Semi-Annual
Report
[LOGO OMITTED]
Boston
1784
Funds
To Shareholders
November 30, 1998
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TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS 1
PERFORMANCE HIGHLIGHTS 2
TERMS YOU NEED TO KNOW 4
FUND OBJECTIVES 5
INVESTMENT ADVISER'S REPORT 6
FINANCIAL STATEMENTS 10
BOSTON 1784 FUNDS:
o ARE NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY;
o ARE NOT GUARANTEED BY BANKBOSTON, N.A. OR ANY OF ITS AFFILIATES;
o ARE NOT DEPOSITS OR OBLIGATIONS OF BANKBOSTON, N.A. OR ANY
OF ITS AFFILIATES;
o 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. OR ANY OF ITS AFFILIATES. INVESTMENT COUNSELORS
ARE REGISTERED REPRESENTATIVES OF BANKBOSTON INVESTOR SERVICES, INC.
(MEMBER NASD/SIPC), A WHOLLY-OWNED SUBSIDIARY OF BANKBOSTON, N.A.
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BOSTON 1784 FUNDS
LETTER TO SHAREHOLDERS
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[Photo Omitted]
Catherine N. Thornton
Director
Robert T. Nesher
President
We are pleased to provide you with this semi-annual report for Boston 1784
Funds. During the six months ended November 30, 1998, total assets in the Funds
grew to $9.25 billion, which ranked the Funds among the 20 largest bank-managed
fund families in the nation. More than 52,000 investors currently own shares in
Boston 1784 Funds.
This report includes detailed information on the performance of Boston 1784
Funds. Before you turn to that data, however, we particularly want to highlight
the results of several tax-exempt and tax-free funds. According to Lipper
rankings for the twelve months ended November 30, 1998:*
o BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND ranked 1st of 77 funds in
the Lipper Other States Intermediate Municipal Debt Mutual Funds category.
o BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND ranked 1st of 10 funds in
the Lipper Massachusetts Intermediate Municipal Funds category.
o BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND ranked 2nd of 15 funds in the
Lipper Florida Intermediate Municipal Funds category.
o BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND ranked 8th of 148 funds in
the Lipper Intermediate Municipal Bond Funds category.
o BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND ranked 8th of 77
funds in the Lipper Other States Intermediate Municipal Debt Mutual Funds
category.
o BOSTON 1784 TAX-FREE MONEY MARKET FUND ranked 14th of 133 funds in the
Lipper Tax-Exempt Money Market Funds category.
Please remember that a Fund's performance in the past is not necessarily an
indication of how a Fund will do in the future. The Funds' total returns and
resulting rankings reflect advisory fee and expense waivers.
We would also like to point out--and endorse--a new requirement that will
affect all mutual funds. In the coming year, all mutual funds will be required
by the Securities and Exchange Commission to provide investors with clearer,
more concise and less technical prospectuses. At Boston 1784 Funds, our goal has
always been to help you make sound investment decisions as easily as possible.
As a result, we were among the first mutual fund families to produce a "plain
English" prospectus. The new prospectus, which we mailed to our shareholders in
September, clearly describes each Boston 1784 Fund's goals, investment
strategies, and risks and provides definitions of investment terms.
You can learn more about any Boston 1784 Fund and request a new prospectus by
calling 1-800-BKB-1784, Monday through Friday from 8:00 a.m. to 6:00 p.m.
(Eastern time), or by discussing our Funds with your Investment Counselor. If
you do not have an Investment Counselor and would like an appointment with one,
or if you have any questions about your account, we invite you to call
1-800-BKB-1784. Of course, our automated system remains available 24 hours a
day.
We look forward to helping you meet your investment goals.
Sincerely,
\s\ Robert Nesher \s\ Catherine N. Thornton
- ----------------- -------------------------
Robert Nesher Catherine N. Thornton
President Director, Investment Services
Boston 1784 Funds BankBoston, N.A.
*For the five years ended November 30, 1998:
Boston 1784 Massachusetts Tax-Exempt Income Fund ranked 2nd of 6 funds in the
Lipper Massachusetts Intermediate Municipal Funds category.
Boston 1784 Tax-Exempt Medium-Term Income Fund ranked 5th of 77 funds in the
Lipper Intermediate Municipal Bond Funds category.
Boston 1784 Tax-Free Money Market Fund ranked 10th of 105 funds in the Lipper
Tax-Exempt Money Market Funds category.
1
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<CAPTION>
PERFORMANCE HIGHLIGHTS OF THE FUNDS
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FOR THE PERIOD JUNE 1, 1998 THROUGH NOVEMBER 30, 1998
INCOME
TOTAL NET ASSETS TOTAL RETURN(1) NAV SHARE PRICE YIELD DISTRIBUTIONS
---------------------------------------------------------------------------------
11-30-98 11-30-98 HIGH LOW 30-DAY 7-DAY PER
(IN MILLIONS) SHARE
<S> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET FUNDS
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Boston 1784 Tax-Free Money Market $1,064.1 1.54% $1.00 $1.00 $1.00 N/A 2.85% $ 0.02
Boston 1784 U.S. Treasury Money Market 383.9 2.38 1.00 1.00 1.00 N/A 4.30 0.02
Boston 1784 Prime Money Market 160.4 2.49 1.00 1.00 1.00 N/A 4.68 0.02
BOND FUNDS
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Boston 1784 Short-Term Income $185.0 3.42% $10.16 $10.28 $10.08 4.88% N/A $ 0.27
Boston 1784 Income 372.2 4.70 10.45 10.74 10.22 5.08 N/A 0.28
Boston 1784 U.S. Government
Medium-Term Income 275.2 5.13 9.83 10.03 9.58 4.62 N/A 0.26
TAX-EXEMPT INCOME FUNDS
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Boston 1784 Tax-Exempt
Medium-Term Income $321.1 3.77% $10.68 $10.84 $10.50 4.07% N/A $ 0.23
Boston 1784 Connecticut
Tax-Exempt Income 168.4 3.66 10.96 11.11 10.78 3.73 N/A 0.24
Boston 1784 Florida
Tax-Exempt Income 57.3 3.77 10.46 10.60 10.27 3.92 N/A 0.22
Boston 1784 Massachusetts
Tax-Exempt Income 233.1 3.38 10.54 10.70 10.38 3.98 N/A 0.23
Boston 1784 Rhode Island
Tax-Exempt Income 88.3 3.32 10.73 10.90 10.60 3.73 N/A 0.24
STOCK FUNDS
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Boston 1784 Asset Allocation $ 51.0 1.54% $15.19 $15.76 $13.95 N/A N/A $ 0.20
Boston 1784 Growth and Income 544.1 0.55 21.81 23.61 17.93 N/A N/A 0.03
Boston 1784 Growth 189.1 (12.68) 11.29 13.39 8.51 N/A N/A --
Boston 1784 International Equity 424.9 (7.60) 12.65 14.73 10.23 N/A N/A --
</TABLE>
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.
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.
(1) RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
2
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<TABLE>
<CAPTION>
BOSTON 1784 FUNDS
TOTAL RETURN FOR THE PERIOD
JUNE 1, 1998 - NOVEMBER 30, 1998
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[GRAPHIC OMITTED]
<S> <C> <C>
PLOT POINTS ARE AS FOLLOWS:
BOSTON
1784 FUNDS TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 1998 (1)
TAX-FREE MONEY MARKET 1.54
U.S. TREASURY MONEY MARKET 2.38
PRIME MONEY MARKET 2.49
SHORT-TERM INCOME 3.42
INCOME 4.70
U.S. GOVERNMENT MEDIUM-TERM INCOME 5.13
TAX-EXEMPT MEDIUM-TERM INCOME 3.77
CONNECTICUT TAX-EXEMPT INCOME 3.66
FLORIDA TAX-EXEMPT INCOME 3.77
MASSACHUSETTS TAX-EXEMPT INCOME 3.38
RHODE ISLAND TAX-EXEMPT INCOME 3.32
ASSET ALLOCATION 1.54
GROWTH AND INCOME .55
GROWTH (12.68)
INTERNATIONAL EQUITY (7.60)
PERCENT (%) -14 -12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12 14
(!) RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
</TABLE>
3
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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 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. This 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 for its
investors, based on a formula set by the Securities and Exchange Commission.
4
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BOSTON 1784 FUNDS
FUND OBJECTIVES
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MONEY MARKET FUNDS
o BOSTON 1784 TAX-FREE MONEY MARKET FUND
To preserve the principal value of a shareholder's investment and maintain a
high degree of liquidity while providing current income that is exempt from
federal income tax.
o BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
To preserve the principal value of a shareholder's investment and maintain a
high degree of liquidity while providing current income.
o BOSTON 1784 PRIME MONEY MARKET FUND
To preserve the principal value of a shareholder's investment and maintain a
high degree of liquidity while providing current income.
BOND FUNDS
o BOSTON 1784 SHORT-TERM INCOME FUND
To provide investors with maximum current income, and, as a secondary goal, to
preserve investors' capital.
o BOSTON 1784 INCOME FUND
To provide investors with maximum current income, and, as a secondary goal, to
preserve investors' capital.
o BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
To provide investors with current income consistent with preservation of
capital.
TAX-EXEMPT FUNDS
o BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
To provide investors with current income, exempt from federal income tax,
consistent with preservation of capital.
o BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
To provide investors with current income exempt from both federal and
Connecticut personal income tax. Preservation of capital is a secondary goal.
o BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
To provide investors with 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 goal.
o BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
To provide investors with current income exempt from both federal and
Massachusetts personal income tax, consistent with preservation of capital.
o BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
To provide investors with current income exempt from federal income tax and
Rhode Island personal income and business corporation taxes. Preservation of
capital is a secondary goal.
STOCK FUNDS
o BOSTON 1784 ASSET ALLOCATION FUND
To provide investors with 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.
o BOSTON 1784 GROWTH AND INCOME FUND
To provide investors with long-term growth of capital with a secondary goal of
income.
o BOSTON 1784 GROWTH FUND
To provide investors with capital appreciation. Dividend income, if any, is
incidental to this goal.
o BOSTON 1784 INTERNATIONAL EQUITY FUND
To provide investors with long-term growth of capital. Dividend income, if
any, is incidental to this goal.
5
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INVESTMENT ADVISER'S REPORT
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[PICTURE GRAPHIC OMITTED]
EDWARD G. RILEY, JR.
CHIEF INVESTMENT OFFICER
Several words come to mind when describing the past six months. One is
"volatile," but that seems almost clinical when what many investors may be
feeling is a bit of "whiplash." The downs and ups in the stock market since
August have been startling in their suddenness and scope. Within a period of six
weeks, the Dow Jones Industrial Average dropped more than 1,800 points and then
regained 1,577 points through November 30, 1998, leaving many investors to
wonder just how to plan in the face of such unpredictability.
The swings in the stock market took place against a mixed economic backdrop.
On the consumer side, we've seen confidence bounce back from a dip in September.
Few signs are more telling, and perhaps more alarming, than the incredible
growth of consumer credit in October. The reasons for this psychological upswing
are clear. According to the most recent government statistics, wages and
salaries are on the rise, up some 4% over last year. At the same time,
unemployment remains low and consumers seem unperturbed by the rounds of layoffs
announced by some large companies.
In contrast, the manufacturing sector of the economy is slipping into the
doldrums. Imports from cash-starved, currency-weakened Asian countries continue
to depress sales. Worldwide overcapacity in a number of industries has led to a
slowdown in capital spending. With wages and salaries rising and sales
weakening, many manufacturers are feeling a real squeeze on profits, as
indicated by the number of companies missing their earnings estimates and
pre-announcing earnings shortfalls.
The international situation remains uncertain. At long last, Japan appears to
be taking serious steps to address its economic woes. Even so, consumer and
investor confidence in that country remains depressed, which was only
exacerbated by recent government seizures of insolvent financial institutions.
In Hong Kong, the recession continues. Latin American economies and markets,
particularly Brazil, still suffer from Asian-induced instability. Europe shows
signs of a slowdown, with declining retail sales in the United Kingdom and
declining business confidence in Italy, Belgium and the Netherlands.
One possible result of global overcapacity and economic weakness is
deflation--a worry about which investors and, to some extent, the Federal
Reserve Board are unaccustomed. To counter this trend, and the growing trend
toward tighter business credit on the part of commercial banks, the Federal
Reserve Board reduced its target interest rate on Federal Funds by 0.75% since
June 1, 1998 to 4.75% on November 30, 1998. The Federal Reserve Board's
uncertainty is reflected in the tentativeness of rate reductions, with a 0.25%
drop in September, followed by a second 0.25% reduction a month later.
By reducing U.S. interest rates, the Federal Reserve Board signaled its
concern regarding deflation to other central banks, which promptly
6
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BOSTON 1874 FUNDS
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followed with reductions of their own. The result has been a total of 51
interest rate cuts by various central banks since October 1, 1998. These
interest rate cuts are unleashing tremendous liquidity in their respective
economies and in the financial markets.
DOW JONES INDUSTRIAL AVERAGE
NOVEMBER 1997-NOVEMBER 1998
[GRAPHIC OMITTED]
PLOT POINTS ARE AS FOLLOWS:
11/97 7823
12/97 7908
1/98 7906
2/98 8545
3/98 8799
4/98 9063
5/98 8899
6/98 9025
7/98 8883
8/98 7640
9/98 7784
10/98 8592
11/98 9116
STOCK MARKET REVIEW
The six months ended November 30, 1998 have been among the most volatile in
memory. The Dow Jones Industrial Average closed at 9116 on November 30 compared
to 8899 on May 31, 1998. During that period, however, the Dow hit a record high
of 9337 points on July 17, and a low for the period of 7539 on August 31.
It's important to note, however, that the Dow Jones Industrial Average
reflects the performance of the nation's 30 largest-capitalization stocks. To
make the point even more strongly, the twelve largest stocks in the Standard &
Poor's 500 index account for more than 50% of that index's performance during
the past twelve months. Unless you (or your mutual fund) invested in these
specific stocks, matching their weighted percentage in the S&P 500, your
investments very likely lagged the overall equity market. When we consider the
broader market, the picture is quite different. Since January 1, 1998, the 100
largest stocks on the technology-heavy NASDAQ have gained 70%, while the Russell
2000 index, which includes small- and mid-cap companies, has declined 8%.
Despite the volatility in the stock market, however, smaller investors held
their ground, riding out, and buying on, the declines in stock prices, while
many professional money managers were selling. Investors continue to invest in
stock funds, which recorded $120 billion in inflows since the beginning of the
year. With more than $1.4 trillion currently "resting" in money market funds,
the possibility of further liquidity-driven gains is very real.
We see a disturbing disconnect, however, between the enthusiasm for stocks
and the reality of economic and company fundamentals. Traditional measures of
market valuation are at very high levels, given the state of the economy and
corporate earnings. The Standard & Poor's 500 projected price-earnings ratio,
which is based on ESTIMATED 1999 earnings, has reached an historic high of
29-times. The 30 largest companies in the Standard & Poor's 500 have a weighted
7
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price-earnings ratio of 40-times projected earnings. While overall corporate
earnings have increased 28% in the past four years, that trend is unlikely to
continue in the year ahead. Indeed, it is already showing signs of weakening.
Moreover, it is impossible to ignore the fervor for virtually any
Internet-related stock. With some companies selling for hundreds of times
earnings, if they have earnings at all, we urge investors to remember that
speculative stocks can decline as rapidly as they rise.
BOND MARKET REVIEW
Since January 1998, the yield on 30-year U.S. Treasury bonds dropped 0.56% to
5.25% on November 30, 1998. Bond prices move in the opposite direction of bond
yields. Therefore,
30-YEAR TREASURY BOND
NOVEMBER 1997-NOVEMBER 1998
[GRAPHIC OMITTED]
PLOT POINTS ARE AS FOLLOWS:
11/97 6.11
1/98 5.81
3/98 5.95
5/98 5.93
7/98 5.68
9/98 5.2
11/98 5.25
many fixed income investors have experienced significant appreciation in the
value of their portfolios. We anticipated this decline in yields and lengthened
the average maturity of our bond portfolios, resulting in gains that are a
component of Boston 1784 Tax-Exempt
INVESTMENTS IN BOND MUTUAL FUNDS
NOVEMBER 1997-NOVEMBER 1998
[GRAPHIC OMITTED]
PLOT POINTS ARE AS FOLLOWS:
11/97 714
1/98 738
3/98 759
5/98 777
7/98 793
9/98 811
11/98 829
Income and Boston 1784 Bond Funds' strong performance.
With bond prices rising and stock market volatility increasing, investors
seem to have rediscovered bonds. Fixed income mutual funds experienced an inflow
of $6.0 billion in October 1998 and have taken in a total of $73 billion in new
money since January 1998. The 10-month inflow is 2.5 times the total inflow for
all of 1997.
8
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BOSTON 1874 FUNDS
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The economic uncertainty in the U.S. and Europe, and the continued threat of
deflation, are likely to require further easing of monetary policy. While the
Federal Reserve Board may be reluctant to cut rates further over the short term,
we expect to see additional interest rate reductions during 1999, perhaps by as
much as 0.75% to 1%. These rate reductions, coupled with expectations for
continued stock market volatility, may argue for an increased fixed income
allocation on the part of more risk-averse investors.
MONEY MARKET REVIEW
Money market investors have seen the Federal Funds rate decline from 5.50% on
May 1, 1998, to 4.75% on November 30, 1998, with resulting declines in yields.
Given economic uncertainty and the threat of deflation, further interest rate
reductions are likely in 1999, although they may not be immediate. We expect a
reduction of 0.75% to 1% during the next 12 months.
In reducing rates, however, the Federal Reserve Board must perform a
balancing act. It must provide enough liquidity to boost
economic activity, but not so much that the funds flow into financial assets
instead, resulting in even greater asset inflation. Moreover, the Federal
Reserve Board must reduce rates sufficiently to allow other central banks room
for reductions without disrupting foreign exchange rates.
In closing, we would say that the six months ended November 30, 1998 have
demonstrated the value of a carefully considered asset allocation strategy.
Those investors who stuck to their allocations during the recent stock market
swings saw their portfolios bounce back quickly from steep
FEDERAL FUNDS RATE
NOVEMBER 1995-NOVEMBER 1998
[GRAPHIC OMITTED]
PLOT POINTS ARE AS FOLLOWS:
11/95 5.8
5/96 5.24
11/96 5.31
5/97 5.5
11/97 5.5
5/98 5.5
11/98 4.75
declines. We urge similar discipline in the months ahead, which are likely to be
equally volatile. Many analysts believe that the recent decline and subsequent
rebound of stock prices was too "easy." Depending on the course of global
economic and political events, we may well see a similar decline in stock prices
in 1999. Patient investors with sound strategies may not be comfortable with
such a development, but they should not be alarmed by it, either.
\s\ Edward G. Riley, Jr.
- ------------------------
Edward G. Riley, Jr.
Chief Investment Officer
BankBoston, N.A.
9
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
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BOSTON 1784 TAX-FREE MONEY MARKET FUND
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EDUCATION BONDS 9%
TRANSPORTATION BONDS 2%
UTILITY BONDS 14%
GENERAL OBLIGATION BONDS 8%
CASH EQUIVALENTS 6%
CORPORATE BONDS 1%
TAX-EXEMPT COMMERCIAL PAPER 4%
OTHER REVENUE BONDS 14%
HOUSING BONDS 4%
WATER & SEWER BONDS 5%
BOND ANTICIPATION NOTES 3%
INDUSTRIAL DEVELOPMENT & POLLUTION CONTROL BONDS 17%
ALTERNATIVE MINIMUM TAX BONDS 1%
HEALTH CARE BONDS 10%
PUBLIC FACILITY BONDS 2%
% OF TOTAL PORTFOLIO INVESTMENTS
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DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 89.7%
ARIZONA -- 2.7%
Maricopa County, Pollution
Control RB, Arizona Public
Services, Series B (A)
3.350%, 12/01/98 $10,000 $ 10,000
Pima County, Industrial
Development Authority RB (A)
3.200%, 12/02/98 19,000 19,000
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29,000
------
CALIFORNIA -- 2.6%
California School Cash Reserve
Program Authority TRAN,
Series A, AMBAC
4.500%, 07/02/99 15,000 15,064
California Student Education Loan
Marketing RB, Series A LOC (A)
3.000%, 12/02/98 12,500 12,500
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27,564
------
CONNECTICUT -- 0.7%
Clipper Connecticut Tax-Exempt
Trust, Series 1995-1 (A) (B)
3.130%, 12/04/98 7,341 7,341
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
DELAWARE -- 2.0%
Delaware State Health Facility
Authority RB, LOC (A)
3.150%, 12/02/98 $21,600 $ 21,600
------
DISTRICT OF COLUMBIA -- 1.9%
District of Columbia Tax &
Revenue GO, Series B
3.750%, 09/30/99 20,000 20,105
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FLORIDA -- 0.7%
Miami, Dade County
School Board COP, Series C, FSA
4.000%, 08/01/99 4,360 4,388
Orange County Florida
Health Care TECP
3.250%, 12/02/98 3,400 3,400
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7,788
------
GEORGIA -- 2.7%
Georgia State Municipal Electric
Authority RB, LOC (A)
3.100%, 12/02/98 21,800 21,800
Georgia State Municipal Electric
Authority RB, Series B,
LOC (A) (B)
3.100%, 12/02/98 7,000 7,000
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28,800
------
ILLINOIS -- 6.8%
Chicago GO, LOC (A) (B)
3.550%, 02/04/99 30,000 30,000
Chicago, Multi-Family Housing
RB, Waveland Associates
Project C, LOC (A) (B)
3.100%, 12/02/98 10,000 10,000
Illinois State Development
Finance Authority RB, Chicago
Symphony Project, GOA (A)
3.100%, 12/02/98 26,000 26,000
Illinois State Educational Facility
Authority RB, Shedd Aquarium
Society Project, Series B,
LOC (A) (B)
3.700%, 05/20/99 6,000 6,000
------
72,000
------
10
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BOSTON 1874 FUNDS
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DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
INDIANA -- 1.4%
City of Indianapolis Gas
Utilities TECP
3.250%, 12/11/98 $ 5,000 $ 5,000
Indiana State, GO
4.000%, 01/20/99 10,000 10,005
------
15,005
------
IOWA -- 2.0%
Iowa State School Cash
Anticipation Warrants,
Series B, FSA
4.250%, 01/28/99 5,200 5,206
Polk County, Iowa Catholic
Health Center RB, Series B (A)
3.150%, 12/02/98 16,000 16,000
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21,206
------
KENTUCKY -- 2.8%
Boone County, Pollution Control
RB, Cincinnati Gas & Electric
Project, LOC (A) (B)
3.200%, 12/01/98 4,100 4,100
Kentucky Rural Water Finance
RB, Public Projects
Construction Notes
4.000%, 07/15/99 25,080 25,125
------
29,225
------
LOUISIANA -- 6.7%
De Soto Parish, Pollution Control
RB, Central Louisiana Electric
Company Project,
Series B, LOC (A)
3.100%, 12/02/98 10,000 10,000
Louisiana State Offshore Terminal
Authority RB, Deepwater Port
Project, LOC (A) (B)
3.250%, 12/01/98 15,300 15,300
Louisiana State Public Facilities
Authority RB, Willis Knighton
Medical Center, LOC (A) (B)
3.250%, 12/02/98 27,000 27,000
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Plaquemines, Port Facilities RB,
International Marine Terminal
Project, Series B (A) (B)
3.600%, 03/15/99 $10,900 $ 10,900
Rapides Parish, Pollution Control
RB, Central Louisiana Electric
Company Project, LOC (A) (B)
3.100%, 12/02/98 8,150 8,150
------
71,350
------
MAINE -- 0.9%
Jay, Pollution Control RB, Solid
Waste Disposal Project,
AMT (A) (B)
4.000%, 12/01/98 10,000 10,000
------
MASSACHUSETTS -- 12.4%
Massachusetts State GO,
Series A (A)
3.050%, 12/03/98 25,000 25,000
Massachusetts State Health &
Educational Facilities
Authority RB, FSA (A)
3.000%, 12/02/98 10,000 10,000
Massachusetts State Health &
Educational Facilities Authority
RB, Harvard University Issue,
Series Q-1, LOC (A) (B)
3.000%, 12/03/98 8,000 8,000
Massachusetts State Health &
Educational Facilities Authority
RB, MBIA (A)
3.000%, 12/02/98 7,900 7,900
Massachusetts State Housing
Finance Authority RB, Family
Housing Project A, FNMA (A)
3.100%, 12/02/98 3,700 3,700
Massachusetts State Housing Finance
Authority RB, Multi-Family Series A,
GNMA (A)
3.100%, 12/02/98 21,100 21,100
Massachusetts State Industrial
Finance Agency RB (A)
3.100%, 12/03/98 2,500 2,500
11
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-FREE MONEY MARKET FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Massachusetts State Industrial
Finance Agency RB, Buckingham
Brown Issue, LOC (A) (B)
3.050%, 12/03/98 $ 6,000 $ 6,000
Massachusetts State Industrial
Finance Agency RB, Eastern
Nazarene College (A)
3.050%, 12/03/98 1,735 1,735
Massachusetts State Water
Resource Authority RB,
Series A, AMBAC (A)
2.900%, 12/02/98 19,100 19,100
Massachusetts State
Pollution TECP
3.250%, 12/02/98 9,000 9,000
Springfield, Massachusetts BAN
3.625%, 03/02/99 5,000 5,007
4.000%, 07/15/99 10,000 10,021
4.000%, 09/02/99 2,000 2,006
-------
131,069
-------
MICHIGAN -- 1.7%
Kent, Michigan Hospital Finance
Authority RB Spectrum Health
Series B, MBIA (A)
3.000%, 12/02/98 12,200 12,200
Michigan State Strategic
Pollution Control RB,
Consumer Power Project (A)
3.350%, 12/01/98 5,900 5,900
-------
18,100
-------
MINNESOTA -- 1.0%
Minnesota State Electric Systems
RB, Northern Municipal Power
Agency Putters, Series 105,
FSA (A)
3.600%, 12/02/98 10,600 10,600
-------
MISSISSIPPI -- 2.1%
Jackson County, Pollution Control
Authority RB, Chevron USA
Project, LOC (A) (B)
3.250%, 12/01/98 21,950 21,950
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MISSOURI -- 3.4%
Kansas City, Industrial
Development Authority
RB, MBIA (A) (B)
3.250%, 12/01/98 $ 7,200 $ 7,200
Kansas City, Industrial
Development Authority RB,
Resh Health Services System
Project, MBIA (A) (B)
3.250%, 12/01/98 4,800 4,800
Missouri State Health &
Educational Facilities Authority
RB, Christian Health Services,
Series B, LOC (A) (B)
3.050%, 12/02/98 6,150 6,150
Missouri State Import & Energy
Resources Authority RB,
Pollution Control Resources,
LOC (A)
3.750%, 12/01/98 18,000 18,000
------
36,150
------
NEW HAMPSHIRE -- 2.7%
New Hampshire State Health &
Higher Education Facilities
Authority RB, Mary Hitchcock
Project, Series 85D, FGIC (A) (B)
3.150%, 12/02/98 12,600 12,600
New Hampshire State Health &
Higher Education Facilities
Authority RB, Mary Hitchcock
Project, Series 85H, FGIC (A) (B)
3.150%, 12/02/98 9,600 9,600
New Hampshire State Health &
Higher Education Facilities
Authority RB, Veterans Administration
Hospital, New England
Project, Series C, AMBAC (A) (B)
3.300%, 12/02/98 4,000 4,000
New Hampshire State Health &
Higher Education Facilities Authority
RB, Veterans Administration
Hospital, New England
Project, Series F, AMBAC (A) (B)
3.300%, 12/02/98 2,000 2,000
------
28,200
------
12
<PAGE>
BOSTON 1874 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
NEW YORK -- 9.5%
Long Island Power Authority RB,
Sub-Series 5, LOC (A)
3.250%, 12/01/98 $20,000 $ 20,000
New York City, New York GO,
Series B, FGIC (A)
3.500%, 12/01/98 6,500 6,500
New York State Local Government
Assistance Corporation RB,
LOC (A) (B)
2.900%, 12/02/98 23,370 23,370
New York State Local
Government Assistance
Corporation RB, Series B,
LOC (A) (B)
2.950%, 12/02/98 22,900 22,900
New York State Municipal Water
Finance Authority RB, Series G,
FGIC (A) (B)
3.250%, 12/01/98 28,100 28,100
-------
100,870
-------
OHIO -- 1.1%
Columbus, Sewer
Authority RB (A) (B)
3.050%, 12/03/98 11,600 11,600
------
OKLAHOMA -- 2.0%
Oklahoma State Water Resources
RB, Saint Loan Program,
LOC (A) (B)
3.550%, 03/01/99 21,095 21,095
------
PENNSYLVANIA -- 1.8%
Philadelphia Gas Works TECP
3.300%, 12/08/98 7,700 7,700
Quakertown, Pennsylvania
General Authority RB,
Series A, LOC (A)
3.250%, 12/01/98 11,300 11,300
------
19,000
------
PUERTO RICO -- 1.0%
Puerto Rico Commonwealth Highway
& Transportation RB, Series A,
LOC (A) (B)
2.750%, 12/02/98 11,000 11,000
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
SOUTH CAROLINA -- 1.8%
Piedmont, South Carolina
Municipal Power Agency RB,
Series B, MBIA (A)
3.100%, 12/02/98 $ 5,600 $ 5,600
South Carolina Public Service
Authority TECP
3.350%, 12/04/98 13,160 13,160
------
18,760
------
TENNESSEE -- 3.0%
Johnson County, Tennessee
Health and Educational Facilities
RB, Series A, MBIA (A)
3.150%, 12/02/98 32,300 32,300
------
TEXAS -- 4.4%
Brazos, Industrial Development
RB, Badische Corporate Port
Authority, LOC (A) (B)
3.100%, 12/01/98 6,300 6,300
Harris County, Toll Road RB,
Series F, LOC (A) (B)
3.050%, 12/02/98 5,500 5,500
Houston Texas TECP
3.100%, 01/13/99 10,000 10,000
Texas State TRAN
4.500%, 08/31/99 10,000 10,078
Texas, Lower Colorado River
Authority RB, Junior Lien 3rd
Supply Series, MBIA (A)
3.050%, 12/02/98 15,200 15,200
------
47,078
------
UTAH -- 0.9%
Utah County, Utah Environmental
Impact RB, USX Corporate
Project, LOC (A) (B)
3.600%, 12/03/98 10,000 10,000
------
VERMONT -- 0.7%
Vermont Education & Health
Financing Agency RB,
Middlebury College
Project A (A)
3.100%, 05/03/99 1,500 1,500
13
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-FREE MONEY MARKET FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
VERMONT (CONTINUED)
Vermont State Health &
Educational Facilities Authority
RB, Series D, AMBAC (A) (B)
3.300%, 12/02/98 $ 5,900 $ 5,900
-------
7,400
-------
WASHINGTON -- 3.8%
Port Anacortes, Washington
Industrial Development TECP,
Texaco Project (A)
3.000%, 12/03/98 25,000 25,000
Washington State Health Care
Facilities Authority RB, Sisters
of Providence Project, Series C,
LOC (A) (B)
3.250%, 12/01/98 15,100 15,100
-------
40,100
-------
WISCONSIN -- 0.8%
Pleasant Prairie, Industrial
Development Authority RB,
Wisconsin Electric Power
Project, LOC (A) (B)
3.200%, 12/03/98 9,000 9,000
-------
WYOMING -- 1.7%
Uinta County, Pollution Control
RB, Chevron USA Project,
LOC (A) (B)
3.250%, 12/01/98 17,200 17,200
Uinta County, Pollution
Control RB, Chevron USA
Project (A)
3.250%, 12/01/98 1,400 1,400
-------
18,600
-------
TOTAL MUNICIPAL BONDS
(Cost $953,856) 953,856
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TAX-EXEMPT MUNICIPAL
TRUST CERTIFICATES -- 1.6%
Municipal Tax-Exempt Trust
Certificate Class A1-A5
3.500%, 10/06/99 $16,944 $ 16,944
---------
TOTAL TAX-EXEMPT MUNICIPAL
TRUST CERTIFICATES
(Cost $16,944) 16,944
---------
CASH EQUIVALENTS -- 2.4%
Clipper Blue Tax-Exempt Trust,
Series 1995-1, Class A (A) (B)
3.530%, 12/04/98 1,004 1,004
Clipper Blue Tax-Exempt Trust,
Series 1995-2 (A) (B)
3.530%, 12/04/98 2,038 2,038
Clipper Tax-Exempt Trust,
Series A (A) (B)
3.230%, 12/03/98 22,300 22,300
---------
TOTAL CASH EQUIVALENTS
(Cost $25,342) 25,342
---------
REPURCHASE AGREEMENT -- 6.1%
Paine Webber
5.28%, dated 11/30/98, matures
12/01/98, repurchase price
$65,350,278 (collateralized by
U.S. Treasury Instruments:
total market value
$66,649,916) (C) 65,341 65,341
---------
TOTAL REPURCHASE AGREEMENT
(Cost $65,341) 65,341
---------
TOTAL INVESTMENTS -- 99.8%
(Cost $1,061,483) 1,061,483
---------
OTHER ASSETS AND LIABILITIES,
NET -- 0.2% 2,618
---------
14
<PAGE>
BOSTON 1874 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 1,064,237,763 outstanding
shares of beneficial interest $1,064,238
Accumulated net realized loss
on investments (137)
----------
TOTAL NET ASSETS -- 100.0% $1,064,101
==========
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 ON NOVEMBER 30, 1998. THE DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
(B) PUT, DEMAND OR PRE-REFUND FEATURE EXISTS REQUIRING THE ISSUER TO REPURCHASE
THE INSTRUMENT PRIOR TO MATURITY. THE DATE SHOWN IS THE LESSER OF THE PUT,
DEMAND OR PRE-REFUND DATE.
(C) TRI-PARTY REPURCHASE AGREEMENT
AMT--ALTERNATIVE MINIMUM TAX
BAN--BOND ANTICIPATION NOTE
COP--CERTIFICATE OF PARTICIPATION
GO--GENERAL OBLIGATION BOND
LOC--SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY A MAJOR
COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
RB--REVENUE BOND
TECP--TAX EXEMPT COMMERCIAL PAPER
TRAN--TAX AND REVENUE ANTICIPATION NOTE
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR THE
SECURITIES AS SET FORTH IN THE
STATEMENT OF NET ASSETS.
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA--FINANCIAL SECURITY ASSURANCE
GNMA--GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GOA--GENERAL OBLIGATION OF AUTHORITY
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
15
<PAGE>
as of November 30, 1998
BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 17%
U.S. GOVERNMENT AGENCY OBLIGATIONS 34%
CASH EQUIVALENTS 49%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 17.3%
U.S. Treasury Bills (A)
4.519%, 01/21/99 $ 5,000 $ 4,968
4.551%, 01/21/99 8,000 7,949
5.055%, 03/04/99 5,000 4,935
4.390%, 07/22/99 5,000 4,858
U.S. Treasury Notes
5.875%, 01/31/99 10,000 10,007
6.250%, 03/31/99 13,500 13,535
6.375%, 04/30/99 5,000 5,019
6.500%, 04/30/99 5,000 5,036
6.000%, 06/30/99 5,000 5,043
5.875%, 07/31/99 5,000 5,029
------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $66,379) 66,379
------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 33.6%
Federal Home Loan Bank
5.835%, 12/17/98 2,350 2,350
5.010%, 10/06/99 1,500 1,500
5.000%, 10/27/99 8,000 8,000
5.250%, 11/24/99 3,000 3,000
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Federal Home Loan Bank (A)
5.151%, 12/01/98 $ 5,000 $ 5,000
4.827%, 01/20/99 5,000 4,967
4.910%, 02/26/99 4,000 3,996
5.033%, 02/26/99 5,000 4,940
Federal Home Loan Bank (B)
4.995%, 12/01/98 3,000 3,000
5.103%, 12/01/98 5,000 4,998
Federal Home Loan Mortgage
Corporation (A)
4.803%, 01/11/99 5,000 4,973
5.090%, 01/14/99 5,000 4,969
5.109%, 02/10/99 5,000 4,950
4.997%, 02/17/99 9,000 8,904
5.033%, 02/25/99 5,317 5,254
5.159%, 02/26/99 10,000 9,877
5.020%, 11/05/99 5,000 5,000
Federal National Mortgage
Association
5.319%, 12/22/98 1,000 997
5.117%, 01/07/99 3,000 2,984
5.650%, 04/09/99 5,000 5,001
Federal National Mortgage
Association (A)
5.498%, 12/30/98 3,700 3,684
Federal National Mortgage
Association (B)
5.363%, 12/14/98 1,850 1,850
Federal National Mortgage
Association MTN
6.400%, 12/07/98 4,000 4,001
5.770%, 12/17/98 2,000 2,000
Student Loan Marketing
Association
5.510%, 12/16/98 5,000 5,000
Student Loan Marketing
Association (B)
4.770%, 12/01/98 1,100 1,100
4.760%, 12/01/98 11,600 11,599
5.151%, 12/01/98 5,000 5,000
-------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $128,894) 128,894
-------
16
<PAGE>
BOSTON 1874 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 49.2%
Dean Witter
5.13%, dated 11/30/98, matures
12/01/98, repurchase price
$50,007,125 (collateralized
by U.S. Treasury Instruments:
total market value
$51,000,113) (C) $50,000 $ 50,000
First Boston
5.10%, dated 11/30/98, matures
12/01/98, repurchase price
$12,001,700 (collateralized by
U.S. Treasury Notes: total
market value $12,241,981) (C) 12,000 12,000
Goldman Sachs
5.20%, dated 11/30/98, matures
12/01/98, repurchase price
$7,164,208 (collateralized by
U.S. Treasury Instruments:
total market value
$7,306,438) (C) 7,163 7,163
Greenwich Capital
5.25%, dated 11/30/98, matures
12/01/98, repurchase price
$30,004,375 (collateralized
by U.S. Treasury Instruments:
total market value
$30,600,015) (C) 30,000 30,000
J.P. Morgan
5.20%, dated 11/30/98, matures
12/01/98, repurchase price
$50,007,222 (collateralized
by U.S. Treasury Instruments:
total market value
$51,000,017) (C) 50,000 50,000
Prudential
5.25%, dated 11/30/98, matures
12/01/98, repurchase price
$40,005,833 (collateralized
by U.S. Treasury Instruments:
total market value
$40,800,046) (C) 40,000 40,000
-------
TOTAL REPURCHASE AGREEMENTS
(Cost $189,163) 189,163
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.1%
(Cost $384,436) $384,436
--------
OTHER ASSETS AND LIABILITIES,
NET-- (0.1%) (513)
--------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par
value) based on 383,901,889
outstanding shares of beneficial interest 383,902
Undistributed net investment income 11
Accumulated net realized gain
on investments 10
--------
TOTAL NET ASSETS -- 100.0% $383,923
========
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, 1998
(B) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT ON NOVEMBER 30, 1998. 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.
17
<PAGE>
as of November 30, 1998
BOSTON 1784 PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 12%
CASH EQUIVALENTS 6%
CORPORATE BONDS 4%
CERTIFICATES OF DEPOSIT 5%
COMMERCIAL PAPER 60%
TAXABLE MUNICIPAL BONDS 13%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
% OF TOTAL PORTFOLIO INVESTMENTS
COMMERCIAL PAPER -- 60.6%
AUTOMOTIVE -- 1.2%
Daimler Chrysler (A)
4.934%, 12/11/98 $2,000 $1,997
------
BANKS -- 5.6%
Bank of America (A)
5.131%, 01/28/99 4,000 3,967
Norwest (A)
5.120%, 01/22/99 5,000 4,963
------
8,930
------
ENERGY -- 1.2%
Shell Oil (A)
4.879%, 12/02/98 2,000 2,000
------
FINANCIAL SERVICES -- 37.8%
Alpine Securitization (A)
5.013%, 12/09/98 1,282 1,280
5.264%, 01/14/99 2,259 2,245
5.259%, 02/03/99 1,020 1,010
American Express Credit (A)
5.192%, 12/03/98 1,200 1,200
5.089%, 02/24/99 1,800 1,779
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Barton Capital (A)
5.272%, 12/11/98 $2,000 $ 1,997
5.443%, 03/25/99 3,000 2,949
Delaware Funding (A)
5.506%, 01/12/99 3,000 2,981
Fountain Square Funding (A)
5.020%, 12/17/98 5,000 4,989
General Motors Acceptance (A)
5.218%, 01/15/99 1,000 993
5.132%, 01/29/99 3,000 2,975
Greenwich Funding (A)
5.257%, 01/05/99 2,200 2,189
5.652%, 01/15/99 3,000 2,979
Lexington Parker (A)
5.495%, 01/13/99 4,000 3,974
Market Street Funding (A)
5.301%, 12/10/98 2,500 2,497
5.531%, 01/15/99 3,000 2,979
Prudential Funding (A)
5.085%, 12/10/98 5,000 4,994
Receivables Capital (A)
5.450%, 01/29/99 2,590 2,567
Sigma Financial (A)
5.264%, 12/11/98 5,000 4,993
USAA Capital (A)
5.172%, 12/16/98 5,000 4,989
Wood Street Funding (A)
5.520%, 01/29/99 4,000 3,964
------
60,523
------
FOOD, BEVERAGE & TOBACCO -- 3.1%
PepsiCo (A)
4.758%, 12/03/98 5,000 4,999
------
HOUSING -- 3.2%
Virginia State Housing
Development Authority
5.050%, 05/19/99 5,000 5,000
------
TAXABLE MUNICIPALS -- 7.3%
DeKalb County, Georgia,
Emory University
5.580%, 12/09/98 4,200 4,200
18
<PAGE>
BOSTON 1874 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
New York City, New York, FGIC
5.600%, 12/09/98 $1,000 $ 1,000
5.250%, 01/14/99 1,000 1,000
5.260%, 02/03/99 1,600 1,600
5.250%, 02/11/99 1,350 1,350
Minnesota State City
of Saint Paul GO
5.720%, 12/17/98 2,500 2,500
------
11,650
------
UTILITIES -- 1.2%
Lower Colorado River Authority
5.580%, 12/09/98 2,000 2,000
------
TOTAL COMMERCIAL PAPER
(Cost $97,099) 97,099
------
CORPORATE BONDS -- 3.9%
American General
7.700%, 10/15/99 1,150 1,176
Associates Corporation of
North America
6.250%, 03/15/99 570 571
Banc One
5.745%, 05/17/99 500 501
Bank One Wisconsin
5.740%, 05/11/99 500 501
Chase Manhattan Bank
5.875%, 08/04/99 500 500
General Electric Capital
7.010%, 05/05/99 500 504
General Motors Acceptance
5.625%, 02/01/99 1,000 1,000
IBM Credit
5.680%, 05/07/99 500 501
5.575%, 08/27/99 1,000 1,002
------
TOTAL CORPORATE BONDS
(Cost $6,256) 6,256
------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 11.8%
Federal Home Loan Bank
5.835%, 12/17/98 5,000 5,000
5.000%, 10/27/99 5,000 5,000
Federal Home Loan Bank (B)
4.910%, 02/26/99 4,000 3,996
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Federal Home Loan Mortgage
5.200%, 11/24/99 $5,000 $ 5,000
------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $18,996) 18,996
------
TAXABLE MUNICIPAL BONDS -- 12.6%
Barton Healthcare (B)
5.350%, 12/02/98 900 900
Catholic Health Initiatives (B)
5.400%, 12/02/98 1,000 1,000
Community Health System, LOC (B)
4.950%, 12/02/98 950 950
Kit Carson County, Colorado,
Agricultural Development
RB, LOC (B)
5.400%, 12/02/98 2,000 2,000
Los Angeles, California, Community
Redevelopment Agency
Taxable RB, FSA (B)
5.350%, 12/02/98 5,000 5,000
Maryland State Health & Higher
Education Facilities RB,
Series B, LOC (B)
5.350%, 12/03/98 2,300 2,300
Maryland State Health & Higher
Education RB, LOC (B)
5.350%, 12/02/98 4,100 4,100
Olathe, Kansas, Industrial
RB, LOC (B)
5.400%, 12/03/98 4,000 4,000
------
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $20,250) 20,250
------
CERTIFICATES OF DEPOSIT -- 5.0%
Bayerische Landesbank Yankee
5.720%, 05/06/99 4,000 3,999
Societe Generale
5.765%, 04/19/99 4,000 4,000
------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $7,999) 7,999
------
19
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 PRIME MONEY MARKET FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 6.0%
Greenwich Capital
5.25%, dated 11/30/98, matures
12/01/98, repurchase price
$9,644,414 (collateralized by
U.S. Treasury Instruments:
total market value
$9,835,873) (C) $9,643 $ 9,643
--------
TOTAL REPURCHASE AGREEMENT
(Cost $9,643) 9,643
--------
TOTAL INVESTMENTS -- 99.9%
(Cost $160,243) 160,243
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.1% 136
--------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 160,386,098 outstanding
shares of beneficial interest 160,386
Accumulated net realized loss
on investments (7)
--------
TOTAL NET ASSETS-- 100.0% $160,379
========
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, 1998.
(B) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF NOVEMBER 30, 1998. THE DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
(C) TRI-PARTY REPURCHASE AGREEMENT
GO--GENERAL OBLIGATION BOND
LOC--SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY A MAJOR
COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
RB--REVENUE BONDS
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT
SUPPORT FOR A SECURITY LISTED ABOVE.
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FSA--FINANCIAL SECURITY ASSURANCE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 SHORT-TERM INCOME FUND
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 19%
CASH EQUIVALENTS 5%
TAXABLE MUNICIPAL BONDS 5%
ASSET-BACKED SECURITIES 16%
U.S. GOVERNMENT MORTGAGE-BACKED BONDS 2%
U.S. GOVERNMENT AGENCY OBLIGATIONS 4%
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS 5%
CORPORATE BONDS 44%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 18.9%
U.S. Treasury Notes
5.875%, 01/31/99 $ 1,000 $ 1,002
5.875%, 11/15/99 5,279 5,337
7.750%, 11/30/99 4,000 4,118
7.125%, 02/29/00 1,200 1,235
5.500%, 05/31/00 2,500 2,531
6.375%, 09/30/01 11,000 11,497
6.625%, 03/31/02 2,000 2,119
6.625%, 04/30/02 2,831 3,003
5.500%, 03/31/03 2,000 2,064
5.375%, 06/30/03 2,000 2,064
------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $34,271) 34,970
------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.1%
Federal Home Loan Bank
5.625%, 03/19/01 5,500 5,595
Federal National Mortgage
Association
5.750%, 04/15/03 2,000 2,062
------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $7,631) 7,657
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-
BACKED BONDS -- 1.9%
Federal Deposit Insurance
Corporation, REMIC
6.750%, 05/25/26 $1,033 $ 1,033
Federal Home Loan Mortgage
Corporation
8.000%, 01/01/02 205 210
Federal Home Loan Mortgage
Corporation, REMIC
6.500%, 09/15/07 1,401 1,403
7.250%, 04/25/24 230 231
Federal National Mortgage
Association, REMIC
8.950%, 05/25/03 623 642
------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED BONDS
(Cost $3,507) 3,519
------
TAXABLE MUNICIPAL BONDS -- 4.8%
Carondelet, California, Health
Systems RB, Daniel Freeman
Hospitals, MBIA
6.250%, 07/01/01 4,000 4,085
New York State Dormitory
Authority RB
6.550%, 04/01/00 2,500 2,534
Pennsylvania State Housing
Finance Agency RB, FHA
7.000%, 10/01/06 2,015 2,196
------
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $8,513) 8,815
------
NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 4.8%
Bankamerica Manufactured Contrast
Trust III, Series 1997-2,
Class A5
6.390%, 12/10/12 5,500 5,563
CIT RV Owners Trust,
Series 1995-A,
Class A
6.250%, 01/15/11 272 275
Crown Home Equity Loan Trust,
Series 1996-1, Class A3
6.810%, 06/25/11 2,000 2,010
21
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 SHORT-TERM INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS (CONTINUED)
IMC Home Equity Loan Trust,
Series 1996-1, Class A3
6.030%, 09/25/10 $ 555 $ 561
Prudential Home Mortgage
Securities, Series 1993-31,
Class A7
6.000%, 08/25/00 411 410
------
TOTAL NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $8,738) 8,819
------
ASSET-BACKED SECURITIES -- 15.8%
Auto Leasing Investors,
Series 1997,
Class A-2
5.926%, 08/14/00 5,000 5,017
Centrex Auto Trust,
Series 1996-A,
Class A
6.750%, 10/15/04 916 944
Chase Manhattan Auto Owners
Trust, Series 1997-B,
Class A-3
6.350%, 02/15/01 5,000 5,042
Discover Card Master Trust,
Series 1993-2, Class B
5.750%, 11/16/01 5,000 5,003
Firstplus Home Improvement
Loan Trust, Series 1996-3,
Class A2
6.850%, 06/20/07 176 178
Fleetwood Credit Grantor Trust,
Series 1995-B, Class A
6.550%, 05/16/11 727 738
General Motors Acceptance
Corporation Grantor Trust,
Series 1995-A, Class A
7.150%, 03/15/00 53 54
Green Tree Recreational, Equipment
& Consumer Trust, Series 1996-A,
Class A1
5.550%, 02/15/18 353 356
MS Auto Grantor Trust,
Series 1995-1, Class A
6.200%, 07/01/01 43 44
PNC Student Loan Trust I,
Series 1997-2, Class A-5
6.530%, 01/25/03 5,000 5,169
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Reliance Auto Receivables,
Series 1996-A, Class A
6.100%, 07/15/02 $ 550 $ 552
Sears Credit Account Master
Trust, Series 1996-4, Class A
6.450%, 10/16/06 1,000 1,021
University Support Services,
Series 1993-A, Class B (A)
7.350%, 12/20/98 55 56
WFS Financial Owner Trust,
Series 1997-C, Class A4
6.150%, 09/20/02 5,000 5,045
------
TOTAL ASSET-BACKED SECURITIES
(Cost $28,857) 29,219
------
CORPORATE OBLIGATIONS -- 44.0%
FINANCIAL SERVICES -- 29.3%
Associates Corporation of
North America
5.750%, 11/01/03 5,000 5,069
BankAmerica Capital III (A)
5.918%, 01/15/99 5,000 4,822
Cigna, MTN
7.900%, 12/14/98 1,000 1,001
Equitable Companies
Installment Bond
6.750%, 12/01/00 1,080 1,088
Finova Capital
6.500%, 07/28/02 5,000 5,056
First National Bank of
Commerce, MTN
6.500%, 01/14/00 5,000 5,081
Ford Motor Credit
6.000%, 01/14/03 5,000 5,112
General Motors Acceptance
7.875%, 03/07/01 2,000 2,097
5.875%, 01/22/03 2,000 2,018
General Motors Acceptance, MTN
6.040%, 03/19/99 5,000 5,009
Heller Financial
6.460%, 10/27/00 5,000 5,075
MBNA America Bank (A)
5.502%, 02/08/99 5,000 5,004
Nationsbank Capital Trust III,
YB (A)
5.898%, 01/15/99 2,500 2,450
22
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS (CONTINUED)
FINANCIAL SERVICES (CONTINUED)
Salomon Smith Barney Holdings
7.500%, 05/01/02 $5,000 $ 5,238
------
54,120
------
INDUSTRIAL -- 10.7%
American General
7.700%, 10/15/99 5,000 5,107
McKesson
6.600%, 03/01/00 5,000 5,087
Ryder System MTN
7.620%, 09/15/99 3,500 3,553
Sears Roebuck
9.500%, 06/01/99 1,000 1,019
Williams
7.500%, 09/15/99 5,000 5,063
------
19,829
------
PAPER & PAPER PRODUCTS -- 3.5%
International Paper Company MTN
6.410%, 08/09/99 6,500 6,532
------
UTILITY -- 0.5%
Narragansett Electric
6.630%, 08/12/99 1,000 1,008
------
TOTAL CORPORATE OBLIGATIONS
(Cost $80,727) 81,489
------
REPURCHASE AGREEMENT -- 5.1%
Dean Witter
5.13%, dated 11/30/98, matures
12/01/98, repurchase price
$9,459,102 (collateralized
by U.S. Treasury Instruments:
total market value
$9,646,930) (B) 9,458 9,458
------
TOTAL REPURCHASE AGREEMENT
(Cost $9,458) 9,458
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.4%
(Cost $181,702) $183,946
--------
OTHER ASSETS AND LIABILITIES,
NET -- 0.6% 1,071
------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 18,202,830 outstanding
shares of beneficial interest 194,808
Undistributed net investment income 11
Accumulated net realized loss
on investments (12,046)
Net unrealized appreciation on investments 2,244
--------
TOTAL NET ASSETS -- 100.0% $185,017
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.16
========
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT ON NOVEMBER 30, 1998. THE DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
(B) TRI-PARTY REPURCHASE AGREEMENT
MTN--MEDIUM TERM NOTE
RB--REVENUE BOND
REMIC--REAL ESTATE MORTGAGE INVESTMENT CONDUIT
YB--YANKEE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING
CREDIT SUPPORT FOR THE SECURITIES AS SET FORTH IN THE STATEMENT OF NET ASSETS.
FHA--FEDERAL HOUSING ADMINISTRATION
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
23
<PAGE>
AS OF NOVEMBER 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 INCOME FUND
- --------------------------------------------------------------------------------
YANKEE BONDS 1%
CASH EQUIVALENTS 3%
ASSET-BACKED SECURITIES 3%
U.S. GOVERNMENT AGENCY OBLIGATIONS 6%
CORPORATE OBLIGATIONS 21%
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS 5%
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS 24%
U.S. TREASURY OBLIGATIONS 37%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.1%
Federal Home Loan Bank
5.625%, 03/19/01 4,000 4,069
Federal Home Loan
Mortgage Corporation
7.740%, 06/01/04 2,000 2,025
8.530%, 02/02/05 5,000 5,199
Federal National
Mortgage Association
5.750%, 04/15/03 1,000 1,031
5.750%, 06/15/05 10,000 10,380
------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $22,580) 22,704
------
U.S. TREASURY OBLIGATIONS -- 36.1%
U.S. Treasury Bonds
7.875%, 02/15/21 6,460 8,570
8.000%, 11/15/21 9,250 12,477
6.000%, 02/15/26 700 770
5.500%, 08/15/28 2,000 2,114
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
U.S. Treasury Notes
5.875%, 01/31/99 $11,550 $ 11,573
6.750%, 06/30/99 5,000 5,060
5.625%, 11/30/99 1,510 1,524
5.625%, 12/31/99 1,367 1,381
5.500%, 12/31/00 13,175 13,407
6.625%, 06/30/01 5,000 5,240
6.250%, 10/31/01 17,305 18,046
5.875%, 09/30/02 8,000 8,331
5.500%, 02/28/03 1,000 1,031
5.750%, 08/15/03 6,130 6,405
5.625%, 02/15/06 6,000 6,317
6.500%, 10/15/06 23,250 25,751
6.125%, 08/15/07 5,846 6,370
------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $129,367) 134,367
-------
U.S. AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 24.0%
Federal Home Loan
Mortgage Corporation
7.750%, 09/01/05 656 684
6.000%, 11/01/28 18,000 17,778
Federal National
Mortgage Association
6.500%, 05/01/11 3,616 3,669
6.000%, 03/01/13 951 952
6.000%, 04/01/13 954 955
6.000%, 05/01/13 1,939 1,942
6.000%, 06/01/13 12,555 12,567
6.500%, 06/01/28 4,870 4,904
Federal National Mortgage
Association, REMIC
7.000%, 09/18/14 5,000 5,228
6.000%, 12/25/16 2,108 2,098
Government National
Mortgage Association
7.000%, 10/15/23 1,329 1,361
8.000%, 06/15/25 172 179
8.000%, 10/15/25 210 219
8.000%, 01/15/26 122 128
8.000%, 02/15/26 135 141
7.500%, 04/15/26 3,484 3,601
8.000%, 05/15/26 70 73
24
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
Government National
Mortgage Association (CONTINUED)
8.000%, 05/15/26 $ 120 $ 125
7.000%, 06/15/26 5,530 5,667
8.000%, 06/15/26 527 549
7.500%, 02/15/27 66 69
8.000%, 03/15/27 1,394 1,452
6.500%, 05/15/28 8,820 8,912
6.500%, 06/15/28 10,768 10,881
7.125%, 01/15/29 5,104 5,280
------
TOTAL U.S. AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $87,078) 89,414
------
ASSET-BACKED SECURITIES -- 3.3%
Fleetwood Credit Grantor Trust,
Series 1995-B, Class A
6.550%, 05/16/11 1,091 1,108
Green Tree Financial,
Series 1995-5, Class M1
7.650%, 09/15/26 5,000 5,377
Nomura Asset Securities,
Series 1996-MD5, Class A1B
7.120%, 04/13/36 5,000 5,393
Standard Credit Card Master
Trust, Series 1993-3, Class A
5.500%, 02/07/00 500 500
------
TOTAL ASSET-BACKED SECURITIES
(Cost $11,599) 12,378
------
NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 4.9%
AFC Home Equity Loan Trust,
Series 1996-3, Class 1A4
7.540%, 12/25/27 4,999 5,197
Merrill Lynch Mortgage Investors,
Series 1989-H, Class B
10.000%, 01/15/10 3,163 3,197
Merrill Lynch Mortgage Investors,
Series 1994-G, Class A3
8.350%, 05/15/14 5,000 5,826
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Oakwood Mortgage Investors,
Series 1995-B, Class A3
6.900%, 01/15/21 $4,040 $ 4,102
------
TOTAL NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $17,207) 18,322
------
CORPORATE OBLIGATIONS -- 20.6%
BANKS -- 1.0%
Union Planters
6.750%, 11/01/05 750 769
6.500%, 03/15/08 3,000 3,019
------
3,788
------
FINANCIAL SERVICES -- 7.0%
Associates Corporation
of North America
5.750%, 11/01/03 4,000 4,055
First Security
6.875%, 11/15/06 5,000 5,219
First Union (A)
6.550%, 10/15/05 6,000 6,225
Fleet Mortgage Group
6.500%, 09/15/99 3,400 3,433
General Motors Acceptance
5.750%, 11/10/03 1,760 1,769
Safeco
6.875%, 07/15/07 5,000 5,169
------
25,870
------
INDUSTRIAL -- 10.0%
American Home Products
7.700%, 02/15/00 5,960 6,131
Baxter International
6.625%, 02/15/28 3,000 3,120
Burlington North
9.250%, 10/01/06 5,070 6,160
Fortune Brands
6.250%, 04/01/08 3,600 3,762
General Motors
9.125%, 07/15/01 5,000 5,425
H.J. Heinz
6.000%, 03/15/08 3,500 3,636
25
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
INDUSTRIAL (CONTINUED)
Masco
6.625%, 04/15/18 $ 5,700 $5,600
McKesson (B)
6.300%, 03/01/05 3,200 3,212
------
37,046
------
INSURANCE -- 2.4%
Prudential Insurance
6.375%, 07/23/06 5,000 5,044
Vesta Insurance Group
8.750%, 07/15/25 3,855 3,816
------
8,860
------
RETAIL -- 0.2%
Gap
6.900%, 09/15/07 685 740
------
TOTAL CORPORATE OBLIGATIONS
(Cost $75,154) 76,304
------
YANKEE BONDS -- 1.3%
Hydro-Quebec
7.375%, 02/01/03 1,000 1,060
Trans-Canada Pipelines
9.125%, 04/20/06 3,340 3,883
------
TOTAL YANKEE BONDS
(Cost $4,790) 4,943
------
REPURCHASE AGREEMENT -- 3.1%
Dean Witter
5.13%, dated 11/30/98, matures
12/01/98, repurchase price
$11,366,908 (collateralized
by U.S. Treasury Instruments:
total market value
$11,592,619) (C) 11,365 11,365
------
TOTAL REPURCHASE AGREEMENT
(Cost $11,365) 11,365
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.4%
(Cost $359,140) $369,797
--------
OTHER ASSETS AND LIABILITIES,
NET -- 0.6% 2,388
--------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 35,614,983 outstanding
shares of beneficial interest 358,932
Undistributed net investment income 683
Accumulated net realized gain
on investments 1,913
Net unrealized appreciation on investments 10,657
--------
TOTAL NET ASSETS -- 100.0% $372,185
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.45
========
(A) MANDATORY PUT SECURITY. THE MANDATORY PUT DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
(B) 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 INVESTORS.
(C) TRI-PARTY REPURCHASE AGREEMENT
REMIC--REAL ESTATE MORTGAGE INVESTMENT CONDUIT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 41%
CASH EQUIVALENTS 3%
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS 10%
U.S. GOVERNMENT AGENCY OBLIGATIONS 38%
ASSET-BACKED SECURITIES 1%
U.S. GOVERNMENT GUARANTEED SECURITIES 7%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 40.2%
U.S. Treasury Bonds
11.250%, 02/15/15 $ 700 $ 1,175
6.000%, 02/15/26 6,100 6,707
U.S. Treasury Notes
5.375%, 01/31/00 2,800 2,823
5.500%, 02/29/00 1,000 1,010
5.500%, 03/31/00 9,100 9,200
8.000%, 05/15/01 2,000 2,154
6.625%, 07/31/01 4,463 4,684
6.250%, 10/31/01 2,000 2,086
7.500%, 11/15/01 1,600 1,725
6.250%, 01/31/02 2,000 2,092
6.250%, 06/30/02 19,000 19,972
6.000%, 07/31/02 1,000 1,044
5.500%, 02/28/03 15,000 15,464
5.250%, 08/15/03 10,000 10,282
7.500%, 02/15/05 15,000 17,175
6.250%, 02/15/07 770 845
6.625%, 05/15/07 500 561
6.125%, 08/15/07 8,800 9,589
U.S. Treasury STRIPS (A)
6.919%, 08/15/10 1,000 549
10.213%, 05/15/20 5,000 1,551
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $107,417) $110,688
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 37.6%
Agency of Housing and Urban
Development, Series 1995-A
8.240%, 08/01/02 $2,000 2,190
Agency of Housing and Urban
Development, Series 1997-A
6.210%, 08/01/01 4,000 4,125
6.360%, 08/01/04 5,500 5,794
CABEI AID
6.620%, 10/29/12 10,000 10,612
Costa Rica AID
7.360%, 08/01/01 1,320 1,373
Federal Farm Credit Bank
8.650%, 10/01/99 1,900 1,956
6.900%, 04/01/02 5,000 5,030
7.350%, 03/24/05 350 390
Federal Home Loan Bank
5.500%, 04/14/00 5,000 5,041
5.625%, 03/19/01 5,000 5,086
6.580%, 01/07/03 3,000 3,072
7.660%, 07/20/04 350 394
Federal Home Loan
Mortgage Corporation
5.750%, 07/15/03 3,500 3,610
7.000%, 07/15/03 1,340 1,350
7.000%, 10/01/03 134 137
8.530%, 02/02/05 1,000 1,040
7.340%, 11/03/06 1,000 1,019
Federal National Mortgage
Association
5.750%, 04/15/03 12,400 12,785
7.550%, 06/10/04 1,500 1,519
7.400%, 07/01/04 725 805
6.580%, 03/01/06 1,000 1,027
8.000%, 07/01/07 251 260
6.000%, 05/15/08 5,250 5,528
6.500%, 05/01/11 1,808 1,835
7.785%, 02/01/19 4,864 5,901
10.000%, 10/01/20 2,032 2,203
10.000%, 12/01/20 3,157 3,423
27
<PAGE>
AS OF NOVEMBER 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS (CONTINUED)
Private Export Funding
Corporation
5.500%, 03/15/01 $2,500 $ 2,528
6.310%, 09/30/04 7,000 7,472
6.620%, 10/01/05 1,740 1,879
7.110%, 04/15/07 2,000 2,238
Tennessee Valley Authority
Principal STRIPS (A)
7.813%, 04/15/42 4,000 1,941
-------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $99,423) 103,563
-------
U.S. GOVERNMENT MORTGAGE-
BACKED BONDS -- 9.3%
Federal Deposit Insurance
Corporation, REMIC
6.750%, 05/25/26 2,582 2,582
Federal Home Loan Mortgage
Corporation Gold
7.000%, 12/01/10 1,527 1,562
Federal Home Loan Mortgage
Corporation, REMIC
6.500%, 09/15/07 1,282 1,284
6.750%, 02/15/20 1,080 1,116
Federal National Mortgage
Association
6.000%, 04/01/13 11,397 11,409
6.000%, 06/01/13 144 145
Government National Mortgage
Association
8.500%, 10/15/04 96 102
8.500%, 01/15/06 61 65
9.000%, 11/15/17 1,029 1,109
7.000%, 10/15/23 760 779
7.500%, 02/15/27 1,839 1,901
Student Loan Marketing
Association (B)
5.100%, 12/01/98 3,537 3,499
-------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED BONDS
(Cost $25,251) 25,553
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT GUARANTEED
BONDS -- 7.1%
Global Industries
7.250%, 07/15/22 $ 11,834 $13,686
Rochester, New York, U.S.
Government Note, Series 1991-A
5.930%, 08/01/99 100 101
Secunda Atlantic Title XI
6.695%, 04/01/18 4,000 4,225
Sulphur Carriers
8.300%, 10/15/09 1,496 1,589
-------
TOTAL U.S. GOVERNMENT
GUARANTEED BONDS
(Cost $17,136) 19,601
-------
ASSET-BACKED SECURITY -- 1.4%
PNC Student Loan Trust I,
Series 1997-2, Class A-2
6.138%, 01/25/00 3,698 3,760
-------
TOTAL ASSET-BACKED SECURITY
(Cost $3,698) 3,760
-------
NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 0.1%
Ryland Acceptance Four,
Series 32, Class B
8.600%, 05/01/16 306 311
-------
TOTAL NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $316) 311
-------
REPURCHASE AGREEMENT -- 3.3%
Dean Witter
5.13%, dated 11/30/98,
matures 12/01/98, repurchase
price $9,014,300 (collateralized
by U.S. Treasury Instruments:
total market value
$9,193,297) (C) 9,013 9,013
-------
TOTAL REPURCHASE AGREEMENT
(Cost $9,013) 9,013
-------
28
<PAGE>
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.0%
(Cost $262,254) $272,489
--------
OTHER ASSETS AND LIABILITIES,
NET-- 1.0% 2,679
--------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 27,986,174 outstanding
shares of beneficial interest 270,781
Accumulated net realized loss
on investments (5,034)
Net unrealized appreciation
on investments 10,235
Distributions in excess of
net investment income (814)
--------
TOTAL NET ASSETS -- 100.0% $275,168
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.83
========
(A) ZERO COUPON SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE EFFECTIVE YIELD AS OF NOVEMBER 30, 1998.
(B) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT ON NOVEMBER 30, 1998. THE DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
(C) TRI-PARTY REPURCHASE AGREEMENT
AID--AGENCY FOR INTERNATIONAL DEVELOPEMENT
REMIC--REAL ESTATE MORTGAGE INVESTMENT CONDUIT
STRIPS--SEPARATELY TRADED REGISTERED INTEREST AND PRINCIPAL SECURITIES
29
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
- --------------------------------------------------------------------------------
HEALTHCARE BONDS 8%
CASH EQUIVALENTS 3%
TRANSPORTATION BONDS 6%
PUBLIC FACILITY BONDS 3%
GENERAL OBLIGATION BONDS 34%
INDUSTRIAL DEVELOPMENT & POLLUTION CONTROL BONDS 1%
OTHER REVENUE BONDS 8%
RESOURCE RECOVERY BONDS 2%
HOUSING BONDS 9%
EDUCATIONS BONDS 4%
UTILITY BONDS 20%
ALTERNATIVE MINIMUM TAX BONDS 2%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.2%
ALABAMA -- 1.6%
Alabama State Housing Finance
Authority RB, Series D-1, GNMA
6.000%, 10/01/16 $ 975 $1,033
Alabama State Public School &
College Authority RB
5.000%, 11/01/12 2,500 2,591
Alabama State Water Pollution
Control Authority RB, AMBAC
5.000%, 02/15/13 1,500 1,523
------
5,147
------
ARKANSAS -- 0.3%
Arkansas State GO
5.000%, 06/01/15 1,000 1,009
------
CALIFORNIA -- 7.1%
Burbank, Wastewater Treatment
RB, Series A, FGIC
5.500%, 06/01/15 1,500 1,592
California State GO
5.250%, 06/01/11 1,000 1,061
5.000%, 02/01/14 5,500 5,631
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
California State GO, FGIC
5.250%, 10/01/10 $2,000 $2,145
California State GO,
Series BH, AMT, FSA
5.250%, 12/01/12 4,350 4,431
California State Home Mortgage
RB, Series A, MBIA
5.850%, 08/01/16 2,000 2,115
California State Housing
Finance Agency RB,
Home Mortgage, MBIA
5.950%, 08/01/10 1,830 1,949
California State GO
5.250%, 10/01/09 1,500 1,633
Los Angeles County, Metropolitan
Transportation Authority
RB, AMBAC
5.700%, 07/01/12 1,135 1,243
San Francisco, City & County
Sewer RB, Series A, FGIC
5.700%, 10/01/11 1,000 1,084
------
22,884
------
COLORADO -- 1.0%
Denver, Multi-Family Housing
RB, Section 8, Series A
5.350%, 10/01/12 2,000 2,053
Goldsmith, Metropolitan
District GO, MBIA
6.125%, 12/01/12 1,000 1,076
------
3,129
------
CONNECTICUT -- 1.2%
Connecticut State Health &
Education Facilities RB,
Series D, GOI
6.750%, 07/01/12 1,250 1,366
Connecticut State Housing
Finance Authority RB,
Series A, GOA
6.100%, 05/15/17 1,000 1,057
Connecticut State Higher Education
Supplemental Loan Authority
RB, Family Education Loan
Program, Series A
5.625%, 11/15/07 1,315 1,340
------
3,763
------
30
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
DISTRICT OF COLUMBIA -- 1.1%
District of Columbia GO,
Series A, MBIA
5.000%, 06/01/15 $2,500 $2,503
Georgetown University RB,
Series A, MBIA
5.950%, 04/01/14 1,000 1,115
------
3,618
------
FLORIDA -- 2.7%
Dade County GO, Series EE, FGIC
5.625%, 10/01/14 2,560 2,752
Dade County, Special Obligation
RB, Courthouse Center Project
5.900%, 04/01/10 1,500 1,628
Florida State Board of Education
GO, Series E
5.700%, 06/01/14 2,000 2,125
Jacksonville, Electric Authority RB
5.500%, 10/01/13 2,000 2,092
------
8,597
------
GEORGIA -- 1.3%
Georgia State Municipal Electric
Authority RB, MBIA
5.125%, 01/01/12 3,000 3,101
Georgia State Municipal Electric
Authority Special Obligation
RB, Series DD, AMBAC
7.000%, 01/01/08 1,000 1,203
------
4,304
------
ILLINOIS -- 1.0%
Chicago, O'Hare International
Airport RB, AMBAC
5.625%, 01/01/12 2,000 2,165
Illinois State Health Facilities
Authority RB, Rockford Health
Systems, AMBAC
5.125%, 08/15/15 1,000 1,016
------
3,181
------
INDIANA -- 0.8%
Marion County, Hospital Authority
RB, Methodist Hospital of Indiana
6.500%, 09/01/13 2,450 2,545
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
LOUISIANA -- 2.6%
Louisiana State GO, FSA
5.000%, 04/15/14 $2,000 $2,027
Louisiana State Public
Improvements GO, FSA
5.500%, 04/15/07 2,750 2,998
New Orleans, Levee District
RB, Series A, FSA
5.950%, 11/01/14 3,080 3,430
------
8,455
------
MAINE -- 2.4%
Maine Municipal Bond
Bank RB, FSA
5.150%, 11/01/13 1,250 1,286
Maine State Health & Higher
Educational Facilities
Authority RB, MBIA
5.000%, 07/01/11 1,680 1,735
Maine State Housing Authority
RB, Series C-1
5.700%, 11/15/15 2,000 2,087
Maine State Housing Authority
RB, Series F-1, HUD
5.125%, 11/15/15 1,300 1,303
Maine State Municipal Bond
Bank RB, Series A, LOC
5.700%, 11/01/13 1,090 1,150
------
7,561
------
MARYLAND -- 1.8%
Maryland State & Local
Facilities GO, 1st Series
5.000%, 03/01/10 1,500 1,583
Maryland State GO
5.000%, 07/15/10 4,000 4,240
------
5,823
------
MASSACHUSETTS -- 16.5%
Boston City Hospital Project
RB, Series B, FHA
5.750%, 02/15/13 1,300 1,336
Boston City Hospital Project
RB, Series B, MBIA
5.750%, 02/15/13 1,500 1,562
31
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Holyoke GO, Series A, FSA
5.600%, 06/15/10 $1,365 $1,478
Massachusetts State Bay
Transportation Authority
RB, Series C
5.500%, 03/01/08 3,000 3,267
Massachusetts State GO
5.250%, 08/01/14 8,000 8,360
Massachusetts State GO, AMBAC
5.000%, 08/01/14 2,500 2,534
Massachusetts State GO, Series A
5.000%, 11/01/13 1,200 1,225
Massachusetts State GO,
Series A, MBIA
5.000%, 04/01/14 4,650 4,714
Massachusetts State GO,
Series B, FGIC
5.500%, 06/01/11 2,000 2,143
Massachusetts State GO,
Series C
5.250%, 08/01/08 1,500 1,628
5.250%, 08/01/13 1,500 1,573
Massachusetts State Health &
Educational Facilities Authority
RB, Dana Farber Cancer
Project, Series G-1
6.250%, 12/01/08 1,000 1,111
Massachusetts State Health &
Educational Facilities Authority
RB, Eye & Ear Infirmary, Series B
5.250%, 07/01/11 1,000 1,030
Massachusetts State Health &
Educational Facilities Authority
RB, Medical, Academic &
Scientific Project, Series A
6.200%, 01/01/03 1,140 1,225
6.250%, 01/01/05 1,060 1,170
Massachusetts State Health &
Educational Facilities Authority
RB, Suffolk University Project,
Series C, CONLEE
5.850%, 07/01/16 1,000 1,085
Massachusetts State Housing
Finance Agency RB, Series 44
5.900%, 12/01/13 1,000 1,051
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
Massachusetts State Housing
Finance Agency RB,
Series A, MBIA
5.600%, 07/01/07 $ 475 $ 513
5.700%, 07/01/08 475 513
Massachusetts State Industrial
Finance Agency RB, College
Issue, CONLEE
5.875%, 07/01/11 1,090 1,200
Massachusetts State Industrial
Finance Agency RB,
Resource Recovery
4.950%, 12/01/06 1,710 1,736
Massachusetts State Industrial
Finance Agency RB, Resource
Recovery, Ogden Haverhill
Project AMT
5.150%, 12/01/07 1,250 1,252
Massachusetts State Municipal
Wholesale Electric
Company RB, AMBAC
5.150%, 07/01/16 2,000 2,013
Massachusetts State Public
Improvements GO
5.000%, 01/01/12 1,350 1,380
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 3,441
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System,
Sub-Series B, MBIA
5.250%, 01/01/17 1,000 1,021
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System,
Series C, MBIA (A)
4.932%, 01/01/16 1,000 435
Massachusetts State Turnpike
Authority RB, Series A
5.000%, 01/01/12 1,250 1,261
------
52,942
------
32
<PAGE>
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MICHIGAN -- 0.5%
Michigan State Hospital Finance
Authority RB, Oakwood Hospital
Group Project, Series A, FGIC
5.400%, 11/01/07 $1,500 $1,599
------
MINNESOTA -- 2.4%
Minnesota State GO
5.000%, 06/01/14 5,000 5,125
Northern Minnesota State
Municipal Power Agency RB,
Electric System, FSA
5.250%, 01/01/12 2,490 2,661
------
7,786
------
MISSISSIPPI -- 2.1%
Mississippi State Capital
Imports GO, Series A
5.000%, 07/01/09 1,000 1,057
Mississippi State GO
5.000%, 06/01/15 3,645 3,677
Mississippi State GO, FGIC
5.000%, 11/01/09 2,000 2,145
------
6,879
------
MISSOURI -- 1.0%
St. Charles County, Public
Water Supply District #2
COP, Series A, MBIA
5.500%, 12/01/14 3,000 3,128
------
NEBRASKA -- 0.9%
Nebraska State Investment
Finance Authority RB,
Childrens Healthcare
Services, AMBAC
5.500%, 08/15/17 1,435 1,514
Nebraska State Public Power
Supply System RB,
Series B, MBIA
5.250%, 01/01/13 1,190 1,273
------
2,787
------
NEVADA -- 0.8%
Nevada State GO
5.000%, 05/15/15 2,500 2,531
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
NEW HAMPSHIRE -- 1.7%
New Hampshire State Higher
Education & Health Facilities
Authority RB, Dartmouth
Education Loan Remarketing
5.300%, 06/01/15 $1,045 $1,083
New Hampshire State Higher
Education & Health Facilities
Authority RB, LOC
5.800%, 10/01/12 1,000 1,034
New Hampshire State Housing
Finance Authority RB,
Series B, FHA
5.850%, 07/01/10 1,000 1,050
New Hampshire State RB
5.000%, 08/15/13 2,050 2,121
------
5,288
------
NEW YORK -- 10.8%
Metropolitan Transportation
Authority RB, Commuter
Facilities, Series A, FGIC
5.750%, 07/01/11 1,000 1,105
Metropolitan Transportation
Authority RB, Transportation
Service Contract, Series R
5.500%, 07/01/14 1,740 1,831
New York City GO
5.000%, 08/01/14 4,000 4,010
5.000%, 08/15/14 1,000 1,002
New York City GO, Series A
6.250%, 08/01/08 2,000 2,267
New York City GO, Series B
6.200%, 08/15/06 1,250 1,402
New York City GO, Series C
5.250%, 08/15/11 2,080 2,174
New York City GO, Series D
6.000%, 02/15/09 1,000 1,090
6.000%, 02/15/12 1,220 1,316
New York City GO, Series D (B)
6.000%, 02/15/05 280 313
New York City GO, Series F
5.250%, 08/01/14 3,000 3,071
New York City GO, Series F (B)
6.500%, 02/15/05 765 875
33
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York City Transitional
Finance Authority RB, Series A
5.000%, 08/15/13 $1,350 $ 1,377
New York Metropolitan Transit
Authority Commuter
Facilities RB, Series A, FSA
5.500%, 07/01/15 1,530 1,622
New York State Dormitory
Authority RB, City University
System Consolidated,
Third-1, FGIC
5.250%, 07/01/13 1,580 1,659
New York State Dormitory
Authority RB, Series A, STGTD
5.500%, 05/15/10 1,000 1,058
New York State Environmental
Quality GO
5.125%, 01/15/16 2,000 2,033
New York State GO, Series C,
AMBAC
5.375%, 10/01/11 3,000 3,176
New York State Housing
Finance Agency RB,
Series A, FSA
5.800%, 11/01/09 1,720 1,855
New York State Urban
Development Authority RB,
Youth Facilities Project, MBIA
5.700%, 04/01/14 1,505 1,601
------
34,837
------
NORTH CAROLINA -- 2.9%
North Carolina State, Eastern
Municipal Power Agency RB
6.000%, 01/01/14 4,000 4,165
5.600%, 01/01/16 2,000 2,030
North Carolina State, Eastern
Municipal Power
Agency RB, FGIC
6.000%, 01/01/13 2,000 2,173
North Carolina State, Eastern
Municipal Power Agency RB,
Series D
5.875%, 01/01/14 1,035 1,071
------
9,439
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
OHIO -- 2.0%
Franklin County Hospital
RB, AMBAC
5.750%, 05/15/12 $2,100 $ 2,250
Ohio State Building Authority
RB, Adult Correctional
Facilities Project, MBIA
5.700%, 10/01/06 1,000 1,096
Ohio State Public Facilities
Commission RB, Higher
Education Authority, Series II-A
5.000%, 05/01/08 2,900 3,059
------
6,405
------
PENNSYLVANIA -- 6.2%
Pennsylvania State GO
5.250%, 06/15/12 2,155 2,249
Pennsylvania State GO,
1st Series, AMBAC
5.125%, 03/15/12 2,000 2,080
Pennsylvania State Higher
Education & Health
Services RB, Series A
5.750%, 01/01/12 1,300 1,388
Pennsylvania State Higher
Education Facilities
Authority RB, MBIA
5.250%, 01/01/13 2,000 2,072
Pennsylvania State Housing
Finance Agency RB, Single
Family Mortgages, Series A
6.000%, 10/01/13 2,000 2,128
Pennsylvania State Turnpike
Commission RB, Series A, AMBAC
5.500%, 12/01/12 1,450 1,591
Philadelphia, Airport RB, FGIC
5.375%, 06/15/14 3,000 3,098
Philadelphia, Water and
Wastewater Projects RB, FGIC
5.650%, 06/15/12 5,000 5,294
------
19,900
------
PUERTO RICO -- 4.5%
Puerto Rico Commonwealth GO
5.500%, 07/01/12 2,000 2,185
5.750%, 07/01/17 2,000 2,150
34
<PAGE>
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
Puerto Rico Electric
Power Authority RB
5.500%, 07/01/16 $3,000 $ 3,109
Puerto Rico Electric Power
Authority RB, MBIA
5.250%, 07/01/07 3,000 3,266
Puerto Rico Electric Power
Authority RB, Series CC, FSA
5.000%, 07/01/10 2,435 2,593
Puerto Rico Public Education
& Health Facilities RB,
Series M, CGTD
5.750%, 07/01/15 1,000 1,054
------
14,357
------
RHODE ISLAND -- 3.9%
Central Falls, Rhode Island
Detention Facility RB
5.250%, 01/15/13 1,505 1,541
Rhode Island State Depositors
Economic Protection RB,
Series B, MBIA
5.800%, 08/01/09 1,000 1,127
Rhode Island State GO
5.000%, 09/01/12 1,000 1,033
Rhode Island State Health &
Educational Building RB,
Higher Education Facility,
Roger Williams, AMBAC
5.125%, 11/15/14 1,000 1,020
Rhode Island State Health &
Educational Building RB,
Landmark Medical Project, FSA
5.600%, 10/01/12 1,000 1,061
Rhode Island State Housing &
Mortgage Finance RB,
Series 15B
6.100%, 10/01/05 500 536
6.200%, 10/01/06 1,110 1,185
Rhode Island State Housing &
Mortgage Finance RB,
Series 19A
5.700%, 04/01/15 2,500 2,584
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
Rhode Island State Housing &
Mortgage Finance RB,
Series 7B, AMT
6.700%, 10/01/12 $1,750 $ 1,866
Rhode Island State Housing &
Mortgage Finance RB,
Series A, AMBAC
5.700%, 07/01/07 685 741
------
12,694
------
SOUTH CAROLINA -- 0.4%
South Carolina State Public
Service Authority RB,
Series B, FGIC
5.875%, 01/01/14 1,150 1,264
------
TEXAS -- 3.1%
Dallas RB, Texas Civic Center
Refunding & Improvement, MBIA
5.000%, 08/15/16 3,000 3,011
Tarrant County, Health Facilities
Authority RB, Harris Methodist
Health System Project,
Series A, AMBAC
5.125%, 09/01/12 2,700 2,791
Texas A&M University RB
5.200%, 05/15/10 2,580 2,709
Texas State GO, Series A
5.750%, 10/01/08 1,280 1,395
------
9,906
------
VERMONT -- 0.6%
Vermont State Educational &
Health Buildings RB, Medical
Center Hospital of Vermont
Project, FGIC
5.750%, 09/01/07 1,800 1,937
------
VIRGINIA -- 0.6%
Virginia State Housing
Development Authority
RB, Series H
5.700%, 11/01/07 1,655 1,783
------
35
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
WASHINGTON -- 10.1%
Washington State Public Power
Supply Systems RB, Nuclear
Power Project No. 1, FSA
5.400%, 07/01/12 $7,800 $ 8,122
Washington State Public Power
Supply Systems RB, Nuclear
Power Project No. 1, Series B
5.125%, 07/01/13 4,000 4,065
Washington State Public Power
Supply Systems RB, Nuclear
Power Project No. 2, FGIC
5.550%, 07/01/10 2,500 2,637
Washington State Public Power
Supply Systems RB, Nuclear
Power Project No. 2, Series A
6.100%, 07/01/06 1,030 1,154
Washington State Public Power
Supply Systems RB, Nuclear
Power Project No. 3, Series A, FSA
5.100%, 07/01/10 1,395 1,454
Washington State Public Power
Supply Systems RB, Nuclear
Project No 2, Series A, FSA
5.000%, 07/01/11 10,115 10,494
Washington State Public Power
Supply Systems RB, Nuclear
Project No. 1, Series A
5.000%, 07/01/13 2,000 2,013
Washington State Public Power
Supply Systems RB, Nuclear
Project No. 2, Series A, FSA
5.125%, 07/01/11 1,000 1,040
6.250%, 07/01/12 425 458
Washington State Public Power
Supply Systems RB, Nuclear
Project No. 1, Series A
5.000%, 07/01/11 1,000 1,021
------
32,458
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
WEST VIRGINIA -- 0.3%
West Virginia State GO
5.000%, 06/01/14 $1,000 $1,010
-------
WISCONSIN -- 1.0%
Wisconsin State Housing &
Economic Development
Authority RB, Home
Ownership, Series E, GOA
5.900%, 09/01/16 1,000 1,052
Wisconsin State Housing &
Economic Development
Authority RB, Series C, GOA
5.800%, 11/01/13 2,125 2,218
-------
3,270
-------
TOTAL MUNICIPAL BONDS
(Cost $297,452) 312,216
-------
REPURCHASE AGREEMENT -- 3.6%
Dean Witter
5.13%, dated 11/30/98,
matures 12/01/98, repurchase
price $11,421,536 (collateralized
by U.S. Treasury Instruments:
total market value
$11,648,333) (C) 11,420 11,420
-------
TOTAL REPURCHASE AGREEMENT
(Cost $11,420) 11,420
-------
TOTAL INVESTMENTS -- 100.8%
(Cost $308,872) 323,636
-------
OTHER ASSETS AND LIABILITIES,
NET -- (0.8%) (2,514)
-------
36
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 30,075,419 outstanding
shares of beneficial interest $299,393
Accumulated net realized gain
on investments 6,965
Net unrealized appreciation on investments 14,764
--------
TOTAL NET ASSETS -- 100.0% $321,122
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.68
========
(A) ZERO COUPON BOND. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE
EFFECTIVE YIELD AS OF NOVEMBER 30, 1998.
(B) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
(C) TRI-PARTY REPURCHASE AGREEMENT
AMT--ALTERNATIVE MINIMUM TAX
COP--CERTIFICATE OF PARTICIPATION
GO--GENERAL OBLIGATION BOND
HUD--DEPARTMENT OF HOUSING & URBAN DEVELOPMENT
LOC--SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF
CREDIT ISSUED BY A MAJOR COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING
CREDIT SUPPORT FOR THE SECURITIES AS SET FORTH IN THE STATEMENT
OF NET ASSETS.
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
CGTD--COMMONWEALTH GUARANTEED
CONLEE--COLLEGE CONSTRUCTION LOAN INSURANCE
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FHA--FEDERAL HOUSING ADMINISTRATION
FSA--FINANCIAL SECURITY ASSURANCE
GNMA--GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GOA--GENERAL OBLIGATION OF AUTHORITY
GOI--GENERAL OBLIGATION OF INSTITUTION
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
STGTD--STATE GUARANTEED
37
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
- --------------------------------------------------------------------------------
HOUSING BONDS 10%
UTILITY BONDS 3%
EDUCATION BONDS 2%
WATER & SEWER BONDS 2%
INDUSTRIAL DEVELOPMENT & POLLUTION CONTROL BONDS 3%
HEALTH CARE BONDS 16%
OTHER REVENUE BONDS 8%
RESOURCE RECOVERY BONDS 9%
PUBLIC FACILITY BONDS 2%
CASH EQUIVALENTS 4%
GENERAL OBLIGATION BONDS 24%
TRANSPORTATION BONDS 11%
ALTERNATIVE MINIMUM TAX BONDS 6%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 99.4%
CONNECTICUT -- 83.3%
Bridgeport GO, AMBAC
5.450%, 03/01/11 $1,550 $1,660
Bridgeport GO, FGIC
8.750%, 08/15/05 500 637
Bridgeport GO, Series A
6.125%, 03/01/05 2,250 2,402
Bristol, Resource Recovery RB,
Ogden Martin System Project
6.500%, 07/01/14 3,000 3,304
Connecticut State Airport RB,
Bradley International
Airport, FGIC
7.650%, 10/01/12 2,000 2,392
Connecticut State Clean Water
Funding RB
5.600%, 06/01/09 750 814
Connecticut State COP,
Middletown Courthouse
Facilities Project, MBIA
6.250%, 12/15/08 1,500 1,641
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 $ 571
Connecticut State GO
5.250%, 03/15/14 9,500 9,963
Connecticut State GO, FGIC
5.000%, 09/01/14 880 901
Connecticut State GO, Series A
5.250%, 03/01/14 2,445 2,555
5.125%, 03/15/15 3,895 4,046
Connecticut State GO, Series B
5.125%, 03/15/11 1,000 1,059
Connecticut State GO, Series C
5.800%, 08/15/08 1,500 1,641
Connecticut State GO,
University of Connecticut
Series A, MBIA
5.000%, 06/01/16 3,000 3,056
Connecticut State Health &
Education Facilities
Authority RB, AMBAC
5.200%, 07/01/14 2,840 2,954
Connecticut State Health &
Education Facilities
5.000%, 07/01/17 1,000 1,010
Connecticut State Health &
Education Facilities
Authority RB, Bridgeport
Hospital, Series C, CONLEE
5.250%, 07/01/15 1,615 1,672
Connecticut State Health &
Education Facilities Authority
RB, Connecticut State
University System, Series A, MBIA
5.125%, 11/01/12 500 521
Connecticut State Health &
Education Facilities Authority
RB, Greenwich Hospital,
Series A, MBIA
5.750%, 07/01/16 2,000 2,182
Connecticut State Health &
Education Facilities Authority
RB, Hospital For Special Care
5.375%, 07/01/17 5,000 5,275
Connecticut State Health &
Education Facilities Authority
RB, New Britain Hospital,
Series B, AMBAC
6.000%, 07/01/09 500 556
38
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
CONNECTICUT (CONTINUED)
Connecticut State Health &
Education Facilities Authority
RB, New Haven Hospital,
Series H, MBIA
5.625%, 07/01/16 $1,000 $1,084
Connecticut State Health &
Education Facilities Authority
RB, New Horizons Village
Project, AMBAC
7.050%, 11/01/09 1,000 1,179
Connecticut State Health &
Education Facilities Authority
RB, Newington Children's
Hospital, Series A, MBIA
5.850%, 07/01/07 1,110 1,225
Connecticut State Health &
Education Facilities Authority
Sacred Heart University
Project, Series E
4.900%, 07/01/13 3,400 3,413
Connecticut State Health &
Education Facilities Authority
RB, Series D, GOI
6.750%, 07/01/12 2,750 3,004
Connecticut State Health &
Education Facilities Authority
RB, Sharon Health Care
Project, AMBAC
6.000%, 11/01/09 1,000 1,120
Connecticut State Health &
Education Facilities Authority
RB, Stamford Hospital, MBIA
5.400%, 07/01/09 2,000 2,185
Connecticut State Health &
Education Facilities Authority
RB, Wadsworth Nursing
Home, AMBAC
7.125%, 11/01/14 500 588
Connecticut State Health &
Education Facilities Authority
RB, William W. Backus Hospital,
Series E, AMBAC
5.000%, 07/01/17 1,000 1,010
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Connecticut State Higher
Education RB, Family
Education Loan Program,
Series A, AMT
7.000%, 11/15/05 $1,145 $1,212
Connecticut State Higher
Education RB, Series A
6.500%, 11/15/00 230 239
Connecticut State Housing
Finance Authority RB, GOA
6.200%, 05/15/14 430 461
Connecticut State Housing
Finance Authority RB, Mortgage
Finance Program, Series A, GOA
5.950%, 05/15/11 3,215 3,428
Connecticut State Housing
Finance Authority RB, Mortgage
6.200%, 05/15/14 1,350 1,434
Connecticut State Housing
Finance Authority RB, Mortgage
Finance Program, Series B
6.050%, 11/15/03 500 537
Connecticut State Housing
Finance Authority RB, Mortgage
Finance Program, Series C-1, GOA
6.000%, 11/15/10 1,010 1,077
Connecticut State Housing
Finance Authority RB,
Mortgage Finance Program,
Series H-1
5.100%, 05/15/17 1,000 1,000
Connecticut State Housing
Finance Authority RB, Mortgage
Finance Program,
Sub-Series A-3, GOA
5.950%, 05/15/17 1,000 1,051
Connecticut State Housing
Finance Authority RB,
Mortgage Finance Program,
Sub-Series B1
6.000%, 11/15/15 2,000 2,115
Connecticut State Housing
Finance Authority RB, Mortgage
Finance Program,
Sub-Series B1, GOA
6.000%, 05/15/08 230 247
39
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
CONNECTICUT (CONTINUED)
Connecticut State Housing Finance
Authority RB, Mortgage Finance
Program, Sub-Series E-1, GOA
5.900%, 05/15/15 $4,200 $4,447
Connecticut State Resource
Recovery Authority RB, American
Fuel Company, Series A, MBIA
5.125%, 11/15/14 7,125 7,276
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 6,000 6,502
Connecticut State Resource
Recovery Authority RB,
Mid-Connecticut System
Project, Series A, MBIA
5.375%, 11/15/10 2,000 2,155
Connecticut State Resource
Recovery Authority RB,
Series A, AMT
8.000%, 11/15/08 1,500 1,550
Connecticut State Resource
Recovery Authority RB,
Wallingford Resources
Project, Series 1, AMT
6.700%, 11/15/02 800 866
Connecticut State Special Tax RB
5.000%, 11/01/16 3,000 3,011
Connecticut State Special
Tax RB, AMBAC
5.250%, 01/01/11 500 527
Connecticut State Special
Tax RB, Transportation
Infrastructure, Series A
5.400%, 09/01/09 500 531
5.700%, 06/01/12 1,160 1,270
Connecticut State Special
Tax RB, Transportation
Infrastructure, Series A, FGIC
5.600%, 06/01/13 1,000 1,071
5.250%, 10/01/14 2,100 2,216
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Connecticut State Special
Tax RB, Transportation
Infrastructure, Series B, FGIC
6.100%, 09/01/08 $ 500 $ 576
5.500%, 10/01/11 4,920 5,363
5.600%, 10/01/12 1,000 1,096
5.600%, 10/01/13 1,000 1,096
Connecticut State Transportation
Infrastructure RB, Series C
5.000%, 10/01/13 2,455 2,486
Eastern Connecticut Resource
Recovery Authority RB,
Wheelabrator Libson
Project, Series A
5.500%, 01/01/14 2,775 2,796
Hartford GO, FGIC
5.700%, 10/01/12 500 549
5.750%, 10/01/13 1,000 1,098
4.700%, 01/15/15 1,340 1,337
South Central Connecticut
Regional Water Authority RB,
Series A, MBIA
6.000%, 08/01/09 985 1,087
6.000%, 08/01/10 1,045 1,152
Stamford GO
5.000%, 07/15/15 2,195 2,255
University of Connecticut RB,
Series A, MBIA
5.250%, 04/01/14 1,000 1,049
Waterbury, Connecticut
Unlimited Tax GO
4.800%, 02/15/12 1,400 1,409
4.900%, 02/15/13 1,470 1,481
5.000%, 02/15/14 1,395 1,407
----------
140,335
----------
GUAM -- 0.6%
Guam Power Authority RB,
Series A, AMBAC
5.900%, 10/01/08 1,000 1,110
----------
PUERTO RICO -- 15.5%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 2,700 2,902
Puerto Rico Commonwealth GO (A)
4.990%, 07/01/14 4,500 2,087
40
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
PUERTO RICO (CONTINUED)
Puerto Rico Commonwealth
Highway & Transportation
Infrastructure RB, MBIA
5.250%, 07/01/14 $2,615 $ 2,746
Puerto Rico Electric Power
Authority RB
5.500%, 07/01/14 1,000 1,040
5.500%, 07/01/16 1,000 1,036
Puerto Rico Electric Power
Authority RB, MBIA
5.250%, 07/01/07 2,560 2,787
Puerto Rico Highway &
Transportation RB, Series X
5.300%, 07/01/04 700 739
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control
Facilities RB, Abbott
Chemicals Project
6.500%, 07/01/09 500 501
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control
Facilities RB, International
American University, Series A, MBIA
5.250%, 10/01/12 725 771
5.375%, 10/01/13 975 1,040
5.500%, 10/01/14 650 695
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control Facilities
RB, PepsiCo Project
6.250%, 11/15/13 2,750 3,022
Puerto Rico Infrastructure
Financing Authority RB, AMBAC
5.250%, 07/01/10 2,500 2,716
Puerto Rico Municipal Finance
Agency RB, Series A, FSA
6.000%, 07/01/09 2,650 2,945
Puerto Rico Public Buildings
Authority RB, MBIA
5.000%, 07/01/11 1,000 1,056
------
Total Puerto Rico 26,083
------
TOTAL MUNICIPAL BONDS
(Cost $158,838) 167,528
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 4.0%
Dean Witter
5.13%, dated 11/30/98, matures
12/01/98, repurchase price
$6,683,777 (collateralized by
U.S. Treasury Instruments: total
market value $6,816,497) (B) $6,683 $ 6,683
-------
TOTAL REPURCHASE AGREEMENT
(Cost $6,683) 6,683
------
TOTAL INVESTMENTS -- 103.4%
(Cost $165,521) 174,211
-------
OTHER ASSETS AND LIABILITIES,
NET-- (3.4%) (5,782)
-------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 15,365,743 outstanding
shares of beneficial interest 158,733
Accumulated net realized gain
on investments 1,006
Net unrealized appreciation
on investments 8,690
--------
TOTAL NET ASSETS-- 100.0% $168,429
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.96
========
- --------------------------------------------------------------------------------
(A) ZERO COUPON BOND. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE
EFFECTIVE YIELD AS OF NOVEMBER 30, 1998.
(B) TRI-PARTY REPURCHASE AGREEMENT
AMT--ALTERNATIVE MINIMUM TAX
COP--CERTIFICATE OF PARTICIPATION
GO--GENERAL OBLIGATION BOND
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR THE
SECURITIES AS SET FORTH IN THE STATEMENT OF NET ASSETS.
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
CONLEE--COLLEGE CONSTRUCTION LOAN INSURANCE ASSOCIATION
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FSA--FINANCIAL SECURITY ASSURANCE
GOA--GENERAL OBLIGATION OF AUTHORITY
GOI--GENERAL OBLIGATION OF INSTITUTION
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
41
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
- --------------------------------------------------------------------------------
TRANSPORTATION BONDS 11%
PARTICIPATION NOTES 2%
UTILITY BONDS 12%
GENERAL OBLIGATION BONDS 16%
CASH EQUIVALENTS 4%
WATER & SEWER BONDS 16%
OTHER REVENUE BONDS 9%
EDUCATION BONDS 5%
HOUSING BONDS 5%
ALTERNATIVE MINIMUM TAX BONDS 5%
HEALTH CARE BONDS 12%
PUBLIC FACILITY BONDS 3%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 94.4%
FLORIDA -- 90.0%
Brevard County, Health Facility
Authority RB, Holmes Regional
Medical Center, MBIA
5.625%, 10/01/14 $1,000 $1,071
Brevard County, Housing &
Finance Authority RB,
Series B, FSA
7.000%, 03/01/13 270 286
Cape Coral, Water
Improvement RB, FSA
6.375%, 06/01/09 1,000 1,095
Dade County, Aviation RB,
Series A, AMT, MBIA
5.750%, 10/01/15 1,000 1,091
Dade County Aviation Series A
5.250%, 10/01/07 1,000 1,071
Dade County, Housing Finance
Authority RB, Series D, FSA
6.950%, 12/15/12 560 594
Dade County Professional Sports
Franchise Facility RB, MBIA
5.250%, 10/01/12 1,385 1,478
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Dade County, Water & Sewer
System RB, FGIC
5.500%, 10/01/18 $3,000 $3,157
Escambia County, Housing
Finance Authority RB,
Series A, AMT, FHA
7.300%, 10/01/17 515 538
Florida State Board of Education
Capital Outlay GO, Series A
5.750%, 01/01/13 1,000 1,064
5.500%, 06/01/15 2,500 2,634
Florida State Board of Education
Capital Outlay GO, Series B, MBIA
5.750%, 06/01/11 1,250 1,358
Florida State Educational Lottery
Revenue Series A
5.000%, 07/01/15 2,000 2,037
Florida State Finance
Department RB, MBIA
5.500%, 07/01/12 1,000 1,080
Florida State Finance
Department RB, Series A, AMBAC
5.700%, 07/01/09 2,000 2,173
Florida State Gas Utilities
Project RB
5.000%, 12/01/08 1,000 1,060
Florida State Gulf Breeze RB, FGIC
5.000%, 12/01/14 2,000 2,040
Florida State Housing RB, MBIA
5.050%, 07/01/12 2,000 2,037
Florida State Turnpike
Authority RB, FGIC
5.250%, 07/01/11 2,000 2,085
Fort Lauderdale GO
5.500%, 07/01/15 1,000 1,053
Gainesville, Utilities
System RB, Series B
5.500%, 10/01/13 2,000 2,118
Hillsborough County, Allegany
Health Systems RB, MBIA
6.375%, 12/01/12 1,300 1,451
Hillsborough County, Aviation
Authority, Tampa International
Airport RB, Series B, AMBAC
5.125%, 10/01/17 2,500 2,538
42
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
FLORIDA (CONTINUED)
Indian Trace Community, Water
Management RB, MBIA
5.500%, 05/01/07 $1,000 $ 1,099
Manatee County, Florida School
Board COP, MBIA
4.950%, 07/01/14 1,000 1,009
Naples, Community Hospital
Project RB, MBIA
5.500%, 10/01/16 1,000 1,053
Orlando, Water & Electric
Utilities Commission RB
5.250%, 10/01/14 1,000 1,024
Polk County, Utility
Systems RB, FGIC
5.250%, 10/01/17 1,500 1,558
Port St. Lucie, Special
Assessment, District 1, MBIA
5.850%, 10/01/11 3,070 3,396
Reedy Creek, Improvements
GO, Series A, MBIA
5.750%, 06/01/14 2,500 2,706
Tampa Bay, Florida Water Utility
Systems RB, Series B, FGIC
5.125%, 10/01/12 1,250 1,306
Tampa Health Systems Catholic
Health RB, AMBAC
4.875%, 11/15/15 1,000 995
Tampa Health Systems RB, AMBAC
4.875%, 11/15/14 1,000 999
Volusia County, Hospital Facilities
RB, Memorial Health Systems
Project, AMBAC
5.500%, 11/15/16 1,250 1,327
------
51,581
------
PUERTO RICO -- 4.4%
Puerto Rico Commonwealth
Highway & Transportation
Authority RB, Sub- P R St
Infrastructure Bank, MBIA
5.250%, 07/01/13 1,375 1,450
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control Facilities
RB, International American
University, Series A, MBIA
5.250%, 10/01/12 1,000 1,064
------
2,514
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $51,677) $54,095
-------
REPURCHASE AGREEMENT -- 4.5%
Dean Witter
5.13%, dated 11/30/98, matures
12/01/98, repurchase price
$2,613,224 (collateralized by
U.S. Treasury Instruments:
total market value
$2,665,115) (A) $2,613 2,613
-------
TOTAL REPURCHASE AGREEMENT
(Cost $2,613) 2,613
-------
TOTAL INVESTMENTS -- 98.9%
(Cost $54,290) 56,708
-------
OTHER ASSETS AND LIABILITIES,
NET -- 1.1% 613
-------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 5,480,474 outstanding
shares of beneficial interest 54,148
Accumulated net realized gain
on investments 755
Net unrealized appreciation
on investments 2,418
-------
TOTAL NET ASSETS -- 100.0% $57,321
=======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.46
=======
(A) TRI-PARTY REPURCHASE AGREEMENT
AMT--ALTERNATIVE MINIMUM TAX
COP--CERTIFICATE OF PARTICIPATION
GO--GENERAL OBLIGATION BOND
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING
CREDIT SUPPORT FOR THE SECURITIES AS SET FORTH IN THE STATEMENT
OF NET ASSETS.
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FHA--FEDERAL HOUSING ADMINISTRATION
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
43
<PAGE>
AS OF NOVEMBER 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
UTILITY BONDS 2%
RESOURCE RECOVERY BONDS 1%
CASH EQUIVALENTS 6%
WATER & SEWER BONDS 10%
GENERAL OBLIGATION BONDS 32%
ALTERNATIVE MINIMUM TAX BONDS 5%
HEALTH CARE BONDS 13%
HOUSING BONDS 5%
TRANSPORTATION BONDS 11%
PRE-REFUNDED SECURITIES 4%
EDUCATION BONDS 11%
%OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 95.0%
MASSACHUSETTS -- 92.6%
Boston GO, Series A, AMBAC
5.650%, 02/01/09 $1,500 $1,601
Boston, Water and Sewer
Community RB, Series A, FGIC
5.125%, 11/01/15 3,320 3,391
Brockton GO, MBIA
5.125%, 04/01/15 1,500 1,537
Chelsea GO, School Loan
Project, AMBAC
6.000%, 06/15/04 650 715
5.700%, 06/15/06 1,000 1,099
Gloucester GO, FGIC
5.100%, 08/01/14 1,105 1,134
Haverhill GO, FGIC
5.300%, 06/15/12 1,500 1,584
Holyoke GO, FSA
5.200%, 08/01/17 690 706
Holyoke GO, Series A, FSA
5.600%, 06/15/11 1,000 1,079
5.500%, 06/15/16 815 856
Lawrence GO, AMBAC
6.250%, 02/15/09 1,475 1,635
Lowell GO, AMBAC
5.500%, 08/01/11 2,740 2,932
5.500%, 08/01/12 1,720 1,843
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Lowell GO, FSA
5.500%, 01/15/10 $1,140 $1,214
6.625%, 04/01/15 1,000 1,132
Lynn, Massachusetts Water &
Sewer Community RB,
Series A, FSA
5.000%, 12/01/14 1,375 1,394
Massachusetts State Bay
Transportation Authority
RB, Series A, GOA
5.500%, 03/01/07 1,500 1,641
5.800%, 03/01/10 2,640 2,911
Massachusetts State Bay
Transportation Authority
RB, Series A, MBIA
5.000%, 03/01/18 3,000 2,989
5.750%, 03/01/18 710 759
Massachusetts State Bay
Transportation Authority
RB, Series A, MBIA (A)
5.750%, 03/01/05 2,615 2,912
Massachusetts State Bay
Transportation Authority
RB, Series B, GOA
6.000%, 03/01/12 4,000 4,285
Massachusetts State Bay
Transportation Authority
RB, Series D, GOA
5.600%, 03/01/08 1,885 2,090
Massachusetts State Development
Finance Agency, Clark
University RB
5.250%, 07/01/16 1,445 1,463
Massachusetts State Educational
Financing Authority RB,
Series A, AMT, MBIA
5.125%, 12/01/14 1,000 996
Massachusetts State Educational
Loan Authority RB, Issue E,
Series B, AMT, AMBAC
6.000%, 01/01/12 400 423
6.300%, 07/01/12 840 893
Massachusetts State GO
5.250%, 08/01/14 5,000 5,225
5.000%, 11/01/14 2,000 2,040
Massachusetts State GO (A)
5.750%, 06/01/06 3,000 3,349
44
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Massachusetts State GO, Series A
5.500%, 02/01/11 $3,500 $3,714
5.000%, 11/01/13 5,000 5,106
Massachusetts State GO,
Series A, MBIA
5.000%, 04/01/14 3,000 3,041
Massachusetts State GO,
Series B
6.500%, 08/01/08 5,315 6,292
Massachusetts State GO,
Series B, FGIC
5.500%, 11/01/07 1,000 1,102
Massachusetts State GO,
Series B, FGIC (A)
5.875%, 08/01/04 2,000 2,230
Massachusetts State GO,
Series B, MBIA
5.400%, 11/01/07 2,000 2,190
Massachusetts State GO, Series C
5.250%, 08/01/15 1,750 1,824
5.000%, 08/01/17 2,000 2,032
Massachusetts State Health &
Educational Facilities Authority,
Harvard Pilgrim Health,
Series A, FSA
5.000%, 07/01/14 2,500 2,550
Massachusetts State Health &
Educational Facilities Authority
RB, Amherst College, Series G
5.250%, 11/01/15 1,125 1,152
Massachusetts State Health &
Educational Facilities Authority
RB, Baystate Medical Center
Project, Series D, FGIC
6.000%, 07/01/15 2,000 2,158
Massachusetts State Health &
Educational Facilities Authority
RB, Berklee College of Music,
Series E, MBIA
5.000%, 10/01/15 975 985
Massachusetts State Health &
Educational Facilities Authority
RB, Boston Medical Center,
Series A, MBIA
5.250%, 07/01/15 2,500 2,581
5.250%, 07/01/16 2,725 2,803
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Massachusetts State Health &
Educational Facilities Authority
RB, Brandeis University, MBIA
5.250%, 10/01/14 $1,500 $1,564
Massachusetts State Health &
Educational Facilities Authority
RB, Catholic Health East,
Series A, AMBAC
5.000%, 11/15/18 2,000 1,982
Massachusetts State Health &
Educational Facilities Authority
RB, Dana Farber Cancer Project,
Series F, FGIC
6.000%, 12/01/15 1,445 1,564
Massachusetts State Health &
Educational Facilities Authority
RB, Dana Farber Cancer
Project, Series G-1
6.250%, 12/01/09 1,175 1,301
Massachusetts State Health &
Educational Facilities Authority
RB, Emerson Hospital Project,
Series D, FSA
5.800%, 08/15/18 3,000 3,169
Massachusetts State Health &
Educational Facilities Authority
RB, Eye & Ear Hospital, Series B
5.250%, 07/01/09 1,500 1,573
Massachusetts State Health &
Educational Facilities Authority
RB, Hallmark Health Systems,
Series A, FSA
5.000%, 07/01/12 1,000 1,024
Massachusetts State Health &
Educational Facilities Authority
RB, Harvard University Project,
Series M, GOI
5.750%, 12/01/11 1,000 1,046
Massachusetts State Health &
Educational Facilities Authority
RB, Lahey Clinic Medical Center
Project, Series B, MBIA
5.625%, 07/01/15 500 525
Massachusetts State Health &
Educational Facilities Authority
RB, Massachusetts General
Hospital, Series G, AMBAC
5.375%, 07/01/11 2,000 2,085
45
<PAGE>
as of November 30, 1998
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, Newton-Wellesley Hospital
Project, Issue E, MBIA
5.875%, 07/01/15 $3,000 $3,244
Massachusetts State Health &
Educational Facilities Authority
RB, Northeastern University
Project, Series E, MBIA
6.500%, 10/01/12 1,000 1,101
Massachusetts State Health &
Educational Facilities Authority
RB, Partners Healthcare Systems,
Series A, MBIA
5.375%, 07/01/17 2,465 2,536
Massachusetts State Health &
Educational Facilities Authority
RB, Simmons College,
Series C, MBIA
5.000%, 10/01/14 1,000 1,016
Massachusetts State Health &
Educational Facilities Authority
RB, Smith College Project,
Series D, GOI
5.750%, 07/01/16 2,600 2,743
Massachusetts State Health &
Educational Facilities Authority
RB, Tufts University Project,
Series F, FGIC
5.950%, 08/15/18 3,000 3,214
Massachusetts State Health &
Educational Facilities Authority
RB, UMass Memorial Issue,
Series A, AMBAC
5.250%, 07/01/14 2,000 2,060
Massachusetts State Health &
Educational Facilities Authority
RB, Williams College, Series F
5.750%, 07/01/19 1,000 1,054
Massachusetts State Housing
Finance Agency RB, Rental
Mortgage, Series C, AMT, AMBAC
5.450%, 07/01/18 2,805 2,844
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
Massachusetts State Housing
Finance Agency RB, Residential
Development Project,
Series A, FNMA
6.875%, 11/15/11 $1,750 $1,912
Massachusetts State Housing
Finance Agency RB, Series A,
AMBAC
6.300%, 10/01/13 4,950 5,278
Massachusetts State Housing
Finance Agency RB,
Series A, MBIA
5.850%, 12/01/08 1,245 1,338
6.100%, 07/01/15 1,590 1,707
Massachusetts State Housing
Finance Agency RB, Single
Family Housing Project,
Series 14, FHA
7.700%, 12/01/14 1,895 1,968
Massachusetts State Industrial
Finance Agency Resource
Recovery RB, Ogden Haverhill
Project A, AMT
5.200%, 12/01/08 1,500 1,502
Massachusetts State Industrial
Finance Agency RB, Babson
College Project, Series A
5.375%, 10/01/17 1,000 1,019
Massachusetts State Industrial
Finance Agency RB, Babson
College Project, Series A, MBIA
6.375%, 10/01/09 1,000 1,112
5.750%, 10/01/15 1,000 1,076
Massachusetts State Industrial
Finance Agency RB, College
of Holy Cross, MBIA
5.500%, 03/01/16 1,500 1,575
Massachusetts State Industrial
Finance Agency RB, Worcester
Polytechnical Institution, MBIA
5.125%, 09/01/17 1,550 1,564
46
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Massachusetts State Municipal
Wholesale Electric Company
RB, Series D, MBIA
6.000%, 07/01/05 $1,000 $ 1,081
Massachusetts State Municipal
Wholesale Electric Company
RB, Series E, MBIA
6.000%, 07/01/11 2,500 2,678
Massachusetts State Port Authority
RB, Series A, AMT
6.000%, 07/01/13 1,050 1,137
Massachusetts State Port Authority
RB, Series B, AMT
5.000%, 07/01/13 1,790 1,812
5.250%, 07/01/14 1,385 1,421
Massachusetts State Port Authority
RB, Series E, AMT
5.250%, 07/01/13 1,000 1,031
Massachusetts State Resource
Recovery Authority RB,
Refusetech Project, Series A
6.150%, 07/01/02 900 951
6.300%, 07/01/05 1,000 1,069
Massachusetts State Special
Obligation RB, Series A
5.500%, 06/01/07 2,000 2,150
5.750%, 06/01/11 2,780 3,048
5.750%, 06/01/12 700 767
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System, Series A, MBIA
5.000%, 01/01/13 1,000 1,017
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System, Sub-
Series B, MBIA
5.250%, 01/01/17 1,000 1,021
Massachusetts State Turnpike
Authority RB, Western Turnpike,
Series A, MBIA
5.550%, 01/01/17 2,000 2,020
Massachusetts State Water
Authority RB, Series B, MBIA
5.500%, 03/01/17 3,500 3,614
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Massachusetts State Water
Pollution Abatement Trust RB,
New Bedford Project, Series A
5.700%, 02/01/12 $1,450 $1,561
5.700%, 02/01/15 3,000 3,184
Massachusetts State Water
Pollution Abatement Trust RB,
Pooled Loan Program, Series 1
5.600%, 08/01/13 2,090 2,200
Massachusetts State Water
Pollution Abatement Trust RB,
Pooled Loan Program, Series 2
6.125%, 02/01/07 730 833
Massachusetts State Water
Pollution Abatement
Trust RB, Series A
5.450%, 02/01/13 1,000 1,045
5.250%, 08/01/14 1,000 1,031
Massachusetts State Water
Resource Authority RB,
Series B, GOA
5.875%, 11/01/04 1,000 1,085
Massachusetts State Water
Resource Authority RB,
Series C, GOA
6.000%, 11/01/05 2,000 2,183
6.000%, 12/01/11 2,000 2,298
Mendon Upton Regional School
District GO, FGIC
5.500%, 06/01/15 1,405 1,491
5.500%, 06/01/17 1,500 1,581
Nantucket GO
6.800%, 12/01/11 1,425 1,582
Nantucket GO, MBIA
5.250%, 07/15/10 2,250 2,399
Northampton GO, MBIA
5.750%, 05/15/16 775 839
Palmer GO, MBIA
5.500%, 10/01/10 1,500 1,594
Peabody GO, Series A
5.000%, 08/01/13 310 319
5.000%, 08/01/14 510 521
Springfield GO, AMBAC
5.300%, 08/01/11 1,000 1,061
5.300%, 08/01/13 1,000 1,048
Springfield GO, FSA
5.000%, 09/01/11 1,885 1,965
47
<PAGE>
as of November 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Springfield GO, State Qualified
Municipal Purpose Loan, FSA
5.250%, 11/15/11 $1,600 $ 1,706
University of Lowell Building
Authority RB, Fifth
Series A, AMBAC
5.625%, 11/01/14 3,000 3,206
Uxbridge GO, MBIA
5.400%, 11/15/16 750 782
West Springfield GO, FGIC
5.000%, 03/01/18 1,225 1,227
Worcester GO, Municipal
Purpose Loan Series B, MBIA
5.250%, 11/01/14 1,875 1,952
Worcester GO, Series G, MBIA
5.300%, 07/01/15 1,000 1,034
-------
215,828
-------
PUERTO RICO -- 2.4%
Puerto Rico Commonwealth
GO, FSA
5.500%, 07/01/13 1,000 1,052
Puerto Rico Commonwealth
GO, Series A
6.000%, 07/01/06 1,000 1,070
Puerto Rico Commonwealth
RB, Highway & Transportation
Authority, Sub- P R St
Infrastructure Bank, MBIA
5.250%, 07/01/13 1,300 1,372
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control
Facilities RB, International
American University,
Series A, MBIA
5.250%, 10/01/12 1,000 1,064
Puerto Rico Refunding Public
Improvement GO
5.500%, 07/01/13 1,000 1,086
------
5,644
------
TOTAL MUNICIPAL BONDS
(Cost $211,182) 221,472
-------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 6.1%
Dean Witter
5.13%, dated 11/30/98, matures
12/01/98, repurchase price
$14,282,164 (collateralized
by U.S. Treasury Instruments:
total market value
$14,565,764) (B) $14,280 $ 14,280
------
TOTAL REPURCHASE AGREEMENT
(Cost $14,280) 14,280
------
TOTAL INVESTMENTS -- 101.1%
(Cost $225,462) 235,752
-------
OTHER ASSETS AND LIABILITIES,
NET -- (1.1%) (2,672)
------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 22,108,506 outstanding
shares of beneficial interest 223,273
Accumulated net realized loss
on investments (483)
Net unrealized appreciation
on investments 10,290
--------
TOTAL NET ASSETS -- 100.0% $233,080
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.54
========
(A) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS
THE MATURITY DATE ON THE STATEMENT OF NET ASSETS.
(B) TRI-PARTY REPURCHASE AGREEMENT
AMT--ALTERNATIVE MINIMUM TAX
GO--GENERAL OBLIGATION BOND
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING
CREDIT SUPPORT FOR THE SECURITIES AS SET FORTH IN THE STATEMENT
OF NET ASSETS.
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FHA--FEDERAL HOUSING ADMINISTRATION
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA--FINANCIAL SECURITY ASSURANCE
GOA--GENERAL OBLIGATION OF AUTHORITY
GOI--GENERAL OBLIGATION OF INSTITUTION
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
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
- --------------------------------------------------------------------------------
PUBLIC FACILITY BONDS 7%
TRANSPORTATION BONDS 5%
UTILITY BONDS 4%
WATER & SEWER BONDS 5%
GENERAL OBLIGATION BONDS 31%
INDUSTRIAL DEVELOPMENT & POLLUTION
CONTROL BONDS 3%
EDUCATION BONDS 10%
ALTERNATIVE MINIMUM TAX BONDS 8%
HOUSING BONDS 10%
OTHER REVENUE BONDS 7%
HEALTH CARE BONDS 7%
CASH EQUIVALENTS 3%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 95.8%
RHODE ISLAND -- 82.1%
Bristol County, Water
Authority RB, MBIA
5.200%, 12/01/14 $1,000 $ 1,031
Bristol County, Water Authority
RB, Series A, MBIA
5.200%, 12/01/13 1,080 1,115
Central Falls RB,
Detention Facility
5.375%, 01/15/18 1,000 1,014
Central Falls RB,
Detention Facility, FSA
5.375%, 01/15/18 1,000 1,031
Cranston GO, MBIA
6.100%, 06/15/10 1,000 1,121
6.100%, 06/15/15 1,500 1,674
5.500%, 07/15/15 1,305 1,391
Cumberland GO, MBIA
5.100%, 09/01/14 500 514
Exeter West Greenwich Regional
School District GO, MBIA
5.400%, 11/15/10 1,000 1,075
Kent County, Water
Authority RB, MBIA
6.000%, 07/15/08 500 549
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
North Providence GO,
Series A, MBIA
6.000%, 07/01/12 $1,100 $ 1,244
6.050%, 07/01/13 500 566
Pawtucket GO, FGIC
5.625%, 04/15/07 750 807
Providence GO, FSA
5.050%, 01/15/05 1,090 1,149
5.100%, 01/15/06 1,085 1,151
Providence GO, Series A, FSA
5.700%, 07/15/12 1,825 2,001
Providence, Housing
Development Authority RB,
Barbara Jordan Apartments
Project, Series A, MBIA
6.500%, 07/01/09 410 445
Providence, Public Building
Authority GO, Series A, FSA
5.400%, 12/15/11 500 533
Providence, Public Building
Authority RB, FSA
5.250%, 12/15/14 1,500 1,562
Rhode Island State Airport
Economic Development RB
5.000%, 07/01/15 1,620 1,642
Rhode Island State Clean
Water Agency RB, Safe
Drinking Water Project,
Series A, AMBAC
6.500%, 01/01/09 500 565
Rhode Island State Clean
Water Agency RB, Series A, MBIA
6.750%, 10/01/13 500 556
Rhode Island State Clean
Water Agency RB, Water
Protection, MBIA
5.875%, 10/01/15 865 935
Rhode Island State Convention
Center Authority RB,
Series A, AMBAC
5.500%, 05/15/13 1,000 1,058
Rhode Island State Depositor's
Economic Protection Agency RB,
Series A, FSA
6.500%, 08/01/07 500 583
49
<PAGE>
AS OF NOVEMBER 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
RHODE ISLAND (CONTINUED)
Rhode Island State Depositor's
Economic Protection
Agency RB, Series B, MBIA
5.800%, 08/01/12 $1,000 $ 1,120
Rhode Island State Depositor's
Economic Protection RB AGENCY,
Special Obligation, Series A, FSA
5.750%, 08/01/14 1,000 1,110
Rhode Island State GO
5.000%, 09/01/12 1,665 1,719
Rhode Island State GO, FGIC
5.000%, 09/01/14 2,680 2,720
5.000%, 09/01/16 2,425 2,428
Rhode Island State GO, Reference
Consolidation Capital
Development Loan, Series A
5.125%, 07/15/13 2,000 2,070
Rhode Island State Health &
Education RB, Brown University
5.000%, 09/01/15 1,000 1,005
5.000%, 09/01/16 1,000 1,005
5.000%, 09/01/17 1,000 1,000
Rhode Island State Health &
Educational Building RB
4.750%, 09/01/14 1,215 1,197
Rhode Island State Health &
Educational Building RB,
Higher Education Facility, AMBAC
5.125%, 11/15/14 1,000 1,020
5.000%, 11/15/18 1,000 986
Rhode Island State Health &
Educational Building RB,
Kent Hospital Project, MBIA
7.000%, 07/01/10 500 544
Rhode Island State Health &
Educational Building RB,
Landmark Medical Project, FSA
5.600%, 10/01/12 1,000 1,061
Rhode Island State Health &
Educational Building RB,
New England Institutional
Project, CONLEE
5.900%, 03/01/10 400 427
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Rhode Island State Health &
Educational Building RB,
Rhode Island School of
Design, MBIA
5.625%, 06/01/16 $2,000 $ 2,145
Rhode Island State Health &
Educational Building RB,
Roger Williams Hospital Project
7.750%, 07/01/16 1,000 1,061
5.250%, 11/15/16 1,000 1,034
Rhode Island State Health &
Educational Building RB,
Roger Williams Hospital
Project, CONLEE
6.500%, 11/15/08 500 551
Rhode Island State Housing &
Mortgage Finance RB
5.550%, 04/01/17 500 513
Rhode Island State Housing &
Mortgage Finance RB, Series 2
7.700%, 10/01/10 500 519
Rhode Island State Housing &
Mortgage Finance RB,
Series 7B, AMT
6.700%, 10/01/12 750 800
Rhode Island State Housing &
Mortgage Finance RB, Series 13
6.700%, 10/01/15 2,000 2,150
Rhode Island State Housing &
Mortgage Finance RB, Series 19A
5.700%, 04/01/15 1,500 1,551
Rhode Island State Housing &
Mortgage Finance RB,
Series 27-B, AMT
5.150%, 10/01/12 2,240 2,248
Rhode Island State Housing &
Mortgage Finance RB, Series A, LOC
5.650%, 10/01/07 1,000 1,045
Rhode Island State Housing &
Mortgage Finance RB,
Series E-1, AMT, FHA
7.500%, 10/01/11 920 972
Rhode Island State Industrial
Facilities RB
6.000%, 11/01/14 2,250 2,413
50
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
RHODE ISLAND (CONTINUED)
Rhode Island State Industrial
Facilities RB, AMT, LOC
6.500%, 03/01/14 $ 500 $ 534
Rhode Island State Port
Authority & Economic
Development RB, Shepard
Building Project, Series B,
AMBAC (A)
6.500%, 06/01/08 500 571
Rhode Island State Public
Projects RB, Series A
5.250%, 02/01/10 1,000 1,061
Rhode Island State Student
Loan Authority RB,
Series A, LOC
6.550%, 12/01/00 500 520
Rhode Island State Student
Loan Authority RB, Series B, AMT
7.000%, 12/01/04 1,390 1,487
Rhode Island State Student
Loan Authority RB,
Series B, AMT, LOC
6.850%, 12/01/02 500 536
Rhode Island State Turnpike &
Bridge Authority RB
5.000%, 12/01/11 1,000 1,010
5.350%, 12/01/17 2,130 2,154
Warwick GO, Series A, FGIC
5.000%, 03/01/15 1,180 1,196
5.000%, 03/01/16 1,205 1,217
Westerly GO, AMBAC
5.850%, 09/15/08 450 491
------
72,503
------
PUERTO RICO -- 13.7%
Puerto Rico Commonwealth GO
5.750%, 07/01/17 1,000 1,075
Puerto Rico Commonwealth GO (B)
4.990%, 07/01/14 3,500 1,623
Puerto Rico Electric
Power Authority RB
5.500%, 07/01/16 3,000 3,109
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- --------------------------------------------------------------------------------
Puerto Rico Highway &
Transportation Authority
RB, Series V
6.375%, 07/01/07 $1,135 $ 1,223
Puerto Rico Industrial, Medical &
Environmental Pollution
Control RB, PepsiCo Project,
Series A
6.250%, 11/15/13 500 547
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control
Facilities RB, International
American University,
Series A, MBIA
5.250%, 10/01/12 360 383
5.375%, 10/01/13 1,550 1,653
5.500%, 10/01/14 350 374
Puerto Rico Public Education &
Health Facilities RB,
Series M, CGTD
5.750%, 07/01/15 2,000 2,108
------
12,095
------
TOTAL MUNICIPAL BONDS
(Cost $81,089) 84,598
------
REPURCHASE AGREEMENT -- 3.0%
Dean Witter
5.13%, dated 11/30/98, matures
12/01/98, repurchase price
$2,637,501 (collateralized
by U.S. Treasury Instruments:
total market value
$2,689,873) (C) 2,637 2,637
------
TOTAL REPURCHASE AGREEMENT
(Cost $2,637) 2,637
------
TOTAL INVESTMENTS -- 98.8%
(Cost $83,726) 87,235
------
OTHER ASSETS AND LIABILITIES,
NET-- 1.2% 1,026
------
51
<PAGE>
AS OF NOVEMBER 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par
value) based on 8,222,279
outstanding shares of
beneficial interest $ 84,090
Accumulated net realized gain
on investments 662
Net unrealized appreciation
on investments 3,509
------
TOTAL NET ASSETS-- 100.0% $ 88,261
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.73
======
(A) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
(B) ZERO COUPON BOND. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE
EFFECTIVE YIELD AS OF NOVEMBER 30, 1998.
(C) TRI-PARTY REPURCHASE AGREEMENT
AMT--ALTERNATIVE MINIMUM TAX
GO--GENERAL OBLIGATION BOND
LOC--SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY A MAJOR
COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING
CREDIT SUPPORT FOR THE SECURITIES SET FORTH IN THE STATEMENT
OF NET ASSETS.
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
CGTD--COMMONWEALTH GUARANTEED
CONLEE--COLLEGE CONSTRUCTION LOAN INSURANCE ASSOCIATION
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FHA--FEDERAL HOUSING ADMINISTRATION
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INSURANCE ASSURANCE
52
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 18%
U.S. GOVERNMENT AGENCY OBLIGATIONS 6%
CASH EQUIVALENTS 10%
COMMON STOCK 45%
PREFERRED STOCK 1%
ASSET-BACKED SECURITIES 3%
CORPORATE OBLIGATIONS 9%
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS 8%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 44.9%
AIR TRANSPORTATION -- 1.0%
AMR* 8,100 $ 534
------
BROADCASTING, NEWSPAPERS &
ADVERTISING -- 0.7%
Comcast, Class A 4,700 228
Mediaone Group* 3,200 130
------
358
------
CAPITAL GOODS/CONSTRUCTION-- 2.1%
Dii Group Inc* 7 157
General Electric 7,700 697
Genzyme Molecular Oncology* 1,793 6
Molex 5,500 198
------
1,058
------
CONSUMER NON-DURABLES/
WHOLESALE TRADE -- 3.6%
Colgate-Palmolive 2,000 171
Nestle, ADR 10,400 1,084
Procter & Gamble 6,300 552
------
1,807
------
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
DRUGS -- 1.8%
Alza, Class A* 3,100 $ 162
Centocor* 5,200 211
McKesson 2 164
Novartis* 2,900 273
Warner Lambert 1,500 113
------
923
------
ELECTRICAL SERVICES -- 0.1%
AES* 1,300 59
------
ENERGY -- 3.5%
Baker Hughes 16,500 302
El Paso Natural Gas 4,800 164
Exxon 4,200 315
Mobil 6,100 526
Schlumberger 10,200 456
------
1,763
------
ENTERTAINMENT -- 0.5%
Mirage Resorts* 4,600 68
Time Warner 1,500 159
------
227
------
FINANCIAL SERVICES -- 4.4%
BankAmerica 8,792 573
Equitable 4,900 271
Fannie Mae 6,300 458
Wells Fargo 26,900 968
------
2,270
------
FOOD, BEVERAGE & TOBACCO -- 0.7%
Campbell Soup 3,200 183
Nabisco Holdings, Class A 4,400 175
------
358
------
HEALTH CARE -- 5.5%
Bristol-Myers Squibb 1,200 147
Genzyme* 16,600 698
Johnson & Johnson 11,100 902
Merck 7,000 1,084
------
2,831
------
53
<PAGE>
AS OF NOVEMBER 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 ASSET ALLOCATION FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
INSURANCE -- 4.9%
Allstate 18,200 $ 742
American International Group 13,000 1,222
Citigroup 7,000 351
Exel Limited Class A* 2,600 195
------
2,510
------
MEDICAL PRODUCTS & SERVICES-- 2.3%
Boston Scientific* 9,400 465
Elan, ADR* 6,400 436
Medtronic 3,700 250
------
1,151
------
MISCELLANEOUS BUSINESS SERVICES-- 1.3%
BMC Software* 1,300 66
DST Systems* 5,500 298
Parametric Technology* 4,200 71
Sterling Commerce* 5,600 203
------
638
------
MISCELLANEOUS CONSUMER SERVICES --0.2%
Service International 2,900 108
------
RETAIL -- 2.8%
Costco* 4,300 270
CVS 7,200 355
Estee Lauder 3,000 225
Home Depot 3,500 174
Kroger* 1,800 96
Wal-Mart Stores 4,400 331
------
1,451
------
SPECIALTY MACHINERY -- 0.3%
U.S. Filter* 6,500 144
------
TECHNOLOGY -- 4.9%
Analog Devices* 8,500 174
Cambridge Technology Partners* 6,900 144
Cisco Systems* 4,100 309
Computer Associates
International 15,800 699
Lucent Technologies 12,900 1,110
Pall 1,800 42
------
2,478
------
- --------------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS-- 2.9%
Airtouch Communications* 4,700 $ 269
Century Telephone Enterprises 2,000 114
Ericsson Telephone, ADR 6,100 169
SBC Communications 15,600 748
Tele-Communications TCI
Ventures Group, Class A* 9,900 196
------
1,496
------
WHOLESALE -- 1.4%
Safeway* 1,600 85
Sysco 24,200 652
------
737
------
TOTAL COMMON STOCKS
(Cost $16,590) 22,901
------
PREFERRED STOCK -- 0.4%
Hartford Capital II 8,000 210
------
TOTAL PREFERRED STOCK
(Cost $200) 210
------
U.S. TREASURY OBLIGATIONS -- 18.1%
U.S. Treasury Bonds
7.250%, 05/15/16 $1,500 $ 1,835
8.125%, 08/15/19 100 135
7.125%, 02/15/23 300 373
6.125%, 11/15/27 500 564
U.S. Treasury Notes
5.000%, 01/31/99 100 100
5.500%, 04/15/00 200 202
6.250%, 05/31/00 500 512
6.125%, 07/31/00 400 410
6.125%, 09/30/00 1,000 1,027
5.625%, 11/30/00 365 372
6.250%, 02/28/02 500 523
6.250%, 06/30/02 1,000 1,051
5.750%, 11/30/02 1,000 1,038
6.500%, 08/15/05 500 550
6.125%, 08/15/07 500 545
------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $8,757) 9,237
------
54
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-
BACKED BONDS -- 7.9%
Federal Home Loan Mortgage
6.000%, 11/01/28 $2,500 $ 2,469
Federal National Mortgage
Association
6.000%, 06/01/13 1,194 1,196
Government National
Mortgage Association
6.000%, 04/15/13 247 248
7.500%, 06/15/23 128 133
------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED BONDS
(Cost $4,025) 4,046
------
CORPORATE OBLIGATIONS -- 8.4%
FINANCIAL SERVICES -- 2.7%
Chase Manhattan
8.000%, 06/15/99 200 203
Ford Motor Credit
6.750%, 05/15/05 100 106
General Motors Acceptance
6.625%, 10/01/02 200 207
5.750%, 11/10/03 425 427
Safeco
6.875%, 07/15/07 410 424
------
1,367
------
INDUSTRIAL -- 3.7%
Burlington North
9.250%, 10/01/06 250 304
Ford Motor
7.250%, 10/01/08 250 275
H.J. Heinz
6.000%, 03/15/08 500 519
Sears Roebuck
6.250%, 01/15/04 500 514
Trans-Canada Pipelines, YB
9.125%, 04/20/06 250 291
------
1,903
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
INSURANCE -- 2.0%
Prudential
6.375%, 07/23/06 $1,000 $ 1,009
------
TOTAL CORPORATE OBLIGATIONS
(Cost $4,154) 4,279
------
ASSET-BACKED SECURITIES -- 3.2%
PNC Student Loan Trust I,
Series 1997-2, Class A6
6.572%, 01/25/04 600 625
Sears Credit Account Master
Trust, Series 1996-4, Class A
6.450%, 10/16/06 500 510
Sears Credit Account Master
Trust, Series 1997-1, Class A
6.200%, 07/16/07 500 506
------
TOTAL ASSET-BACKED SECURITIES
(Cost $1,594) 1,641
------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.3%
Federal National
Mortgage Association
5.750%, 04/15/03 500 516
6.500%, 03/01/11 437 443
6.500%, 05/01/28 964 970
Federal National Mortgage
Association, MTN
7.070%, 06/25/01 500 505
7.240%, 01/04/07 500 510
Private Export Funding
Corporation
8.400%, 07/31/01 25 27
Tennessee Valley Authority
Principal STRIPS (A)
7.813%, 04/15/42 500 243
------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $3,085) 3,214
------
55
<PAGE>
AS OF NOVEMBER 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 ASSET ALLOCATION FUND (CONCLUDED)
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 10.3%
Dean Witter
5.13%, dated 11/30/98, matures
12/01/98, repurchase price
$5,265,112 (collateralized
by U.S. Treasury Instruments:
total market value
$5,369,661) (B) $5,264 $ 5,264
------
TOTAL REPURCHASE AGREEMENT
(Cost $5,264) 5,264
------
TOTAL INVESTMENTS -- 99.5%
(Cost $43,669) 50,792
------
OTHER ASSETS AND LIABILITIES,
NET-- 0.5% 238
------
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par
value) based on 3,358,506
outstanding shares of beneficial interest $ 41,452
Undistributed net investment income 293
Accumulated net realized
gain on investments 2,162
Net unrealized appreciation on investments 7,123
------
TOTAL NET ASSETS-- 100.0% $ 51,030
======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $15.19
======
* NON-INCOME PRODUCING SECURITY
(A) ZERO COUPON SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE EFFECTIVE RATE AS OF NOVEMBER 30, 1998.
(B) TRI-PARTY REPURCHASE AGREEMENT
ADR--AMERICAN DEPOSITORY RECEIPT
MTN--MEDIUM TERM NOTE
STRIPS--SEPARATELY TRADED REGISTERED INTEREST AND PRINCIPAL SECURITIES
YB--YANKEE BOND
56
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
TECHNOLOGY 21%
CASH EQUIVALENTS 5%
CAPITAL GOODS/MACHINERY 2%
CHEMICAL PRODUCTS 2%
CONSUMER DURABLES 4%
CONSUMER NON-DURABLES 3%
ENERGY 8%
ENTERTAINMENT 2%
ENVIRONMENTAL SERVICES 4%
FINANCIAL SERVICES 4%
HEALTH CARE 11%
INSURANCE 4%
MEDICAL PRODUCTS & SERVICES 10%
OFFICE EQUIPMENT 2%
RESTAURANTS 6%
RETAIL 12%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 89.8%
CAPITAL GOODS/MACHINERY -- 1.9%
General Electric 80,000 $ 7,240
Hardinge 164,062 3,127
------
10,367
------
CHEMICAL PRODUCTS -- 2.1%
Monsanto 250,000 11,328
------
COMPUTER EQUIPMENT & SERVICES -- 1.7%
Data General* 500,000 9,062
------
CONSUMER DURABLES -- 4.6%
Cintas 250,000 13,750
Newell 250,000 11,062
------
24,812
------
CONSUMER NON-DURABLES -- 3.0%
Coca Cola 158,112 11,078
Gillette 120,000 5,512
------
16,590
------
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ENERGY -- 7.6%
Conoco, Class A* 200,000 $ 4,738
El Paso Energy 100,000 3,413
Enron 250,000 13,141
Exxon 150,000 11,259
Mobil 100,000 8,619
------
41,170
------
ENTERTAINMENT -- 2.1%
Walt Disney 360,000 11,588
------
ENVIRONMENTAL SERVICES -- 3.5%
Rentokil Initial (UK) 3,000,000 19,297
------
FINANCIAL SERVICES -- 3.8%
Fifth Third Bancorp 150,000 9,956
Firstar 150,000 10,987
------
20,943
------
HEALTH CARE -- 11.5%
Abbott Laboratories 200,000 9,600
Cardinal Health 150,000 10,294
Elan ADR* 120,000 8,175
Eli Lilly 150,000 13,453
Johnson & Johnson 120,000 9,750
Pfizer 100,000 11,163
------
62,435
------
INSURANCE -- 3.7%
Allstate 200,000 8,150
American International Group 125,000 11,750
------
19,900
------
MEDICAL PRODUCTS & SERVICES-- 10.6%
Baxter International 175,000 11,123
Boston Scientific* 100,000 4,950
Guidant 162,000 13,902
Medtronic 200,000 13,538
Sofamor Danek Group* 125,325 14,013
------
57,526
------
OFFICE EQUIPMENT -- 1.6%
Xerox 80,000 8,600
------
57
<PAGE>
AS OF NOVEMBER 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 GROWTH AND INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
RESTAURANTS -- 6.2%
J.D. Wetherspoon (UK) 3,525,000 $ 12,064
Outback Steakhouse* 70,000 2,485
PizzaExpress (UK) 1,381,000 19,475
------
34,024
------
RETAIL -- 12.6%
Bed Bath & Beyond* 600,000 18,713
GrandVision (FRA) 300,000 6,725
Home Depot 500,000 24,875
Staples* 250,000 8,734
Walgreen 175,000 9,395
------
68,442
------
TECHNOLOGY -- 13.3%
Cambridge Technology Partners* 279,000 5,824
Cisco Systems* 200,000 15,075
Intel 190,000 20,449
Microsoft* 220,000 26,840
Texas Instruments 57,000 4,353
------
72,541
------
TOTAL COMMON STOCKS
(Cost $271,775) 488,625
------
PREFERRED STOCKS -- 6.2%
COMPUTER SOFTWARE & SERVICES -- 6.2%
SAP (GER) 65,000 33,841
------
TOTAL PREFERRED STOCKS
(Cost $1,637) 33,841
------
REPURCHASE AGREEMENTS -- 4.8%
Dean Witter
5.13%, dated 11/30/98, matures
12/01/98, repurchase price
$15,836,162 (collateralized
by U.S. Treasury Instruments:
total market value
$16,150,620) (A) $15,834 15,834
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
Goldman Sachs
5.20%, dated 11/30/98, matures
12/01/98, repurchase price
$10,001,444 (collateralized by
U.S. Treasury Instruments: total
market value $10,200,002) (A) $10,000 $ 10,000
------
TOTAL REPURCHASE AGREEMENTS
(Cost $25,834) 25,834
------
TOTAL INVESTMENTS -- 100.8%
(Cost $299,246) 548,300
-------
OTHER ASSETS AND LIABILITIES,
NET-- (0.8%) (4,164)
------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par
value) based on 24,953,736
outstanding shares of
beneficial interest 282,330
Undistributed net investment income 163
Accumulated net realized gain
on investments 12,589
Net unrealized appreciation on investments 249,054
--------
TOTAL NET ASSETS-- 100.0% $544,136
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $21.81
======
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
ADR--AMERICAN DEPOSITORY RECEIPT
FRA--FRENCH EQUITY
GER--GERMAN EQUITY
UK--UNITED KINGDOM EQUITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
58
<PAGE>
BOSTON 1784 FUNDS
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 GROWTH FUND
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS 4%
WHOLESALE 2%
CASH EQUIVALENTS 6%
CAPITAL GOODS/MACHINERY 3%
COMPUTER EQUIPMENT & SERVICES 10%
CONSUMER DURABLES 5%
DATA PROCESSING & MANAGEMENT 3%
ENERGY 4%
ENVIRONMENTAL SERVICES 3%
FINANCIAL SERVICES 4%
HEALTH CARE 3%
MEDICAL PRODUCTS & SERVICES 9%
MISCELLANEOUS BUSINESS SERVICES 6%
RESTAURANTS 10%
RETAIL 9%
TECHNOLOGY 17%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 89.4%
CAPITAL GOODS/MACHINERY -- 2.2%
Hardinge 12,411 $ 237
Manitowoc 100,000 3,975
------
4,212
------
CHEMICALS -- 1.8%
MacDermid 90,000 3,319
------
COMMUNICATIONS EQUIPMENT -- 1.2%
American Tower, Class A* 100,000 2,312
------
COMPUTER EQUIPMENT & SERVICES-- 3.1%
Cree Research* 50,000 1,862
Data General* 150,000 2,719
Emulex* 43,500 1,223
------
5,804
------
CONSUMER DURABLES -- 5.3%
Cintas 100,000 5,500
Danaher 100,000 4,562
------
10,062
------
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
DATA PROCESSING & MANAGEMENT-- 3.2%
Concord EFS* 75,000 $ 2,386
SCB Computer Technology* 125,000 1,016
TSI International Software* 70,000 2,555
------
5,957
------
ENERGY -- 3.1%
Basin Exploration* 250,000 2,906
Stone Energy* 100,000 3,012
------
5,918
------
ENVIRONMENTAL SERVICES -- 3.4%
Rentokil Initial (UK) 1,000,000 6,432
------
FINANCIAL SERVICES -- 4.3%
Fifth Third Bancorp 28,000 1,858
Firstar 42,600 3,120
Litchfield Financial 178,500 3,191
------
8,169
------
HEALTH CARE -- 3.2%
Biosite Diagnostics* 70,000 586
Omnicare 100,000 2,862
Sabratek* 150,000 2,531
------
5,979
------
MEDICAL PRODUCTS & SERVICES-- 9.2%
Allergan 30,000 1,826
Guidant 12,000 1,030
Renal Care Group* 100,000 2,688
Sepracor* 30,000 2,490
Sofamor Danek Group* 50,000 5,591
Steris* 125,000 3,352
Symphonix Devices* 100,000 387
------
17,364
------
MISCELLANEOUS BUSINESS SERVICES -- 6.4%
Aspect Development* 290,000 9,697
Pierce Leahy* 100,000 2,463
------
12,160
------
RESTAURANTS -- 10.3%
J.D. Wetherspoon (UK) 2,500,000 8,556
PizzaExpress (UK) 779,000 10,985
------
19,541
------
59
<PAGE>
AS OF NOVEMBER 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 GROWTH FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
RETAIL -- 9.3%
Bed Bath & Beyond* 421,000 $ 13,130
Fastenal 55,000 2,269
GrandVision (FRA) 100,000 2,242
------
17,641
------
TECHNOLOGY -- 17.2%
Cambridge Technology Partners* 150,000 3,131
I2 Technologies* 150,000 3,713
Legato Systems* 50,000 2,391
Leitch Technology* (CAN) 150,000 3,431
QLogic* 125,000 12,828
Visio* 200,000 7,075
------
32,569
------
TELEPHONES & TELECOMMUNICATIONS -- 3.4%
Global TeleSystems Group* 65,000 2,821
SkyTel Communications* 175,000 3,653
------
6,474
------
TELEVISION BROADCASTING -- 0.5%
Univision Communications,
Class A* 36,000 1,008
------
UTILITIES -- 0.7%
AES* 27,400 1,254
------
WHOLESALE -- 1.6%
Miami Computer Supply* 125,000 2,938
------
TOTAL COMMON STOCKS
(Cost $126,828) 169,113
-------
PREFERRED STOCKS -- 6.9%
COMPUTER SOFTWARE & SERVICES -- 6.9%
SAP (GER) 25,000 13,016
------
TOTAL PREFERRED STOCKS
(Cost $9,062) 13,016
------
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 6.4%
Dean Witter
5.13%, dated 11/30/98, matures
12/01/98, repurchase price
$12,163,825 (collateralized
by U.S. Treasury Instruments:
total market value
$12,405,361) (A) $12,162 $ 12,162
------
TOTAL REPURCHASE AGREEMENT
(Cost $12,162) 12,162
------
TOTAL INVESTMENTS -- 102.7%
(Cost $148,052) 194,291
-------
OTHER ASSETS AND LIABILITIES,
NET-- (2.7%) (5,157)
------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 16,750,104 outstanding
shares of beneficial interest 142,561
Accumulated net investment loss (357)
Accumulated net realized
gain on investments 691
Net unrealized appreciation on investments 46,239
--------
TOTAL NET ASSETS-- 100.0% $189,134
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $11.29
======
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
CAN -- CANADIAN EQUITY
FRA -- FRENCH EQUITY
GER -- GERMAN EQUITY
UK -- UNITED KINGDOM EQUITY
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
- --------------------------------------------------------------------------------
OTHER FAR EAST 1%
NORTH & SOUTH AMERICA 3%
OTHER EUROPE 11%
CASH EQUIVALENTS 4%
FRANCE 14%
GERMANY 11%
ITALY 7%
JAPAN 10%
NETHERLANDS 9%
SPAIN 7%
SWITZERLAND 7%
UNITED KINGDOM 16%
% OF TOTAL PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS -- 97.1%
AUSTRALIA -- 0.0%
Cable and Wireless Optus* 71,346 $ 134
------
CANADA -- 1.6%
George Weston Limited 51,083 1,792
Hudson's Bay 220,000 2,591
Loblaw 113,000 2,415
------
Total Canada 6,798
------
CHINA -- 1.0%
China Telecom* 2,166,000 4,322
------
FINLAND -- 3.5%
Nokia, Series A 121,974 11,949
Orion-Yhtyma, Series B 89,000 2,029
Sonera Group* 56,406 810
------
Total Finland 14,788
------
FRANCE -- 14.3%
Atos* 34,032 7,299
Axa 65,036 8,404
Cap Gemini 48,889 7,151
Carrefour 3,000 2,123
Elf Aquitane 35,000 4,363
Groupe Danone 27,000 7,880
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Promodes 8,829 $ 5,773
Synthelabo 43,691 9,133
Total, Series B 35,000 4,338
Vivendi 18,000 4,070
------
Total France 60,534
------
GERMANY-- 10.7%
Allianz 17,947 6,460
Bayerische Vereinsbank 42,000 3,635
DePfa Bank 54,711 4,516
Mannesmann 65,000 7,033
Muenchener Rueckversicherung 14,900 6,853
RWE 80,000 4,233
SAP 18,442 8,351
Volkswagen 53,000 4,312
------
Total Germany 45,393
------
GREECE -- 1.1%
Hellenic Telecom
Organization ADR* 370,000 4,486
------
IRELAND -- 2.0%
Bank of Ireland 250,000 5,121
CBT Group ADR* 88,000 924
CRH 160,000 2,423
------
Total Ireland 8,468
------
ITALY -- 6.8%
Credito Italiano 1,259,453 7,162
INA 2,155,000 5,687
Mediaset 876,000 6,184
Telecom Italia 1,084,156 8,787
Unione Immobiliare* 2,155,000 1,078
------
Total Italy 28,898
------
JAPAN-- 9.7%
Acom 36,200 2,191
Fujitsu 386,000 4,459
Ibiden 135,000 1,976
Kao 202,000 3,823
Matsushita Communications 158,000 6,892
Nintendo 71,000 6,581
NTT Data 1,420 6,206
NTT Mobile Communication
Network 110 4,200
61
<PAGE>
AS OF NOVEMBER 30, 1998
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 INTERNATIONAL EQUITY FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
JAPAN (CONTINUED)
Shinko Electric Industries 58,400 $ 2,182
Takefuji 36,000 2,457
------
Total Japan 40,967
------
MEXICO -- 1.2%
Coca-Cola Femsa ADR 219,000 3,258
Telefonos de Mexico ADR,
Series L 40,500 1,886
------
Total Mexico 5,144
------
NETHERLANDS -- 9.2%
Ahold 205,423 7,124
Benckiser, Series B 61,000 3,605
Getronics 249,315 10,902
Hunter Douglas 86,019 2,961
Numico 148,370 6,403
Nutreco Holding 65,220 2,559
Randstad Holding 101,302 5,262
------
Total Netherlands 38,816
------
NORWAY -- 0.6%
Tomra Systems 91,122 2,661
------
POLAND -- 0.0%
Mostostal-Export 2,740 3
------
PORTUGAL -- 2.4%
Banco Comercial Portugues 231,372 7,051
Electricidade de Portugal 136,542 3,025
------
Total Portugal 10,076
------
SPAIN -- 6.9%
Banco Central
Hispanoamericano 388,875 4,474
Centros Comerciales
Continente 233,000 7,589
Gas Natural SGD 50,000 4,213
Iberdrola 382,000 6,327
Telefonica de Espana 144,910 6,809
------
Total Spain 29,412
------
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SWEDEN -- 2.9%
Astra, Series A 243,000 $ 4,451
Electrolux, Series B 285,235 4,348
Nordbanken Holding 567,000 3,589
------
Total Sweden 12,388
------
SWITZERLAND -- 6.8%
Novartis-Registered 6,130 11,508
Roche Holding-Genusscheine 1,220 14,336
Swisscom-Registered* 9,610 3,236
------
Total Switzerland 29,080
------
TAIWAN -- 0.3%
ASE Test* 43,700 1,338
-----
UNITED KINGDOM-- 15.6%
Allied Zurich* 620,000 8,845
Bank of Scotland 433,276 4,788
Boots Company 133,000 2,156
British Telecom 455,000 6,233
Glaxo Wellcome 338,276 10,696
Hanson 600,000 4,453
Railtrack Group 139,172 3,817
Scottish Hydro-Electric 272,723 3,158
Sema Group 94,809 774
Smithkline Beecham 637,392 7,822
Vodafone Group 223,000 3,292
Zeneca Group 251,000 10,432
------
Total United Kingdom 66,466
------
UNITED STATES -- 0.5%
Global TeleSystems Group* 51,200 2,222
-----
TOTAL FOREIGN COMMON STOCKS
(Cost $328,536) 412,394
-------
62
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000)VALUE (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 3.7%
Dean Witter
5.13%, dated 11/30/98, matures
12/01/98, repurchase price
$15,761,562 (collateralized by
U.S. Treasury Instruments:
total market value
$16,074,538) (A) $15,759 $15,759
------
TOTAL REPURCHASE AGREEMENT
(Cost $15,759) 15,759
------
TOTAL INVESTMENTS -- 100.8%
(Cost $344,295) 428,153
-------
OTHER ASSETS AND LIABILITIES,
NET-- (0.8%) (3,218)
------
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par
value) based on 33,580,641
outstanding shares of beneficial interest $355,970
Undistributed net investment income 426
Accumulated net realized
loss on investments (12,847)
Net unrealized appreciation
on investments 83,858
Net unrealized depreciation on
forward foreign currency contracts,
foreign currency and translation
of other assets and liabilities in
foreign currency (2,472)
--------
TOTAL NET ASSETS-- 100.0% $424,935
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $12.65
======
- --------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
(A) TRI -PARTY REPURCHASE AGREEMENT
ADR--AMERICAN DEPOSITORY RECEIPT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
63
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS (000) (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------
for the six month period ended November 30, 1998
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
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
INCOME:
INTEREST INCOME $19,085 $10,182 $4,155 $5,738 $11,836 $8,092
DIVIDEND INCOME -- -- -- -- -- --
LESS: FOREIGN TAXES WITHHELD -- -- -- -- -- --
------- ------- ------- --------- --------- -------
TOTAL INCOME 19,085 10,182 4,155 5,738 11,836 8,092
------- ------- ------- --------- --------- -------
EXPENSES:
INVESTMENT ADVISORY FEES 2,136 760 299 478 1,429 986
LESS: WAIVER OF INVESTMENT
ADVISORY FEES -- (139) (50) -- (126) (92)
ADMINISTRATOR FEES 359 128 50 64 130 90
SHAREHOLDER SERVICING FEES -- 190 75 -- -- --
12B-1 FEES -- -- -- 239 483 333
LESS: WAIVER OF 12B-1 FEES -- -- -- (239) (483) (333)
TRANSFER AGENT FEES & EXPENSES 64 199 73 30 31 22
REGISTRATION FEES 63 18 8 9 18 16
TRUSTEE FEES 12 4 2 2 5 3
PRINTING 32 11 4 6 12 8
AMORTIZATION OF DEFERRED
ORGANIZATIONAL COSTS -- -- -- -- -- --
PROFESSIONAL FEES 56 20 7 12 21 13
CUSTODIAN FEES 34 25 15 12 18 14
OTHER EXPENSES 15 19 2 3 7 5
------- ------- ------- --------- --------- -------
TOTAL EXPENSES, NET OF
WAIVERS 2,771 1,235 485 616 1,545 1,065
------- ------- ------- --------- --------- -------
NET INVESTMENT INCOME (LOSS) 16,314 8,947 3,670 5,122 10,291 7,027
------- ------- ------- --------- --------- -------
NET REALIZED GAIN (LOSS) ON
INVESTMENTS -- 5 (1) 401 2,254 321
NET REALIZED GAIN (LOSS) FROM
FORWARD FOREIGN CURRENCY
CONTRACTS AND FOREIGN
CURRENCY TRANSACTIONS -- -- -- -- -- --
NET CHANGE IN UNREALIZED
APPRECIATION ON INVESTMENTS -- -- -- 1,000 5,356 6,098
NET CHANGE IN UNREALIZED
DEPRECIATION ON FORWARD FOREIGN
CURRENCY CONTRACTS, FOREIGN
CURRENCIES AND TRANSLATION OF
OTHER ASSETS AND LIABILITIES
IN FOREIGN CURRENCY -- -- -- -- -- --
------- ------- ------- --------- --------- -------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY -- 5 (1) 1,401 7,610 6,419
------- ------- ------- --------- --------- -------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $16,314 $8,952 $3,669 $6,523 $17,901 $13,446
======= ======= ======= ========= ========= =======
</TABLE>
64
<PAGE>
<TABLE>
<CAPTION>
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 FUND FUND FUND FUND FUND FUND
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$8,151 $4,144 $1,402 $5,640 $2,136 $ 792 $ 1,461 $ 371 $ 2,225
-- -- -- -- -- 111 1,932 260 536
-- -- -- -- -- -- (48) (8) (28)
------- ------- ------- ------- ------- ------- ------- -------- --------
8,151 4,144 1,402 5,640 2,136 903 3,345 623 2,733
------- ------- ------- ------- ------- ------- ------- -------- --------
1,163 586 203 808 299 186 1,995 771 2,204
(97) (60) (30) (80) (37) -- -- -- --
106 53 18 73 27 17 181 70 148
-- -- -- -- -- -- -- -- --
393 198 68 273 101 63 674 260 551
(393) (198) (68) (273) (101) (63) (674) (260) (551)
22 20 8 25 15 23 109 58 36
14 8 2 10 5 2 26 10 23
4 2 1 3 1 1 7 3 6
9 4 1 6 2 1 17 8 15
-- -- 7 -- -- -- -- 2 --
16 8 3 11 4 3 31 13 25
15 9 5 12 6 8 70 40 267
6 3 1 6 1 1 10 -- 9
------- ------- ------- ------- ------- ------- ------- -------- --------
1,258 633 219 874 323 242 2,446 975 2,733
------- ------- ------- ------- ------- ------- ------- -------- --------
6,893 3,511 1,183 4,766 1,813 661 899 (352) --
------- ------- ------- ------- ------- ------- ------- -------- --------
3,786 264 331 700 583 1,163 10,798 (5,639) (14,144)
-- -- -- -- -- -- (7) (4) 1,453
816 2,013 500 1,851 255 (1,097) (9,397) (24,648) (17,764)
-- -- -- -- -- -- -- -- (4,471)
------- ------- ------- ------- ------- ------- ------- -------- --------
4,602 2,277 831 2,551 838 66 1,394 (30,291) (34,926)
------- ------- ------- ------- ------- ------- ------- -------- --------
$11,495 $5,788 $2,014 $7,317 $2,651 $ 727 $ 2,293 $(30,643) $(34,926)
======= ======= ======= ======= ======= ======= ======= ======== ========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
65
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000)
- ---------------------------------------------------------------------------------------------------------------------------
for the period ended November 30, 1998 (unaudited) and the period ended may 31, 1998
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
===========================================================================================================================
6/1/98 6/1/97 6/1/98 6/1/97 6/1/98 6/1/97 6/1/98 6/1/97
TO TO TO TO TO TO TO TO
11/30/98 5/31/98 11/30/98 5/31/98 11/30/98 5/31/98 11/30/98 5/31/98
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
NET INVESTMENT INCOME $ 16,314 $ 31,912 $ 8,947 $ 18,222$ 3,670 $ 6,157 $ 5,122 $10,879
NET REALIZED GAIN (LOSS) ON
INVESTMENTS -- (11) 5 3 (1) (1) 401 837
NET CHANGE IN UNREALIZED APPRECIATION
ON INVESTMENTS -- -- -- -- -- -- 1,000 1,278
------ ------- -------- ------- ------- ------- -------- -------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 16,314 31,901 8,952 18,225 3,669 6,156 6,523 12,994
------ ------- -------- ------- ------- ------- -------- -------
DISTRIBUTIONS TO
SHAREHOLDERS:
NET INVESTMENT INCOME (16,314) (31,912) (8,947) (18,208) (3,670) (6,157) (5,120) (10,880)
REALIZED CAPITAL GAINS -- -- -- (14) -- -- -- --
------ ------- -------- ------- ------- ------- -------- -------
TOTAL DISTRIBUTIONS (16,314) (31,912) (8,947) (18,222) (3,670) (6,157) (5,120) (10,880)
------ ------- -------- ------- ------- ------- -------- -------
SHARE TRANSACTIONS:
VALUE FROM SHARES ISSUED IN
CONNECTION WITH ACQUISITION OF
COMMON TRUST FUND ASSETS -- -- -- -- -- -- -- --
PROCEEDS FROM SHARES ISSUED 786,074 1,710,272 458,988 731,609 146,060 334,675 19,289 47,498
REINVESTMENT OF CASH DISTRIBUTIONS 2,024 5,475 7,355 17,633 2,457 3,939 2,578 6,500
COST OF SHARES REDEEMED (731,721) (1,553,624) (455,082)(766,882)(115,725) (334,124) (35,509) (52,889)
------ ------- -------- ------- ------- ------- -------- -------
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS 56,377 162,123 11,261 (17,640) 32,792 4,490 (13,642) 1,109
------ ------- -------- ------- ------- ------- -------- -------
TOTAL INCREASE (DECREASE) IN NET
ASSETS 56,377 162,112 11,266 (17,637) 32,791 4,489 (12,239) 3,223
NET ASSETS:
BEGINNING OF PERIOD 1,007,724 845,612 372,657 390,294 127,588 123,099 197,256 194,033
------ ------- -------- ------- ------- ------- -------- -------
NET ASSETS:
END OF PERIOD $1,064,101 $1,007,724 $383,923 $372,657 $160,379 $127,588 $185,017 $197,256
====== ======= ======== ======= ======= ======= ======== =======
CAPITAL SHARE TRANSACTIONS:
SHARES ISSUED IN CONNECTION WITH
ACQUISITION OF COMMON TRUST
FUND ASSETS -- -- -- -- -- -- -- --
SHARES ISSUED 786,074 1,710,272 458,988 731,609 146,060 334,675 1,900 4,714
SHARES ISSUED IN LIEU OF CASH
DISTRIBUTIONS 2,024 5,475 7,355 17,631 2,457 3,939 254 645
SHARES REDEEMED (731,721) (1,553,624) (455,082)(766,882)(115,725) (334,124) (3,499) (5,251)
------ ------- -------- ------- ------- ------- -------- -------
NET INCREASE (DECREASE) IN CAPITAL
SHARES 56,377 162,123 11,261 (17,642) 32,792 4,490 (1,345) 108
====== ======= ======== ======= ======= ======= ======== =======
</TABLE>
(1)BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND COMMENCED OPERATIONS ON JUNE 30,
1997.
66
<PAGE>
<TABLE>
<CAPTION>
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
============================================================================================================================
6/1/98 6/1/97 6/1/98 6/1/97 6/1/98 6/1/97 6/1/98 6/1/97 6/1/98 6/30/97 6/1/98 6/1/97
TO TO TO TO TO TO TO TO TO TO TO TO
11/30/98 5/31/98 11/30/98 5/31/98 11/30/98 5/31/98 11/30/98 5/31/98 11/30/98 5/31/98(1) 11/30/98 5/31/98
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 10,291 $ 21,734 $ 7,027 $ 13,560 $ 6,893 $ 12,959 $ 3,511 $ 5,476 $ 1,183 $ 2,029 $ 4,766 $ 8,072
2,254 3,216 321 643 3,786 4,330 264 905 331 510 700 159
5,356 5,632 6,098 4,799 816 7,040 2,013 3,929 500 924 1,851 6,487
- --------- --------- --------- -------- -------- -------- -------- -------- -------- ------- -------- --------
17,901 30,582 13,446 19,002 11,495 24,329 5,788 10,310 2,014 3,463 7,317 14,718
- --------- --------- --------- -------- -------- -------- -------- -------- -------- ------- -------- --------
(10,291) (21,861) (7,047) (13,561) (6,893) (12,959) (3,511) (5,476) (1,183) (2,029) (4,766) (8,072)
-- -- -- -- -- (2,598) -- (193) -- (86) -- --
- --------- --------- --------- -------- -------- -------- -------- -------- -------- ------- -------- --------
(10,291) (21,861) (7,047) (13,561) (6,893) (15,557) (3,511) (5,669) (1,183) (2,115) (4,766) (8,072)
- --------- --------- --------- -------- -------- -------- -------- -------- -------- ------- -------- --------
-- -- -- -- -- -- -- -- -- 41,223 -- --
27,179 97,384 30,923 66,378 30,901 69,083 31,262 48,673 6,793 12,935 37,124 82,919
1,720 4,251 530 1,330 261 2,973 543 1,144 8 91 1,157 2,261
(56,880) (52,578) (15,403) (29,571) (18,220) (27,776) (7,760) (15,455) (2,104) (3,804) (13,889) (33,148)
- --------- --------- --------- -------- -------- -------- -------- -------- -------- ------- -------- --------
(27,981) 49,057 16,050 38,137 12,942 44,280 24,045 34,362 4,697 50,445 24,392 52,032
- --------- --------- --------- -------- -------- -------- -------- -------- -------- ------- -------- --------
(20,371) 57,778 22,449 43,578 17,544 53,052 26,322 39,003 5,528 51,793 26,943 58,678
392,556 334,778 252,719 209,141 303,578 250,526 142,107 103,104 51,793 -- 206,137 147,459
- --------- --------- --------- -------- -------- -------- -------- -------- -------- ------- -------- --------
$372,185 $392,556 $275,168 $252,719 $321,122 $303,578 $168,429 $142,107 $57,321 $51,793 $233,080 $206,137
========= ========= ========= ======== ======== ======== ======== ======== ======== ======= ======== ========
-- -- -- -- -- -- -- -- -- 4,122 -- --
2,621 9,526 3,182 6,957 2,920 6,620 2,882 4,557 654 1,269 3,541 8,043
165 415 54 139 25 287 50 107 1 9 110 219
(5,479) (5,145) (1,582) (3,093) (1,720) (2,663) (714) (1,449) (203) (372) (1,327) (3,213)
- --------- --------- --------- -------- -------- -------- -------- -------- -------- ------- -------- --------
(2,693) 4,796 1,654 4,003 1,225 4,244 2,218 3,215 452 5,028 2,324 5,049
========= ========= ========= ======== ======== ======== ======== ======== ======== ======= ======== ========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
67
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000)
- ------------------------------------------------------------------------------------------------------------------------------------
for the period ended November 30, 1998 (unaudited) and the period ended may 31, 1998
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
====================================================================================================================================
6/1/98 6/1/97 6/1/98 6/1/97 6/1/98 6/1/97 6/1/98 6/1/97 6/1/98 6/1/97
TO TO TO TO TO TO TO TO TO TO
11/30/98 5/31/98 11/30/98 5/31/98 11/30/98 5/31/98 11/30/98 5/31/98 11/30/98 5/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
NET INVESTMENT INCOME (LOSS) $ 1,813 $ 2,992 $ 661 $1,143 $ 899 $ 1,853 $ (352) $ (986) $ -- $ 172
NET REALIZED GAIN (LOSS) ON INVESTMENTS 583 133 1,163 2,239 10,798 3,027 (5,639) 10,066 (14,144) 2,006
NET REALIZED GAIN (LOSS) FROM FORWARD
FOREIGN CURRENCY CONTRACTS AND FOREIGN
CURRENCY TRANSACTIONS -- -- -- -- (7) -- (4) -- 1,453 (1,046)
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS 255 1,822 (1,097) 4,325 (9,397) 116,058 (24,648) 23,681 (17,764) 21,711
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON FOREIGN FORWARD
CURRENCY CONTRACTS, FOREIGN CURRENCIES
AND TRANSLATION OF OTHER ASSETS AND
LIABILITIES IN FOREIGN CURRENCY -- -- -- -- -- -- -- -- (4,471) 1,965
-------- ------- ------- ------- -------- -------- -------- -------- --------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,651 4,947 727 7,707 2,293 120,938 (30,643) 32,761 (34,926) 24,808
-------- ------- ------- ------- -------- -------- -------- -------- --------- --------
DISTRIBUTIONS TO
SHAREHOLDERS:
NET INVESTMENT INCOME (1,813) (2,992) (663) (1,113) (729) (2,391) -- -- -- (5,351)
REALIZED CAPITAL GAINS -- (230) -- (1,519) -- (9,315) -- (17,945) -- (5,264)
-------- ------- ------- ------- -------- -------- -------- -------- --------- --------
TOTAL DISTRIBUTIONS (1,813) (3,222) (663) (2,632) (729) (11,706) -- (17,945) -- (10,615)
-------- ------- ------- ------- -------- -------- -------- -------- --------- --------
SHARE TRANSACTIONS:
PROCEEDS FROM SHARES ISSUED 16,137 26,731 6,421 18,164 127,623 174,666 99,798 147,413 153,383 188,204
REINVESTMENT OF CASH DISTRIBUTIONS 256 686 615 2,550 353 9,909 -- 14,178 -- 4,260
COST OF SHARES REDEEMED (5,767) (6,097) (6,353)(11,028)(139,401)(197,762) (137,571)(180,344) (163,341)(239,886)
-------- ------- ------- ------- -------- -------- -------- -------- --------- --------
INCREASE (DECREASE) IN
NET ASSETS FROM
SHARE TRANSACTIONS 10,626 21,320 683 9,686 (11,425) (13,187) (37,773) (18,753) (9,958) (47,422)
-------- ------- ------- ------- -------- -------- -------- -------- --------- --------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 11,464 23,045 747 14,761 (9,861) 96,045 (68,416) (3,937) (44,884) (33,229)
NET ASSETS:
BEGINNING OF PERIOD 76,797 53,752 50,283 35,522 553,997 457,952 257,550 261,487 469,819 503,048
-------- ------- ------- ------- -------- -------- -------- -------- --------- --------
NET ASSETS:
END OF PERIOD $88,261 $76,797 $51,030 $50,283 $544,136 $553,997 $189,134 $257,550 $ 424,935 $469,819
======== ======= ======= ======= ======== ======== ======== ======== ========= ========
CAPITAL SHARE TRANSACTIONS:
SHARES ISSUED 1,508 2,532 428 1,246 6,065 8,883 9,082 11,199 12,244 14,285
SHARES ISSUED IN LIEU OF
CASH DISTRIBUTIONS 24 65 41 178 17 516 -- 1,107 -- 351
SHARES REDEEMED (540) (578) (426) (759) (6,636) (10,004) (12,248) (13,815) (12,974) (18,447)
-------- ------- ------- ------- -------- -------- -------- -------- --------- --------
NET INCREASE (DECREASE) IN
CAPITAL SHARES 992 2,019 43 665 (554) (605) (3,166) (1,509) (730) (3,811)
======== ======= ======= ======= ======== ======== ======== ======== ========= ========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
68
<PAGE>
<TABLE>
<CAPTION>
BOSTON 1784 FUNDS
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 MONEY MARKET FUNDS
FOR THE PERIOD ENDED NOVEMBER 30, 1998 (UNAUDITED) AND THE PERIODS ENDED MAY 31 OR DECEMBER 31
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
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 TAX-FREE MONEY MARKET FUND
FOR THE SIX MONTH PERIOD
ENDED NOVEMBER 30, 1998+ $1.00 0.02 (0.02) $1.00 3.19% $1,064,101 0.52% 3.05% 0.52% 3.05%
FOR THE YEAR ENDED
MAY 31, 1998 $1.00 0.03 (0.03) $1.00 3.33% $1,007,724 0.53% 3.28% 0.53% 3.28%
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, 1998+ $1.00 0.02 (0.02) $1.00 4.92% $ 383,923 0.65% 4.71% 0.72% 4.64%
FOR THE YEAR ENDED
MAY 31, 1998 $1.00 0.05 (0.05) $1.00 5.02% $ 372,657 0.65% 4.91% 0.70% 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, 1998+ $1.00 0.02 (0.02) $1.00 5.10% $ 160,379 0.65% 4.92% 0.72% 4.85%
FOR THE YEAR ENDED
MAY 31, 1998 $1.00 0.05 (0.05) $1.00 5.16% $ 127,588 0.65% 5.05% 0.70% 5.00%
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%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ ALL RATIOS FOR THE PERIOD INCLUDING TOTAL RETURN 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
69
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 BOND FUNDS
FOR THE PERIOD ENDED NOVEMBER 30, 1998 (UNAUDITED) AND THE PERIODS ENDED MAY 31 OR DECEMBER 31
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND NET NET RATIO
ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET ASSETS RATIO OF NET
VALUE NET GAINS OR FROM NET FROM VALUE END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 SHORT-TERM INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+$10.09 0.27 0.07 (0.27) -- $10.16 3.42%* $185,017 0.64% 5.35%
FOR THE YEAR ENDED
MAY 31, 1998 $ 9.98 0.57 0.11 (0.57) -- $10.09 6.98% $197,256 0.64% 5.67%
FOR THE YEAR ENDED
MAY 31, 1997 $ 9.93 0.58 0.05 (0.58) -- $ 9.98 6.47% $194,033 0.65% 5.78%
FOR THE YEAR ENDED
MAY 31, 1996 $10.09 0.60 (0.12) (0.60) (0.04) $ 9.93 4.87% $ 86,383 0.63% 5.87%
FOR THE PERIOD ENDED
MAY 31, 1995(1) $10.00 0.56 0.09 (0.56) -- $10.09 6.74%* $ 52,581 0.48% 6.31%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+$10.25 0.28 0.20 (0.28) -- $10.45 4.70%* $372,185 0.80% 5.33%
FOR THE YEAR ENDED
MAY 31, 1998 $ 9.99 0.61 0.26 (0.61) -- $10.25 8.88% $392,556 0.80% 5.91%
FOR THE YEAR ENDED
MAY 31, 1997 $ 9.90 0.63 0.17 (0.63) (0.08) $ 9.99 8.32% $334,778 0.80% 6.31%
FOR THE YEAR ENDED
MAY 31, 1996 $10.39 0.65 (0.37) (0.65) (0.12) $ 9.90 2.64% $235,022 0.80% 6.17%
FOR THE PERIOD ENDED
MAY 31, 1995(1) $10.00 0.62 0.39 (0.62) -- $10.39 10.69%* $196,515 0.55% 7.01%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+$ 9.60 0.26 0.23 (0.26) -- $ 9.83 5.13%* $275,168 0.80% 5.28%
FOR THE YEAR ENDED
MAY 31, 1998 $ 9.37 0.55 0.23 (0.55) -- $ 9.60 8.56% $252,719 0.80% 5.80%
FOR THE YEAR ENDED
MAY 31, 1997 $ 9.31 0.59 0.06 (0.59) -- $ 9.37 7.16% $209,141 0.79% 6.30%
FOR THE YEAR ENDED
MAY 31, 1996 $ 9.57 0.61 (0.26) (0.61) -- $ 9.31 3.65% $167,494 0.80% 6.23%
FOR THE YEAR ENDED
MAY 31, 1995 $ 9.36 0.58 0.21 (0.58) -- $ 9.57 8.79% $130,081 0.80% 6.24%
FOR THE PERIOD ENDED
MAY 31, 1994(2) $10.00 0.59 (0.64) (0.59) -- $ 9.36 (0.65)%* $ 92,387 0.31% 6.08%
- ------------------------------------------------------------------------------------------------------------------------------------
(CONTINUED)
-----------------------------------------
RATIO RATIO
OF EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- ----------------------------------------------------------------------------------------------------
BOSTON 1784 SHORT-TERM INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+ 0.89% 5.10% 15.76%
FOR THE YEAR ENDED
MAY 31, 1998 0.89% 5.42% 83.84%
FOR THE YEAR ENDED
MAY 31, 1997 0.93% 5.50% 128.11%
FOR THE YEAR ENDED
MAY 31, 1996 1.06% 5.44% 95.06%
FOR THE PERIOD ENDED
MAY 31, 1995(1) 1.27% 5.52% 84.54%
- ---------------------------------------------------------------------------------------------------
BOSTON 1784 INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+ 1.12% 5.01% 24.68%
FOR THE YEAR ENDED
MAY 31, 1998 1.11% 5.60% 79.09%
FOR THE YEAR ENDED
MAY 31, 1997 1.15% 5.96% 78.63%
FOR THE YEAR ENDED
MAY 31, 1996 1.20% 5.77% 100.51%
FOR THE PERIOD ENDED
MAY 31, 1995(1) 1.23% 6.33% 80.53%
- ---------------------------------------------------------------------------------------------------
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+ 1.12% 4.96% 25.86%
FOR THE YEAR ENDED
MAY 31, 1998 1.12% 5.48% 73.65%
FOR THE YEAR ENDED
MAY 31, 1997 1.16% 5.93% 98.22%
FOR THE YEAR ENDED
MAY 31, 1996 1.24% 5.79% 158.66%
FOR THE YEAR ENDED
MAY 31, 1995 1.27% 5.77% 142.14%
FOR THE PERIOD ENDED
MAY 31, 1994(2) 1.35% 5.04% 144.77%
- ---------------------------------------------------------------------------------------------------
</TABLE>
+ 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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
70
<PAGE>
<TABLE>
<CAPTION>
BOSTON 1784 FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT INCOME FUNDS
FOR THE PERIOD ENDED NOVEMBER 30, 1998 (UNAUDITED) AND THE PERIODS ENDED MAY 31
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND NET NET RATIO
ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET ASSETS RATIO OF NET
VALUE NET GAINS OR FROM NET FROM VALUE END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+$10.52 0.23 0.16 (0.23) -- $10.68 3.77%* $321,122 0.80% 4.38%
FOR THE YEAR ENDED
MAY 31, 1998 $10.18 0.48 0.44 (0.48) (0.10) $10.52 9.24% $303,578 0.80% 4.62%
FOR THE YEAR ENDED
MAY 31, 1997 $ 9.99 0.50 0.19 (0.50) -- $10.18 7.74% $250,526 0.80% 4.92%
FOR THE YEAR ENDED
MAY 31, 1996 $10.14 0.51 (0.09) (0.51) (0.06) $ 9.99 4.31% $196,787 0.79% 4.90%
FOR THE YEAR ENDED
MAY 31, 1995 $ 9.90 0.48 0.24 (0.48) -- $10.14 7.58% $176,345 0.80% 5.02%
FOR THE PERIOD ENDED
MAY 31, 1994(1) $10.00 0.49 (0.10) (0.49) -- $ 9.90 3.93%* $ 36,365 0.32% 5.06%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+$10.81 0.24 0.15 (0.24) -- $10.96 3.66%* $168,429 0.80% 4.44%
FOR THE YEAR ENDED
MAY 31, 1998 $10.38 0.50 0.45 (0.50) (0.02) $10.81 9.29% $142,107 0.80% 4.66%
FOR THE YEAR ENDED
MAY 31, 1997 $10.17 0.51 0.21 (0.51) -- $10.38 7.26% $103,104 0.76% 4.94%
FOR THE YEAR ENDED
MAY 31, 1996 $10.27 0.53 (0.10) (0.53) -- $10.17 4.20% $ 81,441 0.75% 5.02%
FOR THE PERIOD ENDED
MAY 31, 1995(2) $10.00 0.45 0.27 (0.45) -- $10.27 7.45%* $ 61,369 0.52% 5.44%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+$10.30 0.22 0.16 (0.22) -- $10.46 3.77%* $ 57,321 0.80% 4.32%
FOR THE PERIOD ENDED
MAY 31, 1998(3) $10.00 0.43 0.32 (0.43) (0.02) $10.30 7.63%* $ 51,793 0.80% 4.59%
- ------------------------------------------------------------------------------------------------------------------------------------
(CONTINUED)
---------------------------------
RATIO RATIO
OF EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- ---------------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+ 1.11% 4.07% 19.37%
FOR THE YEAR ENDED
MAY 31, 1998 1.12% 4.30% 34.06%
FOR THE YEAR ENDED
MAY 31, 1997 1.17% 4.55% 33.24%
FOR THE YEAR ENDED
MAY 31, 1996 1.21% 4.48% 37.35%
FOR THE YEAR ENDED
MAY 31, 1995 1.26% 4.56% 74.74%
FOR THE PERIOD ENDED
MAY 31, 1994(1) 1.61% 3.77% 98.83%
- ---------------------------------------------------------------------------------------
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+ 1.13% 4.11% 2.82%
FOR THE YEAR ENDED
MAY 31, 1998 1.14% 4.32% 16.81%
FOR THE YEAR ENDED
MAY 31, 1997 1.17% 4.53% 4.28%
FOR THE YEAR ENDED
MAY 31, 1996 1.29% 4.48% 20.41%
FOR THE PERIOD ENDED
MAY 31, 1995(2) 1.40% 4.56% 35.56%
- --------------------------------------------------------------------------------------
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+ 1.16% 3.96% 11.18%
FOR THE PERIOD ENDED
MAY 31, 1998(3) 1.19% 4.20% 21.35%
- --------------------------------------------------------------------------------------
</TABLE>
+ 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 COMMENCED OPERATIONS ON
JUNE 14, 1993. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(2) BOSTON 1784 CONNECTICUT 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.
71
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT INCOME FUNDS (CONTINUED)
FOR THE PERIOD ENDED NOVEMBER 30, 1998 (UNAUDITED) AND THE PERIODS ENDED MAY 31
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND NET NET RATIO
ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET ASSETS RATIO OF NET
VALUE NET GAINS OR FROM NET FROM VALUE END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+$10.42 0.23 0.12 (0.23) -- $10.54 3.38%* $233,080 0.80% 4.36%
FOR THE YEAR ENDED
MAY 31, 1998 $10.01 0.47 0.41 (0.47) -- $10.42 8.91% $206,137 0.80% 4.54%
FOR THE YEAR ENDED
MAY 31, 1997 $ 9.78 0.47 0.23 (0.47) -- $10.01 7.30% $147,459 0.79% 4.74%
FOR THE YEAR ENDED
MAY 31, 1996 $ 9.90 0.48 (0.12) (0.48) -- $ 9.78 3.64% $106,619 0.80% 4.73%
FOR THE YEAR ENDED
MAY 31, 1995 $ 9.81 0.47 0.09 (0.47) -- $ 9.90 6.00% $ 82,058 0.80% 4.93%
FOR THE PERIOD ENDED
MAY 31, 1994(1) $10.00 0.50 (0.19) (0.50) -- $ 9.81 3.04%* $ 49,662 0.33% 5.10%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+$10.62 0.24 0.11 (0.24) -- $10.73 3.32%* $ 88,261 0.80% 4.48%
FOR THE YEAR ENDED
MAY 31, 1998 $10.31 0.49 0.35 (0.49) (0.04) $10.62 8.28% $ 76,797 0.80% 4.64%
FOR THE YEAR ENDED
MAY 31, 1997 $10.06 0.50 0.25 (0.50) -- $10.31 7.61% $ 53,752 0.79% 4.88%
FOR THE YEAR ENDED
MAY 31, 1996 $10.13 0.53 (0.07) (0.53) -- $10.06 4.65% $ 37,904 0.77% 5.16%
FOR THE PERIOD ENDED
MAY 31, 1995(2) $10.00 0.45 0.13 (0.45) -- $10.13 6.09%* $ 32,495 0.54% 5.56%
- ------------------------------------------------------------------------------------------------------------------------------------
(CONTINUED)
---------------------------------
RATIO RATIO
OF EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- --------------------------------------------------------------------------------------------------
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+ 1.12% 4.04% 6.62%
FOR THE YEAR ENDED
MAY 31, 1998 1.14% 4.20% 6.45%
FOR THE YEAR ENDED
MAY 31, 1997 1.18% 4.35% 9.47%
FOR THE YEAR ENDED
MAY 31, 1996 1.28% 4.25% 47.00%
FOR THE YEAR ENDED
MAY 31, 1995 1.35% 4.38% 34.59%
FOR THE PERIOD ENDED
MAY 31, 1994(1) 1.41% 4.02% 13.99%
- -------------------------------------------------------------------------------------------------
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+ 1.14% 4.14% 8.67%
FOR THE YEAR ENDED
MAY 31, 1998 1.16% 4.28% 13.79%
FOR THE YEAR ENDED
MAY 31, 1997 1.21% 4.46% 8.18%
FOR THE YEAR ENDED
MAY 31, 1996 1.35% 4.58% 19.68%
FOR THE PERIOD ENDED
MAY 31, 1995(2) 1.60% 4.50% 57.51%
- -------------------------------------------------------------------------------------------------
</TABLE>
+ ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
* RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
(1) BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND COMMENCED OPERATIONS ON
JUNE 14, 1993. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
(2) BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND COMMENCED OPERATIONS ON
AUGUST 1, 1994. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
72
<PAGE>
<TABLE>
<CAPTION>
BOSTON 1784 FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 STOCK FUNDS
FOR THE PERIOD ENDED NOVEMBER 30, 1998 (UNAUDITED) AND THE PERIODS ENDED MAY 31
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND NET NET RATIO
ASSET NET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET ASSETS RATIO OF NET
VALUE INVESTMENT GAINS OR FROM NET FROM VALUE END OF EXPENSES INCOME
BEGINNING INCOME (LOSSES) ON INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE TO AVERAGE
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 ASSET ALLOCATION FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+$15.16 0.20 0.03 (0.20) -- $15.19 1.54%* $ 51,030 0.96% 2.63%
FOR THE YEAR ENDED
MAY 31, 1998 $13.40 0.37 2.30 (0.38) (0.53) $15.16 20.51% $ 50,283 0.98% 2.66%
FOR THE YEAR ENDED
MAY 31, 1997 $12.31 0.34 1.44 (0.33) (0.36) $13.40 14.89% $ 35,522 1.07% 2.87%
FOR THE YEAR ENDED
MAY 31, 1996 $10.99 0.31 1.61 (0.31) (0.29) $12.31 17.83% $ 16,831 1.25% 2.86%
FOR THE YEAR ENDED
MAY 31, 1995 $ 9.84 0.28 1.15 (0.27) (0.01) $10.99 14.84% $ 8,622 1.25% 2.88%
FOR THE PERIOD ENDED
MAY 31, 1994(1) $10.00 0.19 (0.20) (0.15) (0.00) $ 9.84 (0.15%*) $ 6,928 1.25% 2.62%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 GROWTH AND INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+$21.72 0.07 0.05 (0.03) -- $21.81 0.55%* $544,136 0.91% 0.33%
FOR THE YEAR ENDED
MAY 31, 1998 $17.54 0.07 4.55 (0.09) (0.35) $21.72 26.71% $553,997 0.90% 0.36%
FOR THE YEAR ENDED
MAY 31, 1997 $15.23 0.12 2.63 (0.11) (0.33) $17.54 18.33% $457,952 0.92% 0.77%
FOR THE YEAR ENDED
MAY 31, 1996 $12.16 0.10 3.08 (0.11) (0.00) $15.23 26.32% $303,463 0.94% 0.78%
FOR THE YEAR ENDED
MAY 31, 1995 $10.57 0.11 1.67 (0.10) (0.09) $12.16 17.09% $229,200 0.94% 1.05%
FOR THE PERIOD ENDED
MAY 31, 1994(2) $10.00 0.12 0.56 (0.11) (0.00) $10.57 6.80%* $121,717 0.35% 1.23%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 GROWTH FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+$12.93 (0.03) (1.61) -- -- $11.29 (12.68%*) $189,134 0.94% (0.34%)
FOR THE YEAR ENDED
MAY 31, 1998 $12.20 (0.05) 1.59 -- (0.81) $12.93 12.64% $257,550 0.91% (0.35%)
FOR THE YEAR ENDED
MAY 31, 1997 $11.27 0.02 0.96 (0.05) (0.00) $12.20 8.77% $261,487 0.77% 0.17%
FOR THE PERIOD ENDED
MAY 31, 1996(3) $10.00 0.02 1.25 (0.00) (0.00) $11.27 12.70%* $ 46,026 0.20% 1.75%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INTERNATIONAL EQUITY FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+$13.69 -- (1.04) -- -- $12.65 (7.60%*) $424,935 1.24% 0.00%
FOR THE YEAR ENDED
MAY 31, 1998 $13.20 (0.02) 0.80 (0.15) (0.14) $13.69 6.19% $469,819 1.24% 0.04%
FOR THE YEAR ENDED
MAY 31, 1997 $12.05 0.07 1.23 (0.09) (0.06) $13.20 10.93% $503,048 1.27% 0.41%
FOR THE YEAR ENDED
MAY 31, 1996 $10.41 0.11 1.85 (0.27) (0.05) $12.05 19.08% $362,460 1.13% 0.76%
FOR THE PERIOD ENDED
MAY 31, 1995(4) $10.00 0.06 0.35 (0.00) (0.00) $10.41 4.73%* $148,439 0.89% 2.06%
- ------------------------------------------------------------------------------------------------------------------------------------
(CONTINUED)
---------------------------------
RATIO RATIO
OF EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- ---------------------------------------------------------------------------------------
BOSTON 1784 ASSET ALLOCATION FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+ 1.21% 2.38% 18.41%
FOR THE YEAR ENDED
MAY 31, 1998 1.23% 2.41% 47.83%
FOR THE YEAR ENDED
MAY 31, 1997 1.37% 2.57% 23.60%
FOR THE YEAR ENDED
MAY 31, 1996 1.90% 2.21% 39.56%
FOR THE YEAR ENDED
MAY 31, 1995 2.51% 1.62% 67.23%
FOR THE PERIOD ENDED
MAY 31, 1994(1) 3.61% 0.26% 28.19%
- ---------------------------------------------------------------------------------------
BOSTON 1784 GROWTH AND INCOME FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+ 1.16% 0.08% 29.50%
FOR THE YEAR ENDED
MAY 31, 1998 1.15% 0.11% 39.03%
FOR THE YEAR ENDED
MAY 31, 1997 1.19% 0.50% 15.35%
FOR THE YEAR ENDED
MAY 31, 1996 1.24% 0.48% 39.50%
FOR THE YEAR ENDED
MAY 31, 1995 1.23% 0.76% 38.94%
FOR THE PERIOD ENDED
MAY 31, 1994(2) 1.36% 0.22% 31.55%
- --------------------------------------------------------------------------------------
BOSTON 1784 GROWTH FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+ 1.19% (0.59%) 25.85%
FOR THE YEAR ENDED
MAY 31, 1998 1.16% (0.60%) 48.60%
FOR THE YEAR ENDED
MAY 31, 1997 1.15% (0.21%) 57.46%
FOR THE PERIOD ENDED
MAY 31, 1996(3) 1.73% 0.22% 0.00%
- --------------------------------------------------------------------------------------
BOSTON 1784 INTERNATIONAL EQUITY FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1998+ 1.49% (0.25%) 48.75%
FOR THE YEAR ENDED
MAY 31, 1998 1.49% (0.21%) 103.47%
FOR THE YEAR ENDED
MAY 31, 1997 1.52% 0.16% 22.88%
FOR THE YEAR ENDED
MAY 31, 1996 1.61% 0.28% 15.55%
FOR THE PERIOD ENDED
MAY 31, 1995(4) 1.70% 1.25% 11.03%
- --------------------------------------------------------------------------------------
</TABLE>
+ 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 BEEN ANNUALIZED.
(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.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
73
<PAGE>
November 30, 1998
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, 1998:
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 Stock, Bond and Tax-Exempt Income Fund's 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
74
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
the Board of Trustees of the Trust. In making such valuations, the pricing
services may employ methodologies that utilize actual market transactions,
broker-dealer supplied valuations or other electronic data processing
techniques.
Equity securities listed on a domestic securities exchange for which
quotations are readily available, including securities traded over the counter,
are valued by a pricing service at the last quoted sale price on the principal
exchange on which they are traded on valuation date, or, if there is no such
reported sale on the valuation date, at the most recent quoted bid price.
Equity securities which are primarily traded on a foreign exchange are
generally valued by a pricing service at the preceding closing value on the
exchange.
Securities for which market quotations are not readily available are 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 are 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- 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
75
<PAGE>
NOVEMBER 30, 1998
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
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.
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
76
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
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 is entitled 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, 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" and together with
BankBoston the "International Advisers"). The Advisory Agreement with BankBoston
is dated as of November 28, 1994; the Advisory Agreement with Kleinwort 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 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. were parties to a custodial agreement dated
June 1, 1993 under which BankBoston, N.A. held cash, securities and other assets
of the Trust as required by the Investment Company Act of
77
<PAGE>
NOVEMBER 30, 1998
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
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 in average daily net assets and 0.0050% for the average daily
net assets over $200 million of each of the Funds. On September 30, 1998, the
Custodial Agreement was amended and assigned to Investors Bank & Trust Company
("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 Fund's assets. In the
capacity as custodian to the Trust, BankBoston, N.A. played and IBT 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 Investments
Mutual Funds Services (formerly 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 voluntarily waive all of its 12b-1 distribution
fee for the six month period ended November 30, 1998.
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. BankBoston, N.A. provides
shareholder services to the other Boston 1784 Funds presented in this report,
for which it does not receive compensation.
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, 1998, are as presented below for the Bond, Tax-Exempt Income and Stock
Funds.
78
<PAGE>
<TABLE>
<CAPTION>
BOSTON 1784 FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
FUND INVESTMENT TRANSACTIONS (000):
PURCHASES SALES
====================================================================================================================================
U.S. GOVERNMENT U.S. GOVERNMENT
FOR THE PERIOD ENDED NOVEMBER 30, 1998 SECURITIES OTHER SECURITIES OTHER
====================================================================================================================================
<S> <C> <C> <C> <C>
BOSTON 1784 SHORT-TERM INCOME FUND $ 18,447 $ 4,998 $19,173 $ 22,864
BOSTON 1784 INCOME FUND 73,064 17,254 64,727 42,784
BOSTON 1784 U.S. GOVERNMENT
MEDIUM-TERM INCOME FUND 80,865 -- 47,928 11,969
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND -- 70,065 -- 59,066
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND -- 33,939 -- 4,119
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND -- 10,751 -- 5,753
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND -- 39,208 -- 13,640
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND -- 20,210 -- 6,641
BOSTON 1784 ASSET ALLOCATION FUND 3,439 1,422 1,888 1,953
BOSTON 1784 GROWTH AND INCOME FUND -- 147,192 -- 153,575
BOSTON 1784 GROWTH FUND -- 51,575 -- 91,948
BOSTON 1784 INTERNATIONAL EQUITY FUND -- 202,496 -- 206,105
</TABLE>
At November 30, 1998, 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, 1998 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
===========================================================================================================================
<S> <C> <C> <C> <C>
BOSTON 1784 SHORT-TERM INCOME FUND $ 2,401 $ (157) $ 2,244
BOSTON 1784 INCOME FUND 11,540 (883) 10,657
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND 10,563 (328) 10,235
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND 14,859 (95) 14,764
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND 8,714 (24) 8,690
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND 2,418 -- 2,418
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND 10,305 (15) 10,290
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND 3,558 (49) 3,509
BOSTON 1784 ASSET ALLOCATION FUND 8,083 (960) 7,123
BOSTON 1784 GROWTH AND INCOME FUND 250,877 (1,823) 249,054
BOSTON 1784 GROWTH FUND 54,748 (8,509) 46,239
BOSTON 1784 INTERNATIONAL EQUITY FUND 92,323 (8,465) 83,858
</TABLE>
79
<PAGE>
NOVEMBER 30, 1998
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. 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 a commitment fee of
.10% per annum on the unused portion of the line of credit. There were no
outstanding borrowings at November 30, 1998.
8. 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
9. FORWARD FOREIGN CURRENCY CONTRACTS
Boston 1784 International Equity Fund enters 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 Fund does not intend to hold the contracts to maturity. All commitments are
"marked-to-market" daily at the applicable foreign exchange rate and any
resulting unrealized gains or losses are recorded currently. The Fund realizes
gains and losses at the time 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 elimi-
80
<PAGE>
nate 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.
The following forward foreign currency contracts were outstanding at November
30, 1998:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INTERNATIONAL EQUITY FUND
FOREIGN CURRENCY PURCHASES:
CONTRACT TO IN EXCHANGE UNREALIZED
MATURITY RECEIVE FOR DEPRECIATION
DATE (000) (000) (000)
===========================================================================================================================
<S> <C> <C> <C> <C>
12/21/98 JPY 4,250,000 $35,121 $(473)
======
- ---------------------------------------------------------------------------------------------------------------------------
FOREIGN CURRENCY SALES:
CONTRACT TO IN EXCHANGE UNREALIZED
MATURITY DELIVER FOR DEPRECIATION
DATE (000) (000) (000)
===========================================================================================================================
12/21/98 JPY 4,250,000 $32,628 $(2,020)
======
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
CURRENCY LEGEND
JPY--Japanese Yen
81
<PAGE>
MONEY MARKET FUNDS
o BOSTON 1784 TAX-FREE MONEY MARKET FUND
o BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
o BOSTON 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND*
o BOSTON 1784 PRIME MONEY MARKET FUND
o BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND*
BOND FUNDS
o BOSTON 1784 SHORT-TERM INCOME FUND
o BOSTON 1784 INCOME FUND
o BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
- --------------------------------------------------------------------------------
TAX-EXEMPT INCOME FUNDS
o BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
o BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
o BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
o BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
o BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
STOCK FUNDS
o BOSTON 1784 ASSET ALLOCATION FUND
o BOSTON 1784 GROWTH AND INCOME FUND
o BOSTON 1784 GROWTH FUND
o BOSTON 1784 INTERNATIONAL EQUITY FUND
*COVERED BY BOSTON 1784 INSTITUTIONAL MONEY
MARKET FUNDS SEMI-ANNUAL REPORT
[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 Investments Mutual Funds Services
Oaks, PA 19456
DISTRIBUTOR
SEI Investments Distribution Co.
Oaks, PA 19456
LEGAL COUNSEL
Bingham Dana LLP
Boston, MA 02110
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers, LLP
Philadelphia, PA 19103
CUSTODIAN
Investors Bank and Trust Company
Boston, MA 02116
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.
