Semi-Annual
Report
Boston
1784
Funds
[logo omitted]
To Shareholders
November 30, 1997
<PAGE>
TABLE OF CONTENTS
================================================================================
LETTER TO SHAREHOLDERS 1
PERFORMANCE HIGHLIGHTS OF THE FUNDS 2
TERMS YOU NEED TO KNOW 4
FUND OBJECTIVES 5
INVESTMENT ADVISER'S REPORT 6
FINANCIAL STATEMENTS 10
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BOSTON 1784 FUNDS:
[SQUARE BULLET] ARE NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY;
[SQUARE BULLET] ARE NOT GUARANTEED BY BANKBOSTON, N.A. OR ANY OF ITS
AFFILIATES;
[SQUARE BULLET] ARE NOT DEPOSITS OR OBLIGATIONS OF BANKBOSTON, N.A. OR ANY
OF ITS AFFILIATES;
[SQUARE BULLET] INVOLVE INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE
PRINCIPAL AMOUNT INVESTED.
BANKBOSTON, N.A. SERVES AS INVESTMENT ADVISER, CUSTODIAN AND SHAREHOLDER
SERVICING AGENT FOR BOSTON 1784 FUNDS. BOSTON 1784 FUNDS ARE DISTRIBUTED BY SEI
INVESTMENTS DISTRIBUTION CO., A PARTY INDEPENDENT OF BANKBOSTON, N.A. OR ANY OF
ITS AFFILIATES. FINANCIAL SERVICES COUNSELORS ARE REGISTERED REPRESENTATIVES OF
BANKBOSTON INVESTOR SERVICES, INC. (MEMBER NASD/SIPC), A WHOLLY-OWNED SUBSIDIARY
OF BANKBOSTON, N.A.
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<PAGE>
BOSTON 1784 FUNDS
LETTER TO SHAREHOLDERS
================================================================================
ALLEN CROESSMANN
MANAGING DIRECTOR
[PHOTOGRAPH OF ALLEN CROESSMANN OMITTED]
ROBERT NESHER
PRESIDENT
[PHOTOGRAPH OF ROBERT NESHER OMITTED]
We are pleased to provide you with this semi-annual report on Boston 1784 Funds.
During the past six months, the Funds achieved a significant milestone: in July
1997, total assets in Boston 1784 Funds surpassed $7 billion, which placed the
Funds among the 20 largest bank-managed fund families in the nation. As of
November 30, 1997, more than 35,000 individual investors owned shares in Boston
1784 Funds.
Two recently introduced Funds helped support the growth of the Boston 1784 Funds
family. In June 1997, we opened Boston 1784 Florida Tax-Exempt Income Fund.
Boston 1784 Institutional Prime Money Market Fund was opened in November 1997.
The Boston 1784 Funds family now totals seventeen funds.
While you will find more information on the performance of specific Boston 1784
Funds inside this report, we particularly want to highlight the results of
several funds. Based on total return for the twelve months ended November 30,
1997:
[SQUARE BULLET] BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND ranked 1st out
of 74 funds in the Lipper Other States Intermediate Municipal
Funds category.
[SQUARE BULLET] BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND ranked 1st out
of 10 funds in the Lipper Massachusetts Intermediate Municipal
Funds category.
[SQUARE BULLET] BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND ranked 2nd out of
74 funds in the Lipper Other States Intermediate Municipal Funds
category.
[SQUARE BULLET] BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND ranked 5th out of
141 funds in the Lipper Intermediate Bond Funds category.
[SQUARE BULLET] BOSTON 1784 TAX-FREE MONEY MARKET FUND ranked 12th out of 137
funds in the Lipper Tax-Free Money Market Funds category.
Please keep in mind that past performance is no guarantee of future results. The
Funds' total returns and resulting rankings reflect advisory fee waivers.
You can learn more about these Funds by calling 1-800-BKB-1784 to request a
prospectus or by discussing them with your Investment Counselor. Also, as we
approach 1998, this may be a good time to review your financial goals and
investment approach with your Investment Counselor. If you do not have an
Investment Counselor and would like an appointment with one, or if you have
questions about your account, we invite you to call 1-800-BKB-1784, Monday
through Friday from 8 a.m. to 8 p.m. and Saturday and Sunday from 9:00 a.m. to
4:00 p.m. (Eastern time). Of course, you can reach our automated system at
1-800-BKB-1784 24 hours a day.
We look forward to helping you meet your investing goals.
Sincerely,
/S/Signature /S/Signature
Robert Nesher Allen Croessmann
President Managing Director, Investment Services
Boston 1784 Funds BankBoston, N.A.
1
<PAGE>
PERFORMANCE HIGHLIGHTS OF THE FUNDS
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FOR THE PERIOD JUNE 1, 1997 THROUGH NOVEMBER 30, 1997
<TABLE>
<CAPTION>
INCOME
TOTAL NET ASSETS TOTAL RETURN(1) NAV SHARE PRICE YIELD DISTRIBUTIONS
------------------------------------------------------------------------------------
11-30-97 11-30-97 HIGH LOW 30-DAY 7-DAY PER
(IN MILLIONS) SHARE
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS
- -----------------------------------------------------------------------------------------------------------------------
Boston 1784 Tax-Free Money Market $924.5 1.68% $1.00 $1.00 $1.00 N/A 3.40% $ 0.02
Boston 1784 U.S. Treasury Money Market 363.2 2.48 1.00 1.00 1.00 N/A 4.93 0.02
Boston 1784 Prime Money Market 136.7 2.55 1.00 1.00 1.00 N/A 5.10 0.03
- -----------------------------------------------------------------------------------------------------------------------
BOND FUNDS
- -----------------------------------------------------------------------------------------------------------------------
Boston 1784 Short-Term Income $188.8 3.83% $10.07 $10.11 $9.98 5.59% N/A $ 0.28
Boston 1784 Income 364.8 6.01 10.27 10.36 9.99 6.11 N/A 0.32
Boston 1784 U.S. Government
Medium-Term Income 234.6 5.22 9.57 9.59 9.36 5.60 N/A 0.28
- -----------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INCOME FUNDS
- -----------------------------------------------------------------------------------------------------------------------
Boston 1784 Tax-Exempt
Medium-Term Income $276.3 5.27% $10.37 $10.49 $10.18 4.47% N/A $0.24
Boston 1784 Connecticut
Tax-Exempt Income 114.0 5.04 10.63 10.66 10.38 4.40 N/A 0.25
Boston 1784 Florida
Tax-Exempt Income(2) 47.8 4.02 10.18 10.21 10.00 4.30 N/A 0.20
Boston 1784 Massachusetts
Tax-Exempt Income 176.3 5.17 10.29 10.29 10.01 4.34 N/A 0.23
Boston 1784 Rhode Island
Tax-Exempt Income 62.6 4.74 10.51 10.58 10.31 4.41 N/A 0.25
- -----------------------------------------------------------------------------------------------------------------------
STOCK FUNDS
- -----------------------------------------------------------------------------------------------------------------------
Boston 1784 Asset Allocation $ 41.8 10.84% $14.12 $14.87 $13.40 N/A N/A $ 0.19
Boston 1784 Growth and Income 509.4 11.25 19.10 19.99 17.43 N/A N/A 0.06
Boston 1784 Growth 293.0 9.68 12.59 14.75 12.20 N/A N/A --
Boston 1784 International Equity 448.2 (7.81) 12.03 14.10 11.87 N/A N/A --
<FN>
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 THIS WILL BE SO ON A CONTINUING BASIS.
INVESTMENTS IN THE FUNDS ARE NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT.
(1) RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(2) BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND COMMENCED OPERATIONS ON
JUNE 30, 1997. TOTAL RETURN IS FOR THE PERIOD JUNE 30, 1997 TO
NOVEMBER 30, 1997.
</FN>
</TABLE>
2
<PAGE>
BOSTON 1784 FUNDS
TOTAL RETURNS FOR THE PERIOD
JUNE 1, 1997 - NOVEMBER 30, 1997
================================================================================
[BAR GRAPH OMITTED PLOT POINTS AS FOLLOWS:]
TOTAL RETURNS FOR THE SIX MONTHS
BOSTON 1784 FUNDS ENDED NOVEMBER 30, 1997(1)
- ---------------------------------------------------------------------
TAX-FREE MONEY MARKET 1.68%
U.S. TREASURY MONEY MARKET 2.48%
PRIME MONEY MARKET 2.55%
SHORT-TERM INCOME 3.83%
INCOME 6.01%
U.S. GOVERNMENT MEDIUM-TERM INCOME 5.22%
TAX-EXEMPT MEDIUM-TERM INCOME 5.27%
CONNECTICUT TAX-EXEMPT INCOME 5.04%
FLORIDA TAX-EXEMPT INCOME(2) 4.02%
MASSACHUSETTS TAX-EXEMPT INCOME 5.17%
RHODE ISLAND TAX-EXEMPT INCOME 4.74%
ASSET ALLOCATION 10.84%
GROWTH AND INCOME 11.25%
GROWTH 9.68%
INTERNATIONAL EQUITY (7.81)%
(1) RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(2) FLORIDA TAX-EXEMPT INCOME FUND COMMENCED OPERATIONS ON JUNE 30, 1997.
TOTAL RETURN IS FOR THE PERIOD JUNE 30, 1997 TO NOVEMBER 30, 1997.
3
<PAGE>
TERMS YOU NEED TO KNOW
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ADVISER is an organization employed by a mutual fund to give professional advice
on the fund's investments and asset management practices (also called the
investment adviser).
ASSETS are the investment holdings and cash owned by a mutual fund.
AVERAGE-WEIGHTED-MATURITY is an average of the maturity dates of the various
securities in a mutual fund based on the dollar value of those securities. It is
calculated by multiplying the market value of each portfolio security by the
time remaining to its maturity, adding these calculations and then dividing the
total by the market value of the portfolio.
BASIS POINT is one one-hundredth of a percentage point.
CAPITAL APPRECIATION is the increase in the market value of a mutual fund's
securities, as reflected in the net asset value of the fund's shares. Capital
appreciation (or growth) is a specific long-term objective of many mutual funds.
COUPON RATE is the stated interest rate on a bond.
DIVERSIFICATION is the practice of investing broadly across a number of
securities to reduce risk; a hallmark of mutual fund investing.
DURATION is a weighted average term-to-maturity of a mutual fund security's cash
flow.
EXPENSE RATIO is a fund's cost of doing business -- disclosed in the prospectus
- -- as a percent of its assets.
INCOME is the dividends, interest, and/or short-term capital gains paid to a
mutual fund's shareholders. Income is earned on a fund's investment portfolio
after deducting operating expenses.
INVESTMENT OBJECTIVE is the goal -- long-term capital growth or current income,
for example -- that an investor and mutual fund pursue together.
LIQUIDITY is the ability to redeem (sell back) all or part of your mutual fund
shares on any business day and receive the current value (which may be more or
less than the original cost).
MANAGEMENT FEE is the amount paid by a mutual fund to the investment adviser for
its services.
NET ASSET VALUE PER SHARE (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 total
number of shares outstanding.
PRINCIPAL is the basic amount of money you invest, not to be confused with
reinvested dividends or capital gains.
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. The calculation
is based on a formula set by the Securities and Exchange Commission.
YIELD is the percentage rate at which a fund's portfolio earns income, based on
a formula set by the Securities and Exchange Commission.
4
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BOSTON 1784 FUNDS
FUND OBJECTIVES
================================================================================
MONEY MARKET FUNDS
[SQUARE BULLET] BOSTON 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 tax.
[SQUARE BULLET] BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
To preserve principal value and maintain a high degree of
liquidity while providing current income.
[SQUARE BULLET] BOSTON 1784 PRIME MONEY MARKET FUND
To preserve principal value and maintain a high degree of
liquidity while providing current income.
BOND FUNDS
[SQUARE BULLET] BOSTON 1784 SHORT-TERM INCOME FUND
To maximize current income. Preservation of capital is a
secondary objective.
[SQUARE BULLET] BOSTON 1784 INCOME FUND
To maximize current income. Preservation of capital is a
secondary objective.
[SQUARE BULLET] BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
Current income consistent with preservation of capital.
TAX-EXEMPT FUNDS
[SQUARE BULLET] BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
Current income, exempt from federal income tax, consistent with
preservation of capital.
[SQUARE BULLET] BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
Current income, exempt from both federal and Connecticut
personal income tax. Preservation of capital is a secondary
objective.
[SQUARE BULLET] BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
Current income exempt from federal income tax through Fund
shares which are exempt from Florida intangible personal
property tax. Preservation of capital is a secondary objective.
[SQUARE BULLET] BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
Current income, exempt from both federal and Massachusetts
personal income tax, consistent with preservation of capital.
[SQUARE BULLET] BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
Current income, exempt from federal income tax, Rhode Island
personal income tax and the Rhode Island business corporation
tax. Preservation of capital is a secondary objective.
STOCK FUNDS
[SQUARE BULLET] BOSTON 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.
[SQUARE BULLET] BOSTON 1784 GROWTH AND INCOME FUND
Long-term growth of capital with a secondary objective of
income.
[SQUARE BULLET] BOSTON 1784 GROWTH FUND
To provide capital appreciation. Dividend income, if any, is
incidental to this objective.
[SQUARE BULLET] BOSTON 1784 INTERNATIONAL EQUITY FUND
Long-term growth of capital. Dividend income, if any, is
incidental to this objective.
5
<PAGE>
INVESTMENT ADVISER'S REPORT
================================================================================
EDWARD G. RILEY, JR.
CHIEF INVESTMENT OFFICER
[PHOTOGRAPH OF EDWARD G. RILEY, JR. OMITTED]
The fundamental strength of the U.S. economy and financial markets have been
dramatically demonstrated over the past few months. The tidal wave of Asian
financial turmoil did spread to Latin America, but thus far only ripples have
reached U.S. shores.
It may be worthwhile to begin with a look behind the headlines to see why
U.S. investors have remained relatively unscathed. First, however, we must admit
that the Asian picture is anything but sunny. South Korean stocks are at a
10-year low, down 61 percent from their peak. Thai stocks are at a 9-year low
after a 77 percent decline. Japanese stocks have slipped to 10-year lows.
These declines raise real concerns about the financial systems of important
Asian countries because so many bank loans are secured by depreciating real
estate and corporate securities. The risk has increased considerably in recent
years as Japanese and Chinese banks in particular have provided capital to fuel
the growth of Malaysia, Singapore, Thailand, Indonesia and, particularly, Hong
Kong. Indeed, Japanese loans to Asian companies rose from $40 billion in 1994 to
$265 billion in 1997, with $87 billion going to companies in Hong Kong. Chinese
banks are currently burdened with $200 billion in non-performing loans -- five
times the equity capital of all the banks in China. The consequences are evident
perhaps in the collapse of leading financial institutions in Japan, the looming
bankruptcies of former Asian corporate giants unable to obtain additional
financing, and the potential for default by governments like South Korea.
In a global economy, these developments are a source of concern worldwide.
Yet their impact in the U.S. and Europe so far has not been nearly as
significant as originally feared. Why have the U.S. financial markets been able
to withstand these pressures? We believe that perhaps the most important reason
is the steady, sustainable performance of the U.S. economy. Key sectors of the
U.S. economy remain strong: auto sales, while not increasing, have remained firm
and the housing sector continues to benefit from low interest rates. Consumer
confidence is at an all time high. The government deficit is down. Furthermore,
our financial system and institutions operate in a much more open and
above-board manner than those in many Asian countries.
Inflation, or the lack thereof, is at the root of U.S. financial health. The
Consumer Price Index hovers in the 2 percent range, while inflation as measured
by the Producer Price Index is virtually zero. We expect oil prices to fall in
reaction to OPEC's authorization of a 10 percent production increase. The U.S.
dollar is strong, which reduces the price of imports. Gold prices are at their
lowest levels in a decade, also a deflationary development. Aging baby boomers
in the U.S. are increasingly concerned with investing rather than spending,
which reduces demand and upward pressure on prices.
U.S. consumers and the economy are even likely to benefit -- at least
temporarily -- from problems in Asia. At a time when global over-
6
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BOSTON 1784 FUNDS
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capacity was already increasing price competition, weakening currencies and
deflation in Asia will reduce the price of imports even further and force U.S.
companies to lower their own prices to compete.
DOW JONES INDUSTRIAL AVERAGE
NOVEMBER 30, 1996-NOVEMBER 30, 1997
[LINE GRAPH OMITTED -- PLOT POINTS AS FOLLOWS:]
MONTHS INDEX LEVEL
- ------ -----------
11/96 6,381
12/96 6,540
1/97 6,850
2/97 7,000
3/97 6,520
4/97 7,160
5/97 7,430
6/97 7,890
7/97 8,030
8/97 7,820
9/97 8,030
10/97 7,580
11/97 7,823
STOCK MARKET REVIEW
The Dow Jones Industrial Average closed at 7823 on November 30, 1997 compared
to 7331 on May 31, 1997. Of course, this gain was achieved despite some
significant bumps, most notably on Monday, October 27, when the Dow dropped more
than 500 points.
We note that while many institutional investors viewed the market drop as a
signal to sell, many individuals saw it as a buying opportunity. Those who
stayed invested in the stock market made back their losses, and those who
invested on Tuesday, October 28 have seen a steady rise as the Dow approaches
its old record level of 8200.
The stock market remains strong for several reasons. We've discussed low
inflation and low interest rates. Another important factor is strong liquidity:
the high levels of cash that continue flowing into the stock market. Individual
investors keep putting money into the stock market by investing in equity mutual
funds. Inflows so far in 1997 have totaled $175 billion, ahead of last year's
record pace. Furthermore,
INVESTMENTS IN EQUITY MUTUAL FUNDS
NOVEMBER 30, 1996-NOVEMBER 30, 1997
[LINE GRAPH OMITTED -- PLOT POINTS AS FOLLOWS:]
MONTHS DOLLARS (IN TRILLIONS)
- ------ ----------------------
11/96 1.7
1/97 1.8
3/97 1.8
5/97 2.0
7/97 2.3
9/97 2.3
11/97 2.3
7
<PAGE>
INVESTMENT ADVISER'S REPORT
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mergers, acquisitions and share buyback programs reduced the supply of stock by
$9 billion in October alone. In other words, demand for stock is increasing
as the supply decreases.
As long as corporate earnings remain strong, the upward trend in stock prices
is likely to continue. Recently, however, a number of major companies have
announced earnings "surprises," and their share prices have declined
significantly in the aftermath. There are signs that earnings may deteriorate in
the year ahead, which could have a significant overall effect on the stock
market.
BOND MARKET REVIEW
At least for now, the problems in Asia are good news for U.S. interest rates
in that they are likely to slow U.S. growth, which will keep inflation low and
reduce the demand for credit still further. During the past six months,
long-term interest rates dropped about a full percentage point -- from 7 percent
to 6 percent -- which agrees with our projection for year-end 1997.
Some have voiced concern that Japanese banks would sell their extensive
holdings of U.S. Treasury securities in order to raise cash, a development that
would push up interest rates. Since these securities are among the
best-performing assets held by these banks, it is unlikely that they will choose
to sell them. Instead, there is evidence of a "flight to quality" as global
investors seek the safety of U.S. government securities. Keeping in mind that
bond prices increase as interest rates decline, this trend is likely to push
interest rates lower as global investors pay more for U.S. government
securities.
30-YEAR TREASURY BOND
NOVEMBER 30, 1996-NOVEMBER 30, 1997
[LINE GRAPH OMITTED--PLOT POINTS AS FOLLOWS:]
MONTHS RATE
- ------ ----
11/96 6.48
1/97 6.83
3/97 6.93
5/97 6.94
7/97 6.51
9/97 6.50
11/97 6.11
Another force is also boosting demand for bonds: some institutional investors
are selling stocks and equity mutual funds to preserve their profits as the
stock markets grow more volatile. As a result, inflows into bond mutual funds
are increasing at a rate of about $3 billion per month.
MONEY MARKET REVIEW
During the six-month period ended November 30, 1997, money market rates have
remained very stable with the Federal Funds rate at 5.50% since March 1997. With
economic growth continuing at a slow and sustainable pace and no signs of
inflation, it is unlikely that the Federal Reserve Board will increase short-
8
<PAGE>
BOSTON 1784 FUNDS
================================================================================
term interest rates soon. Complicating the situation is the likely impact of
any Federal Reserve Board increase on foreign exchange rates. Any increase would
weaken Asian currencies in comparison to the U.S. dollar, further destabilizing
the situation.
One of the possible longer term results of the Asian crisis may even be a
U.S. recession as imports increase, U.S. prices drop and exports to Asian
markets decline. The Federal Reserve Board may actually be forced to reduce
rates to avert such a slowdown, reducing the returns earned by money market
investors.
OUTLOOK
What do we foresee for 1998? At this point, interest rates -- both short- and
long-term -- are likely to remain stable within a narrow band. Stocks may be a
different story, particularly given increasing pressure on corporate earnings.
Although U.S. financial markets have weathered the Asian storm well so far, we
anticipate some negative impact in the year ahead. Specifically, we still
believe that a correction in stock prices of 20% or so is likely within the next
nine months. Such an adjustment is long overdue, but it should not deter any
long-term investor with a sound, well-considered strategy.
/S/Signature
Edward G.Riley, Jr.
Chief Investment Officer
BankBoston, N.A.
FEDERAL FUNDS RATE
NOVEMBER 30, 1994-NOVEMBER 30, 1997
[LINE GRAPH OMITTED--PLOT POINTS AS FOLLOWS:]
MONTHS RATE
- ------ ----
11/94 5.29
5/95 6.01
11/95 5.80
5/96 5.24
11/96 5.31
5/97 5.50
11/97 5.50
9
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 TAX-FREE MONEY MARKET FUND
- --------------------------------------------------------------------------------
[PIE GRAPH OMITTED--PLOT POINTS AS FOLLOWS:]
GENERAL OBLIGATION BONDS 9%
CASH EQUIVALENTS 3%
TAX-EXEMPT COMMERCIAL PAPER 2%
OTHER REVENUE BONDS 24%
HOUSING BONDS 6%
INDUSTRIAL DEVELOPMENT AND POLLUTION CONTROL BONDS 16%
HEALTH CARE BONDS 16%
EDUCATION BONDS 7%
TRANSPORTATION BONDS 1%
UTILITY BONDS 16%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 93.7%
ARIZONA -- 2.1%
Pima County, Industrial
Development Authority
RB (A)
3.900%, 12/03/97 $19,000 $19,000
-------
ARKANSAS -- 1.2%
Arkansas State Development
Finance Authority RB,
Higher Education Capital
Asset, FGIC (A) (B) (C)
3.900%, 12/04/97 5,200 5,200
Crossett, Pollution Control RB,
LOC (A) (B)
3.900%, 12/04/97 5,400 5,400
-------
10,600
-------
CALIFORNIA -- 1.6%
California State Cash Reserve
Program Authority RB,
Series B, MBIA
4.500%, 12/19/97 5,000 5,002
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
California State Health Facilities
Authority RB, MBIA (A)
3.700%, 12/03/97 $10,000 $10,000
-------
15,002
-------
COLORADO -- 7.5%
Colorado State Health Facilities
Authority RB, LOC (A)
4.000%, 12/04/97 25,000 25,000
Colorado State Health Facilities
Authority RB, Sisters Charity
Health, Series A, LOC (A)
3.900%, 12/04/97 10,100 10,100
Colorado State Health Facilities
Authority RB, Sisters Charity
Health, Series B, LOC (A) (B) (C)
3.900%, 12/04/97 15,000 15,000
Colorado State Health Facilities
Authority RB, Sisters Charity
Health, Series C, LOC (A) (B) (C)
3.900%, 12/02/97 3,900 3,900
Denver, Childrens Hospital
Association RB, FGIC (A) (B) (C)
4.000%, 12/03/97 15,100 15,100
-------
69,100
-------
CONNECTICUT -- 0.8%
Clipper Connecticut Tax-Exempt
Trust, Series 1995-1 (A) (B) (C)
3.890%, 12/05/97 7,341 7,341
-------
DISTRICT OF COLUMBIA -- 2.3%
District of Columbia TRAN, LOC
4.500%, 09/30/98 14,000 14,070
District of Columbia TRAN,
Series C, LOC
5.000%, 09/30/98 7,000 7,065
-------
21,135
-------
FLORIDA -- 1.5%
Dade County, Housing Finance
Authority RB, FNMA (A) (B) (C)
3.850%, 12/03/97 3,900 3,900
10
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
FLORIDA (CONTINUED)
Hillsborough County, Utility
Bond, Tampa Electric Project,
LOC (A) (B) (C)
3.800%, 12/01/97 $10,000 $10,000
-------
13,900
-------
GEORGIA -- 1.0%
Georgia State Municipal Electric
Authority RB, Series B,
LOC (A) (B) (C)
3.900%, 12/03/97 7,000 7,000
Georgia Tech Foundation
Facility RB, Wardlaw Project,
Series B, LOC (A) (B) (C)
3.900%, 12/03/97 2,600 2,600
-------
9,600
-------
HAWAII -- 0.7%
Hawaii State GO, FGIC
4.250%, 10/01/98 6,750 6,776
-------
ILLINOIS -- 8.3%
Chicago GO, LOC (A) (B) (C)
3.650%, 02/05/98 25,000 25,000
Chicago, Multi-Family Housing
RB, Waveland Associates
Project C, LOC (A) (B) (C)
3.850%, 12/03/97 10,000 10,000
Illinois State Development
Finance Authority RB, Chicago
Symphony Project, GOA (A)
3.850%, 12/03/97 26,000 26,000
Illinois State Educational Facilities
Authority RB, Shedd Aquarium
Society Project, Series B,
LOC (B)
3.850%, 05/20/98 6,000 6,000
Lombard, Multi-Family Housing RB,
Clover Creek Project, LOC (B) (C)
3.800%, 12/15/97 9,880 9,880
-------
76,880
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
INDIANA -- 1.1%
Mount Vernon, Pollution Control
RB, Southern Indiana Gas &
Electric Project, LOC (A) (B) (C)
4.050%, 05/01/98 $10,135 $10,137
-------
IOWA -- 1.4%
Iowa School Corporation BAN,
Series B, FSA
4.250%, 01/30/98 12,500 12,512
-------
KENTUCKY -- 0.8%
Ashland, Pollution Control RB,
Ashland Oil Project, LOC (A) (B) (C)
3.750%, 12/04/97 3,500 3,500
Boone County, Pollution Control
RB, Cincinnati Gas & Electric
Project, LOC (A) (B) (C)
3.750%, 12/01/97 4,100 4,100
-------
7,600
-------
LOUISIANA -- 5.8%
Ascension Parish, Pollution
Control RB, Shell Oil Project,
LOC (A) (B) (C)
3.800%, 12/03/97 9,500 9,500
De Soto Parish, Pollution Control
RB, Central Louisiana Electric
Company Project, Series A,
LOC (A) (B) (C)
3.850%, 12/03/97 5,110 5,110
De Soto Parish, Pollution Control
RB, Central Louisiana Electric
Company Project, Series B,
LOC (A)
3.850%, 12/03/97 10,000 10,000
Louisiana State BAN, Series A,
ETM, FGIC
6.000%, 12/03/97 5,520 5,565
Louisiana State Offshore Terminal
Authority RB, Deepwater Port
Project, LOC (A) (B) (C)
3.900%, 12/01/97 15,300 15,300
11
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 TAX-FREE MONEY MARKET FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
LOUISIANA (CONTINUED)
Rapides Parish, Pollution Control
RB, Central Louisiana Electric
Company Project, LOC (A) (B) (C)
3.850%, 12/03/97 $ 8,150 $ 8,150
-------
53,625
-------
MAINE -- 0.9%
Jay, Pollution Control RB, Solid
Waste Disposal Project,
AMT (A) (B) (C)
4.200%, 12/01/97 8,000 8,000
-------
MASSACHUSETTS -- 6.0%
Massachusetts State Health &
Educational Facilities
Authority RB, FSA (A)
3.650%, 12/03/97 10,000 10,000
Massachusetts State Health &
Educational Facilities Authority
RB, Harvard University Issue,
Series Q-1, LOC (A) (B) (C)
3.700%, 12/04/97 8,000 8,000
Massachusetts State Health &
Educational Facilities Authority
RB, MBIA (A)
3.650%, 12/03/97 8,000 8,000
Massachusetts State Housing
Finance Authority RB, Family
Housing Project A, FNMA (A)
3.750%, 12/03/97 3,800 3,800
Massachusetts State Industrial
Finance Agency RB
3.850%, 10/01/98 2,500 2,500
Massachusetts State Industrial
Finance Agency RB, Buckingham
Brown Issue, LOC (A) (B) (C)
3.850%, 12/04/97 6,000 6,000
Massachusetts State Industrial
Finance Agency RB, Eastern
Nazarene College (A)
3.800%, 12/03/97 1,735 1,735
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Massachusetts State Water
Resource Authority RB,
Series A, AMBAC (A)
3.700%, 12/03/97 $ 5,100 $ 5,100
Springfield, BAN
4.250%, 11/20/98 8,000 8,030
Springfield, GO, FSA
4.500%, 09/01/98 2,440 2,452
-------
55,617
-------
MICHIGAN -- 2.4%
Detroit, Downtown Development
Authority RB, Millender Center
Project, LOC (A) (B) (C)
4.400%, 12/04/97 12,000 12,000
Grand Rapids, Economic
Development RB, Amway
Hotel Project, Series A,
LOC (A) (B) (C)
3.950%, 12/03/97 9,800 9,800
-------
21,800
-------
MINNESOTA -- 0.5%
Minnesota State School District
COP, Series B
3.850%, 09/03/98 5,000 5,000
-------
MISSISSIPPI -- 1.2%
Jackson County, Pollution
Control Authority RB, Chevron
USA Project, LOC (A) (B) (C)
3.850%, 12/01/97 10,650 10,650
-------
MISSOURI -- 2.0%
Kansas City, Industrial
Development Authority RB,
MBIA (A) (B) (C)
3.900%, 12/01/97 7,200 7,200
Kansas City, Industrial
Development Authority RB,
Resh Health Services System
Project, MBIA (A) (B) (C)
3.900%, 12/01/97 4,800 4,800
12
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MISSOURI (CONTINUED)
Missouri State Health &
Educational Facilities Authority
RB, Christian Health Services,
Series B, LOC (A) (B) (C)
3.850%, 12/03/97 $ 6,150 $ 6,150
-------
18,150
-------
NEBRASKA -- 2.2%
Omaha, Public Power
Distribution RB, Series A
3.750%, 02/01/98 20,000 20,003
-------
NEW HAMPSHIRE -- 3.4%
New Hampshire State Health &
Higher Education Facilities
Authority RB, Mary Hitchcock
Project, Series 85-D, FGIC (A) (B) (C)
3.850%, 12/03/97 12,600 12,600
New Hampshire State Health &
Higher Education Facilities
Authority RB, Mary Hitchcock
Project, Series 85-H, FGIC (A) (B) (C)
3.850%, 12/03/97 9,600 9,600
New Hampshire State Health &
Higher Education Facilities
Authority RB, St. Paul's School
Project, LOC (A) (B) (C)
3.850%, 12/04/97 3,200 3,200
New Hampshire State Health &
Higher Education Facilities
Authority RB, Veterans Hospital
Administration, New England
Project, Series C, AMBAC (A) (B) (C)
3.900%, 12/03/97 4,000 4,000
New Hampshire State Health &
Higher Education Facilities
Authority RB, Veterans Hospital
Administration, New England
Project, Series F, AMBAC (A) (B) (C)
3.900%, 12/03/97 2,000 2,000
-------
31,400
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
NEW JERSEY -- 3.3%
Essex County BAN, Series A
4.250%, 08/07/98 $ 8,120 $ 8,136
Pleasantville School District GO
4.250%, 08/28/98 22,500 22,561
-------
30,697
-------
NEW YORK -- 9.2%
Erie County RAN, LOC
4.500%, 10/29/98 9,000 9,054
Nassau County GO, Series A
4.250%, 03/10/98 15,000 15,016
New York State, Local Government
Assistance Corporation RB,
LOC (A) (B) (C)
3.850%, 12/03/97 23,770 23,770
New York State, Local Government
Assistance Corporation RB,
Series B, LOC (A) (B) (C)
3.850%, 12/03/97 12,500 12,500
New York State Municipal Water
Finance Authority RB, Series G,
FGIC (A) (B) (C)
3.900%, 12/01/97 24,400 24,400
-------
84,740
-------
NORTH CAROLINA -- 2.8%
Wake County, Industrial Facilities
& Pollution Control RB, Carolina
Power & Light Project,
Series B, LOC (A) (B) (C)
4.350%, 12/03/97 16,100 16,100
Wake County, Industrial Facilities
& Pollution Control RB,
Carolina Power & Light Project,
Series C, LOC (A) (B) (C)
4.350%, 12/03/97 9,800 9,800
-------
25,900
-------
OHIO -- 2.4%
Columbus, Sewer Authority
RB (A) (B) (C)
3.800%, 12/04/97 11,600 11,600
13
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 TAX-FREE MONEY MARKET FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
OHIO (CONTINUED)
Cuyahoga County Hospital RB,
MBIA (B) (C)
6.000%, 02/15/98 $10,200 $10,447
-------
22,047
-------
OKLAHOMA -- 0.7%
Oklahoma State Water Resource
Board RB, AMBAC (B) (C)
3.750%, 03/02/98 6,600 6,600
-------
OREGON -- 0.2%
Portland, Terminal Facilities RB,
Union Pacific Railroad Company
Project, LOC (B) (C)
3.900%, 12/01/97 2,300 2,300
-------
PENNSYLVANIA -- 0.6%
Pennsylvania State TRAN,
Temple University Funding
Obligation, LOC
4.750%, 05/18/98 5,500 5,521
-------
RHODE ISLAND -- 0.5%
Rhode Island State Resource
Recovery RB, Series A
4.250%, 07/31/98 5,000 5,009
-------
SOUTH CAROLINA -- 1.1%
Piedmont, Municipal Power
Agency RB, MBIA (A)
3.850%, 12/02/97 10,100 10,100
-------
SOUTH DAKOTA -- 1.3%
South Dakota State Housing
Development Authority RB,
Series B
3.750%, 03/26/98 12,150 12,150
-------
TENNESSEE -- 0.6%
Nashville & Davidson Counties,
Health & Educational Facilities
Authority RB, Vanderbilt
University (B) (C)
3.650%, 01/15/98 5,500 5,500
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TEXAS -- 5.2%
Brazos, Industrial Development RB,
Badische Corporate Port
Authority, LOC (A) (B) (C)
3.650%, 12/01/97 $ 6,300 $ 6,300
Grand Prairie, Housing Finance
Authority RB, Lincoln Property
Project, LOC (A) (B) (C)
3.950%, 12/03/97 5,000 5,000
Grand Prairie, Housing Finance
Authority RB, Winridge Grand
Prairie Project, LOC (A) (B) (C)
3.950%, 12/03/97 7,200 7,200
Grapevine, Industrial Development
Authority RB, LOC (A) (B) (C)
3.950%, 12/04/97 2,500 2,500
Harris County, Toll Road RB,
Series F, LOC (A) (B) (C)
3.800%, 12/03/97 5,500 5,500
Northside, Independent School
District, Public Property
Financial Contract GO
4.000%, 02/15/98 1,400 1,401
Texas State TRAN, Series A
4.750%, 08/31/98 20,000 20,133
-------
48,034
-------
UTAH -- 1.2%
Utah State Board Student Loan
RB, Series B, AMBAC (A) (B) (C)
3.900%, 12/03/97 4,400 4,400
Utah State Intermountain Power
Agency RB, Series E, LOC (A) (B) (C)
3.750%, 12/04/97 7,000 7,000
-------
11,400
-------
VERMONT -- 0.6%
Vermont State Health & Educational
Facilities Authority RB, Series D,
AMBAC (A) (B) (C)
3.900%, 12/03/97 5,900 5,900
-------
14
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
VIRGINIA -- 1.2%
Fairfax, Industrial Development
Authority RB
3.850%, 12/03/97 $ 10,800 $10,800
-------
WASHINGTON -- 3.4%
Port Anacortes, Industrial
Development Authority RB,
Texaco Project
3.750%, 12/03/97 15,000 15,000
Washington State Health Care
Facilities Authority RB, Sisters
of Providence Project, Series C,
LOC (A) (B) (C)
3.900%, 12/01/97 16,700 16,700
-------
31,700
-------
WISCONSIN -- 1.8%
Germantown, School District GO
4.250%, 04/01/98 3,480 3,481
Milwaukee, Technical College
District GO, Series A
4.700%, 06/01/98 3,255 3,268
Pleasant Prairie, Industrial
Development Authority RB,
Wisconsin Electric Power Project,
LOC (A) (B) (C)
3.950%, 12/04/97 9,000 9,000
Racine GO, Series B
3.700%, 12/15/97 1,165 1,165
-------
16,914
-------
WYOMING -- 2.9%
Albany County, Pollution Control
RB, Union Pacific Railroad
Project, LOC (B) (C)
3.900%, 12/01/97 2,200 2,200
Uinta County, Pollution Control
RB, Chevron USA Project,
LOC (A) (B) (C)
3.850%, 12/01/97 25,050 25,050
-------
27,250
-------
TOTAL MUNICIPAL BONDS
(Cost $866,390) 866,390
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TAX-EXEMPT MUNICIPAL TRUST CERTIFICATES -- 2.1%
Koch Financial Corporation,
Series 1997-1, Class A-1
4.100%, 05/06/98 $ 2,008 $ 2,008
Koch Financial Corporation,
Series 1997-2, Class A-1
3.900%, 10/06/98 17,686 17,686
-------
TOTAL TAX-EXEMPT MUNICIPAL TRUST CERTIFICATES
(Cost $19,694) 19,694
-------
CASH EQUIVALENTS -- 1.2%
Clipper Blue Tax-Exempt Trust,
Series 1994-1, Class A (A) (B) (C)
4.490%, 12/05/97 2,541 2,541
Clipper Blue Tax-Exempt Trust,
Series 1995-1, Class A (A) (B) (C)
4.290%, 12/05/97 3,385 3,385
Clipper Blue Tax-Exempt Trust,
Series 1995-2 (A) (B) (C)
4.290%, 12/05/97 4,911 4,911
-------
TOTAL CASH EQUIVALENTS
(Cost $10,837) 10,837
-------
REPURCHASE AGREEMENT -- 2.7%
Paine Webber
5.690%, dated 11/28/97,
matures 12/01/97, repurchase
price $24,410,490 (collateralized
by U.S. Treasury Notes:
total market value
$24,894,284) 24,399 24,399
-------
TOTAL REPURCHASE AGREEMENT
(Cost $24,399) 24,399
-------
TOTAL INVESTMENTS -- 99.7%
(Cost $921,320) 921,320
-------
15
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 TAX-FREE MONEY MARKET FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET -- 0.3% $ 3,174
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 924,632,148
outstanding shares of beneficial interest 924,632
Distributions in excess of net
investment income (2)
Accumulated net realized loss
on investments (136)
--------
TOTAL NET ASSETS -- 100.0% $924,494
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
========
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF NOVEMBER 30, 1997. THE DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
(B) MANDATORY PUT OR PRE-REFUNDED FEATURE EXISTS REQUIRING THE ISSUER TO
REPURCHASE THE INSTRUMENT PRIOR TO MATURITY.
(C) THE DATE SHOWN ON THE STATEMENT OF NET ASSETS IS THE LESSER OF THE PUT,
PRE-REFUNDED OR NEXT SCHEDULED RESET DATE.
AMT--ALTERNATIVE MINIMUM TAX
BAN--BOND ANTICIPATION NOTE
COP--CERTIFICATES OF PARTICIPATION
ETM--ESCROWED TO MATURITY
GO--GENERAL OBLIGATION
GOA--GENERAL OBLIGATION OF AUTHORITY
LOC--SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY A MAJOR
COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
RAN--REVENUE ANTICIPATION NOTE
RB--REVENUE BOND
TRAN--TAX AND REVENUE ANTICIPATION NOTE
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR
SECURITIES LISTED ABOVE.
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INVESTORS ASSURANCE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS:]
U.S. TREASURY OBLIGATIONS 15%
U.S. GOVERNMENT AGENCY OBLIGATIONS 34%
CASH EQUIVALENTS 51%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 14.3%
U.S. Treasury Bills (A)
5.130%, 12/11/97 $ 3,000 $ 2,996
5.509%, 02/05/98 500 495
5.729%, 03/05/98 5,000 4,929
5.865%, 05/28/98 8,000 7,781
U.S. Treasury Notes
5.250%, 12/31/97 5,000 4,999
5.000%, 01/31/98 5,350 5,345
6.125%, 05/15/98 6,000 6,013
6.000%, 05/31/98 6,000 6,013
5.250%, 07/31/98 2,500 2,495
6.250%, 07/31/98 6,750 6,779
6.125%, 08/31/98 4,000 4,014
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $51,859) 51,859
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 31.8%
Federal Farm Credit Bank
Discount Note (A)
5.683%, 01/16/98 3,800 3,773
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Federal Home Loan Bank
5.725%, 02/05/98 $ 3,000 $ 3,001
6.020%, 04/15/98 1,500 1,499
6.185%, 04/21/98 2,500 2,500
5.450%, 05/28/98 6,000 5,994
6.000%, 06/23/98 2,250 2,250
Federal Home Loan Bank (B)
5.493%, 12/02/97 3,200 3,200
Federal Home Loan Mortgage
Corporation Discount Notes (A)
5.546%, 12/01/97 4,000 4,000
5.552%, 12/01/97 5,500 5,500
5.544%, 12/05/97 5,200 5,197
5.549%, 12/05/97 5,000 4,997
5.578%, 12/08/97 4,350 4,345
5.587%, 12/11/97 5,500 5,492
5.661%, 01/14/98 4,000 3,973
5.675%, 01/23/98 2,500 2,480
Federal National Mortgage
Association (B)
5.360%, 12/14/97 1,850 1,848
Federal National Mortgage
Association Discount Notes (A)
5.550%, 12/12/97 3,500 3,494
5.592%, 01/15/98 2,000 1,986
5.626%, 01/21/98 7,000 6,946
5.646%, 01/22/98 5,500 5,456
5.633%, 02/04/98 5,000 4,950
6.070%, 04/23/98 3,000 2,999
Student Loan Marketing
Association (B)
5.473%, 12/02/97 14,373 14,365
5.483%, 12/02/97 11,600 11,592
5.493%, 12/02/97 1,100 1,100
5.528%, 12/02/97 2,500 2,500
--------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $115,437) 115,437
--------
17
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 U.S. TREASURY MONEY MARKET FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 48.2%
CS First Boston
5.650%, dated 11/28/97,
matures 12/01/97,
repurchase price $10,004,708
(collateralized by
U.S. Treasury Bonds:
total market value
$10,080,103) $10,000 $10,000
Goldman Sachs
5.450%, dated 11/28/97,
matures 12/01/97,
repurchase price $38,017,258
(collateralized by
U.S. Treasury Instruments:
total market value
$38,760,042) 38,000 38,000
Greenwich Capital
5.710%, dated 11/28/97,
matures 12/01/97,
repurchase price $41,097,175
(collateralized by
U.S. Treasury Instruments:
total market value
$41,881,866) 41,078 41,078
HSBC Securities
5.680%, dated 11/28/97,
matures 12/01/97,
repurchase price
$10,004,733 (collateralized
by U.S. Treasury Bonds:
total market value
$10,205,256) 10,000 10,000
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
J.P. Morgan
5.690%, dated 11/28/97,
matures 12/01/97,
repurchase price $38,018,018
(collateralized by
U.S. Treasury Instruments:
total market value
$38,760,001) $38,000 $ 38,000
Prudential Securities
5.700%, dated 11/28/97,
matures 12/01/97,
repurchase price $38,018,050
(collateralized by
U.S. Treasury Instruments:
total market value
$38,765,143) 38,000 38,000
---------
TOTAL REPURCHASE AGREEMENTS
(Cost $175,078) 175,078
---------
TOTAL INVESTMENTS -- 94.3%
(Cost $342,374) 342,374
---------
OTHER ASSETS AND LIABILITIES,
NET -- 5.7% 20,856
---------
18
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 363,217,710
outstanding shares of beneficial interest $ 363,218
Undistributed net investment income 9
Accumulated net realized gain
on investments 3
---------
TOTAL NET ASSETS -- 100.0% $363,230
=========
- --------------------------------------------------------------------------------
DESCRIPTION VALUE
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
=========
(A) THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE EFFECTIVE YIELD AS
OF NOVEMBER 30, 1997.
(B) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF NOVEMBER 30, 1997. THE DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
19
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED -- PLOT POINTS AS FOLLOWS:]
U.S. GOVERNMENT AGENCY OBLIGATIONS 15%
CASH EQUIVALENTS 20%
COMMERCIAL PAPER 35%
CORPORATE BONDS 15%
MUNICIPAL BONDS 15%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER -- 36.3%
ASSET-BACKED -- 14.6%
Barton Capital (A)
5.795%, 01/16/98 $ 5,000 $ 4,963
Corporate Receivable (A)
5.797%, 01/08/98 5,000 4,970
Greenwich Funding (A)
5.608%, 01/06/98 5,000 4,972
Receivables Capital (A)
5.589%, 12/11/97 5,000 4,992
-------
19,897
-------
FINANCIAL SERVICES -- 16.4%
Alpine Securitization (A)
5.590%, 12/11/97 5,000 4,992
Clipper Receivable (A)
5.608%, 12/19/97 5,000 4,986
Credit Suisse First Boston (A)
5.768%, 01/23/98 5,000 4,958
General Motors Acceptance (A)
5.766%, 01/07/98 2,500 2,485
Merrill Lynch (A)
5.571%, 12/10/97 5,000 4,993
-------
22,414
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPALS -- 5.3%
Dekalb County, Georgia,
Emory University (A)
5.700%, 01/06/98 $ 4,200 $ 4,200
New York City, New York (A)
5.870%, 02/03/98 1,500 1,500
New York City, New York,
FGIC (A)
5.700%, 01/06/98 1,600 1,600
-------
7,300
-------
TOTAL COMMERCIAL PAPER
(Cost $49,611) 49,611
-------
CORPORATE BONDS -- 15.5%
Chrysler Financial MTN
5.720%, 03/11/98 2,500 2,498
7.320%, 03/30/98 1,900 1,907
Community Health System,
LOC (B)
5.850%, 12/03/97 1,050 1,050
First Fidelity Bancorp
8.500%, 04/01/98 5,000 5,038
Ford Capital
9.375%, 01/01/98 2,000 2,005
Ford Motor Credit MTN
9.300%, 02/10/98 1,000 1,006
General Electric Capital MTN
6.430%, 08/24/98 650 652
General Motors Acceptance MTN
7.625%, 02/27/98 2,425 2,435
International Business
Machines MTN
5.650%, 01/22/98 500 500
Mellon Financial
6.500%, 12/01/97 2,875 2,875
Norwest Financial
5.500%, 04/15/98 500 499
PepsiCo
6.125%, 01/15/98 750 750
-------
TOTAL CORPORATE BONDS
(Cost $21,215) 21,215
-------
20
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 15.8%
Federal Home Loan Bank
5.670%, 03/05/98 $ 4,000 $ 4,000
6.000%, 06/23/98 5,000 5,002
5.825%, 11/12/98 5,000 5,001
Federal National Mortgage
Association
8.550%, 12/10/97 3,000 3,002
9.550%, 12/10/97 525 526
Student Loan Marketing
Association
5.710%, 02/19/98 4,000 4,000
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $21,531) 21,531
--------
MUNICIPAL BONDS -- 15.6%
Barton Healthcare (B)
5.700%, 12/03/97 1,000 1,000
Catholic Health Initiatives (B)
5.750%, 12/02/97 5,000 5,000
Illinois State Student Assistance
RB, LOC (B)
5.710%, 12/03/97 5,000 5,000
Kit Carson County, Colorado,
Agricultural Development
RB, LOC (B)
5.850%, 12/03/97 2,000 2,000
Maryland State Health & Higher
Education RB, LOC (B)
5.830%, 12/04/97 4,300 4,300
Olathe, Kansas, Industrial RB,
LOC (B)
5.700%, 12/04/97 4,000 4,000
--------
TOTAL MUNICIPAL BONDS
(Cost $21,300) 21,300
--------
REPURCHASE AGREEMENTS -- 20.0%
Greenwich Capital
5.710%, dated 11/28/97, matures
12/01/97, repurchase price
$9,421,086 (collateralized by
U.S. Treasury Instruments:
total market value
$9,634,327) 9,417 9,417
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
J.P. Morgan
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$9,004,268 (collateralized by
U.S. Treasury Instruments:
total market value
$9,180,000) $9,000 $ 9,000
Prudential Securities
5.700%, dated 11/28/97, matures
12/01/97, repurchase price
$9,004,275 (collateralized by
U.S. Treasury Instruments:
total market value
$9,200,410) 9,000 9,000
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $27,417) 27,417
--------
TOTAL INVESTMENTS -- 103.2%
(Cost $141,074) 141,074
--------
OTHER ASSETS AND LIABILITIES, NET -- (3.2%) (4,352)
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 136,726,805
outstanding shares of beneficial interest 136,727
Accumulated net realized loss
on investments (5)
--------
TOTAL NET ASSETS -- 100.0% $136,722
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
========
(A) THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE EFFECTIVE YIELD AS
OF NOVEMBER 30, 1997.
(B) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF NOVEMBER 30, 1997. THE DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
LOC -- SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY A
MAJOR COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
MTN -- MEDIUM TERM NOTE
RB -- REVENUE BOND
THE FOLLOWING ORGANIZATION HAS PROVIDED UNDERLYING CREDIT SUPPORT FOR SECURITIES
LISTED ABOVE.
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
21
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 SHORT-TERM INCOME FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS:]
CASH EQUIVALENTS 6%
TAXABLE MUNICIPAL BONDS 7%
ASSET-BACKED SECURITIES 22%
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS 6%
U.S. GOVERNMENT AGENCY OBLIGATIONS 2%
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS 9%
CORPORATE OBLIGATIONS 34%
U.S. TREASURY OBLIGATIONS 14%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 13.4%
U.S. Treasury Notes
7.125%, 10/15/98 $ 1,000 $ 1,012
5.875%, 01/31/99 1,000 1,001
7.750%, 11/30/99 4,000 4,146
7.125%, 02/29/00 1,200 1,233
6.750%, 04/30/00 3,000 3,063
6.375%, 05/15/00 3,000 3,038
6.625%, 06/30/01 2,500 2,561
6.375%, 09/30/01 3,000 3,051
6.625%, 03/31/02 6,000 6,169
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $25,169) 25,274
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 1.6%
Federal Home Loan Mortgage
Corporation
6.375%, 12/23/03 1,100 1,093
Federal National Mortgage
Association
9.550%, 12/10/97 1,000 1,001
6.850%, 05/26/00 1,000 1,005
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $3,048) 3,099
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 5.8%
Federal Deposit Insurance
Corporation REMIC
6.750%, 07/25/26 $ 1,635 $ 1,634
Federal Home Loan Mortgage
Corporation
8.000%, 01/01/02 335 344
Federal Home Loan Mortgage
Corporation REMIC
6.500%, 09/15/07 2,747 2,757
7.250%, 04/25/24 565 570
Federal National Mortgage
Association
8.500%, 07/01/98 526 543
Federal National Mortgage
Association REMIC
8.950%, 05/25/03 989 1,022
5.500%, 04/25/04 4,114 4,096
-------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $10,926) 10,966
-------
TAXABLE MUNICIPAL BONDS -- 7.2%
Jacksonville, Florida, Health
Facilities Authority RB, National
Benevolent Project, Series B (A)
6.510%, 10/01/98 1,565 1,565
New York State Dormitory
Authority RB
6.550%, 04/01/00 2,500 2,519
New York State Mortgage
Agency RB
5.930%, 10/01/98 2,000 2,034
Pennsylvania State Housing
Finance Agency RB
7.000%, 10/01/06 2,455 2,575
San Bernardino, California, Public
Safety Authority RB, Series B
7.800%, 07/01/00 4,690 4,889
-------
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $13,330) 13,582
-------
22
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 8.8%
Advanta Home Equity Loan Trust,
Series 1993-2, Class A-1
6.150%, 10/25/09 $ 171 $ 170
Associates Manufactured Housing,
Series 1997-1, Class A-3
6.600%, 06/15/28 5,000 5,042
BankAmerica Manufactured
Contrast Trust III, Series
1997-2, Class A-5
6.390%, 12/10/12 5,500 5,514
CIT RV Owners Trust,
Series 1995-A, Class A
6.250%, 01/15/11 411 413
CoreStates Home Equity Loan Trust,
Series 1996-1, Class A-1
6.200%, 04/15/04 648 656
Crown Home Equity Loan Trust,
Series 1996-1, Class A-3
6.810%, 06/25/11 2,000 2,019
IMC Home Equity Loan Trust,
Series 1996-1, Class A-3
6.030%, 09/25/10 1,500 1,508
Prudential Home Mortgage
Securities, Series 1993-31,
Class A-7
6.000%, 08/25/00 1,350 1,336
-------
TOTAL NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $16,552) 16,658
-------
ASSET-BACKED SECURITIES -- 22.1%
Asset-Backed Securities Investment
Trust, Series 1997-D, Class A
6.790%, 08/17/03 5,000 5,011
Centrex Auto Trust,
Series 1996-A, Class A
6.750%, 10/15/04 1,432 1,455
Chase Manhattan Auto Owners
Trust, Series 1997-B, Class A-3
6.350%, 02/15/01 5,000 5,024
Discover Card Master Trust,
Series 1993-2, Class B
5.750%, 11/16/01 5,000 4,962
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Firstplus Home Improvement
Loan Trust, Series 1996-3,
Class A-2
6.850%, 06/20/07 $ 1,500 $ 1,506
Fleetwood Credit Grantor Trust,
Series 1995-B, Class A
6.550%, 05/16/11 1,030 1,037
General Motors Acceptance
Corporation Grantor Trust,
Series 1995-A, Class A
7.150%, 03/15/00 168 170
Green Tree Recreational,
Equipment & Consumer Trust,
Series 1996-A, Class A-1
5.550%, 02/15/18 629 626
MS Auto Grantor Trust,
Series 1995-1, Class A
6.200%, 07/01/01 317 320
PNC Student Loan Trust I,
Series 1997-2, Class A-5
6.530%, 01/25/03 5,000 5,060
Reliance Auto Receivables,
Series 1996-A, Class A
6.100%, 07/15/02 1,348 1,351
Sears Credit Account Master Trust,
Series 1996-4, Class A
6.450%, 10/15/06 1,000 1,013
Security Pacific Acceptance
Corporation, Series 1991-3,
Class A-1
7.250%, 12/15/11 20 21
Standard Credit Card Master Trust,
Series 1995-B
6.900%, 06/07/98 4,000 4,020
University Support Services,
Series 1993-A, Class B (A)
8.060%, 08/20/08 81 82
WFS Financial Owner Trust,
Series 1997-C, Class A-4
6.150%, 09/20/02 5,000 4,995
World Omni Automobile Lease
Securitization Trust III,
Series 1997-B, Class A-4
6.200%, 11/25/03 5,000 4,987
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $41,493) 41,640
-------
23
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 SHORT-TERM INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS -- 34.5%
FINANCE -- 25.0%
BankAmerica Capital III (A)
6.328%, 01/15/27 $ 5,000 $ 4,923
Cigna
7.900%, 12/14/98 1,000 1,020
Equitable Companies
6.750%, 12/01/00 1,320 1,332
Finova Capital
6.500%, 07/28/02 5,000 5,012
First National Bank of Commerce
6.500%, 01/14/00 5,000 5,025
General Motors Acceptance
7.875%, 03/07/01 2,000 2,090
General Motors Acceptance, MTN
6.040%, 03/19/99 5,000 4,994
Heller Financial
6.460%, 10/27/00 5,000 5,012
MBNA America Bank NA (A)
5.898%, 09/09/99 5,000 5,004
Morgan Stanley, Dean Witter,
Discover & Company
6.375%, 08/01/02 5,000 5,000
Nationsbank Capital Trust III (A)
6.308%, 01/15/27 2,500 2,444
Smith Barney Holdings
7.500%, 05/01/02 5,000 5,212
--------
47,068
--------
INDUSTRIAL -- 9.0%
American General
7.700%, 10/15/99 5,000 5,138
Celulosa Arauco y
Constitucion
7.250%, 06/11/98 5,000 5,019
McKesson
6.600%, 03/01/00 5,000 5,038
Middletown Trust
10.875%, 07/15/98 720 737
Sears Roebuck
9.500%, 06/01/99 1,000 1,048
--------
16,980
--------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
UTILITY -- 0.5%
Narragansett Electric
6.630%, 08/12/99 $ 1,000 $ 1,005
--------
TOTAL CORPORATE OBLIGATIONS
(Cost $64,661) 65,053
--------
REPURCHASE AGREEMENT -- 5.7%
Paine Webber
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$10,820,118 (collateralized by
U.S. Treasury Notes:
total market value
$11,033,789) 10,815 10,815
--------
TOTAL REPURCHASE AGREEMENT
(Cost $10,815) 10,815
--------
TOTAL INVESTMENTS -- 99.1%
(Cost $185,994) 187,087
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.9% 1,752
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 18,758,925
outstanding shares of beneficial interest 200,503
Undistributed net investment income 2
Accumulated net realized loss
on investments (12,759)
Net unrealized appreciation
on investments 1,093
--------
TOTAL NET ASSETS -- 100.0% $188,839
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.07
========
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF NOVEMBER 30, 1997.
MTN -- MEDIUM TERM NOTE
RB -- REVENUE BOND
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 INCOME FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED -- PLOT POINTS AS FOLLOWS:]
PREFERRED STOCKS 4%
ASSET-BACKED SECURITIES 7%
U.S. GOVERNMENT AGENCY OBLIGATIONS 2%
CORPORATE OBLIGATIONS 17%
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS 9%
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS 11%
U.S. TREASURY OBLIGATIONS 23%
FOREIGN BONDS 2%
YANKEE BONDS 21%
CASH EQUIVALENTS 4%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 22.1%
U.S. Treasury Bonds
6.000%, 08/15/99 $ 5,990 $ 6,009
6.000%, 02/15/26 1,700 1,674
6.750%, 08/15/26 2,000 2,174
6.500%, 11/15/26 9,200 9,691
6.125%, 11/15/27 1,000 1,011
U.S. Treasury Notes
7.875%, 01/15/98 4,020 4,032
9.250%, 08/15/98 1,000 1,024
5.875%, 10/31/98 3,500 3,505
5.875%, 01/31/99 12,550 12,568
6.375%, 04/30/99 1,300 1,311
5.500%, 12/31/00 13,175 13,049
5.625%, 02/28/01 2,000 1,988
6.250%, 10/31/01 12,205 12,364
5.875%, 09/30/02 8,000 8,006
6.500%, 10/15/06 2,000 2,079
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $79,473) 80,485
-------
U.S. GOVERNMENT AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 11.3%
Federal Home Loan Mortgage
Corporation
7.750%, 09/01/05 883 907
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Federal Home Loan Mortgage
Corporation REMIC
6.500%, 07/15/20 $ 1,510 $ 1,480
Federal National Mortgage
Association
6.500%, 05/01/11 4,338 4,323
Federal National Mortgage
Association REMIC
7.000%, 09/18/14 5,000 5,056
6.000%, 12/25/16 2,943 2,747
7.000%, 03/25/19 92 92
Government National Mortgage
Association
7.000%, 10/15/23 1,576 1,581
8.000%, 06/15/25 289 299
8.000%, 10/15/25 331 342
8.000%, 01/15/26 160 166
8.000%, 02/15/26 189 196
7.500%, 04/15/26 4,497 4,588
8.000%, 05/15/26 295 306
7.000%, 06/15/26 6,248 6,291
8.000%, 06/15/26 709 734
7.500%, 12/15/26 2,903 2,962
7.500%, 02/15/27 1,963 2,003
8.000%, 03/15/27 1,799 1,861
7.125%, 01/15/29 5,147 5,159
-------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS
(Cost $39,548) 41,093
-------
ASSET-BACKED SECURITIES -- 6.6%
Asset Securitization,
Series 1997-D4, Class A-1D
7.490%, 04/14/27 10,000 10,581
Fingerhut Master Trust,
Series 1996-1, Class A
6.450%, 02/20/02 1,720 1,738
First Deposit Master Trust,
Series 1993-2, Class A
5.750%, 06/15/01 1,000 999
Fleetwood Credit Grantor Trust,
Series 1995-B, Class A
6.550%, 05/16/11 1,545 1,556
Nomura Asset Securities,
Series 1996-MD5, Class A-1B
7.120%, 04/13/36 5,000 5,178
25
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES (CONTINUED)
Premier Auto Trust, Series 1996-4,
Class A-3
6.200%, 11/06/00 $ 2,020 $ 2,026
Prime Credit Card Master Trust,
Series 1992-2, Class A-2
7.450%, 11/15/02 1,430 1,468
Standard Credit Card Master Trust,
Series 1993-3
5.500%, 02/07/00 500 497
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $23,337) 24,043
-------
NON-AGENCY MORTGAGE-BACKED
OBLIGATIONS -- 9.0%
AFC Home Equity Loan Trust,
Series 1996-3, Class 1A-4
7.540%, 12/25/27 4,999 5,231
BankAmerica Mortgage,
Series 1997-2, Class A-8
6.790%, 12/10/22 3,750 3,746
Equitable Life Assurance Society
of the U.S., Series 174, Class A-1
7.240%, 05/15/06 5,000 5,252
Green Tree Financial,
Series 1995-5, Class M-1
7.650%, 09/15/26 5,000 5,278
Merrill Lynch Mortgage Investors,
Series 1989-H, Class B
10.000%, 01/15/10 3,759 3,942
Merrill Lynch Mortgage Investors,
Series 1994-G, Class A-3
8.350%, 05/15/14 5,000 5,488
Oakwood Mortgage Investors,
Series 1995-B, Class A-3
6.900%, 01/15/21 4,040 4,122
-------
TOTAL NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $31,569) 33,059
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS -- 17.1%
FINANCE -- 6.7%
BankAmerica Capital III
6.328%, 01/15/27 $ 5,090 $ 5,012
Chase Capital I
7.670%, 12/01/26 5,000 5,112
First Union (A)
6.550%, 10/15/35 9,000 9,045
Merrill Lynch & Company
7.000%, 01/15/07 5,000 5,181
-------
24,350
-------
INDUSTRIAL -- 6.7%
Diamond Shamrock (A)
7.650%, 07/01/26 8,000 8,600
General Motors
9.125%, 07/15/01 5,000 5,444
J.C. Penney
7.400%, 04/01/37 10,000 10,562
-------
24,606
-------
INSURANCE -- 3.7%
Aon Capital Trust
8.205%, 01/01/27 1,000 1,095
Safeco
6.875%, 07/15/07 5,000 5,081
Travelers Capital II
7.750%, 12/01/36 5,000 5,125
Vesta Insurance Group
8.750%, 07/15/25 1,855 2,133
-------
13,434
-------
TOTAL CORPORATE OBLIGATIONS
(Cost $60,190) 62,390
-------
YANKEE BONDS -- 21.0%
Alcoa Aluminio S.A
7.500%, 12/16/08 4,985 5,026
Bell Cablemedia PLC
6.856%, 07/15/04 5,000 4,637
Celulosa Arauco
6.950%, 09/15/05 5,000 4,919
Danske Bank
7.400%, 06/15/10 5,000 5,204
26
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
YANKEE BONDS (CONTINUED)
Endesa-Chile Empresa
Nacional Electric
7.325%, 02/01/37 $ 5,000 $ 4,975
Guangdong International Trust
8.750%, 10/24/16 5,000 5,212
Hydro-Quebec
7.375%, 02/01/03 1,000 1,039
Hyundai Semiconductor,
Tranche B
8.250%, 05/15/04 7,650 7,229
Mayne Nickless Limited
6.250%, 02/01/06 4,905 4,782
Midland Bank
7.650%, 05/01/25 5,000 5,475
Petrozuata Finance
7.630%, 04/01/09 6,000 6,128
Sociedad Quimica y Minera
7.700%, 09/15/06 5,000 5,142
Southern Peru Limited
7.900%, 05/30/07 3,300 3,304
Trans-Canada Pipelines
9.125%, 04/20/06 3,340 3,849
Wharf International
Finance Limited
7.625%, 03/13/07 10,000 9,900
--------
TOTAL YANKEE BONDS
(Cost $77,301) 76,821
--------
FOREIGN BOND -- 1.7%
Nykredit Mortgage (Denmark)
7.000%, 10/01/26 5,945 6,250
--------
TOTAL FOREIGN BOND
(Cost $5,896) 6,250
--------
U.S. GOVERNMENT AGENCY
OBLIGATION -- 2.0%
Federal Home Loan Mortgage
Corporation
7.740%, 06/01/04 2,000 2,056
8.530%, 02/02/05 5,000 5,239
--------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATION
(Cost $7,003) 7,295
--------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
PREFERRED STOCKS -- 4.1%
American Re Capital 368,343 $ 9,623
Hartford Capital II 200,000 5,275
--------
TOTAL PREFERRED STOCKS
(Cost $14,660) 14,898
--------
REPURCHASE AGREEMENT -- 4.3%
Paine Webber
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$15,571,029 (collateralized by
U.S. Treasury Notes:
total market value
$15,868,098) $15,564 15,564
--------
TOTAL REPURCHASE AGREEMENT
(Cost $15,564) 15,564
--------
TOTAL INVESTMENTS -- 99.2%
(Cost $354,541) 361,898
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.8% 2,886
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 35,512,797
outstanding shares of beneficial interest 358,317
Distributions in excess of
net investment income (225)
Accumulated net realized loss
on investments (680)
Net unrealized appreciation on forward
foreign currency contracts, foreign
currency and translation of other
assets and liabilities in foreign currency 15
Net unrealized appreciation
on investments 7,357
--------
TOTAL NET ASSETS -- 100.0% $364,784
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.27
========
(A) PUT OR DEMAND FEATURE EXISTS REQUIRING THE ISSUER TO REPURCHASE THE
INSTRUMENT PRIOR TO MATURITY.
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
27
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS:]
CASH EQUIVALENTS 7%
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS 26%
U.S. GOVERNMENT AGENCY OBLIGATIONS 29%
ASSET-BACKED SECURITIES 2%
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS 9%
U.S. GOVERNMENT GUARANTEED BONDS 6%
U.S. TREASURY OBLIGATIONS 21%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 21.1%
U.S. Treasury Bonds
11.250%, 02/15/15 $ 700 $ 1,085
6.125%, 11/15/27 1,000 1,011
U.S. Treasury Notes
8.000%, 08/15/99 2,000 2,070
5.625%, 10/31/99 2,000 1,994
8.000%, 05/15/01 2,000 2,133
6.625%, 07/31/01 4,463 4,574
6.250%, 10/31/01 2,000 2,026
7.500%, 11/15/01 1,600 1,691
6.250%, 01/31/02 2,000 2,028
6.250%, 06/30/02 8,570 8,700
6.000%, 07/31/02 1,000 1,006
6.500%, 10/15/06 5,000 5,198
3.375%, 01/15/07 10,173 10,034
6.250%, 02/15/07 770 788
6.625%, 05/15/07 500 526
6.125%, 08/15/07 4,000 4,078
U.S. Treasury STRIPS (A)
10.554%, 08/15/10 1,000 465
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $49,080) 49,407
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 28.0%
Central American Bank of
Economic Integration AID
6.620%, 10/29/12 $10,000 $10,195
Costa Rica AID
7.360%, 08/01/01 1,760 1,799
Federal Farm Credit Bank
5.420%, 08/04/98 3,000 2,990
8.650%, 10/01/99 1,900 1,988
7.350%, 03/24/05 350 375
Federal Home Loan Bank
6.580%, 01/07/03 3,000 3,024
7.660%, 07/20/04 350 379
Federal Home Loan Mortgage
Corporation
8.530%, 02/02/05 1,000 1,048
7.340%, 11/03/06 1,000 1,012
Federal National Mortgage
Association
7.550%, 06/10/04 1,500 1,535
7.400%, 07/01/04 725 774
6.580%, 03/01/06 1,000 995
8.000%, 02/06/12 2,500 2,505
Agency of Housing and Urban
Development, Series 1995-A
6.210%, 08/01/01 4,000 4,022
8.240%, 08/01/02 2,000 2,174
6.360%, 08/01/04 4,000 4,036
Private Export Funding
Corporation
5.500%, 03/15/01 2,500 2,456
6.310%, 09/30/04 7,000 7,052
6.620%, 10/01/05 1,740 1,775
Student Loan Marketing
Association
6.277%, 02/25/00 2,500 2,497
Student Loan Marketing
Association (B)
5.528%, 04/21/98 5,000 5,001
5.473%, 08/20/98 2,500 2,496
5.473%, 11/10/98 2,000 1,996
28
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
Tennessee Valley Authority
Principal STRIPS (A)
7.750%, 12/15/22 $1,891 $ 1,961
7.813%, 04/15/42 4,000 1,640
-------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $65,182) 65,725
-------
U.S. GOVERNMENT AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 25.3%
Federal Deposit Insurance
Corporation REMIC
6.750%, 07/25/26 4,012 4,010
Federal Home Loan Mortgage
Corporation
7.000%, 07/15/03 1,400 1,423
7.000%, 10/01/03 197 200
Federal Home Loan Mortgage
Corporation Gold
7.000%, 12/01/10 2,073 2,098
Federal Home Loan Mortgage
Corporation REMIC
6.500%, 09/15/07 2,514 2,523
6.750%, 02/15/20 1,080 1,071
Federal National Mortgage
Association
8.000%, 07/01/07 353 365
6.500%, 05/01/11 2,169 2,161
7.785%, 02/01/19 4,953 5,435
10.000%, 10/01/20 2,861 3,107
10.000%, 12/01/20 4,767 5,177
Federal National Mortgage
Association REMIC
5.500%, 04/25/04 4,114 4,096
Government National
Mortgage Association
8.500%, 10/15/04 115 121
8.500%, 01/15/06 90 94
9.000%, 11/15/17 1,427 1,544
7.000%, 10/15/23 823 826
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
7.500%, 04/15/26 $ 6,947 $ 7,087
7.500%, 02/15/27 6,786 6,924
7.125%, 01/15/29 6,320 6,334
Student Loan Marketing
Association
5.823%, 10/25/05 4,684 4,685
-------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $58,463) 59,281
-------
NON-AGENCY MORTGAGE-BACKED
OBLIGATIONS -- 9.4%
Goldman Sachs Trust 8,
Series C, Class 6
8.500%, 02/20/21 10,000 10,733
Merrill Lynch Trust, Series 31,
Class G
9.450%, 06/01/18 10,000 10,617
Ryland Acceptance Four,
Series 32, Class B
8.600%, 05/01/16 676 690
-------
TOTAL NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $21,686) 22,040
-------
U.S. GOVERNMENT GUARANTEED BONDS -- 6.4%
Global Industries
7.250%, 07/15/22 12,328 13,006
Rochester, New York, U.S.
Government Note,
Series 1991-A
5.930%, 08/01/99 100 100
Sulphur Carriers
8.300%, 10/15/09 1,790 1,943
-------
TOTAL U.S. GOVERNMENT GUARANTEED BONDS
(Cost $13,922) 15,049
-------
ASSET-BACKED SECURITY -- 2.1%
PNC Student Loan Trust I,
Series 1997-2, Class A-2
6.138%, 01/25/00 5,000 5,009
-------
TOTAL ASSET-BACKED SECURITY
(Cost $5,000) 5,009
-------
29
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 7.1%
Paine Webber
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$16,754,921 (collateralized by
U.S. Treasury Notes:
total market value
$17,072,661) $16,747 $ 16,747
--------
TOTAL REPURCHASE AGREEMENT
(Cost $16,747) 16,747
--------
TOTAL INVESTMENTS -- 99.4%
(Cost $230,080) 233,258
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.6% 1,313
--------
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 24,503,785
outstanding shares of beneficial interest $237,236
Distributions in excess of net
investment income (548)
Accumulated net realized loss
on investments (5,295)
Net unrealized appreciation
on investments 3,178
--------
TOTAL NET ASSETS -- 100.0% $234,571
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.57
========
(A) ZERO COUPON SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE EFFECTIVE YIELD AS OF NOVEMBER 30, 1997.
(B) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF NOVEMBER 30, 1997. THE DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
AID -- AGENCY FOR INTERNATIONAL DEVELOPMENT
PLC -- PUBLIC LIABILITY COMPANY
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
STRIPS -- SEPARATELY TRADED REGISTERED INTEREST AND PRINCIPAL SECURITIES
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
30
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS:]
GENERAL OBLIGATION BONDS 24%
ALTERNATIVE MINIMUM TAX BONDS 4%
INDUSTRIAL DEVELOPMENT & POLLUTION CONTROL BONDS 2%
OTHER REVENUE BONDS 8%
RESOURCE RECOVERY BONDS 2%
EDUCATION BONDS 5%
HOUSING BONDS 13%
UTILITY BONDS 20%
HEALTH CARE BONDS 11%
CASH EQUIVALENTS 4%
TRANSPORTATION BONDS 6%
WATER AND SEWER BONDS 1%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.5%
ALABAMA -- 0.4%
Alabama State Housing Finance
Authority RB, Series D-1, GNMA
6.000%, 10/01/16 $1,000 $ 1,054
-------
ALASKA -- 0.4%
Alaska State Industrial Development
& Export Authority RB,
Series B, GOA
5.850%, 04/01/05 1,000 1,059
-------
CALIFORNIA -- 7.5%
Burbank, Wastewater Treatment
RB, Series A, FGIC
5.500%, 06/01/15 1,500 1,534
California State GO
5.750%, 03/01/08 3,000 3,199
5.250%, 06/01/11 1,000 1,019
California State GO, FGIC
5.250%, 10/01/10 3,000 3,094
California State Health
Facilities RB, Downey
Community Hospital
5.750%, 05/15/15 4,150 4,223
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
California State Home Mortgage
RB, Series A, MBIA
5.850%, 08/01/16 $2,000 $ 2,095
California State Housing Finance
Agency RB, Home Mortgage,
MBIA
5.950%, 08/01/10 1,830 1,940
Los Angeles County, Metropolitan
Transportation Authority RB,
AMBAC
5.700%, 07/01/12 1,135 1,190
Los Angeles GO, Series A, FGIC
5.800%, 09/01/09 1,250 1,333
San Francisco, City & County
Sewer RB, Series A, FGIC
5.700%, 10/01/11 1,000 1,046
-------
20,673
-------
COLORADO -- 1.1%
Denver, Multi-Family Housing RB,
Section 8, Series A
5.350%, 10/01/12 2,000 2,007
Goldsmith, Metropolitan District
GO, MBIA
6.125%, 12/01/12 1,000 1,056
-------
3,063
-------
CONNECTICUT -- 5.9%
Connecticut State GO, Series A
5.250%, 03/01/14 2,445 2,469
Connecticut State Health &
Educational Facilities RB,
University of Hartford,
Series D, GOA
6.750%, 07/01/12 1,250 1,305
Connecticut State Housing
Finance Authority RB, Mortgage
Finance Program,
Subseries B-4, GOA
7.300%, 11/15/03 3,410 3,580
Connecticut State Housing
Finance Authority RB, Mortgage
Finance Program,
Subseries E-1, GOA
5.900%, 05/15/15 1,000 1,049
31
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
CONNECTICUT (CONTINUED)
Connecticut State Resource
Recovery Authority RB,
Mid-Connecticut System Project,
Series A, AMT, MBIA
5.500%, 11/15/11 $4,500 $ 4,691
Connecticut State Resource
Recovery Authority RB,
Wallingford Resources Project,
Series 1, AMT
6.625%, 11/15/01 1,990 2,132
South Central Connecticut
Regional Water Authority RB,
11th Series, FGIC
5.750%, 08/01/12 1,000 1,052
-------
16,278
-------
DISTRICT OF COLUMBIA -- 1.3%
District of Columbia GO,
Series B, MBIA
6.000%, 06/01/08 2,305 2,472
Georgetown University RB,
Series A, MBIA (A)
5.950%, 04/01/14 1,000 1,045
-------
3,517
-------
FLORIDA -- 3.0%
Dade County GO, Series EE, FGIC
5.625%, 10/01/14 2,560 2,669
Dade County, Special Obligation
RB, Courthouse Center Project
5.900%, 04/01/10 1,500 1,581
Florida State Board of Education
GO, Series E
5.700%, 06/01/14 2,000 2,075
Jacksonville, Electric Authority RB
5.500%, 10/01/13 2,000 2,050
-------
8,375
-------
GEORGIA -- 1.5%
Georgia State Municipal Electric
Authority RB, 6th Crossover
Project, Series 1, AMBAC
7.000%, 01/01/08 1,000 1,190
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Georgia State Municipal Electric
Authority RB, MBIA
5.125%, 01/01/12 $3,000 $ 3,004
-------
4,194
-------
ILLINOIS -- 3.5%
Chicago, O'Hare International
Airport RB, AMBAC
5.625%, 01/01/12 2,000 2,075
Illinois State Civic Center RB,
Series A, AMBAC
6.000%, 12/15/15 1,000 1,019
Illinois State GO
5.700%, 04/01/11 2,000 2,077
Illinois State GO, AMBAC
5.700%, 04/01/11 2,000 2,097
Illinois State Health Facilities
Authority RB, OSF Healthcare
System Project
6.000%, 11/15/13 2,250 2,354
-------
9,622
-------
INDIANA -- 1.0%
Marion County, Hospital
Authority RB, Methodist
Hospital of Indiana
6.500%, 09/01/13 2,450 2,790
-------
LOUISIANA -- 1.6%
Orleans, Levee District RB,
Series A, FSA
5.950%, 11/01/14 4,080 4,371
-------
MAINE -- 1.2%
Maine State Housing Authority
RB, Series C-1
5.700%, 11/15/15 2,000 2,055
Maine State Municipal Bond
Bank RB, Series A, LOC
5.700%, 11/01/13 1,090 1,128
-------
3,183
-------
32
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MARYLAND -- 2.2%
Maryland State & Local Facilities
GO, 1st Series
5.000%, 03/01/10 $1,500 $1,524
Maryland State GO
5.600%, 03/15/08 4,275 4,564
------
6,088
------
MASSACHUSETTS -- 13.7%
Boston, City Hospital Project RB,
Series B, FHA
5.750%, 02/15/13 1,300 1,328
Boston, City Hospital Project RB,
Series B, MBIA
5.750%, 02/15/13 1,500 1,541
Holyoke GO, Series A, FSA
5.600%, 06/15/10 1,365 1,433
Massachusetts Bay Transportation
Authority RB, Series B, GOA
5.800%, 03/01/11 1,800 1,890
Massachusetts State GO,
Series B, FGIC
5.500%, 06/01/11 2,000 2,082
Massachusetts State GO, Series D,
Pre-refunded @ 102 (B)
5.750%, 05/01/02 3,320 3,561
Massachusetts State Health &
Educational Facilities Authority
RB, Dana Farber Cancer Project,
Series G-1
6.250%, 12/01/08 1,000 1,096
Massachusetts State Health &
Educational Facilities Authority
RB, Medical, Academic &
Scientific Project, Series A
6.200%, 01/01/03 1,140 1,221
6.250%, 01/01/05 1,060 1,162
Massachusetts State Health &
Educational Facilities Authority
RB, New England Deaconess
Hospital Project, Series D, GOI
6.625%, 04/01/12 1,000 1,079
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Massachusetts State Health &
Educational Facilities Authority
RB, New England Medical
Center Project, Series F, FGIC
6.500%, 07/01/12 $1,000 $1,091
Massachusetts State Health &
Educational Facilities Authority
RB, Suffolk University Project,
Series C, CONLEE
5.850%, 07/01/16 1,000 1,041
Massachusetts State Housing
Finance Agency RB, Series 44
5.900%, 12/01/13 1,000 1,044
Massachusetts State Housing
Finance Agency RB, Series A, MBIA
5.600%, 07/01/07 600 641
5.700%, 07/01/08 600 641
Massachusetts State Housing
Finance Agency RB, Series E,
FNMA
6.250%, 11/15/12 2,600 2,759
Massachusetts State Industrial
Finance Agency RB, College
Issue, CONLEE
5.875%, 07/01/11 1,090 1,159
Massachusetts State Resource
Recovery Authority RB,
Refusetech Project, Series A
6.150%, 07/01/02 1,595 1,685
6.300%, 07/01/05 3,220 3,437
Massachusetts State Municipal
Wholesale Electric Company
RB, AMBAC
5.150%, 07/01/16 2,000 1,927
Massachusetts State Municipal
Wholesale Electric Company
RB, Series D, MBIA
6.000%, 07/01/05 1,625 1,753
6.000%, 07/01/11 2,650 2,832
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System, Series C,
MBIA (B)
5.400%, 01/01/16 1,000 396
33
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Massachusetts State Turnpike
Authority RB, Western Turnpike,
Series A, MBIA
5.550%, 01/01/17 $1,000 $ 1,018
-------
37,817
-------
MICHIGAN -- 0.6%
Michigan State Hospital Finance
Authority RB, Oakwood Hospital
Group Project, Series A, FGIC
5.400%, 11/01/07 1,500 1,569
-------
MINNESOTA -- 0.9%
Northern Minnesota State
Municipal Power Agency RB,
Electric System, FSA
5.250%, 01/01/12 2,490 2,474
-------
MISSISSIPPI -- 0.4%
Mississippi State Capital Imports
GO, Series A
5.000%, 07/01/09 1,000 1,016
-------
MISSOURI -- 1.1%
St. Charles County, Public Water
Supply District # 2 COP,
Series A, MBIA
5.500%, 12/01/14 3,000 3,082
-------
NEBRASKA -- 1.0%
Nebraska State Investment
Finance Authority RB, Childrens
Healthcare Services, AMBAC
5.500%, 08/15/17 1,435 1,448
Nebraska State Public Power
Supply System RB,
Series B, MBIA
5.250%, 01/01/13 1,190 1,194
-------
2,642
-------
NEW HAMPSHIRE -- 0.7%
New Hampshire State Higher
Education & Health Facilities
Authority RB, LOC
5.800%, 10/01/12 1,000 1,007
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
New Hampshire State Housing
Finance Authority RB,
Series B, FHA
5.850%, 07/01/10 $1,000 $ 1,045
-------
2,052
-------
NEW YORK -- 9.0%
Metropolitan Transportation
Authority RB, Commuter
Facilities, Series A, FGIC
5.750%, 07/01/11 1,000 1,055
Metropolitan Transportation
Authority RB, Transportaion
Service Contract, Series R
5.500%, 07/01/14 1,740 1,703
New York City GO, Series A
6.250%, 08/01/08 2,000 2,175
7.500%, 03/15/09 65 69
New York City GO, Series B
6.200%, 08/15/06 1,250 1,366
New York City GO, Series C
6.500%, 08/01/05 2,500 2,709
New York City GO, Series D
6.000%, 02/15/09 1,000 1,055
6.000%, 02/15/12 1,500 1,567
New York City GO, Series F
6.500%, 02/15/07 2,865 3,141
New York City GO, Series G
5.750%, 02/01/06 2,000 2,113
5.750%, 02/01/07 500 527
New York State Dormitory
Authority RB, Series A, ST GTD
5.500%, 05/15/10 1,000 1,015
New York State GO, Series C,
AMBAC
5.375%, 10/01/11 3,000 3,060
New York State Housing Finance
Agency RB, Series A, FSA
5.800%, 11/01/09 1,750 1,859
34
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Urban
Development Authority RB,
Youth Facilities Project, MBIA
5.700%, 04/01/14 $1,505 $ 1,552
-------
24,966
-------
NORTH CAROLINA -- 3.3%
North Carolina State, Eastern
Municipal Power Agency RB
6.000%, 01/01/14 4,000 4,085
5.600%, 01/01/16 2,000 1,973
North Carolina State, Eastern
Municipal Power Agency
RB, FGIC
6.000%, 01/01/13 2,000 2,125
North Carolina State, Eastern
Municipal Power Agency RB,
Series D
5.875%, 01/01/14 1,035 1,047
-------
9,230
-------
OHIO -- 2.2%
Franklin County Hospital RB,
AMBAC
5.750%, 05/15/12 2,100 2,187
Ohio State Building Authority RB,
Adult Correctional Facilities
Project, MBIA
5.700%, 10/01/06 1,000 1,080
Ohio State Public Facilities
Commission RB, Higher
Education Authority, Series II-A
5.000%, 05/01/08 2,900 2,958
-------
6,225
-------
PENNSYLVANIA -- 7.3%
Pennsylvania State GO
5.250%, 06/15/12 2,155 2,174
Pennsylvania State GO,
1st Series, AMBAC
5.125%, 03/15/12 2,000 2,018
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Pennsylvania State Higher
Education & Health Services
RB, Colleges & Universities
Projects, Series A
5.900%, 09/01/14 $1,750 $ 1,838
Pennsylvania State Higher
Education & Health Services
RB, Series A
5.750%, 01/01/12 1,300 1,360
Pennsylvania State Housing
Finance Agency RB, Single
Family Mortgages, Series A
6.000%, 10/01/13 2,000 2,118
Pennsylvania State
Intergovernmental Cooperative
Authority RB, City of
Philadelphia Funding
Project, MBIA
5.600%, 06/15/15 1,000 1,015
Pennsylvania State Turnpike
Commission RB, Series A,
AMBAC
5.500%, 12/01/12 1,450 1,499
Philadelphia Airport RB, FGIC
5.375%, 06/15/14 3,000 2,963
Philadelphia Water and
Wastewater Projects RB, FGIC
5.650%, 06/15/12 5,000 5,175
-------
20,160
-------
PUERTO RICO -- 3.5%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 2,000 2,070
Puerto Rico Electric Power
Authority RB
5.500%, 07/01/16 3,000 3,034
Puerto Rico Electric Power
Authority RB, Series CC, FSA
5.000%, 07/01/10 2,435 2,468
Puerto Rico Industrial, Medical &
Environmental RB,
PepsiCo Project
6.250%, 11/15/13 1,000 1,093
35
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
PUERTO RICO (CONTINUED)
Puerto Rico Public Education &
Health Facilities RB, Series M,
CGTD
5.750%, 07/01/15 $1,000 $ 1,023
-------
9,688
-------
RHODE ISLAND -- 4.9%
Bristol County Water Authority
RB, Series A, MBIA
5.200%, 12/01/13 1,080 1,081
Pawtucket GO, FGIC
5.625%, 04/15/07 1,600 1,700
Rhode Island State Depositors
Economic Protection RB,
Series B, MBIA
5.800%, 08/01/09 1,000 1,086
Rhode Island State Health &
Educational Building RB,
Landmark Medical Project, FSA
5.600%, 10/01/12 1,000 1,025
Rhode Island State Housing &
Mortgage Finance RB,
Series 7-B, AMT
6.700%, 10/01/12 1,750 1,877
Rhode Island State Housing &
Mortgage Finance RB, Series 15-B
6.100%, 10/01/05 500 537
6.200%, 10/01/06 1,110 1,188
Rhode Island State Housing &
Mortgage Finance RB, Series 19-A
5.700%, 04/01/15 2,500 2,547
Rhode Island State Housing &
Mortgage Finance RB,
Series A, AMBAC
5.700%, 07/01/07 1,000 1,070
Rhode Island State Student Loan
Authority RB, Series B, AMT, LOC
6.900%, 12/01/03 1,300 1,407
-------
13,518
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
SOUTH CAROLINA -- 0.4%
South Carolina State Public
Service Authority RB,
Series B, FGIC
5.875%, 01/01/14 $1,150 $ 1,215
-------
TEXAS -- 5.0%
Dallas-Fort Worth Regional
Airport RB, Series A, MBIA
5.800%, 11/01/07 2,000 2,135
Tarrant County Health Facilities
Authority RB, Harris Methodist
Health System Project,
Series A, AMBAC
5.125%, 09/01/12 2,700 2,720
Texas A&M University RB
5.200%, 05/15/10 2,580 2,622
Texas State GO, Series A
5.700%, 10/01/07 1,500 1,564
5.750%, 10/01/08 1,280 1,352
University of Texas RB, Series A
6.250%, 07/01/13 3,100 3,298
-------
13,691
-------
UTAH -- 1.0%
Utah State Intermountain Power
Agency RB, Series A, AMBAC
6.500%, 07/01/08 2,500 2,872
-------
VERMONT -- 0.7%
Vermont State Educational &
Health Buildings RB, Medical
Center Hospital of Vermont
Project, FGIC
5.750%, 09/01/07 1,800 1,906
-------
VIRGINIA -- 1.8%
Norfolk Industrial Development
Authority RB, Daughters
Charity-DePaul Project
6.500%, 12/01/07 3,000 3,281
36
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
VIRGINIA (CONTINUED)
Virginia State Housing
Development Authority
RB, Series H
5.700%, 11/01/07 $ 1,655 $ 1,765
--------
5,046
--------
WASHINGTON -- 7.7%
Washington State Public Power
Supply Systems RB, FSA
6.300%, 07/01/09 2,000 2,155
6.250%, 07/01/12 2,000 2,123
Washington State Public Power
Supply Systems RB, Nuclear
Power Project # 1, FSA
5.400%, 07/01/12 7,800 7,859
Washington State Public Power
Supply Systems RB, Nuclear
Power Project # 1, Series B
5.125%, 07/01/13 3,000 2,944
Washington State Public Power
Supply Systems RB, Nuclear
Power Project # 2, FGIC
5.550%, 07/01/10 2,500 2,559
Washington State Public Power
Supply Systems RB, Nuclear
Power Project # 2, Series A
6.100%, 07/01/06 1,030 1,133
6.000%, 07/01/12 1,000 1,028
Washington State Public Power
Supply Systems RB, Nuclear
Power Project # 3, Series A, FSA
5.100%, 07/01/10 1,395 1,398
--------
21,199
--------
WISCONSIN -- 1.7%
Wisconsin State GO, Series A
5.800%, 05/01/07 1,355 1,458
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Wisconsin State Housing &
Economic Development
Authority RB, Home
Ownership, Series E, GOA
5.900%, 09/01/16 $ 1,000 $ 1,041
Wisconsin State Housing &
Economic Development
Authority RB, Series C, GOA
5.800%, 11/01/13 2,125 2,194
--------
4,693
--------
TOTAL MUNICIPAL BONDS
(Cost $256,235) 269,328
--------
REPURCHASE AGREEMENT -- 4.3%
Paine Webber
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$11,945,952 (collateralized
by U.S. Treasury Notes:
total market value
$12,174,108) 11,940 11,940
--------
TOTAL REPURCHASE AGREEMENT
(Cost $11,940) 11,940
--------
TOTAL INVESTMENTS -- 101.8%
(Cost $268,175) 281,268
--------
OTHER ASSETS AND LIABILITIES, NET -- (1.8%) (5,000)
--------
37
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 26,629,767
outstanding shares of beneficial interest $263,127
Accumulated net realized gain
on investments 49
Net unrealized appreciation
on investments 13,092
--------
TOTAL NET ASSETS -- 100.0% $276,268
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.37
========
(A) WHEN ISSUED SECURITY.
(B) ZERO COUPON BOND. THE RATE REPORTED IS THE EFFECTIVE YIELD AS OF
NOVEMBER 30, 1997.
AMT -- ALTERNATIVE MINIMUM TAX
CGTD -- COMMONWEALTH GUARANTEED
COP -- CERTIFICATES OF PARTICIPATION
GO -- GENERAL OBLIGATION
GOA -- GENERAL OBLIGATION OF AUTHORITY
GOI -- GENERAL OBLIGATION OF INSTITUTION
LOC -- SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY A
MAJOR COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
RB -- REVENUE BOND
ST GTD -- STATE GUARANTEED
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR
SECURITIES LISTED ABOVE.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
CONLEE -- COLLEGE CONSTRUCTION LOAN INSURANCE ASSOCIATION
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING AUTHORITY
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA -- FINANCIAL SECURITY ASSURANCE
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
38
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS:]
INDUSTRIAL DEVELOPMENT & POLLUTION CONTROL BONDS 4%
HEALTH CARE BONDS 15%
OTHER REVENUE BONDS 8%
RESOURCE RECOVERY BONDS 8%
CASH EQUIVALENTS 8%
GENERAL OBLIGATION BONDS 14%
TRANSPORTATION BONDS 14%
ALTERNATIVE MINIMUM TAX BONDS 5%
HOUSING BONDS 14%
UTILITY BONDS 3%
EDUCATION BONDS 4%
WATER AND SEWER BONDS 3%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 92.6%
CONNECTICUT -- 75.9%
Bridgeport GO, AMBAC
5.450%, 03/01/11 $1,550 $1,614
Bridgeport GO, FGIC
8.750%, 08/15/05 500 633
Bridgeport GO, Series A
6.125%, 03/01/05 2,000 2,140
Bristol, Resource Recovery RB,
Ogden Martin System Project
6.500%, 07/01/14 3,000 3,274
Connecticut State Airport RB,
Bradley International
Airport, FGIC
7.650%, 10/01/12 2,000 2,340
Connecticut State COP,
Middletown Courthouse
Facilities Project, MBIA
6.250%, 12/15/08 1,500 1,614
Connecticut State Clean Water
Funding RB
5.600%, 06/01/09 750 791
Connecticut State Development
RB, Duncaster Project
6.700%, 09/01/07 3,350 3,639
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Connecticut State Development
RB, MBIA
6.550%, 06/15/09 $ 500 $ 559
Connecticut State Development
RB, Pfizer Project
6.550%, 02/15/13 250 275
Connecticut State GO, Series A
6.500%, 03/15/07 750 823
5.800%, 03/15/13 3,000 3,120
Connecticut State GO, Series C
5.800%, 08/15/08 1,500 1,601
Connecticut State Health &
Educational Facilities Authority
RB, Bridgeport Hospital,
Series A, MBIA
6.550%, 07/01/06 400 441
6.500%, 07/01/12 500 546
Connecticut State Health &
Educational Facilities Authority
RB, Bridgeport Hospital,
Series C, CONLEE
5.250%, 07/01/15 1,615 1,625
Connecticut State Health &
Educational Facilities Authority
RB, Choate Rosemary Hall,
Series A, Pre-refunded @ 101,
MBIA (A)
6.800%, 07/01/04 750 855
Connecticut State Health &
Educational Facilities Authority
RB, Connecticut State University
System, Series A, MBIA
5.125%, 11/01/12 500 507
Connecticut State Health &
Educational Facilities Authority
RB, Danbury Hospital,
Series E, MBIA
6.500%, 07/01/05 500 542
Connecticut State Health &
Educational Facilities Authority
RB, Greenwich Hospital,
Series A, MBIA
5.750%, 07/01/16 2,000 2,085
39
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
CONNECTICUT (CONTINUED)
Connecticut State Health &
Educational Facilities Authority
RB, New Britian Hospital,
Series B, AMBAC
6.000%, 07/01/09 $ 500 $ 540
Connecticut State Health &
Educational Facilities Authority
RB, New Haven Hospital,
Series H, MBIA
5.625%, 07/01/16 1,000 1,029
Connecticut State Health &
Educational Facilities Authority
RB, New Horizons Village
Project, AMBAC
7.050%, 11/01/09 1,000 1,167
Connecticut State Health &
Educational Facilities Authority
RB, Newington Children's
Hospital, Series A, MBIA
5.850%, 07/01/07 1,110 1,203
Connecticut State Health &
Educational Facilities Authority
RB, Sharon Health Care
Project, AMBAC
6.000%, 11/01/09 1,000 1,083
Connecticut State Health &
Educational Facilities Authority
RB, St. Raphael Hospital,
Series F, AMBAC
6.200%, 07/01/14 500 534
Connecticut State Health &
Educational Facilities Authority
RB, Stamford Hospital, MBIA
5.400%, 07/01/09 2,000 2,095
Connecticut State Health &
Educational Facilities Authority
RB, University of Hartford,
Series D, GOA
6.750%, 07/01/12 2,750 2,870
Connecticut State Health &
Educational Facilities Authority
RB, Wadsworth Nursing
Home, AMBAC
7.125%, 11/01/14 500 578
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Connecticut State Higher
Education RB, Family
Education Loan Program,
Series A, AMT
7.000%, 11/15/05 $1,225 $1,309
Connecticut State Higher
Education RB, Series A
6.500%, 11/15/00 250 264
Connecticut State Higher
Education Supplemental Loan
Authority RB
6.800%, 11/15/02 915 982
Connecticut State Housing Finance
Authority RB, GOA
6.200%, 05/15/14 430 457
Connecticut State Housing
Finance Authority RB,
SubSeries A-3, GOA
5.950%, 05/15/17 1,000 1,043
Connecticut State Housing
Finance Authority RB,
SubSeries E-1, GOA
5.900%, 05/15/15 3,200 3,356
Connecticut State Housing
Finance Authority RB,
Mortgage Finance Program,
Series A, GOA
5.950%, 05/15/11 3,215 3,428
6.200%, 05/15/14 1,350 1,423
Connecticut State Housing
Finance Authority RB, Mortgage
Finance Program, Series B
6.050%, 11/15/03 500 538
6.350%, 11/15/06 400 431
Connecticut State Housing Finance
Authority RB, Mortgage Finance
Program, Series B, FHA
7.200%, 11/15/01 790 812
Connecticut State Housing
Finance Authority RB,
Mortgage Finance Program,
Series C-1, GOA
6.000%, 11/15/10 1,010 1,073
Connecticut State Housing Finance
Authority RB, Mortgage Finance
Program, SubSeries B-1
6.000%, 11/15/15 2,000 2,098
40
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
CONNECTICUT (CONTINUED)
Connecticut State Housing
Finance Authority RB,
Mortgage Finance
Program, SubSeries B-1, GOA
6.000%, 05/15/08 $ 300 $ 324
Connecticut State Housing
Finance Authority RB,
Mortgage Finance
Program, SubSeries B-4, GOA
7.300%, 11/15/03 990 1,040
Connecticut State Resource
Recovery Authority RB,
Bridgeport Resources, Series A
7.625%, 01/01/09 600 616
Connecticut State Resource
Recovery Authority RB,
Mid-Connecticut System
Project, Series A, AMT, MBIA
5.500%, 11/15/11 1,500 1,564
Connecticut State Resource
Recovery Authority RB,
Mid-Connecticut System
Project, Series A, MBIA
5.375%, 11/15/10 2,000 2,073
Connecticut State Resource
Recovery Authority RB,
Series A, AMT
8.000%, 11/15/08 1,500 1,592
Connecticut State Resource
Recovery Authority RB,
Wallingford Resources Project,
Series 1, AMT
6.700%, 11/15/02 800 871
Connecticut State Special Tax RB,
AMBAC
5.250%, 01/01/11 500 511
Connecticut State Special Tax RB,
Transportation Infrastructure,
Series A
5.400%, 09/01/09 500 518
5.700%, 06/01/12 1,160 1,215
Connecticut State Special Tax
RB, Transportation
Infrastructure, Series A, FGIC
5.600%, 06/01/13 1,000 1,036
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Connecticut State Special Tax
RB, Transportation
Infrastructure, Series B, FGIC
6.100%, 09/01/08 $ 500 $ 561
5.500%, 10/01/11 4,920 5,105
5.600%, 10/01/12 1,000 1,038
5.600%, 10/01/13 1,000 1,035
Eastern Connecticut Resource
Recovery Authority RB,
Wheelabrator Libson
Project, Series A
5.500%, 01/01/14 2,775 2,747
Hartford GO, FGIC
5.700%, 10/01/12 500 521
5.750%, 10/01/13 1,000 1,041
New Haven Air Right Packaging
Facility RB, MBIA
6.500%, 12/01/15 2,000 2,160
South Central Connecticut
Regional Water Authority RB,
Series A, MBIA
6.000%, 08/01/09 985 1,058
6.000%, 08/01/10 1,045 1,119
Stratford GO, AMBAC
5.600%, 04/15/12 440 448
University of Connecticut RB,
Series A, MBIA
5.250%, 04/01/14 1,000 1,010
-------
86,540
-------
GUAM -- 1.0%
Guam Power Authority RB,
Series A, AMBAC
5.900%, 10/01/08 1,000 1,085
-------
PUERTO RICO -- 14.0%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 2,700 2,795
Puerto Rico Electric Power
Authority RB
5.500%, 07/01/14 1,000 1,015
5.500%, 07/01/16 1,000 1,011
Puerto Rico Highway &
Transportation RB, Series X
5.300%, 07/01/04 700 725
41
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND (CONCLUDED)
- -------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
PUERTO RICO (CONTINUED)
Puerto Rico Industrial, Medical &
Environmental RB, Abbott
Chemicals Project
6.500%, 07/01/09 $ 500 $ 501
Puerto Rico Industrial, Medical
& Environmental RB,
PepsiCo Project
6.250%, 11/15/13 2,750 3,004
Puerto Rico Infrastructure
Financing Authority RB,
AMBAC
5.250%, 07/01/10 2,500 2,563
Puerto Rico Municipal Finance
Agency RB, Series A, FSA
6.000%, 07/01/09 2,650 2,849
Puerto Rico Public Buildings
Authority RB, MBIA
5.000%, 07/01/11 1,000 1,000
Puerto Rico Telephone RB,
Series L
6.000%, 01/01/12 500 530
---------
15,993
---------
RHODE ISLAND -- 1.7%
Providence GO, Series A, FSA
5.700%, 07/15/12 1,825 1,919
---------
TOTAL MUNICIPAL BONDS
(Cost $100,214) 105,537
---------
REPURCHASE AGREEMENT -- 8.5%
Paine Webber
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$9,666,476 (collateralized by
U.S. Treasury Notes:
total market value
$9,861,349) 9,662 9,662
---------
TOTAL REPURCHASE AGREEMENT
(Cost $9,662) 9,662
---------
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 101.1%
(Cost $109,876) $ 115,199
---------
OTHER ASSETS AND LIABILITIES, NET -- (1.1%) (1,241)
---------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 10,717,993
outstanding shares of beneficial interest 108,632
Accumulated net realized gain
on investments 3
Net unrealized appreciation
on investments 5,323
---------
TOTAL NET ASSETS -- 100.0% $ 113,958
=========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.63
=========
(A) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
AMT--ALTERNATIVE MINIMUM TAX
COP--CERTIFICATES OF PARTICIPATION
GO--GENERAL OBLIGATION
GOA--GENERAL OBLIGATION OF AUTHORITY
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR
SECURITIES LISTED ABOVE.
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
CONLEE--COLLEGE CONSTRUCTION LOAN INSURANCE ASSOCIATION
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FHA--FEDERAL HOUSING ADMINISTRATION
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INVESTORS ASSURANCE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
42
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS:]
GENERAL OBLIGATIONS 18%
CASH EQUIVALENTS 6%
WATER AND SEWER BONDS 19%
OTHER REVENUE BONDS 19%
HOUSING BONDS 3%
ALTERNATIVE MINIMUM TAX BONDS 4%
HEALTH CARE BONDS 10%
RESOURCE RECOVERY BONDS 5%
TRANSPORTATION BONDS 4%
UTILITY BONDS 12%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 93.2%
FLORIDA -- 93.2%
Brevard County, Health Facility
Authority RB, Holmes Regional
Medical Center, MBIA
5.625%, 10/01/14 $1,000 $1,031
Brevard County, Housing &
Finance Authority RB,
Series B, FSA
7.000%, 03/01/13 365 389
Broward County, Solid Waste
RB, MBIA
5.875%, 07/01/08 1,500 1,612
Cape Coral, Water
Improvement RB, FSA
6.375%, 06/01/09 1,500 1,635
Dade County, Aviation RB,
Series A, AMT, MBIA
5.750%, 10/01/15 1,000 1,042
Dade County, Housing Finance
Authority RB, Series D, FSA
6.950%, 12/15/12 770 826
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Dade County, School District RB,
Pre-refunded @ 100, FGIC (A)
6.125%, 08/01/01 $1,000 $1,066
Dade County, Water & Sewer
System RB, FGIC
5.500%, 10/01/18 3,000 3,052
Escambia County, Housing
Finance Authority RB,
Series A, AMT, FHA
7.300%, 10/01/17 640 673
Florida State Board of Education
Capital Outlay GO, Series A
5.750%, 01/01/13 1,000 1,041
5.500%, 06/01/15 2,500 2,562
Florida State Board of Education
Capital Outlay GO,
Series B, MBIA
5.750%, 06/01/11 1,250 1,314
Florida State Finance Department
RB, MBIA
5.500%, 07/01/12 1,000 1,047
Florida State Finance Department
RB, Series A, AMBAC
5.700%, 07/01/09 2,000 2,115
Florida State Finance Department
RB, Series A, MBIA
6.250%, 07/01/13 2,500 2,681
Florida State Pollution
Control RB, Series Y,
Pre-refunded @ 101 (A)
6.400%, 07/01/02 1,000 1,093
Florida State Turnpike
Authority RB, FGIC
5.250%, 07/01/11 2,000 2,038
Fort Lauderdale GO
5.500%, 07/01/15 1,000 1,024
Gainesville, Utilities System
RB, Series B
5.500%, 10/01/13 2,000 2,048
Hillsborough County, Allegany
Health Systems RB, MBIA
6.375%, 12/01/12 1,300 1,411
Indian Trace Community, Water
Management RB, MBIA
5.500%, 05/01/07 1,000 1,071
43
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
FLORIDA (CONTINUED)
Jacksonville, Health Facilities
Authority RB,
Pre-refunded @ 102,
MBIA (A)
6.500%, 05/01/02 $ 1,345 $ 1,488
Naples, Community Hospital
Project RB, MBIA
5.500%, 10/01/16 1,000 1,016
North Port, Utility System
RB, FGIC
6.150%, 10/01/09 1,000 1,083
Orlando, Water & Electric
Utilities Commission RB
5.250%, 10/01/14 1,000 993
Palm Beach County, Solid Waste
Authority RB, MBIA
6.250%, 12/01/08 500 548
Polk County, Utility Systems
RB, FGIC
5.250%, 10/01/17 1,500 1,504
Port St. Lucie, Special Assessment,
District 1, MBIA
5.850%, 10/01/11 3,070 3,281
Reedy Creek, Improvements
GO, Series A, MBIA
5.750%, 06/01/14 2,500 2,619
Volusia County, Hospital Facilities
RB, Memorial Health Systems
Project, AMBAC
5.500%, 11/15/16 1,250 1,280
-------
44,583
-------
TOTAL MUNICIPAL BONDS
(Cost $42,821) 44,583
-------
REPURCHASE AGREEMENT -- 5.5%
Paine Webber
5.690%, dated 11/28/97,
matures 12/01/97, repurchase
price $2,631,018 (collateralized
by U.S. Treasury Instruments:
total market value $2,682,158) 2,630 2,630
-------
TOTAL REPURCHASE AGREEMENT
(Cost $2,630) 2,630
-------
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.7%
(Cost $45,451) $47,213
-------
OTHER ASSETS AND LIABILITIES,
NET -- 1.3% 602
-------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 4,696,465
outstanding shares of beneficial interest 46,052
Accumulated net realized gain
on investments 1
Net unrealized appreciation
on investments 1,762
-------
TOTAL NET ASSETS -- 100.0% $47,815
=======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 10.18
=======
(A) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
AMT--ALTERNATIVE MINIMUM TAX
GO--GENERAL OBLIGATION
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR
SECURITIES LISTED ABOVE.
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FHA--FEDERAL HOUSING ADMINISTRATION
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INVESTORS ASSURANCE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
44
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS:]
GENERAL OBLIGATION BONDS 29%
HEALTH CARE BONDS 11%
HOUSING BONDS 7%
TRANSPORTATION BONDS 13%
EDUCATION BONDS 9%
UTILITY BONDS 3%
RESOURCE RECOVERY BONDS 1%
WATER AND SEWER BONDS 13%
ALTERNATIVE MINIMUM TAX BONDS 2%
PRE-REFUNDED SECURITIES 5%
CASH EQUIVALENTS 7%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 91.6%
MASSACHUSETTS -- 90.4%
Boston GO, Series A, AMBAC
5.650%, 02/01/09 $1,500 $1,571
Chelsea GO, School Loan
Project, AMBAC
6.000%, 06/15/04 650 701
5.700%, 06/15/06 1,000 1,069
Gloucester GO, FGIC
5.100%, 08/01/14 1,105 1,098
Haverhill GO, FGIC
5.300%, 06/15/12 1,500 1,524
Holyoke GO, Series A, FSA
5.600%, 06/15/11 1,000 1,045
5.500%, 06/15/16 815 838
Lawrence GO, AMBAC
6.250%, 02/15/09 1,475 1,621
Lowell GO, AMBAC
5.500%, 08/01/11 2,740 2,839
5.500%, 08/01/12 1,720 1,769
Lowell GO, FSA
5.500%, 01/15/10 1,140 1,180
6.625%, 04/01/15 1,000 1,100
Lynn Water & Sewer
Commission RB, FGIC
5.250%, 12/01/05 475 495
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Massachusetts Bay Transportation
Authority RB, Series A, GOA
5.500%, 03/01/07 $1,500 $1,588
5.800%, 03/01/10 2,640 2,792
Massachusetts Bay Transportation
Authority RB, Series A, MBIA
5.750%, 03/01/18 3,325 3,437
Massachusetts Bay Transportation
Authority RB, Series B, GOA
6.000%, 03/01/12 4,000 4,215
Massachusetts Bay Transportation
Authority RB, Series D, GOA
5.600%, 03/01/08 1,885 2,015
Massachusetts State Educational
Loan Authority RB, Issue E,
Series B, AMT, AMBAC
6.000%, 01/01/12 440 461
6.300%, 07/01/12 1,000 1,059
Massachusetts State GO,
Pre-refunded @ 101 (A)
5.750%, 06/01/06 3,000 3,262
Massachusetts State GO, Series A
5.500%, 02/01/11 3,500 3,583
Massachusetts State GO, Series B
6.500%, 08/01/08 5,315 6,086
Massachusetts State GO,
Series B, FGIC
5.500%, 11/01/07 1,000 1,066
Massachusetts State GO,
Series B, MBIA
5.400%, 11/01/07 2,000 2,122
Massachusetts State GO, Series B,
Pre-refunded @ 102 (A)
6.000%, 08/01/04 3,000 3,300
Massachusetts State GO, Series B,
Pre-refunded @ 102, FGIC (A)
5.875%, 08/01/04 2,000 2,192
Massachusetts State Health &
Educational Facilities Authority
RB, Baystate Medical Center
Project, Series D, FGIC
6.000%, 07/01/15 2,000 2,105
Massachusetts State Health &
Educational Facilities Authority
RB, Brigham & Women's
Hospital Project, Issue D
6.750%, 07/01/13 1,500 1,648
45
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Massachusetts State Health &
Educational Facilities Authority
RB, Dana Farber Cancer
Project, Series E
6.250%, 10/01/09 $1,000 $1,075
Massachusetts State Health &
Educational Facilities Authority
RB, Dana Farber Cancer Project,
Series F, FGIC
6.000%, 12/01/15 1,445 1,523
Massachusetts State Health &
Educational Facilities Authority
RB, Dana Farber Cancer Project,
Series G-1
6.250%, 12/01/09 1,175 1,282
Massachusetts State Health &
Educational Facilities Authority
RB, Emerson Hospital Project,
Series D, FSA
5.800%, 08/15/18 3,000 3,075
Massachusetts State Health &
Educational Facilities Authority
RB, Harvard University Project,
Series M, GOI
5.750%, 12/01/11 1,000 1,040
Massachusetts State Health &
Educational Facilities Authority
RB, Lahey Clinic Medical Center
Project, Series B, MBIA
5.625%, 07/01/15 500 514
Massachusetts State Health &
Educational Facilities Authority
RB, Massachusetts General
Hospital, Series G, AMBAC
5.375%, 07/01/11 2,000 2,047
Massachusetts State Health &
Educational Facilities Authority
RB, New England Deaconess
Hospital Project, Series C
7.200%, 04/01/11 830 882
Massachusetts State Health &
Educational Facilities Authority
RB, Newton-Wellesley Hospital
Project, Issue E, MBIA
5.875%, 07/01/15 3,000 3,135
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Massachusetts State Health &
Educational Facilities Authority
RB, Northeastern University
Project, Series E, MBIA
6.500%, 10/01/12 $1,000 $1,094
Massachusetts State Health &
Educational Facilities Authority
RB, Smith College Project,
Series D, GOI
5.750%, 07/01/16 2,600 2,691
Massachusetts State Health &
Educational Facilities Authority
RB, Tufts University Project,
Series F, FGIC
5.950%, 08/15/18 3,000 3,124
Massachusetts State Health &
Educational Facilities Authority
RB, Williams College, Series F
5.750%, 07/01/19 1,000 1,039
Massachusetts State Housing
Finance Agency RB, Residential
Development Project,
Series A, FNMA
6.875%, 11/15/11 1,750 1,897
Massachusetts State Housing
Finance Agency RB,
Series A, AMBAC
6.300%, 10/01/13 4,950 5,266
Massachusetts State Housing
Finance Agency RB,
Series A, MBIA
5.850%, 12/01/08 1,245 1,327
6.100%, 07/01/15 2,000 2,097
Massachusetts State Housing
Finance Agency RB, Single
Family Housing Project,
Series 14, FHA
7.700%, 12/01/14 1,895 1,990
Massachusetts State Industrial
Finance Agency RB, Babson
College Project, Series A
5.375%, 10/01/17 1,000 1,000
Massachusetts State Industrial
Finance Agency RB, Babson
College Project, Series A, MBIA
6.375%, 10/01/09 1,000 1,091
5.750%, 10/01/15 1,000 1,050
46
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Massachusetts State Industrial
Finance Agency RB, College of
Holy Cross, MBIA
5.500%, 03/01/16 $1,500 $1,541
Massachusetts State Municipal
Wholesale Electric Company
RB, Series B, MBIA
6.750%, 07/01/05 1,000 1,120
Massachusetts State Municipal
Wholesale Electric Company
RB, Series D, MBIA
6.000%, 07/01/05 1,000 1,079
Massachusetts State Municipal
Wholesale Electric Company
RB, Series E, MBIA
6.000%, 07/01/11 2,500 2,656
Massachusetts State Port
Authority RB, Series A, AMT
6.000%, 07/01/13 1,050 1,099
Massachusetts State Port
Authority RB, Series B, AMT
5.250%, 07/01/14 1,385 1,376
Massachusetts State Resource
Recovery RB, Refusetech
Project, Series A
6.150%, 07/01/02 900 951
6.300%, 07/01/05 1,000 1,067
Massachusetts State Special
Obligation RB, Series A
5.500%, 06/01/07 2,000 2,090
5.750%, 06/01/11 2,780 2,995
5.750%, 06/01/12 700 754
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System,
Subseries B, MBIA
5.250%, 01/01/17 1,000 1,000
Massachusetts State Turnpike
Authority RB, Western Turnpike,
Series A, MBIA
5.550%, 01/01/17 2,000 2,037
Massachusetts State Water
Authority RB, Series B, MBIA
5.500%, 03/01/17 3,500 3,566
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Massachusetts State Water
Pollution Abatement Trust RB,
New Bedford Project, Series A
5.700%, 02/01/12 $1,450 $1,528
5.700%, 02/01/15 3,000 3,127
Massachusetts State Water
Pollution Abatement Trust RB,
Pooled Loan Program, Series 1
5.600%, 08/01/13 2,090 2,161
Massachusetts State Water
Pollution Abatement Trust RB,
Pooled Loan Program, Series 2
6.125%, 02/01/07 730 819
Massachusetts State Water
Pollution Abatement Trust
RB, Series A
5.450%, 02/01/13 1,000 1,022
5.250%, 08/01/14 1,000 1,009
Massachusetts State Water
Resource Authority RB,
Series B, GOA
5.875%, 11/01/04 1,000 1,076
6.250%, 11/01/10 3,175 3,425
Massachusetts State Water
Resource Authority RB,
Series C, GOA
6.000%, 11/01/05 2,000 2,158
6.000%, 12/01/11 2,000 2,218
Mendon Upton Regional School
District GO, FGIC
5.500%, 06/01/15 1,405 1,442
5.500%, 06/01/17 1,500 1,537
Nantucket GO
6.800%, 12/01/11 1,425 1,584
Nantucket GO, MBIA
5.250%, 07/15/10 2,250 2,323
Nantucket Islands Land Bank
GO, Series E
7.000%, 07/01/05 1,505 1,642
Northampton GO, MBIA
5.750%, 05/15/16 775 807
Palmer GO, MBIA
5.500%, 10/01/10 1,500 1,541
Peabody GO, Series A
5.000%, 08/01/13 310 303
5.000%, 08/01/14 510 495
47
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Southbridge GO, AMBAC
6.375%, 01/01/12 $ 500 $ 536
Springfield GO, AMBAC
5.300%, 08/01/11 1,000 1,019
5.300%, 08/01/13 1,000 1,011
Springfield GO, FSA
5.000%, 09/01/11 1,885 1,892
University of Lowell Building
Authority RB, Fifth Series A,
AMBAC
5.625%, 11/01/14 3,000 3,169
Uxbridge GO, MBIA
5.400%, 11/15/16 750 763
Worcester GO, FSA
6.250%, 10/01/08 430 477
Worcester GO, Series G, MBIA
5.300%, 07/01/15 1,000 1,009
--------
159,444
--------
PUERTO RICO -- 1.2%
Puerto Rico Commonwealth
GO, FSA
5.500%, 07/01/13 1,000 1,031
Puerto Rico Commonwealth
GO, Series A
6.000%, 07/01/06 1,000 1,064
--------
2,095
--------
TOTAL MUNICIPAL BONDS
(Cost $155,293) 161,539
--------
REPURCHASE AGREEMENT -- 6.8%
Paine Webber
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$11,983,124 (collateralized by
U.S. Treasury Notes:
total market value
$12,222,290) 11,977 11,977
--------
TOTAL REPURCHASE AGREEMENT
(Cost $11,977) 11,977
--------
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.4%
(Cost $167,270) $173,516
--------
OTHER ASSETS AND LIABILITIES, NET -- 1.6% 2,768
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 17,132,047
outstanding shares of beneficial interest 171,301
Accumulated net realized loss
on investments (1,263)
Net unrealized appreciation
on investments 6,246
--------
TOTAL NET ASSETS -- 100.0% $176,284
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.29
========
(A) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
AMT--ALTERNATIVE MINIMUM TAX
GO--GENERAL OBLIGATION
GOA--GENERAL OBLIGATION OF AUTHORITY
GOI--GENERAL OBLIGATION OF INSTITUTION
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR
SECURITIES LISTED ABOVE.
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FHA--FEDERAL HOUSING ADMINISTRATION
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INVESTORS ASSURANCE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
48
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS:]
GENERAL OBLIGATION BONDS 18%
INDUSTRIAL DEVELOPMENT & POLLUTION CONTROL BONDS 5%
EDUCATION BONDS 4%
ALTERNATIVE MINIMUM TAX BONDS 7%
HOUSING BONDS 14%
OTHER REVENUE BONDS 19%
HEALTH CARE BONDS 9%
CASH EQUIVALENTS 13%
TRANSPORTATION BONDS 4%
WATER AND SEWER BONDS 7%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 86.4%
RHODE ISLAND -- 73.8%
Bristol County, Water Authority
RB, MBIA
5.200%, 12/01/14 $1,000 $1,002
Cranston GO, MBIA
6.100%, 06/15/10 1,000 1,095
6.100%, 06/15/15 1,000 1,076
Cumberland GO, MBIA
5.900%, 10/01/06 500 531
Exeter West Greenwich Regional
School District GO, MBIA
5.400%, 11/15/10 1,000 1,045
Kent County Water Authority
RB, MBIA
6.000%, 07/15/08 500 543
North Providence GO,
Series A, MBIA
6.000%, 07/01/12 1,100 1,191
6.050%, 07/01/13 500 543
Pawtucket GO, FGIC
5.625%, 04/15/07 750 797
5.750%, 04/15/08 500 532
Providence GO, FSA
5.050%, 01/15/05 1,090 1,120
5.100%, 01/15/06 1,085 1,120
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Providence Housing Development
Authority RB, Barbara Jordan
Apartments Project,
Series A, MBIA
6.500%, 07/01/09 $ 440 $ 476
Providence Public Building
Authority GO, Series A, FSA
5.400%, 12/15/11 500 516
Rhode Island State Clean Water
Agency RB, Safe Drinking Water
Project, Series A, AMBAC
6.500%, 01/01/09 500 557
Rhode Island State Clean Water
Agency RB, Series A, MBIA
6.600%, 10/01/08 500 551
6.750%, 10/01/13 500 551
Rhode Island State Clean Water
Agency RB, Water
Protection, MBIA
5.875%, 10/01/15 865 897
Rhode Island State Convention
Center Authority RB,
Series A, AMBAC
5.500%, 05/15/13 1,000 1,023
Rhode Island State Depositor's
Economic Protection Agency
RB, Series A, FSA
6.500%, 08/01/07 500 571
6.625%, 08/01/19 2,300 2,556
Rhode Island State Depositor's
Economic Protection Agency
RB, Series B, MBIA
5.800%, 08/01/12 1,000 1,071
Rhode Island State Health &
Educational Building RB, Kent
Hospital Project, MBIA
7.000%, 07/01/10 500 551
Rhode Island State Health &
Educational Building RB,
Landmark Medical Project, FSA
5.600%, 10/01/12 1,000 1,025
Rhode Island State Health &
Educational Building RB,
New England Institutional
Project, CONLEE
5.900%, 03/01/10 400 418
49
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
RHODE ISLAND (CONTINUED)
Rhode Island State Health &
Educational Building RB,
Rhode Island School
Design, MBIA
5.625%, 06/01/16 $2,000 $ 2,055
Rhode Island State Health &
Educational Building RB,
Roger Williams Hospital Project
7.750%, 07/01/16 1,000 1,079
5.250%, 11/15/16 1,000 995
Rhode Island State Health &
Educational Building RB,
Roger Williams Hospital
Project, CONLEE
6.500%, 11/15/08 500 545
Rhode Island State Health &
Educational Building RB,
Roger Williams Hospital Project,
Pre-refunded @ 102, CONLEE (A)
7.200%, 11/15/04 1,500 1,761
Rhode Island State Health &
Educational Building RB,
Salve Regina Project, CONLEE
6.200%, 03/15/08 1,000 1,078
Rhode Island State Housing &
Mortgage Financing RB
5.550%, 04/01/17 500 503
Rhode Island State Housing &
Mortgage Financing RB,
Series 2
7.700%, 10/01/10 500 526
Rhode Island State Housing &
Mortgage Financing RB,
Series 7-B, AMT
6.700%, 10/01/12 750 804
Rhode Island State Housing &
Mortgage Financing RB,
Series 13
6.700%, 10/01/15 2,000 2,158
Rhode Island State Housing &
Mortgage Financing RB,
Series 19-A
5.700%, 04/01/15 1,500 1,528
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Rhode Island State Housing &
Mortgage Financing RB,
Series A, LOC
5.650%, 10/01/07 $1,000 $ 1,035
Rhode Island State Housing &
Mortgage Financing RB,
Series E-1, AMT, FHA
7.500%, 10/01/11 950 1,015
Rhode Island State Industrial
Facilities RB
6.000%, 11/01/14 2,250 2,385
Rhode Island State Industrial
Facilities RB, AMT, LOC
6.500%, 03/01/14 500 529
Rhode Island State Port Authority
& Economic Development
RB, Shepard Building Project,
Series B, Pre-refunded @ 102,
AMBAC (A)
6.500%, 06/01/04 500 563
6.750%, 06/01/04 515 587
Rhode Island State Student Loan
Authority RB, Series A, LOC
6.550%, 12/01/00 500 533
Rhode Island State Student Loan
Authority RB, Series B,
AMT, LOC
6.850%, 12/01/02 500 542
Rhode Island State Student Loan
Authority RB, Series B, AMT
7.000%, 12/01/04 1,390 1,505
Rhode Island State Turnpike &
Bridge Authority RB
5.000%, 12/01/11 1,000 985
5.350%, 12/01/17 605 604
Villa Excelsior, Housing
Development Mortgages
RB, MBIA
6.650%, 07/01/12 475 514
Warwick GO, Series A, MBIA
6.600%, 11/15/06 500 550
Westerly GO, AMBAC
5.850%, 09/15/08 450 482
-------
46,219
-------
50
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
PUERTO RICO -- 12.6%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 $1,000 $ 1,035
Puerto Rico Electric Power
Authority RB
5.500%, 07/01/16 3,000 3,034
Puerto Rico Highway &
Transportation Authority RB,
Series V
6.375%, 07/01/07 1,135 1,220
Puerto Rico Industrial, Medical &
Environmental Pollution
Control RB, PepsiCo Project,
Series A
6.250%, 11/15/13 500 546
Puerto Rico Public Education &
Health Facilities RB,
Series M, CGTD
5.750%, 07/01/15 2,000 2,045
-------
7,880
-------
TOTAL MUNICIPAL BONDS
(Cost $51,438) 54,099
-------
CASH EQUIVALENTS -- 1.6%
Federated Tax-Free Money
Market Fund 500 500
Fidelity Tax-Exempt Money
Market Fund 500 500
-------
TOTAL CASH EQUIVALENTS
(Cost $1,000) 1,000
-------
REPURCHASE AGREEMENT -- 11.7%
Paine Webber
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$7,362,904 (collateralized by
U.S. Treasury Notes:
total market value
$7,500,407) 7,359 7,359
-------
TOTAL REPURCHASE AGREEMENT
(Cost $7,359) 7,359
-------
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.7%
(Cost $59,797) $62,458
-------
OTHER ASSETS AND LIABILITIES, NET -- 0.3% 184
-------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 5,958,660
outstanding shares of beneficial interest 59,977
Accumulated net realized gain
on investments 4
Net unrealized appreciation
on investments 2,661
-------
TOTAL NET ASSETS -- 100.0% $62,642
=======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.51
=======
(A) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
AMT--ALTERNATIVE MINIMUM TAX
CGTD--COMMONWEALTH GUARANTEED
GO--GENERAL OBLIGATION
LOC--SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY A MAJOR
COMMERCIAL BANK, OTHER FINANCIAL INSTITUTION, OR GOVERNMENT AGENCY.
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR
SECURITIES LISTED ABOVE.
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
CONLEE--COLLEGE CONSTRUCTION LOAN INSURANCE ASSOCIATION
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FHA--FEDERAL HOUSING ADMINISTRATION
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INVESTORS ASSURANCE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
51
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS:]
CASH EQUIVALENTS 7%
COMMON STOCKS 50%
PREFERRED STOCK 1%
ASSET-BACKED SECURITIES 5%
CORPORATE OBLIGATIONS 15%
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS 2%
U.S. TREASURY OBLIGATIONS 17%
U.S. GOVERNMENT AGENCY OBLIGATIONS 3%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 50.0%
AEROSPACE & DEFENSE -- 1.9%
Raytheon 14,000 $ 783
------
AIR TRANSPORTATION -- 2.0%
AMR (A) 7,000 848
------
BASIC INDUSTRIES -- 1.4%
Willamette Industries 16,000 562
------
CAPITAL GOODS/MACHINERY
CONSTRUCTION -- 6.3%
Analog Devices (A) 6,700 210
Dover 10,500 704
General Electric 9,000 664
Molex 7,100 270
W.W. Grainger 8,500 796
------
2,644
------
CONSUMER NON-DURABLES/
WHOLESALE TRADE -- 3.2%
Nestle ADR 12,000 898
Procter & Gamble 6,000 458
------
1,356
------
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ENERGY -- 6.6%
Baker Hughes 16,000 $ 670
Exxon 8,000 488
Mobil 8,500 611
Schlumberger 12,000 988
------
2,757
------
FINANCIAL SERVICES -- 10.2%
Allstate 10,000 859
American International Group 9,000 907
BankAmerica 8,000 584
Citicorp 1,900 228
Federal National Mortgage
Association 6,500 343
Nationsbank 2,500 150
Norwest 29,000 1,086
Vesta Insurance Group 2,000 110
------
4,267
------
HEALTH CARE -- 5.4%
American Home Products 2,000 140
Genzyme (A) 20,000 536
Johnson & Johnson 12,000 755
Merck 7,000 662
Roche Holdings ADR 1,800 161
------
2,254
------
MEDICAL PRODUCTS & SERVICES-- 1.3%
Boston Scientific (A) 9,000 407
Elan ADR (A) 2,800 148
------
555
------
SPECIALTY MACHINERY -- 0.5%
U.S. Filter (A) 6,100 191
------
TECHNOLOGY -- 5.4%
Cambridge Technology
Partners (A) 3,500 136
Computer Associates
International 16,500 859
Hewlett Packard 8,000 488
Lucent Technologies 8,500 681
Sony 1,300 109
------
2,273
------
52
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TELEPHONES &
TELECOMMUNICATIONS -- 3.9%
Ericsson Telephone ADR (A) 20,000 $ 809
SBC Communications 11,000 801
-------
1,610
-------
WHOLESALE -- 1.9%
Sysco 17,500 780
-------
TOTAL COMMON STOCKS
(Cost $15,360) 20,880
-------
PREFERRED STOCK -- 0.5%
INSURANCE -- 0.5%
Hartford Capital II 8,000 211
-------
TOTAL PREFERRED STOCK
(Cost $200) 211
-------
U.S. TREASURY OBLIGATIONS -- 17.2%
U.S. Treasury Bonds
8.125%, 08/15/19 $ 100 124
7.250%, 08/15/22 500 570
7.125%, 02/15/23 300 338
6.125%, 11/15/27 500 506
U.S. Treasury Notes
5.875%, 10/31/98 600 601
5.000%, 01/31/99 100 99
5.500%, 04/15/00 200 199
6.250%, 05/31/00 500 505
6.125%, 07/31/00 400 403
6.125%, 09/30/00 1,000 1,008
5.625%, 11/30/00 250 249
6.500%, 08/15/05 500 518
6.500%, 10/15/06 1,000 1,040
3.375%, 01/15/07 1,017 1,003
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $7,023) 7,163
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS -- 15.1%
FINANCE -- 9.4%
Allstate
5.875%, 06/15/98 $ 100 $ 100
Chase Manhattan
8.000%, 06/15/99 200 205
Chrysler Financial
6.230%, 07/17/98 320 321
Ford Motor Credit
6.750%, 05/15/05 100 101
General Motors Acceptance
6.625%, 10/01/02 200 202
Morgan Stanley, Dean Witter,
Discover & Company
6.375%, 08/01/02 1,000 1,000
Safeco
6.875%, 07/15/07 410 417
Swiss Bank NY
7.375%, 06/15/17 1,500 1,592
-------
3,938
-------
INDUSTRIAL -- 5.7%
CIA Telecom Chile, YB
7.625%, 07/15/06 1,000 1,016
Ford Motor
7.250%, 10/01/08 250 263
Sears Roebuck
6.250%, 01/15/04 500 495
Trans-Canada Pipelines, YB
9.125%, 04/20/06 250 288
Walt Disney
6.750%, 03/30/06 300 307
-------
2,369
-------
TOTAL CORPORATE OBLIGATIONS
(Cost $6,219) 6,307
-------
ASSET-BACKED SECURITIES -- 4.6%
Asset Securitization, Series
1996-MD6, Class A-1B
6.880%, 11/13/26 250 256
53
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 ASSET ALLOCATION FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES (CONTINUED)
Ford Credit Grantor,
Series 1994-B, Class A
7.300%, 10/15/99 $ 17 $ 17
PNC Student Loan Trust I,
Series 1997-2, Class A-6
6.572%, 01/25/04 600 607
Premier Auto Trust, Series
1993-4, Class A-2
4.650%, 02/02/99 12 12
Sears Credit Account Master Trust,
Series 1996-4, Class A
6.450%, 10/15/06 500 507
Sears Credit Account Master Trust,
Series 1997-1, Class A
6.200%, 07/16/07 500 502
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $1,877) 1,901
-------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 3.0%
Federal National Mortgage
Association, MTN
7.070%, 06/25/01 500 512
7.240%, 01/04/07 500 509
Private Export Funding Corporation
8.400%, 07/31/01 25 27
Tennessee Valley Authority
Principal STRIPS (B)
7.813%, 04/15/42 500 205
-------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $1,198) 1,253
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 1.7%
Federal National Mortgage
Association
6.500%, 03/01/11 $ 564 $ 563
Government National Mortgage
Association
7.500%, 06/15/23 161 165
-------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS
(Cost $717) 728
-------
NON-AGENCY MORTGAGE-BACKED
OBLIGATION -- 0.3%
Associates Manufactured Housing,
Series 1997-1, Class A-3
6.600%, 06/15/28 115 116
-------
TOTAL NON-AGENCY MORTGAGE-
BACKED OBLIGATION
(Cost $115) 116
-------
REPURCHASE AGREEMENT -- 6.7%
Paine Webber
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$2,804,045 (collateralized by
U.S. Treasury Notes:
total market value
$2,858,827) 2,803 2,803
-------
TOTAL REPURCHASE AGREEMENT
(Cost $2,803) 2,803
-------
TOTAL INVESTMENTS -- 99.1%
(Cost $35,512) 41,362
-------
OTHER ASSETS AND LIABILITIES, NET -- 0.9% 392
-------
54
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 2,956,237
outstanding shares of beneficial interest $35,412
Undistributed net investment income 191
Accumulated net realized gain
on investments 301
Net unrealized appreciation
on investments 5,850
-------
TOTAL NET ASSETS -- 100.0% $41,754
=======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $14.12
=======
(A) NON-INCOME PRODUCING SECURITY.
(B) THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE EFFECTIVE YIELD AS
OF NOVEMBER 30, 1997.
ADR--AMERICAN DEPOSITORY RECEIPT
MTN--MEDIUM TERM NOTE
STRIPS--SEPARATELY TRADED REGISTERED INTEREST AND PRINCIPAL SECURITIES
YB--YANKEE BOND
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
55
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS:]
CASH EQUIVALENTS 7%
BASIC INDUSTRIES 7%
CAPITAL GOODS/MACHINERY 3%
CONSUMER DURABLES 4%
CONSUMER NON-DURABLES 4%
ENERGY 11%
ENTERTAINMENT 2%
FINANCIAL SERVICES 5%
HEALTH CARE 11%
INSURANCE 5%
MERCHANDISE STORES 7%
REAL ESTATE INVESTMENT TRUSTS 4%
RESTAURANTS 12%
TECHNOLOGY 18%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 94.2%
BASIC INDUSTRIES -- 7.8%
AK Steel Holding 240,000 $ 4,725
Bemis 178,900 7,536
Crown Cork & Seal 100,000 4,881
E.I. duPont de Nemours 100,000 6,056
Monsanto 150,000 6,553
Nucor 150,000 7,500
Owens-Illinois (A) 66,200 2,243
-------
39,494
-------
CAPITAL GOODS/MACHINERY
CONSTRUCTION -- 2.8%
General Electric 80,000 5,900
Hardinge 109,375 4,047
UCAR International (A) 102,500 4,094
-------
14,041
-------
CONSUMER DURABLES -- 4.4%
Cintas 66,600 2,589
Corning 50,000 2,122
Newell 125,000 5,102
Rentokil Group 3,000,000 12,644
-------
22,457
-------
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
CONSUMER NON-DURABLES -- 4.1%
Coca Cola 158,112 $ 9,882
Gillette 60,000 5,539
Northland Cranberries 116,000 1,631
Wolford AG 55,922 4,034
-------
21,086
-------
ENERGY -- 10.8%
Amoco 45,000 4,050
Arakis Energy (A) 600,000 1,762
El Paso Natural Gas 50,000 3,069
Enron 150,000 5,812
Exxon 150,000 9,150
Mobil 100,000 7,194
Nuevo Energy (A) 75,000 3,127
Royal Dutch Petroleum ADR 125,000 6,586
Schlumberger 150,000 12,347
Sonat 40,500 1,764
-------
54,861
-------
ENTERTAINMENT -- 1.7%
Walt Disney 90,000 8,544
-------
FINANCIAL SERVICES -- 5.2%
BankAmerica 80,000 5,840
Bankers Trust New York 50,000 5,928
Espirito Santo Financial
Group (A) 250,000 5,047
Household International 50,000 6,300
Litchfield Financial (A) 178,500 3,592
-------
26,707
-------
HEALTH CARE -- 10.8%
Abbott Laboratories 84,633 5,501
Aviron (A) 100,000 2,175
Cardinal Health 100,000 7,575
Eli Lilly 100,000 6,306
Guidant 100,000 6,425
Johnson & Johnson 100,000 6,294
Medtronic 200,000 9,550
Sangstat Medical (A) 15,000 523
Sofamor/Danek Group (A) 125,325 8,820
Warner Chilcott Laboratories
ADR 125,000 1,719
-------
54,888
-------
56
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
INSURANCE -- 5.1%
Allstate 100,000 $ 8,587
American International Group 60,000 6,049
Chubb 50,000 3,547
St. Paul 100,000 8,000
--------
26,183
--------
MERCHANDISE STORES -- 6.6%
Bed Bath and Beyond (A) 300,000 10,012
Grand Optical Photoservice 50,000 8,668
Home Depot 250,000 13,984
Moebel Walther AG 33,441 892
--------
33,556
--------
REAL ESTATE INVESTMENT TRUSTS-- 4.1%
Felcor Suite Hotels 200,000 7,262
Health Care 12,800 327
Hospitality Properties Trust 120,000 4,268
RFS Hotel Investors 381,000 7,239
Storage USA 50,000 1,953
--------
21,049
--------
RESTAURANTS -- 11.8%
Outback Steakhouse (A) 70,000 2,096
Papa John's International (A) 228,000 7,581
Pizza Express 1,381,000 19,619
Rainforest Cafe (A) 350,000 12,600
Wetherspoon J.D 3,500,000 18,209
--------
60,105
--------
TECHNOLOGY -- 19.0%
Cambridge Technology
Partners (A) 249,000 9,680
Cisco Systems (A) 75,000 6,469
Intel 190,000 14,749
Microsoft (A) 110,000 15,565
Oracle (A) 225,000 7,495
Robotic Vision Systems (A) 500,000 6,906
SAP AG 100,000 30,800
Security Dynamics
Technologies (A) 150,000 5,100
--------
96,764
--------
TOTAL COMMON STOCKS
(Cost $286,377) 479,735
--------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 6.6%
Goldman Sachs
5.450%, dated 11/28/97, matures
12/01/97, repurchase price
$33,886,468 (collateralized by
U.S. Treasury Instruments:
total market value
$34,557,638) $33,871 $ 33,871
--------
TOTAL REPURCHASE AGREEMENT
(Cost $33,871) 33,871
--------
TOTAL INVESTMENTS -- 100.8%
(Cost $320,248) 513,606
--------
OTHER ASSETS AND LIABILITIES, NET -- (0.8%) (4,209)
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 26,672,098
outstanding shares of beneficial interest 317,732
Undistributed net investment income 482
Accumulated net realized loss
on investments (2,175)
Net unrealized appreciation
on investments 193,358
--------
TOTAL NET ASSETS -- 100.0% $509,397
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $19.10
========
(A) NON-INCOME PRODUCING SECURITY.
ADR--AMERICAN DEPOSITORY RECEIPT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
57
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 GROWTH FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS:]
CASH EQUIVALENTS 6%
BASIC INDUSTRIES 4%
CAPITAL GOODS/CONSTRUCTION 6%
CONSUMER DURABLES 3%
CONSUMER NON-DURABLES 6%
ENERGY 13%
FINANCIAL SERVICES 4%
HEALTH CARE 11%
INSURANCE 3%
MEDICAL PRODUCTS & SERVICES 2%
MERCHANDISE STORES 3%
RESTAURANTS 15%
TECHNOLOGY 18%
TELEPHONES & COMMUNICATIONS 6%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 94.8%
AIR TRANSPORTATION -- 0.4%
Virgin Express Holdings (A) 70,000 $ 1,155
-------
AUTOMOTIVE -- 0.2%
Noble International (A) 75,000 670
-------
BASIC INDUSTRIES -- 4.3%
AK Steel Holding 150,000 2,953
Nucor 75,000 3,750
Sealed Air (A) 28,050 1,595
Willamette Industries 120,000 4,215
-------
12,513
-------
CAPITAL GOODS/CONSTRUCTION-- 5.6%
Elbit Vision Systems (A) 45,000 456
Gildemeister Italiana 500,000 1,737
Hardinge 50,000 1,850
Manitowoc 150,000 4,997
Rentokil Group 1,000,000 4,215
UCAR International (A) 75,000 2,995
-------
16,250
-------
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
CONSUMER DURABLES -- 3.0%
Bolder Technologies (A) 35,000 $ 389
Cintas 58,400 2,270
Danaher 25,000 1,469
Dekalb Genetics, Class B 26,100 1,015
Miller Herman 73,800 3,745
-------
8,888
-------
CONSUMER NON-DURABLES -- 6.1%
Coca Cola 26,675 1,667
Jones Apparel Group (A) 25,100 1,224
Liz Claiborne 33,075 1,662
Northland Cranberries 250,000 3,516
Regal Cinemas (A) 200,000 5,100
Robert Half International (A) 84,675 3,308
Wolford AG 19,332 1,395
-------
17,872
-------
ENERGY -- 13.6%
Arakis Energy (A) 600,000 1,762
Baker Hughes 18,050 756
Basin Exploration (A) 150,000 2,775
Cal Dive International (A) 30,000 885
Callon Petroleum (A) 115,000 2,041
Clayton Williams Energy (A) 57,500 906
Domain Energy (A) 100,000 1,663
Global Marine (A) 112,000 2,947
Halliburton 51,650 2,786
Helmerich & Payne 16,200 1,232
KCS Energy 300,000 7,125
Maverick Tube (A) 120,000 3,427
Nuevo Energy (A) 60,000 2,501
Seagull Energy (A) 51,100 1,166
St. Mary Land & Exploration 100,000 4,137
Stone Energy (A) 100,000 2,875
Tosco 21,900 713
-------
39,697
-------
FINANCIAL SERVICES -- 4.1%
BankAmerica 18,850 1,376
Espirito Santo Financial
Group (A) 80,000 1,615
58
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES (CONTINUED)
Euronet Services (A) 127,200 $ 922
Fifth Third Bancorp 13,668 964
Household International 20,000 2,520
MBNA 35,718 949
Redwood Trust 55,000 1,392
Star Banc 42,600 2,300
-------
12,038
-------
HEALTH CARE -- 10.7%
Arterial Vascular (A) 60,000 3,322
Aviron (A) 50,000 1,087
Biosite Diagnostics (A) 70,000 569
Boston Biomedica (A) 62,500 383
Dentsply International 95,000 2,577
Enamelon (A) 155,000 2,616
Healthcare Compare (A) 75,000 3,909
Healthsouth Rehabilitation (A) 21,800 572
Hyseq (A) 100,000 1,275
Medtronic 47,450 2,266
Merck 20,000 1,891
Omnicare 100,000 2,887
Sabratek Corp (A) 125,000 3,266
Sangstat Medical (A) 125,000 4,359
World Heart (A) 100,000 425
-------
31,404
-------
INSURANCE -- 2.6%
American International Group 15,262 1,539
Executive Risk 30,000 1,950
MGIC Investment 43,650 2,551
Preferred Employers
Holdings (A) 60,000 472
Travelers 21,750 1,098
-------
7,610
-------
MEDICAL PRODUCTS & SERVICES -- 2.4%
Sofamor/Danek Group (A) 43,050 3,030
Theragenics (A) 100,000 4,013
-------
7,043
-------
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
MERCHANDISE STORES -- 3.2%
Bed Bath and Beyond (A) 210,500 $ 7,025
Grand Optical Photoservice 12,000 2,080
Moebel Walther AG 13,371 356
-------
9,461
-------
MISCELLANEOUS BUSINESS SERVICES -- 0.1%
Pierce Leahy (A) 17,000 414
-------
RESTAURANTS -- 14.5%
Famous Dave's of America (A) 260,000 4,225
Pizza Express 779,000 11,067
Rainforest Cafe (A) 275,000 9,900
Telepizza 50,000 4,137
Wetherspoon J.D 2,500,000 13,007
-------
42,336
-------
TECHNOLOGY -- 17.8%
Analog Devices (A) 73,900 2,319
Applied Graphics
Technologies (A) 117,200 5,450
Barringer Technologies (A) 25,000 270
Barringer Technologies
Warrant (A) 25,000 25
Cambridge Technology
Partners (A) 75,000 2,916
Cisco Systems (A) 55,950 4,826
Data Dimensions (A) 75,000 1,369
Genrad (A) 100,000 2,656
I2 Technologies (A) 50,000 2,275
Intel 63,700 4,945
Leitch Technology 155,000 4,141
Microsoft (A) 17,850 2,526
Qlogic (A) 40,300 1,335
Robotic Vision Systems (A) 249,000 3,439
SAP AG 10,000 3,080
Security Dynamics
Technologies (A) 75,000 2,550
Viisage Technology (A) 70,000 464
Visio (A) 200,000 7,525
-------
52,111
-------
59
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 GROWTH FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS -- 5.9%
Asia Pacific Wire & Cable (A) 100,000 $ 900
Ciena (A) 75,000 4,050
PLD Telekom (A) 200,000 1,313
Teleport Communications
Group (A) 50,000 2,450
Transcrypt International (A) 205,000 4,766
Worldcom (A) 120,000 3,840
--------
17,319
--------
UTILITIES -- 0.3%
AES (A) 27,400 1,004
--------
TOTAL COMMON STOCKS
(Cost $209,038) 277,785
--------
REPURCHASE AGREEMENT -- 6.0%
Paine Webber
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$17,485,325 (collateralized by
U.S. Treasury Notes:
total market value
$17,827,519) $ 17,477 17,477
--------
TOTAL REPURCHASE AGREEMENT
(Cost $17,477) 17,477
--------
TOTAL INVESTMENTS -- 100.8%
(Cost $226,515) 295,262
--------
OTHER ASSETS AND LIABILITIES, NET -- (0.8%) (2,248)
--------
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 23,282,801
outstanding shares of beneficial interest $224,978
Distributions in excess of
net investment income (584)
Accumulated net realized loss
on investments (127)
Net unrealized appreciation
on investments 68,747
--------
TOTAL NET ASSETS -- 100.0% $293,014
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $12.59
========
(A) NON-INCOME PRODUCING SECURITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
60
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
[PIE CHART OMITTED--PLOT POINTS AS FOLLOWS:]
CANADA 5%
EMERGING MARKETS 11%
FRANCE 8%
GERMANY 12%
JAPAN 15%
NETHERLANDS 7%
OTHER EUROPE 17%
OTHER PACIFIC RIM 1%
UNITED STATES 7%
UNITED KINGDOM 17%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS -- 92.8%
AUSTRALIA -- 1.0%
Fosters Brewing Group 1,186,400 $ 2,194
Smith (Howard) 292,900 2,279
-------
4,473
-------
CANADA -- 5.4%
Bank of Nova Scotia 156,960 6,878
Newbridge Networks
Corporation 155,370 6,545
Newcourt Credit Group 192,200 6,060
Northern Telecom 25,660 2,317
Northern Telecom ADR 25,610 2,300
-------
24,100
-------
CHILE -- 0.9%
Compania Cervecerias
Unidas ADR 57,000 1,539
Enersis ADR 78,180 2,336
-------
3,875
-------
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
CHINA -- 0.7%
China Telecom (Hong Kong) 580,000 $ 968
Guangdong Kelon Electric
Holding 1,956,000 2,176
-------
3,144
-------
FINLAND -- 1.9%
Nokia, Series A 86,487 6,950
Orion-Yhtyma, Series B 42,500 1,636
-------
8,586
-------
FRANCE -- 8.3%
Accor 39,610 7,491
Alcatel Alsthom 59,302 7,436
Atos (Ex-Axime) (A) 36,232 4,814
Axa UAP 33,836 2,456
Cap Gemini 30,000 2,557
Promodes 7,429 2,732
Societe BIC 67,943 4,717
Synthelabo 39,191 4,981
-------
37,184
-------
GERMANY -- 11.4%
Adidas 50,441 7,124
Allianz 31,871 7,538
Bayerische Vereinsbank 86,858 5,158
Deutsche Bank 148,214 9,563
Deutsche Pfandbrief &
Hypothekenbank 85,711 4,862
Muenchener Rueckversicherungs-
Gesellschaft 8,042 2,511
Sap AG 24,442 7,126
SGL Carbon 35,725 4,610
Volkswagen 4,393 2,494
-------
50,986
-------
HUNGARY -- 0.6%
Gedeon Richter GDR 27,000 2,535
-------
INDIA -- 0.4%
Hindalco Industries GDR 77,535 1,745
-------
61
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 INTERNATIONAL EQUITY FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
INDONESIA -- 0.5%
PT Daya Guna Samudera 2,000,000 $ 2,115
PT Indofood Sukses Makmur 140,000 92
-------
2,207
-------
IRELAND -- 0.4%
CRH 132,259 1,550
CRH (UK) 25,436 299
-------
1,849
-------
ITALY -- 3.9%
Credito Italiano 2,849,453 7,805
ENI 812,595 4,745
Telecom Italia 763,156 4,759
-------
17,309
-------
JAPAN -- 15.5%
Bank of Tokyo-
Mitsubishi Bank 500 7
Canon 205,000 4,949
Fujitsu 432,000 4,842
Hirose Electric 47,400 2,850
Hitachi Credit 244,000 4,724
Ito Yokado 51,000 2,303
Keyence 40 6
Nichiei 47,000 5,158
Nippon Comsys 700 9
NTT Data 107 5,200
Omron 287,000 4,904
Ricoh 560,000 6,760
Rohm 73,000 7,210
Shinko Electric Industries 59,000 2,382
Sony 91,100 7,783
TDK 50,000 4,076
Terumo 275,000 4,311
Tokyo Electron 52,000 1,993
-------
69,467
-------
MEXICO -- 4.8%
ALFA, Class A 324,930 2,446
Cemex ADR 551,900 5,445
Cifra, Series B 1,304,000 2,747
Femsa (Fomento Economico
Mexicano), Series B 1,327,000 10,941
-------
21,579
-------
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
NETHERLANDS -- 6.5%
Getronics 204,904 $ 7,043
Hunter Douglas 118,868 4,731
Koninklijke Ahold 95,953 2,559
Nutricia Vereenigde Bedrijven 173,684 4,929
Philips Electronics 87,600 5,788
Randstad Holdings 117,302 4,356
-------
29,406
-------
NORWAY -- 1.0%
Petroleum-Geo Services 31,902 2,055
Tomra Systems 91,122 2,346
-------
4,401
-------
POLAND -- 0.1%
Mostostal Export 139,740 376
-------
PORTUGAL -- 2.1%
Banco Comercial Portugues 246,225 5,195
Electricidade de Portugal 136,542 2,469
Jeronimo Martins 60,997 1,929
-------
9,593
-------
SOUTH AFRICA -- 0.1%
Billiton 140,000 346
-------
SOUTH KOREA -- 0.1%
Cho Hung Bank GDS 163,000 387
-------
SPAIN -- 0.5%
Sol Melia 67,000 2,500
-------
SWEDEN -- 4.7%
Atlas Copco, Series A 145,169 4,459
Atlas Copco, Series B 15,000 461
Autoliv 58,544 2,217
Electrolux AB, Series B 88,647 6,985
Ericsson LM, Series B 166,651 6,803
-------
20,925
-------
SWITZERLAND -- 4.3%
Adecco 14,000 4,129
Novartis 8,000 12,796
Union Bank of Switzerland 1,800 2,294
-------
19,219
-------
62
<PAGE>
BOSTON 1784 FUNDS
================================================================================
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
TAIWAN -- 0.9%
ASE Test 42,000 $ 2,352
Taipei Fund (A) 140 1,380
Taipei Fund Units (A) 36 355
--------
4,087
--------
UNITED KINGDOM -- 16.8%
Amvescap 513,024 3,709
Azlan Group 1,051,200 977
Bank of Scotland 582,276 4,947
British Aerospace 165,963 4,530
British Petroleum 333,740 4,583
British-Borneo Petrol
Syndicate 549,999 4,088
Dixons Group 412,664 4,695
Glaxo Wellcome 537,911 12,494
Granada Group 349,886 5,006
Sema Group 208,841 4,642
Shell Transportation
& Trading 1,382,815 9,413
Smithkline Beecham 797,392 7,408
Tesco 579,820 4,684
WPP Group 985,000 4,393
--------
75,569
--------
TOTAL FOREIGN COMMON STOCKS
(Cost $371,076) 415,848
--------
FOREIGN PREFERRED STOCK -- 0.6%
GERMANY -- 0.6%
Porsche 1,682 2,614
--------
TOTAL FOREIGN PREFERRED STOCK
(Cost $2,319) 2,614
--------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 5.8%
Paine Webber
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$26,097,612 (collateralized by
U.S. Treasury Notes:
total market value
$26,612,793) $26,085 $ 26,085
--------
TOTAL REPURCHASE AGREEMENT
(Cost $26,085) 26,085
--------
TOTAL INVESTMENTS -- 99.2%
(Cost $399,480) 444,547
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.8% 3,628
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 37,257,332
outstanding shares of beneficial interest 402,658
Accumulated net realized loss
on investments (3,487)
Net unrealized appreciation on
forward foreign currency contracts,
foreign currency and translation of
other assets and liabilities in
foreign currency 183
Net unrealized appreciation
on investments 45,067
Undistributed net investment income 3,754
--------
TOTAL NET ASSETS -- 100.0% $448,175
========
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE $12.03
========
(A) NON-INCOME PRODUCING SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
GDR--GLOBAL DEPOSITORY RECEIPT
GDS--GLOBAL DEPOSITORY SHARE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
63
<PAGE>
STATEMENTS OF OPERATIONS (000) (UNAUDITED)
================================================================================
FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 1997 (EXCEPT WHERE NOTED)
<TABLE>
<CAPTION>
BOSTON BOSTON
BOSTON BOSTON 1784 BOSTON 1784
1784 1784 PRIME 1784 BOSTON U.S. GOVERNMENT
TAX-FREE U.S. TREASURY MONEY SHORT-TERM 1784 MEDIUM-TERM
MONEY MARKET MONEY MARKET MARKET INCOME INCOME INCOME
FUND FUND FUND FUND FUND FUND
=====================================================================================
INCOME:
<S> <C> <C> <C> <C> <C> <C>
DIVIDEND INCOME $ -- $ -- $ -- $ -- $ 800 $ --
INTEREST INCOME 17,322 10,485 3,503 6,100 11,197 7,561
LESS: FOREIGN TAXES WITHHELD -- -- -- -- -- --
------- ------- ------ ------ ------- -------
TOTAL INCOME 17,322 10,485 3,503 6,100 11,997 7,561
------- ------- ------ ------ ------- -------
EXPENSES:
INVESTMENT ADVISORY FEES 1,792 756 246 480 1,310 828
LESS: WAIVER OF INVESTMENT
ADVISORY FEES -- (84) (39) -- (102) (74)
ADMINISTRATOR FEES 328 139 45 70 130 82
SHAREHOLDER SERVICING FEES -- 189 62 -- -- --
12B-1 FEES -- -- -- 240 443 280
LESS: WAIVER OF 12B-1 FEES -- -- -- (240) (443) (280)
TRANSFER AGENT FEES & EXPENSES 55 147 42 11 20 8
REGISTRATION FEES 64 12 2 18 11 6
TRUSTEE FEES 8 5 1 3 6 5
PRINTING 32 7 10 3 8 5
AMORTIZATION OF DEFERRED
ORGANIZATIONAL COSTS 7 7 6 -- -- 7
PROFESSIONAL FEES 45 9 13 5 4 2
CUSTODIAN FEES 28 32 10 13 18 14
OTHER EXPENSES 32 10 2 3 11 12
------- ------- ------ ------ ------- -------
TOTAL EXPENSES, NET OF WAIVERS 2,391 1,229 400 606 1,416 895
------- ------- ------ ------ ------- -------
NET INVESTMENT INCOME (LOSS) 14,931 9,256 3,103 5,494 10,581 6,666
------- ------- ------ ------ ------- -------
NET REALIZED GAIN (LOSS)
ON INVESTMENTS (10) 3 -- 517 2,174 949
NET REALIZED GAIN (LOSS) FROM FORWARD FOREIGN
CURRENCY CONTRACTS AND FOREIGN
CURRENCY TRANSACTIONS -- -- -- -- -- --
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS -- -- -- 1,127 7,688 3,840
NET CHANGE IN UNREALIZED
APPRECIATION ON FORWARD FOREIGN
CURRENCY CONTRACTS, FOREIGN CURRENCIES
AND TRANSLATION OF OTHER ASSETS
AND LIABILITIES IN
FOREIGN CURRENCY -- -- -- -- 15 --
------- ------- ------ ------ ------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY (10) 3 -- 1,644 9,877 4,789
------- ------- ------ ------ ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $14,921 $ 9,259 $3,103 $7,138 $20,458 $11,455
======= ======= ====== ====== ======= =======
<FN>
(1) BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND COMMENCED OPERATIONS ON JUNE 30,
1997. REFLECTS OPERATIONS FOR THE PERIOD JUNE 30, 1997 TO NOVEMBER 30, 1997.
</FN>
<PAGE>
BOSTON 1784 FUNDS
================================================================================
BOSTON BOSTON BOSTON BOSTON BOSTON
1784 1784 1784 1784 1784 BOSTON BOSTON BOSTON
TAX-EXEMPT CONNECTICUT FLORIDA MASSACHUSETTS RHODE ISLAND 1784 1784 BOSTON 1784
MEDIUM-TERM TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT ASSET GROWTH AND 1784 INTERNATIONAL
INCOME INCOME INCOME INCOME INCOME ALLOCATION INCOME GROWTH EQUITY
FUND FUND FUND (1) FUND FUND FUND FUND FUND FUND
==================================================================================================================
<C> <C> <C> <C> <C> <C> <C> <C> <C>
$ -- $ -- $ -- $ -- $ -- $ 131 $ 2,965 $ 718 $ 2,538
7,305 2,972 1,054 4,351 1,606 602 698 363 646
-- -- -- -- -- -- (49) (46) (200)
------- ------ ------ ------ ------ ------ ------- ------- --------
7,305 2,972 1,054 4,351 1,606 733 3,614 1,035 2,984
------- ------ ------ ------ ------ ------ ------- ------- --------
986 397 142 598 217 148 1,831 1,069 2,551
(97) (45) (27) (65) (34) -- -- -- --
98 39 14 59 21 15 181 106 187
-- -- -- -- -- -- -- -- --
333 134 48 202 73 50 618 361 638
(333) (134) (48) (202) (73) (50) (618) (361) (638)
17 12 7 16 8 13 53 24 23
16 3 7 11 4 1 16 18 23
5 2 -- 2 2 1 4 2 7
4 3 1 3 2 1 9 9 2
7 -- 1 7 1 6 7 2 --
4 5 1 3 2 1 6 14 --
11 7 6 9 9 6 52 18 326
15 6 1 4 2 2 27 4 9
------- ------ ------ ------ ------ ------ ------- ------- --------
1,066 429 153 647 234 194 2,186 1,266 3,128
------- ------ ------ ------ ------ ------ ------- ------- --------
6,239 2,543 901 3,704 1,372 539 1,428 (231) (144)
------- ------ ------ ------ ------ ------ ------- ------- --------
1,200 165 87 79 58 1,468 (820) 3,251 (3,407)
-- -- -- -- -- -- -- -- (727)
6,184 2,575 767 4,294 1,230 1,955 50,965 21,541 (34,844)
-- -- -- -- -- -- -- -- 149
------- ------ ------ ------ ------ ------ ------- ------- --------
7,384 2,740 854 4,373 1,288 3,423 50,145 24,792 (38,829)
------- ------ ------ ------ ------ ------ ------- ------- --------
$13,623 $5,283 $1,755 $8,077 $2,660 $3,962 $51,573 $24,561 $(38,973)
======= ====== ====== ====== ====== ====== ======= ======= ========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
64 & 65
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000) (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
BOSTON BOSTON BOSTON BOSTON
1784 1784 1784 1784
TAX-FREE U.S. TREASURY PRIME SHORT-TERM
MONEY MARKET MONEY MARKET MONEY MARKET INCOME
FUND FUND FUND FUND
============================================================================================
6/1/97 6/1/96 6/1/97 6/1/96 6/1/97 1/1/97 1/1/96 6/1/97 6/1/96
TO TO TO TO TO TO TO TO TO
11/30/97 5/31/97 11/30/97 5/31/97 11/30/97 5/31/97(1) 12/31/96 11/30/97 5/31/97
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
NET INVESTMENT INCOME $ 14,931 $ 22,285 $ 9,256 $ 12,140 $ 3,103 $ 2,378 $ 10,146 $ 5,494 $ 8,149
NET REALIZED GAIN (LOSS)
ON INVESTMENTS (10) (94) 3 20 -- -- 4 517 (896)
NET CHANGE IN UNREALIZED
APPRECIATION ON INVESTMENTS -- -- -- -- -- -- -- 1,127 506
NET CHANGE IN UNREALIZED APPRECIATION
ON FORWARD CURRENCY CONTRACTS, FOREIGN
CURRENCIES AND TRANSLATION OF OTHER
ASSETS AND LIABILITIES IN
FOREIGN CURRENCY -- -- -- -- -- -- -- -- --
--------- ----------- --------- --------- --------- --------- --------- -------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 14,921 22,191 9,259 12,160 3,103 2,378 10,150 7,138 7,759
--------- ----------- --------- --------- --------- --------- --------- -------- --------
DISTRIBUTIONS TO
SHAREHOLDERS:
NET INVESTMENT INCOME (14,933) (22,285) (9,258) (12,143) (3,103) (2,378) (10,146) (5,494) (8,167)
REALIZED CAPITAL GAINS -- -- -- -- -- -- -- -- --
--------- ----------- --------- --------- --------- --------- --------- -------- --------
TOTAL DISTRIBUTIONS (14,933) (22,285) (9,258) (12,143) (3,103) (2,378) (10,146) (5,494) (8,167)
--------- ----------- --------- --------- --------- --------- --------- -------- --------
SHARE TRANSACTIONS:
CAPITAL CONTRIBUTION FROM ADVISER -- -- -- -- -- -- 124 -- --
VALUE FROM SHARES ISSUED IN CONNECTION
WITH ACQUISITION OF COMMON TRUST
FUND ASSETS -- -- -- -- -- -- -- -- --
VALUE FROM SHARES ISSUED IN
REORGANIZATION (3) -- -- -- 320,110 -- -- -- -- 43,620
PROCEEDS FROM SHARES ISSUED 724,538 1,353,963 301,175 402,271 192,681 184,607 326,422 16,858 117,953
REINVESTMENT OF CASH DISTRIBUTIONS 2,215 3,660 8,937 11,681 1,810 1,497 2,371 3,372 4,503
COST OF SHARES REDEEMED (647,859) (1,061,545) (337,177) (422,784) (180,868) (156,234) (445,825) (27,068) (58,018)
--------- ----------- --------- --------- --------- --------- --------- -------- --------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 78,894 296,078 (27,065) 311,278 13,623 29,870 (116,908) (6,838) 108,058
--------- ----------- --------- --------- --------- --------- --------- -------- --------
TOTAL INCREASE (DECREASE) IN
NET ASSETS 78,882 295,984 (27,064) 311,295 13,623 29,870 (116,904) (5,194) 107,650
NET ASSETS:
BEGINNING OF PERIOD 845,612 549,628 390,294 78,999 123,099 93,229 210,133 194,033 86,383
--------- ----------- --------- --------- --------- --------- --------- -------- --------
NET ASSETS:
END OF PERIOD $ 924,494 $ 845,612 $ 363,230 $ 390,294 $ 136,722 $ 123,099 $ 93,229 $188,839 $194,033
========= =========== ========= ========= ========= ========= ========= ======== ========
CAPITAL SHARE TRANSACTIONS:
SHARES ISSUED IN CONNECTION WITH
ACQUISITION OF COMMON TRUST
FUND ASSETS -- -- -- -- -- -- -- -- --
SHARES ISSUED
IN REORGANIZATION (3) -- -- -- 320,110 -- -- -- -- 4,325
SHARES ISSUED 724,538 1,353,963 301,175 402,271 192,681 184,607 326,422 1,677 11,771
SHARES ISSUED IN LIEU OF CASH
DISTRIBUTIONS 2,215 3,660 8,937 11,681 1,810 1,497 2,371 335 451
SHARES REDEEMED (647,859) (1,061,545) (337,177) (422,784) (180,868) (156,234) (445,825) (2,693) (5,809)
--------- ----------- --------- --------- --------- --------- --------- -------- --------
NET INCREASE (DECREASE) IN
CAPITAL SHARES 78,894 296,078 (27,065) 311,278 13,623 29,870 (117,032) (681) 10,738
========= =========== ========= ========= ========= ========= ========= ======== ========
<FN>
(1)UNTIL DECEMBER 9, 1996, BOSTON 1784 PRIME MONEY MARKET FUND WAS KNOWN AS BAYFUNDS MONEY MARKET PORTFOLIO. THE FUND
CHANGED ITS FISCAL YEAR END FROM DECEMBER 31 TO MAY 31.
(2)BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND COMMENCED OPERATIONS ON JUNE 30, 1997.
(3)ON NOVEMBER 25, 1996, THE ASSETS OF FOUR PORTFOLIOS OF BAYFUNDS WERE REORGANIZED WITH CERTAIN BOSTON 1784 FUNDS.
PLEASE SEE THE NOTES TO THE FINANCIAL STATEMENTS FOR FURTHER INFORMATION REGARDING THESE TRANSACTIONS.
</FN>
<PAGE>
BOSTON 1784 FUNDS
=================================================================================================================
BOSTON BOSTON BOSTON BOSTON BOSTON
1784 1784 1784 1784 1784
BOSTON U.S. GOVERNMENT TAX-EXEMPT CONNECTICUT FLORIDA MASSACHUSETTS
1784 MEDIUM-TERM MEDIUM-TERM TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
INCOME INCOME INCOME INCOME INCOME INCOME
FUND FUND FUND FUND FUND FUND
=================================================================================================================
6/1/97 6/1/96 6/1/97 6/1/96 6/1/97 6/1/96 6/1/97 6/1/96 6/30/97 6/1/97 6/1/96
TO TO TO TO TO TO TO TO TO TO TO
11/30/97 5/31/97 11/30/97 5/31/97 11/30/97 5/31/97 11/30/97 5/31/97 11/30/97 (2) 11/30/97 5/31/97
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 10,581 $ 18,143 $ 6,666 $ 12,118 $ 6,239 $ 11,066 $ 2,543 $ 4,518 $ 901 $ 3,704 $ 6,057
2,174 (2,487) 949 (2,236) 1,200 1,674 165 31 87 79 (447)
7,688 4,925 3,840 3,128 6,184 3,983 2,575 1,816 767 4,294 3,226
15 -- -- -- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
20,458 20,581 11,455 13,010 13,623 16,723 5,283 6,365 1,755 8,077 8,836
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
(10,913) (18,013) (6,666) (12,118) (6,239) (11,066) (2,543) (4,518) (901) (3,704) (6,057)
-- (2,124) -- -- (2,598) (1,723) (192) (41) (86) -- --
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
(10,913) (20,137) (6,666) (12,118) (8,837) (12,789) (2,735) (4,559) (987) (3,704) (6,057)
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-- -- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- 41,223 -- --
-- 51,241 -- -- -- -- -- -- -- -- --
44,511 84,395 30,321 68,956 29,026 70,317 15,406 31,723 7,231 35,647 64,278
2,148 4,890 670 1,552 2,711 1,730 593 683 86 982 1,602
(26,198) (41,214) (10,350) (29,753) (10,781) (22,242) (7,693) (12,549) (1,493) (12,177) (27,819)
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
20,461 99,312 20,641 40,755 20,956 49,805 8,306 19,857 47,047 24,452 38,061
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
30,006 99,756 25,430 41,647 25,742 53,739 10,854 21,663 47,815 28,825 40,840
334,778 235,022 209,141 167,494 250,526 196,787 103,104 81,441 -- 147,459 106,619
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
$364,784 $334,778 $234,571 $209,141 $276,268 $250,526 $113,958 $103,104 $ 47,815 $176,284 $147,459
======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ========
-- -- -- -- -- -- -- -- 4,122 -- --
-- 5,014 -- -- -- -- -- -- -- -- --
4,361 8,371 3,195 7,349 2,800 6,949 1,456 3,076 713 3,493 6,482
210 484 70 166 262 170 56 66 8 96 161
(2,570) (4,100) (1,090) (3,167) (1,039) (2,201) (727) (1,217) (147) (1,193) (2,807)
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
2,001 9,769 2,175 4,348 2,023 4,918 785 1,925 4,696 2,396 3,836
======== ======== ======== ======== ======== ======== ======== ======== ======== ======== ========
66 & 67
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000) (UNAUDITED)
=======================================================================================================================
BOSTON
1784 BOSTON BOSTON BOSTON
RHODE ISLAND 1784 1784 BOSTON 1784
TAX-EXEMPT ASSET GROWTH AND 1784 INTERNATIONAL
INCOME ALLOCATION INCOME GROWTH EQUITY
FUND FUND FUND FUND FUND
=======================================================================================================================
6/1/97 6/1/96 6/1/97 6/1/96 6/1/97 6/1/96 6/1/97 6/1/96 6/1/97 6/1/96
TO TO TO TO TO TO TO TO TO TO
11/30/97 5/31/97 11/30/97 5/31/97 11/30/97 5/31/97 11/30/97 5/31/97 11/30/97 5/31/97
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME
(LOSS) $ 1,372 $ 2,256 $ 539 $ 695 $ 1,428 $ 2,861 $ (231) $ 289 $ (144) $ 1,727
NET REALIZED GAIN (LOSS)
ON INVESTMENTS 58 197 1,468 474 (820) 9,803 3,251 14,567 (3,407) 5,936
NET REALIZED GAIN (LOSS)
FROM FORWARD FOREIGN
CURRENCY CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS -- -- -- -- -- -- -- -- (727) 4,430
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION)
ON INVESTMENTS 1,230 912 1,955 2,426 50,965 51,083 21,541 463 (34,844) 38,228
NET CHANGE IN UNREALIZED
APPRECIATION(DEPRECIATION)
ON FOREIGN FORWARD
CURRENCY CONTRACTS, FOREIGN
CURRENCIES AND TRANSLATION
OF OTHER ASSETS AND
LIABILITIES IN FOREIGN
CURRENCY -- -- -- -- -- -- -- -- 149 (1,264)
------- ------- ------- ------- -------- -------- -------- -------- --------- --------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS 2,660 3,365 3,962 3,595 51,573 63,747 24,561 15,319 (38,973) 49,057
------- ------- ------- ------- -------- -------- -------- -------- --------- --------
DISTRIBUTIONS TO
SHAREHOLDERS:
NET INVESTMENT INCOME (1,372) (2,256) (539) (592) (1,603) (2,434) -- (732) -- (3,270)
REALIZED CAPITAL GAINS (230) -- (1,520) (577) (9,315) (7,027) (17,945) -- (5,264) (2,145)
------- ------- ------- ------- -------- -------- -------- -------- --------- --------
TOTAL DISTRIBUTIONS (1,602) (2,256) (2,059) (1,169) (10,918) (9,461) (17,945) (732) (5,264) (5,415)
------- ------- ------- ------- -------- -------- -------- -------- --------- --------
SHARE TRANSACTIONS:
VALUE FROM SHARES ISSUED
IN REORGANIZATION (1) -- -- -- -- -- -- -- 129,676 -- --
PROCEEDS FROM SHARES ISSUED 9,460 19,042 7,492 20,840 71,799 185,731 69,751 123,890 117,049 338,092
REINVESTMENT OF CASH
DISTRIBUTIONS 424 250 2,007 1,089 9,543 6,509 14,176 186 3,810 2,095
COST OF SHARES REDEEMED (2,052) (4,553) (5,170) (5,664) (70,552) (92,037) (59,016) (52,878) (131,495)(243,241)
------- ------- ------- ------- -------- -------- -------- -------- --------- --------
INCREASE (DECREASE) IN NET
ASSETS FROM SHARE
TRANSACTIONS 7,832 14,739 4,329 16,265 10,790 100,203 24,911 200,874 (10,636) 96,946
------- ------- ------- ------- -------- -------- -------- -------- --------- --------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 8,890 15,848 6,232 18,691 51,445 154,489 31,527 215,461 (54,873) 140,588
NET ASSETS:
BEGINNING OF PERIOD 53,752 37,904 35,552 16,831 457,952 303,463 261,487 46,026 503,048 362,460
------- ------- ------- ------- -------- -------- -------- -------- --------- --------
NET ASSETS:
END OF PERIOD $62,642 $53,752 $41,754 $35,522 $509,397 $457,952 $293,014 $261,487 $ 448,175 $503,048
======= ======= ======= ======= ======== ======== ======== ======== ========= ========
CAPITAL SHARE TRANSACTIONS:
SHARES ISSUED IN
REORGANIZATION (1) -- -- -- -- -- -- -- 11,053 -- --
SHARES ISSUED 904 1,864 526 1,644 3,794 11,485 5,161 10,882 8,759 27,383
SHARES ISSUED IN LIEU OF
CASH DISTRIBUTIONS 40 24 141 86 497 403 1,107 16 313 170
SHARES REDEEMED (196) (445) (362) (446) (3,731) (5,699) (4,410) (4,611) (9,937) (19,517)
------- ------- ------- ------- -------- -------- -------- -------- --------- --------
NET INCREASE (DECREASE)
IN CAPITAL SHARES 748 1,443 305 1,284 560 6,189 1,858 17,340 (865) 8,036
======= ======= ======= ======= ======== ======== ======== ======== ========= ========
<FN>
(1)ON NOVEMBER 25, 1996, THE ASSETS OF FOUR PORTFOLIOS OF BAYFUNDS WERE REORGANIZED WITH CERTAIN BOSTON 1784 FUNDS.
PLEASE SEE THE NOTES TO THE FINANCIAL STATEMENTS FOR FURTHER INFORMATION REGARDING THESE TRANSACTIONS.
</FN>
</TABLE>
68
<PAGE>
BOSTON 1784 FUNDS
FINANCIAL HIGHLIGHTS (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
BOSTON 1784 MONEY MARKET FUNDS
FOR THE PERIOD ENDED NOVEMBER 30, 1997 AND THE PERIODS ENDED MAY 31 (EXCEPT WHERE NOTED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
RATIO RATIO OF
OF EXPENSES NET INCOME
NET NET NET RATIO TO AVERAGE TO AVERAGE
ASSET DISTRIBUTIONS ASSET ASSETS RATIO OF NET NET NET
VALUE NET FROM NET VALUE END OF EXPENSES INCOME TO ASSETS ASSETS
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD TO AVERAGE AVERAGE (EXCLUDING (EXCLUDING
OF PERIOD INCOME INCOME OF PERIOD RETURN (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 TAX-FREE MONEY MARKET FUND
FOR THE SIX MONTH PERIOD
ENDED NOVEMBER 30, 1997+ $1.00 0.02 (0.02) $1.00 3.35% $924,494 0.53% 3.33% 0.53% 3.33%
FOR THE YEAR ENDED
MAY 31, 1997 $1.00 0.03 (0.03) $1.00 3.22% $845,612 0.54% 3.17% 0.56% 3.15%
FOR THE YEAR ENDED
MAY 31, 1996 $1.00 0.03 (0.03) $1.00 3.55% $549,628 0.54% 3.49% 0.60% 3.43%
FOR THE YEAR ENDED
MAY 31, 1995 $1.00 0.03 (0.03) $1.00 3.29% $539,412 0.50% 3.28% 0.61% 3.17%
FOR THE PERIOD ENDED
MAY 31, 1994 (1) $1.00 0.02 (0.02) $1.00 2.31%* $407,448 0.27% 2.39% 0.71% 1.95%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $1.00 0.02 (0.02) $1.00 4.95% $363,230 0.65% 4.90% 0.69% 4.86%
FOR THE YEAR ENDED
MAY 31, 1997 $1.00 0.05 (0.05) $1.00 4.86% $390,294 0.64% 4.76% 0.72% 4.68%
FOR THE YEAR ENDED
MAY 31, 1996 $1.00 0.05 (0.05) $1.00 5.16% $ 78,999 0.64% 5.02% 0.75% 4.91%
FOR THE YEAR ENDED
MAY 31, 1995 $1.00 0.05 (0.05) $1.00 4.81% $ 55,068 0.60% 5.13% 0.92% 4.81%
FOR THE PERIOD ENDED
MAY 31, 1994 (2) $1.00 0.03 (0.03) $1.00 2.64%* $ 5,593 0.65% 2.91% 6.42% (2.86)%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 PRIME MONEY MARKET FUND
FOR THE SIX MONTH PERIOD
ENDED NOVEMBER 30, 1997+ $1.00 0.03 (0.03) $1.00 5.09% $136,722 0.65% 5.04% 0.71% 4.98%
FOR THE PERIOD ENDED
MAY 31, 1997 (3) $1.00 0.02 (0.02) $1.00 2.07%* $123,099 0.65% 4.98% 0.75% 4.88%
FOR THE YEAR ENDED
DECEMBER 31, 1996 $1.00 0.05 (0.05) $1.00 5.02% $ 93,229 0.66% 4.85% 0.66% 4.85%
FOR THE YEAR ENDED
DECEMBER 31, 1995 $1.00 0.05 (0.05) $1.00 5.49% $156,532 0.62% 5.40% 0.62% 5.40%
FOR THE YEAR ENDED
DECEMBER 31, 1994 $1.00 0.04 (0.04) $1.00 3.75% $136,923 0.65% 3.64% 0.69% 3.60%
FOR THE YEAR ENDED
DECEMBER 31, 1993 $1.00 0.03 (0.03) $1.00 2.72% $168,909 0.59% 2.68% 0.70% 2.57%
FOR THE PERIOD ENDED
DECEMBER 31, 1992 (4) $1.00 0.02 (0.02) $1.00 2.13%* $242,935 0.59% 3.13% 0.64% 3.08%
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
+ ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(1) BOSTON 1784 TAX-FREE MONEY MARKET FUND COMMENCED OPERATIONS ON JUNE 14, 1993. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(2) BOSTON 1784 U.S. TREASURY MONEY MARKET FUND COMMENCED OPERATIONS ON JUNE 7, 1993. ALL RATIOS FOR THE PERIOD HAVE
BEEN ANNUALIZED.
(3) BOSTON 1784 PRIME MONEY MARKET FUND CHANGED ITS FISCAL YEAR END FROM DECEMBER 31 TO MAY 31. REFLECTS OPERATIONS FOR THE PERIOD
FROM JANUARY 1, 1997 TO MAY 31, 1997. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(4) BOSTON 1784 PRIME MONEY MARKET FUND CHANGED ITS FISCAL YEAR FROM APRIL 30 TO DECEMBER 31. REFLECTS OPERATIONS FOR THE PERIOD
FROM MAY 1, 1992 TO DECEMBER 31, 1992. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
69
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED)
================================================================================
BOSTON 1784 BOND FUNDS
FOR THE PERIOD ENDED NOVEMBER 30, 1997 AND THE PERIODS ENDED MAY 31
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND NET
ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE NET GAINS OR FROM NET FROM VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL END TOTAL
OF PERIOD INCOME INVESTMENTS INCOME GAINS OF PERIOD RETURN
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 SHORT-TERM INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $ 9.98 0.28 0.09 (0.28) -- $10.07 3.83%*
FOR THE YEAR ENDED
MAY 31, 1997 $ 9.93 0.58 0.05 (0.58) -- $ 9.98 6.47%
FOR THE YEAR ENDED
MAY 31, 1996 $10.09 0.60 (0.12) (0.60) (0.04) $ 9.93 4.87%
FOR THE PERIOD ENDED
MAY 31, 1995(1) $10.00 0.56 0.09 (0.56) -- $10.09 6.74%*
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $ 9.99 0.31 0.29 (0.32) -- $10.27 6.01%*
FOR THE YEAR ENDED
MAY 31, 1997 $ 9.90 0.63 0.17 (0.63) (0.08) $ 9.99 8.32%
FOR THE YEAR ENDED
MAY 31, 1996 $10.39 0.65 (0.37) (0.65) (0.12) $ 9.90 2.64%
FOR THE PERIOD ENDED
MAY 31, 1995(1) $10.00 0.62 0.39 (0.62) -- $10.39 10.69%*
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $ 9.37 0.28 0.20 (0.28) -- $ 9.57 5.22%*
FOR THE YEAR ENDED
MAY 31, 1997 $ 9.31 0.59 0.06 (0.59) -- $ 9.37 7.16%
FOR THE YEAR ENDED
MAY 31, 1996 $ 9.57 0.61 (0.26) (0.61) -- $ 9.31 3.65%
FOR THE YEAR ENDED
MAY 31, 1995 $ 9.36 0.58 0.21 (0.58) -- $ 9.57 8.79%
FOR THE PERIOD ENDED
MAY 31, 1994(2) $10.00 0.59 (0.64) (0.59) -- $ 9.36 (0.65)%*
- ------------------------------------------------------------------------------------------------------------------------------------
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
OF PERIOD TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
(000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BOSTON 1784 SHORT-TERM INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $188,839 0.63% 5.73% 0.88% 5.48% 51.89%
FOR THE YEAR ENDED
MAY 31, 1997 $194,033 0.65% 5.78% 0.93% 5.50% 128.11%
FOR THE YEAR ENDED
MAY 31, 1996 $ 86,383 0.63% 5.87% 1.06% 5.44% 95.06%
FOR THE PERIOD ENDED
MAY 31, 1995(1) $ 52,581 0.48% 6.31% 1.27% 5.52% 84.54%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $364,784 0.80% 5.97% 1.11% 5.66% 26.72%
FOR THE YEAR ENDED
MAY 31, 1997 $334,778 0.80% 6.31% 1.15% 5.96% 78.63%
FOR THE YEAR ENDED
MAY 31, 1996 $235,022 0.80% 6.17% 1.20% 5.77% 100.51%
FOR THE PERIOD ENDED
MAY 31, 1995(1) $196,515 0.55% 7.01% 1.23% 6.33% 80.53%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $234,571 0.80% 5.96% 1.12% 5.64% 25.93%
FOR THE YEAR ENDED
MAY 31, 1997 $209,141 0.79% 6.30% 1.16% 5.93% 98.22%
FOR THE YEAR ENDED
MAY 31, 1996 $167,494 0.80% 6.23% 1.24% 5.79% 158.66%
FOR THE YEAR ENDED
MAY 31, 1995 $130,081 0.80% 6.24% 1.27% 5.77% 142.14%
FOR THE PERIOD ENDED
MAY 31, 1994(2) $ 92,387 0.31% 6.08% 1.35% 5.04% 144.77%
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
+ ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(1) BOSTON 1784 SHORT-TERM INCOME FUND AND BOSTON 1784 INCOME FUND COMMENCED OPERATIONS ON JULY 1, 1994. ALL RATIOS FOR THE PERIOD
HAVE BEEN ANNUALIZED.
(2) BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND COMMENCED OPERATIONS ON JUNE 7, 1993. ALL RATIOS FOR THE PERIOD HAVE BEEN
ANNUALIZED.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
70
<PAGE>
BOSTON 1784 FUNDS
================================================================================
BOSTON 1784 TAX-EXEMPT INCOME FUNDS
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED NOVEMBER 30, 1997 AND THE PERIODS ENDED MAY 31 (EXCEPT WHERE NOTED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND NET
ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE NET GAINS OR FROM NET FROM VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL END TOTAL
OF PERIOD INCOME INVESTMENTS INCOME GAINS OF PERIOD RETURN
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $10.18 0.24 0.29 (0.24) (0.10) $10.37 5.27%*
FOR THE YEAR ENDED
MAY 31, 1997 $ 9.99 0.50 0.19 (0.50) -- $10.18 7.74%
FOR THE YEAR ENDED
MAY 31, 1996 $10.14 0.51 (0.09) (0.51) (0.06) $ 9.99 4.31%
FOR THE YEAR ENDED
MAY 31, 1995 $ 9.90 0.48 0.24 (0.48) -- $10.14 7.58%
FOR THE PERIOD ENDED
MAY 31, 1994(1) $10.00 0.49 (0.10) (0.49) -- $ 9.90 3.93%*
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $10.38 0.25 0.27 (0.25) (0.02) $10.63 5.04%*
FOR THE YEAR ENDED
MAY 31, 1997 $10.17 0.51 0.21 (0.51) -- $10.38 7.26%
FOR THE YEAR ENDED
MAY 31, 1996 $10.27 0.53 (0.10) (0.53) -- $10.17 4.20%
FOR THE PERIOD ENDED
MAY 31, 1995(2) $10.00 0.45 0.27 (0.45) -- $10.27 7.45%*
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
FOR THE PERIOD ENDED
NOVEMBER 30, 1997(3) $10.00 0.20 0.20 (0.20) (0.02) $10.18 4.02%*
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $10.01 0.23 0.28 (0.23) -- $10.29 5.17%*
FOR THE YEAR ENDED
MAY 31, 1997 $ 9.78 0.47 0.23 (0.47) -- $10.01 7.30%
FOR THE YEAR ENDED
MAY 31, 1996 $ 9.90 0.48 (0.12) (0.48) -- $ 9.78 3.64%
FOR THE YEAR ENDED
MAY 31, 1995 $ 9.81 0.47 0.09 (0.47) -- $ 9.90 6.00%
FOR THE PERIOD ENDED
MAY 31, 1994(1) $10.00 0.50 (0.19) (0.50) -- $ 9.81 3.04%*
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $10.31 0.25 0.24 (0.25) (0.04) $10.51 4.74%*
FOR THE YEAR ENDED
MAY 31, 1997 $10.06 0.50 0.25 (0.50) -- $10.31 7.61%
FOR THE YEAR ENDED
MAY 31, 1996 $10.13 0.53 (0.07) (0.53) -- $10.06 4.65%
FOR THE PERIOD ENDED
MAY 31, 1995(2) $10.00 0.45 0.13 (0.45) -- $10.13 6.09%*
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<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
OF PERIOD TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER
(000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $276,268 0.80% 4.68% 1.12% 4.36% 8.75%
FOR THE YEAR ENDED
MAY 31, 1997 $250,526 0.80% 4.92% 1.17% 4.55% 33.24%
FOR THE YEAR ENDED
MAY 31, 1996 $196,787 0.79% 4.90% 1.21% 4.48% 37.35%
FOR THE YEAR ENDED
MAY 31, 1995 $176,345 0.80% 5.02% 1.26% 4.56% 74.74%
FOR THE PERIOD ENDED
MAY 31, 1994(1) $ 36,365 0.32% 5.06% 1.61% 3.77% 98.83%
- -----------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $113,958 0.80% 4.73% 1.13% 4.40% 4.35%
FOR THE YEAR ENDED
MAY 31, 1997 $103,104 0.76% 4.94% 1.17% 4.53% 4.28%
FOR THE YEAR ENDED
MAY 31, 1996 $ 81,441 0.75% 5.02% 1.29% 4.48% 20.41%
FOR THE PERIOD ENDED
MAY 31, 1995(2) $ 61,369 0.52% 5.44% 1.40% 4.56% 35.56%
- -----------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
FOR THE PERIOD ENDED
NOVEMBER 30, 1997(3) $ 47,815 0.80% 4.64% 1.19% 4.25% 2.90%
- -----------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $176,284 0.80% 4.58% 1.13% 4.25% 1.77%
FOR THE YEAR ENDED
MAY 31, 1997 $147,459 0.79% 4.74% 1.18% 4.35% 9.47%
FOR THE YEAR ENDED
MAY 31, 1996 $106,619 0.80% 4.73% 1.28% 4.25% 47.00%
FOR THE YEAR ENDED
MAY 31, 1995 $ 82,058 0.80% 4.93% 1.35% 4.38% 34.59%
FOR THE PERIOD ENDED
MAY 31, 1994(1) $ 49,662 0.33% 5.10% 1.41% 4.02% 13.99%
- -----------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $ 62,642 0.80% 4.69% 1.17% 4.32% 9.23%
FOR THE YEAR ENDED
MAY 31, 1997 $ 53,752 0.79% 4.88% 1.21% 4.46% 8.18%
FOR THE YEAR ENDED
MAY 31, 1996 $ 37,904 0.77% 5.16% 1.35% 4.58% 19.68%
FOR THE PERIOD ENDED
MAY 31, 1995(2) $ 32,495 0.54% 5.56% 1.60% 4.50% 57.51%
- -----------------------------------------------------------------------------------------------------------------------------
<FN>
+ ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED
(1) BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND AND BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND COMMENCED OPERATIONS ON
JUNE 14, 1993. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(2) BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND AND BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND COMMENCED OPERATIONS ON
AUGUST 1, 1994. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(3) BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND COMMENCED OPERATIONS ON JUNE 30, 1997. ALL RATIOS FOR THE PERIOD HAVE BEEN
ANNUALIZED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
71
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED)
================================================================================
BOSTON 1784 STOCK FUNDS
FOR THE PERIOD ENDED NOVEMBER 30, 1997 AND THE PERIODS ENDED MAY 31
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND NET
ASSET NET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET
VALUE INVESTMENT GAINS OR FROM NET FROM VALUE
BEGINNING INCOME (LOSSES) ON INVESTMENT CAPITAL END TOTAL
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS OF PERIOD RETURN
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 ASSET ALLOCATION FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $13.40 0.19 1.25 (0.19) (0.53) $14.12 10.84%*
FOR THE YEAR ENDED
MAY 31, 1997 $12.31 0.34 1.44 (0.33) (0.36) $13.40 14.89%
FOR THE YEAR ENDED
MAY 31, 1996 $10.99 0.31 1.61 (0.31) (0.29) $12.31 17.83%
FOR THE YEAR ENDED
MAY 31, 1995 $ 9.84 0.28 1.15 (0.27) (0.01) $10.99 14.84%
FOR THE PERIOD ENDED
MAY 31, 1994(1) $10.00 0.19 (0.20) (0.15) (0.00) $ 9.84 (0.15)%*
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 GROWTH AND INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $17.54 0.05 1.92 (0.06) (0.35) $19.10 11.25%*
FOR THE YEAR ENDED
MAY 31, 1997 $15.23 0.12 2.63 (0.11) (0.33) $17.54 18.33%
FOR THE YEAR ENDED
MAY 31, 1996 $12.16 0.10 3.08 (0.11) (0.00) $15.23 26.32%
FOR THE YEAR ENDED
MAY 31, 1995 $10.57 0.11 1.67 (0.10) (0.09) $12.16 17.09%
FOR THE PERIOD ENDED
MAY 31, 1994(2) $10.00 0.12 0.56 (0.11) (0.00) $10.57 6.80%*
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 GROWTH FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $12.20 (0.01) 1.20 -- (0.80) $12.59 9.68%*
FOR THE YEAR ENDED
MAY 31, 1997 $11.27 0.02 0.96 (0.05) (0.00) $12.20 8.77%
FOR THE PERIOD ENDED
MAY 31, 1996(3) $10.00 0.02 1.25 (0.00) (0.00) $11.27 12.70%*
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INTERNATIONAL EQUITY FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $13.20 (0.02) (1.01) -- (0.14) $12.03 (7.81)%*
FOR THE YEAR ENDED
MAY 31, 1997 $12.05 0.07 1.23 (0.09) (0.06) $13.20 10.93%
FOR THE YEAR ENDED
MAY 31, 1996 $10.41 0.11 1.85 (0.27) (0.05) $12.05 19.08%
FOR THE PERIOD ENDED
MAY 31, 1995(4) $10.00 0.06 0.35 (0.00) (0.00) $10.41 4.73%*
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
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 AVG.
OF PERIOD TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER COMM.
(000) NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE RATE(5)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 ASSET ALLOCATION FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $ 41,754 0.97% 2.70% 1.22% 2.45% 24.95% $0.0603
FOR THE YEAR ENDED
MAY 31, 1997 $ 35,522 1.07% 2.87% 1.37% 2.57% 23.60% $0.0717
FOR THE YEAR ENDED
MAY 31, 1996 $ 16,831 1.25% 2.86% 1.90% 2.21% 39.56% N/A
FOR THE YEAR ENDED
MAY 31, 1995 $ 8,622 1.25% 2.88% 2.51% 1.62% 67.23% N/A
FOR THE PERIOD ENDED
MAY 31, 1994(1) $ 6,928 1.25% 2.62% 3.61% 0.26% 28.19% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 GROWTH AND INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $509,397 0.88% 0.58% 1.13% 0.33% 27.42% $0.0609
FOR THE YEAR ENDED
MAY 31, 1997 $457,952 0.92% 0.77% 1.19% 0.50% 15.35% $0.0556
FOR THE YEAR ENDED
MAY 31, 1996 $303,463 0.94% 0.78% 1.24% 0.48% 39.50% N/A
FOR THE YEAR ENDED
MAY 31, 1995 $229,200 0.94% 1.05% 1.23% 0.76% 38.94% N/A
FOR THE PERIOD ENDED
MAY 31, 1994(2) $121,717 0.35% 1.23% 1.36% 0.22% 31.55% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 GROWTH FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $293,014 0.88% (0.16)% 1.13% (0.41)% 24.59% $0.0466
FOR THE YEAR ENDED
MAY 31, 1997 $261,487 0.77% 0.17% 1.15% (0.21%) 57.46% $0.0548
FOR THE PERIOD ENDED
MAY 31, 1996(3) $ 46,026 0.20% 1.75% 1.73% 0.22% 0.00% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INTERNATIONAL EQUITY FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1997+ $448,175 1.23% 0.02% 1.48% (0.23)% 63.49% $0.0058
FOR THE YEAR ENDED
MAY 31, 1997 $503,048 1.27% 0.41% 1.52% 0.16% 22.88% $0.0037
FOR THE YEAR ENDED
MAY 31, 1996 $362,460 1.13% 0.76% 1.61% 0.28% 15.55% N/A
FOR THE PERIOD ENDED
MAY 31, 1995(4) $148,439 0.89% 2.06% 1.70% 1.25% 11.03% N/A
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
+ ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(1) BOSTON 1784 ASSET ALLOCATION FUND COMMENCED OPERATIONS ON JUNE 14, 1993. ALL RATIOS FOR THE PERIOD HAVE BEENANNUALIZED.
(2) BOSTON 1784 GROWTH AND INCOME FUND COMMENCED OPERATIONS ON JUNE 7, 1993. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(3) BOSTON 1784 GROWTH FUND COMMENCED OPERATIONS ON MARCH 28, 1996. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(4) BOSTON 1784 INTERNATIONAL EQUITY FUND COMMENCED OPERATIONS ON JANUARY 3, 1995. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(5) AVERAGE COMMISSION RATE PAID PER SHARE FOR SECURITY PURCHASES AND SALES DURING THE PERIOD. PRESENTATION OF THE RATE IS REQUIRED
FOR FISCAL YEARS BEGINNING AFTER SEPTEMBER 1, 1995.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
72
<PAGE>
BOSTON 1784 FUNDS
NOVEMBER 30, 1997
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
1. ORGANIZATION
Boston 1784 Tax-Free Money Market, Boston 1784 U.S. Treasury Money Market,
Boston 1784 Prime Money Market (the "Money Market Funds"), Boston 1784
Short-Term Income, Boston 1784 Income, Boston 1784 U.S. Government Medium-Term
Income (the "Bond Funds"), Boston 1784 Tax-Exempt Medium-Term Income, Boston
1784 Connecticut Tax-Exempt Income, Boston 1784 Florida Tax-Exempt Income,
Boston 1784 Massachusetts Tax-Exempt Income, Boston 1784 Rhode Island Tax-Exempt
Income (the "Tax-Exempt Income Funds"), Boston 1784 Asset Allocation, Boston
1784 Growth and Income, Boston 1784 Growth and Boston 1784 International Equity
Funds (the "Stock Funds") are portfolios offered by Boston 1784 Funds (the
"Trust"), an open-end investment company registered under the Investment Company
Act of 1940, as amended. The Trust is offering shares in 17 separate portfolios
(the "Funds") as of November 30, 1997:
MONEY MARKET FUNDS:
BOSTON 1784 TAX-FREE MONEY MARKET FUND
BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
BOSTON 1784 INSTITUTIONAL U.S. TREASURY
MONEY MARKET FUND
BOSTON 1784 PRIME MONEY MARKET FUND
BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND
BOND FUNDS:
BOSTON 1784 SHORT-TERM INCOME FUND
BOSTON 1784 INCOME FUND
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM
INCOME FUND
TAX-EXEMPT INCOME FUNDS:
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
STOCK FUNDS:
BOSTON 1784 ASSET ALLOCATION FUND
BOSTON 1784 GROWTH AND INCOME FUND
BOSTON 1784 GROWTH FUND
BOSTON 1784 INTERNATIONAL EQUITY FUND
The Funds' prospectuses provide a description of each Fund's investment
objectives, policies and strategies. The financial statements of Boston 1784
Institutional U.S. Treasury Money Market Fund and Boston 1784 Institutional
Prime 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. The financial statements have been
prepared in accordance with generally accepted accounting principles which
require the use of management's estimates. Actual results could differ from
these estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds.
SECURITY VALUATION --
In valuing each of the Bond, Tax-Exempt Income and Stock Funds' assets, bonds
and other fixed income securities are valued on the basis of valuations
furnished by a pricing service, use of which has been approved by
73
<PAGE>
NOVEMBER 30, 1997
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
================================================================================
the Board of Trustees of the Trust. Valuations supplied by the pricing service
are subject to review by the Adviser and, if adjusted pursuant to Adviser
review, by the Board of Trustees. An equity security listed on an exchange will
be valued at its last sale price on that exchange using quotations on the
exchange on which the security is traded most extensively. Lacking any sales,
the security will be valued at the mean between the closing ask price and the
closing bid price. Securities that are listed on the National Association of
Securities Dealers' National Market System, for which there have been sales,
shall be valued at the last sale price reported on such system. If there are no
such sales, the value shall be the high, or "inside," bid which is the bid
supplied by the NASD on its NASDAQ Screen for such securities in the
over-the-counter market. Securities quoted on the NASDAQ System, but not listed
on the National Market System, shall be valued at the high or "inside" bid.
Unlisted equity securities that are not quoted on the NASDAQ System and for
which over-the-counter market quotations are readily available will be valued at
the highest quoted current bid price for such securities in the over-the-counter
market. Securities for which market quotations are not readily available,
whether or not listed, will be valued at their fair value as determined in good
faith by the Board of Trustees of the Trust, or pursuant to procedures adopted
by the Board subject to review by the Board of the resulting valuations.
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 Funds are maintained in U.S. dollars. Foreign
currency amounts are translated into U.S. dollars on the following basis:
I. market value of investment 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 Funds do not isolate that portion of gains and losses on investment
securities that is due to changes in the foreign exchange rates from that due to
changes in market prices of such securities.
The Funds report 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.
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, with the exception of Boston
1784 U.S. Government Medium-
74
<PAGE>
BOSTON 1784 FUNDS
================================================================================
Term Income Fund which does not accrete or amortize purchase discounts and
premiums. Interest income is recorded on the accrual basis. Dividend income is
recorded on ex-date.
REPURCHASE AGREEMENTS --
The Funds invest in tri-party repurchase agreements. Securities pledged as
collateral for tri-party repurchase agreements are maintained in a segregated
account by the broker'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 on 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.
DISTRIBUTIONS TO SHAREHOLDERS --
The Money Market, Bond and Tax-Exempt Income Funds declare distributions from
net investment income on a daily basis, payable on the first business day of the
following month. Boston 1784 Asset Allocation and Boston 1784 Growth and Income
Funds declare and pay dividends on a quarterly basis. Boston 1784 Growth Fund
declares and pays dividends on a semi-annual basis. Boston 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. The timing and characterization of certain income and capital
gains distributions are determined annually in accordance with federal tax
regulations that may differ from generally accepted accounting principles. These
differences relate primarily to foreign currency-denominated investments,
paydowns on asset-backed securities and certain securities sold at a loss. As a
result, net investment income (loss) and net realized gain (loss) on investment
transactions for a reporting period may differ from distributions during such
period. Accordingly, the Funds may periodically make reclassifications among
certain capital accounts without impacting the net asset value of the Funds.
75
<PAGE>
NOVEMBER 30, 1997
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
================================================================================
ORGANIZATIONAL COSTS --
Organizational 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 their 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 shares redeemed bears to the initial
shares outstanding at the time of redemption.
OTHER --
Some countries in which the Funds invest require governmental approval for the
repatriation of investment income, capital or the proceeds of sales of
securities by foreign investors. In addition, for various reasons, including a
deterioration in a country's balance of payments, a country may impose temporary
restrictions on foreign capital remittances abroad.
The security exchanges of certain foreign markets are substantially smaller,
less liquid and more volatile than the major securities markets in the United
States. Consequently, acquisition and disposition of securities by the Funds may
be inhibited.
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 Bank-Boston, N.A. (the
"Adviser"). The Adviser isentitled to receive a fee of 0.40% of the average
daily net assets of Boston 1784 Tax-Free Money Market, Boston 1784 U.S. Treasury
Money Market and Boston 1784 Prime Money Market Funds, 0.50% of the average
daily net assets of Boston 1784 Short-Term Income Fund, 0.74% of the average
daily net assets of Boston 1784 Income, Boston 1784 U.S. Government Medium-Term
Income, Boston 1784 Tax-Exempt Medium-Term Income, Boston 1784 Connecticut
Tax-Exempt Income, Boston 1784 Florida Tax-Exempt Income Fund, Boston 1784
Massachusetts Tax-Exempt Income, Boston 1784 Rhode Island Tax-Exempt Income,
Boston 1784 Asset Allocation, Boston 1784 Growth and Income and Boston 1784
Growth Funds. Such fees are computed daily and paid monthly. The Adviser has
voluntarily agreed to waive a portion of its fee as necessary to assist the
Funds in maintaining competitive expense ratios. Boston 1784 International
Equity Fund has entered into separate investment advisory agreements (each an
"Advisory Agreement") with BankBoston, N.A. ("BankBoston") and with Kleinwort
Benson Investment Management Americas Inc. ("Kleinwort Benson" and together with
BankBoston the "International Advisers"). The Advisory Agreement with BankBoston
is dated as of November 28, 1994; the Advisory Agreement with Kleinwort Benson
is dated as of October 27, 1995. The International Advisers are entitled to
receive an aggregate fee of 1.00% of the average daily net assets of Boston 1784
International Equity Fund. Such fee is
76
<PAGE>
BOSTON 1784 FUNDS
================================================================================
computed daily and paid monthly. BankBoston has voluntarily agreed to waive a
portion of its fee as necessary to assist Boston 1784 International Equity Fund
in maintaining a competitive expense ratio.
The Trust and BankBoston, N.A. (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,
as amended. The Custodian is entitled to receive an annual fee, to be paid
monthly, of 0.01% for the first $100 million in average daily net assets,
0.0075% for the next $100 million in average daily net assets and 0.0050% for
the average daily net assets over $200 million of each of the Funds. 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.
4. ADMINISTRATIVE AND DISTRIBUTION SERVICES
Pursuant to an administration agreement dated December 1, 1996, SEI Fund
Resources, a wholly-owned subsidiary of SEI Investments Company, acts as the
Trust's Administrator, and is entitled to receive an annual fee of 0.085% of the
Trust's first $5 billion of average daily net assets and 0.045% of the Trust's
average daily net assets over $5 billion. Such fee is computed daily and paid
monthly.
SEI Investments Distribution Co. ("SEI Investments"), a wholly-owned
subsidiary of SEI Investments Company, became the Trust's Distributor pursuant
to a distribution agreement dated June 1, 1993 as amended and restated October
27, 1995. The Trust has adopted a distribution plan with respect to each of the
Stock, Bond and Tax-Exempt Income Funds pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended (collectively, the "Plan"). The
Distribution Agreement and the Plan provide that the Trust will pay the
Distributor a fee, calculated daily and paid monthly, at an annual rate of 0.25%
of the average daily net assets of each of the Bond, Tax-Exempt Income and Stock
Funds. The Distributor agreed to waive all of its 12b-1 distribution fee for the
six month period ended November 30, 1997.
Pursuant to a Shareholder Services Agreement dated December 1, 1996,
BankBoston, N.A. provides certain shareholder services to Boston 1784 U.S.
Treasury Money Market Fund and Boston 1784 Prime Money Market Fund and receives
compensation, computed daily and paid monthly, at an annual rate of 0.10% of the
average daily net assets of each such Fund.
Certain officers of the Trust are also officers of the Administrator. Such
officers are paid no fees by the Trust.
The Trust has paid legal fees to a law firm of which the Secretary of the
Trust is a member.
5. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities,
other than temporary cash investments, for the six month period ended November
30, 1997, are as presented below for the Bond, Tax-Exempt Income and Stock
Funds.
77
<PAGE>
NOVEMBER 30, 1997
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
================================================================================
<TABLE>
<CAPTION>
FUND INVESTMENT TRANSACTIONS (000):
PURCHASES SALES
============================= =============================
U.S. GOVERNMENT U.S. GOVERNMENT
FOR THE PERIOD ENDED NOVEMBER 30, 1997 SECURITIES OTHER SECURITIES OTHER
===============================================================
<S> <C> <C> <C> <C>
BOSTON 1784 SHORT-TERM INCOME FUND $ 11,266 $68,454 $27,944 $54,777
BOSTON 1784 INCOME FUND 45,168 54,262 43,581 45,021
BOSTON 1784 U.S. GOVERNMENT
MEDIUM-TERM INCOME FUND 57,998 5,000 47,568 256
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND -- 52,348 -- 22,240
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND -- 13,571 -- 4,253
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND -- 6,466 -- 1,240
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND -- 22,361 -- 2,686
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND -- 7,538 -- 4,897
BOSTON 1784 ASSET ALLOCATION FUND 673 10,550 3,354 5,679
BOSTON 1784 GROWTH AND INCOME FUND -- 135,253 -- 127,814
BOSTON 1784 GROWTH FUND -- 71,975 -- 66,984
BOSTON 1784 INTERNATIONAL EQUITY FUND -- 304,573 -- 331,790
</TABLE>
78
<PAGE>
BOSTON 1784 FUNDS
================================================================================
At November 30, 1997, the total cost of securities and the net realized gains or
losses on securities sold for federal income tax purposes was not materially
different from amounts reported for financial purposes.
The aggregate gross unrealized gains or losses on securities at November
30, 1997 for the Bond, Tax-Exempt Income and Stock Funds are as follows (000):
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
GAINS LOSSES GAINS/LOSSES
===============================================
<S> <C> <C> <C>
BOSTON 1784 SHORT-TERM INCOME FUND $ 1,192 $ (99) $ 1,093
BOSTON 1784 INCOME FUND 8,474 (1,117) 7,357
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND 3,723 (545) 3,178
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND 13,095 (3) 13,092
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND 5,323 -- 5,323
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND 1,764 (2) 1,762
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND 6,277 (31) 6,246
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND 2,661 -- 2,661
BOSTON 1784 ASSET ALLOCATION FUND 6,062 (212) 5,850
BOSTON 1784 GROWTH AND INCOME FUND 205,058 (11,701) 193,357
BOSTON 1784 GROWTH FUND 80,191 (11,443) 68,747
BOSTON 1784 INTERNATIONAL EQUITY FUND 56,495 (11,428) 45,067
</TABLE>
79
<PAGE>
NOVEMBER 30, 1997
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
================================================================================
6. CONCENTRATION OF CREDIT RISK
Boston 1784 Tax-Free Money Market, Boston 1784 Tax-Exempt Medium-Term Income,
Boston 1784 Connecticut Tax-Exempt Income, Boston 1784 Florida Tax-Exempt
Income, Boston 1784 Massachusetts Tax-Exempt Income and Boston 1784 Rhode Island
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. Boston 1784 Connecticut Tax-Exempt
Income, Boston 1784 Florida Tax-Exempt Income, Boston 1784 Massachusetts
Tax-Exempt Income and Boston 1784 Rhode Island Tax-Exempt Income Funds invest
primarily in obligations located in Connecticut, Florida, Massachusetts and
Rhode Island, respectively.
7. LINE OF CREDIT
The Funds have a bank line of credit, under which borrowings are secured by
investment securities of the borrowing Fund. Borrowings may not exceed 10% of
the Fund's total assets for the Money Market Funds, Boston 1784 U.S. Government
Medium-Term Income, Boston 1784 Tax-Exempt Medium-Term Income, Boston 1784
Massachusetts Tax-Exempt Income, Boston 1784 Asset Allocation, Boston 1784
Growth and Income and Boston 1784 Growth Funds and 15% of the Fund's total
assets for Boston 1784 Short-Term Income, Boston 1784 Income, Boston 1784
Connecticut Tax-Exempt Income, Boston 1784 Rhode Island Tax-Exempt Income and
Boston 1784 International Equity Funds.
Borrowings under the line are charged interest at the current overnight
Federal Funds rate plus a variable rate determined at the date of borrowing.
Each Fund is individually, and not jointly, liable for its particular advances
under the line. There is no commitment fee on the unused portion of the line of
credit. There were no borrowings under the line of credit during the six month
period ended November 30, 1997.
8. REORGANIZATION WITH BAYFUNDS
On July 31, 1996, the Board of Trustees of the Trust and on July 31, 1996 and
August 15, 1996 the Board of Trustees of BayFunds approved an Agreement and Plan
of Reorganization (the "Reorganization Agreement") providing for the transfer of
all assets and liabilities of the portfolios of BayFunds in exchange for the
issuance of shares in certain Funds in tax-free reorganizations (except in the
case of the reorganization of BayFunds U.S. Treasury Money Market Portfolio with
Boston 1784 U.S. Treasury Money Market Fund and Boston 1784 Institutional U.S.
Treasury Money Market Fund which did not qualify for tax-free treatment). At a
special meeting of the shareholders held on November 6, 1996, the shareholders
of BayFunds voted to approve the Reorganization Agreement. Pursuant to the
Reorganization Agreement, on November 25, 1996 substantially all of the assets
and liabilities of BayFunds U.S.
80
<PAGE>
BOSTON 1784 FUNDS
================================================================================
Treasury Money Market Portfolio, BayFunds Equity Portfolio, BayFunds Short Term
Yield Portfolio and BayFunds Bond Portfolio were transferred to corresponding
Boston 1784 Funds in exchange for shares of such Fund. In addition, on December
9, 1996, all assets and liabilities of the BayFunds Money Market Portfolio were
transferred to the newly-organized Boston 1784 Prime Money Market Fund. The
details of these reorganizations as they relate to the Funds are described
below.
The following table summarizes certain relevant information of the Funds
prior to and immediately after the reorganizations on November 25, 1996 and
December 9, 1996.
<TABLE>
<CAPTION>
COMBINED
SHARES NET ASSETS
SHARES NET ASSETS ISSUED IN AFTER
BAYFUNDS AT 11/25/96 AT 11/25/96 BOSTON 1784 FUNDS REORGANIZATION REORGANIZATION
===============================================================================================================================
<S> <C> <C> <C> <C> <C>
U.S. TREASURY MONEY MARKET PORTFOLIO
INSTITUTIONAL SHARES 1,047,875,735 1,047,875,735 INSTITUTIONAL U.S. TREASURY MONEY MARKET 1,047,875,735 2,061,477,418
INVESTMENT SHARES 320,109,970 320,109,970 U.S. TREASURY MONEY MARKET 320,109,970 424,383,927
EQUITY PORTFOLIO
INSTITUTIONAL SHARES 6,084,433 90,308,716 GROWTH 7,697,195 232,770,598
INVESTMENT SHARES 2,652,009 39,367,199 GROWTH 3,355,364 232,770,598
SHORT TERM YIELD PORTFOLIO
INSTITUTIONAL SHARES 3,061,193 28,076,910 SHORT-TERM INCOME 2,783,999 142,633,338
INVESTMENT SHARES 1,694,530 15,543,024 SHORT-TERM INCOME 1,541,097 142,633,338
BOND PORTFOLIO
INSTITUTIONAL SHARES 4,543,688 45,727,982 INCOME 4,474,157 306,880,031
INVESTMENT SHARES 547,758 5,512,661 INCOME 539,376 306,880,031
NAV
PER SHARE
ON DAY OF
BAYFUNDS REORGANIZATION
========================================
<S> <C>
U.S. TREASURY MONEY MARKET PORTFOLIO
INSTITUTIONAL SHARES 1.00
INVESTMENT SHARES 1.00
EQUITY PORTFOLIO
INSTITUTIONAL SHARES 11.73
INVESTMENT SHARES 11.73
SHORT TERM YIELD PORTFOLIO
INSTITUTIONAL SHARES 10.09
INVESTMENT SHARES 10.09
BOND PORTFOLIO
INSTITUTIONAL SHARES 10.22
INVESTMENT SHARES 10.22
</TABLE>
<TABLE>
<CAPTION>
COMBINED NAV
SHARES NET ASSETS PER SHARE
SHARES NET ASSETS ISSUED IN AFTER ON DAY OF
BAYFUNDS AT 12/9/96 AT 12/9/96 BOSTON 1784 FUNDS REORGANIZATION REORGANIZATION REORGANIZATION
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET PORTFOLIO
TRUST SHARES 94,945,689 94,945,452 PRIME MONEY MARKET 94,945,452 139,536,060 1.00
INVESTMENT SHARES 44,590,608 44,590,496 PRIME MONEY MARKET 44,590,608 139,536,060 1.00
</TABLE>
The acquired unrealized appreciation at November 25, 1996 of BayFunds Equity,
Short Term Yield and Bond Portfolios was $43,352,830, $81,551 and $311,988,
respectively.
81
<PAGE>
NOVEMBER 30, 1997
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
================================================================================
9. COMMON TRUST FUND CONVERSION
On June 30, 1997, BankBoston's Florida Tax-Exempt Bond Common Trust Fund was
converted into Boston 1784 Florida Tax-Exempt Income Fund. The assets, which
consisted of securities and related receivables, were converted on a tax-free
basis. The net assets (including unrealized appreciation) of the Common Trust
Fund immediately before the conversion, and the number of shares issued, were as
follows:
BOSTON 1784
FLORIDA TAX-EXEMPT
UNREALIZED INCOME FUND SHARES
NET ASSETS APPRECIATION ISSUED
==================================================
$41,223,322 $994,489 4,122,332
10. FORWARD FOREIGN CURRENCY CONTRACTS
Boston 1784 International Equity and Boston 1784 Income Funds entered into
forward foreign currency exchange contracts as hedges against specific
transactions or portfolio positions. The aggregate principal amounts of the
contracts are not recorded, as the Funds do 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 Funds realize gains and losses at the time the forward contracts
are extinguished. Such contracts, which protect the value of the Fund's
investment securities against a 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. Although such contracts tend to
minimize the risk of loss due to a decline in the value of a hedged currency,
they also tend to limit any potential gain that might be realized should the
value of such foreign currency increase.
82
<PAGE>
BOSTON 1784 FUNDS
================================================================================
The following forward foreign currency contracts were outstanding at
November 30, 1997:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOSTON 1784 INTERNATIONAL EQUITY FUND
FOREIGN CURRENCY SALES:
CONTRACT TO IN EXCHANGE UNREALIZED
MATURITY DELIVER FOR APPRECIATION
DATE (000) (000) (000)
=============================================================================================================
<S> <C> <C> <C> <C> <C>
3/24/98 JPY 6,000,000 $48,288 $396
===========
- -------------------------------------------------------------------------------------------------------------
CURRENCY LEGEND
JPY--Japanese Yen
- -------------------------------------------------------------------------------------------------------------
BOSTON 1784 INCOME FUND
FOREIGN CURRENCY SALES:
CONTRACT TO IN EXCHANGE UNREALIZED
MATURITY DELIVER FOR APPRECIATION
DATE (000) (000) (000)
=============================================================================================================
12/31/97 DKK 41,797 $6,304 $15
===========
- -------------------------------------------------------------------------------------------------------------
<FN>
CURRENCY LEGEND
DKK--Danish Krona
</FN>
</TABLE>
11. SHAREHOLDER VOTING RESULTS
Pursuant to a consent dated June 26, 1997, the sole shareholder of Boston 1784
Florida Tax-Exempt Income Fund approved (i) the Investment Advisory Agreement
between the Trust and BankBoston, N.A. dated June 1, 1993 and the Fee Schedule
to such Agreement with respect to such Fund; (ii) the Administration Agreement
between the Trust and SEI Fund Resources dated December 1, 1996; (iii) the
Distribution Agreement between the Trust and SEI Investments dated June 1, 1993,
amended and restated as of October 27, 1995; and (iv) the appointment of each of
the following persons as a trustee of the Trust to hold office until his or her
successor shall have been duly elected and qualified or until his or her term as
trustee is earlier terminated: David H. Carter, Tarrant Cutler, Kenneth A.
Froot, Sara L. Johnson, Kathryn F. Muncil, Robert A. Nesher, and Alvin J. Silk.
83
<PAGE>
MONEY MARKET FUNDS
[SQUARE BULLET] BOSTON 1784 TAX-FREE MONEY MARKET FUND
[SQUARE BULLET] BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
[SQUARE BULLET] BOSTON 1784 INSTITUTIONAL U.S. TREASURY
MONEY MARKET FUND*
[SQUARE BULLET] BOSTON 1784 PRIME MONEY MARKET FUND
[SQUARE BULLET] BOSTON 1784 INSTITUTIONAL PRIME MONEY
MARKET FUND*
BOND FUNDS
[SQUARE BULLET] BOSTON 1784 SHORT-TERM INCOME FUND
[SQUARE BULLET] BOSTON 1784 INCOME FUND
[SQUARE BULLET] BOSTON 1784 U.S. GOVERNMENT MEDIUM-
TERM INCOME FUND
================================================================================
TAX-EXEMPT INCOME FUNDS
[SQUARE BULLET] BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
[SQUARE BULLET] BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
[SQUARE BULLET] BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
[SQUARE BULLET] BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
[SQUARE BULLET] BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
STOCK FUNDS
[SQUARE BULLET] BOSTON 1784 ASSET ALLOCATION FUND
[SQUARE BULLET] BOSTON 1784 GROWTH AND INCOME FUND
[SQUARE BULLET] BOSTON 1784 GROWTH FUND
[SQUARE BULLET] BOSTON 1784 INTERNATIONAL EQUITY FUND
*COVERED BY BOSTON 1784 INSTITUTIONAL MONEY
MARKET FUNDS SEMI-ANNUAL REPORT
BOSTON
1784
FUNDS
[LOGO OMITTED]
BOSTON 1784 FUNDS
P.O. BOX 8524
BOSTON, MA 02266-8524
1-800-BKB-1784
BOARD OF TRUSTEES
David H. Carter
Tarrant Cutler
Kenneth A. Froot
Sara L. Johnson
Kathryn Flacke Muncil
Robert A. Nesher
Alvin J. Silk
INVESTMENT ADVISER
BankBoston, N.A.
Boston, MA 02110
================================================================================
CO-ADVISER FOR
BOSTON 1784 INTERNATIONAL EQUITY FUND
Kleinwort Benson Investment
Management Americas Inc.
New York, NY 10005
ADMINISTRATOR
SEI Fund Resources
Oaks, PA 19456
DISTRIBUTOR
SEI Investments Distribution Co.
Oaks, PA 19456
LEGAL COUNSEL
Bingham Dana LLP
Boston, MA 02110
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
Philadelphia, PA 19103
CUSTODIAN
BankBoston, N.A.
Boston, MA 02110
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.
MF-0149
<PAGE>
Boston 1784 Institutional Money Market Funds
[BOSTON 1784 FUNDS LOGO OMITTED]
Semi-Annual Report to Shareholders
November 30, 1997
<PAGE>
TABLE OF CONTENTS
================================================================================
LETTER TO SHAREHOLDERS 1
INVESTMENT ADVISER'S REPORT 2
FINANCIAL STATEMENTS 4
- --------------------------------------------------------------------------------
BOSTON 1784 FUNDS:
[SQUARE BULLET] ARE NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY;
[SQUARE BULLET] ARE NOT GUARANTEED BY BANKBOSTON, N.A. OR ANY OF ITS
AFFILIATES;
[SQUARE BULLET] ARE NOT DEPOSITS OR OBLIGATIONS OF BANKBOSTON, N.A. OR ANY
OF ITS AFFILIATES;
[SQUARE BULLET] INVOLVE INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE
PRINCIPAL AMOUNT INVESTED.
BANKBOSTON, N.A. SERVES AS INVESTMENT ADVISER, CUSTODIAN AND SHAREHOLDER
SERVICING AGENT FOR BOSTON 1784 FUNDS. BOSTON 1784 FUNDS ARE DISTRIBUTED BY
SEI INVESTMENTS DISTRIBUTION CO., A PARTY INDEPENDENT OF BANKBOSTON, N.A. OR ANY
OF ITS AFFILIATES. FINANCIAL SERVICES COUNSELORS ARE REGISTERED REPRESENTATIVES
OF BANKBOSTON INVESTOR SERVICES, INC. (MEMBER NASD/SIPC), A WHOLLY-OWNED
SUBSIDIARY OF BANKBOSTON, N.A.
- --------------------------------------------------------------------------------
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
LETTER TO SHAREHOLDERS
================================================================================
[PHOTO OF ALLEN CROESSMANN OMITTED]
ALLEN CROESSMANN
MANAGING DIRECTOR
[PHOTO OF ROBERT NESHER OMITTED]
ROBERT NESHER
PRESIDENT
We are pleased to provide you with this semi-annual report for Boston 1784
Institutional Money Market Funds.
Boston 1784 Institutional U.S. Treasury Money Market Fund extended its record of
strong performance. For the year ended November 30, 1997, the Fund's total
return of 5.27% ranked in the top quartile (28 out of 116 funds) of the Lipper
Institutional U.S. Treasury Money Market Funds. Please keep in mind that past
performance is no guarantee of future results. Total assets of the Fund as of
November 30, 1997 were over $3.3 billion.
During the period, the Fund consistently earned a AAAm rating from Standard &
Poor's. This rating is based on an analysis of the Fund's credit quality, market
price exposure and management. The rating signifies excellent safety of invested
principal and a superior capacity to maintain a $1 per share net asset value at
all times, limiting your exposure to loss. This is accomplished through
conservative investment practices and strict internal controls.
Boston 1784 Institutional Prime Money Market Fund opened on November 5, 1997.
Total assets as of November 30, 1997 were $50.8 million.
As you will read in the Investment Adviser's Report, money market investors may
see yields decline in the coming months as the Federal Reserve Board reacts to a
slowing U.S. economy. While the Funds will strive to maximize the productivity
of your investment, they will not compromise credit standards or stability to do
so.
Thank you for selecting Boston 1784 Funds. Please contact your Investment
Counselor or call 1-800-BKB-1784 with any questions about your account.
Sincerely,
/S/ SIGNATURE
Robert Nesher
President
Boston 1784 Funds
/S/SIGNATURE
Allen Croessmann
Managing Director, Investment Services
BankBoston, N.A.
1
<PAGE>
INVESTMENT ADVISER'S REPORT
================================================================================
[PHOTO OF EDWARD G. RILEY, JR. OMITTED]
EDWARD G. RILEY, JR.
CHIEF INVESTMENT OFFICER
The fundamental strength of the U.S. economy and financial markets have been
dramatically demonstrated over the past few months. The tidal wave of Asian
financial turmoil did spread to Latin America, but thus far only ripples have
reached U.S. shores.
Weakening currency prices and accumulating bad loans have shaken the
financial systems of important Asian countries. In a global economy, these
developments are a source of concern worldwide. Yet their impact in the U.S. and
Europe so far has not been nearly as significant as originally feared. Perhaps
the most important reason is the steady, sustainable performance of the U.S.
economy. Key sectors of the U.S. economy remain strong: auto sales, while not
increasing, have remained firm and the housing sector continues to benefit from
low interest rates. Consumer confidence is at an all time high. The government
deficit is down. Furthermore, our financial system and institutions operate in a
much more open and above-board manner than those in many Asian countries.
Inflation, or the lack thereof, is at the root of U.S. financial health. The
Consumer Price Index hovers in the 2 percent range, while inflation as measured
by the Producer Price Index is virtually zero. Indeed, U.S. consumers and the
economy are even likely to benefit--at least temporarily--from problems in Asia.
At a time when global overcapacity was already increasing price competition,
weakening currencies and deflation in Asia will reduce the price of imports even
further and force U.S. companies to lower their own prices to compete. As a
result, inflation and the demand for credit will remain low.
MONEY MARKET REVIEW
During the six-month period ended November 30, 1997, money market rates have
remained very stable with the Federal Funds rate at 5.50% since March 1997.
With economic growth continuing at a slow and sustainable pace and no signs of
inflation, it is unlikely that the Federal Reserve Board will increase short-
term interest rates soon. Complicating the situation is the likely impact of any
Federal Reserve Board increase on foreign exchange rates. Any increase in the
Federal Funds rate would weaken Asian currencies in comparison to the U.S.
dollar, further destabilizing the situation.
One of the possible results of the Asian crisis may even be a U.S. recession
as imports increase,
2
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
================================================================================
U.S. prices drop and exports to Asian markets decline. The Federal Reserve Board
may actually be forced to reduce rates to avert such a slowdown, reducing the
returns earned by money market investors in 1998.
/S/ SIGNATURE
Edward G.Riley, Jr.
Chief Investment Officer
BankBoston, N.A.
[LINE CHART OMITTED]
FEDERAL FUNDS RATE
NOVEMBER 30, 1994 - NOVEMBER 30, 1997
MONTHS RATE
11/94 5.29
5/95 6.01
11/95 5.80
5/96 5.24
11/96 5.31
5/97 5.50
11/97 5.50
3
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 14.3%
U.S. Treasury Bills (A)
5.130%, 12/11/97 $12,000 $ 11,983
5.729%, 03/05/98 25,000 24,646
5.865%, 05/28/98 42,000 40,849
U.S. Treasury Notes
5.250%, 12/31/97 20,000 19,996
5.000%, 01/31/98 44,650 44,607
5.125%, 04/30/98 25,000 24,954
5.875%, 04/30/98 27,000 27,045
6.125%, 05/15/98 44,000 44,093
6.000%, 05/31/98 44,000 44,093
5.250%, 07/31/98 72,500 72,344
6.250%, 07/31/98 48,250 48,461
6.125%, 08/31/98 83,265 83,586
---------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $486,657) 486,657
---------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 31.3%
Federal Farm Credit Bank
Discount Note (A)
5.689%, 01/23/98 31,040 30,786
Federal Farm Credit Bank MTN
6.250%, 04/28/98 2,000 2,004
Federal Home Loan Bank
5.725%, 02/05/98 8,800 8,803
5.875%, 02/05/98 7,000 7,000
6.020%, 04/15/98 8,500 8,495
6.185%, 04/21/98 13,000 13,001
6.000%, 06/23/98 14,825 14,828
Federal Home Loan Bank (B)
5.493%, 12/02/97 16,800 16,800
5.758%, 12/02/97 10,000 9,996
Federal Home Loan Bank
Discount Note (A)
5.707%, 02/25/98 50,000 49,337
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
Federal Home Loan Mortgage
Corporation Discount
Notes (A)
5.546%, 12/01/97 $34,000 $34,000
5.552%, 12/01/97 44,500 44,500
5.544%, 12/05/97 42,479 42,453
5.549%, 12/05/97 45,000 44,973
5.545%, 12/08/97 43,135 43,090
5.578%, 12/08/97 35,278 35,240
5.587%, 12/11/97 44,500 44,432
5.605%, 12/24/97 15,000 14,947
5.661%, 01/14/98 56,000 55,621
5.675%, 01/23/98 22,500 22,316
Federal National Mortgage
Association
9.550%, 12/10/97 1,000 1,001
5.350%, 08/12/98 2,735 2,727
Federal National Mortgage
Association (B)
5.463%, 12/02/97 6,500 6,491
5.360%, 12/14/98 2,000 1,998
Federal National Mortgage
Association Discount
Notes (A)
5.689%, 12/11/97 17,000 16,974
5.550%, 12/12/97 28,835 28,787
5.592%, 01/15/98 33,000 32,776
5.602%, 01/15/98 15,500 15,394
5.607%, 01/21/98 52,010 51,608
5.626%, 01/21/98 63,000 62,512
5.646%, 01/22/98 44,500 44,147
5.633%, 02/04/98 45,000 44,555
6.070%, 04/23/98 17,000 16,994
Federal National Mortgage
Association MTN
5.350%, 03/10/98 11,000 10,991
5.520%, 04/13/98 5,500 5,497
6.000%, 04/17/98 7,205 7,215
Federal National Mortgage
Association MTN (B)
5.528%, 12/02/97 10,000 9,999
4
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
================================================================================
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)
Student Loan Marketing
Association (B)
5.473%, 12/02/97 $ 7,166 $ 7,164
5.473%, 12/02/97 4,260 4,258
5.473%, 12/02/97 56,210 56,174
5.483%, 12/02/97 58,900 58,861
5.493%, 12/02/97 20,675 20,668
5.528%, 12/02/97 5,000 4,999
5.583%, 12/02/97 2,500 2,500
5.633%, 12/02/97 3,000 3,001
---------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $1,059,913) 1,059,913
---------
REPURCHASE AGREEMENTS -- 49.7%
CS First Boston
5.650%, dated 11/28/97, matures
12/01/97, repurchase price
$140,065,917 (collateralized by
U.S. Treasury Bonds:
total market value
$141,045,877) 140,000 140,000
Goldman Sachs
5.450%, dated 11/28/97, matures
12/01/97, repurchase price
$128,187,107 (collateralized by
U.S. Treasury Instruments:
total market value
$130,682,542) 128,129 128,129
Greenwich Capital
5.710%, dated 11/28/97, matures
12/01/97, repurchase price
$429,721,463 (collateralized by
U.S. Treasury Instruments:
total market value
$438,087,317) 429,517 429,517
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
HSBC Securities
5.680%, dated 11/28/97, matures
12/01/97, repurchase price
$140,066,267 (collateralized
by U.S. Treasury Bonds:
total market value
$142,797,084) $140,000 $ 140,000
J.P. Morgan
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$348,165,010 (collateralized by
U.S. Treasury Instruments:
total market value
$354,960,005) 348,000 348,000
Prudential Securities
5.700%, dated 11/28/97, matures
12/01/97, repurchase price
$498,236,550 (collateralized by
U.S. Treasury Instruments:
total market value
$507,929,968) 498,000 498,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,683,646) 1,683,646
----------
TOTAL INVESTMENTS -- 95.3%
(Cost $3,230,216) 3,230,216
----------
OTHER ASSETS AND LIABILITIES,
NET -- 4.7% 159,037
----------
5
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 3,389,103,328
outstanding shares of beneficial
interest $3,389,103
Distributions in excess of
net investment income (12)
Accumulated net realized gain
on investments 162
----------
TOTAL NET ASSETS -- 100.0% $3,389,253
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
==========
(A) THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE EFFECTIVE YIELD AS
OF NOVEMBER 30, 1997.
(B) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT AS OF NOVEMBER 30, 1997. THE DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
MTN--MEDIUM TERM NOTE.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
6
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
COMMERCIAL PAPER -- 35.3%
ASSET-BACKED -- 9.8%
Ciesco LP (A)
5.744%, 01/12/98 $1,000 $ 993
Corporate Receivable (A)
5.797%, 01/08/98 1,000 994
Delaware Funding (A)
5.806%, 01/23/98 1,000 992
Greenwich Funding (A)
5.850%, 01/20/98 1,000 992
Receivables Capital (A)
5.626%, 12/02/97 1,000 1,000
--------
4,971
--------
BANKS -- 5.9%
Banc One (A)
5.588%, 12/04/97 1,000 1,000
Bank of New York (A)
5.757%, 01/27/98 1,000 991
Credit Suisse First Boston (A)
5.768%, 01/23/98 1,000 992
--------
2,983
--------
FINANCIAL SERVICES -- 15.6%
Alpine Securitization (A)
5.762%, 01/20/98 1,000 992
Barton Capital (A)
5.811%, 01/06/98 1,000 994
Centric Capital (A)
5.645%, 12/10/97 1,000 999
Fleet Funding (A)
5.750%, 01/08/98 1,000 994
General Motors Acceptance (A)
5.766%, 01/07/98 1,000 994
IBM Credit (A)
5.737%, 01/16/98 1,000 993
J.P. Morgan (A)
5.596%, 12/18/97 1,000 997
Merrill Lynch (A)
5.790%, 01/05/98 1,000 994
--------
7,957
--------
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
MUNICIPALS -- 4.0%
Dekalb County, Georgia,
Emory University (A)
5.870%, 02/03/98 $1,000 $ 1,000
New York City, New York,
FGIC (A)
5.850%, 01/05/98 1,035 1,035
--------
2,035
--------
TOTAL COMMERCIAL PAPER
(Cost $17,946) 17,946
--------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 24.3%
Federal Home Loan Mortgage
5.582%, 12/03/97 9,362 9,359
Federal National Mortgage
Association
8.550%, 12/10/97 3,000 3,002
--------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $12,361) 12,361
--------
CORPORATE BONDS -- 4.0%
Ford Motor Credit MTN
9.300%, 02/10/98 1,000 1,006
General Electric Capital,
Series A
7.080%, 03/30/98 1,000 1,004
--------
TOTAL CORPORATE BONDS
(Cost $2,010) 2,010
--------
MUNICIPAL BONDS -- 3.5%
Barton Healthcare (B)
5.700%, 12/03/97 800 800
Catholic Health Initiatives (B)
5.750%, 12/02/97 1,000 1,000
--------
TOTAL MUNICIPAL BONDS
(Cost $1,800) 1,800
--------
7
<PAGE>
AS OF NOVEMBER 30, 1997
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND (CONCLUDED)
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
REPURCHASE AGREEMENTS -- 38.2%
Greenwich Capital
5.710%, dated 11/28/97, matures
12/01/97, repurchase price
$9,390,450 (collateralized by
U.S. Treasury Instruments:
total market value
$9,584,408) $9,386 $ 9,386
J.P. Morgan
5.690%, dated 11/28/97, matures
12/01/97, repurchase price
$5,002,371 (collateralized by
U.S. Treasury Instruments:
total market value
$5,100,000) 5,000 5,000
Prudential Securities
5.700%, dated 11/28/97, matures
12/01/97, repurchase price
$5,002,375 (collateralized by
U.S. Treasury Instruments:
total market value
$5,105,106) 5,000 5,000
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $19,386) 19,386
--------
TOTAL INVESTMENTS -- 105.3%
(Cost $53,503) 53,503
--------
OTHER ASSETS AND LIABILITIES,
NET -- (5.3%) (2,712)
--------
- -------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 50,791,408
outstanding shares of beneficial interest $50,791
--------
TOTAL NET ASSETS-- 100.0% $50,791
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
========
(A) THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE EFFECTIVE YIELD AS
OF NOVEMBER 30, 1997.
(B) VARIABLE RATE SECURITY. THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT AS OF NOVEMBER 30, 1997. THE DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
MTN--MEDIUM TERM NOTE
THE FOLLOWING ORGANIZATION HAS PROVIDED UNDERLYING CREDIT SUPPORT FOR SECURITIES
LISTED ABOVE.
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS (000) (UNAUDITED)
================================================================================
FOR THE PERIOD ENDED NOVEMBER 30, 1997
<TABLE>
<CAPTION>
BOSTON BOSTON
1784 INSTITUTIONAL 1784 INSTITUTIONAL
U.S. TREASURY PRIME MONEY
MONEY MARKET FUND MARKET FUND (1)
================== ===================
<S> <C> <C>
INTEREST INCOME: $82,563 $171
------- ----
EXPENSES:
INVESTMENT ADVISORY FEES 2,969 6
LESS: WAIVER OF INVESTMENT ADVISORY FEES -- (6)
ADMINISTRATOR FEES 1,086 2
REGISTRATION FEES 177 3
TRANSFER AGENT FEES & EXPENSES 169 2
PROFESSIONAL FEES 103 --
PRINTING 98 --
CUSTODIAN FEES 108 1
AMORTIZATION OF DEFERRED ORGANIZATIONAL COSTS 7 1
TRUSTEE FEES 37 --
OTHER EXPENSES 83 --
------- ----
TOTAL EXPENSES, NET OF WAIVERS 4,837 9
------- ----
NET INVESTMENT INCOME 77,726 162
------- ----
NET REALIZED GAIN ON INVESTMENTS 66 --
------- ----
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $77,792 $162
======= ====
<FN>
(1) BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND COMMENCED OPERATIONS ON NOVEMBER 5, 1997.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
9
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000) (UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
BOSTON BOSTON
1784 INSTITUTIONAL 1784 INSTITUTIONAL
U.S. TREASURY PRIME MONEY
MONEY MARKET FUND MARKET FUND
======================= ===================
6/1/97 6/1/96 11/5/97
TO TO TO
11/30/97 5/31/97 11/30/97(1)
---------- --------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITIES:
NET INVESTMENT INCOME $ 77,726 $ 82,775 $ 162
NET REALIZED GAIN (LOSS) ON INVESTMENTS 66 (19) --
---------- ---------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 77,792 82,756 162
---------- ---------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
NET INVESTMENT INCOME (77,736) (82,777) (162)
REALIZED CAPITAL GAINS -- -- --
---------- ---------- -------
TOTAL DISTRIBUTIONS (77,736) (82,777) (162)
---------- ---------- -------
SHARE TRANSACTIONS:
VALUE FROM SHARES ISSUED IN REORGANIZATION (SEE NOTE 6) -- 1,047,876 --
PROCEEDS FROM SHARES ISSUED 6,974,245 5,295,692 134,513
REINVESTMENT OF CASH DISTRIBUTIONS 32,797 40,208 158
COST OF SHARES REDEEMED (6,209,332) (4,437,001) (83,880)
---------- ---------- -------
INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS 797,710 1,946,775 50,791
---------- ---------- -------
TOTAL INCREASE IN NET ASSETS 797,766 1,946,754 50,791
========== ========== =======
NET ASSETS:
BEGINNING OF PERIOD 2,591,487 644,733 --
---------- ---------- -------
NET ASSETS:
END OF PERIOD $3,389,253 $2,591,487 $50,791
========== ========== =======
CAPITAL SHARE TRANSACTIONS:
SHARES ISSUED IN REORGANIZATION (SEE NOTE 6) -- 1,047,876 --
SHARES ISSUED 6,974,245 5,295,692 134,513
SHARES ISSUED IN LIEU OF CASH DISTRIBUTIONS 32,797 40,208 158
SHARES REDEEMED (6,209,332) (4,437,001) (83,880)
---------- ---------- -------
NET INCREASE IN CAPITAL SHARE TRANSACTIONS 797,710 1,946,775 50,791
========== ========== =======
<FN>
(1) BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND COMMENCED OPERATIONS ON NOVEMBER 5, 1997.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS (UNAUDITED)
================================================================================
BOSTON 1784 INSTITUTIONAL MONEY MARKET FUNDS
FOR THE PERIOD ENDED NOVEMBER 30, 1997 AND THE PERIODS ENDED MAY 31.
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
RATIO RATIO OF
NET NET NET RATIO OF EXPENSES NET INCOME
ASSET DISTRIBUTIONS ASSET ASSETS RATIO OF NET TO AVERAGE TO AVERAGE
VALUE NET FROM NET VALUE END OF EXPENSES INCOME NET ASSETS NET ASSETS
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING
OF PERIOD INCOME INCOME OF PERIOD RETURN (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 INSTITUTIONAL
U.S. TREASURY MONEY MARKET FUND
FOR THE PERIOD ENDED
NOVEMBER 30, 1997+ $1.00 0.03 (0.03) $1.00 5.29% $3,389,253 0.32% 5.25% 0.32% 5.25%
FOR THE YEAR ENDED
MAY 31, 1997 $1.00 0.05 (0.05) $1.00 5.16% $2,591,487 0.33% 5.05% 0.34% 5.04%
FOR THE YEAR ENDED
MAY 31, 1996 $1.00 0.05 (0.05) $1.00 5.45% $644,733 0.32% 5.29% 0.39% 5.22%
FOR THE YEAR ENDED
MAY 31, 1995 $1.00 0.05 (0.05) $1.00 5.05% $395,585 0.30% 5.12% 0.41% 5.01%
FOR THE PERIOD ENDED
MAY 31, 1994 (1) $1.00 0.03 (0.03) $1.00 2.99%* $181,568 0.22% 3.16% 0.55% 2.83%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INSTITUTIONAL
PRIME MONEY MARKET FUND
FOR THE PERIOD ENDED
NOVEMBER 30, 1997 (2) $1.00 -- -- $1.00 5.34% $50,791 0.30% 5.36% 0.50% 5.16%
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
+ ALL RATIOS FOR THE SEMI-ANNUAL PERIOD ENDED NOVEMBER 30, 1997 (UNAUDITED)
HAVE BEEN ANNUALIZED.
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(1) BOSTON 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND COMMENCED
OPERATIONS ON JUNE 14, 1993. ALL RATIOS FOR THE PERIOD HAVE BEEN
ANNUALIZED.
(2) BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND COMMENCED OPERATIONS ON
NOVEMBER 5, 1997. ALL RATIOS FOR THE PERIOD, INCLUDING TOTAL RETURN, HAVE
BEEN ANNUALIZED.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
11
<PAGE>
NOVEMBER 30, 1997
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
1. ORGANIZATION
Boston 1784 Institutional U.S. Treasury Money Market Fund and Boston 1784
Institutional Prime Money Market Fund are portfolios of Boston 1784 Funds (the
"Trust"), an open-end investment company registered under the Investment Company
Act of 1940, as amended. The Trust is offering shares in 17 separate portfolios
(the "Funds") as of November 30, 1997:
MONEY MARKET FUNDS:
BOSTON 1784 TAX-FREE MONEY MARKET FUND
BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
BOSTON 1784 INSTITUTIONAL U.S. TREASURY
MONEY MARKET FUND
BOSTON 1784 PRIME MONEY MARKET FUND
BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND
BOND FUNDS:
BOSTON 1784 SHORT-TERM INCOME FUND
BOSTON 1784 INCOME FUND
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM
INCOME FUND
TAX-EXEMPT INCOME FUNDS:
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
STOCK FUNDS:
BOSTON 1784 ASSET ALLOCATION FUND
BOSTON 1784 GROWTH AND INCOME FUND
BOSTON 1784 GROWTH FUND
BOSTON 1784 INTERNATIONAL EQUITY FUND
The Funds' prospectuses provide a description of each Fund's investment
objectives, policies and strategies.
The financial statements of Boston 1784 Institutional U.S. Treasury Money
Market Fund and Boston 1784 Institutional Prime Money Market Fund are included
herein. The financial statements of the other 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. The financial statements have been
prepared in accordance with generally accepted accounting principles which
require the use of estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by Boston
1784 Institutional U.S. Treasury Money Market Fund and Boston 1784 Institutional
Prime Money Market Fund (the "Institutional Funds").
SECURITY VALUATION --
Investment securities of the Institutional 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.
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BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
================================================================================
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 --
The Institutional Funds invest in tri-party repurchase agreements. Securities
pledged as collateral for tri-party repurchase agreements are maintained in a
segregated account by the broker's custodian bank until maturity of the
repurchase agreements. Provisions of the repurchase agreements and procedures
adopted by the Adviser are intended to ensure that the market value of the
collateral, including accrued interest thereon, is sufficient in the event of
default by the counterparty. If the counter-party defaults and the value of the
collateral declines or if the counterparty enters into insolvency proceedings,
realization on the collateral by the Institutional Funds may be delayed or
limited.
EXPENSES --
Expenses that are directly related to the Funds are charged directly to the
Funds. 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 Institutional Funds are distributed
to its shareholders at least annually.
FEDERAL INCOME TAXES --
The Trust's policy is to comply with the require-ments 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. At November 30, 1997, the total
cost of securities for federal income tax purposes was not materially different
from amounts reported for financial reporting purposes.
ORGANIZATIONAL COSTS --
These costs have been deferred in the account of the Institutional Funds 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 Institutional Funds are redeemed by any holder thereof prior to
the end of the amortization period, the proceeds will be reduced by the
unamortized organizational cost balance in the same proportion as the number of
shares redeemed bears to the initial shares outstanding immediately preceding
the redemption.
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NOVEMBER 30, 1997
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
================================================================================
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 BankBoston, N.A. (the "Adviser").
The Adviser is entitled to receive an annual fee of 0.20% of the average daily
net assets for each of the Institutional Funds. Such fee is computed daily and
paid monthly. BankBoston, N.A. has agreed to waive a portion of its investment
advisory fee in order to maintain competitive expense ratios.
The Institutional Funds and BankBoston, N.A. (the "Custodian") are parties
to a custodial agreement dated June 1, 1993 under which the Custodian holds
cash, securities and other assets of the Institutional Funds as required by the
Investment Company Act of 1940, as amended. The Custodian is entitled to receive
an annual fee, to be paid monthly, of 0.01% for the first $100 million in
average daily net assets, 0.0075% for the next $100 million and 0.005% of the
average daily net assets over $200 million of each of the Institutional Funds.
In its capacity as custodian to the Institutional Funds, the Custodian plays no
role in determining the investment policies of the Institutional Funds or which
securities are to be purchased or sold by the Institutional Funds.
4. ADMINISTRATIVE AND DISTRIBUTION SERVICES
Pursuant to an administration agreement dated December 1, 1996, SEI Fund
Resources, a wholly-owned subsidiary of SEI Investments Company, acts as the
Trust's Administrator, and is entitled to receive an annual fee of 0.085% of
the Trust's first $5 billion of average daily net assets and 0.045% of the
Trust's average daily net assets over $5 billion. Such fee is computed daily
and paid monthly.
SEI Investments Distribution Co. ("SEI Investments"), a wholly-owned
subsidiary of SEI Investments Company, acts as the Institutional Funds'
Distributor pursuant to a distribution agreement dated June 1, 1993, as amended
and restated October 27, 1995. SEI Investments is paid no fees by the
Institutional Funds.
Certain officers of the Trust are also officers of the Administrator. Such
officers are paid no fees by the Trust.
The Trust has paid legal fees to a law firm, of which the Secretary of the
Trust is a member.
5. LINE OF CREDIT
The Institutional Funds have a bank line of credit, under which borrowings are
secured by investment securities of the Institutional Funds. Borrowings may not
exceed 10% of the Institutional Funds' total assets. Borrowings under the line
are charged interest at the current overnight Federal Funds rate plus a variable
rate determined at the date of borrowing. There is no commitment fee on the
unused portion of the line of credit. There were no borrowings under the line of
credit during the period ended November 30, 1997.
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BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
================================================================================
6. REORGANIZATION WITH BAYFUNDS
On July 31, 1996, the Board of Trustees of the Trust and on July 31, 1996 and
August 15, 1996 the Board of Trustees of BayFunds approved an Agreement and Plan
of Reorganization (the "Reorganization Agreement") providing for the transfer of
all assets and liabilities of the portfolios of BayFunds in exchange for the
issuance of shares in certain Funds in tax-free reorganizations (except in the
case of the Reorganization of BayFunds U.S. Treasury Money Market Portfolio with
Boston 1784 U.S. Treasury Money Market Fund and Boston 1784 Institutional U.S.
Treasury Money Market Fund, which did not qualify for tax-free treatment). At a
special meeting of the shareholders held on November 6, 1996, the shareholders
of BayFunds voted to approve the Reorganization Agreement. Pursuant to the
Reorganization Agreement, on November 25, 1996 substantially all of the assets
and liabilities attributable to the Institutional Shares of BayFunds U.S.
Treasury Money Market Portfolio were transferred to the Fund in exchange for
shares of Boston 1784 Institutional U.S. Treasury Money Market Fund.
<TABLE>
<CAPTION>
SHARES NET ASSETS BOSTON
BAYFUNDS AT 11/25/96 AT 11/25/96 1784 FUND
==============================================================================================
<S> <C> <C> <C>
U.S. TREASURY MONEY
MARKET PORTFOLIO
INSTITUTIONAL
SHARES 1,047,875,735 1,047,875,735 INSTITUTIONAL U.S. TREASURY MONEY MARKET
COMBINED NAV
SHARES NET ASSETS PER SHARE
ISSUED IN AFTER ON DAY OF
BAYFUNDS REORGANIZATION REORGANIZATION REORGANIZATION
====================================================================
<S> <C> <C> <C>
U.S. TREASURY MONEY
MARKET PORTFOLIO
INSTITUTIONAL
SHARES 1,047,875,735 2,061,477,418 1.00
</TABLE>
15
<PAGE>
NOVEMBER 30, 1997
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
================================================================================
7. SHAREHOLDER VOTING RESULTS
Pursuant to a consent dated November 5, 1997, the sole shareholder of Boston
1784 Institutional Prime Money Market Fund approved (i) the Investment Advisory
Agreement between the Trust and BankBoston, N.A. dated June 1, 1993 and the Fee
Schedule to such Agreement with respect to such Fund; (ii) the Administration
Agreement between the Trust and SEI Fund Resources dated December 1, 1996; (iii)
the Distribution Agreement between the Trust and SEI Investments dated June 1,
1993, amended and restated as of October 27, 1995; and (iv) the appointment of
each of the following persons as a trustee of the Trust to hold office until his
or her successor shall have been duly elected and qualified or until his or her
term as trustee is earlier terminated: David H. Carter, Tarrant Cutler, Kenneth
A. Froot, Sara L. Johnson, Kathryn F. Muncil, Robert A. Nesher and Alvin J.
Silk.
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BOARD OF TRUSTEES
David H. Carter
Tarrant Cutler
Kenneth A. Froot
Sara L. Johnson
Kathryn Flacke Muncil
Robert A. Nesher
Alvin J. Silk
INVESTMENT ADVISER
BankBoston, N.A.
Boston, MA 02110
ADMINISTRATOR
SEI Fund Resources
Oaks, PA 19456
DISTRIBUTOR
SEI Investments Distribution Co.
Oaks, PA 19456
LEGAL COUNSEL
Bingham Dana LLP
Boston, MA 02110
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
Philadelphia, PA 19103
CUSTODIAN
BankBoston, N.A.
Boston, MA 02110
[BOSTON 1784 FUNDS LOGO OMITTED]
BOSTON 1784 FUNDS
P.O. BOX 8524
BOSTON, MA 02266-8524
1-800-BKB-1784
This report and the financial statements contained herein are for the general
information of the shareholders of Boston 1784 Institutional U.S. Treasury
Money Market Fund and Boston 1784 Institutional Prime Money Market Fund. This
report is not authorized for distribution to prospective investors in a fund
unless preceded or accompanied by a currently effective prospectus.
MF-0151
