ANNUAL
REPORT
[logo omitted]
to Shareholders
May 31, 2000
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TABLE OF CONTENTS
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Investment Adviser's Report 1
Management's Discussion of Fund Performance 4
Financial Statements 21
Report of Independent Accountants 103
Notice to Shareholders 106
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BOSTON 1784 FUNDS:
[bullet] ARE NOT INSURED BY THE FDICOR ANY OTHER GOVERNMENTAL AGENCY;
[bullet] ARE NOT GUARANTEED BY FLEET NATIONAL BANK OR ANY OF
ITS AFFILIATES;
[bullet] ARE NOT DEPOSITS OR OBLIGATIONS OF FLEET NATIONAL BANK OR ANY
OF ITS AFFILIATES;
[bullet] INVOLVE INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE
PRINCIPAL AMOUNT INVESTED.
FLEET NATIONAL BANK (FORMERLY 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 FLEET NATIONAL BANK AND ITS AFFILIATES.
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[BLANK PAGE]
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This report and the financial statements contained herein are for the general
information of the shareholders of the funds named above. This report is not
authorized for distribution to prospective investors in a fund unless preceded
or accompanied by a currently effective prospectus.
MF-0148
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BOSTON 1784 FUNDS
INVESTMENT ADVISER'S REPORT
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[photo omitted]
THOMAS M. O'NEILL
CHIEF INVESTMENT OFFICER
In the 12 months ended May 31, 2000, the returns for stock, bond, and money
market investments were buffeted by the outlook for economic growth, inflation,
and interest rates. Uncertainty made for volatile markets.
For most of the fiscal year, economic growth was strong and inflation was
moderate. In the second quarter of 1999, inflation stood at about 2.60% and
gross domestic product ("GDP"), which measures the output of U.S. goods and
services, improved at an annualized rate of 1.80%. While that rate of growth was
lower than the 4.30% rate for the first quarter of 1999, there were many signs
that U.S. growth would remain strong. To keep inflation under control, the
Federal Reserve Board increased the short-term Federal Funds rate by 0.25% at
each of its meetings in June and August.
GDP growth accelerated to a rate of 5.50% in the third quarter of 1999. While
surging productivity rates helped to restrain inflation, productivity gains also
heightened earnings expectations. Eventually it became clear that the Federal
Reserve Board would continue to raise rates in months to come.
In the fourth quarter of 1999, as the GDP rate accelerated to 7.30%, the
Federal Reserve Board boosted rates another 0.25%. As the calendar year closed,
and Federal Reserve Board policy went on hold due to Y2K concerns, bond yields
moved higher.
Despite two more rate increases of 0.25% in February and March of 2000,
economic growth remained strong. However, as the Federal Reserve Board increased
short-term rates by 0.50% in May, growth began to show signs of slowing.
STOCK MARKET REVIEW
Although stock prices remained volatile in this environment, economic
strength at home and abroad helped major market indices rise for most of the
past fiscal year. Much of the markets' strength, however, was in a narrow group
of "momentum" stocks selling at high valuations relative to historical norms.
Anticipating continued growth as the fiscal year began, stock investors
ventured beyond the large-company shares that had led market gains for many
months into shares of smaller firms and "value-oriented" securities. Investors
also favored stocks in "cyclical" sectors for their greater sensitivity to
growth.
Stock prices then retreated in the third quarter of 1999. Concerned that
significantly slower growth would erode earnings, investors returned to the
greater earnings reliability of larger firms. The major stock indices then
rebounded in the fourth quarter of 1999, despite the year's third increase in
interest rates, as inflation remained under control and "momentum investing"
drove technology stocks to stratospheric highs in many cases.
1
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Stock prices continued to rally in the first quarter of 2000. Although higher
interest rates raised borrowing costs for many companies, investors were
encouraged as the "wealth effect" of earlier stock gains helped offset these
higher costs. Investor interest again broadened into lower-priced issues. For
most of the quarter, however, technology shares remained the market leaders.
Stocks then retreated in April and May as investors became increasingly
nervous about future growth and technology stocks corrected sharply. Having
bought these issues for their upward price momentum without fully researching
the fundamentals of the companies, investors quickly dumped the shares when
their prices eroded. Many of these investors then returned to a more rational
approach to investing where valuations and the balance between risk and reward
are taken into consideration.
With valuations that remain far higher than company fundamentals would
traditionally warrant, many technology shares could remain volatile in coming
months and experience an even deeper correction. The outlook is brighter for
other sectors. From its record high set on March 24 through May 31, the S&P 500
lost about 7% of its value. Shares of many large companies have corrected even
more and may now represent attractive investment opportunities, especially with
the recent shift from the "New Economy" stocks of the technology sector to "Old
Economy" issues. Stocks of small firms outside the overvalued technology group
remain appealing.
BOND MARKET REVIEW
As interest rates and yields moved higher during calendar year 1999, bond
prices declined. Because investors feared that the higher short-term rates would
cause issuers of lower-quality bonds more difficulty than issuers of
higher-quality instruments, lower-grade securities had poorer investment
performance results than higher-grade bonds.
Long-term issues outperformed shorter maturities during the past fiscal year,
as the yield curve inverted for the first time in a decade. Although the Federal
Reserve Board raised rates 1.00% during the second half of the period,
short-term rates rose a little over 0.40% and long-term rates declined well over
0.40%. As the government retired debt due to growing budget surpluses, investors
realized the supply of long-term, risk-free government securities could decline
dramatically. As they scrambled to buy up these issues, long-term yields
declined sharply. The yield curve may remain inverted in coming months, as
Federal Reserve Board policy pushes short-term yields higher and imbalances in
supply and demand keep downward pressure on yields at the long end of the curve.
As demand for Treasuries strengthened, demand for corporate bonds declined
over concerns about the impact of slower growth on company profits. Municipal
bonds also suffered as the high-earning investors who can benefit most from the
bonds' tax-free income put larger portions of their savings in stocks.
2
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BOSTON 1784 FUNDS
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We believe that we are closer to the end of the rate increases than the
beginning. The real (inflation-adjusted) cost of funds is now at historically
high levels and, given the normal lagged effects, should start to cool the
economy as evidenced by slowing housing and consumer spending. Similarly,
inflation numbers for the first quarter of 2000 primarily reflected rising
energy prices, which seem to have peaked. If economic growth decelerates to a
more sustainable rate during the second half of the year, as we expect, while
continued productivity gains offset wage and compensation pressures, inflation
should remain moderate. Bonds could perform well in this environment,
especially if recent stock price volatility continues.
MONEY MARKET REVIEW
Money market investors enjoyed increased yields during the reporting period,
as the Federal Reserve Board raised short-term rates by 1.75%. However,
uncertainty over the timing and size of the Federal Reserve Board's rate
increases caused significant volatility in short-term yields during the year.
If consumer confidence and employment remain strong, and energy prices
continue to rise, additional increases in short-term rates are possible. If
slower growth later this year ends the current cycle of interest rate increases,
money market yields could peak and begin to edge lower.
Thomas M. O'Neill
Chief Investment Officer
3
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MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
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BOSTON 1784 TAX-FREE MONEY MARKET FUND
OBJECTIVE: TO PRESERVE THE PRINCIPAL VALUE OF A SHAREHOLDER'S INVESTMENT AND
MAINTAIN A HIGH DEGREE OF LIQUIDITY WHILE PROVIDING CURRENT INCOME.
Boston 1784 Tax-Free Money Market Fund is an actively managed portfolio of
investment-grade money market securities. Assets are diversified among general
obligation municipal securities and revenue issues used to finance projects such
as hospitals, transportation, housing, student loans, utilities, and industrial
development. As of May 31, 2000, the Fund's net assets totaled $871.1 million
compared to $969.4 million on May 31, 1999.
For the 12 months ended May 31, 2000, the Fund had a total return of 3.30%,
compared with returns of 3.06% for the IBC/Financial Data Stockbroker & General
Purpose Tax-Free Average and 3.16% for the Lipper Tax-Exempt Money Market Funds
Average for the same period. Based on total return, the Fund rated among the top
9% (11 of 137) of the Lipper Tax-Exempt Money Market Funds Average for the
twelve months ended May 31, 2000.
With an increase in short-term interest rates of 1.75% during the Fund's
fiscal year, the Fund enjoyed significantly higher yields than were available in
the marketplace in the fiscal year ended May 31, 1999. The Fund outperformed its
benchmarks due largely to a barbelled maturity structure, which entailed holding
longer maturity issues for the added yield they provide as well as large
shorter-term positions for additional liquidity. The Fund also benefited by
purchasing large positions at a cost savings.
We continue to seek higher yields by making the most of market imbalances and
purchasing securities issued in states with little or no income taxes.
BOSTON 1784 TAX-FREE MONEY MARKET FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 TAX-FREE MONEY MARKET FUND VERSUS THE
IBC/FINANCIAL DATA STOCKBROKER & GENERAL PURPOSE
AVERAGE AND THE LIPPER TAX-EXEMPT MONEY MARKET FUNDS AVERAGE
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One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
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3.30% 3.21% 3.28% 3.16%
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[graph omitted]
plot points follows:
BOSTON 1784 TAX-FREE IBC/FINANCIAL DATA LIPPER TAX-EXEMPT
MONEY MARKET STOCKBROKER & MONEYMARKET
FUND G.P. AVERAGE FUNDS AVERAGE
6/30/93 $10,000 $10,000 $10,000
5/94 10,221 10,176 10,177
5/95 10,557 10,476 10,478
5/96 10,932 10,807 10,812
5/97 11,284 11,124 11,132
5/98 11,660 11,468 11,477
5/99 12,011 11,779 11,789
5/00 12,407 12,139 12,148
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 6/14/93
4
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BOSTON 1784 FUNDS
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BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
OBJECTIVE: TO PRESERVE THE PRINCIPAL VALUE OF A SHAREHOLDER'S INVESTMENT AND
MAINTAIN A HIGH DEGREE OF LIQUIDITY WHILE PROVIDING CURRENT INCOME.
Boston 1784 U.S. Treasury Money Market Fund invests primarily in U.S. government
agency securities, U.S. Treasury obligations, and repurchase agreements that are
fully collateralized by U.S. Treasury obligations. From May 31, 1999 to May 31,
2000, the Fund's net assets decreased from $390.8 million to $329.6 million.
For the 12 months ended May 31, 2000, the Fund had a total return of 4.89%,
compared with returns of 4.97% for the IBC/Financial Data U.S. Government &
Agencies Average and 4.64% for the Lipper U.S. Treasury Money Market Funds
Average for the same period. Based on total return, the Fund ranked in the top
15% (14 of 95) of the Lipper U.S. Treasury Money Market Funds Average for the
fiscal year ended May 31, 2000. As of May 31, 2000, the Fund had a 7-day yield
of 5.76%. The Fund's return and resulting ranking reflect a waiver of certain
management fees and expenses (see Financial Highlights). The Fund is rated
AAAm by Standard and Poor's. The rating is based on credit quality, market
price exposure and management.
To contain inflation by slowing the pace of economic growth, the Federal
Reserve Board raised the Federal Funds rate from 4.75% to 6.50% over the past
fiscal year. To make the most of this environment, the Fund maintained large
positions in repurchase agreements collateralized by U.S. Treasury obligations.
This boosted performance, as a decrease in supply dampened the yields for direct
investments in Treasury securities.
With signs that economic growth is slowing, it is uncertain whether there
will be further increases in short-term interest rates over the next few months.
As we continue to watch market developments closely, we will look for additional
opportunities to enhance the Fund's yield.
BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 U.S. TREASURY MONEY MARKET FUND VERSUS THE
IBC/FINANCIAL DATA U.S. GOVERNMENT & AGENCIES AVERAGE AND THE
LIPPER U.S. TREASURY MONEY MARKET FUNDS AVERAGE
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One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
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4.89% 4.82% 4.89% 4.57%
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[graph omitted]
plot points follows:
BOSTON 1784 U.S. TREASURY IBC/FINANCIAL DATA LIPPER U.S. TREASURIES
MONEYMARKET U.S. GOV'T. & MONEYMARKET
FUND AGENCIES AVERAGE FUNDS AVERAGE
6/30/93 $10,000 $10,000 $10,000
5/94 10,249 10,250 10,246
5/95 10,742 10,726 10,716
5/96 11,296 11,270 11,253
5/97 11,845 11,810 11,783
5/98 12,440 12,402 12,354
5/99 13,006 12,973 12,893
5/00 13,642 13,618 13,489
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 6/7/93
5
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MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
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BOSTON 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
OBJECTIVE: TO PRESERVE THE PRINCIPAL VALUE OF A SHAREHOLDER'S INVESTMENT AND TO
MAINTAIN A HIGH DEGREE OF LIQUIDITY WHILE PROVIDING CURRENT INCOME.
Boston 1784 Institutional U.S. Treasury Money Market Fund invests primarily in
U.S. government agency securities, U.S. Treasury obligations, and repurchase
agreements that are fully collateralized by U.S. Treasury obligations. From May
31, 1999 to May 31, 2000, the Fund's net assets increased from $4.35 billion to
$5.02 billion.
For the fiscal year ended May 31, 2000, the Fund had a total return of 5.26%,
compared with returns of 5.11% for the IBC/Financial Data Government-Only
Institutional-Only Average and 4.98% for the Lipper Institutional U.S. Treasury
Money Market Average for the same period. Based on total return, the Fund ranked
in the top 13% (16 of 124) of the Lipper Institutional U.S. Treasury Money
Market Average for the past fiscal year. As of May 31, 2000, the Fund had a
7-day yield of 6.18%. The Fund's return and resulting ranking reflect a waiver
of certain management fees and expenses (see Financial Highlights). The Fund is
rated AAAm by Standard and Poor's. The rating is based on credit quality, market
price exposure, and management.
To contain inflation and promote a sustainable economic expansion, the
Federal Reserve Board raised the Federal Funds rate six times over the past
fiscal year, from 4.75% to 6.50%. Money market investors were the beneficiaries
of these rate increases, which drove short-term yields higher. In this
environment, the Fund outperformed its benchmarks by concentrating investments
in repurchase agreements backed by U.S. Treasury obligations and U.S. government
agency securities. These holdings provided higher returns than direct
investments in U.S. Treasury securities, whose yield fell due to decreased
supply.
Now that economic expansion appears to be slowing, it is unclear whether the
Federal Reserve Board will raise short-term rates again in coming months. We
will continue to watch market developments closely.
BOSTON 1784 INSTITUTIONAL U.S. TREASURY
MONEY MARKET FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND VERSUS
THE IBC/FINANCIAL DATA GOVERNMENT-ONLY INSTITUTIONAL-ONLY AVERAGE
AND THE LIPPER INSTITUTIONAL U.S. TREASURY MONEY MARKET AVERAGE
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One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
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5.26% 5.17% 5.23% 4.90%
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[graph omitted]
plot points follows:
BOSTON 1784 LIPPER
INSTITUTIONAL IBC/FINANCIAL DATA INSTITUTIONAL
U.S. TREASURY GOVERNMENT-ONLY U.S. TREASURY
MONEYMARKET INSTITUTIONAL-ONLY MONEYMARKET
FUND AVERAGE AVERAGE
6/30/93 $10,000 $10,000 $10,000
5/94 10,286 10,275 10,271
5/95 10,805 10,784 10,773
5/96 11,394 11,363 11,343
5/97 11,982 11,940 11,911
5/98 12,624 12,568 12,526
5/99 13,243 13,170 13,113
5/00 13,939 13,843 13,766
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 6/14/93
6
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BOSTON 1784 FUNDS
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BOSTON 1784 PRIME MONEY MARKET FUND
OBJECTIVE: TO PRESERVE THE PRINCIPAL VALUE OF A SHAREHOLDER'S INVESTMENT AND
MAINTAIN A HIGH DEGREE OF LIQUIDITY WHILE PROVIDING CURRENT INCOME.
Boston 1784 Prime Money Market Fund invests primarily in high-quality money
market instruments, including short-term U.S. government obligations, corporate
bonds, bank obligations (such as certificates of deposit, bankers' acceptances,
and fixed-time obligations), commercial paper, variable-rate demand notes,
taxable municipal securities, and repurchase agreements. Between May 31, 1999
and May 31, 2000, the Fund's net assets grew from $165.2 million to $183.1
million.
For the fiscal year ended May 31, 2000, the Fund's total return was 5.10%,
compared with returns of 5.03% for the IBC/Financial Data First Tier Money
Market Average and 4.94% for the Lipper Money Market Funds Average for the same
period. As of May 31, 2000, the Fund had a 7-day yield of 6.22%. The Fund's
return reflects a waiver of certain management fees and expenses (see Financial
Highlights).
During the fiscal year, the Federal Reserve Board raised the short-term
Federal Funds interest rate six times from 4.75% to 6.50%. This favored
investors in money market instruments, whose yields rose in response. In this
climate, we emphasized a barbelled maturity structure for the Fund's portfolio,
balancing shorter and longer maturities to take advantage of the steep yield
curve. We also maintained a larger position in floating-rate securities, which
made the Fund more responsive to rising interest rates.
It is uncertain whether the Federal Reserve Board will raise short-term rates
again in the near term, given the apparent slowdown in economic growth. As
before, we will monitor market developments to take advantage of any changes in
yields.
BOSTON 1784 PRIME MONEY MARKET FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 PRIME MONEY MARKET FUND VERSUS THE
IBC/FINANCIAL DATA FIRST TIER AVERAGE AND THE
LIPPER MONEY MARKET FUNDS AVERAGE
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One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
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5.10% 5.01% 5.07% 4.53%
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[graph omitted]
plot points follows:
BOSTON 1784
PRIME IBC/FINANCIAL DATA LIPPER
MONEYMARKET FIRSTTIER MONEYMARKET
FUND AVERAGE AVERAGE
6/30/93 $10,000 $10,000 $10,000
5/92 10,433 10,415 10,419
5/93 10,745 10,711 10,718
5/94 11,044 11,004 11,011
5/95 11,577 11,529 11,533
5/96 12,191 12,126 12,118
5/97 12,803 12,716 12,696
5/98 13,464 13,360 13,328
5/99 14,107 13,982 13,939
5/00 14,827 14,686 14,632
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 6/6/91
7
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MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
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BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND
OBJECTIVE: TO PRESERVE THE PRINCIPAL VALUE OF A SHAREHOLDER'S INVESTMENT AND TO
MAINTAIN A HIGH DEGREE OF LIQUIDITY WHILE PROVIDING CURRENT INCOME.
Boston 1784 Institutional Prime Money Market Fund invests largely in
high-quality money market instruments, including short-term U.S. government
obligations, corporate bonds, bank obligations (such as certificates of deposit,
bankers' acceptances and fixed time obligations), commercial paper, variable
rate demand notes, taxable municipal securities and repurchase agreements.
During the 12 months ended May 31, 2000, the Fund's net assets grew from $516.9
million to $696.6 million.
For the fiscal year ended May 31, 2000, the Fund had a total return of 5.43%,
compared with returns of 5.39% for the IBC/Financial Data First Tier
Institutional Only Average and 5.37% for the Lipper Institutional Money Market
Funds Average for the same period. The Fund's 7-day yield as of May 31, 2000 was
6.32%. The Fund's return reflects a waiver of certain management fees and
expenses (see Financial Highlights).
As the Federal Reserve Board sought to contain inflation by tightening
monetary policy during the past fiscal year, money market investors benefited
from a 1.75% increase in short-term interest rates. In this environment, we
tried to maintain a balance between short- and longer-term securities to take
advantage of raising rates across the yield curve. The Fund also responded to
the increases in short-term interest rates by investing in floating-rate
securities.
It is uncertain whether the Federal Reserve Board will raise short-term rates
again in coming months, since economic growth appears to be slowing. We will
continue to watch market developments closely. As before, we will try to
maximize changing yields when possible.
BOSTON 1784 INSTITUTIONAL
PRIME MONEY MARKET FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND VERSUS
THE IBC/FINANCIAL DATA FIRST TIER INSTITUTIONAL ONLY AVERAGE
AND THE LIPPER INSTITUTIONAL MONEY MARKET FUNDS AVERAGE
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One Year Annualized Inception
Return TO Date*
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5.43% 5.32%
-------------------------------------
[graph omitted]
plot points follows:
BOSTON 1784
PRIME IBC/FINANCIAL DATA LIPPER
MONEYMARKET FIRSTTIER MONEYMARKET
FUND AVERAGE AVERAGE
11/30/97 $10,000 $10,000 $10,000
5/98 10,271 10,269 10,266
5/99 10,795 10,787 10,782
5/00 11,381 11,368 11,361
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 11/5/97
8
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BOSTON 1784 FUNDS
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BOSTON 1784 SHORT-TERM INCOME FUND
OBJECTIVE: TO PROVIDE INVESTORS WITH MAXIMUM CURRENT INCOME, AND, AS A
SECONDARY GOAL, TO PRESERVE INVESTORS' CAPITAL.
Boston 1784 Short-Term Income Fund is designed for investors seeking a higher
yield than a money market fund and more price stability than a longer-term bond
fund. The Fund invests primarily in debt securities of U.S. issuers, although it
can invest in non-U.S. issuers, including those in developing countries. The
Fund's assets as of May 31, 2000 were $129.2 million compared to $176.0 million
on May 31, 1999.
The Fund's total return for the year ended May 31, 2000 was 3.53%, compared
to returns of 3.37% for the Lipper Short Investment-Grade Debt Average and 3.43%
for the Lehman Mutual Fund 1-5 Year Government /Corporate Bond Index for the
same period. Based on total return, the Fund placed in the second quartile (45
of 113) in the Lipper Short Investment-Grade Debt Average for the year ended May
31, 2000. The Fund's return and resulting ranking reflect a waiver of certain
management fees and expenses (see Financial Highlights).
The Fund outperformed slightly the Lipper Short Investment-Grade Debt Average
due to the higher yielding shorter-term corporate bonds and government agency
securites held by the Fund during the year. In addition, the Fund's conservative
maturity profile in the face of preemptive anti-inflationary measures pursued by
the Federal Reserve Board positively impacted performance.
The Federal Reserve Board indicated recently that a more aggressive attack on
inflation may come in the form of additional short-term interest rate increases.
An increase in interest rates coupled with a subsequent slowdown in economic
growth will put increased downward pressure on the prices of corporate bonds.
Therefore, the Fund will continue to selectively add corporate and asset-backed
securities to the portfolio that offer attractive yields and credit quality. In
addition, the Fund will maintain a prudent allocation to high quality U.S.
Treasury issues to take advantage of strong demand and decreasing supply in that
sector. The Fund should benefit also from the addition of floating-rate
securities in the coming months since bond yields are likely to continue to
rise.
BOSTON 1784 SHORT-TERM INCOME FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 SHORT-TERM INCOME FUND VERSUS THE
LEHMAN MUTUAL FUND 1-5 YEAR GOV'T./CORP. INDEX
AND THE LIPPER SHORT INVESTMENT-GRADE DEBT AVERAGE
--------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
--------------------------------------------------------------------------------
3.53% 5.06% 5.28% 5.60%
--------------------------------------------------------------------------------
[graph omitted]
plot points follows:
Boston 1784
SHORT-TERM LEHMAN MUTUAL FUND Lipper SHORT-TERM
INCOME 1-5 YR. GOV'T./CORP INVESTMENT-GRADE
FUND INDEX DEBT AVERAGE
7/31/94 $10,000 $10,000 $10,000
5/95 10,601 10,700 10,548
5/96 11,107 11,236 11,080
5/97 11,826 12,014 11,797
5/98 12,651 12,944 12,572
5/99 13,246 13,618 13,119
5/00 13,713 14,085 13,576
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 7/1/94
9
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MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
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BOSTON 1784 INCOME FUND
OBJECTIVE: TO PROVIDE INVESTORS WITH MAXIMUM CURRENT INCOME, AND, AS A SECONDARY
GOAL, TO PRESERVE INVESTORS' CAPITAL.
Boston 1784 Income Fund is an actively managed portfolio of investment-grade
bonds with intermediate- to long-term maturities. On May 31, 2000, the
average-weighted-maturity of the Fund was approximately 10.67 years and the
Fund's duration was 6.48 years. Between May 31, 1999 and May 31, 2000, the
Fund's net assets declined from $343.2 million to $310.0 million.
For the 12 months ended May 31, 2000, the Fund had a total return of 1.25%,
compared with returns of 2.10% for the Lehman Aggregate Bond Index and 0.14% for
the Lipper Corporate Debt A-Rated Average for the same period. Based on total
return, the Fund ranked in the top 21% (36 of 173) in the Lipper Corporate Debt
A-Rated Average for the same period. The Fund's return and resulting ranking
reflect a waiver of certain management fees and expenses (see Financial
Highlights).
During the fiscal year ended May 31, 2000, we reduced the Fund's corporate
positions and moved the proceeds into U.S. Treasury and government agency
issues. In trimming corporates, we targeted issues with lower credit quality
first due to our expectation that the damage to company profits from higher
interest rates and slower economic growth would be particularly hard on
lower-quality firms. Fundamentals here include rising default ratios, with
downgrades outnumbering upgrades two to one. As long-term rates fell, we reduced
the Fund's duration from 5.4 years to about 5.1 years, which had a positive
impact on Fund performance.
Given the current uncertainty about where growth and interest rates will head
in coming months, we will continue to maintain a high level of overall quality
and liquidity in the Fund.
BOSTON 1784 INCOME FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 INCOME FUND VERSUS THE LEHMAN AGGREGATE BOND INDEX
AND THE LIPPER CORPORATE DEBT A-RATED AVERAGE
--------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
--------------------------------------------------------------------------------
1.25% 4.27% 4.71% 5.76%
--------------------------------------------------------------------------------
[graph omitted]
plot points follows:
BOSTON 1784 LEHMAN LIPPER CORPORATE
INCOME AGGREGATE BOND DEBT A-RATED
FUND INDEX AVERAGE
7/31/94 $10,000 $10,000 $10,000
5/95 10,934 10,955 10,921
5/96 11,211 11,435 11,301
5/97 12,143 12,387 12,167
5/98 13,221 13,739 13,490
5/99 13,596 14,336 13,830
5/00 13,766 14,637 13,861
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 7/1/94
10
<PAGE>
BOSTON 1784 FUNDS
================================================================================
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
OBJECTIVE: TO PROVIDE INVESTORS WITH CURRENT INCOME CONSISTENT WITH PRESERVATION
OF CAPITAL.
Boston 1784 U.S. Government Medium-Term Income Fund is an actively managed
portfolio of U.S. Treasury and U.S. government agency issues with short- to
medium-term maturities. On May 31, 2000, the average-weighted-maturity of the
Fund was 5.3 years and the Fund's duration was 3.3 years. From May 31, 1999 to
May 31, 2000, the Fund's net assets declined from $276.8 million to $242.5
million.
For the 12 months ended May 31, 2000, the Fund had a total return of 1.87%,
compared to returns of 3.01% for the Lehman Intermediate Government Bond Index
and 1.33% for the Lipper Intermediate U.S. Government Funds Average for the same
period. Based on total return, the Fund ranked in the top 29% (37 of 128) in the
Lipper Intermediate U.S. Government Funds Average. The Fund's return and
resulting ranking reflect a waiver of certain management fees and expenses (see
Financial Highlights).
During the first six months of the fiscal year, the Fund's
average-weighted-maturity and duration were extended to lock in attractive rates
as interest rates rose. As yields began to fall early in 2000, however, duration
was reduced, which positively impacted Fund performance. Also during the second
half of the fiscal year, as legislative initiatives to reduce support for
certain government-sponsored enterprises made the yields for agency securities
more attractive, we added to the Fund's holdings in both mortgage-backed
securities and non-callable agency paper. This reduced investments in Treasuries
to approximately one quarter of the Fund's assets. We also increased the Fund's
cash position due to heightened liquidity needs, which afforded additional yield
due to the inverted yield curve.
As long as it remains unclear where the economy and interest rates will head,
we will continue to emphasize strong credit quality and liquidity in structuring
the Fund's portfolio.
BOSTON 1784 U.S. GOVERNMENT
MEDIUM-TERM INCOME FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND VERSUS
THE LEHMAN INTERMEDIATE GOVERNMENT BOND INDEX AND THE
LIPPER INTERMEDIATE U.S. GOVERNMENT FUNDS AVERAGE
--------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
--------------------------------------------------------------------------------
1.87% 4.68% 4.94% 4.67%
--------------------------------------------------------------------------------
[graph omitted]
plot points follows:
BOSTON 1784
U.S. GOV'T LEHMAN LIPPER
MEDIUM-TERM INTERMEDIATE INTERMEDIATE
INCOME GOV'T. BOND U.S. GOV'T FUNDS
FUND INDEX AVERAGE
6/30/93 $10,000 $10,000 $10,000
5/94 9,787 9,980 9,826
5/95 10,646 10,887 10,710
5/96 11,024 11,380 11,066
5/97 11,813 12,189 11,837
5/98 12,824 13,235 12,929
5/99 13,303 13,894 13,374
5/00 13,551 14,313 13,534
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 6/7/93
11
<PAGE>
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
================================================================================
BOSTON 1784 TAX-EXEMPT
MEDIUM-TERM INCOME FUND
OBJECTIVE: TO PROVIDE INVESTORS WITH CURRENT INCOME THAT IS EXEMPT FROM FEDERAL
INCOME TAX, CONSISTENT WITH PRESERVATION OF CAPITAL.
Boston 1784 Tax-Exempt Medium-Term Income Fund is an actively managed,
diversified portfolio of high-quality, intermediate-term municipal securities.
From May 31,1999 to May 31, 2000, the Fund's net assets decreased from $357.0
million to $296.7 million. On May 31, 2000, 68.8% of the Fund's assets were
rated AAA, 16.9% were rated AA and 9.49% were rated A by either Standard &
Poor's or Moody's.
The Fund's total return for the 12 months ended May 31, 2000 was -1.70%,
compared with returns of -1.04% for the Lipper Intermediate Municipal Debt Funds
Average, 0.25% for the Lehman 7-Year Municipal Bond Index and 0.28% for the
Lehman Quality Intermediate 3-15 Year Blend Index for the same period. Prior to
the past fiscal year, the Fund used the Lehman 7-Year Municipal Debt Funds
Average as a benchmark. The Lehman Quality Intermediate 3-15 Year Blend Index
more closely reflects the maturity structure of the securities in the Fund. The
Fund's return reflects a waiver of certain management fees and expenses (see
Financial Highlights).
The Fund attempts to increase yield and achieve price stability by
emphasizing both geographical and sector diversification, defensively
structuring coupons, maturities and call features, and trying to maximize
tax-free income, credit quality and market liquidity. The Fund has performed
well historically compared to its benchmarks since it maintains a slightly
longer average-weighted-maturity and duration, which were 10.14 years and 7.24
years, respectively, as of May 31, 2000. However, with the increase in interest
rates over the past year, which was particularly damaging to the prices of
longer-term issues, the Fund's maturity structure enhanced its yield but
diminished its total return.
Besides a possible peak in interest rates, which should help the prices of
bonds generally, municipal bonds should benefit from an increasingly positive
balance of demand and supply during the coming fiscal year. In addition,
municipal bonds are at fair market value compared to corporate bonds and
government agency securities, with far less credit risk, and exceptionally
inexpensive compared to Treasury issues.
BOSTON 1784 TAX-EXEMPT
MEDIUM-TERM INCOME FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND VERSUS
THE LEHMAN 7-YEAR MUNICIPAL BOND INDEX,
THE LEHMAN QUALITY INTERMEDIATE 3-15 YEAR BLEND INDEX AND
THE LIPPER INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE
--------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
--------------------------------------------------------------------------------
-1.70% 3.83% 4.68% 5.01%
--------------------------------------------------------------------------------
[graph omitted]
plot points follows:
BOSTON 1784
TAX-EXEMPT LEHMAN 7-YEAR LEHMAN QUALITY LIPPER
MEDIUM-TERM MUNICIPAL INTERMEDIATE INTERMEDIATE
INCOME BOND 3-15 YEAR MUNICIPAL DEBT
FUND INDEX BLENDINDEX FUNDS AVERAGE
6/30/93 $10,000 $10,000 $10,000 $10,000
5/94 10,212 10,144 10,148 10,147
5/95 10,986 10,972 11,001 10,875
5/96 11,449 1,1481 11,519 11,315
5/97 12,336 12,267 12,385 12,041
5/98 13,475 13,257 13,435 12,947
5/99 14,047 13,884 14,073 13,431
5/00 13,808 13,919 14,113 13,291
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 6/14/93
12
<PAGE>
BOSTON 1784 FUNDS
================================================================================
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
OBJECTIVE: TO PROVIDE INVESTORS WITH CURRENT INCOME THAT IS EXEMPT FROM BOTH
FEDERAL AND CONNECTICUT PERSONAL INCOME TAX, WITH A SECONDARY GOAL OF PRESERVING
CAPITAL.
Boston 1784 Connecticut Tax-Exempt Income Fund is an actively managed,
state-specific portfolio of high-quality, intermediate-term municipal securities
issued by the State of Connecticut and its municipalities. Between May 31,1999
and May 31, 2000, the Fund's net assets declined from $187.7 million to $148.9
million. As of May 31, 2000, 62.8% of the Fund's assets were rated AAA, 28.8%
were rated AA and 6.1% were rated A by either Standard & Poor's or Moody's.
For the 12 months ended May 31, 2000, the Fund's total return was -1.45%,
compared with returns of -1.25% for the Lipper Other States Intermediate
Municipal Debt Funds Average, 0.25% for the Lehman 7-Year Municipal Bond Index
and 0.28% for the Lehman Quality Intermediate 3-15 Year Blend Index for the same
period. The Fund's return reflects a waiver of certain management fees and
expenses (see Financial Highlights). During the past fiscal year, the Fund
switched its benchmark from the Lehman 7-Year Municipal Debt Funds Average to
the Lehman Quality Intermediate 3-15 Year Blend Index, which more closely
reflects the maturity structure of the securities in the Fund.
The Fund attempts to increase yield and maintain price stability by
emphasizing sector diversification, defensively structuring coupons, maturities
and call features, and trying to maximize tax-free income, credit quality and
market liquidity. Historically, the Fund has performed well compared to its
benchmarks since it maintains a slightly longer average-weighted-maturity and
duration, which were 10.46 years and 7.51 years, respectively, as of May 31,
2000. While this strategy improved the Fund's yield as interest rates rose
during the past fiscal year, it diminished the total return as the higher rates
hit prices for longer-term bonds particularly hard.
In addition to a possible peak in interest rates, the municipal bond market
should benefit during the coming fiscal year from an increasingly positive
balance of supply and demand. Meanwhile, municipal bonds are extremely
inexpensive relative to Treasury issues. Municipal bonds are at fair market
value versus corporate bonds and government agency debt, and offer far less
credit risk.
BOSTON 1784 CONNECTICUT
TAX-EXEMPT INCOME FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND VERSUS THE
LEHMAN 7-YEAR MUNICIPAL BOND INDEX,
LEHMAN QUALITY INTERMEDIATE 3-15 YEAR BLEND INDEX
AND THE LIPPER OTHER STATES INTERMEDIATE
MUNICIPAL DEBT FUNDS AVERAGE
--------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
--------------------------------------------------------------------------------
-1.45% 3.76% 4.52% 5.15%
--------------------------------------------------------------------------------
[graph omitted]
plot points follows:
BOSTON 1784
CONNECTICUT LEHMAN 7-YEAR LEHMAN QUALITY LIPPER OTHER
TAX-EXEMPT MUNICIPAL INTERMEDIATE STATES INTERMEDIATE
INCOME BOND 3-15 YEAR MUNICIPAL
FUND INDEX BLENDINDEX DEBT FUNDS
8/31/94 $10000 $10,000 $10,000 $10,000
5/95 10,664 10,629 10,671 10,549
5/96 11,103 11,123 11,173 10,941
5/97 11,909 11,885 12,013 11,597
5/98 13,015 12,844 13,031 12,410
5/99 13,499 13,451 13,651 12,838
5/00 13,304 13,485 13,689 12,673
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 8/1/94
13
<PAGE>
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
================================================================================
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
OBJECTIVE: TO PROVIDE INVESTORS WITH CURRENT INCOME EXEMPT FROM FEDERAL INCOME
TAX THROUGH FUND SHARES THAT ARE EXEMPT FROM FLORIDA INTANGIBLE PERSONAL
PROPERTY TAX, WITH A SECONDARY GOAL OF PRESERVING CAPITAL.
Boston 1784 Florida Tax-Exempt Income Fund is an actively managed,
state-specific portfolio that consists primarily of investment-grade bonds. The
Fund holds a balance of prerefunded bonds and securities with intermediate- and
longer-term maturities. The majority of the Fund's assets are invested in
general obligation bonds issued by the State of Florida and various
municipalities, as well as in revenue bonds that finance hospitals, education,
housing, transportation, utilities and industrial development. As of May 31,
2000, approximately 95% of the bonds in the Fund were rated AA or higher by
either Moody's or Standard & Poor's. A portion of these assets were enhanced
with bond insurance.
From May 31, 1999 to May 31, 2000, the Fund's net assets decreased from $68.8
million on to $61.2 million. For the 12 months ended May 31, 2000, the Fund had
a total return of -1.76%, compared with returns of -0.87% for the Lipper
Florida Intermediate Municipal Debt Funds Average, 0.25% for the Lehman 7-Year
Municipal Bond Index and 0.28% for the Lehman Quality Intermediate 3-15 Year
Blend Index for the same period. Prior to the past fiscal year, the Fund used
the Lehman 7-Year Municipal Debt Funds Average as a benchmark. The Lehman
Quality Intermediate 3-15 Year Blend Index more closely reflects the maturity
structure of the securities in the Fund. The Fund's return reflects a waiver of
certain management fees and expenses (see Financial Highlights).
An emphasis on bonds with high credit quality, which performed well, helped
offset the performance of bonds with current and discount coupons and an
average-weighted-maturity and duration that were longer than the Lehman Index.
On May 31, 2000, the Fund had an average-weighted-maturity of 7.35 years and a
duration of 5.69 years, both of which were longer than its Lehman benchmark and
negatively impacted performance as interest rates rose and bond prices fell.
With interest rates on the rise, we focused on improving the Fund's current
dividend yield. During the second half of the fiscal year, we trimmed the Fund's
holdings in longer-term securities and issues from the healthcare and utility
sectors, and increased positions in prerefunded and municipal bonds with higher
coupons. While diminishing supplies of municipal bonds could boost prices in the
coming months, we plan to maintain our emphasis on current income.
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
COMPARISON OF CHANGE IN THE VALUE OF A
$10,000 INVESTMENT IN BOSTON 1784 FLORIDA
TAX-EXEMPT INCOME FUND VERSUS THE
LEHMAN 7-YEAR MUNICIPAL BOND INDEX,
THE LEHMAN QUALITY INTERMEDIATE 3-15 YEAR BLEND INDEX AND
THE LIPPER FLORIDA INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE
---------------------------------------
One Year Annualized Inception
Return TO Date*
---------------------------------------
-1.76% 3.26%
---------------------------------------
[graph omitted]
plot points follows:
BOSTON 1784
FLORIDA LEHMAN 7-YEAR LEHMAN QUALITY LIPPER FLORIDA
TAX-EXEMPT MUNICIPAL INTERMEDIATE INTERMEDIATE
INCOME BOND 3-15 YEAR MUNICIPAL DEBT
FUND INDEX BLENDINDEX FUNDS AVERAGE
6/30/97 $10,000 $10,000 $10,000 $10,000
5/98 10,759 10,704 10,742 10,617
5/99 11,176 11,211 11,253 10,983
5/00 10,980 11,239 11,284 10,888
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 6/30/97
14
<PAGE>
BOSTON 1784 FUNDS
================================================================================
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
OBJECTIVE: TO PROVIDE INVESTORS WITH CURRENT INCOME EXEMPT FROM BOTH FEDERAL AND
MASSACHUSETTS PERSONAL INCOME TAX, CONSISTENT WITH PRESERVATION OF CAPITAL.
Boston 1784 Massachusetts Tax-Exempt Income Fund is an actively managed,
state-specific portfolio that consists primarily of investment-grade bonds. The
Fund holds a balance of prerefunded bonds and securities with intermediate- and
longer-term maturities. Assets consist mostly of general obligation bonds issued
by the Commonwealth of Massachusetts and various municipalities, as well as
revenue bonds issued to finance hospitals, education, housing, transportation,
utilities and industrial development. As of May 31, 2000, approximately 86% of
the bonds in the Fund were rated AA or higher by either Moody's or Standard &
Poor's. A portion of these assets were enhanced with bond insurance.
During the past fiscal year, the Fund's net assets decreased from $267.9
million on May 31, 1999 to $231.1 million on May 31, 2000. For the twelve months
ended May 31, 2000, the Fund had a total return of -1.51%, compared with returns
of -1.49% for the Lipper Massachusetts Intermediate Municipal Funds Average,
0.25% for the Lehman Brothers 7-Year Municipal Bond Index and 0.28% for the
Lehman Quality Intermediate 3-15 Year Blend Index for the same period. Prior to
the past fiscal year, the Fund used the Lehman 7-Year Municipal Debt Funds
Average as a benchmark. The Lehman Quality Intermediate 3-15 Year Blend Index
more closely reflects the maturity structure of the securities in the Fund. The
Fund's return reflects a waiver of certain management fees and expenses (see
Financial Highlights).
Important factors that affected the Fund's performance during the past fiscal
year include the investment in high credit quality bonds with current and
discount coupons. The Fund had an average-weighted-maturity of 7.77 years and a
duration of 6.00 years, both of which were longer than the Lehman Brothers
7-Year Municipal Bond Index. While the longer maturities increased yields, total
return was negatively affected compared to the Fund's Lehman benchmark.
As interest rates rose, we improved the Fund's current dividend yield and
increased diversification with new issuers. During the second half of the fiscal
year, we reduced holdings in longer-term securities and issues from the
healthcare sector, and increased holdings of prerefunded bonds and higher-coupon
issues. While prices for municipal bonds could outperform if supplies continue
to shrink, we plan to remain focused on current income.
BOSTON 1784 MASSACHUSETTS
TAX-EXEMPT INCOME FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
VERSUS THE LEHMAN 7-YEAR MUNICIPAL BOND INDEX,
THE LEHMAN QUALITY INTERMEDIATE 3-15 YEAR BLEND INDEX AND THE
LIPPER MASSACHUSETTS INTERMEDIATE MUNICIPAL FUNDS AVERAGE
--------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
--------------------------------------------------------------------------------
-1.51% 3.75% 4.41% 4.46%
--------------------------------------------------------------------------------
[graph omitted]
plot points follows:
BOSTON 1784
CONNECTICUT LEHMAN 7-YEAR LEHMAN QUALITY LIPPER OTHER
TAX-EXEMPT MUNICIPAL INTERMEDIATE STATES INTERMEDIATE
INCOME BOND 3-15 YEAR MUNICIPAL
FUND INDEX BLENDINDEX DEBT FUNDS
6/30/93 $10,000 $10,000 $10,000 $10,000
5/94 10,126 10,144 10,148 10,142
5/95 10,734 10,972 11,001 10,766
5/96 11,116 11,481 11,519 11,154
5/97 11,928 12,267 12,385 11,824
5/98 12,990 13,257 13,434 12,666
5/99 13,523 13,884 14,073 13,088
5/00 13,319 13,919 14,113 12,893
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 6/14/93
15
<PAGE>
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
================================================================================
BOSTON 1784 RHODE ISLAND
TAX-EXEMPT INCOME FUND
OBJECTIVE: TO PROVIDE INVESTORS WITH CURRENT INCOME THAT IS EXEMPT FROM BOTH
FEDERAL INCOME TAX AND RHODE ISLAND PERSONAL INCOME AND BUSINESS CORPORATION
TAXES, WITH A SECONDARY GOAL OF PRESERVING CAPITAL.
Boston 1784 Rhode Island Tax-Exempt Income Fund is an actively managed,
state-specific portfolio of high-quality, intermediate-term municipal securities
issued by the state of Rhode Island and its municipalities. Between May 31,1999
and May 31, 2000, the Fund's net assets decreased from $102.1 million to $89.0
million. As of May 31, 2000, 72.3% of the Fund's assets were rated AAA, 20.6%
were rated AA and 3.14% were rated A by either Standard & Poor's or Moody's.
The Fund's total return for the 12 months ended May 31, 2000 was -1.70%,
compared with returns of -1.29% for the Lipper Other States Intermediate
Municipal Debt Funds Average and -0.25% for the Lehman 7-Year Municipal Bond
Index. The Fund's return reflects a waiver of certain management fees and
expenses (see Financial Highlights).
The Fund attempts to increase yield and maintain price stability by
emphasizing sector diversification, defensively structuring coupons, maturities
and call features, and trying to maximize tax-free income, credit quality, and
market liquidity. In the past, the Fund has performed well compared to its
benchmarks since it maintains a slightly longer average-weighted-maturity and
duration, which were 10.23 years and 7.29 years, respectively, as of May 31,
2000. While this maturity structure added yield as interest rates rose during
the past fiscal year, it reduced the Fund's total return due to the added price
sensitivity of longer-term issues to higher rates.
In months to come, the municipal bond market should benefit from an
increasingly positive balance of supply and demand, as well as from a possible
peak in interest rates. At the same time, municipals are extremely inexpensive
compared to Treasury securities. Municipal bonds are at fair market value
compared to issues of government agency securities and corporate debt, while
offering far less credit risk.
BOSTON 1784 RHODE ISLAND
TAX-EXEMPT INCOME FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND VERSUS
THE LEHMAN 7-YEAR MUNICIPAL BOND INDEX AND THE
LIPPER OTHER STATES INTERMEDIATE MUNICIPAL DEBT FUNDS AVERAGE
--------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
--------------------------------------------------------------------------------
-1.70% 3.48% 4.51% 4.91%
--------------------------------------------------------------------------------
[graph omitted]
plot points follows:
BOSTON 1784
RHODE ISLAND LEHMAN 7-YEAR LIPPER OTHER
TAX-EXEMPT MUNICIPAL STATES INTERMEDIATE
INCOME BOND MUNI DEBT
FUND INDEX FUNDS AVERAGE
8/31/94 $10,000 $10,000 $10,000
5/95 10,552 10,629 10,549
5/96 11,033 11,123 10,941
5/97 11,872 11,885 11,597
5/98 12,855 12,844 12,410
5/99 13,384 13,451 12,838
5/00 13,156 13,485 12,673
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 8/1/94
16
<PAGE>
BOSTON 1784 FUNDS
================================================================================
BOSTON 1784 ASSET ALLOCATION FUND
OBJECTIVE: 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.
During the twelve months ended May 31, 2000, assets in Boston 1784 Asset
Allocation Fund decreased from $53.4 million to $51.7 million. The Fund's total
return was 11.93%, compared to returns of 10.47% for the Standard and Poor's 500
Composite Index ("S&P 500"), 2.10% for the Lehman Aggregate Bond Index and 5.39%
for the Lipper Balanced Funds Average for the same period. Based on total
return, the Fund ranked among the top 15% (69 of 461) in the Lipper Balanced
Funds Average for the year ended May 31, 2000. The Fund's return and resulting
ranking reflect a waiver of certain management fees and expenses (see Financial
Highlights). On May 31, 2000, approximately 59% of the Fund's portfolio was
allocated to common stocks, 32% to bonds, and 9% to money market instruments.
During the past fiscal year, concentrations in certain technology groups
(specifically networking, fiber optics and communications companies, along with
related semi-conductor and Internet infrastructure firms) plus investments in
telecommunication services companies and selected biotechnology stocks offset
disappointing performances by holdings in the healthcare and financial services
sectors. Underweighting in healthcare and financial services relative to the S&P
500 also helped returns. Of further benefit was an increase in cash reserves in
February of 2000, as the operations of several companies did not appear to be
able to sustain their valuations.
In the Fund's fixed income portfolio, we increased the Fund's holdings of
U.S. Treasuries and reduced those of government agencies, which positively
impacted performance as Treasuries outperformed agency securities. We maintained
the Fund's substantial position in mortgage-backed securities, which were the
second-best-performing sector, and increased holdings in asset-backed
securities. Within the corporate sector, we reduced the Fund's holdings of bank
and finance securities as both were among the poorest performers.
In the coming year, we expect the equity market to experience greater
volatility than it has in recent years and several changes in sector leadership
that may occur in rapid succession. We anticipate also that economic growth will
slow and inflation will rise moderately. As a result, there will be limited
movement in bond prices and yields.
BOSTON 1784 ASSET ALLOCATION FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 ASSET ALLOCATION FUND VERSUS THE S&P 500
COMPOSITE INDEX, THE LEHMAN AGGREGATE BOND INDEX
AND THE LIPPER BALANCED FUNDS AVERAGE
-------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
-------------------------------------------------------------------------------
11.93% 12.63% 14.10% 12.11%
-------------------------------------------------------------------------------
[graph omitted]
plot points follows:
BOSTON 1784 LEHMAN LIPPER
ASSET S&P 500 AGGREGATE BALANCED
ALLOCATION COMPOSITE BOND FUNDS
FUND INDEX INDEX AVERAGE
6/30/93 $10,000 $10,000 $10,000 $10,000
5/94 10,016 10,395 9,890 10,223
5/95 11,503 12,489 11,028 11,471
5/96 13,554 16,039 11,511 13,503
5/97 15,572 20,754 12,469 15,715
5/98 18,765 27,119 13,830 18,764
5/99 19,876 32,828 14,430 20,398
5/00 22,248 36,265 14,733 21,614
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 6/14/93
17
<PAGE>
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
================================================================================
BOSTON 1784 GROWTH AND INCOME FUND
OBJECTIVE: TO PROVIDE INVESTORS WITH LONG-TERM GROWTH OF CAPITAL WITH A
SECONDARY GOAL OF INCOME.
Boston 1784 Growth and Income Fund is a diversified portfolio invested primarily
in stocks of large- and mid-capitalization companies. While the Fund invests
mostly in U.S. companies, 7% of the Fund's assets were invested in international
equities as of May 31, 2000. During the 12 months ended May 31, 2000, the Fund's
assets decreased from $549.4 million to $531.6 million.
For the 12 months ended May 31, 2000, the Fund had a total return of 24.78%,
compared with returns of 10.47% for the Standard & Poor's 500 Composite Index
("S&P 500") and 6.10% for the Lipper Growth & Income Average for the same
period. The Fund's return reflects a waiver of certain management fees and
expenses (see Financial Highlights).
The Fund's strong performance versus its benchmarks can be attributed to
holdings in the technology and telecommunications sectors. In particular, the
Fund was helped by its positions in JDS Uniphase, Texas Instruments, Cisco and
Intel. For the full fiscal year, the Fund's weighting in healthcare hindered
performance. However, by March 2000, when the market began to correct, the
healthcare sector outperformed as these stocks' defensive characteristics and
stable earnings were viewed as a safe haven in the volatile market.
During the 12 months ended May 31, 2000, the Federal Reserve Board steadily
raised interest rates in order to slow the economy and fight inflation. In this
environment, we would expect the best performance to come from companies that
continue to show strong revenue and earnings growth.
BOSTON 1784 GROWTH AND INCOME FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000
INVESTMENT IN BOSTON 1784 GROWTH & INCOME FUND
VERSUS THE S&P 500 COMPOSITE INDEX AND THE
LIPPER GROWTH & INCOME AVERAGE
--------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
--------------------------------------------------------------------------------
11.93% 12.63% 14.10% 12.11%
--------------------------------------------------------------------------------
[graph omitted]
plot points follows:
BOSTON 1784 LIPPER
ASSET S&P 500 BALANCED
ALLOCATION COMPOSITE FUNDS
FUND INDEX AVERAGE
6/30/93 $10,000 $10,000 $10,000
5/94 10,854 10,395 10,475
5/95 12,709 12,489 12,011
5/96 16,054 16,039 15,113
5/97 18,997 20,754 18,621
5/98 24,070 27,119 23,381
5/99 25,190 32,828 26,065
5/00 31,432 36,265 27,702
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 6/7/93
18
<PAGE>
BOSTON 1784 FUNDS
================================================================================
BOSTON 1784 GROWTH FUND
OBJECTIVE: TO PROVIDE INVESTORS WITH CAPITAL APPRECIATION. DIVIDEND INCOME, IF
ANY, IS INCIDENTAL TO THIS GOAL.
Boston 1784 Growth Fund is a diversified portfolio invested primarily in stocks
of mid- and small-capitalization companies. During the 12 months ended May 31,
2000, the Fund's assets increased from $185.5 million to $185.6 million.
The Fund had a total return of 65.97% for the 12 months ended May 31, 2000,
compared to returns of 9.91% for the Russell 2000 Index and 33.79% for the
Lipper Mid-Cap Funds Average for the same period. Based on total return, the
Fund ranked in the top 15% (68 of 456) for the Lipper Mid-Cap Funds Average.
The Fund's return and resulting ranking reflect a waiver of certain management
fees and expenses (see Financial Highlights).
During the past fiscal year, the Fund benefited from an overweighting in
technology stocks. The Fund's best returns from this sector came from Emulex and
Qlogic in the storage area networking (SAN) and fiber channel industries, and
Verisign and Cree in the security software and semiconductor groups. These
holdings more than offset the underperformance of the Fund's investments in the
healthcare sector, which struggled for the first three quarters of the fiscal
year, and in the financial sector, which underperformed as interest rates rose.
In the year ahead, we expect continued gains in the technology sector,
particularly in the SAN and fiber channel industries. The strong revenue and
earnings growth from these industries should continue to be attractive in a
slowing economic environment.
BOSTON 1784 GROWTH FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000
INVESTMENT IN BOSTON 1784 GROWTH FUND VERSUS
THE RUSSELL 2000 INDEX
AND THE LIPPER MID-CAP FUNDS AVERAGE
--------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
--------------------------------------------------------------------------------
11.93% 12.63% 14.10% 12.11%
--------------------------------------------------------------------------------
[graph omitted]
plot points follows:
BOSTON 1784 RUSSELL LIPPER
GROWTH 2000 MID-CAP
FUND INDEX FUNDS AVERAGE
3/31/96 $10,000 $10,000 $10,000
5/96 11,270 10,950 10,852
5/97 12,258 11,713 11,746
5/98 13,807 14,201 14,565
5/99 13,319 13,819 16,093
5/00 22,105 15,189 21,536
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 3/28/96
19
<PAGE>
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
================================================================================
BOSTON 1784 INTERNATIONAL EQUITY FUND
OBJECTIVE: TO PROVIDE INVESTORS WITH LONG-TERM GROWTH OF CAPITAL. DIVIDEND
INCOME, IF ANY, IS INCIDENTAL TO THIS GOAL.
As of May 31, 2000, Boston 1784 International Equity Fund had holdings in 16
countries and 57 companies. About 74% of the Fund was invested in the
established equity markets included in the Morgan Stanley Capital International
EAFE Index, and 9% was invested in the emerging markets. From May 31, 1999
through May 31, 2000, the Fund's assets increased from $389.8 million to $400.1
million.
For the 12 months ended May 31, 2000, the Fund had a total return of 36.46%,
compared with returns of 17.43% for the Morgan Stanley MSCI EAFE Index and
25.62% for the Lipper International Funds Average for the same period. Based on
total return, the Fund placed in the top 22% (138 of 649) in the Lipper
International Funds Average. The Fund's return and resulting ranking reflect a
waiver of certain management fees and expenses (see Financial Highlights).
Investors' interest in value-oriented stocks that began early in 1999
reversed when the fiscal year began in June 1999. The Fund's focus on growth
stocks, especially in the telecommunications and associated technology sectors,
helped it outperform its benchmarks during the first nine months of the fiscal
year. These same companies then suffered a setback as investors dramatically
revalued U.S. technology companies during the last three months of the fiscal
year. In this environment, many of the Fund's technology positions benefited
from industry consolidation, especially data and telecommunications service and
equipment providers. Stock selection in Japan also helped Fund returns. Although
the economy is recovering slowly, Japan has embraced new communication
technologies with enthusiasm and related sectors have experienced significant
growth.
Rising interest rates have dampened equity performance significantly since
January 2000. The markets now sense, however, that the central banks have almost
completed their efforts to curb inflation. With higher capital costs going
forward, we expect investors to focus more on company fundamentals. We plan,
therefore, to continue emphasizing companies with longer-term earnings growth
and strong internal cash generation.
BOSTON 1784 INTERNATIONAL EQUITY FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
IN BOSTON 1784 INTERNATIONAL EQUITY FUND VERSUS THE MORGAN STANLEY
EAFE INDEX AND THE LIPPER INTERNATIONAL FUNDS AVERAGE
--------------------------------------------------------------------------------
One Year Annualized Annualized Annualized Inception
Return 3 Year Return 5 Year Return TO Date*
--------------------------------------------------------------------------------
36.46% 11.30% 12.74% 12.54%
--------------------------------------------------------------------------------
[graph omitted]
plot points follows:
BOSTON 1784 MORGAN LIPPER
INTERNATIONAL STANLEY INTERNATIONAL
EQUITY FUND EAFE INDEX FUNDS AVERAGE
1/31/95 $10,000 $10,000 $10,000
5/95 11,040 10,862 10,784
5/96 13,146 12,021 12,417
5/97 14,583 12,928 13,949
5/98 15,486 14,365 15,975
5/99 14,735 14,991 15,799
5/00 20,107 17,560 19,847
PAST PERFORMANCE OF THE FUND IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
*INCEPTION DATE: 1/3/95
20
<PAGE>
BOSTON 1784 FUNDS
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 93.7%
ARIZONA -- 2.2%
Pima County, Industrial
Development Authority
RB, LOC (A) (B)
4.100%, 06/07/00 $19,000 $19,000
-------
CALIFORNIA -- 2.2%
Orange County, California
Sanitation District 1, 2 & 3,
Capital Improvement
COP, LOC (A) (B)
4.150%, 06/01/00 12,660 12,660
Student Education Loan
Marketing RB, Series A,
LOC (A) (B)
4.350%, 06/07/00 7,000 7,000
-------
19,660
-------
COLORADO -- 0.9%
Moffat County, Pollution Control
Authority RB, Pacificorp Project,
AMBAC (A) (B)
4.350%, 06/01/00 7,800 7,800
-------
CONNECTICUT -- 1.3%
Connecticut State Health &
Higher Education Facilities
RB, Yale University,
Series T-2 (A) (B)
4.300%, 06/01/00 10,455 10,455
Connecticut State Special Tax
Obligation Authority RB,
Second Lien, LOC (A) (B)
4.100%, 06/01/00 1,000 1,000
-------
11,455
-------
FLORIDA -- 2.9%
Dade County Water & Sewer
System RB, FGIC (A) (B)
4.050%, 06/07/00 25,000 25,000
-------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
GEORGIA -- 4.5%
Burke County, Pollution Control
RB, Oglethorpe Power,
Series A, FGIC (A) (B)
4.100%, 06/07/00 $13,550 $13,550
Hapeville, Industrial
Development Authority RB,
Hapeville Hotel Project, LOC (A)
4.450%, 06/01/00 26,100 26,100
-------
39,650
-------
HAWAII -- 0.3%
Hawaii State GO, Series CF
4.400%, 07/01/00 2,925 2,927
-------
ILLINOIS -- 3.5%
Illinois State Educational Facility
Authority RB, Shedd Aquarium
Society Project, Series B, LOC (A)
3.700%, 11/20/00 6,000 6,000
Illinois State Toll Highway Authority
RB, Series B, FSA (A) (B)
4.300%, 06/07/00 25,000 25,000
-------
31,000
-------
INDIANA -- 2.1%
Indiana State Educational Loan RB,
Series E, AMBAC
4.200%, 06/01/00 4,400 4,400
Monroe County, Hospital Authority
RB, MBIA (A) (B)
4.050%, 06/07/00 14,100 14,100
-------
18,500
-------
KENTUCKY -- 1.0%
Boone County, Pollution Control
Authority RB, Cincinnati
Gas & Electric Project,
Series A, LOC (A)
4.550%, 06/01/00 4,100 4,100
Kentucky State Property &
Buildings Authority RB,
Project Number 65
5.000%, 02/01/01 4,630 4,656
-------
8,756
-------
21
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
LOUISIANA -- 6.4%
East Baton Rouge, Industrial
Development Authority RB,
Stauffer Chemical Project (A)
4.450%, 11/04/00 $16,050 $16,050
Louisiana State Offshore Terminal
Authority RB, Deepwater Port
Project, LOC (A) (B)
4.350%, 06/01/00 18,600 18,600
4.050%, 06/07/00 10,800 10,800
Louisiana State South Port
Authority RB, Occidental
Petroleum, LOC (A) (B)
4.000%, 06/07/00 10,800 10,800
-------
56,250
-------
MARYLAND -- 3.3%
Maryland State Department
of Transportation RB
5.000%, 09/01/00 17,225 17,284
Maryland State Health & Higher
Education Facilities Authority
RB, Pooled Loan Program,
Series A, GOI, LOC (A) (B)
4.000%, 06/01/00 11,100 11,100
-------
28,384
-------
MASSACHUSETTS -- 7.9%
Massachusetts State GO,
Series B (A)
4.250%, 06/01/00 37,000 37,000
Massachusetts State Health and
Education Authority RB,
Harvard University Project,
Series R, GOI (A) (B)
4.050%, 06/01/00 9,195 9,195
Massachusetts State Health and
Education Authority RB,
Partners Healthcare System
Project, Series P-2, FSA (A)
4.000%, 06/07/00 22,400 22,400
-------
68,595
-------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MISSISSIPPI -- 6.7%
Jackson County, Pollution
Control Authority RB,
Chevron USA Project (A) (B)
4.300%, 06/01/00 $24,000 $24,000
Jackson County, Port Facilities
Authority RB, Chevron USA
Project (A) (B)
4.350%, 06/01/00 7,700 7,700
Perry County, Pollution Control
Authority RB, Leaf River Forest
Project, LOC (A) (B)
4.350%, 06/01/00 26,350 26,350
-------
58,050
-------
NEW HAMPSHIRE -- 1.9%
New Hampshire State Health &
Higher Education Facilities
Authority RB, Mary Hitchcock
Project, Series 85D, FGIC (A)
4.150%, 06/07/00 12,600 12,600
New Hampshire State Health &
Higher Education Facilities
Authority RB, VHA New England
Project, Series C, AMBAC (A)
4.200%, 06/07/00 4,000 4,000
-------
16,600
-------
NEW JERSEY -- 1.4%
Bayonne GO, BAN
4.000%, 07/14/00 11,992 11,995
-------
NEW MEXICO -- 1.5%
Hurley, Pollution Control
Authority RB, Kennecott
Santa Fe Project (A) (B)
4.350%, 06/01/00 6,600 6,600
New Mexico State Highway
Commission Tax Authority
RB, Series A
5.000%, 06/15/01 6,220 6,242
-------
12,842
-------
22
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
NEW YORK -- 6.7%
Long Island Power Authority RB,
Sub-Series 5, LOC (A) (B)
4.300%, 06/01/00 $27,500 $27,500
New York City GO,
Sub-Series A-4, LOC (A) (B)
4.250%, 06/01/00 7,700 7,700
New York City GO,
Sub-Series A-5, LOC (A)
4.400%, 06/01/00 7,915 7,915
New York State Local
Government Assistance
Authority RB, Series B,
GOC, LOC (A) (B)
3.750%, 06/07/00 15,000 15,000
-------
58,115
-------
NORTH CAROLINA -- 4.9%
Wake County, Industrial Facilities
& Pollution Control RB,
Carolina Power & Light Project,
Series B, LOC (A)
4.100%, 06/07/00 8,600 8,600
Wake County, Industrial Facilities
& Pollution Control RB,
Carolina Power & Light Project,
Series C, LOC (A)
4.100%, 06/07/00 34,300 34,300
-------
42,900
-------
PENNSYLVANIA -- 4.0%
Delaware County, Industrial
Development Authority RB,
United Parcel Service Project
4.300%, 06/07/00 3,400 3,400
Delaware Valley, Regional Finance
Authority RB, Series B, LOC (A)
4.100%, 06/07/00 5,900 5,900
Quakertown, General Authority
RB, Pooled Finance Program,
Series A, LOC (A) (B)
4.150%, 06/07/00 10,345 10,345
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Schuylkill County, Industrial
Development Authority RB,
Gilberton Power Project,
LOC (A) (B)
4.100%, 06/07/00 $14,800 $14,800
-------
34,445
-------
SOUTH CAROLINA -- 3.6%
Piedmont, Municipal Power
Agency RB, Series C,
MBIA (A) (B)
4.100%, 06/07/00 19,400 19,400
Spartanburg County, Health
Services Authority RB,
MBIA (A) (B)
4.050%, 06/07/00 6,800 6,800
Spartanburg County, School
District Authority GO, BAN
4.750%, 02/15/01 5,000 5,021
-------
31,221
-------
TENNESSEE -- 0.5%
Sullivan County, Industrial
Development Authority RB,
Mead Project, LOC (A) (B)
4.300%, 06/01/00 4,500 4,500
-------
TEXAS -- 11.0%
Bexar County, Housing Finance
Authority RB, Altamonte
Apartments Project,
FNMA (A) (B)
4.100%, 06/07/00 11,300 11,300
Harris County, Health Facilities
Development Authority RB,
Texas Children's Hospital
Project, Series B-1,
MBIA (A) (B)
4.100%, 06/07/00 18,000 18,000
Midlothian, Industrial
Development Authority
RB, Box-Crow Cement
Project, LOC (A) (B)
4.050%, 06/07/00 12,000 12,000
23
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 TAX-FREE MONEY MARKET FUND (CONCLUDED)
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
TEXAS (CONTINUED)
North Central, Health Facility
Development Authority RB,
Presbyterian Medical
Center Project, Series D,
MBIA (A) (B)
4.400%, 06/01/00 $ 5,010 $ 5,010
Texas State RB, Series A, TRAN
4.500%, 08/31/00 49,000 49,086
--------
95,396
--------
UTAH -- 4.4%
Utah State GO, Series B (A) (B)
4.000%, 06/07/00 38,300 38,300
--------
VERMONT -- 0.7%
Vermont State Health &
Educational Buildings
Financing Authority RB,
VHA New England Project,
Series D, AMBAC (A)
4.200%, 06/07/00 5,900 5,900
--------
WASHINGTON -- 5.0%
Washington State GO (A)
3.700%, 08/10/00 10,525 10,525
Washington State Public
Power Supply System
Authority RB, Nuclear
Project No. 2, Series A (B)
7.375%, 07/01/00 5,000 5,116
Washington State Public
Power Supply System
Authority RB, Series A
5.000%, 07/01/00 17,660 17,685
Washington State Public Power
Supply System Authority
RB, Series B (B)
7.000%, 07/01/00 4,640 4,746
Washington State Public Power
Supply System Authority RB,
Series B, FSA (B)
7.000%, 07/01/00 5,500 5,626
--------
43,698
--------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
WISCONSIN -- 0.4%
Wisconsin State Public Power
Supply Systems Authority RB,
Series A, AMBAC (B)
7.400%, 07/01/00 $ 3,250 $ 3,326
--------
WYOMING -- 2.5%
Lincoln County, Pollution Control
Authority RB, Exxon Project,
Series B (A)
4.300%, 06/01/00 3,400 3,400
Sublette County, Pollution
Control Authority RB,
Exxon Project (A)
4.350%, 11/04/00 7,800 7,800
Uinta County, Pollution Control
Authority RB, Chevron
USA Project
4.300%, 06/01/00 4,000 4,000
Uinta County, Pollution Control
Authority RB, Chevron USA
Project (A) (B)
4.300%, 06/01/00 6,600 6,600
--------
21,800
--------
TOTAL MUNICIPAL BONDS
(Cost $816,065) 816,065
--------
CASH EQUIVALENT -- 3.0%
Federated Tax-Free Money
Market Fund (A)
4.080% 26,614,834 26,615
--------
TOTAL CASH EQUIVALENT
(Cost $26,615) 26,615
--------
24
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.6%
JP Morgan
6.35%, dated 05/31/00, matures
06/01/00, repurchase price $4,881,861
(collateralized by U.S Treasury
Instruments, total market value:
$4,978,620) (C) $4,881 $ 4,881
---------
TOTAL REPURCHASE AGREEMENT
(Cost $4,881) 4,881
---------
TOTAL INVESTMENTS -- 97.3%
(Cost $847,561) 847,561
---------
OTHER ASSETS AND LIABILITIES, NET -- 2.7% 23,546
---------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 871,220,091
outstanding shares of beneficial interest 871,220
Accumulated net realized loss
on investments (113)
---------
TOTAL NET ASSETS -- 100.0% $ 871,107
=========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
=========
(A)VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000. 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
BAN--BOND ANTICIPATION NOTE
COP--CERTIFICATE OF PARTICIPATION
GO--GENERAL OBLIGATION
LOC--SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY A MAJOR
COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
RB--REVENUE BOND
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
GOC--GENERAL OBLIGATION OF CORPORATION
GOI--GENERAL OBLIGATION OF INSTITUTION
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
VHA--VETERANS HOUSING AUTHORITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
25
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 20.8%
U.S. Treasury Notes
5.375%, 06/30/00 $ 5,000 $ 5,000
5.375%, 07/31/00 9,000 8,996
6.000%, 08/15/00 5,000 4,998
4.625%, 11/30/00 15,000 14,865
5.000%, 02/28/01 15,000 14,852
U.S. Treasury Bill (B)
5.828%, 09/14/00 20,000 19,666
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $68,377) 68,377
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 31.4%
Federal Farm Credit Bank MTN (A)
6.393%, 06/07/00 5,000 4,999
Federal Home Loan Bank
5.350%, 06/08/00 4,000 4,000
5.375%, 03/02/01 10,000 9,921
6.375%, 03/13/01 10,000 9,991
Federal Home Loan Bank (A)
6.418%, 06/07/00 5,000 5,000
6.433%, 06/07/00 5,000 5,000
Federal Home Loan Mortgage
5.516%, 06/06/00 2,815 2,813
Federal Home Loan Mortgage
Discount Note (B)
6.149%, 06/02/00 5,000 4,999
6.281%, 06/07/00 20,000 19,979
6.341%, 06/16/00 15,000 14,960
Student Loan Marketing
Association (A)
6.240%, 06/07/00 3,950 3,943
6.373%, 06/07/00 10,000 9,998
6.373%, 06/07/00 4,000 4,000
Student Loan Marketing
Association, MTN (A)
6.543%, 06/07/00 4,000 4,000
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $103,603) 103,603
--------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 47.5%
Goldman Sachs
Repurchase Agreement
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$10,001,767 (collateralized by
U.S. Treasury Instruments,
total market value:
$10,200,007) (C) $10,000 $ 10,000
Greenwich Capital
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$10,001,772 (collateralized by
U.S. Treasury Instruments,
total market value:
$10,200,059) (C) 10,000 10,000
JP Morgan
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$66,655,755 (collateralized by
U.S. Treasury Instruments,
total market value:
$67,976,881) (C) 66,644 66,644
Morgan Stanley Dean Witter
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$70,012,367 (collateralized by
U.S. Treasury Instruments,
total market value:
$71,400,095) (C) 70,000 70,000
--------
TOTAL REPURCHASE AGREEMENTS
(Cost $156,644) 156,644
--------
TOTAL INVESTMENTS -- 99.7%
(Cost $328,624) 328,624
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.3% 971
--------
26
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 329,585,059
outstanding shares of beneficial interest $329,585
Undistributed net investment income 8
Accumulated net realized gain
on investments 2
--------
TOTAL NET ASSETS -- 100.0% $329,595
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
========
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000. THE DATE SHOWN IS THE NEXT SCHEDULED
RESET DATE.
(B) THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE EFFECTIVE YIELD AS
OF MAY 31, 2000.
(C) TRI-PARTY REPURCHASE AGREEMENT
MTN--MEDIUM TERM NOTE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
27
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 31.4%
Federal Farm Credit Bank MTN (A)
6.393%, 06/07/00 $ 45,000 $ 44,992
Federal Home Loan Bank
5.350%, 06/08/00 36,000 35,999
5.710%, 08/09/00 10,000 9,997
6.600%, 02/22/01 100,000 100,000
5.375%, 03/02/01 26,415 26,206
6.375%, 03/13/01 42,000 41,961
6.450%, 03/16/01 100,000 99,921
Federal Home Loan Bank (A)
6.418%, 06/07/00 45,000 45,000
6.433%, 06/07/00 45,000 45,000
Federal Home Loan Bank
Discount Note (B)
6.308%, 06/02/00 40,000 39,993
Federal Home Loan Mortgage
5.516%, 06/06/00 45,000 44,967
Federal Home Loan Mortgage
Discount Note (B)
6.307%, 06/01/00 17,000 17,000
6.149%, 06/02/00 45,000 44,992
6.281%, 06/07/00 150,000 149,844
6.386%, 06/09/00 111,195 111,038
6.341%, 06/16/00 100,000 99,737
6.394%, 06/16/00 50,000 49,868
6.369%, 06/23/00 165,000 164,362
Federal National Mortgage
Association
6.470%, 02/16/01 25,000 24,995
Federal National Mortgage
Association Discount Note (B)
6.574%, 08/03/00 100,000 98,864
6.629%, 08/24/00 103,042 101,474
Student Loan Marketing
Association (A)
6.373%, 06/07/00 148,545 148,520
Student Loan Marketing
Association, MTN (A)
6.543%, 06/07/00 34,000 33,997
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,578,727) 1,578,727
----------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 13.9%
U.S. Treasury Notes
5.375%, 06/30/00 $ 95,000 $ 94,999
5.375%, 07/31/00 91,000 90,964
6.000%, 08/15/00 45,000 44,986
4.625%, 11/30/00 200,000 198,197
5.000%, 02/28/01 120,000 118,818
5.625%, 05/15/01 150,000 148,957
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $696,921) 696,921
----------
REPURCHASE AGREEMENTS -- 54.8%
Goldman Sachs
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$240,042,400 (collateralized by
U.S. Treasury Instruments,
total market value:
$244,800,161) (C) 240,000 240,000
Greenwich Capital
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$940,166,228 (collateralized by
U.S. Treasury Instruments,
total market value:
$958,805,574) (C) 940,000 940,000
JP Morgan
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$939,479,685 (collateralized by
U.S. Treasury Instruments,
total market value:
$958,100,288.28) (C) 939,314 939,314
Lehman Brothers
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$200,035,444 (collateralized by
U.S. Treasury Instruments,
total market value:
$204,001,937) (C) 200,000 200,000
28
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- (CONTINUED)
Morgan Stanley Dean Witter
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$430,075,967 (collateralized by
U.S. Treasury Instruments,
total market value:
$438,600,586) (C) $430,000 $ 430,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,749,314) 2,749,314
-----------
TOTAL INVESTMENTS -- 100.1%
(Cost $5,024,962) 5,024,962
-----------
OTHER ASSETS AND LIABILITIES,
NET -- (0.1%) (2,656)
-----------
-------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
-------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 5,022,257,212
outstanding shares of beneficial interest $5,022,257
Undistributed net investment income 49
-----------
TOTAL NET ASSETS -- 100.0% $5,022,306
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
===========
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000. THE DATE SHOWN IS THE NEXT SCHEDULED
RESET DATE.
(B) THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE EFFECTIVE YIELD AS
OF MAY 31, 2000.
(C) TRI-PARTY REPURCHASE AGREEMENT
MTN--MEDIUM TERM NOTE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
29
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 PRIME MONEY MARKET FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
COMMERCIAL PAPER -- 49.1%
AUTOMOTIVE -- 2.7%
Daimler Chrysler
6.635%, 06/09/00 $ 5,000 $ 4,993
-------
BEAUTY PRODUCTS -- 8.2%
Colgate-Palmolive
6.518%, 06/28/00 5,000 4,976
Gillette
6.505%, 06/23/00 5,000 4,980
Kimberly Clark
6.403%, 06/16/00 5,000 4,987
-------
14,943
-------
CHEMICALS -- 2.7%
E.I. Du Pont de Nemours
6.578%, 07/11/00 5,000 4,964
-------
COMMUNICATIONS EQUIPMENT -- 2.7%
Motorola
6.646%, 07/27/00 5,000 4,949
-------
DRUGS -- 2.7%
Warner-Lambert
6.502%, 06/26/00 5,000 4,977
-------
FINANCIAL SERVICES -- 19.1%
ABB Treasury USA
6.771%, 06/01/00 5,000 5,000
6.528%, 06/16/00 5,000 4,986
American Express Credit
6.384%, 06/07/00 5,000 4,995
Associates
6.528%, 06/28/00 5,000 4,976
General Electric Capital
6.527%, 06/27/00 5,000 4,977
UBS Finance
6.771%, 06/01/00 5,000 5,000
Unilever Capital
6.409%, 06/12/00 5,000 4,990
-------
34,924
-------
FOOD, BEVERAGE & TOBACCO -- 2.7%
Kellogg
6.589%, 07/20/00 5,000 4,956
-------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
TAXABLE MUNICIPALS -- 2.8%
New York City
6.070%, 06/05/00 $ 3,800 $ 3,800
6.500%, 06/08/00 1,350 1,350
-------
5,150
-------
TELEPHONES & TELECOMMUNICATIONS -- 2.7%
BellSouth Telecomm
6.380%, 06/05/00 5,000 4,996
-------
RETAIL -- 2.8%
Wal-Mart
6.374%, 06/01/00 5,000 5,000
-------
TOTAL COMMERCIAL PAPER
(Cost $89,852) 89,852
-------
CORPORATE BONDS -- 11.6%
Allfirst Bank
5.830%, 02/09/01 5,000 4,998
Barton Healthcare LLC (A)
6.700%, 06/07/00 840 840
Comerica Bank (A)
6.445%, 01/12/01 5,000 4,999
First Union (A)
6.590%, 11/24/00 3,000 3,000
General Motors Acceptance, MTN
7.500%, 06/09/00 1,500 1,500
IBM
6.375%, 06/15/00 5,000 5,001
JP Morgan, MTN
6.125%, 10/02/00 500 500
Pepsico, MTN
5.875%, 06/01/00 400 400
-------
TOTAL CORPORATE BONDS
(Cost $21,238) 21,238
-------
30
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.9%
Student Loan Marketing
Association, MTN (A)
6.543%, 08/03/00 $4,000 $ 4,000
6.373%, 05/18/01 5,000 4,999
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $8,999) 8,999
--------
TAXABLE MUNICIPAL BONDS -- 13.3%
Catholic Health Initiatives RB,
Series C (A)
6.450%, 06/07/00 100 100
Community Health System,
LOC (A)
6.650%, 06/07/00 600 600
Florida Housing Financing Agency
RB, MBIA (A)
6.400%, 06/01/00 2,500 2,500
Kit Carson County, Colorado,
Agricultural Development
RB, LOC (A)
6.700%, 06/07/00 2,000 2,000
Los Angeles, California, Community
Redevelopment Agency
RB, FSA (A)
6.450%, 06/07/00 5,000 5,000
Maryland State Health & Higher
Education Facilities RB,
Series B, LOC (A)
6.700%, 06/01/00 2,300 2,300
Maryland State Health & Higher
Education RB, LOC (A)
6.700%, 06/07/00 4,100 4,100
Olathe, Kansas, Industrial RB,
LOC (A)
6.450%, 06/01/00 4,000 4,000
Union County, Arkansas, Industrial
RB, LOC (A)
6.700%, 06/07/00 3,000 3,000
Waterford, Wisconsin Industrial
RB, LOC (A)
6.700%, 06/07/00 775 775
--------
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $24,375) 24,375
--------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
CERTIFICATE OF DEPOSIT -- 2.7%
Suntrust Bank
6.780%, 04/18/01 $5,000 $ 4,999
--------
TOTAL CERTIFICATE OF DEPOSIT
(Cost $4,999) 4,999
--------
YANKEE CERTIFICATES OF DEPOSIT -- 8.2%
Bank of Nova Scotia
6.695%, 02/12/01 5,000 4,998
Bayerische Landesbank NY (A)
6.448%, 12/15/00 5,000 4,998
Rabobank Nederland NV
6.690%, 02/28/01 5,000 4,998
--------
TOTAL YANKEE CERTIFICATES OF DEPOSIT
(Cost $14,994) 14,994
--------
REPURCHASE AGREEMENT -- 9.9%
JP Morgan
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$18,100,192 (collateralized by
U.S. Treasury Instruments,
total market value:
$18,458,940) (B) 18,097 18,097
--------
TOTAL REPURCHASE AGREEMENT
(Cost $18,097) 18,097
--------
TOTAL INVESTMENTS -- 99.7%
(Cost $182,554) 182,554
--------
OTHER ASSETS AND LIABILITIES,
NET -- 0.3% 521
--------
31
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 PRIME MONEY MARKET FUND (CONCLUDED)
--------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 183,086,461
outstanding shares of beneficial interest $ 183,070
Undistributed net investment income 29
Accumulated net realized loss
on investments (24)
---------
TOTAL NET ASSETS -- 100.0% $ 183,075
=========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
=========
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000. THE DATE SHOWN IS THE NEXT SCHEDULED
RESET DATE.
(B) TRI-PARTY REPURCHASE AGREEMENT
LLC--LIMITED LIABILITY COMPANY
LOC--SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY A MAJOR
COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
MTN--MEDIUM TERM NOTE
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR THE
SECURITIES AS SET FORTH IN THE STATEMENT OF NET ASSETS:
FSA--FINANCIAL SECURITY ASSURANCE
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
32
<PAGE>
BOSTON 1784 FUNDS
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
COMMERCIAL PAPER -- 45.8%
COMMUNICATIONS EQUIPMENT -- 2.8%
Motorola
6.648%, 07/28/00 $20,000 $ 19,792
--------
DRUGS -- 7.2%
Merck
6.531%, 06/29/00 25,000 24,874
Pfizer
5.374%, 06/09/00 25,000 24,970
--------
49,844
--------
ELECTRIC PRODUCTS -- 2.6%
Emerson Electric
6.505%, 06/23/00 18,000 17,929
--------
FINANCIAL SERVICES -- 22.9%
ABB Treasury USA
6.771%, 06/01/00 25,000 25,000
6.781%, 06/12/00 10,000 9,980
Ford Motor Credit
6.374%, 06/07/00 25,000 24,974
General Electric Capital
6.320%, 06/16/00 25,000 24,935
General Motors Acceptance
6.343%, 06/19/00 25,000 24,921
UBS Finance
6.771%, 06/01/00 25,000 25,000
Unilever Capital
6.409%, 06/12/00 25,000 24,951
--------
159,761
--------
LEASING & RENTING -- 3.6%
International Lease Finance
6.384%, 06/09/00 25,000 24,965
--------
TAXABLE MUNICIPALS -- 3.1%
New York City
6.070%, 06/05/00 12,150 12,150
6.200%, 06/06/00 5,200 5,200
6.500%, 06/08/00 4,335 4,335
--------
21,685
--------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS -- 3.6%
Bellsouth Telecomm
6.380%, 06/05/00 $25,000 $ 24,982
--------
TOTAL COMMERCIAL PAPER
(Cost $318,958) 318,958
--------
CORPORATE BONDS -- 23.6%
Advocare (A)
6.640%, 06/07/00 4,150 4,150
Bank of New York
6.515%, 01/22/01 20,000 19,993
Barton Healthcare LLC (A)
6.700%, 06/07/00 560 560
Bowie Assisted Living,
Series 1997, LOC (A) (B)
6.400%, 06/07/00 6,700 6,700
Caterpillar Finanical Services, MTN
5.810%, 07/05/00 3,025 3,024
Comerica Bank (A)
6.445%, 06/01/00 30,000 29,993
First Union (A)
6.590%, 06/01/00 20,000 19,998
General Motors Acceptance, MTN
7.500%, 06/09/00 4,000 4,001
Health Midwest Venture (A)
6.600%, 06/07/00 1,900 1,900
Huntington National Bank (A)
6.380%, 07/12/00 30,000 30,025
IBM
6.375%, 06/15/00 3,000 3,001
Key Bank, MTN
6.500%, 01/29/01 20,000 19,993
Mellon Funding
6.300%, 06/01/00 1,500 1,500
Pepsico, MTN
5.875%, 06/01/00 5,400 5,400
Service Graphics (A)
6.700%, 06/07/00 1,800 1,800
UNO, LOC (A)
6.700%, 06/07/00 2,700 2,700
U.S. Bank NA (A)
6.640%, 06/17/00 9,500 9,503
--------
TOTAL CORPORATE BONDS
(Cost $164,241) 164,241
--------
33
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND (CONCLUDED)
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
YANKEE CERTIFICATES OF DEPOSIT -- 8.6%
Bayerische Landesbank NY
6.448%, 12/15/00 $20,000 $ 19,992
Rabobank Nederland NV
6.690%, 02/28/01 20,000 19,993
Royal Bank of Canada NY
6.520%, 01/18/01 20,000 19,994
--------
TOTAL YANKEE CERTIFICATES OF DEPOSIT
(Cost $59,979) 59,979
--------
TAXABLE MUNICIPAL BONDS -- 8.4%
California State Housing &
Finance Authority RB,
Series K, FSA
6.630%, 06/25/00 20,000 20,000
Collier County, Industrial
Development Authority RB,
Community Health, Series B,
LOC (A)
6.500%, 06/01/00 3,000 3,000
Dade County, Florida, Expressway
Authority Toll System
RB, FGIC (A)
6.450%, 06/01/00 1,200 1,200
Florida Housing & Finance
Authority RB, Affordable
Housing Project, Series B,
MBIA (A)
6.400%, 06/01/00 6,900 6,900
Florida Housing & Finance
Authority RB, MBIA (A)
6.400%, 06/01/00 3,400 3,400
Illinois State Student Assistance
RB, Series B, LOC (A)
6.600%, 06/07/00 5,000 5,000
Los Angeles, California,
Community Redevelopment
Authority RB, FSA (A)
6.450%, 06/07/00 5,500 5,500
Maryland State Health & Higher
Education Facilities RB,
Charlestown Project,
Series B, GOI LOC (A)
6.700%, 06/07/00 3,000 3,000
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Olathe, Kansas, Industrial
Development Authority RB,
Series B, LOC (A)
6.450%, 06/01/00 $ 3,500 $ 3,500
Union County, Arkansas, Industrial
Development Authority RB,
Tin Fiber Project, LOC (A)
6.700%, 06/07/00 7,000 7,000
--------
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $58,500) 58,500
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.0%
Federal Home Loan Bank
5.710%, 08/09/00 10,000 9,998
Student Loan Marketing
Association, MTN (A)
6.373%, 06/06/00 10,000 9,998
6.543%, 06/06/00 8,000 7,999
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $27,995) 27,995
--------
REPURCHASE AGREEMENT -- 9.3%
JP Morgan
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$64,566,387 (collateralized by
U.S. Treasury Instruments,
total market value:
$65,846,101) (C) 64,555 64,555
--------
TOTAL REPURCHASE AGREEMENT
(Cost $64,555) 64,555
--------
TOTAL INVESTMENTS -- 99.7%
(Cost $694,228) 694,228
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.3% 2,385
--------
34
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 696,610,377
outstanding shares of beneficial interest $696,610
Undistributed net investment income 5
Accumulated net realized loss
on investments (2)
--------
TOTAL NET ASSETS -- 100.0% $696,613
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
========
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000. THE DATE SHOWN IS THE NEXT SCHEDULED
RESET DATE.
(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 BUYERS.
(C) TRI-PARTY REPURCHASE AGREEMENT
LLC--LIMITED LIABILITY COMPANY
LOC--SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY A MAJOR
COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
MTN--MEDIUM TERM NOTE
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR THE
SECURITIES AS SET FORTH IN THE STATEMENT OF NET ASSETS:
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FSA--FINANCIAL SECURITY ASSURANCE
GOI--GENERAL OBLIGATION OF INSTITUTION
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
35
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 SHORT-TERM INCOME FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 16.6%
U.S. Treasury Notes
6.250%, 04/30/01 $ 5,500 $ 5,477
6.375%, 09/30/01 6,000 5,969
6.250%, 01/31/02 2,000 1,983
6.625%, 03/31/02 2,000 1,994
5.500%, 03/31/03 2,000 1,938
5.875%, 11/15/04 4,250 4,128
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $21,822) 21,489
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.0%
Federal Home Loan Bank
5.875%, 08/15/01 5,000 4,924
5.875%, 09/17/01 8,500 8,361
Federal National Mortgage
Association
5.750%, 04/15/03 2,000 1,916
Federal National Mortgage
Association CMO REMIC
8.950%, 05/25/03 245 248
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $15,669) 15,449
-------
U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS -- 0.4%
Federal Deposit Insurance
Corporation Trust REMIC
6.750%, 05/25/26 488 476
Federal Home Loan Mortgage
Corporation
8.000%, 01/01/02 80 80
-------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(Cost $568) 556
-------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
TAXABLE MUNICIPAL BONDS -- 3.7%
Carondelet, California, Health
Systems RB, Daniel Freeman
Hospitals, MBIA
6.250%, 07/01/01 $ 4,000 $ 3,956
Pennsylvania State Housing Finance
Agency RB, Single Family
Mortgage, Series 52C, FHA
7.000%, 10/01/06 865 829
-------
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $4,864) 4,785
-------
ASSET-BACKED SECURITIES -- 17.6%
Centrex Auto Trust,
Series 1996-A, Class A
6.750%, 10/15/04 317 316
CIT RV Owners Trust,
Series 1995-A, Class A
6.250%, 01/15/11 137 136
Crown Home Equity Loan Trust,
Series 1996-1, Class A3
6.810%, 06/25/11 1,156 1,058
Daimler Chrysler Auto Trust,
Series 2000-A, Class A3
7.090%, 12/06/03 5,000 4,974
Discover Card Master Trust,
Series 1998-4, Class A
5.750%, 10/16/03 895 882
Fleetwood Credit Grantor Trust,
Series 1995-B, Class A
6.550%, 05/16/11 418 417
Green Tree Recreational,
Equipment & Consumer
Trust, Series 1996-A, Class A1
5.550%, 02/15/18 149 144
MBNA Master Credit Card Trust,
Series 1995-D, Class A
6.050%, 11/15/02 1,500 1,500
36
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- (CONTINUED)
PNC Student Loan Trust I,
Series 1997-2, Class A-5
6.530%, 01/25/03 $ 5,000 $ 4,913
Reliance Auto Receivables,
Series 1996-A, Class A
6.100%, 07/15/02 46 46
Sears Credit Account Master
Trust, Series 1996-4, Class A
6.450%, 10/16/06 1,000 985
Standard Credit Card Master
Trust, Series 1993-2, Class A
5.950%, 09/07/03 2,500 2,379
University Support Services,
Series 1993-A, Class B (A)
7.800%, 08/20/08 29 29
WFS Financial Owner Trust,
Series 1997-C, Class A4
6.150%, 09/20/02 5,000 4,979
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $23,032) 22,758
-------
CORPORATE OBLIGATIONS -- 28.8%
CHEMICALS -- 3.8%
Praxair
6.700%, 04/15/01 5,000 4,950
-------
FINANCIAL SERVICES -- 21.2%
Associates Corporation of
North America
5.750%, 11/01/03 5,000 4,700
AXA Financial
6.750%, 12/01/00 420 420
Donaldson, Lufkin, Jenrett, MTN
5.625%, 02/15/01 5,675 5,604
Ford Motor Credit
7.250%, 01/15/03 5,000 4,938
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
General Motors Acceptance, MTN
7.875%, 03/07/01 $ 2,000 $ 2,005
5.480%, 12/16/02 5,000 4,756
Salomon Smith Barney Holdings
7.500%, 05/01/02 5,000 4,981
-------
27,404
-------
FOOD, BEVERAGE & TOBACCO -- 3.8%
Campbell Soup
6.150%, 12/01/02 5,000 4,869
-------
TOTAL CORPORATE OBLIGATIONS
(Cost $38,140) 37,223
-------
YANKEE BONDS -- 0.4%
Phillips Petroleum
8.500%, 05/25/05 475 481
-------
TOTAL YANKEE BONDS
(Cost $474) 481
-------
CERTIFICATES OF DEPOSIT -- 1.9%
Mercantile Safe Deposit and Trust
7.400%, 04/03/02 2,500 2,488
-------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $2,500) 2,488
-------
SHORT-TERM INVESTMENTS -- 7.7%
American Express Credit Discount Note
6.524%, 06/30/00 5,000 4,974
Daimler Chrysler Discount Note
6.477%, 06/30/00 5,000 4,974
-------
TOTAL SHORT-TERM INVESTMENTS
(Cost $9,948) 9,948
-------
37
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 SHORT-TERM INCOME FUND (CONCLUDED)
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 10.3%
JP Morgan
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$13,283,343 (collateralized by
U.S. Treasury Instruments,
total market value:
$13,546,620) (B) $13,281 $ 13,281
--------
TOTAL REPURCHASE AGREEMENT
(Cost $13,281) 13,281
--------
TOTAL INVESTMENTS -- 99.4%
(Cost $130,298) 128,458
--------
OTHER ASSETS AND LIABILITIES,
NET -- 0.6% 752
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 13,160,758
outstanding shares of beneficial interest 144,625
Distributions in excess of net
investment income (6)
Accumulated net realized loss
on investments (13,569)
Net unrealized depreciation
on investments (1,840)
--------
TOTAL NET ASSETS -- 100.0% $129,210
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.82
========
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000.
(B) TRI-PARTY REPURCHASE AGREEMENT
CMO--COLLATERALIZED MORTGAGE OBLIGATION
FHA--FEDERAL HOUSING ADMINISTRATION
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
MTN--MEDIUM TERM NOTE RB--REVENUE BOND
REMIC--REAL ESTATE MORTGAGE INVESTMENT CONDUIT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
38
<PAGE>
BOSTON 1784 FUNDS
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 INCOME FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.4%
Aid-Israel
6.625%, 08/15/03 $ 1,000 $ 987
Federal Home Loan Bank
6.750%, 05/01/02 980 972
5.125%, 09/15/03 1,070 1,001
5.800%, 09/02/08 6,000 5,366
Federal Home Loan Bank (A)
6.461%, 09/28/00 7,000 7,001
Federal Home Loan Mortgage
Corporation
6.875%, 01/15/05 655 642
5.750%, 03/15/09 3,500 3,102
Federal National Mortgage
Association
5.750%, 04/15/03 475 455
5.750%, 06/15/05 5,000 4,660
6.000%, 05/15/08 5,100 4,637
6.375%, 06/15/09 1,000 925
6.250%, 05/15/29 5,700 4,952
Federal National Mortgage
Association MTN (B)
4.990%, 08/15/01 4,000 3,674
-------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $40,863) 38,374
-------
U.S. TREASURY OBLIGATIONS -- 32.1%
U.S. Treasury Bonds
9.875%, 11/15/15 2,000 2,658
8.750%, 05/15/17 2,250 2,777
8.125%, 08/15/19 5,000 5,923
7.875%, 02/15/21 4,260 4,972
8.000%, 11/15/21 8,750 10,377
6.000%, 02/15/26 700 671
5.250%, 11/15/28 6,285 5,450
5.250%, 02/15/29 1,550 1,349
6.125%, 08/15/29 4,750 4,730
U.S. Treasury Notes
6.625%, 06/30/01 16,500 16,479
6.250%, 10/31/01 5,605 5,566
5.500%, 05/31/03 80 77
7.250%, 05/15/04 850 867
7.250%, 08/15/04 1,445 1,476
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. Treasury Notes (CONTINUED)
5.875%, 11/15/04 $ 4,905 $ 4,765
7.500%, 02/15/05 585 605
6.875%, 05/15/06 2,000 2,027
7.000%, 07/15/06 3,330 3,397
6.500%, 10/15/06 2,000 1,991
6.000%, 08/15/09 2,800 2,725
6.500%, 02/15/10 18,745 19,014
U.S. Treasury STRIPS (B)
10.824%, 02/15/19 5,000 1,547
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $100,900) 99,443
-------
U.S. AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 0.5%
Federal Home Loan
Mortgage Corporation
7.750%, 09/01/05 387 384
Federal National Mortgage
Association CMO REMIC
6.000%, 12/25/16 1,322 1,231
-------
TOTAL U.S. AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $1,654) 1,615
-------
ASSET-BACKED SECURITIES -- 8.5%
Chemical Master Credit Card
Trust, Series 1995-3, Class A
6.230%, 04/15/05 3,000 2,926
Citibank Credit Card Master
Trust, Series 1998-9, Class A
5.300%, 01/09/06 3,000 2,787
Citibank Credit Card Master
Trust, Series 1999-7, Class A
6.650%, 11/15/06 3,295 3,176
Fleetwood Credit Grantor
Trust, Series 1995-B, Class A
6.550%, 05/16/11 627 625
Ford Credit Auto Owner Trust,
Series 1999-D, Class A5
6.520%, 09/15/03 3,000 2,954
Ford Credit Auto Owner Trust,
Series 2000-A, Class A4
7.090%, 11/17/03 3,000 2,985
39
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 INCOME FUND (CONCLUDED)
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- (CONTINUED)
General Motors Acceptance
Commercial Mortgage Security,
Series 1999-C3, Class A1A
6.974%, 07/15/32 $ 965 $ 932
MBNA Master Credit Card Trust,
Series 1999-J, Class A
7.000%, 02/15/12 4,000 3,827
Merrill Lynch Mortgage Investors,
Series 1989-H, Class B (A)
10.000%, 01/15/10 2,227 2,222
Oakwood Mortgage Investors,
Series 1995-B, Class A3
6.900%, 01/15/21 4,040 3,826
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $26,940) 26,260
-------
U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS -- 25.0%
Federal Home Loan Mortgage
Corporation
7.000%, 12/01/14 1,980 1,917
6.000%, 11/01/28 16,691 15,019
Federal National Mortgage
Association
6.500%, 05/01/11 2,652 2,518
6.000%, 03/01/13 796 740
6.000%, 04/01/13 778 723
6.000%, 05/01/13 1,715 1,594
6.000%, 06/01/13 10,741 9,990
6.000%, 06/01/13 1,597 1,486
6.500%, 06/01/28 4,187 3,873
6.000%, 06/01/29 998 895
6.000%, 07/01/29 997 895
8.000%, 02/01/30 2,381 2,361
7.000%, 03/01/30 1,997 1,895
7.500%, 03/01/30 1,998 1,941
8.000%, 04/01/30 9,161 9,084
Government National Mortgage
Association
7.000%, 10/15/23 1,062 1,019
8.000%, 06/15/25 97 97
8.000%, 10/15/25 179 179
8.000%, 01/15/26 72 72
8.000%, 02/15/26 104 104
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Government National Mortgage
Association -- (CONTINUED)
7.500%, 04/15/26 $ 2,496 $ 2,450
8.000%, 05/15/26 115 116
7.000%, 06/15/26 4,245 4,076
8.000%, 06/15/26 349 350
7.500%, 02/15/27 48 47
8.000%, 03/15/27 925 927
6.500%, 06/15/28 928 869
6.500%, 05/15/29 12,602 11,790
7.500%, 03/15/30 1,997 1,961
-------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(Cost $80,500) 77,502
-------
CORPORATE OBLIGATIONS -- 10.3%
BANKS -- 3.9%
Bank of New York
7.875%, 11/15/02 3,750 3,745
Comerica Bank
7.250%, 06/15/07 2,000 1,888
Dime Bancorp
7.000%, 07/25/01 3,000 2,959
First USA Bank
7.650%, 08/01/03 3,525 3,499
-------
12,091
-------
ELECTRICAL -- 0.7%
Emerson Electric
6.875%, 06/01/05 2,225 2,253
-------
FINANCIAL SERVICES -- 1.1%
US West Capital Funding
6.875%, 08/15/01 3,400 3,370
-------
INDUSTRIAL -- 1.1%
Fortune Brands
6.250%, 04/01/08 3,600 3,263
-------
PETROLEUM REFINING -- 0.5%
BP Amoco PLC
5.900%, 04/15/09 1,900 1,693
-------
40
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
RAILROADS -- 1.7%
Burlington Northern Sante Fe
9.250%, 10/01/06 $ 5,070 $ 5,406
---------
RETAIL -- 0.8%
Wal-Mart Stores
7.550%, 02/15/30 2,500 2,484
---------
TELEPHONES & TELECOMMUNICATIONS -- 0.5%
Lucent Technologies
5.500%, 11/15/08 1,000 875
MCI Worldcom (A)
6.125%, 04/15/02 720 699
---------
1,574
---------
TOTAL CORPORATE OBLIGATIONS
(Cost $33,511) 32,134
---------
YANKEE BONDS -- 8.3%
AT&T
6.000%, 03/15/09 3,300 2,875
6.500%, 03/15/29 1,250 1,014
Ford Motor Credit
5.800%, 01/12/09 7,000 6,038
Goldman Sachs Group MTN
7.800%, 01/28/10 3,500 3,395
Hydro-Quebec
8.625%, 05/20/02 3,395 3,443
Province of Ontario
7.375%, 01/27/03 3,395 3,378
Sprint Capital
6.900%, 05/01/19 2,500 2,163
Wal-Mart Stores
6.875%, 08/10/09 2,500 2,381
Worldcom
7.875%, 05/15/03 1,155 1,152
---------
TOTAL YANKEE BONDS
(Cost $26,700) 25,839
---------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 4.4%
JP Morgan
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$13,492,379 (collateralized by
U.S. Treasury Instruments,
total market value:
$13,759,800) (C) $13,490 $ 13,490
--------
TOTAL REPURCHASE AGREEMENT
(Cost $13,490) 13,490
--------
TOTAL INVESTMENTS -- 101.5%
(Cost $324,558) 314,657
---------
OTHER ASSETS AND LIABILITIES,
NET-- (1.5%) (4,700)
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 32,948,210
outstanding shares of beneficial interest 333,087
Undistributed net investment income 7
Accumulated net realized loss
on investments (13,236)
Net unrealized depreciation
on investments (9,901)
--------
TOTAL NET ASSETS -- 100.0% $309,957
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.41
========
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000.
(B) ZERO COUPON SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE EFFECTIVE YIELD AS OF MAY 31, 2000.
(C) TRI-PARTY REPURCHASE AGREEMENT
CMO--COLLATERALIZED MORTGAGE OBLIGATION
MTN--MEDIUM TERM NOTE
PLC--PUBLIC LIMITED COMPANY
REMIC--REAL ESTATE MORTGAGE INVESTMENT CONDUIT
STRIPS--SEPARATELY TRADED REGISTERED INTEREST AND PRINCIPAL SECURITIES
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
41
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 25.0%
U.S. Treasury Bonds
11.250%, 02/15/15 $ 700 $ 1,012
9.875%, 11/15/15 2,000 2,658
8.750%, 05/15/17 2,000 2,469
6.000%, 02/15/26 1,100 1,055
U.S. Treasury Notes
6.375%, 03/31/01 2,500 2,492
8.000%, 05/15/01 2,000 2,021
6.625%, 06/30/01 13,000 12,984
6.625%, 07/31/01 463 462
5.625%, 09/30/01 1,000 985
6.250%, 10/31/01 5,500 5,462
5.500%, 02/28/03 7,500 7,269
5.500%, 05/31/03 4,830 4,676
5.250%, 08/15/03 2,000 1,919
7.500%, 02/15/05 2,000 2,068
6.500%, 05/15/05 4,750 4,733
5.875%, 11/15/05 4,000 3,870
6.250%, 02/15/07 770 759
6.625%, 05/15/07 500 502
6.125%, 08/15/07 2,000 1,955
5.625%, 05/15/08 750 711
U.S. Treasury STRIPS (B)
10.390%, 08/15/10 1,000 520
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $61,737) 60,582
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 42.6%
Agency of Housing and Urban
Development, Series 1995-A
8.240%, 08/01/02 2,000 2,033
Agency of Housing and Urban
Development, Series 1997-A
6.210%, 08/01/01 4,000 3,956
6.360%, 08/01/04 5,500 5,288
Aid-Israel
6.625%, 08/15/03 2,590 2,557
Federal Farm Credit Bank, MTN
7.350%, 03/24/05 350 348
Federal Farm Credit Bank,
MTN (A)
6.433%, 05/17/01 10,000 10,004
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Federal Home Loan Bank
6.750%, 05/01/02 $ 4,900 $ 4,858
6.580%, 01/07/03 3,000 2,938
7.660%, 07/20/04 350 353
7.725%, 04/05/10 2,000 1,965
Federal Home Loan Bank (A)
6.461%, 09/28/00 5,000 5,000
6.433%, 04/16/01 7,000 7,001
Federal Home Loan Mortgage
Corporation
5.750%, 07/15/03 3,500 3,340
7.340%, 11/03/06 1,000 969
Federal Home Loan Mortgage
Corporation REMIC
7.000%, 07/15/03 48 48
6.750%, 02/15/20 1,080 1,010
Federal National Mortgage
Association
5.750%, 04/15/03 12,400 11,880
5.125%, 02/13/04 805 746
8.000%, 07/01/07 153 153
6.000%, 05/15/08 5,250 4,774
6.375%, 06/15/09 10,000 9,251
Federal National Mortgage
Association, MTN
6.580%, 03/01/06 1,000 945
Federal National Mortgage
Association, MTN (A)
4.990%, 08/15/01 4,000 3,674
Private Export Funding
Corporation
5.500%, 03/15/01 2,500 2,472
6.310%, 09/30/04 5,000 4,800
6.620%, 10/01/05 1,740 1,679
7.110%, 04/15/07 3,800 3,720
Student Loan Marketing
Association (A)
6.373%, 05/18/01 6,000 6,005
Tennessee Valley Authority
Principal STRIPS (B)
7.813%, 04/15/42 4,000 1,479
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $106,120) 103,246
--------
42
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS -- 20.2%
Federal Deposit Insurance
Corporation Trust REMIC
6.750%, 05/25/26 $ 1,195 $ 1,166
Federal Home Loan Mortgage
Corporation
7.000%, 10/01/03 55 53
7.000%, 12/01/10 995 964
Federal National Mortgage
Association
6.500%, 05/01/11 1,326 1,259
6.000%, 04/01/13 9,329 8,676
6.000%, 06/01/13 129 120
7.785%, 02/01/19 4,717 4,687
10.000%, 10/01/20 1,261 1,346
10.000%, 12/01/20 1,364 1,456
8.000%, 11/01/29 6,947 6,889
Government National Mortgage
Association
8.500%, 10/15/04 32 32
8.500%, 01/15/06 45 45
9.000%, 11/15/17 636 661
7.000%, 10/15/23 602 578
7.500%, 02/15/27 1,313 1,289
6.500%, 03/15/29 18,918 17,700
Student Loan Marketing Association
6.304%, 10/25/05 2,137 2,125
--------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS
(Cost $51,400) 49,046
--------
U.S. GOVERNMENT GUARANTEED BONDS -- 6.2%
Global Industries Ltd.
7.250%, 07/15/22 10,846 10,627
Secunda Atlantic
6.695%, 04/01/18 3,699 3,441
Sulphur Carriers
8.300%, 10/15/09 1,047 1,104
--------
TOTAL U.S. GOVERNMENT GUARANTEED BONDS
(Cost $15,312) 15,172
--------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 5.2%
JP Morgan
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$12,611,224 (collateralized by
U.S. Treasury Instruments,
total market value:
$12,861,180.11) (C) $12,609 $ 12,609
--------
TOTAL REPURCHASE AGREEMENT
(Cost $12,609) 12,609
--------
TOTAL INVESTMENTS -- 99.2%
(Cost $247,178) 240,655
--------
OTHER ASSETS AND LIABILITIES,
NET -- 0.8% 1,864
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 26,564,968
outstanding shares of beneficial interest 258,410
Undistributed net investment income 2
Accumulated net realized loss
on investments (9,370)
Net unrealized depreciation
on investments (6,523)
--------
TOTAL NET ASSETS -- 100.0% $242,519
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.13
========
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000.
(B) ZERO COUPON SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE EFFECTIVE YIELD AS OF MAY 31, 2000.
(C) TRI-PARTY REPURCHASE AGREEMENT
LTD.--LIMITED MTN--MEDIUM TERM NOTE
REMIC--REAL ESTATE MORTGAGE INVESTMENT CONDUIT
STRIPS--SEPARATELY TRADED REGISTERED INTEREST AND PRINCIPAL SECURITIES
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
43
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 94.1%
ALASKA -- 1.7%
Anchorage GO, FGIC
6.000%, 10/01/04 $5,050 $ 5,214
-------
CALIFORNIA -- 3.2%
California State GO
5.500%, 02/01/10 1,500 1,547
California State GO, FGIC
5.250%, 10/01/10 2,000 2,025
California State Housing Finance
Agency RB, Home Mortgage,
Series K, MBIA
5.950%, 08/01/10 1,830 1,855
Los Angeles County, Metropolitan
Transportation Authority RB,
Series A, AMBAC
5.700%, 07/01/12 1,135 1,165
Newport Beach RB, Hoag
Memorial Hospital Project,
Series C (A)
4.250%, 06/01/00 3,000 3,000
-------
9,592
-------
COLORADO -- 1.1%
Colorado State Department of
Transportation RB, AMBAC
6.000%, 06/15/12 1,250 1,306
Denver, Multi-Family Housing
Authority RB, Section 8,
Series A, HUD
5.350%, 10/01/12 2,000 1,882
-------
3,188
-------
CONNECTICUT -- 2.0%
Connecticut State Resource
Recovery Authority RB,
Bridgeport Resco Project, MBIA
5.125%, 01/01/09 1,000 981
Connecticut State Resource
Recovery Authority RB,
Connecticut Systems Project,
Series A, MBIA GOA
6.250%, 11/15/06 2,000 2,107
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Connecticut State Special Tax
Obligation Authority RB,
Transportation Infrastructure,
Series B, MBIA
5.500%, 10/01/12 $2,750 $ 2,747
-------
5,835
-------
DISTRICT OF COLUMBIA -- 3.9%
District of Columbia GO,
Series A, FSA
5.875%, 06/01/05 2,000 2,050
District of Columbia GO,
Series A, MBIA
5.000%, 06/01/15 2,500 2,247
District of Columbia GO,
Series B, FSA
5.500%, 06/01/10 2,000 1,992
District of Columbia RB,
Georgetown University,
Series A, MBIA
5.950%, 04/01/14 1,000 1,017
Washington Convention Center
RB, Senior Lien, AMBAC
5.250%, 10/01/14 4,500 4,224
-------
11,530
-------
FLORIDA -- 2.0%
Florida State Board of
Education GO, Series E
5.700%, 06/01/14 2,000 2,005
Florida State Department of
Environmental Protection RB,
Series A, FGIC
5.750%, 07/01/08 2,900 2,983
Village Center Community,
Developmental District Authority
RB, Series B, MBIA
5.250%, 10/01/15 1,000 939
-------
5,927
-------
GEORGIA -- 3.8%
Georgia State GO, Series B
5.750%, 08/01/08 1,000 1,032
Georgia State GO, Series D
5.800%, 11/01/10 3,000 3,109
5.800%, 11/01/12 4,000 4,130
44
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
GEORGIA -- (CONTINUED)
Georgia State Municipal Electric
Authority RB, Project 1,
Sub-Series A, MBIA
5.125%, 01/01/12 $3,000 $ 2,899
-------
11,170
-------
HAWAII -- 0.2%
Hawaii State GO, Series CR, MBIA
5.250%, 04/01/12 500 480
-------
ILLINOIS -- 1.5%
Chicago, O'Hare International
Airport RB, Passenger Facilities
Charge, Series A, AMBAC
5.625%, 01/01/12 2,000 1,997
Illinois State GO
5.000%, 04/01/12 2,750 2,571
-------
4,568
-------
MAINE -- 2.5%
Maine Municipal Bond Bank RB,
Series A, FSA
5.250%, 11/01/08 1,705 1,692
Maine Municipal Bond Bank RB,
Series C, FSA
5.150%, 11/01/13 1,250 1,172
Maine State Health & Higher
Educational Facilities Authority
RB, Series A, MBIA
4.750%, 07/01/13 1,500 1,337
Maine State Housing Authority
RB, Series C-1
5.700%, 11/15/15 2,000 1,957
Maine State Housing Authority
RB, Series F-1
5.125%, 11/15/15 1,300 1,191
-------
7,349
-------
MARYLAND -- 1.3%
Maryland State & Local Facilities
GO, 1st Series
5.000%, 03/01/10 1,500 1,459
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Maryland State & Local Facilities
GO, 2nd Series
5.000%, 07/15/10 $1,100 $ 1,061
Maryland State Community
Development Administration
Department RB, Residential
Project, Series B, AMT
5.550%, 09/01/25 1,250 1,239
------
3,759
------
MASSACHUSETTS -- 10.4%
Holyoke GO, Series A, FSA
5.600%, 06/15/10 1,365 1,387
Massachusetts Bay Transportation
Authority RB, General
Transportation Systems,
Series A, MBIA GOA
5.500%, 03/01/12 1,290 1,290
Massachusetts Bay Transportation
Authority RB, General
Transportation Systems,
Series C, GOA
5.500%, 03/01/08 1,000 1,011
Massachusetts State GO,
Consolidated Loan,
Series B, FGIC
5.500%, 06/01/11 2,000 2,002
5.125%, 06/01/12 3,000 2,846
Massachusetts State GO,
Consolidated Loan,
Series C, AMBAC
5.000%, 08/01/14 2,500 2,281
Massachusetts State GO,
Consolidated Loan,
Series D, AMBAC
4.500%, 11/01/15 1,000 860
Massachusetts State GO,
Series A
5.000%, 11/01/13 1,200 1,119
Massachusetts State Health &
Educational Facilities Authority
RB, Dana Farber Cancer
Project, Series G-1
6.250%, 12/01/08 1,000 1,012
45
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONTINUED)
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MASSACHUSETTS -- (CONTINUED)
Massachusetts State Health &
Educational Facilities Authority
RB, Eye & Ear Infirmary,
Series B, ACA
5.250%, 07/01/11 $1,000 $ 947
Massachusetts State Health &
Educational Facilities Authority
RB, Harvard Pilgrim Health,
Series A, FSA
5.250%, 07/01/13 2,215 1,963
Massachusetts State Health &
Educational Facilities Authority
RB, Suffolk University Project,
Series C, CONLEE GOI
5.850%, 07/01/16 1,000 1,000
Massachusetts State Housing
Finance Agency RB, Multi-Family
Housing Project, Series A, MBIA
5.600%, 07/01/07 475 477
5.700%, 07/01/08 475 479
Massachusetts State Industrial
Finance Agency RB, Assumption
College Issue, CONLEE GOI
5.875%, 07/01/11 1,090 1,117
Massachusetts State Industrial
Finance Agency RB, Ogden
Haverhill Project, Series A, AMT
5.150%, 12/01/07 1,250 1,167
Massachusetts State Industrial
Finance Agency RB, Ogden
Project, Series A
4.950%, 12/01/06 1,710 1,599
Massachusetts State Industrial
Finance Agency RB, Refusetech
Project, Series A
6.150%, 07/01/02 1,595 1,609
6.300%, 07/01/05 3,220 3,260
Massachusetts State Municipal
Wholesale Electric Company
RB, AMBAC
5.150%, 07/01/16 2,000 1,830
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System, Series A, MBIA
5.000%, 01/01/12 250 233
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System,
Series C, MBIA (C)
5.400%, 01/01/16 $ 1,000 $ 394
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System,
Sub-Series B, MBIA
5.250%, 01/01/17 1,000 919
-------
30,802
-------
MICHIGAN -- 2.0%
Michigan State Building Authority
RB, Facilities Program,
Series I, MBIA
4.750%, 10/15/13 3,250 2,917
Michigan State House of
Representatives COP, AMBAC
5.250%, 08/15/14 3,220 3,123
-------
6,040
-------
MINNESOTA -- 1.7%
Northern Minnesota State
Municipal Power Agency RB,
Electric System, FSA
5.250%, 01/01/12 2,490 2,418
Southern Minnesota State
Municipal Power Agency RB,
Power Utility, Series A, AMBAC
5.000%, 01/01/13 2,715 2,511
-------
4,929
-------
MISSISSIPPI -- 0.7%
Mississippi State Highway
Authority RB, Four Lane
Highway Project
5.250%, 06/01/06 2,000 2,007
-------
MISSOURI -- 1.0%
St. Charles County, Public Water
Supply District No. 2 COP,
Series A, MBIA
5.500%, 12/01/14 3,000 2,940
-------
46
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
NEBRASKA -- 1.3%
Nebraska State, American Public
Energy Agency RB, Public
Gas Agency Project,
Series A, AMBAC
5.250%, 06/01/11 $4,000 $3,800
------
NEVADA -- 1.1%
Nevada State Capital Improvement
& Cultural Affairs GO, Series A
5.500%, 02/01/11 1,000 998
Nevada State GO, Series A
5.000%, 07/01/13 2,500 2,297
------
3,295
------
NEW HAMPSHIRE -- 1.7%
New Hampshire Municipal Bond
Bank GO, Series B, FSA
5.250%, 08/15/11 3,115 3,053
New Hampshire State Higher
Education & Health Facilities
Authority RB, Kendal At
Hanover Project, LOC
5.800%, 10/01/12 1,000 999
New Hampshire State Housing
Finance Authority RB,
Single-Family Mortgage
Project, Series B, FHA
5.850%, 07/01/10 900 902
------
4,954
------
NEW JERSEY -- 1.0%
New Jersey Transportation
Trust Fund RB, Transportation
System, Series A
5.500%, 06/15/08 3,000 3,034
------
NEW YORK -- 15.7%
Long Island Power Authority RB,
New York Electric System, FSA
5.500%, 12/01/12 1,500 1,496
Metropolitan Transportation
Authority RB, Commuter
Facilities, Series A, FGIC
5.750%, 07/01/11 1,000 1,018
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Metropolitan Transportation
Authority RB, Commuter
Facilities, Series A, FSA
5.500%, 07/01/15 $1,530 $1,486
Metropolitan Transportation
Authority RB, Series C, FSA
5.125%, 07/01/13 5,000 4,700
Metropolitan Transportation
Authority RB, Transportation
Service Contract, Series R
5.500%, 07/01/14 1,740 1,673
New York City GO, Series A
5.250%, 08/01/06 5,000 4,963
New York City GO, Series C
5.250%, 08/15/11 2,080 1,981
5.000%, 08/15/14 1,000 899
New York City GO, Series D
6.000%, 02/15/09 1,000 1,028
6.000%, 02/15/12 600 610
New York City GO, Series F
5.250%, 08/01/14 3,000 2,783
New York City GO, Series G
5.000%, 08/01/14 4,000 3,595
New York City, Water & Sewer
Authority RB, Series C, FGIC (A)
3.441%, 06/01/00 2,000 2,000
New York State Dormitory
Authority RB, Court
Facilities Lease, Series A
5.500%, 05/15/10 1,000 994
New York State Dormitory
Authority RB, Mental Health
Services Facilities Improvement,
Series D, MBIA
5.000%, 08/15/14 1,000 911
New York State GO, Series A
5.000%, 03/15/14 2,000 1,820
New York State GO,
Series C, AMBAC
5.375%, 10/01/11 3,000 2,974
New York State Housing Finance
Agency RB, Housing Mortgage
Project, Series A, FSA
5.800%, 11/01/09 1,720 1,737
47
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONTINUED)
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
NEW YORK -- (CONTINUED)
New York State Urban
Development Authority RB,
Correctional Capital
Facilities, MBIA
5.000%, 01/01/13 $1,500 $ 1,399
New York State Urban
Development Authority RB,
Correctional Capital
Facilities, Series A, FSA
5.250%, 01/01/14 7,225 6,981
New York State Urban
Development Authority RB,
Youth Facilities Project, MBIA
5.700%, 04/01/14 1,505 1,507
-------
46,555
-------
NORTH CAROLINA -- 4.7%
North Carolina State, Eastern
Municipal Power Agency RB
6.000%, 01/01/14 4,000 3,805
North Carolina State, Eastern
Municipal Power Agency RB,
Series B, FGIC
6.000%, 01/01/13 2,000 2,025
North Carolina State, Eastern
Municipal Power Agency RB,
Series D
5.875%, 01/01/14 1,035 960
5.600%, 01/01/16 2,000 1,770
North Carolina State, Eastern
Municipal Power Agency RB,
Series D, ACA
5.600%, 01/01/16 3,000 2,880
North Carolina State, Public
Improvement GO, Series A
5.250%, 03/01/12 2,500 2,453
-------
13,893
-------
OHIO -- 2.6%
Ohio State Higher Education
Capital Facilities Authority GO,
Series A
5.120%, 02/01/09 2,495 2,464
Ohio State Infrastructure GO,
Series A
5.750%, 02/01/11 2,280 2,346
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Ohio State Public Facilities
Commission RB, Higher
Education Capital Facilities,
Series II-A
5.000%, 05/01/08 $2,900 $ 2,842
-------
7,652
-------
OKLAHOMA -- 0.9%
Oklahoma State Turnpike Authority
RB, Series B, FGIC
5.250%, 01/01/12 2,750 2,692
-------
OREGON -- 1.3%
Port of Portland, Pollution
Control Authority RB, Reynold
Metals Project, LOC (A)
3.900%, 06/01/00 4,000 4,000
-------
PENNSYLVANIA -- 4.1%
Pennsylvania State GO,
1st Series, AMBAC
5.125%, 03/15/12 2,000 1,928
Pennsylvania State GO, 2nd Series
5.250%, 06/15/12 2,155 2,098
Pennsylvania State Higher
Education Facilities RB,
University of Pennsylvania
Health Services, Series A
5.750%, 01/01/12 1,300 1,164
Pennsylvania State Higher
Education Facilities RB,
University of Pennsylvania
Health Services, Series A, MBIA
5.250%, 01/01/13 2,000 1,908
Pennsylvania State Housing
Finance Agency RB, Single-Family
Mortgages, Series 50A
6.000%, 10/01/13 2,000 2,010
Philadelphia, Water and
Wastewater Authority RB,
Registered Fixed Airs
Project, FGIC
5.650%, 06/15/12 3,000 3,034
-------
12,142
-------
48
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
PUERTO RICO -- 2.5%
Puerto Rico Commonwealth GO,
Public Improvement, FSA
5.250%, 07/01/10 $1,000 $1,005
5.500%, 07/01/12 2,000 2,038
Puerto Rico Electric Power
Authority RB, Series FF, MBIA
5.250%, 07/01/14 4,700 4,547
------
7,590
------
RHODE ISLAND -- 3.3%
Providence, Public Building
Authority RB, School &
Public Facilities Project,
Series A, AMBAC
5.375%, 12/15/11 1,000 978
Rhode Island Housing &
Mortgage Finance Authority RB,
Homeownership Opportunity,
Series 33-B, AMT
5.750%, 04/01/22 1,550 1,536
Rhode Island State GO,
Consolidated Capital
Development Loan,
Series A, FGIC
5.500%, 09/01/15 2,740 2,665
Rhode Island State Housing
& Mortgage Finance Authority RB,
Homeownership Opportunity,
Series 15-B
6.200%, 10/01/06 1,110 1,143
Rhode Island State Housing &
Mortgage Finance Authority RB,
Homeownership Opportunity,
Series 19-A
5.700%, 04/01/15 2,500 2,438
Rhode Island State Port Authority
& Economic Development RB,
Shepard Building Project,
Series B, AMBAC (B)
6.750%, 06/01/15 1,015 1,090
------
9,850
------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
SOUTH CAROLINA -- 1.6%
South Carolina State GO, Highway
System, Series A
4.600%, 05/01/12 $4,000 $3,580
South Carolina State Public
Service Authority RB,
Series B, FGIC
5.875%, 01/01/14 1,150 1,167
------
4,747
------
TEXAS -- 0.8%
Tarrant County, Health Facilities
Authority RB, Harris Methodist
Health System Project,
Series A, AMBAC
5.125%, 09/01/12 2,700 2,545
------
VIRGINIA -- 1.6%
Richmond GO, FSA
5.125%, 01/15/07 3,000 2,959
Virginia State Housing
Development Authority
RB, Series H
5.700%, 11/01/07 1,655 1,672
------
4,631
------
WASHINGTON -- 10.0%
Grant County, Public Utility
District Authority RB,
Series G, MBIA
5.250%, 01/01/14 2,400 2,256
Seattle Municipal Light &
Power Authority RB
5.875%, 10/01/10 2,300 2,369
Washington State Public
Power Supply Systems RB,
Nuclear Power Project No. 1,
Series A
5.000%, 07/01/11 1,000 920
5.000%, 07/01/13 4,000 3,615
Washington State Public
Power Supply Systems RB,
Nuclear Power Project No. 1,
Series B
5.125%, 07/01/14 3,000 2,730
49
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONCLUDED)
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
WASHINGTON -- (CONTINUED)
Washington State Public
Power Supply Systems RB,
Nuclear Power Project No. 2,
Series A, FSA
5.125%, 07/01/11 $1,000 $ 940
Washington State Public
Power Supply Systems RB,
Nuclear Power Project No. 3,
Series A (C)
5.050%, 07/01/13 2,000 918
Washington State Public
Power Supply Systems RB,
Nuclear Power Project No. 3,
Series A, FSA
5.100%, 07/01/10 2,500 2,378
Washington State Public
Power Supply Systems RB,
Registered Aces & Inverse, FSA
5.400%, 07/01/12 7,800 7,478
Washington State Public
Power Supply Systems RB,
Series B, FSA
5.125%, 07/01/13 5,000 4,706
Washington State RB, Convention
& Trade Center COP, MBIA
5.000%, 07/01/10 1,500 1,425
--------
29,735
--------
WEST VIRGINIA -- 0.2%
West Virginia State GO
5.250%, 06/01/11 750 736
--------
WISCONSIN -- 0.7%
Wisconsin State Transit RB,
Series B, FGIC
5.250%, 07/01/11 2,020 1,972
--------
TOTAL MUNICIPAL BONDS
(Cost $287,631) 279,153
--------
-------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
-------------------------------------------------------------------------------
CASH EQUIVALENT -- 4.7%
Federated Tax-Free Money
Market Fund (A)
4.080% 13,885,813 $13,886
--------
TOTAL CASH EQUIVALENT
(Cost $13,886) 13,886
--------
TOTAL INVESTMENTS -- 98.8%
(Cost $301,517) 293,039
--------
OTHER ASSETS AND LIABILITIES,
NET -- 1.2% 3,672
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 30,922,589
outstanding shares of beneficial interest 311,517
Distributions in excess of net
investment income (19)
Accumulated net realized loss
on investments (6,309)
Net unrealized depreciation
on investments (8,478)
--------
TOTAL NET ASSETS -- 100.0% $296,711
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.60
========
50
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000.
(B) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
(C) ZERO COUPON SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE EFFECTIVE YIELD AS OF MAY 31, 2000.
AMT--ALTERNATIVE MINIMUM TAX
COP--CERTIFICATE OF PARTICIPATION
GO--GENERAL OBLIGATION
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:
ACA--AMERICAN CAPITAL ACCESS
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
CONLEE--COLLEGE CONSTRUCTION LOAN INSURANCE
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FHA--FEDERAL HOUSING ADMINISTRATION
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.
51
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 95.1%
CONNECTICUT -- 78.7%
Bridgeport GO, Series A, AMBAC
6.500%, 09/01/08 $1,435 $1,552
5.450%, 03/01/11 1,550 1,552
Bristol, Resource Recovery RB,
Ogden Martin System Project
6.500%, 07/01/14 3,000 3,056
Connecticut State GO, Series A
5.250%, 06/15/10 2,025 2,007
5.250%, 03/15/13 3,000 2,914
5.250%, 03/15/14 2,500 2,419
5.125%, 03/15/15 3,895 3,647
Connecticut State GO,
Series B (B)
5.250%, 03/15/08 2,500 2,419
Connecticut State GO,
Series C
5.800%, 08/15/08 1,500 1,541
Connecticut State GO,
Series D
5.125%, 12/15/13 4,790 4,545
5.250%, 12/15/15 500 476
Connecticut State Health &
Education Facilities Authority
RB, Bridgeport Hospital,
Series C, CONLEE
5.250%, 07/01/15 1,615 1,528
Connecticut State Health &
Education Facilities Authority
RB, Greenwich Hospital,
Series A, MBIA
5.750%, 07/01/16 2,000 2,010
Connecticut State Health &
Education Facilities Authority
RB, Hospital For Special Care,
Series B, ACA
5.375%, 07/01/17 2,500 2,231
Connecticut State Health &
Education Facilities Authority
RB, Hospital of Saint Raphael,
Series H, AMBAC
5.300%, 07/01/10 2,740 2,706
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Connecticut State Health &
Education Facilities Authority
RB, Masonicare, Series A, AMBAC
5.200%, 07/01/14 $2,840 $2,652
5.000%, 07/01/17 1,000 886
Connecticut State Health &
Education Facilities Authority
RB, New Britain Hospital,
Series B, AMBAC GOI
6.000%, 07/01/09 1,000 1,040
Connecticut State Health &
Education Facilities Authority
RB, New Horizons Village
Project, AMBAC
7.050%, 11/01/09 1,000 1,094
Connecticut State Health &
Education Facilities Authority
RB, Newington Children's
Hospital, Series A, MBIA
5.850%, 07/01/07 1,110 1,143
Connecticut State Health &
Education Facilities Authority
RB, Sacred Heart University
Project, Series E
4.650%, 07/01/11 1,390 1,234
4.900%, 07/01/13 3,400 3,026
Connecticut State Health &
Education Facilities Authority
RB, Sharon Health Care
Project, AMBAC
6.000%, 11/01/09 1,000 1,041
Connecticut State Health &
Education Facilities Authority
RB, Stamford Hospital,
Series F, MBIA
5.400%, 07/01/09 2,000 1,995
Connecticut State Health &
Education Facilities Authority
RB, Yale-New Haven Hospital,
Series H, MBIA
5.625%, 07/01/16 1,000 980
52
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
CONNECTICUT -- (CONTINUED)
Connecticut State Higher
Education RB, Family Education
Loan Program, Series A, AMT
7.000%, 11/15/05 $1,030 $1,049
Connecticut State Housing &
Finance Authority RB, Mortgage
Finance Authority, Series E, GOA
6.200%, 05/15/14 430 434
Connecticut State Housing &
Finance Authority RB, Mortgage
Finance Program, Series A, GOA
5.950%, 05/15/11 3,215 3,251
6.200%, 05/15/14 1,350 1,365
Connecticut State Housing &
Finance Authority RB, Mortgage
Finance Program, Series B
6.000%, 11/15/15 2,000 2,010
Connecticut State Housing &
Finance Authority RB, Mortgage
Finance Program,
Series C-1, GOA
6.000%, 11/15/10 1,010 1,021
Connecticut State Housing &
Finance Authority RB, Mortgage
Finance Program, Sub-
Series B1, GOA
6.000%, 05/15/08 230 235
Connecticut State Housing &
Finance Authority RB, Mortgage
Finance Program,
Sub-Series E-1, GOA
5.900%, 05/15/15 4,200 4,200
Connecticut State Housing &
Finance Authority RB,
Sub-Series A-3, GOA
5.950%, 05/15/17 1,000 1,001
Connecticut State Resource
Recovery Authority RB,
American Fuel Company,
Series A, AMT, MBIA
5.125%, 11/15/14 7,125 6,582
Connecticut State Resource
Recovery Authority RB,
Bridgeport Resco Project, MBIA
5.125%, 01/01/09 3,000 2,944
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Connecticut State Resource
Recovery Authority RB,
Connecticut Systems Project,
Series A, MBIA GOA
6.250%, 11/15/06 $2,275 $2,397
Connecticut State Resource
Recovery Authority RB,
Mid-Connecticut System
Project, Series A, MBIA GOA
5.375%, 11/15/10 2,000 1,990
5.500%, 11/15/11 6,000 5,985
Connecticut State Resource
Recovery Authority RB,
Series A, MBIA GOA
6.250%, 11/15/05 4,750 4,982
Connecticut State Special Tax
RB, Series A, AMBAC
5.250%, 01/01/11 1,000 979
Connecticut State Special Tax
RB, Transportation Infrastructure,
Series A, FGIC
5.700%, 06/01/12 1,160 1,177
5.600%, 06/01/13 1,000 1,000
5.250%, 10/01/14 2,100 1,995
Connecticut State Special Tax
RB, Transportation Infrastructure,
Series B, FGIC (B)
5.500%, 10/01/04 3,920 4,023
Connecticut State Transportation
Infrastructure RB, Series B, FSA
5.250%, 11/01/15 1,000 946
Connecticut State Water RB
5.250%, 07/15/11 1,000 988
Connecticut State, Higher
Education RB, Family
Education Loan Program,
Series A, AMT, AMBAC
5.625%, 11/15/11 1,215 1,218
Connecticut State, Special Tax
Obligation Authority RB,
Transportation Infrastructure,
Series B, MBIA
5.400%, 10/01/10 2,000 2,005
53
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND (CONCLUDED)
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
CONNECTICUT -- (CONTINUED)
Eastern Connecticut Resource
Recovery Authority RB,
Wheelabrator Libson Project,
Series A, AMT
5.500%, 01/01/14 $2,775 $ 2,369
Hartford GO, FGIC
5.700%, 10/01/12 500 509
5.750%, 10/01/13 1,000 1,016
4.700%, 01/15/15 1,340 1,183
New Haven GO, Series A, FGIC
4.700%, 02/01/15 1,875 1,652
South Central Connecticut
Regional Water Authority RB,
Series A, MBIA
6.000%, 08/01/09 985 1,021
6.000%, 08/01/10 1,045 1,082
University of Connecticut RB,
Series A, MBIA
5.250%, 04/01/14 1,000 955
Waterbury, Connecticut
Unlimited Tax GO
4.800%, 02/15/12 1,400 1,271
4.900%, 02/15/13 1,470 1,332
5.000%, 02/15/14 1,395 1,270
--------
117,131
--------
PUERTO RICO -- 16.4%
Puerto Rico Commonwealth GO,
Public Improvement (C)
5.230%, 07/01/14 4,500 1,974
Puerto Rico Commonwealth
GO, Public Improvement, FSA
5.250%, 07/01/10 1,250 1,256
Puerto Rico Commonwealth
Highway & Transportation
Infrastructure RB, MBIA
5.250%, 07/01/14 2,615 2,530
Puerto Rico Electric Power
Authority RB, Series DD, FSA
5.250%, 07/01/14 3,500 3,386
Puerto Rico Electric Power
Authority RB, Series FF, MBIA
5.250%, 07/01/14 3,650 3,531
Puerto Rico Electric Power
Authority RB, Series Z
5.500%, 07/01/14 1,000 976
--------------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Puerto Rico Highway &
Transportation RB, Series X
5.300%, 07/01/04 $ 700 $ 702
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control
Facilities RB, International
American University,
Series A, MBIA
5.250%, 10/01/12 725 705
5.375%, 10/01/13 975 954
5.500%, 10/01/14 650 639
Puerto Rico Infrastructure
Financing Authority RB,
Series A, AMBAC
5.250%, 07/01/10 2,500 2,509
Puerto Rico Municipal Finance
Agency GO, Series A, FSA
5.750%, 08/01/12 1,500 1,543
Puerto Rico Municipal Finance
Agency RB, Series A, FSA (B)
6.000%, 07/01/04 2,650 2,786
Puerto Rico Public Buildings
Authority RB, Government
Facilities, Series B, MBIA
5.000%, 07/01/11 1,000 969
--------
24,460
--------
TOTAL MUNICIPAL BONDS
(Cost $146,243) 141,591
--------
CASH EQUIVALENT -- 4.1%
Federated Tax-Free Money
Market Fund (A)
4.080% 6,113,063 6,113
--------
TOTAL CASH EQUIVALENT
(Cost $6,113) 6,113
--------
TOTAL INVESTMENTS -- 99.2%
(Cost $152,356) 147,704
--------
OTHER ASSETS AND LIABILITIES,
NET -- 0.8% 1,198
--------
54
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 14,889,621
outstanding shares of beneficial interest $155,509
Accumulated net realized loss
on investments (1,955)
Net unrealized depreciation
on investments (4,652)
--------
TOTAL NET ASSETS -- 100.0% $148,902
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.00
========
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000.
(B) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
(C) ZERO COUPON SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE EFFECTIVE YIELD AS OF MAY 31, 2000.
AMT--ALTERNATIVE MINIMUM TAX
GO--GENERAL OBLIGATION
RB--REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR THE
SECURITIES AS SET FORTH IN THE STATEMENT OF NET ASSETS:
ACA--AMERICAN CAPITAL ACCESS
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
CONLEE--COLLEGE CONSTRUCTION LOAN INSURANCE
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.
55
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 94.3%
FLORIDA -- 91.0%
Brevard County, Housing &
Finance Authority RB,
Series B, FSA
7.000%, 03/01/13 $ 155 $ 159
Cape Coral, Special Obligation
Authority RB, Water
Improvement, FSA
6.375%, 06/01/09 1,000 1,042
Dade County, Aviation Authority
RB, Series A, AMT, MBIA
5.750%, 10/01/15 1,000 994
Dade County, Housing & Finance
Authority RB, Series D, FSA
6.950%, 12/15/12 255 261
Dade County, School Board COP,
Series A, MBIA (B)
5.750%, 05/01/04 2,140 2,212
Dade County, School Board COP,
Series B, AMBAC (B)
5.700%, 08/01/06 1,000 1,037
5.600%, 08/01/06 1,000 1,031
Dade County, School District,
GO, MBIA
6.000%, 07/15/06 1,000 1,039
Escambia County, Housing &
Finance Authority RB,
Series A, AMT, FHA
7.300%, 10/01/17 230 235
Florida State Board of Education
Capital Outlay GO, Public
Education, Series A
5.500%, 06/01/15 2,500 2,447
Florida State Board of Education
Capital Outlay GO, Public
Education, Series B, MBIA
5.750%, 06/01/11 1,250 1,267
Florida State Board of Education
Capital Outlay GO, Series A
5.750%, 01/01/13 1,000 1,005
Florida State Bond Finance
Department RB, Environmental
Protection, Series 2000-A, AMBAC
5.700%, 07/01/09 2,000 2,030
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Florida State Bond Finance
Department RB, Environmental
Protection, Series 2000-A, MBIA
5.500%, 07/01/12 $1,000 $ 995
Florida State Bond Finance
Department RB, Environmental
Protection, Series 2000-B, FSA
5.500%, 07/01/08 2,000 2,025
Florida State Educational Lottery
RB, Series A, FGIC
5.000%, 07/01/15 2,000 1,820
Florida State Educational Lottery
RB, Series C, FGIC
5.000%, 07/01/13 1,500 1,386
Florida State Gulf Breeze RB,
Local Government Loan
Program, FGIC
5.000%, 12/01/14 2,000 1,827
Florida State Housing &
Finance Authority RB,
Homeowner Mortgages,
Series 1, MBIA
5.050%, 07/01/12 1,855 1,732
Florida State Turnpike
Authority RB, FGIC
5.250%, 07/01/11 2,000 1,957
Florida State, Jacksonville
Transportation Senior
Lien GO (B)
6.400%, 07/01/02 1,000 1,039
Gainesville, Utilities System
Authority RB, Series B
5.500%, 10/01/13 2,000 1,975
Hillsborough County, Aviation
Authority RB, Tampa
International Airport,
Series B, AMBAC
5.125%, 10/01/17 2,500 2,278
Hillsborough County, Industrial
Development Authority RB,
Allegany Health Systems,
MBIA (B)
6.375%, 12/01/03 1,300 1,357
56
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
FLORIDA -- (CONTINUED)
Hillsborough County, School
Board COP, Master Lease
Program, AMBAC (B)
5.625%, 07/01/05 $2,000 $ 2,080
Hillsborough County, School
Board COP, MBIA (B)
5.900%, 07/01/04 2,000 2,095
Indian Trace Community, Water
Management RB, MBIA
5.500%, 05/01/07 1,000 1,015
Lee County, Water & Sewer RB,
Series A, AMBAC
5.000%, 10/01/14 2,000 1,828
Manatee County, School Board
COP, MBIA
4.950%, 07/01/14 1,000 909
Miami-Dade County, Aviation
Authority RB, Series A,
AMT, FGIC
5.250%, 10/01/07 1,000 995
Orlando, Water & Electric
Utilities Commission RB,
Series A
5.250%, 10/01/14 1,000 954
Palm Beach County, Criminal
Justice Facilities RB, FGIC
5.375%, 06/01/09 1,500 1,500
Pinellas County, Sewer RB, FGIC
5.000%, 10/01/13 1,990 1,838
Reedy Creek, Improvements
GO, Series A, MBIA
5.750%, 06/01/14 2,500 2,513
Sarasota County, Hospital
Facilities RB, Sarasota
Memorial Hospital Project,
Series B, MBIA
5.000%, 10/01/10 1,250 1,188
Tampa Bay, Utility Systems RB,
Series B, FGIC
5.125%, 10/01/12 2,250 2,135
--------------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Tampa, Health Systems RB,
Catholic Health,
Series A-1, MBIA
4.875%, 11/15/15 $1,000 $ 894
Tampa, Health Systems RB,
Catholic Health,
Series A-2, AMBAC
4.875%, 11/15/14 1,000 891
Volusia County, Sales Tax RB,
Subordinated Lien, MBIA
5.000%, 10/01/16 1,830 1,647
-------
55,632
-------
PENNSYLVANIA -- 1.6%
Delaware County, Industrial
Development Authority RB,
United Parcel Service Project (A)
4.300%, 06/01/00 1,000 1,000
-------
PUERTO RICO -- 1.7%
Puerto Rico Municipal Finance
Agency GO, Series A, FSA
5.500%, 08/01/09 1,000 1,024
-------
TOTAL MUNICIPAL BONDS
(Cost $60,128) 57,656
-------
CASH EQUIVALENT -- 2.8%
Federated Tax-Free Money
Market Fund (A)
4.080% 1,734,338 1,734
-------
TOTAL CASH EQUIVALENT
(Cost $1,734) 1,734
-------
TOTAL INVESTMENTS -- 97.1%
(Cost $61,862) 59,390
-------
OTHER ASSETS AND LIABILITIES,
NET -- 2.9% 1,764
-------
57
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND (CONCLUDED)
--------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 6,432,941
outstanding shares of beneficial interest $64,285
Accumulated net realized loss
on investments (659)
Net unrealized depreciation on investments (2,472)
-------
TOTAL NET ASSETS -- 100.0% $61,154
=======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 9.51
=======
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000.
(B) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
AMT--ALTERNATIVE MINIMUM TAX
COP--CERTIFICATE OF PARTICIPATION
GO--GENERAL OBLIGATION
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.
58
<PAGE>
BOSTON 1784 FUNDS
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 94.9%
MASSACHUSETTS -- 89.8%
Barnstable GO
5.000%, 03/15/12 $1,000 $ 940
Boston GO, Series A, AMBAC
5.650%, 02/01/09 1,500 1,521
Boston, Water and Sewer
Community RB, Series A, FGIC
5.125%, 11/01/15 3,320 3,054
Brockton GO, MBIA
5.125%, 04/01/15 1,500 1,399
Chelsea GO, School Loan
Project, AMBAC
6.000%, 06/15/04 650 671
5.700%, 06/15/06 1,000 1,027
Gloucester GO, FGIC
5.100%, 08/01/14 1,105 1,036
Haverhill GO, FGIC
5.300%, 06/15/12 1,500 1,477
Holyoke GO, FSA
5.200%, 08/01/17 690 637
Holyoke GO, Series A, FSA
5.600%, 06/15/11 1,000 1,012
Lawrence GO, AMBAC
6.250%, 02/15/09 1,475 1,538
Lowell GO, AMBAC
5.500%, 08/01/11 2,740 2,757
5.500%, 08/01/12 1,720 1,722
Lowell GO, FSA (B)
6.625%, 04/01/15 1,000 1,060
Lowell GO, Series A, FSA
5.500%, 01/15/10 1,140 1,147
Lynn, Water & Sewer
Community RB,
Series A, FSA
5.000%, 12/01/14 1,375 1,256
Malden GO, AMBAC
5.000%, 10/01/14 1,000 925
Massachusetts Bay
Transportation
Authority RB, General
Transportation Systems,
Series A, GOA
5.600%, 03/01/08 1,885 1,918
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Massachusetts Bay
Transportation
Authority RB, General
Transportation Systems,
Series A, GOA (B)
5.625%, 03/01/26 $1,000 $1,029
Massachusetts Bay
Transportation
Authority RB, General
Transportation Systems,
Series A, MBIA GOA
5.000%, 03/01/18 3,000 2,640
Massachusetts Bay
Transportation
Authority RB, General
Transportation Systems,
Series B, GOA (B)
5.800%, 03/01/10 2,640 2,749
Massachusetts Bay
Transportation
Authority RB,
Series A, GOA (B)
5.500%, 03/01/07 795 820
Massachusetts Bay
Transportation
Authority RB,
Series A, GOA
5.500%, 03/01/07 705 715
Massachusetts Bay
Transportation
Authority RB, Series A,
MBIA GOA (B)
5.750%, 03/01/18 2,615 2,723
Massachusetts Bay
Transportation
Authority RB,
Series B, GOA
6.000%, 03/01/12 3,870 3,947
Massachusetts State
Developmental
Finance Agency RB,
Clark University Project
5.250%, 07/01/16 1,445 1,275
59
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND (CONTINUED)
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MASSACHUSETTS -- (CONTINUED)
Massachusetts State
Developmental Finance
Agency RB, Curry College
Project, Series A, ACA
5.000%, 03/01/13 $1,640 $1,466
Massachusetts State
Developmental Finance
Agency RB, Higher
Education, Emerson College
Project, Series A, AMBAC
5.000%, 01/01/12 1,455 1,355
Massachusetts State Educational
Financing Authority RB,
Issue G, Series A, AMT, MBIA
5.125%, 12/01/14 1,000 905
Massachusetts State Educational
Loan Authority RB, Issue E,
Series B, AMT, AMBAC
6.000%, 01/01/12 335 338
6.300%, 07/01/12 720 733
Massachusetts State GO,
Consolidated Loan, Series B
5.250%, 05/01/12 1,000 961
5.250%, 05/01/14 1,000 942
Massachusetts State GO,
Consolidated Loan, Series B (B)
5.750%, 06/01/16 3,000 3,101
Massachusetts State GO,
Consolidated Loan,
Series B, FGIC
5.125%, 06/01/12 2,000 1,897
Massachusetts State GO,
Consolidated Loan,
Series B, MBIA
5.000%, 04/01/14 3,000 2,771
Massachusetts State GO,
Consolidated Loan, Series C
5.250%, 08/01/14 5,000 4,706
5.250%, 08/01/15 1,750 1,636
5.000%, 08/01/17 2,000 1,777
Massachusetts State GO,
Consolidated Loan, Series D
5.000%, 11/01/11 5,000 4,744
5.000%, 11/01/14 2,000 1,845
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Massachusetts State GO, Series A
5.500%, 02/01/11 $3,500 $3,500
5.000%, 11/01/13 5,000 4,662
Massachusetts State GO,
Series A, AMBAC
5.750%, 08/01/09 2,000 2,060
Massachusetts State GO, Series B
5.500%, 11/01/07 1,000 1,015
6.500%, 08/01/08 5,315 5,707
Massachusetts State GO,
Series B, MBIA
5.400%, 11/01/07 2,000 2,020
Massachusetts State Government
Land Bank RB,Series B
5.250%, 02/01/06 2,000 2,005
Massachusetts State GAN, Series A
5.250%, 12/15/11 4,000 3,890
Massachusetts State Health &
Educational Facilities Authority
RB, Amherst College Project,
Series G, GOI
5.250%, 11/01/15 1,125 1,060
Massachusetts State Health &
Educational Facilities Authority
RB, Baystate Medical Center
Project, Series D, FGIC
6.000%, 07/01/15 2,000 2,010
Massachusetts State Health &
Educational Facilities Authority
RB, Berklee College of Music
Project, Series C, MBIA
5.000%, 10/01/15 975 885
Massachusetts State Health &
Educational Facilities Authority
RB, Boston Medical Center
Project, Series A, MBIA
5.250%, 07/01/15 2,500 2,312
5.250%, 07/01/16 2,725 2,490
Massachusetts State Health &
Educational Facilities Authority
RB, Brandeis University Project,
Series I, MBIA
5.250%, 10/01/12 1,900 1,819
5.250%, 10/01/14 1,500 1,412
60
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MASSACHUSETTS -- (CONTINUED)
Massachusetts State Health &
Educational Facilities Authority
RB, Catholic Health East
Project, Series B, AMBAC
5.000%, 11/15/18 $2,000 $ 1,733
Massachusetts State Health &
Educational Facilities Authority
RB, Dana Farber Cancer
Project, Series G-1
6.250%, 12/01/09 1,175 1,185
Massachusetts State Health &
Educational Facilities Authority
RB, Eye & Ear Infirmary Project,
Series B, ACA
5.250%, 07/01/09 1,500 1,423
Massachusetts State Health &
Educational Facilities Authority
RB, Hallmark Health Systems,
Series A, FSA GOI
5.000%, 07/01/12 1,000 919
Massachusetts State Health &
Educational Facilities Authority
RB, Harvard University Project,
Series M, GOI
5.750%, 12/01/11 1,000 1,015
Massachusetts State Health &
Educational Facilities Authority
RB, Massachusetts General
Hospital, Series G, AMBAC
5.375%, 07/01/11 2,000 1,960
Massachusetts State Health &
Educational Facilities Authority
RB, Partners Health Care System,
Series A, MBIA GOI
5.250%, 07/01/15 2,500 2,322
5.375%, 07/01/17 2,465 2,271
Massachusetts State Health &
Educational Facilities Authority
RB, Partners Health Care System,
Series B
5.250%, 07/01/10 4,670 4,343
Massachusetts State Health &
Educational Facilities Authority
RB, Simmons College,
Series C, MBIA
5.000%, 10/01/14 1,000 911
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Massachusetts State Health &
Educational Facilities Authority
RB, Smith College Project,
Series D, GOI
5.750%, 07/01/16 $2,000 $ 1,990
Massachusetts State Health &
Educational Facilities Authority
RB, UMass Memorial Issue,
Series A, AMBAC
5.250%, 07/01/14 2,000 1,883
Massachusetts State Housing
Finance Agency RB, Multi-Family
Housing, Series A, MBIA
6.100%, 07/01/15 1,590 1,596
Massachusetts State Housing
Finance Agency RB, Rental
Mortgage, Series C, AMT, AMBAC
5.450%, 07/01/18 2,805 2,574
Massachusetts State Housing
Finance Agency RB, Residential
Development Project,
Series A, FNMA
6.875%, 11/15/11 1,750 1,827
Massachusetts State Housing
Finance Agency RB,
Series A, AMBAC
6.300%, 10/01/13 4,950 5,024
Massachusetts State Housing
Finance Agency RB,
Series A, MBIA
5.850%, 12/01/08 1,245 1,261
Massachusetts State Industrial
Finance Agency RB, Babson
College Project, Series A
5.375%, 10/01/17 1,000 896
Massachusetts State Industrial
Finance Agency RB, Ogden
Haverhill Project, Series A, AMT
5.200%, 12/01/08 1,500 1,386
Massachusetts State Industrial
Finance Agency RB, Refusetech
Project, Series A
6.150%, 07/01/02 900 908
6.300%, 07/01/05 1,000 1,013
61
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND (CONTINUED)
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MASSACHUSETTS -- (CONTINUED)
Massachusetts State Industrial
Finance Agency RB, Worcester
Polytechnical Institution,
MBIA GOI
5.125%, 09/01/17 $1,550 $1,424
Massachusetts State Municipal
Wholesale Electric Company
RB, Series D, MBIA
6.000%, 07/01/05 1,000 1,031
Massachusetts State Port Authority
RB, Series A, AMT
6.000%, 07/01/13 1,050 1,059
Massachusetts State Port Authority
RB, Series B, AMT
5.000%, 07/01/13 1,790 1,629
5.250%, 07/01/14 1,385 1,283
Massachusetts State Port Authority
RB, Series E, AMT
5.250%, 07/01/13 1,000 936
Massachusetts State GAN, Series A
5.250%, 06/15/08 2,700 2,680
Massachusetts State Special
Obligation RB, Series A
5.500%, 06/01/07 2,000 2,025
Massachusetts State Special
Obligation RB, Series A (B)
5.750%, 06/01/11 2,780 2,863
5.750%, 06/01/12 700 721
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System, Series A, MBIA
5.000%, 01/01/13 1,000 926
Massachusetts State Water
Pollution Abatement Trust RB,
New Bedford Project,
Series A (B)
5.700%, 02/01/12 1,280 1,322
5.700%, 02/01/15 2,835 2,927
Massachusetts State Water
Pollution Abatement Trust RB,
Pooled Loan Program, Series 1
5.600%, 08/01/13 2,090 2,090
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Massachusetts State Water
Pollution Abatement Trust RB,
Pooled Loan Program, Series 2
6.125%, 02/01/07 $ 730 $ 769
Massachusetts State Water
Pollution Abatement Trust
RB, Series A
5.450%, 02/01/13 935 923
5.250%, 08/01/14 1,000 948
Massachusetts State Water
Resource Authority RB, Series A,
FGIC GOA (B)
5.600%, 11/01/26 3,000 3,090
Massachusetts State Water
Resource Authority RB,
Series B, GOA
5.875%, 11/01/04 1,000 1,025
6.000%, 11/01/05 2,000 2,063
Massachusetts State Water
Resource Authority RB,
Series C, GOA
6.000%, 12/01/11 2,000 2,085
Massachusetts State Water
Resource Authority RB,
Series C, MBIA GOA (B)
5.250%, 12/01/20 2,750 2,812
Mendon Upton, Regional
School District GO, FGIC
5.500%, 06/01/15 1,405 1,382
Nantucket GO (B)
6.800%, 12/01/11 1,425 1,487
Nantucket GO, MBIA
5.250%, 07/15/10 2,250 2,233
Palmer GO, MBIA
5.500%, 10/01/10 1,500 1,509
Peabody GO, Series A
5.000%, 08/01/13 310 288
5.000%, 08/01/14 510 470
Plymouth County, Partners
Correctional Facility
COP, AMBAC
5.125%, 10/01/13 2,165 2,016
Springfield GO, Municipal
Purpose Loan, AMBAC
5.300%, 08/01/11 1,000 993
5.300%, 08/01/13 1,000 979
62
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MASSACHUSETTS -- (CONTINUED)
Springfield GO, Municipal
Purpose Loan, FSA
5.000%, 10/01/09 $1,000 $ 978
5.000%, 09/01/11 1,885 1,812
5.250%, 11/15/11 1,600 1,574
Sutton GO, MBIA
5.250%, 04/01/06 1,255 1,261
University of Lowell Building
Authority RB, Fifth
Series A, AMBAC
5.625%, 11/01/14 3,000 2,970
West Springfield GO, FGIC
5.000%, 03/01/18 1,225 1,092
Westford GO, FGIC
5.500%, 04/01/07 1,705 1,733
Worcester GO, Municipal
Purpose Loan, Series B, MBIA
5.250%, 11/01/14 1,875 1,791
Worcester GO, Series G, MBIA
5.300%, 07/01/15 1,000 964
--------
207,622
--------
PUERTO RICO -- 3.2%
Puerto Rico Commonwealth GO,
Public Improvement
5.000%, 07/01/08 1,710 1,659
Puerto Rico Commonwealth
Highway & Transportation
Authority RB, MBIA
5.250%, 07/01/13 2,675 2,608
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control Facilities
RB, International American
University, Series A, MBIA
5.250%, 10/01/12 2,000 1,945
Puerto Rico Municipal Finance
Agency GO, Series A, FSA
5.500%, 08/01/09 1,000 1,024
--------
7,236
--------
-------------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
-------------------------------------------------------------------------------
TEXAS -- 1.0%
Grapevine, Industrial Development
Authority RB, American Airlines
Project, Series B1, LOC (A)
7.350%, 06/01/00 $1,400 $ 1,400
Lone Star, Airport Improvement
Authority RB, Series A1,
LOC (A)
4.650%, 06/01/00 1,000 1,000
--------
2,400
--------
WYOMING -- 0.9%
Lincoln County, Pollution Control
Authority RB, Exxon Project,
Series C (A)
4.300%, 06/01/00 2,000 2,000
--------
TOTAL MUNICIPAL BONDS
(Cost $227,764) 219,258
--------
CASH EQUIVALENT -- 3.3%
Federated Tax-Free Money
Market Fund (A)
4.080% 7,661,729 7,662
--------
TOTAL CASH EQUIVALENT
(Cost $7,662) 7,662
--------
TOTAL INVESTMENTS -- 98.2%
(Cost $235,426) 226,920
--------
OTHER ASSETS AND LIABILITIES,
NET -- 1.8% 4,220
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 23,632,520
outstanding shares of beneficial interest 240,861
Accumulated net realized loss
on investments (1,215)
Net unrealized depreciation on investments (8,506)
--------
TOTAL NET ASSETS -- 100.0% $231,140
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.78
========
63
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND (CONCLUDED)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000.
(B) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
AMT--ALTERNATIVE MINIMUM TAX
COP--CERTIFICATE OF PARTICIPATION
GAN--GRANT ANTICIPATION NOTE
GO--GENERAL OBLIGATION
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.
ACA--AMERICAN CAPITAL ACCESS
AMBAC--AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
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.
64
<PAGE>
BOSTON 1784 FUNDS
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS -- 94.3%
RHODE ISLAND -- 84.1%
Bristol County, Water Authority
RB, Series A, MBIA GOA
5.200%, 12/01/13 $1,080 $1,025
5.200%, 12/01/14 1,000 949
Central Falls Detention Facility
RB, Donald W. Wyatt Detention
Project, Series A
5.250%, 01/15/13 1,505 1,403
5.375%, 01/15/18 1,000 902
Cranston GO, MBIA
6.100%, 06/15/10 1,000 1,046
6.100%, 06/15/15 1,500 1,541
Cumberland GO, MBIA
5.100%, 09/01/14 500 466
Exeter, West Greenwich Regional
School District GO, MBIA
5.400%, 11/15/10 1,000 1,002
Kent County, Water Authority
RB, Series A, MBIA
6.000%, 07/15/08 500 514
North Providence GO,
Series A, MBIA GOA
6.000%, 07/01/12 1,100 1,148
North Providence GO,
Series A, MBIA
6.050%, 07/01/13 500 520
Providence GO, FSA
5.100%, 01/15/06 1,085 1,081
Providence GO, Series A, FSA
5.700%, 07/15/12 1,825 1,855
Providence, Housing Development
Authority RB, Barbara Jordan
Apartments Project,
Series A, MBIA
6.500%, 07/01/09 370 380
Providence, Public Building
Authority RB, School & Public
Facilities Project, Series A, AMBAC
5.375%, 12/15/11 1,035 1,012
5.125%, 12/15/14 500 471
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Providence, Public Building
Authority RB, Schools & Public
Facilities Project, Series A, FSA
5.250%, 12/15/14 $1,500 $1,417
Providence, Public Building
Authority RB, Series A, FSA
5.400%, 12/15/11 500 490
Rhode Island Clean Protection
Fund RB, Series A, MBIA
5.875%, 10/01/15 435 440
Rhode Island, Clean Water Finance
Agency RB, Safe Drinking Water
Project, Series A, AMBAC
6.500%, 01/01/09 500 527
Rhode Island Depositor's Economic
Protection Agency RB,
Series A, FSA ETM
6.500%, 08/01/07 500 536
5.750%, 08/01/14 1,000 1,010
Rhode Island Depositor's
Economic Protection Agency
RB, Series B, MBIA ETM
5.800%, 08/01/12 1,000 1,034
Rhode Island Depositor's
Economic Protection Agency
RB, Series A, FSA MBIA ETM
6.400%, 08/01/06 4,600 4,882
Rhode Island Housing &
Mortgage Finance Authority
RB, Homeownership
Opportunity,
Series 33-B, AMT
5.750%, 04/01/22 1,000 991
Rhode Island Housing &
Mortgage Finance Authority
RB, Multi-Family Housing,
Series A, AMBAC
5.550%, 07/01/05 1,000 1,005
Rhode Island State Convention
Center Authority RB,
Series A, AMBAC
5.500%, 05/15/13 1,000 985
65
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND (CONTINUED)
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
RHODE ISLAND -- (CONTINUED)
Rhode Island State Economic
Development RB,
Series A, AMT, FGIC
6.000%, 07/01/07 $1,120 $1,148
Rhode Island State Economic
Development RB, Series B, FSA
5.000%, 07/01/15 1,620 1,474
Rhode Island State GO,
Consolidated Capital
Development Loan,
Series A, FGIC
5.125%, 07/15/12 1,735 1,642
5.000%, 09/01/14 2,680 2,459
5.500%, 09/01/15 500 486
5.000%, 09/01/16 2,425 2,182
Rhode Island State GO,
Consolidated Capital
Develpoment Loan,
Series A
5.250%, 09/01/08 2,580 2,567
Rhode Island State GO,
Consolidated Capital
Develpoment Loan,
Series A, FGIC
5.000%, 07/15/07 1,500 1,477
5.250%, 07/15/10 1,000 984
5.200%, 09/01/11 1,250 1,217
5.000%, 09/01/12 1,665 1,551
Rhode Island State GO,
Series A, FGIC
6.250%, 06/15/07 1,590 1,652
Rhode Island State Health &
Educational Building RB,
Higher Education Facilities,
Brown University Project
4.750%, 09/01/14 1,215 1,078
5.000%, 09/01/15 1,000 909
5.000%, 09/01/17 1,000 890
Rhode Island State Health &
Educational Building RB,
Higher Education Facility,
CONLEE
6.500%, 11/15/08 180 187
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
Rhode Island State Health &
Educational Building RB,
Higher Education Facility,
New England Institutional
Project, CONLEE
5.900%, 03/01/10 $ 400 $ 400
Rhode Island State Health &
Educational Building RB,
Higher Education Facility,
Roger Williams Hospital
Project, CONLEE
5.250%, 11/15/16 1,000 926
Rhode Island State Health &
Educational Building RB,
Higher Education Facility,
Roger Williams Project, AMBAC
5.125%, 11/15/14 2,000 1,838
5.000%, 11/15/18 1,000 868
Rhode Island State Health &
Educational Building RB,
Hospital Financing, Landmark
Medical Project, FSA
5.600%, 10/01/12 2,000 1,965
Rhode Island State Health &
Educational Building RB,
Kent Hospital Project, MBIA
7.000%, 07/01/10 500 517
Rhode Island State Housing &
Mortgage Finance Authority RB,
Homeownership Opportunity,
Series 13
6.700%, 10/01/15 2,000 2,055
Rhode Island State Housing &
Mortgage Finance Authority RB,
Homeownership Opportunity,
Series 19-A
5.700%, 04/01/15 1,500 1,463
Rhode Island State Housing &
Mortgage Finance Authority RB,
Homeownership Opportunity,
Series 22-A
5.550%, 04/01/17 500 472
66
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
RHODE ISLAND -- (CONTINUED)
Rhode Island State Housing &
Mortgage Finance Authority RB,
Homeownership Opportunity,
Series 27-B, AMT
5.150%, 10/01/12 $2,240 $ 2,064
Rhode Island State Housing &
Mortgage Finance Authority RB,
Homeownership Opportunity,
Series 30-A
4.900%, 10/01/14 2,000 1,813
Rhode Island State Housing &
Mortgage Finance Authority RB,
Homeownership Opportunity,
Series E-1, AMT, FHA
7.500%, 10/01/11 865 891
Rhode Island State Housing &
Mortgage Finance Authority RB,
Rental Housing Program, Series A
5.650%, 10/01/07 1,000 994
Rhode Island State Industrial
Facilities Authority RB,
AMT LOC
6.500%, 03/01/14 500 504
Rhode Island State Industrial
Facilities Authority RB,
Mobil Oil Refining Project
6.000%, 11/01/14 2,250 2,348
Rhode Island State Port Authority
& Economic Development RB,
Shepard Building Project,
Series B, AMBAC (B)
6.750%, 06/01/04 1,000 1,074
Rhode Island State Public Projects
RB, Series A, AMBAC
5.250%, 02/01/10 1,000 978
Rhode Island State Turnpike &
Bridge Authority RB
5.000%, 12/01/11 1,000 919
Warwick GO, Series A, FGIC
5.000%, 03/01/15 1,180 1,075
5.000%, 03/01/16 1,205 1,091
-------
74,790
-------
--------------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
--------------------------------------------------------------------------------
PUERTO RICO -- 6.4%
Puerto Rico Commonwealth GO,
Public Improvement (C)
5.230%, 07/01/14 $3,500 $ 1,536
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control Facilities
RB, International American
University, Series A, MBIA
5.250%, 10/01/12 360 350
5.375%, 10/01/13 1,550 1,517
5.500%, 10/01/14 350 344
Puerto Rico Public Buildings
Authority RB, Series M
5.750%, 07/01/15 2,000 1,992
-------
5,739
-------
WYOMING -- 3.8%
Lincoln County, Pollution Control
Authority RB, Exxon Project,
Series B (A)
4.300%, 06/01/00 2,000 2,000
Uinta County, Pollution Control
Authority RB, Chevron USA
Project (A)
4.300%, 06/01/00 1,400 1,400
-------
3,400
-------
TOTAL MUNICIPAL BONDS
(Cost $87,162) 83,929
-------
CASH EQUIVALENT -- 4.2%
Federated Tax-Free Money
Market Fund (A)
4.080% 3,759,382 3,759
-------
TOTAL CASH EQUIVALENT
(Cost $3,759) 3,759
-------
TOTAL INVESTMENTS -- 98.5%
(Cost $90,921) 87,688
-------
OTHER ASSETS AND LIABILITIES,
NET -- 1.5% 1,290
-------
67
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND (CONCLUDED)
--------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 9,056,520
outstanding shares of beneficial interest $93,505
Distributions in excess of net
investment income (1)
Accumulated net realized loss
on investments (1,293)
Net unrealized depreciation on investments (3,233)
-------
TOTAL NET ASSETS -- 100.0% $88,978
=======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.82
=======
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000.
(B) PRE-REFUNDED SECURITY. THE PRE-REFUNDED DATE IS SHOWN AS THE MATURITY DATE
ON THE STATEMENT OF NET ASSETS.
(C) ZERO COUPON SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE EFFECTIVE YIELD AS OF MAY 31, 2000.
AMT--ALTERNATIVE MINIMUM TAX
ETM--ESCROWED TO MATURITY
GO--GENERAL OBLIGATION
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 CORPORATION
CONLEE--COLLEGE CONSTRUCTION LOAN INSURANCE
FGIC--FINANCIAL GUARANTY INSURANCE CORPORATION
FHA--FEDERAL HOUSING ADMINISTRATION
FSA--FINANCIAL SECURITY ASSURANCE
GOA--GENERAL OBLIGATION OF AUTHORITY
MBIA--MUNICIPAL BOND INSURANCE ASSOCIATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
68
<PAGE>
BOSTON 1784 FUNDS
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 ASSET ALLOCATION FUND
--------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS -- 56.8%
BANKS -- 2.3%
Bank of America 1,400 $ 78
Wells Fargo 24,300 1,100
-------
1,178
-------
BEAUTY PRODUCTS -- 1.6%
Colgate-Palmolive 4,400 232
Estee Lauder 2,900 130
Procter & Gamble 6,800 452
-------
814
-------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 5.3%
Adelphia Communications,
Class A* 3,700 157
AT&T-Liberty Media Group,
Class A* 12,800 567
Clear Channel Communications* 3,200 240
Comcast, Class A* 9,600 364
MediaOne Group* 3,900 261
Omnicom Group 2,400 201
Rogers Commuications* 5,000 135
SBS Broadcasting SA* 5,450 204
Telewest Comm PLC ADR* 2,600 105
UnitedGlobalCom* 2,900 139
Univision Communications,
Class A* 3,050 314
USA Networks* 4,300 81
-------
2,768
-------
CAPITAL GOODS/CONSTRUCTION-- 0.3%
Southdown 2,850 175
-------
COMPUTER SERVICES -- 0.6%
Electronic Data Systems 4,900 315
-------
DATA PROCESSING -- 0.2%
Automatic Data Processing 2,400 132
-------
DIVERSIFIED MANUFACTURING -- 0.6%
Tyco International Ltd. 7,000 329
-------
DRUGS -- 4.5%
Alza, Class A* 2,900 147
American Home Products 1,300 70
Cardinal Health 2,800 182
Elan PLC ADR* 12,100 482
--------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
Merck 12,400 $ 925
Pfizer 4,400 196
Warner-Lambert 2,500 305
-------
2,307
-------
ELECTRICAL SERVICES -- 2.9%
AES* 3,000 262
General Electric 23,400 1,231
-------
1,493
-------
ELECTRONICS -- 2.0%
Flextronics International Ltd.* 8,855 482
Koninklijke Philips Electronics NV 4,500 199
Kyocera ADR 850 139
Molex 4,400 215
-------
1,035
-------
ENTERTAINMENT -- 0.6%
Time-Warner 3,000 237
Walt Disney 1,900 80
-------
317
-------
FINANCIAL SERVICES -- 1.6%
American Express 3,600 194
Citigroup 10,600 659
-------
853
-------
FOOD, BEVERAGE & TOBACCO -- 0.9%
Coca-Cola 3,650 195
Nestle SA ADR 3,000 285
-------
480
-------
GAS/NATURAL GAS -- 0.8%
El Paso Energy 5,000 257
Williams 3,400 141
-------
398
-------
INSURANCE -- 4.3%
Aflac 3,400 176
Allied Zurich PLC ADR* 3,900 88
American International Group* 14,000 1,576
AXA Financial 9,800 382
-------
2,222
-------
69
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 ASSET ALLOCATION FUND (CONTINUED)
--------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES -- 4.6%
Amgen* 4,500 $ 286
Boston Scientific* 10,500 269
Genzyme-General Division* 3,301 188
Johnson & Johnson 8,700 779
Medtronic 7,000 361
Minimed* 800 96
PE-PE Biosystems Group 2,700 150
Waters* 2,800 265
-------
2,394
-------
MISCELLANEOUS BUSINESS SERVICES -- 0.2%
Cendant* 6,000 79
-------
PETROLEUM REFINING -- 4.2%
Apache 3,400 207
Baker Hughes 12,000 435
Exxon Mobil 10,600 883
Schlumberger Ltd. 8,600 633
-------
2,158
-------
PRINTING & PUBLISHING -- 0.2%
New York Times, Class A 2,800 107
-------
RETAIL -- 2.0%
Circuit City Stores-Circuit City
Group* 2,800 139
CVS 4,100 178
Home Depot 3,900 190
Wal-Mart Stores 9,000 519
-------
1,026
-------
SEMI-CONDUCTORS/INSTRUMENTS -- 5.0%
Amkor Technology* 3,700 166
Analog Devices* 10,700 824
Broadcom, Class A* 850 111
E-Tek Dynamics* 700 129
Intel 4,100 511
JDS Uniphase* 750 66
STMicroelectronics ADR 3,300 198
Texas Instruments 4,800 347
Vitesse Semiconductor* 4,550 230
-------
2,582
-------
--------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
SOFTWARE -- 0.8%
CMGI* 1,500 $ 72
Microsoft* 4,100 257
Siebel Systems* 650 76
-------
405
-------
TECHNOLOGY -- 1.9%
Cisco Systems* 17,000 968
-------
TELEPHONES & TELECOMMUNICATIONS -- 8.0%
ADC Telecommunications* 7,500 504
Alltel 4,000 262
Hughes Electronics* 3,300 325
Lucent Technologies 14,300 820
McLeod USA, Class A* 6,500 130
Nextlink Communications* 1,900 133
Nippon Telegraph &
Telephone ADR 3,200 192
Nokia OYJ ADR 3,200 166
NTL* 6,300 372
Royal KPN NV ADR 1,850 169
SBC Communications 6,200 271
US West 2,750 198
Vodafone Airtouch PLC* 64,861 292
Western Wireless, Class A* 3,200 153
Worldcom* 3,600 135
-------
4,122
-------
WHOLESALE -- 1.4%
Costco Wholesale* 4,000 128
Sysco 14,700 616
-------
744
-------
TOTAL COMMON STOCKS
(Cost $17,822) 29,401
-------
PREFERRED STOCK -- 0.4%
Hartford Capital II 8,000 189
-------
TOTAL PREFERRED STOCK
(Cost $200) 189
-------
70
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 10.0%
U.S. Treasury Bonds
8.750%, 05/15/17 $ 990 $1,222
7.125%, 02/15/23 50 54
U.S. Treasury Notes
7.250%, 08/15/04 625 639
5.875%, 11/15/04 1,130 1,098
7.000%, 07/15/06 250 255
6.625%, 05/15/07 360 362
6.000%, 08/15/09 595 579
6.500%, 02/15/10 950 964
------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,181) 5,173
------
U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS -- 6.2%
Federal Home Loan Mortgage
Corporation
6.000%, 11/01/28 2,318 2,086
Federal National Mortgage
Association
6.500%, 03/01/11 253 240
6.000%, 06/01/13
6.500%, 05/01/28
8.000%, 12/01/29 651 645
Government National Mortgage
Association
6.000%, 04/15/13 190 178
7.500%, 06/15/23 83 81
------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(Cost $3,471) 3,230
------
CORPORATE OBLIGATIONS -- 6.9%
AUTOMOTIVE -- 0.9%
DaimlerChrysler NA
7.200%, 09/01/09 245 232
Ford Motor
7.250%, 10/01/08 250 238
------
470
------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
BANKS -- 1.6%
Citicorp MTN
6.375%, 11/15/08 $ 300 $ 271
First Union
7.500%, 07/15/06 315 307
First USA Bank
7.650%, 08/01/03 265 263
------
841
------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 0.4%
AT&T
9.800%, 02/01/12 200 219
------
FINANCIAL SERVICES -- 1.1%
Ford Motor Credit
6.750%, 05/15/05 100 95
General Motors Acceptance
6.625%, 10/01/02 200 196
US West Capital Funding
6.875%, 08/15/01 275 273
------
564
------
FOOD, BEVERAGE & TOBACCO -- 0.3%
Pepsi Bottling Holdings
5.625%, 02/17/09 160 137
------
PETROLEUM REFINING -- 0.6%
BP Amoco PLC
5.900%, 04/15/09 350 312
------
RAILROADS -- 0.5%
Burlington Northern Sante Fe
9.250%, 10/01/06 250 267
------
RETAIL -- 0.5%
Wal-Mart Eurobond
6.750%, 05/24/02 260 258
------
TELEPHONES & TELECOMMUNICATIONS -- 1.0%
Lucent Technologies
5.500%, 11/15/08 415 363
MCI Worldcom (A)
6.125%, 04/15/02 140 136
------
499
------
TOTAL CORPORATE OBLIGATIONS
(Cost $3,845) 3,567
------
71
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 ASSET ALLOCATION FUND (CONCLUDED)
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 4.2%
Carco Auto Loan Master Trust,
Series 1999-4, Class A
6.430%, 11/15/04 $ 500 $ 487
Chemical Master Credit Card Trust,
Series 1995-3, Class A
6.230%, 04/15/05 500 488
Citibank Credit Card Master Trust,
Series 1999-7, Class A
6.650%, 11/15/06 250 241
Ford Credit Auto Owner Trust,
Series 1999-D, Class A5
6.520%, 09/15/03 250 246
General Motors Acceptance
Commercial Mortgage Security,
Series 1999-C3, Class A1A
6.974%, 05/15/08 212 205
Sears Credit Account Master Trust,
Series 1996-4, Class A
6.450%, 10/16/06 500 492
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,198) 2,159
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 3.1%
Federal Home Loan Bank
5.800%, 09/02/08 250 224
Federal Home Loan Mortgage
Corporation
5.750%, 03/15/09 500 443
Federal National Mortgage
Association
5.750%, 04/15/03 235 225
Federal National Mortgage
Association, MTN
7.240%, 01/04/07 500 479
Private Export Funding Corporation
8.400%, 07/31/01 25 25
Tennessee Valley Authority
Principal STRIPS (B)
7.813%, 04/15/42 500 185
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,710) 1,581
-------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
YANKEE BONDS -- 3.6%
AT&T
6.500%, 03/15/29 $ 250 $ 203
Barclay's Bank PLC
7.400%, 12/15/09 125 118
Cable & Wireless Communication
6.375%, 03/06/03 200 200
Goldman Sachs Group MTN
7.800%, 01/28/10 285 276
Hydro-Quebec
8.625%, 05/20/02 220 223
Phillips Petroleum
8.500%, 05/25/05 100 101
Province of Ontario
7.375%, 01/27/03 220 219
Sprint Capital
6.900%, 05/01/19 375 324
State of Israel
7.750%, 03/15/10 200 192
-------
TOTAL YANKEE BONDS
(Cost $1,939) 1,856
-------
REPURCHASE AGREEMENT -- 8.8%
JP Morgan
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$4,559,804 (collateralized by
U.S. Treasury Instruments,
total market value:
$4,650,180) (C) 4,559 4,559
-------
TOTAL REPURCHASE AGREEMENT
(Cost $4,559) 4,559
-------
TOTAL INVESTMENTS -- 100.0%
(Cost $40,925) 51,715
-------
OTHER ASSETS AND LIABILITIES,
NET -- 0.0% 11
-------
72
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 3,257,170
outstanding shares of beneficial interest $39,651
Undistributed net investment income 197
Accumulated net realized gain
on investments 1,088
Net unrealized appreciation on investments 10,790
-------
TOTAL NET ASSETS -- 100.0% $51,726
=======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $15.88
=======
* NON-INCOME PRODUCING SECURITY
(A) VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT AS OF MAY 31, 2000.
(B) ZERO COUPON SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE EFFECTIVE RATE OF MAY 31, 2000.
(C) TRI-PARTY REPURCHASE AGREEMENT
ADR--AMERICAN DEPOSITORY RECEIPT
LTD.--LIMITED
MTN--MEDIUM TERM NOTE
NA--NORTH AMERICA
PLC--PUBLIC LIMITED COMPANY
STRIPS--SEPARATELY TRADED REGISTERED INTEREST AND PRINCIPAL SECURITIES
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
73
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 GROWTH AND INCOME FUND
--------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS -- 98.4%
BANKS -- 5.0%
Fifth Third Bancorp 200,000 $ 13,600
Firstar 500,000 12,781
---------
26,381
---------
CHEMICALS -- 2.1%
Cabot* 420,000 10,946
---------
COMMUNICATIONS EQUIPMENT -- 2.8%
Nortel Networks* 100,000 5,431
Qualcomm* 140,000 9,292
---------
14,723
---------
DIVERSIFIED MANUFACTURING -- 4.5%
Cintas* 375,000 16,500
Danaher* 150,000 7,228
---------
23,728
---------
DRUGS -- 5.2%
Warner-Lambert 225,000 27,478
---------
ELECTRICAL SERVICES -- 2.4%
General Electric 240,000 12,630
---------
ENTERTAINMENT -- 1.5%
Time-Warner 100,000 7,894
---------
FINANCIAL SERVICES -- 1.6%
Concord EFS* 350,000 8,487
---------
FOOD, BEVERAGE & TOBACCO -- 1.6%
Coca-Cola 160,000 8,540
---------
GAS/NATURAL GAS -- 7.8%
Enron 400,000 29,150
Williams 300,000 12,469
---------
41,619
---------
INSURANCE -- 3.3%
American International Group* 156,250 17,588
---------
MEDICAL PRODUCTS & SERVICES -- 7.2%
Guidant* 250,000 12,656
Medtronic 500,000 25,812
---------
38,468
---------
--------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
PETROLEUM REFINING -- 5.4%
Exxon Mobil 150,000 $ 12,497
Murphy Oil 100,000 6,488
Schlumberger Ltd. 50,000 3,678
Transocean Sedco Forex* 125,000 6,148
---------
28,811
---------
RESTAURANTS -- 6.0%
J.D. Wetherspoon PLC (UK)* 3,525,000 19,278
Outback Steakhouse* 105,000 3,183
PizzaExpress PLC (UK)* 935,000 9,631
---------
32,092
---------
RETAIL -- 12.3%
Bed Bath & Beyond* 600,000 22,088
Circuit City Stores-Circuit
City Group* 150,000 7,472
Dollar Tree Stores* 150,000 8,925
Home Depot 550,000 26,847
---------
65,332
---------
SEMI-CONDUCTORS/INSTRUMENTS-- 18.7%
Finisar* 495,000 11,045
Intel 380,000 47,381
JDS Uniphase* 160,000 14,080
Qlogic* 100,000 4,913
Texas Instruments 300,000 21,675
---------
99,094
---------
SOFTWARE -- 3.5%
Microsoft* 300,000 18,769
---------
TECHNOLOGY -- 7.5%
Cisco Systems* 700,000 39,856
---------
TOTAL COMMON STOCKS
(Cost $232,762) 522,436
---------
74
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.8%
JP Morgan
Repurchase Agreement
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$9,293,639 (collateralized by
U.S. Treasury Instruments,
total market value:
$9,477,840) (A) $9,292 $ 9,292
--------
TOTAL REPURCHASE AGREEMENT
(Cost $9,292) 9,292
--------
TOTAL INVESTMENTS -- 100.2%
(Cost $242,054) 531,728
--------
OTHER ASSETS AND LIABILITIES, NET -- (0.2%) (901)
--------
--------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 21,224,397
outstanding shares of beneficial interest $190,727
Distributions in excess of net
investment income (10)
Accumulated net realized gain
on investments 50,439
Net unrealized appreciation
on investments 289,674
Net unrealized depreciation on forward
foreign currency contracts, foreign
currency and translation of other assets
and liabilities in foreign currency (3)
--------
TOTAL NET ASSETS -- 100.0% $530,827
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $25.01
========
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
LTD.--LIMITED
PLC--PUBLIC LIMITED COMPANY
UK--UNITED KINGDOM EQUITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
75
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF NET ASSETS
================================================================================
BOSTON 1784 GROWTH FUND
--------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS -- 96.3%
APPAREL -- 0.7%
Steven Madden* 76,200 $ 1,229
---------
BANKS -- 4.2%
Fifth Third Bancorp 57,200 3,890
Firstar 152,500 3,898
---------
7,788
---------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 1.5%
Univision Communications,
Class A* 27,400 2,822
---------
CHEMICALS -- 2.4%
Cabot* 167,700 4,371
---------
COMMUNICATIONS EQUIPMENT -- 0.1%
Seachange International* 8,400 215
---------
COMPUTERS & SERVICES -- 7.0%
Crossroads Systems* 90,000 3,589
Gadzoox Networks* 100,000 2,662
Sandisk* 26,700 1,552
VeriSign* 38,100 5,158
---------
12,961
---------
DIVERSIFIED MANUFACTURING-- 6.1%
Cintas* 133,400 5,870
Danaher* 114,400 5,513
---------
11,383
---------
ELECTRONICS -- 0.8%
Audiovox, Class A* 76,200 1,443
---------
FINANCIAL SERVICES -- 2.5%
Concord EFS* 190,600 4,622
---------
HEALTH CARE -- 1.9%
First Health Group, Class A* 76,200 2,667
Hooper Holmes 78,090 800
---------
3,467
---------
INTERNET SOFTWARE -- 1.5%
Digex* 45,700 1,931
Neoforma.com* 7,600 49
Selectica* 800 36
Telescan* 95,300 679
---------
2,695
---------
--------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES -- 8.0%
ATS Medical* 76,200 $ 760
Endocare* 41,250 712
Guidant* 76,200 3,858
Medtronic 62,978 3,251
Millennium Pharmaceutical* 50,000 4,181
Thoratec Labs* 97,700 1,191
World Heart* 76,200 895
---------
14,848
---------
PETROLEUM & FUEL PRODUCTS -- 8.5%
Core Laboratories N.V.* 95,300 2,478
Hanover Compressor* 49,600 2,911
Prima Energy* 4,050 168
St. Mary Land & Exploration 87,700 3,157
Stone Energy* 114,400 7,043
---------
15,757
---------
PRINTING & PUBLISHING -- 0.8%
Presstek* 75,000 1,425
---------
RESTAURANTS -- 12.8%
Cheesecake Factory* 50,000 1,991
J.D. Wetherspoon PLC (UK)* 1,906,100 10,424
P.F Changs China Bistro* 167,700 5,387
Papa John's International* 140,000 3,509
PizzaExpress PLC (UK)* 236,400 2,435
---------
23,746
---------
RETAIL -- 10.1%
99 Cents Only Stores* 76,200 2,738
Bed Bath & Beyond* 190,600 7,016
Dollar Tree Stores* 152,500 9,074
---------
18,828
---------
SCHOOLS -- 2.0%
Devry* 133,400 3,727
---------
SEMI-CONDUCTORS/INSTRUMENTS -- 16.4%
Cree* 38,900 4,726
Cypress Semiconductor* 133,400 5,611
Finisar* 183,000 4,083
Qlogic* 175,400 8,616
Semtech* 132,450 7,384
---------
30,420
---------
76
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
--------------------------------------------------------------------------------
SOFTWARE -- 2.2%
Networks Specialists*+ 394,218 $ 3,000
WebTrends* 45,700 1,171
--------
4,171
--------
STEEL PRODUCTS -- 2.9%
Shaw Group* 122,000 5,322
--------
WHOLESALE -- 3.9%
Fastenal 114,400 7,221
--------
TOTAL COMMON STOCKS
(Cost $136,627) 178,461
--------
REPURCHASE AGREEMENT -- 3.4%
JP Morgan
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$6,331,117 (collateralized by
U.S. Treasury Instruments,
total market value:
$6,456,600) (A) $6,330 6,330
--------
TOTAL REPURCHASE AGREEMENT
(Cost $6,330) 6,330
--------
TOTAL INVESTMENTS -- 99.7%
(Cost $142,957) 184,791
--------
OTHER ASSETS AND LIABILITIES,
NET -- 0.3% 536
--------
--------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 14,567,823
outstanding shares of beneficial interest $142,250
Accumulated net realized gain
on investments 1,243
Net unrealized appreciation on investments 41,834
--------
TOTAL NET ASSETS -- 100.0% $185,327
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $12.72
========
* NON-INCOME PRODUCING SECURITY
+ PRIVATE PLACEMENT SECURITY -- THIS SECURITY IS NOT READILY
MARKETABLE.
(A) TRI-PARTY REPURCHASE AGREEMENT
PLC--PUBLIC LIMITED COMPANY
UK--UNITED KINGDOM EQUITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
77
<PAGE>
AS OF MAY 31, 2000
SCHEDULE OF INVESTMENTS
================================================================================
BOSTON 1784 INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
FOREIGN COMMON STOCKS -- 85.0%
CANADA -- 2.1%
Nortel Networks 150,400 $ 8,169
---------
CHINA -- 2.9%
China Telecom* 1,551,000 11,595
---------
FINLAND -- 1.9%
Nokia 145,832 7,627
---------
FRANCE -- 14.0%
Aventis 210,300 13,739
Carrefour 58,200 4,138
STMicroelectronics ADR 174,255 10,434
Television Francaise 5,500 3,557
Total Fina Elf 77,400 12,253
Vivendi 110,330 11,892
---------
56,013
---------
GERMANY -- 9.0%
Allianz 26,200 9,504
Deutsche Bank 109,900 8,529
Epcos* 34,100 4,203
SAP 4,500 2,396
Siemens 37,330 5,556
Veba 115,000 5,928
---------
36,116
---------
HONG KONG -- 1.3%
Hutchison Whampoa 441,100 5,095
---------
ITALY -- 3.9%
Mediaset 562,410 8,751
Telecom Italia Mobile 645,000 6,753
---------
15,504
---------
JAPAN -- 17.8%
Aiful 14,350 1,261
Fuji Bank 912,000 7,050
Fujitsu 273,000 7,727
Japan Telecom 69 3,029
Matsushita Communications 37,000 3,983
Murata Manufacturing 23,000 3,970
--------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
Nikko Securities 540,000 $ 5,001
Nippon System Development 3,800 344
Nippon Telegraph & Telephone 400 4,751
Nomura Securities 129,000 2,957
NTT DoCoMo 350 9,029
Shohkoh Fund 9,370 2,017
Softbank 8,600 1,317
Softbank New* 17,200 2,578
Sony 45,800 4,144
Takeda Chemical Industries 111,000 7,571
Yahoo Japan* 14 4,599
---------
71,328
---------
MEXICO -- 0.9%
Telefonos de Mexico ADR,
Series L 71,110 3,462
---------
NETHERLANDS -- 12.6%
Ahold 166,522 4,719
Gucci Group ADR 57,210 4,899
ING Groep 35,800 2,151
KPN 177,200 16,077
Philips Electronics 159,404 7,151
Unilever 149,377 7,624
VNU 153,000 7,844
Wolters Kluwer 3,802 93
---------
50,558
---------
SINGAPORE -- 0.5%
DBS Group Holdings 194,525 1,943
---------
SOUTH KOREA -- 2.0%
H&CB 5,111 91
Korea Telecom ADR 73,600 2,723
Samsung Electronics GDR 144A 32,500 5,241
---------
8,055
---------
SPAIN -- 1.0%
Telefonica* 200,999 4,145
---------
SWEDEN -- 3.5%
Ericsson, Series B 597,600 12,204
Skandinaviska Enskilda Banken 156,426 1,715
---------
13,919
---------
78
<PAGE>
BOSTON 1784 FUNDS
================================================================================
--------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
--------------------------------------------------------------------------------
TAIWAN -- 1.2%
Taiwan Semiconductor ADR 140,812 $ 4,972
--------
UNITED KINGDOM -- 10.4%
Cable & Wireless 378,370 6,330
CMG 316,800 4,435
Glaxo Wellcome 262,542 7,445
Lloyds TSB Group 1,558 17
Shell Transportation
& Trading 1,001,200 8,311
Vodafone AirTouch 3,274,890 14,986
--------
41,524
--------
TOTAL FOREIGN COMMON STOCKS
(Cost $280,823) 340,025
--------
--------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 11.5%
JP Morgan
6.35%, dated 05/31/00, matures
06/01/00, repurchase price
$46,048,121 (collateralized by
U.S. Treasury Instruments,
total market value:
$46,960,800) (A) $46,040 $ 46,040
--------
TOTAL REPURCHASE AGREEMENT
(Cost $46,040) 46,040
--------
TOTAL INVESTMENTS -- 96.5%
(Cost $326,863) $386,065
--------
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENTS
ADR-- AMERICAN DEPOSITARY RECEIPT
GDR--GLOBAL DEPOSITARY RECEIPT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
79
<PAGE>
AS OF MAY 31, 2000
STATEMENT OF ASSETS AND LIABILITIES (000)
================================================================================
BOSTON 1784 INTERNATIONAL
EQUITY FUND
---------------------------
ASSETS:
INVESTMENTS AT VALUE (COST $326,863) $386,065
FOREIGN CURRENCY (COST $1,317) 1,325
INCOME AND RECLAIM RECEIVABLE 1,083
INVESTMENT SECURITIES SOLD 11,695
CAPITAL SHARES SOLD 13,594
--------
TOTAL ASSETS 413,762
--------
LIABILITIES:
UNREALIZED DEPRECIATION ON FOREIGN CURRENCY CONTRACTS 148
INVESTMENT SECURITIES PURCHASED 1,454
CAPITAL SHARES REDEEMED 9,847
ACCRUED EXPENSES PAYABLE 479
PAYABLE TO CUSTODIAN 1,755
OTHER LIABILITIES 16
--------
TOTAL LIABILITIES 13,699
--------
TOTAL NET ASSETS $400,063
========
NET ASSETS:
CAPITAL SHARES (UNLIMITED AUTHORIZATION --
NO PAR VALUE) BASED ON 33,250,386
OUTSTANDING SHARES OF BENEFICIAL INTEREST 328,412
UNDISTRIBUTED NET INVESTMENT INCOME 294
ACCUMULATED NET REALIZED GAIN ON INVESTMENTS 12,272
NET UNREALIZED APPRECIATION ON INVESTMENTS 59,202
NET UNREALIZED DEPRECIATION ON FORWARD FOREIGN
CURRENCY CONTRACTS, FOREIGN CURRENCY AND TRANSLATION
OF OTHER ASSETS AND LIABILITIES IN FOREIGN CURRENCY (117)
--------
TOTAL NET ASSETS $400,063
========
NET ASSET VALUE, OFFERING, AND REDEMPTION PRICE PER SHARE $ 12.03
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
80
<PAGE>
BOSTON 1784 FUNDS
================================================================================
THIS PAGE INTENTIONALLY LEFT BLANK
81
<PAGE>
STATEMENTS OF OPERATIONS (000)
================================================================================
FOR THE YEAR ENDED MAY 31, 2000
<TABLE>
<CAPTION>
BOSTON BOSTON
BOSTON 1784 BOSTON 1784
BOSTON 1784 INSTITUTIONAL 1784 INSTITUTIONAL
1784 U.S. TREASURY U.S. TREASURY PRIME PRIME
TAX-FREE MONEY MONEY MONEY MONEY
MONEY MARKET MARKET MARKET MARKET MARKET
FUND FUND FUND FUND FUND
===========================================================================================================================
INCOME:
<S> <C> <C> <C> <C> <C>
INTEREST INCOME $37,367 $20,298 $265,039 $9,581 $47,008
DIVIDEND INCOME -- -- -- -- --
LESS: FOREIGN TAXES WITHHELD -- -- -- -- --
------- ------- -------- ------ -------
TOTAL INCOME 37,367 20,298 265,039 9,581 47,008
------- ------- -------- ------ -------
EXPENSES:
INVESTMENT ADVISORY FEES 3,997 1,505 9,736 682 1,666
LESS: WAIVER OF INVESTMENT
ADVISORY FEES -- (153) -- (136) (24)
ADMINISTRATOR FEES 646 244 3,148 110 538
SHAREHOLDER SERVICING FEES -- 376 -- 170 --
12B-1 FEES -- -- -- -- --
LESS: WAIVER OF 12B-1 FEES -- -- -- -- --
TRANSFER AGENT FEES & EXPENSES 161 360 541 222 130
REGISTRATION FEES 15 6 157 5 32
TRUSTEE FEES 25 9 118 4 21
PRINTING 47 17 210 7 46
PROFESSIONAL FEES 72 27 306 11 53
CUSTODIAN FEES 38 40 225 18 45
OTHER EXPENSES 25 15 309 15 (7)
------- ------- -------- ------ -------
TOTAL EXPENSES, NET
OF WAIVERS 5,026 2,446 14,750 1,108 2,500
------- ------- -------- ------ -------
NET INVESTMENT INCOME (LOSS) 32,341 17,852 250,289 8,473 44,508
------- ------- -------- ------ -------
NET REALIZED GAIN (LOSS)
ON INVESTMENTS -- -- -- -- 1
NET REALIZED GAIN (LOSS) FROM
FORWARD FOREIGN
CURRENCY CONTRACTS AND
FOREIGN CURRENCY
TRANSACTIONS -- -- -- -- --
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION)
ON INVESTMENTS -- -- -- -- --
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 -- -- -- -- 1
------- ------- -------- ------ -------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS $32,341 $17,852 $250,289 $8,473 $44,509
======= ======= ======== ====== =======
BOSTON
1784
BOSTON U.S. GOVERNMENT
1784 BOSTON MEDIUM-
SHORT-TERM 1784 TERM
INCOME INCOME INCOME
FUND FUND FUND
===============================================================================================
INCOME:
<S> <C> <C> <C>
INTEREST INCOME $8,893 $21,991 $16,660
DIVIDEND INCOME -- -- --
LESS: FOREIGN TAXES WITHHELD -- -- --
------ ------- -------
TOTAL INCOME 8,893 21,991 16,660
------ ------- -------
EXPENSES:
INVESTMENT ADVISORY FEES 728 2,458 1,962
LESS: WAIVER OF INVESTMENT
ADVISORY FEES -- (179) (158)
ADMINISTRATOR FEES 94 215 171
SHAREHOLDER SERVICING FEES -- -- --
12B-1 FEES 364 830 663
LESS: WAIVER OF 12B-1 FEES (364) (830) (663)
TRANSFER AGENT FEES & EXPENSES 84 82 72
REGISTRATION FEES 3 6 5
TRUSTEE FEES 4 8 6
PRINTING 6 13 11
PROFESSIONAL FEES 11 22 17
CUSTODIAN FEES 11 20 16
OTHER EXPENSES (6) 12 19
------ ------- -------
TOTAL EXPENSES, NET
OF WAIVERS 935 2,657 2,121
------ ------- -------
NET INVESTMENT INCOME (LOSS) 7,958 19,334 14,539
------ ------- -------
NET REALIZED GAIN (LOSS)
ON INVESTMENTS (1,722) (12,807) (4,192)
NET REALIZED GAIN (LOSS) FROM
FORWARD FOREIGN
CURRENCY CONTRACTS AND
FOREIGN CURRENCY
TRANSACTIONS -- -- --
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION)
ON INVESTMENTS (1,324) (2,734) (5,692)
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 (3,046) (15,541) (9,884)
------- ------- -------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS $4,912 $ 3,793 $ 4,655
====== ======= =======
</TABLE>
82
<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> <C>
$ 17,557 $ 9,099 $ 3,452 $13,405 $ 5,076 $1,561 $ 782 $ 901 $ 1,997
-- -- -- -- -- 238 3,161 449 3,630
-- -- -- -- -- -- (23) -- (351)
-------- ------- ------- ------- ------- ------ -------- -------- --------
17,557 9,099 3,452 13,405 5,076 1,799 3,920 1,350 5,276
-------- ------- ------- ------- ------- ------ -------- -------- --------
2,453 1,266 488 1,866 701 399 4,040 1,827 4,618
(204) (124) (64) (174) (73) -- -- -- --
215 111 43 163 61 35 353 159 298
-- -- -- -- -- -- -- -- --
829 428 165 630 237 135 1,365 617 1,154
(829) (428) (165) (630) (237) (135) (1,365) (617) (1,154)
92 74 36 86 48 64 236 112 96
5 3 1 4 2 1 6 4 7
8 4 2 6 2 1 13 6 11
13 7 3 10 4 2 28 11 21
22 10 4 17 6 3 49 18 32
21 12 8 17 8 32 54 29 223
28 6 7 22 (1) 4 30 10 31
-------- ------- ------- ------- ------- ------ -------- -------- --------
2,653 1,369 528 2,017 758 541 4,809 2,176 5,337
-------- ------- ------- ------- ------- ------ -------- -------- --------
14,904 7,730 2,924 11,388 4,318 1,258 (889) (826) (61)
-------- ------- ------- ------- ------- ------ -------- -------- --------
(6,305) (1,938) (659) (1,141) (1,026) 2,032 61,422 151,640* 134,839
-- -- -- -- -- -- (6) 6 (519)
(15,145) (8,643) (3,569) (14,553) (5,092) 2,832 59,237 (13,706) 8,065
-- -- -- -- -- -- (2) (1) (54)
-------- ------- ------- ------- ------- ------ -------- -------- --------
(21,450) (10,581) (4,228) (15,694) (6,118) 4,864 120,651 137,939 142,331
-------- ------- ------- ------- ------- ------ -------- -------- --------
$ (6,546) $(2,851) $(1,304) $(4,306) $(1,800) $6,122 $119,762 $137,113 $142,270
======== ======= ======= ======= ======= ====== ======== ======== ========
* ON APRIL 10, 2000 THE FUND HAD A REDEMPTION IN KIND WITH TOTAL PROCEEDS IN THE AMOUNT OF $69,327,239. THE NET REALIZED GAINS OF
THE TRANSACTIONS O $32,145,987 WILL NOT BE REALIZED FOR TAX PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</TABLE>
83
<PAGE>
Statements of Changes in Net Assets (000)
<TABLE>
====================================================================================================================================
BOSTON
BOSTON BOSTON 1784 BOSTON
1784 1784 INSTITUTIONAL 1784
TAX-FREE U.S. TREASURY U.S. TREASURY PRIME
MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6/1/99 6/1/98 6/1/99 6/1/98 6/1/99 6/1/98 6/1/99 6/1/98
TO TO TO TO TO TO TO TO
5/31/00 5/31/99 5/31/00 5/31/99 5/31/00 5/31/99 5/31/00 5/31/99
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
NET INVESTMENT INCOME $ 32,341 $ 31,358 $17,852 $ 17,274 $ 250,289 $ 199,476 $ 8,473 $ 7,370
NET REALIZED GAIN (LOSS) ON INVESTMENTS -- 24 -- 6 -- 49 -- --
NET CHANGE IN UNREALIZED DEPRECIATION
ON INVESTMENTS -- -- -- -- -- -- -- --
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 32,341 31,382 17,852 17,280 250,289 199,525 8,473 7,370
---------- ---------- --------- -------- ---------- ----------- -------- ------
DISTRIBUTIONS TO
SHAREHOLDERS:
NET INVESTMENT INCOME (32,341) (31,358) (17,864) (17,274) (250,480) (199,476) (8,479) (7,370)
REALIZED CAPITAL GAINS -- -- -- -- -- -- -- --
---------- ---------- --------- -------- ---------- ----------- -------- --------
TOTAL DISTRIBUTIONS (32,341) (31,358) (17,864) (17,274) (250,480) (199,476) (8,479) (7,370)
---------- ---------- --------- -------- ---------- ----------- -------- --------
SHARE TRANSACTIONS:
PROCEEDS FROM SHARES ISSUED 1,677,658 1,562,128 715,406 911,957 20,275,870 14,696,641 445,947 309,603
REINVESTMENT OF CASH DISTRIBUTIONS 5,119 4,871 17,450 16,728 88,313 74,848 7,940 6,288
COST OF SHARES REDEEMED (1,781,050) (1,605,367) (794,024) (910,573) (19,687,723) (14,711,302)(435,984)(278,301)
---------- ---------- --------- -------- ---------- ----------- -------- --------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (98,273) (38,368) (61,168) 18,112 676,460 60,187 17,903 37,590
---------- ---------- --------- -------- ---------- ----------- -------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS (98,273) (38,344) (61,180) 18,118 676,269 60,236 17,897 37,590
NET ASSETS:
BEGINNING OF PERIOD 969,380 1,007,724 390,775 372,657 4,346,037 4,285,801 165,178 127,588
---------- ---------- --------- -------- ---------- ----------- -------- --------
NET ASSETS:
END OF PERIOD $871,107 $ 969,380 $329,595 $390,775 $5,022,306 $4,346,037 $183,075 $165,178
========== ========== ========= ======== ========== =========== ======== ========
CAPITAL SHARE TRANSACTIONS:
SHARES ISSUED 1,677,658 1,562,128 715,406 911,957 20,275,870 14,696,641 445,946 309,603
SHARES ISSUED IN LIEU OF CASH
DISTRIBUTIONS 5,119 4,871 17,450 16,728 88,313 74,848 7,940 6,288
SHARES REDEEMED (1,781,050) (1,605,367) (794,024) (910,573) (19,687,723) (14,711,302)(435,984)(278,301)
---------- ---------- --------- -------- ---------- ----------- -------- --------
NET INCREASE (DECREASE) IN CAPITAL SHARES (98,273) (38,368) (61,168) 18,112 676,460 60,187 17,902 37,590
========== ========== ========= ======== ========== =========== ======== ========
</TABLE>
84
<PAGE>
<TABLE>
<CAPTION>
BOSTON 1784 FUNDS
BOSTON BOSTON BOSTON
1784 BOSTON 1784 1784
INSTITUTIONAL 1784 BOSTON U.S. GOVERNMENT TAX-EXEMPT
PRIME SHORT-TERM 1784 MEDIUM-TERM MEDIUM-TERM
MONEY MARKET INCOME INCOME INCOME INCOME
FUND FUND FUND FUND FUND
=================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/1/99 6/1/98 6/1/99 6/1/98 6/1/99 6/1/98 6/1/99 6/1/98 6/1/99 6/1/98
TO TO TO TO TO TO TO TO TO TO
5/31/00 5/31/99 5/31/00 5/31/99 5/31/00 5/31/99 5/31/00 5/31/99 5/31/00 5/31/99
----------------------------------------------------------------------------------------------------------------
$ 44,508 $ 24,188 $ 7,958 $ 9,844 $ 19,334 $ 20,032 $ 14,539 $ 14,257 $ 14,904 $ 14,101
1 (3) (1,722) 605 (12,807) 4,091 (4,192) 434 (6,305) 6,046
-- -- (1,324) (1,760) (2,734) (12,468) (5,692) (4,968) (15,145) (7,281)
---------- ---------- -------- ------- --------- --------- -------- -------- -------- --------
44,509 24,185 4,912 8,689 3,793 11,655 4,655 9,723 (6,546) 12,866
---------- ---------- -------- ------- --------- --------- -------- -------- -------- --------
(44,503) (24,188) (7,979) (9,843) (20,155) (20,031) (14,001) (14,256) (14,919) (14,101)
-- -- -- -- (1,812) (2,223) -- -- (3,786) (5,447)
---------- ---------- -------- ------- --------- --------- -------- -------- -------- --------
(44,503) (24,188) (7,979) (9,843) (21,967) (22,254) (14,001) (14,256) (18,705) (19,548)
---------- ---------- -------- ------- --------- --------- -------- -------- -------- --------
8,100,869 4,471,716 23,616 42,172 102,704 69,930 36,434 71,574 106,799 88,484
34,100 18,834 5,389 6,066 3,605 5,831 1,127 1,267 4,610 5,924
(7,955,263) (4,275,984) (72,760) (68,308) (121,374) (114,522) (62,477) (44,246) (146,442) (34,309)
---------- ---------- -------- ------- --------- --------- -------- -------- -------- --------
179,706 214,566 (43,755) (20,070) (15,065) (38,761) (24,916) 28,595 (35,033) 60,099
---------- ---------- -------- ------- --------- --------- -------- -------- -------- --------
179,712 214,563 (46,822) (21,224) (33,239) (49,360) (34,262) 24,062 (60,284) 53,417
516,901 302,338 176,032 197,256 343,196 392,556 276,781 252,719 356,995 303,578
---------- ---------- -------- ------- --------- --------- -------- -------- -------- --------
$ 696,613 $ 516,901 $129,210 $176,032 $309,957 $343,196 $242,519 $276,781 $296,711 $356,995
========= ========== ======== ======== ======== ======== ======== ======== ======== ========
8,100,869 4,471,716 2,380 4,164 10,684 6,813 3,932 7,383 10,897 8,401
34,100 18,834 544 599 374 565 122 130 470 563
(7,955,263) (4,275,984) (7,328) (6,746) (12,658) (11,138) (6,767) (4,567) (15,006) (3,252)
---------- ---------- -------- ------- --------- --------- -------- -------- -------- --------
179,706 214,566 (4,404) (1,983) (1,600) (3,760) (2,713) 2,946 (3,639) 5,712
========== =========== ======== ======== ======== ========= ========= ========= ======== ========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
85
<PAGE>
Statements of Changes in Net Assets (000)
<TABLE>
BOSTON BOSTON BOSTON
1784 1784 1784
CONNECTICUT FLORIDA MASSACHUSETTS
TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
INCOME INCOME INCOME
FUND FUND FUND
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
6/1/99 6/1/98 6/1/99 6/1/98 6/1/99 6/1/98
TO TO TO TO TO TO
5/31/00 5/31/99 5/31/00 5/31/99 5/31/00 5/31/99
---------------------------------------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
NET INVESTMENT INCOME (LOSS) $ 7,730 $ 7,408 $ 2,924 $ 2,504 $ 11,388 $ 10,113
NET REALIZED GAIN (LOSS) ON INVESTMENTS (1,938) 1,143 (659) 331 (1,141) 1,109
NET REALIZED GAIN (LOSS) FROM FORWARD
FOREIGN CURRENCY CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS -- -- -- -- -- --
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON INVESTMENTS (8,643) (2,686) (3,569) (821) (14,553) (2,392)
NET CHANGE IN UNREALIZED DEPRECIATION
ON FOREIGN FORWARD CURRENCY CONTRACTS,
FOREIGN CURRENCIES AND TRANSLATION OF
OTHER ASSETS AND LIABILITIES IN
FOREIGN CURRENCY -- -- -- -- -- --
-------- ------- -------- ------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (2,851) 5,865 (1,304) 2,014 (4,306) 8,830
-------- ------- -------- ------- -------- --------
DISTRIBUTIONS TO
SHAREHOLDERS:
NET INVESTMENT INCOME (7,730) (7,408) (2,924) (2,504) (11,388) (10,113)
REALIZED CAPITAL GAINS (892) (1,010) -- (755) -- --
-------- ------- -------- ------- -------- --------
TOTAL DISTRIBUTIONS (8,622) (8,418) (2,924) (3,259) (11,388) (10,113)
-------- ------- -------- ------- -------- --------
SHARE TRANSACTIONS:
PROCEEDS FROM SHARES ISSUED 44,297 68,008 18,910 22,210 73,630 98,037
REINVESTMENT OF CASH DISTRIBUTIONS 2,383 2,159 36 767 3,001 3,049
COST OF SHARES REDEEMED (74,030) (21,996) (22,360) (4,729) (97,668) (38,069)
-------- ------- -------- ------- -------- --------
INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS (27,350) 48,171 (3,414) 18,248 (21,037) 63,017
-------- ------- -------- ------- -------- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS (38,823) 45,618 (7,642) 17,003 (36,731) 61,734
NETASSETS:
BEGINNING OF PERIOD 187,725 142,107 68,796 51,793 267,871 206,137
-------- ------- -------- ------- -------- --------
NETASSETS:
END OF PERIOD $148,902 $187,725 $ 61,154 $68,796 $231,140 $267,871
======== ======== ======== ======= ======== ========
CAPITALSHARE TRANSACTIONS:
SHARES ISSUED 4,351 6,267 1,946 2,151 7,367 9,328
SHARES ISSUED IN LIEU OF CASH DISTRIBUTIONS 233 198 4 74 301 291
SHARES REDEEMED (7,282) (2,025) (2,312) (458) (9,812) (3,627)
-------- ------- -------- ------- -------- --------
NET INCREASE (DECREASE) IN CAPITAL SHARES (2,698) 4,440 (362) 1,767 (2,144) 5,992
======== ======== ======== ======= ======== ========
</TABLE>
86
<PAGE>
<TABLE>
BOSTON 1784 FUNDS
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
================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
6/1/99 6/1/98 6/1/99 6/1/98 6/1/99 6/1/98 6/1/99 6/1/98 6/1/99 6/1/98
TO TO TO TO TO TO TO TO TO TO
5/31/00 5/31/99 5/31/00 5/31/99 5/31/00 5/31/99 5/31/00 5/31/99 5/31/00 5/31/99
-----------------------------------------------------------------------------------------------------------
$ 4,318 $ 3,915 $ 1,258 $ 1,326 $ (889) $ 672 $ (826) $ (772) $ (61)$ 240
(1,026) 721 2,032 1,850 61,422 52,160 151,640 4,766 134,839 35,279
-- -- -- -- (6) (25) 6 (2) (519) (1,927)
(5,092) (1,395) 2,832 (262) 59,237 (28,015) (13,706) (15,346) 8,065 (50,485)
-- -- -- -- (2) -- (1) -- (54) (2,062)
------- -------- ------- ------ --------- -------- --------- ------- -------- --------
(1,800) 3,241 6,122 2,914 119,762 24,792 137,113 (11,354) 142,270 (18,955)
------- -------- ------- ------ --------- -------- --------- ------- -------- --------
(4,319) (3,915) (1,354) (1,328) -- (884) -- -- -- (997)
(404) (663) (1,564) (2,229) (51,112) (12,700) (122,187) (6,328) (154,809) (2,548)
------- -------- ------- ------ --------- -------- --------- ------- -------- --------
(4,723) (4,578) (2,918) (3,557) (51,112) (13,584) (122,187) (6,328) (154,809) (3,545)
------- -------- ------- ------ --------- -------- --------- ------- -------- --------
26,875 38,895 10,082 13,741 96,528 228,857 212,676 181,224 989,968 403,221
1,003 1,283 2,703 3,400 48,645 12,381 68,726 4,590 89,585 1,744
(34,450) (13,565) (17,634)(13,410) (232,412) (257,027) (296,477)*(240,206) (1,056,704)(462,531)
------- -------- ------- ------ --------- -------- --------- ------- -------- --------
(6,572) 26,613 (4,849) 3,731 (87,239) (15,789) (15,075) (54,392) 22,849 (57,566)
------- -------- ------- ------ --------- -------- --------- ------- -------- --------
(13,095) 25,276 (1,645) 3,088 (18,589) (4,581) (149) (72,074) 10,310 (80,066)
102,073 76,797 53,371 50,283 549,416 553,997 185,476 257,550 389,753 469,819
------- -------- ------- ------ --------- -------- --------- ------- -------- -------
$ 88,978 $102,073 $51,726 $53,371 $ 530,827 $ 549,416 $ 185,327 $185,476 $ 400,063 $389,753
======== ======== ======= ======= ========= ========= ========= ======== ========== ========
2,683 3,644 648 913 4,089 10,493 14,007 16,196 65,600 31,211
100 120 173 231 2,181 574 4,642 417 6,931 137
(3,448) (1,272) (1,130) (894) (9,830) (11,791) (19,458) (21,152) (69,444 (35,496)
------- -------- ------- ------ --------- -------- --------- ------- -------- --------
(665) 2,492 (309) 250 (3,560) (724) (809) (4,539) 3,087 (4,148)
======== ======== ======= ======= ========= ========= ========= ======== ========== ========
*INCLUDES REDEMPTIONS OF $69,327,239 AS A RESULT OF THE REDEMPTION IN KIND ON APRIL 10, 2000.
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
87
<PAGE>
<TABLE>
Financial Highlights
BOSTON 1784 MONEY MARKET FUNDS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
----------------------------------------------------------------------------------------------------------------------------------
RATIO OF
RATIO RATIO NET INVESTMENT
NET DISTRI- NET NET RATIO OF NET OF EXPENSES INCOME
ASSET NET BUTIONS ASSET ASSETS OF EXPEN- INVESTMENT TO AVERAGE TO AVERAGE
VALUE INVEST- FROM NET VALUE END OF SES TO INCOME NET ASSETS NET ASSETS
BEGINNING MENT INVESTMENT END TOTAL PERIOD 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 YEAR ENDED
MAY 31, 2000 $1.00 0.03 (0.03) $1.00 3.30%$ 871,107 0.50% 3.24% 0.50% 3.24%
FOR THE YEAR ENDED
MAY 31, 1999 $1.00 0.03 (0.03) $1.00 3.01%$ 969,380 0.51% 2.97% 0.51% 2.97%
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%
----------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
FOR THE YEAR ENDED
MAY 31, 2000 $1.00 0.05 (0.05) $1.00 4.89%$ 329,595 0.65% 4.75% 0.69% 4.71%
FOR THE YEAR ENDED
MAY 31, 1999 $1.00 0.04 (0.04) $1.00 4.55%$ 390,775 0.65% 4.45% 0.72% 4.38%
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%
----------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INSTITUTIONAL
U.S. TREASURY MONEY MARKET FUND
FOR THE YEAR ENDED
MAY 31, 2000 $1.00 0.05 (0.05) $1.00 5.26%$5,022,306 0.30% 5.15% 0.30% 5.15%
FOR THE YEAR ENDED
MAY 31, 1999 $1.00 0.05 (0.05) $1.00 4.90%$4,346,037 0.31% 4.79% 0.31% 4.79%
FOR THE YEAR ENDED
MAY 31, 1998 $1.00 0.05 (0.05) $1.00 5.36%$4,285,801 0.33% 5.24% 0.33% 5.24%
FOR THE YEAR ENDED
MAY 31, 1997 $1.00 0.05 (0.05) $1.00 5.16%$2,591,487 0.33% 5.05% 0.34% 5.04%
FOR THE YEAR ENDED
MAY 31, 1996 $1.00 0.05 (0.05) $1.00 5.45%$ 644,733 0.32% 5.29% 0.39% 5.22%
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
88
<PAGE>
<TABLE>
BOSTON 1784 FUNDS
BOSTON 1784 MONEY MARKET FUNDS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
---------------------------------------------------------------------------------------------------------------------------------
RATIO OF
RATIO RATIO NET INVESTMENT
NET DISTRI- NET NET RATIO OF NET OF EXPENSES INCOME
ASSET NET BUTIONS ASSET ASSETS OF EXPEN- INVESTMENT TO AVERAGE TO AVERAGE
VALUE INVEST- FROM NET VALUE END OF SES TO INCOME NET ASSETS NET ASSETS
BEGINNING MENT INVESTMENT END TOTAL PERIOD 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> <C> <C>
BOSTON 1784 PRIME MONEY MARKET FUND
FOR THE YEAR ENDED
MAY 31, 2000 $1.00 0.05 (0.05) $1.00 5.10%$ 183,075 0.65% 4.98% 0.73% 4.90%
FOR THE YEAR ENDED
MAY 31, 1999 $1.00 0.05 (0.05) $1.00 4.78%$ 165,178 0.65% 4.66% 0.73% 4.58%
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 (1) $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%
----------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND
FOR THE YEAR ENDED
MAY 31, 2000 $1.00 0.05 (0.05) $1.00 5.43%$ 696,613 0.30% 5.35% 0.30% 5.35%
FOR THE YEAR ENDED
MAY 31, 1999 $1.00 0.05 (0.05) $1.00 5.10%$ 516,901 0.30% 4.93% 0.35% 4.88%
FOR THE PERIOD ENDED
MAY 31, 1998 (2) $1.00 0.03 (0.03) $1.00 5.55%$ 302,338 0.27% 5.36% 0.42% 5.21%
----------------------------------------------------------------------------------------------------------------------------------
* RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
(1) 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.
(2) BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND COMMENCED OPERATIONS ON NOVEMBER 5, 1997. ALL RATIOS FOR THE PERIOD,
INCLUDING TOTAL RETURN, HAVE BEEN ANNUALIZED.
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
89
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
BOSTON 1784 BOND FUNDS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
------------------------------------------------------------------------------------------------------------------------------------
RATIO OF
NET INVEST-
RATIO OF MENT INCOME
REALIZED DISTRIBU- RATIO RATIO EXPENSES TO
NET AND TIONS DISTRIBU- NET NET OF EXPEN- OF NET TO AVERAGE AVERAGE PORT-
ASSET NET UNREALIZED FROM NET TIONS ASSET ASSETS SES TO INVESTMENT NET ASSETS NET FOLIO
VALUE INVEST- GAINS OR INVEST- FROM VALUE END OF AVERAGE INCOME (LOSS)(EXCLUD- ASSETS TURN-
BEGINNING MENT (LOSSES) ON MENT CAPITAL END OF TOTAL PERIOD NET TO AVERAGE ING (EXCLUDING OVER
OF PERIOD INCOME INVESTMENTS INCOME GAINS PERIOD RETURN (000) ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 SHORT-TERM INCOME FUND
FOR THE YEAR ENDED
MAY 31, 2000 $10.02 0.54 (0.20) (0.54) -- $ 9.82 3.53% $129,210 0.64% 5.47% 0.89% 5.22% 53.53%
FOR THE YEAR ENDED
MAY 31, 1999 $10.09 0.54 (0.07) (0.54) -- $10.02 4.70% $176,032 0.64% 5.30% 0.89% 5.05% 36.57%
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% 0.89% 5.42% 83.84%
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% 0.93% 5.50% 128.11%
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% 1.06% 5.44% 95.06%
----------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INCOME FUND
FOR THE YEAR ENDED
MAY 31, 2000 $ 9.93 0.58 (0.47) (0.58) (0.05) $ 9.41 1.25% $309,957 0.80% 5.83% 1.10% 5.53% 128.81%
FOR THE YEAR ENDED
MAY 31, 1999 $10.25 0.55 (0.26) (0.55) (0.06) $ 9.93 2.83% $343,196 0.80% 5.37% 1.11% 5.06% 64.34%
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% 1.11% 5.60% 79.09%
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% 1.15% 5.96% 78.63%
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% 1.20% 5.77% 100.51%
----------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
FOR THE YEAR ENDED
MAY 31, 2000 $ 9.45 0.49 (0.32) (0.49) -- $ 9.13 1.87% $242,519 0.80% 5.49% 1.11% 5.18% 47.08%
FOR THE YEAR ENDED
MAY 31, 1999 $ 9.60 0.51 (0.15) (0.51) -- $ 9.45 3.73% $276,781 0.80% 5.25% 1.12% 4.93% 47.85%
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% 1.12% 5.48% 73.65%
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% 1.16% 5.93% 98.22%
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% 1.24% 5.79% 158.66%
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
90
<PAGE>
<TABLE>
<CAPTION>
BOSTON 1784 FUNDS
BOSTON 1784 TAX-EXEMPT INCOME FUNDS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
----------------------------------------------------------------------------------------------------------------------------------
RATIO OF
NET INVEST-
RATIO OF MENT INCOME
REALIZED DISTRIBU- RATIO RATIO EXPENSES TO
NET AND TIONS DISTRIBU- NET NET OF EXPEN- OF NET TO AVERAGE AVERAGE PORT-
ASSET NET UNREALIZED FROM NET TIONS ASSET ASSETS SES TO INVESTMENT NET ASSETS NET FOLIO
VALUE INVEST- GAINS OR INVEST- FROM VALUE END OF AVERAGE INCOME (EXCLUD- ASSETS TURN-
BEGINNING MENT (LOSSES) ON MENT CAPITAL END OF TOTAL PERIOD NET TO AVERAGE ING (EXCLUDING OVER
OF PERIOD INCOME INVESTMENTS INCOME GAINS PERIOD RETURN (000) ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
----------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
FOR THE YEAR ENDED
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MAY 31, 2000 $10.33 0.44 (0.62) (0.44) (0.11) $ 9.60 (1.70)% $296,711 0.80% 4.50% 1.11% 4.19% 48.25%
FOR THE YEAR ENDED
MAY 31, 1999 $10.52 0.45 (0.01) (0.45) (0.18) $10.33 4.24% $356,995 0.80% 4.31% 1.11% 4.00% 68.58%
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% 1.12% 4.30% 34.06%
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% 1.17% 4.55% 33.24%
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% 1.21% 4.48% 37.35%
---------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
FOR THE YEAR ENDED
MAY 31, 2000 $10.67 0.46 (0.62) (0.46) (0.05) $10.00 (1.45)% $148,902 0.80% 4.52% 1.12% 4.20% 29.76%
FOR THE YEAR ENDED
MAY 31, 1999 $10.81 0.48 (0.08) (0.48) (0.06) $10.67 3.72% $187,725 0.80% 4.37% 1.12% 4.05% 19.10%
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% 1.14% 4.32% 16.81%
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% 1.17% 4.53% 4.28%
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% 1.29% 4.48% 20.41%
----------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
FOR THE YEAR ENDED
MAY 31, 2000 $10.12 0.43 (0.61) (0.43) -- $ 9.51 (1.76)% $ 61,154 0.80% 4.44% 1.15% 4.09% 28.39%
FOR THE YEAR ENDED
MAY 31, 1999 $10.30 0.44 (0.04) (0.44) (0.14) $10.12 3.88% $ 68,796 0.80% 4.25% 1.14% 3.91% 10.88%
FOR THE PERIOD ENDED
MAY 31, 1998(1)$10.00 0.43 0.32 (0.43) (0.02) $10.30 7.63%* $ 51,793 0.80% 4.59% 1.19% 4.20% 21.35%
----------------------------------------------------------------------------------------------------------------------------------
* RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
(1) BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND COMMENCED OPERATIONS ON JUNE 30, 1997. ALL RATIOS FOR THE PERIOD HAVE BEEN
ANNUALIZED.
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
91
<PAGE>
<TABLE>
Financial Highlights
BOSTON 1784 TAX-EXEMPT INCOME FUNDS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
----------------------------------------------------------------------------------------------------------------------------------
RATIO OF
NET INVEST-
RATIO OF MENT INCOME
REALIZED DISTRIBU- RATIO RATIO EXPENSES TO
NET AND TIONS DISTRIBU- NET NET OF EXPEN- OF NET TO AVERAGE AVERAGE PORT-
ASSET NET UNREALIZED FROM NET TIONS ASSET ASSETS SES TO INVESTMENT NET ASSETS NET FOLIO
VALUE INVEST- GAINS OR INVEST- FROM VALUE END OF AVERAGE INCOME (EXCLUD- ASSETS TURN-
BEGINNING MENT (LOSSES) ON MENT CAPITAL END OF TOTAL PERIOD NET TO AVERAGE ING (EXCLUDING OVER
OF PERIOD INCOME INVESTMENTS INCOME GAINS PERIOD RETURN (000) ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
FOR THE YEAR ENDED
MAY 31, 2000 $10.39 0.45 (0.61) (0.45) -- $ 9.78 (1.51)% $231,140 0.80% 4.52% 1.12% 4.20% 10.58%
FOR THE YEAR ENDED
MAY 31, 1999 $10.42 0.45 (0.03 (0.45) -- $10.39 4.10% $267,871 0.80% 4.32% 1.12% 4.00% 9.32%
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% 1.14% 4.20% 6.45%
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% 1.18% 4.35% 9.47%
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% 1.28% 4.25% 47.00%
----------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
FOR THE YEAR ENDED
MAY 31, 2000 $10.50 0.46 (0.64) (0.46) (0.04) $ 9.82 (1.70)% $ 88,978 0.80% 4.57% 1.13% 4.24% 22.17%
FOR THE YEAR ENDED
MAY 31, 1999 $10.62 0.47 (0.04) (0.47) (0.08) $10.50 4.11% $102,073 0.80% 4.42% 1.13% 4.09% 12.44%
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% 1.16% 4.28% 13.79%
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% 1.21% 4.46% 8.18%
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% 1.35% 4.58% 19.68%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
92
<PAGE>
<TABLE>
BOSTON 1784 FUNDS
BOSTON 1784 STOCK FUNDS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
----------------------------------------------------------------------------------------------------------------------------------
RATIO OF
NET INVEST-
RATIO OF MENT INCOME
REALIZED DISTRIBU- RATIO RATIO EXPENSES (LOSS)TO
NET NET AND TIONS DISTRIBU- NET NET OF EXPEN- OF NET TO AVERAGE AVERAGE PORT-
ASSET INVEST- UNREALIZED FROM NET TIONS ASSET ASSETS SES TO INVESTMENT NET ASSETS NET FOLIO
VALUE MENT GAINS OR INVEST- FROM VALUE END OF AVERAGE INCOME (LOSS)(EXCLUD- ASSETS TURN-
BEGINNING INCOME (LOSSES) ON MENT CAPITAL END OF TOTAL PERIOD NET TO AVERAGE ING (EXCLUDING OVER
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS PERIOD RETURN (000) ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 ASSET ALLOCATION FUND
FOR THE YEAR ENDED
MAY 31, 2000 $14.97 0.39 1.37 (0.39) (0.46) $15.88 11.93% $ 51,726 1.00% 2.34% 1.25% 2.09% 52.60%
FOR THE YEAR ENDED
MAY 31, 1999 $15.16 0.38 0.48 (0.39) (0.66) $14.97 5.92% $ 53,371 0.96% 2.57% 1.21% 2.32% 49.78%
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% 1.23% 2.41% 47.83%
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% 1.37% 2.57% 23.60%
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% 1.90% 2.21% 39.56%
----------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 GROWTH AND INCOME FUND
FOR THE YEAR ENDED
MAY 31, 2000 $22.17 (0.03) 5.24 -- (2.37) $25.01 24.78% $531,621 0.88% (0.16)% 1.13% (0.41)% 29.09%
FOR THE YEAR ENDED
MAY 31, 1999 $21.72 0.02 0.97 (0.04) (0.50) $22.17 4.65% $549,416 0.89% 0.12% 1.14% (0.13)% 50.15%
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% 1.15% 0.11% 39.03%
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% 1.19% 0.50% 15.35%
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% 1.24% 0.48% 39.50%
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
93
<PAGE>
Financial Highlights
<TABLE>
BOSTON 1784 STOCK FUNDS (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
----------------------------------------------------------------------------------------------------------------------------------
RATIO OF
NET INVEST-
RATIO OF MENT INCOME
REALIZED DISTRIBU- RATIO RATIO EXPENSES (LOSSES)TO
NET NET AND TIONS DISTRIBU- NET NET OF EXPEN- OF NET TO AVERAGE AVERAGE PORT-
ASSET INVEST- UNREALIZED FROM NET TIONS ASSET ASSETS SES TO INVESTMENT NET ASSETS NET FOLIO
VALUE MENT GAINS OR INVEST- FROM VALUE END OF AVERAGE INCOME (LOSS)(EXCLUD- ASSETS TURN-
BEGINNING INCOME (LOSSES) ON MENT CAPITAL END OF TOTAL PERIOD NET TO AVERAGE ING (EXCLUDING OVER
OF PERIOD (LOSS) INVESTMENTS INCOME GAINS PERIOD RETURN (000) ASSETS NET ASSETS WAIVERS) WAIVERS) RATE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BOSTON 1784 GROWTH FUND
FOR THE YEAR ENDED
MAY 31, 2000 $12.06 (0.06) 8.72 -- (8.00) $12.72 65.97% $185,556 0.88% (0.33)% 1.13% (0.58)% 79.38%
FOR THE YEAR ENDED
MAY 31, 1999 $12.93 (0.08) (0.41) -- (0.38) $12.06 (3.54)% $185,476 0.93% (0.39)% 1.18% (0.64)% 61.02%
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)% 1.16% (0.60)% 48.60%
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% 1.15% (0.21)% 57.46%
FOR THE PERIOD ENDED
MAY 31, 1996(1)$10.00 0.02 1.25 -- (0.00) $11.27 12.70%* $46,026 0.20% 1.75% 1.73% 0.22% 0.00%
---------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INTERNATIONAL EQUITY FUND
FOR THE YEAR ENDED
MAY 31, 2000 $12.92 -- 4.56 -- (5.45) $12.03 36.46% $400,063 1.16% (0.01)% 1.41% (0.26)% 120.09%
FOR THE YEAR ENDED
MAY 31, 1999 $13.69 -- (0.66) (0.03) (0.08) $12.92 (4.85)%$389,753 1.20% 0.06% 1.45% (0.19)% 115.83%
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% 1.49% (0.21)% 103.47%
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% 1.52% 0.16% 22.88%
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% 1.61% 0.28% 15.55%
-----------------------------------------------------------------------------------------------------------------------------------
* RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
(1) BOSTON 1784 GROWTH FUND COMMENCED OPERATIONS ON MARCH 28, 1996. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
94
<PAGE>
BOSTON 1784 FUNDS
may 31, 2000
Notes to Financial Statements
1. ORGANIZATION
Boston 1784 Tax-Free Money Market, Boston 1784 U.S. Treasury Money Market,
Boston 1784 Institutional U.S. Treasury Money Market, Boston 1784 Prime Money
Market, Boston 1784 Institutional 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 of Boston
1784 Funds (the "Trust"). The Funds' prospectus provides a description of each
Fund's investment objectives, policies and strategies. 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. See note 9 for
information regarding the reorganization of the Funds after May 31, 2000.
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 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.
95
<PAGE>
May 31, 2000
Notes to Financial Statements (Continued)
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 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.
96
<PAGE>
BOSTON 1784 FUNDS
RECLASSIFICATION OF COMPONENTS OF NET ASSETS --
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with federal tax regulations
which may differ from generally accepted accounting principles. As a result, net
investment income (loss) and net realized gain (loss) on investment transactions
for the reporting period may differ from distributions during such period. These
book/tax differences may be temporary or permanent in nature. To the extent
these differences are permanent, they are charged or credited to
paid-in-capital, accumulated net realized gain, or undistributed net investment
income, as appropriate, in the period that the differences arise. Accordingly,
the following permanent differences have been reclassified to/from the following
accounts during the fiscal year ended May 31, 2000:
ACCUMULATED UNDISTRIBUTED
NET NET
PAID-IN- REALIZED INVESTMENT
CAPITAL GAIN/(LOSS) INCOME (LOSS)
BOSTON 1784 FUNDS (000) (000) (000)
===============================================================================
U.S. Treasury Money
Market Fund $-- $ (6) $ 6
Institutional U.S. Treasury
Money Market Fund -- (48) 48
Income Fund -- (53) 53
Tax-Exempt Medium-Term
Income Fund -- 1 (1)
Growth and Income Fund -- (885) 885
Growth Fund 32,147 (32,975) 828
International Equity Fund (2,194) (1,265) 3,459
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.
In order to fulfill redemption requests, the Boston 1784 Growth Fund transferred
appreciated securities in the amount of $69, 327,239 during the year. For
purposes of generally accepted accounting principles, this transaction is
treated as a sale of securities and a gain is recognized based on the market
value of the securities on the date of the in-kind transfer. For tax purposes,
the securities transferred in-kind keep their original cost basis and no gains
are recognized. The result is permanent difference of $32,145,987 related to the
gains recognized on books, but not for tax purposes.
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.
97
<PAGE>
MAY 31, 2000
Notes to Financial Statements (Continued)
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 Fleet National Bank (formerly
known as 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, 0.20% of the average daily net assets of Boston 1784 Institutional
U.S. Treasury Money Market and Boston 1784 Institutional 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 the Adviser and with Oechsle
International Advisors, LLC ("Oechsle"). The Advisory Agreement with Fleet
National Bank (formerly BankBoston, N.A.) is dated as of November 28, 1994; the
Advisory Agreement with Oechsle is dated as of February 7, 2000. 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.
The Trust and Investors Bank and Trust Company ("IBT") are parties to a
custodial agreement dated September 30, 1998 under which IBT holds cash,
securities and other assets of the Trust as required by the Investment Company
Act of 1940, as amended. 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, 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, 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
98
<PAGE>
BOSTON 1784 FUNDS
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 Bond, Tax-Exempt Income and stock 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 year ended May 31, 2000.
Pursuant to a Shareholder Services Agreement dated December 1, 1996, Fleet
National Bank 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. Fleet National Bank 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 year ended May 31, 2000, are as
presented below for the Bond, Tax-Exempt Income and Stock Funds.
<TABLE>
FUND INVESTMENT TRANSACTIONS (000):
PURCHASES SALES
=================================================================================================================
U.S. GOVERNMENT U.S. GOVERNMENT
FOR THE YEAR ENDED MAY 31, 2000 SECURITIES OTHER SECURITIES OTHER
=================================================================================================================
<S> <C> <C> <C> <C>
BOSTON 1784 SHORT-TERM INCOME FUND $ 30,301 $ 34,942 $ 27,936 $ 73,055
BOSTON 1784 INCOME FUND 261,015 129,696 224,281 184,596
BOSTON 1784 U.S. GOVERNMENT
MEDIUM-TERM INCOME FUND 99,043 2,539 136,192 2,076
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND -- 152,557 -- 201,955
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND -- 48,470 -- 76,534
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND -- 17,290 -- 19,899
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND -- 24,571 -- 37,179
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND -- 19,780 -- 30,821
BOSTON 1784 ASSET ALLOCATION FUND 9,367 16,582 11,676 23,057
BOSTON 1784 GROWTH AND INCOME FUND -- 154,324 -- 281,078
BOSTON 1784 GROWTH FUND -- 178,464 -- 312,922
BOSTON 1784 INTERNATIONAL EQUITY FUND -- 518,891 -- 684,629
</TABLE>
99
<PAGE>
MAY 31, 2000
Notes to Financial Statements (Continued)
<TABLE>
At May 31, 2000, the following Funds have capital loss carryforwards (000):
EXPIRATION 2002 2003 2004 2005 2006 2007 2008
================================================================================================================
BOSTON 1784 TAX-FREE MONEY MARKET FUND $ -- $ -- $ -- $104 $ 10 -- $ --
BOSTON 1784 PRIME MONEY MARKET FUND 23 -- -- -- -- 1 --
BOSTON 1784 INSTITUTIONAL PRIME MONEY
MARKET FUND -- -- -- -- -- -- 2
BOSTON 1784 SHORT-TERM INCOME FUND 10,934 324 282 309 -- -- 114
BOSTON 1784 INCOME FUND -- -- -- -- -- -- 4,810
BOSTON 1784 U.S. GOVERNMENT
MEDIUM-TERM INCOME FUND -- 3,311 -- 1,867 -- -- 1,374
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM
INCOME FUND -- -- -- -- -- -- 2,337
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT
INCOME FUND -- -- -- 74 -- -- 53
At May 31, 2000, the total cost of securities for Federal income tax
purposes was not materially different from amounts reported for financial
reporting purposes. The aggregate gross unrealized gains or losses on securities
at May 31, 2000 for the Bond, Tax-Exempt Income and Stock Funds are as follows
(000):
AGGREGATE AGGREGATE
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
GAINS LOSSES GAINS/(LOSSES)
================================================================================================================
<S> <C> <C> <C>
BOSTON 1784 SHORT-TERM INCOME FUND $ 10 $ ( 1,850) $ (1,840)
BOSTON 1784 INCOME FUND 556 (10,457) (9,901)
BOSTON 1784 U.S. GOVERNMENT
MEDIUM-TERM INCOME FUND 632 (7,155) (6,523)
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND 1,014 (9,492) (8,478)
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND 840 (5,492) (4,652)
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND 76 (2,548) (2,472)
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND 1,070 (9,576) (8,506)
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND 442 (3,675) (3,233)
BOSTON 1784 ASSET ALLOCATION FUND 12,226 (1,436) 10,790
BOSTON 1784 GROWTH AND INCOME FUND 294,764 (5,090) 289,674
BOSTON 1784 GROWTH FUND 57,900 (16,066) 41,834
BOSTON 1784 INTERNATIONAL EQUITY FUND 77,104 (17,902) 59,202
100
</TABLE>
<PAGE>
BOSTON 1784 FUNDS
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 Trust has entered into a Line of Credit Agreement. Pursuant to this
agreement, the Trust has access to a $50 million uncommitted line of credit and
a $20 million committed line of credit. The Trust is charged a commitment fee of
.10% of the unused portion of the committed line of credit. Borrowings under the
line are charged interest at the current overnight Federal Funds rate plus
0.50%. Each Fund is individually, and not jointly, liable for its particular
advances under the line. For the year ended May 31, 2000, the following funds
were borrowed under the agreement:
WEIGHTED WEIGHTED
MAXIMUM AVERAGE INTEREST AVERAGE
FUND BORROWING LOAN BALANCE PAID RATE
================================================================================
INTERNATIONAL EQUITY $13,500,000 $6,760,000 $5,268 5.99%
At May 31, 2000, there were no borrowings outstanding under the agreement.
101
<PAGE>
MAY 31, 2000
Notes to Financial Statements (Continued)
8. 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 eliminate fluctuations in the
underlying prices of the securities. They simply establish an exchange rate at a
future date. Although such contracts tend to minimize the risk of loss due to a
decline in the value of a hedged currency, they also tend to limit any potential
gain that might be realized should the value of such foreign currency increase.
The following forward foreign currency contracts were outstanding at May 31,
2000:
--------------------------------------------------------------------------------
BOSTON 1784 INTERNATIONAL EQUITY FUND
FOREIGN CURRENCY SALES:
CONTRACT TO IN EXCHANGE UNREALIZED
MATURITY RECEIVE FOR DEPRECIATION
DATE (000) (000) (000)
================================================================================
06/05/2000 GBP 3,903 $5,788 $69
06/30/2000 EUR 2,766 2,519 79
-------
148
=======
-------------------------------------------------------------------------------
CURRENCY LEGEND
EUR -- Euro
GBP -- Great British Pounds
102
<PAGE>
BOSTON 1784 FUNDS
Report of Independent Accountants
TO THE SHAREHOLDERS AND
BOARD OF TRUSTEES OF BOSTON 1784 FUNDS:
In our opinion, the accompanying statements of net assets for 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, Boston 1784
Short-Term Income Fund, Boston 1784 Income Fund, Boston 1784 U.S. Government
Medium-Term Income Fund, 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, Boston 1784 Asset Allocation Fund, Boston 1784 Growth
and Income Fund and Boston 1784 Growth Fund and the statement of assets and
liabilities, including the schedule of investments for Boston 1784 International
Equity Fund (constituting the Boston 1784 Funds hereafter referred to as the
"Fund") and the related statements of operations and of changes in net assets
and the financial highlights present fairly, in all material respects, the
financial position of each of the Funds, constituting the Fund, at May 31, 2000,
the results of each of their operations for the year then ended, the changes in
each of their net assets for each of the two years in the period then ended and
the financial highlights for each of the periods presented, in conformity with
accounting principles generally accepted in the United States. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at May 31,
2000 by correspondence with the custodians and brokers, provide a reasonable
basis for the opinion expressed above.
pricewaterhousecoopers llp
Two Commerce Square
Philadelphia, Pennsylvania
July 17, 2000
103
<PAGE>
MAY 31, 2000
SHAREHOLDER VOTING RESULTS (Unaudited)
AGREEMENT AND PLAN REORGANZIATION
On October 1, 1999, BankBoston Corporation, the parent company of BankBoston,
merged with Fleet Financial Group, Inc., forming FleetBoston Financial
Corporation. On February 4, 2000, the Board of Directors of Boston 1784 Funds
approved an Agreement and Plan of Reorganization (the "Plan"), providing for the
transfer of all assets and liabilities of Boston 1784 Funds in exchange for the
issuance of shares of the Galaxy Funds in a tax-free reorganization. At a
special meeting of shareholders on April 28, 2000, the shareholders of Boston
1784 Funds voted to approve the Plan. The results of the shareholder meeting are
as follows:
% OF % OF
SHARES VOTED VOTED OUTSTANDING
------------ ----- -----------
Tax-Free Money Market Fund
For 956,269,869.590 97.19% 87.01%
Against 17,607,284.570 1.79% 1.60%
Abstain 10,035,233.430 1.02% 0.91%
U.S. Treasury Money Market Fund
For 175,591,441.280 82.66% 50.62%
Against 22,576,459.370 10.63% 6.51%
Abstain 14,253,948.620 6.71% 4.11%
Institutional U.S. Treasury
Money Market Fund
For 2,894,218,100.760 94.29% 55.96%
Against 47,910,801.920 1.56% 0.93%
Abstain 127,410,653.140 4.15% 2.46%
Prime Money Market Fund
For 91,020,187.520 86.76% 54.62%
Against 6,229,114.490 5.94% 3.74%
Abstain 7,658,407.750 7.30% 4.60%
Institutional Prime Money Market
Fund
For 506,242,843.460 97.60% 58.08%
Against 9,549,489.410 1.84% 1.10%
Abstain 2,914,196.970 0.56% 0.33%
Short-Term Income Fund
For 12,733,610.901 98.43% 89.66%
Against 81,159.428 0.63% 0.57%
Abstain 122,035.396 0.94% 0.86%
Income Fund
For 32,207,106.482 99.75% 95.70%
Against 41,234.584 0.13% 0.12%
Abstain 40,662.650 0.13% 0.12%
104
<PAGE>
BOSTON 1784 FUNDS
% OF % OF
SHARES VOTED VOTED OUTSTANDING
------------ ----- -----------
U.S. Government Medium-Term
Income Fund
For 26,648,900.481 99.68% 96.04%
Against 50,110.780 0.19% 0.18%
Abstain 36,343.452 0.14% 0.13%
Tax-Exempt Medium-Term
Income Fund
For 31,146,798.398 99.43% 95.47%
Against 56,414.596 0.18% 0.17%
Abstain 121,601.377 0.39% 0.37%
Connecticut Tax-Exempt
Income Fund
For 14,062,353.342 98.26% 88.05%
Against 131,434.286 0.92% 0.82%
Abstain 117,037.934 0.82% 0.73%
Florida Tax-Exempt Income
Fund
For 6,234,472.388 99.68% 95.56%
Against 221.086 0.00% 0.00%
Abstain 19,833.000 0.32% 0.30%
Massachusetts Tax-Exempt
Income Fund
For 21,033,144.61 96.36% 85.86%
Against 645,207.58 2.96% 2.63%
Abstain 150,216.13 0.69% 0.61%
Rhode Island Tax-Exempt
Income Fund
For 8,103,412.688 98.12% 90.28%
Against 55,650.569 0.67% 0.62%
Abstain 99,661.908 1.21% 1.11%
Asset Allocation Fund
For 2,510,540.849 94.87% 73.02%
Against 78,434.228 2.96% 2.28%
Abstain 57,355.300 2.17% 1.67%
Growth and Income Fund
For 18,806,976.062 95.77% 84.02%
Against 603,133.306 3.07% 2.69%
Abstain 227,349.859 1.16% 1.02%
Growth Fund
For 13,805,472.030 97.65% 88.55%
Against 201,395.228 1.42% 1.29%
Abstain 130,792.084 0.93% 0.84%
International Equity Fund
For 30,136,805.525 99.61% 95.45%
Against 91,534.330 0.30% 0.29%
Abstain 26,537.651 0.09% 0.08%
105
<PAGE>
<TABLE>
Notice to Shareholders of
Boston 1784 Funds (Unaudited)
FOR TAXPAYERS FILING ON A CALENDAR YEAR BASIS,
THIS NOTICE IS FOR INFORMATIONAL PURPOSES ONLY.
(A)* (B)*
LONG-TERM ORDINARY (D)**
CAPITAL GAINS INCOME TOTAL (C)** TAX- (E)**
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS QUALIFYING EXEMPT FOREIGN
FUND (TAX BASIS) (TAX BASIS) (TAX BASIS) DIVIDENDS (1) INTEREST TAX CREDIT
================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
TAX-FREE MONEY MARKET FUND 0.00% 100.00% 100.00% 0.00% 86.89% 0.00%
U.S. TREASURYMONEY MARKET FUND 0.00% 100.00% 100.00% 0.00% 0.00% 0.00%
INSTITUTIONAL U.S. TREASURYMONEY
MARKET FUND 0.00% 100.00% 100.00% 0.00% 0.00% 0.00%
PRIME MONEY MARKET FUND 0.00% 100.00% 100.00% 0.00% 0.00% 0.00%
INSTITUTIONAL PRIME MONEY MARKET
FUN 0.00% 100.00% 100.00% 0.00% 0.00% 0.00%
SHORT-TERM INCOME FUND 0.00% 100.00% 100.00% 0.00% 0.00% 0.00%
INCOME FUND 3.07% 96.93% 100.00% 0.00% 0.00% 0.00%
U.S. GOVERNMENT MEDIUM-TERM INCOME
FUND 0.00% 100.00% 100.00% 0.00% 0.00% 0.00%
TAX-EXEMPT MEDIUM-TERM INCOME FUND 20.12% 79.88% 100.00% 0.00% 95.76% 0.00%
CONNECTICUT TAX-EXEMPT INCOME FUND 10.22% 89.78% 100.00% 0.00% 96.40% 0.00%
FLORIDA TAX-EXEMPT INCOME FUND 0.01% 99.99% 100.00% 0.00% 93.02% 0.00%
MASSACHUSETTS TAX-EXEMPT INCOME FUND 0.00% 100.00% 100.00% 0.00% 93.45% 0.00%
RHODE ISLAND TAX-EXEMPT INCOME FUND 8.47% 91.53% 100.00% 0.00% 96.02% 0.00%
ASSET ALLOCATION FUND 53.60% 46.40% 100.00% 18.95% 0.00% 0.00%
GROWTH AND INCOME FUND 100.00% 0.00% 100.00% 0.00% 0.00% 0.00%
GROWTH FUND 60.34% 39.66% 100.00% 0.58% 0.00% 0.00%
INTERNATIONAL EQUITY FUND 57.08% 42.92% 100.00% 0.00% 0.00% 0.81%
(1) QUALIFYING DIVIDENDS REPRESENT DIVIDENDS WHICH QUALIFY FOR THE CORPORATE
DIVIDENDS RECEIVED DEDUCTION. * ITEMS (A) AND (B) ARE BASED ON A PERCENTAGE OF
THE FUND'S TOTAL DISTRIBUTIONS. ** ITEMS (C), (D) AND (E) ARE BASED ON A
PERCENTAGE OF ORDINARY INCOME DISTRIBUTIONS OF THE FUND.
</TABLE>
PLEASE CONSULT YOUR TAX ADVISER FOR PROPER TREATMENT OF THIS INFORMATION.
106
<PAGE>
Notes
<PAGE>
Notes
<PAGE>
This report and the financial statements contained herein are for the general
information of the shareholders of the funds named above. This report is not
authorized for distribution to prospective investors in a fund unless
preceded or accompanied by a currently effective prospectus.
MF-0148
