NOTES TO FINANCIAL STATEMENTS
June 30, 2005
The Cutler Value Fund (the "Fund") is a diversified series of The Cutler Trust (the "Trust"). The Trust is a
Delaware statutory trust that is registered as an open-ended management investment company under the
Investment Company Act of 1940. The Fund is the only series of the Trust. Under its Trust Instrument, the Trust
is authorized to issue an unlimited number of Fund shares of beneficial interest without par value. The Fund
commenced operations on October 2, 1992.
On April 15, 2003, the Board of Trustees approved the reorganization of Cutler Core Fund (the "Core Fund")
with and into the Fund pursuant to an Agreement and Plan of Reorganization executed by the Trust on behalf of
each series. On April 17, 2003, the Core Fund exchanged its assets and liabilities for shares of the Fund.
Immediately prior to its reorganization with and into the Fund, the Core Fund's net assets were $20,681,496.
Each shareholder of the Core Fund received .9227 shares of the Fund. The acquisition of net assets and
unrealized gain/loss from this transaction was as follows:
Cutler Core Fund April 17, 2003 $20,681,496 2,744,243 $2,508,485
The Fund seeks current income and long-term capital appreciation.
2. SIGNIFICANT ACCOUNTING POLICIES
The following summarizes the significant accounting policies of the Fund:
SECURITIES VALUATION -- Exchange traded securities for which market quotations are readily available are
valued using the last reported sales price provided by independent pricing services as of the close of trading on
the New York Stock Exchange (normally 4:00 p.m. Eastern time), on each Fund business day. In the absence of
a sale, such securities are valued at the mean of the last bid and asked price. Non-exchange traded securities for
which over-the-counter quotations are available are generally valued at the mean between the closing bid and
asked prices. Money market instruments that mature in sixty days or less may be valued at amorti