Semi-Annual
Report
[1784 Boston logo omitted]
To Shareholders
November 30, 1999
<PAGE>
TABLE OF CONTENTS
- ---------------------------------------
LETTER TO SHAREHOLDERS 1
PERFORMANCE HIGHLIGHTS 2
TERMS YOU NEED TO KNOW 4
FUND OBJECTIVES 5
INVESTMENT ADVISER'S REPORT 6
FINANCIAL STATEMENTS 10
- --------------------------------------------------------------------------------
BOSTON 1784 FUNDS:
[Bullet] ARE NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY;
[Bullet] ARE NOT GUARANTEED BY BANKBOSTON, N.A. OR ANY OF ITS AFFILIATES;
[Bullet] ARE NOT DEPOSITS OR OBLIGATIONS OF BANKBOSTON, N.A. OR ANY
OF ITS AFFILIATES;
[Bullet] INVOLVE INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL
AMOUNT INVESTED.
BANKBOSTON, N.A. SERVES AS INVESTMENT ADVISER AND SHAREHOLDER
SERVICING AGENT FOR BOSTON 1784 FUNDS. BOSTON 1784 FUNDS ARE
DISTRIBUTED BY SEI INVESTMENTS DISTRIBUTION CO., A PARTY INDEPENDENT
OF BANKBOSTON, N.A. OR ANY OF ITS AFFILIATES. INVESTMENT COUNSELORS
ARE REGISTERED REPRESENTATIVES OF BANKBOSTON INVESTOR SERVICES, INC.
(MEMBER NASD/SIPC), A WHOLLY-OWNED SUBSIDIARY OF BANKBOSTON, N.A.
- --------------------------------------------------------------------------------
<PAGE>
BOSTON 1784 FUNDS
LETTER TO SHAREHOLDERS
- --------------------------------------------------------------------------------
[ROBERT A. NESHER PHOTO OMITTED]
It is a pleasure to provide you with this semi-annual report for Boston 1784
Funds. In September 1999, the Funds achieved another milestone, surpassing $10
billion in total assets. As of November 30, 1999, there were $10.4 billion in
total assets in the Funds.
You will find detailed information on the performance of individual Boston 1784
Funds in this report. Several Funds deserve special mention, however, as a
result of their performance against their respective peer groups. According to
Lipper rankings for the twelve months ended November 30, 1999:*
[Bullet] BOSTON 1784 TAX-FREE MONEY MARKET FUND ranked 7th out of 134 funds
(top 6%) in the Lipper Tax-Exempt Money Market Funds category.
[Bullet] BOSTON 1784 U.S. TREASURY MONEY MARKET FUND ranked 17th out of 91 funds
(top 19%) in the Lipper U.S. Treasury Money Market Funds category.
[Bullet] BOSTON 1784 INTERNATIONAL EQUITY FUND ranked 73rd out of 604 funds
(top 13%) in the Lipper International Funds category.
[Bullet] BOSTON 1784 ASSET ALLOCATION FUND ranked 138th out of 444 funds
(top 32%) in the Lipper Balanced Funds category.
Please remember that a Fund's performance in the past is not necessarily an
indication of how a Fund will do in the future. The Funds' total returns and
resulting rankings reflect advisory fee and expense waivers.
I would like to draw your attention also to information relating to the merger
of BankBoston Corporation and Fleet Financial Group, Inc. and the succession of
Oechsle International Advisors LLC as co-adviser of the International Equity
Fund. This information can be found under "Recent Developments" on page 87 of
this report.
We are always ready to provide you with information to help you make sound
investment decisions. If you have questions about any Boston 1784 Fund or your
account, or would like a copy of the most recent prospectus, we invite you to
contact your Investment Counselor or call 1-800-BKB-1784, Monday through Friday
from 8:00 a.m. to 6:00 p.m. (Eastern time). Our automated system is ready also
24 hours a day to provide you with account information.
Thank you for choosing Boston 1784 Funds to help meet your investment goals.
Sincerely,
/s/signature omitted
Robert A. Nesher
President
Boston 1784 Funds
*For the five years ended November 30, 1999:
Boston 1784 Tax-Free Money Market Fund ranked 11th out of 108 funds in the
Lipper Tax-Exempt Money Market Funds category. Boston 1784 U.S. Treasury Money
Market Fund ranked 16th out of 70 funds in the Lipper U.S. Treasury Money Market
Funds category. Boston 1784 Asset Allocation Fund ranked 74th out of 209 funds
in the Lipper Balanced Funds category.
1
<PAGE>
PERFORMANCE HIGHLIGHTS OF THE FUNDS
- --------------------------------------------------------------------------------
FOR THE PERIOD JUNE 1, 1999 THROUGH NOVEMBER 30, 1999
<TABLE>
<CAPTION>
INCOME
TOTAL NET ASSETS TOTAL RETURN(1) NAV SHARE PRICE YIELD DISTRIBUTIONS
11-30-99 11-30-99 HIGH LOW 30-DAY 7-DAY PER
(IN MILLIONS) SHARE
---------------------------------------------------------------------------------------------
MONEY MARKET FUNDS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Boston 1784 Tax-Free Money Market $1,058.1 1.53% $1.00 $1.00 $1.00 N/A 3.36% $ 0.02
Boston 1784 U.S. Treasury Money Market 387.1 2.25 1.00 1.00 1.00 N/A 4.90 0.02
Boston 1784 Prime Money Market 170.8 2.43 1.00 1.00 1.00 N/A 4.99 0.02
- ------------------------------------------------------------------------------------------------------------------------------
BOND FUNDS
- ------------------------------------------------------------------------------------------------------------------------------
Boston 1784 Short-Term Income $145.7 1.59% $9.91 $10.03 $9.90 5.86% N/A $ 0.27
Boston 1784 Income 330.3 0.15 9.60 9.92 9.59 6.08 N/A 0.29
Boston 1784 U.S. Government
Medium-Term Income 268.8 0.71 9.27 9.44 9.23 5.59 N/A 0.25
- ------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT INCOME FUNDS
- ------------------------------------------------------------------------------------------------------------------------------
Boston 1784 Tax-Exempt
Medium-Term Income $345.2 (2.33)% $9.76 $10.30 $9.71 4.68% N/A $ 0.22
Boston 1784 Connecticut
Tax-Exempt Income 178.3 (1.87) 10.19 10.64 10.08 4.62 N/A 0.23
Boston 1784 Florida
Tax-Exempt Income 68.9 (2.03) 9.70 10.10 9.56 4.58 N/A 0.22
Boston 1784 Massachusetts
Tax-Exempt Income 252.1 (1.88) 9.97 10.36 9.83 4.61 N/A 0.23
Boston 1784 Rhode Island
Tax-Exempt Income 97.0 (2.46) 9.97 10.47 9.86 4.70 N/A 0.23
- ------------------------------------------------------------------------------------------------------------------------------
STOCK FUNDS
- ------------------------------------------------------------------------------------------------------------------------------
Boston 1784 Asset Allocation $ 53.8 7.04% $15.36 $15.89 $14.67 2.43% N/A $ 0.21
Boston 1784 Growth and Income 516.7 9.56 21.96 24.42 21.41 N/A N/A --
Boston 1784 Growth 249.4 43.20 16.10 17.49 11.78 N/A N/A --
Boston 1784 International Equity 477.3 42.75 15.35 17.73 13.03 N/A N/A --
<FN>
Performance data represent past results and are no guarantee of future results.
Investment return and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost. Yield
fluctuates. Yield reflects the portfolio's earning power, net of fund expenses.
An investment in a money market fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although money
market funds seek to preserve the value of your investment at $1.00 per share,
it is possible to lose money by investing in a money market fund.
(1) Returns are for the period indicated and have not been annualized.
2
</FN>
</TABLE>
<PAGE>
BOSTON 1784 FUNDS
TOTAL RETURN FOR THE PERIOD
JUNE 1, 1999 - NOVEMBER 30, 1999
- --------------------------------------------------------------------------------
[BAR CHART OMITTED]
PLOT POINTS FOLLOWS:
BOSTON
1784 FUNDS TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 1999 (1)
TAX-FREE MONEY MARKET 1.53
U.S. TREASURY MONEY MARKET 2.25
PRIME MONEY MARKET 2.43
SHORT-TERM INCOME 1.59
INCOME 0.15
U.S. GOVERNMENT MEDIUM-TERM INCOME 0.71
TAX-EXEMPT MEDIUM-TERM INCOME (2.33)
CONNECTICUT TAX-EXEMPT INCOME (1.87)
FLORIDA TAX-EXEMPT INCOME (2.03)
MASSACHUSETTS TAX-EXEMPT INCOME (1.88)
RHODE ISLAND TAX-EXEMPT INCOME (2.46)
ASSET ALLOCATION 7.04
GROWTH AND INCOME 9.56
GROWTH 43.20
INTERNATIONAL EQUITY 42.75
(1) RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
3
<PAGE>
TERMS YOU NEED TO KNOW
- --------------------------------------------------------------------------------
ADVISER is an organization employed by a mutual fund to give professional advice
on the fund's investments and asset management practices
(also called the investment adviser).
ASSETS are the investment holdings and cash owned by a mutual fund.
AVERAGE-WEIGHTED-MATURITY is an average of the maturity dates of the various
securities in a mutual fund based on the dollar value of those securities. It is
calculated by multiplying the market value of each portfolio security by the
time remaining to its maturity, adding these calculations and then dividing the
total by the market value of the portfolio.
BASIS POINT is one one-hundredth of a percentage point.
CAPITAL APPRECIATION is the increase in the market value of a mutual fund's
securities, as reflected in the net asset value of the fund's shares. Capital
appreciation (or growth) is a specific long-term objective of many mutual funds.
COUPON RATE is the stated interest rate on a bond.
DIVERSIFICATION is the practice of investing broadly across a number of
securities to reduce risk; a hallmark of mutual fund investing.
DURATION is a weighted average term-to-maturity of a mutual fund security's cash
flow.
EXPENSE RATIO is a fund's cost of doing business -- disclosed in the prospectus
- -- as a percent of its assets.
INCOME is the dividends, interest, and/or short-term capital gains paid to a
mutual fund's shareholders. Income is earned on a fund's investment portfolio
after deducting operating expenses.
INVESTMENT OBJECTIVE is the goal -- long-term capital growth or current income,
for example -- that an investor and mutual fund pursue together.
LIQUIDITY is the ability to redeem (sell back) all or part of your mutual fund
shares on any business day and receive the current value (which may be more or
less than the original cost).
MANAGEMENT FEE is the amount paid by a mutual fund to the investment adviser for
its services.
NET ASSET VALUE PER SHARE (NAV) is the market worth of one share of a mutual
fund. This figure is derived by taking a fund's total assets -- securities, cash
and any accrued earnings -- deducting liabilities, and dividing by the number of
shares outstanding.
PRINCIPAL is the basic amount of money you invest, not to be confused with
reinvested dividends or capital gains.
TOTAL RETURN is the change in value of an investment from the beginning to the
end of a period, assuming the reinvestment of all distributions. This is based
on a formula set by the Securities and Exchange Commission.
YIELD is the percentage rate at which a fund's portfolio earns income for its
investors, based on a formula set by the Securities and Exchange Commission.
4
<PAGE>
BOSTON 1784 FUNDS
FUND OBJECTIVES
- --------------------------------------------------------------------------------
MONEY MARKET FUNDS
[Bullet] BOSTON 1784 TAX-FREE MONEY MARKET FUND
To preserve the principal value of a shareholder's investment and
maintain a high degree of liquidity while providing current income that
is exempt from federal income tax.
[Bullet] BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
To preserve the principal value of a shareholder's investment and
maintain a high degree of liquidity while providing current income.
[Bullet] BOSTON 1784 PRIME MONEY MARKET FUND
To preserve the principal value of a shareholder's investment and
maintain a high degree of liquidity while providing current income.
BOND FUNDS
[Bullet] BOSTON 1784 SHORT-TERM INCOME FUND
To provide investors with maximum current income, and, as a secondary
goal, to preserve investors' capital. n Boston 1784 Income Fund To
provide investors with maximum current income, and, as a secondary
goal, to preserve investors' capital.
[Bullet] BOSTON 1784 INCOME FUND
To provide investors with maximum current income, and, as a secondary
goal, to preserve investors' capital.
[Bullet] BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
To provide investors with current income consistent with preservation
of capital.
TAX-EXEMPT FUNDS
[Bullet] BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
To provide investors with current income, exempt from federal income
tax, consistent with preservation of capital.
[Bullet] BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
To provide investors with current income exempt from both federal and
Connecticut personal income tax, with a secondary goal of preserving
capital.
[Bullet] BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
To provide investors with current income exempt from federal income tax
through Fund shares which are exempt from Florida intangible personal
property tax, with a secondary goal of preserving capital.
[Bullet] BOSTON 1784 MASSACHUSETTS TAX-EXEMPT
Income Fund To provide investors with current income exempt from both
federal and Massachusetts personal income tax, consistent with
preservation of capital.
[Bullet] BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
To provide investors with current income exempt from federal income tax
and Rhode Island personal income and business corporation taxes, with a
secondary goal of preserving capital.
STOCK FUNDS
[Bullet] BOSTON 1784 ASSET ALLOCATION FUND
To provide investors with a favorable total rate of return through
current income and capital appreciation consistent with preservation of
capital, derived from investing in fixed income and equity securities.
[Bullet] BOSTON 1784 GROWTH AND INCOME FUND
To provide investors with long-term growth of capital with a secondary
goal of income.
[Bullet] BOSTON 1784 GROWTH FUND
To provide investors with capital appreciation. Dividend income, if
any, is incidental to this goal.
[Bullet] BOSTON 1784 INTERNATIONAL EQUITY FUND
To provide investors with long-term growth of capital. Dividend income,
if any, is incidental to this goal.
5
<PAGE>
INVESTMENT ADVISER'S REPORT
- --------------------------------------------------------------------------------
[EDWARD G. RILEY, JR. PHOTO OMITTED]
It's a good thing records are made to be broken, because the economy and the
financial markets seem to break new ground with each new government press
release and closing bell.
The economy, which several quarters ago broke the record for longest
peacetime expansion, is nudging the mark for longest expansion ever. Economic
(GDP) growth in the third calendar quarter of 1999 surged 5.5%, evidence of the
tremendous momentum in consumer sectors like autos (which also set a new sales
record) and Internet-related e-commerce activity. Equally impressive are strong
employment growth and a persistently low unemployment rate of 4.2% to 4.4%.
To be sure, 5.5% GDP growth is well above the Federal Reserve Board's 3%
speed limit, and the Board has taken steps to slow the economy--and lower the
risk of inflation--with three increases in the Federal Funds Rate since June
1999. The rate currently stands at 5.50%.
But strong employment/low unemployment are great enhancers of consumer
confidence and spending, which are the fuel for current economic growth. Couple
these with the hard-to-quantify impact of Y2K-related stockpiling and a broad
rebound in business activity overseas and you have an economy that seems
impervious, so far, to interest rate increases.
In recent months, some experts have advanced the notion that inflation is
dead, and when it hovered around 1.5% it was certainly not much of an issue. But
it can also be argued that high growth, low unemployment and rising spending
must eventually lead to inflation. The reason: simple supply-and-demand factors
will push up the price of goods, while higher wages will push up the cost of
manufacturing. And with inflation at present a less benign 2.6%, pressure on
prices--and the Federal Reserve Board--are building.
STOCK MARKET REVIEW
The soaring stock market is also contributing to inflationary pressure by
boosting the confidence of virtually any consumer with a 401(k)
[down jones line chart omitted]
DOW JONES INDUSTRIAL AVERAGE
NOVEMBER 1998-NOVEMBER 1999
PLOT POINTS FOLLOWS:
9116 11/98
9274
9358 12/98
9306
9786 1/99
10789
11107 2/99
10799
11066 3/99
11002
10655 4/99
11117 5/99
10829 6/99
11030 7/99
10337 8/99
10729 9/99
11035 10/99
10877 11/99
6
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
plan--provided he or she has invested liberally in technology and Internet
stocks. The "new economy" stocks have driven the NASDAQ and other indices to
record highs, with the Dow Jones Industrial Average breaking the 11,000 barrier
and the Standard & Poor's 500 Composite Index ("S&P 500") rising above 1400.
In reality, however, we are in the midst of a "tale of two markets." Exclude
the gains in technology and Internet stocks from the S&P 500 and you discover an
equity market that has gained little or no ground in the last 12 months.
However, investors who positioned their portfolios correctly profited
handsomely. For example, on November 30, 1999, Boston 1784 Growth Fund, which is
heavily invested in technology and Internet ("new economy") stocks, was up
40.64% since January 1999.
It is interesting, however, that even absent technology-related issues, the
broader markets have managed to hold their ground despite developments that once
would have been an anathema to stock prices. We've already discussed the
1-percentage-point increase in inflation and the Federal Reserve Board's
response. Also noteworthy is the increase in long-term interest rates, from 4.7%
a little more than a year ago to about 6.25% as of November 30, 1999. Even so,
the S&P 500 manages to sustain a relatively high price/earnings multiple of 24
times.
Not to be outdone by U.S. indices, the international markets have posted
strong results this year. As economic pressures have eased, business activity
has increased and interest in equities has been revived. Even Japanese markets
zoomed upward, although they have calmed recently. Investors in Boston 1784
International Equity Fund have been among the beneficiaries of this improvement,
with that Fund gaining 38.25% since January 1999.
[PACIFIC STOCK EXCHANGE LINE CHART OMITTED]
PLOT POINTS FOLLOWS:
PACIFIC STOCK EXCHANGE TECHNOLOGY INDEX
NOVEMBER 1998-NOVEMBER 1999
412 11/98
449 12/98
515 1/99
462 2/99
506 3/99
514 4/99
546 5/99
612 6/99
596 7/99
649 8/99
627 9/99
664 10/99
816 11/99
Overall, the outlook for equities remains positive. While the flow of funds
into equity mutual funds is down 50% from last year, it remains at about a $120
billion annual rate, providing plenty of liquidity for further gains. In
addition, a high level of merger and acquisition activity, coupled with
aggressive stock buy-back programs on the part of many corporations, has
tightened the supply of stocks. We could well see a rise in merger
7
<PAGE>
- --------------------------------------------------------------------------------
and acquisition activity in the coming months, as corporations race to beat
the elimination of pooling-of-interest accounting later in 2000. The equity
market may also respond positively as Y2K fears abate in the first quarter.
Regardless of these factors, however, the market will remain caught in a
clash between "new economy" stocks and the Federal Reserve Board's need to slow
growth. Although the Federal Reserve Board has stated that it will not move
solely to influence stock market activity, it's clear that the Open Market
Committee is concerned about the impact of the "wealth effect" on the economy.
[30-YEAR TREASURY LINE CHART OMITTED]
PLOT POINTS FOLLOWS:
30-Year Treasury Bond
November 1998-November 1999
Yield
5.07 11/98
5.09 1/99
5.63 3/99
5.84 5/99
6.10 7/99
6.05 9/99
6.28 11/99
BOND MARKET REVIEW
It's clear that the bond market shares the Federal Reserve Board's concern
about the rapid pace of potentially inflationary economic growth--and that it
has reacted far more negatively than the stock market to inflation fears. This
year's surge in energy prices and overall increases in commodity prices have not
helped matters.
In response, wary bond investors have pushed long-term interest rates up
approximately 1.5% since last fall, from 4.7% to about 6.25% on November 30,
1999. Regardless of the measurable level of inflation, interest rates now
include an "inflation premium." In addition, higher rates are supported by an
excess supply of corporate debt issues as the flow of funds into bond mutual
funds remains a trickle.
While it appears that economic momentum will remain strong, we expect the
Federal Reserve Board to assume a cautious stance in the short term, tempering
rate increases in order to avoid a dramatic and potentially damaging stock
market correction. Over the long term, however, the Federal Reserve Board will
get ahead of the curve and manage to slow the momentum of the stock market and
the economy.
That will be good news for bond investors, as interest rates are likely to
decline accordingly. While cyclical pressures may push up interest rates over
the short term, long-term secular trends remain deflationary. For example, an
aging population continues to focus on saving rather than spending. So despite
temporary cyclical blips, the overall trend in inflation and interest rates is
downward.
8
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
MONEY MARKET REVIEW
Focusing on its mission to control inflation, the Federal Reserve Board has
raised short-term interest rates three times in 0.25% increments since June
1999, pushing the Federal Funds Rate from 4.75% to 5.50%. While that has been
good news for money market investors, whether the trend is sustained depends as
much on the Federal Reserve Board's fear of a severe stock market correction as
it does on economic growth. Once again, the Federal Reserve Board finds itself
in a precarious position, trying to cool an overheated economy (and stock
market) without ushering in a severe decline in economic activity. Consequently,
it is likely to remain in a reactive mode in the year ahead--with much more than
money market interest rates hanging in the balance.
We believe that economic growth is somewhat self-limiting, that the Federal
Reserve Board will be able to move in a timely but temperate fashion, and that
the prevailing upward momentum in stocks will continue. We worry about a world
where chat rooms have become a primary source of guidance for many investors,
and time horizons are measured by the refresh rate on an investor's Web browser.
In our view, though, investors with a disciplined, long-term outlook and sound
asset allocation strategy have little reason to worry.
/s/signature omitted
Edward G. Riley, Jr.
BankBoston, N.A.
MR. RILEY LEFT BANKBOSTON ON DECEMBER 31, 1999 TO PURSUE OTHER OPPORTUNITIES.
THIS REPORT COVERS THE PERIOD ENDING NOVEMBER 30, 1999, DURING WHICH TIME HE WAS
ASSOCIATED WITH BANKBOSTON.
[FEDERAL FUNDS LINE CHART OMITTED]
PLOT POINTS FOLLOWS:
FEDERAL FUNDS RATE
NOVEMBER 1996-NOVEMBER 1999
5.31 11/96
5.50 5/97
5.50 11/97
5.50 5/98
4.75 11/98
4.75 5/99
5.50 11/99
9
<PAGE>
as of November 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-FREE MONEY MARKET FUND
[PIE CHART OMITTED]
plot points follows:
Transportation Bonds 2%
Utility Bonds 14%
General Obligation Bonds 15%
Cash Equivalents 6%
Tax-Exempt Commercial Paper 6%
Other Revenue Bonds 3%
Education Bonds 11%
Health Care Bonds 12%
Industrial Development &
Pollution Control Bonds 15%
Bond Anticipation Notes 5%
Water & Sewer Bonds 7%
Housing Bonds 4%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION PAR (000) VALUE (000)
MUNICIPAL BONDS -- 92.0%
ALASKA -- 0.9%
Valdez, Arco Transportation
Project RB
3.300%, 02/17/00 $ 9,500 $ 9,500
----------
ARIZONA -- 3.7%
Pima County, Industrial
Development Authority RB (A)
4.000%, 12/01/99 19,000 19,000
Salt River, Series A
3.400%, 02/11/00 20,000 20,000
----------
39,000
----------
CALIFORNIA -- 0.7%
California Student Education
Loan Marketing RB,
Series A, LOC (A)
3.200%, 12/01/99 7,000 7,000
----------
COLORADO -- 2.2%
Colorado State Health Facility
Authority RB, LOC (A)
4.000%, 12/01/99 23,100 23,100
----------
DESCRIPTION PAR (000) VALUE (000)
CONNECTICUT -- 1.0%
Connecticut State Health &
Higher Education Facilities RB,
Yale University,
Series T-2 (A)
3.750%, 12/02/99 $10,455 $ 10,455
----------
FLORIDA -- 3.0%
Florida State Housing Finance
Authority RB, FGIC (A)
3.700%, 12/01/99 6,300 6,300
Miami, Dade County Water &
Sewer System RB, Series 1994,
FGIC (A)
3.600%, 12/01/99 25,600 25,600
----------
31,900
----------
GEORGIA -- 4.4%
Burke County, Pollution Control
RB, Oglethorpe Power,
Series A, FGIC (A)
3.900%, 12/01/99 13,750 13,750
Georgia State Municipal Electric
Authority RB, LOC (A)
3.900%, 12/01/99 800 800
Hapeville, Industrial Development
Authority RB, Hapeville Hotel Project,
LOC (A)
3.800%, 12/01/99 7,700 7,700
Southern Georgia Hospital
Authority RB, Series A (A)
3.950%, 12/01/99 24,100 24,100
----------
46,350
----------
HAWAII -- 0.3%
Hawaii State GO
4.400%, 07/01/00 2,925 2,942
----------
ILLINOIS -- 5.2%
Chicago GO (B)
3.750%, 01/31/00 10,000 10,000
Illinois State Development
Finance Authority RB,
Series 42A (A)
3.400%, 12/02/99 14,030 14,030
10
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
ILLINOIS (CONTINUED)
Illinois State Educational Facility
Authority RB, Shedd Aquarium
Society Project, Series B,
LOC (A) (B)
3.700%, 07/18/00 $ 6,000 $ 6,000
Illinois State Toll Highway
Authority RB (A)
3.900%, 12/02/99 25,000 25,000
----------
55,030
----------
INDIANA -- 0.4%
Indiana State Educational
Loan RB, Series E
4.200%, 06/01/00 4,400 4,419
----------
IOWA -- 1.0%
Iowa Finance Authority, Single
Family RB (A)
2.950%, 01/01/00 3,750 3,735
Iowa Finance Authority, Single
Family RB, Series A (A)
2.950%, 01/01/00 5,440 5,419
Iowa State Student Loan Liquidity
Corporation RB, Series A (A)
4.100%, 12/01/99 2,000 2,000
----------
11,154
----------
KENTUCKY -- 1.4%
Boone County, Pollution Control RB,
Cincinnati Gas & Electric Project,
LOC (A) (B)
3.800%, 12/01/99 4,100 4,100
Ohio County, Kentucky Pollution
Control RB, AMBAC (A)
3.900%, 12/01/99 11,100 11,100
----------
15,200
----------
LOUISIANA -- 4.5%
East Baton Rouge Pollution
Control RB (A)
3.800%, 12/01/99 3,300 3,300
Louisiana State Offshore Terminal
Authority RB, Deepwater Port
Project, LOC, AMBAC (A)
3.800%, 12/01/99 10,800 10,800
DESCRIPTION PAR (000) VALUE (000)
Louisiana State Offshore Terminal
Authority RB, Deepwater Port
Project, LOC (A)
3.600%, 12/01/99 $12,200 $ 12,200
Louisiana State South Port
RB, AMBAC (A)
3.850%, 12/01/99 10,000 10,000
Plaquemines, Port Facilities RB,
International Marine Terminal
Project, Series B (A) (B)
3.050%, 03/15/00 10,900 10,900
----------
47,200
----------
MARYLAND -- 1.6%
Maryland State Department of
Transportation RB
5.000%, 09/01/00 17,225 17,401
----------
MASSACHUSETTS -- 7.6%
Massachusetts State GO,
Series B (A)
3.900%, 12/02/99 37,000 37,000
Massachusetts State GO
4.000%, 05/01/00 8,080 8,106
Massachusetts State Health &
Educational RB (A)
3.850%, 12/01/99 22,400 22,400
3.710%, 12/02/99 13,195 13,195
----------
80,701
----------
MICHIGAN -- 1.2%
Kent, Hospital Finance
Authority RB, Spectrum Health
Series B, MBIA (A)
3.750%, 12/01/99 12,200 12,200
----------
MISSISSIPPI -- 1.0%
Perry County Pollution Control RB,
Leaf River Forest Project,
Series 1992, (A)
3.600%, 12/01/99 10,950 10,950
----------
MISSOURI -- 0.3%
Missouri State Higher Education
Loan Authority RB, Series CC
3.200%, 02/15/00 2,715 2,715
----------
11
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-FREE MONEY MARKET FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
NEBRASKA -- 0.9%
Nebraska State Public Gas
Supply RB, Series C
3.550%, 03/01/00 $ 3,195 $ 3,197
Omaha, Electric Power
Distribution RB, Series A
4.850%, 02/01/00 6,245 6,262
----------
9,459
----------
NEW HAMPSHIRE -- 1.6%
New Hampshire State Health &
Higher Education Facilities
Authority RB, Mary Hitchcock
Project, Series 85D, FGIC (A) (B)
3.950%, 12/01/99 12,600 12,600
New Hampshire State Health &
Higher Education Facilities
Authority RB, Veterans
Administration Hospital,
New England Project, Series C,
AMBAC (A) (B)
3.950%, 12/01/99 4,000 4,000
----------
16,600
----------
NEW JERSEY -- 1.1%
Bayonne BAN
4.000%, 07/14/00 11,992 12,006
----------
NEW MEXICO -- 0.6%
Hurley Pollution Control RB (A)
3.700%, 12/01/99 6,600 6,600
----------
NEW YORK -- 7.1%
Long Island Power Authority RB,
Sub-Series 5, LOC (A)
3.600%, 12/01/99 32,300 32,300
New York City GO,
Sub-Series A-5, LOC, (A)
3.800%, 12/01/99 7,915 7,915
New York City, Water & Sewer
Authority RB, Series C, FGIC (A)
3.800%, 12/01/99 10,000 10,000
New York State Housing Finance
Agency RB, Series PA 423 (A)
4.000%, 12/02/99 9,105 9,105
DESCRIPTION PAR (000) VALUE (000)
New York State Local Government
Assistance Corporation RB,
Series B, LOC (A) (B)
3.800%, 12/01/99 $15,400 $ 15,400
----------
74,720
----------
NORTH CAROLINA -- 4.9%
Wake County, Industrial Facilities
& Pollution Control RB,
Carolina Power & Light Project,
Series B, LOC (A)
(B)
3.850%, 12/01/99 8,600 8,600
Wake County, Industrial Facilities
& Pollution Control RB,
Carolina Power & Light Project,
Series C, LOC (A) (B)
3.850%, 12/01/99 34,300 34,300
Wake County, Industrial Facilities
& Pollution Control RB (A)
3.600%, 12/01/99 8,500 8,500
----------
51,400
----------
OHIO -- 0.9%
Ohio State GO, Highway
Improvements, Series D
4.000%, 05/01/00 10,000 10,032
----------
OKLAHOMA -- 2.5%
Oklahoma State Residential
Water Board RB
3.600%, 03/01/00 26,160 26,160
----------
PENNSYLVANIA -- 5.7%
Quakertown, General Authority RB,
Series A, LOC (A)
3.800%, 12/07/99 11,240 11,240
Quakertown, Hospital Facilities
Authority RB (A) (B)
3.800%, 12/07/99 34,200 34,200
Schuylkill County Industrial
Development Authority RB,
Gilberton Power Project (A)
3.850%, 12/01/99 14,800 14,800
----------
60,240
----------
12
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
SOUTH CAROLINA -- 1.8%
Piedmont, Municipal Power
Agency RB, MBIA (A)
3.900%, 12/01/99 $19,400 $ 19,400
----------
TENNESSEE -- 2.5%
Nashville & Davidson County,
Education & Health Facilities RB,
Metropolitan Government
Vanderbilt University,
Series 85-A, GOI (A)
3.100%, 01/15/00 2,500 2,500
Sullivan County, Industrial
Development Authority,
Pollution Control RB, Mead
Project (A) (B)
3.500%, 12/01/99 19,600 19,600
3.461%, 12/01/99 4,500 4,500
----------
26,600
----------
TEXAS -- 9.2%
Bexar County, Multi-Family
Housing RB, Altamonte
Apartments Project, FNMA (A)
3.900%, 12/01/99 11,300 11,300
Harris County Health Facilities RB,
MBIA (A)
3.850%, 12/01/99 18,000 18,000
Midlothian, Industrial
Development RB (A)
3.850%, 12/01/99 12,000 12,000
North Central Health Facility
Development Corporation RB,
Presbyterian Medical Center
Project, Series D, MBIA (A) (E)
3.700%, 12/01/99 5,010 5,010
Texas Municipal Power TECP
3.800%, 02/09/00 8,500 8,500
Texas State TRAN
4.500%, 08/31/00 35,000 35,199
Texas Utility TECP
3.750%, 12/03/99 7,835 7,835
----------
97,844
----------
UTAH -- 3.6%
Utah State GO, Series B(A)
3.800%, 12/01/99 38,300 38,300
DESCRIPTION PAR (000) VALUE (000)
VERMONT -- 0.6%
Vermont State Health &
Educational Facilities Authority
RB, Series D, AMBAC (A) (B)
3.950%, 12/01/99 $ 5,900 $ 5,900
----------
WASHINGTON -- 4.2%
Washington State Public
Power Supply System
Authority RB, Nuclear Project
No. 2, Series A (B)
7.375%, 07/01/00 5,000 5,215
Washington State
3.700%, 08/10/00 10,525 10,525
Washington State Public
Power RB (B)
7.000%, 07/01/00 5,500 5,726
Washington State Utility RB
5.000%, 07/01/00 17,660 17,840
Washington State Utility RB (B)
7.000%, 07/01/00 4,640 4,830
----------
44,136
----------
WISCONSIN -- 1.4%
Wisconsin State Health &
Elderly Facilities RB
5.500%, 12/01/99 6,550 6,550
Wisconsin State GO, Series B
4.900%, 05/01/00 5,000 5,022
Wisconsin State Utility RB (B)
7.400%, 07/01/00 3,250 3,390
----------
14,962
----------
WYOMING -- 3.0%
Sublette County, Pollution
Control RB, Exxon Project (A)
3.700%, 12/01/99 7,800 7,800
Uinta County, Pollution Control
RB, Chevron USA Project (A)
3.600%, 12/01/99 6,600 6,600
Wyoming Lincoln County, TECP
3.750%, 01/19/00 17,650 17,650
----------
32,050
----------
TOTAL MUNICIPAL BONDS
(Cost $973,626) 973,626
----------
13
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-FREE MONEY MARKET FUND (CONCLUDED)
DESCRIPTION PAR (000) VALUE (000)
TAX-EXEMPT MUNICIPAL TRUST CERTIFICATES -- 1.0%
ABN Amro Munitops Certificate
3.350%, 12/06/06 $10,000 $ 10,000
-------------
TOTAL TAX-EXEMPT MUNICIPAL
TRUST CERTIFICATES
(Cost $10,000) 10,000
-------------
CASH EQUIVALENT -- 0.3%
Clipper Caraval Tax-Exempt Trust,
Series 1998-1, Class A-1, AMBAC
3.250%, 01/06/00 3,039 3,039
-------------
TOTAL CASH EQUIVALENT
(Cost $3,039) 3,039
-------------
REPURCHASE AGREEMENT -- 5.6%
Prudential
5.670%, dated 11/30/99, matures
12/01/99, repurchase price
$59,480,238 (collateralized by
U.S. Treasury Instruments:
total market value
$60,209,808) (C) 59,471 59,471
-------------
TOTAL REPURCHASE AGREEMENT
(Cost $59,471) 59,471
-------------
TOTAL INVESTMENTS -- 98.9%
(Cost $1,046,136) 1,046,136
-------------
OTHER ASSETS AND LIABILITIES, NET -- 1.1% 11,927
-------------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 1,058,176,699 outstanding
shares of beneficial interest 1,058,177
Accumulated Net Realized Loss
on Investments (114)
-------------
TOTAL NET ASSETS -- 100.0% $1,058,063
=============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
=============
(A) Variable Rate Security. The rate reported on the Statement of Net Assets is
the rate in effect on November 30, 1999. The date shown is the next
scheduled reset date.
(B) Put, demand or pre-refund feature exists requiring the issuer to repurchase
the instrument prior to maturity. The date shown is the lesser of the put,
demand or pre-refund date.
(C) Tri-Party Repurchase Agreement
AMT -- Alternative Minimum Tax
BAN -- Bond Anticipation Not
COP -- Certificate of Participation
GO -- General Obligation Bond
LOC -- Securities are held in connection with a letter of credit issued by a
major commercial bank or other financial institution.
RB -- Revenue Bond
TECP -- Tax Exempt Commercial Paper
TRAN -- Tax and Revenue Anticipation Note
The following organizations have provided underlying credit support for the
securities as set forth in the Statement of Net Assets.
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
GOA -- General Obligation of Authority
GOI -- General Obligation of Institution
MBIA -- Municipal Bond Insurance Association
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14
<PAGE>
BOSTON 1784 FUNDS
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
[pie chart omitted]
plot points follows:
U.S. Treasury Obligations 14%
U.S. Government Agency Obligations 32%
Cash Equivalents 54%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION PAR (000) VALUE (000)
U.S. TREASURY OBLIGATIONS -- 14.3%
U.S. Treasury Bills (A)
4.620%, 12/23/99 $ 5,000 $ 4,986
5.204%, 01/20/00 5,000 4,964
4.856%, 02/03/00 5,000 4,958
5.030%, 02/17/00 5,000 4,947
4.877%, 03/02/00 2,500 2,469
4.887%, 03/09/00 2,500 2,466
U.S. Treasury Notes
5.375%, 01/31/00 2,500 2,503
5.500%, 03/31/00 14,000 14,027
5.500%, 05/31/00 5,000 5,000
5.375%, 06/30/00 5,000 5,002
5.375%, 07/31/00 4,000 4,002
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $55,324) 55,324
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 31.6%
Federal Farm Credit Bank MTN (B)
5.855%, 12/07/99 5,000 4,999
Federal Home Loan Bank
5.000%, 12/29/99 5,000 5,000
5.100%, 03/09/00 5,000 5,000
5.742%, 04/14/00 5,000 4,895
5.350%, 06/08/00 4,000 3,998
DESCRIPTION PAR (000) VALUE (000)
Federal Home Loan Bank (A)
5.880%, 07/28/00 $ 5,000 $ 5,000
Federal Home Loan Bank (B)
5.895%, 12/07/99 5,000 5,000
Federal Home Loan Mortgage
Corporation (A)
5.310%, 12/10/99 4,000 3,995
5.592%, 02/01/00 10,000 9,906
5.516%, 06/06/00 2,815 2,738
Federal National Mortgage
Association (A)
5.336%, 12/02/99 15,000 14,998
5.336%, 12/08/99 10,000 9,990
5.292%, 12/13/99 5,000 4,991
5.240%, 12/17/99 5,000 4,988
5.619%, 01/20/00 5,000 4,962
5.586%, 02/07/00 5,000 4,949
5.663%, 02/14/00 5,000 4,942
Student Loan Marketing
Association (B)
5.615%, 03/07/01 3,950 3,938
5.835%, 03/12/01 10,000 9,996
5.835%, 05/18/01 4,000 3,999
Student Loan Marketing
Association MTN (A)
6.005%, 08/03/00 4,000 3,999
----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $122,283) 122,283
----------
REPURCHASE AGREEMENTS -- 54.3%
Dean Witter
5.650%, dated 11/30/99, matures
12/01/99, repurchase price
$50,007,740 (collateralized by
U.S. Treasury Instruments:
total market value
$51,000,075) (C) 50,000 50,000
Goldman
5.630%, dated 11/30/99, matures
12/01/99, repurchase price
$10,001,542 (collateralized by
U.S. Treasury Instruments:
total market value
$10,200,042) (C) 10,000 10,000
15
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 U.S. TREASURY MONEY MARKET FUND (CONCLUDED)
DESCRIPTION PAR (000) VALUE (000)
Repurchase Agreements (continued)
Greenwich
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$50,007,753 (collateralized by
U.S. Treasury Instruments:
total market value
$51,000,084) (C) $50,000 $ 50,000
Hsbc Dvp
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$10,001,551 (collateralized by
U.S. Treasury Instruments:
total market value
$10,216,760) (C) 10,000 10,000
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$70,075,865 (collateralized by
U.S. Treasury Instruments:
total market value
$71,466,324) (C) 70,065 70,065
Lehman
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$10,001,551 (collateralized by
U.S. Treasury Instruments:
total market value
$10,200,004) (C) 10,000 10,000
Prudential
5.670%, dated 11/30/99, matures
12/01/99, repurchase price
$10,001,553 (collateralized by
U.S. Treasury Instruments:
total market value
$10,124,230) (C) 10,000 10,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $210,065) 210,065
----------
VALUE (000)
TOTAL INVESTMENTS -- 100.2%
(Cost $387,672) $387,672
----------
OTHER ASSETS AND LIABILITIES,
NET -- (0.2%) (588)
----------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 387,076,037 outstanding
shares of beneficial interest 387,076
Accumulated Net Realized Gain
on Investments 8
----------
TOTAL NET ASSETS -- 100.0% $387,084
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
==========
(A) The rate reported on the Statement of Net Assets is the effective yield as
of November 30, 1999.
(B) Variable Rate Security. The rate reported on the Statement of Net Assets is
the rate in effect on November 30, 1999. The date shown is the next
scheduled reset date.
(C) Tri-Party Repurchase Agreement
MTN -- Medium Term Note
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
BOSTON 1784 FUNDS
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
Boston 1784 Prime Money Market Fund
- --------------------------------------------------------------------------------
[pie chart omitted]
plot points follows:
U.S. Government Agency Obligations 21%
Cash Equivalents 13%
Commercial Paper 32%
Municipal Bonds 15%
Corporate Bonds 19%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION PAR (000) VALUE (000)
COMMERCIAL PAPER -- 32.1%
COMMUNICATIONS EQUIPMENT -- 3.6%
Motorola (A)
5.525%, 12/16/99 $ 6,000 $ 5,986
----------
Drugs -- 2.9%
PFIZER
5.701%, 12/29/99 5,000 4,978
----------
FINANCIAL SERVICES -- 7.6%
BMW US Capital (A)
5.480%, 12/17/99 5,000 4,988
First Union National Bank (A)
5.569%, 11/24/00 3,000 2,999
National Rural Utilities (A)
5.491%, 12/14/99 5,000 4,990
----------
12,977
----------
FOOD, BEVERAGE & TOBACCO -- 4.5%
Campbell Soup (A)
5.323%, 12/15/99 5,000 4,990
Heinz H J (A)
5.324%, 12/02/99 2,700 2,700
----------
7,690
----------
DESCRIPTION PAR (000) VALUE (000)
LEASING & RENTING -- 1.8%
International Lease (A)
5.862%, 02/18/00 $ 3,050 $ 3,011
----------
MUNICIPALS -- 3.0%
New York City
5.500%, 12/01/99 1,350 1,350
5.500%, 12/02/99 1,800 1,800
6.100%, 02/23/00 2,000 2,000
----------
5,150
----------
PETROLEUM REFINING -- 2.9%
Koch Industries (A)
5.701%, 12/01/99 5,000 5,000
----------
RETAIL -- 2.9%
Wal-Mart (A)
5.328%, 12/16/99 5,000 4,989
----------
TELEPHONES & TELECOMMUNICATIONS -- 2.9%
SBC Communications (A)
5.483%, 12/16/99 5,000 4,989
----------
TOTAL COMMERCIAL PAPER
(Cost $54,770) 54,770
----------
CORPORATE BONDS -- 19.4%
Abbey National Treasury
5.701%, 12/01/99 5,000 5,000
American General
8.000%, 02/15/00 1,540 1,546
Associates Corporation of
North America
5.250%, 03/30/00 1,180 1,179
CIT Group, MTN
6.800%, 04/17/00 2,000 2,011
Fifth Third Bank
5.980%, 01/28/00 3,000 3,000
Ford Motor Credit
6.375%, 04/15/00 750 753
General Electric Capital, MTN
5.840%, 03/30/00 400 400
General Motors Acceptance
5.850%, 02/01/00 500 500
General Motors Acceptance, MTN
7.500%, 06/09/00 1,500 1,512
17
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 PRIME MONEY MARKET FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
CORPORATE BONDS (CONTINUED)
Household Finance, MTN
6.000%, 05/08/00 $ 3,000 $ 3,003
International Business Machines
6.375%, 06/15/00 2,500 2,509
Morgan JP
6.125%, 10/02/00 500 500
Norwest Financial
6.000%, 03/15/00 2,755 2,761
PepsiCo, MTN
5.875%, 06/01/00 400 400
Sears Roebuck Acceptance
5.880%, 05/08/00 5,000 4,997
Walt Disney, MTN
5.600%, 01/13/00 3,000 3,001
----------
TOTAL CORPORATE BONDS
(Cost $33,072) 33,072
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 20.5%
Federal Home Loan Bank
5.100%, 03/09/00 5,000 5,000
5.100%, 05/17/00 2,500 2,498
Federal Home Loan Bank (A)
5.905%, 01/28/00 8,500 8,499
Federal Home Loan Mortgage
Corporation
5.611%, 12/01/99 5,000 5,000
Federal National Mortgage
Association, MTN
5.000%, 05/04/00 5,000 4,997
Student Loan Marketing
Association (A)
5.835%, 05/18/01 5,000 4,998
Student Loan Marketing
Association, MTN (A)
6.005%, 08/03/00 4,000 3,999
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $34,991) 34,991
----------
TAXABLE MUNICIPAL BONDS -- 15.4%
Barton Healthcare (B)
5.750%, 12/01/99 900 900
Catholic Health Initiatives (B)
5.700%, 12/01/99 1,000 1,000
DESCRIPTION PAR (000) VALUE (000)
Community Health System,
LOC (B)
5.650%, 12/01/99 $ 800 $ 800
Florida Housing Financing
Agency RB, MBIA (A)
6.000%, 12/01/99 2,500 2,499
Kit Carson County, Colorado
Agricultural Development
RB, LOC (B)
5.750%, 12/01/99 2,000 2,000
Los Angeles, California
Community Redevelopment
Agency RB, FSA (B)
5.700%, 12/01/99 5,000 5,000
Maryland State Health & Higher
Education Facilities RB,
Series B, LOC (B)
5.650%, 12/01/99 2,300 2,300
Maryland State Health & Higher
Education RB, LOC (B)
5.700%,12/02/99 4,100 4,100
Olathe, Kansas Industrial RB,
LOC (B)
5.600%, 12/02/99 4,000 4,000
Union County, Arkansas Industrial
RB, LOC (B)
5.750%, 12/01/99 3,000 3,000
Waterford, Wisconsin Industrial
RB, LOC (A)
5.750%, 12/01/99 775 775
----------
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $26,374) 26,374
----------
REPURCHASE AGREEMENT -- 12.6%
Prudential
5.670%, dated 11/30/99, matures
12/01/99, repurchase price
$21,517,342 (collateralized by
U.S. Treasury Instruments:
total market value
$21,781,268) (C) 21,514 21,514
----------
TOTAL REPURCHASE AGREEMENT
(Cost $21,514) 21,514
----------
18
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
TOTAL INVESTMENTS -- 100.0%
(Cost $170,721) $170,721
----------
OTHER ASSETS AND LIABILITIES, NET -- 0.0% 55
----------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 170,783,279 outstanding
shares of beneficial interest 170,766
Distributions in Excess of Net Investment
Income 34
Accumulated Net Realized Loss on Investments (24)
----------
TOTAL NET ASSETS -- 100.0% $170,776
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $1.00
==========
(A) The rate reported on the Statement of Net Assets is the effective yield as
of November 30, 1999.
(B) Variable Rate Security. The rate reported on the Statement of Net Assets is
the rate in effect as of November 30, 1999. The date shown is the next
scheduled reset date.
(C) Tri-Party Repurchase Agreement
LOC -- Securities are held in connection with a letter of credit issued by a
major commercial bank or other financial institution.
MBIA -- Municipal Bond Insurance Association
MTN -- Medium Term Note
RB -- Revenue Bonds
The following organizations have provided underlying credit support for a
security listed above.
FGIC -- Financial Guaranty Insurance Corporation
FSA -- Financial Security Assurance
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
19
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 SHORT-TERM INCOME FUND
- --------------------------------------------------------------------------------
[pie chart omitted}
plot points follows:
U.S. Treasury Obligations 14%
Cash Equivalents 8%
Taxable Municipal Bonds 5%
Asset-Backed Securities 18%
U.S. Government Mortgage-Backed
Bonds 1%
Corporate Bonds 42%
U.S. Government Agency Obligations 12%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION PAR (000) VALUE (000)
U.S. TREASURY OBLIGATIONS -- 14.3%
U.S. Treasury Bond
5.500%, 03/31/03 $ 2,000 $ 1,964
U.S. Treasury Notes
7.125%, 02/29/00 1,200 1,205
6.250%, 04/30/01 5,500 5,523
6.375%, 09/30/01 6,000 6,037
6.250%, 01/31/02 2,000 2,009
6.625%, 03/31/02 2,000 2,025
7.250%, 08/15/04 2,000 2,086
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $21,044) 20,849
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 11.8%
Federal Home Loan Bank
5.875%, 09/17/01 5,000 4,966
5.250%, 04/25/02 5,500 5,368
Federal Home Loan Mortgage Corporation
5.000%, 02/15/01 5,000 4,934
Federal National Mortgage Association
5.750%, 04/15/03 2,000 1,954
----------
DESCRIPTION PAR (000) VALUE (000)
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $17,391) $ 17,222
----------
U.S. GOVERNMENT MORTGAGE-BACKED BONDS -- 0.7%
Federal Deposit Insurance
Corporation, REMIC
6.750%, 05/25/26 $ 574 568
Federal Home Loan Mortgage
Corporation
8.000%, 01/01/02 113 115
Federal National Mortgage
Association, REMIC
8.950%, 05/25/03 354 362
----------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED BONDS
(Cost $1,051) 1,045
----------
TAXABLE MUNICIPAL BONDS -- 5.3%
Carondelet, California, Health Systems
RB, Daniel Freeman Hospitals,
MBIA
6.250%, 07/01/01 4,000 3,975
New York State Dormitory
Authority RB
6.550%, 04/01/00 2,500 2,496
Pennsylvania State Housing
Finance Agency RB, FHA
7.000%, 10/01/06 1,235 1,220
----------
TOTAL TAXABLE MUNICIPAL BONDS
(Cost $7,734) 7,691
----------
NON-AGENCY MORTGAGE-BACKED OBLIGATION -- 0.0%
Prudential Home Mortgage
Securities, Series 1993-31,
Class A7
6.000%, 08/25/00 9 9
----------
TOTAL NON-AGENCY MORTGAGE-BACKED
OBLIGATION
(Cost $9) 9
----------
20
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
BOSTON 1784 SHORT-TERM INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
ASSET-BACKED SECURITIES -- 18.2%
Auto Leasing Investors,
Series 1997, Class A-2
5.926%, 08/14/00 $ 5,000 $ 4,995
CIT RV Owners Trust, Series 1995-A,
Class A
6.250%, 01/15/11 169 169
Citibank Credit Card Trust I
5.500%, 02/15/06 5,000 4,749
Crown Home Equity Loan Trust,
Series 1996-1, Class A3
6.810%, 06/25/11 2,000 1,938
Discover Card, Series 1998-4A, Class A
5.750%, 10/16/03 895 885
Centrex Auto Trust, Series 1996-A,
Class A
6.750%, 10/15/04 465 467
Fleetwood Credit Grantor Trust,
Series 1995-B, Class A
6.550%, 05/16/11 492 489
Green Tree Recreational,
Equipment & Consumer Trust,
Series 1996-A, Class A1
5.550%, 02/15/18 195 194
MBNA Master Credit Card Trust,
Series 1995-D, Class A
6.050%, 11/15/02 1,500 1,498
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%, 07/15/02 132 132
Sears Credit Account Master
Trust, Series 1996-4, Class A
6.450%, 10/16/06 1,000 994
University Support Services,
Series 1993-A, Class B (A)
7.800%, 12/20/99 35 36
WFS Financial Owner Trust,
Series 1997-C, Class A4
6.150%, 09/20/02 5,000 4,993
----------
TOTAL ASSET-BACKED SECURITIES
(Cost $26,857) 26,452
----------
DESCRIPTION PAR (000) VALUE (000)
CORPORATE BONDS -- 41.9%
CHEMICALS -- 3.4%
Praxair
6.700%, 04/15/01 $ 5,000 $ 4,962
----------
FINANCIAL SERVICES -- 28.3%
Aristar
6.000%, 05/15/02 5,000 4,876
Associates Corporation of
North America
5.750%, 11/01/03 5,000 4,794
CIT Group Holdings
6.500%, 06/14/02 4,000 3,965
Equitable Companies
Installment Bond
6.750%, 12/01/00 780 784
Finova Capital
6.500%, 07/28/02 5,000 4,919
Ford Motor Credit
6.000%, 01/14/03 5,000 4,869
General Motors Acceptance
7.875%, 03/07/01 2,000 2,027
GMAC MTN
5.480%, 12/16/02 5,000 4,806
Heller Financial
6.460%, 10/27/00 5,000 5,016
Salomon Smith Barney Holdings
7.500%, 05/01/02 5,000 5,062
----------
41,118
----------
FOOD, BEVERAGE & TOBACCO -- 3.4%
Campbell Soup
6.150%, 12/01/02 5,000 4,925
----------
INDUSTRIAL -- 3.4%
McKesson
6.600%, 03/01/00 5,000 5,000
----------
RETAIL -- 3.4%
Wal-Mart Stores
6.150%, 08/10/01 5,000 4,981
----------
TOTAL CORPORATE BONDS
(Cost $61,898) 60,986
----------
21
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 SHORT-TERM INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
REPURCHASE AGREEMENT -- 8.5%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$12,404,923 (collateralized by
U.S. Treasury Instruments:
total market value
$12,651,064) (B) $12,403 $ 12,403
----------
TOTAL REPURCHASE AGREEMENT
(Cost $12,403) 12,403
----------
TOTAL INVESTMENTS -- 100.7%
(Cost $148,387) 146,657
----------
OTHER ASSETS AND LIABILITIES, NET -- (0.7%) (994)
----------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 14,693,137 outstanding
shares of beneficial interest 159,713
Undistributed Net Investment Income 12
Accumulated Net Realized Loss on Investments (12,332)
Net Unrealized Depreciation on Investments (1,730)
----------
TOTAL NET ASSETS-- 100.0% $145,663
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.91
==========
(A) Variable Rate Security. The rate reported on the Statement of Net Assets is
the rate in effect on November 30, 1999. The date shown is the next
scheduled reset date.
(B) Tri-Party Repurchase Agreement
MTN -- Medium Term Note
RB -- Revenue Bond
REMIC -- Real Estate Mortgage Investment Conduit
The following organizations have provided underlying credit support for th
securities as set forth in the Statement of Net Assets.
FHA -- Federal Housing Administration
MBIA -- Municipal Bond Insurance Association
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
<PAGE>
BOSTON 1784 FUNDS
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 INCOME FUND
- --------------------------------------------------------------------------------
[pie chart omitted]
plot points follows:
U.S. Treasury Obligations 24%
Yankee Bonds 3%
Cash Equivalents 6%
Asset-Backed Securities 3%
U.S. Government Agency Obligations 10%
Corporate Bonds 24%
U.S. Agency Mortgage-Backed Obligations 27%
Non-Agency Mortgage-Backed Obligations 3%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION PAR (000) VALUE (000)
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 9.8%
Fannie Mae MTN (A)
4.990%, 08/15/01 $ 4,000 $ 3,610
Federal Home Loan Bank
5.250%, 04/25/02 1,000 976
5.125%, 09/15/03 1,070 1,019
5.800%, 09/02/08 6,000 5,608
Federal Home Loan Mortgage
Corporation
8.530%, 02/02/05 5,000 5,018
Federal National Mortgage
Association
5.750%, 04/15/03 475 464
5.750%, 06/15/05 10,000 9,602
6.250%, 05/15/29 5,700 5,173
Federal National Mortgage
Association
6.375%, 06/15/09 1,000 970
----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $33,979) 32,440
----------
DESCRIPTION PAR (000) VALUE (000)
U.S. TREASURY OBLIGATIONS -- 23.5%
U.S. Treasury Bonds
8.125%, 08/15/19 $ 5,000 $ 5,824
7.875%, 02/15/21 4,260 4,872
8.000%, 11/15/21 8,750 10,165
6.000%, 02/15/26 700 656
5.250%, 11/15/28 20,785 17,543
5.250%, 02/15/29 4,050 3,435
U.S. Treasury Notes
6.250%, 10/31/01 8,605 8,643
5.500%, 02/28/03 1,000 983
5.500%, 05/31/03 80 78
5.750%, 08/15/03 1,030 1,017
6.500%, 08/15/05 3,250 3,292
6.875%, 05/15/06 4,750 4,899
7.000%, 07/15/06 2,215 2,301
6.500%, 10/15/06 5,000 5,060
6.000%, 08/15/09 5,580 5,507
6.125%, 08/15/29 2,000 1,960
U.S. Treasury STRIPS (A)
10.824%, 02/15/19 5,000 1,418
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $80,387) 77,653
----------
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS -- 27.2%
Federal Home Loan Mortgage
Corporation
7.750%, 09/01/05 447 455
5.750%, 03/15/09 3,500 3,246
6.000%, 11/01/28 17,213 15,983
Federal National Mortgage
Association
6.000%, 05/15/08 5,100 4,844
6.500%, 05/01/11 2,899 2,835
6.000%, 03/01/13 849 812
6.000%, 04/01/13 831 796
6.000%, 05/01/13 1,791 1,714
6.000%, 06/01/13 9,575 9,162
6.000%, 06/01/13 1,690 1,618
6.500%, 06/01/28 4,360 4,158
8.000%, 11/01/29 9,800 9,938
Federal National Mortgage
Association, REMIC
7.000%, 09/18/14 5,000 4,820
6.000%, 12/25/16 1,464 1,378
23
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS (CONTINUED)
Government National Mortgage Association
7.000%, 10/15/23 $ 1,097 $ 1,072
8.000%, 06/15/25 107 109
8.000%, 10/15/25 208 212
8.000%, 01/15/26 78 80
8.000%, 02/15/26 109 111
7.500%, 04/15/26 2,558 2,555
8.000%, 05/15/26 43 44
8.000%, 05/15/26 91 93
7.000%, 06/15/26 4,491 4,392
8.000%, 06/15/26 364 371
7.500%, 02/15/27 50 50
8.000%, 03/15/27 1,015 1,034
6.500%, 05/15/28 8,427 8,019
6.500%, 06/15/28 9,416 8,960
6.500%, 06/15/28 966 919
----------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS
(Cost $92,668) 89,780
----------
ASSET-BACKED SECURITIES -- 3.0%
Citibank Credit, Series 1999-7,
Class A
6.650%, 11/15/06 3,295 3,264
Fleetwood Credit Grantor Trust,
Series 1995-B, Class A
6.550%, 05/16/11 739 734
Ford Credit Auto Owner Trust,
Series 1999-D, Class A
6.520%, 09/15/03 3,000 2,993
MBNA Master Credit Card
Trust, Series 1999-M, Class A
6.600%, 04/16/07 3,000 2,974
----------
TOTAL ASSET-BACKED SECURITIES
(Cost $10,026) 9,965
----------
NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS -- 3.0%
AFC Home Equity Loan Trust,
Series 1996-3, Class 1A4
7.540%, 12/25/27 2,636 2,670
DESCRIPTION PAR (000) VALUE (000)
General Motors Acceptance,
Series 1999-C3, Class A1A
6.974%, 07/15/32 $ 991 $ 985
Merrill Lynch Mortgage Investors,
Series 1989-H, Class B (B)
10.000%, 01/15/10 2,443 2,443
Oakwood Mortgage Investors,
Series 1995-B, Class A3
6.900%, 01/15/21 4,040 3,897
----------
TOTAL NON-AGENCY MORTGAGE-
BACKED OBLIGATIONS
(Cost $10,269) 9,995
----------
CORPORATE BONDS -- 24.2%
AUTOMOTIVE -- 1.5%
DaimlerChrysler
7.200%, 09/01/09 5,000 5,006
----------
BROADCASTING, NEWSPAPERS
& ADVERTISING -- 1.1%
Outdoor Systems
8.875%, 06/15/07 3,500 3,605
----------
COMMUNICATIONS EQUIPMENT -- 0.3%
Lucent Technologies
5.500%, 11/15/08 1,000 903
----------
ENTERTAINMENT -- 1.8%
Time Warner Entertainment
10.150%, 05/01/12 4,965 5,939
----------
FINANCIAL SERVICES -- 6.6%
Aristar
7.250%, 06/15/06 805 785
Dime Bancorp
7.000%, 07/25/01 3,000 2,981
First USA Bank
7.650%, 08/01/03 3,525 3,569
Ford Motor Credit
7.375%, 10/28/09 6,395 6,435
US West Capital Funding
6.875%, 08/15/01 3,400 3,392
JP Morgan
6.000%, 01/15/09 5,000 4,556
----------
21,718
----------
24
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
INDUSTRIAL -- 7.0%
American Home Products
7.700%, 02/15/00 $ 3,190 $ 3,202
Burlington North
9.250%, 10/01/06 5,070 5,488
Dupont Ei Nemour
6.875%, 10/15/09 4,000 3,935
Fort James
6.875%, 09/15/07 4,000 3,825
Fortune Brands
6.250%, 04/01/08 3,600 3,402
Mckesson
6.300%, 03/01/05 700 640
Northrop Grumman
7.000%, 03/01/06 2,750 2,654
----------
23,146
----------
PETROLEUM & FUEL PRODUCTS -- 1.4%
Atlantic Richfield
5.900%, 04/15/09 1,900 1,727
Enron Oil & Gas
6.000%, 12/15/08 3,380 3,044
----------
4,771
----------
RETAIL -- 1.0%
Staples
7.125%, 08/15/07 3,300 3,205
----------
UTILITIES -- 3.5%
AT&T
6.000%, 03/15/09 3,300 3,040
Cable and Wireless Communications
6.625%, 03/06/05 600 599
MCI Worldcom
6.125%, 04/15/02 1,875 1,840
National Rural Utilities
5.750%, 11/01/08 3,940 3,556
Sprint Capital
6.900%, 05/01/19 2,500 2,315
----------
11,350
----------
TOTAL CORPORATE BONDS
(Cost $82,650) 79,643
----------
YANKEE BONDS -- 3.2%
Hydro-Quebec
8.625%, 05/20/02 3,395 3,519
DESCRIPTION PAR (000) VALUE (000)
Province of Ontario
7.375%, 01/27/03 $ 3,395 $ 3,450
Trans-Canada Pipelines
9.125%, 04/20/06 3,340 3,591
----------
TOTAL YANKEE BONDS
(Cost $10,864) 10,560
----------
REPURCHASE AGREEMENT -- 6.5%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$21,542,340 (collateralized by
U.S. Treasury Instruments:
total market value
$21,969,787) (C) 21,539 21,539
----------
TOTAL REPURCHASE AGREEMENT
(Cost $21,539) 21,539
----------
TOTAL INVESTMENTS -- 100.4%
(Cost $342,382) 331,575
----------
OTHER ASSETS AND LIABILITIES, NET -- (0.4%) (1,310)
----------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 34,393,315 outstanding
shares of beneficial interest 346,721
Undistributed Net Investment Income 313
Accumulated Net Realized Gain on Investments (5,962)
Net Unrealized Depreciation on Investments (10,807)
----------
TOTAL NET ASSETS -- 100.0% $330,265
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.60
==========
(A) Zero Coupon Security. The rate reported on the Statement of Net Assets is
the effective yield as of November 30,1999.
(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 institutions.
(C) Tri-Party Repurchase Agreement
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.
25
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
- --------------------------------------------------------------------------------
[pie chart omitted]
plot points follows:
U.S. Treasury Obligations 32%
Cash Equivalents 4%
U.S. Government Mortgage-Backed Bonds 17%
U.S. Government Guaranteed Securities 6%
U.S. Government Agency Obligations 41%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION PAR (000) VALUE (000)
U.S. TREASURY OBLIGATIONS -- 31.8%
U.S. Treasury Bonds
11.250%, 02/15/15 $ 700 $ 1,005
6.000%, 02/15/26 6,100 5,714
5.250%, 11/15/28 2,800 2,363
5.250%, 02/15/29 3,000 2,544
U.S. Treasury Notes
6.375%, 05/15/00 8,400 8,429
8.000%, 05/15/01 2,000 2,056
6.625%, 07/31/01 463 468
5.625%, 09/30/01 1,000 993
6.250%, 10/31/01 5,500 5,524
7.500%, 11/15/01 1,600 1,643
6.250%, 01/31/02 2,000 2,009
6.000%, 07/31/02 1,000 999
5.500%, 02/28/03 15,000 14,741
5.500%, 05/31/03 19,420 19,046
5.250%, 08/15/03 2,000 1,943
5.875%, 11/15/05 2,000 1,969
7.000%, 07/15/06 7,800 8,103
6.250%, 02/15/07 770 769
6.625%, 05/15/07 500 510
6.125%, 08/15/07 2,000 1,980
DESCRIPTION PAR (000) VALUE (000)
U.S. Treasury STRIPS (A)
10.390%, 08/15/10 $ 1,000 $ 498
10.824%, 02/15/19 3,000 851
12.269%, 05/15/20 5,000 1,309
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $88,026) 85,466
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 41.0%
Agency of Housing and Urban
Development, Series 1995-A
8.240%, 08/01/02 2,000 2,072
Agency of Housing and Urban
Development, Series 1997-A
6.210%, 08/01/01 4,000 3,998
6.360%, 08/01/04 5,500 5,435
Federal Farm Credit Bank
7.350%, 03/24/05 350 361
Federal Farm Credit Bank (B)
5.835%, 12/07/99 10,000 9,961
Federal Home Loan Bank
5.500%, 04/14/00 5,000 4,991
5.250%, 04/25/02 5,000 4,880
6.580%, 01/07/03 3,000 2,987
7.660%, 07/20/04 350 365
Federal Home Loan Bank (B)
5.895%, 12/07/99 7,000 6,980
Federal Home Loan Mortgage
Corporation
5.750%, 07/15/03 3,500 3,413
7.000%, 07/15/03 178 179
7.000%, 10/01/03 54 55
8.530%, 02/02/05 1,000 1,004
7.340%, 11/03/06 1,000 1,000
Federal National Mortgage
Association
5.750%, 04/15/03 12,400 12,118
5.125%, 02/13/04 805 762
6.580%, 03/01/06 1,000 957
8.000%, 07/01/07 171 175
6.000%, 05/15/08 5,250 4,986
6.500%, 05/01/11 1,449 1,417
7.785%, 02/01/19 4,767 5,145
10.000%, 10/01/20 1,366 1,472
10.000%, 12/01/20 1,733 1,867
26
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)
Federal National Mortgage
Association (A)
6.375%, 06/15/09 $10,000 $ 9,705
Federal National Mortgage
Association MTN (A)
4.990%, 08/15/01 4,000 3,610
Private Export Funding
Corporation
5.500%, 03/15/01 2,500 2,475
6.310%, 09/30/04 5,000 4,875
6.620%, 10/01/05 1,740 1,718
7.110%, 04/15/07 3,800 3,861
Student Loan Marketing
Association (B)
5.835%, 12/07/99 6,000 5,977
Tennessee Valley Authority
Principal STRIPS (A)
7.813%, 04/15/42 4,000 1,509
----------
TOTAL U.S. GOVERNMENT AGENCY
Obligations
(Cost $111,594) 110,310
----------
U.S. GOVERNMENT MORTGAGE-BACKED BONDS -- 16.7%
Federal Deposit Insurance Corporation
REMIC, Series 1996 C-1, Class 1-A
6.750%, 05/25/26 1,436 1,419
Federal Home Loan Mortgage
Corporation Gold
7.000%, 12/01/10 1,079 1,076
Federal Home Loan Mortgage
Corporation REMIC,
Series 1663 Class AD
6.750%, 02/15/20 1,080 1,049
Federal National Mortgage
Association
6.000%, 04/01/13 9,983 9,553
6.000%, 06/01/13 132 127
8.000%, 11/01/29 7,795 7,905
Government National Mortgage
Association, Pool #4216
8.500%, 10/15/04 34 36
8.500%, 01/15/06 50 52
9.000%, 11/15/17 706 752
7.000%, 10/15/23 663 649
7.500%, 02/15/27 1,320 1,318
6.500%, 03/15/29 19,464 18,522
DESCRIPTION PAR (000) VALUE (000)
Student Loan Marketing Association,
Series 1997-2, Class A1 (B)
5.895%, 12/07/99 $ 2,529 $ 2,514
----------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED BONDS
(Cost $46,297) 44,972
----------
U.S. GOVERNMENT GUARANTEED BONDS -- 6.1%
Global Industries
7.250%, 07/15/22 11,340 11,409
Secunda Atlantic Title XI
6.695%, 04/01/18 3,762 3,567
Sulphur Carriers
8.300%, 10/15/09 1,196 1,263
----------
TOTAL U.S. GOVERNMENT GUARANTEED BONDS
(Cost $16,009) 16,239
----------
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS -- 0.0%
Ryland Acceptance Four, Series 32,
Class B
8.600%, 05/01/16 4 5
----------
TOTAL NON-AGENCY MORTGAGE-BACKED
OBLIGATIONS
(Cost $5) 5
----------
REPURCHASE AGREEMENT -- 3.6%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$9,543,480 (collateralized by
U.S. Treasury Instruments:
total market value
$9,732,843) (C) 9,542 9,542
----------
TOTAL REPURCHASE AGREEMENT
(Cost $9,542) 9,542
----------
TOTAL INVESTMENTS -- 99.2%
(Cost $271,473) 266,534
----------
OTHER ASSETS AND LIABILITIES, NET -- 0.8% 2,276
----------
27
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 28,997,446 outstanding
shares of beneficial interest $ 280,727
Undistributed Net Investment Income (408)
Accumulated Net Realized Loss on Investments (6,570)
Net Unrealized Depreciation on Investments (4,939)
----------
TOTAL NET ASSETS-- 100.0% $268,810
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.27
==========
(A) Zero Coupon Security. The rate reported on the Statement of Net Assets is
the effective yield as of November 30, 1999.
(B) Variable Rate Security. The rate reported on the Statement of Net Assets is
the rate in effect on November 30, 1999. The date shown is the next
scheduled reset date.
(C) Tri-Party Repurchase Agreement
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.
28
<PAGE>
BOSTON 1784 FUNDS
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND
- --------------------------------------------------------------------------------
[pie chart omitted]
plot points follows:
Health Care Bonds 4%
Cash Equivalents 3%
Transportation Bonds 9%
General Obligation Bonds 32%
Industrial Development & Pollution
Control Bonds 1%
Utility Bonds 26%
Public Facility Bonds 2%
Education Bonds 4%
Housing Bonds 9%
Resource Recovery Bonds 2%
Other Revenue Bonds 8%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION PAR (000) VALUE (000)
MUNICIPAL BONDS -- 95.1%
ALABAMA -- 0.7%
Alabama State Housing Finance
Authority RB, Series D-1, GNMA
6.000%, 10/01/16 $ 905 $ 915
Alabama State Water Pollution
Control Authority RB, AMBAC
5.000%, 02/15/13 1,500 1,425
----------
2,340
----------
ARKANSAS -- 0.3%
Arkansas State GO
5.000%, 06/01/15 1,000 925
----------
CALIFORNIA -- 2.9%
Burbank, Wastewater Treatment
RB, Series A, FGIC
5.500%, 06/01/15 1,500 1,496
California State GO
5.500%, 02/01/10 1,500 1,554
California State GO, FGIC
5.250%, 10/01/10 2,000 2,032
California State Home Mortgage
RB, Series A, MBIA
5.850%, 08/01/16 2,000 2,012
DESCRIPTION PAR (000) VALUE (000)
California State Housing Finance
Agency RB, Home Mortgage,
MBIA
5.950%, 08/01/10 $ 1,830 $ 1,880
Los Angeles County, Metropolitan
Transportation Authority
RB, AMBAC
5.700%, 07/01/12 1,135 1,175
----------
10,149
----------
COLORADO -- 0.6%
Denver, Multi-Family Housing
RB, Section 8, Series A
5.350%, 10/01/12 2,000 1,930
----------
CONNECTICUT -- 1.0%
Connecticut State Residential
Recovery RB, MBIA
5.125%, 01/01/09 1,000 995
Connecticut State Health &
Education Facilities Authority
RB, Series D, GOI
6.750%, 07/01/12 1,250 1,317
Connecticut State Housing
Finance Authority RB,
Series A, GOA
6.100%, 05/15/17 1,000 1,015
----------
3,327
----------
DISTRICT OF COLUMBIA -- 2.2%
District of Columbia GO,
Series A, MBIA
5.000%, 06/01/15 2,500 2,278
Georgetown University RB,
Series A, MBIA
5.950%, 04/01/14 1,000 1,022
Washington Convention Center
Tax RB, AMBAC,
5.250%, 10/01/14 4,500 4,292
----------
7,592
----------
FLORIDA -- 1.6%
Dade County GO, Series EE, FGIC
5.625%, 10/01/14 2,560 2,579
29
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
FLORIDA (CONTINUED)
Florida State Board of Education
GO, Series E
5.700%, 06/01/14 $ 2,000 $ 2,020
Village Center Community,
Florida Utility RB
5.250%, 10/01/15 1,000 960
----------
5,559
----------
GEORGIA -- 3.3%
Georgia State GO, Series B
5.750%, 08/01/08 1,000 1,057
Georgia State GO, Series D
5.800%, 11/01/10 3,000 3,176
5.800%, 11/01/12 4,000 4,220
Georgia State Municipal Electric
Authority RB, MBIA
5.125%, 01/01/12 3,000 2,925
----------
11,378
----------
HAWAII -- 0.1%
Hawaii State GO, Series CR, MBIA
5.250%, 04/01/12 500 489
----------
ILLINOIS -- 1.3%
Chicago, O'Hare International
Airport RB, AMBAC
5.625%, 01/01/12 2,000 2,027
Illinois State GO
5.000%, 04/01/12 2,750 2,637
----------
4,664
----------
LOUISIANA -- 0.5%
Louisiana State GO, FSA
5.000%, 04/15/14 2,000 1,867
----------
MAINE -- 2.6%
Maine Municipal Bond Bank RB, FSA
5.250%, 11/01/08 1,705 1,733
5.150%, 11/01/13 1,250 1,203
Maine State Health & Higher
Educational Facilities Authority
RB, MBIA
5.000%, 07/01/11 1,680 1,638
4.750%, 07/01/13 1,500 1,359
DESCRIPTION PAR (000) VALUE (000)
Maine State Housing Authority
RB, Series C-1
5.700%, 11/15/15 $ 2,000 $ 1,970
Maine State Housing Authority
RB, Series F-1, HUD
5.125%, 11/15/15 1,300 1,198
----------
9,101
----------
MARYLAND -- 1.1%
Maryland State & Local
Facilities GO, 1st Series
5.000%, 03/01/10 1,500 1,492
Maryland State & Local
Facilities GO, 2nd Series
5.000%, 07/15/10 2,500 2,487
----------
3,979
----------
MASSACHUSETTS -- 11.8%
Holyoke GO, Series A, FSA
5.600%, 06/15/10 1,365 1,401
Massachusetts Bay Transportation
Authority RB, Series A, MBIA
5.500%, 03/01/12 1,290 1,314
Massachusetts State Bay
Transportation
Authority RB, Series C
5.500%, 03/01/08 1,000 1,032
Massachusetts State GO,
Series B, FGIC
5.000%, 06/01/09 2,200 2,186
Massachusetts State GO
5.750%, 08/01/09 3,650 3,833
5.250%, 08/01/14 2,500 2,425
Massachusetts State GO, AMBAC
5.000%, 08/01/14 2,500 2,359
Massachusetts State GO,
Series A
5.000%, 11/01/13 1,200 1,140
Massachusetts State GO,
Series B, FGIC
5.500%, 06/01/11 2,000 2,037
Massachusetts State GO,
Series D, AMBAC
4.500%, 11/01/15 3,000 2,572
30
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
MASSACHUSETTS (CONTINUED)
Massachusetts State Health &
Educational Facilities Authority RB,
Dana Farber Cancer Project,
Series G-1
6.250%, 12/01/08 $ 1,000 $ 1,040
Massachusetts State Health &
Educational Facilities Authority RB,
Eye & Ear Infirmary, Series B
5.250%, 07/01/11 1,000 981
Massachusetts State Health &
Educational Facilities Authority RB,
Harvard Pilgrim Health,
Series A, FSA
5.250%, 07/01/13 2,215 2,154
Massachusetts State Health &
Educational Facilities Authority RB,
Medical, Academic & Scientific
Project, Series A
6.250%, 01/01/05 1,060 1,116
Massachusetts State Health &
Educational Facilities Authority RB,
Suffolk University Project,
Series C, CONLEE
5.850%, 07/01/16 1,000 1,005
Massachusetts State Housing
Finance Agency RB,
Series A, MBIA
5.600%, 07/01/07 475 488
5.700%, 07/01/08 475 488
Massachusetts State Industrial
Finance Agency RB, College Issue,
CONLEE
5.875%, 07/01/11 1,090 1,139
Massachusetts State Industrial
Finance Agency RB, Resource
Recovery
4.950%, 12/01/06 1,710 1,622
Massachusetts State Industrial
Finance Agency RB, Resource
Recovery, Ogden Haverhill
Project, AMT
5.150%, 12/01/07 1,250 1,187
DESCRIPTION PAR (000) VALUE (000)
Massachusetts State Municipal
Wholesale Electric
Company RB, AMBAC
5.150%, 07/01/16 $ 2,000 $ 1,845
Massachusetts State Resource
Recovery Authority RB, Refusetech
Project, Series A
6.150%, 07/01/02 1,595 1,629
6.300%, 07/01/05 3,220 3,333
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System, Series C,
MBIA (A)
5.400%, 01/01/16 1,000 391
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System, Sub-Series B,
MBIA
5.250%, 01/01/17 1,000 940
Massachusetts State Turnpike
Authority RB, Series A
5.000%, 01/01/12 1,250 1,197
----------
40,854
----------
MICHIGAN -- 1.8%
Michigan State Building
Authority RB, Series I,
MBIA
4.750%, 10/15/13 3,250 2,978
Michigan State House of
Representatives COP, AMBAC
5.250%, 08/15/14 3,220 3,144
----------
6,122
----------
MINNESOTA -- 2.7%
Northern Minnesota State
Municipal Power Agency RB,
Electric System, FSA
5.250%, 01/01/12 2,490 2,471
Southern Minnesota State
Municipal Power Agency RB,
Power Supply Systems RB,
Series A, AMBAC
5.000%, 01/01/11 4,320 4,239
31
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
MINNESOTA (CONTINUED)
Southern Minnesota Municipal
Power Agency RB
5.000%, 01/01/13 $ 2,715 $ 2,610
----------
9,320
----------
MISSISSIPPI -- 0.3%
Mississippi State Capital
Imports GO, Series A
5.000%, 07/01/09 1,000 988
----------
MISSOURI -- 0.9%
St. Charles County, Public Water
Supply District #2 COP,
Series A, MBIA
5.500%, 12/01/14 3,000 2,966
----------
NEBRASKA -- 2.1%
Nebraska State Investment
Finance Authority RB,
Childrens Healthcare Services,
AMBAC
5.500%, 08/15/17 1,435 1,390
Nebraska State Public Gas Supply
System RB, American Public
Energy, Series A, AMBAC
5.250%, 06/01/11 6,000 5,850
----------
7,240
----------
NEVADA -- 1.0%
Nevada State Capital & Cultural
Affairs GO, Series A
5.500%, 02/01/11 1,000 1,016
Nevada State GO, Series A
5.000%, 07/01/13 2,500 2,366
----------
3,382
----------
NEW HAMPSHIRE -- 2.3%
New Hampshire State Higher
Education & Health Facilities
Authority RB, Dartmouth Education
Loan Remarketing
5.300%, 06/01/15 1,045 1,014
DESCRIPTION PAR (000) VALUE (000)
New Hampshire State Higher
Education & Health Facilities
Authority RB, LOC
5.800%, 10/01/12 $ 1,000 $ 1,008
New Hampshire State Housing
Finance Authority RB, Series B, FHA
5.850%, 07/01/10 900 911
New Hampshire State RB
5.000%, 08/15/13 2,050 1,955
New Hampshire Municipal Bond
Bank RB, Series B, FSA
5.250%, 08/15/11 3,115 3,115
----------
8,003
----------
NEW JERSEY -- 1.9%
New Jersey State Transportation
Authority RB, Series A
5.500%, 06/15/08 3,000 3,120
5.000%, 06/15/12 3,500 3,378
----------
6,498
----------
NEW YORK -- 11.7%
Long Island Power Authority,
New York Electric System RB, FSA
5.500%, 12/01/12 1,500 1,530
Metropolitan Transportation
Authority RB, Commuter Facilities,
Series A, FGIC
5.750%, 07/01/11 1,000 1,033
Metropolitan Transportation
Authority RB, Series C, FSA
5.125%, 07/01/13 5,000 4,806
Metropolitan Transportation
Authority RB, Transportation
Service Contract, Series R
5.500%, 07/01/14 1,740 1,703
New York City GO
5.000%, 08/01/14 4,000 3,710
5.000%, 08/15/14 1,000 926
New York City GO, Series C
5.250%, 08/15/11 2,080 2,049
New York City GO, Series D
6.000%, 02/15/09 1,000 1,043
6.000%, 02/15/12 600 620
32
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
NEW YORK (CONTINUED)
New York City GO, Series F
5.250%, 08/01/14 $ 3,000 $ 2,850
New York Metropolitan Transit
Authority Commuter Facilities RB,
Series A, FSA
5.500%, 07/01/15 1,530 1,501
New York State Urban
Development RB, Correctional
Facilities, MBIA
5.000%, 01/01/13 1,500 1,427
New York State Dormitory
Authority RB, Mental Health
Services Facility, MBIA
5.000%, 08/15/14 1,000 938
New York State Dormitory
Authority RB, Series A, STGTD
5.500%, 05/15/10 1,000 1,009
New York State GO
5.000%, 03/15/14 2,000 1,880
New York State GO, Series C,
AMBAC
5.375%, 10/01/11 3,000 3,030
New York State Housing Finance
Agency RB, Series A, FSA
5.800%, 11/01/09 1,720 1,765
New York State Urban
Developement RB
5.250%, 01/01/14 7,225 7,071
New York State Urban
Development Authority RB,
Youth Facilities Project, MBIA
5.700%, 04/01/14 1,505 1,513
----------
40,404
----------
NORTH CAROLINA -- 4.1%
North Carolina State,
Eastern Municipal Power
Agency RB
6.000%, 01/01/14 4,000 3,880
5.600%, 01/01/16 2,000 1,823
North Carolina State,
Eastern Municipal Power
Agency RB, FGIC
6.000%, 01/01/13 2,000 2,043
DESCRIPTION PAR (000) VALUE (000)
North Carolina State,
Eastern Municipal Power
Agency RB, Series D
5.875%, 01/01/14 $1,035 $ 992
North Carolina State,
Eastern Municipal Power
Agency RB, Series D, ACA-CBI
5.600%, 01/01/16 3,000 2,963
North Carolina State Public GO,
Series A
5.250%, 03/01/12 2,500 2,500
----------
14,201
----------
OHIO -- 1.5%
Ohio State Infrastructure GO,
Series A
5.750%, 02/01/11 2,280 2,391
Ohio State Public Facilities
Commission RB, Higher
Education Authority, Series II-A
5.000%, 05/01/08 2,900 2,889
----------
5,280
----------
OKLAHOMA -- 0.8%
Oklahoma State Turnpike
Authority RB, Series B, FGIC
5.250%, 01/01/12 2,750 2,747
----------
PENNSYLVANIA -- 4.4%
Montgomery County GO
5.250%, 10/15/08 1,250 1,275
Pennsylvania State GO
5.250%, 06/15/12 2,155 2,128
Pennsylvania State GO,
1st Series, AMBAC
5.125%, 03/15/12 2,000 1,953
Pennsylvania State Higher
Education & Health
Services RB, Series A
5.750%, 01/01/12 1,300 1,256
Pennsylvania State Higher
Education Facilities
Authority RB, MBIA
5.250%, 01/01/13 2,000 1,958
33
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
PENNSYLVANIA (CONTINUED)
Pennsylvania State Housing
Finance Agency RB, Single
Family Mortgages, Series A
6.000%, 10/01/13 $ 2,000 $ 2,025
Philadelphia, Water and
Wastewater Projects RB, FGIC
5.650%, 06/15/12 3,000 3,064
Southeastern Pennsylvania
Transportation Authority RB,
Series A, FGIC
5.125%, 03/01/08 1,450 1,454
----------
15,113
----------
PUERTO RICO -- 5.7%
Puerto Rico Commonwealth,
Public Improvement GO, FSA
5.500%, 07/01/12 2,000 2,055
Puerto Rico Commonwealth
GO, FSA
5.250%, 07/01/10 1,000 1,019
Puerto Rico Electric Power
Authority RB, Series CC, MBIA
5.000%, 07/01/10 2,050 2,047
Puerto Rico Electric Power
Authority RB
5.250%, 07/01/14 4,700 4,594
5.500%, 07/01/16 3,000 2,933
Puerto Rico Electric Power
Authority RB, Series CC, FSA
5.000%, 07/01/10 2,435 2,432
Puerto Rico Municipal Finance
Agency RB, Series A, FSA
5.250%, 07/01/10 1,500 1,526
Puerto Rico Public Education &
Health Facilities RB, Series M, CGTD
5.750%, 07/01/15 1,000 1,006
Puerto Rico GO, FSA
5.750%, 07/01/17 2,000 2,020
----------
19,632
----------
RHODE ISLAND -- 2.4%
Providence Public Building RB
5.375%, 12/15/11 1,000 1,003
DESCRIPTION PAR (000) VALUE (000)
Rhode Island State Depositor's
Economic Protection RB,
Series A, MBIA
6.400%, 08/01/06 $ 1,000 $ 1,084
Rhode Island State Housing &
Mortgage Finance RB, Series 15B
6.200%, 10/01/06 1,110 1,157
Rhode Island State Housing &
Mortgage Finance RB, Series 19A
5.700%, 04/01/15 2,500 2,450
Rhode Island State GO
5.500%, 09/01/15 2,740 2,695
----------
8,389
----------
SOUTH CAROLINA -- 1.4%
South Carolina State GO, Highway
System, Series A
4.600%, 05/01/12 4,000 3,730
South Carolina State Public Service
Authority RB, Series B, FGIC
5.875%, 01/01/14 1,150 1,183
----------
4,913
----------
TEXAS -- 3.7%
Tarrant County, Health Facilities
Authority RB, Harris Methodist
Health System Project, Series A,
AMBAC
5.125%, 09/01/12 2,700 2,606
Texas A&M University RB
5.200%, 05/15/10 2,580 2,574
Texas State GO
5.125%, 10/01/14 8,000 7,590
----------
12,770
----------
UTAH -- 1.3%
Utah State, Intermountain Power
Agency RB, Power Supply,
Series A, MBIA
5.250%, 07/01/12 4,500 4,438
----------
VIRGINIA -- 1.4%
Richmond GO, FSA
5.125%, 01/15/07 3,000 2,974
34
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
VIRGINIA (CONTINUED)
Virginia State Housing
Development Authority RB,
Series H
5.700%, 11/01/07 $ 1,655 $ 1,698
----------
4,672
----------
WASHINGTON -- 11.6%
Grant County Washington
Utility RB
5.250%, 01/01/14 2,400 2,292
Seattle Municipal Light &
Power RB
5.875%, 10/01/10 2,300 2,418
Washington State Convention &
Trade Center RB, MBIA
5.000%, 07/01/10 1,500 1,470
Washington State Public Power
Supply Systems RB
5.125%, 07/01/13 5,000 4,713
Washington State Public Power
Supply Systems RB, Nuclear
Power Project No. 1, Series B
5.125%, 07/01/14 3,000 2,798
Washington State Public Power
Supply Systems RB, Nuclear
Power Project No. 1, FSA
5.400%, 07/01/12 7,800 7,673
Washington State Public Power
Supply Systems RB, Nuclear
Power Project No. 3, Series A (A)
5.757%, 07/01/13 2,000 925
Washington State Public Power
Supply Systems RB, Nuclear
Power Project No. 3, Series A, FSA
5.100%, 07/01/10 2,500 2,450
Washington State Public Power
Supply Systems RB, Nuclear
Project No. 2, Series A, FSA
5.000%, 07/01/11 10,115 9,710
Washington State Public Power
Supply Systems RB, Nuclear Project
No. 1, Series A
5.000%, 07/01/11 1,000 955
5.000%, 07/01/13 4,000 3,735
DESCRIPTION PAR (000) VALUE (000)
Washington State Public Power
Supply Systems RB, Nuclear Project
No. 2, Series A, FSA
5.125%, 07/01/11 $ 1,000 $ 971
----------
40,110
----------
WEST VIRGINIA -- 0.6%
West Virginia State GO
5.250%, 06/01/11 1,000 1,003
5.000%, 06/01/14 1,000 941
----------
1,944
----------
WISCONSIN -- 1.5%
Wisconsin State Housing &
Economic Development
Authority RB, Series C, GOA
5.800%, 11/01/13 2,125 2,133
Wisconsin State Housing &
Economic Development Authority RB,
Home Ownership, Series E, GOA
5.900%, 09/01/16 1,000 998
Wisconsin State Transit RB
5.250%, 07/01/11 2,020 2,023
----------
5,154
----------
TOTAL MUNICIPAL BONDS
(Cost $334,181) 328,440
----------
REPURCHASE AGREEMENT -- 2.6%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$8,946,387 (collateralized by
U.S. Treasury Instruments:
total market value
$9,123,903) (B) 8,945 8,945
----------
TOTAL REPURCHASE AGREEMENT
(Cost $8,945) 8,945
----------
TOTAL INVESTMENTS -- 97.7%
(Cost $343,126) 337,385
----------
OTHER ASSETS AND LIABILITIES, NET -- 2.3% 7,777
----------
35
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 TAX-EXEMPT MEDIUM-TERM INCOME FUND (CONCLUDED)
DESCRIPTION VALUE (000)
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 35,356,203 outstanding
shares of beneficial interest $ 354,409
Distribution in excess of Net
Investment Income (3)
Accumulated Net Realized Loss on
Investments (3,503)
Net Unrealized Depreciation on Investments (5,741)
----------
TOTAL NET ASSETS -- 100.0% $345,162
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.76
==========
(A) Zero Coupon Bond. The rate reported on the Statement of Net Assets is the
effective yield as of November 30, 1999.
(B) Tri-Party Repurchase Agreement
AMT -- Alternative Minimum Tax
COP -- Certificate of Participation
GO -- General Obligation Bond
HUD -- Department of Housing & Urban Development
LOC -- Securities are held in connection with a letter of credit issued by a
major commercial bank or other financial institution.
RB -- Revenue Bond
The following organizations have provided underlying credit support for the
securities as set forth in the Statement of Net Assets.
AMBAC -- American Municipal Bond Assurance Company
CGTD -- Commonwealth Guaranteed
CONLEE -- College Construction Loan Insurance
COP-- Certificate of Participation
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
GOA -- General Obligation of Authority
GOI -- General Obligation of Institution
MBIA -- Municipal Bond Insurance Association
STGTD -- State Guaranteed
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
36
<PAGE>
BOSTON 1784 FUNDS
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND
- --------------------------------------------------------------------------------
[pie chart omitted]
plot points follows:
Resource Recovery Bonds 8%
Transportation Bonds 10%
Utility Bonds 8%
Water & Sewer Bonds 2%
Alternative Minimum Tax Bonds 4%
Cash Equivalents 2%
Education Bonds 3%
General Obligation Bonds 28%
Public Facility Bonds 1%
Other Revenue Bonds 4%
Housing Bonds 14%
Health Care Bonds 16%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION PAR (000) VALUE (000)
MUNICIPAL BONDS -- 96.8%
CONNECTICUT -- 77.3%
Bridgeport GO
6.500%, 09/01/08 $ 1,435 $ 1,587
Bridgeport GO, AMBAC
5.450%, 03/01/11 1,550 1,567
Bristol, Resource Recovery RB,
Ogden Martin System Project
6.500%, 07/01/14 3,000 3,116
Connecticut State GO,
Callable 03/15/08 @ 101
5.250%, 03/15/14 2,500 2,444
5.250%, 06/15/10 2,025 2,043
Connecticut State GO
5.250%, 03/15/14 2,500 2,444
Connecticut State GO, FGIC
5.000%, 09/01/14 880 836
Connecticut State GO, Series A
5.250%, 03/01/14 2,445 2,390
5.125%, 03/15/15 3,895 3,700
Connecticut State GO, Series B
5.125%, 03/15/11 1,005 999
DESCRIPTION PAR (000) VALUE (000)
Connecticut State GO, Series C
5.800%, 08/15/08 $ 1,500 $ 1,569
Connecticut State GO, Series D
5.125%, 12/15/13 4,790 4,646
5.250%, 12/15/15 500 482
Connecticut State Health &
Education Facilities Authority RB
4.650%, 07/01/11 1,390 1,298
Connecticut State Health &
Education Facilities Authority RB,
AMBAC
5.200%, 07/01/14 2,840 2,733
5.000%, 07/01/17 1,000 907
Connecticut State Health &
Education Facilities Authority RB,
Bridgeport Hospital, Series C,
CONLEE
5.250%, 07/01/15 1,615 1,546
Connecticut State Health &
Education Facilities Authority RB,
Greenwich Hospital, Series A, MBIA
5.750%, 07/01/16 2,000 2,002
Connecticut State Health &
Education Facilities Authority RB,
Hospital For Special Care
5.375%, 07/01/17 5,000 4,750
Connecticut State Health &
Education Facilities Authority RB,
New Britain Hospital, Series B,
AMBAC
6.000%, 07/01/09 1,000 1,061
Connecticut State Health &
Education Facilities Authority RB,
New Haven Hospital, Series H,
MBIA
5.625%, 07/01/16 1,000 994
Connecticut State Health &
Education Facilities Authority RB,
New Horizons Village Project,
AMBAC
7.050%, 11/01/09 1,000 1,115
Connecticut State Health &
Education Facilities Authority RB,
Newington Children's Hospital,
Series A, MBIA
5.850%, 07/01/07 1,110 1,167
37
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
Connecticut State Health &
Education Facilities Authority RB,
Series D, GOI
6.750%, 07/01/12 $ 2,750 $ 2,898
Connecticut State Health &
Education Facilities Authority RB,
Sharon Health Care Project,
AMBAC
6.000%, 11/01/09 1,000 1,066
Connecticut State Health &
Education Facilities Authority RB,
Stamford Hospital, MBIA
5.400%, 07/01/09 2,000 2,045
Connecticut State Health &
Education Facilities Authority RB,
William W. Backus Hospital,
Series E, AMBAC
5.000%, 07/01/17 1,000 906
Connecticut State Health &
Education Facilities Authority RB,
Sacred Heart University Project,
Series E
4.900%, 07/01/13 3,400 3,141
Connecticut State Higher
Education RB, Family Education
Loan Program, Series A, AMT
7.000%, 11/15/05 1,070 1,106
5.625%, 11/15/11 1,215 1,242
Connecticut State Hospital RB
5.300%, 07/01/10 2,740 2,771
Connecticut State Housing Finance
Authority RB, GOA
6.200%, 05/15/14 430 442
Connecticut State Housing Finance
Authority RB, Mortgage Finance
Program, Series A, GOA
5.950%, 05/15/11 3,215 3,279
6.200%, 05/15/14 1,350 1,387
Connecticut State Housing Finance
Authority RB, Mortgage Finance
Program, Series C-1, GOA
6.000%, 11/15/10 1,010 1,034
DESCRIPTION PAR (000) VALUE (000)
Connecticut State Housing Finance
Authority RB, Mortgage Finance
Program, Series H-1
5.100%, 05/15/17 $ 1,000 $ 921
Connecticut State Housing Finance
Authority RB, Mortgage Finance
Program, Sub-Series A-3, GOA
5.950%, 05/15/17 1,000 1,007
Connecticut State Housing Finance
Authority RB, Mortgage Finance
Program, Sub-Series B1
6.000%, 11/15/15 2,000 2,020
Connecticut State Housing Finance
Authority RB, Mortgage Finance
Program, Sub-Series B1, GOA
6.000%, 05/15/08 230 238
Connecticut State Housing Finance
Authority RB, Mortgage Finance
Program, Sub-Series E-1, GOA
5.900%, 05/15/15 4,200 4,226
Connecticut State Residential
Recovery RB, MBIA
5.125%, 01/01/09 4,000 3,980
5.400%, 10/01/10 2,000 2,035
Connecticut State Resource
Recovery Authority RB, American
Fuel Company, Series A, MBIA
5.125%, 11/15/14 7,125 6,671
Connecticut State Resource
Recovery Authority RB,
Mid-Connecticut System Project,
Series A, AMT, MBIA
5.500%, 11/15/11 6,000 6,097
Connecticut State Resource
Recovery Authority RB,
Mid-Connecticut System Project,
Series A, MBIA
5.375%, 11/15/10 2,000 2,023
Connecticut State Special Tax RB,
AMBAC
5.250%, 01/01/11 1,000 1,001
Connecticut State Special Tax RB,
Transportation Infrastructure, Series A
5.700%, 06/01/12 1,160 1,195
38
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
Connecticut State Special Tax RB,
Transportation Infrastructure,
Series A, FGIC
5.600%, 06/01/13 $ 1,000 $ 1,011
5.250%, 10/01/14 2,100 2,055
Connecticut State Special Tax RB,
Transportation Infrastructure,
Series B, FGIC
5.500%, 10/01/11 4,920 5,154
Connecticut State Transportation
Improvement RB
5.500%, 10/01/12 4,000 4,055
Connecticut State Transportation
Infrastructure RB, Series B, FSA
5.250%, 11/01/15 1,000 968
Connecticut State
Unlimited Tax GO
5.250%, 03/15/13 6,000 5,918
Connecticut State
Unlimited Tax GO, Series D
5.000%, 12/01/12 3,500 3,386
Connecticut State Water RB
5.250%, 07/15/11 1,000 1,003
Eastern Connecticut Resource
Recovery Authority RB,
Wheelabrator Libson Project,
Series A
5.500%, 01/01/14 2,775 2,477
Hartford GO, FGIC
5.700%, 10/01/12 500 518
5.750%, 10/01/13 1,000 1,038
4.700%, 01/15/15 1,340 1,206
New Haven GO, FGIC
4.700%, 02/01/15 1,875 1,688
South Central Connecticut
Regional Water Authority RB,
Series A, MBIA
6.000%, 08/01/09 985 1,038
6.000%, 08/01/10 1,045 1,099
Stamford GO
5.000%, 07/15/15 2,195 2,061
University of Connecticut RB,
Series A, MBIA
5.250%, 04/01/14 1,000 974
DESCRIPTION PAR (000) VALUE (000)
Waterbury, Connecticut
Unlimited Tax GO
4.800%, 02/15/12 $ 1,400 $ 1,321
4.900%, 02/15/13 1,470 1,380
5.000%, 02/15/14 1,395 1,301
----------
137,778
----------
PUERTO RICO -- 19.5%
Puerto Rico Commonwealth GO (A)
5.061%, 07/01/14 4,500 1,969
Puerto Rico Commonwealth
Highway & Transportation
Infrastructure RB, MBIA
5.250%, 07/01/14 2,615 2,556
Puerto Rico
Commonwealth GO, FSA
5.250%, 07/01/10 1,250 1,273
Puerto Rico Electric Power
Authority RB, FSA,
5.250%, 07/01/14 3,500 3,421
Puerto Rico Electric Power
Authority RB, Series CC, MBIA
5.000%, 07/01/10 2,000 1,998
Puerto Rico Electric Power
Authority RB
5.250%, 07/01/14 9,650 9,433
5.500%, 07/01/14 1,000 990
5.500%, 07/01/16 1,000 978
Puerto Rico Highway &
Transportation RB, Series X
5.300%, 07/01/04 700 710
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control
Facilities RB, International
American University, Series A,
MBIA
5.250%, 10/01/12 725 727
5.375%, 10/01/13 975 969
5.500%, 10/01/14 650 652
Puerto Rico Infrastructure
Financing Authority RB, AMBAC
5.250%, 07/01/10 2,500 2,547
39
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 CONNECTICUT TAX-EXEMPT INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
Puerto Rico Municipal Finance
Agency RB, Series A, FSA
6.000%, 07/01/09 $ 2,650 $ 2,819
Puerto Rico Public Buildings
Authority RB, MBIA
5.000%, 07/01/11 1,000 990
Puerto Rico GO, FSA
5.750%, 07/01/17 2,700 2,727
----------
34,759
----------
TOTAL MUNICIPAL BONDS
(Cost $176,154) 172,537
----------
REPURCHASE AGREEMENT -- 2.4%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$4,256,660 (collateralized by
U.S. Treasury Instruments:
total market value
$4,341,121) (B) 4,256 4,256
----------
TOTAL REPURCHASE AGREEMENt
(Cost $4,256) 4,256
----------
TOTAL INVESTMENTS -- 99.2%
(Cost $180,410) 176,793
----------
OTHER ASSETS AND LIABILITIES, NET -- 0.8% 1,477
----------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 17,500,165 outstanding
shares of beneficial interest 181,958
Undistributed Net Investment Income 2
Accumulated Net Realized (Loss) on Investments (73)
Net Unrealized (Depreciation) on Investments (3,617)
----------
TOTAL NET ASSETS -- 100.0% $178,270
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $10.19
==========
(A) Zero Coupon Bond. The rate reported on the Statement of Net Assets is the
effective yield as of November 30, 1999.
(B) Tri-Party Repurchase Agreement
AMT -- Alternative Minimum Tax
GO -- General Obligation Bond
RB -- Revenue Bond
The following organizations have provided underlying credit support for the
securities as set forth in the Statement of Net Assets.
AMBAC -- American Municipal Bond Assurance Corporation
CONLEE -- College Construction Loan Insurance Association
FGIC--Financial Guaranty Insurance Corporation
FSA--Financial Security Assurance
GOA--General Obligation of Authority
GOI--General Obligation of Institution
MBIA--Municipal Bond Insurance Association
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
40
<PAGE>
BOSTON 1784 FUNDS
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND
- --------------------------------------------------------------------------------
[pie chart omitted]
plot points follows:
Transportation Bonds 8%
Participation Notes 1%
Utility Bonds 12%
General Obligation Bonds 12%
Cash Equivalents 6%
Water & Sewer Bonds 18%
Public Facility Bonds 4%
Health Care Bonds 11%
Alternative Minimum Tax Bonds 3%
Housing Bonds 3%
Education Bonds 8%
Other Revenue Bonds 14%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION PAR (000) VALUE (000)
MUNICIPAL BONDS -- 92.7%
Florida -- 89.3%
Brevard County, Health Facility
Authority RB, Holmes Regional
Medical Center, MBIA
5.625%, 10/01/14 $ 1,000 $ 1,006
Brevard County, Housing &
Finance Authority RB,
Series B, FSA
7.000%, 03/01/13 185 191
Cape Coral, Water
Improvement RB, FSA
6.375%, 06/01/09 1,000 1,056
Dade County, Aviation RB, Series A
5.250%, 10/01/07 1,000 1,020
Dade County, Aviation RB, Series A,
AMT, MBIA
5.750%, 10/01/15 1,000 1,005
Dade County, Housing Finance
Authority RB, Series D, FSA
6.950%, 12/15/12 355 369
Dade County, Professional Sports
Franchise Facility RB, MBIA
5.250%, 10/01/12 1,385 1,371
Dade County, Water & Sewer
System RB, FGIC
5.500%, 10/01/18 3,000 2,921
DESCRIPTION PAR (000) VALUE (000)
Escambia County, Housing Finance
Authority RB, Series A, AMT, FHA
7.300%, 10/01/17 $ 300 $ 307
Florida State Board Educational
Lottery RB, Series C, FGIC
5.000%, 07/01/13 1,500 1,431
Florida State Board of Education
Capital Outlay GO, Series A
5.750%, 01/01/13 1,000 1,014
5.500%, 06/01/15 2,500 2,469
Florida State Board of Education
Capital Outlay GO, Series B, MBIA
5.750%, 06/01/11 1,250 1,291
Florida State Board of Education RB
5.125%, 07/01/11 1,170 1,161
Florida State Educational Lottery RB,
Series A
5.000%, 07/01/15 2,000 1,862
Florida State Finance
Department RB, MBIA
5.500%, 07/01/12 1,000 1,011
Florida State Finance
Department RB, Series A, AMBAC
5.700%, 07/01/09 2,000 2,060
Florida State Finance Department
General Services RB, FSA
5.000%, 07/01/06 1,500 1,517
Florida State Gas Utilities Project RB
5.000%, 12/01/08 1,000 986
Florida State Housing RB, MBIA
5.050%, 07/01/12 1,900 1,800
Florida State Turnpike
Authority RB, FGIC
5.250%, 07/01/11 2,000 2,005
Fort Lauderdale GO
5.500%, 07/01/15 1,000 981
Gainesville, Utilities System RB,
Series B
5.500%, 10/01/13 2,000 2,012
Gulf Breeze RB, FGIC
5.000%, 12/01/14 2,000 1,885
Gulf Breeze RB, Series B, FGIC
4.900%, 12/01/08 500 496
Hillsborough County, Allegany
Health Systems RB, MBIA
6.375%, 12/01/12 1,300 1,389
41
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 FLORIDA TAX-EXEMPT INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
Hillsborough County, Aviation
Authority, Tampa International
Airport RB, Series B, AMBAC
5.125%, 10/01/17 $ 2,500 $ 2,319
Indian Trace Community, Water
Management RB, MBIA
5.500%, 05/01/07 1,000 1,038
Lee County, Water & Sewer RB,
Series A, AMBAC
5.000%, 10/01/14 2,000 1,885
Manatee County, Florida School
Board COP, MBIA
4.950%, 07/01/14 1,000 925
Naples, Community Hospital
Project RB, MBIA
5.500%, 10/01/16 1,000 976
Orlando, Water & Electric Utilities
Commission RB
5.250%, 10/01/14 1,000 974
Palm Beach County, Criminal Justice
Facilities RB, FGIC
5.375%, 06/01/09 1,500 1,538
Pinellas County, Sewer RB, FGIC
5.000%, 10/01/13 1,990 1,898
Polk County, Utility Systems RB, FGIC
5.250%, 10/01/17 1,500 1,421
Port St. Lucie, Special Assessment,
District 1, MBIA
5.850%, 10/01/11 3,070 3,200
Reedy Creek, Improvements GO,
Series A, MBIA
5.750%, 06/01/14 2,500 2,541
Sarasota County, Hospital
Facilities RB, Memorial Health
Systems Project, Series B, MBIA
5.000%, 10/01/10 1,250 1,238
Tampa Bay, Florida Water Utility
Systems RB, Series B, FGIC
5.125%, 10/01/12 2,250 2,208
Tampa Health Systems Catholic
Health RB, AMBAC
4.875%, 11/15/15 1,000 913
Tampa Health Systems RB, AMBAC
4.875%, 11/15/14 1,000 916
DESCRIPTION PAR (000) VALUE (000)
Volusia County, Hospital Facilities RB,
Memorial Health Systems Project,
AMBAC
5.500%, 11/15/16 $ 1,250 $ 1,220
Volusia County, Sales Tax RB, MBIA
5.000%, 10/01/16 1,830 1,679
----------
61,505
----------
PUERTO RICO -- 3.4%
Puerto Rico Commonwealth Highway &
Transportation Authority RB, Sub- P R
St Infrastructure Bank, MBIA
5.250%, 07/01/13 1,375 1,351
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control Facilities RB,
International American University,
Series A, MBIA
5.250%, 10/01/12 1,000 1,003
----------
2,354
----------
TOTAL MUNICIPAL BONDS
(Cost $65,706) 63,859
----------
REPURCHASE AGREEMENT -- 6.2%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$4,268,662 (collateralized by
U.S. Treasury Instruments:
total market value
$4,353,361) (A) 4,268 4,268
----------
TOTAL REPURCHASE AGREEMENT
(Cost $4,268) 4,268
----------
TOTAL INVESTMENTS -- 98.9%
(Cost $69,974) 68,127
----------
Other Assets and Liabilities, Net -- 1.1% 737
----------
42
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION VALUE (000)
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 7,097,858 outstanding
shares of beneficial interest $ 70,711
Net Unrealized Depreciation on Investments (1,847)
----------
TOTAL NET ASSETS-- 100.0% $68,864
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.70
==========
(A) Tri-Party Repurchase Agreement
AMT -- Alternative Minimum Tax
COP -- Certificate of Participation
GO -- General Obligation Bond
RB -- Revenue Bond
The following organizations have provided underlying credit support for the
securities as set forth in the Statement of Net Assets.
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Insurance Association
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
43
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND
- --------------------------------------------------------------------------------
[pie chart omitted]
plot points follows:
Resource Recovery Bonds 1%
Public Facility Bonds 1%
Cash Equivalents 6%
Water & Sewer Bonds 9%
General Obligation Bonds 35%
Education Bonds 11%
Pre-Refunded Securities 3%
Transportation Bonds 11%
Housing Bonds 4%
Health Care Bonds 15%
Alternative Minimum Tax Bonds 4%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION PAR (000) VALUE (000)
MUNICIPAL BONDS -- 93.6%
MASSACHUSETTS -- 91.2%
Barnstable GO
5.000%, 03/15/12 $ 1,000 $ 962
Boston GO, Series A, AMBAC
5.650%, 02/01/09 1,500 1,539
Boston, Water and Sewer
Community RB, Series A, FGIC
5.125%, 11/01/15 3,320 3,129
Brockton GO, MBIA
5.125%, 04/01/15 1,500 1,412
Chelsea GO, School Loan Project,
AMBAC
6.000%, 06/15/04 650 687
5.700%, 06/15/06 1,000 1,045
Gloucester GO, FGIC
5.100%, 08/01/14 1,105 1,053
Haverhill GO, FGIC
5.300%, 06/15/12 1,500 1,491
Holyoke GO, FSA
5.200%, 08/01/17 690 646
Holyoke GO, Series A, FSA
5.600%, 06/15/11 1,000 1,021
5.500%, 06/15/16 1,195 1,174
Lawrence GO, AMBAC
6.250%, 02/15/09 1,475 1,560
DESCRIPTION PAR (000) VALUE (000)
Lowell GO, AMBAC
5.500%, 08/01/11 $ 2,740 $ 2,761
5.500%, 08/01/12 1,720 1,735
Lowell GO, FSA
5.500%, 01/15/10 1,140 1,159
6.625%, 04/01/15 1,000 1,075
Lynn, Massachusetts Water &
Sewer Community RB,
Series A, FSA
5.000%, 12/01/14 1,375 1,292
Malden GO, AMBAC
5.000%, 10/01/14 1,000 941
Massachusetts Bay Transportation
Authority RB, GOA
5.500%, 03/01/07 795 838
5.500%, 03/01/07 705 729
6.000%, 03/01/12 130 138
6.000%, 03/01/12 3,870 4,001
Massachusetts State Authority RB,
Health & Educational Facilities
Brandeis University Project,
Series I, MBIA
5.250%, 10/01/12 1,900 1,881
Massachusetts State Bay
Transportation Authority RB,
Series A, GOA
5.800%, 03/01/10 2,640 2,808
Massachusetts State Bay
Transportation Authority RB,
Series A, MBIA
5.000%, 03/01/18 3,000 2,674
5.750%, 03/01/18 710 704
Massachusetts State Bay
Transportation Authority RB,
Series A, MBIA (A)
5.750%, 03/01/18 2,615 2,785
Massachusetts State Bay
Transportation Authority RB,
Series D, GOA
5.600%, 03/01/08 1,885 1,960
Massachusetts State Construction
Loan GO, Series C, FGIC
5.250%, 09/01/08 3,200 3,256
Massachusetts State Development
Finance Agency, Clark University RB
5.250%, 07/01/16 1,445 1,337
44
<PAGE>
BOSTON 1784 FUNDS
DESCRIPTION PAR (000) VALUE (000)
Massachusetts State Developmental
Financial Agency RB, Emerson
College Project, AMBAC
5.000%, 01/01/12 $ 1,455 $ 1,406
Massachusetts State Educational
Financing Authority RB, Series A,
AMT, MBIA
5.125%, 12/01/14 1,000 937
Massachusetts State Educational
Loan Authority RB, Issue E,
Series B, AMT, AMBAC
6.000%, 01/01/12 365 374
6.300%, 07/01/12 770 801
Massachusetts State Finance
Agency RB, Curry College,
Series A, ACA
5.000%, 03/01/13 1,640 1,531
Massachusetts State GO
5.250%, 05/01/12 1,000 987
5.250%, 05/01/14 1,000 970
5.250%, 08/01/14 5,000 4,850
5.000%, 11/01/14 2,000 1,877
Massachusetts State GO, AMBAC
5.750%, 08/01/09 2,000 2,100
Massachusetts State GO (A)
5.750%, 06/01/16 3,000 3,176
Massachusetts State GO, Series A
5.500%, 02/01/11 3,500 3,544
5.000%, 11/01/13 5,000 4,750
Massachusetts State GO, Series A,
MBIA
5.000%, 04/01/14 3,000 2,835
Massachusetts State GO, Series B
6.500%, 08/01/08 5,315 5,853
Massachusetts State GO, Series B,
FGIC
5.500%, 11/01/07 1,000 1,037
5.125%, 06/01/12 2,000 1,957
Massachusetts State GO, Series B,
FGIC (A)
5.875%, 08/01/10 2,000 2,140
Massachusetts State GO, Series B,
MBIA
5.400%, 11/01/07 2,000 2,062
Massachusetts State GO, Series C
5.250%, 08/01/15 1,750 1,673
5.000%, 08/01/17 2,000 1,797
DESCRIPTION PAR (000) VALUE (000)
Massachusetts State Grant
Anticipation Note, Series A
5.250%, 12/15/11 $ 4,000 $ 3,960
Massachusetts State Health &
Educational Facilities Authority
RB, Amherst College, Series G
5.250%, 11/01/15 1,125 1,073
Massachusetts State Health &
Educational Facilities Authority RB,
Baystate Medical Center
Project, Series D, FGIC
6.000%, 07/01/15 2,000 2,027
Massachusetts State Health &
Educational Facilities Authority RB,
Berklee College of Music,
Series E, MBIA
5.000%, 10/01/15 975 901
Massachusetts State Health &
Educational Facilities Authority RB,
Boston Medical Center,
Series A, MBIA
5.250%, 07/01/15 2,500 2,378
5.250%, 07/01/16 2,725 2,565
Massachusetts State Health &
Educational Facilities Authority RB,
Brandeis University, MBIA
5.250%, 10/01/14 1,500 1,449
Massachusetts State Health &
Educational Facilities Authority RB,
Catholic Health East, Series A,
AMBAC
5.000%, 11/15/18 2,000 1,792
Massachusetts State Health &
Educational Facilities Authority RB,
Dana Farber Cancer Project,
Series G-1
6.250%, 12/01/09 1,175 1,218
Massachusetts State Health &
Educational Facilities Authority RB,
Emerson Hospital Project,
Series D, FSA
5.800%, 08/15/18 3,000 2,944
Massachusetts State Health &
Educational Facilities Authority RB,
Eye & Ear Hospital, Series B
5.250%, 07/01/09 1,500 1,492
45
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
Massachusetts State Health &
Educational Facilities Authority
RB, Hallmark Health Systems,
Series A, FSA
5.000%, 07/01/12 $ 1,000 $ 961
Massachusetts State Health &
Educational Facilities Authority
RB, Harvard Pilgrim Health,
Series A, FSA
5.000%, 07/01/14 2,500 2,341
Massachusetts State Health &
Educational Facilities Authority
RB, Harvard University Project,
Series M, GOI
5.750%, 12/01/11 1,000 1,026
Massachusetts State Health &
Educational Facilities Authority
RB, Lahey Clinic Medical Center
Project, Series B, MBIA
5.625%, 07/01/15 500 497
Massachusetts State Health &
Educational Facilities Authority
RB, Massachusetts General Hospital,
Series G, AMBAC
5.375%, 07/01/11 2,000 2,005
Massachusetts State Health &
Educational Facilities Authority
RB, Newton-Wellesley Hospital
Project, Issue E, MBIA
5.875%, 07/01/15 3,000 3,022
Massachusetts State Health &
Educational Facilities Authority
RB, Partners Healthcare System,
Series B
5.250%, 07/01/10 4,670 4,472
Massachusetts State Health &
Educational Facilities Authority
RB, Partners Healthcare Systems,
Series A, MBIA
5.375%, 07/01/17 2,465 2,314
Massachusetts State Health &
Educational Facilities Authority
RB, Simmons College, Series C,
MBIA
5.000%, 10/01/14 1,000 936
DESCRIPTION PAR (000) VALUE (000)
Massachusetts State Health &
Educational Facilities Authority
RB, Smith College Project,
Series D, GOI
5.750%, 07/01/16 $ 2,600 $ 2,574
Massachusetts State Health &
Educational Facilities Authority
RB, Tufts University Project,
Series F, FGIC
5.950%, 08/15/18 3,000 3,004
Massachusetts State Health &
Educational Facilities Authority
RB, UMass Memorial Issue,
Series A, AMBAC
5.250%, 07/01/14 2,000 1,925
Massachusetts State Health &
Educational Facilities Authority
RB, Williams College, Series F
5.750%, 07/01/19 1,000 981
Massachusetts State Health &
Educational Facilities Authority RB,
Partners Healthcare System
5.250%, 07/01/15 2,500 2,356
Massachusetts State Housing
Finance Agency RB, Rental
Mortgage, Series C, AMT, AMBAC
5.450%, 07/01/18 2,805 2,626
Massachusetts State Housing
Finance Agency RB, Residential
Development Project, Series A,
FNMA
6.875%, 11/15/11 1,750 1,853
Massachusetts State Housing
Finance Agency RB, Series A,
AMBAC
6.300%, 10/01/13 4,950 5,111
Massachusetts State Housing
Finance Agency RB, Series A,
MBIA
5.850%, 12/01/08 1,245 1,279
6.100%, 07/01/15 1,590 1,626
Massachusetts State Industrial
Finance Agency RB, Babson
College Project, Series A
5.375%, 10/01/17 1,000 924
46
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
Massachusetts State Industrial
Finance Agency RB, Babson
College Project, Series A, MBIA
6.375%, 10/01/09 $ 1,000 $ 1,071
5.750%, 10/01/15 1,000 1,004
Massachusetts State Industrial
Finance Agency RB, College of
Holy Cross, MBIA
5.500%, 03/01/16 1,500 1,459
Massachusetts State Industrial
Finance Agency RB, Worcester
Polytechnical Institution, MBIA
5.125%, 09/01/17 1,550 1,434
Massachusetts State Industrial
Finance Agency Resource
Recovery RB, Ogden Haverhill
Project A, AMT
5.200%, 12/01/08 1,500 1,412
Massachusetts State Municipal
Wholesale Electric Company RB,
Series D, MBIA
6.000%, 07/01/05 1,000 1,047
Massachusetts State Port Authority
RB, Series A, AMT
6.000%, 07/01/13 1,050 1,078
Massachusetts State Port Authority
RB, Series B, AMT
5.250%, 07/01/14 1,385 1,312
Massachusetts State Port Authority
RB, Series B, AMT
5.000%, 07/01/13 1,790 1,674
Massachusetts State Port Authority
RB, Series E, AMT
5.250%, 07/01/13 1,000 967
Massachusetts State Resource
Recovery Authority RB,
Refusetech Project, Series A
6.150%, 07/01/02 900 919
6.300%, 07/01/05 1,000 1,035
Massachusetts State Special
Obligation RB, Series A
5.500%, 06/01/07 2,000 2,060
5.750%, 06/01/11 2,780 2,929
5.750%, 06/01/12 700 738
DESCRIPTION PAR (000) VALUE (000)
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System, Series A, MBIA
5.000%, 01/01/13 $ 1,000 $ 953
Massachusetts State Turnpike
Authority RB, Metropolitan
Highway System, Sub-Series B,
MBIA
5.250%, 01/01/17 1,000 940
Massachusetts State Turnpike
Authority RB, Western Turnpike,
Series A, MBIA
5.550%, 01/01/17 1,835 1,837
Massachusetts State Unlimited Tax
GO, Series D
5.000%, 11/01/11 5,000 4,881
Massachusetts State Water
Authority RB, Series B, MBIA
5.500%, 03/01/17 3,500 3,382
Massachusetts State Water
Pollution Abatement Trust RB,
Pooled Loan Program, Series 1
5.600%, 08/01/13 2,090 2,114
Massachusetts State Water
Pollution Abatement Trust RB,
Pooled Loan Program, Series 2
6.125%, 02/01/07 730 786
Massachusetts State Water Pollution
Abatement Trust RB, Series A
5.450%, 02/01/13 1,000 999
5.250%, 08/01/14 1,000 959
Massachusetts State Water
Pollution RB
5.700%, 02/01/12 1,450 1,525
5.700%, 02/01/15 3,000 3,159
Massachusetts State Water
Resource Authority RB,
Series B, GOA
5.875%, 11/01/04 1,000 1,049
Massachusetts State Water
Resource Authority RB,
Series C, GOA
6.000%, 11/01/05 2,000 2,100
6.000%, 12/01/11 2,000 2,108
47
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 MASSACHUSETTS TAX-EXEMPT INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
Mendon Upton Regional School
District GO, FGIC
5.500%, 06/01/15 $ 1,405 $ 1,398
5.500%, 06/01/17 1,500 1,453
Nantucket GO
6.800%, 12/01/11 1,425 1,511
Nantucket GO, MBIA
5.250%, 07/15/10 2,250 2,258
Northampton GO, MBIA
5.750%, 05/15/16 775 786
Palmer GO, MBIA
5.500%, 10/01/10 1,500 1,524
Peabody GO, Series A
5.000%, 08/01/13 310 296
5.000%, 08/01/14 510 480
Plymouth County, Partners
Correctional Facility COP, AMBAC
5.125%, 10/01/13 2,165 2,081
Springfield GO, AMBAC
5.300%, 08/01/11 1,000 1,000
5.300%, 08/01/13 1,000 984
Springfield GO, FSA
5.000%, 09/01/11 1,885 1,840
Springfield GO, State Qualified
Municipal Purpose Loan, FSA
5.250%, 11/15/11 1,600 1,596
University of Lowell Building
Authority RB, Fifth Series A, AMBAC
5.625%, 11/01/14 3,000 3,008
Uxbridge GO, MBIA
5.400%, 11/15/16 750 725
West Springfield GO, FGIC
5.000%, 03/01/18 1,225 1,106
Worcester GO, Municipal Purpose
Loan Series B, MBIA
5.250%, 11/01/14 1,875 1,819
Worcester GO, Series G, MBIA
5.300%, 07/01/15 1,000 969
----------
229,847
----------
DESCRIPTION PAR (000) VALUE (000)
PUERTO RICO -- 2.4%
Puerto Rico Commonwealth GO
5.000%, 07/01/08 $ 1,710 $ 1,708
Puerto Rico Commonwealth GO,
FSA
5.500%, 07/01/13 1,000 1,003
Puerto Rico Commonwealth
Highway & Transportation
Authority RB, Sub- P R
St Infrastructure Bank, MBIA
5.250%, 07/01/13 1,300 1,277
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control Facilities
RB, International American University,
Series A, MBIA
5.250%, 10/01/12 1,000 1,003
Puerto Rico Refunding Public
Improvement GO
5.500%, 07/01/13 1,000 1,011
----------
6,002
----------
TOTAL MUNICIPAL BONDS
(Cost $240,705) 235,849
----------
REPURCHASE AGREEMENT -- 5.4%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$13,698,124 (collateralized by
U.S. Treasury Instruments:
total market value
$13,969,925) (B) 13,696 13,696
----------
TOTAL REPURCHASE AGREEMENT
(Cost $13,696) 13,696
----------
TOTAL INVESTMENTS -- 99.0%
(Cost $254,401) 249,545
----------
48
<PAGE>
BOSTON 1784 FUNDS
DESCRIPTION VALUE (000)
OTHER ASSETS AND LIABILITIES, NET -- 1.0% $ 2,523
----------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 25,287,707 outstanding
shares of beneficial interest 257,051
Accumulated Net Realized Loss on Investments (127)
Net Unrealized Depreciation on Investments (4,856)
----------
TOTAL NET ASSETS -- 100.0% $252,068
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.97
==========
(A) Pre-refunded Security. The pre-refunded date is shown as the maturity date
on the Statement of Net Assets.
(B) Tri-Party Repurchase Agreement
AMT -- Alternative Minimum Tax
COP -- Certificate of Participation
GO -- General Obligation Bond
RB -- Revenue Bond
The following organizations have provided underlying credit support for the
securities as set forth in the Statement of Net Assets.
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Corporation
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.
49
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND
- --------------------------------------------------------------------------------
[pie chart omitted]
plot points follows:
Health Care Bonds 6%
Utility Bonds 7%
Cash Equivalents 4%
Transportation Bonds 5%
Water & Sewer Bonds 4%
General Obligation Bonds 36%
Other Revenue Bonds 3%
Public Facility Bonds 10%
Housing Bonds 10%
Alternative Minimum Tax Bonds 4%
Education Bonds 9%
Industrial Development & Pollution
Control Bonds 2%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION PAR (000) VALUE (000)
MUNICIPAL BONDS -- 94.6%
RHODE ISLAND -- 80.6%
Bristol County, Water Authority
RB, MBIA
5.200%, 12/01/14 $ 1,000 $ 955
Bristol County, Water Authority RB,
Series A, MBIA
5.200%, 12/01/13 1,080 1,042
Central Falls RB, Detention Facility
5.250%, 01/15/13 1,505 1,434
5.375%, 01/15/18 1,000 924
Central Falls RB, Detention
Facility, FSA
5.375%, 01/15/18 1,000 945
Cranston GO, MBIA
6.100%, 06/15/10 1,000 1,065
6.100%, 06/15/15 1,500 1,581
5.500%, 07/15/15 1,305 1,298
Cumberland GO, MBIA
5.100%, 09/01/14 500 477
Exeter West Greenwich Regional
School District GO, MBIA
5.400%, 11/15/10 1,000 1,016
DESCRIPTION PAR (000) VALUE (000)
Kent County, Water Authority RB,
MBIA
6.000%, 07/15/08 $ 500 $ 526
North Providence GO, Series A,
MBIA
6.000%, 07/01/12 1,100 1,167
6.050%, 07/01/13 500 530
Providence GO, FSA
5.100%, 01/15/06 1,085 1,101
Providence GO, Series A, FSA
5.700%, 07/15/12 1,825 1,875
Providence, Public Building
Authority RB
5.375%, 12/15/11 1,035 1,038
5.125%, 12/15/14 500 469
Providence, Housing Development
Authority RB, Barbara Jordan
Apartments Project, Series A,
MBIA
6.500%, 07/01/09 380 397
Providence, Public Building
Authority GO, Series A, FSA
5.400%, 12/15/11 500 502
Providence, Public Building
Authority RB, FSA
5.250%, 12/15/14 1,500 1,431
Rhode Island State Airport
Economic Development RB
5.000%, 07/01/15 1,620 1,486
Rhode Island State Clean Water
Agency RB, Safe Drinking Water
Project, Series A, AMBAC
6.500%, 01/01/09 500 537
Rhode Island State Clean Water
Agency RB, Water Pollution
Control, MBIA
5.875%, 10/01/15 435 448
Rhode Island State Convention
Center Authority RB, Series A,
AMBAC
5.500%, 05/15/13 1,000 1,011
Rhode Island State Depositor's
Economic Protection Agency RB,
Series A, FSA
6.500%, 08/01/07 500 547
50
<PAGE>
BOSTON 1784 FUNDS
DESCRIPTION PAR (000) VALUE (000)
Rhode Island State Depositor's
Economic Protection Agency RB,
Series B, MBIA
5.800%, 08/01/12 $ 1,000 $ 1,051
Rhode Island State Depositor's
Economic Protection Agency RB,
Special Obligation, Series A, FSA
5.750%, 08/01/14 1,000 1,030
Rhode Island State GO
5.000%, 07/15/07 3,000 3,011
5.250%, 09/01/08 2,580 2,625
5.250%, 07/15/10 1,000 1,006
5.000%, 08/01/11 1,530 1,490
5.200%, 09/01/11 1,250 1,239
5.000%, 09/01/12 1,665 1,603
5.500%, 09/01/15 500 492
Rhode Island State GO, FGIC
5.000%, 09/01/14 2,680 2,502
5.000%, 09/01/16 2,425 2,222
Rhode Island State GO, Reference
Consolidation Capital Development
Loan, Series A
5.125%, 07/15/13 3,000 2,884
Rhode Island State GO, Series A
5.125%, 07/15/12 1,735 1,694
Rhode Island State Health &
Educational Building RB
4.750%, 09/01/14 1,215 1,103
Rhode Island State Health &
Educational Building RB,
Brown University
5.000%, 09/01/15 1,000 920
5.000%, 09/01/16 1,000 910
5.000%, 09/01/17 1,000 902
Rhode Island State Health &
Educational Building RB,
Higher Education Facility, AMBAC
5.125%, 11/15/14 2,000 1,868
5.000%, 11/15/18 1,000 885
Rhode Island State Health &
Educational Building RB, Higher
Education Facility, CONLEE
6.500%, 11/15/08 180 189
DESCRIPTION PAR (000) VALUE (000)
Rhode Island State Health &
Educational Building RB, Kent
Hospital Project, MBIA
7.000%, 07/01/10 $ 500 $ 525
Rhode Island State Health &
Educational Building RB,
Landmark Medical Project, FSA
5.600%, 10/01/12 2,000 2,018
Rhode Island State Health &
Educational Building RB,
New England Institutional Project,
CONLEE
5.900%, 03/01/10 400 408
Rhode Island State Health &
Educational Building RB,
Rhode Island School of Design,
MBIA
5.625%, 06/01/16 2,000 1,978
Rhode Island State Health &
Educational Building RB,
Roger Williams Hospital Project
5.250%, 11/15/16 1,000 933
Rhode Island State Housing &
Mortgage Finance RB
5.550%, 04/01/17 500 480
Rhode Island State Housing &
Mortgage Finance RB, Series 13
6.700%, 10/01/15 2,000 2,058
Rhode Island State Housing &
Mortgage Finance RB, Series 19A
5.700%, 04/01/15 1,500 1,470
Rhode Island State Housing &
Mortgage Finance RB,
Series 27-B, AMT
5.150%, 10/01/12 2,240 2,108
Rhode Island State Housing &
Mortgage Finance RB,
Series 30-A
4.900%, 10/01/14 2,000 1,838
Rhode Island State Housing &
Mortgage Finance RB,
Series A, LOC
5.650%, 10/01/07 1,000 1,006
51
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 RHODE ISLAND TAX-EXEMPT INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
Rhode Island State Housing &
Mortgage Finance RB,
Series E-1, AMT, FHA
7.500%, 10/01/11 $ 885 $ 917
Rhode Island State Industrial
Facilities RB
6.000%, 11/01/14 2,250 2,371
Rhode Island State Industrial
Facilities RB, AMT, LOC
6.500%, 03/01/14 500 512
Rhode Island State Public Projects
RB, Series A
5.250%, 02/01/10 1,000 1,003
Rhode Island State Turnpike &
Bridge Authority RB
5.000%, 12/01/11 1,000 936
5.350%, 12/01/17 2,130 1,976
Warwick GO, Series A, FGIC
5.000%, 03/01/15 1,180 1,099
5.000%, 03/01/16 1,205 1,107
----------
78,171
----------
PUERTO RICO -- 13.0%
Puerto Rico GO, FSA
5.750%, 07/01/17 1,000 1,010
Puerto Rico Commonwealth
GO (B)
5.230%, 07/01/14 3,500 1,531
Puerto Rico Electric Power
Authority RB
5.250%, 07/01/14 3,000 2,932
5.500%, 07/01/16 3,000 2,932
Puerto Rico Industrial, Tourist,
Educational, Medical, &
Environmental Control Facilities
RB, International American
University, Series A, MBIA
5.250%, 10/01/12 360 361
5.375%, 10/01/13 1,550 1,540
5.500%, 10/01/14 350 351
Puerto Rico Public Education &
Health Facilities RB, Series M,
CGTD
5.750%, 07/01/15 2,000 2,012
----------
12,669
----------
DESCRIPTION PAR (000) VALUE (000)
GUAM -- 1.0%
Guam Power Authority RB
5.250%, 10/01/11 $ 1,000 $ 1,007
----------
TOTAL MUNICIPAL BONDS
(Cost $94,772) 91,847
----------
REPURCHASE AGREEMENT -- 3.7%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$3,562,552 (collateralized by
U.S. Treasury Instruments:
total market value
$3,633,241) (C) 3,562 3,562
----------
TOTAL REPURCHASE AGREEMENT
(Cost $3,562) 3,562
----------
TOTAL INVESTMENTS -- 98.3%
(Cost $98,334) 95,409
----------
OTHER ASSETS AND LIABILITIES, NET -- 1.7% 1,612
----------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 9,732,145 outstanding
shares of beneficial interest 100,176
Accumulated Net Realized Loss on Investments (230)
Net Unrealized Depreciation on Investments (2,925)
----------
TOTAL NET ASSETS-- 100.0% $97,021
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.97
==========
52
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
(A) Pre-refunded Security. The pre-refunded date is shown as the maturity date
on the Statement of Net Assets.
(B) Zero Coupon Bond. The rate reported on the Statement of Net Assets is the
effective yield as of November 30, 1999.
(C) Tri-Party Repurchase Agreement
AMT -- Alternative Minimum Tax
GO -- General Obligation Bond
LOC -- Securities are held in connection with a letter of credit issued by a
major commercial bank or other financial institution.
RB -- Revenue Bond
The following organizations have provided underlying credit support for the
securities set forth in the Statement of Net Assets.
AMBAC -- American Municipal Bond Assurance Corporation
CGTD -- Commonwealth Guaranteed
CONLEE -- College Construction Loan Insurance Association
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Administration
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Insurance Assurance
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
53
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 ASSET ALLOCATION FUND
- --------------------------------------------------------------------------------
[pie chart omitted]
plot points follows:
U.S. Government Mortgage-Backed Obligations 9%
U.S. Treasury Obligations 9%
U.S. Government Agency Obligation 4%
Cash Equivalents 4%
Common Stock 55%
Corporate Bonds 15%
Asset-Backed Securities 4%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION SHARES VALUE (000)
COMMON STOCKS -- 53.6%
AEROSPACE & DEFENSE -- 0.3%
Allied Signal 3,150 $ 188
----------
AIR TRANSPORTATION -- 0.1%
FDX* 1,500 63
----------
AUTOMOTIVE -- 0.6%
General Motors Class H* 3,700 317
----------
BANKS -- 0.4%
Bank of America 3,600 211
----------
BEAUTY PRODUCTS -- 1.8%
Colgate-Palmolive 4,400 241
Procter & Gamble 6,750 729
----------
970
----------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 4.6%
Adelphia Communications,
Class A* 2,100 118
AT&T-Liberty Media, Class A* 12,000 502
Clear Channel Communications* 2,200 177
Comcast, Class A 9,200 416
Mediaone Group* 3,900 309
Omnicom Group 2,700 238
Rogers Commuications* 4,900 112
SBS Broadcasting SA* 5,200 211
DESCRIPTION SHARES VALUE (000)
Telewest Comm PLC-Sponsored
ADR* 2,845 $ 138
Univision Communications,
Class A* 2,950 258
----------
2,479
----------
CAPITAL GOODS/CONSTRUCTION -- 4.3%
Dii Group Inc* 6,400 404
General Electric 7,800 1,014
Mannesmann AG Sponsored ADR* 1,250 260
Molex 5,100 258
Southdown 2,700 125
Tyco International 7,000 280
----------
2,341
----------
DRUGS -- 1.5%
Amgen (A)* 4,000 182
Medimmune* 1,000 120
Pfizer 5,700 206
Schering Plough 1,700 87
Warner-Lambert 2,500 224
----------
819
----------
ELECTRICAL SERVICES -- 0.4%
AES* 4,200 243
----------
ENERGY -- 3.7%
Baker Hughes 14,500 366
El Paso Natural Gas 4,700 181
Exxon 3,400 270
Mobil 5,800 605
Schlumberger 9,500 571
----------
1,993
----------
ENTERTAINMENT -- 0.5%
Time Warner 4,000 247
----------
ENVIRONMENTAL PRODUCTS -- 0.2%
Waters* 2,150 105
----------
FINANCIAL SERVICES -- 3.0%
American Express 1,200 182
Fannie Mae 2,900 193
Wells Fargo 26,400 1,228
----------
1,603
----------
54
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
FOOD, BEVERAGE & TOBACCO -- 1.3%
Coca Cola 3,200 $ 215
Nestle, Sponsored ADR 5,200 468
----------
683
----------
HEALTH CARE -- 4.2%
Cardinal Health 2,200 115
Genzyme* 4,600 166
Johnson & Johnson 9,350 970
Merck 12,700 997
----------
2,248
----------
INSURANCE -- 5.2%
Aflac 3,100 148
American International Group 15,150 1,564
AXA Financial 9,800 329
Citigroup 10,600 571
XL Capital, Class A 3,200 163
----------
2,775
----------
LEISURE -- 0.2%
Mattel 6,000 86
----------
LUMBER & WOOD PRODUCTS -- 0.5%
Georgia Pacific 2,350 94
Weyerhaeuser 2,650 162
----------
256
----------
MEDICAL PRODUCTS & SERVICES -- 2.0%
Allergan 1,400 138
Boston Scientific* 14,300 302
Elan, Sponsored ADR* 12,200 334
Medtronic 8,000 311
----------
1,085
----------
MISCELLANEOUS BUSINESS SERVICES -- 0.9%
DST Systems* 3,300 208
Electronic Data Systems
Corporation 4,000 257
Parametric Technology* 1,400 32
----------
497
----------
DESCRIPTION SHARES VALUE (000)
PETROLEUM & FUEL PRODUCTS -- 0.4%
Apache 2,800 $ 100
Burlington Resources 2,700 91
----------
191
----------
PETROLEUM REFINING -- 0.2%
Kerr-McGee $ 1,950 112
----------
Printing & Publishing -- 0.4%
Gannett 1,500 107
New York Times, Class A 2,500 96
----------
203
----------
PROFESSIONAL SERVICES -- 0.1%
Unitedglobalcom Inc.* 700 73
----------
RAILROADS -- 0.1%
Canadian National Railway 1,900 57
----------
RETAIL -- 3.2%
Circuit City 2,650 129
Costco Wholesale* 3,300 303
CVS 4, 300 171
Estee Lauder 4,400 186
Home Depot 3,100 245
Kroger* 6,100 130
Wal-Mart Stores 9,500 547
----------
1,711
----------
TECHNOLOGY -- 7.6%
Analog Devices* 7,100 408
Cisco Systems* 8,650 771
IBM 2, 450 252
Intel 4,100 314
Lucent Technologies 16,250 1,187
Microsoft* 4,300 391
Motorola 3,200 366
Texas Instruments 2,150 207
Vitesse Semiconductor* 4,800 216
----------
4,112
----------
TELEPHONES & TELECOMMUNICATIONS -- 4.6%
ADC Telecommunications* 3,450 184
Alltel 3,350 290
Centurytel 5,100 235
MCI WorldCom* 2,950 244
Nextlink Communications* 2,300 115
55
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 ASSET ALLOCATION FUND (CONTINUED)
- --------------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
Nippon Telegraph & Telephone* 4,100 $ 366
Nokia, ADR 1,050 145
NTL* 4,400 401
SBC Communications 10,100 525
----------
2,505
----------
TESTING LABORATORIES -- 0.1%
PE - PE Biosystems 1,000 82
----------
WHOLESALE -- 1.2%
Sysco 16,700 636
----------
TOTAL COMMON STOCKS
(Cost $18,492) 28,891
----------
PREFERRED STOCK -- 0.4%
Hartford Capital II 8,000 194
----------
TOTAL PREFERRED STOCK
(Cost $200) 194
----------
U.S. TREASURY OBLIGATIONS -- 9.2%
U.S. Treasury Bonds
7.250%, 05/15/16 $ 1,100 1,170
7.250%, 08/15/22 350 378
7.125%, 02/15/23 300 320
6.125%, 11/15/27 150 143
5.250%, 11/15/28 1,390 1,173
5.250%, 02/15/29 200 170
U.S. Treasury Notes
6.125%, 07/31/00 400 401
6.125%, 09/30/00 450 451
5.625%, 11/30/00 245 244
6.000%, 08/15/09 500 493
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,131) 4,943
----------
U.S. GOVERNMENT MORTGAGE-BACKED BONDS -- 8.9%
Federal Home Loan Mortgage
Corporation
5.750%, 03/15/09 500 464
6.000%, 11/01/28 2,390 2,220
DESCRIPTION PAR (000) VALUE (000)
Federal National Mortgage
Association
6.000%, 06/01/13 $ 1,116 $ 1,068
8.000%, 11/01/29 730 740
Government National Mortgage
Association
6.000%, 04/15/13 213 205
7.500%, 06/15/23 88 89
----------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED BONDS
(Cost $5,008) 4,786
----------
CORPORATE BONDS -- 14.5%
BANKS -- 1.1%
Citicorp
6.375%, 11/15/08 300 280
First Union
7.500%, 07/15/06 315 317
----------
597
----------
CAPITAL GOODS/CONSTRUCTION -- 0.8%
Hydro-Quebec, YB
8.625%, 05/20/02 220 228
Province of Ontario, YB
7.375%, 01/27/03 220 224
----------
452
----------
COMMUNICATIONS EQUIPMENT -- 1.4%
STMicroelectronics ADR 1 137
Lucent Technologies
5.500%, 11/15/08 415 375
Tele Communications
9.800%, 02/01/12 200 238
----------
750
----------
ENTERTAINMENT -- 0.5%
Time Warner Entertainment
10.150%, 05/01/12 210 251
----------
FINANCIAL SERVICES -- 3.0%
Ford Motor Credit
6.750%, 05/15/05 100 98
7.375%, 10/28/09 425 428
56
<PAGE>
BOSTON 1784 FUNDS
DESCRIPTION PAR (000) VALUE (000)
First USA Bank
7.650%, 08/01/03 $ 265 $ 268
General Motors Acceptance
6.625%, 10/01/02 200 198
JP Morgan
6.000%, 01/15/09 400 364
National Rural Utilities
5.750%, 11/01/08 300 271
----------
1,627
----------
INDUSTRIAL -- 2.9%
Burlington North
9.250%, 10/01/06 250 271
DaimlerChrysler
7.200%, 09/01/09 245 245
Dupont Ei Nemour
6.875%, 10/15/09 200 197
Ford Motor
7.250%, 10/01/08 250 247
Northrop Grumman
7.000%, 03/01/06 250 241
Trans-Canada Pipelines, YB
9.125%, 04/20/06 310 333
----------
1,534
----------
INTERNET SERVICES -- 0.5%
Doubleclick* 1 120
Yahoo* 1 144
----------
264
----------
PAPER & PAPER PRODUCTS -- 0.6%
Fort James
6.875%, 09/15/07 360 344
----------
PETROLEUM & FUEL PRODUCTS -- 1.1%
Atlantic Richfield
5.900%, 04/15/09 350 318
Enron Oil & Gas
6.000%, 12/15/08 315 284
----------
602
----------
DESCRIPTION PAR (000) VALUE (000)
RETAIL -- 0.8%
Staples
7.125%, 08/15/07 $ 200 $ 194
Wal-Mart Eurobond
6.750%, 05/24/02 260 261
----------
455
----------
TELEPHONES & TELECOMMUNICATIONS -- 1.8%
Cable & Wireless Communication
6.375%, 03/06/03 200 199
MCI Worldcom
6.125%, 04/15/02 140 137
Sprint Capital
6.900%, 05/01/19 375 347
Telewest Communication, PLC (B)
0.000%, 11/15/99 2 --
US West Capital Funding
6.875%, 08/15/01 275 274
----------
957
----------
TOTAL CORPORATE BONDS
(Cost $8,037) 7,833
----------
ASSET-BACKED SECURITIES -- 4.3%
Citibank Credit Series 1999-7
Class A
6.650%, 11/15/06 250 248
Ford Credit Auto Owner Trust,
Series 1999-D, Class A
6.520%, 09/15/03 250 249
General Motors Acceptance
6.974%, 07/15/32 218 217
PNC Student Loan Trust I,
Series 1997-2, Class A6
6.572%, 01/25/04 600 587
Sears Credit Account Master Trust,
Series 1996-4, Class A
6.450%, 10/16/06 500 497
Sears Credit Account Master
Trust, Series 1997-1, Class A
6.200%, 07/16/07 500 492
----------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,314) 2,290
----------
57
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 ASSET ALLOCATION FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 4.3%
Federal Home Loan Bank
5.800%, 09/02/08 $ 250 $ 234
Federal National Mortgage
Association
5.750%, 04/15/03 235 230
6.500%, 03/01/11 343 336
6.500%, 05/01/28 861 821
Federal National Mortgage
Association, MTN
7.240%, 01/04/07 500 500
Private Export Funding Corporation
8.400%, 07/31/01 25 26
Tennessee Valley Authority Principal
STRIPS (A)
7.813%, 04/15/42 500 189
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $2,393) 2,336
----------
REPURCHASE AGREEMENT -- 4.3%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$2,322,360 (collateralized by
U.S. Treasury Instruments:
total market value
$2,368,441) (B) 2,322 2,322
----------
TOTAL REPURCHASE AGREEMENT
(Cost $2,322) 2,322
----------
TOTAL INVESTMENTS -- 99.5%
(Cost $43,897) 53,595
----------
OTHER ASSETS AND LIABILITIES, NET -- 0.5% 249
----------
VALUE (000)
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 3,504,344 outstanding
shares of beneficial interest $ 43,604
Undistributed Net Investment Income 211
Accumulated Net Realized Gain on
Investments 331
Net Unrealized Appreciation on
Investments 9,698
----------
TOTAL NET ASSETS -- 100.0% $53,844
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $15.36
==========
* Non-income producing security
(A) Zero Coupon Security. The rate reported on the Statement of Net Assets is
the effective rate as of November 30, 1999.
(B) Tri-Party Repurchase Agreement
ADR -- American Depository Receipt
MTN -- Medium Term Note
STRIPS -- Separately Traded Registered Interest and Principal Securities
YB -- Yankee Bond
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
58
<PAGE>
BOSTON 1784 FUNDS
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
[pie chart omitted]
plot points follows:
Technology 22%
Telephone & Telecommunications 6%
Cash Equivalent 4%
Capital Goods/Machinery 2%
Communications Equipment 4%
Computers & Services 4%
Consumer Durables 2%
Consumer Non-Durables 2%
Data Processing & Management 1%
Drugs 5%
Energy 6%
Entertainment 1%
Financial Services 5%
Gas/Natural Gas 2%
Retail 11%
Restaurants 7%
Printing & Publishing 1%
Petroleum Refining 1%
Medical Products & Services 6%
Insurance 3%
Health Care 5%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION SHARES VALUE (000)
COMMON STOCKS -- 96.4%
CAPITAL GOODS/MACHINERY -- 2.0%
General Electric 80,000 $ 10,400
----------
COMMUNICATIONS EQUIPMENT -- 4.2%
Qualcomm* 60,000 21,739
----------
COMPUTERS & SERVICES -- 3.9%
Adaptec* 200,000 10,775
Equant-NY Registered
Shares (NL)* 100,000 9,425
----------
20,200
----------
CONSUMER DURABLES -- 2.2%
Cintas 250,000 11,484
----------
CONSUMER NON-DURABLES -- 2.1%
Coca-Cola 160,000 10,770
----------
DATA PROCESSING & MANAGEMENT -- 1.0%
Concord EFS* 200,000 5,300
----------
DESCRIPTION SHARES VALUE (000)
DRUGS -- 5.0%
Schering-Plough 110,000 $ 5,624
Warner-Lambert 225,000 20,180
----------
25,804
----------
ENERGY -- 6.0%
Enron 500,000 19,031
Exxon 150,000 11,897
----------
30,928
----------
ENTERTAINMENT -- 1.2%
Time Warner 100,000 6,169
----------
FINANCIAL SERVICES -- 5.2%
Fifth Third Bancorp 200,000 14,000
Firstar 500,000 13,000
----------
27,000
----------
GAS/NATURAL GAS -- 2.0%
The Williams Companies 300,000 10,125
----------
HEALTH CARE -- 5.0%
Johnson & Johnson 120,000 12,450
Pfizer 375,000 13,570
----------
26,020
----------
INSURANCE -- 3.1%
American International
Group 156,250 16,133
----------
MEDICAL PRODUCTS & SERVICES -- 6.2%
Guidant* 250,000 12,500
Medtronic 500,000 19,437
----------
31,937
----------
PETROLEUM REFINING -- 1.1%
Murphy Oil 100,000 5,650
----------
PRINTING & PUBLISHING -- 0.6%
Reader's Digest, Class A 100,000 2,900
----------
RESTAURANTS -- 7.1%
J.D. Wetherspoon (UK) 3,525,000 22,559
Outback Steakhouse* 105,000 2,474
PizzaExpress (UK) 935,000 11,497
----------
36,530
----------
59
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 GROWTH AND INCOME FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
RETAIL -- 10.5%
Bed Bath & Beyond* 600,000 $ 18,750
Home Depot 450,000 35,578
----------
54,328
----------
TECHNOLOGY -- 21.7%
Cisco Systems* 400,000 35,675
Intel 380,000 29,141
Microsoft* 300,000 27,314
QLogic* 50,000 5,656
Texas Instruments 150,000 14,409
----------
112,195
----------
TELEPHONES & TELECOMMUNICATIONS -- 6.3%
AT&T 300,000 16,763
JDS Uniphase* 40,000 9,145
MCI WorldCom* 40,000 3,308
Qwest Communications
International* 100,000 3,419
----------
32,635
----------
TOTAL COMMON STOCKS
(Cost $244,602) 498,247
----------
REPURCHASE AGREEMENT -- 3.6%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$18,584,881 (collateralized by
U.S. Treasury Instruments:
total market value
$18,953,646) (A) $18,582 18,582
----------
TOTAL REPURCHASE AGREEMENT
(Cost $18,582) 18,582
----------
TOTAL INVESTMENTS -- 100.0%
(Cost $263,184) 516,829
----------
OTHER ASSETS AND LIABILITIES, NET -- 0.0% (97)
----------
VALUE (000)
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 23,528,939 outstanding
shares of beneficial interest $248,631
Accumulated net investment loss (263)
Accumulated net realized gain on investments 14,719
Net unrealized appreciation on investments 253,645
----------
TOTAL NET ASSETS -- 100.0% $516,732
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $21.96
==========
* Non-income producing security
(A) Tri-Party Repurchase Agreement
NL -- Netherlands Equity
UK -- United Kingdom Equity
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
60
<PAGE>
BOSTON 1784 FUNDS
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 GROWTH FUND
- --------------------------------------------------------------------------------
[pie chart omitted]
plot points follows:
Technology 15%
Wholesale 1%
Cash Equivalents 3%
Petroleum & Fuel Products 1%
Energy 3%
Consumer Products 1%
Television Broadcasting 1%
Broadcasting Newspapers
& Advertising 2%
Computer Equipment & Services 16%
Consumer Druables 4%
Data Processing & Management 2%
Drugs 3%
Capital Goods/Construction 1%
Financial Services 3%
Communications Equipment 3%
Computer & Services 8%
Medical Products & Services 4%
Miscellaneous Business Services 8%
Restaurants 11%
Retail 10%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION SHARES VALUE (000)
COMMON STOCKS -- 95.8%
BROADCASTING, NEWSPAPERS & ADVERTISING -- 2.2%
Antec* 100,000 $ 5,600
----------
CAPITAL GOODS/CONSTRUCTION -- 1.2%
Elcor 90,000 2,914
----------
COMMUNICATIONS EQUIPMENT -- 2.9%
VerticalNet* 82,000 7,185
----------
COMPUTER EQUIPMENT & SERVICES -- 15.5%
Cree Research* 76,000 4,341
Cypress Semiconductor* 175,000 4,769
Emulex* 130,000 21,125
Semtech* 175,000 8,537
----------
38,772
----------
COMPUTERS & SERVICES -- 7.4%
Ancor Communications* 220,000 13,337
Crossroads Systems* 13,400 1,182
Finistar* 1,931 223
DESCRIPTION SHARES VALUE (000)
Gadzoox Networks* 1,800 $ 142
MicroStrategy* 20,000 2,450
Splitrock Services* 70,000 1,120
----------
18,454
----------
CONSUMER DURABLES -- 3.4%
Cintas 80,000 3,675
Danaher 100,000 4,912
----------
8,587
----------
CONSUMER PRODUCTS -- 0.5%
Steven Madden* 100,000 1,281
----------
DATA PROCESSING & MANAGEMENT -- 2.1%
Concord EFS* 200,000 5,300
----------
DRUGS -- 2.7%
Millennium Pharmaceutical* 70,000 6,814
----------
ENERGY -- 3.2%
Basin Exploration* 90,000 1,592
St. Mary Land & Exploration 115,000 2,401
Stone Energy* 100,000 3,894
----------
7,887
----------
FINANCIAL SERVICES -- 2.9%
Fifth Third Bancorp 50,000 3,500
Firstar 150,000 3,900
----------
7,400
----------
HEALTH CARE -- 0.4%
World Heart* 100,000 913
----------
MEDICAL PRODUCTS & SERVICES -- 3.7%
ATS Medical* 100,000 950
Guidant* 100,000 5,000
Medtronic 82,579 3,210
----------
9,160
----------
MISCELLANEOUS BUSINESS SERVICES -- 8.2%
Musicmaker.com* 200,000 1,500
Telescan* 125,000 3,359
VeriSign* 74,000 13,750
WebTrends* 30,000 1,727
----------
20,336
----------
61
<PAGE>
as of november 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
Boston 1784 Growth Fund (concluded)
- --------------------------------------------------------------------------------
DESCRIPTION SHARES/PAR (000) VALUE (000)
PETROLEUM & FUEL PRODUCTS -- 1.3%
Shaw Group* 160,000 $ 3,340
----------
RESTAURANTS -- 11.2%
J.D. Wetherspoon (UK) 2,500,000 16,000
P.F Changs China Bistro* 220,000 5,593
Papa John's International* 70,000 2,513
PizzaExpress (UK) 310,000 3,812
----------
27,918
----------
RETAIL -- 8.7%
99 Cents Only Stores* 50,000 1,419
Bebe Stores* 50,000 1,556
Bed Bath & Beyond* 200,000 6,250
Dollar Tree Stores* 175,000 7,831
Fastenal 120,000 4,620
----------
21,676
----------
TECHNOLOGY -- 15.0%
Legato Systems* 180,000 12,156
QLogic* 200,000 22,625
Sterling Software* 100,000 2,631
----------
37,412
----------
TELEPHONES & TELECOMMUNICATIONS -- 0.9%
Network Access Solutions* 100,000 2,125
----------
TELEVISION BROADCASTING -- 1.3%
Univision Communications,
Class A* 36,000 3,150
----------
WHOLESALE -- 1.1%
Miami Computer Supply* 100,000 2,800
----------
TOTAL COMMON STOCKS
(Cost $122,902) 239,024
----------
REPURCHASE AGREEMENT -- 2.6%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$6,402,993 (collateralized by
U.S. Treasury Instruments:
total market value
$6,530,042) (A) $6,402 6,402
----------
DESCRIPTION VALUE (000)
TOTAL REPURCHASE AGREEMENT
(Cost $6,402) $ 6,402
----------
TOTAL INVESTMENTS -- 98.4%
(Cost $129,304) 245,426
----------
OTHER ASSETS AND LIABILITIES, NET -- 1.6% 3,970
----------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 15,491,744 outstanding
shares of beneficial interest 127,369
Accumulated net investment loss (448)
Accumulated net realized gain on
investments 6,353
Net unrealized appreciation on investments 116,122
----------
TOTAL NET ASSETS -- 100.0% $249,396
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $16.10
==========
* Non-income producing security
(A) Tri-Party Repurchase Agreement
(UK) -- United Kingdom Equity
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
62
<PAGE>
BOSTON 1784 FUNDS
as of november 30, 1999
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 INTERNATIONAL EQUITY FUND
- -------------------------------------------------------------------------------
[pie chart omitted]
plot points follows:
United Kingdom 13%
Cash Equivalent 10%
Australia 1%
Finland 5%
Other Europe 10%
France 10%
Germany 9%
Other Far East 8%
Other North & South America 2%
Japan 32%
% OF TOTAL PORTFOLIO INVESTMENTS
DESCRIPTION SHARES VALUE (000)
FOREIGN COMMON STOCKS -- 95.8%
AUSTRALIA -- 0.9%
Broken Hill Proprietary 392,842 $ 4,304
----------
BRAZIL -- 0.4%
Aracruz Celulose ADR 95,200 1,940
----------
CANADA -- 0.9%
Nortel Networks 59,200 4,381
----------
CHINA -- 2.8%
China Telecom* 2,426,000 13,027
----------
FINLAND -- 5.0%
Nokia 115,448 16,375
Sonera Group 67,100 2,776
UPM-Kymmene 146,900 4,920
----------
24,071
----------
FRANCE -- 11.2%
Alstom 90,900 2,586
Axa 24,336 3,287
Banque National de Paris 92,400 8,482
Cap Gemini 24,989 4,427
Carrefour 29,100 5,079
DESCRIPTION SHARES VALUE (000)
Lafarge 26,100 $ 2,466
Sanofi-Synthelabo* 95,308 3,932
STMicroelectronics ADR 126,100 15,747
Total Fina, Class B 57,400 7,649
----------
53,655
----------
GERMANY -- 9.3%
Allianz 19,700 5,778
Bayerische Vereinsbank 95,400 5,928
Deutsche Bank 85,900 5,672
EM.TV & Merchandising-- New 25,000 1,891
Epcos* 58,100 3,575
Mannesmann 80,000 16,657
Siemens 46,900 4,736
----------
44,237
----------
HONG KONG -- 1.7%
HSBC Holdings 263,200 3,493
Hutchison Whampoa 401,000 4,931
----------
8,424
----------
IRELAND -- 0.7%
Jefferson Smurfit Group 1,140,100 3,088
----------
ITALY -- 1.0%
Mediaset 191,400 2,182
Telecom Italia Mobile 350,000 2,754
----------
4,936
----------
JAPAN -- 34.0%
Advantest 20,200 3,372
Aeon Credit Service 12,300 2,186
Aiful 28,700 4,672
Asahi Bank 230,000 1,613
Credit Saison 9,400 190
Daiwa Securities Group 628,000 8,979
Fujitsu 273,000 9,692
Funai Electric 15,300 9,588
Furukawa Electric 728,000 7,789
Industrial Bank of Japan 455,000 5,368
Japan Telecom 239 9,375
Marubeni 1,240,000 4,828
Matsushita Communications 35,000 6,727
Murata Manufacturing 39,000 6,471
Mycal Card 23,000 1,105
NEC 305,000 7,134
63
<PAGE>
as of november 30, 1999
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
BOSTON 1784 INTERNATIONAL EQUITY FUND (CONCLUDED)
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
Nikko Securities 450,000 $ 5,605
Nippon System Development 33,800 3,812
Nippon Telegraph & Telephone 400 7,179
Nomura Securities 129,000 2,302
NTT Mobile Communication
Network 389 13,657
Ryohin Keikaku 11,500 2,712
Secom 62,000 6,992
Shin-Etsu Chemical 110,000 4,347
Softbank 15,000 10,841
Sony 45,800 8,489
Yahoo Japan* 10 7,061
----------
162,086
----------
MEXICO -- 1.0%
Telefonos de Mexico ADR,
Series L 50,600 4,684
----------
NETHERLANDS -- 2.9%
Ahold 2,740 87
Akzo Nobel 38,300 1,642
ASM Lithography Holdings* 79,300 7,417
Heineken 52,400 2,537
ING Groep 35,800 2,017
----------
13,700
----------
NORWAY -- 0.4%
Tomra Systems 51,622 1,813
----------
SINGAPORE -- 1.0%
DBS Group Holdings Limited 194,525 2,523
Singapore Press Holdings 115,000 2,156
----------
4,679
----------
SOUTH KOREA -- 3.3%
Housing & Commercial Bank
GDR* 52,400 1,454
Korea Telecom ADR* 108,600 5,756
Pohang Iron & Steel ADR* 111,300 4,000
Samsung Electronics --
GDR 144A 42,500 4,438
----------
15,648
----------
DESCRIPTION SHARES VALUE (000)
SPAIN -- 0.6%
Telefonica - New* 3,007 $ 50
Telefonica* 143,992 3,004
----------
3,054
----------
SWEDEN -- 1.8%
Ericsson, Series B 128,400 6,229
Nordbanken Holding 425,000 2,549
----------
8,778
----------
SWITZERLAND -- 3.1%
Clariant 3,800 1,636
Holderbank Financiere Glarus 4,390 5,514
Roche Holding-Genusscheine 286 3,461
UBS-Registered 15,280 4,189
----------
14,800
----------
TAIWAN -- 1.0%
Taiwan Semiconductor ADR 137,210 4,914
----------
UNITED KINGDOM -- 12.8%
Allied Zurich 286,400 3,474
Bank of Scotland 2,431 29
Barclays 99,944 2,894
BP Amoco 590,000 6,017
British Telecommunications 243,678 4,900
CMG 54,200 2,866
Dixons Group 368,300 8,039
Glaxo Wellcome 262,542 7,879
Imperial Tobacco Group 226,600 2,372
Lloyds TSB Group 238,278 3,056
Misys 214,300 2,329
Prudential 273,300 4,496
Reckitt & Colman 630 8
Shell Transportation &
Trading 1,001,200 7,711
Vodafone Group 989,545 4,669
----------
60,739
----------
TOTAL FOREIGN COMMON STOCK
(Cost $321,642) 456,958
----------
64
<PAGE>
BOSTON 1784 FUNDS
DESCRIPTION SHARES/PAR (000) VALUE (000)
FOREIGN PREFERRED STOCK -- 0.6%
GERMANY -- 0.6%
Porsche 1,017 $ 2,917
-----------
TOTAL FOREIGN PREFERRED STOCK
(Cost $2,722) 2,917
-----------
REPURCHASE AGREEMENT -- 11.0%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$52,668,166 (collateralized by
U.S. Treasury Instruments:
total market value
$53,713,218) (A) $52,660 52,660
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $52,660) 52,660
-----------
TOTAL INVESTMENTS -- 107.4%
(Cost $377,024) $512,535
===========
* Non-income producing security
(A) Tri-Party Repurchase Agreement
ADR-- American Depository Receipt
GDR -- Global Depository Receipt
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
65
<PAGE>
This page intentionally left blank.
<PAGE>
BOSTON 1784 FUNDS
AS OF NOVEMBER 30, 1999
STATEMENTS OF ASSETS AND LIABILITIES (000) (UNAUDITED)
- --------------------------------------------------------------------------------
Boston 1784 International
Equity Fund
----------------------------
ASSETS:
Investments at value (cost $377,024) $512,535
Cash and Foreign Currency 303
Income Receivable 1,340
Investment Securities Sold 1,612
Capital Shares Sold 231
Other Assets 34
------------
Total Assets 516,055
------------
LIABILITIES:
Investment Securities Purchased 30,403
Capital Shares Redeemed 7,739
Accrued Expenses Payable 592
Other Liabilities 48
------------
Total Liabilities 38,782
------------
Total Net Assets 477,273
============
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 31,103,235
outstanding shares of beneficial interest 320,536
Accumulated net investment loss (2,548)
Accumulated net realized gain on investments 23,809
Net unrealized appreciation on investments 135,511
Net unrealized depreciation on forward currency
contracts, foreign currency and translation of
other assets and liabilities in foreign currency (35)
------------
Total Net Assets $477,273
------------
------------
Net Asset Value, Offering, and Redemption Price Per Share $ 15.35
------------
------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
67
<PAGE>
STATEMENTS OF OPERATIONS (000) (UNAUDITED)
- --------------------------------------------------------------------------------
FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 1999
<TABLE>
<CAPTION>
BOSTON BOSTON
BOSTON BOSTON 1784 BOSTON 1784
1784 1784 PRIME 1784 BOSTON U.S. GOVERNMENT
TAX-FREE U.S. TREASURY MONEY SHORT-TERM 1784 MEDIUM-TERM
MONEY MARKET MONEY MARKET MARKET INCOME INCOME INCOME
FUND FUND FUND FUND FUND FUND
===================================================================================================================================
INCOME:
<S> <C> <C> <C> <C> <C> <C>
Interest Income $17,115 $10,244 $4,493 $4,575 $11,124 $8,459
Dividend Income -- -- -- -- -- --
Less: Foreign Taxes Withheld -- -- -- -- -- --
------- ------- ------- --------- --------- -------
Total Income 17,115 10,244 4,493 4,575 11,124 8,459
------- ------- ------- --------- --------- -------
EXPENSES:
Investment Advisory Fees 1,938 804 340 382 1,270 1,017
Less: Waiver of Investment
Advisory Fees -- (78) (69) -- (97) (84)
Administrator Fees 316 132 56 49 112 90
Shareholder Servicing Fees -- 201 85 -- -- --
12b-1 Fees -- -- -- 191 429 344
Less: Waiver of 12b-1 Fees -- -- -- (191) (429) (344)
Transfer Agent Fees & Expenses 84 196 111 40 43 38
Registration Fees 16 3 3 2 6 4
Trustee Fees 10 4 1 2 3 3
Printing 18 7 4 2 8 7
Amortization of Deferred
Organizational Costs -- -- -- -- -- --
Professional Fees 37 15 6 6 13 10
Custodian Fees 26 4 8 5 11 8
Other Expenses 6 19 8 1 4 7
------- ------- ------- --------- --------- -------
Total Expenses, Net of Waivers 2,451 1,307 553 489 1,373 1,100
------- ------- ------- --------- --------- -------
Net Investment Income (Loss) 14,664 8,937 3,940 4,086 9,751 7,359
------- ------- ------- --------- --------- -------
Net Realized Gain (Loss)
on Investments (1) -- -- (485) (5,586) (1,392)
Net Realized Gain (Loss) from
Forward Foreign
Currency Contracts and Foreign
Currency Transactions -- -- -- -- -- --
Net Change in Unrealized
Appreciation (Depreciation)
on Investments -- -- -- (1,214) (3,640) (4,108)
Net Change in Unrealized Appreciation 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) -- -- (1,699) (9,226) (5,500)
------- ------- ------- --------- --------- -------
Net Increase (Decrease) in Net Assets
Resulting From Operations $14,663 $ 8,937 $3,940 $ 2,387 $ 525 $ 1,859
======= ======= ======= ========= ========= =======
</TABLE>
68
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
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>
$ 9,090 $ 4,770 $ 1,797 $ 6,830 $ 2,639 $ 792 $ 354 $ 331 $ 2,745
-- -- -- -- -- 122 1,720 157 486
-- -- -- -- -- -- (12) -- (169)
- --------- ------- ------- ------- ------- ------- ------- -------- --------
9,090 4,770 1,797 6,830 2,639 914 2,062 488 3,062
- --------- ------- ------- ------- ------- ------- ------- -------- --------
1,287 675 257 963 367 199 1,939 773 2,072
(100) (60) (31) (89) (37) -- -- -- --
114 60 22 85 32 18 171 68 135
-- -- -- -- -- -- -- -- --
435 228 87 325 123 67 655 261 518
(435) (228) (87) (325) (123) (67) (655) (261) (518)
40 31 18 43 22 36 125 59 48
6 3 1 4 1 -- 8 3 6
3 2 1 3 1 1 5 2 4
8 5 2 7 2 1 13 5 9
-- -- -- -- -- -- -- -- --
13 7 3 9 4 2 21 6 15
10 4 2 7 3 12 33 16 111
11 2 3 9 1 1 6 4 9
- --------- ------- ------- ------- ------- ------- ------- -------- --------
1,392 729 278 1,041 396 270 2,321 936 2,409
- --------- ------- ------- ------- ------- ------- ------- -------- --------
7,698 4,041 1,519 5,789 2,243 644 (259) (448) 653
- --------- ------- ------- ------- ------- ------- ------- -------- --------
(3,498) (56) -- (53) 37 1,275 24,817 19,484 70,470
-- -- -- -- -- -- (4) 8 (98)
(12,408) (7,608) (2,944) (10,903) (4,784) 1,740 23,209 60,581 84,374
-- -- -- -- -- -- -- -- 28
- --------- ------- ------- ------- ------- ------- ------- -------- --------
(15,906) (7,664) (2,944) (10,956) (4,747) 3,015 48,022 80,073 154,774
- --------- ------- ------- ------- ------- ------- ------- -------- --------
$ (8,208) $(3,623) $(1,425) $(5,167) $(2,504) $3,659 $47,763 $ 79,625 $155,427
========= ======= ======= ======= ======= ======= ======= ======== ========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
69
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000) (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOSTON BOSTON BOSTON BOSTON
1784 1784 1784 1784
TAX-FREE U.S. TREASURY PRIME SHORT-TERM
MONEY MARKET MONEY MARKET MONEY MARKET INCOME
FUND FUND FUND FUND
====================================================================================================================================
6/1/99 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
11/30/99 5/31/99 11/30/99 5/31/99 11/30/99 5/31/99 11/30/99 5/31/99
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Investment Income $ 14,664 $ 31,358 $8,937 $ 17,274 $ 3,940 $ 7,370 $ 4,086 $ 9,844
Net Realized Gain (Loss) on Investments (1) 24 -- 6 -- -- (485) 605
Net Change in Unrealized Depreciation
on Investments -- -- -- -- -- -- (1,214) (1,760)
---------- ---------- -------- -------- -------- -------- -------- --------
Net Increase (Decrease) in Net Assets Resulting
from Operations 14,663 31,382 8,937 17,280 3,940 7,370 2,387 8,689
---------- ---------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net Investment Income (14,664) (31,358) (8,951) (17,274) (3,941) (7,370) (4,089) (9,843)
Realized Capital Gains -- -- -- -- -- -- -- --
---------- ---------- -------- -------- -------- -------- -------- --------
Total Distributions (14,664) (31,358) (8,951) (17,274) (3,941) (7,370) (4,089) (9,843)
---------- ---------- -------- -------- -------- -------- -------- --------
SHARE TRANSACTIONS:
Proceeds from Shares Issued 828,639 1,562,128 463,389 911,957 214,332 309,603 13,203 42,172
Reinvestment of Cash Distributions 2,040 4,871 7,577 16,728 3,019 6,288 2,862 6,066
Cost of Shares Redeemed (741,995)(1,605,367)(474,643)(910,573)(211,752) (278,301) (44,732) (68,308)
---------- ---------- -------- -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets from
Share Transactions 88,684 (38,368) (3,677) 18,112 5,599 37,590 (28,667) (20,070)
---------- ---------- -------- -------- -------- -------- -------- --------
Total Increase (Decrease) in
Net Assets 88,683 (38,344) (3,691) 18,118 5,598 37,590 (30,369) (21,224)
NET ASSETS:
Beginning of Period 969,380 1,007,724 390,775 372,657 165,178 127,588 176,032 197,256
---------- ---------- -------- -------- -------- -------- -------- --------
NET ASSETS:
End of Period $1,058,063 $ 969,380 $387,084 $390,775 $170,776 $165,178 $145,663 $176,032
========== ========== ======== ======== ======== ======== ======== ========
CAPITAL SHARE TRANSACTIONS:
Shares Issued 828,639 1,562,128 463,389 911,957 214,332 309,603 1,324 4,164
Shares Issued in Lieu of
Cash Distributions 2,040 4,871 7,577 16,728 3,019 6,288 288 599
Shares Redeemed (741,995)(1,605,367)(474,643)(910,573) (211,752)(278,301) (4,483) (6,746)
---------- ---------- -------- -------- -------- -------- -------- --------
Net Increase (Decrease) in
Capital Shares 88,684 (38,368) (3,677) 18,112 5,599 37,590 (2,871) (1,983)
========== ========== ======== ======== ======== ======== ======== ========
</TABLE>
70
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOSTON BOSTON BOSTON BOSTON BOSTON
1784 1784 1784 1784 1784
BOSTON U.S. GOVERNMENT TAX-EXEMPT CONNECTICUT FLORIDA MASSACHUSETTS
1784 MEDIUM-TERM MEDIUM-TERM TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
INCOME INCOME INCOME INCOME INCOME INCOME
FUND FUND FUND FUND FUND FUND
====================================================================================================================================
6/1/99 6/1/98 6/1/99 6/1/98 6/1/99 6/1/98 6/1/99 6/1/98 6/1/99 6/30/98 6/1/99 6/1/98
to to to to to to to to to to to to
11/30/99 5/31/99 11/30/99 5/31/99 11/30/99 5/31/99 11/30/99 5/31/99 11/30/99 5/31/99 11/30/99 5/31/99
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9,751 $ 20,032 $ 7,359 $ 14,257 $ 7,698 $ 14,101 $ 4,041 $ 7,408 $ 1,519 $ 2,504 $ 5,789 $ 10,113
(5,586) 4,091 (1,392) 434 (3,498) 6,046 (56) 1,143 -- 331 (53) 1,109
(3,640) (12,468) (4,108) (4,968) (12,408) (7,281) (7,608) (2,686) (2,944) (821) (10,903) (2,392)
- -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- -------- --------
525 11,655 1,859 9,723 (8,208) 12,866 (3,623) 5,865 (1,425) 2,014 (5,167) 8,830
- -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- -------- --------
(10,213) (20,031) (7,231) (14,256) (7,698) (14,101) (4,039) (7,408) (1,519) (2,504) (5,789) (10,113)
(1,812) (2,223) -- -- (3,786) (5,447) (892) (1,010) -- (755) -- --
- -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- -------- --------
(12,025) (22,254) (7,231) (14,256) (11,484) (19,548) (4,931) (8,418) (1,519) (3,259) (5,789) (10,113)
- -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- -------- --------
48,780 69,930 21,827 71,574 46,221 88,484 19,747 68,008 9,188 22,210 40,685 98,037
2,259 5,831 598 1,267 4,129 5,924 1,660 2,159 19 767 1,623 3,049
(52,470)(114,522) (25,024) (44,246) (42,491) (34,309) (22,308) (21,996) (6,195) (4,729) (47,155) (38,069)
- -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- -------- --------
(1,431) (38,761) (2,599) 28,595 7,859 60,099 (901) 48,171 3,012 18,248 (4,847) 63,017
- -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- -------- --------
(12,931) (49,360) (7,971) 24,062 (11,833) 53,417 (9,455) 45,618 68 17,003 (15,803) 61,734
343,196 392,556 276,781 252,719 356,995 303,578 187,725 142,107 68,796 51,793 267,871 206,137
- -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- -------- --------
$330,265 $343,196 $268,810 $276,781 $345,162 $356,995 $178,270 $187,725 $68,864 $68,796 $252,068 $267,871
======== ======== ======== ======== ======== ======== ======== ======== ======= ======= ======== ========
4,981 6,813 2,339 7,383 4,627 8,401 1,906 6,267 930 2,151 4,033 9,328
232 565 64 130 420 563 162 198 2 74 161 291
(5,368) (11,138) (2,684) (4,567) (4,252) (3,252) (2,155) (2,025) (630) (458) (4,683) (3,627)
- -------- -------- -------- -------- -------- -------- -------- -------- ------- ------- -------- --------
(155) (3,760) (281) 2,946 795 5,712 (87) 4,440 302 1,767 (489) 5,992
======== ======== ======== ======== ======== ======== ======== ======== ======= ======= ======== ========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
71
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000) (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOSTON
1784 BOSTON BOSTON BOSTON
RHODE ISLAND 1784 1784 BOSTON 1784
TAX-EXEMPT ASSET GROWTH AND 1784 INTERNATIONAL
INCOME ALLOCATION INCOME GROWTH EQUITY
FUND FUND FUND FUND FUND
====================================================================================================================================
6/1/99 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
11/30/99 5/31/99 11/30/99 5/31/99 11/30/99 5/31/99 11/30/99 5/31/99 11/30/99 5/31/99
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
Net Investment Income
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
(Loss) $ 2,243 $ 3,915 $ 644 $ 1,326 $ (259) $ 672 $ (448) $ (772) $ 653 $ 240
Net Realized Gain on
Investments 37 721 1,275 1,850 24,817 52,160 19,484 4,766 70,470 35,279
Net Realized Gain (Loss)
from Forward Foreign
Currency Contracts and
Foreign Currency Transactions -- -- -- (4) (25) 8 (2) (98) (1,927)
Net Change in Unrealized
Appreciation (Depreciation)
on Investments (4,784) (1,395) 1,740 (262) 23,209 (28,015) 60,581 (15,346) 84,374 (50,485)
Net Change in Unrealized
Appreciation (Depreciation)
on Foreign Forward Currency
Contracts, Foreign Currencies
and Translation of Othe
Assets and Liabilities in
Foreign Currency -- -- -- -- -- -- -- -- 28 (2,062)
-------- -------- ------- ------- -------- -------- -------- -------- -------- --------
Net Increase (Decrease) in Net Assets
Resulting from Operations (2,504) 3,241 3,659 2,914 47,763 24,792 79,625 (11,354) 155,427 (18,955)
-------- -------- ------- ------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net Investment Income (2,243) (3,915) (726) (1,328) -- (884) -- -- -- (997)
Realized Capital Gains (404) (663) (1,564) (2,229) (51,112) (12,700) (17,896) (6,328) (80,686) (2,548)
-------- -------- ------- ------- -------- -------- -------- -------- -------- --------
Total Distributions (2,647) (4,578) (2,290) (3,557) (51,112) (13,584) (17,896) (6,328) (80,686) (3,545)
-------- -------- ------- ------- -------- -------- -------- -------- -------- --------
SHARE TRANSACTIONS:
Proceeds from Shares Issued 15,487 38,895 5,120 13,741 52,641 228,857 132,677 181,224 434,725 403,221
Reinvestment of Cash
Distributions 715 1,283 2,152 3,400 48,643 12,381 9,381 4,590 48,162 1,744
Cost of Shares Redeemed (16,103) (13,565) (8,168)(13,410)(130,619)(257,027)(139,867)(240,206)(470,108)(462,531)
-------- -------- ------- ------- -------- -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets from
Share Transactions 99 26,613 (896) 3,731 (29,335) (15,789) 2,191 (54,392) 12,779 (57,566)
-------- -------- ------- ------- -------- -------- -------- -------- -------- --------
Total Increase (Decrease)
in Net Assets (5,052) 25,276 473 3,088 (32,684) (4,581) 63,920 (72,074) 87,520 (80,066)
NET ASSETS:
Beginning of Period 102,073 76,797 53,371 50,283 549,416 553,997 185,476 257,550 389,753 469,819
-------- -------- ------- ------- -------- -------- -------- -------- -------- --------
NET ASSETS:
End of Period $ 97,021 $102,073 $53,844 $53,371 $516,732 $549,416 $249,396 $185,476 $477,273 $389,753
======== ======== ======= ======= ======== ======== ======== ======== ======== ========
CAPITAL SHARE TRANSACTIONS:
Shares Issued 4,033 3,644 4,033 913 2,313 10,493 9,510 16,196 29,045 31,211
Shares Issued in Lieu
of Cash Distributions 161 120 161 231 2,181 574 569 417 3,264 137
Shares Redeemed (4,683) (1,272) (4,683) (894) (5,749) (11,791) (9,964) (21,152) (31,369) (35,496)
-------- -------- ------- ------- -------- -------- -------- -------- -------- --------
Net Increase (Decrease)
in Capital Shares (489) 2,492 (489) 250 (1,255) (724) 115 (4,539) 940 (4,148)
======== ======== ======= ======= ======== ======== ======== ======== ======== ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
72
<PAGE>
BOSTON 1784 FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
BOSTON 1784 MONEY MARKET FUNDS
For the period ended November 30, 1999 (Unaudited) and the periods ended May 31
For a Share Outstanding Throughout Each Period
- ------------------------------------------------------------------------------------------------------------------------------------
RATIO RATIO OF
NET NET NET RATIO OF EXPENSES NET INCOME
ASSET DISTRIBUTIONS ASSET ASSETS RATIO OF NET TO AVERAGE TO AVERAGE
VALUE NET FROM NET VALUE END OF EXPENSES INCOME NET ASSETS NET ASSETS
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING
OF PERIOD INCOME INCOME OF PERIOD RETURN (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 TAX-FREE MONEY MARKET FUND
For the six month period
ended November 30, 1999+ $1.00 0.02 (0.02) $1.00 1.53%* $1,058,063 0.51% 3.03% 0.51% 3.03%
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%
For the year ended
May 31, 1995 $1.00 0.03 (0.03) $1.00 3.29% $ 539,412 0.50% 3.28% 0.61% 3.17%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 U.S. TREASURY MONEY MARKET FUND
For the six month period
ended November 30, 1999+ $1.00 0.02 (0.02) $1.00 2.25%* $ 387,084 0.65% 4.45% 0.69% 4.41%
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%
For the year ended
May 31, 1995 $1.00 0.05 (0.05) $1.00 4.81% $ 55,068 0.60% 5.13% 0.92% 4.81%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 PRIME MONEY MARKET FUND
For the six month period
ended November 30, 19 99+ $1.00 0.02 (0.02) $1.00 2.43%* $ 170,776 0.65% 4.63% 0.73% 4.55%
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%
For the year ended
December 31, 1994 $1.00 0.04 (0.04) $1.00 3.75% $ 136,923 0.65% 3.64% 0.69% 3.60%
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
+ All ratios for the period including total return have been annualized.
* 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.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
73
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
BOSTON 1784 BOND FUNDS
For the period ended November 30, 1999 (Unaudited) and the periods ended May 31
For a Share Outstanding Throughout Each Period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED AND NET NET RATIO
ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET ASSETS RATIO OF NET
VALUE NET GAINS OR FROM NET FROM VALUE END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 SHORT-TERM INCOME FUND
For the six month
period ended
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
November 30, 1999+ $10.02 0.27 (0.11) (0.27) -- $ 9.91 1.59%* $145,663 0.64% 5.36%
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%
For the year ended
May 31, 1998 $ 9.98 0.57 0.11 (0.57) -- $10.09 6.98% $197,256 0.64% 5.67%
For the year ended
May 31, 1997 $ 9.93 0.58 0.05 (0.58) -- $ 9.98 6.47% $194,033 0.65% 5.78%
For the year ended
May 31, 1996 $10.09 0.60 (0.12) (0.60) (0.04) $ 9.93 4.87% $ 86,383 0.63% 5.87%
For the period ended
May 31, 1995(1) $10.00 0.56 0.09 (0.56) -- $10.09 6.74%* $ 52,581 0.48% 6.31%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INCOME FUND
For the six month period ended
November 30, 1999+ $ 9.93 0.30 (0.29) (0.29) (0.05) $ 9.60 0.15%* $330,265 0.80% 5.68%
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%
For the year ended
May 31, 1998 $ 9.99 0.61 0.26 (0.61) -- $10.25 8.88% $392,556 0.80% 5.91%
For the year ended
May 31, 1997 $ 9.90 0.63 0.17 (0.63) (0.08) $ 9.99 8.32% $334,778 0.80% 6.31%
For the year ended
May 31, 1996 $10.39 0.65 (0.37) (0.65) (0.12) $ 9.90 2.64% $235,022 0.80% 6.17%
For the period ended
May 31, 1995(1) $10.00 0.62 0.39 (0.62) -- $10.39 10.69%* $196,515 0.55% 7.01%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
For the six month period ended
November 30, 1999+ $ 9.45 0.25 (0.18) (0.25) -- $ 9.27 0.71%* $268,810 0.80% 5.36%
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%
For the year ended
May 31, 1998 $ 9.37 0.55 0.23 (0.55) -- $ 9.60 8.56% $252,719 0.80% 5.80%
For the year ended
May 31, 1997 $ 9.31 0.59 0.06 (0.59) -- $ 9.37 7.16% $209,141 0.79% 6.30%
For the year ended
May 31, 1996 $ 9.57 0.61 (0.26) (0.61) -- $ 9.31 3.65% $167,494 0.80% 6.23%
For the year ended
May 31, 1995 $ 9.36 0.58 0.21 (0.58) -- $ 9.57 8.79% $130,081 0.80% 6.24%
- ------------------------------------------------------------------------------------------------------------------------------------
[TABLE CONTINUED]
- --------------------------------------
RATIO RATIO
OF EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
BOSTON 1784 SHORT-TERM INCOME FUND
For the six month
period ended
<S> <C> <C> <C>
November 30, 1999+ 0.89% 5.11% 23.43%
For the year ended
May 31, 1999 0.89% 5.05% 36.57%
For the year ended
May 31, 1998 0.89% 5.42% 83.84%
For the year ended
May 31, 1997 0.93% 5.50% 128.11%
For the year ended
May 31, 1996 1.06% 5.44% 95.06%
For the period ended
May 31, 1995(1) 1.27% 5.52% 84.54%
- ------------------------------------------------------
BOSTON 1784 INCOME FUND
For the six month period ended
November 30, 1999+ 1.11% 5.37% 59.26%
For the year ended
May 31, 1999 1.11% 5.06% 64.34%
For the year ended
May 31, 1998 1.11% 5.60% 79.09%
For the year ended
May 31, 1997 1.15% 5.96% 78.63%
For the year ended
May 31, 1996 1.20% 5.77% 100.51%
For the period ended
May 31, 1995(1) 1.23% 6.33% 80.53%
- ------------------------------------------------------
BOSTON 1784 U.S. GOVERNMENT MEDIUM-TERM INCOME FUND
For the six month period ended
November 30, 1999+ 1.11% 5.05% 23.75%
For the year ended
May 31, 1999 1.12% 4.93% 47.85%
For the year ended
May 31, 1998 1.12% 5.48% 73.65%
For the year ended
May 31, 1997 1.16% 5.93% 98.22%
For the year ended
May 31, 1996 1.24% 5.79% 158.66%
For the year ended
May 31, 1995 1.27% 5.77% 142.14%
- ------------------------------------------------------
<FN>
+All ratios for the period including total return have been annualized.
*Returns are for the period indicated and have not been annualized.
(1) Boston 1784 Short-Term Income Fund and Boston 1784 Income Fund commenced
operations on July 1, 1994. All ratios for the period have been annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
74
<PAGE>
BOSTON 1784 FUNDS
BOSTON 1784 TAX-EXEMPT INCOME FUNDS
For the period ended November 30, 1999 (Unaudited) and the periods ended May 31
For a Share Outstanding Throughout Each Period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED AND NET NET RATIO
ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET ASSETS RATIO OF NET
VALUE NET GAINS OR FROM NET FROM VALUE END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Boston 1784 Tax-Exempt Medium-Term Income Fund
For the six month period ended
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
November 30, 1999+ $10.33 0.22 (0.46) (0.22) (0.11) $ 9.76 (2.33)%* $345,162 0.80% 4.43%
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%
For the year ended
May 31, 1998 $10.18 0.48 0.44 (0.48) (0.10) $10.52 9.24% $303,578 0.80% 4.62%
For the year ended
May 31, 1997 $ 9.99 0.50 0.19 (0.50) -- $10.18 7.74% $250,526 0.80% 4.92%
For the year ended
May 31, 1996 $10.14 0.51 (0.09) (0.51) (0.06) $ 9.99 4.31% $196,787 0.79% 4.90%
For the year ended
May 31, 1995 $ 9.90 0.48 0.24 (0.48) -- $10.14 7.58% $176,345 0.80% 5.02%
- ------------------------------------------------------------------------------------------------------------------------------------
Boston 1784 Connecticut Tax-Exempt Income Fund
For the six month period ended
November 30, 1999+ $10.67 0.23 (0.43) (0.23) (0.05) $10.19 (1.87)%* $178,270 0.80% 4.43%
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%
For the year ended
May 31, 1998 $10.38 0.50 0.45 (0.50) (0.02) $10.81 9.29% $142,107 0.80% 4.66%
For the year ended
May 31, 1997 $10.17 0.51 0.21 (0.51) -- $10.38 7.26% $103,104 0.76% 4.94%
For the year ended
May 31, 1996 $10.27 0.53 (0.10) (0.53) -- $10.17 4.20% $ 81,441 0.75% 5.02%
For the period ended
May 31, 1995(1) $10.00 0.45 0.27 (0.45) -- $10.27 7.45%* $ 61,369 0.52% 5.44%
- ------------------------------------------------------------------------------------------------------------------------------------
Boston 1784 Florida Tax-Exempt Income Fund
For the six month period ended
November 30, 1999+ $10.12 0.22 (0.42) (0.22) -- $ 9.70 2.03%* $ 68,864 0.80% 4.37%
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%
For the period ended
May 31, 1998(2) $10.00 0.43 0.32 (0.43) (0.02) $10.30 7.63%* $ 51,793 0.80% 4.59%
- ------------------------------------------------------------------------------------------------------------------------------------
[TABLE CONTINUED]
- ---------------------------------------------
RATIO RATIO
OF EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- ---------------------------------------------
Boston 1784 Tax-Exempt Medium-Term Income Fund
For the six month period ended
<S> <C> <C> <C>
November 30, 1999+ 1.11% 4.12% 31.81%
For the year ended
May 31, 1999 1.11% 4.00% 68.58%
For the year ended
May 31, 1998 1.12% 4.30% 34.06%
For the year ended
May 31, 1997 1.17% 4.55% 33.24%
For the year ended
May 31, 1996 1.21% 4.48% 37.35%
For the year ended
May 31, 1995 1.26% 4.56% 74.74%
- ------------------------------------------------------
Boston 1784 Connecticut Tax-Exempt Income Fund
For the six month period ended
November 30, 1999+ 1.12% 4.11% 16.84%
For the year ended
May 31, 1999 1.12% 4.05% 19.10%
For the year ended
May 31, 1998 1.14% 4.32% 16.81%
For the year ended
May 31, 1997 1.17% 4.53% 4.28%
For the year ended
May 31, 1996 1.29% 4.48% 20.41%
For the period ended
May 31, 1995(1) 1.40% 4.56% 35.56%
- -----------------------------------------------------
Boston 1784 Florida Tax-Exempt Income Fund
For the six month period ended
November 30, 1999+ 1.14% 4.03% 0.51%
For the year ended
May 31, 1999 1.14% 3.91% 10.88%
For the period ended
May 31, 1998(2) 1.19% 4.20% 21.35%
- ------------------------------------------------------
<FN>
+ All ratios for the period including total return have been annualized.
* Returns are for the period indicated and have not been annualized.
(1) Boston 1784 Connecticut Tax-Exempt Income Fund commenced operations on
August 1, 1994. All ratios for the period have been annualized. (2) Boston 1784
Florida Tax-Exempt Income Fund commenced operations on June 30, 1997. All ratios
for the period have been annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
75
<PAGE>
FINANCIAL HIGHLIGHTS
BOSTON 1784 TAX-EXEMPT INCOME FUNDS (CONTINUED)
For the period ended November 30, 1999 (Unaudited) and the periods ended May 31
For a Share Outstanding Throughout Each Period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED AND NET NET RATIO
ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET ASSETS RATIO OF NET
VALUE NET GAINS OR FROM NET FROM VALUE END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 Massachusetts Tax-exempt Income Fund
For the six month period ended
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
November 30, 1999+ $10.39 0.23 (0.42) (0.23) -- $ 9.97 (1.88)%* $252,068 0.80% 4.45%
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%
For the year ended
May 31, 1998 $10.01 0.47 0.41 (0.47) -- $10.42 8.91% $206,137 0.80% 4.54%
For the year ended
May 31, 1997 $ 9.78 0.47 0.23 (0.47) -- $10.01 7.30% $147,459 0.79% 4.74%
For the year ended
May 31, 1996 $ 9.90 0.48 (0.12) (0.48) -- $ 9.78 3.64% $106,619 0.80% 4.73%
For the year ended
May 31, 1995 $ 9.81 0.47 0.09 (0.47) -- $ 9.90 6.00% $ 82,058 0.80% 4.93%
- ------------------------------------------------------------------------------------------------------------------------------------
Boston 1784 Rhode Island Tax-Exempt Income Fund
For the six month period ended
November 30, 1999+ $10.50 0.23 (0.49) (0.23) (0.04) $ 9.97 (2.46)%* $ 97,021 0.80% 4.53%
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%
For the year ended
May 31, 1998 $10.31 0.49 0.35 (0.49) (0.04) $10.62 8.28% $ 76,797 0.80% 4.64%
For the year ended
May 31, 1997 $10.06 0.50 0.25 (0.50) -- $10.31 7.61% $ 53,752 0.79% 4.88%
For the year ended
May 31, 1996 $10.13 0.53 (0.07) (0.53) -- $10.06 4.65% $ 37,904 0.77% 5.16%
For the period ended
May 31, 1995(1) $10.00 0.45 0.13 (0.45) -- $10.13 6.09%* $ 32,495 0.54% 5.56%
- ------------------------------------------------------------------------------------------------------------------------------------
[TABLE CONTINUED]
-----------------------------------------------
RATIO RATIO
OF EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
-----------------------------------------------
BOSTON 1784 Massachusetts Tax-exempt Income Fund
For the six month period ended
<S> <C> <C> <C>
- - November 30, 1999+ 1.12% 4.13% 0.82%
For the year ended
May 31, 1999 1.12% 4.00% 9.32%
For the year ended
May 31, 1998 1.14% 4.20% 6.45%
For the year ended
May 31, 1997 1.18% 4.35% 9.47%
For the year ended
May 31, 1996 1.28% 4.25% 47.00%
For the year ended
May 31, 1995 1.35% 4.38% 34.59%
----------------------------------------------------
Boston 1784 Rhode Island Tax-Exempt Income Fund
For the six month period ended
November 30, 1999+ 1.12% 4.21% 9.47%
For the year ended
May 31, 1999 1.13% 4.09% 12.44%
For the year ended
May 31, 1998 1.16% 4.28% 13.79%
For the year ended
May 31, 1997 1.21% 4.46% 8.18%
For the year ended
May 31, 1996 1.35% 4.58% 19.68%
For the period ended
May 31, 1995(1) 1.60% 4.50% 57.51%
----------------------------------------------------
<FN>
+ All ratios for the period including total return have been annualized.
* Returns are for the period indicated and have not been annualized.
(1) Boston 1784 Rhode Island Tax-Exempt Income Fund commenced operations on
August 1, 1994. All ratios for the period have been annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
76
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
BOSTON 1784 STOCK FUNDS
For the period ended November 30, 1999 (Unaudited) and the periods ended May 31
For a Share Outstanding Throughout Each Period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED AND NET NET RATIO
ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET ASSETS RATIO OF NET
VALUE NET GAINS OR FROM NET FROM VALUE END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Boston 1784 Asset Allocation Fund
For the six month period ended
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
November 30, 1999+ $14.97 0.21 0.85 (0.21) (0.46) $15.36 7.04%* $ 53,844 1.00% 2.39%
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%
For the year ended
May 31, 1998 $13.40 0.37 2.30 (0.38) (0.53) $15.16 20.51% $ 50,283 0.98% 2.66%
For the year ended
May 31, 1997 $12.31 0.34 1.44 (0.33) (0.36) $13.40 14.89% $ 35,522 1.07% 2.87%
For the year ended
May 31, 1996 $10.99 0.31 1.61 (0.31) (0.29) $12.31 17.83% $ 16,831 1.25% 2.86%
For the year ended
May 31, 1995 $ 9.84 0.28 1.15 (0.27) (0.01) $10.99 14.84% $ 8,622 1.25% 2.88%
- ------------------------------------------------------------------------------------------------------------------------------------
Boston 1784 Growth and Income Fund
For the six month period ended
November 30, 1999+ $22.17 (0.01) 2.17 (0.00) (2.37) $21.96 9.56%* $516,732 0.89% (0.10)%
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%
For the year ended
May 31, 1998 $17.54 0.07 4.55 (0.09) (0.35) $21.72 26.71% $553,997 0.90% 0.36%
For the year ended
May 31, 1997 $15.23 0.12 2.63 (0.11) (0.33) $17.54 18.33% $457,952 0.92% 0.77%
For the year ended
May 31, 1996 $12.16 0.10 3.08 (0.11) (0.00) $15.23 26.32% $303,463 0.94% 0.78%
For the year ended
May 31, 1995 $10.57 0.11 1.67 (0.10) (0.09) $12.16 17.09% $229,200 0.94% 1.05%
- ------------------------------------------------------------------------------------------------------------------------------------
[TABLE CONTINUED]
- ------------------------------------------
RATIO RATIO
OF EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- ------------------------------------------
Boston 1784 Asset Allocation Fund
For the six month period ended
<S> <C> <C> <C>
November 30, 1999+ 1.25% 2.14% 22.09%
For the year ended
May 31, 1999 1.21% 2.32% 49.78%
For the year ended
May 31, 1998 1.23% 2.41% 47.83%
For the year ended
May 31, 1997 1.37% 2.57% 23.60%
For the year ended
May 31, 1996 1.90% 2.21% 39.56%
For the year ended
May 31, 1995 2.51% 1.62% 67.23%
- ------------------------------------------------------
Boston 1784 Growth and Income Fund
For the six month period ended
November 30, 1999+ 1.14% (0.35)% 16.65%
For the year ended
May 31, 1999 1.14% (0.13)% 50.15%
For the year ended
May 31, 1998 1.15% 0.11% 39.03%
For the year ended
May 31, 1997 1.19% 0.50% 15.35%
For the year ended
May 31, 1996 1.24% 0.48% 39.50%
For the year ended
May 31, 1995 1.23% 0.76% 38.94%
- ------------------------------------------------------
<FN>
+ All ratios for the period have been annualized.
* Returns are for the period indicated and have not been annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
77
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
BOSTON 1784 STOCK FUNDS (CONTINUED)
For the period ended November 30, 1999 (Unaudited) and the periods ended May 31
For a Share Outstanding Throughout Each Period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED AND NET NET RATIO
ASSET UNREALIZED DISTRIBUTIONS DISTRIBUTIONS ASSET ASSETS RATIO OF NET
VALUE NET GAINS OR FROM NET FROM VALUE END OF EXPENSES INCOME
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL END TOTAL OF PERIOD TO AVERAGE TO AVERAGE
OF PERIOD INCOME INVESTMENTS INCOME GAINS OF PERIOD RETURN (000) NET ASSETS NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Boston 1784 Growth Fund
For the six month period ended
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
November 30, 1999+ $12.06 (0.02) 5.26 (0.00) (1.20) $16.10 43.20%* $249,396 0.90% (0.43)%
For the year ended
May 31, 1999 $12.93 (0.08) (0.41) (0.00) (0.38) $12.06 (3.54)% $185,476 0.93% (0.39)%
For the year ended
May 31, 1998 $12.20 (0.05) 1.59 (0.00) (0.81) $12.93 12.64% $257,550 0.91% (0.35)%
For the year ended
May 31, 1997 $11.27 0.02 0.96 (0.05) (0.00) $12.20 8.77% $261,487 0.77% 0.17%
For the period ended
May 31, 1996(1) $10.00 0.02 1.25 (0.00) (0.00) $11.27 12.70%* $ 46,026 0.20% 1.75%
- ------------------------------------------------------------------------------------------------------------------------------------
Boston 1784 International Equity Fund
For the six month period ended
November 30, 1999+ $12.92 0.02 5.37 (0.00) (2.96) $15.35 42.75%* $477,273 1.16% 0.32%
For the year ended
May 31, 1999 $13.69 (0.00) (0.66) (0.03) (0.08) $12.92 (4.85)% $389,753 1.20% 0.06%
For the year ended
May 31, 1998 $13.20 (0.02) 0.80 (0.15) (0.14) $13.69 6.19% $469,819 1.24% 0.04%
For the year ended
May 31, 1997 $12.05 0.07 1.23 (0.09) (0.06) $13.20 10.93% $503,048 1.27% 0.41%
For the year ended
May 31, 1996 $10.41 0.11 1.85 (0.27) (0.05) $12.05 19.08% $362,460 1.13% 0.76%
For the period ended
May 31, 1995(2) $10.00 0.06 0.35 (0.00) (0.00) $10.41 4.73%* $148,439 0.89% 2.06%
- ------------------------------------------------------------------------------------------------------------------------------------
[TABLE CONTINUED]
- ------------------------------------------
RATIO RATIO
OF EXPENSES NET INCOME
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS PORTFOLIO
(EXCLUDING (EXCLUDING TURNOVER
WAIVERS) WAIVERS) RATE
- ------------------------------------------
Boston 1784 Growth Fund
For the six month period ended
<S> <C> <C> <C>
November 30, 1999+ 1.15% (0.68)% 45.05%
For the year ended
May 31, 1999 1.18% (0.64)% 61.02%
For the year ended
May 31, 1998 1.16% (0.60)% 48.60%
For the year ended
May 31, 1997 1.15% (0.21)% 57.46%
For the period ended
May 31, 1996(1) 1.73% 0.22% 0.00%
- -----------------------------------------------------
Boston 1784 International Equity Fund
For the six month period ended
November 30, 1999+ 1.41% 0.07% 67.12%
For the year ended
May 31, 1999 1.45% (0.19)% 115.83%
For the year ended
May 31, 1998 1.49% (0.21)% 103.47%
For the year ended
May 31, 1997 1.52% 0.16% 22.88%
For the year ended
May 31, 1996 1.61% 0.28% 15.55%
For the period ended
May 31, 1995(2) 1.70% 1.25% 11.03%
- ------------------------------------------------------
<FN>
+ All ratios for the period have been annualized.
* Returns are for the period indicated and have not been annualized.
(1) Boston 1784 Growth Fund commenced operations on March 28, 1996. All ratios
for the period have been annualized. (2) Boston 1784 International Equity Fund
commenced operations on January 3, 1995. All ratios for the period have been
annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
78
<PAGE>
BOSTON 1784 FUNDS
november 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION
Boston 1784 Tax-Free Money Market, Boston 1784 U.S. Treasury Money Market,
Boston 1784 Prime Money Market (the "Money Market Funds"), Boston 1784
Short-Term Income, Boston 1784 Income, Boston 1784 U.S. Government Medium-Term
Income (the "Bond Funds"), Boston 1784 Tax-Exempt Medium-Term Income, Boston
1784 Connecticut Tax-Exempt Income, Boston 1784 Florida Tax-Exempt Income,
Boston 1784 Massachusetts Tax-Exempt Income, Boston 1784 Rhode Island Tax-Exempt
Income (the "Tax-Exempt Income Funds"), Boston 1784 Asset Allocation, Boston
1784 Growth and Income, Boston 1784 Growth and Boston 1784 International Equity
Funds (the "Stock Funds") are portfolios offered by Boston 1784 Funds (the
"Trust"), an open-end investment company registered under the Investment Company
Act of 1940, as amended. The Trust is offering shares in 17 separate portfolios
(the "Funds") as of November 30, 1999:
MONEY MARKET FUNDS:
Boston 1784 Tax-Free Money Market Fund
Boston 1784 U.S. Treasury Money Market Fund
Boston 1784 Institutional U.S. Treasury
Money Market Fund
Boston 1784 Prime Money Market Fund
Boston 1784 Institutional Prime Money Market Fund
BOND FUNDS:
Boston 1784 Short-Term Income Fund
Boston 1784 Income Fund
Boston 1784 U.S. Government Medium-Term
Income Fund
TAX-EXEMPT INCOME FUNDS:
Boston 1784 Tax-Exempt Medium-Term Income Fund
Boston 1784 Connecticut Tax-Exempt Income Fund
Boston 1784 Florida Tax-Exempt Income Fund
Boston 1784 Massachusetts Tax-Exempt Income Fund
Boston 1784 Rhode Island Tax-Exempt Income Fund
STOCK FUNDS:
Boston 1784 Asset Allocation Fund
Boston 1784 Growth and Income Fund
Boston 1784 Growth Fund
Boston 1784 International Equity Fund
The Funds' prospectus provides a description of each Fund's investment
objectives, policies and strategies. The financial statements of Boston 1784
Institutional U.S. Treasury Money Market Fund and Boston 1784 Institutional
Prime Money Market Fund are not presented herein but are presented separately.
The assets of each Fund are segregated, and a shareholder's interest is limited
to the Fund in which shares are held. The financial statements have been
prepared in accordance with generally accepted accounting principles which
require the use of management's estimates. Actual results could differ from
these estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds.
SECURITY VALUATION --
In valuing each of the Stock, Bond and Tax-Exempt Income Fund's assets, bonds
and other fixed income securities are valued on the basis of valuations
furnished by a pricing service, use of which has been approved by
79
<PAGE>
november 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
the Board of Trustees of the Trust. In making such valuations, the pricing
services may employ methodologies that utilize actual market transactions,
broker-dealer supplied valuations or other electronic data processing
techniques.
Equity securities listed on a domestic securities exchange for which
quotations are readily available, including securities traded over the counter,
are valued by a pricing service at the last quoted sale price on the principal
exchange on which they are traded on valuation date, or, if there is no such
reported sale on the valuation date, at the most recent quoted bid price.
Equity securities which are primarily traded on a foreign exchange are
generally valued by a pricing service at the preceding closing value on the
exchange. Securities for which market quotations are not readily available are
valued at their fair value as determined in good faith by the Board of Trustees
of the Trust, or pursuant to procedures adopted by the Board subject to review
by the Board of the resulting valuations.
Investment securities of the Money Market Funds are stated at amortized
cost, which approximates market value. Under this valuation method, purchase
discounts and premiums are accreted and amortized ratably to maturity and are
included in interest income.
FOREIGN CURRENCY TRANSACTIONS --
The books and records of the Funds are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars on the following basis:
I. market value of investment securities, assets and liabilities at the
current rate of exchange; and
II. purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.
The Funds do not isolate that portion of gains and losses on investment
securities that are due to changes in the foreign exchange rates from that due
to changes in market prices of such securities.
The Funds report certain foreign currency related transactions as
components of unrealized and realized gains for financial reporting purposes,
whereas such components are treated as ordinary income for federal income tax
purposes.
SECURITY TRANSACTIONS AND INVESTMENT INCOME --
Security transactions are accounted for on the trade date of the security
purchase or sale. Costs used in determining net realized capital gains and
losses on the sale of securities are those of the specific securities sold,
adjusted for the accretion and amortization of the purchase discounts and
premiums during the respective holding period, with the exception of Boston 1784
U.S. Government Medium- Term Income Fund which does not accrete or amortize
purchase discounts and premiums. Interest income is recorded on the accrual
basis. Dividend income is recorded on ex-date.
REPURCHASE AGREEMENTS --
The Funds invest in tri-party repurchase agreements. Securities pledged as
collateral for tri-party repurchase agreements are
80
<PAGE>
BOSTON 1784 FUNDS
- --------------------------------------------------------------------------------
maintained in a segregated account by the broker's custodian bank until maturity
of the repurchase agreements. Provisions of the agreements and procedures
adopted by the Adviser ensure that the market value of the collateral, including
accrued interest thereon, is sufficient in the event of default by the
counterparty. If the counterparty defaults and the value of the collateral
declines, or if the counterparty enters into insolvency proceedings, realization
on the collateral by the Fund may be delayed or limited.
EXPENSES --
Expenses that are directly related to one of the Funds are charged directly to
that Fund. Other operating expenses of the Trust are prorated to the Funds on
the basis of relative net assets.
DISTRIBUTIONS TO SHAREHOLDERS --
The Money Market, Bond and Tax-Exempt Income Funds declare distributions from
net investment income on a daily basis, payable on the first business day of the
following month. Boston 1784 Asset Allocation and Boston 1784 Growth and Income
Funds declare and pay dividends on a quarterly basis. Boston 1784 Growth Fund
declares and pays dividends on a semi-annual basis. Boston 1784 International
Equity Fund declares and pays dividends on an annual basis. Any net realized
capital gains on sales of securities for a Fund are distributed to its
shareholders at least annually.
FEDERAL INCOME TAXES --
The Trust's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to its shareholders. Accordingly, no provision for federal income
taxes is required in the financial statements. The Funds may be subject to taxes
imposed by countries in which they invest with respect to their investments in
issuers existing or operating in such countries. Such taxes are generally based
on either income earned or repatriated. The Funds accrue such taxes when related
income is earned.
ORGANIZATIONAL COSTS --
Organizational costs have been deferred in the accounts of the Funds and are
being amortized on a straight line basis over a period of sixty months
commencing with operations. In the event any of the initial shares of the Funds
are redeemed by any holder thereof during the period that the Funds are
amortizing their organizational costs, the redemption proceeds payable to the
holders thereof by the Funds will be reduced by the unamortized organizational
costs in the same ratio as the number of shares redeemed bears to the initial
shares outstanding at the time of redemption.
OTHER --
Some countries in which the Funds invest require governmental approval for the
repatriation of investment income, capital or the proceeds of sales of
securities by
81
<PAGE>
NOVEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
foreign investors. In addition, for various reasons, including a deterioration
in a country's balance of payments, a country may impose temporary restrictions
on foreign capital remittances abroad. The security exchanges of certain foreign
markets are substantially smaller, less liquid and more volatile than the major
securities markets in the United States. Consequently, acquisition and
disposition of securities by the Funds may be inhibited.
3. INVESTMENT ADVISORY AND CUSTODIAL SERVICES
Pursuant to an investment advisory agreement dated June 1, 1993, investment
advisory services are provided to the Trust by Bank-Boston, N.A. (the
"Adviser"). The Adviser is entitled to receive a fee of 0.40% of the average
daily net assets of Boston 1784 Tax-Free Money Market, Boston 1784 U.S. Treasury
Money Market and Boston 1784 Prime Money Market Funds, 0.50% of the average
daily net assets of Boston 1784 Short-Term Income Fund, 0.74% of the average
daily net assets of Boston 1784 Income, Boston 1784 U.S. Government Medium-Term
Income, Boston 1784 Tax-Exempt Medium-Term Income, Boston 1784 Connecticut
Tax-Exempt Income, Boston 1784 Florida Tax-Exempt Income, Boston 1784
Massachusetts Tax-Exempt Income, Boston 1784 Rhode Island Tax-Exempt Income,
Boston 1784 Asset Allocation, Boston 1784 Growth and Income and Boston 1784
Growth Funds. Such fees are computed daily and paid monthly. The Adviser has
voluntarily agreed to waive a portion of its fee as necessary to assist the
Funds in maintaining competitive expense ratios. Boston 1784 International
Equity Fund has entered into separate investment advisory agreements (each an
"Advisory Agreement") with BankBoston, N.A. ("BankBoston") and with Kleinwort
Benson Investment Management Americas Inc. ("Kleinwort" and together with
BankBoston the "International Advisers"). The Advisory Agreement with BankBoston
is dated as of November 28, 1994; the Advisory Agreement with Kleinwort is dated
as of October 27, 1995. The International Advisers are entitled to receive an
aggregate fee of 1.00% of the average daily net assets of Boston 1784
International Equity Fund. Such fee is computed daily and paid monthly.
The Trust and BankBoston, N.A. were parties to a custodial agreement dated
June 1, 1993 under which BankBoston, N.A. held cash, securities and other assets
of the Trust as required by the Investment Company Act of 1940, as amended. For
the period June 1, 1998 to September 30, 1998, BankBoston, N.A. served as the
Funds' custodian and received an annual fee, paid monthly, of 0.01% for the
first $100 million in average daily net assets, 0.0075% for the next $100
million in average daily net assets and 0.005% for the average daily net assets
over $200 million of each of the Funds. On September 30, 1998, the Custodial
Agreement was amended and assigned to Investors Bank & Trust
82
<PAGE>
BOSTON 1784 FUNDS
Company ("IBT"). Effective October 1, 1998, IBT is entitled to receive an annual
fee, to be paid monthly, of 0.005% of the market value of each Fund's assets. In
the capacity as custodian to the Trust, BankBoston, N.A. played and IBT plays no
role in determining the investment policies of the Trust or which securities are
to be purchased or sold by the Funds.
4. ADMINISTRATIVE AND DISTRIBUTION SERVICES
Pursuant to an administration agreement dated December 1, 1996, SEI Investments
Mutual Funds Services, a wholly-owned subsidiary of SEI Investments Company,
acts as the Trust's Administrator, and is entitled to receive an annual fee of
0.085% of the Trust's first $5 billion of average daily net assets and 0.045% of
the Trust's average daily net assets over $5 billion. Such fee is computed daily
and paid monthly.
SEI Investments Distribution Co. ("SEI Investments"), a wholly-owned
subsidiary of SEI Investments Company, became the Trust's Distributor pursuant
to a distribution agreement dated June 1, 1993, as amended and restated October
27, 1995. The Trust has adopted a distribution plan with respect to each of the
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 six month period ended November 30, 1999.
Pursuant to a Shareholder Services Agreement dated December 1, 1996,
BankBoston, N.A. provides certain shareholder services to Boston 1784 U.S.
Treasury Money Market Fund and Boston 1784 Prime Money Market Fund and receives
compensation, computed daily and paid monthly, at an annual rate of 0.10% of the
average daily net assets of each such Fund. BankBoston, N.A. provides
shareholder services to the other Boston 1784 Funds presented in this report,
for which it does not receive compensation.
Certain officers of the Trust are also officers of the Administrator. Such
officers are paid no fees by the Trust. The Trust has paid legal fees to a
law firm of which the Secretary of the Trust is a member.
5. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities,
other than temporary cash investments, for the six month period ended November
30, 1999, are as presented below for the Bond, Tax-Exempt Income and Stock
Funds.
83
<PAGE>
NOVEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
FUND INVESTMENT TRANSACTIONS (000):
<CAPTION>
PURCHASES SALES
====================================================================================================================================
U.S. GOVERNMENT U.S. GOVERNMENT
FOR THE PERIOD ENDED NOVEMBER 30, 1999 SECURITIES OTHER SECURITIES OTHER
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Boston 1784 Short-Term Income Fund $ 15,926 $ 13,985 $ 12,412 $ 25,588
Boston 1784 Income Fund 114,500 68,946 89,957 105,025
Boston 1784 U.S. Government
Medium-Term Income Fund 54,305 -- 68,260 1,577
Boston 1784 Tax-Exempt Medium-Term Income Fund -- 109,700 -- 106,425
Boston 1784 Connecticut Tax-Exempt Income Fund -- 29,376 -- 29,434
Boston 1784 Florida Tax-Exempt Income Fund -- 3,585 -- 325
Boston 1784 Massachusetts Tax-Exempt Income Fund -- 5,414 -- 1,935
Boston 1784 Rhode Island Tax-Exempt Income Fund -- 8,941 -- 10,051
Boston 1784 Asset Allocation Fund 2,909 4,274 3,318 3,754
Boston 1784 Growth and Income Fund -- 84,364 -- 162,673
Boston 1784 Growth Fund -- 88,222 -- 103,744
Boston 1784 International Equity Fund -- 262,616 -- 323,634
</TABLE>
The aggregate gross unrealized gains or losses on securities at November
30, 1999 for the Bond, Tax-Exempt Income and Stock Funds are as follows (000):
<TABLE>
<CAPTION>
AGGREGATE AGGREGATE
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
GAINS LOSSES GAINS/(LOSSES)
======================================================================================================
<S> <C> <C> <C> <C>
Boston 1784 Short-Term Income Fund $ 53 $(1,783) $ (1,730)
Boston 1784 Income Fund 349 (11,156) (10,807)
Boston 1784 U.S. Government Medium-Term Income Fund 1,100 (6,039) (4,939)
Boston 1784 Tax-Exempt Medium-Term Income Fund 2,190 (7,931) (5,741)
Boston 1784 Connecticut Tax-Exempt Income Fund 1,799 (5,416) (3,617)
Boston 1784 Florida Tax-Exempt Income Fund 346 (2,193) (1,847)
Boston 1784 Massachusetts Tax-Exempt Income Fund 2,464 (7,320) (4,856)
Boston 1784 Rhode Island Tax-Exempt Income Fund 783 (3,708) (2,925)
Boston 1784 Asset Allocation Fund 11,275 (1,577) 9,698
Boston 1784 Growth and Income Fund 255,663 (2,018) 253,645
Boston 1784 Growth Fund 119,237 (3,115) 116,122
Boston 1784 International Equity Fund 140,435 (4,924) 135,511
</TABLE>
84
<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 six month period ended November 30, 1999, the
following funds were borrowed under the agreement.
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED
MAXIMUM AVERAGE INTEREST AVERAGE
FUND BORROWING LOAN BALANCE DATE PAID RATE
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
International Equity Fund $13,500,000 $6,760,000 11/18/99-11/22/99 $5,268 5.99%
</TABLE>
At November 30, 1999, there were no borrowings outstanding under the agreement.
85
<PAGE>
NOVEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 November
30, 1999:
- --------------------------------------------------------------------------------
BOSTON 1784 INTERNATIONAL EQUITY FUND
FOREIGN CURRENCY SALES:
<TABLE>
<CAPTION>
CONTRACT TO IN EXCHANGE UNREALIZED
MATURITY RECEIVE FOR DEPRECIATION
DATE (000) (000) (000)
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
12/01/99 GBP 114 $214 $ 33
=====
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
Currency Legend
GBP -- Great British Pounds
</FN>
</TABLE>
86
<PAGE>
BOSTON 1784 FUNDS
RECENT DEVELOPMENTS
- --------------------------------------------------------------------------------
The merger of BankBoston Corporation, the parent company of BankBoston, with
Fleet Financial Group, Inc., forming FleetBoston Financial Corporation, was
successfully completed on October 1, 1999. BankBoston, the adviser to Boston
1784 Funds, is now a subsidiary of FleetBoston Financial Corporation.
In addition, Oechsle International Advisors LLC ("Oechsle") will succeed
Kleinwort Benson Investment Management Americas Inc. as co-investment adviser to
the International Equity Fund on or before February 7, 2000. Oechsle is a
U.S.-based investment adviser currently managing approximately $12 billion of
assets, with offices in Boston, England, Japan, Germany and Cayman Island, BWI.
FleetBoston Financial Corporation owns approximately 36% of Oechsle.
Singleton Dewey Keesler, Jr. and Kathleen Harris, CFA of Oechsle will serve as
co-managers of Boston 1784 International Equity Fund, along with Kenton J. Ide,
Director of Investments for BankBoston's Private Bank, who has been a co-manager
of the Fund since 1995. Mr. Keesler is Chief Investment Officer and a portfolio
manager/research analyst with Oechsle, and has been associated with Oechsle
since 1986. Ms. Harris, a principal and portfolio manager with Oechsle, has been
associated with Oechsle since 1995. There will be no change in the management
fees payable by Boston 1784 International Equity Fund.
87
<PAGE>
NOTES
- --------------------------------------------------------------------------------
<PAGE>
BLANK PAGE
<PAGE>
MONEY MARKET FUNDS
[Bullet] Boston 1784 Tax-Free Money Market Fund
[Bullet] Boston 1784 U.S. Treasury Money Market Fund
[Bullet] Boston 1784 Institutional U.S. Treasury
Money Market Fund*
[Bullet] Boston 1784 Prime Money Market Fund
[Bullet] Boston 1784 Institutional Prime Money
Market Fund*
BOND FUNDS
[Bullet] Boston 1784 Short-Term Income Fund
[Bullet] Boston 1784 Income Fund
[Bullet] Boston 1784 U.S. Government
Medium-Term Income Fund
TAX-EXEMPT INCOME FUNDS
[Bullet] Boston 1784 Tax-Exempt Medium-Term Income Fund
[Bullet] Boston 1784 Connecticut Tax-Exempt Income Fund
[Bullet] Boston 1784 Florida Tax-Exempt Income Fund
[Bullet] Boston 1784 Massachusetts Tax-Exempt Income Fund
[Bullet] Boston 1784 Rhode Island Tax-Exempt Income Fund
STOCK FUNDS
[Bullet] Boston 1784 Asset Allocation Fund
[Bullet] Boston 1784 Growth and Income Fund
[Bullet] Boston 1784 Growth Fund
[Bullet] Boston 1784 International Equity Fund
* Covered by Boston 1784 Institutional Money Market Funds Semi-Annual Report
[Boston logo omitted]
Boston 1784 Funds
P.O. Box 8524
Boston, MA 02266-8524
1-800-BKB-1784
BOARD OF TRUSTEES
David H. Carter
Tarrant Cutler
Kenneth A. Froot
Sara L. Johnson
Kathryn Flacke Muncil
Robert A. Nesher
Alvin J. Silk
INVESTMENT ADVISER
BankBoston, N.A.
Boston, MA 02110
CO-ADVISER FOR
BOSTON 1784 INTERNATIONAL EQUITY FUND
Kleinwort Benson Investment
Management Americas Inc.
New York, NY 10005
ADMINISTRATOR
SEI Investments Mutual Funds Services
Oaks, PA 19456
DISTRIBUTOR
SEI Investments Distribution Co.
Oaks, PA 19456
LEGAL COUNSEL
Bingham Dana LLP
Boston, MA 02110
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
Philadelphia, PA 19103
CUSTODIAN
Investors Bank & Trust Company
Boston, MA 02116
This report and the financial statements contained herein are for the general
information of the shareholders of the funds named above. This report is not
authorized for distribution to prospective investors in a fund unless
preceded or accompanied by a currently effective prospectus.
MF-0149
