<Page>
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OMB APPROVAL
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OMB Number: 3235-0570
Expires: November 30, 2005
Estimated average burden
hours per response....... 5.0
-----------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09675
---------------------------------------------
Boston Advisors Trust
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
One Federal Street, Boston, MA 02110
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Michael J. Vogelzang, Chief Executive Officer
One Federal Street, Boston, MA 02110
- -------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-523-5903
----------------------------
Date of fiscal year end: 04/30/2004
--------------------------
Date of reporting period: 05/01/03 - 04/30/04
-------------------------
Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its
regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street,
NW, Washington, DC 20549-0609. The OMB has reviewed this collection of
information under the clearance requirements of 44 U.S.C. Section 3507.
<Page>
FORM N-CSR(2 OF 3)
ITEM 1 REPORT TO SHAREHOLDERS.
(Annual Report for the period 5/1/03 through 04/30/04 is filed herewith)
<Page>
APRIL 30, 2004
ANNUAL REPORT
MICHAEL J. VOGELZANG, CFA, PRESIDENT
TODD FINKELSTEIN, CFA, DIRECTOR OF FIXED INCOME
The Boston Advisors Funds continue to operate prudently and cautiously in a
world full of uncertainty. The war in Iraq and the ongoing threat of terror on
U.S. soil occupy our thoughts daily. Notwithstanding our apprehension, our
collective confidence continues to improve and the sustainability of U.S.
economic growth is no longer in question. In this Annual Report to shareholders
we review the domestic investing environment and discuss the nature and
characteristics of the portfolios within the Boston Advisors Trust.
ECONOMIC AND INVESTING ENVIRONMENTS:
Over the past six months there has been mounting evidence that economic strength
will be enduring. Macroeconomic indicators that gauge job growth, capacity
utilization, and confidence -- underpinnings of an economic expansion -- are
improving at an accelerating rate. Unemployment has dipped to a 5.6% rate from a
cycle high of 6.3%, while the U.S. is operating at 77% of its capacity, up 3
percentage points from the low. Corporate profits have escalated, up almost 32%
for the 12 months ending in March. The Federal Reserve Board recently
acknowledged these improvements and has begun to lay the groundwork for tighter
monetary policy and higher interest rates.
The May 4th Federal Open Market Committee (FOMC) statement noted that "the
upside and downside risks to the attainment of sustainable growth for the next
few quarters are roughly equal. Similarly, the risks to the goal of price
stability have moved into balance". This statement underscores the Fed's relief
over not slipping back into recession and deflation not gaining a foothold in
the U.S. We believe the Central Bank will now take it's foot off the accelerator
and gradually increase short-term interest rates.
Money fund investors have already begun to benefit from the Fed's rhetoric about
raising short-term interest rates. In anticipation of imminent tightening of
monetary policy, participants in the short-term markets have begun pushing
interest rates higher. Yields on money market funds have begun to rise as
maturing cash is reinvested at higher rates. If the Fed raises rates at the pace
the market expects, today's 1% target for overnight rates will have doubled by
year-end and will increase further through 2005.
It is always nice to write about good news. Today's solidly expanding economy
coupled with meaningful job growth buoys all our spirits. Higher investment
yields on your money market funds are expected to be part of the fallout as this
scenario unfolds.
PORTFOLIO REVIEWS
CASH RESERVES FUND
- - The Portfolio invests only in high-quality obligors as ranked by nationally
recognized statistical rating organizations. Continued emphasis on quality,
coupled with broad diversification among issuers and sectors enhances the
fund's stability and liquidity. As of April 30th, the portfolio consisted of
commercial paper (47%), certificates of deposit (10%), variable rate notes
(11%), repurchase agreements (6%), and U.S. government agency obligations
(26%).
U.S. GOVERNMENT FUND
- - The Portfolio invests exclusively in short-term U.S. government securities
including those guaranteed by its agencies or instrumentalities, and
repurchase agreements based upon these securities. As of April 30th
1
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the portfolio consisted of U.S. government agency obligations (87% -- of
which variable rates were 10%), and repurchase agreements that made up the
remaining investments (13%).
TAX FREE FUND
- - The Portfolio invests in high quality short-term municipal obligations as
ranked by nationally recognized statistical rating organizations. This high
quality, coupled with broad diversification among issuers and sectors, helps
provide stability and liquidity. As of April 30th the portfolio consisted of
daily and weekly floating rate issues (61%), notes and bonds (30%),
commercial paper (5%), and money market funds (4%).
NEW YORK MUNICIPAL FUND
- - The Portfolio invests only in high-quality short-term municipal securities
with income exempt from regular federal income tax and from New York State
and New York City personal income taxes. As of April 30th the portfolio
consisted of daily and weekly floating-rate issues (72%), notes and bonds
(10%), commercial paper (15%), and money market funds (3%).
2
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
CASH RESERVES FUND
SCHEDULE OF INVESTMENTS - APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST
- ------------------------------------------------------------------------------------------
ASSET-BACKED COMMERCIAL PAPER -- 10.2%
BANKING -- 10.2%
Edison Asset Securitization LLC 1.050% 07/07/2004 $30,000,000 $ 29,941,375
Golden Funding Corporation 1.060% 05/19/2004 20,897,000 20,885,925
Lockhart Funding LLC 1.200% 10/01/2004 30,000,000 29,847,000
Starbird Funding Corporation 1.050% 05/12/2004 25,000,000 24,991,979
Thunder Bay Funding, Inc. 1.040% 05/19/2004 25,000,000 24,987,000
--------------
TOTAL ASSET-BACKED COMMERCIAL PAPER 130,653,279
--------------
CERTIFICATES OF DEPOSIT -- 10.4%
BANKING -- 8.9%
Canadian Imperial Bank of Commerce 1.460% 11/17/2004 22,500,000 22,498,769
Societe Generale NY 1.075% 05/03/2004 35,000,000 35,000,000
Toronto Dominion Bank, Ltd. 1.100% 09/20/2004 26,000,000 26,000,000
Wilmington Trust Co. 1.070% 06/25/2004 31,000,000 31,000,471
--------------
114,499,240
--------------
BROKERS -- 1.5%
Credit Suisse First Boston NY 1.530% 11/22/2004 20,000,000 20,000,000
--------------
TOTAL CERTIFICATES OF DEPOSIT 134,499,240
--------------
COMMERCIAL PAPER -- 37.1%
AUTOMOTIVE -- 4.6%
American Honda Finance Corporation 1.020% 05/07/2004 24,500,000 24,495,835
Toyota Motor Credit Corporation 1.060% 07/12/2004 35,000,000 34,925,800
--------------
59,421,635
--------------
BANKING -- 14.0%
Abbey National North America 1.020% 05/07/2004 50,000,000 49,991,500
ABN Amro Holding NV 1.060% 07/06/2004 20,000,000 19,961,133
Bank of America Corp. 1.070% 05/05/2004 25,000,000 24,997,028
Dexia Delaware LLC 1.030% 05/18/2004 20,000,000 19,990,271
ING (US) Funding LLC 1.040% 05/05/2004 15,000,000 14,998,266
JP Morgan Chase & Co. 1.050% 07/12/2004 25,000,000 24,947,500
Royal Bank of Scotland 1.020% 05/12/2004 25,000,000 24,992,208
--------------
179,877,906
--------------
BROKERS -- 1.9%
Morgan Stanley 1.030% 05/18/2004 25,000,000 24,987,840
--------------
CANADIAN PROVINCES -- 1.2%
Quebec Province 1.350% 01/11/2005 15,000,000 14,856,562
--------------
</Table>
3
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
CASH RESERVES FUND (CONTINUED)
SCHEDULE OF INVESTMENTS - APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
- ------------------------------------------------------------------------------------------
<Caption>
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST
FINANCIAL SERVICES -- 5.4%
Household Finance Corporation 1.070% 05/20/2004 $19,395,000 $ 19,384,046
International Lease Finance Corporation 1.050% 07/08/2004 25,000,000 24,950,417
National Rural Utilities Cooperative
Finance Corporation 1.040% 05/25/2004 25,000,000 24,982,667
--------------
69,317,130
--------------
INDUSTRIAL - DIVERSIFIED -- 2.3%
General Electric Capital International
Funding 1.050% 06/18/2004 30,000,000 29,958,000
--------------
INDUSTRIAL EQUIPMENT -- 1.9%
Caterpillar Financial Services
Corporation 1.050% 05/19/2004 25,000,000 24,986,875
--------------
OIL & GAS -- 2.7%
Exxon Asset Management Co. 1.020% 05/05/2004 35,000,000 34,996,033
--------------
TELEPHONE SYSTEMS -- 3.1%
SBC International, Inc. 1.040% 05/12/2004 10,000,000 9,996,822
Verizon Network Funding 1.020% 05/11/2004 29,229,000 29,220,718
--------------
39,217,540
--------------
TOTAL COMMERCIAL PAPER 477,619,521
--------------
FIXED RATE U.S. GOVERNMENT AGENCY OBLIGATIONS -- 16.9%
Federal Home Loan Bank 1.400% 04/01/2005 33,150,000 33,149,589
Federal Home Loan Bank 1.470% 03/01/2005 12,610,000 12,610,000
Federal Home Loan Bank 1.660% 05/16/2005 26,800,000 26,800,000
Federal Home Loan Mortgage Corporation 1.100% 10/05/2004 25,000,000 24,880,069
Federal Home Loan Mortgage Corporation 1.120% 10/12/2004 25,000,000 24,872,444
Federal Home Loan Mortgage Corporation 1.170% 08/20/2004 8,000,000 8,000,482
Federal National Mortgage Association 1.075% 09/01/2004 25,000,000 24,908,182
Federal National Mortgage Association 1.600% 12/29/2004 30,500,000 30,500,000
Federal National Mortgage Association 6.500% 08/15/2004 30,700,000 31,168,724
--------------
TOTAL FIXED RATE U.S. GOVERNMENT AGENCY OBLIGATIONS 216,889,490
--------------
VARIABLE RATE U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.5%
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.5%
Federal Home Loan Mortgage
Corporation(1) 1.100% 07/07/2004 21,250,000 21,250,000
Federal Home Loan Mortgage
Corporation(1) 1.219% 07/21/2004 33,150,000 33,150,000
Federal National Mortgage Association(1) 1.030% 06/09/2004 21,250,000 21,243,290
Federal National Mortgage Association(1) 1.219% 07/21/2004 33,150,000 33,150,000
--------------
TOTAL VARIABLE RATE U.S. GOVERNMENT AGENCY OBLIGATIONS 108,793,290
--------------
</Table>
4
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
CASH RESERVES FUND (CONTINUED)
SCHEDULE OF INVESTMENTS - APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
- ------------------------------------------------------------------------------------------
<Caption>
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST
VARIABLE RATE NOTES -- 10.9%
BANKING -- 2.2%
The Bank of New York Company, Inc.(1) 1.090% 05/27/2004 $10,000,000 $ 10,000,000
Wells Fargo & Co.(1) 1.225% 05/10/2004 18,725,000 18,725,827
--------------
28,725,827
--------------
BROKERS -- 2.3%
Goldman Sachs Group, Inc.(1) 1.160% 05/03/2004 25,000,000 25,000,000
Merrill Lynch & Co.(1) 1.225% 05/11/2004 5,000,000 5,000,000
--------------
30,000,000
--------------
FINANCIAL SERVICES -- 4.2%
American Express Credit Corporation(1) 1.070% 05/13/2004 19,000,000 19,000,000
American Express Credit Corporation(1) 1.140% 05/05/2004 11,000,000 11,000,000
Tannehill Capital Co. LLC(1) 1.060% 05/24/2004 23,825,000 23,823,861
--------------
53,823,861
--------------
TELEPHONE SYSTEMS -- 2.2%
SBC Communications, Inc. 4.180% 06/05/2004 12,500,000 12,534,916
Vodafone Group PLC 7.625% 02/15/2005 14,700,000 15,408,784
--------------
27,943,700
--------------
TOTAL VARIABLE RATE NOTES 140,493,388
--------------
REPURCHASE AGREEMENT -- 5.9%
UBS PaineWebber Warburg Repurchase
Agreement, collateralized by Federal
Home Loan Banks and Fannie Mae Discount
Notes, with interest rates ranging from
0.000% to 1.500%, maturity dates ranging
from 3/01/05 to 11/15/29 and an
aggregate market value of $77,171,298. 1.030% 05/03/2004 75,657,000 75,657,000
--------------
TOTAL INVESTMENTS -- 99.9% (COST $1,284,605,208) 1,284,605,208
NET OTHER ASSETS -- 0.1% 1,089,906
--------------
NET ASSETS -- 100.0% $1,285,695,114
==============
TOTAL COST FOR INCOME TAX PURPOSES $1,284,645,538
</Table>
NOTES TO SCHEDULE OF INVESTMENTS:
(1) The maturity date shown for security is next interest rate reset date.
The accompanying notes are an integral part of the financial statements.
5
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS - APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST
- ------------------------------------------------------------------------------------------
FIXED RATE U.S. GOVERNMENT AGENCY OBLIGATIONS -- 77.9%
Federal Home Loan Bank 1.000% 06/02/2004 $ 3,600,000 $ 3,596,800
Federal Home Loan Bank 1.180% 10/08/2004 5,026,000 4,999,641
Federal Home Loan Bank 1.400% 04/01/2005 4,700,000 4,699,942
Federal Home Loan Bank 1.470% 03/01/2005 1,820,000 1,820,000
Federal Home Loan Bank 1.660% 05/16/2005 3,800,000 3,800,000
Federal Home Loan Mortgage Corporation 0.990% 05/18/2004 4,673,000 4,670,815
Federal Home Loan Mortgage Corporation 1.000% 06/01/2004 6,500,000 6,494,403
Federal Home Loan Mortgage Corporation 1.010% 05/11/2004 3,100,000 3,099,130
Federal Home Loan Mortgage Corporation 1.010% 06/15/2004 4,700,000 4,694,066
Federal Home Loan Mortgage Corporation 1.015% 05/20/2004 11,212,000 11,205,994
Federal Home Loan Mortgage Corporation 1.020% 06/08/2004 2,649,000 2,646,148
Federal Home Loan Mortgage Corporation 1.050% 07/21/2004 3,965,000 3,955,633
Federal Home Loan Mortgage Corporation 1.100% 10/05/2004 8,716,000 8,674,187
Federal Home Loan Mortgage Corporation 1.170% 08/20/2004 4,000,000 4,000,241
Federal Home Loan Mortgage Corporation 5.000% 05/15/2004 5,000,000 5,007,158
Federal National Mortgage Association 0.980% 05/07/2004 3,800,000 3,799,379
Federal National Mortgage Association 0.985% 05/05/2004 6,700,000 6,699,267
Federal National Mortgage Association 0.985% 05/12/2004 3,156,000 3,155,050
Federal National Mortgage Association 1.000% 05/19/2004 7,100,000 7,096,450
Federal National Mortgage Association 1.010% 05/26/2004 2,980,000 2,977,910
Federal National Mortgage Association 1.020% 06/02/2004 10,000,000 9,990,933
Federal National Mortgage Association 1.025% 06/23/2004 3,700,000 3,694,417
Federal National Mortgage Association 1.035% 05/12/2004 7,500,000 7,497,629
Federal National Mortgage Association 1.075% 08/11/2004 4,000,000 3,987,817
Federal National Mortgage Association 1.075% 09/01/2004 5,000,000 4,981,636
Federal National Mortgage Association 1.150% 11/12/2004 4,000,000 3,975,083
Federal National Mortgage Association 1.600% 12/29/2004 4,700,000 4,700,000
Federal National Mortgage Association 6.500% 08/15/2004 4,654,000 4,725,055
------------
TOTAL FIXED RATE U.S. GOVERNMENT AGENCY OBLIGATIONS 140,644,784
------------
VARIABLE RATE U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.6%
Federal Home Loan Mortgage
Corporation(1) 1.100% 07/07/2004 3,000,000 3,000,000
Federal Home Loan Mortgage
Corporation(1) 1.219% 07/21/2004 4,700,000 4,700,000
Federal National Mortgage Association(1) 1.030% 06/09/2004 3,000,000 2,999,053
Federal National Mortgage Association(1) 1.219% 07/21/2004 4,700,000 4,700,000
------------
TOTAL VARIABLE RATE U.S. GOVERNMENT AGENCY OBLIGATIONS 15,399,053
------------
</Table>
6
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND (CONTINUED)
SCHEDULE OF INVESTMENTS - APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
- ------------------------------------------------------------------------------------------
<Caption>
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST
REPURCHASE AGREEMENT -- 13.5%
UBS Painewebber Warburg Repurchase
Agreement, collateralized by Federal
Home Loan Banks with interest rates
ranging from 1.500% to 2.150%, maturity
dates ranging from 3/1/05 to 9/16/05 and
an aggregate market value of
$24,849,330. 1.030% 05/03/2004 $24,362,000 $ 24,362,000
------------
TOTAL INVESTMENTS -- 100.0% (COST $180,405,837) 180,405,837
NET OTHER ASSETS -- 0.0% 88,300
------------
NET ASSETS -- 100.0% $180,494,137
============
TOTAL COST FOR INCOME TAX PURPOSES $180,405,837
</Table>
NOTES TO SCHEDULE OF INVESTMENTS:
(1) The maturity date shown for security is next interest rate reset date.
The accompanying notes are an integral part of the financial statements.
7
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
TAX FREE MONEY MARKET FUND
SCHEDULE OF INVESTMENTS - APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST
- -----------------------------------------------------------------------------------------
MUNICIPAL INTEREST BEARING COMMERCIAL PAPER -- 5.6%
Indiana State Development Finance
Authority 1.000% 08/10/2004 $1,000,000 $ 1,000,000
Municipal Electricity Authority of
Georgia 0.950% 05/07/2004 1,500,000 1,500,000
Venango, PA, Industrial Development
Authority 1.110% 06/09/2004 2,000,000 2,000,000
-----------
TOTAL MUNICIPAL INTEREST BEARING COMMERCIAL PAPER 4,500,000
-----------
FIXED RATE MUNICIPAL OBLIGATIONS -- 30.2%
Ames, IA, (Mary Greeley Medical Center) 3.000% 06/15/2004 1,000,000 1,002,257
Arlington, TX, Independent School
District 5.750% 02/15/2021 1,480,000 1,532,700
Augusta-Richmond County Coliseum
Authority, GA 2.000% 08/01/2004 445,000 446,102
Augusta-Richmond County Coliseum
Authority, GA 2.000% 02/01/2005 475,000 478,531
Bexar County, TX Refunding Bonds 4.500% 06/15/2004 1,000,000 1,004,172
Brookline, MA Public Improvements BANs 2.000% 05/13/2004 1,000,000 1,000,325
Brownsburg, IN, 1999 School Building
Corp. 3.000% 08/01/2004 230,000 231,091
Chicago Board of Education, (Chicago
School Reform) 5.750% 12/01/2004 1,000,000 1,026,400
Delaware Transportation Authority 5.500% 07/01/2004 1,000,000 1,007,431
Denton, TX Recreational Facilities
Improvements 5.400% 02/15/2005 250,000 258,115
Deschutes & Jefferson Counties, OR,
School District No. 2J 5.500% 06/01/2004 1,160,000 1,164,386
Douglas County, WA, Sewer District No. 1 2.500% 08/01/2004 345,000 346,209
Downtown Savannah Authority, (Capital
Improvements) 2.000% 08/01/2004 430,000 430,942
Du Page County, IL, (Stormwater) Public
Improvements 4.000% 01/01/2005 1,245,000 1,269,741
Fairbanks North Star Boro, AK School
Improvements 8.000% 11/01/2004 675,000 697,996
Fairfax County, VA Public Improvement 4.500% 06/01/2004 500,000 501,504
Grand County, CO, School District No. 2
East Grand 5.000% 12/01/2004 400,000 409,130
Hennepin County, MN Public Improvements 2.500% 12/01/2004 500,000 503,907
Hopkinton, MA Public Improvements 1.500% 07/08/2004 1,115,102 1,116,231
Jackson County, MO, Consolidated School
District No. 2 5.000% 03/01/2005 400,000 413,044
Kitsap County, WA, School District No.
303 Bainbridge Island 2.000% 12/01/2004 415,000 417,287
Louisiana State Refunding Bonds 5.300% 08/01/2004 2,000,000 2,020,866
Maine State Turnpike Authority 6.000% 07/01/2011 1,085,000 1,115,742
Maricopa County High School District No
210-Phoenix 7.100% 07/01/2004 250,000 252,420
Milwaukee, WI, Area Technical College
District 4.875% 12/01/2004 1,000,000 1,022,437
New Mexico State Highway Commission 5.000% 06/15/2004 300,000 301,479
New York State Dormitory Authority,
(Fordham University) 2.000% 07/01/2004 250,000 250,357
Northwest Education Services District
No. 189, WA 2.000% 12/01/2004 185,000 185,913
Otsego, MN Sewer & Water Utility
Improvements 4.500% 02/01/2005 355,000 363,985
</Table>
8
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
TAX FREE MONEY MARKET FUND (CONTINUED)
SCHEDULE OF INVESTMENTS - APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
- -----------------------------------------------------------------------------------------
<Caption>
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST
FIXED RATE MUNICIPAL OBLIGATIONS (CONTINUED)
Pierce County, WA, School District No.
10 4.000% 06/01/2004 $1,000,000 $ 1,002,496
Portland, ME Sewer Improvements 4.000% 09/01/2004 425,000 429,013
Santa Fe, NM, Gross Receipts Tax 6.500% 06/01/2004 1,280,000 1,285,929
Snohomish County, WA, School District
No. 002 Everett 2.000% 06/01/2004 255,000 255,202
Spokane County, WA, School District No.
356 Central Valley 2.000% 06/01/2004 360,000 360,285
Spokane County, WA, School District No.
356 Central Valley 2.000% 12/01/2004 230,000 231,224
-----------
TOTAL FIXED RATE MUNICIPAL OBLIGATIONS 24,334,849
-----------
DAILY VARIABLE RATE MUNICIPAL OBLIGATIONS -- 10.6%
Cuyahoga County, OH Health Facilities
Development(1) 1.100% 05/03/2004 1,000,000 1,000,000
Illinois Health Facilities Authority,
(Northwestern Memorial Hospital)(1) 1.100% 05/03/2004 1,100,000 1,100,000
Long Island Power Authority, NY(1) 1.080% 05/03/2004 300,000 300,000
Missouri State Health & Educational
Facilities Authority, (St. Francis
Medical Center)(1) 1.100% 05/03/2004 1,445,000 1,445,000
New York, NY, City Municipal Water
Finance Authority(1) 1.090% 05/03/2004 2,500,000 2,500,000
New York, NY, City Transitional Finance
Authority(1) 1.080% 05/03/2004 1,200,000 1,200,000
Turlock, CA, Irrigation District(1) 1.070% 05/03/2004 1,000,000 1,000,000
-----------
TOTAL DAILY VARIABLE RATE MUNICIPAL OBLIGATIONS 8,545,000
-----------
WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS -- 50.8%
Baltimore, MD, Industrial Development
Authority, (Baltimore Capital
Acquisition)(1) 1.090% 05/05/2004 1,500,000 1,500,000
California Economic Development
Financing Authority, (KQED, Inc.)(1) 1.070% 05/05/2004 800,000 800,000
Collier County, FL, Industrial
Development Authority, (Redlands
Christian Migrant Association, Inc.)(1) 1.150% 05/06/2004 1,000,000 1,000,000
Delaware Valley, PA, Regional Financial
Authority(1) 1.100% 05/05/2004 1,000,000 1,000,000
Durham, NC Public Improvements(1) 1.110% 05/06/2004 1,000,000 1,000,000
Elmhurst, IL, (Joint Commission on
Accredation of Healthcare
Organizations)(1) 1.080% 05/06/2004 1,130,000 1,130,000
Emporia, VA, Industrial Development
Authority, (Toll Virginia II, LP)(1) 1.200% 05/06/2004 950,000 950,000
Florida Housing Finance Agency(1) 1.030% 05/05/2004 1,000,000 1,000,000
Forsyth County, GA, Development
Authority, (Selecto Scientific, Inc.)(1) 1.200% 05/06/2004 400,000 400,000
Hampton, VA, Redevelopment & Housing
Authority(1) 1.050% 05/05/2004 1,335,000 1,335,000
</Table>
9
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BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
TAX FREE MONEY MARKET FUND (CONTINUED)
SCHEDULE OF INVESTMENTS - APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
- -----------------------------------------------------------------------------------------
<Caption>
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST
WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS (CONTINUED)
Harris County, TX, Health Facilities
Development Authority, (Gulf Coast
Regional Blood Center)(1) 1.130% 05/06/2004 $ 500,000 $ 500,000
Honolulu, HI, City & County Public
Improvements(1) 1.120% 05/05/2004 2,000,000 2,000,000
Illinois Educational Facilities
Authority, (Columbia College)(1) 1.100% 05/05/2004 1,500,000 1,500,000
Indiana Municipal Power Agency(1) 1.100% 05/05/2004 1,200,000 1,200,000
King County, WA, Sewer(1) 1.090% 05/05/2004 1,500,000 1,500,000
Lehigh County, PA, Industrial
Development Authority, (Allegheny
Electric Co-op, Inc.)(1) 1.110% 05/05/2004 110,000 110,000
Lincoln Parish, LA, Exempt Facilities,
(Willamette Industries, Inc.)(1) 1.120% 05/05/2004 2,500,000 2,500,000
Maricopa County, AZ, Industrial
Development Authority, (San Martin
Apartments, LP)(1) 1.110% 05/06/2004 950,000 950,000
Metropolitan Atlanta Rapid Transit
Authority, GA(1) 1.050% 05/05/2004 1,000,000 1,000,000
Michigan State Strategic Fund, (Grayling
Generating Station LP)(1) 1.110% 05/05/2004 860,000 860,000
New Hampshire State Business Finance
Authority(1) 1.150% 05/06/2004 1,500,000 1,500,000
New York State Local Government
Assistance Corp.(1) 1.060% 05/05/2004 2,300,000 2,300,000
Northeastern Pennsylvania Hospital &
Education Authority(1) 1.080% 05/06/2004 1,450,000 1,450,000
Pima County, AZ, Industrial Development
Authority, (Tucson Power Co.)(1) 1.100% 05/05/2004 1,500,000 1,500,000
San Antonio, TX, Airport System, (Cessna
Aircraft Co. (The))(1) 1.250% 05/06/2004 1,000,000 1,000,000
Seattle, WA, Municipal Light & Power(1) 1.040% 05/05/2004 1,400,000 1,400,000
Seattle, WA, Water System(1) 0.980% 05/05/2004 900,000 900,000
South Louisiana Port Commission,
(Occidental Petroleum Corp.)(1) 1.100% 05/05/2004 1,325,000 1,325,000
St. Paul, MN, Housing & Redevelopment
Authority, (District Energy of St.
Paul)(1) 1.090% 05/05/2004 1,450,000 1,450,000
Valdosta-Lowndes County, GA, Industrial
Development Authority, (Reames Cos.)(1) 1.200% 05/06/2004 700,000 700,000
Vancouver, WA, Housing Authority(1) 1.250% 05/06/2004 1,000,000 1,000,000
Washington State Public Power Supply
System(1) 1.090% 05/05/2004 2,000,000 2,000,000
Westchester County, NY, Industrial
Development Agency, (Levister
Redevelopment Co. LLC)(1) 1.080% 05/06/2004 1,500,000 1,500,000
</Table>
10
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
TAX FREE MONEY MARKET FUND (CONTINUED)
SCHEDULE OF INVESTMENTS - APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
- -----------------------------------------------------------------------------------------
<Caption>
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST
WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS (CONTINUED)
Winder-Barrow Industrial Building
Authority, GA, Industrial Development,
(Bankhead Highway Investments)(1) 1.200% 05/06/2004 $ 600,000 $ 600,000
-----------
TOTAL WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS 40,860,000
-----------
MONEY MARKET FUND -- 4.0%
Merrill Lynch Institutional Tax Exempt
Money Market 0.890% 3,205,199 3,205,199
-----------
TOTAL INVESTMENTS -- 101.2% (COST $81,445,048) 81,445,048
NET OTHER ASSETS -- (1.2%) (969,633)
-----------
NET ASSETS -- 100.0% $80,475,415
===========
TOTAL COST FOR INCOME TAX PURPOSES $81,445,048
</Table>
NOTES TO SCHEDULE OF INVESTMENTS:
BANs -- Bank anticipation notes.
(1) The maturity date shown for security is next interest rate reset date.
The accompanying notes are an integral part of the financial statements.
11
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
TAX FREE MONEY MARKET FUND (CONTINUED)
SCHEDULE OF INVESTMENTS STATE TABLE - APRIL 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STATE (AS A % OF MARKET VALUE OF INVESTMENTS) PERCENTAGE
- ---------------------------------------------------------
Washington................................ 11.8%
New York.................................. 9.9%
Illinois.................................. 7.4%
Louisiana................................. 7.2%
Georgia................................... 6.8%
Pennsylvania.............................. 5.6%
Texas..................................... 5.3%
National Tax Exempt Mutual Fund........... 3.9%
Virginia.................................. 3.4%
Arizona................................... 3.3%
Indiana................................... 3.0%
Minnesota................................. 2.8%
Massachusetts............................. 2.6%
Florida................................... 2.5%
Florida................................... 2.5%
Missouri.................................. 2.3%
California................................ 2.2%
New Mexico................................ 2.0%
Maine..................................... 1.9%
Maryland.................................. 1.8%
Maryland.................................. 1.8%
Oregon.................................... 1.4%
Wisconsin................................. 1.3%
Delaware.................................. 1.2%
Iowa...................................... 1.2%
Ohio...................................... 1.2%
Ohio...................................... 1.2%
Michigan.................................. 1.1%
Alaska.................................... 0.9%
Colorado.................................. 0.5%
</Table>
12
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
NEW YORK MUNICIPAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS - APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST
- -----------------------------------------------------------------------------------------
MUNICIPAL INTEREST BEARING COMMERCIAL PAPER -- 15.0%
Long Island Power Authority, NY 0.950% 08/04/2004 $2,000,000 $ 2,000,000
Metropolitan, NY, Transportation
Authority 1.000% 08/06/2004 4,000,000 4,000,000
Metropolitan, NY, Transportation
Authority 1.000% 10/14/2004 2,000,000 2,000,000
New York State Dormitory Authority,
(Mount Sinai School of Medicine) 0.920% 05/10/2004 2,300,000 2,300,000
New York State Environmental Quality 0.950% 06/07/2004 5,000,000 5,000,000
New York State Thruway Authority 0.950% 10/12/2004 3,500,000 3,500,000
New York, NY, City Municipal Water
Finance Authority 0.950% 07/01/2004 2,000,000 2,000,000
------------
TOTAL MUNICIPAL INTEREST BEARING COMMERCIAL PAPER 20,800,000
------------
FIXED RATE MUNICIPAL OBLIGATIONS -- 10.1%
Islip, NY Public Improvements 2.000% 11/24/2004 1,000,000 1,004,323
Jericho, NY, Union Free School District 1.150% 06/25/2004 1,400,000 1,400,730
Lindenhurst, NY, Union Free School
District 1.500% 06/24/2004 2,000,000 2,001,636
Municipal Assistance Corp. for City New
York, NY 6.000% 07/01/2004 1,425,000 1,436,775
New York, NY, City Transitional Finance
Authority 5.000% 11/01/2004 5,000,000 5,095,050
Oyster Bay-East Norwich, NY, Central
School District 1.500% 06/29/2004 1,000,000 1,000,879
Port Washington, NY, Union Free School
District, (School Reconstruction) 2.000% 12/02/2004 2,000,000 2,009,986
------------
TOTAL FIXED RATE MUNICIPAL OBLIGATIONS 13,949,379
------------
DAILY VARIABLE RATE MUNICIPAL OBLIGATIONS -- 12.6%
Jay Street Development Corp., NY, (Jay
Street)(1) 0.980% 05/03/2004 1,700,000 1,700,000
New York State Dormitory Authority,
(Cornell University)(1) 1.080% 05/03/2004 1,700,000 1,700,000
New York, NY Housing Improvements(1) 1.050% 05/03/2004 1,450,000 1,450,000
New York, NY, City Municipal Water
Finance Authority(1) 1.090% 05/03/2004 1,600,000 1,600,000
New York, NY, City Municipal Water
Finance Authority(1) 1.090% 05/03/2004 2,500,000 2,500,000
New York, NY, City Transitional Finance
Authority(1) 1.080% 05/03/2004 1,000,000 1,000,000
New York, NY, City Transitional Finance
Authority(1) 1.080% 05/03/2004 600,000 600,000
New York, NY, City Transitional Finance
Authority(1) 1.080% 05/03/2004 1,700,000 1,700,000
New York, NY, City Transitional Finance
Authority(1) 1.080% 05/03/2004 3,050,000 3,050,000
Port Authority, NY/NJ(1) 1.040% 05/03/2004 1,050,000 1,050,000
Port Authority, NY/NJ, (Versatile
Structure Obligation)(1) 1.120% 05/03/2004 1,000,000 1,000,000
------------
TOTAL DAILY VARIABLE RATE MUNICIPAL OBLIGATIONS 17,350,000
------------
</Table>
13
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
NEW YORK MUNICIPAL MONEY MARKET FUND (CONTINUED)
SCHEDULE OF INVESTMENTS - APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
- -----------------------------------------------------------------------------------------
<Caption>
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST
WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS -- 62.6%
Long Island Power Authority, NY(1) 1.080% 05/05/2004 $4,000,000 $ 4,000,000
Nassau County, NY, Interim Finance
Authority(1) 1.050% 05/05/2004 1,900,000 1,900,000
New York State Energy Research &
Development Authority, (Long Island
Lighting Co.)(1) 1.100% 05/05/2004 5,000,000 5,000,000
New York State Housing Finance Agency(1) 1.070% 05/05/2004 5,000,000 5,000,000
New York State Housing Finance Agency(1) 1.070% 05/05/2004 1,500,000 1,500,000
New York State Housing Finance Agency,
(14th Street Associates, LP)(1) 1.130% 05/05/2004 3,000,000 3,000,000
New York State Housing Finance Agency,
(42/9 Residential LLC)(1) 1.090% 05/05/2004 2,600,000 2,600,000
New York State Housing Finance Agency,
(Kew Gardens Hills/153rd Street
Associates)(1) 1.100% 05/05/2004 3,000,000 3,000,000
New York State Housing Finance Agency,
(Normandie CT)(1) 1.060% 05/05/2004 3,500,000 3,500,000
New York State Housing Finance Agency,
(Tribeca)(1) 1.130% 05/05/2004 2,000,000 2,000,000
New York State Local Government
Assistance Corp.(1) 1.060% 05/05/2004 4,900,000 4,900,000
New York State Local Government
Assistance Corp.(1) 1.060% 05/05/2004 3,500,000 3,500,000
New York State Local Government
Assistance Corp.(1) 1.060% 05/05/2004 1,600,000 1,600,000
New York, NY Public Improvements(1) 1.050% 05/05/2004 2,000,000 2,000,000
New York, NY Public Improvements(1) 1.070% 05/05/2004 1,500,000 1,500,000
New York, NY Public Improvements(1) 1.070% 05/05/2004 2,500,000 2,500,000
New York, NY, City Housing Development
Corp., (Clinton 54 LLC)(1) 1.080% 05/05/2004 3,000,000 3,000,000
New York, NY, City Housing Development
Corp., (Multiple Obligors)(1) 1.080% 05/05/2004 2,000,000 2,000,000
New York, NY, City Housing Development
Corp., (Tribeca Equity Partners, LP)(1) 1.130% 05/05/2004 1,000,000 1,000,000
New York, NY, City Industrial
Development Agency, (Planned
Parenthood)(1) 1.060% 05/06/2004 5,000,000 5,000,000
New York, NY, City Trust for Cultural
Resources(1) 1.060% 05/05/2004 1,785,000 1,785,000
Niagara Falls, NY, Bridge Commission(1) 1.060% 05/05/2004 5,900,000 5,900,000
Oneida County, NY, Industrial
Development Agency(1) 1.040% 05/05/2004 4,735,000 4,735,000
Oneida Indian Nation(1) 1.100% 05/05/2004 5,500,000 5,500,000
Onondaga County, NY, Industrial
Development Agency, (Solvay Paperboard
LLC)(1) 1.180% 05/06/2004 5,000,000 5,000,000
Suffolk County, NY, Water Authority(1) 1.090% 05/05/2004 5,000,000 5,000,000
------------
TOTAL WEEKLY VARIABLE RATE MUNICIPAL OBLIGATIONS 86,420,000
------------
</Table>
14
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
NEW YORK MUNICIPAL MONEY MARKET FUND (CONTINUED)
SCHEDULE OF INVESTMENTS - APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
- -----------------------------------------------------------------------------------------
<Caption>
SECURITY DESCRIPTION RATE MATURITY PRINCIPAL AMORTIZED COST
MONEY MARKET FUND -- 3.3%
Dreyfus New York Municipal Cash
Management Institutional Money Market
Fund 0.870% $4,524,828 $ 4,524,828
------------
TOTAL INVESTMENTS -- 103.6% (COST $143,044,207) 143,044,207
NET OTHER ASSETS -- (3.6%) (4,986,268)
------------
NET ASSETS -- 100.0% $138,057,939
============
TOTAL COST FOR INCOME TAX PURPOSES $143,044,207
</Table>
NOTES TO SCHEDULE OF INVESTMENTS:
(1) The maturity date shown for security is next interest rate reset date.
The accompanying notes are an integral part of the financial statements.
15
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
AS OF APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
BOSTON ADVISORS BOSTON ADVISORS BOSTON ADVISORS BOSTON ADVISORS
CASH U.S. GOVERNMENT TAX FREE NEW YORK MUNICIPAL
RESERVES FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
--------------- ----------------- ----------------- ------------------
ASSETS
Investments in securities, at value
(Cost $1,208,948,208, $156,043,837,
$81,445,048 and $143,044,207,
respectively) $1,208,948,208 $156,043,837 $81,445,048 $143,044,207
Repurchase agreements, at value (Cost
$75,657,000, $24,362,000,
$0 and $0, respectively) 75,657,000 24,362,000 -- --
Cash 639 663 -- --
Interest receivable 2,175,655 249,071 423,231 235,785
Prepaid expenses 83,836 29,549 21,277 8,452
-------------- ------------ ----------- ------------
TOTAL ASSETS 1,286,865,338 180,685,120 81,889,556 143,288,444
-------------- ------------ ----------- ------------
LIABILITIES
Payable for investments purchased -- -- 1,301,035 5,097,133
Dividends payable 169,157 14,965 5,777 22,630
Payable to the Investment Advisor 491,289 85,989 53,130 30,189
Payable to affiliate for Trustees'
fees
and expenses 1,494 1,494 1,494 1,494
Payable to Distributor 253,591 36,745 15,840 29,024
Payable to Transfer Agent 118,408 16,030 2,590 9,706
Accrued expense and other payables 136,285 35,760 34,275 40,329
-------------- ------------ ----------- ------------
TOTAL LIABILITIES 1,170,224 190,983 1,414,141 5,230,505
-------------- ------------ ----------- ------------
NET ASSETS $1,285,695,114 $180,494,137 $80,475,415 $138,057,939
============== ============ =========== ============
NET ASSETS CONSIST OF:
Paid-in capital 1,285,695,114 180,473,874 80,475,415 138,057,939
Accumulated net investment income 314 20,263 -- --
Accumulated net realized loss on
investment transactions (314) -- -- --
-------------- ------------ ----------- ------------
TOTAL NET ASSETS $1,285,695,114 $180,494,137 $80,475,415 $138,057,939
============== ============ =========== ============
NET ASSETS
Class 1 1,257,120,735 180,494,137 80,475,415 138,057,939
Class 2 28,574,379 -- -- --
-------------- ------------ ----------- ------------
TOTAL 1,285,695,114 180,494,137 80,475,415 138,057,939
SHARES OUTSTANDING
Class 1 1,257,120,735 180,494,137 80,475,415 138,057,939
Class 2 28,574,379 -- -- --
-------------- ------------ ----------- ------------
TOTAL 1,285,695,114 180,494,137 80,475,415 138,057,939
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
Class 1 $1.00 $1.00 $1.00 $1.00
Class 2 1.00 -- -- --
</Table>
See Notes to Financial Statements
16
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
YEAR ENDED APRIL 30, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
BOSTON ADVISORS BOSTON ADVISORS BOSTON ADVISORS BOSTON ADVISORS
CASH U.S. GOVERNMENT TAX FREE NEW YORK MUNICIPAL
RESERVES FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
--------------- ----------------- ----------------- ------------------
INVESTMENT INCOME
Interest $15,211,675 $2,165,235 $827,722 $1,391,528
EXPENSES
Investment advisor fee 7,113,285 1,050,418 451,137 788,125
Distribution and service fees
Class 1 3,162,385 477,463 205,062 358,238
Legal fees 28,033 28,033 28,033 30,132
Printing 114,519 18,813 3,790 9,884
Audit fees 20,981 21,021 21,021 20,570
Custodian and fund accounting expense 442,820 67,200 34,840 100,558
Transfer agency expense 1,435,049 188,955 34,566 115,380
Registration expense 5,545 7,053 5,050 1,003
Insurance expense 80,300 8,945 5,172 9,428
Trustees fees and expense 8,113 8,113 8,113 8,179
Miscellaneous 150 150 151 151
----------- ---------- -------- ----------
Total expenses 12,411,180 1,876,164 796,935 1,441,648
Reduction of expenses (Notes 3 and
4) (1,727,653) (157,298) (90,231) (510,478)
----------- ---------- -------- ----------
Net expenses 10,683,527 1,718,866 706,704 931,170
----------- ---------- -------- ----------
Net investment income 4,528,148 446,369 121,018 460,358
----------- ---------- -------- ----------
NET REALIZED GAINS/LOSSES ON INVESTMENTS
Net losses realized on the disposal of
investments in violation of
restrictions (Note 7) (837) -- -- --
Net increase from payments by
affiliates (Note 7) 837 -- -- --
----------- ---------- -------- ----------
Net realized gain -- -- -- --
----------- ---------- -------- ----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 4,528,148 $ 446,369 $121,018 $ 460,358
=========== ========== ======== ==========
</Table>
See Notes to Financial Statements
17
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
BOSTON ADVISORS BOSTON ADVISORS
CASH U.S. GOVERNMENT
RESERVES FUND MONEY MARKET FUND
-------------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30, APRIL 30, APRIL 30,
2004 2003 2004 2003
--------------- --------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 4,528,148 $ 10,749,981 $ 446,369 $ 1,451,178
--------------- --------------- ------------- -------------
Net increase in net assets resulting
from operations 4,528,148 10,749,981 446,369 1,451,178
--------------- --------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income
Class 1 (4,378,990) (10,525,024) (446,369) (1,451,178)
Class 2 (149,158) (224,957) -- --
--------------- --------------- ------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (4,528,148) (10,749,981) (446,369) (1,451,178)
--------------- --------------- ------------- -------------
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST (EACH A $1.00 PER SHARE)
Proceeds from sale of shares
Class 1 4,833,027,671 4,284,616,395 713,467,996 639,218,663
Class 2 47,662,853 43,456,266 -- --
Net Asset Value of shares issued to
shareholders in payment of
distributions declared
Class 1 4,369,618 10,665,082 457,672 1,497,543
Class 2 150,286 226,282 -- --
Cost of shares redeemed
Class 1 (4,843,412,819) (4,378,404,786) (723,683,825) (645,276,954)
Class 2 (46,269,166) (36,550,260) -- --
--------------- --------------- ------------- -------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS (4,471,557) (75,991,021) (9,758,157) (4,560,748)
--------------- --------------- ------------- -------------
NET DECREASE IN NET ASSETS (4,471,557) (75,991,021) (9,758,157) (4,560,748)
NET ASSETS
At beginning of year 1,290,166,671 1,366,157,692 190,252,294 194,813,042
--------------- --------------- ------------- -------------
At end of year $ 1,285,695,114 $ 1,290,166,671 $ 180,494,137 $ 190,252,294
=============== =============== ============= =============
Accumulated undistributed net investment
income included in net assets $ 314 $ 314 $ 20,263 $ 20,263
=============== =============== ============= =============
</Table>
See Notes to Financial Statements
18
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
BOSTON ADVISORS BOSTON ADVISORS
TAX FREE NEW YORK MUNICIPAL
MONEY MARKET FUND MONEY MARKET FUND
------------------------------ ---------------------------------------
FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
APRIL 30, 2004 APRIL 30, 2003 APRIL 30, 2004 APRIL 30, 2003(1)
-------------- -------------- -------------- -----------------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 121,018 $ 425,383 $ 460,358 $ 719,128
------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations 121,018 425,383 460,358 719,128
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income
Class 1 (121,018) (425,383) (460,358) (719,128)
------------- ------------- ------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (121,018) (425,383) (460,358) (719,128)
------------- ------------- ------------- -------------
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST (EACH A $1.00 PER SHARE)
Proceeds from sale of shares
Class 1 237,899,013 262,943,995 514,722,265 603,293,770
Net Asset Value of shares issued to
shareholders in payment of
distributions declared
Class 1 125,701 431,793 458,005 665,414
Cost of shares redeemed
Class 1 (237,808,912) (268,254,514) (508,146,781) (472,934,734)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS 215,802 (4,878,726) 7,033,489 131,024,450
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS 215,802 (4,878,726) 7,033,489 131,024,450
NET ASSETS
At beginning of year 80,259,613 85,138,339 131,024,450 --
------------- ------------- ------------- -------------
At end of year $ 80,475,415 $ 80,259,613 $ 138,057,939 $ 131,024,450
============= ============= ============= =============
Accumulated undistributed net investment
income included in net assets $ -- $ -- $ -- $ --
============= ============= ============= =============
</Table>
(1) Fund commenced operations on June 11, 2002.
See Notes to Financial Statements
19
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - CLASS 1
- --------------------------------------------------------------------------------
<Table>
<Caption>
BOSTON ADVISORS
CASH RESERVES FUND
---------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
APRIL 30, 2004 APRIL 30, 2003 APRIL 30, 2002 APRIL 30, 2001(1)
-------------- -------------- -------------- ---------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ----------
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income 0.003 0.008 0.022 0.050
---------- ---------- ---------- ----------
Net increase from investment operations 0.003 0.008 0.022 0.050
---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.003) (0.008) (0.022) (0.050)
---------- ---------- ---------- ----------
Total distributions (0.003) (0.008) (0.022) (0.050)
---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ========== ========== ==========
TOTAL RETURN 0.35%(4) 0.81% 2.25% 5.07%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) $1,257,121 $1,263,136 $1,346,260 $1,146,333
Ratio of net operating expenses to
average net assets 0.83% 0.85% 0.90% 0.90%(3)
Ratio of net investment income to
average net assets 0.35% 0.81% 2.17% 5.42%(3)
Ratio of expense to average net assets
prior to waived fees and reimbursed
expenses 0.97% 0.99% 0.99% 1.03%(3)
Ratio of net investment income to
average net assets prior to waived
fees and reimbursed expenses 0.21% 0.67% 2.08% 5.29%(3)
</Table>
(1) For the period from commencement of offering of Class 1 shares, June 5,
2000 to April 30, 2001.
(2) Not Annualized.
(3) Annualized.
(4) The effect of losses resulting from compliance violations and the
subadviser reimbursement of such losses were less than 0.01%.
See Notes to Financial Statements
20
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - CLASS 2
- --------------------------------------------------------------------------------
<Table>
<Caption>
BOSTON ADVISORS
CASH RESERVES FUND
---------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
APRIL 30, 2004 APRIL 30, 2003 APRIL 30, 2002 APRIL 30, 2001(1)
-------------- -------------- -------------- ---------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- -------
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income 0.005 0.010 0.025 0.020
------- ------- ------- -------
Net increase from investment operations 0.005 0.010 0.025 0.020
------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.005) (0.010) (0.025) (0.020)
------- ------- ------- -------
Total distributions (0.005) (0.010) (0.025) (0.020)
------- ------- ------- -------
NET ASSET VALUE, END OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
TOTAL RETURN 0.53%(4) 1.02% 2.50% 2.01%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) $28,574 $27,030 $19,898 $19,003
Ratio of net operating expenses to
average net assets 0.65% 0.65% 0.65% 0.66%(3)
Ratio of net investment income to
average net assets 0.53% 0.99% 2.44% 5.22%(3)
Ratio of expense to average net assets
prior to waived fees and reimbursed
expenses 0.72% 0.75% 0.74% 0.83%(3)
Ratio of net investment income to
average net assets prior to waived
fees and reimbursed expenses 0.46% 0.89% 2.35% 5.05%(3)
</Table>
(1) For the period from commencement of offering of Class 2 shares, December
13, 2000 to April 30, 2001.
(2) Not Annualized.
(3) Annualized.
(4) The effect of losses resulting from compliance violations and the
subadviser reimbursement of such losses were less than 0.01%.
See Notes to Financial Statements
21
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - CLASS 1
- --------------------------------------------------------------------------------
<Table>
<Caption>
BOSTON ADVISORS
U.S. GOVERNMENT MONEY MARKET FUND
---------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
APRIL 30, 2004 APRIL 30, 2003 APRIL 30, 2002 APRIL 30, 2001(1)
-------------- -------------- -------------- ---------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- --------
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income 0.002 0.007 0.022 0.049
-------- -------- -------- --------
Net increase from investment operations 0.002 0.007 0.022 0.049
-------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.002) (0.007) (0.022) (0.049)
-------- -------- -------- --------
Total distributions (0.002) (0.007) (0.022) (0.049)
-------- -------- -------- --------
NET ASSET VALUE, END OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ========
TOTAL RETURN 0.23% 0.71% 2.20% 4.98%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) $180,494 $190,252 $194,813 $112,373
Ratio of net operating expenses to
average net assets 0.90% 0.90% 0.90% 0.90%(3)
Ratio of net investment income to
average net assets 0.23% 0.72% 2.10% 5.34%(3)
Ratio of expense to average net assets
prior to waived fees and reimbursed
expenses 0.98% 0.98% 1.01% 1.07%(3)
Ratio of net investment income to
average net assets prior to waived
fees and reimbursed expenses 0.15% 0.64% 1.99% 5.17%(3)
</Table>
(1) For the period from commencement of offering of Class 1 shares, June 5,
2000 to April 30, 2001.
(2) Not Annualized.
(3) Annualized.
See Notes to Financial Statements
22
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - CLASS 1
- --------------------------------------------------------------------------------
<Table>
<Caption>
BOSTON ADVISORS
TAX FREE MONEY MARKET FUND
---------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
APRIL 30, 2004 APRIL 30, 2003 APRIL 30, 2002 APRIL 30, 2001(1)
-------------- -------------- -------------- ---------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- -------
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income 0.001 0.005 0.013 0.027
------- ------- ------- -------
Net increase from investment operations 0.001 0.005 0.013 0.027
------- ------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.001) (0.005) (0.013) (0.027)
------- ------- ------- -------
Total distributions (0.001) (0.005) (0.013) (0.027)
------- ------- ------- -------
NET ASSET VALUE, END OF YEAR $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= =======
TOTAL RETURN 0.15% 0.48% 1.30% 2.77%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) $80,475 $80,260 $85,138 $73,525
Ratio of net operating expenses to
average net assets 0.86% 0.90% 0.90% 0.90%(3)
Ratio of net investment income to
average net assets 0.15% 0.46% 1.24% 2.99%(3)
Ratio of expense to average net assets
prior to waived fees and reimbursed
expenses 0.97% 0.98% 1.02% 1.09%(3)
Ratio of net investment income to
average net assets prior to waived
fees and reimbursed expenses 0.04% 0.38% 1.12% 2.80%(3)
</Table>
(1) For the period from commencement of offering of Class 1 shares, June 5,
2000 to April 30, 2001.
(2) Not Annualized.
(3) Annualized.
See Notes to Financial Statements
23
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - CLASS 1
- --------------------------------------------------------------------------------
<Table>
<Caption>
BOSTON ADVISORS
NEW YORK MUNICIPAL MONEY
MARKET FUND
---------------------------------------
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
APRIL 30, 2004 APRIL 30, 2003(1)
-------------- ---------------------
NET ASSET VALUE, BEGINNING OF YEAR $ 1.000 $ 1.000
-------- --------
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income 0.003 0.005
-------- --------
Net increase from investment operations 0.003 0.005
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (0.003) (0.005)
-------- --------
Total distributions (0.003) (0.005)
-------- --------
NET ASSET VALUE, END OF YEAR $ 1.000 $ 1.000
======== ========
TOTAL RETURN 0.33% 0.53%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000's) $138,058 $131,024
Ratio of net operating expenses to
average net assets 0.65% 0.65%(3)
Ratio of net investment income to
average net assets 0.32% 0.60%(3)
Ratio of expense to average net assets
prior to waived fees and reimbursed
expenses 1.01% 1.10%(3)
Ratio of net investment income (loss)
to average net assets prior to waived
fees and reimbursed expenses (0.04)% 0.15%(3)
</Table>
(1) For the period from commencement of offering of Class 1 shares, June 11,
2002 to April 30, 2003.
(2) Not Annualized.
(3) Annualized.
See Notes to Financial Statements
24
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2004
- --------------------------------------------------------------------------------
1 -- SIGNIFICANT ACCOUNTING POLICIES
Boston Advisors Trust (the "Trust") is a diversified, open-end management
investment company registered under the Investment Company Act of 1940, as
amended. The Trust was established as a Massachusetts Business Trust on
September 30, 1999. The Trust currently offers four Funds: Boston Advisors Cash
Reserves Fund (the "Cash Reserves Fund"), Boston Advisors U.S. Government Money
Market Fund (the "U.S. Government Money Market Fund"), Boston Advisors Tax Free
Money Market Fund (the "Tax Free Money Market Fund"), and Boston Advisors New
York Municipal Money Market Fund (the "New York Municipal Money Market Fund"),
(each, a "Fund"). Each Fund's investment objective is to seek to preserve
capital and maintain liquidity, consistent with seeking maximum current income.
Additionally the Tax Free Money Market Fund seeks to generate income that is
substantially exempt from federal income taxes and the New York Municipal Money
Market Fund seeks to generate income that is substantially exempt from federal
income tax and personal income taxes imposed by New York State and New York
municipalities. The Cash Reserves Fund issues two classes of shares (Class 1 and
Class 2 shares). Class 1 shares have a 12b-1 distribution fee. There are no
other class specific expenses for either share class. The following is a summary
of significant accounting policies consistently followed by the Funds in the
preparation of their financial statements. The policies are in conformity with
accounting principles generally accepted in the United States of America.
A. SECURITY VALUATION -- Each Fund values investment securities utilizing the
amortized cost valuation method permitted by Rule 2a-7 of the Investment
Company Act of 1940, pursuant to which each Fund must comply with certain
conditions. This pricing method involves initially valuing a fund security at
its cost and thereafter assuming a constant amortization to maturity of any
discount or premium.
B. INCOME -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or accretion of discount.
C. EXPENSES -- The Trust accounts separately for the assets, liabilities and
operations of each Fund. Direct expenses of each Fund are charged to that
Fund while general expenses are allocated among the Trust's respective
portfolios based on their respective net assets.
The investment income and expenses of each Fund (other than class specific
expenses) and realized gains and losses on investments of each Fund are
allocated to each class of shares based upon their relative net asset value
on the date income is earned or expenses and realized gains or losses are
incurred.
D. REPURCHASE AGREEMENTS -- Each Funds' custodian and other banks acting in a
sub-custodian capacity take possession of the collateral pledged for
investments in repurchase agreements. The underlying collateral is valued
daily on a mark-to-market basis to determine that the value, including
accrued interest, exceeds the repurchase price. In the event of the seller's
default of the obligation to repurchase, each Fund has a right to liquidate
the collateral and apply the proceeds in satisfaction of the obligation.
Under certain circumstances, in the event of default or bankruptcy by the
other party to the agreement, realization and/or retention of the collateral
may be subject to legal proceedings.
E. USE OF ESTIMATES -- The preparation of the financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and
25
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2004
- --------------------------------------------------------------------------------
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of income and
expense during the reporting period. Actual results could differ from those
estimates.
F. OTHER -- Investment transactions are accounted for on a trade-date basis.
Gains and losses on securities are determined on the basis of identified
cost.
2 -- TAXES AND DISTRIBUTIONS TO SHAREHOLDERS
Each Fund's policy is to comply with the provisions of the Internal Revenue Code
1986 (the "Code") applicable to regulated investment companies and to distribute
to shareholders each year substantially all of its net investment income,
including any net realized gain on investments. Accordingly, no provision for
federal income or excise tax is necessary.
The net investment income of each Fund is declared as a dividend daily, and paid
monthly, to shareholders of record at the close of business on record date. Net
realized gains on portfolio securities, if any, are distributed at least
annually. Distributions are paid in the form of additional shares of the same
Fund or, at the election of the shareholder, in cash. For U.S. Government Money
Market Fund and Tax Free Money Market Fund, certain distributions may be paid
from net interest earned and designated as tax exempt interest. Such
distributions are not includable by shareholders as income subject to federal
and/or state taxes, but may be subject to federal alternative minimum tax.
26
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2004
- --------------------------------------------------------------------------------
Income dividends and capital gain distributions are determined in accordance
with U.S. federal income tax regulations which may differ from accounting
principles generally accepted in the United States of America. During the year
ended April 30, 2004, the tax basis of distributions paid were as follows:
<Table>
<Caption>
ORDINARY INCOME TAX-EXEMPT INCOME
--------------- -----------------
Cash Reserves Fund
Class 1 $4,468,044 $ --
Class 2 152,191 --
U.S. Government Money Market Fund 467,449 --
Tax Free Money Market Fund -- 127,996
New York Municipal Money Market Fund -- 471,240
</Table>
<Table>
<Caption>
As of April 30, 2004, the components of distributable earnings on a tax basis were as follows:
- -----------------------------------------------------------------------------------------------------
NEW YORK
U. S. GOVERNMENT TAX FREE MUNICIPAL
CASH RESERVES MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND FUND
------------- ---------------- ------------ ------------
Undistributed Ordinary Income $169,471 $35,228 $5,777* $22,630*
Undistributed Long-Term Gain (Loss) -- -- -- --
</Table>
* All of the dividends distributed by the Tax Free Money Market Fund and
the New York Municipal Money Market Fund were derived from municipal
securities which are exempt from state and federal income taxes.
<Table>
<Caption>
At April 30, 2004, the Funds had capital loss carry forwards to offset future gains, if any, to the extent
permitted by the Code, of the following:
- -----------------------------------------------------------------------------------------------------------
AMOUNT EXPIRATION DATE
-------------------- -----------------------------
Cash Reserves Fund $314 2009
</Table>
3 -- INVESTMENT ADVISER FEE
Boston Advisors, Inc. (the "Advisor"), a wholly owned subsidiary of The Advest
Group, Inc. ("Advest Group"), serves as the investment advisor to the Funds,
providing management, investment advisory and other services. In exchange, the
Funds have agreed to pay the Advisor, a monthly advisory fee at an annual rate
of 0.55% of each Fund's average daily net assets. For each Fund, the Advisor has
agreed to contractually waive its advisory fee and reimburse each Fund for its
expenses through September 1, 2004, to the
27
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2004
- --------------------------------------------------------------------------------
extent necessary that the total expenses of each Fund do not exceed the
percentage of average daily net assets as follows:
<Table>
Cash Reserves Fund
Class 1 0.83%
Class 2 0.65%
U.S. Government Money Market Fund 0.90%
Tax Free Money Market Fund 0.90%
New York Municipal Money Market Fund 0.65%
</Table>
The Advisor reserves the right to reduce its fees from time to time on a
voluntary basis. Such additional voluntary limitation may be discontinued at any
time at the Advisor's discretion. Any such voluntary expense limitation will
have the effect of increasing a Fund's return and yield. The Advisor also
reserves the right to be reimbursed for management fees waived and fund expenses
paid by it during the prior two years to the extent that a Fund's expense ratio
falls below any expense limitations.
4 -- DISTRIBUTION PLAN
Advest, Inc. ("Advest"), a wholly owned subsidiary of the Advest Group, serves
as the distributor to the Funds. The Funds have adopted a Rule 12b-1
distribution plan (the "Plan") authorizing each Fund's Class 1 shares to pay
service fees equal to 0.25% of the Class 1 average daily net assets. Advest may
pay up to the entire fee under the Plan to its own representatives or to other
dealers providing services in connection with the sale of each Fund's shares. To
the extent the fee is not paid to others, Advest may retain this fee as
compensation for its services and expenses incurred in accordance with the Plan.
For the year ended April 30, 2004, the distribution fees earned by Advest from
the Cash Reserves Fund, the U.S. Government Money Market Fund, the Tax Free
Money Market Fund and the New York Municipal Money Market Fund amounted to
$3,162,385, $477,463, $205,062 and $358,238, respectively. Advest reimbursed the
New York Municipal Money Market Fund the full amount of the Fund's payment and
retained the full amount of each Fund's payment for the remaining funds.
5 -- TRANSFER AGENT FEE
Advest Transfer Services, Inc. ("ATS"), a subsidiary of the Advest Group, serves
as the Funds' shareholder servicing agent and transfer agent. ATS receives
account fees and asset-based fees that vary according to account size and type
of account.
6 -- ADMINISTRATION, CUSTODIAN AND FUND ACCOUNTING FEE
Investors Bank & Trust Company ("Investors Bank") serves as the Trust's
administrator, custodian and fund accounting agent. As compensation for its
services, Investors Bank receives out-of-pocket costs, transaction fees, and
asset based fees, which are accrued daily and paid monthly. Fees for such
services paid to Investors Bank by the Funds are reflected as custodian and fund
accounting expense in the statement of operations.
28
<Page>
BOSTON ADVISORS TRUST
- -------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2004
- --------------------------------------------------------------------------------
7 -- INVESTMENT SUB-ADVISORY FEE
MONY Capital Management, Inc. (the "Subadviser") serves as the subadviser for
the Cash Reserves Fund and the U.S. Government Money Market Fund. The Advisor
and Subadviser are both wholly-owned subsidiaries of The MONY Group Inc., a
diversified financial services company offering insurance, brokerage, asset
management and other financial services. The subadvisory relationship with the
Funds commenced on December 2, 2002.
The Subadvisory Agreement provides that the Advisor will pay the Subadviser a
fee equal to 0.03% of each Fund's average daily net assets. The Funds will not
pay any fee directly to the Subadviser.
The Subadviser made voluntary reimbursements to the Cash Reserves Fund totaling
$837 to compensate the Fund for realized losses incurred from the sale of
investment securities that violated the Fund's investment restrictions.
8 -- PRINCIPAL SHAREHOLDER
One shareholder owns 5.1% of the shares outstanding of the Tax Free Money Market
Fund as of April 30, 2004. Investment activities of this shareholder may have a
material effect on the Fund.
9 -- MERGER OF THE MONY GROUP, AXA FINANCIAL, INC. AND AIMA ACQUISITION CO.
On September 17, 2003, The MONY Group Inc. ("MONY"), AXA Financial, Inc. ("AXA")
and AIMA Acquisition Co. entered into an Agreement and Plan of Merger (the
"Merger Agreement"), providing for the acquisition of MONY by AXA (the
"Merger"). As a result of the Merger, MONY will cease to be a publicly traded
company and will become a wholly-owned subsidiary of AXA. AXA is a diversified
financial services organization offering a broad spectrum of financial advisory,
insurance and investment management products and services. MONY is an indirect
parent company of the Advisor and Advest, Inc., the distributor (the
"Distributor") of the Funds. The Merger will not affect the daily operations,
including the management of the Funds or services provided by the Advisor and
Distributor. On May 18, 2004, MONY announced that stockholders of MONY had voted
to approve the Merger at a special meeting of stockholders. Consummation of the
Merger is subject to a number of contingencies, including regulatory approvals.
29
<Page>
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of Boston Advisors Cash Reserves Fund, Boston Advisors U.S.
Government Money Market Fund, Boston Advisors Tax Free Money Market Fund, Boston
Advisors New York Municipal Money Market Fund, and the Board of Trustees of
Boston Advisors Trust:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Boston Advisors Cash Reserves Fund,
Boston Advisors U.S. Government Money Market Fund, Boston Advisors Tax Free
Money Market Fund, and Boston Advisors New York Municipal Money Market Fund
(each a fund of Boston Advisors Trust, hereafter referred to as the "Fund") at
April 30, 2004, the results of each of their operations for the year then ended,
and the changes in their net assets and their financial highlights for the
periods presented, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the Standards of the
Public Company Oversight Board (United States), which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
April 30, 2004 by correspondence with the custodian and brokers, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
June 18, 2004
30
<Page>
SUPPLEMENTAL TAX INFORMATION (UNAUDITED)
A total of 20.1% and 84.9% of the dividends distributed by the Boston Advisors
Cash Reserves Fund and the Boston Advisors U.S. Government Money Market Fund,
respectively, during the fiscal year was derived from interest on U.S.
Government securities which is generally exempt from state income tax. The
detailed analysis of the percentage of investments as follows:
<Table>
<Caption>
BOSTON ADVISORS
BOSTON ADVISORS U.S. GOVERNMENT MONEY
CASH RESERVES FUND MARKET FUND
------------------ ---------------------
U.S Treasury Obligations 0.0% 0.0%
GNMA 0.0% 0.0%
FNMA 11.5% 28.8%
FHLMC 5.6% 36.0%
Other U.S. Government Agency Obligations 3.0% 20.1%
Other 79.9% 15.1%
</Table>
Additionally, 100% of the dividends distributed by the Boston Advisors Tax Free
Money Market Fund and the Boston Advisors New York Municipal Money Market Fund
during the fiscal year was derived from Municipal securities which are exempt
from state income tax.
The fund will notify shareholders in January 2005 of amounts for use in
preparing 2004 income tax returns.
ADDITIONAL INFORMATION (UNAUDITED)
On May 20, 2004, the Trust held a joint special meeting of shareholders of the
Cash Reserves Fund, U.S. Government Money Market Fund, Tax Free Money Market
Fund and New York Municipal Money Market Fund (the "Funds") to: consider for
approval a new investment advisory agreement between the Funds and Boston
Advisors, Inc. ("Proposal 1"); consider for approval a new subadvisory agreement
among the Cash Reserves Fund, U.S. Government Money Market Fund, Boston
Advisors, Inc. and MONY Capital Management, Inc. ("Proposal 2"); elect five
trustees to serve on the board of trustees of the Funds ("Proposal 3").
The results of the shareholder vote were as follows:
PROPOSAL 1
Cash Reserves Fund:
For: 1,264,754,019.78 (equal to 97.77% of outstanding shares);
Against: 8,723,645.78 (equal to 0.67% of outstanding shares);
Abstain: 8,503,541.99 (equal to 0.66% of outstanding shares).
U.S. Government Money Market Fund:
For: 182,405,779.95 (equal to 99.53% of outstanding shares);
Against: 978,618.94 (equal to 0.53% of outstanding shares);
Abstain: 1,173,326.57 (equal to 0.64% of outstanding shares).
Tax Free Money Market Fund:
For: 80,303,645.31 (equal to 98.93% of outstanding shares);
Against: 317,237.19 (equal to 0.39% of outstanding shares);
Abstain: 324,637.55 (equal to 0.40% of outstanding shares).
31
<Page>
New York Municipal Money Market Fund:
For: 137,794,813.70 (equal to 97.99% of outstanding shares);
Against: 734,292.41 (equal to 0.52% of outstanding shares);
Abstain: 1,877,044.03 (equal to 1.34% of outstanding shares).
PROPOSAL 2
Cash Reserves Fund:
For: 1,263,179,473.47 (equal to 97.63% of outstanding shares);
Against: 10,197,461.70 (equal to 0.79% of outstanding shares);
Abstain: 8,503,541.99 (equal to 0.66% of outstanding shares).
U.S. Government Money Market Fund:
For: 182,199,397.08 (equal to 99.41% of outstanding shares);
Against: 1,162,890.67 (equal to 0.64% of outstanding shares);
Abstain: 1,195,459.71 (equal to 0.65% of outstanding shares).
PROPOSAL 3
The shareholders of the Funds have voted jointly for each nominee as follows:
Mr. Anathan: 1,673,830,862.36 (equal to 98.52% of shares voted);
Mr. Botwinick: 1,674,140,509.13 (equal to 98.54% of shares voted);
Mr. Chang: 1,674,646,239.18 (equal to 98.57% of shares voted);
Mr. Peach: 1,674,733,509.35 (equal to 98.57% of shares voted);
Ms. Zuckerwise: 1,674,260,763.87 (equal to 98.55% of shares voted).
The votes withheld for each nominee are as follows:
Mr. Anathan: 14,059,740.84 (equal to 0.83% of shares voted);
Mr. Botwinick: 13,750,094.07 (equal to 0.81% of shares voted);
Mr. Chang: 13,244,364.01 (equal to 0.78% of shares voted);
Mr. Peach: 13,157,093.85 (equal to 0.77% of shares voted);
Ms. Zuckerwise: 13,629,839.32 (equal to 0.80% of shares voted).
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling 1-800-523-5903; and on the Commission's website
at (ii) http://www.sec.gov.
32
<Page>
TRUSTEES AND OFFICERS (UNAUDITED)
The Trust's Board of Trustees provides broad supervision over the affairs of the
Trust. The officers of the Trust are responsible for the Trust's operations. The
Trustees and executive officers of the Trust are listed below, together with
their principal occupations during the past five years.
INTERESTED TRUSTEES
<Table>
<Caption>
NUMBER OF
TERM OF PRINCIPAL PORTFOLIOS IN OTHER
NAME, OFFICE(1) OCCUPATION(S) TRUST COMPLEX DIRECTORSHIPS
ADDRESS AND POSITION(S) AND LENGTH OF DURING PAST OVERSEEN BY HELD BY
AGE HELD WITH TRUST TIME SERVED 5 YEARS TRUSTEE TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------
Allen G. Botwinick(2) Chairman of the Trustee and Chairman Executive Vice Four Advest, Inc.;
90 State House Square Board and Trustee of the Board since President of Lebenthal Funds,
Hartford, CT 06103 March 2000 Administration and Inc. (three
Age: 61 Operations, The funds)
Advest Group, Inc.
and Advest, Inc.
Michael J. Vogelzang(3) President, Chief Trustee, President Boston Four Advest, Inc.
One Federal Street Executive Officer and Chief Executive Advisors, Inc.,
Boston, MA 02110 and Trustee Officer since March President and Chief
Age: 43 2000 Investment Officer,
4/99 - present;
Senior Vice
President and Chief
Investment Officer,
8/97 - 4/99.
</Table>
DISINTERESTED TRUSTEES
<Table>
<Caption>
NUMBER OF
TERM OF PRINCIPAL PORTFOLIOS IN OTHER
NAME, OFFICE(1) OCCUPATION(S) TRUST COMPLEX DIRECTORSHIPS
ADDRESS AND POSITION(S) AND LENGTH OF DURING PAST OVERSEEN BY HELD BY
AGE HELD WITH TRUST TIME SERVED 5 YEARS TRUSTEE TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------
Mone Anathan III Trustee Trustee since March Harvard Divinity Four Brookstone, Inc.
99 Garden Street 2000 School, Student, (specialty
Cambridge, MA 02136 9/97 - present; retailer)
Age: 65
Victor Chang Trustee Trustee since Retired. Guest Four Lebenthal
One Federal Street December 2003 lecturer and Funds, Inc.
Boston, MA 02110 researcher for (three funds)
Age: 65 central banks and
the U.S. and foreign
governments.
President V.C.
Management
Co., Inc. which was
in the business of
providing financial
analysis and
economic consulting
(1980 - 1996). Vice
President of and
consultant to Fuji
Securities Company
Inc. (1996 - 1998).
</Table>
33
<Page>
<Table>
<Caption>
NUMBER OF
TERM OF PRINCIPAL PORTFOLIOS IN OTHER
NAME, OFFICE(1) OCCUPATION(S) TRUST COMPLEX DIRECTORSHIPS
ADDRESS AND POSITION(S) AND LENGTH OF DURING PAST OVERSEEN BY HELD BY
AGE HELD WITH TRUST TIME SERVED 5 YEARS TRUSTEE TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------
Ezekiel Russell Peach, Jr. Trustee Trustee since March Retired, 12/99 - Four Lebenthal
137 Atlantic Avenue 2000 present; Robert, Funds, Inc.
Marblehead, MA 01945 Finnegan & Lynah, (three funds);
Age: 69 PC (public Salem Five Cent
accounting), Savings Bank;
partner/ principal, Wentworth 84
1968 - 12/99. Irrevocable
Trust
Penny Zuckerwise Trustee Trustee since Principal and Four BBR Partners
Wiserock, L.L.C. December 2003 founder, Wiserock, (asset
One West 81st Street L.L.C. (management management and
New York, NY 10024 oversight and advisory
Age: 48 business advice), services);
1999 - present; Co- Colspace
Founder, general (software based
partner, governing knowledge
board member, management
Boldcap Ventures LLC company);
(private equity Lebenthal
investment fund), Funds, Inc.
6/00 - present; (three funds);
President and Chief Lioness Capital
Operating Officer, Parners (private
Chancellor LGT Asset equity fund).
Management
(currently,
INVESCO), 1991 -
1998.
</Table>
(1) Each Trustee will hold office until his successor is elected or the
Trust is terminated; except that (a) any Trustee may resign by written
instrument signed by him and delivered to the other Trustees or to any
Trust officer, which will take effect upon delivery or upon such later
date as is specified; (b) any Trustee may be removed at any time with or
without cause by written instrument, signed by at least two-thirds of
the number of Trustees prior to such removal, specifying the date when
such removal will become effective; (c) any Trustee who requests in
writing to be retired or who has become incapacitated by illness or
injury may be retired by written instruments signed by a majority of the
other Trustees, specifying the date of his retirement; or (d) a Trustee
may be removed at any special meeting of the shareholders of the Trust
by a vote of two-thirds of the outstanding shares of beneficial interest
of the Trust.
(2) Mr. Botwinick may be deemed an "interested person" of the Trust as
defined under the Investment Company Act of 1940 (the "1940 Act") based
on his affiliation with Advest, Inc.
(3) Mr. Vogelzang may be deemed an "interested person" of the Trust as
defined under the 1940 Act based on his affiliation with Boston
Advisors, Inc.
OFFICERS
<Table>
<Caption>
PRINCIPAL
NAME, TERM OF OFFICE(4) OCCUPATION(S)
ADDRESS AND POSITION(S) AND LENGTH OF DURING PAST
AGE HELD WITH TRUST TIME SERVED 5 YEARS
- ----------------------------------------------------------------------------------------
Todd A. Finkelstein Vice President Vice President since Boston
One Federal Street March 2000 Advisors, Inc.,
Boston, MA 02110 Senior Vice
Age: 43 President and
Director of Fixed
Income, 8/98 -
present; BankBoston,
Vice President and
Senior Investment
Officer,
12/94 - 8/98.
</Table>
34
<Page>
<Table>
<Caption>
PRINCIPAL
NAME, TERM OF OFFICE(4) OCCUPATION(S)
ADDRESS AND POSITION(S) AND LENGTH OF DURING PAST
AGE HELD WITH TRUST TIME SERVED 5 YEARS
- ----------------------------------------------------------------------------------------
Ronald B. Maggiacomo Treasurer and Treasurer and Chief Treasurer of
One Federal Street Chief Financial Financial Officer Lebenthal
Boston, MA 02110 Officer since December 2003 Funds, Inc. since
Age: 61 October 2003; Boston
Advisors, Inc.,
Chief Operating
Officer, 3/03 -
present; President
of Billings & Co.
Inc. since March
1982; Vice President
of Bank Street
Management Company
since June 2003.
Annellen McNamara Assistant Assistant Treasurer Director, Mutual
Investors Bank & Trust Treasurer since March 2002 Fund Administration,
200 Clarendon Street Investors Bank &
Boston, MA 02116 Trust Company,
Age: 37 6/02 - present;
Senior Manager,
1/00 - 5/02; Manager
1996 - 1999.
John DelPrete Secretary Secretary since June Senior Associate
Investors Bank & Trust 2001 Counsel, Mutual Fund
200 Clarendon Street Administration,
Boston, MA 02116 Investors Bank &
Age: 35 Trust Company,
1/01 - present;
Associate Counsel,
5/97 - 12/00.
Ellen O'Leary Blanchard Assistant Assistant Secretary Associate Counsel,
Investors Bank & Trust Secretary since September 2002 Mutual Fund
200 Clarendon Street Administration,
Boston, MA 02116 Investors Bank &
Age: 30 Trust Company,
1999 - present; Fund
Accountant, 1996 -
1999.
</Table>
(4) Officers are elected to hold such office until their successor is
elected and qualified to carry out the duties and responsibilities of
their office, or until he or she resigns or is removed from office.
The Trust's Statement of Additional Information has additional information abut
the Trust's Trustees and is available without charge upon request by calling
1-800-523-5903.
35
<Page>
ITEM 2 CODE OF ETHICS.
As of February 24, 2004, the Registrant had adopted a Code of Ethics
that applies to the Principal Executive Officer and Principal Financial Officer
pursuant to the Sarbanes-Oxley Act of 2002. For the year ended April 30, 2004,
there were no amendments to a provision of the Code of Ethics nor were there any
waivers granted from a provision of the Code of Ethics. A copy of the
Registrant's Code of Ethics is filed with this Form N-CSR under item 11 (a).
ITEM 3 AUDIT COMMITTEE FINANCIAL EXPERT
The Registrant's Board of Directors has determined that the Registrant
has at least one audit committee financial expert serving on its audit
committee. The audit committee financial expert serving on the Registrant's
audit committee is Ezekiel Russell Peach, Jr., who is "independent" as defined
in Item 3 of Form N-CSR.
ITEM 4 PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) AUDIT FEES: The aggregate fees paid and accrued by the Registrant
for professional services rendered by its independent auditors,
Pricewaterhousecoopers LLP, for the audit of the Registrant's
annual financial statements for 2004 and 2003 were $78,700 and
$81,000, respectively.
(b) AUDIT RELATED FEES: No such fees were billed to the Registrant by
PricewaterhouseCoopers LLP for 2004 or 2003.
(c) TAX FEES: The aggregate fees paid or accrued by the Registrant for
professional services rendered by Pricewaterhousecoopers LLP for
the review of excise tax distribution calculations for 2004 and
2003 were $15,700 and $9,000, respectively.
(d) ALL OTHER FEES: The aggregate fees paid and accrued by the
Registrant for professional services rendered by
Pricewaterhousecoopers LLP for the review of transfer agent
services for 2004 and 2003 were $30,000 and $30,000, respectively.
(e) (1) AUDIT COMMITTEE PRE-APPROVAL POLICY: The Registrant's audit
committee pre-approves all audit and non-audit services to be
performed by the Registrant's accountant before the accountant is
engaged by the Registrant to perform such services.
(e) (2) Not applicable.
(f) Not applicable.
(g) The aggregate fees paid and accrued by the Registrant for
professional services rendered by Pricewaterhousecoopers LLP and
by the Registrant's investment adviser for non-audit services for
2004 and 2003 were $863,403 and $2,964,529.
(h) Not applicable.
ITEM 5 AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6 SCHEDULE OF INVESTMENTS
Not applicable to this filing.
ITEM 7 DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
<Page>
ITEM 8 PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to this filing.
ITEM 9 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 10 CONTROLS AND PROCEDURES.
(a) The Registrant's Principal Executive Officer and Principal Financial
Officer concluded that the Registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940) were effective as of a date within 90 days prior to the
filing date of this report (the "Evaluation Date"), based on their
evaluation of the effectiveness of the Registrant's disclosure controls
and procedures as of the Evaluation Date.
(b) There were no changes in the Registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the
1940 Act (17 CFR 270.30a-3(d)) that occurred during the Registrant's
last fiscal half-year (the Registrant's second fiscal half-year in the
case of an annual report) that has materially affected, or is reasonably
likely to materially affect, the Registrant's internal control over
financial reporting.
ITEM 11 EXHIBITS:
(a)(1) Code of Ethics Described in Item 2 is attached.
(a)(2) Certifications of the Principal Executive Officer and Principal
Financial Officer of the Registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940 (17 CFR 270.30a-2(a) are attached
hereto as Exhibit 99CERT.302
(a)(3) Any written solicitation to purchase securities under Rule 23c-1
under the Act (17 CFR 270.23c-1) sent or given during the period covered
by the report by or on behalf of the registrant to 10 or more persons.
(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 as required by Rule 30a-2(b), under the Investment Company Act of
1940 (17 CFR 270.30a-2(b)), Rule 15d-14(b) under the Securities Exchange
Act of 1934 (17 CFR 240.15d-14(b)) and Section 1350 of Chapter 63 of
Title 18 of the United States Code (18 U.S.C. 1350) is attached hereto
as Exhibit 99.906CERT.
FORM N-CSR(3 OF 3)
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Boston Advisors Trust
By: /s/ Michael J. Vogelzang
--------------------------------------------------
Michael J. Vogelzang, Chief Executive Officer
Date July 8, 2004
----------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities, and on the
dates indicated.
By: /s/ Michael J. Vogelzang
----------------------------------------------------
Michael J. Vogelzang, Chief Executive Officer
<Page>
Date July 8, 2004
----------------------------
By: /s/ Ronald B. Maggiacomo
-----------------------------------------------
Ronald B. Maggiacomo, Chief Financial Officer
Date July 8, 2004
-------------------------------