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.
The Fund invests all of its investable assets in an interest of 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, and 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,
1997). 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. The method by which the Portfolio values its securities
is discussed in Note 1A 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 Fund's net investment income consists of
the Fund's pro rata share of the net investment income of the Portfolio, less all actual and accrued