NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
income for Federal income tax purposes because the Bond Funds intend to meet certain requirements of the
Internal Revenue Code applicable to regulated investment companies which will enable the Bond Funds to pay
exempt-interest dividends. At March 31, 2001, the following Funds, for federal income tax purposes, had capital
Such carryovers will reduce each Fund's taxable income arising from future net realized gain on investments, if
any, to the extent permitted by the Internal Revenue Code and thus will reduce the amount of distributions to
shareholders which would otherwise be necessary to relieve the Funds of any liability for federal income tax.
The Massachusetts Intermediate Tax Exempt Bond Fund and Intermediate Tax Exempt Bond Fund elected to
defer to their fiscal years ending September 30, 2001 losses of $291,243 and $671,657, respectively,
recognized during the period from November 1, 1999 to December 31, 1999.
E. DEFERRED ORGANIZATION EXPENSE
Costs incurred Small Cap Tax-Sensitive Equity Fund and Tax-Sensitive Equity Fund in connection with their
organization and initial registration were completely amortized, during the six months ended March 31, 2001.
F. DISTRIBUTIONS TO SHAREHOLDERS
Distributions on shares of the Bond Funds are declared daily from net investment income and distributed monthly.
Dividends from net investment income, if any, will be distributed at least annually for the Small Cap Tax-Sensitive
Equity Fund and the Tax-Sensitive Equity Fund. Distributions from capital gains, if any, will be distributed
annually by all of the Funds. Distributions from net investment income and capital gains, if any, are automatically
reinvested in additional shares of the applicable Fund unless the shareholder elects to receive them in cash.
Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with income tax regulations which may differ
from generally ac