-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KCxij+AXP83dcoyBuVcsaTYHz92tD0XkLt0yQq5IqS6p35UGjlZZCLzTRqwM0e/F +/vvzjYEcguCLa7GxFBeKQ== 0001047469-04-038634.txt : 20041230 0001047469-04-038634.hdr.sgml : 20041230 20041230142800 ACCESSION NUMBER: 0001047469-04-038634 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20041031 FILED AS OF DATE: 20041230 DATE AS OF CHANGE: 20041230 EFFECTIVENESS DATE: 20041230 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON ADVISORS TRUST CENTRAL INDEX KEY: 0001097433 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1228 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-09675 FILM NUMBER: 041233682 BUSINESS ADDRESS: STREET 1: 100 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 MAIL ADDRESS: STREET 1: 100 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 N-CSRS 1 a2149251zn-csrs.txt N-CSRS ----------------------------- OMB APPROVAL ----------------------------- OMB Number: 3235-0570 Expires: November 30, 2005 Estimated average burden hours per response....... 5.0 ----------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-09675 --------------------------------------------- Boston Advisors Trust - ------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) One Federal Street, Boston, MA 02110 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Michael J. Vogelzang, Chief Executive Officer One Federal Street, Boston, MA 02110 - ------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 800-523-5903 ---------------------------- Date of fiscal year end: 04/30 -------------------------- Date of reporting period: 05/01/04 - 10/31/04 ------------------------- FORM N-CSR(2 OF 3) ITEM 1 REPORT TO SHAREHOLDERS. BOSTON ADVISORS MONEY MARKET FUNDS - ------------------------------------------------------------------------- OCTOBER 31, 2004 - -------------------------------------------------------------------------------- SEMI-ANNUAL REPORT MICHAEL J. VOGELZANG, CFA, PRESIDENT TODD A. FINKELSTEIN, CFA, DIRECTOR OF FIXED INCOME Over the period since the last shareholder report the economic recovery has continued unabated. Recognizing the strength of the recovery, and its sustainability, the Federal Reserve initiated a tightening of monetary policy in late June. The initial increase in short-term interest rates of 25 basis points (0.25%) took place June 30th, and as of this writing has been repeated three additional times. The 100 basis point increase thus far has doubled the Federal Funds target to 2.00% from 1.00% just a few months ago. Your funds have benefited directly from these rate increases as maturing investments have been reinvested at higher yields. Throughout this period of economic improvement the Boston Advisors family of money market funds has continued to provide safety and stability. In this Semi-Annual Report to shareholders we review the domestic investing environment and discuss the nature and characteristics of the portfolios within the Boston Advisors Trust. ECONOMIC AND INVESTING ENVIRONMENTS: Through June of 2003 the Federal Reserve pushed rates down to 1% and kept them there longer than many investors thought would be the case. The Fed's logic behind maintaining this very accommodative policy was improving productivity, low capacity utilization, high(er) unemployment rates, and low inflation. Strong productivity and excess manufacturing and employment capacity are characteristic of the early stages of an economic expansion -- a sweet spot that allows for economic improvement without inflation pressure. The passage of time has provided evidence that productivity growth is slowing, capacity utilization (while still low) is rising and unemployment is declining. All of these, combined with rising commodity prices and a falling currency, suggest the economy's emergence from early expansion into full swing. More importantly, conditions are becoming increasingly ripe for a pick-up in inflation, the recognition of which lies at the heart of the Fed's recent moves. While the economy is far from being constrained (operating at full capacity and full employment), inflation is beginning to get a toe-hold. Year-over-year producer prices are rising over 4%, with core prices (less food and energy) increasing 1.8%. Core prices are up from negative year-over-year levels just last year. Rising producer prices often work their way through the economic system, much like a snake that eats a mouse, and begin to affect changes in consumer prices. As manufacturers try to prevent a margin squeeze they push higher prices through the pipeline. Year-over-year CPI is up 3.2% . In an environment of greater than 3% real GDP growth (Q3 was +3.9%) we believe it is likely the Fed will continue to increase short-term rates well into 2005. Improvement in the economy has brought a restoration of credit quality to levels not seen in several years. This improvement has narrowed the yield spread over Treasury Bills from taxable investments to historical lows. Looking ahead, there appears to be little room for this trend to continue. However, we do not anticipate meaningful spread widening in 2005 to enhance the funds' yields. 1 BOSTON ADVISORS MONEY MARKET FUNDS - ------------------------------------------------------------------------- OCTOBER 31, 2004 (CONTINUED) - -------------------------------------------------------------------------------- In summary, the economic environment we envision over the next six months is ideally suited for money market funds: interest rates are expected to rise while credit quality continues to improve. The funds in Boston Advisors Trust are well positioned to benefit during this period. PORTFOLIO REVIEWS CASH RESERVES FUND - - The Portfolio invests only in high-quality obligors as ranked by nationally recognized statistical rating organizations. This emphasis on quality, coupled with broad diversification among issuers and sectors, enhances the fund's stability and liquidity -- important considerations in today's economic environment. As of October 31st, the portfolio consisted of commercial paper (46%), U.S. Government Agency Obligations (21%), certificates of deposit (16%), variable rate corporate notes (10%), repurchase agreements (6%), and corporate debt (1%). U.S. GOVERNMENT FUND - - The Portfolio invests exclusively in short-term U.S. government securities, including those guaranteed by any of its agencies or instrumentalities, and repurchase agreements based upon these securities. As of October 31st, the portfolio consisted of U.S. government agency obligations (98%), and repurchase agreements (2%). TAX FREE FUND - - The Portfolio invests in high quality short-term municipal obligations as ranked by nationally recognized statistical rating organizations. This high quality, coupled with broad diversification among issuers and sectors, helps provide stability and liquidity in today's environment. As of October 31st, the portfolio consisted of daily and weekly floating rate issues (65%), notes and bonds (29%), and commercial paper (6%). NEW YORK MUNICIPAL FUND - - The Portfolio invests only in high-quality short-term municipal securities with income exempt from regular federal income tax and from New York State and New York City personal income taxes. As of October 31st, the portfolio consisted of daily and weekly floating-rate issues (66%), notes and bonds (20%), and commercial paper (14%). 2 BOSTON ADVISORS TRUST AS OF 10/31/2004 BOSTON ADVISORS CASH RESERVES FUND EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
SECTOR BREAKDOWN SECTORS ALLOCATION Banking 30.50% US Government Agency Obl. 26.90% Asset-Backed 17.60% Financial Services 10.00% Broker 5.00% Industrial 3.30% Pharmaceuticals 2.00% Beverages and Tobacco 1.60% Canadian Provinces 1.20% Telephone Systems 1.20% Credit Card 0.90% Transportation 0.60%
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GEOGRAPHIC CONCENTRATION COUNTRY ALLOCATION United States 78.80% Canada 6.70% Switzerland 3.20% United Kingdom 3.20% Netherlands 2.30% Ireland 2.00% Germany 2.00% France 1.80%
3 BOSTON ADVISORS TRUST AS OF 10/31/2004 BOSTON ADVISORS US GOVERNMENT FUND EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
SECTOR BREAKDOWN SECTORS ALLOCATION FNMA 48.70% FHLMC 36.40% FHLB 10.40% REPO 2.40% FFCB 2.10%
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GEOGRAPHIC CONCENTRATION COUNTRY ALLOCATION United States 100.00%
4 BOSTON ADVISORS TRUST AS OF 10/31/2004 BOSTON ADVISORS TAX FREE FUND EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
SECTOR BREAKDOWN SECTORS ALLOCATION General Obligation 29.95% Industrial 16.88% Electric Utilities 14.04% Housing 7.63% Education 5.89% Health 5.83% Water & Sewer 5.39% Public Improvements 2.90% Miscellaneous 2.88% Pollution Control 2.66% Transportation 2.51% Financial Services 1.69% Tax Revenue 1.22%
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GEOGRAPHIC CONCENTRATION STATE ALLOCATION Washington 12.33% New York 10.90% Illinois 10.85% Georgia 7.62% Pennsylvania 5.70% California 5.01% Massachusetts 4.87% Texas 4.72% Minnesota 2.89% Virginia 2.86% North Carolina 2.76% Indiana 2.76% Other 14.80%
5 BOSTON ADVISORS TRUST AS OF 10/31/2004 BOSTON ADVISORS NEW YORK FUND EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
SECTOR BREAKDOWN SECTORS ALLOCATION General Obligation 20.00% Industrial 17.88% Housing 15.61% Transportation 13.75% Electric Utilities 7.31% Financial Services 6.76% Water & Sewer 5.27% Miscellaneous 4.76% Environment 3.32% Education 2.72% Public Improvements 1.13% Health 1.00%
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GEOGRAPHIC CONCENTRATION STATE ALLOCATION New York 99.52%
6 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- CASH RESERVES FUND SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - --------------------------------------------------------------------------------
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST - ------------------------------------------------------------------------------------------ ASSET-BACKED COMMERCIAL PAPER -- 16.1% BANKING -- 16.1% Ciesco LLC 1.880% 12/13/2004 $25,000,000 $ 24,945,167 Edison Asset Securitization LLC 1.850% 12/03/2004 30,000,000 29,950,667 Golden Funding Corp. 1.890% 12/07/2004 14,021,000 13,994,500 Lockhart Funding LLC 2.130% 03/23/2005 30,000,000 29,747,950 Starfish Global Funding LLC 1.790% 11/09/2004 37,500,000 37,485,083 Three Pillars Funding Corp. 1.800% 11/03/2004 21,151,000 21,148,885 Thunder Bay Funding, Inc. 1.860% 12/15/2004 30,000,000 29,931,800 Windmill Funding Corp. 1.940% 12/06/2004 15,000,000 14,971,708 -------------- TOTAL ASSET-BACKED COMMERCIAL PAPER $ 202,175,760 -------------- CERTIFICATES OF DEPOSIT -- 16.3% BANKING -- 16.3% Abbey National North America 1.900% 12/27/2004 25,000,000 25,000,000 Canadian Imperial Bank of Commerce 1.460% 11/17/2004 22,500,000 22,499,901 Credit Suisse NY Branch 1.530% 11/22/2004 20,000,000 20,000,000 First Tennessee Bank 1.650% 11/12/2004 20,000,000 19,998,937 SunTrust Banks, Inc. 2.060% 02/17/2005 37,500,000 37,500,000 Toronto Dominion Bank, Ltd. 1.880% 12/23/2004 30,000,000 30,000,000 Wells Fargo Bank NA 2.020% 01/31/2005 25,000,000 24,999,993 Wilmington Trust Corp. 2.020% 01/14/2005 25,000,000 25,000,000 -------------- TOTAL CERTIFICATES OF DEPOSIT $ 204,998,831 -------------- COMMERCIAL PAPER -- 29.7% AUTOMOBILES -- 0.6% Paccar Financial Corp. 1.970% 01/11/2005 8,100,000 8,068,529 -------------- BANKING -- 10.2% Bank of America Corp. 1.870% 12/20/2004 25,000,000 24,936,368 Citicorp 2.000% 02/03/2005 25,000,000 24,869,444 Governor & Co. (The) of The Bank of Ireland 1.810% 11/15/2004 25,000,000 24,982,403 ING (US) Funding LLC 1.880% 12/07/2004 29,000,000 28,945,480 Westdeutsche Landesbank 1.880% 12/16/2004 25,000,000 24,941,250 -------------- 128,674,945 -------------- BEVERAGES, FOOD & TOBACCO -- 1.6% Coca-Cola Co. (The) 1.800% 11/01/2004 20,000,000 20,000,000 -------------- BROKERS -- 1.6% Credit Suisse First Boston USA, Inc. 1.980% 01/04/2005 20,000,000 19,929,600 --------------
7 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- CASH RESERVES FUND (CONTINUED) SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST CANADIAN PROVINCES -- 1.2% Quebec Province 1.350% 01/11/2005 $15,000,000 $ 14,960,063 -------------- ELECTRIC UTILITIES -- 2.0% National Rural Utilities Cooperative Finance 1.820% 11/16/2004 25,000,000 24,981,042 -------------- FINANCIAL SERVICES -- 5.2% CIT Group, Inc. 1.880% 12/15/2004 30,000,000 29,931,067 Household Finance Corp. 1.900% 11/17/2004 20,000,000 19,983,111 International Lease Finance Corp. 1.800% 11/09/2004 15,000,000 14,994,000 -------------- 64,908,178 -------------- INDUSTRIAL - DIVERSIFIED -- 2.4% General Electric Capital Corp. 2.020% 02/07/2005 30,000,000 29,835,033 -------------- INDUSTRIAL EQUIPMENT -- 0.9% Caterpillar Financial Services Corp. 1.820% 11/08/2004 12,000,000 11,995,753 -------------- INSURANCE -- 2.0% Marsh & McLennan Co., Inc. 1.870% 12/09/2004 25,000,000 24,950,653 -------------- PHARMACEUTICALS -- 2.0% Bristol-Myers Squibb Co. 1.800% 11/08/2004 25,000,000 24,991,250 -------------- TOTAL COMMERCIAL PAPER $ 373,295,046 -------------- FIXED RATE CORPORATE OBLIGATION -- 1.2% TELEPHONE SYSTEMS -- 1.2% Vodafone Group PLC(1) 7.625% 02/15/2005 14,700,000 14,959,073 -------------- TOTAL FIXED RATE CORPORATE OBLIGATION $ 14,959,073 -------------- FIXED RATE U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.6% Federal Home Loan Bank 1.400% 03/08/2005 33,150,000 33,150,000 Federal Home Loan Bank 1.470% 02/04/2005 12,610,000 12,610,000 Federal Home Loan Bank 1.660% 04/21/2005 26,800,000 26,800,000 Federal Home Loan Mortgage Corporation 1.880% 12/21/2004 15,300,000 15,260,050 Federal National Mortgage Association 1.600% 12/29/2004 30,500,000 30,500,000 Federal National Mortgage Association 1.900% 12/22/2004 30,000,000 29,919,250 Federal National Mortgage Association 2.010% 02/01/2005 10,000,000 9,948,633 -------------- TOTAL FIXED RATE U.S. GOVERNMENT AGENCY OBLIGATIONS $ 158,187,933 -------------- VARIABLE RATE U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.7% U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.7% Federal Home Loan Mortgage Corporation(1) 1.500% 01/07/2005 33,150,000 33,150,000 Federal Home Loan Mortgage Corporation(1) 2.000% 02/14/2005 21,250,000 21,250,000
8 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- CASH RESERVES FUND (CONTINUED) SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED) Federal National Mortgage Association(1) 1.500% 02/14/2005 $33,150,000 $ 33,150,000 Federal National Mortgage Association(1) 1.770% 12/09/2004 21,250,000 21,246,346 -------------- TOTAL VARIABLE RATE U.S. GOVERNMENT AGENCY OBLIGATIONS $ 108,796,346 -------------- VARIABLE RATE NOTES -- 9.7% BANKING -- 3.9% Bank of Montreal/Chicago(1) 1.880% 11/29/2004 16,554,000 16,552,187 Banque Nationale de Paris/New York(1) 1.778% 12/09/2004 23,250,000 23,240,121 The Bank of New York Company, Inc.(1) 1.971% 11/29/2004 10,000,000 10,000,000 -------------- 49,792,308 -------------- BROKERS -- 3.4% Goldman Sachs Group, Inc.(1) 1.924% 11/16/2004 24,000,000 24,000,000 Merrill Lynch & Co.(1) 2.006% 11/11/2004 5,000,000 5,000,000 Morgan Stanley(1) 1.870% 11/15/2004 13,500,000 13,500,000 -------------- 42,500,000 -------------- FINANCIAL SERVICES -- 2.4% American Express Credit Corporation(1) 1.890% 11/05/2004 11,000,000 11,000,000 Tannehill Capital Co. LLC(1) 1.870% 04/20/2005 19,000,000 18,998,206 -------------- 29,998,206 -------------- TOTAL VARIABLE RATE NOTES $ 122,290,514 -------------- REPURCHASE AGREEMENT -- 5.7% UBS Painewebber Warburg Repurchase Agreement, collateralized by Federal Home Loan Banks with interest rates ranging from 1.964% to 2.433%, maturity dates ranging from 11/01/04 to 12/31/04 and an aggregate market value of $72,304,669. 1.850% 11/01/2004 70,885,000 70,885,000 -------------- TOTAL INVESTMENTS -- 100.0% (COST $1,255,588,503) $1,255,588,503 NET OTHER ASSETS -- 0.0% 406,931 -------------- NET ASSETS -- 100.0% $1,255,995,434 ============== TOTAL COST FOR INCOME TAX PURPOSES $1,255,588,503
NOTES TO SCHEDULE OF INVESTMENTS: (1) The maturity date shown for security is next interest rate reset date. The accompanying notes are an integral part of the financial statements. 9 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- U.S. GOVERNMENT MONEY MARKET FUND SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - --------------------------------------------------------------------------------
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST - ------------------------------------------------------------------------------------------ FIXED RATE U.S. GOVERNMENT AGENCY OBLIGATIONS -- 86.3% Federal Home Loan Bank 1.400% 04/01/2005 $ 4,700,000 $ 4,700,000 Federal Home Loan Bank 1.470% 03/01/2005 1,820,000 1,820,000 Federal Home Loan Bank 1.660% 05/16/2005 3,800,000 3,800,000 Federal Home Loan Bank 1.680% 11/05/2004 3,703,000 3,702,309 Federal Home Loan Bank 1.680% 11/10/2004 3,285,000 3,283,620 Federal Home Loan Mortgage Corporation 1.700% 11/02/2004 3,025,000 3,024,857 Federal Home Loan Mortgage Corporation 1.790% 11/16/2004 10,000,000 9,992,542 Federal Home Loan Mortgage Corporation 1.800% 12/14/2004 5,000,000 4,989,250 Federal Home Loan Mortgage Corporation 1.880% 12/15/2004 3,334,000 3,326,339 Federal Home Loan Mortgage Corporation 1.880% 12/21/2004 2,050,000 2,044,647 Federal Home Loan Mortgage Corporation 1.885% 12/14/2004 1,800,000 1,795,947 Federal Home Loan Mortgage Corporation 1.960% 01/04/2005 5,055,000 5,037,386 Federal Home Loan Mortgage Corporation 1.980% 01/24/2005 5,500,000 5,474,590 Federal Home Loan Mortgage Corporation 1.990% 01/18/2005 5,000,000 4,978,442 Federal Home Loan Mortgage Corporation 2.000% 01/18/2005 1,158,000 1,152,982 Federal Home Loan Mortgage Corporation 2.000% 02/15/2005 5,000,000 4,970,556 Federal Home Loan Mortgage Corporation 2.050% 01/25/2005 6,056,000 6,026,687 Federal National Mortgage Association 1.150% 11/12/2004 4,000,000 3,998,595 Federal National Mortgage Association 1.260% 11/12/2004 1,905,000 1,904,267 Federal National Mortgage Association 1.600% 12/29/2004 4,700,000 4,700,000 Federal National Mortgage Association 1.675% 11/17/2004 3,950,000 3,947,059 Federal National Mortgage Association 1.690% 11/03/2004 4,000,000 3,999,625 Federal National Mortgage Association 1.750% 11/05/2004 10,000,000 9,998,056 Federal National Mortgage Association 1.750% 11/24/2004 4,300,000 4,295,192 Federal National Mortgage Association 1.760% 11/01/2004 3,150,000 3,150,000 Federal National Mortgage Association 1.760% 11/08/2004 6,200,000 6,197,878 Federal National Mortgage Association 1.800% 12/01/2004 3,415,000 3,409,878 Federal National Mortgage Association 1.850% 12/08/2004 4,400,000 4,391,634 Federal National Mortgage Association 1.900% 12/22/2004 5,000,000 4,986,542 Federal National Mortgage Association 1.900% 02/04/2005 1,334,000 1,327,312 Federal National Mortgage Association 1.910% 12/22/2004 3,900,000 3,889,447 Federal National Mortgage Association 1.990% 01/12/2005 1,600,000 1,593,632 Federal National Mortgage Association 2.000% 01/24/2005 3,000,000 2,986,000 Federal National Mortgage Association 2.010% 01/26/2005 5,000,000 4,975,992 Federal National Mortgage Association 2.050% 01/24/2005 1,900,000 1,890,912 Federal National Mortgage Association 2.100% 04/29/2005 1,721,000 1,703,030 ------------ TOTAL FIXED RATE U.S. GOVERNMENT AGENCY OBLIGATIONS $143,465,205 ------------
10 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- U.S. GOVERNMENT MONEY MARKET FUND (CONTINUED) SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST VARIABLE RATE U.S. GOVERNMENT AGENCY OBLIGATIONS -- 11.3% Federal Farm Credit Bank(1) 1.823% 08/04/2004 $ 3,430,000 $ 3,427,515 Federal Home Loan Mortgage Corporation(1) 1.500% 01/07/2005 4,700,000 4,700,000 Federal Home Loan Mortgage Corporation(1) 2.000% 02/14/2005 3,000,000 3,000,000 Federal National Mortgage Association(1) 1.500% 02/14/2005 4,700,000 4,700,000 Federal National Mortgage Association(1) 1.770% 12/09/2004 3,000,000 2,999,484 ------------ TOTAL VARIABLE RATE U.S. GOVERNMENT AGENCY OBLIGATIONS $ 18,826,999 ------------ REPURCHASE AGREEMENT -- 2.5% UBS Painewebber Warburg Repurchase Agreement, collateralized by Federal Home Loan Bank with a yield to maturity of 2.433%, maturity date of 11/01/04 and an aggregate market value of $4,159,168.11. 1.850% 11/01/2004 4,076,000 4,076,000 ------------ TOTAL INVESTMENTS -- 100.1% (COST $166,368,204) $166,368,204 NET OTHER ASSETS -- (0.1%) (91,672) ------------ NET ASSETS -- 100.0% $166,276,532 ============ TOTAL COST FOR INCOME TAX PURPOSES $166,368,204 NOTES TO SCHEDULE OF INVESTMENTS:
(1) The maturity date shown for security is next interest rate reset date. The accompanying notes are an integral part of the financial statements. 11 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- TAX FREE MONEY MARKET FUND SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - --------------------------------------------------------------------------------
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST - ----------------------------------------------------------------------------------------- MUNICIPAL INTEREST BEARING COMMERCIAL PAPER -- 5.6% Indiana State Development Finance Authority 1.700% 02/03/2005 $1,000,000 $ 1,000,000 Municipal Electricity Authority of Georgia 1.710% 11/15/2004 1,500,000 1,500,000 Venango, PA, Industrial Development Authority 1.700% 12/10/2004 2,000,000 2,000,000 ----------- TOTAL MUNICIPAL INTEREST BEARING COMMERCIAL PAPER $ 4,500,000 ----------- FIXED RATE MUNICIPAL OBLIGATIONS -- 29.2% Amherst, MA, School Improvements 3.000% 07/08/2005 1,505,000 1,518,136 Arlington, TX, Independent School District 5.750% 02/15/2021 1,480,000 1,499,263 Augusta-Richmond County Coliseum Authority, GA 2.000% 02/01/2005 475,000 476,176 Bernalillo County, NM, Public Improvements 6.500% 08/01/2005 420,000 434,898 Chicago Board of Education, (Chicago School Reform) 5.750% 12/01/2004 1,000,000 1,003,736 Cook County, IL, Community Consolidated School District No. 54 4.375% 01/03/2005 2,000,000 2,009,938 Denton, TX, Public Improvements 5.400% 02/15/2005 250,000 252,966 Du Page County, IL, (Stormwater) Public Improvements 4.000% 01/03/2005 1,245,000 1,251,180 Fairbanks North Star Boro, AK, School Improvements 8.000% 11/01/2004 675,000 675,000 Grand County, CO, School District No. 2 East Grand 5.000% 12/01/2004 400,000 401,280 Griswold, CT, Refunding Bonds 5.000% 04/15/2005 605,000 613,839 Harford County, MD, Public Improvements 5.125% 03/01/2005 600,000 606,603 Hennepin County, MN, Public Improvements 2.500% 12/01/2004 500,000 500,547 Jackson County, MO, Consolidated School District No. 2 5.000% 03/01/2005 400,000 405,148 Jefferson County, CO, Public Improvements 5.000% 11/01/2004 500,000 500,000 Kershaw County, SC, School District 3.000% 07/15/2005 1,275,000 1,287,399 King & Snohomish Counties, WA, School District No. 417 5.250% 12/01/2004 1,000,000 1,003,282 Kitsap County, WA, School District No. 303 Bainbridge Island 2.000% 12/01/2004 415,000 415,320 Lexington, MA, School Improvements 2.850% 02/01/2005 1,350,000 1,355,357 Mendham Township, NJ 2.000% 12/17/2004 1,221,000 1,221,337 Milton, MA 3.000% 08/05/2005 1,000,000 1,009,428 Milwaukee, WI, Area Technical College District 4.875% 12/01/2004 1,000,000 1,003,144 Northwest Education Services District No. 189, WA 2.000% 12/01/2004 185,000 185,128 Otsego, MN, Sewer & Water Utility Improvements 4.500% 02/01/2005 355,000 357,993 Spokane County, WA, School District No. 356 Central Valley 2.000% 12/01/2004 230,000 230,172 Texas State Public Finance Authority 5.750% 02/01/2015 505,000 510,629
12 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- TAX FREE MONEY MARKET FUND (CONTINUED) SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST FIXED RATE MUNICIPAL OBLIGATIONS (CONTINUED) Utica, MI, Community Schools 2.000% 05/02/2005 $1,000,000 $ 1,001,326 Washington State 3.000% 01/03/2005 1,500,000 1,503,910 ----------- TOTAL FIXED RATE MUNICIPAL OBLIGATIONS $23,233,135 ----------- DAILY VARIABLE RATE MUNICIPAL OBLIGATIONS -- 9.1% Cuyahoga County, OH, (Multiple Obligors)(1) 1.740% 11/01/2004 1,625,000 1,625,000 Farmington, NM, Pollution Control, (Arizona Public Service Co.)(1) 1.740% 11/01/2004 700,000 700,000 Illinois Development Finance Authority, (YMCA of Metro Chicago)(1) 1.740% 11/01/2004 1,800,000 1,800,000 Long Island Power Authority, NY(1) 1.700% 11/01/2004 950,000 950,000 Long Island Power Authority, NY(1) 1.710% 11/01/2004 1,050,000 1,050,000 New York, NY, City Municipal Water Finance Authority(1) 1.700% 11/01/2004 400,000 400,000 New York, NY, City Transitional Finance Authority(1) 1.760% 11/01/2004 250,000 250,000 Sweetwater County, WY, (Pacificorp)(1) 1.780% 11/01/2004 450,000 450,000 ----------- TOTAL DAILY VARIABLE RATE MUNICIPAL OBLIGATIONS $ 7,225,000 ----------- WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS -- 55.7% Baltimore, MD, Industrial Development Authority, (Baltimore Capital Acquisition)(1) 1.770% 11/03/2004 1,500,000 1,500,000 California Economic Development Financing Authority, (KQED, Inc.)(1) 1.770% 11/03/2004 800,000 800,000 California State Department of Water Resources(1) 1.770% 11/04/2004 3,200,000 3,200,000 Collier County, FL, Industrial Development Authority, (Redlands Christian Migrant Association, Inc.)(1) 1.820% 11/04/2004 1,000,000 1,000,000 Decatur, AL, Industrial Development Board(1) 1.870% 11/04/2004 900,000 900,000 Delaware Valley, PA, Regional Financial Authority(1) 1.760% 11/03/2004 1,000,000 1,000,000 District of Columbia, (14th & Irving Ventures/Enterprise Zone 14th & Irving)(1) 1.820% 11/04/2004 1,020,000 1,020,000 Elmhurst, IL, (Joint Commission on Accredation of Healthcare Organizations)(1) 1.750% 11/04/2004 1,090,000 1,090,000 Emporia, VA, Industrial Development Authority, (Toll Virginia II, LP)(1) 1.820% 11/04/2004 950,000 950,000 Florida Housing Finance Agency(1) 1.720% 11/03/2004 1,000,000 1,000,000 Forsyth County, GA, Development Authority, (Selecto Scientific, Inc.)(1) 1.820% 11/04/2004 400,000 400,000 Gwinnett County, GA, Water & Sewer Authority(1) 1.780% 11/03/2004 1,500,000 1,500,000 Hampton, VA, Redevelopment & Housing Authority(1) 1.730% 11/03/2004 1,335,000 1,335,000
13 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- TAX FREE MONEY MARKET FUND (CONTINUED) SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS (CONTINUED) Harris County, TX, Health Facilities Development Authority, (Gulf Coast Regional Blood Center)(1) 1.800% 11/04/2004 $ 500,000 $ 500,000 Illinois Educational Facilities Authority, (Columbia College)(1) 1.760% 11/03/2004 1,500,000 1,500,000 Indiana Municipal Power Agency(1) 1.760% 11/03/2004 1,200,000 1,200,000 King County, WA, Sewer(1) 1.750% 11/03/2004 1,500,000 1,500,000 Lehigh County, PA, Industrial Development Authority, (Allegheny Electric Co-op, Inc.)(1) 1.780% 11/03/2004 110,000 110,000 Lenexa, KS, (DCI, Inc.)(1) 1.870% 11/04/2004 870,000 870,000 Mecklenburg County, NC, (Mecklenburg County School)(1) 1.770% 11/04/2004 2,200,000 2,200,000 Metropolitan Atlanta Rapid Transit Authority, GA(1) 1.720% 11/03/2004 1,000,000 1,000,000 Michigan State Strategic Fund, (Grayling Generating Station LP)(1) 1.790% 11/03/2004 859,000 859,000 New York State Local Government Assistance Corp.(1) 1.720% 11/03/2004 2,300,000 2,300,000 New York, NY(1) 1.750% 11/03/2004 1,000,000 1,000,000 New York, NY, City Transitional Finance Authority(1) 1.750% 11/03/2004 100,000 100,000 New York, NY, Public Improvements(1) 1.750% 11/03/2004 1,145,000 1,145,000 Northeastern Pennsylvania Hospital & Education Authority(1) 1.760% 11/04/2004 1,440,000 1,440,000 Pima County, AZ, Industrial Development Authority, (Tucson Power Co.)(1) 1.790% 11/03/2004 1,500,000 1,500,000 San Antonio, TX, Airport System, (Cessna Aircraft Co. (The))(1) 1.870% 11/04/2004 1,000,000 1,000,000 Seattle, WA, Municipal Light & Power(1) 1.690% 11/03/2004 1,400,000 1,400,000 Seattle, WA, Water System(1) 1.690% 11/03/2004 900,000 900,000 South Louisiana Port Commission, (Occidental Petroleum Corp.)(1) 1.780% 11/03/2004 1,325,000 1,325,000 St. Paul, MN, Housing & Redevelopment Authority, (District Energy of St. Paul)(1) 1.780% 11/03/2004 1,450,000 1,450,000 Valdosta-Lowndes County, GA, Industrial Development Authority, (Reames Cos.)(1) 1.820% 11/04/2004 600,000 600,000 Vancouver, WA, Housing Authority(1) 1.870% 11/04/2004 800,000 800,000 Washington State Public Power Supply System(1) 1.750% 11/03/2004 1,900,000 1,900,000 Westchester County, NY, Industrial Development Agency, (Levister Redevelopment Co. LLC)(1) 1.760% 11/04/2004 1,500,000 1,500,000
14 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- TAX FREE MONEY MARKET FUND (CONTINUED) SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS (CONTINUED) Winder-Barrow Industrial Building Authority, GA, Industrial Development, (Bankhead Highway Investments)(1) 1.820% 11/04/2004 $ 600,000 $ 600,000 ----------- TOTAL WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS $44,394,000 ----------- MONEY MARKET FUND -- 0.0% Merrill Lynch Institutional Tax Exempt Money Market(1) 10/13/2005 1,783 1,783 ----------- TOTAL INVESTMENTS -- 99.6% (COST $79,353,918) $79,353,918 NET OTHER ASSETS -- 0.4% 306,457 ----------- NET ASSETS -- 100.0% $79,660,375 =========== TOTAL COST FOR INCOME TAX PURPOSES $79,353,918 NOTES TO SCHEDULE OF INVESTMENTS:
(1) The maturity date shown for security is next interest rate reset date. The accompanying notes are an integral part of the financial statements. 15 BOSTON ADVISORS TRUST STATE TABLE - ------------------------------------------------------------------------- TAX FREE MONEY MARKET FUND SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - --------------------------------------------------------------------------------
STATE (AS A % OF MARKET VALUE OF INVESTMENTS) PERCENTAGE - --------------------------------------------------------- Washington................................ 12.4% New York.................................. 11.0% Illinois.................................. 10.9% Georgia................................... 7.7% Pennsylvania.............................. 5.7% California................................ 5.0% Massachusetts............................. 4.9% Texas..................................... 4.7% Minnesota................................. 2.9% Virginia.................................. 2.9% Indiana................................... 2.8% North Carolina............................ 2.8% Maryland.................................. 2.7% Florida................................... 2.5% Michigan.................................. 2.3% Ohio...................................... 2.0% Arizona................................... 1.9% Louisiana................................. 1.7% South Carolina............................ 1.6% New Jersey................................ 1.5% New Mexico................................ 1.4% District of Columbia...................... 1.3% Wisconsin................................. 1.3% Colorado.................................. 1.1% Alabama................................... 1.1% Kansas.................................... 1.1% Alaska.................................... 0.9% Connecticut............................... 0.8% Wyoming................................... 0.6% Missouri.................................. 0.5% National Tax Exempt Mutual Fund........... 0.0%
16 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- NEW YORK MUNICIPAL MONEY MARKET FUND SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - --------------------------------------------------------------------------------
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST - ----------------------------------------------------------------------------------------- MUNICIPAL INTEREST BEARING COMMERCIAL PAPER -- 13.8% Long Island Power Authority, NY 1.170% 12/08/2004 $2,000,000 $ 2,000,000 Metropolitan Transportation Authority, NY 1.130% 11/09/2004 4,000,000 4,000,000 Metropolitan Transportation Authority, NY 1.700% 02/10/2005 2,000,000 2,000,000 New York State 1.250% 12/26/2005 5,000,000 5,000,000 New York State Dormitory Authority, (Mount Sinai School of Medicine) 1.170% 11/09/2004 2,300,000 2,300,000 New York State Thruway Authority 1.680% 02/11/2005 3,500,000 3,500,000 New York, NY, City Municipal Water Finance Authority 1.250% 11/04/2004 2,000,000 2,000,000 ------------ TOTAL MUNICIPAL INTEREST BEARING COMMERCIAL PAPER $ 20,800,000 ------------ FIXED RATE MUNICIPAL OBLIGATIONS -- 20.1% Huntington, NY, Public Improvements 2.000% 11/19/2004 3,000,000 3,001,137 Islip, NY, Public Improvements 2.000% 11/24/2004 1,000,000 1,000,481 Ithaca City, NY 3.000% 08/05/2005 5,000,000 5,053,010 New York, NY, City Municipal Water Finance Authority 6.000% 06/15/2005 1,000,000 1,037,200 New York, NY, City Transitional Finance Authority 5.000% 11/01/2004 5,000,000 5,000,000 New York, NY, Refunding Bonds 6.500% 02/15/2005 1,890,000 1,915,310 New York, NY, Refunding Bonds 6.500% 02/15/2005 2,515,000 2,548,678 North Hempstead, NY 5.000% 05/16/2005 1,000,000 1,018,435 North Shore Central School District, NY 3.000% 06/23/2005 2,000,000 2,018,297 Nyack, NY, Union Free School District 2.000% 01/14/2005 1,500,000 1,501,944 Port Washington, NY, Union Free School District, (School Reconstruction) 2.000% 12/02/2004 2,000,000 2,001,439 Smithtown, NY, Central School District 3.000% 06/29/2005 2,000,000 2,018,834 Southampton, NY, Union Free School District 3.000% 06/23/2005 2,000,000 2,018,947 ------------ TOTAL FIXED RATE MUNICIPAL OBLIGATIONS $ 30,133,712 ------------ DAILY VARIABLE RATE MUNICIPAL OBLIGATIONS -- 6.0% Jay Street Development Corp., NY, (Jay Street)(1) 1.660% 11/01/2004 1,700,000 1,700,000 Nassau County, NY, Industrial Development Agency, (Cold Spring Harbor Lab)(1) 1.710% 11/01/2004 3,405,000 3,405,000 New York, NY, City Transitional Finance Authority(1) 1.760% 11/01/2004 150,000 150,000 New York, NY, Industrial Development Agency, (Lycee Francais de New York)(1) 1.700% 11/01/2004 1,800,000 1,800,000 Port Authority, NY/NJ, (Versatile Structure Obligation)(1) 1.740% 11/01/2004 2,000,000 2,000,000 ------------ TOTAL DAILY VARIABLE RATE MUNICIPAL OBLIGATIONS $ 9,055,000 ------------
17 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- NEW YORK MUNICIPAL MONEY MARKET FUND (CONTINUED) SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS -- 59.8% Franklin County, NY, Industrial Development Agency, (Trudeau Institute, Inc.)(1) 1.740% 11/03/2004 $1,870,000 $ 1,870,000 Long Island Power Authority, NY(1) 1.740% 11/03/2004 4,000,000 4,000,000 Metropolitan Transportation Authority, NY(1) 1.750% 11/04/2004 2,000,000 2,000,000 Nassau County, NY, Interim Finance Authority(1) 1.710% 11/03/2004 1,900,000 1,900,000 New York State Dormitory Authority, (Mental Health Services)(1) 1.750% 11/04/2004 1,500,000 1,500,000 New York State Energy Research & Development Authority, (Long Island Lighting Co.)(1) 1.780% 11/03/2004 5,000,000 5,000,000 New York State Housing Finance Agency(1) 1.750% 11/03/2004 5,000,000 5,000,000 New York State Housing Finance Agency(1) 1.750% 11/03/2004 1,500,000 1,500,000 New York State Housing Finance Agency, (14th Street Associates, LP)(1) 1.760% 11/03/2004 3,000,000 3,000,000 New York State Housing Finance Agency, (42/9 Residential LLC)(1) 1.780% 11/03/2004 2,600,000 2,600,000 New York State Housing Finance Agency, (Normandie CT)(1) 1.700% 11/03/2004 3,400,000 3,400,000 New York State Housing Finance Agency, (Tribeca)(1) 1.760% 11/03/2004 2,000,000 2,000,000 New York State Local Government Assistance Corp.(1) 1.720% 11/03/2004 3,500,000 3,500,000 New York State Local Government Assistance Corp.(1) 1.720% 11/03/2004 1,800,000 1,800,000 New York State Local Government Assistance Corp.(1) 1.730% 11/03/2004 1,870,000 1,870,000 New York, NY, City Housing Development Corp., (96th Street Associates, LP)(1) 1.740% 11/03/2004 2,000,000 2,000,000 New York, NY, City Housing Development Corp., (Multiple Obligors)(1) 1.770% 11/03/2004 2,000,000 2,000,000 New York, NY, City Industrial Development Agency, (Planned Parenthood)(1) 1.750% 11/04/2004 4,800,000 4,800,000 New York, NY, City Transitional Finance Authority(1) 1.750% 11/03/2004 3,130,000 3,130,000 New York, NY, Public Improvements(1) 1.730% 11/03/2004 2,000,000 2,000,000 New York, NY, Public Improvements(1) 1.740% 11/03/2004 2,500,000 2,500,000 New York, NY, Public Improvements(1) 1.750% 11/03/2004 1,500,000 1,500,000 Niagara Falls, NY, Bridge Commission(1) 1.730% 11/03/2004 5,900,000 5,900,000 Oneida County, NY, Industrial Development Agency(1) 1.700% 11/03/2004 4,630,000 4,630,000 Oneida Indian Nation(1) 1.780% 11/03/2004 7,500,000 7,500,000 Onondaga County, NY, Industrial Development Agency, (Solvay Paperboard LLC)(1) 1.870% 11/04/2004 4,700,000 4,700,000 Suffolk County, NY, Water Authority(1) 1.750% 11/03/2004 4,900,000 4,900,000 Triborough Bridge & Tunnel Authority(1) 1.740% 11/04/2004 1,300,000 1,300,000
18 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- NEW YORK MUNICIPAL MONEY MARKET FUND (CONTINUED) SCHEDULE OF INVESTMENTS - OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS (CONTINUED) Westchester County, NY, Industrial Development Agency, (Levister Redevelopment Co. LLC)(1) 1.760% 11/04/2004 $2,000,000 $ 2,000,000 ------------ TOTAL WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS $ 89,800,000 ------------ MONEY MARKET FUND -- 0.0% Blackrock Provident Institutional New York Money Market Fund 11/01/2004 171 171 ------------ TOTAL INVESTMENTS -- 99.7% (COST $149,788,883) $149,788,883 NET OTHER ASSETS -- 0.3% 466,829 ------------ NET ASSETS -- 100.0% $150,255,712 ============ TOTAL COST FOR INCOME TAX PURPOSES $149,788,883 NOTES TO SCHEDULE OF INVESTMENTS:
(1) The maturity date shown for security is next interest rate reset date. The accompanying notes are an integral part of the financial statements. 19 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- STATEMENTS OF ASSETS AND LIABILITIES AS OF OCTOBER 31, 2004 (UNAUDITED) - --------------------------------------------------------------------------------
BOSTON ADVISORS BOSTON ADVISORS BOSTON ADVISORS BOSTON ADVISORS CASH U.S. GOVERNMENT TAX FREE NEW YORK MUNICIPAL RESERVES FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND --------------- ----------------- ----------------- ------------------ ASSETS Investments in securities, at value (Cost $1,255,588,503, $166,368,204, $79,353,918 and $149,788,883, respectively) $1,255,588,503 $166,368,204 $79,353,918 $149,788,883 Cash 802 462 -- 7,422 Interest receivable 1,761,941 66,544 378,510 597,753 Prepaid expenses 64,143 21,881 18,055 5,130 -------------- ------------ ----------- ------------ TOTAL ASSETS 1,257,415,389 166,457,091 79,750,483 150,399,188 -------------- ------------ ----------- ------------ LIABILITIES Dividends payable 486,050 56,772 22,464 55,981 Due to bank -- -- 11,281 -- Payable to the Investment Advisor 423,715 44,612 12,409 10,162 Payable to affiliate for Trustees' fees 66 66 66 66 Payable to Distributor 254,560 34,703 15,910 32,772 Payable to Transfer Agent 121,026 15,673 2,881 10,027 Accrued expense and other payables 134,538 28,733 25,097 34,468 -------------- ------------ ----------- ------------ TOTAL LIABILITIES 1,419,955 180,559 90,108 143,476 -------------- ------------ ----------- ------------ NET ASSETS $1,255,995,434 $166,276,532 $79,660,375 $150,255,712 ============== ============ =========== ============ NET ASSETS CONSIST OF: Paid-in capital 1,255,995,434 166,256,269 79,660,375 150,255,712 Accumulated net investment income 314 20,263 -- -- Accumulated net realized loss on investment transactions (314) -- -- -- -------------- ------------ ----------- ------------ TOTAL NET ASSETS $1,255,995,434 $166,276,532 $79,660,375 $150,255,712 ============== ============ =========== ============ NET ASSETS Class 1 1,235,620,018 166,276,532 79,660,375 150,255,712 Class 2 20,375,416 -- -- -- -------------- ------------ ----------- ------------ TOTAL $1,255,995,434 $166,276,532 $79,660,375 $150,255,712 SHARES OUTSTANDING Class 1 1,235,620,018 166,276,532 79,660,375 150,255,712 Class 2 20,375,416 -- -- -- -------------- ------------ ----------- ------------ TOTAL 1,255,995,434 166,276,532 79,660,375 150,255,712 NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE Class 1 $1.00 $1.00 $1.00 $1.00 Class 2 1.00 -- -- --
See Notes to Financial Statements 20 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- STATEMENTS OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 2004 (UNAUDITED) - --------------------------------------------------------------------------------
BOSTON ADVISORS BOSTON ADVISORS BOSTON ADVISORS BOSTON ADVISORS CASH U.S. GOVERNMENT TAX FREE NEW YORK MUNICIPAL RESERVES FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND --------------- ----------------- ----------------- ------------------ INVESTMENT INCOME Interest $8,944,763 $1,241,524 $482,027 $ 961,211 EXPENSES Investment advisor fee 3,498,363 500,622 216,530 438,650 Distribution and service fees Class 1 1,561,035 227,556 98,423 199,386 Legal fees 23,010 23,010 23,010 28,240 Printing 58,196 8,263 3,679 6,358 Audit fees 12,467 12,467 12,467 12,467 Custodian and fund accounting expense 222,102 36,887 18,618 51,448 Transfer agency expense 713,298 90,286 17,076 58,539 Registration expense 4,637 4,743 6,983 439 Insurance expense 30,814 8,390 1,793 4,099 Trustees fees and expense 7,718 7,718 7,718 7,718 Miscellaneous 254 252 252 254 ---------- ---------- -------- --------- Total expenses 6,131,894 920,194 406,549 807,598 Reduction of investment advisor expense (873,519) (100,994) (52,227) (289,193) ---------- ---------- -------- --------- Net expenses 5,258,375 819,200 354,322 518,405 ---------- ---------- -------- --------- Net investment income 3,686,388 422,324 127,705 442,806 ---------- ---------- -------- --------- NET INCREASE IN NET ASSETS FROM OPERATIONS $3,686,388 $ 422,324 $127,705 $ 442,806 ========== ========== ======== =========
See Notes to Financial Statements 21 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
BOSTON ADVISORS BOSTON ADVISORS CASH U.S. GOVERNMENT RESERVES FUND MONEY MARKET FUND --------------------------------- -------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED OCTOBER 31, 2004 YEAR ENDED OCTOBER 31, 2004 YEAR ENDED (UNAUDITED) APRIL 30, 2004 (UNAUDITED) APRIL 30, 2004 ---------------- --------------- ---------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income $ 3,686,388 $ 4,528,148 $ 422,324 $ 446,369 --------------- --------------- ------------- ------------- Net increase in net assets resulting from operations 3,686,388 4,528,148 422,324 446,369 --------------- --------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income Class 1 (3,600,968) (4,378,990) (422,324) (446,369) Class 2 (85,420) (149,158) -- -- --------------- --------------- ------------- ------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS (3,686,388) (4,528,148) (422,324) (446,369) --------------- --------------- ------------- ------------- TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST (EACH A $1.00 PER SHARE) Proceeds from sale of shares Class 1 2,121,476,863 4,833,027,671 314,706,365 713,467,996 Class 2 29,922,713 47,662,853 -- -- Net Asset Value of shares issued to shareholders in payment of distributions declared Class 1 3,210,225 4,369,618 373,023 457,672 Class 2 80,295 150,286 -- -- Cost of shares redeemed Class 1 (2,146,187,805) (4,843,412,819) (329,296,993) (723,683,825) Class 2 (38,201,971) (46,269,166) -- -- --------------- --------------- ------------- ------------- NET DECREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS (29,699,680) (4,471,557) (14,217,605) (9,758,157) --------------- --------------- ------------- ------------- NET DECREASE IN NET ASSETS (29,699,680) (4,471,557) (14,217,605) (9,758,157) NET ASSETS At beginning of period 1,285,695,114 1,290,166,671 180,494,137 190,252,294 --------------- --------------- ------------- ------------- At end of period $ 1,255,995,434 $ 1,285,695,114 $ 166,276,532 $ 180,494,137 =============== =============== ============= ============= Accumulated undistributed net investment income included in net assets $ 314 $ 314 $ 20,263 $ 20,263 =============== =============== ============= =============
See Notes to Financial Statements 22 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) - --------------------------------------------------------------------------------
BOSTON ADVISORS BOSTON ADVISORS TAX FREE NEW YORK MUNICIPAL MONEY MARKET FUND MONEY MARKET FUND ------------------------------- ------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED OCTOBER 31, 2004 APRIL 30, OCTOBER 31, 2004 APRIL 30, (UNAUDITED) 2004 (UNAUDITED) 2004 ---------------- ------------- ---------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income $ 127,705 $ 121,018 $ 442,806 $ 460,358 ------------- ------------- ------------- ------------- Net increase in net assets resulting from operations 127,705 121,018 442,806 460,358 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income Class 1 (127,705) (121,018) (442,806) (460,358) ------------- ------------- ------------- ------------- TOTAL DISTRIBUTIONS TO SHAREHOLDERS (127,705) (121,018) (442,806) (460,358) ------------- ------------- ------------- ------------- TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST (EACH A $1.00 PER SHARE) Proceeds from sale of shares Class 1 112,295,114 237,899,013 303,786,248 514,722,265 Net Asset Value of shares issued to shareholders in payment of distributions declared Class 1 109,016 125,701 398,564 458,005 Cost of shares redeemed Class 1 (113,219,170) (237,808,912) (291,987,039) (508,146,781) ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS FROM FUND SHARE TRANSACTIONS (815,040) 215,802 12,197,773 7,033,489 ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS (815,040) 215,802 12,197,773 7,033,489 NET ASSETS At beginning of period 80,475,415 80,259,613 138,057,939 131,024,450 ------------- ------------- ------------- ------------- At end of period $ 79,660,375 $ 80,475,415 $ 150,255,712 $ 138,057,939 ============= ============= ============= ============= Accumulated undistributed net investment income included in net assets $ -- $ -- $ -- $ -- ============= ============= ============= =============
See Notes to Financial Statements 23 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - CLASS 1 - --------------------------------------------------------------------------------
BOSTON ADVISORS CASH RESERVES FUND ----------------------------------------------------------------------------------------------- FOR THE SIX FOR FOR FOR FOR MONTHS ENDED THE YEAR THE YEAR THE YEAR THE PERIOD OCTOBER 31, 2004 ENDED ENDED ENDED ENDED (UNAUDITED) APRIL 30, 2004 APRIL 30, 2003 APRIL 30, 2002 APRIL 30, 2001(1) ---------------- -------------- -------------- -------------- --------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ---------- ---------- ---------- ---------- ---------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income 0.003 0.003 0.008 0.022 0.050 ---------- ---------- ---------- ---------- ---------- Net increase from investment operations 0.003 0.003 0.008 0.022 0.050 ---------- ---------- ---------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (0.003) (0.003) (0.008) (0.022) (0.050) ---------- ---------- ---------- ---------- ---------- Total distributions (0.003) (0.003) (0.008) (0.022) (0.050) ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ========== ========== ========== ========== ========== TOTAL RETURN 0.29%(2) 0.35%(4) 0.81% 2.25% 5.07%(2) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $1,235,620 $1,257,121 $1,263,136 $1,346,260 $1,146,333 Ratio of net operating expenses to average net assets 0.83%(3) 0.83% 0.85% 0.90% 0.90%(3) Ratio of net investment income to average net assets 0.57%(3) 0.35% 0.81% 2.17% 5.42%(3) Ratio of expense to average net assets prior to waived fees and reimbursed expenses 0.97%(3) 0.97% 0.99% 0.99% 1.03%(3) Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses 0.43%(3) 0.21% 0.67% 2.08% 5.29%(3)
(1) For the period from commencement of offering of Class 1 shares, June 5, 2000 to April 30, 2001. (2) Not Annualized. (3) Annualized. (4) The effect of losses resulting from compliance violations and the subadviser reimbursement of such losses were less than 0.01%. See Notes to Financial Statements 24 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - CLASS 2 - --------------------------------------------------------------------------------
BOSTON ADVISORS CASH RESERVES FUND ----------------------------------------------------------------------------------------------- FOR THE SIX FOR FOR FOR FOR MONTHS ENDED THE YEAR THE YEAR THE YEAR THE PERIOD OCTOBER 31, 2004 ENDED ENDED ENDED ENDED (UNAUDITED) APRIL 30, 2004 APRIL 30, 2003 APRIL 30, 2002 APRIL 30, 2001(1) ---------------- -------------- -------------- -------------- --------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ------- ------- ------- ------- ------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income 0.004 0.005 0.010 0.025 0.020 ------- ------- ------- ------- ------- Net increase from investment operations 0.004 0.005 0.010 0.025 0.020 ------- ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (0.004) (0.005) (0.010) (0.025) (0.020) ------- ------- ------- ------- ------- Total distributions (0.004) (0.005) (0.010) (0.025) (0.020) ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ======= ======= ======= ======= ======= TOTAL RETURN 0.38%(2) 0.53%(4) 1.02% 2.50% 2.01%(2) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $20,375 $28,574 $27,030 $19,898 $19,003 Ratio of net operating expenses to average net assets 0.65%(3) 0.65% 0.65% 0.65% 0.66%(3) Ratio of net investment income to average net assets 0.72%(3) 0.53% 0.99% 2.44% 5.22%(3) Ratio of expense to average net assets prior to waived fees and reimbursed expenses 0.72%(3) 0.72% 0.75% 0.74% 0.83%(3) Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses 0.65%(3) 0.46% 0.89% 2.35% 5.05%(3)
(1) For the period from commencement of offering of Class 2 shares, December 13, 2000 to April 30, 2001. (2) Not Annualized. (3) Annualized. (4) The effect of losses resulting from compliance violations and the subadviser reimbursement of such losses were less than 0.01%. See Notes to Financial Statements 25 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - CLASS 1 - --------------------------------------------------------------------------------
BOSTON ADVISORS U.S. GOVERNMENT MONEY MARKET FUND ----------------------------------------------------------------------------------------------- FOR THE SIX FOR FOR FOR FOR MONTHS ENDED THE YEAR THE YEAR THE YEAR THE PERIOD OCTOBER 31, 2004 ENDED ENDED ENDED ENDED (UNAUDITED) APRIL 30, 2004 APRIL 30, 2003 APRIL 30, 2002 APRIL 30, 2001(1) ---------------- -------------- -------------- -------------- --------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 -------- -------- -------- -------- -------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income 0.002 0.002 0.007 0.022 0.049 -------- -------- -------- -------- -------- Net increase from investment operations 0.002 0.002 0.007 0.022 0.049 -------- -------- -------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (0.002) (0.002) (0.007) (0.022) (0.049) -------- -------- -------- -------- -------- Total distributions (0.002) (0.002) (0.007) (0.022) (0.049) -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ======== ======== ======== ======== ======== TOTAL RETURN 0.24% 0.23% 0.71% 2.20% 4.98%(2) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $166,277 $180,494 $190,252 $194,813 $112,373 Ratio of net operating expenses to average net assets 0.90%(3) 0.90% 0.90% 0.90% 0.90%(3) Ratio of net investment income to average net assets 0.46%(3) 0.23% 0.72% 2.10% 5.34%(3) Ratio of expense to average net assets prior to waived fees and reimbursed expenses 1.01%(3) 0.98% 0.98% 1.01% 1.07%(3) Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses 0.35%(3) 0.15% 0.64% 1.99% 5.17%(3)
(1) For the period from commencement of offering of Class 1 shares, June 5, 2000 to April 30, 2001. (2) Not Annualized. (3) Annualized. See Notes to Financial Statements 26 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - CLASS 1 - --------------------------------------------------------------------------------
BOSTON ADVISORS TAX FREE MONEY MARKET FUND ----------------------------------------------------------------------------------------------- FOR THE SIX FOR FOR FOR FOR MONTHS ENDED THE YEAR THE YEAR THE YEAR THE PERIOD OCTOBER 31, 2004 ENDED ENDED ENDED ENDED (UNAUDITED) APRIL 30, 2004 APRIL 30, 2003 APRIL 30, 2002 APRIL 30, 2001(1) ---------------- -------------- -------------- -------------- --------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ------- ------- ------- ------- ------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income 0.002 0.001 0.005 0.013 0.027 ------- ------- ------- ------- ------- Net increase from investment operations 0.002 0.001 0.005 0.013 0.027 ------- ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (0.002) (0.001) (0.005) (0.013) (0.027) ------- ------- ------- ------- ------- Total distributions (0.002) (0.001) (0.005) (0.013) (0.027) ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ======= ======= ======= ======= ======= TOTAL RETURN 0.16%(2) 0.15% 0.48% 1.30% 2.77%(2) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $79,660 $80,475 $80,260 $85,138 $73,525 Ratio of net operating expenses to average net assets 0.90%(3) 0.86% 0.90% 0.90% 0.90%(3) Ratio of net investment income to average net assets 0.32%(3) 0.15% 0.46% 1.24% 2.99%(3) Ratio of expense to average net assets prior to waived fees and reimbursed expenses 1.03%(3) 0.97% 0.98% 1.02% 1.09%(3) Ratio of net investment income to average net assets prior to waived fees and reimbursed expenses 0.19%(3) 0.04% 0.38% 1.12% 2.80%(3)
(1) For the period from commencement of offering of Class 1 shares, June 5, 2000 to April 30, 2001. (2) Not Annualized. (3) Annualized. See Notes to Financial Statements 27 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - CLASS 1 - --------------------------------------------------------------------------------
BOSTON ADVISORS NEW YORK MUNICIPAL MONEY MARKET FUND ----------------------------------------------------------- FOR THE SIX FOR FOR MONTHS ENDED THE YEAR THE PERIOD OCTOBER 31, 2004 ENDED ENDED (UNAUDITED) APRIL 30, 2004 APRIL 30, 2003(1) ---------------- -------------- --------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 -------- -------- -------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income 0.003 0.003 0.005 -------- -------- -------- Net increase from investment operations 0.003 0.003 0.005 -------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (0.003) (0.003) (0.005) -------- -------- -------- Total distributions (0.003) (0.003) (0.005) -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 ======== ======== ======== TOTAL RETURN 0.28%(2) 0.33% 0.53%(2) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $150,256 $138,058 $131,024 Ratio of net operating expenses to average net assets 0.65%(3) 0.65% 0.65%(3) Ratio of net investment income to average net assets 0.56%(3) 0.32% 0.60%(3) Ratio of expense to average net assets prior to waived fees and reimbursed expenses 1.01%(3) 1.01% 1.10%(3) Ratio of net investment income (loss) to average net assets prior to waived fees and reimbursed expenses 0.20%(3) (0.04)% 0.15%(3)
(1) For the period from commencement of offering of Class 1 shares, June 11, 2002 to April 30, 2003. (2) Not Annualized. (3) Annualized. See Notes to Financial Statements 28 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- 1 -- SIGNIFICANT ACCOUNTING POLICIES Boston Advisors Trust (the "Trust") is a diversified, open-end management investment company registered under the Investment Company Act of 1940, as amended. The Trust was established as a Massachusetts Business Trust on September 30, 1999. The Trust currently offers four Funds: Boston Advisors Cash Reserves Fund (the "Cash Reserves Fund"), Boston Advisors U.S. Government Money Market Fund (the "U.S. Government Money Market Fund"), Boston Advisors Tax Free Money Market Fund (the "Tax Free Money Market Fund"), and Boston Advisors New York Municipal Money Market Fund (the "New York Municipal Money Market Fund"), (each, a "Fund"). Each Fund's investment objective is to seek to preserve capital and maintain liquidity, consistent with seeking maximum current income. Additionally the Tax Free Money Market Fund seeks to generate income that is substantially exempt from federal income taxes and the New York Municipal Money Market Fund seeks to generate income that is substantially exempt from federal income tax and the personal income taxes imposed by New York State and New York municipalities. The Cash Reserves Fund issues two classes of shares (Class 1 and Class 2 shares). Class 1 shares of each Fund have a 12b-1 distribution fee. There are no other class specific expenses for either share class. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America. A. SECURITY VALUATION -- Each Fund values investment securities utilizing the amortized cost valuation method permitted by Rule 2a-7 of the Investment Company Act of 1940, pursuant to which each Fund must comply with certain conditions. This pricing method involves initially valuing a Fund security at its cost and thereafter assuming a constant amortization to maturity of any discount or premium. B. INCOME -- Interest income is determined on the basis of interest accrued, adjusted for amortization of premium or accretion of discount. C. EXPENSES -- The Trust accounts separately for the assets, liabilities and operations of each Fund. Direct expenses of each Fund are charged to that Fund while general expenses are allocated among the Trust's respective portfolios based on their respective net assets. The investment income and expenses of each Fund (other than class specific expenses) and realized gains and losses on investments of each Fund are allocated to each class of shares based upon their relative net asset value on the date income is earned or expenses and realized gains or losses are incurred. D. REPURCHASE AGREEMENTS -- Each Fund's custodian and other banks acting in a sub-custodian capacity take possession of the collateral pledged for investments in repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller's default of the obligation to repurchase, each Fund has a right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. E. USE OF ESTIMATES -- The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and 29 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. F. OTHER -- Investment transactions are accounted for on a trade-date basis. Gains and losses on securities are determined on the basis of identified cost. 2 -- TAXES AND DISTRIBUTIONS TO SHAREHOLDERS Each Fund's policy is to comply with the provisions of the Internal Revenue Code 3186, as amended (the "Code") applicable to regulated investment companies and to distribute to shareholders each year substantially all of its net investment income, including any net realized gain on investments. Accordingly, no provision for federal income or excise tax is necessary. The net investment income of each Fund is declared as a dividend daily, and paid monthly, to shareholders of record at the close of business on record date. Net realized gains on portfolio securities, if any, are distributed at least annually. Distributions are paid in the form of additional shares of the same Fund or, at the election of the shareholder, in cash. For U.S. Government Money Market Fund and Tax Free Money Market Fund, certain distributions may be paid from net interest earned and designated as tax exempt interest. Such distributions are not includable by shareholders as income subject to federal and/or state taxes, but may be subject to federal alternative minimum tax. Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations which may differ from accounting principles generally accepted in the United States of America. 3 -- INVESTMENT ADVISOR FEE Boston Advisors, Inc. (the "Advisor"), a wholly owned subsidiary of The Advest Group, Inc. ("Advest Group"), serves as the investment advisor to the Funds, providing management, investment advisory and other services. In exchange, the Funds have each agreed to pay the Advisor a monthly advisory fee at an annual rate of 0.55% of each Fund's average daily net assets. For each Fund, the Advisor has agreed to contractually waive its advisory fee and reimburse each Fund for its expenses through September 1, 2005, to the extent necessary that the total expenses of each Fund do not exceed the percentage of average daily net assets as follows: Cash Reserves Fund Class 1 0.90% Class 2 0.65% U.S. Government Money Market Fund 0.90% Tax Free Money Market Fund 0.90% New York Municipal Money Market Fund 0.65%
The Advisor reserves the right to reduce its fees from time to time on a voluntary basis. Such additional voluntary limitation may be discontinued at any time in the Advisor's discretion. Any such voluntary expense limitation will have the effect of increasing a Fund's return and yield. The Advisor also reserves the right to be reimbursed for management fees waived and fund expenses paid by it during the prior two years to the extent that a Fund's expense ratio falls below any expense limitations. 30 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- 4 -- DISTRIBUTION PLAN Advest, Inc. ("Advest"), a wholly owned subsidiary of the Advest Group, serves as the distributor to the Funds. The Funds have adopted a Rule 12b-1 distribution plan (the "Plan") authorizing each Fund's Class 1 shares to pay service fees equal to 0.25% of the Class 1 average daily net assets. Advest may pay up to the entire fee under the Plan to its own representatives or to other dealers providing services in connection with the sale of each Fund's shares. To the extent the fee is not paid to others, Advest may retain this fee as compensation for its services and expenses incurred in accordance with the Plan. For the period ended October 31, 2004, the distribution fees paid to Advest by the Cash Reserves Fund, the U.S. Government Money Market Fund, and the Tax Free Money Market Fund amounted to $1,561,035, $225,556, and $98,423, respectively. Advest retained the full amount of each Fund's payment. For the period ended October 31, 2004, the distribution fee for the New York Municipal Money Market Fund has been waived due to expense limitations. 5 -- TRANSFER AGENT FEE Advest Transfer Services, Inc. ("ATS"), a subsidiary of the Advest Group, serves as the Funds' shareholder servicing agent and transfer agent. ATS receives account fees and asset-based fees that vary according to account size and type of account. 6 -- ADMINISTRATION, CUSTODIAN, AND FUND ACCOUNTING FEE Investors Bank & Trust Company ("Investors Bank") serves as the Trust's administrator, custodian and fund accounting agent. As compensation for its services, Investors Bank receives out-of-pocket costs, transaction fees, and asset-based fees, which are accrued daily and paid monthly. Fees for such services paid to Investors Bank by the Funds are reflected as custodian and fund accounting expense in the statement of operations. 7 -- INVESTMENT SUB-ADVISORY FEE MONY Capital Management, Inc. (the "Subadviser") serves as the subadviser for the Cash Reserves Fund and the U.S. Government Money Market Fund. The Adviser and the Subadviser are both indirect wholly-owned subsidiaries of AXA, SA. AXA, SA is one of the largest diversified financial services companies in the world and is located in Paris, France. The subadvisory relationship with the Funds commenced on December 2, 2002. The Subadvisory Agreement provides that the Advisor will pay the Subadviser a fee equal to 0.03% of each Fund's average daily net assets. The Funds will not pay any fee directly to the Subadviser. 8 -- ADDITIONAL INFORMATION On May 20, 2004, the Trust held a joint special meeting of shareholders of the Funds ("Shareholder Meeting"). Shareholders of each Fund were asked to consider a proposal to approve a new investment advisory agreement between the Funds and Boston Advisors, Inc. ("Proposal 1"). For each of Cash Reserves Fund and U.S. Government Money Market Fund, shareholders were asked to consider a proposal to approve a new subadvisory agreement among the Cash Reserves Fund, U.S. Government Money Market Fund, Boston Advisors, Inc. and MONY Capital Management, Inc. ("Proposal 2"). For each Fund, shareholders were asked to elect five trustees to serve on the board of trustees until their successors have been duly elected and qualified ("Proposal 3"). 31 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- The results of the Shareholder Meeting were as follows: PROPOSAL 1 Cash Reserves Fund: For: 1,264,397,289.54 (equal to 97.74% of outstanding shares); Against: 8,768,532.01 (equal to 0.68% of outstanding shares); Abstain: 8,515,385.99 (equal to 0.66% of outstanding shares). U.S. Government Money Market Fund: For: 177,647,655.74 (equal to 96.93% of outstanding shares); Against: 978,618.94 (equal to 0.53% of outstanding shares); Abstain: 5,931,450.78 (equal to 3.24% of outstanding shares). Tax Free Money Market Fund: For: 80,268,177.15 (equal to 98.89% of outstanding shares); Against: 338,834.68 (equal to 0.42% of outstanding shares); Abstain: 338,508.22 (equal to 0.42% of outstanding shares). New York Municipal Money Market Fund: For: 137,398,029.24 (equal to 97.92% of outstanding shares); Against: 734,292.41 (equal to 0.52% of outstanding shares); Abstain: 1,973,828.49 (equal to 1.40% of outstanding shares). PROPOSAL 2 Cash Reserves Fund: For: 1,263,049,269.52 (equal to 97.62% of outstanding shares); Against: 10,264,608.28 (equal to 0.79% of outstanding shares); Abstain: 8,667,329.74 (equal to 0.67% of outstanding shares). U.S. Government Money Market Fund: For: 177,441,250.87 (equal to 96.82% of outstanding shares); Against: 1,162,890.67 (equal to 0.64% of outstanding shares); Abstain: 5,953,583.92 (equal to 3.25% of outstanding shares). PROPOSAL 3 The shareholders of the Funds have voted jointly for each nominee as follows: Mr. Anathan: 1,668,885,353.82 (equal to 98.87% of shares voted); Mr. Botwinick: 1,669,197,185.64 (equal to 98.89% of shares voted); Mr. Chang: 1,669,702,186.20 (equal to 98.92% of shares voted); Mr. Peach: 1,669,788,000.81 (equal to 98.93% of shares voted); Ms. Zuckerwise: 1,669,316,874.17 (equal to 98.90% of shares voted). 32 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- The votes withheld for each nominee are as follows: Mr. Anathan: 19,005,249.37 (equal to 1.13% of shares voted); Mr. Botwinick: 18,693,417.55 (equal to 1.11% of shares voted); Mr. Chang: 18,188,417.00 (equal to 1.08% of shares voted); Mr. Peach: 18,102,602.38 (equal to 1.07% of shares voted); Ms. Zuckerwise: 18,573,729.03 (equal to 1.10% of shares voted). A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1-800-523-5903; and on the Commission's website at (ii) http://www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) without charge, upon request, by calling 1-800-573-5903; and on the Commission's website at http://www.sec.gov. The Trust files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Trusts Form N-Q is available without charge, upon request by calling 1-800-523-5903; and on the Commission's website at http://www.sec.gov. The Trust's Form N-Q may be reviewed and copied at the Commission's Public Reference Room in Washington, D.C. and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 33 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- FUND EXPENSES OCTOBER 31, 2004 (UNAUDITED) - -------------------------------------------------------------------------------- The Funds incur ongoing operating expenses during the normal course of business, such as management fees, shareholder service fees, 12b-1 fees and other expenses. The following tables, assuming a $1,000 investment in a class of shares, disclose the ending account value and operating expenses incurred for the six months ended October 31, 2004, based on, (1) the classes' actual return and actual expenses, and (2) a hypothetical annualized 5% return and the classes' actual expenses:
CASH RESERVES FUND CLASS 1 - -------------------------------------------------------------------------- OPERATING BEGINNING ENDING EXPENSE VALUE VALUE INCURRED * --------- --------- ---------- 1) Actual $1,000.00 $1,002.90 $4.19 2) Hypothetical 1,000.00 1,021.52 4.23
* Expenses are calculated using the Class 1 annualized expense ratio for the six months ended October 31, 2004 of 0.83%, multiplied by the average account value over the period, multiplied by the number of days in the period, divided by the number of days in the year.
CASH RESERVES FUND CLASS 2 - -------------------------------------------------------------------------- OPERATING BEGINNING ENDING EXPENSE VALUE VALUE INCURRED * --------- --------- ---------- 1) Actual $1,000.00 $1,003.80 $3.28 2) Hypothetical 1,000.00 1,021.93 3.31
* Expenses are calculated using the Class 2 annualized expense ratio for the six months ended October 31, 2004 of 0.65%, multiplied by the average account value over the period, multiplied by the number of days in the period, divided by the number of days in the year.
U.S. GOVERNMENT MONEY MARKET FUND CLASS 1 - -------------------------------------------------------------------------- OPERATING BEGINNING ENDING EXPENSE VALUE VALUE INCURRED * --------- --------- ---------- 1) Actual $1,000.00 $1,002.40 $4.54 2) Hypothetical 1,000.00 1,020.67 4.58
* Expenses are calculated using the Class 1 annualized expense ratio for the six months ended October 31, 2004 of 0.90%, multiplied by the average account value over the period, multiplied by the number of days in the period, divided by the number of days in the year. 34 BOSTON ADVISORS TRUST - ------------------------------------------------------------------------- FUND EXPENSES (CONTINUED) OCTOBER 31, 2004 (UNAUDITED) - --------------------------------------------------------------------------------
TAX FREE MONEY MARKET FUND CLASS 1 - -------------------------------------------------------------------------- OPERATING BEGINNING ENDING EXPENSE VALUE VALUE INCURRED * --------- --------- ---------- 1) Actual $1,000.00 $1,001.60 $4.54 2) Hypothetical 1,000.00 1,020.67 4.58
* Expenses are calculated using the Class 1 annualized expense ratio for the six months ended October 31, 2004 of 0.90%, multiplied by the average account value over the period, multiplied by the number of days in the period, divided by the number of days in the year.
NEW YORK MUNICIPAL MONEY MARKET FUND CLASS 1 - -------------------------------------------------------------------------- OPERATING BEGINNING ENDING EXPENSE VALUE VALUE INCURRED * --------- --------- ---------- 1) Actual $1,000.00 $1,002.80 $3.28 2) Hypothetical 1,000.00 1,021.93 3.31
* Expenses are calculated using the Class 1 annualized expense ratio for the six months ended October 31, 2004 of 0.65%, multiplied by the average account value over the period, multiplied by the number of days in the period, divided by the number of days in the year. A shareholder can estimate expenses incurred for the six months ended October 31, 2004 on their investment in a particular class of shares by dividing their investment value at October 31, 2004 by $1,000 and then multiplying that result by the operating expenses of the class owned as calculated above. A shareholder can also use this information to compare ongoing expenses of investing in the Funds with those of other mutual funds. 35 ITEM 2 CODE OF ETHICS. Not applicable to this filing. ITEM 3 AUDIT COMMITTEE FINANCIAL EXPERT Not applicable to this filing. ITEM 4 PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5 AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6 SCHEDULE OF INVESTMENTS Not applicable to this filing. ITEM 7 DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 8 PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable to this filing. ITEM 9 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable to this filing. ITEM 10 CONTROLS AND PROCEDURES. (a) The Registrant's Principal Executive Officer and Principal Financial Officer concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) were effective as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"), based on their evaluation of the effectiveness of the Registrant's disclosure controls and procedures as of the Evaluation Date. (b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 11 EXHIBITS: a)(1) Code of ethics is not applicable to this filing. (a)(2) Certification of Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is attached hereto as Exhibit 99CERT. (b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 as required by Rule 30a-2(b), under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)), Rule 15d-14(b) under the Securities Exchange Act of 1934 (17 CFR 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) is attached hereto as Exhibit 99.906CERT. FORM N-CSR(3 OF 3) Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Boston Advisors Trust By: /s/ Michael J. Vogelzang ----------------------------------------------------------- Michael J. Vogelzang, Chief Executive Officer Date December 27, 2004 ------------------------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities, and on the dates indicated. By: /s/ Michael J. Vogelzang ----------------------------------------------------------- Michael J. Vogelzang, Chief Executive Officer Date December 27, 2004 ------------------------------ By: /s/ Ronald B. Maggiacomo ----------------------------------------------------------- Ronald B. Maggiacomo, Chief Financial Officer Date December 27, 2004 --------------------------------- EX-99.CERT 2 a2149251zex-99_cert.txt EXHIBIT 99.CERT Exhibit-99.CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002: I, Michael J. Vogelzang, certify that: 1. I have reviewed this report on Form N-CSR of Boston Advisors Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the Registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 27, 2004 ----------------------- /s/ Michael J. Vogelzang ----------------------------------------------- Michael J. Vogelzang, Chief Executive Officer CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002: I, Ronald B. Maggiacomo, certify that: 1. I have reviewed this report on Form N-CSR of Boston Advisors Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the Registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 27, 2004 ---------------------- /s/ Ronald B. Maggiacomo ----------------------------------------------- Ronald B. Maggiacomo, Chief Financial Officer EX-99.906CERT 3 a2149251zex-99_906cert.txt EXHIBIT 99-906CERT EX-99.906.CERT CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 Michael J. Vogelzang, Chief Executive Officer of Boston Advisors Trust (the "Registrant"), certifies to the best of his knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended October 31, 2004 (the "Form N-CSR") fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. /s/ Michael J. Vogelzang -------------------------------------------------------- Michael J. Vogelzang, Chief Executive Officer Date December 27, 2004 ------------------------ A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. This certification is being furnished to the Commission solely pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Commission. EX-99.906.CERT CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 Ronald B. Maggiacomo, Chief Financial Officer of Boston Advisors Trust (the "Registrant"), certifies to the best of her knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended October 31, 2004 (the "Form N-CSR") fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. /s/ Ronald B. Maggiacomo ----------------------------------------------------- Ronald B. Maggiacomo, Chief Financial Officer Date December 27, 2004 ------------------------ A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. This certification is being furnished to the Commission solely pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Commission. -----END PRIVACY-ENHANCED MESSAGE-----