Notes to Financial Statements
(1) Significant Accounting Policies:
Standish, Ayer & Wood Investment Trust (the "Trust") is organized as a Massachusetts business trust and is
registered under the Investment Company Act of 1940, as amended, as an open-end, management investment
company. Standish Fixed Income Fund (the "Fund") is a separate diversified investment series of the Trust.
On May 3, 1996, the Fund contributed substantially all of its investable assets to the Standish Fixed Income
Portfolio (the "Portfolio"), a subtrust of Standish, Ayer & Wood Master Portfolio (the "Portfolio Trust"), which is
organized as a New York trust, in exchange for an interest in the Portfolio. The Fund invests all of its investable
assets in the interests in the Portfolio, which has the same investment objective as the Fund. The value of the
Fund's investment in the Portfolio reflects the Fund's proportionate interest in the net assets of the Portfolio
(approximately 100% at December 31, 1996). The performance of the Fund is directly affected by the
performance of the Portfolio. The financial statements of the Portfolio are included elsewhere in this report and
should be read in conjunction with the Fund's financial statements. The following is a summary of significant
accounting policies followed by the Fund in the preparation of the 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-- The Fund records its investments in the Portfolio at value. Valuation of
securities held by the Portfolio is discussed in Note 1 of the Portfolio's Notes to Financial Statements, which are
included elsewhere in this report.
B...Securities transactions and income-- Securities transactions are recorded as of the trade date. Currently, the