PRESIDENT'S LETTER
Dear Shareholder:
The year has been marked by steady economic growth accompanied by low levels of
inflation. Bonds have rallied throughout the year, as the Federal Reserve's
target of zero inflation looks increasingly attainable. American industry has
been able to deliver top quality products while keeping its cost structure low.
Consequently, profits have risen to all-time highs. The combination of lower
interest rates and higher profits has led to record levels in all major United
States stock markets.
We continue to believe that interest rates will trend lower as we approach the
end of this economic expansion, but that corporate profitability will be more
problematic over the coming year. Accordingly, equity investments are being made
with strict attention to sustainable profit growth and down side protection.
WINTHROP AGGRESSIVE GROWTH FUND
The Winthrop Aggressive Growth Fund returned 11.1% for the fiscal year versus
18.3% for the Russell 2000. Value-oriented small company portfolios (like the
Aggressive Growth Fund) underperformed growth-style small company portfolios
during the period. Small company shares, as measured by the Russell 2000 Index
sharply underperformed large company shares as measured by the S&P 500. Investor
concern over a slowing U.S. economy has focused attention on large,
multinational consumer staple companies (soap, food, drugs) and companies
showing rapid unit growth (technology).
The Fund continues to emphasize smaller capitalization (under $1 billion)
"value" stocks. While our limited exposure in the area of technology has
hindered our relative performance over the last year, we continue to find the
sector too volatile, and in some cases, too richly valued for our relatively
risk-averse strategy when compared with other funds with similar investment
objectives. We liken investor's current enthusiasm for Internet-related issues
to previous short-lived infatuations with the biotechnology and gaming
industries.
Our investments in companies in the capital goods sector have generally posted
strong results for the September quarter, and indicators are that business
trends remain good. However, some of the stocks have been lackluster performers,
as investors fret over the impact of a weaker 1996 domestic economy on capital
spending. To further diversify the portfolio, recently we have been buying
shares in companies more exposed to consumer spending than capital spending. New
commitments to this area include: Advo Systems, Inc., Anthony Industries, Inc.,
Banta Corp., Flowers Inds. Inc., Lee Enterprises, Inc., Luby's Cafeterias Inc.,
and Marcus Corp.
WINTHROP GROWTH AND INCOME FUND
For the fiscal year, the Winthrop Growth and Income Fund returned 16.1% versus
26.4% for the S&P 500. Performance was hampered early in the year by exposure to
shares of companies headquartered outside the United States, such as TelMex and
PanAmerican Beverages. Bond holdings as well as investments in master limited
partnerships provided solid absolute returns but trailed the S&P 500. Strength
in the portfolio came from consumer staples, such as Gillette and Procter and
Gamble, and from financial service stocks, such as Wells Fargo and Fannie Mae.
We continue to carry an overweighting in financial service companies and believe
that these companies have the potential to deliver double-digit growth over the
coming year.
THE WINTHROP GROWTH FUND
The Winthrop Growth Fund earned 12.2% in fiscal year 1995 versus 26.4% for the
S&P 500. This was primarily due to the Fund's very limited commitment to
technology stocks, which rallied significantly during the first half of the
year. These issues are often avoided by our investment managers owing to their
typically high volatility.
The Fund followed a conservative strategy when compared to other funds with
similar investment objectives, emphasizing steady performers like Federal Home
Loan Mortgage Company, First Bank Systems, Pepsico and Loral. Looking forward,
we are positioning the Fund to perform in a slow growth and declining interest
rate environment. In August, the Fund was modified to be more sector-neutral
relative to the S&P 500 and to make more extensive use of the research
recommendations of Donaldson, Lufkin & Jenrette.
WINTHROP FIXED INCOME FUND
The Winthrop Fixed Income Fund returned 12.2% for the fiscal year, closely
tracking the 12.5% return of the Lehman Government/Corporate Intermediate Bond
Index. Interest rates fell dramatically during the last 12 months, as fears of
further interest rate increases and potentially higher inflation rates abated.
Recently we initiated a position in AA-rated Province of Ontario bonds to
capitalize on what we believed were temporarily depressed bond prices in Canada.
When Canadians voted "No" on the Quebec-led independence referendum, bond prices
increased significantly in a short period of time, benefiting Fund performance.
We believe both domestic and foreign interest rates will head lower over the
next six months, based on expectations of slowing economic growth, subdued
inflation, and a stable-to-improving dollar. We expect these developments will
provide further support to the bond market.
WINTHROP MUNICIPAL TRUST FUND
Returns in the tax-exempt markets benefited not only from lower interest rates,
but also a decline in supply following 1994's historically low issuance. Returns
in the tax-exempt market have lagged those in the taxable market due primarily
to market volatility associated with concerns regarding flat-tax proposals.
However, the Winthrop Municipal Trust Fund returned a solid 10.1%, which
compares favorably to the Lipper Intermediate Municipal Fund Index of 10.0%. We
have taken advantage of higher interest rates throughout the year to establish
core positions in longer intermediate securities in the 12 to 15 year range with
good call protection and high current yield. We have also begun to include
securities subject to the alternative minimum tax ("AMT"), which generally yield
more than other municipal debt. Most taxpayers are not subject to the AMT and
further positions will be established when their yields are trading at
attractive spreads to general municipal debt. We continue to monitor
developments in Washington regarding flat-tax proposals and, stand ready to
exploit opportunities that present themselves. We believe that flat-tax talk
will die if President Clinton is re-elected. If a Republican candidate succeeds,
flat-tax proposals will continue, but should meet resistance and ultimately fail
due to special interest groups and budget constraints. Municipals should
continue to maintain their tax advantage and value as a solid fixed income
investment.
Thank you for your investment in the Winthrop Focus Funds. The Officers and
Trustees would like to wish you a happy and prosperous New Year.
Sincerely,
/s/ Carl B. Menges
Carl B. Menges
President December, 1995
<PAGE>
FOCUS FUND HIGHLIGHTS
WINTHROP GROWTH FUND
PORTFOLIO CHANGES For the Six Months Ended October 31, 1995
(unaudited)
MAJOR PURCHASES MAJOR SALES
ConAgra, Inc.(1) Corning, Inc.(2)
Dow Chemical Co.(1) Federal National Mortgage Assn.(2)
Exxon Corp.(1) Gillette Co.(2)
Kerr-McGee Corp.(1) Guinness PLC ADRs(2)
MCI Communications Corp.(1) Pepsico, Inc.
Pfizer, Inc.(1) Premier Industrial Corp.(2)
Schering-Plough Corp.(1) RJR Nabisco Holdings Corp.(2)
Sears Roebuck & Co.(1) Vodafone Group ADRs(2)
(1) New Holdings (2) Deletions
TEN LARGEST HOLDINGS October 31, 1995 (unaudited)
PERCENT
VALUE OF FUND
----------- -------
Exxon Corp........................................ $ 2,932,800 5.3%
Pepsico, Inc...................................... 2,853,775 5.1
Cellular Communications, Inc. Cl. A............... 2,551,209 4.6
Schering-Plough Corp.............................. 2,048,475 3.7
First Bank System, Inc............................ 1,960,150 3.5
MCI Communications Corp........................... 1,915,200 3.4
Wells Fargo & Co.................................. 1,912,138 3.4
Pfizer, Inc....................................... 1,818,787 3.2
Procter & Gamble Co............................... 1,725,300 3.1
Kerr-McGee Corp................................... 1,626,188 2.9
----------- -------
$21,344,022 38.2%
----------- -------
----------- -------
INVESTMENT RESULTS For Periods Ended October 31, 1995 (unaudited)
Average Annual Total Return
---------------------------
Winthrop Growth and Winthrop Growth
Year Income Fund S&P 500 and Income Fund S&P 500
- ---- -------------------------- ------- --------------- -------
12/86 $10,000 $10,000 1 Year .. 12.21% 26.43%
10/87 9,650 10,433 3 Year .. 10.15% 14.71%
10/88 10,781 11,978 5 Year .. 12.65% 17.24%
10/89 13,123 15,138 From inception
10/90 11,673 14,006 12/86 .. 8.82% 13.61%
10/91 15,141 18,700
10/92 15,846 20,560
10/93 18,121 23,632
10/94 18,873 24,544
19/95 21,178 31,031
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains, but the returns
calculated above have been computed after deduction of all fund expenses
including advisory fees. If investors redeem shares, they may be subject to
a contingent deferred sales charge as follows: 4% in year 1, 3% in year 2,
2% in year 3 and 1% in year 4, which would reduce total return shown above.
<PAGE>
FOCUS FUND HIGHLIGHTS
WINTHROP GROWTH AND INCOME FUND
PORTFOLIO CHANGES For the Six Months Ended October 31, 1995
(unaudited)
MAJOR PURCHASES MAJOR SALES
Dun & Bradstreet Corp.(1) Federal Home Loan Mortgage. Corp.(2)
Federated Department Stores, Inc.(1) Guinness PLC ADRs
ITT Corp.(1) Meyer (Fred), Inc.(2)
Motorola, Inc.(1) Pepsico, Inc.
Pfizer, Inc.(1) United States Treasury Notes(2)
Republic New York Corp.(1) 5.875%, 02/15/04
United Technologies Corp.(1) United States Treasury Strips(2)
Western Atlas, Inc.(1) 0.000%, 05/15/04
(1) New Holdings (2) Deletions
TEN LARGEST EQUITY HOLDINGS October 31, 1995 (unaudited)
PERCENT
VALUE OF FUND
----------- -------
Loews Corp........................................ $ 3,225,750 3.7%
American International Group, Inc................. 2,683,125 3.1
First Bank System, Inc............................ 2,663,217 3.0
Amoco Corp........................................ 2,555,000 2.9
Federal National Mortgage Assn.................... 2,349,200 2.7
Cellular Communications, Inc. Cl. A............... 2,305,875 2.6
Gillette Co....................................... 2,128,500 2.4
Procter & Gamble Co............................... 2,106,000 2.4
Wells Fargo & Co.................................. 1,933,150 2.2
Loral Corp........................................ 1,860,450 2.1
----------- -------
$23,810,267 27.1%
----------- -------
----------- -------
INVESTMENT RESULTS For Years Ended October 31, 1995 (unaudited)
Average Annual Total Return
---------------------------
Winthrop Growth and Winthrop Growth
Year Income Fund S&P 500 and Income Fund S&P 500
- ---- ------------------------------- ------- --------------- -------
1985 $10,000 $10,000 1 Year .. 16.10% 26.43%
1986 12,770 13,320 3 Year .. 12.40% 14.71%
1987 12,078 14,174 5 Year .. 14.05% 17.24%
1988 13,760 16,272 10 Year .. 11.52% 15.47%
1989 16,727 20,566
1990 15,424 19,027
1991 19,564 25,403
1992 20,963 27,931
1993 24,512 32,104
1994 25,634 33,343
1995 29,761 42,156
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains, but the returns
calculated above have been computed after deduction of all fund expenses
including advisory fees. If investors redeem shares, they may be subject to
a contingent deferred sales charge as follows: 4% in year 1, 3% in year 2,
2% in year 3 and 1% in year 4, which would reduce total return shown above.
<PAGE>
FOCUS FUND HIGHLIGHTS
WINTHROP AGGRESSIVE GROWTH FUND
PORTFOLIO CHANGES For the Six Months Ended October 31, 1995
(unaudited)
MAJOR PURCHASES MAJOR SALES
Advo System, Inc.(1) Augat, Inc.
Anthony Industries, Inc.(1) Baybanks, Inc.
Belden, Inc.(1) Devon Group, Inc.(2)
Brady (W.H.) Cl. A(1) First Security Corp.(2)
First Commerce Corp.(1) Fisher Scientific International,
Hartford Steam Boiler Insp. & Ins. Co.(1) Inc.(2)
Lee Enterprises, Inc.(1) Invacare Corp.
Marcus Corp.(1) Regions Financial Corp.(2)
(1) New Holdings Wallace Computer Services, Inc.
(2) Deletions
TEN LARGEST HOLDINGS October 31, 1995 (unaudited)
PERCENT
VALUE OF FUND
----------- -------
Lydall, Inc. ..................................... $ 4,939,025 2.4%
Teleflex, Inc. ................................... 4,364,625 2.2
Carlisle Companies, Inc. ......................... 4,314,013 2.1
First American Corp. of Tennessee................. 4,295,363 2.1
Beckman Instruments, Inc. ........................ 3,981,625 2.0
American Business Products, Inc. ................. 3,828,125 1.9
M.A. Hanna Co. ................................... 3,818,125 1.9
Methode Electronics, Inc. Cl. A................... 3,705,300 1.8
Unitog Co. ....................................... 3,583,750 1.8
Applied Power, Inc. Cl. A......................... 3,526,537 1.7
----------- -------
$40,356,488 19.9%
----------- -------
----------- -------
INVESTMENT RESULTS For Years Ended October 31, 1995 (unaudited)
Average Annual Total Return
Winthrop Aggressive Winthrop Aggressive
Year Growth Fund Russell 2000 Growth Fund Russell 2000
- ---- ------------------- ------------ ---------------- ------------
1985 $10,000 $10,000 1 Year .. 11.10% 18.33%
1986 12,646 12,226 3 Years.. 13.38% 16.02%
1987 10,740 10,555 5 Years.. 21.66% 22.08%
1988 14,032 13,418 10 Years.. 13.39% 11.82%
1989 16,293 15,506
1990 13,181 11,273
1991 19,977 17,878
1992 24,104 19,574
1993 30,212 25,916
1994 31,624 25,836
1995 35,135 30,572
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains, but the returns
calculated above have been computed after deduction of all fund expenses
including advisory fees. If investors redeem shares, they may be subject to
a contingent deferred sales charge as follows: 4% in year 1, 3% in year 2,
2% in year 3 and 1% in year 4, which would reduce total return shown above.
<PAGE>
FOCUS FUND HIGHLIGHTS
WINTHROP FIXED INCOME FUND
PORTFOLIO CHANGES For the Six Months Ended October 31, 1995
(unaudited)
MAJOR PURCHASES MAJOR SALES
American General Corp. Dresser Industries(2)
7.750%, 04/01/05 6.250%, 06/01/00
Federal National Mortgage Assn.(1) Fleet Financial Group(2)
7.417%, 12/01/21 7.125%, 05/01/00
Province of Ontario Canada(1) General Motors Acceptance Corp.(2)
7.750%, 06/04/02 8.625%, 06/15/99
United States Treasury Notes United States Treasury Notes
7.500%, 10/31/99 6.375%, 08/15/02
United States Treasury Notes(1) United States Treasury Notes
6.250%, 08/31/00 6.250%, 02/15/03
(1) New Holdings (2) Deletions
PORTFOLIO CHARACTERISTICS October 31, 1995* (unaudited)
30 DAY YIELD: 5.34% AVERAGE COUPON: 7.56%+
AVERAGE RATING: AAA AVERAGE DURATION: 4.0 YEARS
AVERAGE YEARS TO MATURITY: 6.2 YEARS
* Weighted Averages
+ Exclusive of U.S. Treasury Bills and Commercial Paper
INVESTMENT RESULTS For Periods Ended October 31, 1995 (unaudited)
Average Annual Total Return
------------------------------------
Winthrop Lehman Bros. Gov't Lehman Bros. Gov't
Fix Income Corp. Intermediate Winthrop Fixed Corp. Intermediate
Year Fund Bond Index Income Fund Bond Index
- ---- ----------- ------------------- --------------- ----------------
12/86 $10,000 $10,000 1 Year .. 12.22% 12.52%
10/87 9,788 10,194 3 Year .. 6.25% 6.65%
10/88 10,891 11,144 5 Year .. 8.57% 8.72%
10/89 12,134 12,318 From inception
10/90 13,000 13,228 12/86 .. 7.92% 8.22%
10/91 14,810 15,058
10/92 16,346 16,564
10/93 18,272 18,209
10/94 17,474 17,859
19/95 19,608 20,094
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains, but the returns
calculated above have been computed after deduction of all fund expenses
including advisory fees. If investors redeem shares, they may be subject to
a contingent deferred sales charge as follows: 4% in year 1, 3% in year 2,
2% in year 3 and 1% in year 4, which would reduce total return shown above.
<PAGE>
FOCUS FUND HIGHLIGHTS
WINTHROP MUNICIPAL TRUST FUND
PORTFOLIO CHANGES For the Six Months Ended October 31, 1995
(unaudited)
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
Chicago, IL Met. Wtr. Reclamation Dist.(1) Metropolitan Government Tennessee(2)
5.750%, 12/01/01 5.000%, 05/15/05
Indiana Univ. Rev. Student Fee Ser. K(1) Minnesota State General
6.500%, 08/01/05 Obligation(2)
Iowa Student Loan Liquidation Corp.(1) 5.700%, 08/01/02
6.800%, 03/01/05 North Carolina State Capital
Missouri State Envt. Imp. & Energy Improvement(2)
Resources(1) 4.700%, 02/01/01
5.250%, 01/01/05 Seattle, Washington Met. Sewer Ref.
University Medicine & Dentistry NJ Ser. E(1) Ser. Z(2)
6.400%, 12/01/07 4.800%, 01/01/03
Tarrant County, Texas Water
Control/Import(2)
6.000%, 03/01/10
(1) New Holdings (2) Deletions
</TABLE>
PORTFOLIO CHARACTERISTICS October 31, 1995* (unaudited)
<TABLE>
<S> <C>
30 DAY YIELD: 3.71% AVERAGE COUPON: 5.99%+
AVERAGE RATING: AA AVERAGE DURATION: 5.2 YEARS
AVERAGE YEARS TO MATURITY: 6.6 YEARS
* Weighted Averages
+ Exclusive of Commercial Paper
</TABLE>
INVESTMENT RESULTS For Periods Ended October 31, 1995 (unaudited)
<TABLE><CAPTION>
Average Annual Total Return
---------------------------
Winthrop Municipal Lipper Intermediate Winthrop Municipal Lipper Intermediate
Year Trust Fund Municipal Fund Index Trust Fund Municipal Fund Index
- ---- ------------------ -------------------- ------------------- --------------------
<S> <C> <C> <C> <C>
7/93 $10,000 $10,000 1 Year .. 10.06% 10.03%
10/93 10,183 10,310
10/94 9,952 10,050 From Inception
10/95 10,953 11,058 7/93 ..... 4.12 4.57
</TABLE>
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains, but the returns
calculated above have been computed after deduction of all fund expenses
including advisory fees. If investors redeem shares, they may be subject to
a contingent deferred sales charge as follows: 4% in year 1, 3% in year 2,
2% in year 3 and 1% in year 4, which would reduce total return shown above.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS October 31, 1995
- --------------------------------------------------------------------------------
WINTHROP GROWTH FUND
COMMON STOCKS--95.6%
BASIC MATERIALS--5.8% SHARES VALUE
---------- -----------
CHEMICALS-2.8%
Air Products & Chemicals,
Inc...................... 2,000 $ 103,250
Industrial gases,
equipment, chemicals
Dow Chemical Co. ........ 21,300 1,461,712
-----------
Chemicals, metals,
plastics, packaging......
1,564,962
-----------
METALS & MINING-1.4%
Aluminum Company of
America.................... 6,400 326,400
Leading U.S. aluminum
producer
Barrick Gold Corp.......... 19,500 450,938
-----------
Gold production in
U.S./Canada
777,338
-----------
PAPER-1.6%
Mead Corp.................. 16,100 927,762
-----------
Manufacturer of paper,
lumber & wood products
3,270,062
-----------
CAPITAL GOODS--8.1%
AEROSPACE-2.2%
Loral Corp................. 40,800 1,208,700
-----------
Military electronic
systems
BUILDING &
CONSTRUCTION-0.5%
Fluor Corp................. 4,700 265,550
-----------
Engineering and
construction with coal,
lead
ELECTRICAL EQUIPMENT-1.3%
Emerson Electric Co........ 10,200 726,750
-----------
Manufacturer of
electric/electronic
products
ENVIRONMENTAL CONTROL-0.5%
Browning Ferris Industries,
Inc....................... 10,000 291,250
-----------
Solid & liquid waste
management service
MACHINERY-3.6%
Deere & Co................. 14,300 1,278,062
Largest manufacturer of
farm equipment:
construction machinery
Ingersoll-Rand Co.......... 21,300 753,488
-----------
Standard machinery,
equipment: bearings, tools
2,031,550
-----------
4,523,800
-----------
CONSUMER CYCLICAL--13.0%
APPAREL/TEXTILE-1.0%
V F Corp................... 12,000 574,500
-----------
Apparel manufacturer
AUTO & TRUCKS-1.2%
General Motors Corp........ 15,000 656,250
-----------
Largest manufacturer of
automotive products
AUTO RELATED-1.6%
Echlin, Inc................ 18,800 672,100
Auto electronics, brake
replacement parts
Goodyear Tire & Rubber
Co........................ 6,400 243,200
-----------
Manufacturer of tires &
rubber products
915,300
-----------
SHARES VALUE
---------- -----------
HOUSEHOLD
FURNITURE/APPLIANCES-0.5%
Singer Co. N.V............. 12,000 $ 282,000
-----------
Manufacturer of sewing
machines/electrical
products
LEISURE RELATED-2.7%
Capital Cities/ABC, Inc.... 11,500 1,364,188
Radio/TV broadcasting and
publishing
Hasbro, Inc................ 5,000 152,500
-----------
Manufacturer of toys &
games 1,516,688
-----------
PHOTO & OPTICAL-1.0%
Eastman Kodak Co........... 9,200 576,150
-----------
Photograph apparatus,
chemicals
PRINTING & PUBLISHING-0.9%
Belo (A.H.) Corp........... 6,000 207,750
Newspaper publishing:
broadcasting Gannett Co. . 5,000 271,875
-----------
Newspapers: TV/radio:
advertising 479,625
-----------
RETAIL-GENERAL-4.1%
May Department Stores
Co........................ 24,800 973,400
Large department store
chain
Sears Roebuck & Co......... 39,000 1,326,000
-----------
Large retailer of general
merchandise: insurance
2,299,400
-----------
7,299,913
-----------
CONSUMER STAPLES--22.0%
BEVERAGES-5.1%
Pepsico, Inc............... 54,100 2,853,775
-----------
Provides soft drinks/food
services
DRUGS-6.9%
Pfizer, Inc................ 31,700 1,818,787
Healthcare, consumer
products, special
chemicals
Schering-Plough Corp....... 38,200 2,048,475
-----------
Pharmaceutical/consumer
products
3,867,262
-----------
FOODS-3.0%
Campbell Soup Co........... 16,700 874,663
Canned soup & other foods
ConAgra, Inc............... 21,000 811,125
-----------
Prepared foods:
agricultural products
1,685,788
-----------
HOSPITAL SUPPLIES &
SERVICES-3.1%
Columbia/HCA Healthcare
Corp...................... 29,600 1,454,100
Health care
facilities/services
Health Management
Association Cl. A*........ 13,000 279,500
-----------
Operates acute care
hospitals
1,733,600
-----------
RETAIL-FOOD-0.8%
Safeway, Inc.*............. 10,000 472,500
-----------
Food supermarket chain
SOAPS & TOILETRIES-3.1%
Procter & Gamble Co........ 21,300 1,725,300
-----------
Household, personal care,
food products
12,338,225
-----------
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS October 31, 1995 (continued)
- --------------------------------------------------------------------------------
WINTHROP GROWTH FUND
SHARES VALUE
---------- -----------
ENERGY--10.5%
OIL-DOMESTIC-5.2%
Amoco Corp................. 17,000 $ 1,085,875
Domestic integrated oil
Kerr-McGee Corp............ 29,500 1,626,188
Petroleum, chemicals, coal
Unocal Corp................ 7,800 204,750
-----------
Holding co.; integrated
domestic oil
2,916,813
-----------
OIL-INTERNATIONAL-5.3%
Exxon Corp................. 38,400 2,932,800
-----------
World's leading oil
company
5,849,613
-----------
FINANCIAL--12.0%
BANKING-6.9%
First Bank System, Inc..... 39,400 1,960,150
Comm. banking: MN and
Upper Midwest
Wells Fargo & Co........... 9,100 1,912,138
-----------
Commercial banking: CA
3,872,288
-----------
FINANCIAL SERVICES-3.1%
Capital One Financial...... 14,100 345,450
Bank card issuer/services
Federal Home Loan Mortgage
Corp...................... 20,200 1,398,850
-----------
Provides residential
mortgage funds
1,744,300
-----------
INSURANCE-2.0%
American International
Group, Inc................. 12,900 1,088,437
-----------
International insurance
holding company
6,705,025
TECHNOLOGY--18.4%
ELECTRONICS-3.2%
Intel Corp................. 4,500 314,438
Semiconductor memory
circuits
Molex, Inc................. 10,000 330,000
Terminals, connectors,
switches
Motorola, Inc.............. 9,000 590,625
Semiconductors:
communication equipment
National Semiconductor
Corp.*.................... 23,000 560,625
-----------
Integrated circuits &
transistors
1,795,688
-----------
OFFICE
EQUIPMENT/SERVICE-6.6%
Cisco Systems, Inc.*....... 5,900 457,250
Manufacturer of computer
network products
Compaq Computer Corp.*..... 27,000 1,505,250
Portable personal
computers
Microsoft Corp.*........... 10,000 1,000,000
Software for
microcomputers
Oracle Systems Corp.*...... 16,500 719,812
-----------
Markets database
management software
3,682,312
-----------
SHARES VALUE
---------- -----------
TELECOMMUNICATIONS-8.6%
Cellular Communications,
Inc. Cl. A*............... 47,575 $ 2,551,209
U.S. non-wireline cellular
licensee
MCI Communications Corp.... 76,800 1,915,200
Telecommunications
network, services
WorldCom, Inc.*............ 10,000 326,250
-----------
Long distance
telecommunication services 4,792,659
-----------
10,270,659
-----------
TRANSPORT & SERVICE--1.7%
AIRLINES-0.4%
Delta Air Lines, Inc....... 3,600 236,250
-----------
Domestic & international
air service
RAILROADS-1.3%
CSX Corp................... 8,300 695,125
-----------
Railroad, oil/gas,
trucking, mining
931,375
-----------
MISCELLANEOUS--4.1%
DIVERSIFIED-4.1%
ITT Corp................... 6,700 820,750
Diversified international
concern
Loews Corp................. 10,000 1,466,250
-----------
Tobacco; hotels; insurance
subsidiary
2,287,000
-----------
TOTAL COMMON STOCKS
(cost $43,733,912)........ 53,475,672
-----------
PRINCIPAL
AMOUNT
----------
COMMERCIAL PAPER--3.0%
Ford Motor Credit Corp.
5.710%, 11/03/95.......... $ 380,000 379,879
Ford Motor Credit Corp.
5.730%, 11/06/95.......... 360,000 359,714
Ford Motor Credit Corp.
5.720%, 11/07/95.......... 540,000 539,485
General Electric Capital
Corp.
5.700%, 11/10/95.......... 185,000 184,736
General Electric Capital
Corp.
5.720%, 11/14/95.......... 230,000 229,525
-----------
TOTAL COMMERCIAL PAPER
(amortized cost
$1,693,339)................ 1,693,339
-----------
TOTAL INVESTMENTS--98.6%
(cost $45,427,251)........ 55,169,011
-----------
CASH AND OTHER ASSETS
NET OF
LIABILITIES--1.4%.......... 777,139
-----------
NET ASSETS--100%........... $55,946,150
===========
* Non-income producing
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS October 31, 1995
- --------------------------------------------------------------------------------
WINTHROP GROWTH AND INCOME FUND
COMMON STOCKS--87.7%
BASIC MATERIALS--7.5% SHARES VALUE
---------- -----------
CHEMICALS-3.0%
Crompton & Knowles
Corp. ..................... 66,700 $ 842,088
Special chemicals,
industry machinery
Dupont (E.I.) De Nemours &
Co. ...................... 19,800 1,235,025
Large chemical co: oil &
gas
Monsanto Co. .............. 5,000 523,750
-----------
Major chemical producer
2,600,863
-----------
OIL & GAS-4.5%
Amoco Corp. ............... 40,000 2,555,000
Integrated domestic oil
Dorchester Hugoton,
Ltd. ...................... 25,500 312,375
U.S. natural gas reserves
San Juan Basin Royalty
Trust..................... 180,000 1,102,500
-----------
Royalty gas interest in
New Mexico
3,969,875
-----------
6,570,738
-----------
CAPITAL GOODS/
CONSTRUCTION--6.4%
AEROSPACE-4.1%
Loral Corp. ............... 62,800 1,860,450
Military electronic
systems
United Technologies
Corp. .................... 19,500 1,730,625
-----------
Aerospace, climate control
systems
3,591,075
-----------
BUILDING &
CONSTRUCTION-0.2%
RPM, Inc. Ohio............. 10,000 193,750
-----------
Protective coatings
ELECTRICAL EQUIPMENT-1.6%
Premier Industrial
Corp. .................... 56,500 1,405,438
-----------
Electronics and industrial
distribution
ENVIRONMENTAL CONTROL-0.5%
Wheelabrator Tech.,
Inc. ..................... 29,000 416,875
-----------
Converting refuse into
energy
5,607,138
-----------
CONSUMER PRODUCTS
& SERVICES--31.2%
AUTO-0.4%
Armor All Products
Corp. .................... 22,000 363,000
-----------
Produces auto cleaners and
protectants
BEVERAGES & TOBACCO-7.1%
American Brands, Inc. ..... 10,000 428,750
Tobacco, life insurance
Guinness PLC ADRs.......... 18,100 724,000
Distiller, brewer and
distributor of distilled
spirits and malt beverages
Panamerican Beverages, Inc.
Cl. A...................... 27,900 763,762
Soft drink bottler, Latin
America
Pepsico, Inc. ............. 31,000 1,635,250
Provides soft drinks/food
services
Philip Morris Cos.,
Inc. ..................... 9,000 760,500
Tobacco, brewing, soft
drinks
RJR Nabisco Holdings
Corp. .................... 33,000 1,014,750
Manufactures tobacco and
food products
UST, Inc. ................. 30,000 900,000
-----------
Snuff, tobacco, wine,
spirits
6,227,012
-----------
SHARES VALUE
---------- -----------
CONTAINERS-0.7%
Bemis Co................... 24,000 $ 624,000
-----------
Packaging/adhesive
products
DRUGS-3.5%
Pfizer, Inc. .............. 30,700 1,761,412
Healthcare consumer
products, special
chemicals
Schering-Plough Corp. ..... 24,100 1,292,362
-----------
Pharmaceutical/consumer
products
3,053,774
-----------
FOODS-0.5%
Archer-Daniels-Midland
Co. ...................... 28,100 453,113
-----------
Process soybeans: flour
mills
HOSPITAL SUPPLIES &
SERVICES-2.5%
Caremark International,
Inc....................... 58,500 1,206,562
Alternate site healthcare
services
Columbia/HCA Healthcare
Corp. .................... 20,000 982,500
-----------
Health care
facilities/services
2,189,062
-----------
LEISURE-3.9%
Capital Cities/ABC,
Inc. ...................... 15,000 1,779,375
Radio/TV broadcasting and
publishing
Cedar Fair L.P. ........... 45,000 1,417,500
Owns and operates
amusement parks
Jostens, Inc. ............. 10,000 226,250
-----------
School class rings,
yearbooks
3,423,125
-----------
PRINTING & PUBLISHING-4.5%
Commerce Clearing House,
Inc. Cl. A................. 11,000 255,750
Tax & business law reports
Commerce Clearing House,
Inc. Cl. B................. 13,000 299,000
Tax & business law reports
Donnelley (R.R.) & Sons,
Inc. ...................... 48,700 1,777,550
Large commercial printer
Dun & Bradstreet Corp. .... 27,000 1,613,250
-----------
Business information:
publishing: marketing: TV
3,945,550
-----------
RETAIL-FOOD & DRUGS-1.8%
Walgreen Co. .............. 54,800 1,561,800
-----------
Major retail drug chain
RETAIL-GENERAL-1.5%
Federated Department
Stores, Inc.*.............. 54,000 1,370,250
-----------
Operates department stores
in U.S.
SOAPS & TOILETRIES-4.8%
Gillette Co. .............. 44,000 2,128,500
Shaving, personal care
products
Procter & Gamble Co. ...... 26,000 2,106,000
-----------
Household, personal care,
food products
4,234,500
-----------
27,445,186
-----------
ENERGY--1.7%
OIL-SUPPLIES &
CONSTRUCTION-1.7%
Western Atlas, Inc.*....... 34,000 1,491,750
-----------
Oilfield information
service/automation system
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS October 31, 1995 (continued)
- --------------------------------------------------------------------------------
WINTHROP GROWTH AND INCOME FUND
SHARES VALUE
---------- -----------
FINANCIAL--15.2%
BANKING-8.7%
First Bank System, Inc. ... 53,532 $ 2,663,217
Commercial banking: MN and
Upper Midwest
Mellon Bank Corp. ......... 20,000 1,002,500
Commercial banking: PA
Regions Financial Corp. ... 12,000 478,500
Commercial banking: AL
Republic New York Corp. ... 26,100 1,530,113
Commercial banking: NY &
worldwide
Wells Fargo & Co. ......... 9,200 1,933,150
-----------
Commercial banking: CA
7,607,480
-----------
INSURANCE-3.8%
American International
Group, Inc. ............... 31,800 2,683,125
International insurance
holding company
Hartford Steam Boiler
Insp. & Ins. Co. ......... 15,000 699,375
-----------
Insurance/engineering
services
3,382,500
-----------
OTHER-2.7%
Federal National Mortgage
Assn. ..................... 22,400 2,349,200
-----------
Provides residential
mortgage funds
13,339,180
-----------
PUBLIC UTILITIES--5.4%
ELECTRIC-1.5%
CIPSCO, Inc. .............. 30,200 1,106,075
Holding co.: Central IL
public service
Potomac Electric Power
Co. ...................... 10,000 250,000
-----------
Electric service DC, MD, VA
1,356,075
-----------
GAS-1.8%
Consolidated Natural Gas
Co. ...................... 21,000 798,000
Integrated natural gas
systems
New Jersey Resources
Corp. .................... 31,600 790,000
-----------
Supplies gas in New Jersey
1,588,000
-----------
TELEPHONE-2.1%
GTE Corp. ................. 45,000 1,856,250
-----------
Telephone holding company;
manufacturing
4,800,325
-----------
SCIENCE & TECHNOLOGY--6.3%
ELECTRONICS-1.6%
Motorola, Inc. ............ 22,300 1,463,437
-----------
Semiconductors:
communications equipment
TELECOMMUNICATIONS-4.7%
Cellular Communications,
Inc. Cl. A*................ 43,000 2,305,875
U.S. non-wireline cellular
licensee
International Cabletel,
Inc.*...................... 13,333 353,325
Telecommunications
services
SHARES VALUE
---------- -----------
Vodafone Group ADRs........ 35,326 $ 1,443,950
-----------
British cellular operator
4,103,150
-----------
5,566,587
-----------
TRANSPORT & SERVICE--3.2%
PROFESSIONAL SERVICE-1.4%
United Healthcare Corp. ... 24,000 1,275,000
-----------
Manages health maintenance
services
RAILROADS-1.8%
CSX Corp. ................. 18,500 1,549,375
-----------
Railroad, oil/gas,
trucking, mining
2,824,375
-----------
MISCELLANEOUS--10.8%
DIVERSIFIED-8.0%
Corning, Inc. ............. 30,000 783,750
Specialty material,
communications, consumer
products/services
ITT Corp. ................. 13,600 1,666,000
Diversified international
concern
Loews Corp. ............... 22,000 3,225,750
Tobacco; hotels; insurance
subsidiary
Tyco International Ltd. ... 22,300 1,354,725
-----------
Fire protection systems:
cable, solar
7,030,225
-----------
LIMITED
PARTNERSHIP-TIMBER-2.0%
Plum Creek Timber Co.
L.P. ..................... 73,000 1,752,000
-----------
Lumber and wood products
REAL ESTATE INVESTMENT
TRUST-0.8%
General Growth Properties,
Inc. ..................... 35,000 704,375
-----------
Real estate investment
trust
9,486,600
-----------
TOTAL COMMON STOCKS
(cost $59,687,878)........ 77,131,879
-----------
CONVERTIBLE
PREFERRED STOCK--2.4%
Corning, Inc. Mips, Cv.
Pfd. 6.000%................ 15,000 675,000
Specialty material,
communications, consumer
products/services
RJR Nabisco Holdings Corp.,
Cv. Pfd. ................. 230,000 1,437,500
-----------
Manufactures tobacco and
food products
TOTAL PREFERRED STOCKS
(cost $2,245,000)......... 2,112,500
-----------
PRINCIPAL
CONVERTIBLE BONDS--1.0% AMOUNT
----------
(cost $817,500)
Browning Ferris Ind.,
Inc. ..................... $ 900,000 895,500
-----------
Cv. Sub. Deb. 6.250%,
08/15/12
Solid and liquid waste
mgmt. service
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS October 31, 1995 (continued)
- --------------------------------------------------------------------------------
WINTHROP GROWTH AND INCOME FUND
PRINCIPAL
CORPORATE BONDS--3.7% AMOUNT VALUE
---------- -----------
Xerox Corp., 8.125%,
04/15/02................... $1,000,000 $ 1,091,250
Copiers & duplicators;
services
Ford Motor Credit Co.,
7.750%, 11/15/02........... 1,000,000 1,070,000
Second largest auto maker
Stanley Works, 7.375%,
12/15/02.................. 1,000,000 1,058,750
-----------
Manufacturer of full line
hardware products
TOTAL CORPORATE BONDS
(cost $3,041,613)......... 3,220,000
-----------
U.S. GOVERNMENT AGENCIES--3.6%
Federal Home Loan Bank
7.310%, 06/16/04.......... 1,000,000 1,064,260
Federal National Mortgage
Assn. 7.400%, 07/01/04.... 1,000,000 1,070,410
Federal Home Loan Bank
7.460%, 09/09/04.......... 1,000,000 1,077,700
-----------
TOTAL U.S. GOVERNMENT
AGENCIES
(cost $2,944,463)......... 3,212,370
-----------
PRINCIPAL
COMMERCIAL PAPER--3.8% AMOUNT VALUE
---------- -----------
Ford Motor Credit Corp.
5.760%,
11/03/95.................. $ 640,000 $ 639,795
General Electric Capital
Corp.
5.740%, 11/06/95.......... 910,000 909,274
Ford Motor Credit Corp.
5.750%, 11/07/95.......... 1,813,000 1,811,263
-----------
TOTAL COMMERCIAL PAPER
(amortized cost
$3,360,332)............... 3,360,332
-----------
TOTAL INVESTMENTS--102.2%
(cost $72,096,786)........ 89,932,581
-----------
CASH AND OTHER ASSETS
NET OF
LIABILITIES-(2.2%)......... (1,957,678)
-----------
NET ASSETS--100.0%......... $87,974,903
===========
* Non-income producing
- --------------------------------------------------------------------------------
WINTHROP AGGRESSIVE GROWTH FUND
COMMON STOCKS--98.8%
BASIC MATERIALS--4.9% SHARES VALUE
---------- ------------
CHEMICALS-4.9%
Crompton & Knowles
Corp..................... 141,500 $ 1,786,438
Special chemicals,
industrial machinery
Furon Co................. 101,200 1,568,600
Manufacturer of
non-metallic industrial
products
LeaRonal, Inc............. 110,600 2,516,150
Electroplating process
M.A. Hanna Co............. 149,000 3,818,125
Special chemicals,
polymers
O'Sullivan Corp. ......... 28,200 306,675
-----------
Manufacturer molded
plastic products
9,995,988
-----------
CAPITAL GOODS/
CONSTRUCTION--25.0%
AEROSPACE-2.9%
Teleflex, Inc. ........... 103,000 4,364,625
Aerospace controls;
medical products
Whittaker Corp.* ......... 71,600 1,423,050
-----------
Aerospace: fluid
control/electric systems
5,787,675
-----------
BUILDING &
CONSTRUCTION-13.0%
Applied Power, Inc.
Cl. A.................... 116,100 3,526,537
Manufactures hydraulic
industrial/construction
equipment materials
Carlisle Companies,
Inc. .................... 104,900 4,314,013
Manufactures rubber,
plastic, metal products
Clarcor, Inc. ............ 131,050 2,981,387
Manufactures
filtration/consumer
products
ESSEF Corp.*.............. 92,700 1,691,775
Manufactures reinforced
plastic products
SHARES VALUE
---------- ------------
Lydall, Inc.*............. 217,100 $ 4,939,025
Engineered fiber
materials
Osmonics, Inc.*........... 176,000 2,992,000
Reverse
osmosis/ultrafiltration
Regal Beloit Corp. ....... 187,700 3,378,600
Manufactures tools and
power transmissions
RPM, Inc., Ohio........... 127,800 2,476,125
-----------
Protective coatings
26,299,462
-----------
ELECTRICAL EQUIPMENT-5.8%
AptarGroup, Inc. ......... 16,600 568,550
Manufacturer of packaging
components: pumps, valves
Bearings, Inc. ........... 58,200 2,109,750
Distributor bearings &
power transmission
Belden, Inc. ............. 105,200 2,537,950
Manufacturer electrical
wire, cable
EG & G, Inc. ............. 91,300 1,700,462
Scientific equipment,
systems & services
Woodhead Industries,
Inc. .................... 226,800 3,231,900
Electrical specialty
products
X-Rite, Inc. ............. 105,400 1,646,875
-----------
Quality control
instruments
11,795,487
-----------
ENVIRONMENTAL CONTROL-1.9%
Donaldson, Inc. .......... 142,500 3,473,438
Engine air cleaners,
mufflers
Harding Associates,
Inc.*.................... 67,300 462,687
-----------
Hazardous waste
consultant services
3,936,125
-----------
MACHINERY-1.4%
Commercial Intertech
Corp..................... 170,050 2,869,594
-----------
Engineers metal
components
50,688,343
-----------
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS October 31, 1995 (continued)
- --------------------------------------------------------------------------------
WINTHROP AGGRESSIVE GROWTH FUND
SHARES VALUE
---------- ------------
CONSUMER CYCLICAL--28.1%
APPAREL/TEXTILE-3.3%
Interface, Inc. Cl. A...... 18,800 $ 284,350
Manufacturer carpet/tile
Oxford Industries, Inc. ... 100,000 1,625,000
Manufactures wearing
apparel
Unitog Co.*................ 152,500 3,583,750
Rent/sell industrial
uniforms
Worldtex, Inc.*............ 228,100 1,254,550
-----------
Manufactures covered
elastic yarn
6,747,650
-----------
AUTO RELATED-6.9%
Amcast Industrial Corp. ... 133,100 2,262,700
Technology--intensive
metal products
Armor All Products
Corp. ..................... 124,000 2,046,000
Produces auto cleaners and
protectants
Augat, Inc. ............... 98,100 1,545,075
Manufactures
electromechanical
components
Donnelly Corp. Cl. A....... 169,600 2,416,800
Manufactures auto glass
products
Modine Manufacturing Co.... 72,900 2,004,750
Auto parts: heating:
air-conditioning
Myers Industries, Inc. .... 174,075 2,502,328
Tire services/plastic
products
R & B, Inc.*............... 20,000 157,500
Markets replacement auto
parts
Thompson PBE, Inc.*........ 62,400 1,138,800
-----------
Distributor auto
paints/supplies
14,073,953
-----------
FOOD SERVICE/LODGING-2.9%
Marcus Corp. .............. 77,100 2,669,587
Hotels: restaurants:
theatres
Sbarro, Inc. .............. 151,800 3,168,825
-----------
Italian fast food
restaurant
5,838,412
-----------
HOUSEHOLD
FURNITURE/APPLIANCE-5.7%
Chromcraft Revington,
Inc.*...................... 115,800 2,779,200
Designs/manufactures
furniture
Crown Crafts, Inc. ........ 129,000 1,644,750
Manufactures home
furnishing products
Ekco Group, Inc. .......... 296,300 1,666,687
Manufactures
kitchen/household products
HON Industries, Inc. ...... 51,500 1,429,125
Manufacturer office
furniture/home building
products
Lechters, Inc.*............ 98,000 906,500
Housewares & kitchen items
Stanhome, Inc. ............ 101,000 3,080,500
-----------
Consumer
products/household items
11,506,762
-----------
LEISURE RELATED-1.5%
Anthony Industries,
Inc. ..................... 163,200 3,039,600
-----------
Snow skis, fish tackle,
industrial products
PHOTO & OPTICAL-0.2%
Holson Burnes Group,
Inc.*..................... 104,500 391,875
-----------
Manufacturer/distributor
of photograph albums
SHARES VALUE
---------- ------------
PRINTING & PUBLISHING-6.3%
Advo System, Inc. ......... 131,000 $ 3,340,500
Direct mail advertising
services
American Business Products,
Inc. ...................... 175,000 3,828,125
Business forms and
supplies
Banta Corp. ............... 63,800 2,759,350
Printing/graphic/video
services
Lee Enterprises, Inc. ..... 68,100 2,715,488
-----------
Newspaper publishing:
radio, TV
12,643,463
-----------
RETAIL-GENERAL-1.3%
Arbor Drugs, Inc. ......... 106,750 1,974,875
Operates drugstores in
Michigan
Burlington Coat Factory
Warehouse Corp.*.......... 65,650 730,356
-----------
Off-price apparel stores
2,705,231
-----------
56,946,946
-----------
CONSUMER STAPLES--12.4%
DRUGS-1.0%
West Co., Inc. ............ 81,700 2,022,075
-----------
Pharmaceutical packaging
FOODS-4.4%
Bob Evans Farms, Inc. ..... 180,000 3,240,000
Sausage
products/restaurants
Flowers Industries,
Inc. ..................... 79,900 1,727,837
Baked, convenience, snack
food
Longhorn Steaks, Inc.*..... 115,000 1,926,250
Operates full-service
restaurants
Sanfilippo (John B. & Son),
Inc....................... 187,500 1,968,750
-----------
Processes/packages/distributes
snacks
8,862,837
-----------
HOSPITAL SUPPLIES &
SERVICES-4.3%
Beckman Instruments,
Inc. ...................... 120,200 3,981,625
Manufactures laboratory
instruments
Invacare Corp. ............ 79,700 2,012,425
Home healthcare medical
equipment
SpaceLabs Medical, Inc.*... 110,400 2,842,800
-----------
Manufactures patient
monitoring products
8,836,850
-----------
RETAIL-FOOD & DRUGS-2.7%
Hannaford Brothers Co...... 133,600 3,490,300
Distributor:
food/supermarkets
Luby's Cafeterias, Inc. ... 97,800 2,029,350
-----------
Cafeteria style
restaurants
5,519,650
-----------
25,241,412
-----------
ENERGY--1.9%
OIL-DOMESTIC-0.3%
Wiser Oil Co............... 55,000 605,000
-----------
Exploration and production
of oil and gas in fifteen
states
OIL-SUPPLIES &
CONSTRUCTION-1.6%
Tidewater, Inc. ........... 128,000 3,376,000
-----------
Offshore service vessels
3,981,000
-----------
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS October 31, 1995 (continued)
- --------------------------------------------------------------------------------
WINTHROP AGGRESSIVE GROWTH FUND
SHARES VALUE
---------- ------------
FINANCIAL--9.7%
BANKS-5.8%
Baybanks, Inc.............. 20,700 $ 1,676,700
Commercial banking: MA
First American Corp. of
Tennessee.................. 97,900 4,295,363
Commercial banking: TN
First Commerce Corp........ 92,800 2,876,800
Commercial banking: LA, MS
FirstMerit Corp. .......... 105,000 2,835,000
------------
Commercial banking: OH
11,683,863
------------
INSURANCE-3.9%
Hartford Steam Boiler Insp.
& Ins. Co. ................ 65,700 3,063,263
Insurance/engineering
services
HCC Insurance Holdings,
Inc.*..................... 96,700 3,360,325
Underwrites property &
casualty insurance
Poe & Brown, Inc. ......... 60,400 1,472,250
------------
General insurance agency
7,895,838
------------
19,579,701
------------
PUBLIC UTILITIES--0.7%
GAS-0.7%
WICOR, Inc. ............... 47,250 1,399,781
------------
Utility holding: Wisconsin
gas
TECHNOLOGY--9.0%
ELECTRONICS-4.3%
DH Technology, Inc.*....... 93,700 1,850,575
Manufactures dot matrix
printheads
Methode Electronics, Inc.
Cl. A...................... 161,100 3,705,300
Electronic component
devices
Pioneer Standard
Electronics, Inc. ......... 234,450 3,252,994
------------
Distributor: electronic
components
8,808,869
------------
OFFICE EQUIPMENT-4.2%
Hunt Manufacturing
Corp. ..................... 190,700 3,337,250
Manufactures & distributes
office and art products
Wallace Computer Services,
Inc. ...................... 31,450 1,772,994
Business forms: commercial
printing
Zero Corp. ................ 219,000 3,339,750
------------
Electronics enclosures
8,449,994
-----------
TELECOMMUNICATIONS-0.5%
Cellular Communications,
Inc. Cl. A*................ 18,000 965,250
------------
U.S. non-wireline cellular
licensee
18,224,113
------------
SHARES VALUE
---------- ------------
TRANSPORT & SERVICE--5.8%
PROFESSIONAL SERVICES-3.8%
CDI Corp.*................. 133,400 $ 1,967,650
Engineering & technical
services
Interim Services, Inc.*.... 72,700 2,162,825
Temporary help services
Jacobs Engineering Group,
Inc.*...................... 45,050 985,469
Full service engineering
organization
Rollins, Inc............... 123,500 2,593,500
------------
Protective services/pest
control
7,709,444
-----------
TRUCKING & SHIPPING-2.0%
Wabash National Corp. ..... 37,200 943,950
Manufacturer/market truck
trailers
Werner Enterprises,
Inc. ..................... 162,100 3,039,375
------------
Motor carrier: general
freight
3,983,325
------------
11,692,769
------------
MISCELLANEOUS--1.3%
DIVERSIFIED-1.3%
Brady (W.H.) Cl. A......... 35,900 2,602,750
------------
Manufactures adhesives &
coatings
TOTAL COMMON STOCKS
(cost $177,703,439)....... 200,352,803
------------
PRINCIPAL
AMOUNT
----------
COMMERCIAL PAPER--1.0%
General Electric Capital
Corp.
5.600%, 11/02/95.......... $1,510,000 1,509,765
Ford Motor Credit Corp.
5.750%, 11/06/95.......... 460,000 459,633
------------
TOTAL COMMERCIAL PAPER
(amortized cost
$1,969,398)............... 1,969,398
------------
TOTAL INVESTMENTS--99.8%
(cost $179,672,837)....... 202,322,201
------------
CASH AND OTHER ASSETS NET OF LIABILITIES-
NET OF LIABILITIES-0.2%... 407,428
------------
NET ASSETS--100.0%......... $202,729,629
============
* Non-income producing
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS October 31, 1995
- --------------------------------------------------------------------------------
WINTHROP FIXED INCOME FUND
U.S. GOVERNMENT PRINCIPAL
OBLIGATIONS--51.6% AMOUNT VALUE
---------- ------------
United States Treasury
Bills
5.330%, 03/07/96.......... $1,500,000 $ 1,471,901
United States Treasury
Notes
8.625%, 08/15/97.......... 750,000 787,867
United States Treasury
Notes
8.875%, 11/15/97.......... 250,000 265,410
United States Treasury
Notes
7.250%, 02/15/98.......... 900,000 930,204
United States Treasury
Notes
7.875%, 04/15/98.......... 950,000 997,566
United States Treasury
Notes
9.000%, 05/15/98.......... 500,000 538,960
United States Treasury
Notes
8.250%, 07/15/98.......... 1,000,000 1,063,480
United States Treasury
Notes
9.250%, 08/15/98.......... 500,000 545,230
United States Treasury
Notes
8.000%, 08/15/99.......... 750,000 806,355
United States Treasury
Notes
6.000%, 10/15/99.......... 2,000,000 2,017,380
United States Treasury
Notes
7.500%, 10/31/99.......... 4,000,000 4,242,599
United States Treasury
Notes
7.750%, 01/31/00.......... 2,500,000 2,680,950
United States Treasury
Notes
8.500%, 02/15/00.......... 500,000 550,540
United States Treasury
Notes
6.250%, 08/31/00.......... 2,000,000 2,041,480
United States Treasury
Notes
7.750%, 02/15/01.......... 2,000,000 2,173,300
United States Treasury
Notes
8.000%, 05/15/01.......... 1,400,000 1,541,302
United States Treasury
Notes
7.500%, 11/15/01.......... 2,500,000 2,704,600
United States Treasury
Notes
6.375%, 08/15/02.......... 300,000 308,010
United States Treasury
Notes
7.250%, 05/15/04.......... 1,000,000 1,082,530
United States Treasury
Notes
7.250%, 08/15/04.......... 1,000,000 1,082,870
------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS
(cost $26,914,451)........ 27,832,534
------------
U.S. GOVERNMENT
AGENCIES--25.9%
Federal Home Loan Mortgage
Corp.
7.000%, 07/01/99.......... 1,406,780 1,425,244
Federal National Mortgage
Assn.
8.550%, 08/30/99.......... 400,000 435,532
Federal Home Loan Mortgage
Corp.
8.750%, 10/01/01.......... 76,217 78,433
Tennessee Valley Power
Authority
7.450%, 10/15/01.......... 1,500,000 1,575,000
Federal National Mortgage
Assn.
7.900%, 04/10/02.......... 650,000 665,333
Federal National Mortgage
Assn.
Pool #76368 9.250%,
09/01/03................... 171,938 180,589
Federal National Mortgage
Assn.
Pool #76378 9.250%,
09/01/03................... 294,791 309,622
Federal National Mortgage
Assn.
7.600%, 04/14/04.......... 1,000,000 1,018,840
Federal Home Loan Bank
7.360%, 07/01/04.......... 500,000 535,260
Federal National Mortgage
Assn.
8.250%, 10/12/04.......... 600,000 638,358
Federal Home Loan Mortgage
Corp.
8.800%, 11/17/04.......... 500,000 526,350
Federal National Mortgage
Assn.
8.550%, 12/10/04.......... 1,000,000 1,043,480
PRINCIPAL
AMOUNT VALUE
---------- ------------
Government National
Mortgage Assn.
9.500%, 01/15/10.......... $ 437,898 $ 465,814
Federal Home Loan Mortgage
Corp.
5.000%, 12/15/12.......... 1,000,000 980,680
Federal Home Loan Mortgage
Corp.
10.000%, 04/01/16......... 211,609 229,066
Federal National Mortgage
Assn.
9.000%, 09/01/17.......... 776,805 812,489
Federal Home Loan Mortgage
Corp.
7.779%, 10/01/19.......... 1,262,332 1,298,624
Federal National Mortgage
Assn.
9.000%, 09/01/20.......... 292,498 305,935
Government National
Mortgage Assn.
9.500%, 09/15/20.......... 24,647 26,357
Federal National Mortgage
Assn.
7.417%, 12/01/21.......... 1,392,090 1,419,062
------------
TOTAL U.S. GOVERNMENT
AGENCIES
(cost $13,740,479)........ 13,970,068
------------
CORPORATE BONDS--19.6%
CANADIAN & FOREIGN-4.3%
Province of Ontario Canada
7.750%, 06/04/02.......... 1,500,000 1,606,875
Province of Ontario Canada
7.000%, 08/04/05.......... 700,000 720,125
------------
2,327,000
------------
FINANCIAL-9.8%
First Bank System Floating
Rate
5.763%, 02/05/96.......... 1,000,000 999,886
Nationsbank Corp. Floating
Rate
6.170%, 06/23/99.......... 1,000,000 1,000,000
Ford Motor Credit Co.
7.750%, 11/15/02.......... 350,000 374,500
Household Finance Corp. Sr.
Note
8.000%, 08/01/04.......... 600,000 654,000
American General Corp.
7.750%, 04/01/05.......... 2,050,000 2,208,875
------------
5,237,261
------------
INDUSTRIAL-1.8%
Dupont (E.I.) De Nemours &
Co.
8.500%, 02/15/03.......... 900,000 984,375
------------
PUBLIC UTILITIES-1.9%
Southwestern Bell Telephone
6.250%, 10/15/02.......... 1,000,000 997,500
------------
TRANSPORTATION-1.8%
Union Pacific Corp.
6.000%, 09/01/03.......... 1,000,000 965,000
------------
TOTAL CORPORATE BONDS
(cost $10,384,272)........ 10,511,136
------------
COMMERCIAL PAPER--0.5%
(amortized cost $279,911)
Ford Motor Credit Corp.
5.730%, 11/03/95.......... 280,000 279,911
------------
TOTAL INVESTMENTS--97.6%
(cost $51,319,113)........ 52,593,649
------------
CASH AND OTHER ASSETS
NET OF LIABILITIES-2.4%... 1,291,137
------------
NET ASSETS--100%........... $ 53,884,786
------------
------------
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS October 31, 1995
- --------------------------------------------------------------------------------
WINTHROP MUNICIPAL TRUST FUND
PRINCIPAL
MUNICIPAL BONDS--97.8% AMOUNT VALUE
---------- ------------
ARIZONA-3.7%
Arizona State Wastewater
Management Authority
6.000%, 07/01/00......... $ 600,000 $ 636,750
Arizona State University
Refunding Ser. A
6.500%, 07/01/01......... 750,000 829,687
------------
1,466,437
------------
CALIFORNIA-3.6%
Los Angeles County
California Ser. A
6.750%, 07/01/11......... 1,250,000 1,412,500
------------
GEORGIA-5.9%
Georgia State General Obligation Ser.
B
5.500%, 04/01/99...........1,200,000
1,246,500
De Kalb County, Georgia
Water & Sewer Revenue
5.600%, 10/01/01......... 1,000,000 1,053,750
------------
2,300,250
------------
ILLINOIS-9.5%
Illinois State Toll
Highway Authority
6.850%, 01/01/98......... 500,000 512,050
Chicago, Illinois Met.
Wtr. Reclamation Dist.
5.750%, 12/01/01......... 1,000,000 1,067,500
Chicago, Illinois
5.800%, 01/01/08......... 1,000,000 1,042,500
Chicago, Illinois Met.
Wtr. Reclamation Dist.
6.300%, 12/01/09......... 1,000,000 1,073,750
------------
3,695,800
------------
INDIANA-2.9%
Indiana University Revenue
Student Fee Ser. K
6.500%, 08/01/05......... 1,000,000 1,117,500
------------
IOWA-2.7%
Iowa Student Loan
Liquidation Corp.
6.800%, 03/01/05......... 1,000,000 1,075,000
------------
KENTUCKY-3.6%
Kentucky State Turnpike
Authority
6.500%, 07/01/07......... 1,250,000 1,409,375
------------
MARYLAND-3.1%
Washington Suburban
Sanitary District Water
Supply
6.500%, 11/01/11......... 1,075,000 1,202,656
------------
MASSACHUSETTS-8.0%
Massachusetts State Water
Resources Ser. B
5.700%, 11/01/02......... 1,000,000 1,058,750
Massachusetts Bay Transit
Authority
5.300%, 03/01/04......... 1,000,000 1,036,250
Massachusetts State
Refunding Ser. B
5.500%, 11/01/07......... 1,000,000 1,033,750
------------
3,128,750
------------
MISSOURI-3.5%
Missouri State Environment
Import & Energy Resources
5.250%, 01/01/05......... 1,325,000 1,374,688
------------
NEVADA-2.9%
Nevada Municipal Bond Bank
Project
7.000%, 01/01/04......... 1,000,000 1,143,750
------------
NEW JERSEY-2.8%
University Medicine &
Dentistry
New Jersey Ser. E
6.400%, 12/01/07......... 1,000,000 1,076,430
------------
PRINCIPAL
AMOUNT VALUE
---------- ------------
NEW MEXICO-2.7%
Bernalillo County, New
Mexico
5.800%, 08/01/98......... $1,000,000 $ 1,042,500
------------
NEW YORK-2.9%
New York State Local
Assistance Corp. Ser. B
7.125%, 04/01/03......... 1,000,000 1,130,000
------------
OHIO-7.6%
Columbus, Ohio Sewer
Refunding
6.200%, 06/01/04......... 740,000 812,150
Ohio State Water
Development Authority
Revenue
5.750%, 06/01/04......... 2,000,000 2,140,000
------------
2,952,150
------------
PUERTO RICO-2.6%
Puerto Rico Commonwealth
Refunding
5.100%, 07/01/02......... 1,000,000 1,028,750
------------
SOUTH CAROLINA-2.6%
South Carolina State
Capital Improvement
5.500%, 03/01/98......... 1,000,000 1,031,250
------------
TEXAS-19.9%
University of Texas,
Permanent University
Funding
5.500%, 07/01/99......... 1,000,000 1,047,500
San Antonio, Texas Water
Revenue
6.100%, 05/15/02......... 1,000,000 1,092,500
Houston, Texas Refunding
Ser. C
5.900%, 03/01/03......... 750,000 800,625
Tarrant County, Texas
Junior College
District Refunding Ser. A
6.375%, 02/15/04......... 1,500,000 1,629,375
Eanes, Texas Independent
School District Refunding
6.500%, 08/01/04......... 1,000,000 1,068,750
Dallas, Texas
5.500%, 02/15/08......... 1,000,000 1,028,750
Texas State Refunding Ser.
A
6.000%, 10/01/08......... 1,000,000 1,096,250
------------
7,763,750
------------
VIRGINIA-2.6%
Arlington County
5.250%, 08/01/98......... 1,000,000 1,030,000
------------
WASHINGTON-4.7%
King County, Washington
School District #401
5.000%, 12/01/01......... 750,000 764,062
Tacoma, Washington
Electric System Revenue
Ser. B
6.000%, 01/01/06......... 1,000,000 1,067,500
------------
1,831,562
------------
TOTAL MUNICIPAL BONDS
(cost $37,308,075)....... 38,213,098
------------
TOTAL INVESTMENTS--97.8%
(cost $37,308,075)....... 38,213,098
------------
CASH AND OTHER ASSETS
NET OF
LIABILITIES--2.2%......... 845,680
------------
NET ASSETS--100%.......... $ 39,058,778
============
See notes to financial statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES October 31, 1995
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
GROWTH AND AGGRESSIVE FIXED MUNICIPAL
GROWTH FUND INCOME FUND GROWTH FUND INCOME FUND TRUST FUND
----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at
value (cost $45,427,251,
$72,096,786, $179,672,837,
$51,319,113 and $37,308,075
respectively)............... $55,169,011 $89,932,581 $202,322,201 $52,593,649 $38,213,098
Cash............................ 25,860 23,055 63,668 138,418 65,715
Receivable for investment
securities sold............... 2,230,996 -- 1,478,636 2,011,397 1,607,663
Receivable for capital stock
sold.......................... 533,873 323,771 1,848,426 1,583,102 106,000
Dividends and interest
receivable.................... 31,782 285,016 54,840 697,387 702,176
Reimbursement due from
advisor....................... -- -- -- 26,399 22,994
Deferred organization costs
(Note A)...................... -- -- -- -- 58,092
----------- ----------- ------------ ----------- -----------
Total assets................ 57,991,522 90,564,423 205,767,771 57,050,352 40,775,738
----------- ----------- ------------ ----------- -----------
LIABILITIES:
Payable to investment advisor... 35,600 53,250 139,827 -- 59,891
Payable for investment
securities purchased.......... 1,780,860 2,090,757 2,032,769 3,013,768 1,103,452
Payable for capital stock
redeemed...................... 50,000 213,880 589,624 75,321 523,192
Dividend payable................ -- -- -- 75,999 30,425
Accrued expenses and other
liabilities................... 178,912 231,633 275,922 478 --
----------- ----------- ------------ ----------- -----------
Total liabilities........... 2,045,372 2,589,520 3,038,142 3,165,566 1,716,960
----------- ----------- ------------ ----------- -----------
NET ASSETS:
Applicable to 4,927,103,
6,036,931, 12,204,330,
5,274,893 and 3,883,837 shares
outstanding, respectively..... $55,946,150 $87,974,903 $202,729,629 $53,884,786 $39,058,778
----------- ----------- ------------ ----------- -----------
----------- ----------- ------------ ----------- -----------
NET ASSETS CONSIST OF:
Capital paid-in................. $42,200,065 $67,896,975 $190,048,225 $52,822,440 $39,052,710
Undistributed net investment
income........................ 159,043 126,699 405,162 -- --
Accumulated net realized gain
(loss) on investments......... 3,845,282 2,115,434 (10,373,122) (212,190) (898,955)
Net unrealized appreciation of
investments................... 9,741,760 17,835,795 22,649,364 1,274,536 905,023
----------- ----------- ------------ ----------- -----------
$55,946,150 $87,974,903 $202,729,629 $53,884,786 $39,058,778
----------- ----------- ------------ ----------- -----------
----------- ----------- ------------ ----------- -----------
Net asset value and offering price
per share....................... $11.35 $14.57 $16.61 $10.22 $10.06
------ ------ ------ ------ ------
------ ------ ------ ------ ------
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS for the Year Ended October 31, 1995
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
GROWTH AND AGGRESSIVE FIXED MUNICIPAL
GROWTH FUND INCOME FUND GROWTH FUND INCOME FUND TRUST FUND
----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends........................... $ 827,652 $ 1,826,181 $2,571,391 $ -- $ --
Interest............................ 215,823 824,086 694,900 3,113,349 1,785,549
----------- ----------- ----------- ----------- ----------
Total investment income......... 1,043,475 2,650,267 3,266,291 3,113,349 1,785,549
----------- ----------- ----------- ----------- ----------
EXPENSES:
Investment advisory fees (Note B)... 395,327 556,556 1,432,939 281,997 224,300
Distribution fees (Note B).......... 263,552 376,789 872,716 225,597 179,440
Legal fees.......................... 20,000 26,000 72,000 18,000 17,000
Transfer agent fees................. 66,000 87,000 204,000 50,000 36,000
Custodian fees...................... 47,000 59,000 120,000 41,000 35,000
Auditing fees....................... 12,000 18,000 37,000 14,000 10,000
Printing fees....................... 16,000 18,000 29,000 14,000 13,000
Trustees' fees...................... 11,000 12,000 17,000 10,000 8,000
Miscellaneous....................... 28,208 34,856 76,474 27,000 23,000
Amortization of organization costs
(Note A).......................... -- -- -- -- 21,184
----------- ----------- ----------- ----------- ----------
859,087 1,188,201 2,861,129 681,594 566,924
Less expenses reimbursed by
investment advisor............ -- -- -- (230,399 ) (208,045)
----------- ----------- ----------- ----------- ----------
Net expenses.................... 859,087 1,188,201 2,861,129 451,195 358,879
----------- ----------- ----------- ----------- ----------
NET INVESTMENT INCOME.................. 184,388 1,462,066 405,162 2,662,154 1,426,670
----------- ----------- ----------- ----------- ----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS--Note C:
Net realized gain (loss) on
investments....................... 3,855,434 2,114,892 4,891,763 221,384 (559,335)
Net change in unrealized
appreciation on investments....... 2,214,074 8,320,026 13,889,695 2,303,777 2,549,446
----------- ----------- ----------- ----------- ----------
Net realized and unrealized gain on
investments....................... 6,069,508 10,434,918 18,781,458 2,525,161 1,990,111
----------- ----------- ----------- ----------- ----------
INCREASE IN NET ASSETS FROM
OPERATIONS........................... $6,253,896 $11,896,984 $19,186,620 $5,187,315 $3,416,781
----------- ----------- ----------- ----------- ----------
----------- ----------- ----------- ----------- ----------
See notes to financial statements.
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
GROWTH AND
GROWTH FUND INCOME FUND
------------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/95 10/31/94 10/31/95 10/31/94
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income............................ $ 184,388 $ 32,723 $1,462,066 $1,088,804
Net realized gain on investments................. 3,855,434 3,314,787 2,114,892 2,850,323
Net change in unrealized appreciation on
investments.................................... 2,214,074 (1,419,110 ) 8,320,026 (1,512,330 )
----------- ----------- ----------- -----------
Increase in net assets from operations........... 6,253,896 1,928,400 11,896,984 2,426,797
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income................................ (58,068 ) -- (1,501,908 ) (971,199 )
Realized gains on investments.................... (3,314,586 ) (2,678,311 ) (2,851,832 ) (1,646,857 )
CAPITAL STOCK TRANSACTIONS--(NET) NOTE D............ 610,099 3,759,172 13,411,750 15,044,680
----------- ----------- ----------- -----------
Total increase in net assets..................... 3,491,341 3,009,261 20,954,994 14,853,421
NET ASSETS:
Beginning of year................................ 52,454,809 49,445,548 67,019,909 52,166,488
----------- ----------- ----------- -----------
End of year (including undistributed net
investment income of $159,043 and $32,723 for
the Growth Fund at 10/31/95 and 10/31/94,
respectively, and $126,699 and $166,541 for the
Growth and Income Fund at 10/31/95 and
10/31/94, respectively)...................... $55,946,150 $52,454,809 $87,974,903 $67,019,909
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
AGGRESSIVE
GROWTH FUND FIXED INCOME FUND
--------------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/95 10/31/94 10/31/95 10/31/94
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).................... $ 405,162 $ (48,201) $2,662,154 $2,150,296
Net realized gain (loss) on investments......... 4,891,763 6,163,077 221,384 (436,132 )
Net change in unrealized appreciation on
investments................................... 13,889,695 (2,663,912) 2,303,777 (3,401,570 )
------------ ------------ ----------- -----------
Increase (decrease) in net assets from
operations.................................... 19,186,620 3,450,964 5,187,315 (1,687,406 )
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income............................... -- (122,111) (2,662,154 ) (2,150,296 )
Realized gains on investments................... (6,165,603) (5,363,488) -- (916,068 )
CAPITAL STOCK TRANSACTIONS--(NET) NOTE D........... 45,084,159 68,756,345 12,209,472 3,022,495
------------ ------------ ----------- -----------
Total increase (decrease) in net assets......... 58,105,176 66,721,710 14,734,633 (1,731,275 )
NET ASSETS:
Beginning of year............................... 144,624,453 77,902,743 39,150,153 40,881,428
------------ ------------ ----------- -----------
End of year (including undistributed net
investment income of $405,162 for the
Aggressive Growth Fund at 10/31/95)........... $202,729,629 $144,624,453 $53,884,786 $39,150,153
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
</TABLE>
<TABLE><CAPTION>
MUNICIPAL
TRUST FUND
---------------------------
YEAR ENDED YEAR ENDED
10/31/95 10/31/94
----------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income.............................................. $ 1,426,670 $ 1,303,489
Net realized loss on investments................................... (559,335) (338,883 )
Net change in unrealized appreciation on investments............... 2,549,446 (1,903,318 )
----------- ------------
Increase (decrease) in net assets from operations.................. 3,416,781 (938,712 )
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income.................................................. (1,426,670) (1,303,489 )
CAPITAL STOCK TRANSACTIONS--(NET) NOTE D.............................. 2,598,461 2,918,893
----------- ------------
Total increase in net assets....................................... 4,588,572 676,692
NET ASSETS:
Beginning of year.................................................. 34,470,206 33,793,514
----------- ------------
End of year........................................................ $39,058,778 $34,470,206
----------- ------------
----------- ------------
</TABLE>
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--NOTES TO FINANCIAL STATEMENTS October 31, 1995
- --------------------------------------------------------------------------------
NOTE (A) SIGNIFICANT ACCOUNTING POLICIES. Winthrop Focus Funds ("Winthrop" or
"Funds") operates as a series company currently issuing five classes of shares
of beneficial interest: Winthrop Growth Fund, Winthrop Growth and Income Fund,
Winthrop Aggressive Growth Fund, Winthrop Fixed Income Fund, and Winthrop
Municipal Trust Fund. Winthrop, organized as a Massachusetts business trust on
November 26, 1985, constitutes a diversified, open-end investment company which
is registered under the Investment Company Act of 1940, as amended ("Act"). Wood
Struthers & Winthrop Management Corp. (the "Advisor" ) is a wholly-owned
subsidiary of Donaldson, Lufkin & Jenrette Securities Corporation, which is a
subsidiary of Donaldson, Lufkin and Jenrette, Inc. ("DLJ"). DLJ is an
independently operated, indirect subsidiary of The Equitable Companies
Incorporated. The following is a summary of significant accounting policies
consistently followed by Winthrop.
(1) SECURITY VALUATION: Securities and options traded on national exchanges
and over-the-counter securities listed in the NASDAQ National Market System
are valued at the last reported sales price at the close of the New York Stock
Exchange. Securities for which there have been no sales on such day are valued
at the mean of the current bid and asked prices. Over-the-counter securities
not listed on the NASDAQ National Market System are valued at the mean of the
current bid and asked prices. Fixed-income securities, except short-term
securities, may be valued on the basis of prices provided by a pricing service
when such prices are believed by the Advisor to reflect the fair market value
of such securities. The prices provided by a pricing service are determined
without regard to bid or last sale prices but take into account institutional
size, trading in similar groups of securities and any developments related to
the specific securities. Short-term investments, those with a remaining
maturity of 60 days or less, are valued at amortized cost, which approximates
market value.
(2) REPURCHASE AGREEMENTS: The Funds may enter into repurchase agreements with
financial institutions, deemed to be creditworthy by the Funds' Advisor,
subject to the seller's agreement to repurchase and the Funds' agreement to
resell such securities at a mutually agreed-upon price. Securities purchased
subject to repurchase agreements are deposited with the Funds' custodian and,
pursuant to the terms of the repurchase agreement, must have an aggregate
market value greater than or equal to the repurchase price plus accrued
interest at all times. If the value of the underlying securities falls below
the value of the repurchase price plus accrued interest, the Funds will
require the seller to deposit additional collateral by the next business day.
If the request for additional collateral is not met, or the seller defaults on
its repurchase obligation, the Funds maintain the right to sell the underlying
securities at market value and may claim any resulting loss against the
seller.
(3) FEDERAL INCOME TAXES: The Funds intend to be treated as "regulated
investment companies" under Sub-chapter M of the Internal Revenue Code and to
distribute substantially all of their net taxable and tax-exempt income.
Accordingly, no provisions for Federal income taxes have been made in the
accompanying financial statements.
(4) INVESTMENT INCOME AND SECURITIES TRANSACTIONS: Dividend income is recorded
on the ex-dividend date. Security transactions are accounted for on the date
securities are purchased or sold. Security gains and losses are determined on
the identified cost basis. Interest income, which includes amortization of
premiums and discounts, is recorded on the accrual basis.
(5) DIVIDENDS AND DISTRIBUTIONS: Dividends and distributions to shareholders
are recorded on the ex-dividend date. The Winthrop Fixed Income Fund and
Winthrop Municipal Trust Fund each declare dividends on a daily basis. Such
dividends are paid monthly.
(6) DEFERRED ORGANIZATION COSTS: The Municipal Trust Fund will reimburse the
Advisor for costs incurred in connection with the Municipal Trust Fund's
organization. The costs are being amortized on a straight-line basis over five
years commencing July 28, 1993.
NOTE (B) ADVISORY AND DISTRIBUTION SERVICES AGREEMENT: Under its Advisory
Agreement with Winthrop, the Advisor will provide investment advisory services
and order placement facilities for Winthrop and
<PAGE>
WINTHROP FOCUS FUNDS--NOTES TO FINANCIAL STATEMENTS October 31, 1995 (continued)
- --------------------------------------------------------------------------------
pay all compensation of Trustees of Winthrop who are affiliated persons of the
Advisor. The Advisor or its affiliates will also furnish Winthrop, without
charge, management supervision and assistance and office facilities. Winthrop
will pay the Advisor at the following annual percentage rates of the average
daily net assets of each Fund: Growth Fund, .750 of 1% of the first
$100,000,000, .500 of 1% of the balance; Growth and Income Fund, .750 of 1% of
the first $75,000,000, .500 of 1% of the balance; Aggressive Growth Fund, .875
of 1% of the first $100,000,000, .750 of 1% of the next $100,000,000 and .625 of
1% of net assets in excess of $200,000,000; Fixed Income Fund, .625 of 1% of the
first $100,000,000, .500 of 1% of the balance; and Winthrop Municipal Trust
Fund, .625 of 1% of the first $100,000,000, .500 of 1% of the balance. Such fees
will be accrued daily and paid monthly.
The Advisory Agreement provides that the Advisor will reimburse Winthrop for its
expenses (exclusive of interest, taxes, brokerage, distribution services fees
and extraordinary expenses, all to the extent permitted by applicable state
securities law and regulations) which in any year exceed the limits prescribed
by any state in which shares of Winthrop are qualified for sale. Winthrop
believes that presently the most restrictive applicable expense ratio limitation
imposed on Winthrop by any state is 2 1/2% of average net assets of the first
$30 million, 2% of average net assets of the next $70 million and 1 1/2% of
average net assets in excess of $100 million. Commencing July 1, 1994, the
Advisor has agreed to reimburse through October 31, 1995 all operating expenses
in excess of 1.00% of the average daily net assets of the Fixed Income Fund and
the Municipal Trust Fund. For the period November 1, 1995 through October 31,
1996, the Advisor may, in its sole discretion, determine to reduce its
management fees by the amount that Total Fund Operating Expenses exceed 1.00% of
the average daily net assets of each of the Fixed Income Fund and the Municipal
Trust Fund. The Advisor may, in its sole discretion, determine to discontinue
this practice with respect to both or either of such Funds. As a result of the
voluntary assumption of expenses, the Advisor reimbursed the Fixed Income Fund
and Municipal Trust Fund $230,399 and $208,045, respectively, during the year
ended October 31, 1995.
Pursuant to Rule 12b-1 under the Act, Winthrop has entered into a Distribution
Services Agreement (the "Agreement") with Donaldson, Lufkin & Jenrette
Securities Corporation, Winthrop's Distributor, under which Winthrop pays a
distribution services fee to the Distributor at an annual rate of up to .50% of
each Fund's aggregate average daily net assets. The Agreement provides that the
Distributor will use amounts payable under the Agreement in their entirety for
(i) payments to broker/dealers and other financial intermediaries for
distribution assistance and to banks and other depository institutions for
administrative and accounting services, and (ii) otherwise in promoting the sale
of shares of Winthrop such as by paying for the preparation, printing and
distribution of prospectuses, sales brochures and other promotional materials
sent to prospective shareholders and by directly or indirectly purchasing radio,
television, newspaper and other advertising. The Agreement also provides that
the Advisor may use its own resources including fees from investment companies
(including Winthrop) to finance the distribution of Winthrop's shares.
Each Trustee who is not an affiliated person receives an attendance fee of
$1,200 per meeting. In addition, each unaffiliated Trustee who is a member of
the audit committee receives an attendance fee of $500 per meeting.
NOTE (C) INVESTMENT TRANSACTIONS: For federal income tax purposes, the cost of
securities owned at October 31, 1995, was substantially the same as the cost of
securities for financial statement purposes. At October 31, 1995, the components
of the net unrealized appreciation on investments were as follows:
<TABLE>
<CAPTION>
GROWTH GROWTH & INCOME AGGRESSIVE GROWTH FIXED INCOME MUNICIPAL TRUST
FUND FUND FUND FUND FUND
----------- --------------- ----------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
Gross appreciation (investments
having an excess of value over
cost)........................ $10,878,765 $19,201,560 $30,779,318 $ 1,381,000 $ 933,066
Gross depreciation (investments
having an excess of cost over
value)....................... (1,137,005) (1,365,765) (8,129,954) (106,464 ) (28,043)
----------- --------------- -------- ------------ -------
Net unrealized appreciation of
investments................... $ 9,741,760 $17,835,795 $22,649,364 $ 1,274,536 $ 905,023
----------- --------------- -------- ------------ -------
----------- --------------- -------- ------------ -------
</TABLE>
<PAGE>
WINTHROP FOCUS FUNDS--NOTES TO FINANCIAL STATEMENTS October 31, 1995 (continued)
- --------------------------------------------------------------------------------
For the year ended October 31, 1995, total aggregate purchases and sales of
portfolio securities, excluding short-term securities, were as follows:
<TABLE>
<CAPTION>
GROWTH GROWTH & INCOME AGGRESSIVE GROWTH FIXED INCOME MUNICIPAL TRUST
FUND FUND FUND FUND FUND
----------- --------------- ----------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
Purchases....................... $52,892,711 $37,992,480 $96,922,800 $40,717,657 $20,943,951
Sales........................... 50,124,821 23,261,731 40,989,987 28,040,147 17,155,314
</TABLE>
NOTE (D) SHARES OF BENEFICIAL INTEREST: There is an unlimited number of shares
($0.01 par value) authorized. During 1994, with respect to the Aggressive Growth
Fund, accumulated investment losses of $12,894 were reclassified to capital
paid-in. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
GROWTH FUND GROWTH & INCOME FUND
----------------------------------------------------------- ------------------------------------------
YEAR ENDED
YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER
OCTOBER 31, 1995 OCTOBER 31, 1994 OCTOBER 31, 1995 31, 1994
--------------------------- --------------------------- --------------------------- ----------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
---------- ------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares sold........... 532,740 $ 5,466,192 490,202 $ 5,372,687 1,461,068 $ 19,316,205 1,350,735
Shares issued through
reinvestment of
dividends............ 287,842 2,878,417 210,986 2,259,663 263,368 3,373,871 137,579
---------- ------------ ---------- ------------ ---------- ------------ ----------
820,582 8,344,609 701,188 7,632,350 1,724,456 22,690,076 1,488,314
---------- ------------ ---------- ------------ ---------- ------------ ----------
Shares redeemed....... (743,608) (7,734,510) (357,176) (3,873,178) (697,917) (9,278,326) (365,123)
---------- ------------ ---------- ------------ ---------- ------------ ----------
Net increase.......... 76,974 $ 610,099 344,012 $ 3,759,172 1,026,539 $ 13,411,750 1,123,191
---------- ------------ ---------- ------------ ---------- ------------ ----------
---------- ------------ ---------- ------------ ---------- ------------ ----------
<CAPTION>
AMOUNT
------------
<S> <C>
Shares sold........... $ 18,132,567
Shares issued through
reinvestment of
dividends............. 1,822,413
------------
19,954,980
------------
Shares redeemed....... (4,910,300)
------------
Net increase.......... $ 15,044,680
------------
------------
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH FUND FIXED INCOME FUND
----------------------------------------------------------- ------------------------------------------
YEAR ENDED
YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER
OCTOBER 31, 1995 OCTOBER 31, 1994 OCTOBER 31, 1995 31, 1994
--------------------------- --------------------------- --------------------------- ----------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
---------- ------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares sold........... 4,656,242 $ 72,414,139 4,672,514 $ 73,246,012 2,205,344 $ 21,904,065 1,112,714
Shares issued through
reinvestment of
dividends............ 382,815 5,692,460 322,012 4,852,722 178,087 1,772,956 200,340
---------- ------------ ---------- ------------ ---------- ------------ ----------
5,039,057 78,106,599 4,994,526 78,098,734 2,383,431 23,677,021 1,313,054
---------- ------------ ---------- ------------ ---------- ------------ ----------
Shares redeemed....... (2,074,286) (33,022,440) (589,769) (9,342,389) (1,159,789) (11,467,549) (1,002,473)
---------- ------------ ---------- ------------ ---------- ------------ ----------
Net increase.......... 2,964,771 $ 45,084,159 4,404,757 $ 68,756,345 1,223,642 $ 12,209,472 310,581
---------- ------------ ---------- ------------ ---------- ------------ ----------
---------- ------------ ---------- ------------ ---------- ------------ ----------
<CAPTION>
AMOUNT
------------
<S> <C>
Shares sold........... $ 11,204,524
Shares issued through
reinvestment of
dividends............. 2,048,817
------------
13,253,341
------------
Shares redeemed....... (10,230,846)
------------
Net increase.......... $ 3,022,495
------------
------------
</TABLE>
<TABLE>
<CAPTION>
MUNICIPAL TRUST FUND
-----------------------------------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31, 1994
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold........... 1,175,181 $ 11,478,178 1,525,475 $ 15,174,345
Shares issued through
reinvestment of
dividends............ 112,223 1,098,286 98,883 968,442
---------- ------------ ---------- ------------
1,287,404 12,576,464 1,624,358 16,142,787
---------- ------------ ---------- ------------
Shares redeemed....... (1,030,022) (9,978,003) (1,344,417) (13,223,894)
---------- ------------ ---------- ------------
Net increase.......... 257,382 $ 2,598,461 279,941 $ 2,918,893
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
</TABLE>
NOTE (E) PRIOR YEAR FINANCIAL STATEMENT PRESENTATION: During the year ended
October 31, 1993, Winthrop, upon further review, determined that the objectives,
policies and other factors affecting the determination of the surviving entity
with respect to Neuwirth Fund, Inc. and Pine Street Fund, Inc. did not change
and that the reorganization of these Funds on July 10, 1992 should be reported
with those Funds as the surviving entities. Accordingly, the financial
highlights for the period ended October 31, 1992 of both Funds have been
restated.
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The table below sets forth financial data for a share of capital stock
outstanding throughout each period presented.
This information has been derived from information provided in the financial
statements.
<TABLE>
<CAPTION>
NET
REALIZED AND
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS NET NET ASSETS,
VALUE, NET GAINS OR FROM NET FROM ASSET VALUE, END OF
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT CAPITAL END TOTAL PERIOD
OF PERIOD INCOME SECURITIES INCOME GAINS OF PERIOD RETURN++ (000 OMITTED)
--------- ---------- ------------ ---------- ------------- ------------ -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GROWTH FUND--YEARS ENDED OCTOBER 31,
1995 $ 10.82 $0.037 $ 1.190 $ (0.012) $(0.685) $11.35 12.21% $ 55,946
1994 10.97 0.014 0.435 -- (0.599) 10.82 4.15 52,455
1993 11.10 0.061 1.386 (0.077) (1.500) 10.97 14.36 49,446
1992 11.45 0.123 0.418 (0.163) (0.728) 11.10 4.66 48,678
1991 9.20 0.148 2.512 (0.198) (0.212) 11.45 29.71 50,426
GROWTH AND INCOME FUND--YEARS ENDED OCTOBER 31,
1995 $ 13.38 $0.254 $ 1.769 $ (0.266) $(0.567) $14.57 16.10% $ 87,975
1994 13.42 0.244 0.358 (0.223) (0.419) 13.38 4.58 67,020
1993 12.35 0.270 1.720 (0.271) (0.649) 13.42 16.93 52,166
1992* 12.03 0.083 0.572 (0.165) (0.170) 12.35 16.39(1) 46,457
YEARS ENDED JUNE 30,
1992 11.70 0.320 0.916 (0.234) (0.672) 12.03 10.45 45,342
1991 12.48 0.380 0.010 (0.386) (0.784) 11.70 3.86 47,340
AGGRESSIVE GROWTH FUND--YEARS ENDED OCTOBER 31,
1995 $ 15.65 $0.035 $ 1.621 $ -- $(0.696) $16.61 11.10% $ 202,730
1994 16.11 0.105 0.603 (0.026) (1.142) 15.65 4.67 144,624
1993 14.00 0.123 3.195 (0.011) (1.197) 16.11 25.34 77,903
1992** 14.16 0.011 1.482 (0.027) (1.626) 14.00 13.95(1) 39,683
YEARS ENDED DECEMBER 31,
1991 10.16 0.023 5.090 (0.024) (1.089) 14.16 50.55 32,340
1990 11.90 0.157 (1.720) (0.177) -- 10.16 (13.12) 22,041
FIXED INCOME FUND--YEARS ENDED OCTOBER 31,
1995 $ 9.66 $0.588 $ 0.560 $ (0.588) $ -- $10.22 12.23% $ 53,885
1994 10.93 0.567 (1.027) (0.567) (0.243) 9.66 (4.37) 39,150
1993 10.40 0.622 0.567 (0.622) (0.037) 10.93 11.79 40,881
1992 10.08 0.695 0.320 (0.695) -- 10.40 10.37 32,358
1991 9.57 0.773 0.510 (0.773) -- 10.08 13.92 23,783
MUNICIPAL TRUST FUND--YEARS ENDED OCTOBER 31,
1995 $ 9.51 $0.389 $ 0.550 $ (0.389) $ -- $10.06 10.06% $ 39,059
1994 10.10 0.365 (0.590) (0.365) -- 9.51 (2.27) 34,470
1993+ 10.00 0.085 0.100 (0.085) -- 10.10 7.15(1) 33,794
<CAPTION>
RATIO OF
RATIO NET INVESTMENT
OF EXPENSES INCOME TO PORTFOLIO
TO AVERAGE AVERAGE NET TURNOVER
NET ASSETS(2) ASSETS(2) RATE
------------- -------------- ---------
<S> <C> <C> <C>
GROW
1995 1.63% 0.35% 101.7%
1994 1.65 0.06 28.2
1993 1.36 0.56 61.7
1992 1.26 1.11 65.7
1991 1.34 1.40 31.7
GROW
1995 1.58% 1.94% 31.8%
1994 1.64 1.88 25.9
1993 1.33 2.12 36.4
1992 1.32(1) 1.99(1) 14.4
1992 1.35 2.62 29
1991 1.23 3.25 48
AGGR
1995 1.64% 0.23% 25.1%
1994 1.70 (0.04) 31.6
1993 1.44 0.32 134.3
1992 1.74(1) 0.10(1) 164.1
1991 1.89 0.18 91.3
1990 1.98 1.45 87.6
FIXE
1995 1.00% 5.90% 66.1%
1994 0.93 5.58 55.9
1993 0.83 5.79 95.6
1992 0.51 6.71 62.8
1991 -- 7.75 35.9
MUNI
1995 1.00% 3.97% 49.3%
1994 0.83 3.71 42.5
1993 0.75(1) 3.28(1) 0
</TABLE>
* For the period 7/1/92 to 10/31/92.
** For the period 1/1/92 to 10/31/92.
+ Commencement of operations for the Municipal Trust Fund was July 28, 1993.
++ A contingent deferred sales charge may be imposed on redemptions which would
reduce total return shown above.
(1) Annualized
(2) Net of voluntary assumption by Advisor of expenses, expressed as a
percentage of average net assets, as follows: Growth and Income Fund, .01%
and .08%, for the years ended 6/30/92, and 91, respectively; Aggressive
Growth Fund, .01% and .06% for the years ended 12/31/91 and 90,
respectively; Fixed Income Fund, .51%, .67%, .58%, .98%, and 2.19% for the
years ended 10/31/95, 94, 93, 92, and 91, respectively; and Municipal Trust
Fund, .58%, .77% and 1.15% (annualized) for the years ended 10/31/95, 94 and
93, respectively.
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of Winthrop Focus Funds:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Winthrop Focus Funds (comprising, respectively,
the Winthrop Growth Fund, the Winthrop Growth and Income Fund, the Winthrop
Aggressive Growth Fund, the Winthrop Fixed Income Fund and the Winthrop
Municipal Trust Fund) as of October 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended and the financial highlights,
with respect to the Winthrop Growth Fund, Winthrop Fixed Income Fund and
Winthrop Municipal Trust Fund, for each of the periods indicated therein and,
with respect to the Winthrop Aggressive Growth Fund and Winthrop Growth and
Income Fund, for each of the four years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The financial
highlights of Winthrop Aggressive Growth Fund (formerly Neuwirth Fund, Inc.) for
the year ended December 31, 1991 and each of the two years in the period then
ended and Winthrop Growth and Income Fund (formerly Pine Street Fund, Inc.) for
the year ended June 30, 1992 and each of the two years in the period then ended,
were audited by other auditors whose reports thereon dated January 27, 1992 and
August 3, 1992 respectively, expressed an unqualified opinion on such financial
highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above and audited by us present fairly, in all material respects, the financial
position of each of the respective Funds constituting the Winthrop Focus Funds
at October 31, 1995, the results of their operations for the year then ended,
the changes in their net assets for each of the two years in the period then
ended and financial highlights, with respect to the Winthrop Growth Fund,
Winthrop Fixed Income Fund and Winthrop Municipal Trust Fund, for each of the
indicated periods and, with respect to the Winthrop Aggressive Growth Fund and
Winthrop Growth and Income Fund for each of the four years in the period then
ended, in conformity with generally accepted accounting principles.
Ernst & Young LLP
New York, New York
November 28, 1995
<PAGE>
WINTHROP FOCUS FUNDS
(800) 225-8011
TRUSTEES
Carl B. Menges Stig Host William H. Mathers
Robert L. Bast James L. McCabe William C. Simpson
James A. Engle G. Moffett Cochran Peter F. Krogh
John J. Halsey John J. Sheehan Stephen K. West
Dennis G. Little
OFFICERS
Carl B. Menges, Chairman and President
Sam M. D'Agostino, Vice President
James A. Engle, Vice President
Martin Jaffe, Vice President, Treasurer, and Secretary
Cathy A. Jameson, Vice President
Marybeth b. Leithead, Vice President
Hugh M. Neuburger, Vice President
Roger W. Vogel, Vice President
Charles E. Hughes, Assistant Secretary
Brian A. Kammerer; Assistant Treasurer
INVESTMENT ADVISOR
Wood Struthers & Winthrop Management Corp.
An Investment Management Subsidiary of Donaldson, Lufkin & Jenrette
140 Broadway, New York, NY 10005
CUSTODIAN
Citibank, N.A.
111 Wall Street, New York, NY 10043
TRANSFER AGENT
Fund/Plan Services, Inc.
P.O. Box 874 (#2 Elm Street), Conshohocken, PA 19428
DISTRIBUTOR
Donaldson, Lufkin & Jenrette Securities Corporation
140 Broadway, New York NY 10005
AUDITORS
Ernst & Young LLP
787 Seventh Avenue, New York, NY 10019
LEGAL COUNSEL
Sullivan & Cromwell
125 Broad Street, New York, NY 10004
This report is submittted for the general information of the stockholders of
the Fund. It is not authorized for distribution to prospective investors in
the Fund unless preceded or accompanied by an effective prospectus,
which should be read carefully before investing.
WOOD, STRUTHERS & WINTHROP
Established 1971
[LOGO]
INVESTMENT MANAGEMENT SUBSIDIARY OF
DONALDSON, LUFKIN & JENRETTE
SECURITIES CORPORATION
(The Fund Distributor)
12458 12/95
[LOGO]
WINTHROP
FOCUS
FUNDS
Annual Report
October 31, 1995
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