NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES:
Standish, Ayer & Wood Master Portfolio (the "Portfolio Trust") was organized as a master trust fund under the
laws of the state of New York on December 31, 1999 and is registered under the Investment Company Act of
1940, as amended, as an open-end, management investment company. Standish Fixed Income Portfolio (the
"Portfolio") is a separate diversified investment series of the Portfolio Trust.
At December 31, 1999, there was one fund, Standish Fixed Income Fund (the "Fund"), invested in the Portfolio.
The value of the Fund's investment in the Portfolio reflects the proportionate interest in the net assets of the
Portfolio. The Fund's proportionate interest at December 31, 1999 was approximately 100%.
The following is a summary of significant accounting policies followed by the Portfolio in the preparation of its
financial statements. The preparation of financial statements in accordance with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts and
disclosures in the financial statements. Actual results could differ from those estimates.
A. INVESTMENT SECURITY VALUATIONS
Securities for which quotations are readily available are valued at the last sale price, or if no sale price, at the
closing bid price in the principal market in which such securities are normally traded. Securities (including illiquid
securities) for which quotations are not readily available are valued at their fair value as determined in good faith
under consistently applied procedures under the general supervision of the Board of Trustees.
Short-term instruments with less than sixty-one days remaining to maturity when acquired by the Portfolio are
valued at amortized cost, which approximates market value. If the Portfolio acquires a short-term instrument with
more than sixty days remaining to its maturity, it is valued at current market value until the sixtieth day prior to