140) 4,192
-----------
CORPORATE OBLIGATIONS -- 44.8%
American Express Credit
6.125%, 11/15/01 2,500 2,506
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
16
<PAGE>
1784 BOND FUNDS
1784 SHORT-TERM INCOME FUND
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Associates Corporation of North
America
6.750%, 08/29/00 $ 2,000 $ 2,055
BankAmerica
9.625%, 02/13/01 2,000 2,303
Chrysler Financial
6.625%, 08/15/00 1,000 1,015
Dean Witter Discover
6.750%, 08/15/00 2,000 2,053
Eastman Kodak
8.550%, 05/01/97 1,000 1,041
Eaton Corporation
6.375%, 04/01/99 1,500 1,519
Electronic Data Systems
6.850%, 05/15/00 1,000 1,028
Equitable Companies
6.750%, 12/01/00 1,500 1,541
Ford Motor Credit Corporation
9.500%, 04/15/00 1,500 1,695
6.250%, 11/08/00 1,000 1,006
Franklin Universal Trust
5.625%, 09/01/98 2,000 1,995
General Motors Acceptance
Corporation
7.150%, 03/15/00 708 720
9.125%, 07/15/01 1,000 1,134
Heller Financial
7.875%, 11/01/99 2,000 2,118
Hertz
8.300%, 02/02/98 1,000 1,049
Manufacturers Hanover
Corporation
8.500%, 02/15/99 1,500 1,607
Nabisco
8.000%, 01/15/00 2,500 2,656
National Bank of Detroit Bank
Note
7.875%, 01/21/97 1,000 1,025
Smith Barney Holdings
7.875%, 10/01/99 1,000 1,060
Wachovia Bank
4.900%, 10/15/98 1,000 978
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
WMX Technologies
8.125%, 02/01/98 $ 1,500 $ 1,568
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $32,898) 33,672
-----------
ASSET-BACKED SECURITIES -- 16.1%
CIT RV Owners Trust
6.250%, 01/15/11 895 902
Fleetwood Credit Corporation
Grantor Trust
6.550%, 05/15/11 1,910 1,932
Honda Auto Receivables Grantor
Trust
6.200%, 12/15/00 899 906
MS Auto Grantor Trust
6.200%, 07/01/01 1,907 1,912
NAFCO Auto Trust
7.000%, 12/31/01 2,000 2,015
Olympic Automobile Receivables
Trust
6.200%, 01/15/02 1,938 1,953
Signet Credit Card Master Trust
5.250%, 04/15/00 1,225 1,214
Standard Credit Card Master
Trust
9.000%, 08/07/96 300 311
4.850%, 03/07/99 1,000 986
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $11,956) 12,131
-----------
FOREIGN BONDS -- 1.6%
Middletown Trust
10.875%, 07/15/98 948 967
Sears Trust
8.750%, 04/15/96 200 202
-----------
TOTAL FOREIGN BONDS
(Cost $1,198) 1,169
-----------
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS -- 0.9%
Advanta Home Equity Loan Trust
6.150%, 10/25/09 146 145
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
17
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Green Tree Financial
Corporation
5.200%, 10/15/18 $ 250 $ 246
Security Pacific Acceptance
Corporation
7.250%, 12/15/11 123 126
University Support Services
Incorporated
8.300%, 08/20/08 163 164
-----------
TOTAL NON-AGENCY MORTGAGE-BACKED OBLIGATIONS
(Cost $663) 681
-----------
CASH EQUIVALENTS -- 0.1%
Dreyfus U.S. Government
Securities Money Market Fund 25 25
Lehman Brothers Institutional
U.S. Government Money Market
Fund 22 22
-----------
TOTAL CASH EQUIVALENTS
(Cost $47) 47
-----------
REPURCHASE AGREEMENT -- 1.4%
Lehman Brothers
5.820%, dated 11/30/95,
matures 12/01/95, repurchase
price $1,100,178
(collateralized by various
U.S. Treasury Notes ranging
in par value
$5,310 - $244,122,
8.125% - 9.125%,
05/15/18 - 08/15/20; total
market value $1,122,182) 1,100 1,100
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $1,100) 1,100
-----------
- ----------------------------------------------------------
VALUE
DESCRIPTION (000)
- ----------------------------------------------------------
TOTAL INVESTMENTS -- 98.2%
(Cost $72,744) $ 73,944
---------
TOTAL OTHER ASSETS AND LIABILITIES,
NET -- 1.8% 1,324
---------
NET ASSETS:
Capital Shares (unlimited authorization - no
par value) based on 7,382,575 outstanding
shares of beneficial interest 73,701
Accumulated Net Realized Gain on Investments
367
Net Unrealized Appreciation on Investments
1,200
---------
TOTAL NET ASSETS -- 100.0% $ 75,268
---------
---------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $10.20
---------
---------
</TABLE>
LEGEND
- ---------------------------------------------------------------
(A) PUT OR DEMAND FEATURES EXIST REQUIRING THE ISSUER TO REPURCHASE THE
INSTRUMENT PRIOR TO MATURITY
GO -- GENERAL OBLIGATION
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
+ EFFECTIVE YIELD
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
18
<PAGE>
1784 BOND FUNDS
1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
- --------------------------------------------
1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
- -------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
U.S. Treasury Obligations 28%
U.S. Government Mortgage-Backed Bonds 33%
U.S. Government Agency Obligations 13%
Cash Equivalents 8%
U.S. Government Guaranteed Securities 18%
% of Total Portfolio Investments
</TABLE>
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 27.8%
U.S. Treasury Bond
6.250%, 08/15/23 $ 6,000 $ 6,003
U.S. Treasury Notes
7.625%, 05/31/96 500 505
6.000%, 11/30/97 2,000 2,023
8.875%, 11/15/98 7,000 7,647
5.750%, 10/31/00 5,000 5,041
7.500%, 11/15/01 1,000 1,094
6.250%, 02/15/03 3,000 3,101
7.875%, 11/15/04 3,700 4,231
7.500%, 02/15/05 6,000 6,720
6.500%, 08/15/05 6,000 6,313
U.S. Treasury STRIPS
6.359%+, 08/15/10 1,000 406
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $41,801) 43,084
-----------
U.S. GOVERNMENT MORTGAGE-BACKED BONDS -- 32.7%
Federal Home Loan Mortgage
Corporation
7.500%, 11/01/19 4,431 4,482
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Federal Home Loan Mortgage
Corporation REMIC
7.000%, 07/15/03 $ 1,400 $ 1,430
6.250%, 08/15/03 3,735 3,683
7.000%, 03/15/05 5,700 5,952
7.000%, 06/15/22 4,000 4,061
5.000%, 08/15/22 5,000 4,613
Federal National Mortgage
Association
10.000%, 10/01/20 4,984 5,445
10.000%, 12/01/20 8,116 8,883
Government National Mortgage
Association
9.000%, 11/15/17 2,088 2,216
7.000%, 10/15/23 894 896
9.500%, 10/15/24 2,351 2,522
7.125%, 01/15/29 6,418 6,464
-----------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED BONDS
(Cost $48,897) 50,647
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 13.4%
Federal Farm Credit Bank
5.420%, 08/04/98 3,000 2,978
8.650%, 10/01/99 1,900 2,088
7.170%, 04/03/00 1,000 1,051
Federal Home Loan Bank
6.500%, 11/29/05 5,000 5,063
Federal National Mortgage
Association
7.550%, 06/10/04 1,500 1,564
Financing Corporation STRIPS
6.664%+, 05/11/11 3,000 1,087
International Bank For
Reconstruction & Development,
Colts Project B192
5.420%, 03/15/97 1,000 998
Tennessee Valley Authority
6.000%, 01/15/97 5,925 5,948
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $20,404) 20,777
-----------
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
19
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited) 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
U.S. GOVERNMENT GUARANTEED BONDS -- 18.0%
Goldman Sachs Trust
8.500%, 02/20/21 $ 10,000 $ 11,015
Merrill Lynch Trust
9.450%, 06/01/18 10,000 11,297
Ryland Acceptance, Series 97
8.500%, 01/20/20 3,000 3,185
Sulphur Carriers
8.300%, 10/15/09 2,098 2,331
-----------
TOTAL U.S. GOVERNMENT GUARANTEED BONDS
(Cost $26,342) 27,828
-----------
REPURCHASE AGREEMENT -- 7.8%
Lehman Brothers
5.820%, dated 11/30/95, matures
12/01/95, repurchase price
$12,001,940 (collateralized by
various U.S. Treasury Notes
ranging in par value
$61,950 - $2,848,090,
8.125% - 9.125%,
05/15/18 - 08/15/20; total
market value $12,241,979) 12,000 12,000
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $12,000) 12,000
-----------
CASH EQUIVALENTS -- 0.2%
Dreyfus U.S. Government Cash
Management Money Market Fund 154 154
Lehman Brothers Institutional
Government Obligation Money
Market Fund 158 158
-----------
TOTAL CASH EQUIVALENTS
(Cost $312) 312
-----------
- ----------------------------------------------------------
VALUE
DESCRIPTION (000)
- ----------------------------------------------------------
TOTAL INVESTMENTS -- 99.9%
(Cost $149,756) $154,648
---------
TOTAL OTHER ASSETS AND LIABILITIES,
NET -- 0.1% 197
---------
NET ASSETS:
Capital Shares (unlimited authorization - no
par value) based on 15,779,916 outstanding
shares of beneficial interest 154,734
Accumulated Net Realized Loss on Investments
(4,781 )
Net Unrealized Appreciation on Investments
4,892
---------
TOTAL NET ASSETS -- 100.0% $154,845
---------
---------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $9.81
---------
---------
</TABLE>
LEGEND
- ---------------------------------------------------------------
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
STRIPS -- SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES
+EFFECTIVE YIELD.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
20
<PAGE>
NOVEMBER 30, 1995 1784 BOND FUNDS
1784 INCOME FUND
Statement of Net Assets
(Unaudited)
- --------------------------------------------
1784 INCOME FUND
- -------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Corporate Obligations 22%
U.S. Government Mortgage-Backed Bonds 10%
U.S. Treasury Obligations 14%
U.S. Government Agency Obligations 14%
Foreign Bonds 14%
Asset-Backed Securities 10%
Non Agency Mortgage-Backed Obligations 7%
Cash Equivalents 9%
% of Total Portfolio Investments
</TABLE>
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 13.5%
U.S. Treasury Bond
7.875%, 02/15/21 $ 3,000 $ 3,604
U.S. Treasury Notes
7.875%, 01/15/98 2,000 2,098
5.875%, 08/15/98 6,000 6,067
9.250%, 08/15/98 1,000 1,095
4.750%, 08/31/98 2,000 1,966
6.125%, 07/31/00 5,000 5,115
6.500%, 08/15/05 8,000 8,417
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $27,731) 28,362
-----------
U.S. GOVERNMENT MORTGAGE-BACKED BONDS -- 9.7%
Federal Home Loan Mortgage
Corporation REMIC
5.000%, 08/15/22 5,000 4,613
Federal National Mortgage
Association REMIC
6.000%, 12/25/16 3,000 2,861
7.000%, 03/25/19 1,009 1,013
7.000%, 10/25/23 4,806 4,768
Government National Mortgage
Association
7.000%, 10/15/23 1,823 1,828
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
7.125%, 01/15/29 $ 5,225 $ 5,262
-----------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED BONDS
(Cost $17,317) 20,345
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 14.1%
Financial Assistance
Corporation
9.375%, 07/21/03 10,190 12,176
Federal Home Loan Bank
7.690%, 12/16/96 2,500 2,554
6.500%, 11/29/05 8,000 8,101
Federal Home Loan Mortgage
Corporation
8.530%, 02/02/05 5,000 5,448
7.750%, 09/01/05 1,354 1,377
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $29,006) 29,656
-----------
CORPORATE OBLIGATIONS -- 22.1%
Associates Corporation of North
America
8.625%, 06/15/97 1,700 1,772
5.875%, 08/15/97 2,700 2,710
7.300%, 03/15/98 5,000 5,156
CIT Group Holdings
8.950%, 08/15/20 4,000 4,475
First Union
6.550%, 10/15/35(A) 2,500 2,513
Ford
9.250%, 07/15/97 1,000 1,054
General Electric
7.875%, 09/15/98 5,000 5,256
General Motors
9.125%, 07/15/01 5,000 5,669
General Motors Acceptance
Corporation
8.250%, 02/28/02 5,000 5,488
Green Tree Financial
Corporation
7.650%, 10/15/25 5,000 5,069
MBIA
8.200%, 10/01/22 3,000 3,236
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
21
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Travelers
7.875%, 05/15/25 $ 3,000 $ 3,274
6.875%, 06/01/25(A) 1,000 1,028
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $44,402) 46,700
-----------
ASSET-BACKED SECURITIES -- 9.6%
Discover Card Master Trust
Series 1993-1, Class B
5.300%, 10/16/01 5,000 4,918
Discover Card Master Trust
Series 1993-2, Class B
5.750%, 11/16/01 1,275 1,272
Fleetwood Credit Corporation
Grantor Trust Series 1995B,
Class A
6.550%, 05/15/11 2,866 2,898
MBNA Master Credit Card Trust
Series 1995C
6.450%, 02/18/08 3,000 3,036
NAFCO Auto Trust
7.000%, 12/31/01 3,000 3,021
Prime Credit Card Master Trust
Series 1992-1, Class A1
7.050%, 12/15/97 5,000 5,154
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $19,648) 20,299
-----------
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS -- 7.2%
Capstead Securities IV Series
1992-5, Class E
8.500%, 10/25/21 2,000 2,079
Green Tree Financial
Corporation Series 95-7
7.350%, 12/15/25 5,000 5,131
Merrill Lynch Mortgage
Investors Series 1989H, Class
B
10.000%, 01/15/10 2,300 2,471
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Merrill Lynch Mortgage
Investors Series 1994G, Class
A3
8.350%, 05/15/14 $ 5,000 $ 5,446
-----------
TOTAL NON-AGENCY MORTGAGE-BACKED OBLIGATIONS
(Cost $14,163) 15,127
-----------
FOREIGN BONDS -- 13.5%
Bank China
8.250%, 03/15/14 6,200 6,099
Hydro-Quebec
8.050%, 07/07/24(A) 5,000 5,600
Midland Bank
7.650%, 05/01/25(A) 5,000 5,469
Noranda
7.000%, 07/15/05 2,500 2,550
Santander Financial
7.875%, 04/15/05 8,000 8,688
-----------
TOTAL FOREIGN BONDS
(Cost $27,232) 28,406
-----------
REPURCHASE AGREEMENT -- 9.2%
Lehman Brothers
5.820%, dated 11/30/95,
matures 12/01/95, repurchase
price $19,303,120
(collateralized by various
U.S. Treasury Notes ranging
in par value
$97,350 - $4,475,570,
8.125% - 9.125%,
05/15/18 - 08/15/20; total
market value $19,689,182) 19,300 19,300
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $19,300) 19,300
-----------
CASH EQUIVALENTS -- 0.0%
Dreyfus U.S. Government Cash
Management Money Market Fund 34 34
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
22
<PAGE>
1784 BOND FUNDS
1784 INCOME FUND 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Lehman Brothers Institutional
Government Obligations Money
Market Fund $ 34 $ 34
-----------
TOTAL CASH EQUIVALENTS
(Cost $68) 68
-----------
TOTAL INVESTMENTS -- 98.9%
(Cost $198,862) 208,263
-----------
TOTAL OTHER ASSETS AND LIABILITIES
NET -- 1.1% 2,240
-----------
NET ASSETS:
Capital Shares (unlimited authorization-no par
value) based on 19,845,638 outstanding
shares of beneficial interest 198,026
Accumulated Net Realized Gain on Investments
3,076
Net Unrealized Appreciation on Investments
9,401
-----------
TOTAL NET ASSETS -- 100.0% $ 210,503
-----------
-----------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE $10.61
-----------
-----------
</TABLE>
LEGEND
- ---------------------------------------------------------------
(A) PUT OR DEMAND FEATURES EXIST REQUIRING THE ISSUER TO REPURCHASE THE
INSTRUMENT PRIOR TO MATURITY.
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
- ---------------------------------------------------------------
1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
- -------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
General Obligation Bonds 34%
Alternative Minimum Tax Bonds 12%
Industrial Development & Pollution Control Bonds 8%
Other Revenue Bonds 10%
Housing Bonds 8%
Utility Bonds 8%
Health Care Bonds 7%
Education Bonds 5%
Cash Equivalents 4%
Transportation Bonds 4%
% of Total Portfolio Investments
</TABLE>
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
MUNICIPAL BONDS -- 95.0%
ALABAMA -- 0.6%
Alabama Agriculture &
Mechanical University Revenue
Bond
6.000%, 11/01/09(C) $ 1,000 $ 1,061
-----------
ALASKA -- 1.7%
Alaska Industrial Development &
Expansion Authority Revenue
Bond, Series B
5.850%, 04/01/05 1,000 1,069
Alaska Student Loan Marketing
Association, Series A
6.700%, 07/01/01 2,100 2,221
-----------
3,290
-----------
ARIZONA -- 0.6%
Arizona State Transportation
Board Highway Revenue Bond
6.500%, 07/01/11 AMT 1,000 1,128
-----------
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
23
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
CALIFORNIA -- 5.2%
California State GO
7.000%, 08/01/05(C) $ 1,525 $ 1,801
6.400%, 02/01/06(C) 1,000 1,128
5.500%, 04/01/06(C) 1,500 1,584
5.750%, 03/01/08 3,000 3,098
Los Angeles, California, Series
A GO
5.800%, 09/01/09(C) 1,250 1,297
San Francisco, California, City
& County Sewer Revenue Bond,
Series A
5.700%, 10/01/11(C) 1,000 1,026
-----------
9,934
-----------
CONNECTICUT -- 4.5%
Connecticut State Housing
Finance Authority Revenue
Bond, Housing Mortgage
Finance Project, Series B
7.300%, 11/15/03 3,435 3,666
Connecticut State Resource
Recovery Bond, Connecticut
Systems, Series A
5.375%, 11/15/10(C) 3,000 2,888
Connecticut State Resource
Recovery Bond, Wallingford
Resources, Series 1-Sub AMT
6.625%, 11/15/01 1,990 2,117
-----------
8,671
-----------
FLORIDA -- 2.2%
Dade County, Florida, School
Board Certificate of
Participation, Series A
5.750%, 05/01/12(C) 1,505 1,544
Dade County, Florida, Special
Obligation, Courthouse Center
Project
5.900%, 04/01/10 1,500 1,536
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Jacksonville, Florida, Electric
Authority Revenue Bond, St.
John's Project, Series B
6.750%, 10/01/05 $ 1,000 $ 1,113
-----------
4,193
-----------
GEORGIA -- 1.2%
Georgia State, Series E GO
5.500%, 07/01/07 1,000 1,051
Municipal Electric Authority of
Georgia Revenue Bond, 6th
Crossover Project
7.000%, 01/01/08(C) 1,000 1,177
-----------
2,228
-----------
INDIANA -- 0.3%
Indiana Bond Bank Revenue,
Guaranteed State Revolving
Fund, Series A
6.875%, 02/01/12 500 558
-----------
IOWA -- 1.1%
Iowa Student Loan Liquidity
Revenue Bond, Series A
6.350%, 03/01/01 2,000 2,125
-----------
LOUISIANA -- 1.4%
Louisiana State Offshore
Terminal Authority Revenue
Bond, Series B
7.200%, 09/01/08 2,520 2,797
-----------
MARYLAND -- 2.9%
Frederick, Maryland GO
5.900%, 12/01/03(C) 1,000 1,089
Maryland State, GO
5.600%, 03/15/08 4,275 4,499
-----------
5,588
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
24
<PAGE>
1784 BOND FUNDS
1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
MASSACHUSETTS -- 22.1%
Boston, Massachusetts, Revenue
Bond, Boston City Hospital,
Series B
5.750%, 02/15/13 $ 1,300 $ 1,298
Boston, Massachusetts, Revenue
Bond, Boston City Hospital,
Series B
5.750%, 02/15/13(C) 1,500 1,517
Boston, Massachusetts, Water &
Sewer Commission, Series A
6.100%, 11/01/06 3,950 4,233
Massachusetts Bay
Transportation Authority
Revenue Bond, Series B
5.800%, 03/01/11 1,000 1,031
Massachusetts Educational Loan
Authority Revenue Bond, Issue
D, Series A AMT
6.800%, 01/10/02(C) 1,695 1,843
Massachusetts Municipal
Wholesale Electric Power
Supply System Revenue Bond,
Series D
6.000%, 07/01/05 1,625 1,753
6.000%, 07/01/11(C) 2,650 2,779
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond, Dana
Farber Cancer Project, Series
G-1
6.250%, 12/01/08 1,000 1,055
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond,
Faulkner Hospital, Series C
5.750%, 07/01/03 2,400 2,466
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond, New
England Deaconess Hospital,
Series D
6.625%, 04/01/12 $ 1,000 $ 1,038
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond, New
England Medical Center
Hospitals, Series F
6.500%, 07/01/12(C) 1,000 1,083
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond,
Series A
6.200%, 01/01/03 1,140 1,231
6.250%, 01/01/05 1,060 1,165
Massachusetts State Housing
Finance Agency, Multi-Family
Housing Project, Series A
5.600%, 07/01/07(C) 600 617
5.700%, 07/01/08(C) 600 617
Massachusetts State Housing
Finance Agency, Series A AMT
5.900%, 07/01/03(C) 1,750 1,840
Massachusetts State Housing
Finance Agency, Series E
6.250%, 11/15/12 2,600 2,675
Massachusetts State Housing
Finance Agency, Single Family
Housing Project, Series 44
5.900%, 12/01/13 1,000 1,008
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
25
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Massachusetts State Industrial
Finance Agency Revenue Bond,
Refusetech Incorporated
Project, Series A
6.150%, 07/01/02 $ 1,595 $ 1,679
6.300%, 07/01/05 3,220 3,385
Massachusetts State Special
Obligation Revenue Bond,
Series A
7.000%, 06/01/02 1,000 1,134
Massachusetts State, Series C
GO
6.300%, 11/01/04 1,000 1,124
Massachusetts State, Series D
GO
5.750%, 05/01/12 2,000 2,035
New England Educational Loan
Marketing Corporation,
Massachusetts Student Loan,
Series A AMT
5.700%, 07/01/05 3,550 3,648
-----------
42,254
-----------
MICHIGAN -- 0.8%
Michigan State Hospital Finance
Authority Revenue Bond,
Oakwood Hospital Obligation
Group A
5.400%, 11/01/07(C) 1,500 1,539
-----------
NEW HAMPSHIRE -- 0.3%
New Hampshire State Housing
Finance Authority Revenue
Bond, Series B
5.850%, 07/01/10(C) 500 509
-----------
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
NEW JERSEY -- 2.2%
Union County, New Jersey,
Utilities Authority Solid
Waste Revenue Bond, Series A
AMT
7.100%, 06/15/06 $ 4,000 $ 4,265
-----------
NEW YORK -- 9.2%
New York State Dormitory
Authority Revenue Bond,
Series A
5.875%, 05/15/07 1,000 1,025
5.900%, 05/15/08 1,250 1,280
New York, New York, Series A GO
7.500%, 03/15/09 1,000 1,100
New York, New York, Series B GO
5.625%, 08/15/08 3,000 3,115
New York, New York, Series C GO
6.500%, 08/01/05 2,500 2,638
6.375%, 08/01/06(C) 2,000 2,248
New York, New York, Series D GO
6.000%, 02/15/09 1,000 1,001
New York, New York, Series F GO
6.500%, 02/15/07 2,865 3,008
New York, New York, Series H GO
6.875%, 02/01/02 2,000 2,148
-----------
17,563
-----------
NORTH CAROLINA -- 1.6%
North Carolina Eastern
Municipal Power Agency,
Series B
6.000%, 01/01/05 3,000 3,090
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
26
<PAGE>
1784 BOND FUNDS
1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
OHIO -- 1.7%
Cleveland, Ohio, Water Works
Revenue Bond, Series F AMT
6.500%, 01/01/21(C) $ 2,000 $ 2,248
Ohio State Building Authority
Revenue Bond, Adult
Correctional Facilities
5.700%, 10/01/06(C) 1,000 1,070
-----------
3,318
-----------
PENNSYLVANIA -- 3.6%
Beaver County, Pennsylvania,
Hospital Authority Revenue
Bond, Medical Center Beaver
Pennsylvania
6.600%, 07/01/04(C) 1,250 1,394
Pennsylvania Intergovernmental
Cooperative Authority Revenue
Bond, City of Philadelphia
Funding Project
5.600%, 06/15/15(C) 1,000 999
Pennsylvania State GO
6.000%, 11/15/02 1,630 1,776
6.100%, 11/15/04(C) 1,000 1,104
Pennsylvania State Higher
Education Assistance Agency
Revenue Bond, Series A
6.800%, 12/01/00(C) 1,490 1,628
-----------
6,901
-----------
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
PUERTO RICO -- 3.2%
Puerto Rico Commonwealth
Highway & Transportation
Authority Highway Revenue
Bond, Series V
6.375%, 07/01/07(C) $ 2,210 $ 2,445
Puerto Rico Municipal Finance
Agency Revenue Bond, Series A
5.600%, 07/01/05(C) 2,000 2,128
Puerto Rico Public Buildings
Authority Revenue Bond,
Series K
6.875%, 07/01/21 1,265 1,464
-----------
6,037
-----------
RHODE ISLAND -- 8.3%
Pawtucket, Rhode Island GO
5.625%, 04/15/07(C) 3,100 3,266
Providence, Rhode Island GO
6.750%, 01/15/09(C) 1,415 1,539
Rhode Island Depositors
Economic Protection
Corporation, Special
Obligation, Series B
5.800%, 08/01/09(C) 1,000 1,059
Rhode Island Housing & Mortgage
Finance Agency, Multi-Family
Housing Project, Series A
5.700%, 07/01/07(C) 1,000 1,036
Rhode Island Housing & Mortgage
Finance Homeownership
Opportunity, Series 15-B
6.100%, 10/01/05(A)(B) 500 524
6.200%, 10/02/06(A)(B) 1,110 1,156
Rhode Island State Construction
Capital Development Loan,
Series B GO
6.250%, 05/15/05 1,940 2,083
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
27
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
</TABLE>
RHODE ISLAND (CONTINUED)
<TABLE>
<S> <C> <C>
Rhode Island State Student Loan
Marketing Association, Series
A
6.550%, 12/01/00 $ 1,600 $ 1,698
6.750%, 12/01/01 2,000 2,145
Rhode Island State Student Loan
Marketing Association, Series
B AMT
6.900%, 12/01/03 1,300 1,427
-----------
15,933
-----------
SOUTH CAROLINA -- 2.0%
Medical University South
Carolina Hospital Facilities,
Series A
7.125%, 07/01/04 500 553
South Carolina State Public
Services Authority Revenue
Bond, Series A
6.250%, 01/01/00(C) 3,000 3,221
-----------
3,774
-----------
TEXAS -- 2.6%
Dallas-Fort Worth, Texas,
Regional Airport Revenue
Bond, Series A
5.800%, 11/01/07(C) 2,000 2,115
Texas State Public Financing
Authority, Series A GO
5.700%, 10/01/07(A)(B) 1,500 1,568
5.750%, 10/01/08(A)(B) 1,280 1,350
-----------
5,033
-----------
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
VERMONT -- 1.7%
Vermont Educational & Health
Buildings Finance Agency,
Medical Center Hospital of
Vermont
5.750%, 09/01/07(C) $ 1,800 $ 1,890
Vermont State Student Loan
Assistance Corporation,
Series A-3 AMT
6.050%, 06/15/01(C) 1,300 1,372
-----------
3,262
-----------
VIRGINIA -- 2.4%
Norfolk, Virginia, Industrial
Development Authority Revenue
Bond, Daughters Charity-
Depaul Project
6.500%, 12/01/07 3,000 3,277
Virginia State Housing
Development Authority Revenue
Bond, Series H
5.700%, 11/01/07 1,155 1,210
-----------
4,487
-----------
WASHINGTON -- 7.2%
Washington State Public Power
Supply Systems Nuclear
Project No. 1 Revenue Bond,
Series A
5.500%, 07/01/04 2,000 2,055
Washington State Public Power
Supply Systems Nuclear
Project No. 2 Revenue Bond,
Series A
5.500%, 07/01/04 3,000 3,080
6.100%, 07/01/06 1,030 1,105
7.500%, 07/01/07 1,000 1,103
6.300%, 07/01/09 2,000 2,088
6.250%, 07/01/12 2,000 2,058
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
28
<PAGE>
1784 BOND FUNDS
1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
WASHINGTON (CONTINUED)
<TABLE>
<S> <C> <C>
Washington State, Series R92-A
GO
6.625%, 09/01/06 $ 2,000 $ 2,173
-----------
13,662
-----------
WASHINGTON, D.C. -- 1.8%
District Columbia, Series B GO
5.300%, 06/01/05(C) 1,000 1,015
6.000%, 06/01/08(C) 2,305 2,417
-----------
3,432
-----------
WISCONSIN -- 2.6%
Wisconsin State, Series A GO
5.750%, 05/01/03 3,305 3,553
5.800%, 05/01/07 1,355 1,436
-----------
4,989
-----------
TOTAL MUNICIPAL BONDS
(Cost $171,638) 181,621
-----------
CASH EQUIVALENTS -- 0.7%
Fidelity Tax-Exempt Money
Market Fund 674 674
Lehman Brothers Institutional
Tax-Free Money Market Fund 672 672
-----------
TOTAL CASH EQUIVALENTS
(Cost $1,346) 1,346
-----------
REPURCHASE AGREEMENT -- 3.1%
Lehman Brothers
5.820%, dated 11/30/95,
matures 12/01/95, repurchase
price $5,900,954
(collateralized by various
U.S. Treasury Notes ranging
in par value
$26,550 - $1,220,610,
8.125% - 9.125%,
05/15/18 - 08/15/20; total
market value $6,018,973) 5,900 5,900
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $5,900) 5,900
-----------
- ----------------------------------------------------------
VALUE
DESCRIPTION (000)
- ----------------------------------------------------------
TOTAL INVESTMENTS -- 98.8%
(Cost $178,884) $188,867
---------
TOTAL OTHER ASSETS AND LIABILITIES,
NET -- 1.2% 2,235
---------
NET ASSETS:
Capital Shares (unlimited authorization -- no
par value) based on 18,439,937 outstanding
shares of beneficial interest 179,638
Accumulated Net Realized Gain on Investments
1,481
Net Unrealized Appreciation on Investments
9,983
---------
TOTAL NET ASSETS -- 100.0% $191,102
---------
---------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $10.36
---------
---------
</TABLE>
LEGEND
- ---------------------------------------------------------------
(A) PUT OR DEMAND FEATURES EXIST REQUIRING THE ISSUER TO REPURCHASE THE
INSTRUMENT PRIOR TO MATURITY.
(B) THE MATURITY DATE SHOWN IS THE LESSER OF THE PUT, DEMAND, OR MATURITY DATE.
(C) SECURITIES ARE HELD IN CONNECTION WITH BOND INSURANCE FROM AMBAC, CAPITAL
GUARANTY, CONNIE LEE, FGIC, FSA OR MBIA.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
AMT -- ALTERNATIVE MINIMUM TAX
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
29
<PAGE>
NOVEMBER 30, 1995
Schedule of Investments
(Unaudited)
- --------------------------------------------
1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
- -------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
General Obligation Bonds 34%
Health Care Bonds 11%
Water & Sewer Bonds 14%
Housing Bonds 12%
Transportation Bonds 12%
Education Bonds 5%
Utility Bonds 2%
Other Revenue Bonds 7%
Cash Equivalents 2%
Alternative Minimum Tax Bonds 1%
% of Total Portfolio Investments
</TABLE>
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
MUNICIPAL BONDS -- 98.4%
MASSACHUSETTS -- 97.2%
Boston, Massachusetts GO,
6.500%, 07/01/12 $ 3,000 $ 3,255
Boston, Massachusetts GO,
Series A
5.650%, 02/01/09(A) 1,500 1,541
Chelsea, Massachusetts GO
6.000%, 06/15/02(A) 2,000 2,170
5.700%, 06/15/06(A) 1,000 1,068
Chelsea, Massachusetts School
Project Loan GO
6.000%, 06/15/04(A) 650 710
Lawrence, Massachusetts GO
5.375%, 09/15/05 410 416
6.250%, 02/15/09(A) 1,475 1,595
Lowell, Massachusetts GO
6.625%, 04/01/15(A) 1,000 1,084
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Lynn, Massachusetts, Water &
Sewer Commission Revenue Bond
5.250%, 12/01/05(A) $ 475 $ 498
Massachusetts Bay
Transportation Authority
Revenue Bond
5.500%, 03/01/07 1,500 1,554
5.600%, 03/01/08 1,885 1,958
7.000%, 03/01/08 2,000 2,335
Massachusetts State Education
Loan Revenue Bond, AMT
6.300%, 07/01/12 1,000 1,045
Massachusetts State GO
7.500%, 06/01/04 1,500 1,800
Massachusetts State GO, Series
A
6.250%, 07/01/02 2,500 2,750
Massachusetts State GO, Series
B
5.500%, 11/01/07 1,000 1,043
6.500%, 08/01/08 5,315 6,010
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond,
Brigham & Women's Hospital,
Issue D
6.250%, 07/01/01 500 536
6.750%, 07/01/13 1,500 1,603
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond,
Children's Hospital, Series E
6.250%, 10/01/09 1,000 1,058
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond, Dana
Farber Cancer Project, Series
G-1
6.250%, 12/01/09 1,175 1,234
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
30
<PAGE>
1784 BOND FUNDS
1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
</TABLE>
MASSACHUSETTS (CONTINUED)
<TABLE>
<S> <C> <C>
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond,
Emerson Hospital
5.800%, 08/15/18(A) $ 3,000 $ 3,034
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond,
Harvard University, Series M
5.750%, 12/01/11 1,000 1,044
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond, New
England Deaconess Hospital,
Series C
7.200%, 04/01/11 830 887
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond,
Newton-Wellesley Hospital,
Issue E
5.875%, 07/01/15(A) 3,000 3,101
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond,
Northeastern Project
7.125%, 10/01/10(A) 1,500 1,673
Massachusetts State Health &
Educational Facilities
Authority Revenue Bond,
Northeastern University,
Series E
6.500%, 10/01/12 1,000 1,091
Massachusetts State Housing
Finance Agency Revenue Bond
5.850%, 12/01/08(A) 1,245 1,281
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Massachusetts State Housing
Finance Agency Revenue Bond,
Residential Development
Project, Series A
6.875%, 11/15/11 $ 1,750 $ 1,886
Massachusetts State Housing
Finance Agency Revenue Bond,
Series A
6.300%, 10/01/13 4,950 5,049
Massachusetts State Housing
Finance Agency Revenue Bond,
Single Family Housing
Project, Series 14
7.700%, 12/01/14 1,980 2,091
Massachusetts State Industrial
Finance Agency Revenue Bond,
Babson College, Series A
6.375%, 10/01/09(A) 1,000 1,078
Massachusetts State Municipal
Wholesale Electric Revenue
Bond
6.750%, 07/01/17 1,500 1,718
Massachusetts State Municipal
Wholesale Electric Revenue
Bond, Series B
6.750%, 07/01/05 1,000 1,120
Massachusetts State Municipal
Wholesale Electric Revenue
Bond, Series D
6.000%, 07/01/05 1,000 1,079
Massachusetts State Resource
Recovery Revenue Bond,
Refusetech Project, Series A
6.150%, 07/01/02 900 947
6.300%, 07/01/05 1,000 1,051
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
31
<PAGE>
NOVEMBER 30, 1995
Schedule of Investments 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
(Unaudited)
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Massachusetts State Special
Obligation Revenue Bond
5.500%, 06/01/07 $ 2,000 $ 2,050
Massachusetts State Water
Pollution Abatement Trust
Revenue Bond, Pooled Loan
Program, Series 2
6.125%, 02/01/07 730 807
Massachusetts State Water
Resource Authority Revenue
Bond
7.250%, 04/01/01 2,500 2,816
5.875%, 11/01/04 2,500 2,681
6.000%, 11/01/06 2,000 2,135
6.250%, 11/01/10 3,175 3,350
Massachusetts State Water
Resource Authority Revenue
Bond, Series C
6.000%, 12/01/11 2,000 2,138
Nantucket Islands Land Bank,
Massachusetts GO
7.000%, 07/01/05 1,505 1,661
Nantucket, Massachusetts GO
6.800%, 12/01/11 1,425 1,555
Rockport, Massachusetts GO
6.800%, 12/15/02(A) 1,100 1,222
Southbridge, Massachusetts GO
6.375%, 01/01/12(A) 500 529
Worcester, Massachusetts GO
6.250%, 10/01/08(A) 430 470
-----------
TOTAL MASSACHUSETTS 84,807
-----------
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
PUERTO RICO -- 1.2%
Commonwealth of Puerto Rico GO,
Series A
6.000%, 07/01/06 $ 1,000 $ 1,069
-----------
TOTAL PUERTO RICO 1,069
-----------
TOTAL MUNICIPAL BONDS
(Cost $83,780) 85,876
-----------
CASH EQUIVALENTS -- 0.1%
Fidelity Tax-Exempt Money
Market Fund 18 18
Lehman Brothers Institutional
Tax-Free Money Market Fund 94 93
-----------
TOTAL CASH EQUIVALENTS
(Cost $111) 111
-----------
REPURCHASE AGREEMENT -- 1.5%
Lehman Government Securities
5.80%, dated 11/30/95,
matures 12/01/95, repurchase
price $1,300,210
(collateralized by various
U.S. Treasury Bonds ranging
in par value
$6,095 - $284,809,
8.125% - 9.125%,
05/15/18 - 08/15/20; total
market value $1,326,000) 1,300 1,300
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $1,300,000) 1,300
-----------
-----------
TOTAL INVESTMENTS -- 100.0%
(Cost $85,199) $ 87,287
-----------
-----------
</TABLE>
LEGEND
- ---------------------------------------------------------------
(A)SECURITIES ARE HELD IN CONNECTION WITH BOND INSURANCE FROM AMBAC, FGIC, FSA,
OR MBIA.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
AMT -- ALTERNATIVE MINIMUM TAX
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
32
<PAGE>
NOVEMBER 30, 1995 1784 BOND FUNDS
1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
Statement of Net Assets
(Unaudited)
- --------------------------------------------
1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
- -------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
General Obligation Bonds 19%
Industrial Development & Pollution Control Bonds 14%
Education Bonds 15%
Alternative Minimum Tax Bonds 9%
Housing Bonds 16%
Other Revenue Bonds 8%
Health Care Bonds 7%
Cash Equivalents 5%
Transportation Bonds 4%
Utility Bonds 3%
% of Total Portfolio Investments
</TABLE>
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
MUNICIPAL BONDS -- 94.1%
GUAM -- 1.6%
Guam Power Authority Revenue
Bond, Series A
5.900%, 10/01/08(B) $ 500 $ 537
-----------
PUERTO RICO -- 5.1%
Puerto Rico Commonwealth,
Industrial Medical &
Environmental Pollution
Control Facilities Financing
Authority Revenue Bond,
Series A
6.250%, 11/15/13 500 540
Puerto Rico, Highway &
Transportaion Authority
Revenue Bond, Series V
6.375%, 07/01/07 1,135 1,229
-----------
1,769
-----------
RHODE ISLAND -- 87.4%
Convention Center Authority,
Rhode Island, Series A
5.400%, 05/15/08(B) 500 509
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Cranston, Rhode Island GO
6.100%, 06/15/10(B) $ 1,000 $ 1,074
Cumberland, Rhode Island GO
5.900%, 10/01/06(A) 500 533
6.350%, 12/15/06 500 539
Foster & Gloucester, Rhode
Island GO
6.900%, 09/01/11(B) 500 544
Kent County, Rhode Island,
Water Authority General
Revenue Bond
6.000%, 07/15/08(B) 500 533
Pawtucket, Rhode Island GO
5.750%, 04/15/08(B) 500 528
Providence, Rhode Island GO
6.750%, 01/15/07(A) 500 544
6.750%, 01/15/08 1,015 1,099
Providence, Rhode Island,
Housing Development Revenue
Bond Barabara Jordan
Appartments Project, Series A
6.500%, 07/01/09(B) 485 509
Rhode Island, Clean Water
Protection Finance Agency
Revenue Bond
6.600%, 10/01/08(B) 500 548
Rhode Island, Clean Water
Protection Finance Agency
Revenue Bond, Providence Safe
Drinking Water Project,
Series A
6.500%, 01/01/09(B) 500 546
Rhode Island, Depositors
Economic Protection Revenue
Bond, Series A
6.500%, 08/01/07(B) 500 564
Rhode Island, Depositors
Economic Protection Revenue
Bond, Series B
5.800%, 08/01/12(B) 1,000 1,045
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
33
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
</TABLE>
RHODE ISLAND (CONTINUED)
<TABLE>
<S> <C> <C>
Rhode Island, Housing &
Mortgage Authority Homeowner
Opportunity, Series 13
6.700%, 10/01/15(B) $ 2,000 $ 2,101
Rhode Island, Housing &
Mortgage Finance,
Homeownership Opportunity
Series E-1 AMT
7.500%, 10/01/11(B) 1,000 1,074
Rhode Island, Housing &
Mortgage Revenue Bond
7.700%, 10/01/10 500 531
Rhode Island, Port Authority &
Economic Development Revenue
Bond, Shepard Building
Project, Series B
6.500%, 06/01/08(B) 500 553
6.750%, 06/01/15(B) 515 563
Rhode Island, State
Construction & Capital
Developmental Loan Revenue
Bond, Series B
6.250%, 05/15/05 1,000 1,074
Rhode Island, State Health &
Educational Building
Facilities Revenue Bond, Kent
Hospital
7.000%, 07/01/10(B) 500 558
Rhode Island, State Health &
Educational Building Higher
Educational Facilities
Revenue Bond, Miriam Hospital
7.250%, 04/01/11 500 528
Rhode Island, State Health &
Educational Building Higher
Educational Facilities
Revenue Bond, New England
Institute
5.900%, 03/01/10(B) 400 409
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Rhode Island, State Health &
Educational Building Higher
Educational Facilities
Revenue Bond, Roger Williams
Hospital
6.500%, 11/15/08(B) $ 500 $ 539
7.000%, 11/15/09(B) 545 608
7.200%, 11/15/14(B) 1,500 1,674
7.750%, 07/01/16(B) 1,000 1,056
Rhode Island, State Health &
Educational Building Higher
Educational Facilities
Revenue Bond, Salve Regina
Hospital
6.200%, 03/15/08(B) 1,000 1,064
Rhode Island, State Industrial
Facilities Revenue Bond,
Reference Cre Corporation
Project AMT
6.500%, 03/01/14(A) 500 510
Rhode Island, State Industrial
Facilities Revenue Bond,
Reference Mobil Oil Refining
6.000%, 11/01/14 2,850 2,936
Rhode Island, State Student
Loan Authority Revenue Bond
6.750%, 12/01/01 500 536
Rhode Island, State Student
Loan Authority Revenue Bond
Reference Series A
6.550%, 12/01/00 500 531
Rhode Island, State Student
Loan Authority Revenue Bond,
Reference Series B AMT
6.850%, 12/01/02 500 544
7.000%, 12/01/04 1,390 1,524
Rhode Island, Water Protection
Finance Agency Revenue Bond
6.750%, 10/01/13(B) 500 551
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
34
<PAGE>
1784 BOND FUNDS
1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
RHODE ISLAND (CONTINUED)
<TABLE>
<S> <C> <C>
Villa Excelsior, Rhode Island,
Housing Development Mortgage
Revenue Bond
6.650%, 07/01/12(B) $ 490 $ 519
Warwick, Rhode Island GO
6.600%, 11/15/06(B) 500 551
Westerly, Rhode Island GO
5.850%, 09/15/08 450 477
-----------
30,126
-----------
TOTAL MUNICIPAL BONDS
(Cost $30,835) 32,432
-----------
CASH EQUIVALENTS -- 2.0%
Fidelity Tax-Exempt Money
Market Fund 352 352
Lehman Brothers Institutional
Tax-Free Money Market Fund 350 350
-----------
TOTAL CASH EQUIVALENTS
(Cost $702,633) 702
-----------
REPURCHASE AGREEMENT -- 2.9%
Lehman Brothers 5.820%, dated
11/30/95, matures 12/1/95,
repurchase price $1,000,162
(collateralized by various
U.S. Treasury Bonds ranging
in par value
$4,425 - $203,435,
8.125% - 9.125%,
5/15/18 - 8/15/20; total
market value $1,020,000) 1,000 1,000
-----------
- ----------------------------------------------------------
VALUE
DESCRIPTION (000)
- ----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $1,000) $ 1,000
---------
TOTAL INVESTMENTS -- 99.0%
(Cost $32,537) 34,134
---------
TOTAL OTHER ASSETS AND LIABILITIES
NET -- 1.0% 336
---------
NET ASSETS:
Capital Shares (unlimited authorization -- no
par value) based on 3,339,750 outstanding
shares of beneficial interest 33,040
Accumulated Net Realized Loss on Investments
(167 )
Net Unrealized Appreciation on Investments
1,597
---------
TOTAL NET ASSETS -- 100.0% $ 34,470
---------
---------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $10.32
---------
---------
</TABLE>
LEGEND
- ---------------------------------------------------------------
(A) SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY
A MAJOR COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
(B) SECURITIES ARE HELD IN CONNECTION WITH BOND INSURANCE FROM
AMBAC, CONNIE LEE, FGIC, FHA, FSA, OR MBIA.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
AMT -- ALTERNATIVE MINIMUM TAX
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FHA -- FINANCIAL HOUSING AUTHORITY
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INVESTOR ASSURANCE
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
35
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
- --------------------------------------------
1784 CONNECTICUT TAX-EXEMPT INCOME FUND
- -------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Industrial Development & Pollution Control Bonds 5%
Health Care Bonds 17%
Other Revenue Bonds 9%
Cash Equivalents 13%
General Obligation Bonds 10%
Transportation Bonds 9%
Alternative Minimum Tax Bonds 10%
Housing Bonds 15%
Utility Bonds 11%
Education Bonds 1%
% of Total Portfolio Investments
</TABLE>
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
MUNICIPAL BONDS -- 89.0%
CONNECTICUT -- 74.1%
Bridgeport, Connecticut GO
6.125%, 03/01/05 $ 2,000 $ 2,114
8.750%, 08/15/05(B) 500 647
Bristol, Connecticut, Resource
Recovery Bond, Solid Waste
Revenue
6.500%, 07/01/14 3,000 3,225
Connecticut State Airport
Revenue Bond, Bradley
International Airport
7.650%, 10/01/12(B) 2,000 2,350
Connecticut State Clean Water
Funding Revenue Bond
5.600%, 06/01/09 750 778
7.000%, 01/01/11 300 335
Connecticut State Development
Bond
6.550%, 06/15/09(B) 500 556
Connecticut State Development
Bond, Duncaster Project
6.700%, 09/01/07 3,350 3,652
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Connecticut State Development
Bond, Jewish Community Center
AMT
6.400%, 09/01/07(A) $ 400 $ 438
Connecticut State Development
Bond, New England Power
Project
7.250%, 10/15/15 500 543
Connecticut State Development
Bond, Pfizer Project
6.550%, 02/15/13 250 275
Connecticut State Development
Bond, Series A
6.000%, 11/15/08 500 524
Connecticut State Health &
Education Facilities Bond,
Noble Nursing Home
6.000%, 11/01/09(B) 1,000 1,068
Connecticut State Health &
Educational Facilities Bond,
Bridgeport Hospital, Series A
6.500%, 07/01/05(B) 250 279
6.550%, 07/01/06(B) 400 447
6.500%, 07/01/12(B) 500 539
Connecticut State Health &
Educational Facilities Bond,
Choate Rosemary Hall, Series
A
6.800%, 07/01/15(B) 750 837
Connecticut State Health &
Educational Facilities Bond,
Connecticut State University
System, Series A
5.125%, 11/01/12(B) 500 486
Connecticut State Health &
Educational Facilities Bond,
Danbury Hospital, Series E
6.500%, 07/01/05(B) 500 552
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
36
<PAGE>
1784 BOND FUNDS
1784 CONNECTICUT TAX-EXEMPT INCOME FUND
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
</TABLE>
CONNECTICUT (CONTINUED)
<TABLE>
<S> <C> <C>
Connecticut State Health &
Educational Facilities Bond,
Highland Nursing Home
7.050%, 11/01/09(B) $ 1,000 $ 1,161
Connecticut State Health &
Educational Facilities Bond,
New Britian Hospital
6.000%, 07/01/09(B) 500 531
Connecticut State Health &
Educational Facilities Bond,
Newington Children's
Hospital, Series A
5.850%, 07/01/07(B) 1,110 1,184
Connecticut State Health &
Educational Facilities Bond,
Sacred Heart University,
Series A
6.600%, 07/01/07(A) 300 331
Connecticut State Health &
Educational Facilities Bond,
St. Raphael Hospital
6.200%, 07/01/14 500 529
Connecticut State Health &
Educational Facilities Bond,
University of Hartford,
Series D
6.750%, 07/01/12 250 256
Connecticut State Health &
Educational Facilities Bond,
Wadsworth Nursing Home
7.125%, 11/01/14(B) 500 569
Connecticut State Higher
Education Revenue Bond,
Family Education Loan
Program, Series A AMT
7.000%, 11/15/05 670 719
Connecticut State Higher
Education Revenue Bond,
Series A
6.500%, 11/15/00 275 295
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
Connecticut State Housing
Finance Bond, Housing
Mortgage Finance Program,
Series A AMT
7.500%, 11/15/09 $ 10 $ 11
Connecticut State Housing
Finance Bond, Housing
Mortgage Finance Program,
Series B
7.200%, 11/15/01(A) 500 528
6.050%, 11/15/03 500 531
6.350%, 11/15/06 400 427
Connecticut State Housing
Finance Bond, Housing
Mortgage Finance Program,
Series B1
7.550%, 11/15/08 1,095 1,185
Connecticut State Housing
Finance Bond, Housing
Mortgage Finance Program,
SubSeries B1
6.000%, 05/15/08 300 316
Connecticut State Housing
Finance Bond, Housing
Mortgage Finance Project,
Series A
6.200%, 05/15/14 650 666
Connecticut State Resource
Recovery Bond, Bridgeport
Resources, Series A
7.625%, 01/01/09 600 631
Connecticut State Resource
Recovery Bond, Series A
5.375%, 11/15/10(B) 2,000 1,925
Connecticut State Resource
Recovery Bond, Series A AMT
7.125%, 11/15/08(A) 250 265
8.000%, 11/15/08 1,500 1,667
8.000%, 11/15/15 1,500 1,665
Connecticut State Resource
Recovery Bond, Wallingford
Resources, Series 1-Sub AMT
6.700%, 11/15/02 800 857
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
37
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
</TABLE>
CONNECTICUT (CONTINUED)
<TABLE>
<S> <C> <C>
Connecticut State Special Tax
Bond, Series A
5.400%, 09/01/09(B) $ 1,135 $ 1,148
Connecticut State Special Tax
Bond, Transportation
Infrastructure, Series A
5.400%, 09/01/09 500 503
5.600%, 06/01/13 500 504
Connecticut State Special Tax
Bond, Transportation
Infrastructure, Series B
6.100%, 09/01/08(B) 500 558
6.250%, 10/10/09 500 533
5.500%, 10/01/11 1,000 1,006
5.600%, 10/01/12 500 506
5.600%, 10/01/13 1,000 1,009
Connecticut State, Certificates
of Participation, Middletown
Courthouse Facilities Project
6.250%, 12/15/08(B) 1,500 1,613
Connecticut State, Series A GO
6.500%, 03/15/07 750 824
Connecticut State, Series C GO
5.800%, 08/15/08 1,500 1,586
Hartford, Connecticut, GO
5.700%, 10/01/12(B) 500 511
5.750%, 10/01/13(B) 1,000 1,019
New Haven, Connecticut Revenue
Bond, Air Right Packaging
Facility
6.500%, 12/01/15(B) 2,000 2,150
South Central Connecticut
Regional Water Authority
Revenue Bond, Series A
6.000%, 08/01/09(B) 985 1,050
6.000%, 08/01/10(B) 1,045 1,106
Stratford, Connecticut GO
5.600%, 04/15/12(B) 440 443
-----------
TOTAL CONNECTICUT 51,963
-----------
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
GUAM -- 2.7%
Guam Government Limited
Obligation Highway, Series A
6.250%, 05/01/07(B) $ 750 $ 812
Guam Power Authority Revenue
Bond, Series A
5.900%, 10/01/08(B) 1,000 1,074
-----------
1,886
-----------
PUERTO RICO -- 12.2%
Puerto Rico Commonwealth,
Highway & Transportation
Revenue Bond, Series X
5.300%, 07/01/04 700 719
Puerto Rico Industrial, Medical
& Environmental Revenue Bond,
Abbott Chemicals Project
6.500%, 07/01/09 500 501
Puerto Rico Industrial, Medical
& Environmental Revenue Bond,
Pepsico Project
6.250%, 11/15/13 2,750 2,970
Puerto Rico Municipal Finance
Agency, Revenue Bond, Series
A
6.000%, 07/01/09(B) 2,650 2,822
Puerto Rico Telephone Revenue
Bond, Series L
5.750%, 01/01/08 1,000 1,039
6.000%, 01/01/12 500 516
-----------
TOTAL PUERTO RICO 8,567
-----------
TOTAL MUNICIPAL BONDS
(Cost $59,200) 62,416
-----------
CASH EQUIVALENTS -- 1.0%
Fidelity Tax-Exempt Money
Market Fund 345 345
Lehman Brothers Institutional
Tax-Free Money Market Fund 345 345
-----------
TOTAL CASH EQUIVALENTS
(Cost $690) 690
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
38
<PAGE>
1784 STOCK FUNDS
1784 CONNECTICUT TAX-EXEMPT INCOME FUND 1784 GROWTH AND INCOME FUND
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------------
REPURCHASE AGREEMENT -- 11.7%
Lehman Brothers
5.80%, dated 11/30/95,
matures 12/01/95, repurchase
price $8,201,326
(collateralized by various
U.S. Treasury Notes ranging
in par value
$35,400 -- $1,627,480,
8.125% -- 9.125%,
05/15/18 -- 08/15/20; total
$8,200 market value
$8,365,353) $ 8,200 $ 8,200
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $8,200) 8,200
-----------
TOTAL INVESTMENTS -- 101.7%
(Cost $68,090) 71,306
-----------
TOTAL OTHER ASSETS AND LIABILITIES,
NET -- (1.7)% (1,186 )
-----------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 6,690,158 outstanding
shares of beneficial interest 66,858
Accumulated Net Realized Gain on
Investments 46
Net Unrealized Appreciation on
Investments 3,216
-----------
TOTAL NET ASSETS -- 100.0% $ 70,120
-----------
-----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $10.48
-----------
-----------
</TABLE>
LEGEND
- ---------------------------------------------------------------
(A) SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY
A MAJOR COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
(B) SECURITIES ARE HELD IN CONNECTION WITH BOND INSURANCE FROM AMBAC, CAPITAL
GUARANTY, CGIC, CONNIE LEE, FGIC, FSA OR MBIA.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
AMT -- ALTERNATIVE MINIMUM TAX
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INVESTOR ASSURANCE
- ---------------------------------------------------------------
1784 GROWTH AND INCOME FUND
- -------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Consumers Non-Durables 30%
Basic Industries 8%
Technology 24%
Energy 6%
Financial 9%
Consumer Durables 5%
Cash Equivalents 4%
Health Care 6%
Capital Goods/Construction 6%
Transportation 2%
% of Total Portfolio Investments
</TABLE>
<TABLE>
<S> <C> <C>
- -------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------
COMMON STOCK -- 95.8%
AIR TRANSPORTATION -- 2.3%
Delta Air Lines 25,000 $ 1,941
UAL(A) 20,000 4,185
-----------
6,126
-----------
BANKS -- 0.9%
First Tennessee National Bank 40,000 2,420
-----------
BASIC INDUSTRIES -- 7.5%
AK Steel Holding 65,000 2,251
Bemis 80,000 2,090
Cyprus Amax Minerals 70,000 1,925
E.I. Du Pont de Nemours 50,000 3,325
International Paper 48,624 1,854
Newmont Mining 50,000 2,156
Nucor 75,000 3,740
Willamette Industries 50,000 3,025
-----------
20,366
-----------
BEVERAGES -- 2.2%
Coca Cola 79,056 5,988
-----------
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
39
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
- -------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------
CAPITAL GOODS/ MACHINERY
CONSTRUCTION -- 6.0%
Easco 125,000 $ 906
Fluor 50,000 3,250
General Electric 40,000 2,690
Hardinge 109,375 2,748
Nordson 74,961 4,311
UCAR International(A) 80,000 2,550
-----------
16,455
-----------
CONSUMER DURABLES -- 2.8%
Newell 100,000 2,638
Rentokil Group 400,000 1,977
Sealed Air(A) 100,000 3,049
-----------
7,664
-----------
CONSUMER NON-DURABLES/
WHOLESALE TRADE -- 1.1%
Gillette 56,442 2,928
-----------
ENERGY -- 6.3%
Arakis Energy(A) 150,000 581
Total S.A. ADR 100,000 3,088
Exxon 75,000 5,803
Royal Dutch Petroleum ADR 22,592 2,900
Schlumberger 75,000 4,763
-----------
17,135
-----------
ENTERTAINMENT -- 2.0%
Walt Disney 90,000 5,411
-----------
FINANCIAL -- 8.9%
American International Group 35,694 3,204
Equity Inns 200,000 2,300
Felcor Suite Hotels 140,000 4,060
Hospitality Properties Trust 60,000 1,568
Litchfield Financial(A) 125,000 1,719
MBNA 50,000 2,019
Mid-America Apartment
Communities 75,000 1,697
RFS Hotel Investments 281,000 4,249
- -------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------
Storage USA 50,000 $ 1,519
Winston Hotels 150,000 1,781
-----------
24,116
-----------
HEALTH CARE -- 6.4%
Abbott Laboratories 84,633 3,438
Amgen(A) 30,000 1,489
Biogen(A) 20,000 1,090
Medtronic 40,000 2,195
Merck 60,000 3,713
Pyxis(A) 120,000 1,800
Roche Holdings ADR(A) 50,000 3,784
-----------
17,509
-----------
MERCHANDISE STORES -- 11.3%
Bed Bath & Beyond(A) 225,000 7,397
Carrefour Supermarche(A) 8,000 4,416
Home Depot 142,300 6,315
Hornbach Holdings 6,000 4,812
Moebel Walther(A) 7,500 2,774
Wal-Mart Stores 209,802 5,035
-----------
30,749
-----------
MISCELLANEOUS CONSUMER
SERVICES -- 1.0%
Cintas 30,000 1,380
Loewen Group 50,000 1,325
-----------
2,705
-----------
RESTAURANTS -- 8.6%
Lone Star Steakhouse &
Saloon(A) 220,000 8,635
Outback Steakhouse(A) 70,000 2,555
Papa John's International(A) 125,000 5,359
Wetherspoon 700,000 6,822
-----------
23,371
-----------
TECHNOLOGY -- 23.4%
AVX(A) 40,000 1,150
Bay Networks(A) 129,375 5,822
Cambridge Technology
Partners(A) 50,000 2,475
Electronic Arts(A) 26,667 910
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
40
<PAGE>
1784 STOCK FUNDS
1784 GROWTH AND INCOME FUND
<TABLE>
<S> <C> <C>
- -------------------------------------------------------------
SHARES/PAR
DESCRIPTION (000) VALUE (000)
TECHNOLOGY (CONTINUED)
- ------------------------------------------------------------$-
Intel 105,000 6,392
Microsoft(A) 55,000 4,792
Motorola 75,000 4,594
Nokia ADR 40,000 2,170
Oracle System(A) 100,000 4,538
Pinnacle Micro(A) 100,000 2,750
Robotic Vision Systems(A) 100,000 2,613
Sap AG(A) 113,250 17,834
Security Dynamics
Technologies(A) 40,000 1,980
Silicon Graphics(A) 30,000 1,095
Texas Instrument 80,000 4,630
-----------
63,745
-----------
TELEPHONES & TELECOMMUNICATION --
5.1%
AT&T 100,000 6,600
Paging Network(A) 84,444 1,879
US West 50,000 1,563
US West Media Group(A) 50,000 900
Vodafone Group(A) 85,000 3,071
-----------
14,013
-----------
TOTAL COMMON STOCK
(Cost $192,786) 260,701
-----------
REPURCHASE AGREEMENT -- 4.3%
Lehman Government Securities
5.820%, dated 11/30/95, matures
12/01/95, repurchase price
$11,701,892 (collateralized by
various U.S. Treasury Bonds
ranging in par value $53,100 -
$2,441,220, 8.125% -- 9.125%,
05/15/18 -- 08/15/20; total
market value $11,934) $ 11,700 11,700
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $11,700) 11,700
- -------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------------
CASH EQUIVALENTS -- 0.0%
Dreyfus U.S. Government
Securities Money Market Fund $ 7 $ 7
Lehman Brothers Institutional
U.S. Goverment Obligations
Money Market Fund 11 11
-----------
TOTAL CASH EQUIVALENTS
(Cost $18) 18
-----------
TOTAL INVESTMENTS -- 100.1%
(Cost $204,504) 272,419
-----------
TOTAL OTHER ASSETS AND LIABILITIES,
NET -- (0.1)% (374 )
-----------
NET ASSETS:
Capital Shares (unlimited authorization -- no
par value) based on 20,105,543 outstanding
shares of beneficial interest 210,048
Accumulated Net Realized Loss on Investments
(6,321 )
Net Unrealized Appreciation on Investments 67,915
Undistributed Net Investment Income 403
-----------
TOTAL NET ASSETS -- 100.0% $ 272,045
-----------
-----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $13.53
-----------
-----------
</TABLE>
LEGEND
- ---------------------------------------------------------------
(A) NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
41
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
- --------------------------------------------
1784 ASSET ALLOCATION FUND
- -------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Common Stock 54%
U.S. Treasury Obligations 24%
Corporate Obligations 9%
Cash Equivalents 7%
U.S. Government Mortgage-Backed Bonds 1%
U.S. Government Agency Obligations 1%
Asset-Backed Securities 3%
% of Total Portfolio Investments
</TABLE>
<TABLE>
<S> <C> <C>
- -------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------
COMMON STOCK -- 54.1%
AUTOMOTIVE -- 1.5%
Ford Motor 6,600 $ 186
-----------
BASIC INDUSTRIES -- 2.2%
E.I. Du Pont de Nemours 3,000 199
Willamette Industries 1,000 61
-----------
260
-----------
BROADCASTING, NEWSPAPERSE &
ADVERTISING -- 2.0%
Capital Cities ABC 2,000 247
-----------
CAPITAL GOODS/ MACHINERY
CONSTRUCTION -- 3.5%
Fluor 3,400 221
General Electric 3,000 202
-----------
423
-----------
CONSUMER NON-DURABLE -- 8.5%
Nestle ADR 4,000 214
PepsiCo 5,000 276
- -------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------
Phillip Morris 3,500 $ 307
Sysco 7,500 230
-----------
1,027
-----------
ENERGY -- 8.8%
Baker Hughes 8,000 163
Enron 5,000 188
Exxon 4,000 309
Mobil 1,800 188
Schlumberger LTD 3,500 222
-----------
1,070
-----------
FINANCIAL -- 7.1%
American International Group 3,000 269
BankAmerica 3,000 191
Federal National Mortgage
Association 2,400 263
Wachovia 3,000 135
-----------
858
-----------
HEALTH CARE -- 9.8%
Bristol-Myers Squibb 2,800 225
Genzyme-General Division(A) 2,800 183
Johnson & Johnson 3,000 260
Merck 3,200 198
Procter & Gamble 3,800 327
-----------
1,193
-----------
TECHNOLOGY -- 5.6%
AMP 4,000 161
Ericsson LTD 6,650 158
Raytheon 4,000 178
Thermo Electron(A) 3,600 178
-----------
675
-----------
TELEPHONES & COMMUNICATION --
1.6%
AT&T 3,000 198
-----------
TRANSPORTATION & RAILROADS -- 1.8%
CSX 2,500 219
-----------
UTILITIES -- 1.7%
NYNEX 4,000 199
-----------
TOTAL COMMON STOCK
(Cost $5,287) 6,555
-----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
42
<PAGE>
1784 STOCK FUNDS
1784 ASSET ALLOCATION FUND
<TABLE>
<S> <C> <C>
- -------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 24.2%
U.S. Treasury Bonds
8.125%, 08/15/19 $ 100 $ 123
7.250%, 08/15/22 500 564
7.125%, 02/15/23 300 334
U.S. Treasury Notes
6.000%, 06/30/96 80 80
6.500%, 09/30/96 100 101
5.125%, 06/30/98 300 298
5.000%, 01/31/99 100 99
5.500%, 04/15/00 200 200
6.125%, 07/31/00 600 614
6.500%, 08/15/05 500 526
-----------
TOTAL U. S. TREASURY OBLIGATIONS
(Cost $2,833) 2,939
-----------
U.S. GOVERNMENT MORTGAGE-BACKED BOND -- 1.6%
Government National Mortgage
Association
7.500%, 06/12/23 187 190
-----------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED BOND
(Cost $195) 190
-----------
MEDIUM TERM NOTE -- 0.8%
Federal National Mortgage
Association
7.720%, 12/16/96 100 102
-----------
TOTAL MEDIUM TERM NOTE
(Cost $100) 102
-----------
CORPORATE OBLIGATIONS -- 8.8%
Allstate
5.875%, 06/15/98 100 100
Associates Corporation of North
America
9.700%, 05/01/97 100 105
AT&T
7.000%, 05/15/05 200 211
Chase Manhattan
8.000%, 06/15/99 200 212
Ford Motor Credit
6.750%, 05/15/05 100 102
General Motors Acceptance
Corporation
6.625%, 10/01/02 200 204
- -------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------------
North Carolina National Bank
8.500%, 11/01/96 $ 100 $ 103
Private Export Funding
8.400%, 07/31/01 25 28
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $1,043) 1,065
-----------
ASSET-BACKED SECURITIES -- 3.0%
Ford Credit Grantor Trust
7.300%, 10/15/99 67 68
Premier Auto Trust
4.650%, 02/02/99 89 88
Signet Credit Card Master Trust
5.250%, 04/15/00 100 99
Standard Credit Card Master
Trust
9.000%, 08/07/96 100 104
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $354) 359
-----------
REPURCHASE AGREEMENT -- 4.1%
Lehman Government Securities
5.820%, dated 11/30/95,
matures 12/01/95, repurchase
price $500,081
(collateralized by various
U.S. Treasury Bonds ranging
in par value $2,655 -
$122,061, 8.125% -
9.125%,05/15/18 - 08/15/20;
total market value $510,000) 500 500
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $500) 500
-----------
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
43
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<S> <C> <C>
- -------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------------
CASH EQUIVALENTS -- 3.0%
Dreyfus U.S. Government Cash
Management Money Market Fund $ 180 $ 180
Lehman Brothers Institutional
U.S. Government Money Market
Fund 178 178
-----------
TOTAL CASH EQUIVALENTS
(Cost $358) 358
-----------
TOTAL INVESTMENTS -- 99.6%
(Cost $10,670) 12,068
-----------
TOTAL OTHER ASSETS AND LIABILITIES,
NET -- 0.4% 50
-----------
NET ASSETS:
Capital Shares (unlimited authorization -- no
par value) based on 1,001,385 outstanding
shares of beneficial interest 10,345
Accumulated Net Realized Gain on Investments
318
Net Unrealized Appreciation on Investments
1,398
Undistributed Net Investment Income 57
-----------
TOTAL NET ASSETS -- 100.0% $ 12,118
-----------
-----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $12.10
-----------
-----------
</TABLE>
LEGEND
- ---------------------------------------------------------------
(A) NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
44
<PAGE>
NOVEMBER 30, 1995 1784 STOCK FUNDS
1784 INTERNATIONAL EQUITY FUND
Statement of Net Assets
(Unaudited)
- --------------------------------------------
1784 INTERNATIONAL EQUITY FUND
- -------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Japan 26%
Other Europe 14%
United Kingdom 14%
Emerging Markets 12%
France 8%
Other Pacific Rim 7%
Netherlands 6%
Germany 5%
Cash Equivalents 4%
Hong Kong 4%
% of Total Portfolio Investments
</TABLE>
<TABLE>
<S> <C> <C>
- -------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------
FOREIGN COMMON STOCKS -- 93.4%
ARGENTINA -- 1.1%
Cia Naviera Perez Companc,
Series B 185,234 $ 904
Telefonica de Argentina ADR 34,200 838
YPF Sociedad Anonima ADR 38,600 753
-----------
2,495
-----------
AUSTRALIA -- 3.5%
Brambles Industries 112,100 1,225
Broken Hill Proprietary 132,000 1,798
Mayne Nickless 256,200 1,181
News Corporation 289,000 1,517
QBE Insurance Group 192,800 869
Western Mining 229,000 1,537
-----------
8,127
-----------
BRAZIL -- 0.5%
Cia Sider Paulista 338,100 360
Compania Energie de Minas ADR 26,651 591
White Martins SA 233,765,500 227
-----------
1,178
-----------
- -------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------
CHILE -- 0.6%
Empresa Nacional de Electridad
SA ADR 40,650 $ 813
Five Arrows Chile Fund 248,000 620
-----------
1,433
-----------
CHINA -- 1.0%
Guangdong Investment 1,412,000 849
Shangri-La Asia 832,000 989
Yizheng Chemical Fibre 1,742,100 426
-----------
2,264
-----------
COLUMBIA -- 0.3%
Carulla SA ADR 101,940 765
-----------
DENMARK -- 0.7%
Tele Danmark AS, Series B 29,200 1,592
-----------
FRANCE -- 7.7%
Accor 9,912 1,206
Alcatel Alsthom 18,900 1,578
Castorama Dubois Investisse 17,245 2,736
Groupe Danone 5,047 792
L'Oreal 6,490 1,611
LVMH 14,570 2,780
Lyonnaise Des Eaux Dumez 6,200 595
Promodes 11,640 2,578
Roussel-Uclaf 14,960 2,265
Television Francaise TFI 18,500 1,832
-----------
17,973
-----------
GERMANY -- 3.5%
Degussa 6,780 2,163
Deutsche Pfandbrief & Hypobank 38,060 1,448
GEA AG 860 311
Gehe AG 7,240 3,286
Gehe AG-New 825 370
Hochtief AG 1,190 534
-----------
8,112
-----------
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
45
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<S> <C> <C>
- -------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------
HONG KONG -- 3.7%
China Light & Power 237,500 $ 1,118
Giordano International 1,000,000 898
Hong Kong Telecommunications 656,800 1,117
HSBC Holdings 68,100 1,004
Hutchison Whampoa 243,000 1,373
Sun Hung Kai Propeties 118,400 953
Swire Pacific, Series A 155,500 1,176
Television Broadcasts 273,500 1,032
-----------
8,671
-----------
HUNGARY -- 0.2%
Gedeon Richter 27,000 435
-----------
INDIA -- 0.7%
Mahindra & Mahindra GDR 50,000 569
Reliance Industries GDR 24,300 307
Tata Engineering & Locom GDR 33,000 643
-----------
1,519
-----------
INDONESIA -- 0.7%
PT Astra International 450,000 897
Pt Indorama Synthetics 230,000 755
-----------
1,652
-----------
IRELAND -- 0.4%
Cement Roadstone 130,826 911
-----------
ITALY -- 3.2%
Edison SPA 204,900 819
Luxottica Group ADR 50,300 2,678
Sasib SPA 440,000 1,840
Stet Societa' Finanziara
Telefonica SPA 764,800 2,078
-----------
7,415
-----------
JAPAN -- 25.8%
Canon Sales 160,000 3,971
Citizen Watch 313,000 2,306
Daiichi Pharmaceutical 151,000 2,052
Dainippon Ink & Chemical 440,000 2,041
Fujitsu 200,000 2,364
- -------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------
Hoya 94,000 $ 2,805
Inax 85,000 812
Kao 135,000 1,662
Keyence 20,000 2,462
Kyocera 52,000 4,123
Mitsubishi Bank 107,000 2,340
NGK Spark Plug 102,000 1,316
Nikon 280,000 4,026
Nippon Comsys 163,700 1,725
Nippon Express 280,000 2,435
Sangetsu 34,000 737
Sanwa Bank 125,000 2,425
Sanyo Electric 550,000 2,871
Secom 41,000 2,774
Sharp 213,000 3,021
Shimano 90,000 1,578
TDK 42,000 2,135
Tokio Marine & Fire Insurance 290,000 3,314
Toppan Printing 201,000 2,613
York Benimaru 63,000 2,339
-----------
60,247
-----------
MALAYSIA -- 0.9%
Genting Berhad 99,000 855
Renong Berhad 410,000 598
Sime Darby Berhad 290,000 749
-----------
2,202
-----------
MEXICO -- 1.5%
Cifra S.A. de C.V. ADR * 710,300 796
Coca-Cola Femsa S.A. ADR 41,000 840
Desc de C.V. SA * 49,700 659
Grupo Industrial Durango ADR * 68,100 502
Telefonos De Mexico ADR 21,100 696
-----------
3,493
-----------
NETHERLANDS -- 6.2%
Getronics 38,856 1,746
Koninklijke Ahold 85,064 3,371
Philips Electronics 81,200 3,198
Randstad Holdings 69,200 2,905
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
46
<PAGE>
1784 STOCK FUNDS
1784 INTERNATIONAL EQUITY FUND
<TABLE>
<S> <C> <C>
- -------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------
</TABLE>
NETHERLANDS (CONTINUED)
<TABLE>
<S> <C> <C>
Wolters Kluwer 39,035 $ 3,296
-----------
14,516
-----------
NEW ZEALAND -- 0.3%
Carter Holt Harvey 299,200 631
-----------
NORWAY -- 0.4%
Norsk Hydro 20,200 823
-----------
PHILIPPINES -- 0.8%
Manila Electric, Series B 128,000 987
Philippine Long Distance
Telephone ADR 14,800 829
-----------
1,816
-----------
POLAND -- 0.4%
Elektrim 155,000 536
Mostostal Export D.R. * 137,000 294
-----------
830
-----------
PORTUGAL -- 0.4%
Banco Comercial Portugues 35,000 459
Jeronimo Martins 9,200 498
-----------
957
-----------
SINGAPORE -- 2.7%
City Developments 201,200 1,384
Development Bank of Singapore 131,000 1,532
Fraser & Neave 120,000 1,429
Keppel 226,600 1,864
-----------
6,209
-----------
SOUTH AFRICA -- 0.2%
De Beers Consolidated Mines ADR 13,900 386
-----------
SOUTH KOREA -- 0.6%
Korea Fund 69,446 1,493
-----------
SPAIN -- 3.0%
Empresa Nacional de Electridad
SA 55,100 2,965
Gas Natural, Series E 22,100 3,144
Repsol SA 28,000 884
-----------
6,993
-----------
- -------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------
SWEDEN -- 2.0%
Atlas Copco, Series A 135,100 $ 2,038
Atlas Copco, Series B 15,000 223
Ericsson L M, Series B 99,000 2,330
-----------
4,591
-----------
SWITZERLAND -- 4.2%
BBC Brown Boveri 3,550 4,083
Nestle SA 1,380 1,473
Roche Holding Genusscheine 555 4,199
-----------
9,755
-----------
TAIWAN -- 0.7%
Advanced Semcond Engineer GDR * 46,000 506
Taipei Fund * 14 1,015
-----------
1,521
-----------
THAILAND -- 1.0%
Bangkok Bank 58,600 624
Electricity Generating Public * 220,000 752
United Communication Industry,
Series F 75,100 902
-----------
2,278
-----------
TURKEY -- 0.1%
Arcelik A.S. 1,470,354 145
-----------
UNITED KINGDOM -- 14.2%
BOC Group 169,400 2,280
British Airport Authority 244,900 1,839
British Petroleum 196,383 1,545
BTR 295,900 1,514
EMAP 203,200 1,781
Farnell Electronic 200,700 2,090
Granada Group 206,000 2,010
Invesco 405,000 1,642
Morgan Crucible 355,000 2,199
Reckitt & Colman 220,000 2,254
Reuters Holdings 177,900 1,679
Royal Bank of Scotland 219,000 1,866
Security Services 105,700 1,492
Standard Chartered 284,574 2,639
Williams Holdings 304,600 1,547
WPP Group 906,300 2,190
</TABLE>
(CONTINUED)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
47
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited) 1784 INTERNATIONAL EQUITY FUND
- -------------------------------------------------------------
SHARES/PAR
DESCRIPTION (000) VALUE (000)
- -------------------------------------------------------------
UNITED KINGDOM (CONTINUED)
<TABLE>
<S> <C> <C>
Zeneca Group 115,400 $ 2,328
-----------
32,895
-----------
VENEZUELA -- 0.2%
Corimon S.A. ADR * 66,410 249
Mavesa S.A. ADR 144a 32,800 73
Mavesa SA ADR 91,765 206
-----------
528
-----------
TOTAL FOREIGN COMMON STOCKS
(Cost $205,890) 216,851
-----------
PREFERRED STOCKS -- 2.5%
BRAZIL -- 0.8%
Banco Brandesco SA 91,784,246 793
Brasmotor SA 2,240,000 471
Telecom Brasileiras SA 13,021,300 642
-----------
1,906
-----------
GERMANY -- 1.7%
Fielmann 42,000 2,188
Friedrich Grohe AG 2,900 602
Gea AG 3,710 1,181
-----------
3,971
-----------
TOTAL PREFERRED STOCKS
(Cost $6,115) 5,877
-----------
CASH EQUIVALENTS -- 0.0%
UNITED STATES -- 0.0%
Dreyfus U.S. Government
Securities Money Market Fund $ 45 $ 45
Lehman Brothers Institutional
U.S. Government Money Market
Fund 44 44
-----------
TOTAL CASH EQUIVALENTS
(Cost $89) 89
-----------
- ----------------------------------------------------------
DESCRIPTION VALUE
PAR (000) (000)
- ----------------------------------------------------------
REPURCHASE AGREEMENT -- 6.8%
Lehman Government Securities
5.820%, dated November 30, 1995, due
December 1, 1995, repurchase price
$15,902,571 (collateralized by
various U.S. Treasury Bonds
ranging in par value
$79,650 - $3,661,830,
8.125% - 9.125%,
05/15/18 - 08/15/20;
total market value $16,218,000) $15,900
$ 15,900
---------
TOTAL REPURCHASE AGREEMENT
(Cost $15,900) 15,900
---------
TOTAL INVESTMENTS -- 102.7%
(Cost $227,994) 238,717
---------
TOTAL OTHER ASSETS AND LIABILITIES -- (2.7)%
(6,312 )
---------
NET ASSETS:
Capital shares (unlimited authorization -- no
par value), based on 21,238,162 outstanding
shares of beneficial interest 215,076
Accumulated Net Realized Gain on Investments
1,057
Accumulated Net Realized Gain on Foreign
Currency Transactions 4,178
Net Unrealized Depreciation on Forward Foreign
Currency Contracts, Currency and
Transactions of Other Assets and Liabilities
in Foreign Currency (240 )
Net Unrealized Appreciation on Investments
10,723
Undistributed Net Investment Income 1,611
---------
TOTAL NET ASSETS -- 100.0% $232,405
---------
---------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $ 10.94
---------
---------
</TABLE>
LEGEND
- ---------------------------------------------------------------
ADR -- AMERICAN DEPOSITORY RECEIPTS
GDR -- GLOBAL DEPOSITORY RECEIPTS
* NON-INCOME PRODUCING SECURITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
48
<PAGE>
AS OF NOVEMBER 30, 1995 1784 FUNDS
Statement of Assets and Liabilities
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1784
MASSACHUSETTS
TAX-EXEMPT
INCOME FUND
(000)
-------------
-------------
<S> <C>
ASSETS
Investments at Market Value (Cost $85,199) $87,287
Receivable for Investment Securities Sold 3,131
Receivable for Accrued Interest 1,541
Other Assets 1,898
-------------
Total Assets 93,857
-------------
LIABILITIES
Payable for Investment Securities Purchased 3,293
Other Liabilities 382
-------------
Total Liabilities 3,675
-------------
NET ASSETS
Capital Shares (unlimited authorization -- no
par value) based on 8,937,164 outstanding
shares of beneficial interest 89,182
Accumulated Net Realized Loss on Investments (1,088)
Net Unrealized Appreciation on Investments 2,088
-------------
TOTAL NET ASSETS $90,182
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE $10.09
-------------
-------------
</TABLE>
(CONTINUED)
THE ACCOMPANYING STATEMENTS ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
49
<PAGE>
FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 1995
Statements of Operations (000)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1784
1784 U.S.
U.S. 1784 1784 GOVERNMENT
TREASURY TAX-FREE SHORT-TERM MEDIUM-TERM 1784
MONEY MARKET MONEY MARKET INCOME INCOME INCOME
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INCOME:
Dividend Income $ -- $ -- $ -- $ -- $ --
Interest Income 1,859 11,901 2,135 5,073 7,080
Less: Foreign Taxes Withheld -- -- -- -- --
------ ------------ ------ ------ ------------
Total Income 1,859 11,901 2,135 5,073 7,080
------ ------------ ------ ------ ------------
EXPENSES:
Investment Advisory Fees 126 1,148 161 524 740
Waiver of Investment Advisory
Fees -- (201) (16) (99) (140)
Reimbursement of Expenses by
Adviser -- -- -- (31) (30)
Administrator Fees 34 314 35 77 109
Waiver of Administrator Fees (34) -- (35) -- --
12b-1 Fees -- -- 80 177 250
Waiver of 12b-1 Fees -- -- (80) (177) (250)
Transfer Agent Fees & Expenses 19 29 23 25 22
Waiver of Transfer Agent Fees -- -- (22) -- --
Fund Accounting Fees 12 12 15 16 11
Registration Fees 12 9 4 2 27
Trustee Fees 1 5 -- 1 2
Printing 5 46 5 17 17
Amortization of Deferred
Organizational Costs 3 3 1 4 1
Professional Fees 5 44 5 14 19
Custodian Fees 5 59 6 15 18
Other Expenses 1 15 -- 1 4
------ ------------ ------ ------ ------------
Total Expenses, Net 189 1,483 182 566 800
------ ------------ ------ ------ ------------
Net Investment Income 1,670 10,418 1,953 4,507 6,280
------ ------------ ------ ------ ------------
Net Realized Gain (Loss) on
Investments -- (5) 339 1,197 4,072
Net Realized Gain from Forward
Foreign Currency Contracts and
Foreign Currency Translations -- -- -- -- --
Net Unrealized Appreciation on
Investments -- -- 374 2,520 114
Net Unrealized Appreciation on
Forward Foreign Currency
Contracts, Foreign Currencies
and Translation of Other Assets
and Liabilities in Foriegn
Currency -- -- -- -- --
------ ------------ ------ ------ ------------
Net Realized and Unrealized Gain on
Investments and Foriegn Currency -- (5) 713 3,717 4,186
------ ------------ ------ ------ ------------
Net Increase in Net Assets
Resulting From Operations $1,670 $10,413 $2,666 $8,224 $10,466
------ ------------ ------ ------ ------------
------ ------------ ------ ------ ------------
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
50
<PAGE>
1784 FUNDS
- --------------------------------------------------------------
<TABLE>
<CAPTION>
1784
1784 1784 RHODE 1784
TAX-EXEMPT MASSACHUSETTS ISLAND CONNECTICUT 1784 1784 1784
MEDIUM-TERM TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT GROWTH ASSET INTERNATIONAL
INCOME INCOME INCOME INCOME AND INCOME ALLOCATION EQUITY
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME:
Dividend Income $ -- $ -- $ -- $ -- $1,993 $ 62 $1,628
Interest Income 5,091 2,342 1,002 1,882 381 148 419
Less: Foreign Taxes Withheld -- -- -- -- (16) -- (84)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Income 5,091 2,342 1,002 1,882 2,358 210 1,963
---------- ---------- ---------- ---------- ---------- ---------- ----------
EXPENSES:
Investment Advisory Fees 663 313 125 239 954 38 970
Waiver of Investment Advisory
Fees (125) (59) (24) (45) -- -- (485)
Reimbursement of Expenses by
Adviser (53) (38) -- -- (14) (19) --
Administrator Fees 98 46 18 29 141 6 106
Waiver of Administrator Fees -- -- (18) (29) -- (6) --
12b-1 Fees 224 106 41 81 322 13 243
Waiver of 12b-1 Fees (224) (106) (41) (81) (322) (13) (243)
Transfer Agent Fees & Expenses 23 22 27 27 23 22 38
Waiver of Transfer Agent Fees -- -- (25) (25) -- -- --
Fund Accounting Fees 12 16 15 15 12 16 22
Registration Fees 43 7 -- 7 8 -- 45
Trustee Fees 3 1 1 1 3 -- 3
Printing 15 8 3 8 21 1 17
Amortization of Deferred
Organizational Costs 3 4 -- 1 3 4 1
Professional Fees 17 7 2 8 21 1 18
Custodian Fees 16 9 4 8 22 1 23
Other Expenses 2 2 -- 2 5 -- 2
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Expenses, Net 717 338 128 246 1,199 64 760
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Investment Income 4,374 2,004 874 1,636 1,159 146 1,203
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Realized Gain (Loss) on
Investments 1,058 739 21 317 (4,482) 237 898
Net Realized Gain from Forward
Foreign Currency Contracts and
Foreign Currency Translations -- -- -- -- -- -- 4,173
Net Unrealized Appreciation on
Investments 2,977 918 627 1,061 31,093 779 2,504
Net Unrealized Appreciation on
Forward Foreign Currency
Contracts, Foreign Currencies
and Translation of Other Assets
and Liabilities in Foriegn
Currency -- -- -- -- -- -- 95
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Realized and Unrealized Gain on
Investments and 4,035 1,657 648 1,378 26,611 1,016 7,670
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Increase in Net Assets
Resulting From Operations $8,409 $3,661 $1,522 $3,014 $27,770 $1,162 $8,873
---------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ---------- ----------
</TABLE>
--------
51
<PAGE>
FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 1995 AND THE PERIOD ENDED MAY 31,
1995
Statements of Changes in Net Assets (000)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1784 1784
U.S. TREASURY TAX-FREE 1784
MONEY MARKET MONEY MARKET SHORT-TERM INCOME
------------------ --------------------- ---------------------
------------------ --------------------- ---------------------
6/1/95 6/1/94 6/1/95 6/1/94 6/1/95 7/1/94(1)
TO TO TO TO TO TO
11/30/95 5/31/95 11/30/95 5/31/95 11/30/95 5/31/95
-------- -------- --------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income $ 1,670 $ 1,322 $ 10,418 $ 15,403 $ 1,953 $ 1,811
Net Realized Gain (Loss) from Security
Transactions -- (9) (5) (1) 339 28
Net Realized Gain from Forward Foreign
Currency Contracts and Foreign
Currency Transactions -- -- -- -- -- --
Net Unrealized Appreciation on
Investments -- -- -- -- 374 826
Net Unrealized Appreciation
(Depreciation) on Foreign Forward
Currency Contracts, Foreign
Currencies and Translation of Other
Assets and Liabilities in Foreign
Currency -- -- -- -- -- --
-------- -------- --------- ---------- -------- ----------
Net Increase (Decrease) in Net Assets
Resulting from Operations 1,670 1,313 10,413 15,402 2,666 2,665
-------- -------- --------- ---------- -------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (1,670 ) (1,322) (10,418) (15,403) (1,953) (1,811)
Realized Capital Gains -- -- -- (4) -- --
In excess of Net Realized Gains -- -- -- (5) -- --
-------- -------- --------- ---------- -------- ----------
Total Distributions (1,670 ) (1,322) (10,418) (15,412) (1,953) (1,811)
SHARE TRANSACTIONS:
Proceeds from Shares Issued 115,805 103,005 468,573 1,061,511 28,378 62,624
Reinvestment of Cash Distributions 1,551 1,028 1,501 2,007 911 701
Cost of Shares Redeemed (96,369 ) (54,549) (432,975) (931,544) (7,315) (11,598)
-------- -------- --------- ---------- -------- ----------
Increase in Net Assets from Share
Transactions 20,987 49,484 37,099 131,974 21,974 51,727
-------- -------- --------- ---------- -------- ----------
Total Increase in Net Assets 20,987 49,475 37,094 131,964 22,687 52,581
NET ASSETS:
Beginning of Period 55,068 5,593 539,412 407,448 52,581 --
-------- -------- --------- ---------- -------- ----------
NET ASSETS:
End of Period $76,055 $ 55,068 $ 576,506 $ 539,412 $75,268 $ 52,581
-------- -------- --------- ---------- -------- ----------
-------- -------- --------- ---------- -------- ----------
CAPITAL SHARE TRANSACTIONS:
Shares Issued 115,805 103,005 468,573 1,061,511 2,806 6,309
Shares Issued in Lieu of Cash
Distributions 1,551 1,028 1,501 2,007 90 71
Shares Redeemed (96,369 ) (54,549) (432,975) (931,544) (723) (1,170)
-------- -------- --------- ---------- -------- ----------
Net Increase in Capital Shares 20,987 49,484 37,099 131,974 2,173 5,210
-------- -------- --------- ---------- -------- ----------
-------- -------- --------- ---------- -------- ----------
Undistributed Net Investment Income -- -- -- -- -- --
-------- -------- --------- ---------- -------- ----------
-------- -------- --------- ---------- -------- ----------
<CAPTION>
1784
U.S. GOVERNMENT
1784
MEDIUM-TERM INCOME INCOME
------------------ --------------------
------------------ --------------------
6/1/95 6/1/94 6/1/95 7/1/94(1)
TO TO TO TO
11/30/95 5/31/95 11/30/95 5/31/95
-------- -------- -------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income $ 4,507 $ 7,061 $ 6,280 $ 10,507
Net Realized Gain (Loss) from Security
Transactions 1,197 (4,071) 4,072 (996)
Net Realized Gain from Forward Foreign
Currency Contracts and Foreign
Currency Transactions -- -- -- --
Net Unrealized Appreciation on
Investments 2,520 7,084 114 9,287
Net Unrealized Appreciation
(Depreciation) on Foreign Forward
Currency Contracts, Foreign
Currencies and Translation of Other
Assets and Liabilities in Foreign
Currency -- -- -- --
-------- -------- -------- ----------
Net Increase (Decrease) in Net Assets
Resulting from Operations 8,224 10,074 10,466 18,798
-------- -------- -------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (4,507 ) (7,061) (6,280 ) (10,507)
Realized Capital Gains -- -- -- --
In excess of Net Realized Gains -- -- -- --
-------- -------- -------- ----------
Total Distributions (4,507 ) (7,061) (6,280 ) (10,507)
SHARE TRANSACTIONS:
Proceeds from Shares Issued 29,288 67,712 20,449 203,201
Reinvestment of Cash Distributions 800 1,160 451 502
Cost of Shares Redeemed (9,041 ) (34,191) (11,098 ) (15,479)
-------- -------- -------- ----------
Increase in Net Assets from Share
Transactions 21,047 34,681 9,802 188,224
-------- -------- -------- ----------
Total Increase in Net Assets 24,764 37,694 13,988 196,515
NET ASSETS:
Beginning of Period 130,081 92,387 196,515 --
-------- -------- -------- ----------
NET ASSETS:
End of Period $154,845 $130,081 $210,503 $196,515
-------- -------- -------- ----------
-------- -------- -------- ----------
CAPITAL SHARE TRANSACTIONS:
Shares Issued 3,035 7,316 1,936 20,419
Shares Issued in Lieu of Cash
Distributions 82 126 71 51
Shares Redeemed (936 ) (3,711) (1,070 ) (1,562)
-------- -------- -------- ----------
Net Increase in Capital Shares 2,181 3,731 937 18,908
-------- -------- -------- ----------
-------- -------- -------- ----------
Undistributed Net Investment Income -- -- -- --
-------- -------- -------- ----------
-------- -------- -------- ----------
</TABLE>
(1) THE SHORT-TERM INCOME AND INCOME FUNDS COMMENCED OPERATIONS ON JULY 1, 1994.
(2) THE CONNECTICUT TAX-EXEMPT INCOME AND RHODE ISLAND TAX-EXEMPT INCOME FUNDS
COMMENCED OPERATIONS ON AUGUST 1, 1994.
(3) THE INTERNATIONAL EQUITY FUND COMMENCED OPERATIONS ON JANUARY 3, 1995.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
52
<PAGE>
1784 FUNDS
- --------------------------------------------------------------
<TABLE>
<CAPTION>
1784 1784 1784 1784
TAX-EXEMPT MASSACHUSETTS TAX- RHODE ISLAND TAX- CONNECTICUT TAX-
MEDIUM-TERM INCOME EXEMPT INCOME EXEMPT INCOME EXEMPT INCOME
------------------ ------------------- --------------------- ---------------------
------------------ ------------------- --------------------- ---------------------
6/1/95 6/1/94 6/1/95 6/1/94 6/1/95 8/1/94(2) 6/1/95 8/1/94(2)
TO TO TO TO TO TO TO TO
11/30/95 5/31/95 11/30/95 5/31/95 11/30/95 5/31/95 11/30/95 5/31/95
-------- -------- -------- -------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income $ 4,374 $ 5,039 $ 2,004 $ 2,982 $ 874 $ 1,232 $ 1,636 $ 2,212
Net Realized Gain (Loss) from Security
Transactions 1,058 777 739 (1,525) 21 (188) 317 (271)
Net Realized Gain from Forward Foreign
Currency Contracts and Foreign Currency
Transactions -- -- -- -- -- -- -- --
Net Unrealized Appreciation on
Investments 2,977 7,776 918 3,348 627 970 1,061 2,155
Net Unrealized Appreciation
(Depreciation) on Foreign Forward
Currency Contracts, Foreign Currencies
and Translation of Other Assets and
Liabilities in Foreign Currency -- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- ---------- -------- ----------
Net Increase (Decrease) in Net Assets
Resulting from Operations 8,409 13,592 3,661 4,805 1,522 2,014 3,014 4,096
-------- -------- -------- -------- -------- ---------- -------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (4,374 ) (5,039) (2,004) (2,982) (874) (1,232) (1,636) (2,212)
Realized Capital Gains -- -- -- -- -- -- -- --
In excess of Net Realized Gains -- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- ---------- -------- ----------
Total Distributions (4,374 ) (5,039) (2,004) (2,982) (874) (1,232) (1,636) (2,212)
SHARE TRANSACTIONS:
Proceeds from Shares Issued 26,598 164,271 14,703 52,814 3,354 35,663 11,155 67,123
Reinvestment of Cash Distributions 232 327 541 677 51 12 183 83
Cost of Shares Redeemed (16,108 ) (33,171) (8,777) (22,918) (2,078) (3,962) (3,965) (7,721)
-------- -------- -------- -------- -------- ---------- -------- ----------
Increase in Net Assets from Share
Transactions 10,722 131,427 6,467 30,573 1,327 31,713 7,373 59,485
-------- -------- -------- -------- -------- ---------- -------- ----------
Total Increase in Net Assets 14,757 139,980 8,124 32,396 1,975 32,495 8,751 61,369
NET ASSETS:
Beginning of Period 176,345 36,365 82,058 49,662 32,495 -- 61,369 --
-------- -------- -------- -------- -------- ---------- -------- ----------
NET ASSETS:
End of Period $191,102 $176,345 $90,182 $ 82,058 $34,470 $32,495 $70,120 $61,369
-------- -------- -------- -------- -------- ---------- -------- ----------
-------- -------- -------- -------- -------- ---------- -------- ----------
CAPITAL SHARE TRANSACTIONS:
Shares Issued 2,613 17,066 1,478 5,541 332 3,612 1,083 6,749
Shares Issued in Lieu of Cash
Distributions 22 33 55 70 5 1 18 8
Shares Redeemed (1,588 ) (3,381) (884) (2,386) (205) (405) (386) (782)
-------- -------- -------- -------- -------- ---------- -------- ----------
Net Increase in Capital Shares 1,047 13,718 649 3,225 132 3,208 715 5,975
-------- -------- -------- -------- -------- ---------- -------- ----------
-------- -------- -------- -------- -------- ---------- -------- ----------
Undistributed Net Investment Income -- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- ---------- -------- ----------
-------- -------- -------- -------- -------- ---------- -------- ----------
<CAPTION>
1784 1784 1784
GROWTH AND INCOME ASSET ALLOCATION INTERNATIONAL EQUITY
------------------ --------------------- --------------------
------------------ --------------------- --------------------
6/1/95 6/1/94 6/1/95 6/1/94 6/1/95 1/3/95(3)
TO TO TO TO TO TO
11/30/95 5/31/95 11/30/95 5/31/95 11/30/95 5/31/95
-------- -------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income $ 1,159 $ 1,987 $ 146 $ 214 $ 1,203 $ 819
Net Realized Gain (Loss) from Security
Transactions (4,482 ) (66) 237 87 898 159
Net Realized Gain from Forward Foreign
Currency Contracts and Foreign Currency
Transactions -- -- -- -- 4,173 5
Net Unrealized Appreciation on
Investments 31,093 32,385 779 775 2,504 8,219
Net Unrealized Appreciation
(Depreciation) on Foreign Forward
Currency Contracts, Foreign Currencies
and Translation of Other Assets and
Liabilities in Foreign Currency -- -- -- -- 95 (335)
-------- -------- -------- ---------- -------- ----------
Net Increase (Decrease) in Net Assets
Resulting from Operations 27,770 34,306 1,162 1,076 8,873 8,867
-------- -------- -------- ---------- -------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (1,245 ) (1,640) (140) (198) (411 ) --
Realized Capital Gains -- (1,553) -- (6) -- --
In excess of Net Realized Gains -- -- -- -- -- --
-------- -------- -------- ---------- -------- ----------
Total Distributions (1,245 ) (3,193) (140) (204) (411 ) --
SHARE TRANSACTIONS:
Proceeds from Shares Issued 86,005 118,880 2,909 2,666 82,056 141,128
Reinvestment of Cash Distributions 350 1,935 118 174 4 --
Cost of Shares Redeemed (70,035 ) (44,443) (553) (2,018) (6,556 ) (1,556)
-------- -------- -------- ---------- -------- ----------
Increase in Net Assets from Share
Transactions 16,320 76,370 2,474 822 75,504 139,572
-------- -------- -------- ---------- -------- ----------
Total Increase in Net Assets 42,845 107,542 3,496 1,694 83,966 148,439
NET ASSETS:
Beginning of Period 229,200 121,717 8,622 6,928 148,439 --
-------- -------- -------- ---------- -------- ----------
NET ASSETS:
End of Period $272,045 $229,200 $12,118 $ 8,622 $232,405 $148,439
-------- -------- -------- ---------- -------- ----------
-------- -------- -------- ---------- -------- ----------
CAPITAL SHARE TRANSACTIONS:
Shares Issued 6,544 11,148 255 263 7,576 14,422
Shares Issued in Lieu of Cash
Distributions 27 186 10 18 -- --
Shares Redeemed (5,312 ) (4,001) (48) (201) (603 ) (157)
-------- -------- -------- ---------- -------- ----------
Net Increase in Capital Shares 1,259 7,333 217 80 6,973 14,265
-------- -------- -------- ---------- -------- ----------
-------- -------- -------- ---------- -------- ----------
Undistributed Net Investment Income $ 403 $ 489 $ 57 $ 51 $ 1,611 $ 819
-------- -------- -------- ---------- -------- ----------
-------- -------- -------- ---------- -------- ----------
</TABLE>
--------
53
<PAGE>
1784 MONEY MARKET FUNDS
Financial Highlights
(Unaudited)
- --------------------------------------------------------------------------------
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
NET NET RATIO
ASSET DISTRIBUTIONS NET ASSETS RATIO OF NET
VALUE NET FROM NET ASSET VALUE END OF EXPENSES INCOME
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME INCOME OF PERIOD RETURN (000) NET ASSETS NET ASSETS
--------- ---------- ---------- ----------- ------ --------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1784 U.S. TREASURY
MONEY MARKET
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** $1.00 0.03 (0.03) $1.00 2.68%* $ 76,055 0.60% 5.30%
For the year ended
May 31, 1995 $1.00 0.05 (0.05) $1.00 4.81% $ 55,068 0.60% 5.13%
For the period ended
May 31, 1994(1) $1.00 0.03 (0.03) $1.00 2.64%* $ 5,593 0.65% 2.91%
1784 TAX-FREE
MONEY MARKET
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** $1.00 0.02 (0.02) $1.00 1.84%* $ 576,506 0.51% 3.64%
For the year ended
May 31, 1995 $1.00 0.03 (0.03) $1.00 3.29% $ 539,412 0.50% 3.28%
For the period ended
May 31, 1994(2) $1.00 0.02 (0.02) $1.00 2.31%* $ 407,448 0.27% 2.39%
<CAPTION>
RATIO RATIO OF
OF EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS
(EXCLUDING (EXCLUDING
WAIVERS) WAIVERS)
----------- ----------
<S> <C> <C>
1784 U.S. TREASURY
MONEY MARKET
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** 0.71% 5.19%
For the year ended
May 31, 1995 0.92% 4.81%
For the period ended
May 31, 1994(1) 6.42% (2.86)%
1784 TAX-FREE
MONEY MARKET
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** 0.57% 3.58%
For the year ended
May 31, 1995 0.61% 3.17%
For the period ended
May 31, 1994(2) 0.71% 1.95%
</TABLE>
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
** RATIOS FOR THE SIX MONTH PERIOD END NOVEMBER 30, 1995 (UNAUDITED), HAVE BEEN
ANNUALIZED.
(1) THE U.S. TREASURY MONEY MARKET FUND COMMENCED OPERATIONS ON JUNE 7, 1993.
ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(2) THE TAX-FREE MONEY MARKET FUND COMMENCED OPERATIONS ON JUNE 14, 1993. ALL
RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
54
<PAGE>
1784 BOND FUNDS
Financial Highlights
(Unaudited)
- --------------------------------------------------------------------------------
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
NET NET
ASSET REALIZED AND DISTRIBUTIONS NET ASSETS
VALUE NET UNREALIZED FROM NET ASSET VALUE END
BEGINNING INVESTMENT GAINS OR (LOSSES) INVESTMENT END TOTAL OF PERIOD
OF PERIOD INCOME ON INVESTMENTS INCOME OF PERIOD RETURN (000)
--------- ---------- ----------------- ---------- ----------- ------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1784 SHORT-TERM
INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** $10.09 0.31 0.11 (0.31) $10.20 4.20%* $ 75,268
For the period ended
May 31, 1995(3) $10.00 0.56 0.09 (0.56) $10.09 6.74%* $ 52,581
1784 U.S. GOVERNMENT
MEDIUM-TERM
INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** $ 9.57 0.31 0.24 (0.31) $ 9.81 5.82%* $ 154,845
For the year ended
May 31, 1995 $ 9.36 0.58 0.21 (0.58) $ 9.57 8.79% $ 130,081
For the period ended
May 31, 1994(1) $10.00 0.59 (0.64) (0.59) $ 9.36 (0.65)%* $ 92,387
1784 INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** $10.39 0.33 0.22 (0.33) $10.61 5.37%* $ 210,503
For the period ended
May 31, 1995(3) $10.00 0.62 0.39 (0.62) $10.39 10.69%* $ 196,515
1784 TAX-EXEMPT
MEDIUM-TERM
INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** $10.14 0.25 0.22 (0.25) $10.36 4.69%* $ 191,102
For the year ended
May 31, 1995 $ 9.90 0.48 0.24 (0.48) $10.14 7.58% $ 176,345
For the period ended
May 31, 1994(2) $10.00 0.49 (0.10) (0.49) $ 9.90 3.93%* $ 36,365
1784 MASSACHUSETTS
TAX-EXEMPT
INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** $ 9.90 0.24 0.19 (0.24) $10.09 4.36%* $ 90,182
For the year ended
May 31, 1995 $ 9.81 0.47 0.09 (0.47) $ 9.90 6.00% $ 82,058
For the period ended
May 31, 1994(2) $10.00 0.50 (0.19) (0.50) $ 9.81 3.04%* $ 49,662
1784 RHODE ISLAND
TAX-EXEMPT
INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** $10.13 0.26 0.19 (0.26) $10.32 4.55%* $ 34,470
For the period ended
May 31, 1995 (4) $10.00 0.45 0.13 (0.45) $10.13 6.09%* $ 32,495
1784 CONNECTICUT
TAX-EXEMPT
INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995* $10.27 0.26 0.21 (0.26) $10.48 4.66%* $ 70,120
For the period ended
May 31, 1995 (4) $10.00 0.45 0.27 (0.45) $10.27 7.45%* $ 61,369
<CAPTION>
RATIO RATIO OF
RATIO OF EXPENSES NET INCOME
RATIO OF NET TO AVERAGE TO AVERAGE
OF EXPENSES INCOME NET ASSETS NET ASSETS PORTFOLIO
TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
----------- ---------- ----------- ---------- --------
<S> <C> <C> <C> <C> <C>
1784 SHORT-TERM
INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** 0.57% 6.07% 1.04% 5.60% 44.11%
For the period ended
May 31, 1995(3) 0.48% 6.31% 1.27% 5.52% 84.54%
1784 U.S. GOVERNMENT
MEDIUM-TERM
INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** 0.80% 6.37% 1.23% 5.93% 74.55%
For the year ended
May 31, 1995 0.80% 6.24% 1.27% 5.77% 142.14%
For the period ended
May 31, 1994(1) 0.31% 6.08% 1.35% 5.04% 144.77%
1784 INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** 0.80% 6.28% 1.22% 5.86% 41.22%
For the period ended
May 31, 1995(3) 0.55% 7.01% 1.23% 6.33% 80.53%
1784 TAX-EXEMPT
MEDIUM-TERM
INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** 0.80% 4.88% 1.25% 4.43% 21.02%
For the year ended
May 31, 1995 0.80% 5.02% 1.26% 4.56% 74.74%
For the period ended
May 31, 1994(2) 0.32% 5.06% 1.61% 3.77% 98.83%
1784 MASSACHUSETTS
TAX-EXEMPT
INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** 0.80% 4.74% 1.28% 4.26% 28.83%
For the year ended
May 31, 1995 0.80% 4.93% 1.35% 4.38% 34.59%
For the period ended
May 31, 1994(2) 0.33% 5.10% 1.41% 4.02% 13.99%
1784 RHODE ISLAND
TAX-EXEMPT
INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** 0.76% 5.19% 1.16% 4.79% 9.91%
For the period ended
May 31, 1995 (4) 0.54% 5.56% 1.60% 4.50% 57.51%
1784 CONNECTICUT
TAX-EXEMPT
INCOME
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995* 0.76% 5.06% 1.26% 4.57% 18.28%
For the period ended
May 31, 1995 (4) 0.52% 5.44% 1.40% 4.56% 35.56%
</TABLE>
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
** RATIOS FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 1995 (UNAUDITED), HAVE
BEEN ANNUALIZED.
(1) THE U.S. GOVERNMENT MEDIUM-TERM INCOME FUND COMMENCED OPERATIONS ON JUNE 7,
1993. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(2) THE TAX-EXEMPT MEDIUM-TERM INCOME AND MASSACHUSETTS TAX-EXEMPT MEDIUM TERM
INCOME FUNDS COMMENCED OPERATIONS ON JUNE 14, 1993. ALL RATIOS FOR THE
PERIOD HAVE BEEN ANNUALIZED.
(3) THE SHORT-TERM INCOME AND INCOME FUNDS COMMENCED OPERATIONS ON JULY 1, 1994.
ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(4) THE CONNECTICUT TAX-EXEMPT INCOME AND RHODE ISLAND TAX-EXEMPT INCOME FUNDS
COMMENCED OPERATIONS ON AUGUST 1, 1994. ALL RATIOS FOR THE PERIOD HAVE BEEN
ANNUALIZED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
55
<PAGE>
1784 STOCK FUNDS
Financial Highlights
(Unaudited)
- --------------------------------------------------------------------------------
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
NET
ASSET REALIZED AND DISTRIBUTIONS NET
VALUE NET UNREALIZED FROM NET DISTRIBUTIONS ASSET VALUE
BEGINNING INVESTMENT GAIN OR (LOSSES) INVESTMENT FROM CAPITAL END
OF PERIOD INCOME ON INVESTMENTS INCOME GAINS OF PERIOD
--------- ---------- ----------------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
1784 GROWTH AND
INCOME
- ---------------------------------
- ---------------------------------
For the six month
period ended
November 30, 1995** $12.16 0.01 1.38 (0.02) (0.00) $13.53
For the year ended
May 31, 1995 $10.57 0.11 1.67 (0.10) (0.09) $12.16
For the period ended
May 31, 1994 (1) $10.00 0.12 0.56 (0.11) (0.00) $10.57
1784 ASSET ALLOCATION
- ---------------------------------
- ---------------------------------
For the six month
period ended
November 30, 1995** $10.99 0.15 1.12 (0.16) (0.00) $12.10
For the year ended
May 31, 1995 $ 9.84 0.28 1.15 (0.27) (0.01) $10.99
For the period ended
May 31, 1994 (2) $10.00 0.19 (0.20) (0.15) (0.00) $ 9.84
1784 INTERNATIONAL EQUITY
- ---------------------------------
- ---------------------------------
For the six month
period ended
November 30, 1995** $10.41 0.04 0.52 (0.03) (0.00) $10.94
For the period ended
May 31, 1995 (3) $10.00 0.06 0.35 (0.00) (0.00) $10.41
<CAPTION>
RATIO RATIO OF
NET RATIO OF EXPENSES NET INCOME
ASSETS RATIO OF NET TO AVERAGE TO AVERAGE
END OF EXPENSES INCOME NET ASSETS NET ASSETS PORTFOLIO
TOTAL OF PERIOD TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
RETURN (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
------- --------- ----------- ---------- ----------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
1784 GROWTH AND
INCOME
- ---------------------------------
- ---------------------------------
For the six month
period ended
November 30, 1995** 11.82%* $ 272,045 0.93% 0.91% 1.19% 0.65% 14.01%
For the year ended
May 31, 1995 17.09% $ 229,200 0.94% 1.05% 1.23% 0.76% 38.94%
For the period ended
May 31, 1994 (1) 6.80%* $ 121,717 0.35% 1.23% 1.36% 0.22% 31.55%
1784 ASSET ALLOCATION
- ---------------------------------
- ---------------------------------
For the six month
period ended
November 30, 1995** 11.65%* $ 12,118 1.25% 2.84% 1.97% 2.12% 21.95%
For the year ended
May 31, 1995 14.84% $ 8,622 1.25% 2.88% 2.51% 1.62% 67.23%
For the period ended
May 31, 1994 (2) (0.15)%* $ 6,928 1.25% 2.62% 3.61% 0.26% 28.19%
1784 INTERNATIONAL EQUITY
- ---------------------------------
- ---------------------------------
For the six month
period ended
November 30, 1995** 5.36%* $ 232,405 0.78% 1.26% 1.54% 0.50% 7.18%
For the period ended
May 31, 1995 (3) 4.73%* $ 148,439 0.89% 2.06% 1.70% 1.25% 11.03%
</TABLE>
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
** RATIOS FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 1995 (UNAUDITED), HAVE
BEEN ANNUALIZED.
(1) THE GROWTH AND INCOME FUND COMMENCED OPERATIONS ON JUNE 7, 1993. ALL RATIOS
FOR THE PERIOD HAVE BEEN ANNUALIZED.
(2) THE ASSET ALLOCATION FUND COMMENCED OPERATIONS ON JUNE 14, 1993. ALL RATIOS
FOR THE PERIOD HAVE BEEN ANNUALIZED.
(3) THE INTERNATIONAL EQUITY FUND COMMENCED OPERATIONS ON JANUARY 3, 1995. ALL
RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
56
<PAGE>
NOVEMBER 30, 1995 1784 FUNDS
Notes to Financial Statements
(Unaudited)
1. ORGANIZATION
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
The 1784 U.S. Treasury Money Market, 1784 Tax-Free Money Market, 1784
Institutional U.S. Treasury Money Market (the "Money Market Funds"), 1784
Short-Term Income, 1784 U.S. Government Medium-Term Income, 1784 Income, 1784
Tax-Exempt Medium-Term Income, 1784 Massachusetts Tax-Exempt Income, 1784 Rhode
Island Tax-Exempt Income, 1784 Connecticut Tax-Exempt Income (the "Bond Funds"),
1784 Growth and Income, 1784 Asset Allocation and 1784 International Equity
Funds (the "Stock Funds") are portfolios offered by 1784 Funds (the "Trust"), a
diversified, open-end investment company registered under the Investment Company
Act of 1940, as amended. The Trust is presently authorized to offer shares in 13
separate portfolios (the "Funds"):
<TABLE>
<CAPTION>
MONEY MARKET FUNDS: STOCK FUNDS:
<S> <C>
1784 U.S. Treasury Money Market Fund 1784 Growth and Income Fund
1784 Tax-Free Money Market Fund 1784 Asset Allocation Fund
1784 Institutional U.S. Treasury Money Market Fund 1784 International Equity Fund
BOND FUNDS:
1784 Short-Term Income Fund
1784 U.S. Government Medium-Term Income Fund
1784 Income Fund
1784 Tax-Exempt Medium-Term Income Fund
1784 Massachusetts Tax-Exempt Income Fund
1784 Rhode Island Tax-Exempt Income Fund
1784 Connecticut Tax-Exempt Income Fund
</TABLE>
The financial statements of the 1784 Institutional U.S. Treasury Money
Market Fund are not presented herein but are presented separately. The assets of
each Fund are segregated, and a Shareholder's interest is limited to the Fund in
which shares are held.
2. SIGNIFICANT ACCOUNTING POLICIES
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
The following is a summary of significant accounting policies followed by
the Funds.
SECURITY VALUATION -- Investment securities of the Bond and Stock Funds which
are listed on a securities exchange for which market quotations are available
are valued by an independent pricing service at the last quoted sales price for
such securities on each business day. If there is no such reported sale, these
securities and unlisted securities for which market quotations are readily
available are valued at the most recent bid price using procedures determined in
good faith by the Board of Trustees. Debt obligations with sixty days or less
remaining until maturity may be valued at their amortized cost. Under this
valuation method, purchase discounts and premiums are accreted and amortized
ratably to maturity and are included in interest income.
--------
57
<PAGE>
NOVEMBER 30, 1995
Notes to Financial Statements (CONTINUED)
(Unaudited)
Investment securities of the Money Market Funds are stated at amortized cost
which approximates market value. Under this valuation method, purchase discounts
and premiums are accreted and amortized ratably to maturity and are included in
interest income.
FOREIGN CURRENCY TRANSACTIONS -- The books and records of the 1784 International
Equity Fund are maintained in U.S. dollars. Foreign currency amounts are
translated into U.S. dollars on the following basis:
I. market value of investments securities, assets and liabilities at the current
rate of exchange; and
II. purchases and sales of investment securities, income and expenses at the
relevant rates of exchange prevailing on the respective dates of such
transactions.
The 1784 International Equity Fund does not isolate that portion of gains and
losses on investment securities which is due to changes in the foreign exchange
rates from that which is due to changes in market prices of such securities.
The 1784 International Equity Fund reports certain foreign currency related
transactions as components of unrealized and realized gains for financial
reporting purposes, whereas such components are treated as ordinary income for
Federal income tax purposes.
FORWARD FOREIGN CURRENCY CONTRACTS -- The 1784 International Equity Fund enters
into foreign currency contracts as hedges against specific transactions or
portfolio positions. The aggregate principal amounts of the contracts are not
recorded as the Fund does not intend to hold the contracts to maturity. All
commitments are "marked-to-market" daily at the applicable foreign exchange rate
and any resulting unrealized gains or losses are recorded currently. The Fund
realizes gains and losses at the time forward contracts are extinguished.
Unrealized gains and losses on outstanding positions in forward foreign currency
contracts held at the close of the year will be recognized as ordinary income
for federal income tax purposes.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the trade date of the security purchase or sale. Costs used in
determining net realized capital gains and losses on the sale of securities are
those of the specific securities sold, adjusted for the accretion and
amortization of the purchase discounts and premiums during the respective
holding period. Interest income is recorded on the accrual basis. Dividend
income is recorded on ex-date.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for Repurchase
Agreements are held by each Fund's custodian bank until maturity of the
Repurchase Agreements. Provisions of the Agreements and procedures adopted by
the Adviser ensure that the market value of the collateral, including accrued
interest thereon, is sufficient in the event of default by the counterparty. If
the counterparty defaults and the value of the collateral declines or if the
counterparty enters into insolvency proceedings, realization of the collateral
by the Fund may be delayed or limited.
EXPENSES -- Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses of the Trust are prorated to the
Funds on the basis of relative net assets.
--------
58
<PAGE>
1784 FUNDS
DISTRIBUTIONS TO SHAREHOLDERS -- The Money Market and Bond Funds' distributions
from net investment income are declared on a daily basis and are payable on the
first business day of the following month. The 1784 Growth and Income and 1784
Asset Allocation Funds declare and pay dividends on a quarterly basis. The 1784
International Equity Fund declares and pays dividends on an annual basis. Any
net realized capital gains on sales of securities for a Fund are distributed to
its shareholders at least annually.
FEDERAL INCOME TAXES -- The Trust's policy is to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its Shareholders. Accordingly, no
provision for Federal Income Taxes is required in the financial statements. The
Funds may be subject to taxes imposed by countries in which they invest with
respect to their investments in issuers existing or operating in such countries.
Such taxes are generally based on either income earned or repatriated. The Funds
accrue such taxes when related income is earned.
ORGANIZATION COSTS -- These costs have been deferred in the accounts of the
Funds and are being amortized on a straight line basis over a period of sixty
months commencing with operations. In the event any of the initial shares of the
Funds are redeemed by any holder thereof during the period that the Funds are
amortizing its organizational costs, the redemption proceeds payable to the
holders thereof by the Funds will be reduced by the unamortized organizational
costs in the same ratio as the number of initial shares outstanding at the time
of redemption.
3. INVESTMENT ADVISORY AND CUSTODIAL SERVICES
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Pursuant to an investment advisory agreement dated June 1, 1993, investment
advisory services are provided to the Trust by The First National Bank of Boston
(the "Adviser"). The Adviser is entitled to receive a fee of 0.40% of the
average daily net assets of the 1784 Tax-Free Money Market and 1784 U.S.
Treasury Money Market Funds, 0.50% of the average daily net assets of the 1784
Short-Term Income Fund, 0.74% of the average daily net assets of the 1784 U.S.
Government Medium-Term Income, 1784 Income, 1784 Tax-Exempt Medium-Term Income,
1784 Massachusetts Tax-Exempt Income, 1784 Rhode Island Tax-Exempt Income, 1784
Connecticut Tax-Exempt Income, 1784 Growth and Income and 1784 Asset Allocation
Funds. Such fees are computed daily and paid monthly. The Adviser has
voluntarily agreed to waive a portion of its fee and reimburse the Trust for
other expenses as necessary to assist the Funds in maintaining competitive
expense ratios. The 1784 International Equity Fund has entered into separate
investment advisory agreements (each an "Advisory Agreement") with The First
National Bank of Boston ("Bank of Boston") and with Kleinwort Benson Investment
Management Americas Inc. ("Kleinwort Benson" and together with Bank of Boston
the "International Advisers"). The Advisory Agreement with Bank of Boston is
dated as of November 28, 1994; the Advisory Agreement with Kleinwort Benson is
dated as of October 27, 1994. The International Advisers are entitled to receive
an aggregate fee of 1.00% of the average daily net assets of the 1784
International Equity Fund. Such fee is computed daily and paid
(CONTINUED)
--------
59
<PAGE>
NOVEMBER 30, 1995
Notes to Financial Statements (CONTINUED)
(Unaudited)
monthly. The International Advisers have voluntarily agreed to waive a portion
of their fee and reimburse the Trust for other expenses as necessary to assist
the 1784 International Equity Fund in maintaining a competitive expense ratio.
The Trust and The First National Bank of Boston (the "Custodian") are
parties to a custodial agreement dated June 1, 1993 under which the Custodian
holds cash, securities and other assets of the Trust as required by the
Investment Company Act of 1940. The Custodian is entitled to receive an annual
fee, to be paid monthly, of 0.0100% for the first $100 million in average daily
net assets, 0.0075% for the next $100 million and 0.0050% for the average daily
net assets over $200 million. In its capacity as custodian to the Trust, the
Custodian plays no role in determining the investment policies of the Trust or
which securities are to be purchased or sold by the Funds.
Under a separate agreement, The First National Bank of Boston also provides
certain accounting services for the Trust and is entitled to receive an annual
fee of $30,000 per Fund for the Money Market Funds, the Bond Funds and for the
1784 Growth and Income and 1784 Asset Allocation Funds and $50,000 for the
International Equity Fund.
4. ADMINISTRATIVE, DISTRIBUTION AND TRANSFER AGENT SERVICES
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Pursuant to an administrative agreement dated June 7, 1993, SEI Financial
Management Corporation (SEI) acts as the Trust's Administrator. Under the terms
of such agreement SEI is entitled to receive an annual fee of 0.15% of the
Trust's first $300 million of average daily net assets, 0.12% of the Trust's
second $300 million of average daily net assets and 0.10% of the Trust's average
daily net assets over $600 million. Such fee is computed daily and paid monthly.
The Administrator has agreed to waive a portion of its fee in the 1784 U.S.
Treasury Money Market, 1784 Short-Term Income, 1784 Rhode Island Tax-Exempt
Income, 1784 Connecticut Tax-Exempt Income and 1784 Asset Allocation Funds in
order to help those funds maintain a competitive expense ratio.
Effective for the period June 1, 1995 to November 17, 1995, SEI Financial
Management Corporation acted as the Transfer Agent of the Trust. Pursuant to an
agreement dated November 17, 1995, State Street Bank and Trust Company acts as
the Transfer Agent of the Trust. As such, State Street Bank and Trust Company
provides transfer agency, dividend disbursing, shareholder servicing and
administrative services for the Trust.
SEI Financial Services Company (SFS), a wholly owned subsidiary of SEI,
became the Trust's Distributor pursuant to a distribution agreement dated June
1, 1993. The Distributor is entitled to receive a fee, calculated daily and paid
monthly, at an annual rate of 0.25% of the average daily net assets of each
series of the Bond and Stock Funds. The Distributor has agreed to waive the
12b-1 fee until at least October 1, 1996.
Certain officers of the Trust are also officers of the Administrator. Such
officers are paid no fees by the Trust.
--------
60
<PAGE>
1784 FUNDS
The Funds have paid legal fees to a law firm with which the Secretary of
the Trust is associated.
5. INVESTMENT TRANSACTIONS
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
The cost of security purchases and the proceeds from the sale of
securities, other than temporary cash investments for the period ended November
30, 1995, are as presented below for all the Funds. On November 30, 1995, the
total cost of securities and the net realized gains or losses in securities sold
for federal income tax purposes was not materially different from amounts
reported for financial reporting purposes.
- --------------------------------------------------------------------------------
FUND INVESTMENT TRANSACTIONS (000):
<TABLE>
<CAPTION>
PURCHASES SALES
---------------------------- ----------------------------
---------------------------- ----------------------------
FOR THE PERIOD ENDED U.S. GOVERNMENT U.S. GOVERNMENT
NOVEMBER 30, 1995 SECURITIES OTHER SECURITIES OTHER
----------------- --------- ----------------- ---------
----------------- --------- ----------------- ---------
<S> <C> <C> <C> <C>
1784 Short-Term Income Fund $ 8,137 $ 41,548 $ 3,607 $ 20,878
1784 U.S. Government Medium-Term Income Fund 56,021 52,937 54,344 42,608
1784 Income Fund 27,707 47,135 14,692 65,597
1784 Tax-Exempt Medium-Term Income Fund -- 45,452 -- 35,928
1784 Massachusetts Tax-Exempt Income Fund -- 29,429 -- 23,123
1784 Rhode Island Tax-Exempt Income Fund -- 4,029 -- 2,883
1784 Connecticut Tax-Exempt Income Fund -- 14,014 -- 11,026
1784 Growth and Income Fund -- 46,905 -- 34,267
1784 Asset Allocation Fund -- 5,104 -- 2,032
1784 International Equity Fund -- 94,914 -- 12,879
</TABLE>
(CONTINUED)
--------
61
<PAGE>
NOVEMBER 30, 1995
Notes to Financial Statements (CONTINUED)
(Unaudited)
The aggregate gross unrealized gain or loss on securities at November 30,
1995 for the Funds is as follows:
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
GAINS LOSSES GAINS
------------- ------------- -------------
------------- ------------- -------------
<S> <C> <C> <C>
1784 Short-Term Income Fund $ 1,231 $ (31) $ 1,200
1784 U.S. Government Medium-Term Income Fund 5,023 (131) 4,892
1784 Income Fund 9,423 (22) 9,401
1784 Tax-Exempt Medium-Term Income Fund 10,009 (26) 9,983
1784 Massachusetts Tax-Exempt Income Fund 2,255 (167) 2,088
1784 Rhode Island Tax-Exempt Income Fund 1,597 -- 1,597
1784 Connecticut Tax-Exempt Income Fund 3,216 -- 3,216
1784 Growth and Income Fund 74,686 (6,771) 67,915
1784 Asset Allocation Fund 1,435 (37) 1,398
1784 International Equity Fund 17,571 (6,848) 10,723
</TABLE>
6. FORWARD FOREIGN CURRENCY CONTRACTS
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
The 1784 International Equity Fund entered into forward foreign currency
exchange contracts as hedges against portfolio positions. Such contracts, which
protect the value of the Fund's investment securities against decline in value
of the hedged currency, do not eliminate fluctuations in the underlying prices
of the securities. They simply establish an exchange rate at a future date.
Also, although such contracts tend to minimize the risk of loss due to a decline
in the value of a hedged currency, at the same time they tend to limit any
potential gain that might be realized should the value of such foreign currency
increase.
--------
62
<PAGE>
1784 FUNDS
The following forward foreign currency contracts were outstanding at
November 30, 1995:
- --------------------------------------------------------------------------------
1784 INTERNATIONAL EQUITY FUND
FOREIGN CURRENCY SALES:
<TABLE>
<CAPTION>
CONTRACT TO IN EXCHANGE UNREALIZED
MATURITY DELIVER/RECEIVE FOR (DEPRECIATION)
DATE (000) (000) (000)
- ----------- ------------------------------ ----------- -------------------
- ----------- ------------------------------ ----------- -------------------
<S> <C> <C> <C>
12/21/95 JPY 1,530,000 $ 14,955 $ (111)
12/21/95 ECU 11,000 13,910 (115)
----------- -----
$ 28,865 $ (226)
----------- -----
----------- -----
</TABLE>
- --------------------------------------------------------------------------------
CURRENCY LEGEND
JPY JAPANESE YEN
ECU EUROPEAN CURRENCY UNIT
7. CONCENTRATION OF CREDIT RISK
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
The 1784 Tax-Free Money Market, 1784 Tax-Exempt Medium-Term Income, 1784
Massachusetts Tax-Exempt Income, 1784 Rhode Island Tax-Exempt Income and 1784
Connecticut Tax-Exempt Income Funds invest in debt instruments of municipal
issuers. The issuers' ability to meet their obligations may be affected by
economic developments in a specific state or region. The 1784 Massachusetts
Tax-Exempt Income, 1784 Rhode Island Tax-Exempt Income and 1784 Connecticut
Tax-Exempt Income Funds invest primarily in obligations located in
Massachusetts, Rhode Island and Connecticut, respectively.
The 1784 Tax-Free Money Market, 1784 Tax-Exempt Medium-Term Income, 1784
Massachusetts Tax-Exempt Income, 1784 Rhode Island Tax-Exempt Income and 1784
Connecticut Tax-Exempt Income Funds
(CONTINUED)
--------
63
<PAGE>
NOVEMBER 30, 1995
Notes to Financial Statements (CONTINUED)
(Unaudited)
invest in securities which include revenue bonds, tax-exempt commercial paper,
tax and revenue anticipation notes and general obligation bonds. At November 30,
1995, the percentage of portfolio investments by each revenue source was as
follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1784 1784 1784 1784 1784
TAX-FREE TAX-EXEMPT MASSACHUSETTS RHODE ISLAND CONNECTICUT
MONEY MEDIUM-TERM TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
MARKET INCOME INCOME INCOME INCOME
FUND FUND FUND FUND FUND
----------- ----------------- ------------------- ----------------- -----------------
----------- ----------------- ------------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
General Obligation Bonds 12% 34% 34% 19% 10%
Revenue Bonds:
Education Bonds 1% 5% 5% 15% 1%
Health Care Bonds -- 7% 11% 7% 17%
Housing Bonds 1% 8% 12% 16% 15%
Industrial Development Bonds 2% 8% -- 14% 5%
Transportation Bonds 1% 4% 12% 4% 9%
Other Revenue Bonds 15% 10% 7% 8% 9%
Utility Bonds -- 8% 2% 3% 11%
Water and Sewer Bonds -- -- 14% -- --
Alternative Minimum Tax Bonds 4% 12% 1% 9% 10%
Variable Rate Notes 50% -- -- -- --
Tax-Exempt Commercial Paper 4% -- -- -- --
Cash Equivalents 10% 4% 2% 5% 13%
----------- ----------------- ------------------- ----------------- -----------------
Total 100% 100% 100% 100% 100%
</TABLE>
- --------------------------------------------------------------------------------
Many municipalities insure their obligations with insurance underwritten by
insurance companies which undertake to pay a holder, when due, the interest and
principal amount on an obligation if the issuer defaults on its obligations.
Although bond insurance reduces the risk of loss due to default by the issuer,
there in no assurance that the insurance company will meet its obligations.
Also, some of the
--------
64
<PAGE>
1784 FUNDS
securities have credit enhancements (letters of credit or guarantees issued by
third party domestic or foreign banks or other institutions). At November 30,
1995, the percentage of securities with credit enhancement are as follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LETTERS OF
CREDIT BOND INSURANCE
----------- ---------------
----------- ---------------
<S> <C> <C>
1784 Tax-Free Money Market Fund 16.3% 22.4%
1784 Tax-Exempt Medium-Term Income Fund -- 28.6%
1784 Massachusetts Tax-Exempt Income Fund -- 23.3%
1784 Rhode Island Tax-Exempt Income Fund -- 71.2%
1784 Connecticut Tax-Exempt Income Fund 2.2% 34.5%
</TABLE>
- --------------------------------------------------------------------------------
The ratings of long-term debt holdings as a percentage of total value of
investments at November 30, 1995 is as follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1784 1784 1784 1784
STANDARD & 1784 1784 TAX-EXEMPT MASS. R.I. CONN.
POOR'S SHORT-TERM U.S. GOV'T 1784 MEDIUM-TERM TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
RATINGS INCOME INCOME INCOME INCOME INCOME INCOME INCOME
(UNAUDITED) FUND FUND FUND FUND FUND FUND FUND
--------------- ------------- ----------- ----------------- --------------- --------------- ---------------
--------------- ------------- ----------- ----------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
AAA 37% 87% 51% 40% 36% 53% 55%
AA+ -- -- -- 2% -- 11% 1%
AA 2% -- 5% 16% 1% 9% 6%
AA- 3% -- 7% 4% 2% 3% 11%
A+ 10% -- 10% 2% 31% -- 3%
A 20% -- 8% 9% 19% 7% 8%
A- 9% -- 7% 10% 1% -- 1%
BBB+ -- -- -- 7% 4% -- --
BBB 6% -- 4% 3% 2% 3% 1%
B -- 1% -- -- -- -- --
Not Rated 13% 12% 8% 7% 4% 14% 14%
--------------- ------------- ----------- ----------------- --------------- --------------- ---------------
100% 100% 100% 100% 100% 100% 100%
</TABLE>
- --------------------------------------------------------------------------------
8. LINE OF CREDIT
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
The Funds have a bank line of credit. Borrowings under the line of credit
are secured by investment securities of the borrowing Fund, which may not exceed
10% of the Fund's total assets for the Money
(CONTINUED)
--------
65
<PAGE>
NOVEMBER 30, 1995
Notes to Financial Statements (CONTINUED)
(Unaudited)
Market Funds, 1784 U.S. Government Income, 1784 Tax-Exempt Medium-Term Income,
1784 Massachusetts Tax-Exempt Income, 1784 Growth and Income and 1784 Asset
Allocation Funds and 15% of the Fund's total assets for the 1784 Short-Term
Income, 1784 Income, 1784 Rhode Island Tax-Exempt Income, 1784 Connecticut
Tax-Exempt Income and 1784 International Equity Funds. No borrowings were
outstanding for the period ended November 30, 1995.
9. SHAREHOLDER VOTING RESULTS
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
On Friday, October 27, 1995, a special meeting of the 1784 International
Equity Fund was held in Boston, Massachusetts. The shareholders were asked to
vote on and approve two proposals relating to the 1784 International Equity
Fund. Each Proposal and the result of the shareholder meeting are set forth
below:
I. Proposal to consider and vote upon approval of a new Investment Advisory
Agreement between Kleinwort Benson Investment Management Americas Inc.
and the 1784 Funds, on behalf of the 1784 International Equity Fund.
<TABLE>
<S> <C>
For 17,698,605
Against 0
Abstain 330
</TABLE>
II. Proposal to consider and vote on ratification of the selection of
Coopers & Lybrand L.L.P., as the independent certified public accountants
of the 1784 International Equity Fund for the year ended May 31, 1996.
<TABLE>
<S> <C>
For 17,698,605
Against 0
Abstain 330
</TABLE>
There were no broker non-votes submitted and no other proposals voted on at
such meeting.
10. ORANGE COUNTY
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
On July 19, 1995, the Orange County, California Notes held by the 1784
Tax-Free Money Market Funds, which originally provided for an interest rate of
4.50% payable at maturity on July 19, 1995, were modified to provide for an
effective interest rate of 5.45%, a portion of which shall be paid monthly in
cash and the remainder of which shall accrue until maturity, and a maturity date
of June 30, 1996. In addition, the Adviser agreed that, if necessary to prevent
the deviation of the 1784 Tax-Free Money Fund's per share net asset value
calculation from the amortized cost price per share from exceeding 0.5%, it will
purchase (or cause an affiliate to purchase) all or a portion of the Notes at a
price equal to the amortized cost of the Notes, including all accrued and unpaid
interest other than penalty interest.
--------
66
<PAGE>
BOARD OF TRUSTEES
David H. Carter
Tarrant Cutler
Kenneth A. Froot
Kathryn Flacke Muncil
Robert A. Nesher
INVESTMENT ADVISER
The First National Bank of Boston
Boston, MA 02110
CO-ADVISER FOR
1784 INTERNATIONAL EQUITY FUND
Kleinwort Benson Investment
Management Americas Inc.
New York, NY 10166
ADMINISTRATOR
SEI Financial Management Corporation
Wayne, PA 19087
DISTRIBUTOR
SEI Financial Services Company
Wayne, PA 19087
LEGAL COUNSEL
Bingham, Dana & Gould
Boston, MA 02110
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
Boston, MA 02109
CUSTODIAN
The First National Bank of Boston
Boston, MA 02110
1784 FUNDS
SEMI-ANNUAL REPORT
NOVEMBER 30, 1995
MONEY MARKET FUNDS
1784 U.S. Treasury Money Market Fund
1784 Tax-Free Money Market Fund
BOND FUNDS
1784 Short-Term Income Fund
1784 U.S. Government Medium-Term Income Fund
1784 Income Fund
1784 Tax-Exempt Medium-Term Income Fund
1784 Massachusetts Tax-Exempt Income Fund
1784 Rhode Island Tax-Exempt Income Fund
1784 Connecticut Tax-Exempt Income Fund
STOCK FUNDS
1784 Growth and Income Fund
1784 Asset Allocation Fund
1784 International Equity Fund
FOR MORE INFORMATION, INCLUDING A PROSPECTUS,
CALL 1-800-252-1784.
[LOGO]
SOUND CHOICES. STRAIGHT TALK.
INVESTMENT MANAGEMENT STRENGTH.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUNDS NAMED ABOVE.
THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN A
FUND UNLESS PRECEDED OR ACCOMPANIED BY A CURRENTLY EFFECTIVE PROSPECTUS.
BKB-F-017-02
<PAGE>
1784 FUNDS
1784 INSTITUTIONAL
U.S. TREASURY
MONEY MARKET
FUND
[LOGO]
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
-----------------------
NOVEMBER 30, 1995
-----------------------
<PAGE>
FUND OBJECTIVE
1784 INSTITUTIONAL U.S. TREASURY
MONEY MARKET FUND To preserve principal
value and maintain a high degree of liquidity
while providing current income.
TABLE OF CONTENTS
- ----------------------------------------
Letter to Shareholders 1
Investment Adviser's Report 2-3
Financial Statements 4-11
[LOGO]
SOUND CHOICES. STRAIGHT TALK.
INVESTMENT MANAGEMENT STRENGTH.
THE 1784 FUNDS:
- - are not insured by the FDIC or any other governmental agency;
- - are not guaranteed by The First National Bank of Boston or any of its
affiliates;
- - are not deposits or other obligations of The First National Bank of Boston
or any of its affiliates;
- - involve investment risks, including possible loss of the principal amount
invested.
The First National Bank of Boston serves as investment adviser, custodian and
fund accountant for the 1784 Funds. The 1784 Funds are distributed by SEI
Financial Services Company, a party independent of The First National Bank of
Boston or any of its affiliates.
<PAGE>
NOVEMBER 30, 1995 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
LETTER TO SHAREHOLDERS
[PHOTO OF ALLEN W. CROESSMANN, MANAGING DIRECTOR AND ROBERT NESHER, PRESIDENT]
We are pleased to provide you with this semi-annual report on the 1784
Institutional U.S. Treasury Money Market Fund. During the past six months,
the Fund has performed well against a backdrop of generally declining
interest rates, begun when the Federal Reserve reduced the Federal Funds Rate
in July 1995.
For the twelve months ended November 30, 1995, the Fund had a total return
of 5.68% compared with 5.62% for the Donoghue Government-Only average*. The
seven-day yield as of November 30, 1995 was 5.54%. In addition, Standard &
Poor's reaffirmed the Fund's "AAAm" rating in November. Through November 30,
1995, the Fund has grown to $535.8 million in assets.
Attaining comparable returns in the year ahead is likely to be difficult,
given that the Federal Reserve may act to stimulate the economy by lowering
interest rates still further. Should economic growth continue to slow, we
expect at least two and perhaps even three rate reductions in the next 12
months.
We thank you for selecting the 1784 Funds and welcome your questions or
comments. Please feel free to call 1-800-252-1784 between 8:30 a.m. and 8
p.m. Monday through Friday. As always, you can call for automated account
information 24 hours a day, 7 days a week.
Sincerely,
[SIG] [SIG]
Robert Nesher Allen W. Croessmann
President Managing Director, Investment Services
1784 Funds The First National Bank of Boston
*The returns indicated for the period would have been lower if certain fees
had not been waived by the investment adviser.
1
<PAGE>
NOVEMBER 30, 1995
INVESTMENT ADVISER'S REPORT
[PHOTO] Two words may provide the key to understanding
both the economy and the financial markets during the
past six months: "sof landing." The Federal Reserve
Board managed to avoid a recession while slowing an
economy that 12 months ago, was growing at an
unsustainable rate and generating clear inflationary
EDWARD G. RILEY, JR. signals.
CHIEF INVESTMENT OFFICER
To temper the pace of growth, the Federal Reserve Board began raising
interest rates in February 1994, a process that culminated in February 1995.
As it became apparent that this strategy might be too effective and drive the
economy into a recession, the Federal Reserve eased interest rates in July
1995, dropping the Federal Funds rate by .25% to 5.75%.
Most business cycle indicators show that the economy has slowed
substantially, despite third quarter economic growth of 4.2%. With the pace
of growth slowing, it is unclear how long the economy can avoid a recession
- -- and the financial markets a significant correction. Very heavy consumer
debt, slowing employment growth, and the maturity of this five-year recovery,
raise questions about 1996. The Federal Reserve may well need to adjust rates
downward two or three more times in the next 12 months.
These adjustments are a delicate balancing act. There is still ample
evidence that inflation is subdued; however, the bond market has become
increasingly sensitive to signs of inflation. Ordinarily, we would expect
upward pressure on wages, particularly since the unemployment rate is just
5.5%. In fact, wage increases and slower productivity improvement -- both of
which we forecast for 1996 -- push costs up late in an economic cycle. The
result: either costs rise (inflation) or profits decline. In short, economic
and financial market conditions could be less favorable in the coming year.
[GRAPH]
The 1784 Institutional U.S. Treasury Money Market Fund demonstrated good
relative performance during the period. For the year ended November 30, 1995,
the Fund had a total return of 5.68% compared with 5.62% for the Donoghue
Government-Only
2
<PAGE>
1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
average. The seven day yield as of November 30 was 5.54%. The
Fund invests primarily in U.S. Treasury Bills and Notes, U.S. Government
Agency Securities and repurchase agreements backed by U.S. Treasury
securities in an amount equal to 102% of the value of the repurchase
agreements. In the coming months, we will seek to reduce our investments in
repurchase agreements and to lock-in yields with longer term-to-maturity
securities.
We are also managing the Fund with the goal of maintaining its "AAAm"
rating, which was reaffirmed by Standard & Poor's in November. The rating is
based on an analysis of the Fund's credit quality, market price exposure and
management. The rating signifies that in the opinion of Standard & Poor's,
the Fund offers excellent safety of investment principal and superior
capacity to maintain a $1.00 per share value at all times. Please keep in
mind that past performance is no guarantee of future results, that an
investment in a money market fund is neither insured nor guaranteed by the
U.S. Government, and that there can be no assurance that the Fund will be
able to maintain a stable net asset value of $1.00 per share. The Fund
attempts to maintain these characteristics through conservative investment
practices and strict internal controls. The Fund is reviewed on a weekly basis
by Standard & Poor's.
/s/ Edward G. Riley, Jr.
Edward G. Riley, Jr.
Chief Investment Officer
The First National Bank of Boston
3
<PAGE>
NOVEMBER 30, 1995
Statement of Net Assets
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------
<S> <C> <C>
U.S. Treasury Obligations -- 35.9%
U.S. Treasury Bills
5.423%+ 12/07/95 $ 9,000 $ 8,992
5.603%+ 12/21/95 92,000 91,717
5.498%+ 01/04/96 15,000 14,925
6.254%+ 03/07/96 10,000 9,841
6.110%+ 05/02/96 18,000 17,582
5.663%+ 05/30/96 22,600 21,975
5.717%+ 07/25/96 9,000 8,680
5.605%+ 08/22/96 5,000 4,804
5.602%+ 10/17/96 5,000 4,763
U.S. Treasury Note
4.375%, 08/15/96 9,000 8,910
----------
Total U.S. Treasury Obligations
(Cost $192,189) 192,189
----------
U.S. Government Agency Obligations --
21.1%
Federal Farm Credit Bank
Discount Note
5.702%+ 12/05/95 9,000 8,994
5.687%+ 12/06/95 5,000 4,996
5.534%+ 12/07/95 18,500 18,483
Federal Home Loan Bank
Discount Note
5.801%+ 12/01/95 15,000 15,000
5.622%+ 12/04/95 20,000 19,992
5.646%+ 12/06/95 13,000 12,990
Federal Home Loan Mortgage
Corporation Discount
Note
5.693%+ 12/05/95 9,000 8,994
Student Loan Marketing
Association
5.630%, 07/19/96(A) 5,000 5,000
5.870%, 11/01/96(A) 5,000 5,011
5.650%, 11/24/97(A) 10,000 10,002
5.810%, 01/21/98(A) 3,000 3,011
5.690%+ 02/22/99(A) 500 499
----------
Total U.S. Government Agency Obligations
(Cost $112,972) 112,972
----------
<CAPTION>
- -----------------------------------------------------
VALUE
DESCRIPTION PAR (000) (000)
- -----------------------------------------------------
<S> <C> <C>
Cash Equivalents -- 5.2%
Dreyfus U.S. Treasury Cash
Management Money Market
Fund $ 12,779 $ 12,779
Lehman Brothers
Institutional U.S.
Treasury Instrument
Money Market Fund 15,000 15,000
----------
Total Cash Equivalents
(Cost $27,779) 27,779
----------
Repurchase Agreements -- 38.2%
Lehman Brothers 5.820%,
dated 11/30/95, matures
12/1/95, repurchase
price $95,015,358
(collateralized by
various U.S. Treasury
Bonds ranging in par
value
$451,350-$20,750,370,
8.125%-9.125%,
5/15/18-8/15/20; total
market value
$96,900,000) 95,000 95,000
Sanwa Bank 5.875%, dated
11/30/95, matures
12/1/95, repurchase
price $110,017,951
(collateralized by
various U.S. Treasury
Bills ranging in par
value
$17,718,580-$34,661,440,
9/19/96-11/16/96; U.S.
Treasury Notes ranging
in par value
$28,386,020-$33,220,940,
8.625%-8.875%,
8/15/98-11/30/00; total
market value
$112,200,000) 110,000 110,000
----------
Total Repurchase Agreements
(Cost $205,000) 205,000
----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
4
<PAGE>
1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
<TABLE>
<CAPTION>
- -----------------------------------------------------
VALUE
DESCRIPTION (000)
- -----------------------------------------------------
<S> <C> <C>
Total Investments -- 100.4%
(100.4% of Net Assets)
(Cost $537,940) $ 537,940
----------
Total Other Assets and Liabilities,
Net -- (0.4)% (2,131)
----------
Net Assets:
Capital Shares (unlimited authorization -
no par value) based on 535,727,450
outstanding shares of beneficial
interest 535,727
Accumulated Net Realized Gain on
Investments 82
----------
Total Net Assets -- 100.0% $ 535,809
----------
----------
Net Asset Value, Offering Price and
Redemption Price Per Share $1.00
----------
----------
</TABLE>
(A)VARIABLE RATE SECURITY - THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT ON NOVEMBER 30, 1995.
+ EFFECTIVE YIELD
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
5
<PAGE>
FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 1995
Statement of Operations (000)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1784 INSTITUTIONAL
U.S. TREASURY
MONEY MARKET
-------------------
-------------------
INTEREST INCOME: $ 12,994
<S> <C>
--------
EXPENSES:
Investment Advisory Fees 443
Waiver of Investment Advisory Fees (177)
Administrator Fees 242
Reimbursement of Expenses by Adviser (6)
Registration Fees 27
Transfer Agent Fees & Expenses 44
Professional Fees 28
Fund Accounting Fees 12
Printing 17
Custodian Fees 39
Amortization of Deferred Organizational Costs 3
Trustee Fees 4
Other Expenses 12
--------
Total Expenses, Net 688
--------
Net Investment Income 12,306
--------
Net Realized Gain on Investments 97
--------
Net Increase in Net Assets Resulting from Operations $ 12,403
--------
--------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
6
<PAGE>
FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 1995 AND FOR 1784 INSTITUTIONAL
U.S. TREASURY MONEY MARKET FUND
THE YEAR ENDED MAY 31, 1995
Statements of Changes in Net Assets (000)
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1784 INSTITUTIONAL
U.S. TREASURY
MONEY MARKET
------------------------
------------------------
6/1/95 6/1/94
TO TO
11/30/95 5/31/95
----------- -----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income $ 12,306 $ 13,209
Net Realized Gain on Investments Sold 97 4
----------- -----------
Net Increase in Net Assets Resulting from Operations 12,403 13,213
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (12,306) (13,209)
Realized Capital Gains 0 0
----------- -----------
Total Distributions (12,306) (13,209)
SHARE TRANSACTIONS:
Proceeds from Shares Issued 2,303,149 3,035,609
Reinvestment Cost of Cash Distributions 4,814 5,500
Shares Redeemed (2,167,836) (2,827,096)
----------- -----------
Increase in Net Assets from Share Transactions 140,127 214,013
----------- -----------
Total Increase in Net Assets 140,224 214,017
NET ASSETS:
Beginning of Period 395,585 181,568
----------- -----------
NET ASSETS:
End of Period $ 535,809 $ 395,585
----------- -----------
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares Issued 2,303,149 3,035,609
Shares Issued in Lieu of Cash Distributions 4,814 5,500
Shares Redeemed (2,167,836) (2,827,096)
----------- -----------
Net Increase in Capital Shares Transactions 140,127 214,013
----------- -----------
----------- -----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
--------
7
<PAGE>
Financial Highlights
(Unaudited)
- --------------------------------------------------------------------------------
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
NET NET
ASSET DISTRIBUTIONS NET ASSETS
VALUE NET FROM NET ASSET VALUE END
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD
OF PERIOD INCOME INCOME OF PERIOD RETURN (000)
------------- ------------- --------------- ------------- ------ -----------
<S> <C> <C> <C> <C> <C> <C>
1784 INSTITUTIONAL
U.S. TREASURY
MONEY MARKET
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** $ 1.00 0.03 (0.03) $ 1.00 2.81%* $ 535,809
For the year ended
May 31, 1995 $ 1.00 0.05 (0.05) $ 1.00 5.05% $ 395,585
For the period ended May 31,
1994(1) $ 1.00 0.03 (0.03) $ 1.00 2.99%* $ 181,568
<CAPTION>
RATIO RATIO OF
RATIO OF EXPENSES NET INCOME
RATIO OF NET TO AVERAGE TO AVERAGE
OF EXPENSES INCOME NET ASSETS NET ASSETS
TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING
NET ASSETS NET ASSETS WAIVERS) WAIVERS)
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
1784 INSTITUTIONAL
U.S. TREASURY
MONEY MARKET
- ---------------------------------
- ---------------------------------
For the six month period ended
November 30, 1995** 0.31% 5.55% 0.39% 5.47%
For the year ended
May 31, 1995 0.30% 5.12% 0.41% 5.01%
For the period ended May 31,
1994(1) 0.22% 3.16% 0.55% 2.83%
</TABLE>
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
** RATIOS FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 1995 (UNAUDITED) HAVE BEEN
ANNUALIZED.
(1)THE 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND COMMENCED OPERATIONS
ON JUNE 14, 1993. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
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8
<PAGE>
NOVEMBER 30, 1995 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
Notes to Financial Statements
(Unaudited)
1. Organization
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
The 1784 Institutional U.S. Treasury Money Market Fund is a portfolio of
the 1784 Funds (the "Trust"), an open-end investment company registered under
the Investment Company Act of 1940, as amended. The Trust is presently
authorized to offer shares in 13 separate portfolios (the "Funds"):
<TABLE>
<CAPTION>
MONEY MARKET FUNDS: STOCK FUNDS:
<S> <C>
1784 U.S. Treasury Money Market Fund 1784 Growth and Income Fund
1784 Tax-Free Money Market Fund 1784 Asset Allocation Fund
1784 Institutional U.S. Treasury Money Market Fund 1784 International Equity Fund
BOND FUNDS:
1784 Short-Term Income Fund
1784 U.S. Government Medium-Term Income Fund
1784 Income Fund
1784 Tax-Exempt Medium-Term Income Fund
1784 Massachusetts Tax-Exempt Income Fund
1784 Rhode Island Tax-Exempt Income Fund
1784 Connecticut Tax-Exempt Income Fund
</TABLE>
The financial statements of the 1784 Institutional U.S. Treasury Money
Market Fund are included herein. The financial statements of the remaining Funds
are presented separately. The assets of each Fund are segregated, and a
shareholder's interest is limited to the Fund in which shares are held.
2. Significant Accounting Policies
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
The following is a summary of significant accounting policies followed by
the 1784 Institutional U.S. Treasury Money Market Fund (the "Fund").
SECURITY VALUATION -- Investment securities of the Fund are stated at amortized
cost which approximates market value. Under this valuation method, purchase
discounts and premiums are accreted and amortized ratably to maturity and are
included in interest income.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the trade date of the security purchase or sale. Costs used in
determining net realized capital gains and losses on the sale of securities are
those of the specific securities sold, adjusted for the accretion and
amortization of the purchase discounts and premiums during the respective
holding period. Interest income is recorded on the accrual basis.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for Repurchase
Agreements are held by the Fund's custodian bank until maturity of the
Repurchase Agreements. Provisions of the Agreements and procedures adopted by
the Adviser are intended to ensure that the market value of the collateral,
--------
9
<PAGE>
including accrued interest thereon, is sufficient in the event of default by the
counterparty. If the counterparty defaults and the value of the collateral
declines or if the counterparty enters into insolvency proceedings, realization
on the collateral by the Fund may be delayed or limited.
EXPENSES -- Expenses that are directly related to the Fund are charged directly
to the Fund. Other operating expenses of the Trust are prorated to the Funds on
the basis of relative net assets.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income are
declared on a daily basis and are payable on the first business day of the
following month. Any net realized capital gains on sales of securities for the
Fund are distributed to its shareholders at least annually.
FEDERAL INCOME TAXES -- The Trust's policy is to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Accordingly, no
provision for Federal income taxes is required in the financial statements.
ORGANIZATION COSTS -- These costs have been deferred by the Fund and are being
amortized on a straight-line basis over a period of sixty months commencing with
operations. If any or all of the shares representing initial capital of the Fund
are redeemed by any holder thereof prior to the end of the amortization period,
the proceeds will be reduced by the unamortized organization cost balance in the
same proportion as the number of shares redeemed bears to the initial shares
outstanding immediately preceding the redemption.
3. Investment Advisory, Custodial and Accounting Services
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Pursuant to an investment advisory agreement dated June 1, 1993, investment
advisory services are provided to the Trust by The First National Bank of Boston
(the "Adviser"). The Adviser is entitled to receive a fee of 0.20% of the
average daily net assets of the Institutional U.S. Treasury Money Market Fund.
Such fee is computed daily and paid monthly.
The Trust and The First National Bank of Boston (the "Custodian") are
parties to a custodial agreement dated June 1, 1993, under which the Custodian
holds cash, securities and other assets of the Trust as required by the
Investment Company Act of 1940. The Custodian is entitled to receive an annual
fee, to be paid monthly, of 0.0100% for the first $100 million in average daily
net assets, 0.0075% for the next $100 million and 0.0050% for the average daily
net assets over $200 million. In its capacity as custodian to the Trust, the
Custodian plays no role in determining the investment policies of the Trust or
which securities are to be purchased or sold by the Funds.
Under a separate agreement, The First National Bank of Boston also provides
certain accounting services for the Trust and is entitled to receive a fee for
these services of $30,000 per Fund per year.
The First National Bank of Boston voluntarily waives a portion of its
advisory fees. In addition, The First National Bank of Boston reimburses certain
other expenses incurred by the Funds in order to help the Funds maintain a
competitive expense ratio.
--------
10
<PAGE>
NOVEMBER 30, 1995 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
Notes to Financial Statements
4. Administrative, Transfer Agent and Distribution Services
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Pursuant to an administrative agreement dated June 7, 1993, SEI Financial
Management Corporation ("SEI") acts as the Trust's Administrator. Under the
terms of such agreement, SEI is entitled to receive an annual fee of 0.15% of
the Trust's first $300 million of average daily net assets, 0.12% of the Trust's
second $300 million of average daily net assets and 0.10% of the Trust's average
daily net assets over $600 million. Such fee is computed daily and paid monthly.
Effective for the period June 1, 1995 to November 17, 1995, SEI Financial
Management Corporation acted as the Transfer Agent of the Trust. Pursuant to an
agreement dated November 17, 1995, State Street Bank and Trust Company acts as
the Transfer Agent of the Trust. As such, State Street Bank and Trust Company
provides transfer agency, dividend disbursing, shareholder servicing and
administrative services for the Trust.
SEI Financial Services Company ("SFS"), a wholly owned subsidiary of SEI,
acts as the Trust's Distributor pursuant to a distribution agreement dated June
1, 1993. SFS is paid no fees by the Trust.
Certain officers of the Trust are also officers of the Administrator. Such
officers are paid no fees by the Trust.
The Funds have paid legal fees to a law firm of which the Secretary of the
Trust is a member.
5. Line of Credit
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
The Fund has a bank line of credit. Borrowings under the line of credit are
secured by investment securities of the Fund, which may not exceed 10% of the
Fund's total assets. No borrowings were outstanding at November 30, 1995.
--------
11
<PAGE>
BOARD OF TRUSTEES
David H. Carter
Tarrant Cutler
Kenneth A. Froot
Kathryn Flacke Muncil
Robert A. Nesher
INVESTMENT ADVISER
The First National Bank of Boston
Boston, MA 02110
ADMINISTRATOR
SEI Financial Management Corporation
Wayne, PA 19087
DISTRIBUTOR
SEI Financial Services Company
Wayne, PA 19087
LEGAL COUNSEL
Bingham, Dana & Gould
Boston, MA 02110
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
Boston, MA 02109
CUSTODIAN
The First National Bank of Boston
Boston, MA 02110
SEMI-ANNUAL REPORT
NOVEMBER 30, 1995
1784 INSTITUTIONAL U.S.
TREASURY MONEY MARKET FUND
FOR MORE INFORMATION, INCLUDING A PROSPECTUS,
CALL 1-800-252-1784.
[LOGO]
SOUND CHOICES. STRAIGHT TALK.
INVESTMENT MANAGEMENT STRENGTH.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUND NAMED ABOVE.
THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE
FUND UNLESS PRECEDED OR ACCOMPANIED BY A CURRENTLY EFFECTIVE PROSPECTUS.
BKB-F-018-02
