NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2000 (UNAUDITED)
1. ORGANIZATION The Barrett Growth Fund (the "Fund") is a diversified series
of The Barrett Funds (the "Trust"), a business trust
organized on September 29, 1998 in the state of Delaware
that is registered under the Investment Company Act of 1940,
as amended (the "1940 Act"), as an open-end management
investment company. The Barrett Growth Fund is currently the
only series of the Trust. The Fund commenced operations on
December 29, 1998. Barrett Associates Inc., serves as the
investment adviser (the "Adviser") for the Fund and is
responsible for managing the Fund's portfolio of securities.
2. SIGNIFICANT a) Organization and Prepaid Initial Registration Expenses
ACCOUNTING Expenses incurred by the Trust in connection with the
POLICIES organization and the initial public offering of shares were
expensed as incurred. These expenses were advanced by the
Adviser, and the Adviser has agreed to voluntarily reimburse
the Fund for these expenses, subject to potential recovery
(see Note 3). Prepaid initial registration expenses are
deferred and amortized over the period of benefit.
b) Investment Valuation
Portfolio securities listed on a securities exchange or on
the NASDAQ National Market System for which market
quotations are readily available are valued at the last
quoted sale price of the day or, if there is no such
reported sale, within the range of the most recent quoted
bid and ask prices. The value of a foreign security is
determined as of