Boston 1784 Institutional
Money Market Funds
[LOGO]
Annual Report to Shareholders
May 31, 1999
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TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS 1
INVESTMENT ADVISER'S REPORT 2
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE 5
FINANCIAL STATEMENTS 7
REPORT OF INDEPENDENT ACCOUNTANTS 19
NOTICE TO SHAREHOLDERS 20
BOSTON 1784 FUNDS:
[ ] ARE NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY;
[ ] ARE NOT GUARANTEED BY BANKBOSTON N.A. OR ANY OF ITS AFFILIATES;
[ ] ARE NOT DEPOSITS OR OBLIGATIONS OF BANKBOSTON, N.A. OR ANY
OF ITS AFFILIATES;
[ ] INVOLVE INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL
AMOUNT INVESTED.
BANKBOSTON, N.A. SERVES AS INVESTMENT ADVISER 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. AND ITS AFFILIATES. INVESTMENT COUNSELORS
ARE REGISTERED REPRESENTATIVES OF BANKBOSTON INVESTOR SERVICES, INC.
(MEMBER NASD/SIPC), A WHOLLY-OWNED SUBSIDIARY OF BANKBOSTON, N.A.
AN INVESTMENT IN A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
ALTHOUGH MONEY MARKET FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT
AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN A MONEY
MARKET FUND.
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BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
LETTER TO SHAREHOLDERS
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[PHOTO] [PHOTO]
Catherine N. Thornton Robert Nesher
Managing Director Presidnet
It is a pleasure to provide this Annual Report on the strategies and performance
of the Boston 1784 Money Market Funds specifically designed for institutional
investors:
[ ] BOSTON 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND --
The Fund's total return for the year ended May 31, 1999 was
4.90%, which ranked in the top 20% (23 of 118) of funds in the
Lipper Institutional U.S. Treasury Money Market Average. Also
of significance, the Fund maintained its "AAAm" rating from
Standard and Poor's. The rating is based on the Fund's credit
quality, market price exposure and management. The Fund's
total net assets grew from $4.29 billion on May 31, 1998 to
$4.35 billion as of May 31, 1999.
[ ] BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND -- For the year ended May
31, 1999, the Fund generated a total return of 5.10%. Net assets increased
70% from $302.3 million on May 31, 1998 to $516.9 million on May 31, 1999.
Please remember that a Fund's performance in the past is not necessarily an
indication of how a Fund will do in the future.
You'll find more complete information on both Boston 1784 Institutional U.S.
Treasury Money Market Fund and Boston 1784 Institutional Prime Money Market Fund
in this report.
We would also like to call your attention to several changes that may occur in
the coming months. On March 14, 1999, BankBoston Corporation and Fleet Financial
Group, Inc. entered into an Agreement and Plan of Merger, under which the two
institutions will merge to form a new entity - Fleet Boston. BankBoston
Corporation is the parent company of BankBoston, N.A., the investment adviser or
co-investment adviser of Boston 1784 Funds. The proposed merger is subject to
regulatory and shareholder approval and other conditions, and is expected to be
effective in the last quarter of 1999. If the merger occurs, BankBoston, N.A.
will become a subsidiary of the merged company.
If you have questions about your account, please contact your Investment
Counselor or call 1-800-BKB-1784, Monday through Friday from 8 a.m. to 6 p.m.
(Eastern time).
Thank you for selecting Boston 1784 Funds to manage your cash reserves.
Sincerely,
/s/ Robert Nesher /s/ Catherine N. Thornton
----------------------- -------------------------
Robert Nesher Catherine N. Thornton
President Managing Director,
Boston 1784 Funds Investment Services
BankBoston, N.A.
1
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INVESTMENT ADVISER'S REPORT
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[PHOTO OMITTED]
Edward G. Riley, Jr.
Chief Investment Officer
When investment advisers and fund managers discuss volatility, they
typically focus on the financial/statistical variety--the kind that can be
measured by numbers like "beta" and "standard deviation." The past year
certainly had its share of that sort of volatility, but it exhibited other
varieties as well, as the pendulum swung rapidly from deflation fears to
inflation scares, crashing foreign markets to recovering Asian economies, growth
stocks leadership to emerging cyclical strength...the list goes on and on. In
short, it was one of the most volatile years of the by-now-elderly economic
expansion that has held sway for 8 years.
Certainly, the U.S. economy continued to expand, growing at remarkable 4%,
6% and 4.3% rates for the quarters ending September 1998, December 1998 and
March 1999, respectively. Economic momentum was sustained in the beginning of
1999 by a combination of factors: tax refunds and year-end bonuses fueled
spending; low unemployment and rising incomes, which grew faster than inflation,
supported high levels of consumer confidence. And the "Wealth Effect"--the
result of the unprecedented bull market and widespread 401(k) investing in the
stock market--was good for spending and confidence alike.
The "Wealth Effect" is perhaps the most significant variable in any
economic or investing forecast. Surging equity values have pushed stock market
wealth up $4 trillion in the past two years (from $7 trillion to $11 trillion).
Home equity (market price minus mortgage owed) has added another $1 trillion of
perceived wealth, rising from $5 trillion to $6 trillion in the past three
years. With more households now owning equities than ever before (50% today vs.
32% a decade ago), a market correction will affect many more investors. Will new
investors remain patient or will they sell en masse? Complicating matters
further, investor expectations seem to have been ratcheted up to unrealistic
levels by returns that have averaged about 30% over the last four years and
18.6% over the last 18 years--compared with about 10% for the past century.
Surveys show that investors expect annual equity returns in the 15% to 35%
range. What would a year of negative returns, no matter how slight, hold for the
economy?
So the fact that we remain immersed in the longest peacetime recovery on
record is both good news and bad news. At this point, after eight years without
a recession, reversion to the mean--whether in the economy or the markets--may
prove very mean indeed.
To be sure, cyclical pressures are building, which forced the Federal
Reserve Board to raise short-term interest rates by .25% in June 1999. But our
long-term view of interest rates remains intact. We see secular disinflation
dominating over the long term for several reasons:
2
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BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
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[ ] Unit labor costs are declining--good news since 65% of the operating
costs for most companies is labor.
[ ] The continued focus on productivity, advances in technology and the
determination to enhance shareholder value align management efforts
with inflation containment.
[ ] Global overcapacity in industries ranging from autos to chemicals
should keep deflationary pressures dominant.
[ ] The Internet will force competitive pricing across virtually all goods
and services.
[ ] The Federal Reserve Board's vigilant monetary policy--and the readiness
of the "Bond Vigilantes" to bid up interest rates at the first whiff of
inflation--should mitigate any dangerous inflationary tendencies.
Despite the roller coaster ride in between, the 30-year U.S. Treasury rate
is about where it was twelve months ago: within a few basis points of 6.00%.
That's a far cry, however, from the 4.75% rate last fall. In the preceding weeks
and months, the Russian default, troubled Latin American markets, and the
near-failure of a major hedge fund operator thoroughly unsettled the market, and
a flight to quality dramatically increased demand and bond prices (which move in
the opposite direction from interest rates).
With the financial markets extremely skittish in the fall, the Federal
Reserve Board reduced short-term interest rates from 5.50% to 4.75% to provide
liquidity. That stimulus--along with nearly 150 other central bank easings
around the world during the past twelve months--had the desired affect of
sustaining and accelerating widespread economic growth.
Although we foresee little inflationary threat in the immediate future, the
Federal Reserve Board raised interest rates in June 1999 as concerns about
inflationary pressures and an overheated economy mounted. Despite the recent
intervention by the Federal Reserve Board, we expect rates to actually drift
lower in yield over the coming year, and the 30-year U.S. Treasury Bond to yield
between 5.00% and 5.75% by the end of 1999. Indeed, a number of other factors
also argue for lower rates over the next six to twelve months--despite the
current disquiet:
[ ] U.S. economic growth is likely to slow during the summer and fall.
[ ] Any inflationary spurt should prove short-lived, as secular
deflationary forces take hold (i.e. global overcapacity, declining
crude oil prices, labor insecurity sparked by merger-related layoffs,
and additional financial meltdowns in foreign countries).
[ ] As long-term rates rise, some of the $1.7 trillion currently resting in
money market funds will move into bonds, moderating rate increases.
3
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[ ] Cash flows into bond mutual funds remain strong--about $7 billion to $8
billion per month.
[ ] Asset allocation strategies are likely to focus more on bonds as stock
market volatility increases and small- and mid-cap investors move into
a (theoretically) more predictable asset class.
[ ] Healthy tax receipts will eliminate the need for government borrowing,
and $100 billion in debt retirement will reduce supply and increase
prices and therefore decrease rates.
With signs of inflation on the horizon, the Federal Reserve Board
intervened recently to raise interest rates and slow the economy. We believe
such higher rates will be a short-lived phenomenon and will likely be reduced by
subsequent Federal Reserve Board action late in 1999 or early the next year. As
a result, money market investors may experience flat or weaker returns.
/s/ Edward G. Riley, Jr.
- -----------------------------
Edward G.Riley, Jr.
Chief Investment Officer
BankBoston, N.A.
[GRAPHIC OMITTED]
In the printed version of the document, a line graph
appears which depicts the following plot points:
Federal Funds Rate
May 1996 - May 1999
May-96 Nov-96 May-97 Nov-97 May-98 Nov-98 May-99
5.24 5.31 5.50 5.50 5.50 4.75 4.75
4
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BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
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BOSTON 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
Objective: To preserve the principal value of a shareholder's investment and to
maintain a high degree of liquidity while providing current income.
Boston 1784 U.S. Treasury Money Market Fund invests primarily in U.S. government
agency securities, U.S. Treasury obligations and repurchase agreements fully
collateralized by U.S. Treasury obligations. The Fund's net assets grew from
$4.29 billion on May 31, 1998 to $4.35 billion on May 31, 1999.
For the year ended May 31, 1999, the Fund had a total return of 4.90%,
compared with returns of 4.79% for the IBC/Financial Data Government-Only
Institutional-Only Average and 4.68% for the Lipper Institutional U.S. Treasury
Money Market Average. The Fund ranked in the top 20% (23 of 118) of the Lipper
Institutional U.S. Treasury Money Market Average. The 7-day yield as of May 31,
1999 was 4.50%.
The Fund is rated AAAm by Standard and Poor's. The rating is based on an
analysis of the Fund's credit quality, market price exposure and management. The
rating signifies that, in the opinion of Standard and Poor's, the Fund offers
excellent safety of investment principal and superior capacity to maintain a
$1.00 per share net asset value at all times. The Fund attempts to maintain
these characteristics through conservative investment practices and strict
internal controls. The Fund is reviewed on a weekly basis by Standard and
Poor's.
During the year ended May 31, 1999, the Fund's investments were
concentrated in longer-maturity U.S. Treasury securities and shorter-maturity
U.S. government agency securities and repurchase agreements. The actions of the
Federal Reserve Board, which lowered the Federal Funds rate three times in the
second half of 1998 from 5.50% to 4.75%, did not favor money market investors
during the Fund's fiscal year. However, the Fund maintained an average maturity
of 35 to 45 days, which positively affected the Fund's performance during a
period of declining interest rates.
In response to concerns about inflation, the Federal Reserve Board raised
short-term interest rates by .25% in June 1999. This recent move will benefit
money market investors for a period of time.
BOSTON 1784 INSTITUTIONAL U.S. TREASURY
MONEY MARKET FUND
Comparison of Change in the Value of a $10,000 Investment
in Boston 1784 Institutional U.S. Treasury Money Market Fund, versus
the IBC/Financial Data Government-Only Institutional-Only Average
and the Lipper Institutional U.S. Treasury Money Market Average
[GRAPHIC OMITTED]
In the printed version of the document, a line graph
appears which depicts the following plot points:
One Year Return 4.90%
Annualized 3 Year Return 5.14%
Annualized 5 Year Return 5.19%
Annualized Inception to Date* 4.84%
BOSTON 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND $13,243
IBC/FINANCIAL DATA GOVERNMENT-ONLY INSTITUTIONAL-ONLY AVERAGE $13,170
LIPPER INSTITUTIONAL U.S. TREASURY MONEY MARKET AVERAGE $13,113
Past performance of the Fund is not predictive of finance performance
* Inception date 6/14/93
5
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BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND
Objective: To preserve the principal value of a shareholder's investment and to
maintain a high degree of liquidity while providing current income.
Boston 1784 Prime Money Market Fund invests primarily in high quality money
market instruments, including short-term U.S. government obligations, corporate
bonds, bank obligations (including certificates of deposit, bankers' acceptances
and fixed time obligations), commercial paper, variable rate demand notes,
taxable municipal securities and repurchase agreements. During the past year,
the Fund's net assets grew from $302.3 million on May 31, 1998 to $516.9 million
on May 31, 1999.
For the twelve months ended May 31, 1999, the Fund had a total return of
5.10%, compared with returns of 5.04% for the IBC/Financial Data First Tier
Institutional Only Average and 5.03% for the Lipper Institutional Money Market
Funds Average for the same period. The 7-day yield as of May 31, 1999 was 4.65%.
The Fund's return reflects a waiver of certain management fees and expenses (see
Financial Highlights).
During the year ended May 31, 1999, nearly 20% of the Fund's portfolio
consisted of asset-backed commercial paper, which offers higher yields than
other commercial paper and positively impacted the Fund's performance. In
addition, the Fund maintained an average maturity of 45-55 days during the same
period, which also favorably impacted the Fund's performance.
Concerns about inflationary pressures forced the Federal Reserve Board to
tighten monetary policy and raise short-term interest rates by .25% in June
1999. This recent Federal Reserve Board intervention will favor money market
investors for a period of time.
BOSTON 1784 INSTITUTIONAL
PRIME MONEY MARKET FUND
Comparison of Change in the Value of a $10,000 Investment
in Boston 1784 Institutional Prime Money Market Fund, versus
the IBC/Financial Data Government-Only Institutional-Only Average
and the Lipper Institutional U.S. Treasury Money Market Average
[GRAPHIC OMITTED]
In the printed version of the document, a line graph
appears which depicts the following plot points:
One Year Return 5.10%
Annualized Inception to Date* 5.25%
BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND $10,795
IBC/FINANCIAL DATA GOVERNMENT-ONLY INSTITUTIONAL-ONLY AVERAGE $10,787
LIPPER INSTITUTIONAL U.S. TREASURY MONEY MARKET AVERAGE $10,782
Past performance of the Fund is not predictive of finance performance
* Inception date 11/5/97
6
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BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
AS OF MAY 31, 1999
STATEMENT OF NET ASSETS
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Boston 1784 Institutional U.S. Treasury Money Market Fund
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Description Par (000) Value (000)
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U.S. Government Agency Obligations -- 34.0%
Fannie Mae MTN
6.450%, 07/01/99 $ 15,000 $ 15,016
Federal Agricultural Mortgage
Corporation (A)
4.760%, 06/21/99 40,000 39,895
Federal Farm Credit Bank
MTN (B)
5.121%, 06/01/99 45,000 44,984
Federal Home Loan Bank
5.630%, 06/15/99 22,000 22,007
5.070%, 10/08/99 7,110 7,110
5.030%, 10/29/99 25,000 25,000
5.000%, 12/29/99 30,425 30,424
4.910%, 02/09/00 25,000 25,000
5.100%, 03/09/00 23,920 23,917
5.115%, 03/17/00 3,000 3,000
5.040%, 03/29/00 23,990 23,980
5.020%, 05/12/00 28,190 28,169
Federal Home Loan Bank (B)
5.161%, 06/01/99 45,000 45,000
4.721%, 06/08/99 45,000 44,994
Federal Home Loan Mortgage
Corporation (A)
4.716%, 06/02/99 7,568 7,567
4.799%, 06/04/99 50,000 49,980
4.773%, 06/07/99 31,558 31,533
4.773%, 06/08/99 12,500 12,488
4.747%, 06/10/99 10,186 10,174
4.737%, 06/10/99 45,000 44,947
4.729%, 06/11/99 30,000 29,961
4.763%, 06/16/99 25,000 24,951
4.753%, 06/18/99 30,000 29,933
4.796%, 06/18/99 30,000 29,933
4.744%, 06/21/99 30,000 29,921
4.795%, 06/23/99 30,000 29,914
4.795%, 06/24/99 30,000 29,910
4.800%, 06/25/99 40,000 39,874
4.810%, 06/25/99 15,000 14,953
4.815%, 06/28/99 50,000 49,822
4.830%, 06/29/99 11,522 11,479
4.754%, 07/23/99 30,000 29,796
4.840%, 08/06/99 50,000 49,565
4.797%, 08/20/99 40,000 39,581
4.827%, 09/08/99 50,000 49,350
4.849%, 09/09/99 20,000 19,737
4.856%, 09/24/99 45,000 44,319
Federal National Mortgage
Association
5.050%, 05/12/00 20,000 19,983
Federal National Mortgage
Association (A)
4.721%, 06/11/99 20,000 19,974
4.811%, 06/14/99 32,360 32,304
4.756%, 06/15/99 22,650 22,608
4.830%, 06/17/99 50,000 49,894
4.742%, 06/18/99 20,000 19,955
4.797%, 06/23/99 30,000 29,912
4.755%, 07/22/99 47,373 47,057
4.846%, 09/22/99 70,000 68,961
Student Loan Marketing
Association (B)
5.101%, 06/01/99 77,470 77,439
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Total U.S. Government
Agency Obligations
(Cost $1,476,271) 1,476,271
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U.S. Treasury Obligations -- 17.4%
U.S. Treasury Bills (A)
4.774%, 06/15/99 135,000 134,750
4.390%, 07/22/99 45,000 44,720
4.481%, 08/05/99 45,000 44,644
4.544%, 08/19/99 45,000 44,557
4.566%, 10/28/99 45,000 44,168
4.681%, 11/04/99 50,000 49,008
U.S. Treasury Notes
6.000%, 06/30/99 45,000 45,054
5.875%, 07/31/99 45,000 45,065
5.875%, 08/31/99 45,000 45,140
6.875%, 08/31/99 30,000 30,155
5.750%, 09/30/99 50,000 50,182
7.125%, 09/30/99 45,000 45,368
5.625%, 11/30/99 47,500 47,696
5.375%, 01/31/00 22,500 22,593
5.500%, 03/31/00 61,000 61,346
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Total U.S. Treasury Obligations
(Cost $754,446) 754,446
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7
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AS OF MAY 31, 1999
STATEMENT OF NET ASSETS
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Description Par (000) Value (000)
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Repurchase Agreements -- 51.7%
Dean Witter
4.790%, dated 05/28/99,
matures 06/01/99,
repurchase price $355,188,939
(collateralized by U.S. Treasury
Instruments: total market
value $362,100,358) (C) 355,000 355,000
First Boston
4.750%, dated 05/28/99,
matures 06/01/99,
repurchase price $185,097,639
(collateralized by U.S. Treasury
Bonds: total market value
$188,699,705) (C) 185,000 185,000
Greenwich Capital
4.800%, dated 05/28/99,
matures 06/01/99, repurchase
price $410,218,667
(collateralized by U.S. Treasury
Instruments: total market value
$418,200,364) (C) 410,000 410,000
J.P. Morgan
4.810%, dated 05/28/99,
matures 06/01/99, repurchase
price $569,650,554
(collateralized by U.S. Treasury
Instruments: total market value
$580,733,827) (C) 569,346 569,346
Prudential Securities
4.800%, dated 5/28/99, matures
06/01/99, repurchase price
$730,389,333 (collateralized
by U.S. Treasury Instruments:
total market value
$744,569,899) (C) 730,000 730,000
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Total Repurchase Agreements
(Cost $2,249,346) 2,249,346
----------
Total Investments -- 103.1%
(Cost $4,480,063) 4,480,063
----------
Other Assets and Liabilities,
Net -- (3.1%) (134,026)
----------
Net Assets:
Capital Shares (unlimited
authorization -- no par value)
based on 4,345,797,418
outstanding shares of beneficial interest $4,345,797
Undistributed net investment income 192
Accumulated net realized gain
on investments 48
----------
Total Net Assets -- 100.0% $4,346,037
==========
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 May 31, 1999.
(B) Variable Rate Security. The rate reported on the Statement of Net Assets is
the rate in effect on May 31, 1999. The date shown is the next scheduled
reset date.
(C) Tri-Party Repurchase Agreement
MTN -- Medium Term Note
The accompanying notes are an integral part of the financial statements.
8
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BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
AS OF MAY 31, 1999
STATEMENT OF NET ASSETS
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Boston 1784 Institutional Prime Money Market Fund
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Description Par (000) Value (000)
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Commercial Paper -- 57.6%
Automotive -- 2.9%
Daimler Chrysler (A)
4.880%, 06/11/99 $10,000 $ 9,987
4.853%, 07/26/99 4,930 4,894
--------
14,881
--------
Banks -- 1.9%
Bank of America (A)
4.921%, 10/14/99 10,000 9,820
--------
Computers & Services -- 1.8%
IBM (A)
4.846%, 06/28/99 9,500 9,466
--------
Containers & Packaging -- 1.9%
Alcoa Aluminum (A)
4.799%, 06/24/99 10,000 9,970
--------
Financial Services -- 21.4%
Alpine Securitization (A)
4.847%, 06/08/99 8,000 7,992
4.936%, 08/10/99 8,563 8,482
Caterpillar (A)
4.829%, 06/30/99 10,000 9,961
4.843%, 08/04/99 4,375 4,338
CIT Group (A)
4.903%, 06/01/99 15,000 15,000
Fountain Square Funding (A)
4.888%, 07/27/99 2,546 2,527
4.949%, 10/25/99 2,051 2,011
General Electric Capital (A)
4.865%, 06/11/99 5,400 5,393
4.869%, 07/28/99 10,700 10,618
J.P. Morgan (A)
4.940%, 06/07/99 8,000 7,994
4.905%, 07/15/99 5,000 4,971
Old Line Funding (A)
4.856%, 06/04/99 10,000 9,996
4.846%, 06/17/99 6,312 6,298
Prudential Funding (A)
4.810%, 06/04/99 10,000 9,996
Sigma Financial (A)
4.893%, 08/19/99 5,000 4,947
--------
110,524
--------
Food, Beverage & Tobacco -- 2.0%
Anheuser Busch (A)
4.903%, 06/01/99 10,000 10,000
--------
Mortgage Related -- 13.0%
Barton Capital (A)
4.845%, 06/07/99 4,160 4,157
4.921%, 07/19/99 8,000 7,948
5.032%, 11/30/99 5,000 4,877
Concord Minuteman Capital (A)
4.849%, 06/10/99 10,000 9,988
4.927%, 06/18/99 5,224 5,212
4.939%, 07/19/99 5,000 4,968
Lexington Parker (A)
4.869%, 07/20/99 10,000 9,934
4.932%, 10/07/99 10,000 9,829
Wood Street Funding (A)
4.860%, 06/04/99 10,217 10,213
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67,126
--------
Petroleum Refining -- 3.9%
BP America (A)
4.923%, 06/01/99 20,000 20,000
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Taxable Municipals -- 4.3%
Dekalb County, Georgia,
Emory University
4.950%, 06/03/99 5,140 5,140
4.850%, 06/09/99 3,400 3,400
New York City, New York
4.900%, 06/03/99 2,500 2,500
4.950%, 06/03/99 2,800 2,800
4.850%, 06/09/99 3,335 3,335
4.900%, 07/22/99 3,150 3,150
New York City, New York, FGIC
4.800%, 06/10/99 2,100 2,100
--------
22,425
--------
Telephones & Telecommunications -- 1.9%
AT&T (A)
4.772%, 06/08/99 10,000 9,991
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9
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AS OF MAY 31, 1999
STATEMENT OF NET ASSETS
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Description Par (000) Value (000)
- --------------------------------------------------------------------------------
Utilities -- 2.6%
Lower Colorado River Authority (A)
4.900%, 06/02/99 $ 9,900 $ 9,900
4.950%, 06/03/99 3,500 3,500
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13,400
--------
Total Commercial Paper
(Cost $297,603) 297,603
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Corporate Bonds -- 12.5%
Advocare (B)
4.920%, 06/02/99 4,250 4,250
American General
6.875%, 07/01/99 6,000 6,009
Associates Corporation, MTN
7.820%, 10/21/99 3,000 3,032
AVCO Financial Services
7.250%, 07/15/99 4,400 4,411
Bear Stearns
7.625%, 09/15/99 1,075 1,081
Bowie Assisted Living,
Series 1997, LOC (B) (C)
5.350%, 06/02/99 6,700 6,700
Chase Manhattan Bank
5.875%, 08/04/99 3,440 3,442
7.750%, 11/01/99 8,800 8,901
Chrysler Financial, MTN
6.160%, 07/28/99 4,385 4,392
CIT Group, MTN
6.800%, 04/17/00 4,670 4,728
General Electric Capital
5.040%, 01/18/00 2,000 2,001
General Motors Acceptance
8.400%, 10/15/99 1,200 1,214
General Motors Acceptance, MTN
6.700%, 04/17/00 4,000 4,052
Norwest Financial
7.625%, 10/15/99 1,000 1,009
6.000%, 03/15/00 3,000 3,018
Service Graphics (B)
4.950%, 06/02/99 2,000 2,000
Uno, LOC (B)
4.950%, 06/02/99 2,900 2,900
Wachovia
7.000%, 12/15/99 1,618 1,633
--------
Total Corporate Bonds
(Cost $64,773) 64,773
--------
Taxable Municipal Bonds -- 7.1%
Barton Healthcare (B)
4.950%, 06/02/99 600 600
Catholic Health Initiatives (B)
4.900%, 06/02/99 6,500 6,500
Collier County, Florida,
Community Health Care
Authority RB, LOC (B)
4.950%, 06/03/99 3,400 3,400
Dade County, Florida,
Expressway Authority
Toll System RB, Series 1996,
FGIC (B)
4.900%, 06/03/99 1,200 1,200
Health Midwest Venture (B)
4.950%, 06/02/99 2,000 2,000
Illinois State Student Assistance
RB, LOC (B)
4.950%, 06/02/99 5,000 5,000
Los Angeles, California,
Community Redevelopment
Agency RB, FSA (B)
4.950%, 06/02/99 5,500 5,500
Maryland State Health & Higher
Education Facilities RB,
Series B, LOC (B)
5.100%, 06/02/99 3,000 3,000
Olathe, Kansas, Industrial RB,
LOC (B)
4.900%, 06/03/99 2,300 2,300
Union County, Arkansas,
Industrial RB, LOC (B)
4.950%, 06/02/99 7,000 7,000
--------
Total Taxable Municipal Bonds
(Cost $36,500) 36,500
--------
10
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
Boston 1784 Institutional Prime Money Market Fund (concluded)
- --------------------------------------------------------------------------------
Description Par (000) Value (000)
- --------------------------------------------------------------------------------
U.S. Government Agency Obligations -- 8.1%
Federal Home Loan Bank
5.100%, 03/09/00 $10,000 $ 10,000
5.100%, 05/17/00 7,000 6,990
Federal Home Loan Mortgage
4.980%, 04/28/00 10,000 9,995
Federal National Mortgage
Association
5.050%, 05/12/00 5,000 4,996
Federal National Mortgage
Association, MTN
5.490%, 08/03/99 10,000 10,009
--------
Total U.S. Government Agency Obligations
(Cost $41,990) $ 41,990
--------
Repurchase Agreements -- 13.7%
J.P. Morgan,
4.810%, dated 05/28/99,
matures 06/01/99, repurchase
price $21,045,073 (collateralized
by U.S. Treasury Instruments:
total market value
$21,454,532) (D) 21,034 21,034
Prudential Securities,
4.800%, dated 5/28/99,
matures 06/01/99, repurchase
price $50,026,667 (collateralized
by U.S. Treasury Instruments:
total market value
$50,997,938) (D) 50,000 50,000
--------
Total Repurchase Agreements
(Cost $71,034) 71,034
--------
Total Investments -- 99.0%
(Cost $511,900) 511,900
--------
Other Assets and Liabilities,
Net -- 1.0% 5,001
--------
Net Assets:
Capital Shares (unlimited
authorization -- no par value)
based on 516,904,423 outstanding
shares of beneficial interest $516,904
Accumulated net realized loss
on investments (3)
--------
Total Net Assets -- 100.0% $516,901
========
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 May 31,1999.
(B) Variable Rate Security. The rate reported on the Statement of Net Assets is
the rate in effect on May 31, 1999. The date shown is the next scheduled
reset date.
(C) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration normally to qualified institutional buyers.
(D) Tri-Party Repurchase Agreement
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 organizations have provided underlying credit support for the
securities as set forth in the Statement of Net Assets.
FGIC -- Financial Guaranty Insurance Corporation
FSA -- Financial Security Assurance
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
STATEMENTS OF OPERATIONS (000)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED MAY 31, 1999
<TABLE>
<CAPTION>
BOSTON BOSTON
1784 INSTITUTIONAL 1784 INSTITUTIONAL
U.S. TREASURY PRIME MONEY
MONEY MARKET FUND MARKET FUND
------------------ ------------------
<S> <C> <C>
INTEREST INCOME: $212,403 $25,661
-------- -------
EXPENSES:
Investment Advisory Fees 8,329 982
Less: Waiver of Investment Advisory Fees -- (222)
Administrator Fees 2,779 327
Registration Fees 191 53
Transfer Agent Fees & Expenses 429 77
Professional Fees 380 45
Printing 311 40
Custodian Fees 230 48
Amortization of Deferred Organizational Costs -- 40
Trustee Fees 118 13
Other Expenses 160 70
-------- -------
Total Expenses, Net of Waivers 12,927 1,473
-------- -------
Net Investment Income 199,476 24,188
-------- -------
Net Realized Gain (Loss) on Investments 49 (3)
-------- -------
Net Increase in Net Assets Resulting from Operations $199,525 $24,185
======== =======
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOSTON BOSTON
1784 INSTITUTIONAL 1784 INSTITUTIONAL
U.S. TREASURY PRIME MONEY
MONEY MARKET FUND MARKET FUND
--------------------------------- -------------------------------
6/1/98 6/1/97 6/1/98 11/5/97
to to to to
5/31/99 5/31/98 5/31/99 5/31/98(1)
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income $ 199,476 $ 169,367 $ 24,188 $ 6,095
Net Realized Gain (Loss) on Investments 49 95 (3) --
------------ ------------ ----------- -----------
Net Increase in Net Assets Resulting from Operations 199,525 169,462 24,185 6,095
------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (199,476) (169,365) (24,188) (6,095)
Realized Capital Gains -- -- -- --
------------ ------------ ----------- -----------
Total Distributions (199,476) (169,365) (24,188) (6,095)
------------ ------------ ----------- -----------
Share transactions:
Proceeds from Shares Issued 14,696,641 14,628,533 4,471,716 1,438,198
Reinvestment of Cash Distributions 74,848 67,225 18,834 5,560
Cost of Shares Redeemed (14,711,302) (13,001,541) (4,275,984) (1,141,420)
------------ ------------ ----------- -----------
Increase in Net Assets
from Share Transactions 60,187 1,694,217 214,566 302,338
------------ ------------ ----------- -----------
Total Increase in Net Assets 60,236 1,694,314 214,563 302,338
============ ============ =========== ===========
NET ASSETS:
Beginning of Period 4,285,801 2,591,487 302,338 --
------------ ------------ ----------- -----------
NET ASSETS:
End of Period $ 4,346,037 $ 4,285,801 $ 516,901 $ 302,338
============ ============ =========== ===========
CAPITAL SHARE TRANSACTIONS:
Shares Issued 14,696,641 14,628,533 4,471,716 1,438,198
Shares Issued in Lieu of Cash Distributions 74,848 67,225 18,834 5,560
Shares Redeemed (14,711,302) (13,001,541) (4,275,984) (1,141,420)
------------ ------------ ----------- -----------
Net Increase in Capital Share Transactions 60,187 1,694,217 214,566 302,338
============ ============ =========== ===========
</TABLE>
- ----------
(1) Boston 1784 Institutional Prime Money Market Fund commenced operations on
November 5, 1997.
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
BOSTON 1784 INSTITUTIONAL MONEY MARKET FUNDS
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Distri- Net
Net butions Asset
Asset Net from Net Value
Value Invest- Invest- End
Beginning ment ment of Total
of Period Income Income Period Return
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Boston 1784 Institutional
U.S. Treasury Money Market Fund
For the year ended
May 31, 1999 $1.00 0.05 (0.05) $1.00 4.90%
For the year ended
May 31, 1998 $1.00 0.05 (0.05) $1.00 5.36%
For the year ended
May 31, 1997 $1.00 0.05 (0.05) $1.00 5.16%
For the year ended
May 31, 1996 $1.00 0.05 (0.05) $1.00 5.45%
For the year ended
May 31, 1995 $1.00 0.05 (0.05) $1.00 5.05%
- --------------------------------------------------------------------------------
Boston 1784 Institutional
Prime Money Market Fund
For the year ended
May 31, 1999 $1.00 0.05 (0.05) $1.00 5.10%
For the period ended
May 31, 1998 (1) $1.00 0.03 (0.03) $1.00 5.55%
- --------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------
Ratio
Ratio of Net
Ratio of Investment
Ratio of Net Expenses Income
Net of Investment to to
Assets Expenses Income Average Average
End to to Net Net
of Average Average Assets Assets
Period Net Net (Excluding (Excluding
(000) Assets Assets Waivers) Waivers)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Boston 1784 Institutional
U.S. Treasury Money Market Fund
For the year ended
May 31, 1999 $4,346,037 0.31% 4.79% 0.31% 4.79%
For the year ended
May 31, 1998 $4,285,801 0.33% 5.24% 0.33% 5.24%
For the year ended
May 31, 1997 $2,591,487 0.33% 5.05% 0.34% 5.04%
For the year ended
May 31, 1996 $ 644,733 0.32% 5.29% 0.39% 5.22%
For the year ended
May 31, 1995 $ 395,585 0.30% 5.12% 0.41% 5.01%
- -----------------------------------------------------------------------------------------------
Boston 1784 Institutional
Prime Money Market Fund
For the year ended
May 31, 1999 $ 516,901 0.30% 4.93% 0.35% 4.88%
For the period ended
May 31, 1998 (1) $ 302,338 0.27% 5.36% 0.42% 5.21%
- -----------------------------------------------------------------------------------------------
</TABLE>
- ----------
(1) Boston 1784 Institutional Prime Money Market Fund commenced operations on
November 5, 1997. All ratios for the period, including total return, have
been annualized.
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
MAY 31, 1999 BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 May 31, 1999:
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 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 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.
15
<PAGE>
MAY 31, 1999
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
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 May 31, 1999, 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.
16
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
- --------------------------------------------------------------------------------
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 voluntarily agreed to waive a portion of its
investment advisory fee in order to maintain competitive expense ratios.
The Institutional Funds and BankBoston, N.A. were parties to a custodial
agreement dated June 1, 1993 under which BankBoston, N.A. held cash, securities
and other assets of the Institutional Funds as required by the Investment
Company Act of 1940, as amended. For the period June 1, 1998 to September 30,
1998, BankBoston, N.A. served as the Funds' custodian and received an annual
fee, 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. On September 30,
1998, the Custodial Agreement was amended and assigned to Investors Bank & Trust
("IBT"). Effective October 1, 1998, IBT is entitled to receive an annual fee, to
be paid monthly, of 0.005% of the market value of each Institutional Fund's
assets. In the capacity as custodian to the Institutional Funds, BankBoston,
N.A. played and IBT 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 Investments
Mutual Funds Services, 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.
17
<PAGE>
MAY 31, 1999
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
5. Line of Credit
The Trust has entered into a Line of Credit Agreement. Pursuant to this
agreement, the Trust has access to a $50 million uncommitted line of credit and
a $20 million committed line of credit. The Trust is charged a commitment fee of
.10% of the unused portion of the committed line of credit. Borrowings under the
line are charged interest at the current overnight Federal Funds rate plus 0.50%
by the Institutional Funds. Each Fund is individually, and not jointly, liable
for its particular advances under the line. There were no borrowings under the
line of credit by the during the period ended May 31, 1999.
6. Year 2000 Readiness Disclosure
Boston 1784 Funds have been working to prepare for the Year 2000 transition and
have taken steps to provide seamless processing for all systems and applications
utilized by the Funds' service providers. We have sought and received assurances
from each service provider that their computer systems have been remediated for
Year 2000. We are continuing to monitor the progress of these service providers
with respect to the testing of modified systems, and have sought and received
assurances that such testing confirms Year 2000 readiness.
While we have received such assurances, the Funds and their shareholders may
experience losses if these assurances prove to be incorrect. Losses could also
arise as a result of Year 2000 computer difficulties experienced by issuers of
portfolio securities or third parties, such as custodians, banks, and
broker-dealers, with which the Funds do business.
An additional Year 2000 consideration is the readiness of the companies in which
Boston 1784 Funds have invested. The Year 2000, like any other market influence,
could quite possibly impact Fund performance. The impact could as easily be
positive (a company that benefits due to its preparedness) as negative (a
company that suffers from lack of preparedness). Boston 1784 Funds' investment
advisers consider the Year 2000 transition, like any other factor, in making
investment decisions.
It is important to understand that Boston 1784 Funds cannot warrant or guarantee
the Year 2000 readiness of any third party.
18
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and
Board of Trustees of Boston 1784 Institutional
Money Market Funds:
In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position
of Boston 1784 Funds (comprising, respectively, Boston 1784 Institutional
U.S. Treasury Money Market Fund and Boston 1784 Institutional Prime Money
Market Fund referred to collectively herein as "the Funds"), at May 31,
1999, the results of their operations, changes in their net assets and the
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Funds' management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with
generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of securities at May 31, 1999 by correspondence with
the custodian and brokers, provide a reasonable basis for the opinion
expressed above.
PRICEWATERHOUSECOOPERS LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
July 9, 1999
19
<PAGE>
MAY 31, 1999
NOTICE TO SHAREHOLDERS (Unaudited)
- --------------------------------------------------------------------------------
For Taxpayers filing on a calendar year basis, this notice is for informational
purposes only.
Dear Boston 1784 Funds Shareholders:
For the fiscal year ended May 31, 1999, Boston 1784 Institutional Money
Market Funds are designating long-term capital gains, qualifying dividends and
exempt income with regard to distributions paid during the year as follows:
<TABLE>
<CAPTION>
(A)* (B)*
Long-Term Ordinary (D)**
Capital Gains Income Total (C)** Tax- (E)**
Distributions Distributions Distributions Qualifying Exempt Foreign
(Tax Basis) (Tax Basis) (Tax Basis) Dividends (1) Interest Tax Credit
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Institutional
U.S. Treasury
Money Market Fund 0% 100% 100% 0% 0% 0%
Institutional Prime
Money Market Fund 0% 100% 100% 0% 0% 0%
</TABLE>
- ----------
(1) Qualifying dividends represent dividends which qualify for the corporate
received deduction.
* Items (A) and (B) are based on a percentage of the Fund's total
distributions.
** Items (C), (D) and (E) are based on a percentage of ordinary income
distributions of the Fund.
20
<PAGE>
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 LEGAL COUNSEL
SEI Investments Mutual Funds Services Bingham Dana LLP
Oaks, PA 19456 Boston, MA 02110
DISTRIBUTOR INDEPENDENT ACCOUNTANTS
SEI Investments Distribution Co. PricewaterhouseCoopers LLP
Oaks, PA 19456 Philadelphia, PA 19103
CUSTODIAN
Investors Bank & Trust Company
Boston, MA 02116
[LOGO]
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-0150
