Boston 1784 Institutional Money Market Funds
[Logo Omitted]
Semi-Annual Report to Shareholders
November 30, 1999
<PAGE>
TABLE OF CONTENTS
================================================================================
LETTER TO SHAREHOLDERS 1
INVESTMENT ADVISER'S REPORT 2
FINANCIAL STATEMENTS 4
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.
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.
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
LETTER TO SHAREHOLDERS
================================================================================
[picture of Robert Nesher Omitted]
Robert A. Nesher
President
It is a pleasure to provide you with this semi-annual report for Boston 1784
Institutional Money Market Funds.
BOSTON 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND remained among the
best performers in its peer group. For the 12 months ended November 30, 1999,
the Fund's total return of 4.77% ranked 18th out of 121 funds (top 15%) in the
Lipper Institutional U.S. Treasury Money Market Funds Average. The total assets
of the Fund as of November 30, 1999 were $4.9 billion.
Also of significance, the Fund sustained its AAAm rating from Standard & Poor's
for the 12 months ended November 30, 1999. The rating signifies that, in the
opinion of Standard & Poor's, the Fund offers excellent safety of investment
principal and superior capacity to maintain a $1.00 per share net asset value
at all times, limiting your exposure to loss through conservative investment
practices and strict internal controls. The rating is based on an analysis
of the Fund's credit quality, market price exposure and management, and is
reviewed on a weekly basis by Standard & Poor's.
BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND generated a total return of
4.95% for the 12 months ended November 30, 1999. Assets under management
continued to grow rapidly, increasing over 40% to $849 million during the
12-month period.
Please remember that a Fund's performance in the past is not necessarily an
indication of how a Fund will do in the future.
In the Investment Adviser's Report, you will read that money market investors
have benefited from three interest rate increases since June 1999 as the Federal
Reserve Board reacted to inflation fears sparked by a vigorous economy.
Regardless of the Federal Reserve Board's action in the months ahead, we will
strive to maximize the productivity of your investment without compromising its
safety.
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 16 of
this report.
If you have questions regarding your account or this report, please feel free 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).
Thank you for selecting Boston 1784 Funds to manage your cash reserves.
Sincerely,
/s/signature omitted
Robert A. Nesher
President
Boston 1784 Funds
1
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INVESTMENT ADVISER'S REPORT
================================================================================
[picture of Edward G. Riley, Jr. Omitted]
Edward G. Riley, Jr.
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 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.
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.
The soaring stock market is also contributing to inflationary pressure by
boosting the confidence of virtually any consumer with a 401(k) plan--provided
he or she has invested liberally in technology and Internet stocks. These "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.
The equity markets have soared despite developments that once would have been
an anathema to stock prices--raising questions about the efficacy of traditional
Federal
Federal Funds Rate
NOVEMBER 1996-NOVEMBER 1999
[Line Graph Omitted]
Plot Points as follows:
11/96 5/97 11/97 5/98 11/98 5/99 11/99
5.50 5.50 4.75 4.75 5.50 5.31 5.50
2
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BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
================================================================================
Reserve Board remedies. We've already alluded to 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% today. Even so, the S&P 500 manages to sustain a relatively
high price/earnings multiple of 24 times.
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 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.
/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.
3
<PAGE>
AS OF NOVEMBER 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
- -------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- -------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 29.0%
Federal Farm Credit Bank MTN (B)
5.855%, 12/07/99 $ 45,000 $ 44,988
Federal Home Loan Bank
5.201%, 12/01/99 59,089 59,089
5.000%, 12/29/99 15,000 15,000
5.000%, 12/29/99 15,425 15,425
4.910%, 02/09/00 25,000 25,000
5.100%, 03/09/00 23,920 23,919
5.115%, 03/17/00 3,000 3,000
5.040%, 03/29/00 23,990 23,986
5.020%, 05/12/00 28,190 28,180
5.350%, 06/08/00 36,000 35,984
5.710%, 08/09/00 10,000 9,988
Federal Home Loan Bank (A)
5.880%, 12/07/99 45,000 45,000
5.956%, 02/25/00 40,000 40,000
Federal Home Loan Bank (B)
5.895%, 12/08/99 45,000 45,000
Federal Home Loan Mortgage
5.238%, 12/10/99 16,793 16,771
5.343%, 12/15/99 28,765 28,706
5.236%, 12/16/99 39,683 39,597
5.246%, 12/21/99 15,000 14,957
5.603%, 01/27/00 50,000 49,567
5.516%, 06/06/00 45,000 43,771
Federal National Mortgage Association
5.341%, 12/01/99 68,127 68,127
5.325%, 12/02/99 25,000 24,996
5.336%, 12/02/99 50,000 49,993
5.331%, 12/06/99 50,000 49,963
5.335%, 12/07/99 33,907 33,877
5.336%, 12/08/99 70,000 69,928
5.347%, 12/08/99 20,000 19,979
5.252%, 12/10/99 10,500 10,486
5.300%, 12/10/99 30,000 29,961
5.292%, 12/13/99 45,000 44,922
5.240%, 12/17/99 25,000 24,942
5.311%, 12/17/99 50,000 49,883
5.645%, 01/19/00 25,000 24,811
5.619%, 01/20/00 45,000 44,653
5.586%, 02/07/00 25,000 24,744
5.663%, 02/14/00 45,000 44,479
5.050%, 05/12/00 20,000 19,992
- ------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------
Federal National Mortgage
Association, MTN
5.430%, 01/27/00 $ 20,000 $ 19,988
Student Loan Marketing
Association (B)
5.835%, 12/07/99 148,545 148,505
Student Loan Marketing
Association, MTN (A)
6.005%, 08/03/00 34,000 33,989
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $1,446,146) 1,446,146
----------
U.S. TREASURY OBLIGATIONS -- 11.8%
U.S. Treasury Notes
5.375%, 01/31/00 22,500 22,523
5.500%, 03/31/00 106,000 106,194
5.500%, 05/31/00 45,000 45,004
5.375%, 06/30/00 95,000 94,994
5.375%, 07/31/00 46,000 46,029
U.S. Treasury Bills
4.620%, 12/23/99 45,000 44,875
5.204%, 01/20/00 50,000 49,642
4.856%, 02/03/00 45,000 44,621
5.030%, 02/17/00 45,000 44,522
4.877%, 03/02/00 22,500 22,220
4.887%, 03/09/00 22,500 22,198
5.214%, 04/27/00 50,000 48,955
----------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $591,777) 591,777
----------
REPURCHASE AGREEMENTS -- 59.4%
Dean Witter
5.650%, dated 11/30/99, matures
12/01/99, repurchase price
$550,085,137 (collateralized by
U.S. Treasury Instruments:
total market value
$561,000,829) (C) 550,000 550,000
4
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BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
================================================================================
- ------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------
Goldman
5.630%, dated 11/30/99, matures
12/01/99, repurchase price
$190,029,307 (collateralized by
U.S. Treasury Instruments:
total market value
$193,800,807) (C) $190,000 $ 190,000
Greenwich Capital
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$800,124,055 (collateralized by
U.S. Treasury Instruments:
total market value
$816,001,345) (C) 800,000 800,000
HSBC DVP
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$190,029,463 (collateralized by
U.S. Treasury Instruments:
total market value
$194,118,452) (C) 190,000 190,000
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$632,433,055 (collateralized by
U.S. Treasury Instruments:
total market value
$644,981,912) (C) 632,335 632,335
Lehman
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$190,029,463 (collateralized by
U.S. Treasury Instruments:
total market value
$193,800,083) (C) 190,000 190,000
Prudential
5.670%, dated 11/30/99, matures
12/01/99, repurchase price
$409,078,537 (collateralized by
U.S. Treasury Instruments:
total market value
$414,096,194) (C) 409,015 409,015
----------
- ------------------------------------------------------
DESCRIPTION VALUE (000)
- ------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(COST $2,961,350) $2,961,350
----------
TOTAL INVESTMENTS -- 100.2%
(COST $4,999,273) 4,999,273
----------
OTHER ASSETS AND LIABILITIES,
NET -- (0.2%) (11,179)
----------
NET ASSETS:
Capital Shares (unlimited
authorization -- no par value)
based on 4,988,049,468
outstanding shares of beneficial
interest $4,988,049
Distributions in Excess of Net Investment
Income (4)
Accumulated Net Realized Gain on
Investments 49
----------
TOTAL NET ASSETS -- 100.0% $4,988,094
==========
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.
5
<PAGE>
AS OF NOVEMBER 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND
- ------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------
COMMERCIAL PAPER -- 52.5%
AUTOMOTIVE -- 3.5%
BMW (A)
5.345%, 12/02/99 $20,000 $ 19,997
DaimlerChrysler (A)
6.077%, 01/19/00 10,000 9,918
--------
29,915
--------
BANKS -- 2.4%
First Union National Bank (A)
5.569%, 11/24/00 20,000 19,996
--------
CHEMICALS -- 2.6%
Dupont (A)
5.345%, 12/17/99 22,178 22,126
--------
COMMUNICATIONS EQUIPMENT -- 3.5%
Motorola (A)
5.525%, 12/16/99 30,000 29,931
--------
DRUGS -- 3.5%
Pfizer (A)
5.701%, 12/29/99 20,000 19,914
Procter & Gamble (A)
5.347%, 12/14/99 10,000 9,981
--------
29,895
--------
FINANCIAL SERVICES -- 15.9%
BMW US Capital (A)
5.480%, 12/17/99 20,000 19,951
Clipper Receivables (A)
5.449%, 12/08/99 15,000 14,984
Ford Motor Credit (A)
5.324%, 12/03/99 15,000 14,996
6.026%, 01/10/00 10,000 9,934
General Electric Capital (A)
5.345%, 12/09/99 20,000 19,976
General Motors Acceptance (A)
5.312%, 12/07/99 15,000 14,987
JP Morgan (A)
5.730%, 02/01/00 10,000 9,904
National Rural Utilities (A)
5.491%, 12/14/99 30,000 29,941
--------
134,673
--------
- ------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 5.5%
Campbell Soup (A)
5.323%, 12/15/99 $20,000 $ 19,959
Coca Cola (A)
5.286%, 12/06/99 15,000 14,989
Heinz H J (A)
5.310%, 12/10/99 11,333 11,318
--------
46,266
--------
LEASING & RENTING -- 2.1%
International Lease (A)
5.862%, 02/18/00 18,000 17,772
--------
MUNICIPALS -- 1.5%
New York City
5.500%, 12/01/99 4,335 4,335
5.500%, 12/02/99 3,150 3,150
6.100%, 02/23/00 5,300 5,300
--------
12,785
--------
PETROLEUM REFINING -- 3.5%
Koch Industries (A)
5.701%, 12/01/99 30,000 30,000
--------
RETAIL -- 2.9%
Wal-Mart (A)
5.328%, 12/16/99 25,000 24,945
--------
TELEPHONES & TELECOMMUNICATIONS -- 5.6%
BellSouth Telecommunication (A)
5.860%, 01/26/00 17,750 17,590
SBC Communications (A)
5.483%, 12/16/99 30,000 29,932
--------
47,522
--------
TOTAL COMMERCIAL PAPER
(COST $445,826) 445,826
--------
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BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
================================================================================
- ------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------
CORPORATE BONDS -- 16.9%
Abbey National Treasury
5.701%, 12/01/99 $20,000 $ 20,000
5.050%, 04/17/00 3,000 2,992
Advocare (B)
5.590%, 12/01/99 4,150 4,150
American General
8.000%, 02/15/00 7,050 7,080
Bowie Assisted Living,
Series 1997, LOC (B) (C)
5.800%, 12/01/99 6,700 6,700
Caterpillar Financial Services
5.780%, 03/01/00 3,745 3,744
5.810%, 07/05/00 3,025 3,021
Chrysler Financial, MTN
6.375%, 01/28/00 5,500 5,508
CIT Group, MTN
6.800%, 04/17/00 4,670 4,695
Fifth Third Ohio Bank
5.980%, 01/28/00 12,000 12,000
General Electric Capital
5.040%, 01/18/00 2,000 2,000
5.890%, 05/15/00 5,000 5,000
General Motors Acceptance, MTN
6.700%, 04/17/00 4,000 4,022
7.500%, 06/09/00 4,000 4,029
Household Finance, MTN
6.000%, 05/08/00 5,000 5,005
International Business
Machines
5.790%, 03/20/00 5,000 5,004
6.375%, 06/15/00 3,000 3,010
Mellon Financial
6.300%, 06/01/00 1,500 1,505
NationsBank
5.375%, 04/15/00 2,000 1,995
Norwest Corporation
7.125%, 04/01/00 1,000 1,004
Norwest Financial
6.000%, 03/15/00 3,917 3,924
7.250%, 03/15/00 1,775 1,782
Pepsico
6.800%, 05/15/00 1,700 1,708
Pepsico, MTN
5.875%, 06/01/00 5,400 5,395
- ------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------
Sears Roebuck Acceptance, MTN
5.880%, 05/08/00 $12,000 $ 11,992
Service Graphics (B)
5.750%, 12/01/99 1,800 1,800
UNO, LOC (B)
5.750%, 12/01/99 2,900 2,900
Wachovia
7.000%, 12/15/99 1,618 1,619
Walt Disney, MTN
5.600%, 01/13/00 10,375 10,376
--------
TOTAL CORPORATE BONDS
(COST $143,960) 143,960
--------
TAXABLE MUNICIPAL BONDS -- 4.5%
Barton Healthcare (B)
5.750%, 12/01/99 600 600
Collier County, Florida,
Community Health Care
Authority RB, LOC (B)
5.650%, 12/02/99 3,000 3,000
Dade County, Florida,
Expressway Authority
Toll System RB, Series 1996,
FGIC (B)
5.600%, 12/02/99 1,200 1,200
Florida Housing Financing Agency,
RB, MBIA (A)
6.000%, 12/01/99 2,500 2,499
Florida Housing Financing Agency,
RB, FSA (A)
6.000%, 12/01/99 5,000 5,000
Health Midwest Venture (B)
5.750%, 12/01/99 1,900 1,900
Illinois State Student Assistance
RB, LOC (B)
5.570%, 12/01/99 5,000 5,000
Los Angeles, California,
Community Redevelopment
Agency RB, FSA (B)
5.700%, 12/01/99 5,500 5,500
Maryland State Health & Higher
Education Facilities RB,
Series B, LOC (B)
5.650%, 12/01/99 3,000 3,000
7
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AS OF NOVEMBER 30, 1999
STATEMENT OF NET ASSETS (UNAUDITED)
================================================================================
BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND (CONCLUDED)
- ------------------------------------------------------
DESCRIPTION PAR (000) VALUE (000)
- ------------------------------------------------------
Olathe, Kansas, Industrial RB,
LOC (B)
5.600%, 12/02/99 $ 3,500 $ 3,500
Union County, Arkansas,
Industrial RB, LOC (B)
5.750%, 12/01/99 7,000 7,000
--------
TOTAL TAXABLE MUNICIPAL BONDS
(COST $38,199) 38,199
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 18.0%
Federal Home Loan Bank
5.100%, 03/09/00 10,000 10,000
5.100%, 05/17/00 7,000 6,995
5.710%, 08/09/00 10,000 9,992
Federal Home Loan Bank (A)
5.905%, 01/28/00 23,000 22,998
Federal Home Loan Mortgage
Corporation
5.611%, 12/01/99 40,000 40,000
5.238%, 12/02/99 30,000 29,996
4.980%, 04/28/00 10,000 9,998
Federal National Mortgage
Association
5.050%, 05/12/00 5,000 4,998
Student Loan Marketing
Association (B)
5.835%, 12/07/99 10,000 9,997
Student Loan Marketing
Association, MTN (A)
6.005%, 08/03/00 8,000 7,997
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $152,971) 152,971
--------
REPURCHASE AGREEMENT -- 8.2%
JP Morgan
5.660%, dated 11/30/99, matures
12/01/99, repurchase price
$70,052,861 (collateralized by
U.S. Treasury Instruments:
total market value
$71,442,864) (D) 70,042 70,042
--------
- ------------------------------------------------------
DESCRIPTION VALUE (000)
- ------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $70,042) $ 70,042
--------
TOTAL INVESTMENTS -- 100.1%
(COST $850,998) 850,998
--------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%) $ (1,012)
--------
NET ASSETS:
Capital Shares (unlimited authorization --
no par value) based on 849,993,307
outstanding shares of beneficial interest 849,993
Distributions in Excess of Net Investment
Income (4)
Accumulated Net Realized Loss on
Investments (3)
--------
TOTAL NET ASSETS -- 100.0% $849,986
========
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) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES
ACT OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT
FROM REGISTRATION NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS.
(D) TRI-PARTY REPURCHASE AGREEMENT
LOC -- SECURITIES ARE HELD IN CONNECTION WITH A LETTER OF CREDIT ISSUED BY A
MAJOR COMMERCIAL BANK OR OTHER FINANCIAL INSTITUTION.
MTN -- MEDIUM TERM NOTE
RB -- REVENUE BOND
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR
THE SECURITIES AS SET FORTH IN THE STATEMENT OF NET ASSETS.
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FSA -- FINANCIAL SECURITY ASSURANCE
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS (000) (UNAUDITED)
================================================================================
FOR THE PERIOD ENDED NOVEMBER 30, 1999
BOSTON BOSTON 1784
1784 INSTITUTIONAL INSTITUTIONAL
U.S. TREASURY PRIME MONEY
MONEY MARKET FUND MARKET FUND
================= ===========
INTEREST INCOME: $118,632 $19,474
-------- --------
EXPENSES:
INVESTMENT ADVISORY FEES 4,654 738
LESS: WAIVER OF INVESTMENT ADVISORY FEES -- (21)
ADMINISTRATOR FEES 1,521 241
REGISTRATION FEES 109 30
TRANSFER AGENT FEES & EXPENSES 271 53
PROFESSIONAL FEES 158 23
PRINTING 76 16
CUSTODIAN FEES 108 19
TRUSTEE FEES 41 5
OTHER EXPENSES 111 3
------- -------
TOTAL EXPENSES, NET OF WAIVERS 7,049 1,107
------- -------
NET INVESTMENT INCOME 111,583 18,367
------- -------
NET REALIZED GAIN (LOSS) ON INVESTMENTS 1 --
------- -------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $111,584 $18,367
======== =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
9
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000)
================================================================================
FOR THE PERIOD ENDED NOVEMBER 30, 1999 (UNAUDITED) AND THE PERIOD ENDED MAY 31,
1999
<TABLE>
<CAPTION>
BOSTON BOSTON
1784 INSTITUTIONAL 1784 INSTITUTIONAL
U.S. TREASURY PRIME MONEY
MONEY MARKET FUND MARKET FUND
========================= ===========================
6/1/99 6/1/98 6/1/99 6/1/98
TO TO TO TO
11/30/99 5/31/99 11/30/99 5/31/99
----------- ----------- ----------- -----------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME $ 111,583 $ 199,476 $ 18,367 $ 24,188
NET REALIZED GAIN (LOSS) ON INVESTMENTS 1 49 -- (3)
----------- ------------ ---------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 111,584 199,525 18,637 24,185
----------- ------------ ---------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
NET INVESTMENT INCOME (111,779) (199,476) (18,371) (24,188)
REALIZED CAPITAL GAINS -- -- -- --
----------- ------------ ---------- -----------
TOTAL DISTRIBUTIONS (111,779) (199,476) (18,371) (24,188)
----------- ------------ ---------- -----------
SHARE TRANSACTIONS:
PROCEEDS FROM SHARES ISSUED 9,182,717 14,696,641 3,822,080 4,471,716
REINVESTMENT OF CASH DISTRIBUTIONS 32,241 74,848 12,056 18,834
COST OF SHARES REDEEMED (8,527,706) (14,711,302) (3,501,047) (4,275,984)
----------- ------------ ---------- -----------
INCREASE IN NET ASSETS
FROM SHARE TRANSACTIONS 642,252 60,187 333,089 214,566
----------- ------------ ---------- -----------
TOTAL INCREASE IN NET ASSETS 642,057 60,236 333,085 214,563
=========== ============ ========== ===========
NET ASSETS:
BEGINNING OF PERIOD 4,346,037 4,285,801 516,901 302,338
----------- ------------ ---------- -----------
NET ASSETS:
END OF PERIOD $ 4,988,094 $ 4,346,037 $849,986 $ 516,901
=========== ============ ========== ===========
CAPITAL SHARE TRANSACTIONS:
SHARES ISSUED 9,182,717 14,696,641 3,822,080 4,471,716
SHARES ISSUED IN LIEU OF CASH DISTRIBUTIONS 32,241 74,848 12,056 18,834
SHARES REDEEMED (8,572,706) (14,711,302) (3,501,047) (4,275,984)
----------- ------------- ----------- -----------
NET INCREASE IN CAPITAL SHARE TRANSACTIONS 642,252 60,187 333,089 214,566
=========== ============= =========== ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
FINANCIAL HIGHLIGHTS
================================================================================
BOSTON 1784 INSTITUTIONAL MONEY MARKET FUNDS
FOR THE PERIOD ENDED NOVEMBER 30, 1999 (UNAUDITED) AND THE PERIODS ENDED MAY 31
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
RATIO OF NET
RATIO RATIO INVESTMENT
NET NET NET OF NET OF EXPENSES INCOME TO
ASSET DISTRIBUTIONS ASSET ASSETS RATIO INVEST- TO AVERAGE AVERAGE NET
VALUE NET FROM NET VALUE END OF EXPENSES MENT INCOME NET ASSETS 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 INSTITUTIONAL
U.S. TREASURY MONEY MARKET FUND
FOR THE SIX MONTH PERIOD ENDED
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NOVEMBER 30, 1999+ $1.00 0.02 (0.02) $1.00 4.77% $4,988,094 0.30% 4.80% 0.30% 4.80%
FOR THE YEAR ENDED
MAY 31, 1999 $1.00 0.05 (0.05) $1.00 4.90% $4,346,037 0.31% 4.79% 0.31% 4.79%
FOR THE YEAR ENDED
MAY 31, 1998 $1.00 0.05 (0.05) $1.00 5.36% $4,285,801 0.33% 5.24% 0.33% 5.24%
FOR THE YEAR ENDED
MAY 31, 1997 $1.00 0.05 (0.05) $1.00 5.16% $2,591,487 0.33% 5.05% 0.34% 5.04%
FOR THE YEAR ENDED
MAY 31, 1996 $1.00 0.05 (0.05) $1.00 5.45% $ 644,733 0.32% 5.29% 0.39% 5.22%
FOR THE YEAR ENDED
MAY 31, 1995 $1.00 0.05 (0.05) $1.00 5.05% $ 395,585 0.30% 5.12% 0.41% 5.01%
- ------------------------------------------------------------------------------------------------------------------------------------
BOSTON 1784 INSTITUTIONAL
PRIME MONEY MARKET FUND
FOR THE SIX MONTH PERIOD ENDED
NOVEMBER 30, 1999+ $1.00 0.02 (0.02) $1.00 4.95% $ 849,986 0.30% 4.98% 0.31% 4.97%
FOR THE YEAR ENDED
MAY 31, 1999 $1.00 0.05 (0.05) $1.00 5.10% $ 516,901 0.30% 4.93% 0.35% 4.88%
FOR THE PERIOD ENDED
MAY 31, 1998 (1) $1.00 0.03 (0.03) $1.00 5.55% $ 302,338 0.27% 5.36% 0.42% 5.21%
- --------------------------------------------------------------------------------------------------------------------------------
<FN>
+ ALL RATIOS FOR THE SEMI-ANNUAL PERIOD ENDED NOVEMBER 30, 1999 INCLUDING
TOTAL RETURN HAVE BEEN ANNUALIZED.
(1) BOSTON 1784 INSTITUTIONAL PRIME MONEY MARKET FUND COMMENCED OPERATIONS
ON NOVEMBER 5, 1997. ALL RATIOS FOR THE PERIOD, INCLUDING TOTAL
RETURN, HAVE BEEN ANNUALIZED.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
11
<PAGE>
NOVEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
1. ORGANIZATION
Boston 1784 Institutional U.S. Treasury Money Market Fund and Boston 1784
Institutional Prime Money Market Fund are portfolios of Boston 1784 Funds (the
"Trust"), an open-end investment company registered under the Investment Company
Act of 1940, as amended. The Trust is offering shares in 17 separate portfolios
(the "Funds") as of November 30, 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 included herein.
The financial statements of the other Funds are presented separately. The assets
of each Fund are segregated, and a shareholder's interest is limited to the Fund
in which shares are held. The financial statements have been prepared in
accordance with generally accepted accounting principles which require the use
of management's estimates. Actual results could differ from these estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by Boston
1784 Institutional U.S. Treasury Money Market Fund and Boston 1784 Institutional
Prime Money Market Fund (the "Institutional Funds").
SECURITY VALUATION --
Investment securities of the Institutional Funds are stated at amortized cost,
which approximates market value. Under this valuation method, purchase discounts
and premiums are accreted and amortized ratably to maturity and are included in
interest income.
12
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
================================================================================
SECURITY TRANSACTIONS AND INVESTMENT INCOME --
Security transactions are accounted for on the trade date of the security
purchase or sale. Costs used in determining net realized capital gains and
losses on the sale of securities are those of the specific securities sold,
adjusted for the accretion and amortization of the purchase discounts and
premiums during the respective holding period. Interest income is recorded on
the accrual basis.
REPURCHASE AGREEMENTS --
The Institutional Funds invest in tri-party repurchase agreements. Securities
pledged as collateral for tri-party repurchase agreements are maintained in a
segregated account by the broker's custodian bank until maturity of the
repurchase agreements. Provisions of the repurchase agreements and procedures
adopted by the Adviser are intended to ensure that the market value of the
collateral, including accrued interest thereon, is sufficient in the event of
default by the counterparty. If the counter-party defaults and the value of the
collateral declines or if the counterparty enters into insolvency proceedings,
realization on the collateral by the Institutional Funds may be delayed or
limited.
EXPENSES --
Expenses that are directly related to the Funds are charged directly to the
Funds. Other operating expenses of the Trust are prorated to the Funds on the
basis of relative net assets.
DISTRIBUTIONS TO SHAREHOLDERS --
Distributions from net investment income are declared on a daily basis and are
payable on the first business day of the following month. Any net realized
capital gains on sales of securities for the Institutional Funds are distributed
to its shareholders at least annually.
FEDERAL INCOME TAXES --
The Trust's policy is to comply with the require-ments of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to its shareholders. Accordingly, no provision for federal
income taxes is required in the financial statements. At November 30, 1999,
the total cost of securities for federal income tax purposes was not materially
different from amounts reported for financial reporting purposes.
ORGANIZATIONAL COSTS --
These costs have been deferred in the account of the Institutional Funds and are
being amortized on a straight line basis over a period of sixty months
commencing with operations. If any or all of the shares representing initial
capital of the Institutional Funds are redeemed by any holder thereof prior to
the end of the amortization period, the proceeds will be reduced by the
unamortized organizational cost balance in the same proportion as the number of
shares redeemed bears to the initial shares outstanding immediately preceding
the redemption.
13
<PAGE>
NOVEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
================================================================================
3. INVESTMENT ADVISORY AND CUSTODIAL SERVICES
Pursuant to an investment advisory agreement dated June 1, 1993, investment
advisory services are provided to the Trust by BankBoston, N.A. (the "Adviser").
The Adviser is entitled to receive an annual fee of 0.20% of the average daily
net assets for each of the Institutional Funds. Such fee is computed daily and
paid monthly. BankBoston, N.A. has voluntarily agreed to waive a portion of its
investment advisory fee in order to maintain competitive expense ratios.
The Institutional Funds and BankBoston, N.A. were parties to a custodial
agreement dated June 1, 1993 under which BankBoston, N.A. held cash, securities
and other assets of the Institutional Funds as required by the Investment
Company Act of 1940, as amended. For the period June 1, 1998 to September 30,
1998, BankBoston, N.A. served as the Funds' custodian and received an annual
fee, paid monthly, of 0.01% for the first $100 million in average daily net
assets, 0.0075% for the next $100 million and 0.005% of the average daily net
assets over $200 million of each of the Institutional Funds. On September 30,
1998, the Custodial Agreement was amended and assigned to Investors Bank & Trust
("IBT"). Effective October 1, 1998, IBT is entitled to receive an annual fee, to
be paid monthly, of 0.005% of the market value of each Institutional Fund's
assets. In the capacity as custodian to the Institutional Funds, BankBoston,
N.A. played and IBT plays no role in determining the investment policies of the
Institutional Funds or which securities are to be purchased or sold by the
Institutional Funds.
4. ADMINISTRATIVE AND DISTRIBUTION SERVICES
Pursuant to an administration agreement dated December 1, 1996, SEI Investments
Mutual Funds Services, a wholly-owned subsidiary of SEI Investments Company,
acts as the Trust's Administrator, and is entitled to receive an annual fee of
0.085% of the Trust's first $5 billion of average daily net assets and 0.045% of
the Trust's average daily net assets over $5 billion.Such fee is computed
daily and paid monthly.
SEI Investments Distribution Co. ("SEI Investments"), a wholly-owned
subsidiary of SEI Investments Company, acts as the Institutional Funds'
Distributor pursuant to a distribution agreement dated June 1, 1993, as amended
and restated October 27, 1995. SEI Investments is paid no fees by the
Institutional Funds.
Certain officers of the Trust are also officers of the Administrator. Such
officers are paid no fees by the Trust.
The Trust has paid legal fees to a law firm, of which the Secretary of the
Trust is a member.
14
<PAGE>
BOSTON 1784 INSTITUTIONAL
MONEY MARKET FUNDS
================================================================================
5. LINE OF CREDIT
The Trust has entered into a Line of Credit Agreement. Pursuant to this
agreement, the Trust has access to a $50 million uncommitted line of credit and
a $20 million committed line of credit. The Trust is charged a commitment fee of
.10% of the unused portion of the committed line of credit. Borrowings under the
line are charged interest at the current overnight Federal Funds rate plus
0.50%. Each Fund is individually, and not jointly, liable for its particular
advances under the line. There were no borrowings under the line of credit by
the Institutional Funds during the period ended November 30, 1999.
15
<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. Thomas M.
O'Neill is Chief Investment Officer 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.
16
<PAGE>
BOARD OF TRUSTEES
David H. Carter
Tarrant Cutler
Kenneth A. Froot
Sara L. Johnson
Kathryn Flacke Muncil
Robert A. Nesher
Alvin J. Silk
INVESTMENT ADVISER
BankBoston, N.A.
Boston, MA 02110
================================================================================
ADMINISTRATOR
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
[logo omitted]
Boston 1784 Funds
P.O. Box 8524
Boston, MA 02266-8524
1-800-BKB-1784
This report and the financial statements contained herein are for the general
information of the shareholders ofBoston 1784 Institutional U.S. Treasury
Money Market Fund and Boston 1784 Institutional Prime Money Market Fund.
This report is not authorized for distribution to prospective investors in
a Fund unless preceded or accompanied by a currently effective prospectus.
MF-0151
