- --------------------------------------------------------------------------------
APPOINTMENT OF NEW CHAIRMAN AND PRESIDENT
At a meeting of the Board of Trustees on January 25, 1996, G. Moffett Cochran
was elected Chairman of the Board and President of the Winthrop Focus Funds. Mr.
Cochran joined the Funds' investment advisor, Wood, Struthers & Winthrop
Management Corp., in 1992 as Chairman of its Executive Committee and was named
the firm's President in 1993. Prior to joining WSW, he spent 12 years at the
Bessemer Trust Companies, of which he was a Senior Vice President, and 5 years
at J.P. Morgan & Co. Inc. Mr. Cochran received his B.A. from the University of
Virginia and his J.D. from its School of Law. Mr. Cochran also serves as
Managing Director and Principal of the advisor's parent and the Funds'
Distributor, Donaldson, Lufkin & Jenrette, and President and CEO of Winthrop
Trust Company.
- --------------------------------------------------------------------------------
PRESIDENT'S LETTER
Dear Shareholder:
During the first six months of the Fund's fiscal year (November 1-April 30,
1996) stock prices have risen, reflecting peak levels of profitability posted by
corporate America. We believe that for the stock market to continue its advance,
company to company earnings must continue to rise and any shortfall compared to
expectations will be severely punished. Consequently, we will monitor the
profitability of our investments very closely.
After an extended period of falling rates throughout 1995, interest rates have
risen sharply in 1996, creating a difficult environment for bonds. We believe
that interest rates will decline from current levels as the perception grows
that inflation remains in check and that the bond market in general affords
attractive inflation-adjusted returns.
WINTHROP GROWTH & INCOME FUND
For the first six months ended April 30, 1996, the Growth & Income Fund Class A
shares returned 13.90% versus a 13.76% return for the S&P 500. Strong
performances from our financial and consumer staples stocks aided our
performance during this period. A seven percent weighting in bonds has hurt
performance relative to the S&P 500, as interest rates have risen. We continue
to emphasize financial service companies and consumer staples stocks in the
portfolio and we also have lengthened the duration of the bond portfolio, in the
belief that this will prove to be a good time to lock in rates. Throughout the
course of the most recent quarter, we have added to shares in tobacco companies,
which are trading at historically cheap valuations relative to the overall
market.
WINTHROP AGGRESSIVE GROWTH FUND
The Aggressive Growth Fund Class A shares returned 11.14% for the six-month
period ended April 30, 1996, lagging the 18.43% return of the Russell 2000 small
company index. Small "value" shares remain out of favor with the market relative
to small "growth"-oriented shares, although history suggests this will reverse
itself. The Fund remains committed to a value orientation, with our companies on
average selling at a substantially lower price-earnings multiple than the
Russell 2000 index. Recently, we have added new holdings with market caps at the
higher end of small cap/lower end of the mid-cap range. As the Fund's assets
continue to grow, we like the added liquidity that this range of market cap (up
to about $2.5 billion) offers. In addition, we believe we are particularly well
positioned to preserve capital in the face of any weakness in the small-cap
marketplace precipitated by a general market decline.
WINTHROP GROWTH FUND
For the six months ended April 30, 1996, the Winthrop Growth Fund Class A shares
earned 14.16% and the S&P 500 returned 13.76%. Among the factors accounting for
the Fund's performance were the favorable sentiment towards cyclical stocks and
the surprising rebound in some technology holdings. The good performance of
these sectors, which many did not expect, shows the benefit of the Fund's
diversified strategy.
WINTHROP FIXED INCOME FUND
For the six months ended April 30, 1996, the Fund's Class A shares slightly
lagged the Lipper Intermediate Government Index, returning .12% versus .36% for
the Index. In our view, the recent well-publicized inflation concerns are
greatly exaggerated, as is the perception of the economy's strength. In the face
of continued low inflation and a weaker-than-perceived economy, we expect rates
to fall and we are positioned accordingly.
WINTHROP MUNICIPAL TRUST FUND
For the six months ended April 30, 1996, the Fund returned .16% on Class A
shares, slightly behind the Lipper Intermediate Fund Index of .97%. Because our
interest rate forecast calls for rates to decline, our average maturities are
longer than those of the Index. Because of our belief that rates are poised to
decline, we feel that the Fund's current structure will help performance in the
months ahead.
The Trustees and Officers wish to convey their appreciation and gratitude to Mr.
Carl B. Menges for his 10 years of service and leadership. During his tenure,
the Winthrop Focus Fund family was created and aggregate fund assets more than
quintupled. We are grateful to Mr. Menges and we look forward to continuing to
receive his counsel as a Fund Trustee.
Sincerely,
/s/ G. Moffett Cochran
G. Moffett Cochran
President June, 1996
<PAGE>
FOCUS FUND HIGHLIGHTS
WINTHROP GROWTH FUND
PORTFOLIO CHANGES For the Six Months Ended April 30, 1996
(unaudited)
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
BankAmerica Corp.(1) Amoco Corp.(2)
First Chicago NBD Corp.(1) Campbell Soup Co.(2)
General Dynamics Corp.(1) Compaq Computer Corp.(2)
General Mills, Inc.(1) ConAgra, Inc.(2)
Heinz (H.J.) Co.(1) First Bank System, Inc.(2)
Hewlett-Packard Co.(1) Loral Corp.(2)
Merck & Co., Inc.(1) Pfizer, Inc.(2)
Texaco, Inc.(1) Wells Fargo & Co.
(1) New Holdings (2) Deletions
</TABLE>
TEN LARGEST HOLDINGS April 30, 1996 (unaudited)
PERCENT
VALUE OF FUND
----------- -------
PepsiCo, Inc. .................................... $ 3,117,850 4.9%
Exxon Corp. ...................................... 2,354,500 3.7
MCI Communications Corp. ......................... 2,260,800 3.5
Cellular Communications, Inc. Cl. A............... 2,208,668 3.4
Procter & Gamble Co. ............................. 1,968,850 3.1
Sears Roebuck & Co. .............................. 1,945,125 3.0
Dow Chemical Co. ................................. 1,919,700 3.0
Schering-Plough Corp. ............................ 1,887,637 2.9
Kerr-McGee Corp. ................................. 1,884,313 2.9
Hewlett-Packard Co. .............................. 1,852,813 2.9
----------- -------
$21,400,256 33.3%
----------- -------
----------- -------
INVESTMENT RESULTS For Periods Ended April 30, 1996 (unaudited)
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------
WINTHROP GROWTH
FUND--CL. A S&P 500
------------------- ---------------------
Six months................... 14.16% 13.76%
1 year....................... 25.43% 30.22%
5 years...................... 11.31% 14.94%
From Inception (12/86)....... 9.88% 14.39%
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. Investors may be subject to an initial sales charge
when purchasing Class A shares of up to 4.75%. The Fund also offers Class B
shares which, instead of an initial sales charge, are subject to a
contingent deferred sales charge at redemption ranging from 4% during the
first year to 0% after 4 years. Initial sales charge or contingent deferred
sales charge is not reflected in the calculation of average annual total
return shown above. Average annual total return calculated for less than one
year is not annualized.
<PAGE>
FOCUS FUND HIGHLIGHTS
WINTHROP GROWTH AND INCOME FUND
PORTFOLIO CHANGES For the Six Months Ended April 30, 1996
(unaudited)
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
Abbott Laboratories(1) Federal Home Loan Bank(2)
BankAmerica Corp.(1) 7.310%, 06/16/04
Cellular Communications, Inc. Cl. A Federal National Mortgage Assn.(2)
Federal Home Loan Mortgage Corp.(1) Loral Corp.(2)
General Dynamics Corp.(1) Premier Industrial Corp.(2)
Heinz (H.J.) Co.(1) Stanley Works(2)
New York Times Co. Cl. A(1) 7.375%, 12/15/02
United States Treasury Strips(1) Xerox Corp.(2)
0.000%, 11/15/18 8.125%, 04/15/02
(1) New Holdings (2) Deletions
</TABLE>
TEN LARGEST EQUITY HOLDINGS April 30, 1996 (unaudited)
PERCENT
VALUE OF FUND
----------- -------
Cellular Communications, Inc. Cl. A............... $ 3,775,500 3.6%
Loews Corp. ...................................... 3,355,000 3.2
First Bank System, Inc. .......................... 3,345,803 3.2
Amoco Corp. ...................................... 2,920,000 2.8
Federal Home Loan Mortgage Corp. ................. 2,918,125 2.8
American International Group, Inc. ............... 2,905,725 2.8
Pfizer, Inc. ..................................... 2,458,838 2.3
Gillette Co. ..................................... 2,376,000 2.2
Procter & Gamble Co. ............................. 2,197,000 2.1
United Technologies Corp. ........................ 2,154,750 2.0
----------- -------
$28,406,741 27.0%
----------- -------
----------- -------
INVESTMENT RESULTS For Periods Ended April 30, 1996 (unaudited)
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------
WINTHROP GROWTH AND
INCOME FUND--CL. A S&P 500
------------------- ---------------------
Six months................... 13.90% 13.76%
1 year....................... 27.24% 30.22%
5 years...................... 13.46% 14.94%
10 years..................... 10.66% 14.26%
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 dividend or capital gains, but the returns
calculated above have been computed after deduction of all fund expenses
including advisory fees. Investors may be subject to an initial sales charge
when purchasing Class A shares of up to 4.75%. The Fund also offers Class B
shares which, instead of an initial sales charge, are subject to a
contingent deferred sales charge at redemption ranging from 4% during the
first year to 0% after 4 years. Initial sales charge or contingent deferred
sales charge is not reflected in the calculation of average annual total
return shown above. Average annual total return calculated for less than one
year is not annualized.
<PAGE>
FOCUS FUND HIGHLIGHTS
WINTHROP AGGRESSIVE GROWTH FUND
PORTFOLIO CHANGES For the Six Months Ended April 30, 1996
(unaudited)
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
Department 56, Inc.(1) Advo System, Inc.(2)
Jostens, Inc.(1) Baybanks, Inc.(2)
Miller (Herman), Inc.(1) Bob Evans Farms, Inc.
ReliaStar Financial Corp.(1) Crompton & Knowles Corp.(2)
Ruddick Corp.(1) HCC Insurance Holdings, Inc.
Sierra Health Services(1) Invacare Corp.(2)
Smith (A.O.) Corp.(1) Tidewater, Inc.
Universal Foods Corp.(1) Wallace Computer Services, Inc.(2)
(1) New Holdings (2) Deletions
</TABLE>
TEN LARGEST HOLDINGS April 30, 1996 (unaudited)
PERCENT
VALUE OF FUND
----------- -------
Carlisle Companies, Inc. ......................... $ 4,877,850 2.1%
Hanna (M.A.) Co. ................................. 4,795,500 2.1
Anthony Industries, Inc. ......................... 4,651,200 2.0
Lydall, Inc. ..................................... 4,591,900 2.0
Unitog Co. ....................................... 4,289,063 1.9
Methode Electronics, Inc. Cl. A................... 4,047,637 1.8
Teleflex, Inc. ................................... 3,965,063 1.7
Werner Enterprises, Inc. ......................... 3,930,925 1.7
Pioneer Standard Electronics, Inc. ............... 3,809,812 1.7
Sbarro, Inc. ..................................... 3,722,250 1.6
----------- -------
$42,681,200 18.6%
----------- -------
----------- -------
INVESTMENT RESULTS For Periods Ended April 30, 1996 (unaudited)
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------
WINTHROP AGGRESSIVE RUSSELL
GROWTH FUND--CL. A 2000
------------------- ---------------------
Six months................... 11.14% 18.43%
1 year....................... 17.66% 32.99%
5 years...................... 17.79% 17.28%
10 years..................... 10.97% 10.81%
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 dividend or capital gains, but the returns
calculated above have been computed after deduction of all fund expenses
including advisory fees. Investors may be subject to an initial sales charge
when purchasing Class A shares of up to 4.75%. The Fund also offers Class B
shares which, instead of an initial sales charge, are subject to a
contingent deferred sales charge at redemption ranging from 4% during the
first year to 0% after 4 years. Initial sales charge or contingent deferred
sales charge is not reflected in the calculation of average annual total
return shown above. Average annual total return calculated for less than one
year is not annualized.
<PAGE>
FOCUS FUND HIGHLIGHTS
WINTHROP FIXED INCOME FUND
PORTFOLIO CHANGES For the Six Months Ended April 30, 1996
(unaudited)
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
AAB Global Bond(1) First Bank System Floating Rate(2)
7.250%, 05/31/05 5.763%, 02/05/96
Philip Morris Cos., Inc.(1) Philip Morris Cos., Inc.(2)
7.250%, 01/15/03 6.375%, 02/01/06
United States Treasury Notes(1) Southwestern Bell Telephone(2)
6.875%, 08/31/99 6.250%, 10/15/02
United States Treasury Notes United States Treasury Notes(2)
7.250%, 08/15/04 6.000%, 10/15/99
United States Treasury Strips(1) United States Treasury Notes
0.000%, 11/15/07 6.250%, 08/31/00
(1) New Holdings (2) Deletions
</TABLE>
PORTFOLIO CHARACTERISTICS April 30, 1996* (unaudited)
<TABLE>
<S> <C>
30 DAY YIELD, CLASS A: 5.54% AVERAGE YEARS TO MATURITY: 7.0 YEARS
30 DAY YIELD, CLASS B: 5.05% AVERAGE COUPON: 7.19%+
AVERAGE RATING: AA AVERAGE DURATION: 4.3 YEARS
* Weighted Averages
+ Exclusive of U.S. Treasury Bills and Commercial Paper
</TABLE>
INVESTMENT RESULTS For Periods Ended April 30, 1996 (unaudited)
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------
WINTHROP FIXED LEHMAN BROS. GOV'T CORP.
INCOME FUND--CL. A INTERMEDIATE BOND INDEX
------------------- ------------------------
Six months................. .12% .36%
1 year..................... 6.49% 7.84%
5 years.................... 7.20% 7.58%
From Inception (12/86)..... 7.50% 7.89%
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 dividend or capital gains, but the returns
calculated above have been computed after deduction of all fund expenses
including advisory fees. Investors may be subject to an initial sales charge
when purchasing Class A shares of up to 4.75%. The Fund also offers Class B
shares which, instead of an initial sales charge, are subject to a
contingent deferred sales charge at redemption ranging from 4% during the
first year to 0% after 4 years. Initial sales charge or contingent deferred
sales charge is not reflected in the calculation of average annual total
return shown above. Average annual total return calculated for less than one
year is not annualized.
<PAGE>
FOCUS FUND HIGHLIGHTS
WINTHROP MUNICIPAL TRUST FUND
PORTFOLIO CHANGES For the Six Months Ended April 30, 1996
(unaudited)
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
Louisiana Public Facility Authority Revenue Los Angeles County, CA Ser. A(2)
Student Loan Ser. A(1) 6.750%, 07/01/11
6.750%, 09/01/06 Missouri State Envt. Imp. & Energy
Maricopa County, AZ Elem. School Dist.(1) Resources(2)
6.300%, 07/01/07 5.250%, 01/01/05
Missouri State Envt. Imp. & Energy Resource Nevada Municipal Bond Bank
Authority Poll. Control Revenue(1) Project(2)
5.800%, 09/01/09 7.000%, 01/01/04
Orlando, FL Util. Commn. Wtr. & Elec. Rev.(1) Ohio State Water Development
6.375%, 04/01/08 Authority Revenue
Texas Wtr. Development Board Rev.(1) 5.750%, 06/01/04
5.000%, 07/15/07 Washington Suburban Sanitary Dist.
(1) New Holdings Water Supply(2)
6.500%, 11/01/11
(2) Deletions
</TABLE>
PORTFOLIO CHARACTERISTICS April 30, 1996* (unaudited)
<TABLE>
<S> <C>
30 DAY YIELD, CLASS A: 3.85% AVERAGE YEARS TO MATURITY: 7.7 YEARS
30 DAY YIELD, CLASS B: 2.84% AVERAGE COUPON: 5.93%+
AVERAGE RATING: AA AVERAGE DURATION: 6.0 YEARS
* Weighted Averages
+ Exclusive of Commercial Paper
</TABLE>
INVESTMENT RESULTS For Periods Ended April 30, 1996 (unaudited)
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------
WINTHROP MUNICIPAL LIPPER INTERMEDIATE
TRUST FUND--CL. A MUNICIPAL FUND INDEX
------------------- ------------------------
Six months............... .16% .97%
1 year................... 5.75% 6.50%
From Inception (7/93).... 3.42% 4.41%
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 dividend or capital gains, but the returns
calculated above have been computed after deduction of all fund expenses
including advisory fees. Investors may be subject to an initial sales charge
when purchasing Class A shares of up to 4.75%. The Fund also offers Class B
shares which, instead of an initial sales charge, are subject to a
contingent deferred sales charge at redemption ranging from 4% during the
first year to 0% after 4 years. Initial sales charge or contingent deferred
sales charge is not reflected in the calculation of average annual total
return shown above. Average annual total return calculated for less than one
year is not annualized.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
WINTHROP GROWTH FUND
COMMON STOCKS--96.3%
BASIC MATERIALS--5.0% SHARES VALUE
---------- -----------
CHEMICALS-3.0%
Dow Chemical Co............ 21,600 $ 1,919,700
Chemicals, metals,
plastics, packaging
METALS & MINING-0.6%
Nucor Corp. .............. 7,500 421,875
Manufacturer of steel &
steel products
PAPER-1.4%
Mead Corp. ................ 16,100 895,562
Manufacturer of paper,
lumber & wood products
3,237,137
CAPITAL GOODS--9.0%
AEROSPACE & DEFENSE-2.3%
General Dynamics Corp. .... 23,900 1,508,687
Builds & designs nuclear
submarines
BUILDING &
CONSTRUCTION-0.5%
Fluor Corp. ............... 4,700 310,787
Engineering and
construction with coal,
lead
ELECTRICAL EQUIPMENT-1.3%
Emerson Electric Co. ...... 10,200 852,975
Manufacturer of
electric/electronic
products
ENVIRONMENTAL CONTROL-0.6%
WMX Technologies, Inc. .... 10,700 371,825
Comprehensive waste
management services
MACHINERY-4.3%
AGCO Corp. ................ 11,400 287,850
Manufacturer and
distributor of
agricultural equipment
Deere & Co. ............... 42,900 1,667,737
Largest manufacturer of
farm equipment:
construction machinery
Ingersoll-Rand Co. ........ 21,300 825,375
Standard machinery,
equipment: bearings, tools
2,780,962
5,825,236
CONSUMER CYCLICAL--14.0%
APPAREL/TEXTILE-0.9%
Warnaco Group, Inc. ....... 21,000 551,250
Apparel manufacturer
AUTO & TRUCKS-2.0%
General Motors Corp. ...... 23,500 1,274,875
Largest manufacturer of
automotive products
AUTO RELATED-1.0%
Goodyear Tire & Rubber
Co........................ 6,400 333,600
Manufacturer of tires &
rubber products
SHARES VALUE
---------- -----------
Lear Seating Corp. ........ 10,000 $ 330,000
Automobile and light truck
seating systems
663,600
HOUSEHOLD
FURNITURE/APPLIANCES-0.5%
Singer Co. N.V............. 12,000 310,500
Manufacturer of sewing
machines/electrical
products
LEISURE RELATED-2.4%
Disney (Walt) Co........... 22,067 1,368,154
Diversified international
entertainment company
Hasbro, Inc. .............. 5,000 183,750
Manufacturer of toys &
games
1,551,904
PHOTO & OPTICAL-1.1%
Eastman Kodak Co. ......... 9,200 703,800
Photograph apparatus,
chemicals
PRINTING & PUBLISHING-1.1%
Belo (A.H.) Corp. ......... 10,000 372,500
Newspaper publishing:
broadcasting
News Corp. Ltd. ADRs....... 13,500 317,250
International media
company
689,750
RETAIL-GENERAL-5.0%
May Department Stores
Co. ...................... 24,800 1,264,800
Large department store
chain
Sears Roebuck & Co. ..... 39,000 1,945,125
Large retailer of general
merchandise: insurance
3,209,925
8,955,604
CONSUMER STAPLES--22.1%
BEVERAGES-4.8%
PepsiCo, Inc. ............. 49,100 3,117,850
Provides soft drinks/food
services
DRUGS-6.4%
American Home Products
Corp. .................... 4,800 506,400
Drugs, food,
household/ware
Merck & Co., Inc. ......... 28,100 1,700,050
Human & animal
pharmaceuticals
Schering-Plough Corp. ..... 32,900 1,887,637
Pharmaceutical/consumer
products
4,094,087
FOODS-3.7%
General Mills, Inc. ....... 14,700 815,850
Manufactures and markets
food products
Heinz (H. J.) Co. ....... 30,000 1,016,250
Manufactures and markets
food products
Nabisco Holding Corp. Cl.
A......................... 18,000 551,250
Manufactures and sells a
variety of packaged foods
2,383,350
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (continued)
- --------------------------------------------------------------------------------
WINTHROP GROWTH FUND
SHARES VALUE
---------- -----------
HOSPITAL SUPPLIES &
SERVICES-3.1%
Columbia/HCA Healthcare
Corp. .................... 29,600 $ 1,572,500
Healthcare
facilities/services
Health Management
Associates Cl. A*.......... 13,000 416,000
Operates acute care
hospitals
1,988,500
RETAIL-FOOD-1.0%
Safeway, Inc.*............. 20,000 675,000
Food supermarket chain
SOAPS & TOILETRIES-3.1%
Procter & Gamble Co. ...... 23,300 1,968,850
Household, personal care,
food products
14,227,637
ENERGY--9.3%
OIL-DOMESTIC-5.6%
Kerr-McGee Corp. .......... 29,500 1,884,313
Petroleum, chemicals, coal
Unocal Corp. ............ 14,400 462,600
Holding co.; integrated
domestic oil
Texaco, Inc. ............ 15,000 1,282,500
Explore, produce,
transport, refine and
market crude oil, natural
gas, etc.
3,629,413
OIL-INTERNATIONAL-3.7%
Exxon Corp. .............. 27,700 2,354,500
World's leading oil
company
5,983,913
FINANCIAL--13.1%
BANKING-6.9%
BankAmerica Corp. ......... 23,600 1,787,700
Diverse financial products
& services
First Chicago NBD Corp. ... 37,600 1,551,000
Domestic retail banking,
worldwide commercial
banking
Wells Fargo & Co. ......... 4,600 1,116,075
Commercial banking: CA
4,454,775
FINANCIAL SERVICES-3.3%
Capital One Financial
Corp. .................... 14,100 415,950
Bank card issuer/services
Federal Home Loan Mortgage
Corp. .................... 20,200 1,684,175
Provides residential
mortgage funds
2,100,125
INSURANCE-2.9%
American International
Group, Inc. ............... 12,900 1,178,738
International insurance
holding company
AON Corp. ............... 12,700 681,037
Insurance holding company
1,859,775
8,414,675
SHARES VALUE
---------- -----------
TECHNOLOGY--19.7%
ELECTRONICS-3.6%
First Data Corp. .......... 9,000 $ 684,000
Information processing &
related services
Intel Corp. ............... 9,000 609,750
Semiconductor memory
circuits
Molex, Inc. ............... 10,000 325,000
Terminals, connectors,
switches
Motorola, Inc. ............ 11,800 722,750
Semiconductors:
communication equipment
2,341,500
OFFICE
EQUIPMENT/SERVICE-7.9%
Cisco Systems, Inc.*....... 11,800 612,125
Manufacturer of computer
network products
Hewlett-Packard Co. ....... 17,500 1,852,813
Electronic measurement,
analysis & computation
instruments
Microsoft Corp.*........... 10,000 1,133,750
Software for
microcomputers
Oracle Systems Corp.*...... 24,750 835,313
Markets database
management software
Pitney Bowes, Inc. ........ 12,800 624,000
Postage equipment and
related mailing equipment
5,058,001
TELECOMMUNICATIONS-8.2%
ALLTEL Corp. .............. 23,500 772,563
Telecommunications &
information services
holding company
Cellular Communications,
Inc. Cl. A*................ 42,120 2,208,668
U.S. non-wireline cellular
licensee
MCI Communications
Corp. .................... 76,800 2,260,800
Telecommunications
network, services
5,242,031
12,641,532
TRANSPORT & SERVICE--1.7%
AIRLINES-0.4%
Delta Air Lines, Inc. ..... 3,600 289,350
Domestic & international
air service
RAILROADS-1.3%
Union Pacific Corp. ....... 12,000 817,500
Railroad operator
1,106,850
MISCELLANEOUS--2.4%
DIVERSIFIED-2.4%
Loews Corp. ............... 20,000 1,525,000
Tobacco; hotels; insurance
subsidiary
TOTAL COMMON STOCKS
(cost $48,843,209)........ 61,917,584
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (continued)
- --------------------------------------------------------------------------------
WINTHROP GROWTH FUND
PRINCIPAL
AMOUNT VALUE
---------- -----------
COMMERCIAL PAPER--3.6%
General Electric Capital
Corp.
5.230%, 05/06/96........ $ 135,000 $ 134,902
Ford Motor Credit Corp.
5.260%, 05/07/96........ 1,080,000 1,079,053
Ford Motor Credit Corp.
5.240%, 05/08/96........ 320,000 319,674
General Electric Capital
Corp.
5.250%, 05/09/96........ 765,000 764,108
TOTAL COMMERCIAL PAPER
(amortized cost
$2,297,737)............... 2,297,737
VALUE
-----------
TOTAL INVESTMENTS--99.9%
(cost $51,140,946)........ $64,215,321
CASH AND OTHER ASSETS
NET OF
LIABILITIES--0.1%.......... 64,495
NET ASSETS--100%........... $64,279,816
* Non-income producing
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
WINTHROP GROWTH AND INCOME FUND
COMMON STOCKS--86.5%
BASIC MATERIALS--5.4% SHARES VALUE
---------- ------------
CHEMICALS-1.5%
DuPont (E.I.) de Nemours &
Co. ...................... 19,800 $ 1,591,425
Large chemical co.: oil &
gas
OIL & GAS-3.9%
Amoco Corp. .............. 40,000 2,920,000
Integrated domestic oil
Dorchester Hugoton,
Ltd. .................... 3,200 47,200
U.S. natural gas reserves
San Juan Basin Royalty
Trust.................... 190,000 1,187,500
Royalty gas interest in
New Mexico
4,154,700
5,746,125
CAPITAL GOODS/
CONSTRUCTION--4.1%
AEROSPACE & DEFENSE-3.9%
General Dynamics Corp. ... 30,600 1,931,625
Builds & designs nuclear
submarines...............
United Technologies
Corp. ................... 19,500 2,154,750
Aerospace, climate
control systems 4,086,375
BUILDING &
CONSTRUCTION-0.2%
RPM, Inc. Ohio............ 15,000 230,625
Protective coatings
4,317,000
CONSUMER PRODUCTS
& SERVICES--34.4%
AUTO-0.3%
Armor All Products
Corp. ................... 22,000 342,375
Produces auto cleaners
and protectants
BEVERAGES & TOBACCO-6.3%
American Brands, Inc...... 10,000 416,250
Tobacco, life insurance
Guinness PLC ADRs......... 23,100 820,050
Distiller, brewer and
distributor of distilled
spirits and malt
beverages
PepsiCo, Inc.............. 31,000 1,968,500
Provides soft drinks/food
services
Philip Morris Cos.,
Inc...................... 9,000 811,125
Tobacco, brewing, soft
drinks
RJR Nabisco Holdings
Corp..................... 33,000 985,875
Manufactures tobacco and
food products
UST, Inc................ 50,000 1,600,000
Snuff, tobacco, wine,
spirits
6,601,800
CONTAINERS-0.7%
Bemis Co.................. 24,000 777,000
Packaging/adhesive
products
SHARES VALUE
---------- ------------
DRUGS-4.4%
Pfizer, Inc............... 35,700 $ 2,458,838
Healthcare consumer
products, special
chemicals
Pharmacia & Upjohn,
Inc...................... 20,000 765,000
Int'l pharmaceutical &
biotechnological group of
companies
Schering-Plough Corp...... 24,100 1,382,738
Pharmaceutical/consumer
products
4,606,576
FOODS-2.2%
Archer-Daniels-Midland
Co. ..................... 28,100 530,388
Process soybeans: flour
mills
Heinz (H.J.) Co. ......... 52,700 1,785,212
Manufactures and markets
food products
2,315,600
HOSPITAL SUPPLIES &
SERVICES-4.0%
Abbott Laboratories....... 44,500 1,807,812
Diversified line of human
healthcare products &
services
Caremark International,
Inc...................... 50,000 1,381,250
Alternate site healthcare
services
Columbia/HCA Healthcare
Corp...................... 20,000 1,062,500
Healthcare
facilities/services
4,251,562
LEISURE-3.2%
Cedar Fair L.P............ 53,700 1,919,775
Owns and operates
amusement parks
Disney (Walt) Co. ........ 15,739 974,834
Diversified international
entertainment company
Hasbro, Inc............... 7,500 275,625
Manufacturer of toys &
games
Jostens, Inc.............. 10,000 225,000
School class rings,
yearbooks
3,395,234
PRINTING & PUBLISHING-4.8%
Donnelley (R.R.) & Sons,
Inc...................... 48,700 1,753,200
Large commercial printer
Dun & Bradstreet Corp..... 32,000 1,948,000
Business information:
publishing, marketing, TV
New York Times Co. Cl.
A........................ 40,000 1,300,000
Publishes newspapers &
magazines
5,001,200
RETAIL-FOOD & DRUGS-1.7%
Walgreen Co. ............. 54,800 1,753,600
Major retail drug chain
RETAIL-GENERAL-2.5%
Federated Department
Stores, Inc.*............. 54,000 1,802,250
Operates department
stores in U.S.
Newell Co. ............... 30,000 855,000
Manufacturer of high
volume staple consumer
products
2,657,250
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (continued)
- --------------------------------------------------------------------------------
WINTHROP GROWTH AND INCOME FUND
SHARES VALUE
---------- ------------
SOAPS & TOILETRIES-4.3%
Gillette Co. ............. 44,000 $ 2,376,000
Shaving, personal care
products
Procter & Gamble Co. ..... 26,000 2,197,000
Household, personal care,
food products
4,573,000
36,275,197
ENERGY--1.9%
OIL-SUPPLIES &
CONSTRUCTION-1.9%
Western Atlas, Inc.*...... 34,000 2,040,000
Oilfield information
service/automation system
FINANCIAL SERVICES--19.1%
BANKING-10.1%
BankAmerica Corp.......... 27,200 2,060,400
Diverse financial
products & services
First Bank System, Inc.... 55,532 3,345,803
Commercial banking: MN
and Upper Midwest
Mellon Bank Corp.......... 20,000 1,075,000
Commercial banking: PA
Regions Financial Corp.... 12,000 553,500
Commercial banking: AL
Republic New York Corp.... 26,100 1,549,687
Commercial banking: NY &
worldwide
Wells Fargo & Co. ........ 8,500 2,062,313
Commercial banking: CA
10,646,703
INSURANCE-6.2%
Allmerica Financial
Corp..................... 34,000 884,000
Insurance and financial
services & products
American International
Group, Inc............... 31,800 2,905,725
International insurance
holding company
Hartford Steam Boiler
Insp. & Ins. Co. ........ 15,000 723,750
Insurance/engineering
services
ITT Hartford Group,
Inc...................... 26,900 1,314,737
Insurance provider
Progressive Corp.......... 15,000 699,375
Insurance holding company
6,527,587
OTHER-2.8%
Federal Home Loan Mortgage
Corp...................... 35,000 2,918,125
Provides residential
mortgage funds
20,092,415
PUBLIC UTILITIES--4.6%
ELECTRIC-1.0%
CIPSCO, Inc............... 30,200 1,106,075
Holding co.: central IL
public service
GAS-1.7%
Consolidated Natural Gas
Co. ..................... 21,000 981,750
Integrated natural gas
systems
New Jersey Resources
Corp..................... 29,000 822,875
Supplies gas in New
Jersey
1,804,625
SHARES VALUE
---------- ------------
TELEPHONE-1.9%
GTE Corp.................. 45,000 $ 1,951,875
Telephone holding
company; manufacturing
4,862,575
SCIENCE & TECHNOLOGY--7.2%
COMPUTERS-0.6%
Bay Networks, Inc.*....... 20,000 630,000
Networking products and
services
ELECTRONICS-1.3%
Motorola, Inc............. 22,300 1,365,875
Semiconductors:
communications equipment
TELECOMMUNICATIONS-5.3%
Cellular Communications,
Inc. Cl. A*............... 72,000 3,775,500
U.S. non-wireline
cellular licensee
International Cabletel,
Inc.*.................... 13,333 389,990
Telecommunications
services
Vodafone Group ADRs....... 35,326 1,417,456
British cellular operator
5,582,946
7,578,821
TRANSPORT & SERVICE--2.5%
PROFESSIONAL SERVICE-0.7%
United Healthcare Corp.... 12,000 702,000
Manages health
maintenance services
RAILROADS-1.8%
CSX Corp................. 37,000 1,896,250
Railroad, oil/gas,
trucking, mining
2,598,250
MISCELLANEOUS--7.3%
DIVERSIFIED-5.1%
ITT Industries, Inc. ..... 13,600 374,000
Diversified international
concern
Loews Corp................ 44,000 3,355,000
Tobacco; hotels;
insurance subsidiary
Tyco International Ltd.... 44,600 1,722,675
Fire protection systems:
cable, solar
5,451,675
LIMITED
PARTNERSHIP-TIMBER-1.4%
Plum Creek Timber Co.
L.P...................... 55,000 1,464,375
Lumber and wood products
REAL ESTATE INVESTMENT
TRUST-0.8%
General Growth Properties,
Inc...................... 35,000 818,125
Real estate investment
trust
7,734,175
TOTAL COMMON STOCKS
(cost $68,845,792)....... 91,244,558
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (continued)
- --------------------------------------------------------------------------------
WINTHROP GROWTH AND INCOME FUND
SHARES VALUE
---------- ------------
CONVERTIBLE
PREFERRED STOCK--2.1%
Corning, Inc. Mips, Cv.
Pfd. 6.000%.............. 15,000 $ 795,000
Specialty material,
communications, consumer
products/services
RJR Nabisco Holdings
Corp.,
Cv. Pfd. ................ 230,000 1,380,000
Manufactures tobacco and
food products
TOTAL PREFERRED STOCKS
(cost $2,245,000)........ 2,175,000
PRINCIPAL
AMOUNT
----------
CORPORATE BONDS--1.0%
(cost $996,033)
Ford Motor Credit Co.
7.750%, 11/15/02......... $1,000,000 1,041,250
Second largest auto maker
U.S. GOVERNMENT
AGENCIES--1.9%
Federal National Mortgage
Assn.
7.400%, 07/01/04......... 1,000,000 1,028,790
Federal Home Loan Bank
7.460%, 09/09/04......... 1,000,000 1,032,420
TOTAL U.S. GOVERNMENT
AGENCIES
(cost $1,950,815)........ 2,061,210
PRINCIPAL
AMOUNT VALUE
---------- ------------
U.S. GOVERNMENT
OBLIGATIONS--4.4%
United States Treasury
Strips
0.000%, 05/15/11......... $1,425,000 $ 496,142
United States Treasury
Strips
0.000%, 11/15/11......... 3,000,000 1,005,480
United States Treasury
Strips
0.000%, 11/15/14......... 4,000,000 1,068,240
United States Treasury
Strips
0.000%, 11/15/18......... 10,294,000 2,040,785
TOTAL U.S. GOVERNMENT
OBLIGATIONS
(cost $4,959,261)........ 4,610,647
COMMERCIAL PAPER--3.1%
General Electric Capital
Corp.
5.230%, 05/02/96......... 2,100,000 2,099,695
Ford Motor Credit Corp.
5.250%, 05/06/96......... 530,000 529,614
Ford Motor Credit Corp.
5.260%, 05/07/96......... 600,000 599,474
TOTAL COMMERCIAL PAPER
(amortized cost
$3,228,783)............... 3,228,783
TOTAL INVESTMENTS--99.0%
(cost $82,225,684)....... 104,361,448
CASH AND OTHER ASSETS
NET OF
LIABILITIES-1.0%.......... 1,024,045
NET ASSETS--100.0%........ $105,385,493
*Non-income producing
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
WINTHROP AGGRESSIVE GROWTH FUND
COMMON STOCKS--98.1%
BASIC MATERIALS--5.3% SHARES VALUE
---------- ------------
CHEMICALS-4.4%
Puron Co. ................ 111,200 $ 2,418,600
Manufacturer of
non-metallic industrial
products
Hanna (M.A.) Co........... 139,000 4,795,500
Special chemicals,
polymers
LeaRonal, Inc............. 110,600 2,875,600
Electroplating process
10,089,700
PAPER-0.9%
Carauster Industries,
Inc. .................... 79,400 2,004,850
Manufactures low-cost
recycled paperboard
12,094,550
CAPITAL GOODS/
CONSTRUCTION--23.3%
AEROSPACE-2.8%
Teleflex, Inc............. 85,500 3,965,063
Aerospace controls;
medical products
Whittaker Corp.*.......... 103,600 2,356,900
Aerospace: fluid
control/electric systems
6,321,963
BUILDING &
CONSTRUCTION-10.3%
Applied Power, Inc. Cl.
A........................ 88,100 2,764,138
Manufactures hydraulic
industrial/construction
equipment materials
Carlisle Companies,
Inc...................... 104,900 4,877,850
Manufactures rubber,
plastic, metal products
Clarcor, Inc.............. 111,050 2,193,238
Manufactures filtration/
consumer products
Lydall, Inc.*............. 195,400 4,591,900
Engineered fiber
materials
Osmonics, Inc.*........... 176,000 3,652,000
Reverse
osmosis/ultrafiltration
Regal Beloit Corp......... 178,000 3,448,750
Manufactures tools and
power transmissions
RPM, Inc., Ohio........... 139,750 2,148,656
Protective coatings
23,676,532
ELECTRICAL EQUIPMENT-5.9%
AptarGroup, Inc........... 63,900 2,404,238
Manufacturer of packaging
components: pumps, valves
Bearings, Inc............. 81,450 2,606,400
Distributor of bearings &
power transmissions
Belden, Inc............... 105,200 3,129,700
Manufacturer of
electrical wire, cable
EG & G, Inc. ............. 81,300 1,788,600
Scientific equipment,
systems & services
Woodhead Industries,
Inc...................... 226,800 3,515,400
Electrical specialty
products
13,444,338
ENVIRONMENTAL CONTROL-1.5%
Donaldson, Inc............ 128,200 3,365,250
Engine air cleaners,
mufflers
MACHINERY-2.8%
AGCO Corp................. 60,000 1,515,000
Manufacturer and
distributor of
agricultural equipment
SHARES VALUE
---------- ------------
Commercial Intertech
Corp. .................. 170,050 $ 3,230,950
Engineers metal
components
Core Industries, Inc. .... 125,900 1,778,337
Manufacturer of specialty
products
6,524,287
53,332,370
CONSUMER CYCLICAL--30.9%
APPAREL/TEXTILE-3.5%
Interface, Inc. Cl. A..... 16,800 218,400
Manufacturer of
carpet/tile
Oxford Industries,
Inc. .................... 65,000 1,137,500
Manufactures wearing
apparel
Unifi, Inc. .............. 75,000 2,015,625
Texturizing polyester
yarns
Unitog Co.*............... 152,500 4,289,063
Rent/sell industrial
uniforms
Worldtex, Inc.*........... 77,000 442,750
Manufactures covered
elastic yarn
8,103,338
AUTO RELATED-7.9%
Amcast Industrial
Corp. ................... 144,700 2,785,475
Technology--intensive
metal products
Armor All Products
Corp. ................... 124,000 1,929,750
Produces auto cleaners
and protectants
Augat, Inc. .............. 98,100 1,888,425
Manufactures
electromechanical
components
Donnelly Corp. Cl. A...... 169,600 2,522,800
Manufactures auto glass
products
Modine Manufacturing
Co. ..................... 96,400 2,626,900
Auto parts: heating,
air-conditioning
Myers Industries, Inc. ... 182,295 3,304,097
Tire services/plastic
products
Smith (A.O.) Corp. ....... 106,200 2,442,600
Automotive products,
electric motors, piping
systems
Thompson PBE, Inc.*....... 59,900 606,488
Distributor of auto
paints/supplies
18,106,535
FOOD SERVICE/LODGING-4.1%
Marcus Corp. ............. 115,650 3,223,744
Hotels, restaurants,
theatres
Sbarro, Inc. ............. 141,800 3,722,250
Italian fast food
restaurant
Universal Foods Corp. .... 68,400 2,342,700
Specialty products:
yeast, cheese
9,288,694
HOUSEHOLD
FURNITURE/APPLIANCE-5.1%
Chromcraft Revington,
Inc.*..................... 115,800 2,692,350
Designs/manufactures
furniture
Crown Crafts, Inc. ....... 103,900 1,051,988
Manufactures home
furnishing products
Ekco Group, Inc. ......... 296,300 1,814,837
Manufactures
kitchen/household
products
HON Industries, Inc. ..... 75,700 1,968,200
Manufacturer of office
furniture/ home building
products
Rival Co. ................ 82,000 1,906,500
Small household
appliances and personal
care products
Stanhome, Inc. ........... 76,000 2,242,000
Consumer
products/household items
11,675,875
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (continued)
- --------------------------------------------------------------------------------
WINTHROP AGGRESSIVE GROWTH FUND
SHARES VALUE
---------- ------------
LEISURE RELATED-2.9%
Anthony Industries,
Inc. .................... 163,200 $ 4,651,200
Snow skis, fish tackle,
industrial products
Jostens, Inc. ............ 91,800 2,065,500
School class rings,
yearbooks
6,716,700
PRINTING & PUBLISHING-4.6%
American Business
Products, Inc. ........... 147,000 3,197,250
Business forms and
supplies
Banta Corp. .............. 124,250 3,044,125
Printing/graphic/video
services
Lee Enterprises, Inc. .... 136,200 2,996,400
Newspaper publishing:
radio, TV
Meredith Corp. ........... 30,000 1,361,250
Publishing, broadcasting,
real estate & cable TV
10,599,025
RETAIL-GENERAL-2.8%
Arbor Drugs, Inc. ........ 106,750 2,161,688
Operates drugstores in
Michigan
Big B, Inc. .............. 166,400 1,809,600
Operates drugstores in
southeastern states
Department 56, Inc.*...... 98,000 2,437,750
Distributor of
collectibles & gifts
6,409,038
70,899,205
CONSUMER STAPLES--10.3%
DRUGS-2.3%
Bergen Brunswig Corp. Cl.
A........................ 71,900 1,959,275
Pharmaceutical supplier
Scherer (R.P.) Corp.*..... 38,900 1,536,550
Manufacturer of drug
delivery systems
West Co., Inc. ........... 81,700 1,858,675
Pharmaceutical packaging
5,354,500
FOODS-2.3%
Bob Evans Farms, Inc. .... 24,600 387,450
Sausage
products/restaurants
Flowers Industries,
Inc. ..................... 149,550 2,000,231
Baked, convenience, snack
food
Longhorn Steaks, Inc.*.... 70,000 1,898,750
Operates full-service
restaurants
Sanfilippo (John B. &
Son), Inc.*............... 143,800 952,675
Processes/packages/distributes
snacks
5,239,106
HOSPITAL SUPPLIES &
SERVICES-3.6%
Beckman Instruments,
Inc. ..................... 92,600 3,426,200
Manufactures laboratory
instruments
Sierra Health Services*... 76,900 2,537,700
Healthcare provider
SpaceLabs Medical,
Inc.*.................... 103,200 2,296,200
Manufactures patient
monitoring products
8,260,100
RETAIL-FOOD & DRUGS-2.1%
Hannaford Brothers Co. ... 79,600 2,228,800
Distributor:
food/supermarkets
Luby's Cafeterias,
Inc. .................... 102,800 2,467,200
Cafeteria style
restaurants
4,696,000
23,549,706
ENERGY--1.8%
OIL-DOMESTIC-0.3%
Wiser Oil Co. ............ 45,000 607,500
Exploration and
production of oil and gas
in fifteen states
SHARES VALUE
---------- ------------
OIL-SUPPLIES &
CONSTRUCTION-1.5%
Tidewater, Inc. .......... 81,600 $ 3,468,000
Offshore service vessels
4,075,500
FINANCIAL--9.8%
BANKS-4.3%
First American Corp. of
Tennessee................. 78,300 3,347,325
Commercial banking: TN
First Commerce Corp. ..... 102,100 3,471,400
Commercial banking: LA,
MS
FirstMerit Corp. ......... 105,000 3,176,250
Commercial banking: OH
9,994,975
INSURANCE-5.5%
Hartford Steam Boiler
Insp. & Ins. Co. ........ 65,700 3,170,025
Insurance/engineering
services
HCC Insurance Holdings,
Inc.*.................... 34,300 2,006,550
Underwrites property &
casualty insurance
Mercury Finance Co. ...... 68,100 783,150
Consumer finance &
insurance
Poe & Brown, Inc. ........ 87,700 2,137,687
General insurance agency
Protective Life Corp. .... 52,700 1,831,325
Financial service
provider
ReliaStar Financial
Corp. ................... 60,000 2,617,500
Insurance/financial
services
12,546,237
22,541,212
PUBLIC UTILITIES--1.0%
GAS-1.0%
WICOR, Inc. .............. 67,450 2,318,594
Utility holding:
Wisconsin gas
TECHNOLOGY--7.2%
ELECTRONICS-4.6%
DH Technology, Inc.*...... 53,700 1,355,925
Manufactures dot matrix
printheads
Methode Electronics, Inc.
Cl. A.................... 241,650 4,047,637
Electronic component
devices
Pioneer Standard
Electronics, Inc. ........ 234,450 3,809,812
Distributor: electronic
components
Platinum Technology,
Inc.*..................... 75,000 1,096,875
Develops educational
software products
Tech Data Corp.*.......... 10,000 195,000
Distributor of computer
hardware products
10,505,249
OFFICE EQUIPMENT-2.2%
Hunt Manufacturing
Corp. ................... 173,500 2,906,125
Manufactures &
distributes office and
art products
Miller (Herman), Inc. .... 72,700 2,226,437
Manufacturer of office
furniture
5,132,562
TELECOMMUNICATIONS-0.4%
Cellular Communications,
Inc. Cl. A*............... 18,000 943,875
U.S. non-wireline
cellular licensee
16,581,686
TRANSPORT & SERVICE--6.0%
PROFESSIONAL SERVICES-4.3%
CDI Corp.*................ 105,000 3,097,500
Engineering & technical
services
Interim Services, Inc.*... 62,700 2,719,612
Temporary help services
Jacobs Engineering Group,
Inc.*.................... 84,050 2,332,387
Full service engineering
organization
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (continued)
- --------------------------------------------------------------------------------
WINTHROP AGGRESSIVE GROWTH FUND
SHARES VALUE
---------- ------------
Rollins, Inc.*............ 69,600 $ 1,566,000
Protective services/pest
control
9,715,499
TRUCKING & SHIPPING-1.7%
Werner Enterprises,
Inc. ..................... 162,100 3,930,925
Motor carrier: general
freight
13,646,424
MISCELLANEOUS--2.5%
DIVERSIFIED-1.8%
Brady (W.H.) Cl. A........ 107,700 2,046,300
Manufactures adhesives &
coatings
Ruddick Corp. ............ 166,600 2,207,450
Food supermarkets;
thread/yarn
4,253,750
REAL ESTATE INVESTMENT
TRUST-0.7%
Merry Land & Investment
Co., Inc. ............... 75,000 1,575,000
Acquisition, development
& operation of income
producing properties
5,828,750
TOTAL COMMON STOCKS
(cost $185,943,228)...... 224,867,997
COMMERCIAL PRINCIPAL
PAPER--1.9% AMOUNT VALUE
---------- ------------
General Electric Capital
Corp.
5.270%, 05/01/96......... $ 330,000 $ 330,000
General Electric Capital
Corp.
5.200%, 05/02/96......... 607,000 606,912
General Electric Capital
Corp.
5.220%, 05/03/96......... 595,000 594,828
Ford Motor Credit Corp.
5.230%, 05/06/96......... 2,030,000 2,028,525
General Electric Capital
Corp.
5.250%, 05/09/96......... 810,000 809,055
TOTAL COMMERCIAL PAPER
(amortized cost
$4,369,320).............. 4,369,320
TOTAL INVESTMENTS--100.0%
(cost $190,312,548)...... 229,237,317
CASH AND OTHER ASSETS
NET OF
LIABILITIES--(0.0)%....... (60,603)
NET ASSETS--100.0%........ $229,176,714
* Non-income producing
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
WINTHROP FIXED INCOME FUND
U.S. GOVERNMENT PRINCIPAL
OBLIGATIONS--51.2% AMOUNT VALUE
---------- ------------
United States Treasury
Bills
4.970%, 06/27/96......... $1,250,000 $ 1,240,163
United States Treasury
Notes
8.875%, 11/15/97......... 250,000 260,702
United States Treasury
Notes
9.000%, 05/15/98......... 500,000 527,775
United States Treasury
Notes
8.250%, 07/15/98......... 950,000 991,610
United States Treasury
Notes
9.250%, 08/15/98......... 500,000 532,980
United States Treasury
Notes
8.000%, 08/15/99......... 750,000 787,230
United States Treasury
Notes
6.875%, 08/31/99......... 2,000,000 2,034,439
United States Treasury
Notes
7.500%, 10/31/99......... 4,000,000 4,146,120
United States Treasury
Notes
7.750%, 01/31/00......... 2,500,000 2,615,625
United States Treasury
Notes
8.500%, 02/15/00......... 500,000 535,790
United States Treasury
Notes
6.250%, 08/31/00......... 1,000,000 994,290
United States Treasury
Notes
7.750%, 02/15/01......... 2,000,000 2,108,720
United States Treasury
Notes
8.000%, 05/15/01......... 1,400,000 1,493,268
United States Treasury
Notes
7.500%, 11/15/01......... 2,500,000 2,616,975
United States Treasury
Notes
6.375%, 08/15/02......... 1,300,000 1,289,574
United States Treasury
Notes
7.250%, 05/15/04......... 2,000,000 2,071,180
United States Treasury
Notes
7.250%, 08/15/04......... 2,250,000 2,330,280
United States Treasury
Strips
0.000%, 11/15/07......... 5,300,000 2,406,677
TOTAL U.S. GOVERNMENT
OBLIGATIONS
(cost $28,939,996)....... 28,983,398
U.S. GOVERNMENT
AGENCIES--24.3%
Federal Home Loan Mortgage
Corp.
7.000%, 07/01/99......... 1,244,241 1,250,462
Federal National Mortgage
Assn.
8.550%, 08/30/99......... 400,000 425,740
Federal Home Loan Mortgage
Corp.
8.750%, 10/01/01......... 60,276 61,896
Tennessee Valley Power
Authority
7.450%, 10/15/01......... 1,500,000 1,526,250
Federal National Mortgage
Assn.
7.900%, 04/10/02......... 650,000 656,838
Federal National Mortgage
Assn.
Pool #76368 9.250%,
09/01/03................. 157,273 165,432
Federal National Mortgage
Assn.
Pool #76378 9.250%,
09/01/03.................. 274,362 288,594
Federal National Mortgage
Assn.
7.600%, 04/14/04......... 1,000,000 1,009,770
Federal National Mortgage
Assn.
8.250%, 10/12/04......... 600,000 620,730
Federal Home Loan Mortgage
Corp.
8.800%, 11/17/04......... 500,000 513,590
Federal National Mortgage
Assn.
8.550%, 12/10/04......... 1,000,000 1,023,220
Federal National Mortgage
Assn.
6.700%, 11/10/05......... 1,000,000 957,970
Government National
Mortgage Assn.
9.500%, 01/15/10......... 402,758 429,315
Federal Home Loan Mortgage
Corp.
5.000%, 12/15/12......... 1,000,000 986,852
PRINCIPAL
AMOUNT VALUE
---------- ------------
Federal Home Loan Mortgage
Corp.
10.000%, 04/01/16........ $ 209,874 $ 230,074
Federal National Mortgage
Assn.
9.000%, 09/01/17......... 769,989 805,120
Federal Home Loan Mortgage
Corp.
7.779%, 10/01/19......... 1,112,890 1,150,450
Federal National Mortgage
Assn.
9.000%, 09/01/20......... 274,828 287,367
Government National
Mortgage Assn.
9.500%, 09/15/20......... 21,143 22,656
Federal National Mortgage
Assn.
7.038%, 12/01/21......... 1,301,620 1,331,719
TOTAL U.S. GOVERNMENT
AGENCIES
(cost $13,671,578)....... 13,744,045
CORPORATE BONDS--22.3%
CANADIAN & FOREIGN-4.0%
Province of Ontario Canada
7.750%, 06/04/02......... 1,500,000 1,565,625
Province of Ontario Canada
7.000%, 08/04/05......... 700,000 693,000
2,258,625
CONSUMER PRODUCTS &
SERVICES-2.5%
Philip Morris Cos., Inc.
7.250%, 01/15/03......... 1,400,000 1,403,500
FINANCIAL-12.4%
AAB Global Bond
7.250%, 05/31/05......... 2,500,000 2,503,125
Ford Motor Credit Co.
7.750%, 11/15/02......... 350,000 364,437
Salomon, Inc.
6.750%, 02/15/03......... 500,000 474,375
Household Finance Corp.
Sr. Note
8.000%, 08/01/04......... 600,000 630,000
American General Corp.
7.750%, 04/01/05......... 2,050,000 2,119,188
Dean Witter Discover & Co.
6.300%, 01/15/06......... 1,000,000 930,000
7,021,125
INDUSTRIAL-1.7%
DuPont (E.I.) de Nemours &
Co.
8.500%, 02/15/03......... 900,000 958,500
TRANSPORTATION-1.7%
Union Pacific Corp.
6.000%, 09/01/03......... 1,000,000 938,750
TOTAL CORPORATE BONDS
(cost $12,904,233)....... 12,580,500
COMMERCIAL PAPER--1.1%
(amortized cost $609,826)
Ford Motor Credit Corp.
5.140%, 05/03/96......... 610,000 609,826
TOTAL INVESTMENTS--98.9%
(cost $56,125,633)....... 55,917,769
CASH AND OTHER ASSETS
NET OF
LIABILITIES--1.1%......... 642,605
NET ASSETS--100%.......... $ 56,560,374
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
WINTHROP MUNICIPAL TRUST FUND
PRINCIPAL
MUNICIPAL BONDS--98.5% AMOUNT VALUE
---------- ------------
ARIZONA-6.8%
Arizona State Wastewater
Management Authority
6.000%, 07/01/00.......... $ 600,000 $ 629,250
Arizona State University
Refunding Ser. A
6.500%, 07/01/01.......... 750,000 810,938
Maricopa County, Arizona
Elementary School District
6.300%, 07/01/07.......... 1,000,000 1,072,500
2,512,688
CALIFORNIA-2.7%
California State
5.500%, 04/01/07.......... 1,000,000 1,022,500
COLORADO-2.7%
Denver, Colorado City &
County Airport
6.750%, 11/15/22.......... 1,000,000 1,022,500
FLORIDA-3.0%
Orlando, Florida Utilities
Commn
Water & Electric Revenue
6.375%, 04/01/08.......... 1,000,000 1,103,750
GEORGIA-3.3%
Georgia State General
Obligation Ser. B
5.500%, 04/01/99.......... 1,200,000 1,237,944
ILLINOIS-8.4%
Chicago, Illinois Met. Wtr.
Reclamation Dist.
5.750%, 12/01/01.......... 1,000,000 1,053,750
Chicago, Illinois
5.800%, 01/01/08.......... 1,000,000 1,027,500
Chicago, Illinois Met. Wtr.
Reclamation Dist.
6.300%, 12/01/09.......... 1,000,000 1,056,250
3,137,500
INDIANA-2.9%
Indiana University Revenue
Student Fee Ser. K
6.500%, 08/01/05.......... 1,000,000 1,095,000
IOWA-2.9%
Iowa Student Loan
Liquidation Corp.
6.800%, 03/01/05.......... 1,000,000 1,061,250
KENTUCKY-3.7%
Kentucky State Turnpike
Authority
6.500%, 07/01/07.......... 1,250,000 1,389,062
LOUISIANA-2.8%
Louisiana Public Facility
Authority Revenue Student
Loan Ser. A
6.750%, 09/01/06.......... 1,000,000 1,048,750
MASSACHUSETTS-8.3%
Massachusetts State
Water Resources Ser. B
5.700%, 11/01/02.......... 1,000,000 1,041,250
Massachusetts Bay Transit
Authority
5.300%, 03/01/04.......... 1,000,000 1,020,000
Massachusetts State
Refunding Ser. B
5.500%, 11/01/07.......... 1,000,000 1,017,500
3,078,750
MISSOURI-2.7%
Missouri State Environment
Import & Energy Resource
Authority Poll. Cntrl.
Revenue
5.800%, 09/01/09.......... 1,000,000 1,012,500
NEBRASKA-2.7%
Omaha Public Power
District,
Nebraska Electric Ser. D
5.100%, 02/01/08.......... 1,000,000 987,500
PRINCIPAL
AMOUNT VALUE
---------- ------------
NEW JERSEY-3.0%
University Medicine &
Dentistry
New Jersey Ser. E
6.400%, 12/01/07.......... $1,000,000 $ 1,097,500
NEW MEXICO-2.8%
Bernalillo County, New
Mexico
5.800%, 08/01/98.......... 1,000,000 1,035,000
NEW YORK-5.6%
New York State Local
Assistance Corp. Ser. B
7.125%, 04/01/03.......... 1,000,000 1,113,750
New York City, New York
Ser. G
5.750%, 02/01/08.......... 1,000,000 962,500
2,076,250
OHIO-5.0%
Columbus, Ohio Sewer
Refunding
6.200%, 06/01/04.......... 740,000 801,050
Ohio State Water
Development
Authority Revenue
5.750%, 06/01/04.......... 1,000,000 1,041,250
1,842,300
PENNSYLVANIA-2.8%
Allegheny County
Pennsylvania Sanitation
Authority Sewer Revenue
5.200%, 12/01/00.......... 1,000,000 1,026,250
PUERTO RICO-2.7%
Puerto Rico Commonwealth
Refunding
5.100%, 07/01/02.......... 1,000,000 1,003,750
TEXAS-20.9%
University of Texas,
Permanent
University Funding
5.000%, 07/01/01.......... 1,000,000 1,021,250
San Antonio, Texas Water
Revenue
6.100%, 05/15/02.......... 1,000,000 1,066,250
Tarrant County, Texas
Junior College
District Refunding Ser. A
6.375%, 02/15/04.......... 1,500,000 1,605,000
Texas Water Development
Board Revenue
5.000%, 07/15/07.......... 1,100,000 1,065,625
Dallas, Texas
5.500%, 02/15/08.......... 1,000,000 1,006,250
Texas State Refunding Ser.
A
6.000%, 10/01/08.......... 1,000,000 1,066,250
San Antonio, Texas Electric
& Gas
5.000%, 02/01/12.......... 1,000,000 926,250
7,756,875
VIRGINIA-2.8%
Arlington County
5.250%, 08/01/98.......... 1,000,000 1,023,750
TOTAL MUNICIPAL BONDS
(cost $36,538,246)........ 36,571,369
COMMERCIAL PAPER--0.4%
(amortized cost $149,000)
Ford Motor Credit Corp.
5.200%, 05/01/96.......... 149,000 149,000
TOTAL INVESTMENTS--98.9%
(cost $36,687,246)........ 36,720,369
CASH AND OTHER ASSETS
NET OF
LIABILITIES--1.1%.......... 413,745
NET ASSETS--100%........... $ 37,134,114
See notes to financial statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<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 $51,140,946,
$82,225,684, $190,312,548,
$56,125,633 and $36,687,246,
respectively).................. $64,215,321 $104,361,448 $229,237,317 $55,917,769 $36,720,369
Cash............................. 8,768 75,684 867 -- --
Receivable for investment
securities sold................ -- 878,542 1,203,420 -- 1,048,696
Receivable for capital stock
sold............................ 225,664 216,862 885,809 232,800 4,764
Dividends and interest
receivable...................... 55,579 244,369 118,127 877,521 582,047
Reimbursement due from advisor... -- -- -- 50,113 68,742
Deferred organization costs (Note
A).............................. -- -- -- -- 47,529
----------- ------------ ------------ ----------- -----------
Total assets................. 64,505,332 105,776,905 231,445,540 57,078,203 38,472,147
----------- ------------ ------------ ----------- -----------
LIABILITIES:
Payable to investment advisor.... 39,064 58,024 146,199 29,705 19,358
Payable for investment securities
purchased....................... -- 60,500 1,789,030 -- 1,052,515
Payable for capital stock
redeemed........................ 25,125 64,869 106,164 198,969 63,688
Dividend payable................. -- -- -- 266,158 125,012
Accrued expenses and other
liabilities.................... 161,327 208,019 227,433 22,997 77,460
----------- ------------ ------------ ----------- -----------
Total liabilities............ 225,516 391,412 2,268,826 517,829 1,338,033
----------- ------------ ------------ ----------- -----------
NET ASSETS:
Applicable to 5,338,516,
6,553,605, 12,745,203,
5,684,502 and 3,759,398 shares
outstanding, respectively...... $64,279,816 $105,385,493 $229,176,714 $56,560,374 $37,134,114
----------- ------------ ------------ ----------- -----------
----------- ------------ ------------ ----------- -----------
NET ASSETS CONSIST OF:
Capital paid-in.................. $46,743,329 $ 75,694,311 $199,055,934 $57,115,064 $37,826,122
Undistributed net investment
income......................... 80,018 126,505 465,146 -- --
Accumulated net realized gain
(loss) on investments.......... 4,382,094 7,428,913 (9,269,135) (346,826) (725,131)
Net unrealized appreciation
(depreciation) of investments... 13,074,375 22,135,764 38,924,769 (207,864) 33,123
----------- ------------ ------------ ----------- -----------
$64,279,816 $105,385,493 $229,176,714 $56,560,374 $37,134,114
----------- ------------ ------------ ----------- -----------
----------- ------------ ------------ ----------- -----------
CLASS A SHARES:
Net assets....................... $63,819,652 $103,640,278 $227,345,474 $55,996,408 $37,121,509
----------- ------------ ------------ ----------- -----------
Shares outstanding............... 5,300,264 6,445,002 12,643,260 5,627,824 3,758,121
----------- ------------ ------------ ----------- -----------
Net asset value and redemption
value per share.................. $12.04 $16.08 $17.98 $9.95 $9.88
Maximum offering price per share
(net asset value plus sales
charge of
4.75% of offering price)......... $12.64 $16.88 $18.88 $10.45 $10.37
CLASS B SHARES:
Net assets....................... $ 460,164 $ 1,745,215 $ 1,831,240 $ 563,966 $ 12,605
----------- ------------ ------------ ----------- -----------
Shares outstanding............... 38,252 108,603 101,943 56,678 1,277
----------- ------------ ------------ ----------- -----------
Net asset value and offering price
per share........................ $12.03 $16.07 $17.96 $9.95 $9.87
----------- ------------ ------------ ----------- -----------
----------- ------------ ------------ ----------- -----------
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS for the Six Months Ended April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND AGGRESSIVE FIXED MUNICIPAL
INVESTMENT INCOME: GROWTH FUND INCOME FUND GROWTH FUND INCOME FUND TRUST FUND
----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Dividends........................ $ 526,352 $1,137,745 $2,049,895 $ -- $ --
Interest......................... 52,817 322,545 113,160 1,906,220 973,388
----------- ----------- ----------- ----------- ----------
Total investment income...... 579,169 1,460,290 2,163,055 1,906,220 973,388
----------- ----------- ----------- ----------- ----------
EXPENSES:
Investment advisory fees (Note
B).............................. 225,227 339,630 858,530 180,344 123,005
Distribution fees--Class A (Note
B).............................. 130,176 212,527 466,842 124,639 85,709
Distribution fees--Class B (Note
B).............................. 300 1,338 2,163 569 14
Legal fees....................... 9,000 12,000 28,000 9,000 7,000
Transfer agent fees.............. 40,000 63,000 142,000 31,000 20,000
Custodian fees................... 23,000 34,000 60,000 29,000 20,000
Auditing fees.................... 6,000 9,000 20,000 6,000 5,000
Printing fees.................... 7,000 10,000 19,000 6,000 5,000
Trustees' fees................... 5,000 6,000 11,000 4,000 3,000
Miscellaneous.................... 13,311 17,364 31,621 16,000 14,000
Amortization of organization
costs
(Note A)....................... -- -- -- -- 10,563
----------- ----------- ----------- ----------- ----------
459,014 704,859 1,639,156 406,552 293,291
Less expenses reimbursed by
investment advisor.......... -- -- -- (117,603 ) (96,473 )
----------- ----------- ----------- ----------- ----------
Net expenses................. 459,014 704,859 1,639,156 288,949 196,818
----------- ----------- ----------- ----------- ----------
NET INVESTMENT INCOME............... 120,155 755,431 523,899 1,617,271 776,570
----------- ----------- ----------- ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS--Note C:
Net realized gain (loss)
on investments................. 4,391,419 7,427,701 5,986,654 (134,636 ) 173,824
Net change in unrealized
appreciation on investments.... 3,332,615 4,299,969 16,275,405 (1,482,400 ) (871,900 )
----------- ----------- ----------- ----------- ----------
Net realized and unrealized gain
(loss) on investments.......... 7,724,034 11,727,670 22,262,059 (1,617,036 ) (698,076 )
----------- ----------- ----------- ----------- ----------
INCREASE IN NET ASSETS FROM
OPERATIONS......................... $7,844,189 $12,483,101 $22,785,958 $ 235 $ 78,494
----------- ----------- ----------- ----------- ----------
----------- ----------- ----------- ----------- ----------
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH FUND GROWTH AND INCOME FUND
----------------------------- -----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 04/30/96* 10/31/95 ENDED 04/30/96* 10/31/95
--------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................. $ 120,155 $ 184,388 $ 755,431 $1,462,066
Net realized gain on investments....... 4,391,419 3,855,434 7,427,701 2,114,892
Net change in unrealized appreciation
on investments....................... 3,332,615 2,214,074 4,299,969 8,320,026
--------------- ----------- --------------- -----------
Increase in net assets from
operations............................ 7,844,189 6,253,896 12,483,101 11,896,984
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Investment income...................... (199,180) (58,068 ) (755,625) (1,501,908 )
Realized gains on investments.......... (3,854,607) (3,314,586 ) (2,114,222) (2,851,832 )
CAPITAL STOCK TRANSACTIONS--(NET) Note
D........................................ 4,543,264 610,099 7,797,336 13,411,750
--------------- ----------- --------------- -----------
Total increase in net assets........... 8,333,666 3,491,341 17,410,590 20,954,994
NET ASSETS:
Beginning of year...................... 55,946,150 52,454,809 87,974,903 67,019,909
--------------- ----------- --------------- -----------
End of period (including undistributed
net investment income of $80,018 and
$159,043 for the Growth Fund at
04/30/96 and 10/31/95, respectively,
and $126,505 and $126,699 for the
Growth and Income Fund at 04/30/96
and 10/31/95, respectively).......... $64,279,816 $55,946,150 $ 105,385,493 $87,974,903
--------------- ----------- --------------- -----------
--------------- ----------- --------------- -----------
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE
GROWTH FUND FIXED INCOME FUND
----------------------------- ----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 04/30/96* 10/31/95 ENDED 04/30/96* 10/31/95
--------------- ------------ --------------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................... $ 523,899 $ 405,162 $ 1,617,271 $2,662,154
Net realized gain (loss) on
investments............................. 5,986,654 4,891,763 (134,636) 221,384
Net change in unrealized appreciation on
investments............................. 16,275,405 13,889,695 (1,482,400) 2,303,777
--------------- ------------ --------------- -----------
Increase in net assets from operations... 22,785,958 19,186,620 235 5,187,315
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Investment income........................ (463,915) -- (1,617,271) (2,662,154 )
Realized gains on investments............ (4,882,667) (6,165,603) -- --
CAPITAL STOCK TRANSACTIONS--(NET) Note D.... 9,007,709 45,084,159 4,292,624 12,209,472
--------------- ------------ --------------- -----------
Total increase in net assets............. 26,447,085 58,105,176 2,675,588 14,734,633
NET ASSETS:
Beginning of year........................ 202,729,629 144,624,453 53,884,786 39,150,153
--------------- ------------ --------------- -----------
End of period (including undistributed
net investment income of $465,146 and
$405,162 for the Aggressive Growth Fund
at 04/30/96 and 10/31/95,
respectively).......................... $ 229,176,714 $202,729,629 $56,560,374 $53,884,786
--------------- ------------ --------------- -----------
--------------- ------------ --------------- -----------
</TABLE>
* Unaudited
See notes to financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL
TRUST FUND
------------------------------
SIX MONTHS YEAR ENDED
ENDED 04/30/96* 10/31/95
--------------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income.......................................... $ 776,570 $ 1,426,670
Net realized gain (loss) on investments........................ 173,824 (559,335)
Net change in unrealized appreciation on investments........... (871,900) 2,549,446
--------------- -----------
Increase in net assets from operations......................... 78,494 3,416,781
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income.............................................. (776,570) (1,426,670)
CAPITAL STOCK TRANSACTIONS--(NET) Note D.......................... (1,226,588) 2,598,461
--------------- -----------
Total increase (decrease) in net assets........................ (1,924,664) 4,588,572
NET ASSETS:
Beginning of year.............................................. 39,058,778 34,470,206
--------------- -----------
End of period.................................................. $37,134,114 $39,058,778
--------------- -----------
--------------- -----------
</TABLE>
* Unaudited
See notes to financial statements.
<PAGE>
WINTHROP FOCUS FUNDS--NOTES TO FINANCIAL STATEMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
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"). On
February 7, 1996, at a special meeting, the shareholders of Winthrop approved a
new multiple class distribution structure. Effective February 28, 1996, each
Fund commenced offering two classes of shares. Class A shares are sold with a
front-end sales charge of up to 4.75%. Class B shares are sold with a contingent
deferred sales charge which declines from 4% to zero depending on the period of
time the shares were held. Both classes have identical voting, dividend,
liquidation and other rights, except that each class bears different
distribution expenses and has exclusive voting rights with respect to its
distribution plan. Wood Struthers & Winthrop Management Corp. (the "Advisor") is
a wholly-owned subsidiary of Donaldson, Lufkin & Jenrette Securities
Corporation, which is a wholly-owned 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 credit worthy 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 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. Interest income is accrued daily. Security
transactions are accounted for on the date securities are purchased or sold.
Security gains and losses are determined on the identified cost basis.
(5) DIVIDENDS AND DISTRIBUTIONS: Dividends and distributions to shareholders
are recorded on the ex-dividend date.
<PAGE>
WINTHROP FOCUS FUNDS--NOTES TO FINANCIAL STATEMENTS April 30, 1996 (continued)
- --------------------------------------------------------------------------------
(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 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. For the period November 1, 1995
through October 31, 1996 the Advisor may, in its sole discretion, determine to
reduce its management fees and reimburse operating expenses by the amount that
Total Fund Operating Expenses exceed 1.00% of the average daily net assets of
the Class A shares and 1.70% of the average daily net assets of the Class B
shares of the Fixed Income Fund. For the Municipal Trust Fund, during the period
November 1, 1995 through May 31, 1996, the Advisor reduced its management fees
and reimbursed operating expenses by the amount that Total Fund Operating
Expenses exceeded 1.00% of the average daily net assets of the Class A shares
and 1.70% of the average daily net assets of the Class B shares. For the period
June 1, 1996 through October 31, 1996, the Advisor has agreed, with respect to
the Municipal Trust Fund, to reduce its management fees and reimburse operating
expenses by the amount that Total Fund Operating Expenses exceed .50% of the
average daily net assets of its Class A shares and 1.20% of the average daily
net assets of its Class B shares. After October 31, 1996, the Advisor may, in
its sole discretion, determine to continue to pay certain expenses of the Fixed
Income Fund or the Municipal Trust Fund or it may 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 $117,603 and $96,473, respectively, during the six months ended April 30,
1996.
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 .30 of
1% of the average daily net assets attributable to Class A shares and 1% of the
average daily net assets attributable to Class B shares. Under the Agreement,
each Fund is obligated to pay distribution and/or service fees to the
Distributor as compensation for its distribution and service activities, not as
reimbursement for specific expenses incurred. If the Distributor's expenses
exceed its distribution and service fees, the Fund will not be obligated to pay
any additional expenses. If the Distributor's expenses are less than such
distribution and service fees, it will retain its full fees and realize a
profit. In addition, the Agreement provides that the Advisor may use its own
resources including fees from investment companies (including Winthrop) to
finance the distribution of Winthrop's shares.
<PAGE>
WINTHROP FOCUS FUNDS--NOTES TO FINANCIAL STATEMENTS April 30, 1996 (continued)
- --------------------------------------------------------------------------------
NOTE (C) INVESTMENT TRANSACTIONS: For federal income tax purposes, the cost of
securities owned at April 30, 1996, was substantially the same as the cost of
securities for financial statement purposes. At April 30, 1996, the components
of the net unrealized appreciation (depreciation) 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).......................... $13,592,044 $23,296,992 $42,851,763 $ 630,302 $ 386,646
Gross depreciation (investments
having an excess of cost over
value)......................... (517,669) (1,161,228) (3,926,994) (838,166) (353,523)
----------- --------------- -------- ------------ -------
Net unrealized appreciation
(depreciation) of
investments.................... $13,074,375 $22,135,764 $38,924,769 $ (207,864) $ 33,123
----------- --------------- -------- ------------ -------
----------- --------------- -------- ------------ -------
</TABLE>
For the six months ended April 30, 1996, 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....................... $22,072,238 $25,944,413 $48,084,559 $20,279,794 $14,589,847
Sales........................... 21,349,839 23,177,110 45,826,359 14,863,518 15,429,985
</TABLE>
NOTE (D) SHARES OF BENEFICIAL INTEREST: There is an unlimited number of shares
($0.01 par value) authorized.
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
GROWTH FUND GROWTH & INCOME FUND
----------------------------------------------------- ---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995 APRIL 30, 1996 OCTOBER 31, 1995
------------------------- ------------------------- ----------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold........... 334,405 $ 3,849,255 532,740 $ 5,466,192 612,307 $ 9,370,570 1,461,088 $ 19,316,205
Shares issued through
reinvestment of
dividends............ 323,919 3,499,542 287,842 2,878,417 158,790 2,334,900 263,368 3,373,871
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
658,324 7,348,797 820,582 8,344,609 771,097 11,705,470 1,724,456 22,690,076
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
Shares redeemed....... (285,163) (3,260,926) (743,608) (7,734,510) (363,026) (5,646,076) (697,917) (9,278,326)
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
Net increase.......... 373,161 $ 4,087,871 76,974 $ 610,099 408,071 $ 6,059,394 1,026,539 $ 13,411,750
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
CLASS B
Shares sold........... 38,252 $ 455,393 108,607 $ 1,737,960
Shares Issued through
reinvestment of
dividends............ 0 0 172 2,750
---------- ------------ --------- -----------
38,252 455,393 108,779 1,740,710
---------- ------------ --------- -----------
Shares redeemed....... 0 0 (176) (2,768)
---------- ------------ --------- -----------
Net increase.......... 38,252 $ 455,393 108,603 $ 1,737,942
---------- ------------ --------- -----------
---------- ------------ --------- -----------
</TABLE>
<PAGE>
WINTHROP FOCUS FUNDS--NOTES TO FINANCIAL STATEMENTS April 30, 1996 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH FUND FIXED INCOME FUND
----------------------------------------------------- ---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995 APRIL 30, 1996 OCTOBER 31, 1995
------------------------- ------------------------- ----------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold........... 1,468,128 $ 25,061,268 4,656,242 $ 72,414,139 1,088,816 $11,173,732 2,205,344 $ 21,904,065
Shares issued through
reinvestment of
dividends............ 299,334 4,999,339 382,815 5,692,460 93,317 956,666 178,087 1,772,956
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
1,767,462 30,060,607 5,039,057 78,106,599 1,182,133 12,130,398 2,383,431 23,677,021
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
Shares redeemed....... (1,328,532) (22,853,673) (2,074,286) (33,022,440) (829,202) (8,410,293) (1,159,789) (11,467,549)
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
Net increase.......... 438,930 $ 7,206,934 2,964,771 $ 45,084,159 352,931 $ 3,720,105 1,223,642 $ 12,209,472
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
---------- ------------ ---------- ------------ --------- ----------- ---------- ------------
CLASS B
Shares sold........... 102,053 $ 1,802,739 56,647 $ 572,203
Shares issued through
reinvestment of
dividends............ 0 0 65 658
---------- ------------ --------- -----------
102,053 1,802,739 56,712 572,861
---------- ------------ --------- -----------
Shares redeemed....... (110) (1,964) (34) (342)
---------- ------------ --------- -----------
Net increase.......... 101,943 $ 1,800,775 56,678 $ 572,519
---------- ------------ --------- -----------
---------- ------------ --------- -----------
<CAPTION>
MUNICIPAL TRUST FUND
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold........... 366,809 $ 3,700,940 1,175,181 $ 11,478,178
Shares issued through
reinvestment of
dividends............ 49,993 504,680 112,223 1,098,286
---------- ------------ ---------- ------------
416,802 4,205,620 1,287,404 12,576,464
---------- ------------ ---------- ------------
Shares redeemed....... (542,518) (5,444,820) (1,030,022) (9,978,003)
---------- ------------ ---------- ------------
Net increase
(decrease)........... (125,716) $ (1,239,200) 257,382 $ 2,598,461
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
CLASS B
Shares sold........... 1,276 $ 12,600
Shares issued through
reinvestment of
dividends............ 1 12
---------- ------------
1,277 12,612
---------- ------------
Shares redeemed....... 0 0
---------- ------------
Net increase.......... 1,277 $ 12,612
---------- ------------
---------- ------------
</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)
--------- ---------- ------------ ---------- ------------- ------------ -------- -------------
GROWTH FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 $ 11.35 $0.021 $ 1.489 $ (0.038) $(0.782) $12.04 14.16%(2) $ 63,820
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
Class B (4)
1996 11.88 (0.004) 0.154 -- -- 12.03 1.35(2) 460
GROWTH AND INCOME FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1996 $ 14.57 $0.116 $ 1.862 $ (0.118) $(0.350) $16.08 13.90%(2) $ 103,640
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
Class B (4)
1996 16.05 0.079 (0.005) (0.054) -- 16.07 0.34(2) 1,745
AGGRESSIVE GROWTH FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1996 $ 16.61 $0.040 $ 1.776 $ (0.037) $(0.409) $17.98 11.14%(2) $ 227,345
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 1,
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
Class B (4)
1996 17.41 0.023 0.527 -- -- 17.96 3.10(2) 1,831
FIXED INCOME FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1996 $ 10.22 $0.288 $ (0.270) $ (0.288) $ -- $ 9.95 0.12%(2) $ 55,996
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
Class B (4)
1996 10.22 0.076 (0.265) (0.081) -- 9.95 (1.55) (2) 564
MUNICIPAL TRUST FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1996 $ 10.06 $0.199 $ (0.180) $ (0.199) $ -- $ 9.88 0.16%(2) $ 37,121
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
Class B (4)
1996 10.12 0.065 (0.244) (0.071) -- 9.87 (1.91)(2) 13
<CAPTION>
RATIO OF
RATIO NET INVESTMENT AVERAGE
OF EXPENSES INCOME TO PORTFOLIO COMMISSION
TO AVERAGE AVERAGE NET TURNOVER RATE
NET ASSETS(3) ASSETS(3) RATE PAID
------------- -------------- -------- ----------
<S> <C> <C> <C> <C>
GROWTH FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1996 1.51%(1) 0.42%(1) 36.7% $ 0.0501
1995 1.63 0.35 101.7 N/A
1994 1.65 0.06 28.2 N/A
1993 1.36 0.56 61.7 N/A
1992 1.26 1.11 65.7 N/A
1991 1.34 1.40 31.7 N/A
Class B(4)
1996 2.08(1) (0.15) (1) 36.7 0.0501
GROWTH AND INCOME FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1996 1.41%(1) 1.56%(1) 24.1% $ 0.0604
YEARS ENDED OCTOBER 31,
1995 1.58 1.94 31.8 N/A
1994 1.64 1.88 25.9 N/A
1993 1.33 2.12 36.4 N/A
1992 1.32(1) 1.99(1) 14.4 N/A
YEARS ENDED JUNE 30,
1992 1.35 2.62 29 N/A
1991 1.23 3.25 48 N/A
Class B(4)
1996 1.98(1) .99(1) 24.1 0.0604
AGGRESSIVE GROWTH FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1996 1.51%(1) 0.50%(1) 21.6% $ 0.0580
YEARS ENDED OCTOBER 31,
1995 1.64 0.23 25.1 N/A
1994 1.70 (0.04) 31.6 N/A
1993 1.44 0.32 134.3 N/A
1992 1.74(1) 0.10(1) 164.1 N/A
YEARS ENDED DECEMBER 1,
1991 1.89 0.18 91.3 N/A
1990 1.98 1.45 87.6 N/A
Class B (4)
1996 2.08(1) (0.07)(1) 21.6 0.0580
FIXED INCOME FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1996 1.00%(1) 5.61%(1) 27.1% N/A
YEARS ENDED OCTOBER 31,
1995 1.00 5.90 66.1 N/A
1994 0.93 5.58 55.9 N/A
1993 0.83 5.79 95.6 N/A
1992 0.51 6.71 62.8 N/A
1991 -- 7.75 35.9 N/A
Class B (4)
1996 1.70(1) 4.91(1) 27.1 N/A
MUNICIPAL TRUST FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1996 1.00%(1) 3.95%(1) 38.2% N/A
1995 1.00 3.97 49.3 N/A
1994 0.83 3.71 42.5 N/A
1993 0.75(1) 3.28(1) 0 N/A
Class B (4)
1996 1.70(1) 3.25(1) 38.2 N/A
</TABLE>
- ------------
<TABLE>
<C> <S>
* 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.
++ An initial sales charge on Class A shares and a contingent deferred sales charge on redemptions of
Class B shares may be imposed which would reduce total return shown above.
(1) Annualized
(2) Not Annualized
(3) 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 Class A shares, .41% (annualized) for the six month period ended April 30,1996 and .51%, .67%,
.58%, .98%, and 2.19% for the years ended 10/31/95, 94, 93, 92, and 91, respectively; Fixed Income Fund
Class B shares, .28% (annualized) for the period 2/28/96 through 4/30/96; Municipal Trust Fund Class A
shares, .49% (annualized) for the six month period ended April 30, 1996 and .58%, .77% and 1.15%
(annualized) for the years ended 10/31/95, 94 and 93, respectively, and Municipal Trust Fund Class B
shares, .36% (annualized) for the period 2/28/96 through 4/30/96.
(4) Commencement of operations for Class B was February 28, 1996.
</TABLE>
<PAGE>
WINTHROP FOCUS FUNDS--SPECIAL MEETING OF SHAREHOLDERS
- --------------------------------------------------------------------------------
At a Special Meeting held on February 7, 1996, the shareholders of Winthrop
Focus Funds voted to implement a new multiple class distribution structure.
A brief description and the results of all matters voted on by shareholders
at the Special Meeting are referenced below:
A. Election of Trustees
<TABLE>
<CAPTION>
WITHHELD WITHHELD
FOR AUTHORITY FOR AUTHORITY
---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C>
Carl B. Menges....... 21,993,910 660,019 Dennis G. Little..... 21,967,275 677,574
G. Moffett Cochran... 22,007,495 646,798 William H. Mathers... 21,965,230 685,593
James A. Engle....... 22,000,710 646,142 James L. McCabe...... 22,011,564 644,695
Robert L. Bast....... 21,987,231 664,194 John J. Sheehan...... 22,002,465 651,752
John J. Halsey....... 21,920,806 713,988 William C. Simpson... 21,965,258 686,167
Stig Host............ 21,992,977 658,783 Stephen K. West...... 21,979,866 664,990
Peter F. Krogh....... 21,968,118 670,680
</TABLE>
B. To approve amendments to Winthrop's Declaration of Trust to authorize the
creation of multiple classes of shares.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN
---------- ------- ------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Growth Fund....... 2,989,858 222,693 210,476 Fixed Income 4,105,542 22,567 204,673
Fund..............
Growth and Income Municipal Trust
Fund............. 3,432,934 156,189 211,064 Fund.............. 2,786,273 6,797 66,386
Aggressive Growth
Fund............. 7,874,611 170,802 170,761
</TABLE>
C. To approve conversion of existing shares of each Fund to Class A shares of
that Fund.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN
---------- ------- ------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Growth Fund....... 2,980,470 235,734 206,823 Fixed Income 4,107,461 20,520 204,800
Fund..............
Growth and Income Municipal Trust
Fund............. 3,449,250 149,222 201,715 Fund.............. 2,787,389 5,681 66,386
Aggressive Growth
Fund............. 7,877,534 171,233 167,407
</TABLE>
D. To approve Plans of Distribution with respect to Class A shares of Winthrop.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN
--------- ------- ------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Growth Fund........ 2,956,498 259,705 206,823 Fixed Income 4,101,594 21,043 210,145
Fund...............
Growth and Income Municipal Trust
Fund.............. 3,433,586 150,372 216,228 Fund............... 2,783,320 9,750 66,386
Aggressive Growth
Fund.............. 7,852,977 181,218 181,979
</TABLE>
E. To ratify the selection by the Board of Trustees of Ernst & Young LLP as
independent auditors for the year ending October 31,1996.
FOR AGAINST ABSTAIN
---------- ------- -------
21,655,507 188,142 787,976
<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
G. Moffett Cochran, 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 Winthrop
-------------
Roger W. Vogel, Vice President
Charles E. Hughes, Assistant Secretary
Brian A. Kammerer, Assistant Treasurer Focus
-------------
INVESTMENT ADVISOR
Funds
Wood Struthers & Winthrop Management Corp.
An Investment Management Subsidiary of
Donaldson, Lufkin & Jenrette -------------
277 Park Avenue, New York, NY 10172
CUSTODIAN
Citibank, N.A.
111 Wall Street, New York, NY 10043 Semi - Annual Report
April 30, 1996
TRANSFER AGENT
Fund/Plan Services, Inc.
P.O. Box 874 (#2 Elm Street), Conshohocken, PA 19428
DISTRIBUTOR
Donaldson, Lufkin & Jenrette Securities Corporation
277 Park Avenue, New York, NY 10172
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 submitted 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.
